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CSCI Morning News Circular - 20180226

1. Macro News

• Fed Resists Upgrading Growth Outlook After Tax Cuts. Federal Reserve officials are showing surprise at just how much the recently-enacted tax cuts are boosting the U.S. economy. But they’re still not impressed enough to lift estimates for long-term growth, a stance that puts them at odds with the White House.  [Bloomberg]   
• Algeria to ease visa procedures to attract more Chinese tourists. Algerian Minister of Tourism and Handcrafts Hassan Mermouri said his country is seeking to attract more Chinese tourists by easing the visa issuing procedures. Mermouri said an agreement between Algeria and China to facilitate visa issuance for Chinese tourists will be inked before the end of March.  [China Daily] 
• China becomes Vietnam's biggest export market in January. China surpassed the United States to become Vietnam's biggest export market in January, the General Department of Vietnam Customs said on Friday. Vietnam exported roughly $3.7bn worth of goods to China last month, up 106 percent against January 2017, said the department. [China Daily]   

1. Industry News

• China cuts red tape as it looks to even the field for foreign banks. China has simplified procedures for foreign banks to conduct business and cleared the rules on their eligibility to invest in their mainland rivals, as Beijing delivers on its vow to create a level playing field.  [SCMP] 
• China prolongs preparation period for IPO reform. China's top legislature decided to prolong a mandate, which allows the State Council to prepare for reforms that will change the stock listing system from approval-based to registration-based, for another two years to Feb 29, 2020.  [China Daily]      
• Indian Exchange Warns Indexer Compilers to Stay Out of Offshore Dispute. India’s biggest exchange operator, which cut ties with its international counterparts in an effort to rein in offshore derivatives, warned index compilers about involving themselves in the dispute.  [Bloomberg] 
• Corporate News
• Regulators remove Anbang chairman Wu Xiaohui for ‘economic crimes’, take over conglomerate . Wu Xiaohui, the chairman of Chinese insurance and investment conglomerate Anbang Group, has been removed from his post and faces prosecution, the China Insurance Regulatory Commission said on Friday.  [SCMP] 
• BMW, Great Wall sign letter of intent for electric Mini joint venture in China. German premium carmaker BMW and China’s Great Wall Motor Co have signed a letter of intent to jointly produce electric Mini vehicles in China, BMW said on Friday.  [SCMP] 
• HKEX says listing reforms could be in place by late April. Hong Kong Exchanges and Clearing may amend its listing rules to accept companies with dual class shares and biotech companies with no revenue as early as late April, accelerating the timeline for the widely-expected listing regime change by several months, the bourse operator said on Friday.  [SCMP] 
• China’s Huawei set to lead global roll-out of 5G mobile networks. Huawei Technologies is forging closer commercial ties with big telecommunications operators across Europe and Asia, putting the Chinese company in prime position to lead the global race for next-generation 5G networks despite allegations by the U.S. that it poses a security threat.  [SCMP] 
• Alibaba Cloud steps up its game as it offers quantum computing service. Alibaba Cloud on Friday launched the world’s second-most powerful quantum computing service on the cloud after IBM in association with the Chinese Academy of Sciences.  [SCMP] 
• Fosun adds another luxury brand to crown as it takes control of French fashion house Lanvin. Fosun International announced that it had acquired a controlling stake in the 129-year-old French fashion house Lanvin, joining other Chinese companies that have recently bought top brands to capitalise on the demand for luxury products from wealthy mainlanders.  [SCMP] 
• Chinese telecom companies only 2 in top 5 global vendors to register unit growth in Q4. Chinese telecom companies Huawei Technologies Co Ltd and Xiaomi Inc are among the top five global vendors of smartphones that recorded growth in smartphone sales in the fourth quarter of 2017, the world leading market research firm Gartner said.  [China Daily] 
• Geely chairman acquires 9.69% stake in Daimler. The founder and chairman of China's Zhejiang Geely Holding Group has acquired a 9.69 percent stake in German carmaker Daimler AG, becoming the largest shareholder of Mercedes-Benz's parent company.  [China Daily] 
• BYD named No 2 on list of world's top 10 most innovative companies in energy. BYD was honored by the Fast Company as one of its Top 10 Most Innovative Companies for Energy. BYD ranked No 2 for "introducing the first electric trucks," while US company Green Mountain Power tops the list for energy "for helping customers go off the grid”.  [China Daily] 
• Automaker BAIC to open first plant in Mexico. Beijing Automotive Industry Corporation unveiled a plan to build its first factory in Mexico for the North and South American markets. The company will invest around $1bn for the construction of the plant set to begin in 2020, Jimena Saenz, BAIC's director in Mexico, said in an interview with Xinhua.  [China Daily] 
• Chinese telecom companies lead WDM Metro equipment market in 2017. Chinese hi-tech telecommunications companies, such as Huawei Technologies Co Ltd and ZTE Corporation lead the billion-US-dollar fiber-optic market of wavelength-division multiplexing (WDM) Metro equipment in 2017, a market research firm said.  [China Daily] 
• Tencent among top 5 innovation firms. Tencent Holdings Ltd was ranked No 4 for how its nearly 1-bn users could generate the colossal content being built around its WeChat app, according to the World's 50 Most Innovative Companies for 2018 released by Fast Company, a New York-based media agency.  [China Daily] 
• Xiaomi, Microsoft plan AI cooperation. Xiaomi Corp inked a deal with Microsoft Corp on Friday to deepen cooperation in artificial intelligence, cloud computing and laptops, as part of the Chinese smartphone vendor's going-global efforts this year.  [China Daily] 
• Game Developer 7Road.com Plans Up to $300mn Hong Kong IPO. Online gaming developer 7road.com plans to raise ~$200m-$300m from a Hong Kong IPO this year, IFR Asia reports, citing unidentified people close to the deal.  [Bloomberg]
• Luye Medical Selects Arrangers for $500 Million IPO. Luye Medical Group, the health-care services provider backed by acquisitive Chinese entrepreneur Liu Dianbo, picked banks to manage a Singapore initial public offering that could raise about $500 million.  [Bloomberg]