US$416 million deal for Global Eagle scuppered
The Asia Times editorial picks of important economics, policy and market-moving stories from Chinese-language media
HNA Group Co’s US$416 million deal for Global Eagle Entertainment, the world’s largest in-flight services provider, has been called off after failing to pass a US national security panel, Caixin reported. Global Eagle Entertainment said in a regulatory filing that the Hainan-based conglomerate’s deal had failed to obtain clearance from the Committee on Foreign Investment in the US, the report added.
CSRC to attract long-term capital into the market
A recently concluded work conference by the China Securities and Regulatory Commission has called for a greater infusion of long-term capital in the market, Yicai reported. The move is seen as welcome news for mainland-listed A shares where incremental funding has been lacking in the capital markets, the report said. As for CSRC, long-term capital offers the possibility of deleveraging without adding to the risk of financial bubbles, the report added.
Per capita online lending amounts shrink
Ppdai.com, one of the largest online lending platforms, said that 98.6% of loans issued in Q2 were below 10,000 yuan, while 78% were below 3,000 yuan, Yicai reported. Per capita loan amounts shrank to 65,721.9 yuan in June, compared to May, as the turnover slid due to business rectification.
Central SOE reform on track for 2017
State-owned enterprises (SOEs) under central government supervision will complete mixed ownership reform by the end of 2017, the Shanghai Securities Daily reported. The reforms will involve 3,200 subsidiaries of 69 central SOEs for a total 8 trillion yuan (US$1.18 trillion) in assets. More than 92% of subsidiaries under 101 central SOEs were transformed into limited companies in 2016 by the State-owned Assets Supervision and Administration Commission.
CSRC clarifies focus on direct financing
The China Securities and Regulatory Commission said on Wednesday that the focus on developing direct financing as a priority for the securities watchdog should not be mistaken as putting IPOs at the forefront, the Paper reported. Direct financing involves share and bond financing more than ten times the scale of IPOs, whereas IPOs are just a subset of share financing, the report added.
Shenzhen, Shanghai and Dongguan top competitive list
The General Administration of Customs said that Shenzhen, Shanghai and the southeast coastal city of Dongguan ranked as the top three cities respectively on the 2016 foreign trade competitiveness list, the National Business Daily reported. All eight cities on the top ten list excluding Beijing and Tianjin were coastal cities, four of which are located in southeast Guangdong Province.
China surpasses the US in Mideast investment
With the development of the Belt and Road initiative, China has become the top investor in the Middle East region, according to a new report by the Arab Investment and Export Credit Guarantee Corp, Caixin reported. China’s investment in the Middle East to date has reached US$29.5 billion, accounting for 31.9% of all foreign investment in the region. Comparatively, the US is third with 7.6% of all foreign investment (US$7 billion), coming after the UAE at 16.4% (US$15.2 billion).
CIER index indicates improved employment
China continued to see improvement in employment conditions in the second quarter of 2017, the Economic Information Daily reported, citing the China Institute for Employment Research (CIER) index. The average CIER index increased year on year in June to 2.26, with large enterprises recording 2.46 and around 1.0 for small and micro enterprises. An index of above 1.0 means job supply overweighs demand, while below 1.0 indicates the opposite.
Online gaming hits US$14.78 billion in revenue
The number of online gaming users continues to grow, topping 507 million in the first half of this year, a 3.6% year on year increase, the Shanghai Securities Daily reported, citing figures from the China Digital Entertainment Congress. Total sales revenue amounted to 99.79 billion yuan, a staggering 26.7% year on year increase. Meanwhile, sales revenue for online gaming based on the Chinese intellectual property market was 69.37 billion yuan, a 21.6% yearly increase.
Ride-share CEO to leave by September
Peng Gang, CEO of Yidao Yongche, a premium ride-sharing platform, is set to leave by the start of September, according to the Paper, citing anonymous sources. The company was a former LeEco affiliate and has been besieged with financial issues like LeEco.