Links for Thursday, September 15, 2022

China may issue a fuel export quota
Diesel margins tank as market weighs possible China exports / Bloomberg (paywall)
“The cost of diesel is plunging around the world as traders weigh the impact of a potential new quota for Chinese fuel exports.”

Hong Kong launches new attempt to attract more tech companies
Hong Kong exchange to lower revenue threshold for hard-tech listings / Reuters
“The Hong Kong stock exchange is considering lowering the revenue threshold for hard-tech IPOs to accommodate companies in fields including new energy, artificial intelligence, and autonomous vehicles, according to a report by Reuters.”

China keeps up pressure to cut coal prices as winter looms
China warns coal companies against dual contracts, keep prices stable / Reuters
“China’s state economic planner on Thursday warned coal companies operating at ports in the Bohai Bay region to comply with their long-term contracts to keep prices stable ahead of the peak winter demand period.”

China looks to turn housing market around
China property shares rally on hopes of more relaxation measures / Reuters
“Shares of Chinese property developers rallied on Thursday on hopes that cities in the mainland will roll out more relaxation measures to boost the embattled sector.”

Are political issues surrounding Chinese stocks just noise?
Kevin O’Leary says it’s ‘crazy’ to avoid Chinese stocks, and it ‘makes no sense whatsoever’ /
CNBC
“Avoiding the Chinese market is ‘crazy’ and ‘makes no sense whatsoever’ in light of how cheap Chinese stocks are right now, said Kevin O’Leary of O’Shares Investments.”

U.S. tightened control over outbound capital in Chinese sectors with national security risks
Tight focus is key as U.S. hones policy to curb outbound China investment, report says / SCMP (paywall)
“New U.S. outbound investment restrictions — largely directed at China and often garnering strong resistance from the U.S. business community — should avoid being overly broad and ideally fill in gaps not covered by other agencies, laws and regulations, trade experts and a White House official said on Wednesday.”

Shinzo Abe’s funeral will have Taiwanese guests
Taiwan to send a delegation of three, including former premier, to Shinzo Abe state funeral in Tokyo / SCMP (paywall)
“Taiwan will send a three-person delegation to attend the state funeral of former Japanese prime minister Shinzo Abe this month, including a former parliament speaker and a former premier, the island’s presidential office said on Thursday.”
Former Taiwan legislative speakers to attend Shinzo Abe state funeral / Focus Taiwan
“Former Legislative Yuan speakers Su Jia-chyuan (蘇嘉全), who is currently chairman of the Taiwan-Japan Relations Association (TJRA), and Wang Jin-pyng (王金平) will attend the state funeral of former Japanese Prime Minister Shinzo Abe, who was assassinated in early July, as official representatives of Taiwan, the Presidential Office said Thursday.”

Queen Elizabeth’s funeral will have Wang Qishan
Chinese Vice-President Wang Qishan expected to attend Queen Elizabeth’s state funeral, diplomatic sources say / SCMP (paywall)
“Wang is expected to arrive in the British capital on Sunday, a day before the funeral at Westminster Abbey, which is likely to be attended by hundreds of foreign dignitaries.”

Will the Philippines take down trafficking rings targeting Chinese women?
Philippines urged to ‘protect Chinese citizens’ amid kidnapping wave in gambling sector / SCMP (paywall)
“Chinese women are reportedly being targeted in a new wave of gambling-related kidnappings in the Philippines, to the alarm of Beijing’s envoys in Manila and the local Filipino-Chinese community.”

Xi’s new era of global leadership
Why China’s President Xi Jinping holds so much global power / TIME (paywall)
“Many people still assume the US President is the most powerful person in the world. But times have changed. In recent years we have observed two parallel developments: the President of the United States has lost power while the president of China has gained it.”

Jimmy Lai’s national security case
Jimmy Lai’s global legal team urges U.S. to pressure China at UN / Bloomberg (paywall)
“An international team of lawyers working for jailed Hong Kong media tycoon Jimmy Lai are calling on Western governments to make his upcoming national security trial a greater foreign policy priority, as Beijing curtails freedoms in the financial hub.”

Iran-China relations
Iran-China ties could strengthen if sanctions lift, analyst says / CNBC
“Iran will need sanctions to be lifted if it hopes to strengthen economic ties with China — and that can only come with a successful nuclear deal, one analyst told CNBC.”

