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By Luo Guoping and Denise Jia / Sep 21, 2019 06:43 AM / Business & Tech

Photo: VCG

Photo: VCG

A Chinese company is expected to deliver its first locally designed DRAM chip by the end of this year, marking a major breakthrough in the country’s ambition to become technologically self-sufficient.

ChangXin Memory Technologies, a state-backed chip startup founded in 2016 in the eastern city Hefei, has started production of 8GbDDR4 chip, Chairman and Chief Executive Officer Zhu Yiming said Friday at the World Manufacturing Convention in Hefei.

The chip, though it still lags behind products of international giants, has been verified by a number of major clients at home and abroad. With the commercial production of this chip, China would be able to replace imported products in the middle and low-end areas, a senior industry participant said.

The chip project has a total investment of about 150 billion yuan ($21 billion), with a designed capacity of 120,000 chips a month in the first phase of production. Zhu said in May that the company has spent $2.5 billion on research, development and capital facilities.

Contact reporter Denise Jia (huijuanjia@caixin.com)


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By Bao Zhiming and Denise Jia / Sep 21, 2019 06:37 AM / Business & Tech

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Photo: VCG

Chinese tech giant NetEase Inc. will build its third pig farm as the government vows to boost domestic pork production in response to the African swine fever disaster.

NetEase, an online gaming and e-commerce company, signed a cooperation agreement with the municipal government of Shaoxing, a city in eastern China’s Zhejiang province, to build a pig farm that will produce half a million hogs a year. The company didn’t disclose the investment amount.

NetEase founder and Chief Executive Ding Lei said the company’s biggest opportunity is to find a more suitable pig breeding solution that will industrialize the traditional industry.

Ding announced NetEase’s entry into pig farming in 2009. It built its first pig farm in 2012 in Anji of Zhejiang province and a second in the southeastern province of Jiangxi.

With the new pig farm, expected to complete all three phases of construction by 2024, the company’s annual hog production will expand to 670,000, four times its current volume.

Earlier this month, the Chinese government issued a series of measures to boost pork production, including increased subsidies to support the construction of large pig farms.

Since last summer, China’s pig farmers have been hit hard by a deadly pig disease for which there is no cure or vaccine. The number of pigs dropped by more than a third in July from the previous year, official data showed. Meanwhile, the average pork price surged 46.7% year-on-year in August, the fastest pace in more than eight years.

Contact reporter Denise Jia (huijuanjia@caixin.com)

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By Bloomberg / Sep 21, 2019 04:49 AM / Business & Tech

Photo: Bloomberg

Photo: Bloomberg

Anheuser-Busch InBev NV’s Asian unit is likely to price in the lower half of the range in its initial public offering, according to a poll of investors, echoing market sentiment ahead of the earlier failed attempt at a listing.

On average, respondents expect the IPO to price 2% below the midpoint of the $46-$51 range, the poll conducted by Sanford C. Bernstein & Co. and Procensus Ltd. shows. The world’s largest brewer seeks to raise as much as $4.8 billion, roughly half of an earlier target, yet still the second-biggest initial stock sale globally this year.

A similar poll before AB InBev’s previous attempt in July, which was shelved because of soft investor demand, also pegged respondents’ expectations as being 2% below the target price range at the time. The earlier attempt sought a valuation of as much as $64 billion.

The company has since sold its Australian business, a part of the earlier Asian unit offering, for $11.3 billion. Another difference this time around is that the deal has attracted a $1 billion cornerstone investment from GIC Pte., a Singaporean sovereign wealth fund. The previous attempt, unusually for a Hong Kong flotation, didn’t have a cornerstone investor.

The pricing range looks to have been “carefully crafted to weed out investors looking to make a quick buck,” and to attract quality-focused ones willing to hold on, Bernstein analysts including Euan McLeish said in a separate note.

“Peak appetite” to participate came in at an enterprise value of $45 billion, 2.5% below the bottom end of the pricing range, the analysts wrote, adding that it implies “solid downside price support for the IPO.”

