BUSINESS CHINA DAILY HONG KONG EDITION Thursday, December 17, 2020
RIGHT TRACK New rules to derisk investments
Ministry asks financial institutions to aries at all levels shall not hold icy significantly as the economic each other’s shares.” recovery is becoming increasingly focus on core business, cut hierarchies Zhou Maohua, an analyst with broadbased. It will also lead to bal China Everbright Bank, said the anced liquidity in the financial sys By CHEN JIA fluctuations are increasing due to new rules will help streamline the tem, said Nicholas Zhu, a senior [email protected] the slower economic growth since main businesses of Stateowned credit officer with Moody’s Investors the COVID19 pandemic and the financial companies and improve Service, a global credit ratings agen China has asked Stateowned rise in new cases in some major the regulatory efficiency. cy. financial institutions to remain Western countries, experts said. “Financial resources will be The new regulations also indicate focused on their main business and Stateowned financial institutions invested in areas that can support the cautious stance of the govern Wang Chenglu, president of the software department at eliminate unnecessary operational should withdraw from business are the growth of the real economy and ment on overseas investments by Huawei’s consumer business group, speaks at the release of hierarchies, while stepping up as that are not at the core of their limit unnecessary competition SOEs, experts said. Huawei’s developer beta version of HarmonyOS 2.0 on Wednes efforts to prevent risks from the development strategies or have not between financial service providers But some experts feel that the day in Beijing. PROVIDED TO CHINA DAILY inappropriate transactions of affili yielded any financial returns for a in the same field.” increasingly attractive offshore ates and false capital injection, the long time, the notice said. Recent data from the banking sec funding costs will spur an increase Ministry of Finance said on Wednes In general, for providing the same tor, which dominates China’s finan in offshore financing next year, as day. kind of financial service, they can cial system, showed a moderate the Chinese economy continues to Stateowned financial institu keep only one subsidiary, and there deterioration in asset quality, profit recover and credit easing measures All Huawei products tions that are engaged in overseas should be no more than three hier ability and capitalization during the in the onshore market will be less investment and have subsidiaries archies in the operational structure, third quarter. forthcoming compared to the first abroad should focus on their main said the notice. Financial regulators have also half of this year. to use HarmonyOS business, follow the necessary pru The new rules also forbid false started signaling a resumption of Commenting on the bond default dential and compliance require and circulatory capital injection derisking measures such as tighter cases, Ivan Chung, an associate ments, and strictly implement the among different subsidiaries within supervision of the domestic system managing director of Moody’s, said: By MA SI than a year ago, after Washington due diligence and feasibility the same group, or using share ically important banks. “We believe the Chinese govern [email protected] restricted Huawei from using requirements, the ministry said in a pledges for financing, the Ministry Besides, the People’s Bank of Chi ment’s willingness to support SOEs Google’s Android operating sys notice. of Finance said. na, the central bank, is ensuring suf will remain, but its tolerance for iso Huawei Technologies Co said on tem. HarmonyOS is inarguably The notice is an indication that “Except for financial invest ficient supply of liquidity to ease the lated defaults will increase as long Wednesday that it plans to expand the biggest push by Huawei to the central government is tighten ment, subsidiaries at all levels are temporary volatility from the recent as they do not trigger systemic risks its inhouse operating system Har build its own software ecosystem. ing scrutiny of Stateowned capital not allowed to hold equities of the corporate bond defaults. or undermine economic and social monyOS to all of its selfdeveloped In September, Huawei unveiled investment, as financial risks and parent company, and the subsidi It has not eased the monetary pol stability.” products, including smartphones an updated version of Harmony and tablets next year, as the Chi OS 2.0, which is designed for the nese technology giant accelerates era of internet of things, and it can its push to build a robust app eco be used in devices such as Hua system amid the US government wei’s smartwatches and incar sys RCEP participants to expedite pact implementation restrictions. tems, as well as home appliances Yang Haisong, vicepresident of from thirdparty companies. By ZHONG NAN explain the pact’s terms to compa more imperative amid the world’s the software department at Hua For instance, with HarmonyOS [email protected] nies and business associations, fight against the COVID19 pan wei’s consumer business group, 2.0, ecommerce giant JD’s app can said Dao Viet Anh, commercial demic. said that, so far, more than run