China

Luckin Coffee seemed too good to be true. It was.

A group of banks that worked on Luckin Coffee’s IPO is facing questions after an alleged multi-billion renminbi fraud came to light last week. But some of the limelight has already been drawn away by another possible fraud case in China and a controversial short report, creating wider uncertainty around US-listed Chinese stocks. Jonathan Breen and Rebecca Feng report.

Chinese biopharmaceuticals firm Akesobio is preparing to launch bookbuilding for its IPO next week, according to a source close to the deal.

Dr Peng Telecom & Media Group Co, a Chinese company with an international bond that falls due in two months, has told domestic investors it might not be able to redeem a Rmb1bn ($141.7m) onshore bond, after investors decided to put the deal.

Zhejiang Geely Holding Group, a Chinese auto company, is in talks with banks for a new loan to support a planned restructuring.

The Asian Infrastructure Investment Bank (AIIB) has approved a Rmb2.485bn ($355m) emergency loan to China. It will be used to upgrade public health infrastructure in Beijing and Chongqing and provide emergency equipment and supplies to the two cities.

The People’s Bank of China announced the much-anticipated cut to the reserve requirement ratio (RRR) by 100bp for small and medium-sized banks last Friday. But in a surprise move, the central bank also dug out an old tool to appease the market after hopes were shattered on a lower benchmark deposit rate.

Chinese biopharmaceutical firm Akesobio has got the greenlight from the Hong Kong Stock Exchange for its IPO, which is expected to raise $200m to $300m, according to a source familiar with the matter.

In this round-up, China announces a reserve requirement ratio cut for small banks and a reduction on the interest rate for excess reserves, Bank of Jinzhou will sell some of its assets at a steep discount and the Chinese securities regulator condemns Nasdaq-listed Luckin Coffee for faking its sales record.

JP Morgan Asset Management is set to become the first foreign asset manager to fully own a Chinese fund management company, after its onshore partner agreed to exit their 15-year-old joint venture.

Hong Kong-listed Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co has won approval from Shanghai’s bourse to list shares on the Star board.

In this round-up, the Mainland is keeping a close eye on people who did not show any symptoms but still tested positive to Covid-19 and the country said medical supplies that do not meet domestic standards will not be exported.