Wall Street Struggles to Keep Up in China Mutual Fund Boom

(Bloomberg) — From BlackRock Inc. to Vanguard Group, global asset managers have been dazzled by the promised riches of China’s $3.4 trillion mutual fund industry. However, they’re now learning just how fierce the local competition will be.

Funds backed by international firms raised $470 billion from retail investors in the first eight months of the year, less than half the $967 billion haul of their 100-plus Chinese rivals, according to data compiled by Morningstar and Bloomberg. Of the top 10 biggest funds raised this year, only two were backed by foreign companies.

Foreign companies are having to grapple with how little their size and global reputation matter in a market infamous for investors jumping from fund to fund in search of the next big thing. Domestic rivals have pressed their home-field advantage, picking up a lion’s share of almost $6 billion in fees generated in the first-half alone.

The locals

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Customs seizes 500,000 faulty N95 masks in Chicago en route from China to New Jersey

U.S. Customs and Border Protection officers seized 500,000 faulty N95 masks headed to New Jersey from Schenzhen, China, after they were found to be less than 95% effective.

The seizure, worth an estimated $3 million, was made in Chicago last week when Homeland Security asked the CBP’s Anti-Terrorism Contraband Enforcement Team in the Windy City to apprehend and inspect the shipment, CBP said in a statement.

Thirty of the masks were inspected at a U.S. Centers for Disease Control and Prevention facility, which found that 10% of the respirators tested had a filter efficiency rating below 95%, CBP said in a statement last Thursday.

While the suggested retail price was just under $500,000, the potential retail sales value was more like $3 million due to demand, CBP said.

Despite a push for more personal protective equipment, there is still a shortage of the highly refined N-95 masks in the U.S.

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China Proposes Global Data Rules to Counter U.S. Moves on TikTok

(Bloomberg) — China on Tuesday outlined a slate of rules designed to prevent foreign governments from acquiring data stored locally, seeking to counter Washington’s accusations that services like TikTok and WeChat share sensitive user information with Beijing.

Foreign Minister Wang Yi unveiled the proposals governing global data security after raising the plan with his Group of 20 counterparts last week, part of China’s attempts to set global standards for the digital sphere. They involve forbidding governments from gaining access to data acquired by companies’ overseas operations, according to a statement posted on the ministry’s website.

The guidelines reinforce Beijing’s long-held concept of data sovereignty, or limiting information flow across borders, an idea gaining momentum as concerns over national security increase. The Trump administration has banned ByteDance Ltd.’s TikTok and Tencent Holdings Ltd.’s WeChat and sanctioned Huawei Technologies Co., accusing them of sharing Americans’ data with the Chinese government.

“To reduce

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China must reform financial markets to ward off US financial sanctions, think tank urges

China should make its own financial markets big enough and open enough to foil any attempt by the United States to decouple financially, according to a semi-official Chinese research group.

trade war and efforts to restrain China’s technological development in the name of national security.” data-reactid=”20″The tactics suggested in a report released on Sunday by the China Finance 40 Forum (CF40), a think tank comprising senior Chinese regulatory officials and financial experts, comes amid worries that the United States will expand the conflict between the world’s two largest economies beyond the trade war and efforts to restrain China’s technological development in the name of national security.

“[We] must firmly oppose and properly handle the United States’ long-arm jurisdiction [of applying US law outside its borders] and financial sanctions, and in the meantime make contingency plans against extreme conditions,” according to a report excerpt released on the group’s social media

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China Throws a Wrench Into Trump’s Plan to Force TikTok Sale

(Bloomberg) — Zhang Yiming’s plan to sell the U.S. operations of his short-video app TikTok to avoid a shutdown was thrown into jeopardy after China asserted its authority over a deal already under scrutiny by the Trump administration.

Beijing on Friday injected more uncertainty into already thorny negotiations over the sale of ByteDance Ltd.’s prized asset, claiming the ability to block a sale to foreign suitors Microsoft Corp. or Oracle Corp. with tighter restrictions on artificial intelligence exports. The commerce ministry added speech and text recognition and personalized recommendations to a list of products that require approval before they’re sold abroad.

These new areas cover the very technologies ByteDance employed to make TikTok a viral teen sensation from America to India. ByteDance is now required to seek the government’s sign-off on any deal, though it doesn’t mean an outright ban, according to a person familiar with the matter. TikTok is

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How iQIYI Is Pioneering Premium VOD in China

As the global film industry grapples with new forms of online distribution brought about by COVID-19, iQIYI has emerged as China’s frontrunner in the emerging premium video-on-demand (PVOD) sector.

