Caixin
Feb 08, 2022 08:55 AM
CX DAILY

CX Daily: The Turning Point for China’s New-Energy Vehicles

NEVs /

Cover Story: The turning point for China’s new-energy vehicles

China’s new-energy vehicle (NEV) industry set records in 2021. The country produced 3.54 million NEVs, including battery-electric cars and plug-in hybrids, and sold 3.52 million of them. Sales were up 181% from 2020 and exceeded the total of the previous three years. In 2021, NEVs made up 15.7 % of the country’s car market.

The numbers boosted market enthusiasm. Experts predict that NEV sales in China will jump to 5 million to 6 million this year, taking 25%–30% of the domestic auto market. China will be by far the world’s largest producer and consumer of NEVs.

A market penetration rate of more than 20% will mark a major turning point, meaning that early education of the market is basically complete and the supply chain is beginning to stabilize, according to a report by Sinolink Securities Co.

Winter Olympics /

Beijing Winter Olympics opening ceremony goes carbon lite

China’s use of a “micro-flame” instead of igniting a huge cauldron of fire to officially kick off the Beijing 2022 Winter Olympics Friday night was intended to send a message around the world about the importance of reducing carbon emissions and protecting the environment, according to the opening ceremony’s director.

Some viewers may have been surprised when Dinigeer Yilamujiang, a female cross-country skier from West China’s Xinjiang region, and Zhao Jiawen, a male Nordic combined athlete from Shanxi province, simply placed the Olympic torch in the center of a giant snowflake-shaped structure bearing the name of every country and region participating in the Games.

FINANCE & ECONOMY

PMI /

China’s services growth off to slow start in 2022, Caixin PMI shows

Expansion in China’s services sector slipped to a five-month low in January amid fresh curbs imposed to contain Covid-19 flare-ups in parts of the country, a Caixin-sponsored survey showed.

The Caixin China General Services Business Activity Index, which gives an independent snapshot of operating conditions in the sector, fell to 51.4 in January from 53.1 in December, according to the survey report released Monday. Readings higher than 50 signal expansion.

The Caixin China General Composite PMI, which includes both manufacturing and services activity, stood just above the 50-point threshold at 50.1 in January, compared with a five-month high of 53 in December.

Lunar New Year /

Charts of the Day: China’s Lunar New Year tourism, box office lag 2021

Tourism and movie box office numbers during China’s weeklong Lunar New Year holiday indicate weaker consumption compared with the festive period last year, despite hype from the ongoing Winter Olympics for snow-and-ice tourism activities.

During the seven-day holiday that started Jan. 31, travelers in China made 251 million domestic trips, a 2% dip compared with the same period last year, according to the Ministry of Culture and Tourism.

Movie box office during the public holiday reached 6 billion yuan ($943 million), 23.1% lower than last year’s Lunar New Year holiday’s box office, according to movie data provider Dengta, a data platform for the cinema industry.

License /

PBOC accepts first bid from private firm to set up financial holding company

A company linked with Chinese industrial conglomerate Wanxiang Group Corp. could become the first privately owned firm in the country to win a license to operate a financial holding company, jumping ahead of fintech giants Ant Group Co. Ltd. and Tencent Holdings Ltd.

The People’s Bank of China (PBOC) said it is processing China Wanxiang Holding Co. Ltd.’s application in accordance with rules that took effect in November 2020. The submission was accepted Jan. 29, the PBOC said in a notice published Jan. 30 on its website.

Covid-19 /

Hong Kong ramps up Covid testing, vaccination drive as cases hit high

Hong Kong is imposing new measures to get more residents tested and vaccinated as it battles what its leader Carrie Lam said is the worst outbreak in two years.

The city, now grappling with both the omicron and delta variants, reported 342 new cases Sunday, taking the overall tally over the past two weeks to nearly 2,000. The daily Covid tally hit a peak of 351 Saturday.

Quick hits /

China seeks to finance Argentina projects for $23.7 billion

China stocks head for best post-Lunar New Year gain since 2019

Editorial: Attracting foreign investment is as important as ever for China

BUSINESS & TECH

A Luckin coffee store in Beijing. Photo: VCG

Luckin Coffee /

Luckin pays $180 million to settle U.S. fraud charges

Disgraced Chinese startup Luckin Coffee Inc. said it paid $180 million to settle fraud charges in the U.S. in what appeared to be the latest step of a campaign to relist on the Nasdaq 20 months after the Starbucks rival was booted in a fake revenue scandal.

Luckin is working on a series of compliance procedures as part of the relisting plan, a source inside the firm told Caixin.

In a Friday filing to the Securities and Exchange Commission (SEC), the company said it received notice from the securities watchdog that it “satisfied the civil penalties arising from its previously disclosed settlement agreement.”

Gas /

Russia’s Gazprom hails new 30-year gas deal with China as sign of strengthening ties

Russian energy giant Gazprom PJSC announced a 30-year supply deal with China that will increase the amount of natural gas it pipes to its neighbor from fields in Russia’s Far East in what the firm said was a sign of Moscow’s close ties with Beijing.

In a Friday statement, Gazprom, which is majority owned by the Russian government, said the deal will allow it to annually deliver 10 billion cubic meters of gas to China National Petroleum Corp. (CNPC) via the Far Eastern pipeline, increasing the firm’s total piped gas sales to China to 48 billion cubic meters a year at maturity.

Listing /

Intracity logistics firm GogoX seeks Hong Kong IPO as it eyes Asia expansion

Money-losing intracity logistics startup GogoX Holdings Ltd. is on course to sell shares in Hong Kong as it looks to grow its footprint outside China.

The Hong Kong-based business won initial approval to go public, according to a post-hearing information pack filed Sunday.

GogoX did not disclose how much it aims to raise but said the fresh capital will be used to enlarge its user base, strengthen brand awareness, develop new services, boost R&D capabilities and fund investments and acquisitions in overseas markets.

Quick hits /

U.S. House passes chips bill as Republicans air soft-on-China gripes

GALLERY

China triumphs in women’s soccer in Mumbai

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