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China Business News Tuesday (2021-03-17)



News

1. China's stock market attracts over 1.6 million new investors in February.

Some 1.61 million new investors in China opened accounts to trade stocks on the Shanghai and Shenzhen stock exchanges in February. This is an increase of 79.75 percent compared to the same period last year. The total number of investors with A-share accounts now exceeds 181 million. 2020 was already a record year, with a total of about 18.02 million new Chinese investors in the stock market. All figures and statistics were published by the China Securities Depository and Clearing Corporation Limited (CSDC).

Source: · https://enapp.chinadaily.com.cn/a/202103/13/AP604c63d4a310f03332f990f1.html

2. Huawei start to charge smartphone royalty for its 5G patents.

Huawei has the most extensive collection of 5G patents globally, far ahead of rivals such as Nokia, Qualcomm, and Ericsson. Though in some cases, they want to take significantly less 5G patent royalty than their competitors. But the company has now stated that it will charge smartphone manufacturers a licensing fee of USD 2.5 per device for access to its 5G patents. In total, the company could earn about USD 1.2 billion to USD 1.3 billion from licensing its patents between 2019 and 2021.

Source: https://pocketnow.com/huawei-to-charge-smartphone-makers-a-royalty-fee-for-its-5g-patents

3. Luckin Coffee has reached a restructuring agreement with creditors.

The coffee chain, hit hard by an accounting fraud, has now reached an agreement with key creditors to restructure its debt and strengthen its capital structure following its bankruptcy. It is expected that bondholders will receive 91 to 96% of the existing bonds' nominal value. This is positive news that suggests that the company is looking to re-establish itself and is also in talks with private investors to raise at least USD 250 million..

Source: https://finance.sina.com.cn/tech/2021-03-17/doc-ikknscsi6533684.shtml

4. Chinese government urges Alibaba to abandon media holdings.

The Chinese government has urged Alibaba to divest some of its holdings, including Hong Kong's leading English daily newspaper, The South China Morning Post. One possible reason could be that it is feared that Alibaba has amassed inappropriate influence over the media and China in general. Alibaba's other media assets include microblogging site Weibo, streaming platform Youku Tudou, Huayi Brothers, video portal Bilibili, and a stake in state-owned China Business Network.

Source: https://www.theregister.com/2021/03/16/china_concerned_about_alibabas_portfolio/

5. China's carmaker BYD plans EV battery plant in Europe.

The Chinese manufacturer of electric vehicles BYD is hiring engineers for its first battery plant in Europe. The strategy here is to sell electric cars themselves and be active in the European market as a supplier of EV parts. Here, the company wants to be as close as possible to German manufacturers such as Volkswagen AG and Daimler AG, which are currently expanding their range of electric vehicles. Shenzhen-based BYD sold 426,972 vehicles last year, including 189,689 EVs.

Source: https://www.reuters.com/article/us-byd-electric-idUSKBN2B90CM

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