The poll had 82 responses, half from Asia and the rest split between the U.S. and Europe, with about 73% of the respondents being long-only investors.


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By Dave Yin / Sep 20, 2019 06:33 PM / Business & Tech

Photo: Dave Yin/Caixin

Photo: Dave Yin/Caixin

As the brand-new iPhone 11 hit the shelves in China on Friday, scalpers greeted the hundreds of shoppers who had flocked to Apple’s flagship store in Taikoo Li Sanlitun, Beijing’s upscale retail district.

“Stock available,” they called out to woebegone customers who had arrived to find the much-anticipated devices sold out in-store. They remain available online.

In the hands of the scalpers, the price of a high-end 512 GB iPhone 11 Pro soared as high as 13,200 yuan ($1,863), more than 1,400 yuan higher than its official retail price.

The basic iPhone 11 line was also available, but “nobody wants those,” one scalper said.

An Apple spokesperson declined to say how many iPhone 11s were made available for purchase in stores each day.

The American smartphone-maker is hoping for a return to form in China after last year’s models, the iPhone XS and iPhone XR, drew tepid responses from the country’s shoppers.

Preorder sales have been encouraging, with e-commerce giant JD.com announcing that more than 1 million iPhone 11 handsets were reserved within a day of becoming available Sept. 13.

But several shoppers in Taikoo Li were less than complimentary about the new handset. “It’s ugly,” said one shopper, who only gave his last name, Wang. “It doesn’t compare at all to the Samsung Note.”

Wang took umbrage with the phone’s design, which features three highly conspicuous rear-facing cameras. “This design would’ve been fine three years ago. Now it’s way too outdated,” he told Caixin.

Other customers targeted the device’s overall craftsmanship. “I don’t actually mind the camera,” said Liu Xingdong. “[But] the shininess of the frame is a little unrefined.”

Official prices for the iPhone 11 in China range from 5,499 yuan for a standard model to 12,699 yuan for the all-singing, all-dancing iPhone 11 Pro Max — significantly cheaper than last year’s XR.

Notably, the handsets lack 5G capability even as Chinese phone-makers race to release devices that can make use of next-generation networks.

But Liu was unconcerned about that, saying such networks will not be widely used for another couple of years. Neither did he expect ongoing trade tensions between China and the U.S. to derail his fellow citizens’ interest in the American tech giant.

“Once people know it’s cheap, lots of them will buy it,” he said.

Contact reporter Dave Yin (davidyin@caixin.com, @yindavid)

Related: What Tepid Reception? JD.com Notches Turbocharged iPhone 11 Preorders

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By Bao Zhiming and Zhao Runhua / Sep 20, 2019 05:52 PM / Business & Tech

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Photo: VCG

Tencent CEO Pony Ma has left his role as the legal representative of Tencent Credit, the internet behemoth’s credit-reporting arm, recent public information shows.

Tencent told Caixin the change was an internal management decision and had nothing to do with its overall business operations. Lin Haifeng, a Tencent executive in charge of fintech programs, has become Tencent Credit’s new legal representative.

It is not clear whether Ma’s decision to step down is linked to a recent legal case involving one of Tencent’s fintech affiliates. Earlier this month, the Shenzhen branch of China’s central bank fined the affiliate 1.49 million yuan ($210,000) for jeopardizing consumer rights and violating payment and settlement regulations. Tencent told Caixin the company immediately launched an internal investigation into the malpractice and will strengthen its management systems under the central bank’s guidance.

Tencent Credit was established in 2015 and holds an 8% stake in Baihang, a credit-scoring bureau backed by China’s central bank that acquires data from consumer finance firms and other sources to buttress the central bank’s credit database. Tencent Credit does not share data with Baihang, Caixin reported in May.

In January 2018, Tencent Credit launched a credit function on its ubiquitous social messaging app WeChat that allows users to see their own credit scores. But the service was suspended soon after its debut, reportedly owing to regulatory concerns.