on televisions, even refrigera Participants of the Regional Com counselor at the embassy of Viet China has already Best Inc, a Chinese integrated 100,000 software developers have tors, and other screenequipped prehensive Economic Partnership nam in China. started the approval supply chain and logistics solutions participated in HarmonyOS’ devices. Thus, hundreds of millions agreement pledged on Wednesday When the RCEP is officially provider, will start operating a development projects and the of devices including cars equipped that they will expedite the pact’s implemented, it is expected to gen process for the RCEP 35,000squaremeter sorting center number of hardware partners has with a smart screen can run the JD implementation procedures and erate 1 percent of GDP growth for agreement ...” in Ho Chi Minh City, Vietnam, on risen from five to 10. app or any other app. make policy arrangements in Malaysia. It will not only create Thursday. The site is expected to cre The comments came as Huawei At present, the beta version pub advance to help companies from all broader spaces for teamwork, but Yang Zhengwei, deputy ate over 1,000 jobs over the next two on Wednesday released a develop lic test recruitment activities have sides to share the benefits as soon as also enhance the supply and indus directorgeneral of the Ministry to three years. of Commerce’s Department of er beta version of HarmonyOS 2.0 been rolled out and developers possible. trial chains in the region, said See International Trade and With $8 million investment, the targeting at smartphone app and partners can apply to partici With many RCEP members Chee Kong, minister of economic Economic Affairs facility incorporates a wide range of developers, as the Chinese tech pate in the same for free. However, beginning to offer authoritative affairs at the embassy of Malaysia in sorting and scanning technologies nology giant works to prepare for it is open to select smartphones interpretations to their business China. that provide increased sorting transition from Google’s Android and tablets including the Mate 40 communities to make the agree Since the implementation of the capacity and less manual processing operating system to the selfdevel series and Huawei P40 series as ment a reality, government offi ChinaASEAN Free Trade Area 2.2 of shipments. The center is capable oped HarmonyOS. well as the MatePad Pro tablet, cials from countries including agreement, or CAFTA, in 2010, trade billion of handling up to 1 million parcels The move is meant to encourage Huawei said. Japan, South Korea, Vietnam, in goods and services between Chi population that RCEP per day, the highest parcel process developers to come up with appli Charlie Dai, principal analyst at Thailand, Malaysia and Australia, na and the ASEAN has grown rapid agreement covers ing capacity in the country, said cations for HarmonyOS on smart market research company Forrest said they will help companies ly through deeper integration of Johnny Chou, chairman and CEO of phones, creating a sound er, said: “The US government’s make full use of preferential poli industrial and value chains. Tariffs approved soon,” said Shigekazu Best Inc. foundation for Huawei to officially bans leave Huawei no choice but cies brought by the pact to boost on 7,000 products have been Fukunaga, a counselor at the The implementation of the use the operating system in its to accelerate research and devel regional economic integration in scrapped under the CAFTA frame embassy of Japan in China. RCEP arrangements will provide smartphones next year. opment to build an open tech eco East Asia and support the global work. The RCEP agreement covers a strong impetus for improvement Wang Chenglu, president of the system of its own, from hardware economic recovery. Compared with the CAFTA, the market of 2.2 billion people, equiva in China’s business environment, software department at Huawei’s to software for smartphones. It is a “China has already started the RCEP constitutes a bigger market so lent to 30 percent of the global pop eradicate institutional barriers, consumer business group, said so tough journey but Huawei must approval process for the RCEP agree it means bigger trading opportuni ulation, with a combined GDP of and expand the scale of market far, home appliance makers like go through it to survive and ment, and plans to conclude all the ties. All of this will contribute to $26.2 trillion, or about 30 percent of access, he said. Midea, Joyoung, and Robam thrive.” preparatory work and get the green more trade, development and the world GDP. Since 2019, Best has established Appliances, have all released prod But currently, the growth is light at home in six months,” said improvement in people’s livelihoods, Zhang Shaogang, vicechairman express delivery networks in Thai ucts such as ovens and smoke largely driven by domestic app Yang Zhengwei, deputy director said the Philippine Ambassador to of the Beijingbased China Council land, Vietnam, Malaysia, Cambodia exhaust ventilators that run on developers, and more efforts are general of the Ministry of Com China Jose Santiago Sta. Romana. for the Promotion of International and Singapore, where it is seeing HarmonyOS. needed to attract overseas devel merce’s