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The Daily Brief for Friday, 3 March 2017

China’s golden immigrants: A recent report says 64% of Chinese millionaires are considering leaving the country and, as Johan Nylander writes, the number one migration choice for the PRC’s wealthy has always been America, via the US government’s controversial and corruption-plagued “golden visa” program. Yet this may start to change as Donald Trump starts his harder line on immigration, something that could disrupt the plans of the many rich Chinese waiting to enter the US.

Cambodian political crackdown: Politics barely got a mention when Prime Minister Hun Sen delivered his keynote address at last month’s Cambodia International Business Summit, writes “>READ THE STORY HERE

Asia’s infrastructure needs: The Asia Development Bank says the region’s developing countries will need to invest a total of US$22.6 trillion – or US$1.5 trillion a year, most of it in China and India – between now and 2030 for essential transportation, power plants, communication links and other infrastructure. READ THE STORY HERE

PRC’s fiscal stimuli: The focus for the annual meetings of the Chinese People’s Political Consultative Conference, which opened today, and the National People’s Congress, beginning on March 5, will be financial stimuli, according to Zhu Haibin, chief China economist at JPMorgan. Jeff Pao reports that, according to Zhu, China’s central government will rely more on stimulus than monetary measures because credit growth has remained stable since last year.

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China Digest for Friday, 3 March 2017

Probe on CPPCC member over ‘disciplinary violations’

Sun Huaishan, a member of the political advisory Chinese People’s Political Consultative Conference (CPPCC) unit under the Communist Party, has been “placed under investigation” for “seriously disciplinary violations”, reported Caixin on Thursday evening. Sun, 65, is also a director of the Hong Kong, Macau and Taiwan affairs committee under the CPPCC National Committee and was elected into the party’s Central Committee in 2012, Caixin said. He was last seen on February 2, the report said. Sun’s career started with the Communist Youth Party and he had been involved with the CPPCC since 1994, rising up the ranks, it said.

JD.com sells stake in JD Finance for US$2.08 billion

JD.com said it would sell 68.6% of its share in JD Finance for 14.3 billion yuan (US$2.08 billion) to an unnamed buyer, reported Caixin. The deal would sees the value of JD Finance increase to 50 billion yuan, potentially making it the biggest competitor to Ant Financial, which received US$60 billion in Series B financing last year, the report said. Under the terms of the deal, JD.com will receive 40% of JD Finance’s pre-tax profit and has the right to swap this for 40% of JD Finance’s future equity, subject to approval from the regulators, the report said. JD.com Chief Executive Richard Liu Qiangdong also receives 4.3% of the financial arm’s shares, but maintains majority voting rights through proxy agreements, it said.

US$174 billion profit forecast for industrial SOEs in 2017: SASAC

Total profit at state-owned industrial enterprises is expected to reach 1.2 trillion yuan in 2017, Yicai reported on Thursday evening, citing the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council. It is a 10% rise from the 1.175 trillion yuan in 2016, it added.

Hangzhou to ban purchases of third property in policy tightening

Hangzhou residents will be banned from buying a third property as the local government tightens its housing policy, Yicai reported on Thursday evening. The new rule takes effect on March 3.

P2P regulatory framework is almost complete, says CBRC

China’s new peer-to-peer (P2P) regulatory framework is almost complete, Caixin reported on Thursday afternoon quoting Cao Yu, deputy director of the China Banking Regulatory Commission, at a State Council press conference. The new framework acknowledges P2P’s nature as information intermediaries and keep records of transactions and carry out daily reconciliation, the report said.

Lenovo Group sells stake in property firm for US$235 million

Lenovo Group is selling its 49% in Chengdu Lian Chuang Rong Jin Investment, a property developer, to Hong Kong-listed Sunac China Holdings for 1.6 billion yuan, reported Caixin on Thursday evening. Lenovo would get a pre-tax gain of HK$1.7 billion (US$218.5 million), the report said. The additional funds will be used for operations and investments at Hong Kong-listed Lenovo, the report said.