Contact reporter Zhao Runhua (runhuazhao@caixin.com)

Related: New Credit Bureau Finds Good Data Is Hard to Come By

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By Matthew Walsh / Sep 20, 2019 03:58 PM / Environment

Photo: VCG

Photo: VCG

As climate activists walk out of their schools and workplaces around the world on Friday and nations prepare for a major UN summit next week, a new study reveals the impact local governments and companies can have on mitigating planet-warming greenhouse gas emissions.

Efforts to slash emissions by cities, regions, and companies in China could help the country exceed its international emissions-reduction commitments and potentially mitigate the damaging effects of climate change, according to a study published Wednesday by Yale University and Germany-based research organization the NewClimate Institute.

Researchers concluded that such efforts could cut China’s greenhouse gas emissions in 2030 by an amount equivalent to roughly 50 million tons of carbon dioxide per year beyond what current national policies would achieve.

That amount is roughly equivalent to less than 0.5% of China’s current greenhouse gas emissions, prompting researchers to describe the impact as “moderate.” But integrating local- and company-level emissions-cutting projects into international networks of cities, regions, companies, investors, and civil society actors could have a “significantly larger impact,” potentially reducing emissions in 2030 by the equivalent of up to 2.8 billion tons of carbon dioxide per year beyond current national policies, according to the report.

On Friday, climate change activists in more than 130 countries will participate in a global general strike in what is expected to be the biggest day of climate-related protests in history.

Contact reporter Matthew Walsh (matthewwalsh@caixin.com)

Related: In Depth: The Road Toward Creating the World’s Biggest Carbon Market

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By Lin Jinbing / Sep 20, 2019 01:17 PM / Finance

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Photo: VCG

China’s national reference rate for pricing one-year loans has edged down to 4.2%, official data showed Friday, meeting market expectations for a “rate cut” to help lower businesses’ borrowing costs amid an ongoing economic slowdown.

The one-year national loan prime rate (LPR), which is a reference point for pricing bank lending, was set 5 basis points lower than its previous fix that was released a month earlier, according to data from the China National Interbank Funding Center, an entity under the central bank.

The five-year-plus national LPR, a reference for pricing loans with the same maturity such as most mortgages, remained unchanged at 4.85%.

Last month, the People’s Bank of China furthered interest rate reform by ordering lenders to use the national LPRs, instead of its benchmark lending rates, as a reference for setting loan rates. The change is part of the central bank’s efforts to liberalize interest rates by giving the market more influence.

The national LPRs are set by averaging 18 designated commercial banks’ own LPR quotations — the rates they charge their most creditworthy borrower — after discarding the lowest and the highest quotes. The national LPRs are updated on the 20th day of each month.

Contact reporter Lin Jinbing (jinbinglin@caixin.com)

Related: Four Things to Know About How Loans Now Get Priced in China

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By Zhao Runhua / Sep 20, 2019 12:48 PM / Business & Tech

Photo: VCG

Photo: VCG

Chinese internet giants are quickly cottoning onto the benefits of offering open-source technologies to global developers.

Tencent is the latest to throw its hat into the ring. The company announced Wednesday that it is allowing developers to use an open-source operating system to create an internet-of-things (IoT) projects that will allow Tencent to improve the performance of its IoT solutions and strengthen its foothold in the sector.

Called “TencentOS tiny,” the operating system is lighter, requires fewer resources, and uses less energy compared with other major systems, according to a Tencent release. The company also said it hopes TencentOS tiny will encourage developers to create IoT projects for smart cities, intelligent connected vehicles, and digital wearables — sectors that Tencent is aggressively targeting.

TencentOS tiny also supports development solutions for some mainstream chip designs backed by leading companies such as NXP Semiconductors, STMicrolectronics, and China’s own Huada Semiconductor, according to Tencent.

The open-source launch of TencentOS tiny is just one of more than 80 Tencent-backed open-source projects, some of which involve China’s ubiquitous social networking app WeChat, according to research by Caixin.

In 2018, Tencent became a platinum member of the respected Linux Foundation, a nonprofit organization for open-source innovation backed by the Linux operating system.

