CX Daily: Four Things to Know About China’s Warning on NFT Financial Risks
China promises to cut banks’ reserve requirements.
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Shanghai entered a citywide lockdown for nearly two weeks to fight its worst outbreak since the pandemic began more than two years ago.
Supply chain /
Shanghai’s Covid lockdown forces scramble by tech supply chain
Semiconductor and electronics producers in Shanghai and neighboring areas are scrambling to keep plants running as Covid-related restrictions disrupt businesses, putting more pressure on the already fragile global tech supply chain.
Shanghai hosts many of China’s leading semiconductor manufacturers including the country’s largest chip foundry, Semiconductor Manufacturing International Corp. (SMIC). In 2021, integrated circuit sales in Shanghai rose 24.5% from the previous year to 257.9 billion yuan ($40.4 billion), a quarter of the national total. The city is also home to more than 200,000 semiconductor industry workers, nearly 40% of the country’s total.
But weeks-long lockdown measures that confine most of Shanghai’s 25 million residents at home are taking a toll on the semiconductor hub as factories have been forced to halt or cut production.
A man stands at a crypto art exhibition in Beijing in March 2021. Photo: VCG
NFTs /
Four things to know about China’s warning on NFT financial risks
Three state-backed financial industry associations in China called on their members to prevent financial risks associated with nonfungible tokens (NFTs), such as masking trades of financial products as NFT transactions.
The joint proposal, released Wednesday by the National Internet Finance Association of China, the China Banking Association and the Securities Association of China, emphasizes balancing innovation and preventing illegal financial activities in the NFT market.
NFTs — immutable pieces of data tracked on blockchain distributed digital ledgers — have grown increasingly popular since last year in the global market as well as in China.
Economy /
China promises to cut banks’ reserve requirements
China’s cabinet said the central bank would cut the amount of money that banks have to keep in reserve ― the required reserve ratio, or RRR ‒ at the proper time, a further sign that there is likely to be additional monetary stimulus to support the economy.
“China will use monetary policy tools including a RRR cut at an appropriate time and will step up financial support to the real economy, especially industries and small businesses that have been hit hard by the pandemic,” the State Council said Wednesday after a meeting, according to state-run television.
Singapore /
Singapore’s Finance Minister Lawrence Wong tipped to be nation’s next leader
Finance Minister Lawrence Wong was selected to be the leader of the PAP’s fourth-generation (4G) team, paving the way for him to be Singapore’s next prime minister.
Cabinet ministers affirmed their choice of Wong as the leader of the 4G team Thursday, Prime Minister Lee Hsien Loong said in a statement.
Quick hits /
Hong Kong rolls back some virus measures as deadly wave ebbs
Liu Zhongtian/File photo
Fines /
Chinese metal tycoon’s companies fined $1.83 billion by U.S.
Six Southern California-based companies linked to Chinese metal tycoon Liu Zhongtian were fined $1.83 billion by a U.S. federal judge for a conspiracy to evade customs duties and inflate revenues of Hong Kong-traded China Zhongwang Holdings.
The companies, including two aluminum businesses and four warehousing companies, defrauded the United States by disguising huge amounts of aluminum exports to the country between 2011 and 2014 to avoid $1.8 billion in custom duties, the Justice Department said Monday in a statement.
Lithium /
Soaring lithium prices yield bumper profits
Chinese companies along the lithium carbonate supply chain had a bumper first quarter as the price of the chemical element more than doubled, extending a rally from last year driven by growing demand for electric vehicles.
Jiangxi Special Electric Motor Co. Ltd., which produces lithium carbonate and battery cells, estimated that its first-quarter net profit grew by as much as 829% year-on-year to 680 million yuan ($107 million), due to booming demand and surging prices.
Talents /
Another Chinese province to blacklist scientists for job hopping
China’s eastern province of Jiangxi will blacklist some scientists who change jobs, including those working at universities, becoming the latest region to introduce punitive measures to curb job hopping amid fierce competition for university talent.
Those who are part of a talent program or heads of major scientific research projects can be blacklisted if they change jobs without government permission during their tenure or in the middle of a project, according to a statement (link in Chinese) published Monday by the provincial government.
Quick hits /
Covid concerns leave more Shenzhen office space empty
