China

China Evergrande's electric vehicle group said on Monday a Chinese court had ruled that two of its subsidiaries should enter bankruptcy and be reorganised, sending the EV group's shares plunging 7.9%, the lowest since May 16, Reuters reported. The news about the subsidiaries of the embattled real estate developer's New Energy Vehicle operation came after creditors filed for the proceedings last month. Their filings did not spell out reasons.

China has given the green light to Anbang Insurance Group Co. Ltd. to start bankruptcy proceedings, marking the latest step in the government’s years-long efforts to manage the collapse of the sprawling financial conglomerate, CaixinGlobal.com reported. The National Financial Regulatory Administration, China’s top financial regulator, announced the in-principle approval on Friday.

Global burger chains to car manufacturers are increasingly feeling the pinch from a faltering recovery in the world's No. 2 economy, China, and are strapping in for a bumpy ride ahead, Reuters reported.

Bargain site Temu has won over hundreds of millions of customers around the world with its rock-bottom-priced hairpins and pet toys. Some suppliers say consumers’ gains are coming at their expense, WSJ Pro Bankruptcy reported. A throng of Chinese merchants who supply Temu stormed a company affiliate’s office on Monday in Guangzhou, southern China, to protest what they consider unfair penalties that left some bankrupt. Video clips provided by protesters showed scores of angry merchants at the office whistling and demanding a resolution, with police maintaining order.

China’s central bank is planning to move the date on which it injects one-year liquidity to domestic lenders to the 25th of each month, as part of a shift to relying primarily on a short-term interest rate to steer markets, Bloomberg News reported. The change will take effect as early as in August, the people said, asking not to be identified because they are not authorized to speak publicly. The People’s Bank of China now conducts its medium-term lending facility operation on the 15th of every month.

China’s manufacturing activity extended its run of declines to a third straight month in July, signaling continued weakness in the economy a day after the country’s communist leaders pledged to introduce more pro-growth measures, the Wall Street Journal reported. The manufacturing purchasing managers index dropped slightly to 49.4 in July from 49.5 in June, according to data released Wednesday by the National Bureau of Statistics. A reading below 50 suggests contraction, while one above indicates expansion. The result was mostly in line with expectations.

Chinese solar module producer Zhejiang Akcome New Energy Technology has filed for bankruptcy at one of its subsidiaries, citing an inability to repay its debts, according to a Monday filing, Reuters reported. Zhejiang Akcome Photoelectricity Technology's petition to enter bankruptcy restructuring was submitted by the parent company and was accepted by Changxing county court in eastern Zhejiang province, according to the filing with the Shenzhen stock exchange.

Liquidators trying to recoup at least a fraction of creditors’ investments in defaulted Chinese builders are running into dead-ends, Bloomberg News reported. They have encountered a host of challenges, from trying to get paid to scouring for financial documents and elusive executives. Creditors in three cases, including Sinic Holdings Group Co. and Yango Justice International Ltd., haven’t seen any significant distribution. Sinic’s case stalled, for example, after representatives from Kroll (HK) Ltd. didn’t land funding for an investigation to recover the financial books, the people said.

Chinese leaders said they would take more aggressive steps to boost consumer spending and head off a worsening set of economic challenges, signaling rising concern about flagging momentum in the world’s second-largest economy, the Wall Street Journal reported. The Communist Party’s top policymaking body, the 24-member Politburo, pledged more measures to boost household income and reduce funding costs for companies, though the report from the state-run Xinhua News Agency offered few specifics on what it is planning.

A Hong Kong court on Monday adjourned a hearing into a petition seeking liquidation of Country Garden until Jan. 20, 2025, giving a breather to the embattled Chinese developer which is trying to finalise an offshore debt revamp plan, Reuters reported. Ever Credit Limited, a unit of Hong Kong-listed Kingboard Holdings, filed the liquidation petition against Country Garden in February for non-payment of a $205 million loan. The developer defaulted on its $11 billion worth of offshore bonds last year.