CX Daily: It’s Curtains for China’s Local Financial Asset Exchanges
TOP STORIES
Exchanges?/
China’s regional financial asset exchanges (LFAEs) were once lauded as venues for local small and midsize companies and financial institutions to sell nonperforming assets. Now they are being shut down as part of a broader regulatory effort to stamp out illegal fundraising.
Despite repeated crackdowns to clean up LFAEs in recent years, the government finally called time on the exchanges in November. Financial authorities in Hunan and Liaoning provinces, the provincial capital of Shaanxi, and the municipality of Chongqing revoked the business licenses of their official LFAEs in March. Those in Jilin, Jiangxi and Shandong provinces, as well as Qingdao, a major city in Shandong, followed suit in May, while Shenzhen’s official LFAE voluntarily applied to exit the industry. ?
Biotech?/
Faced with rising global competition in the biotech sector, China is overhauling its stringent, decade-old regulatory system covering human genetic resources to encourage development of new medical treatments.
The shift may dramatically alter the global state of play in biotechnology. With the world’s second-largest population behind India and significant ethnic diversity, China has the most comprehensive human genetic resources in East Asia, according to Jin Li, a member of the Chinese Academy of Sciences and a professor at Fudan University’s School of Life Sciences. ?
Cyberbully?/
A district court in Shenzhen has ruled against a former public security official in East China’s Jiangxi province in an online defamation lawsuit, finding that he damaged the reputations of two daughters of a murdered couple when he attacked them for questioning the police response.
Shenzhen Longgang People’s Court ordered Xin Ping, former spokesperson of the Fuzhou Public Security Bureau, to make a public apology to the plaintiffs on his social media accounts and pay them 5,000 yuan ($690) in compensation for their emotional distress, one of the plaintiffs, Kang Leying, told Caixin this week. ?
FINANCE & ECONOMY
Chip?/
China is pumping another 344 billion yuan ($47.5 billion) into a state-backed semiconductor industry investment fund to drive its chip industry development amid an escalating technology race with the United States.
The third phase of National Integrated Circuit Industry Investment Fund has been set up with funds from 19 state-owned investors led by the Ministry of Finance, business registration records show. The fund will engage in equity investment and asset management in the integrated circuit industry. ?
Insurers?/
The general manager of New China Life Insurance Co. Ltd.’s (NCL) onshore asset management subsidiary is missing and has likely been detained by graft-busters, sources with knowledge of the issue told Caixin.
People close to the state-owned insurer said that Zhang Chi has been removed from his positions at New China Asset Management Corp. Ltd. (NCAMC). Attempts by Caixin to reach out to either Zhang or NCL were unsuccessful.
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Quick hits?/
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BUSINESS & TECH
E-commerce?/
Chinese e-commerce giant PDD’s quarterly growth far outpaced rivals Alibaba and JD.com, reflecting online shoppers’ preference for cheaper products during an uneven economic recovery.
PDD Holdings Inc., which owns e-ecommerce platforms Temu and Pinduoduo, reported its first-quarter net income soared 246% from a year earlier to nearly 28 billion yuan ($3.9 billion) on revenue that more than doubled, according to its earnings results released Wednesday. ?
Expo?/
The co-founder of an emerging tech expo has touted Macao as an ideal location for technological exchanges, as it is seen as “neutral,” while Hong Kong has become caught up in tensions between Beijing and Washington.
“Developing the tech industry is not easy. It cannot be achieved solely with money or policy, but also requires sufficient market and technological innovation. Macao, as a more neutral place, is suitable to play the role of a platform,” said Jason Ho, the co-founder of BEYOND Expo, in an interview with Caixin earlier this month. ?
Alibaba?/
Alibaba Group Holding Ltd.’s global online marketplace AliExpress has enlisted English soccer star David Beckham as a global brand ambassador, the company announced Monday, as the Chinese e-commerce giant doubles down on efforts to boost sales overseas.
The one-year partnership is part of a campaign for the upcoming UEFA Euro 2024 soccer tournament, AliExpress said. Users of the online marketplace will get a chance to win discounts and other prizes like match tickets, the company said in a statement. ?
Quick hits?/
Daily Tech Roundup?/
Long Read?/
GALLERY
A five-story residential building in Tongling, Anhui province, collapsed Monday afternoon, killing four people and leaving one person injured. The investigation into the cause of the incident remains ongoing.
Next Trend Realty LLC./wwwHar.com/Chester-Swanson/agent_cbswan
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