China Press Review – October 17, 2019

Press review

China must tap the potential of its huge domestic market for economic growth to become a truly modern nation
To reach its centenary goal of being a ‘great socialist country’, China needs another three decades of strong growth. This is possible only if it transforms its growth model to spur a sharp and sustainable increase in home-grown demand
www.scmp.com

JD takes aim at lower-tier markets with re-brand of Pinduoduo clone
JD.com officially launched on Tuesday the re-brand of its Pinduoduo clone app JD Pingou, renamed Jingxi, as China’s e-commerce giants gear up for this year’s Nov. 11 Singles’ Day shopping festival.

JD takes aim at lower-tier markets with re-brand of Pinduoduo clone

Huawei revenue for the first 3 quarters rises 24% despite US blacklisting
Huawei’s revenue for the first three quarters grew by 24.4% year on year to RMB 610.8 billion (around $86 billion), the company said on Wednesday, showing little sign of slowing despite US sanctions earlier this year.

Huawei revenue for the first 3 quarters rises 24% despite US blacklisting

Huawei unveils new 5G antennae ahead of China ramp
Huawei Technologies on Wednesday launched a new generation of 5G mobile antennae, anticipating an acceleration in the pace of network upgrades led by the three operators in its vast Chinese home market.
www.reuters.com

Chinese central bank unexpectedly injects $38 billion of cash as growth slows
China caught traders off-guard with a surprise injection into the financial system via loans to banks, ahead of data on Friday (Oct 18) which is expected to show a further slowdown in the domestic economy. The People’s Bank of China added 200 billion yuan (S$38 billion) of one-year cash through the medium-term lending facility on Wednesday. It kept the interest rate steady. The move took traders by surprise, as the authorities usually inject liquidity when previously offered loans come due, and the next batch won’t mature until Nov 5
www.straitstimes.com

Big Bang in the Finance Industry in China
China’s protections guard dog authoritatively has uncovered the time period for nullifying outside proprietorship confinements on prospects, protections and store the executives organizations, the most recent sign that Beijing is quickening endeavors to open up its account division in the midst of its exhausting exchange war with the U

Big Bang in the Finance Industry in China

China’s Ant Financial in talks for loan of up to $3.5 billion at lower rate: Bloomberg
Ant Financial, an affiliate of China’s largest e-commerce company Alibaba Group (BABA.N), is in talks for a syndicated loan of up to $3.5 billion at a lower rate to slash debt costs, Bloomberg reported on Wednesday, citing unnamed sources.
www.reuters.com

China to deploy a national blockchain service network
China is now testing a nationwide blockchain service network (BSN), a service platform for underlying blockchain technology, state-run media Xinhua News reported Tuesday. The BSN is expected to help reduce the technical and economic threshold for blockchain applications, said Zhang Xueying, deputy head of the SIC.

China to deploy a national blockchain service network

With more US doors closing to China what are the supply chain options for its emerging AI champions?
China’s tech champions took a body check last week after eight of them were added to a US trade blacklist, preventing them from buying US technology The companies will shrug off US move, but ultimately they will have to find domestic alternatives to current US hardware
www.scmp.com

China stocks dip as trade talk optimism fades; HK flat
China stocks fell on Wednesday, as optimism over a concrete U.S.-China trade deal faded, while risk appetite was curbed by lacklustre inflation data. Hong Kong shares were little changed amid the city’s prolonged political crisis.
www.reuters.com

Baidu Ventures: AI in China has potential, but needs real business models
Unlike general funds that invest in various industries, Baidu Ventures is a $500 million independent venture fund focused only on artificial intelligence investments. Vice-president Felix Fang recently told TechNode that this focus has helped the firm to gain strong experience in the field.

Baidu Ventures: AI in China has potential, but needs real business models

US-China trade war will continue to weigh on private equity deal flow in the next year to 18 months, report says
About 40 per cent of Asian private-equity executives see the US-China trade dispute as having the biggest effect on deals, according to a Dechert/Mergermarket report Exits, fundraising to be more relevant as the top of the economic cycle approaches
www.scmp.com

China wants U.S. to reduce existing tariffs: BBG
According to Bloomberg, China wants the U.S. to reduce existing tariffs before it agrees to purchasing more U.S. agricultural products. This year, Chinese firms have brought 700,000 tons of pork from the U.S.- China’s pork imports surged in September as it continues to battle a shortage of the meat.
finance.yahoo.com

How Li-Ning Grew in a Gloomy Fashion Market
China’s apparel industry has been plagued by slow inventory turnover, which hurts a brand’s cash flow. Starting in 2015, Li-Ning’s inventory movement has seen a big improvement, and by 2018, their inventory was turning over 4.5 times faster than rival Anta’s and even faster than other Chinese apparel brands such as Bosideng. And with the inventory turnover improvement, Li-Ning’s cash holdings have grown — more than tripled since the beginning of 2015.

