Changan Auto joins industry price war – China’s latest business and technology news
A summary of the top news in Chinese business and technology for May 31, 2017. Part of the daily The China Project news roundup "What is going on at Ivanka Trump’s Chinese shoe factory?"
Caixin reports that Changan, one of China’s largest domestic car manufacturers, has “joined an ongoing industry-wide price war to clear inventory,” making price cuts ranging from 4,000 to 18,000 yuan ($585 to $2,600) across its fleet. The company’s flatlined year-to-year sales growth for January through March, and startling 58 percent plunge in sales in April, illustrate its struggles to compete with the price cuts of carmakers such as Great Wall Motors and Audi AG.
Caixin notes one company that has remained above the fray and enjoyed striking success without price cuts: Geely Automotive. The company, known for its wildly popular sport utility vehicles (SUVs) and its high-profile takeover of Volvo Cars in 2010, enjoyed “total car sales surging 98% in the first quarter” of 2017. Read more about Geely’s remarkable rise in this The China Project feature.
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Private medical firms seek $1.5 billion tonic in new IPOs / Caixin
Shenzhen Mindray Bio-Medical Electronic, which delisted from New York last year, aims to raise “up to 6.63 billion yuan ($975 million)” through a new offering on the Shenzhen stock exchange, while WuXi Biologics is “one of China’s top biotech firms,” and aims to raise up to HK$4 billion ($514 million) through an IPO on the Hong Kong stock exchange. -
China’s big Airbnb rival is taking the battle overseas / CNN
“Tujia is chasing the rapidly growing number of Chinese people traveling abroad to popular destinations in Southeast Asia, Japan and South Korea. The company is currently seeking a fresh round of funds, in part to help expand products and properties abroad.” -
The hammer and sickle are making their way into some Hong Kong public companies / SCMP
“As many as 19 Chinese state companies listed on the Hong Kong Stock Exchange have established Communist Party committees. Whose rules do they hew to?” - Trade deal whets China’s appetite for U.S. beef / Financial Times (paywall)
- China is rapidly closing the innovation gap, European firms say / CNBC
- China factory PMI growth holds up in May, steel sector activity speeds up / Reuters
- Triumphs, and trials ahead, for China’s first large passenger jet / Caixin
- China’s Go masters and researchers are optimistic about the country’s AI future / MIT Technology Review
