Links for Tuesday, September 6, 2022

Bad debt grows at state banks
China’s largest banks show wounds from property sector crisis / Reuters
“Five of China’s largest banks showed wounds from the ongoing property sector crisis, with bad debts linked to real estate surging in the first half of the year, even as they posted modest profits against the backdrop of an economic slowdown.”

Chinese EV makers breathe a sigh of relief
China’s electric car firms, which rely heavily on Nvidia, are safe from the U.S. chip ban — for now / CNBC
“U.S. restrictions on Nvidia chip sales to China won’t affect Chinese electric car companies because they’re using auto systems that don’t include the sanctioned products.”

A breakthrough achievement in China’s development of new energy
China Focus: China’s large solar-powered, near-space UAV makes maiden flight / Xinhua
“China’s independently-developed QMX50, a large solar-powered near-space unmanned aerial vehicle (UAV), made its successful maiden flight in Yulin, northwest China’s Shaanxi Province, on Saturday, the Aviation Industry Corporation of China (AVIC) said Sunday.”

Xiao Jianhua’s secret wealth transfer operation
Fortune of jailed Chinese billionaire’s family survives in exile / Bloomberg (paywall)
The relatives of mogul Xiao Jianhua, convicted in China after his 2017 abduction in Hong Kong, have quietly built an enigmatic family office involved in deals worth billions.

China helps lower global inflation
A slowing China helps rein in inflation around the world / WSJ (paywall)
“China is a key factor in falling costs for energy and commodities, but domestic factors are still keeping U.S. inflation high.”

Is Warren Buffett ditching China’s electric car giant?
BYD: Don’t fight Warren Buffett / FT (paywall)
Carmaker’s investors have ignored the good news and focused on whether Berkshire Hathaway will exit.

Baby bust in economic slowdown
China’s economic slump bodes ill for birth numbers / WSJ (paywall)
“Economic malaise and the impact of Covid-19 restrictions are causing some young Chinese to postpone plans to get married or have children, running counter to Beijing’s efforts to lift births.”

KPMG accused of ​​negligent audit work
KPMG sued for $830mn over ‘appalling’ Chinese audit / FT (paywall)

The global events industry sufferers from the absence of China
Global trade show industry’s struggle to recover without China / FT (paywall)
“Numbers are rising at events but concerns remain over lack of crucial Chinese participants.”

Dubious numbers about foreign investment in China
China ‘round tripping’ inflates foreign investment data / Bloomberg (paywall)
“China’s government data show foreign investment into the economy grew by almost a fifth this year,” but a closer look at the headline figure reveals that “much of the investment into China actually comes from Hong Kong.”

The rise of CALB
A new Chinese EV battery giant, CALB, has emerged / Bloomberg (paywall)
“The military-linked company is expanding fast, further cementing Beijing’s dominance of the supply chain and pushing past any geopolitical concerns.”

China tariffs still in place
Biden administration to maintain China tariffs while review continues / Reuters
“The Biden administration said on Friday it will keep tariffs on hundreds of billions of dollars worth of Chinese imports in place while it continues a statutory review of the duties imposed by former President Donald Trump.”

Chinese researchers can’t resist U.S. chips
Analysis: Banned U.S. AI chips in high demand at Chinese state institutes / Reuters
High-profile universities and state-run research institutes in China have been relying on a U.S. computing chip to power their artificial intelligence (AI) technology but whose export to the country Washington has now restricted, a Reuters review showed.

U.S.-China chip war continues
US ‘blockade’ set to turbocharge Chinese chip development / FT (paywall)
“Beijing expected to unleash new funding for its domestic semiconductor sector to come up with alternatives to US tech”

Divestment rumors at Tencent
Tencent divestment concerns add to China pressure / Bloomberg (paywall)
“A divestment would follow similar moves under consideration by Baidu Inc. and Alibaba Group Holding Ltd. as the internet giants seek to assuage regulators concerned about their sway over the industry.”