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Woman points at the model of a residential compound by China Vanke as a...

China property IPO bets on big name to calm fears

Big names generate deal interest, but that comes with risks, too. China Vanke, the biggest private developer by market value in the People’s Republic, is braving both rocky stock markets and the implosion of the mainland real estate sector to spin off its services unit at a valuation of almost $8 billion. That’s well below an earlier price tag, but it is still asking a premium to many peers.

Men work at the construction site of the Beijing Xishan Palace apartment...

Anxious Kaisa investors throw good money after bad

Foreign bondholders in Chinese property developer Kaisa, which is starting to default on $12 billion of offshore credit, are offering up to $2 billion to take over stalled housing projects plus restructure debt. A similar proposal failed last year, but as its woes worsen, Kaisa may reconsider. Pricing is the trick.

FILE PHOTO: International military and technical forum Army 2022

Europe can shrug off Putin’s Chinese gas Plan B

Selling more gas to China is one of Vladimir Putin’s oldest pet projects. And it would be a sensible thing to do for Russia, in order to diversify its export markets. Unfortunately for the Russian president, the idea has become both more urgent and less feasible after the war he launched on Ukraine.

FILE PHOTO: Chinese President Xi Jinping pledges an oath to the...

China congress will keep investors catastrophizing

China’s faltering economy puts the set-piece of the country’s political calendar on a big stage. The twice-a-decade Communist Party Congress starting on Oct. 16 is likely to hand an unprecedented third term to President Xi Jinping. Amidst the grandstanding, there will be hard-to-decipher clues on the financial future, too.

BMW 5-Series Li car is displayed at the auto show in Shanghai

BMW’s Chinese partner woes are a warning to rivals

The looting of Brilliance China Automotive, BMW’s joint venture partner in the People’s Republic, by its indebted state-owned parent should sends a signal to other foreign carmakers stuck in similar arrangements: take control or leave.

A worker looks on as the dome roof of a generator unit is lifted to be...

China's nuclear outlook is sunny and windy

Sichuan’s hydropower crisis has some officials calling for accelerated nuclear reactor construction. Unfortunately building plants in arid regions will be tricky. China's path to better atomic energy runs through solar and wind farms. Sichuan relies on dams for a whopping 80% of its power and exports surplus to other areas, especially industrial centres on the coast. But the relationship is one-way; inadequate transmission lines and immature spot markets prevent other provinces from selling electricity back to Sichuan in a pinch. This summer's record heatwave, which evaporated reservoirs and pushed up electricity demand as households cranked up air conditioners, exposed the vulnerability of this arrangement. The power crunch, which has started to ease, disrupted the local operations of $26 billion Tianqi Lithium, Apple supplier Foxconn, Toyota Motor and others. Officials in Shanghai, home to factories for Tesla and other automakers, even lobbied for special access, according https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Ffinance.yahoo.com%2Fnews%2Ftesla-asks-chinese-government-help-103926337.html&data=05%7C01%7CThomas.Shum%40thomsonreuters.com%7Cca6d1176eaae45f006e708da8faa3da5%7C62ccb8646a1a4b5d8e1c397dec1a8258%7C0%7C0%7C637980258658402307%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=0DmXV5FXQGkowAPJzroqDvuVYEkV12Ii9S6Wc3HiHa8%3D&reserved=0 to Bloomberg. Chinese energy officials have vowed to speed up nuclear development, among other things. A much-cited 2018 study https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.sciencedirect.com%2Fscience%2Farticle%2Fpii%2FS1674927817301181&data=05%7C01%7CThomas.Shum%40thomsonreuters.com%7Cca6d1176eaae45f006e708da8faa3da5%7C62ccb8646a1a4b5d8e1c397dec1a8258%7C0%7C0%7C637980258658402307%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=9eL4%2FAUdSD7tjw8T1zWmspQx7vwkiwC0Si%2FeSdQSOok%3D&reserved=0 by researchers affiliated with the state economic planning agency forecast that for the country to meet its net-zero carbon emissions goal by 2050, atomic energy capacity will need to reach 554 gigawatts. That's 28% of the modeled energy mix, versus 21% and 17% for wind and solar respectively. That would be a boon for companies like CGN Power and China National Nuclear Power, but there’s a hitch. There is widespread public opposition to more plants following Japan's 2011 Fukushima accident; authorities have unofficially banned building reactors inland. Last year, the country's 54 coastal reactors generated just 52 GW, or 5% of the total. Officials are setting their sights on 70 GW by 2025. Anything more ambitious may be a stretch: the 2018 study, for instance, estimated over half of capacity would have to come from installations in the hinterlands. Unfortunately many of these regions are under mounting water stress, and some traditional reactor designs need 1 billion gallons of water https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fmonarchpartnership.co.uk%2Fnuclear-power-water-consumption%2F&data=05%7C01%7CThomas.Shum%40thomsonreuters.com%7Cca6d1176eaae45f006e708da8faa3da5%7C62ccb8646a1a4b5d8e1c397dec1a8258%7C0%7C0%7C637980258658558573%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=BLmLXgFkw9nQuePf4au1%2B%2Bh7iAx5WHpW0z6mAzF88hY%3D&reserved=0 per day. Monday’s 6.8 magnitude earthquake in Sichuan, the strongest in nearly a decade, highlights another huge risk. A more realistic way to boost clean energy without slipping back into fossil fuels is to expand wind and solar capacity now, while pushing harder to roll out safer and less water-intensive nuclear technologies. In December, CNNC launched an experimental "pebble bed" reactor that uses gas instead of water; the government recently tested a thorium reactor that uses molten salt for coolant. It’s still early days, but the payoff could be immense.

COVID-19 outbreak in Shanghai

China’s test kit stock bubble loses air

Covid testing plays an outsized role in Chinese life: just ask anyone in the Sichuanese provincial capital of Chengdu. Officials trying to comply with President Xi Jinping’s mandate to eradicate the SARS-CoV-2 virus within the country’s borders are locking down the city of 21 million people and subjecting locals to free but mandatory tests every 24 hours. A nightmare for residents, it means more sales for local companies supplying kits and mobile labs to government buyers.

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Criminal referrals in Jan. 6 attack probe weighed: Rep. Schiff

U.S. Representative Adam Schiff, a Democratic member of the special panel investigating the Jan. 6, 2021, attack on the Capitol, on Sunday said he likely would support approving criminal referrals against those involved in the violence, but that it would take a unanimous decision by its nine members.