What Luxury Brands Can Learn from Footwear Giant Li-Ning

China Injects Billions as Economy Slows, Will Investors Turn to Bitcoin?
America is not the only country manipulating its money in order to prop up a flagging economy. Today China unexpectedly injected billions in cash to prevent a fall in interest rates as the economy flounders following months of trading tensions. Savvy investors turned to Bitcoin before, will they do it again?

China Injects Billions as Economy Slows, Will Investors Turn to Bitcoin?

Reaping the benefits of China’s opening financial sector
China has been gradually opening its financial sector since its ascension to the World Trade Organization in 2001. For almost two decades, foreign financial institutions in banking, insurance, securities and asset management have entered the Chinese market. Despite continued restriction on foreign investment, opening up the financial sector is playing an increasingly important role in China’s efforts to build a modern financial system.

Reaping the benefits of China’s opening financial sector

China orders winter emissions cuts, with tougher targets for cities that failed last year
PM2.5 levels must be reduced by average of 4 per cent in northern cities as part of ongoing anti-smog drive More than 5 million homes in specified cities will switch from coal to gas or electric heating by the end of October, Beijing says
www.scmp.com

Pentagon official says US is concerned by ‘heavier hand Beijing has taken’ in Hong Kong
Randall Schriver, assistant secretary of defence for Indo-Pacific security affairs, cites trend toward ‘less autonomy, more influence from Beijing’ His comments come as US House passes bill to sanction Chinese officials deemed responsible for ‘undermining basic freedoms in Hong Kong’
www.scmp.com

US passes bill praising Canada over detention of Huawei’s Meng Wanzhou
Document is one of four pieces of China-focused legislation approved by House of Representatives on Tuesday Chamber ‘commends’ Canadian government for ‘upholding the rule of law and complying with its international legal obligations’
www.scmp.com

‘UK not serious about New Silk Road’
The UK is too distracted by European relations to take full advantage of overland trade opportunities. This was said by Henry Tillman, a London based Belt and Road specialist. “The British are currently failing to fully exploit the opportunities.”

‘UK not serious about New Silk Road’

Beijing accuses US lawmakers of ‘sinister intention to destroy Hong Kong’, threatens to retaliate
Foreign ministry vows unspecified countermeasures after House of Representatives passes Hong Kong Human Rights and Democracy Bill Hong Kong does not have human rights and democracy issues, ministry says
www.scmp.com

Hong Kong’s Carrie Lam abandons speech after protests
Hong Kong leader Carrie Lam has been forced to suspend her annual address after being heckled in parliament.
www.bbc.com

Are China’s Tantrums Signs of Strength or Weakness?
China is supposed to be savvy. So why is it throwing a fit about a tweet, an app, and a gamer in a mask in the absence of any real threat?
www.theatlantic.com

Kweichow Moutai, world’s most valuable liquor maker, feels impact of China’s slowing economy, but analysts remain bullish
Kweichow Moutai, the world’s biggest liquor distiller, reported a slowdown in earnings for three consecutive quarters Still Chinese brokerages have raised their target price for the stock despite scepticism over its shipments
www.scmp.com

China’s TikTok tries to stay ahead of Washington’s tech backlash
Two former US lawmakers will be part of a team advising the company on an approach to vetting objectionable videos and moderating content The moves come as US social media firms face ever-rising Washington headwinds, including over failures to curb hate speech and political trolling
www.scmp.com

Chinese facial recognition tech installed in nations vulnerable to abuse
In this photo taken Sept. 25, 2019, a young Serbian rights group activist has her face painted to confuse the Huawei surveillance video cameras with face-recognition software installed in Belgrade, Serbia.
www.cbsnews.com

Alibaba’s Jack Ma Wants To Spur More Philanthropic Giving In China
Jack Ma expects China to have hundreds of thousands of business people with their own charitable foundations in the future, but the nation is really just getting started. “A lot of countries have a long history of creating philanthropic foundations, but China is just beginning,” he said during a dialogue with Forbes Chairman and Editor-in-Chief Steve Forbes while attending the Forbes CEO Conference in Singapore.
www.forbes.com

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