Stocks tumble amid tightening regulation – China business and technology news from April 24, 2017
A summary of today’s top news in Chinese business and technology. Part of the daily The China Project news roundup "A second subdued Xi-Trump phone call."
Chinese stocks on April 24 registered their biggest one-day loss — the Shanghai Composite Index fell 1.6 percent, while the CSI 300 index fell 1.3 percent — since mid-December last year, amid expectations of tighter regulation from both the insurance and banking sectors, CNBC reports. Bloomberg explains that “China’s authorities are taking advantage of an improving economy to reduce financial-system risk by tightening the screws on leverage, while the banking regulator said it will crack down on irregularities in the financial sector.”
Recently, the increased visibility of so-called shadow banking and the $436 million fraud case at Minsheng Bank in Beijing have raised concerns about financial risk. One analyst said on April 23 that even if the Minsheng Bank case does not forecast a collapse of more wealth management products, it may indicate larger systemic risk and a pressing need for more transparency in financial transactions.
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Opinion: Puffing across the ‘One Belt, One Road’ rail route to nowhere / SCMP
“Yes, rail is quicker, taking roughly half the time of the sea journey. But it is hard to think of any goods for which it would be worth paying such a hefty premium to get them to their destination in 18 days rather than 35,” writes Tom Holland. -
China’s first big jetliner clears final hurdle before flying / CNN
“China will join the ranks of the few nations that have developed homegrown large airliners.” -
WeChat user and business ecosystem report 2017 / TechNode
WeChat’s owner, Tencent, reports on survey results of its users. -
How did a small Chinese airline become the king of acquisitions? / SCMP
“Chinese media wonder — and then suddenly don’t” about HNA Group’s global ambitions. -
Chinese billionaires amass in the country’s heartland / CNBC
China Entrepreneur Club, “an invite-only group composed of 55 Chinese billionaires, at last count,” gathered in Zhengzhou, Henan Province. - Local, global security firms in race along China’s ‘Silk Road’ / Reuters
- Asset managers rush to launch onshore funds in China / Financial Times (paywall)
- China cools growth in wealth products worth trillions of dollars / Bloomberg
