China Roundup: Unicorn enterprises, Fitch Ratings downgrade, Russian ties
Unicorn enterprises
China is home to 340 unicorn enterprises, second only to the United States. The country added 56 new unicorn enterprises in 2023, mostly in the artificial intelligence, semiconductors, and new energy sectors. TikTok's parent company ByteDance and Chinese games giant miHoYo are among the most valuable unicorns in the world. Hefei, Guangzhou, Hangzhou, and Suzhou are the fastest-growing cities for unicorn enterprises in China.
Finance Ministry rejects Fitch Ratings downgrade
China's Finance Ministry rejects Fitch Ratings' downgrade of its fiscal outlook, stating that its deficit is at a moderate level and risks are under control. Fitch downgraded China's outlook to negative due to rising public financial risks and slower economic growth. The government disputes the downgrade, highlighting its efforts to improve the quality and efficiency of government spending. Fitch predicts China's economy will expand at a 4.5% annual rate this year, down from 5.2% last year, and warns of rapidly worsening debt since the pandemic.
Criticism over ties with Russia
China has declared it will not accept criticism or pressure over its ties with Russia. This comes after the U.S. warned it would hold Beijing responsible if Moscow makes gains in Ukraine. China's foreign ministry spokesperson Mao Ning emphasized the right for China and Russia to engage in normal economic and trade cooperation without interference. "China and Russia have the right to engage in normal economic and trade cooperation. This kind of cooperation should not be interfered with or limited," she said.
World of Warcraft to return to China
Popular video games including "World of Warcraft" will return to China this summer after a contract dispute pulled them from the market for over a year. The games will be re-launched through a renewed publishing deal with local partner NetEase. The return of Blizzard's titles has been met with excitement from fans on Chinese social media. The online multiplayer role-playing game set in a fantasy Medieval world has been immensely popular in China, with millions of players. "Beloved video game titles from Blizzard Entertainment that captivated millions of players in China will return to the market sequentially, beginning this summer, under a renewed publishing deal," the companies said in a statement.
Cement maker suspends trading after dip
Chinese cement maker Tianrui Group Cement Co. suspended stock trading after a selloff that nearly wiped out its market value in the last 15 minutes of the previous session. The company's stock plunged 99%, cutting its market capitalisation to HK$141 million ($18 million), Bloomberg reports. The company's controlling shareholder and spouse jointly own 70% of the firm. Trading in its Hong Kong-listed shares has been suspended pending an announcement related to inside information.
