Welcome to China Business News, NEO’s weekly roundup of top business developments as reported by news outlets in China and the region.
This week’s highlights:
- 58% of U.S. companies operating in China have lowered their revenue expectations for 2022 due to China’s anti-epidemic measures, according to a survey released by the American Chamber of Commerce in China. Another 52% of companies surveyed have delayed or reduced their investments in the country. The results show that core staff shortages and supply chain disruptions are currently posing the biggest challenge for U.S. companies in China. (Lianhe Zaobao, Singapore)
- Major property developer Sunac China announced on May 12 that the company was unable to make interest repayments of approximately $29.48 million within the relevant grace period for its four senior notes in April. In recent years, through its skillful use of capital leverage and bold M&A strategy, Sunac has grown rapidly in size and ranked in the top 5 in the industry, with sales of 597.4 billion RMB in 2021. But China’s real estate industry was hit by tightened credit policies in the second half of last year, with Sumac seeing a major drop in core profit for 2021. (21st Century Business Herald)
- The Shanghai Science and Technology Innovation Fund (SSTIF) was ranked as a “Top 10 Best Market-Oriented FOF in China” in 2021 by the Chinese Limited Partners finance operations. SSTIF is a market-oriented FOF established by Shanghai International Group, a large state owned financial holding group engaged in commercial and investment banking, mutual funds, insurance, private equity and more. With its main focus on serving the construction of Shanghai Science and Innovation Center, SSTIF targets 30 billion RMB and currently manages more than 12 billion RMB. (China Securities News)
- Centrin Data, a leading Chinese developer of corporate IT infrastructure systems and data centres, and Huawei Digital Power, a leading global provider of digital energy products and solutions, signed a close strategic partnership to cooperate in the financial sector. The agreement includes such areas as banking, insurance and securities, and will jointly expand data centre operation and management services, covering the entire life cycle of data centres in the domestic financial sector. (China Economic News via Xinhua News Agency)