China Revises Bank Card Rules Amid Efforts to Attract Foreign Visitors
Compiled by the Caixin newsroom and edited by Jonathan Breen
A rundown of the news making headlines in and around China:
Bank card regulation: As China continues its efforts to attract foreign visitors, financial authorities are revising rules for managing bank card clearing institutions to promote market openness. In recent years, one of the most widely used methods overseas visitors to China have used to make payments has been to bind foreign cards to mobile payment platforms Alipay and WeChat Pay. Regulators have attempted to make this process easier and broadened the scope of what payments can be made amid post-pandemic efforts to revive tourism.
Bond market fines: China’s central bank imposed significant fines on three financial institutions for violating bond market rules as part of a crackdown on market irregularities. Hunan Xupu Rural Commercial Bank, Citic Central Tanshi Money Brokering Co. Ltd., and Shanghai East Asia Futures Ltd. were fined 13 million yuan ($1.78 million), 11 million yuan, and 36 million yuan, respectively, for violations such as breaching interbank bond market regulations and failing to properly verify customer identities, according to a People’s Bank of China statement. The penalties come as regulators increase oversight of the booming bond market, where investors are capitalizing on record-high yields driven by monetary easing.
IPO of the year: Air China Cargo Co. Ltd., the freight unit of China’s flag carrier, Air China, made its debut on the Shenzhen Stock Exchange on Monday, marking the country’s largest domestic IPO of the year. The stock (001391.SZ -4.44%) soared 304.35% on its first day of trading, giving the company a market capitalization of 111.7 billion yuan ($15.3 billion). Air China Cargo raised 3.5 billion yuan in the offering, becoming the second airline freight company to go public, following Eastern Air Logistics Co. Ltd.
Xiaomi’s hot EV: Xiaomi Corp.’s foray into the auto market this year has surpassed its expectations. The electronics giant has sold more than 130,000 of its SU7 electric sedans, which began mass production in March, exceeding its annual target ahead of schedule, its auto arm said on social media Saturday. China’s electric vehicle market is booming, helped by government-backed trade-in programs meant to boost consumption. Fierce competition has also driven down prices, which is good for consumers but a blow to many carmakers’ bottom lines.
State shipbuilding shake-up: There has been a sudden change in leadership at China State Shipbuilding Corp. Ltd. (CSSC) amid an ongoing graft investigation at the state-owned shipbuilder. Former CSSC chairman and party secretary Wen Gang hasn’t appeared in company events for around two months. The company did not give a reason for the leadership change. Xu Peng, formerly chairman and part secretary of state-owned heavy-machinery maker China First Heavy Industries Group Co. Ltd., has replaced Wen. CSSC was in the spotlight for corruption in June when a former chairman of its financial arm fell under a graft probe. Two subsidiaries of the company are in the process of merging to create the largest listed shipbuilder in the world.
Media graft: Four senior officials from two Chinese state-owned media outlets have fallen under corruption probes in December. Three of the people are from People’s Daily, the Communist Party newspaper, while the other is from the state-run news agency Xinhua. The officials, which include three veteran journalists, are being investigated by the party’s top graft buster for suspected “serious violations of discipline and law” — a common euphemism for corruption.
Jimmy Carter dies: Former U.S. President Jimmy Carter died Sunday at his home in Plains, Georgia. He was 100. Carter was a highly influential figure on the world stage and is well-known in China for his work normalizing ties between Washington and Beijing. It was two years into his 1977-1981 term that the two governments officially established diplomatic relations. Carter is also known for facilitating the Camp David Accords, which led to peace between Egypt and Israel; backing the Mujahideen rebels fighting the Soviet Union in Afghanistan; and for handing Panama control of the Panama Canal. Following his one term in office, he became an avid humanitarian and supporter of home-building charity Habitat for Humanity.
Compiled by the Caixin newsroom and edited by Jonathan Breen (jonathanbreen@caixin.com)
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