Caixin
Dec 21, 2021 09:18 AM
CX DAILY

CX Daily: How China’s EV Battery King Is Defending Its Throne

Electric cars /

Cover Story: How China’s EV battery king is defending its throne

Contemporary Amperex Technology Co. Ltd., known as CATL, is clearly a darling of investors betting on the future of electric vehicles and energy storage in the global economy’s green transition.

Established 10 years ago, the battery maker has grown into the third-most valuable publicly traded company in China behind national liquor maker Kweichow Moutai and Industrial and Commercial Bank of China. CATL’s Shenzhen stock closed at 651.19 yuan ($102.16) a share Friday, giving it a market value of 1.52 trillion yuan ($238.45 billion). The valuation has increased 1.6 times since the beginning of the year and 6.4 times from early 2020.

While investors are betting on CATL’s dominant position as a producer of batteries for electric vehicles, there’s no guarantee the company will be able to continue cashing in on it over time.

Blacklist /

U.S. blacklists 34 more Chinese entities for alleged support to Iran

The U.S. government added 34 more Chinese companies and research institutes to an export blacklist for allegedly diverting U.S. goods to Iran’s military programs.

The U.S. government’s entity list bans the export of American technology to entities on the list unless the exporter receives a government license. The U.S. Commerce Department’s Bureau of Industry and Security (BIS) also imposes a presumption of denial for the entities in license reviews.

FINANCE & ECONOMY

Over the past three years, China has accelerated the opening-up of its financial sector, giving foreign investors greater access to its capital market. Photo: VCG

Stocks /

China to broaden stock connect program to incorporate Swiss, German exchanges

China is planning to expand a program linking the Shanghai and London stock exchanges to incorporate bourses in Shenzhen, Switzerland and Germany as part of continuing efforts to open China’s capital markets and “facilitate cross-border investment and financing,” the country’s securities regulator said in a statement.

Launched in 2019, the Shanghai-London stock connect program allows eligible companies listed either on the Shanghai or the London exchange to issue depositary receipts — which represent ownership of their shares — on the other bourse.

Under the program, eligible U.K.-listed companies can issue Chinese depositary receipts (CDRs) in Shanghai, while Shanghai-traded businesses can likewise issue global depositary receipts (GDRs) in London. Investors can buy these depositary receipts to gain exposure to companies listed elsewhere.

Fiscal /

China takes in 11.2% less fiscal income as power shortage tax relief bites

Governments in China brought in 11.2% less fiscal revenue in November than the same month a year earlier, the third straight month of decline, according to Caixin calculations based on Ministry of Finance data (link in Chinese) released Friday.

China’s central and local governments suffered aggregate year-on-year fiscal revenue declines of 0.1% in October and 2.1% in September, according to ministry data. The ministry pinned last month’s drop on the tax relief that the government provided to companies that run coal-fired power plants, heating companies, as well as micro, small and midsize manufacturers.

Quick hits /

Hong Kong to allow SPAC listings Jan. 1

Chinese banks cut borrowing costs to counter economic slowdown

Editorial: With speculation curtailed, the people’s housing needs remain a priority

BUSINESS & TECH

 

Education /

Offcn Education plunges on disclosure probe

Vocational education operator Offcn Education Technology Co. Ltd. said it has been placed under investigation by China’s securities regulator on suspicion of violating disclosure rules.

Shares of the company plunged nearly 10% in Shenzhen to close at 8.77 yuan ($1.38) Friday following the announcement (link in Chinese), which did not provide details. The stock shed another 7.87% Monday to close at 8.08 yuan.

Offcn Education — which provides examination training for recruitment of civil servants, public institution employees, teachers and medical workers — shocked investors in October when it predicted a net loss of between 700 million yuan and 900 million yuan in the first three quarters of this year, reversing a net profit of 1.3 billion yuan for the same period in the previous year.

Livestreaming /

Livestreamer slapped with record $210 million fine for dodging tax

China’s top livestreamer Huang Wei, nicknamed “Weiya” online, has been fined a record 1.34 billion yuan ($210 million) for income tax evasion, following the first pair of such penalties last month in the flourishing but underregulated industry.

The tax authorities in the eastern city of Hangzhou found Huang Wei evaded $110 million of personal taxes through underreporting and illegally classing personal income as business income, according to the official Xinhua News Agency. The record amount includes personal taxes Huang evaded, and administrative and overdue fines.

HNA /

HNA units under investigation linked to embezzlement, financial misconduct, sources say

Two listed subsidiaries of HNA Group Co. Ltd. revealed that they are subject to an investigation that sources with knowledge of the matter said may be linked to allegations that shareholders embezzled company funds and illegally used corporate assets as collateral for loans.

The investigations mark the government’s latest move in untangling the risks posed by the formerly free-wheeling financial conglomerate that is now going through bankruptcy restructuring.

Short selling /

Chinese tycoon who built Zhongzhi Enterprise Group dies

Xie Zhikun, the founder and controlling shareholder of sprawling Chinese investment conglomerate Zhongzhi Enterprise Group, died Saturday morning, Caixin learned from multiple sources.

Xie, 61, apparently died of a heart attack during morning exercise, Caixin learned.

“He had a history of heart disease and felt a sudden discomfort when doing Pilates,” said a person close to the Xie family. “He was sent to the hospital but didn’t make it. He suffered a large-scale myocardial infarction.”

Quick hits /

Real estate services provider KE hits back at revenue fraud allegation

Evergrande declared in default by S&P for failed coupon payments

SenseTime reopens IPO, gets $512 million from cornerstones

GALLERY

Expressway bridge ramp collapse kills four

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