CX Daily: What’s Holding China and U.S. Back From Resolving Their Audit Regulation Deadlock

China’s “no limit” tie with Russia has a bottom line, Beijing’s envoy to the U.S. says. A nurse’s death triggers frustrations over Shanghai’s Covid-19 curbs. Luckin Coffee passes Starbucks in the numb

Mar 28, 2022

Big names like Alibaba, Pinduoduo and Baidu are among the 200-plus firms caught in the long-running audit dispute between regulators in the world’s two biggest economies. Photo: VCG

Audit /

Caixin Explains: What’s holding China and U.S. back from resolving their audit regulation deadlock

Last week, global markets witnessed one of the steepest sell-offs of U.S.-listed Chinese stocks since the 2008 global financial crisis, partly triggered by the Securities and Exchange Commission’s (SEC) naming of the first batch of five Chinese companies that could be kicked off American stock markets for failing to meet audit requirements. A sixth company, social media giant Weibo Corp., became the first internet platform added to the list Wednesday.

Big names like Alibaba Group Holding Ltd., Pinduoduo Inc. and Baidu Inc. are among the 200-plus stocks caught in the long-running audit dispute between regulators in the world’s two biggest economies. These companies are already worried about any secondary sanctions stemming from economic punishment leveraged upon Russia by the West, as well as uncertainties from the regulatory tightening of the tech sector back home.

Weibo joins list of Chinese stocks that may be kicked off U.S exchanges

China-Russia /

China’s ‘no-limit’ tie with Russia has bottom line, China envoy says

The cooperation between China and Russia that was declared to have “no limit” still has a bottom line to respect the United Nations Charter, said Qin Gang, Beijing’s envoy to the U.S.

The ambassador made the comment Wednesday as the war in Ukraine rages on, putting China’s close tie with Russia under the spotlight. Chinese officials have reiterated its neutral stance and called for diplomatic solutions to end the conflict.

FINANCE & ECONOMY

Ant Group has named Jia Hang as the regional general manager for its Southeast Asia operations. Photo: VCG

Fintech /

Ant Group picks payments veteran to take over in Southeast Asia

Chinese fintech giant Ant Group Co. Ltd. picked a payment veteran to help it solidify its presence in Southeast Asia.

The Hangzhou-based company, controlled by billionaire and Alibaba founder Jack Ma, named Jia Hang as the regional general manager for its Southeast Asia operations, according to a statement released this week. Jia was previously an executive at state-backed bank card clearing institution UnionPay before joining Ant in 2015

The new role is part of Ant’s efforts to double down on “talent and capability building in the region” to help local individuals and businesses embrace digitalization, the statement said.

Covid-19 /

Shanghai nurse’s death triggers frustrations over Covid curbs

Frustrations over Shanghai’s Covid-19 curbs are swelling among some residents.

On Wednesday, nurse Zhou Shengni died from an asthma attack after being denied entry at the Shanghai hospital she worked in. Her case triggered heated debate among netizens who vented about how the city’s Covid-19 response has put the wellbeing of non-Covid patients and vulnerable groups at risk.

Zhang Wenhong: China’s pandemic fight can and should allow for normal life

Quick hits /

China Life misses profit estimates as economy drags on sales
Hong Kong retains third spot in ranking of world financial centers

BUSINESS & TECH

A row of wind turbines located in Binzhou, East China’s Shandong province, in December 2020. Photo: IC Photo

Energy /

Energy security vies with green goals in China’s new five-year plan

Big boosts for hydrogen and nuclear, more hydropower dams, and no caps on coal.

That’s the message from Chinese policymakers after the release of the nation’s latest comprehensive energy plan this week, with two clear goals: to secure the energy-hungry nation’s supply and to gradually tilt the mix of sources toward long-term green ambitions.

The National Development and Reform Commission (NDRC) and National Energy Administration (NEA) jointly released the 14th Five-Year Plan for a Modern Energy System Tuesday.

Fines /

Soho China units fined for gouging tenants on electricity prices

Real estate firm Soho China’s property management affiliates have been fined a total of 115 million yuan ($18 million) for charging extra electricity fees to clients, according to the market regulator of Beijing municipality.

The 15 units of Soho China in the Chinese capital provide property management services for commercial buildings developed by Soho. In Monday statements, the regulator blamed the affiliate companies for illegally charging additional fees for electricity on top of the average fee that power companies charge, ordering them to refund the extra fees to users.

Luckin Coffee /

Luckin Coffee’s outlets in China top Starbucks

Luckin Coffee Inc. disclosed sharply higher sales and a narrower loss in its first earnings report since the disgraced Chinese startup paid $180 million to settle fraud charges in the U.S. last month. Luckin also passed Starbucks in the number of Chinese outlets.

The Starbucks China challenger said Thursday its revenue in the fourth quarter increased 80.7% to 2.4 billion yuan ($381.7 million) while the operating loss narrowed to 120.8 million from 488.9 million in the same period in 2020.