CX Daily: China’s Battle to Stabilize Its Economy
In Depth: China’s battle to stabilize its economy
China’s efforts to stabilize economic growth are running into new speed bumps, upsetting an already fragile recovery.
The current wave of Covid-19 outbreaks — the worst since early 2020 — has infected more than 50,000 people across the country, and measures to contain the spread of the virus have led to city lockdowns, halted some factory production and squeezed the tourism and catering industries. The impact on China’s GDP growth in the first quarter could be a loss of 0.3 to 0.8 of a percentage point, some analysts said.
Hong Kong health expert downplays city’s Covid fatality rate
As Hong Kong’s worst ever Covid-19 outbreak continues to moderate, one local health expert has sought to downplay the city’s case fatality rate.
As of Tuesday, the latest outbreak has sickened 1.13 million people and killed 7,358, government data show. Based on the official figures, the city’s fatality rate for Covid — a measure of the death rate for confirmed cases — stood at about 0.65%.
Opinion: How Shanghai can chart a new path for China’s Covid policy
FINANCE & ECONOMY
Shanghai offers support for importing Covid drugs and vaccines as it battles outbreak
Shanghai, half of which is currently under lockdown, is trying to keep its local economy running through a slate of new measures including one that encourages the import of Covid-19 vaccines and drugs.
The policy’s goal is to ensure the city can continue to run normally as it battles its worst outbreak of Covid-19 since the pandemic began, according to a statement (link in Chinese) published Tuesday by the local government.
Hong Kong bourse set to pilot digital-asset platform
Hong Kong Exchanges and Clearing Ltd. (HKEX) is planning to establish a digital-asset trading platform, a pilot version of which is set to be launched this year, the bourse said Tuesday.
The platform, called Diamond, will be a one-stop shop for data trading and custody with instant settlements, said Glenda So, co-head of markets at HKEX. The cloud-based system will use smart contract and blockchain technology, So said in a speech during HKEX’s Corporate Day event.
HKEX appoints new head of sales to lead Southeast Asian expansion
Hang Seng Investment named new manager of $14.25 billion Hong Kong fund
Hang Seng Investment Management Ltd. was selected to replace State Street Global Advisors Asia Ltd. as the manager of Hong Kong’s largest and most-popular exchange-traded fund (ETF), the Tracker Fund of Hong Kong (TraHK) said Tuesday.
The change in manager followed a professional review by the fund’s supervisory board. It identified Hang Seng Investment as the most suitable firm to manage the fund based on its experience, expertise and sizable presence in Hong Kong as well as the latest market developments and TraHK’s future development, the supervisory board said.
Quick hits /
CSRC denies rumors of restrictions on IPOs by Xiaomi-linked companies
Deputy governor of Liaoning province falls under graft probe
BUSINESS & TECH
Distressed Chinese developer Sunac sweetens proposed bond extension plan
Debt-ridden real estate giant Sunac China Holdings Ltd. offered better terms to investors in a new payment extension plan published Wednesday as part of its efforts to delay paying up on a 4 billion yuan ($629.2 million) onshore bond due April 1.
In the new proposal, Sunac China, the third-largest Chinese developer by sales, offered to shorten the payment extension to one and a half years. It also proposed paying the bond’s annual interest due April 1 as scheduled, as opposed to the 20-day delay of the interest payment outlined in its previous plan, according to a company filing (link in Chinese). Its Hong Kong stock closed up 18.4% Wednesday.
Electric cars /
Xpeng’s electric vehicle sales near 100,000 despite widening loss
Electric vehicle upstart Xpeng Inc. topped domestic rivals with almost 100,000 sales in 2021 despite widening losses.
Xpeng delivered 98,200 vehicles last year, up 263% year-on-year. The figure outpaced Nio Inc.’s 91,400 units and Li Auto Inc.’s 90,500 units, according to the latest company data.
Nongfu Spring sees profits flood in as beverage industry recovers from pandemic
Chinese bottled water giant Nongfu Spring Co. Ltd. reported an uptick in revenues and profit in 2021 as the beverage industry continued to recover from the fallout of the pandemic.
Hong Kong-listed Nongfu’s revenues in 2021 totaled 29.7 billion yuan ($4.7 billion), up 29.8% from the previous year, when transportation and sales of some of its products was hit by the double whammy of sporadic Covid-19 flare-ups and flood disasters in several provinces, according to the company’s latest financial report released Monday. It marked its highest revenue growth in four years.
Quick hits /
Pricey ingredients, expansion cost Chinese tea chain Nayuki its profitability
Kuaishou sales top estimates in defiance of China slowdown
U.S. plane crash investigators head to China for 737 probe
Recommended newsletter for you /
China Green Bulletin Premium - Subscribe to join the Caixin green community and stay up to date with the most exclusive insights on ESG, energy and carbon. Sign up here.
Thanks for reading. If you haven’t already, click here to subscribe.
- MOST POPULAR