CX Daily: China Vows to Keep Markets Stable and Resolve Property Risks

Real estate /

In Depth: Market realities frustrate China’s efforts to clean up developer debt

Over the past two months, Sunac China Holdings Ltd. and Shimao Property Holdings Ltd., two debt-ridden Chinese private developers, have sold projects worth billions of yuan to state-owned firms.

That marks a sharp reversal from 2018 to 2019 when the two companies went on a shopping spree spending tens of billions of yuan to expand their businesses.

How times have changed. China’s real estate industry — once a breeding ground for new billionaires — has degenerated into a minefield of murky debt risk that threatens its status as a pillar of economic growth.

Distressed developer Sunac has a rollercoaster day in the markets

Policies /

China vows to keep markets stable and resolve property risks

Beijing issued a strong promise for policies to boost financial markets and stimulate economic growth as it responded to a market sell-off over risks from the property market, overseas listings and internet companies.

Government departments should “actively introduce policies that benefit markets,” according to a meeting of China’s top financial policy committee led by Vice Premier Liu He, who’s in charge of overall economic policy. The meeting concluded there is a need to “boost the economy,” in the first quarter, according to a state-media report.

China stocks jump most since 2008 as central government vows support

China fights back against plunging stock markets

Chinese stocks in U.S. roar back on government’s pro-market pledge

FINANCE & ECONOMY

The U.S. Public Company Accounting Oversight Board oversees the audits of public companies in the country. Photo: VCG

Delisting /

U.S. accounting watchdog says it’s working with China on audit dispute

The U.S. organization that oversees the audits of public companies confirmed that it has been working with Chinese authorities to reach an agreement over a longstanding dispute that has hindered its access to the audit work papers of U.S.-traded Chinese businesses.

The simmering dispute has made it possible for Chinese companies to get booted from U.S. exchanges for failing to meet audit requirements. The first batch of companies in violation of U.S. law was identified by the Securities and Exchange Commission (SEC) last week. That news contributed to one of the steepest sell-offs of U.S.-traded Chinese stocks since the global financial crisis, a pummeling that spread to Chinese tech shares traded in Hong Kong.

Covid /

How China’s updated playbook changes its Covid response

China fine-tuned its Covid-19 response protocol with major changes to diagnostic criteria, treatments and quarantine requirements as the country seeks to combat the virus with greater precision.

The National Health Commission (NHC) Tuesday updated its diagnosis and treatment playbook for Covid-19, the ninth version since the pandemic started. The latest edition introduces a supplement testing method, recommends newly developed treatments and modifies hospital admission and quarantine rules.

Some experts said the latest revision of protocols is timely for addressing rising omicron outbreaks and indicates a step toward more relaxed virus controls.

China revises Covid treatments to add new therapies amid flare-up

Tax /

China puts property tax pilot expansion on hold to ease market jitters

China will not expand the pilot property tax trial this year, putting on hold a real estate restructuring that could burden local property markets and add to liquidity pressure on developers.

Although some cities have carried out investigations and preliminary research for the program, the conditions for expanding the pilot cities for the property tax overhaul “are not available this year considering all aspects of the situation,” according to a report by the state-run Xinhua News Agency, which cited the Ministry of Finance.

Data /

China needs more easing despite seemingly upbeat economic data, analysts say

China’s economy performed better than expected in the first two months of 2022, but economists warned that the seemingly upbeat numbers may not spell a strong recovery as they look toward more easing policies by the government.

China’s economic data for the January-to-February period, released Tuesday by the National Bureau of Statistics (NBS), beat expectations in areas such as year-on-year growth in fixed-asset investment, retail sales and industrial production.

China-U.S. /

China’s U.S. ambassador denies Beijing knew in advance of Russia’s war plans

China’s ambassador to the U.S. denied that Beijing had prior knowledge of Russia’s plan to invade Ukraine, saying that the allegations “serve only the purpose of shifting blame to and slinging mud at China.”

“Let me say this responsibly: Assertions that China knew about, acquiesced to or tacitly supported this war are purely disinformation,” Qin Gang wrote in a piece published by The Washington Post.

Quick hits /

Opinion: How the Ukraine War affects China’s economy

BUSINESS & TECH

Photo: VCG

Carbon /

Government slams carbon emissions trackers over data fraud

China’s environmental watchdog named and shamed four businesses for faking carbon emission reports in the latest sign that data fraud continues to threaten the nation’s green ambitions.

The Ministry of Ecology and Environment (MEE) said the data verification agencies manipulated reports and falsified testing dates, emissions data and carbon footprint results — a broader measure of the total greenhouse gas emissions associated with a particular entity.

Flights /

Shanghai curtails international flights as Covid surges

Starting Monday, most international flights to Shanghai will be diverted to other cities as authorities continue to battle an omicron outbreak.

The Civil Aviation Administration of China (CAAC) said Tuesday that it will divert 106 international flights operated by domestic carriers that were scheduled to arrive in Shanghai to 12 other Chinese cities.

Fandom /

China deepens crackdown on ‘chaotic’ fandom

China’s top cyberspace watchdog is soliciting feedback from the public on draft regulations designed to protect minors from parts of the internet deemed harmful, which would further rein in China’s “chaotic” fandom culture.

As the country’s sweeping crackdown on the internet sector and celebrity culture continues, the draft published Monday by the Cyberspace Administration of China (CAC) requires those offering online gaming, livestreaming, audio, video and social media services to take measures to stop “excessive focus on viewership,” which may distort minors’ values (link in Chinese).

Charging /

Charging pile operators stuck in slow lane despite surge in electric vehicles

Charging pile operators in China are finding it hard to make money from the business as private car owners tend to use chargers provided by the automakers and battery-swapping technology starts to gain traction, according to industry insiders.

Along with an explosion in the sales of electric vehicles in recent years, companies have raced to roll out charging stations across China as the country aims to improve its charging infrastructure.

Quick hits /

Foxconn partly restarts Shenzhen iPhone hub hit by lockdown

Australia plans rare earths boost to challenge China dominance

GALLERY

Deserted streets in once bustling Shenzhen

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