Contact reporter Zhao Runhua (runhuazhao@caixin.com)

Related: Alibaba Chip Subsidiary Launches First Product Using Open-Source Architecture

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By Bloomberg / Sep 20, 2019 10:25 AM / Business & Tech

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Photo: VCG

(Bloomberg) — Shenzhen Transsion Holdings Co., a Chinese handset maker largely unknown outside of Africa, has priced its initial public offering at double the valuation of Apple Inc.

Transsion, whose mobile handsets outsell iPhone and Galaxy smartphones in Africa, is going public on Shanghai’s Nasdaq-style Star Board, setting its IPO at 35.15 yuan ($4.95) a share, implying a trailing earnings multiple of 42.8 times, according to a filing published on Wednesday.

That compares with Apple’s 18.98 times and fellow rival Samsung Electronics Co.’s 9.92 times, according to data compiled by Bloomberg. Fellow Chinese smartphone maker Xiaomi Corp. is trading at 17.8 times estimated earnings for the next four quarters.

Rich valuations are nothing new on the Star market, where regulators removed an unwritten valuation cap on companies going public that has led to some eye-popping multiples. Shenzhen Chipscreen Biosciences Co. set a record on the tech board with an IPO price that represented an earnings multiple of 467.51 times.

Since founding the Tecno Mobile brand in 2006, founder Zhu Zhaojiang has overseen an expansion that now claims a 48.7% market share in Africa, according to a previous filing. Transsion shipped 94.44 million mobile phones to Africa in 2018, out of a total of 124 million global shipments.

The sky-high valuations on the Star market have been met by equally elevated gains. Since it launched in the middle of this year, 29 companies have listed with an average surge of around 150% from their IPO prices, according to data compiled by Bloomberg.

Contact editor Matthew Walsh (matthewwalsh@caixin.com)

Related: Africa-Dominating Chinese Handset Player Registers on Shanghai High-Tech Board

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By Wu Yujian and Denise Jia / Sep 20, 2019 03:36 AM / Finance

Photo: VCG

Photo: VCG

Dajia Insurance Group, created to take over parts of fallen Anbang Insurance Group Co. Ltd.’s assets, launched an online shop to sell insurance products.

Dajia was set up in June to receive Anbang’s life insurance, annuity insurance and asset management operations and some of the assets of its property and casualty insurance unit. The other units will also launch official websites soon.

Currently there are only four insurance products available for preorder in the online shop, covering high-end medical insurance, accident-injury insurance for motor vehicle drivers and passengers, health insurance for severe illness treatment costs and loss of income, and life insurance.

Dajia was jointly established by state-owned bailout fund China Insurance Security Fund Co. Ltd., state-owned Shanghai Automotive Industry (Group) Corp. and state-owned oil giant China Petrochemical Corp.

Contact reporter Denise Jia (huijuanjia@caixin.com)

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By Matthew Walsh / Sep 19, 2019 06:27 PM / Business & Tech

Photo: VCG

Photo: VCG

China has started building the world’s highest power transmission and transformation project in remote parts of the Tibet Autonomous Region, state news agency Xinhua reported Tuesday.

Towers along the 1,700-kilometer route between Xigazê, in the southern part of the region, and the far western prefecture of Ngari stand at an average altitude of more than 4,000 meters, the report said.

The project, which spans tricky terrains like swamps and permafrost, is part of a 7.4 billion yuan ($1 billion) project that aims to bring more reliable electricity to 380,000 people along the line. At present, Ngari’s power grid is separate from the rest of Tibet.

The project will also facilitate the transfer of clean energy from Tibet to countries in southern Asia, Xinhua said, citing unnamed industrial sources.

One of China’s poorest province-level jurisdictions, Tibet was only fully electrified in 2011. Yet the power supply remains unstable in some areas, many of which rely on small-scale hydropower stations and suffer frequent blackouts.

Since 2016, the national government has ramped up electricity upgrades in Tibet. A “stable” power supply was available to 70% of Tibetans by 2017 and the government aims to extend that to 97% of the population by 2020, according to a 2017 Xinhua report.

