Business
China Joins Electric Vehicle Fundraising Gold Rush
News Analysis
Chinese electric vehicle (EV) manufacturer Xpeng priced its initial public offering on Aug. 26 and subsequently saw its stock price surge more than 50 percent above its IPO price by Friday, becoming the latest EV maker to see its shares skyrocket in recent weeks.
Everything EV has gone hyperbolic in 2020. Nevermind a recession or a virus pandemic—Tesla Inc., the biggest name in the industry, has seen its shares soar more than 400% percent since Jan. 1. It is now the world’s most valuable automaker by market capitalization. Xpeng’s fortuitous timing of its IPO means it just became the latest company to ride the EV high tide.
Guangzhou-based Xiaopeng Motors (commonly known as Xpeng) sells EV models in China and competes with Tesla as well as other domestic Chinese EV makers such as NIO and Li Auto. Xpeng has also developed its own autonomous driving capabilities. Its IPO was priced at $15 per share, above the initial expected range, raising approximately $1.5 billion on the New York Stock Exchange.
EV Industry High Tide
EV stocks have been on fire this year, propelling Tesla to become the world’s most valuable automaker despite meager profits. Market capitalization changes daily, but as of Aug. 28 Tesla’s value of $412 billion is worth around twice as much as the world’s second-most valuable automaker, Japan’s Toyota.
Tesla’s success has spurred a spate of new fundraising for EV makers. The highest profile was Arizona-based EV startup Nikola Motors, which merged with a special-purpose acquisition company (SPAC) called VectorIQ in June to become a publicly traded company. And despite showing no revenues, Nikola’s stock closed at $41.35 on Aug. 28, giving the company a $15.6 billion valuation.
Nikola’s success story—financially, if not businesswise—has led several other EV makers to pursue public listings via SPACs. Other EV companies merging with SPACs include Fisker, Canoo, and Lordstown Motor, all of which announced transactions in July or August 2020.
This is the environment the Alibaba-backed Xpeng has chosen to sell its…
Business
Democrat Claims Musk is Undermining Spending Bill Due to China Restrictions – The Hill
A Democrat claims Elon Musk influenced the reduction of a spending bill due to its restrictions on China, suggesting his actions impacted the legislation’s progress and funding allocation.
Allegations Against Musk
A prominent Democrat has accused Elon Musk of deliberately sabotaging a significant spending bill in response to China-related restrictions. This accusation comes amid ongoing tensions between the U.S. and China, particularly regarding technology and trade policies. The claims suggest that Musk’s influence is affecting critical legislative processes, raising concerns among lawmakers about foreign influence in American politics.
Implications for Legislation
The potential ramifications of Musk’s alleged actions could be significant. As a major player in the tech industry, his decisions can sway public opinion and impact the economy. Lawmakers fear that if influential figures like Musk oppose necessary legislation, it might hinder efforts to address vital issues such as national security and economic stability.
Political Reactions
The controversy has sparked debates among both Democrats and Republicans, highlighting the intersection of technology and politics. Many are demanding greater transparency and accountability from tech giants. As the situation unfolds, lawmakers may need to reassess their strategies to ensure that essential legislation moves forward uninterrupted.
Source : Democrat accuses Musk of tanking spending bill over China restrictions – The Hill
Business
HSBC Chairman to Head Key UK Business Delegation to China
HSBC Chairman Mark Tucker will lead a UK business delegation to China next month to boost trade and investment, amid concerns over national security and improving UK-China relations.
HSBC Chairman Leads UK Delegation to China
HSBC Chairman Mark Tucker will lead a pivotal British business delegation to China next month, marking the first significant visit since 2018. The trip aims to enhance Chinese investment in the UK, guided by Chancellor Rachel Reeves. Tucker, a seasoned financier with extensive Asia experience, is regarded as essential in resetting UK-China relations.
Reviving Economic Dialogue
Tucker will accompany senior bankers in seeking to rejuvenate trade, specifically focusing on financial services. Although there are apprehensions among some UK lawmakers regarding national security threats posed by closer ties to Beijing, the UK Treasury spokesperson confirmed Chancellor Reeves’ upcoming discussions on economic cooperation in Beijing.
A Shift in UK-China Relations
Since suspending most dialogues following China’s imposition of a national security law in Hong Kong, UK-China relations have soured. Nevertheless, the Labour government is prioritizing improved ties with China, emphasizing investment opportunities. Reeves asserts the necessity of a pragmatic approach to benefitting national interests amid ongoing concerns voiced by some lawmakers about security risks.
Source : HSBC Chairman to lead pivotal UK business delegation to China
Business
Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China
Gordonstoun school severed ties with Hampton Group over espionage allegations against chairman Yang Tengbo. He denies involvement and claims to be a victim of political tensions between the UK and China.
Allegations Lead to School’s Decision
Gordonstoun School in Moray has cut ties with Hampton Group International after serious allegations surfaced regarding its chairman, Yang Tengbo, who is accused of being a spy for the Chinese government. Known by the alias "H6," Mr. Tengbo was involved in a deal that aimed to establish five new schools in China affiliated with Gordonstoun. However, the recent allegations compelled the school to terminate their agreement.
Public Denial and Legal Action
In response to the spying claims, Mr. Tengbo publicly revealed his identity, asserting that he has committed no wrongdoing. A close associate of Prince Andrew and a former Gordonstoun student himself, Mr. Tengbo has strenuously denied the accusations, stating that he is a target of the escalating tensions between the UK and China. He has claimed that his mistreatment is politically motivated.
Immigration Challenges and Legal Responses
Yang Tengbo, also known as Chris Yang, has faced additional challenges regarding his immigration status in the UK. After losing an appeal against a ban enacted last year, he reiterated his innocence, condemning media speculation while emphasizing his commitment to clear his name. Gordonstoun, on its part, stated its inability to divulge further details due to legal constraints.
Source : Gordonstoun cuts ties with business chaired by man accused of spying for China
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