Day: September 28, 2021

How the Huawei Case Raised Fears of ‘Hostage Diplomacy’ by China

Chin@Strategy

WASHINGTON — The talks between the Justice Department and a top executive from Huawei Technologies, the Chinese telecommunications giant, had stretched over more than 12 months and two presidential administrations, and boiled down to one overarching dispute: whether Meng Wanzhou, daughter of Huawei’s founder, would admit to any wrongdoing. Since her arrest in 2018, Ms. Meng had refused to admit that she had misled the global banking conglomerate HSBC about Huawei’s dealings with Iran a decade ago, even though that was the key to her release from detention in Canada,…

Evergrande’s Struggles Offer a Glimpse of China’s New Financial Future

Chin@Strategy

HONG KONG — Xu Jiayin was China’s richest man, a symbol of the country’s economic rise who helped transform poverty-stricken villages into urbanized metropolises for the fledgling middle class. As his company, China Evergrande Group, became one of the country’s largest property developers, he amassed the trappings of the elite, with trips to Paris to taste rare French wines, a million-dollar yacht, private jets and access to some of the most powerful people in Beijing. “All I have and all that Evergrande Group has achieved were endowed by the party,…

What to Know About Evergrande

Chin@Strategy

What to Know About Evergrande Lauren HirschReporting for DealBook 💼 Why is Evergrande in trouble? China’s property market cooled and regulators are cracking down on the aggressive borrowing habits of developers. A bailout of Evergrande could encourage investors to pour more money into troubled companies. But a messy collapse could hit property prices and household wealth, and it could also make it harder for other Chinese companies to get money from foreign investors. NYT

Western Investors Are Divided on Buying Chinese Assets, With Good Reason

Chin@Strategy

Advertisement As Evergrande looks set to flunk its test on foreign bond repayment and new regulations roil markets, Western investors are divided on how to view Chinese assets. Some view offshore Chinese corporate bonds as a bargain, looking to buy the dip, while others are staying far away from adding such investments to their portfolios. While some overseas investors continue to look at firm fundamentals and the relative significance of target firms in the economy, others are focused on the direction of the financial and real economies under Xi Jinping.…

China’s power supply crisis puts squeeze on Apple’s supply chain, electronics manufacturing sector

Chin@Strategy

People line up at an Apple Store to buy the latest iPhone 13 handsets in Nanning, in southern China’s Guangxi Zhuang Autonomous Region, on September 24, 2021. China’s power crisis threatens to disrupt production at Apple’s manufacturing supply chain in the country, as power cuts to meet government energy use targets have forced factories to shut down. Photo: AP South China Morning Post