The streamer launched a version of its PVOD service last year, but it only started to really take off in 2020 due to the coronavirus. With audiences shut in at home, thirsty for new content, and production firms looking for ways to make money back on indefinitely shelved theatrical titles, a premiere on iQIYI — with its 606 million monthly active users as of February — emerged as an increasingly attractive option while cinemas were shut.

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“In China, the coronavirus has catalyzed the development of new distribution models in which internet platforms are now directly distributing films themselves,” Yang Xianghua, iQIYI’s president of membership and overseas business told Variety. “The pandemic will have a long-term impact on

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China Just Killed Its $491 Billion Private Loan Market

(Bloomberg Opinion) — Sometimes you’ve got to wonder what Beijing’s priorities are: helping small businesses weather the Covid-19 storm or taking victory laps. The message to the private banking world is unclear. 

Beijing has vowed to cut the cost of borrowing, and its latest target is private loans. China’s Supreme Court ordered interest rates on private lending, which includes microcredit, pawnshop loans, and online peer-to-peer lending, to be lowered as much as 10 percentage points. Previously, when disputes arose, China’s legal system would honor agreements with rates up to 24%. Now the ceiling is 15.4%, or four times the benchmark rate.

At first blush, China appears to be protecting the little guys. In reality, though, Beijing is closing off an important financing channel to those most in need. The Covid-19 outbreak has worsened small businesses’ credit profiles, and this new loan cap could shut down a corner of shadow banking

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Trump’s TikTok and WeChat Ban Could Backfire Inside China

Photo Illustration by Kelly Caminero/The Daily Beast/Getty
Photo Illustration by Kelly Caminero/The Daily Beast/Getty

HONG KONG—As Donald Trump moves to ban transactions with WeChat and ByteDance, the parent company of TikTok, people in China are wondering if they’ll need to ditch their iPhones to keep their favorite app, and noting that the White House’s splinternet rhetoric is straight out of Beijing’s own playbook. 

Trump’s moves against ByteDance and Tencent’s WeChat strike at two tech companies deeply entrenched in China’s social life—and, in WeChat’s case, critical to the consumer reach of American companies inside China. 

ByteDance’s TikTok, the popular short video platform that in the past weeks was in the crosshairs of Trump and Secretary of State Mike Pompeo, has been one of the most downloaded apps globally for two years—even though TikTok cannot be used in China legally due to its home country’s fractured internet governance policy.  And WeChat, a “super app” that blends messaging, social network

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Tech leaders have long predicted a ‘splinternet’ future where the web is divided between the US and China. Trump might make it a reality.

President Donald Trump attends a bilateral meeting with China's President Xi Jinping during the G20 leaders summit in Osaka, Japan, June 29, 2019.
President Donald Trump attends a bilateral meeting with China’s President Xi Jinping during the G20 leaders summit in Osaka, Japan, June 29, 2019.

Kevin Lamarque/Reuters

  • The Trump administration announced a broad plan on Wednesday to block Chinese software from being used on US devices and keep US data off Chinese cloud services.

  • The plan mirrors China’s “great firewall” that prevents people in China from accessing most US websites and apps.

  • While the Trump administration’s announcement rocked the world of tech, Silicon Valley leaders have long braced for a “splinternet” that could replace the world wide web with locally contained networks.

  • Others, like former Google CEO Eric Schmidt, have previously predicted a bifurcated internet, split between China’s internet and the rest of the world.

  • Visit Business Insider’s homepage for more stories.

We’re closer to a “splinternet” than ever before.

Tech leaders have long warned that the world wide web could come

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There is still no proof TikTok is spying on you for China

TikTok, the app beloved by Generation Z, might get booted out of the US.
TikTok, the app beloved by Generation Z, might get booted out of the US.

Jon Kopaloff/Getty Images

  • The Trump administration is forcing TikTok to sell off its US business by September 15 or else face a ban, accusing it of posing a privacy and national security threat because it is owned by a Chinese company.

  • The administration has explicitly claimed TikTok spies on people but has never offered public evidence.

  • Experts diving through TikTok’s code and policies say the app collects user data in a similar way to Facebook and other popular social apps.

  • Google and Facebook by comparison almost certainly hoover up more user data than TikTok through their sprawling number of apps and services — but get less US political scrutiny on privacy.

  • Visit Business Insider’s homepage for more stories.

TikTok, the video-sharing app whose meteoric rise amongst teenage users has made it a challenger to the likes

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