The Chinese government also sees Tibet as a valuable source of renewable energy, particularly hydropower, which can then be transferred to other provinces. The practice has proven controversial as the damming of rivers, some of them transnational, can damage the ecology and economies of places farther downstream, advocates say.

Contact reporter Matthew Walsh (matthewwalsh@caixin.com)

Related: State Electricity Giant Now Gets Half Its Power From Cleaner Sources, Company Says

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By Dave Yin / Sep 19, 2019 05:41 PM / Business & Tech

Photo: VCG

Photo: VCG

Top Chinese lithium-ion battery maker CATL has been on a tear this past year, announcing new investments worth hundreds of millions of dollars. Now we’re finally getting word on how it might pay for some of those.

Contemporary Amperex Technology Co. Ltd. (CATL) has just announced that China’s stock regulator has approved its plan to issue up to 10 billion yuan ($1.4 billion) worth of corporate bonds, according to a Thursday filing to the Shenzhen stock exchange. The company plans to issue the notes in multiple installments, the first within the next 12 months and the rest within 24 months, it said.

Though CATL did not say what the funds will be used for, chances are much of the money could go to its recent flurry of new projects to promote its lithium battery business both at home and abroad. The company is paying AU$55 million ($37.33 million) for 8.5% of Western Australian lithium exporter Pilbara. But its biggest investment is a $2 billion battery factory it’s building in Germany to supply BMW and other customers.

CATL’s profits surged 130.8% in the first half of the year thanks to booming electric car sales in the world’s largest auto market. However, both the battery maker and rival BYD warned that sales could weaken as Beijing phases out subsidies for new-energy vehicles (NEVs), which had fueled breakneck growth in the industry.

Chinese sales of NEVs contracted in July for the first time since the start of 2017. Sales dropped for a second straight month in August, declining 16% from a year earlier to 85,000 units.

Contact reporter Dave Yin (davidyin@caixin.com, Twitter: @yindavid)

Related: China’s Battery Leader CATL in Supply Partnership With Bosch

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By Matthew Walsh / Sep 19, 2019 05:06 PM / Business & Tech

Photo: VCG

Photo: VCG

Internet giant Alibaba has recruited two acclaimed Chinese artificial intelligence (AI) experts for senior positions at its AI research laboratory in a pivot toward more complex forms of human-computer interaction, the company said in a Wednesday press release.

Chen Ying, a former principal engineer at U.S. telecoms company Qualcomm and researcher at Finnish firm Nokia, has joined Alibaba AI Labs as its chief scientist specializing in AI and edge computing, the statement said.

In addition, Tan Ping, an associate professor of computer science at Canada’s Simon Fraser University who specializes in realistic 3D reconstruction technology and previously worked in AI for Beijing-based internet security firm Qihoo 360, will head the labs’ computer vision section, according to the statement.

The appointments show that “with the imminent arrival of 5G high-speed internet, Alibaba AI Labs have already started transitioning from voice interaction to the more information-heavy and imaginative field of visual interaction,” the company said, adding that this may allow its smart speaker Tmall Genie to offer users “surprising” new visual functions in future.

Both Chen and Tan will earn million-dollar annual salaries as part of their arrangement with Alibaba, the company said.

Alibaba AI Labs is part of the company’s Damo Academy, a scientific and technological research arm founded in 2017. The labs focus on voice-assisted technology, industrial design, intelligent manufacturing, and robotics, according to the Damo Academy website.

Contact reporter Matthew Walsh (matthewwalsh@caixin.com)

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By Hu Yue and Liu Jiefei / Sep 19, 2019 04:59 PM / Finance

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Photo: VCG

Financial regulators in Eastern China’s Zhejiang Province have doubled down on their efforts to enforce a ban on consumers using loans and credit cards to invest in the stock and property markets, but a banking industry executive has questioned whether they can effectively implement and monitor the rules.

There is a longstanding prohibition on the use of consumer loans and credit cards to make down payments for homes and to invest in the stock, bond, gold and futures markets, asset management products and private lending. The China Banking and Insurance Regulatory Commission’s (CBIRC) Zhejiang bureau recently told banks in the province to strengthen controls on lending for personal consumption and ensure that the money is not being diverted into these banned areas, according to a notice seen by Caixin.

