Read This Week: Why Chinese Developers’ Offshore Bonds Are So Cheap
The Unmissable newsletter from Caixin brings you the best of our coverage from last week, handpicked by our editors.
# Business #
In detail: why Chinese developers’ offshore bonds are so cheap
As the risks of default increase, many offshore debt holders are shedding real estate bonds, pushing prices down so low that some bargain hunters are flocking to them.
Chinese real estate developers ordered to pay international debts on time
Foreign exchange watchdog says he wants advance notice of any company considering defaulting
BYD to increase battery price by 20% as lithium costs skyrocket
Growing demand for electric vehicles is helping to quadruple lithium prices in China this year, putting battery makers in a situation of squeezing profits
# Cover story #
Blue Sky, please send help!
Volunteer civilian rescue teams join Henan rescue operations after sprawling across China, inspired by the 2008 Wenchuan earthquake
# Economy #
Roundup: Chinese policymakers offer calming words to revive dying housing market
Vice Premier Liu He and PBOC Governor Yi Gang attempt to restore confidence among buyers, investors and developers
# Opinion #
China should stick to its guns to regulate the housing market
Using real estate as a short-term stimulus will not stimulate high-quality growth or support the steady, long-term development of the sector itself.
Why China is trying a property tax
As part of a new pilot program, the tax can be introduced in regions where housing is particularly unaffordable and which have a good tax collection record.
# Finance #
In detail: Hong Kong’s strategy to break the Cayman Islands’ stranglehold on offshore funds
Legislation allowing private equity and venture capital funds to relocate their domicile from offshore tax havens will come into force on November 1, the last step in a long-standing plan
# China #
In Detail: Why Injured Workers In China Are Often Losers In Court
Beijing is considering a nationwide pilot program to offer workers’ compensation insurance to platform workers, as court judgments rarely favor those who do not have a formal employment relationship with the companies they work for.
# Gallery #
China celebrates Sanitation Workers Day
# Long weekend read #
How the Big Four Iron Miners are crushing Chinese steelmakers and what China can do
Security of iron ore resources is a crucial strategic issue for the Chinese steel industry in the next stage of national development
# Podcast #
Don’t discriminate against foreign companies, China warns
The Ministry of Finance reminds local governments to treat foreign companies fairly; why injured flexible workers often lose in court; and the number of active private tutoring companies is collapsing
Heavily indebted, China Evergrande Group, one of the largest real estate developers in the country, is suffering from a liquidity crisis after years of running a highly leveraged company. The company’s problems have already started to trickle down to the Chinese economy and markets around the world. Read more >>