CX Daily: How Nickel Turmoil Exposed the LME and China’s Tsingshan
Shanghai starts a two-phase citywide lockdown to test all of its residents. China attracts a record high in net FDI
Nickel soared 250% to a record $101,365 a ton on the LME earlier March.
Nickel /
Cover Story: How nickel turmoil exposed the LME and China’s Tsingshan
A month ago, nickel was just another sleepy commodity trading at low volumes on the London Metal Exchange (LME) for less than $25,000 a ton.
Then Russia, home to the world’s largest producer of the metal, invaded Ukraine, driving up the price of a material that’s mostly used in stainless steel but also has become increasingly important for electric vehicle batteries. The surging price caught China’s Fortune Global 500 steel and nickel giant Tsingshan Holding Group in a massive squeeze, forcing nickel up even more as Tsingshan bought furiously to cover short positions.
The crisis clearly isn’t over, according to industry insiders and people close to regulators. It exposed systemic flaws in the 145-year-old London exchange and risks that Tsingshan and its banks need to better control.
Covid-19 /
Shanghai goes into lockdown to get a grip on spiraling outbreak
Shanghai started a two-phase citywide lockdown Monday to test all of its 25 million residents as daily local cases hit a new high amid its worst Covid-19 outbreak.
In the first phase, the city’s Pudong financial district and surrounding areas, located east of the Huangpu River which divides the city, will be locked down between Monday and Friday, while areas west of the river will be under lockdown from Friday until April 5, according to a statement (link in Chinese) issued Sunday by the Shanghai Municipal Health Commission.
With Shanghai’s locked-down residents in need of fresh food, online grocers struggle to deliver
Sleepless in Shanghai as trading floors fill up with cots
FINANCE & ECONOMY
Yuzhou is among a swath of Chinese developers hit by a market downturn that triggered a cash crunch rattling the industry and sparking a wave of defaults
Bonds /
Yuzhou seeks government bailout on $548 million of bonds
Yuzhou Group Holdings Co. is seeking support from state-backed investors to take over $548 million of debts coming due next month as the Chinese property developer struggles to repay bondholders at home and abroad.
Fujian-based Yuzhou is in talks with state-backed investors with the assistance of local authorities to transfer some of its domestic bonds to new investors, a deal that is likely to offer the cash-drained company one more year to repay the notes, Caixin learned from sources close to the company.
FDI /
Foreign direct investment in China hit record high in 2021
China attracted a record high $334 billion in net foreign direct investment (FDI) in 2021, a 32% surge from the previous year, government data showed.
Net FDI inflows are a major component of overall net overseas investment into China, which rose 13% to $661.6 billion in 2021, according to a Friday report from the State Administration of Foreign Exchange (SAFE).
Economy /
Ling Huawei: Tough times call for effective policy combo from Beijing
"China is now facing its most difficult set of challenges in the more than two years since the Covid-19 pandemic began," writes Ling Huawei, managing editor of Caixin Media and Caixin Weekly, in an article.
"Amid the country’s tightening of regulations over many sectors such as tutoring, internet, and real estate, investment and consumer spending have become lackluster," writes Ling. "Chinese stocks have been convulsing after suffering a slump similar to the market collapse in 2015. This time, however, the plunge has nothing to do with deleveraging but is entirely the result of shrinking investor confidence caused by shocks in the broader economy."
Quick hits /
Editorial: Seeking a solution to China Concept Stock’s trouble
BUSINESS & TECH
Road tests for intelligent connected vehicles were launched in Chengdu in June 2021. Photo: VCG
Smart vehicles /
Public road testing for advanced smart vehicles hits 5,000 kilometers milestone
China has completed over 5,000 kilometers of public road testing for advanced smart vehicles known as “intelligent connected vehicles” as the country accelerates its pilot program for smart road network development, a government official said.
Guo Shougang, deputy director of the Equipment Industry Department of China’s Ministry of Industry and Information Technology (MIIT), made the announcement at the China EV100 Forum Friday. He said the country has also accumulated over 10 million kilometers of safety road test mileage.
Corruption /
Former China Railway czar Sheng Guangzu under graft probe
Sheng Guangzu, a former top official overseeing China’s vast railway system, is under investigation by the country's top anti-graft body for suspected severe violations of discipline and laws, according to a Friday government statement.
Sheng, 72, retired six year ago from the post of Communist Party chief and general manager of China Railway Corp., the state railway operator. He was previously the country’s minister of railways.
Blacklist /
FCC cites Kaspersky, China Telecom, China Mobile on security
The U.S. Friday added AO Kaspersky Lab, China Telecom (Americas) Corp., and China Mobile International USA Inc. to a list of companies deemed a threat to national security.
Once a company is on the list, federal subsidies can’t be used to purchase its equipment or services.
Quick hits /
Meituan’s revenue slows in latest sign of China crackdown toll
China oil giant plans record spending on energy security push
GALLERY
Plane crash rescuers pause for memorial