CX Daily: Why China’s Once Red-Hot Solar Sector Is Cooling

Solar /

In Depth: Why China’s once red-hot solar sector is cooling

Two years ago, President Xi Jinping announced that China aimed to reach peak emissions before 2030 and become “carbon-neutral” within the following three decades, helping the photovoltaic (PV) sector take off.

Over the past year and a half, capital from industries like liquor, finance, real estate and the internet has been pouring into the new-energy sector, driving up the valuations of solar energy stocks, an investment bank analyst said.

However, the industry looks set to come back down to earth. After expanding by a blistering 110% in 2021, the revenue growth of China’s PV industry will slow to around 40%, analysts from Citic Securities Co. Ltd. forecast in a research note published in December.

Videos /

Bilibili to hire 1,000 content reviewers after employee’s death

Bilibili Inc. plans to hire 1,000 new content reviewers and improve protection of workers’ health, China’s video platform said Tuesday after the death of an employee spurred accusations it has an overwork culture.

The employee, nicknamed Mu Se Mu Xin, was a deputy team leader of the graphics and text censoring team at Bilibili’s office in the central city of Wuhan. He had a brain aneurysm that burst at home last Friday and died in a hospital, Bilibili said late Tuesday in a statement on the Weibo social network.

FINANCE & ECONOMY

Banking /

Chinese banks required to strengthen due diligence for one-off withdrawals exceeding 50,000 yuan

Chinese banks will be required to strengthen due diligence on individual customers who deposit or withdraw more than 50,000 yuan ($7,864) in cash in one go as regulators step up efforts to clamp down on money laundering and fraud.

An official of the People’s Bank of China (PBOC), the central bank, said the new rule aims to curb criminal activities such as telecom fraud, illegal fundraising, illegal pyramid schemes and cross-border gambling, according to a report released by state-run broadcaster CCTV Wednesday.

Budget /

Chinese provinces cut 2022 fiscal revenue growth targets

Most Chinese provinces are growing pessimistic about their fiscal revenue outlook for 2022 and are slashing budget revenue targets.

Among the 25 provinces that have released fiscal budget plans for 2022, only Henan and Tibet set a goal for 2022 budget revenue to grow faster than last year.

Hong Kong /

Hong Kong’s private sector shrinks amid Covid-19 outbreak, PMI survey shows

Hong Kong’s private sector shrank for the first time since January 2021 as the ongoing Covid-19 outbreak dampened new orders and output, according to an economic activity survey.

The IHS Markit Hong Kong SAR Purchasing Manager’s Index fell to 48.9 in January from December’s 50.8, entering contractionary territory of below 50 after expanding for 11 consecutive months.

Fitch slashes Hong Kong GDP forecast on latest Covid crackdown

Covid-19 /

Hong Kong hospitals overwhelmed as daily Covid cases top 1,000

Hong Kong’s daily Covid case tally surpassed 1,000 for the first time since the pandemic began, taking a new toll on the city as hospitals are being overwhelmed and food prices have surged amid the fallout from a fast-growing outbreak.

The city recorded 1,161 new cases Wednesday, taking the overall tally in the past two weeks to more than 3,100. Of the new cases, which were mostly of the omicron variant, only eight were imported. Two elderly patients died from Covid, including one who had received two vaccine doses.

Shenzhen district suspends inbound mail delivery on virus fears

Quick hits /

U.S. will hold China to account for trade-deal miss, official says

BUSINESS & TECH

Coal prices have been on the rise since the beginning of the year after a drop late in 2021

Coal /

Regulators move to rein in renewed surge in coal prices

Chinese regulators are ramping up efforts to rein in surging prices of coal for power generation as the gap between supply and demand widens following the Lunar New Year holiday.

At a meeting Wednesday with top local energy officials and executives, the National Development and Reform Commission (NDRC) proposed to cap the ex-mine prices for the most-used 5,500 kilocalorie thermal coal below 700 yuan ($110) per ton, and the price at ports under 900 yuan, according to people at the meeting.

M&A /

Unit of Chinese state-owned metals firm to buy Zimbabwe lithium mine

A subsidiary of state-run giant China Nonferrous Metal Mining Group Co. Ltd. said it would acquire a lithium project in Zimbabwe, joining the trend of Chinese companies securing supplies of the important electric-vehicle battery material.

In a Tuesday filing (link in Chinese), Sinomine Resource Group Co. Ltd. said it planned a deal to pay $180 million for a 74% controlling stake in the Bikita lithium mine, which has already started production and has proven ore reserves of 29.41 million tons.

Evergrande /

Evergrande vows to finish half of units under construction this year

Debt-ridden China Evergrande Group vowed to speed up construction and complete 50% of outstanding real estate projects within the year in an effort to push its business back on track.

The pledge reflects how the once largest Chinese real estate firm is desperate to raise cash to pay bills through housing sales, given its challenges with borrowing money due to default risks. It is now one of the most heavily indebted developers in China with about $300 billion in on-balance-sheet liabilities and an unknown amount of off-balance-sheet debt.

China Evergrande CEO cut his bond holdings early in crisis

Education /

China plans more rules to ease academic burden on children

After new rules shook the after-school tutoring industry last year, the Ministry of Education Tuesday sketched out new guidelines to further reduce the pressure placed on Chinese children.

In a plan for this year, the ministry said it will make more rules to supervise extracurricular tutoring, boost enforcement and institutionalize its “double reduction” campaign, which kicked off last July.

Quick hits /

One-off gain keeps KFC’s China operator in the black

Trending in China: Eileen Gu wins gold on social media

Douyin denies it allows users to violate patriotic blockbuster’s copyright

GALLERY

Ace speed skater loses shot at three-peat

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