Hi everyone. I’m Stephanie LI.
Coming up on today’s program.
China vows to consolidate the bloated electric vehicle industry;
Regulators intend to break up Alipay to create a separate app for loans;
Shenzhen unveiled more measures to integrate Qianhai with HK and Macao.
Here’s what you need to know about China in the past 24 hours
China’s new energy vehicle or NEV industry needs a shake-up, said top industry regulator on Monday as the country encourages mergers and re-organizations in the sector.
Shares of many electric-vehicle makers continued the downtrend today. Xpeng shed 0.2 percent in Hong Kong trading, and Li Auto dropped 2.3 percent. On mainland exchanges, BAIC BluePark New Energy Technology slumped 3.32 percent, yet BYD rebounded 3 percent.
China, which built its electric-car industry into the world’s biggest, is putting a new focus on making bigger and stronger makers, after a decade-long nurturing of the sector led to the emergence of too many players, which has ballooned to about 300, some of which are barely viable, Xiao Yaqing, the Minister for Industry and Information Technology(MIIT) told a press conference yesterday.
Media reported that regulators are considering setting a minimum production capacity utilization rate for the industry, and provinces that aren’t meeting it won’t be allowed to approve new projects until surplus capacity comes online.
The rapid growth of China’s EV market has been spurred by government subsidies to encourage consumers to switch to cleaner options. Total central government subsidies for NEV purchases stood at 33 billion yuan in the five years through 2020, MIIT data showed.
Greater Bay Area, Greater Future
Shenzhen has announced a series of measures for deepening the reform and opening up of Qianhai Cooperation Zone in a press conference yesterday. The plan mainly comprises six aspects, including deepening the liberalization of trade in services with Hong Kong and Macao, promoting the interconnected development of industries between Shenzhen and the two SARs, also connecting them to participate in high-level international cooperation.
Update on COVID-19
The Chinese mainland reported 59 new local cases yesterday, all from Fujian Province, in which 32 were in Xiamen and 24 in Putian.
Next on industry and company news
Chinese technology shares fell again Monday amid the latest moves from Beijing to reshape online businesses. Traders responded to a report that the government intends to break up Ant Group’s Alipay business and create a separate app for its loan business. Regulators have already ordered the company to separate the back end of the lending unit and bring in outside shareholders, media reported. The Hang Seng Tech Index finished 2.3 percent lower, with Meituan, Alibaba and Tencent dragging on the gauge.
Dongfang Youbo, a subsidiary of New Oriental Online, announced that it has decided to close the K12 subject training business yesterday. The company said it has enough money to process with students refunding and compensations for workers.
China's largest online audio platform Ximalaya filed for its Hong Kong IPO yesterday after dropping its plans to list in the United States. The prospectus shows that its revenue jumped 56 percent to 2.5 billion yuan in the first half-year, and the average monthly active users reached 262 million. But it also shows a widened loss of 323 million yuan.
Debt-ridden conglomerate HNA Group has finally secured strategic investors for its airline and airport businesses, seven months after it formally began restructuring as part of bankruptcy proceedings. Liaoning Fangda Group will take a stake in the airline business, and Hainan Development Holdings will snap up a chunk of the airport unit, according to a notice released by HNA Sunday.
China XD announced today that the State Council has approved the reorganization and integration of some subsidiaries of China XD Group and State Grid Co., LTD. The State-owned Assets Supervision and Administration Commission of the State Council shall be established to perform the duties of investor.
Huawei announced its new Smart Office high-end products including its very first All-in-One PC MateStation X on Monday. The tech giant released information of more than ten new products on the conference, including its first HarmonyOS equipped laser printer PixLab X1, two new laptops models, and the 27-inch MateView GT monitor.
13日晚，华为智慧办公新品发布会召开，这也是华为首次聚焦“智慧办公”场景而举办的专场发布会。发布会上，华为一口气发布了首款一体机产品MateStation X、首款搭载HarmonyOS的激光打印机华为PixLab X1、笔记本电脑家族的两位新成员华为MateBook 13s和华为MateBook 14s、显示器品类的新成员华为MateView GT 27英寸曲面显示器等十余款新品。
Wrapping up with a quick look at the stock market
Chinese stocks closed lower on Tuesday with the benchmark Shanghai Composite Index down 1.42 percent, at 3662 points. The Shenzhen Component Index closed 0.54 percent lower at 14626 points. The Hang Seng Index closed 1.21 percent lower to stand at 25502 points.
Biz Word of the Day
Bankruptcy is a legal proceeding carried out to allow individuals or businesses freedom from their debts, while simultaneously providing creditors an opportunity for repayment.
Executive Editor: Sonia YU
Editor: LI Yanxia
Host: Stephanie LI
Writer: Stephanie LI, ZHANG Ran, TIAN Chang
Producer: XIANG Xiufang
Sound Editor: ZHANG Ran, Andy YUAN
Graphic Designer: ZHENG Wenjing, LIAO Wanni
Co-produced by 21st Century Business Herald Dept. of Overseas News & SFC Audio/Video Dept.
Presented by SFC
21世纪经济报道海外部 南财音视频部 联合制作