CX Daily: Singapore, Hong Kong Vie for Billionaires’ Bucks

Family office /

In Depth: Singapore, Hong Kong vie for billionaires’ bucks

Hong Kong and Singapore are both known as wealth management centers in Asia. For years, they have been rivals to be the first choice for China’s “new rich” to set up overseas family offices. The battle is heating up. And the big prize will be lucrative clients from the rapidly growing generation of the “tech rich.”

Dai Le, a 29-year-old financier who started a family office business in Singapore amid the pandemic, said the new wave is coming from Chinese tech giants such as Alibaba Group, Tencent Holdings and ByteDance that have quickly grown into the world’s most valuable companies.

Tutoring /

Caixin Explains: China adds harsher penalties for illegal private tutoring

Local governments in China have rolled out various new measures to stamp out illegal student tutoring, including offering a more than $1,500 reward for those who report such activities, as they step up the crackdown on private after-school learning to prevent a possible rise in demand during the winter break.

The country has banned for-profit tutoring for core curriculum subjects as well as on weekends and holidays since last July, yet many tutoring companies and individuals have continued to offer classes covering these subjects over the past few months despite the risk of being penalized.

FINANCE & ECONOMY

The IMF cut its 2022 growth forecast for China to 4.8% from a previous projection of 5.7%.

Economy /

China should step up support to the economy, IMF says

The International Monetary Fund called on Beijing to step up fiscal support to bolster an economy that has been slowed by weakening consumption amid the Covid-19 pandemic and a property market plunge.

The policy recommendation came as the fund cut its 2022 growth forecast for China to 4.8% from a previous projection of 5.7%. The economy expanded 8.1% last year.

“China's recovery is well advanced, but it lacks balance, and momentum has slowed,” the IMF said in a report issued Friday following a consultation with China.

China-Russia /

China and Russia to give ‘special attention’ to business ties at Olympic talks, Putin says

Russian President Vladimir Putin said he will discuss his nation’s developing business ties with China when he meets his counterpart President Xi Jinping at the Beijing Winter Olympics Friday.

Writing in a commentary for China’s state-run Xinhua News Agency, Putin said that he and the Chinese leader will “thoroughly discuss key issues on the bilateral, regional, and global agendas,” noting that “the development of business ties will certainly be given special attention.”

Property /

China’s property market off to bleak start in 2022

China’s real estate market continued its downward spiral in the first month of 2022, as total sales of China’s top 100 property developers fell 39.6% year-on-year by value. China Real Estate Information Corp. (CRIC), the consultancy that compiled the data, said sales could shrink further in February.

Most of the top 100 property companies recorded lower January sales than last year, and the value of monthly sales was lower than the 2021 average by 43%, according to a CRIC report published Monday.

Quick hits /

Amundi’s cash-rich gulf clients look beyond U.S. to China, India

Invesco to hire dozens in China as assets sail past $100 billion

Ex-Goldman rainmaker’s Primavera files for Hong Kong SPAC

BUSINESS & TECH

Weng Lin Chan

Gambling /

Macao junket dragnet catches another big fish

Police in Macao, the world’s largest gambling hub, arrested the city’s No. 2 junket boss amid a sweeping crackdown on the murky business that once played a vital role for the city’s casinos.

Weng Lin Chan, chief executive officer and controlling shareholder of casino operator Macau Legend Development Ltd., was arrested by police, Legend confirmed Sunday. Chan agreed to resign, and the company said it didn’t expect the incident to have a material adverse impact on daily operations, according to a separate statement Monday. Legend’s Hong Kong-traded shares slumped 19% Monday, the biggest loss since 2015.

Vaccines /

Chinese Covid-vaccine makers predict strong profits for 2021

Major Chinese vaccine makers are expecting to report a major surge in profits last year on the back of the nationwide Covid-19 inoculation program that has seen more than 3 billion doses administered, the biggest such rollout in the world.

Tianjin-based CanSino Biologics Inc., which makes a single-dose vaccine, estimated it would book 1.85 billion yuan ($290.6 million) to 2 billion yuan in net profits attributable to shareholders in 2021, a reversal from a net loss of 397 million yuan for the previous year, according to a Saturday company filing.

Nickel /

Analysis: What’s behind nickel’s sudden market volatility?

The price of nickel futures in China has risen at a steady pace over the last year, as demand grew for the key ingredient used in electric vehicle (EV) batteries.

EV sales, which jumped 160% in China last year, continue to set new monthly sales records, and are expected to maintain their growth in 2022.

But this steady market suddenly turned volatile on Jan. 24, with the price of the nickel contract set to expire in February on the Shanghai Futures Exchange (SHFE) jumping to a record of 182,180 yuan ($28,623) per ton in intraday trade, then falling nearly 7% in the night session. The next day, the price dropped 8% to close at about 165,000 yuan.

Utility /

Exclusive: Japan’s largest utility firm starts Chinese subsidiary, eyes LNG projects

Japan’s largest power company JERA Co. Inc. will open a subsidiary in Beijing, as part of plans to expand its business in Asia and address the growing energy needs of the world’s second largest economy.

A source close to JERA told Caixin that the company registered its subsidiary in Beijing under the name Beijing JERA Consulting Ltd. (北京捷热咨询有限公司) in January and it’s slated to operate from the second quarter of 2022.

Quick hits /

Xiaomi’s smartphone chief resigns

Railway trips jump 65% in China’s holiday travel rush

Troubled EV-maker Faraday Future punishes executives for releasing fake data before 2021 listing

GALLERY

Olympic torch’s Beijing tour

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