Tennis prodigy finds online fame
‘Bamboo basket tennis boy’: China’s Wa ethnic teen carrying racquets in traditional holder to honour culture an internet sensation / SCMP (paywall)
“A rising tennis star has become the latest internet celebrity in mainland China after a picture of him using a bamboo basket, a traditional everyday item of the Wa ethnic group, appeared online.”

Tough year for restaurant business in Hong Kong
Hong Kong facing wave of restaurant closures, with 8,000 businesses chased over unpaid rent after end of government protection scheme / SCMP (paywall)
“Hong Kong is facing a wave of restaurant closures with landlords chasing about 8,000 businesses over unpaid rent, an industry representative has warned, after a popular bakery chain became the latest to succumb following the end of a payment deferral scheme backed by the government.”

New music festival in Hong Kong
Hong Kong’s Tone Music Festival to give city’s live-music scene a boost after two years of restrictions / SCMP (paywall)
“While Canto-pop concerts and music festivals have resumed in the city over summer, the Tone Music Festival is the largest and most diverse since the pandemic began. The event at the AsiaWorld-Expo Arena on Lantau in October will feature more than 40 acts.”

Self-made Chinese businesswoman hits back at jealous trolls
‘Girls, protect yourselves’: Chinese woman cyberbullied for Porsche purchase in full calls police, gets an apology in rare victory / SCMP (paywall)
“A businesswoman in China was cyberbullied after she posted pictures of a Porsche she bought with full payment, with online bullies calling her a ‘prostitute’, claiming she could not have afforded the luxury car.”

No government-smearing posts in Beijing’s Hong Kong
Jobless man jailed for sedition after sharing social media posts that attacked Beijing and Hong Kong government / SCMP (paywall)
“A 53-year-old man was on Thursday jailed for four months under a colonial-era sedition law after he shared 23 social media posts that attacked Beijing and the Hong Kong government or called for the city’s independence.”

Xi and Putin meet in Uzbekistan
Putin acknowledges China may have ‘concerns’ about the Ukraine war / NYT (paywall)
“President Vladimir V. Putin of Russia said on Thursday that Moscow understood that China had ‘questions and concerns’ about the war in Ukraine — a notable, if cryptic, admission from Mr. Putin that Beijing may not fully approve of Russia’s invasion of Ukraine.”
Opinion | The China-Russia alliance is pushing Ukraine toward Taiwan / Washington Post (paywall)
“Almost seven months into the Russia-Ukraine war, China is still claiming to be a neutral party, despite the evidence. And when Vladimir Putin meets Xi Jinping this week, the falsity of that claim will come into full and dramatic view.”
Xi Jinping and Vladimir Putin speak in person for first time since Russia invaded Ukraine / SCMP (paywall)
“Xi Jinping told Vladimir Putin on Thursday that China is ready to work with Russia ‘in extending strong support to each other on issues concerning their respective core interests’, according to state news agency Xinhua.”
China’s Xi meets Putin for first time since Ukraine invasion / Bloomberg (paywall)

Investment opportunities in China, where inflation isn’t too bad yet
China and Japan are worth a fresh look from investors / Nikkei Asia (paywall)
Joseph Little, the global chief strategist for HSBC Asset Management, writes: “For investors with large global allocations to Europe and the U.S. — and their synchronized inflation problems — uncorrelated Asian exposure is valuable. In a scenario where inflation is persistent, rates continue to rise and global stocks struggle, an allocation to Asia could serve investors well.”

Russia and China strengthen military ties
Russia and China hold joint naval patrols in the Pacific, Moscow says / SCMP (paywall)
“Crews are carrying out exercises involving artillery and helicopters to strengthen cooperation between the countries, according to Russian defense ministry.”

Will official digital yuan nudge Chinese mobile-payment giants out of the market?
China’s payment duopoly may struggle to survive / Washington Post (paywall)
“Alipay and WeChat Pay’s dominance of China’s retail payments was scripted over the past decade on the back of the humble quick recognition [QR] code. The same dotted squares could now start to undermine their moat.”

China faces currency conundrum
China’s currency dilemma is worse than it appears: Economist / Barron’s
China’s offshore yuan breaches key level of 7 per U.S. dollar for the first time since July 2020 / SCMP (paywall)

Electric cars: Ambassador Qin Gang warns U.S. against decoupling
China’s envoy to US warns against cutting nation out of EV chain / Bloomberg (paywall)
Qín Gāng 秦刚, “China’s ambassador to the U.S. warned against the potential risks of trying to cut the country off, using a visit to the Detroit auto show to highlight the ‘intertwined’ interests of the world’s two biggest economies.”