Department of International “The documents regarding the Trade, said the participating econo volumes surge along with the rapid The tech giant’s goal for 2021 is opers to embrace HarmonyOS, Trade and Economic Affairs. RCEP are expected to be submitted mies of the RCEP will be able to fur growth in ecommerce. The to cover more than 100 million said Xiang Ligang, directorgener The Vietnamese government to the parliament in January next ther advance the regional trade and Hangzhouheadquartered company devices from more than 40 main al of the Information Consump has accelerated the internal year, and the parliamentary proce investment agenda, as their com reported an eightfold jump in pack stream brands, Wang said. tion Alliance, a telecom industry approval pace for the RCEP, and dures will be completed within a mitment to the pursuit of free and ages in these markets in the third HarmonyOS was unveiled more association. deployed more resources to few months. We hope that it can be open trade and investment is made quarter of this year. Blue Moon shares rise in Briefly Fiscal revenue dips HK after successful float 5.3% to $2.5 trillion China’s fiscal revenue stood at 16.95 By WANG ZHUOQIONG bution networks and a third of the trillion yuan ($2.59 trillion) in the [email protected] money raised in expanding its pro first 11 months of this year, down by duction capacity, according to its 5.3 percent on a yearly basis, official Share prices of Chinese mainland prospectus. data showed. The decline narrowed detergent maker Blue Moon Group Jason Yu, general manager of from a fall of 5.5 percent in the first Holdings Ltd, which raised nearly fastmoving consumer goods 10 months, according to data from HK$9.8 billion ($1.2 billion) from research firm Kantar Worldpanel the Ministry of Finance. Tax revenue an initial public offering on the China, said despite the COVID19 between January and November fell Hong Kong stock exchange on pandemic, there was strong inves by 3.7 percent from a year earlier to Wednesday, rose by nearly 13.07 tor demand for consumer brands 14.42 trillion yuan. Revenue from percent. such as Nongfu Spring and Perfect valueadded tax, the largest fiscal Blue Moon, which was backed by Diary. revenue source of the country, fell by private equity group Hillhouse Cap He said antibacterial cleaning 10.2 percent on a yearly basis. ital, sold 747.1 million shares products such as Blue Moon saw through its IPO. The company’s resurgent interest from investors Rio Tinto, Baowu Steel shares were priced at HK$13.1 at due to the growing demand for advance partnership the topend of the IPO, indicating such products. that the company would have “Blue Moon has earned higher Rio Tinto has committed to invest raised nearly HK$9.83 billion. gross profits than other new $10 million with the world’s largest Shares of the Guangzhoubased entrants largely due to its deeper steel producer China Baowu Steel firm opened for trading at HK$15.3. market penetration, distribution A consumer chooses Blue Moon detergent at a supermarket in Yichang, Hubei province. Group over the next two years in After the listing, its shares had an channels in lowertier cities and LIU JUNFENG / FOR CHINA DAILY lowcarbon steelmaking projects intraday low of HK$14 and a high of competitive prices,” said Yu. and research, the company said on HK$16, before closing at $HK14.8. Founded in 1992, Blue Moon’s liq Wednesday. This investment is the Blue Moon makes laundry deter uid laundry detergent, liquid soap JD Inc’s health unit soared 56 per Beijingbased trendy toy maker, saw However, the future growth of next step in advancing the partner gent, liquid soap and bathroom and concentrated liquid laundry cent on its first day of trading after its shares rise by as much as 100 per Blue Moon will be reliant on the con ship formed between Rio Tinto, Chi cleaners, according to its prospec detergents had the biggest market raising $3.5 billion in its initial pub cent during its debut on Dec 12. tinuous expansion and segmenta na Baowu and Tsinghua University tus. The company earned a net share in their respective sectors lic offering. Blue Moon brought in six cor tion of its product portfolio through in 2019 to develop and implement profit of HK$302 million during within China between 2017 and China’s No 2 smartphone maker nerstone investors for its IPO, innovation and brand building, if it new methods to reduce carbon the first six months of this year, up 2019, according to a report by Xiaomi Corp raised about $4 billion including BOCHK Asset Manage wants to become the Chinese equiva emissions and improve environ nearly 40 percent on a yearly basis. research firm Frost & Sullivan. from a combined topup placement ment Ltd and Veritas Asset Man lent of Procter & Gamble, said Yu. mental performance across the steel The company plans to spend The Blue Moon offering joins a and a convertible bond sale last agement, which have subscribed value chain, it said. more than half of the IPO proceeds recent surge of share sales in Hong week, Hong Kong’s largest such deal to about HK$1.8 billion of the Bloomberg contributed to this on building up its sales and distri Kong as the year comes to a close. on record. Pop Mart International, a shares. story. XINHUA CHINA DAILY