Caixin
Nov 04, 2022 09:54 AM
CX DAILY

CX Daily: Three Chinese Miners Ordered To Divest From Canadian Lithium Projects

François-Philippe Champagne, Canada's minister of innovation, science and industry. Photo: Courtesy of François-Philippe Champagne
François-Philippe Champagne, Canada's minister of innovation, science and industry. Photo: Courtesy of François-Philippe Champagne

Lithium /

Three Chinese miners ordered to divest from Canadian lithium projects

The Canadian government ordered three Chinese businesses to scale back their investment in lithium miners in the country, citing national security concerns over the supply of critical minerals and the nation’s green goals.

Subsidiaries of Zangge Mining Co. Ltd., Chengxin Lithium Group Co., Ltd. and Sinomine Resource Group Co. Ltd. were told Wednesday to begin divesting from Ultra Lithium Inc., Lithium Chile Inc., and Power Metals Corp. respectively.

“Rigorous scrutiny by Canada’s national security and intelligence community” prompted the order, which was based on “facts and evidence and on the advice of critical minerals subject matter experts,” according to a Wednesday statement from Canadian Industry Minister François-Philippe Champagne.

Lanzhou /

A father’s nightmare rescuing a three-year-old under Covid lockdown

A 32-year-old man in northwestern China’s Lanzhou sought help in rescuing his wife and 3-year-old son Tuesday from carbon monoxide poisoning. It turned into a three-hour nightmare of multiple phone calls to emergency services, a frantic effort just to leave the residential compound under Covid lockdown and a taxi ride to a hospital.

At the end, the father surnamed Tuo was told his son was dead. The wife recovered after an ambulance finally appeared to take her to the hospital.

Authorities in Lanzhou, the capital of Gansu province, pieced together a minute-by-minute account of what happened and acknowledged mishandling the emergency amid public questions about whether strict pandemic controls hampered the rescue.

FINANCE & ECONOMY

PMI /

China’s services activity extends contraction amid Covid outbreaks, Caixin PMI shows

China’s services activity contracted for the second consecutive month in October as Covid-19 outbreaks and strict containment measures disrupted business operations and crippled overseas demand, a Caixin-sponsored survey showed Thursday.

The Caixin China General Services Business Activity Index, which gives an independent snapshot of operating conditions in services industries such as retail and travel, dropped to 48.4 in October from 49.3 the previous month. Readings of less than 50 signal contraction.

The Caixin China General Composite PMI, which covers both the manufacturing and services sectors, slipped deeper into contraction to 48.3 in October from 48.5 the previous month, marking the lowest since May.

Property /

China expands debt guarantee program for property developers

State-owned China Bond Insurance Co. is expanding a debt guarantee program to help about a dozen property developers issue 20 billion yuan ($2.75 billion) of bonds to shore up an industry that’s mired in a liquidity crisis amid slumping housing sales.

Together with the National Association of Financial Market Institutional Investors (NAFMII) and the China Real Estate Association, China Bond Insurance summoned 21 private developers to a symposium Tuesday to update progress on previous guarantees for developers’ bond issuance and to listen to feedback.

Quick hits /

Zhongrong International Trust to sell $367 million of bonds in Singapore

Hong Kong follows Fed with rate hike, adding to economy’s woes

Fisher: China’s economy can weather a global recession — if one even hits

BUSINESS & TECH

The partnership is another tie-up between Tencent and China Unicom after a 2017 investment in which the social media giant acquired a 5.18% stake in the telecom company.

Tencent /

Tencent and China Unicom tie up in new joint venture

Chinese social media giant Tencent Holdings Ltd. and state telecom operator China Unicom were cleared by the country’s antitrust regulator to set up a joint venture to develop data and cloud-related businesses.

The State Administration for Market Regulation granted “unconditional approval” Tuesday for the deal. A Tencent unit will hold 42% of the new venture with a China Unicom subsidiary holding 48%. Employees will own the remaining 10%.

Evergrande /

Chinese bank moves to recoup billions of unpaid Evergrande loans

A regional bank in Northeast China that’s owed 32.6 billion yuan ($4.48 billion) by China Evergrande Group, one of the world’s most indebted real estate developers, has been given the go-ahead by a local court to auction or sell shares pledged by a subsidiary as loan collateral to recover the money.

Shengjing Bank Co. Ltd. obtained a notice of enforcement entitling it to sell a 30.99% stake in property-to-energy conglomerate Xinjiang Guanghui Industry Investment Group Co. Ltd., Evergrande said in a filing to the Hong Kong Stock Exchange Tuesday. The shares were pledged by Evergrande Group Co. Ltd., the subsidiary, when the parent company took out loans from the bank from 2020 to 2021.

Earnings /

Yum China profits rebound in third quarter amid strong takeout sales

Fast food giant Yum China Holdings Inc. reported a 98% year-on-year rise in net profit attributable to shareholders to $206 million in the third quarter as takeout sales helped offset the impact of Covid-19 restrictions on dining in, according to its financial statement published Wednesday.

The growth is a marked reversal from the previous two quarters, which recorded 54.1% and 56.5% year-on-year declines, respectively.

Quick hits /

China solar giant sees further turmoil in U.S. market next year

China locks down area around ‘iPhone city’ in blow to Apple

Long Read /

Archive Interview: How Li Qiang cheers private enterprise in Zhejiang

GALLERY

Covid puts fabric merchants on the street 

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