But a banking executive complained that it’s difficult to implement the rules and that they don’t have the technology to do what the regulator is requiring. One bank can only monitor what is going on within the bank, and if clients transfer money to a different bank or outside the banking system, such as to third-party payment providers like Alipay, the bank can’t track the entire transaction chain, a banking executive said. A proper system needs to be designed from the top instead of leaving regulation to the individual bank, the person added.

In June, the CBIRC’s Zhejiang bureau fined the Hangzhou branch of the Bank of Nanjing 1.7 million yuan ($240,000) for failing to manager consumer loans properly after finding borrowed money had been used to buy homes, stocks and invest in privately offered equity funds.

Read the full story on Caixin Global later today.

Contact reporter Liu Jiefei (jiefeiliu@caixin.com)

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By Teng Jing Xuan / Sep 19, 2019 02:53 PM / Society & Culture

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Photo: VCG

The trial of a journalist accused of fabricating stories has raised concerns over local governments stretching the definition of criminal “disorderly conduct” to silence dissent.

Li Xiaogen, also known as Li Gen, has been accused of offenses including disorderly conduct and “provoking trouble” for articles he wrote for the Hunan Contemporary Business Daily in 2018.

Li published stories about the seizure of a village-owned coal mine based on documents provided by villagers in Northwest China’s Shaanxi province.

Those documents were forged, but Li claims he didn’t know this when he published his stories.

Prosecutors argue he caused damage to the government’s reputation and online “chaos,” during a trial that took place between the end of August and early September this year at a court in Shenmu, a county-level city under the administration of Yulin, Shaanxi.

A judgment has yet to be reached, but Li and other defendants involved in this case argue that they were themselves victims of fraud, while a prominent academic says Li’s actions aren’t severe enough to constitute a criminal offense.

Read the full story on Caixin Global later today.

Contact editor Matthew Walsh (matthewwalsh@caixin.com)

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By Tang Ziyi / Sep 19, 2019 02:35 PM / Business & Tech

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Photo: VCG

Swiss automation and power technology giant ABB Group is partnering with Chinese telecom behemoth Huawei to develop China’s industrial cloud systems, the two companies announced Wednesday at Huawei’s annual Connect conference in Shanghai.

ABB said it will offer its platform, dubbed ABB Ability, to help industrial customers digitize their manufacturing processes using Huawei’s cloud infrastructure. Launched in 2017, the platform combines industrial machines with industrial internet of things analytics and entered the Chinese market in June that year. ABB’s German rival Kuka, which is owned by Midea Group Co. also has a strong foothold in the Chinese market.

ABB Ability aims to raise production efficiency by offering services including predicting equipment malfunctions before they happen and collecting data during the manufacturing processes, ABB said in a previous statement.

“This collaboration enables us to further grow ABB’s industrial digital solutions in the Chinese market, which represents our second largest customer base,” said Guido Jouret, chief digital officer of ABB.

Earlier this week, ABB broke ground on its new industrial robot factory in Shanghai, with an annual production target of 100,000 units.

Contact reporter Tang Ziyi (ziyitang@caixin.com)

Read more: Swiss Robot-Maker Sees Promise in China, Despite Recent Sluggish Demand

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By Matthew Walsh / Sep 19, 2019 02:27 PM / Business & Tech

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Photo: VCG

Nasdaq-listed plasma-based biopharmaceutical company China Biologic Products has received a potential shot in the arm in the form of a $4.6 billion buyout offer, according to a Wednesday press release.

The offer price of $120 per share represents a 16.3% premium to China Biologic’s close of $103.10 on Wednesday.

The company, a leading provider of blood plasma-based therapies in China, received the proposal from a group of six buyers, including Beachhead Holdings and CITIC Capital China Partners, according to the release.

The offer is the second such proposal this week, after New York-listed Chinese car comparison website Bitauto received a similar proposal from internet giant Tencent and its private equity partner Hammer Capital.

