Caixin
Dec 16, 2021 09:31 AM
CX DAILY

CX Daily: The Black Cloud Hanging Over Didi

Didi /

In Depth: The black cloud hanging over Didi

As hard as it will be for ride-hailing giant Didi Global to move its stock to Hong Kong from New York, the real 800-pound gorilla in the room is the government’s cybersecurity review and other regulatory issues.

They amount to a black cloud hovering over the business. Didi’s ride-hailing orders have fallen by 30% compared with the same time last year, Caixin learned. Dozens of Didi’s mobile apps have been barred from new downloads over the past few months on the order of the Cyberspace Administration of China (CAC), threatening business growth.

After Didi’s main app was removed from app stores on the evening of July 9, the CAC removed 25 mobile other applications operated by Didi. As of now, applications related to Didi have not yet appeared in Chinese app stores.

FINANCE & ECONOMY

China’s GDP growth rate slowed to 4.9% year-on-year for the third quarter of 2021 from 18.3% in the first quarter and 7.9% in the second quarter.

Government debt /

China issues local government borrowing quotas early

Some Chinese provinces received their allocations for local government borrowing in 2022, earlier than the timetable for this year, but several jurisdictions said their quotas for new special purpose bonds (SPBs) were smaller than expected.

The early release of borrowing authorizations from the central government can help local authorities speed up infrastructure spending as the world’s second-largest economy faces slower growth going into 2022 because of a real estate slump and pandemic curbs that slowed consumption.

Tasks /

China’s top economic planner sets out main tasks for 2022

Ensuring the security of energy, food, and industrial supply chains and stabilizing prices will be among the main tasks for China’s economic planning agency next year, following a warning by the nation’s top political leaders that supply shocks are one of three main pressures facing the economy.

The commitments were set out by the National Development and Reform Commission (NDRC) at a nationwide video meeting Saturday (link in Chinese) after a three-day conference held by China’s most senior policymakers set stability as the top priority for next year’s economic work.

Economy /

China’s economy slows as property slump deepens

China’s economy slowed further in November, dragged down by a worsening property market slump and disruptions from repeated Covid outbreaks, which undercut consumer spending.

Growth in fixed-asset investment eased to 5.2% in the first eleven months of the year. Property investment grew 6% in the same period, slowing from 7.2% during the January-October period, as financing rules remained strict and home sales plunged.

Quick hits /

China partially rolls over policy loans after reserve ratio cut

BUSINESS & TECH

Bay Academy in Shenzhen, South China’s Guangdong province. Photo: Bay Academy

Schools /

China’s private education crackdown hits two international schools

Two international schools in Shenzhen decided this month to close their branches for K-9 students, the latest shutdowns resulting from China’s new rules that make it difficult for foreign schools to tie up with Chinese partners to offer compulsory education.

The Bay Academy, jointly managed by American nonprofit organization International Schools Services and Shanghai-based education consultancy Ulink College, will suspend operations in July 2022, Caixin learned from the admissions office in the southern city.

The decision was made as Bay Academy couldn’t obtain a license that allows new K-9 private schools or existing private schools to open branches in China, according to a school notice shared online by parents last week.

IPO /

Canadian Solar’s subsidiary gets green light for STAR Market IPO

Solar panel manufacturer CSI Solar Co. Ltd. received approval for its proposed IPO on Shanghai’s high-tech board that could raise 4 billion yuan ($628 million). The money-losing business is a majority-owned subsidiary of Nasdaq-traded Canadian Solar Inc.

Founded in 2001 by Chairman and CEO Shawn Qu, Canadian Solar splits its operations between Canada and China, producing solar module products that convert sunlight into electricity for various uses. In 2006, the company went public on the Nasdaq.

Electric cars /

Carmaker Xpeng deletes 430,000 photos for misuse of facial recognition

Chinese electric-vehicle (EV) startup Xpeng Inc. said hundreds of thousands of photos that were wrongfully taken of visitors to its showrooms have been deleted after it was hit with a 100,000 yuan ($15,706) fine for their collection earlier this month.

In a statement Tuesday, Xpeng admitted to “unfamiliarity with certain laws” and making mistakes when purchasing equipment, while also saying it collected the photos to better understand store traffic and improve service.

Quick hits /

State-dispatched risk managers arrive at Evergrande headquarters

China’s Oppo touts smartphone photo breakthrough with new chip

Wise Road drops $1.4 billion buyout of Magnachip

GALLERY

Tomb confirmed as Han emperor’s resting place

Recommended newsletter for you /

China Green Bulletin Premium - Subscribe to join the Caixin green community and stay up to date with the most exclusive insights on ESG, energy and carbon. Sign up here.

Thanks for reading. If you haven’t already, click here to subscribe.

Share this article
Open WeChat and scan the QR code