China Inc by BBW

China’s space ambitions, and Evergrande’s ‘Lehman moment’

China builds a low Earth orbit satellite constellation to rival Elon Musk’s Star Link. And Evergrande faces a potential “Lehman moment” as it fails to negotiate new terms for its massive debt with key creditors ahead of a key court date.

Everyone loves a party: China sees 5% growth at annual ‘Two Sessions’

China says it will target relatively modest GDP growth of “about 5%” this year, as it focuses on “quality growth” over “growth at any cost” in the post-pandemic era.

China Loses Its Taste for Luxury, and Popeyes Finds a New China Partner

China’s luxury market shrank by 10% last year, marking its first contraction in at least five years. And less than three years after opening its first China store, fast food chain Popeyes is dumping its original partner in the market and signing on with the local operator of the fast-growing Tim Hortons donut chain.

Economic Mixed Signals, and JD.com’s Southeast Asian Misadventure

China’s purchasing manager’s index fell 0.8% in January, but the consumer price index rose 2.1%. And JD.com is officially withdrawing from Southeast Asia by announcing it will close its shops in Indonesia and Thailand.

China Tour Groups Return to the World, and China Inc.’s Latest Fundraising Frenzy

Chinese tourists return to the world en masse with the resumption of group tours from China on February 6. And eight U.S.- and Hong Kong-listed Chinese companies collectively raised more than $2 billion through new share and bond issues in January.

Foreign Money Floods Into China Inc., and Alibaba Picks Up an Activist Investor

A record $12.7 billion flowed into emerging debt and equity funds over a three-day period in mid-January, as investors rediscovered China after a nearly two-year lull. And an activist investor is lobbying Alibaba to buy back more of its stock. But will Alibaba listen?

New Year travel rush returns to China, and so does Australian coal

Millions of Chinese are taking to the road to go home for the Lunar New Year holiday, resuming the world’s largest annual human migration after a three year pandemic-induced pause. And Australian coal imports are also making a return to China after a similar hiatus, as the two countries look to reboot relations after a frosty period. 

Hong Kong SPACs off to slow start, and Ant Group’s growing independence

Hong Kong jumped on the global bandwagon for IPOs using special purpose acquisition companies, or SPACs, at the start of 2022. But a year later, the program has gotten off to a slow start. And Alipay operator Ant Group is declaring its independence from founder Jack Ma, leading some to say the fintech giant may be returning to favor with Beijing regulators.

Travel boom shapes up with end to ‘zero Covid,’ and TikTok hits new U.S. roadblock

China’s recent ending of its long-held “zero Covid” policy is unleashing big demand for travel, both domestic and international. And a proposed new U.S. law could mean big changes on the horizon for short video sensation TikTok, which continues to generate controversy due to its Chinese ownership. 

When does Covid end, and U.S.-China stocks get some good holiday news

China has officially ended its long-held “zero Covid” policy, but that’s just the beginning of its road back to normalcy. Experts predict a recovery could take months, while economists are upgrading their economic forecasts for next year. And U.S.-listed Chinese stocks get some holiday cheer from a positive report on an initial round of audits by the U.S. securities regulator under a new cooperation deal with its Chinese counterpart.