Contact reporter Matthew Walsh (matthewwalsh@caixin.com)

Related: Tencent Announces Buyout Plan for New York-Listed Car Site

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By Bloomberg / Sep 19, 2019 04:46 AM / Business & Tech

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Photo: VCG

(Bloomberg) — Shanghai Henlius Biotech Inc. priced its Hong Kong initial public offering at the bottom of the marketed range, raising $410 million in the city’s first major listing since July.

The Fosun-backed group priced its sale of about 64.7 million shares at HK$49.60 each, according to a Hong Kong stock exchange filing Wednesday evening. Henlius had marketed the shares at HK$49.60 to HK$57.80. The company could raise as much as $471 million if an over-allotment option is exercised.

Henlius’s IPO is the first to be completed since Jinshang Bank Co.’s $474 million listing in July, data compiled by Bloomberg show, and is a test of investor sentiment at a time the financial hub is coming under pressures from massive protests that show no sign of abating and a trade war between the U.S. and China.

Hong Kong badly needs IPO volumes to pick up as it’s currently trailing New York, the Nasdaq and Shanghai in overall funds raised, the data show. Companies have raised $10.8 billion via first-time share sales in Hong Kong so far this year, less than half the amount in the same period last year.

Anheuser-Busch InBev NV’s decision to relaunch a $4.8 billion IPO of its Asian unit on Wednesday signals a vote of confidence in Hong Kong as a listing venue and is set to give a much-needed boost to the exchange.

Henlius attracted four cornerstone investors to the offering, including Qatar Investment Authority, which agreed to buy $90 million of shares, according to the prospectus.

The Chinese company recorded a loss of 158 million yuan ($22.3 million) in the first quarter of this year, more than double that of the previous year, the prospectus shows.

Henlius will debut on the Hong Kong stock exchange Sept. 25.

China International Capital Corp., Bank of America Corp., CMB International, Fosun Hani Securities Ltd. and Citigroup Inc. are joint sponsors of the deal, according to the prospectus.

Related: Fosun Biotech Unit Henlius Aims to Raise $477 Million in Hong Kong IPO


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By Han Wei / Sep 19, 2019 04:40 AM / Business & Tech

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Photo: VCG

China’s mobile game developers have steadily restored revenue growth this year from a sharp slowdown last year during a government suspension of new-title approvals, according to a recent report (link in Chinese).

Mobile game revenue rose 21.5% year-on-year in the first half this year, reviving from 12% growth in the same period last year, although that was still less than half the 50% gains over previous years, according to data consulting firm Questmobile. The number of new monthly active users also showed faster growth, reaching 691 million by the end of June, the company said.

Authorities halted approval of new games for nearly nine months last year starting in March as part of efforts to rectify the online game industry and battle addiction among young people. Approvals were resumed late last year, but regulators later limited the number of new game approvals in a bid to enhance quality control.


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By Denise Jia / Sep 19, 2019 03:08 AM / Business & Tech

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Photo: VCG

China’s cybersecurity industry is expected to reach 63.1 billion yuan ($8.9 billion) of revenue in 2019, up 23% from 2018, according to a report released Wednesday by a research institute under the country’s Ministry of Industry and Information Technology.

The development of 5G technologies, artificial intelligence and industrial internet have increasingly higher requirements for network security, expanding the demand for cybersecurity, according to the 2019 white paper on China’s cybersecurity industry released by the China Academy of Information and Communications Technology (CAICT).

The continuous optimization of China’s cybersecurity policy has provided a good institutional environment for the industry, said Wang Zhiqin, deputy director the CAICT.

There are nearly 3,000 cybersecurity companies, an increase of 8% from 2017. One-third of the companies are based in Beijing, 13% in Guangdong and 10% in Shanghai, according to the report.

Profit growth of listed cybersecurity companies slowed in 2018 but was still much higher than the global pace. The 10 major players posted average profit of $38 million in 2018, 7% higher than in 2017. The slower growth reflected pressures from increased research and development costs, employee salaries and stiff competition, the report said.

Contact reporter Denise Jia (huijuanjia@caixin.com)

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