Latest news with #StateAdministrationforMarketRegulation
South China Morning Post
25-07-2025
- Business
- South China Morning Post
China to amend key law as push to stamp out vicious price wars intensifies
China plans to amend a decades-old pricing law as part of an ongoing campaign to curb the vicious price wars plaguing several industries – a deep-rooted issue that threatens to wipe out corporate profits and fuel deflationary pressure. The amendment, which covers 10 clauses in the law, updates the definition of unfair pricing practices to include 'involution-style' competition, according to a draft released by China's National Development and Reform Commission (NDRC) and the State Administration for Market Regulation on Thursday. The term 'involution' has become a buzzword in China that refers to the excessive, cutthroat style of competition that has emerged in several industries, as companies facing weak domestic demand and oversupply problems slash prices in a bid to attract customers. The trend has become a serious concern for Beijing in recent months, with Chinese officials repeatedly vowing to stamp out the price wars and criticising companies that engage in 'disorderly' styles of competition that risk undermining economic growth. As China's economic landscape had undergone profound changes, the pricing law that originally came into effect in 1998 needed to be updated, government agencies said in a statement. 'With new economic forms and business models continuing to emerge, some industries have seen prominent cases of disorderly low-price competition, creating new demand for price regulation and oversight,' the statement said. The amendment, which is open for public comment until August 23, adds a new clause stating that businesses shall not force other operators to dump products at below-cost prices. Previously, the law only banned firms from selling goods below cost to eliminate competitors or monopolise the market.
Business Times
24-07-2025
- Business
- Business Times
China releases draft law amendment to help curb price wars
[BEIJING] China released a draft amendment to its pricing law on Thursday (Jul 24) as part of efforts to curb excessive competition and price wars among firms, amid persistent deflationary pressures. Chinese leaders have signalled they will rein in price wars among producers as expectations grow for a new round of factory capacity cuts in a long-awaited but challenging campaign against deflation – a move that could pose risks to economic growth. Under the proposed revisions, apart from lawful discounts on seasonal or overstocked goods, or other legitimate reasons for price cuts, firms will be prohibited from selling below cost to drive out competitors or monopolise the market, and from forcing others to adopt similar pricing practices. The draft law, published on the website of the National Development and Reform Commission (NDRC) – the state planner, also stipulates that firms cannot use data, algorithms, or technology to engage in improper pricing behaviours. The NDRC and the State Administration for Market Regulation said in a statement that China's economic landscape has changed significantly since the current pricing law was adopted in 1998. 'The vast majority of goods and services prices are now formed by the market, new economic forms and business models are constantly emerging, and issues such as disorderly low-price competition in some industries have become prominent,' they said. China will refine standards for identifying price collusion, price gouging, price discrimination and other unfair pricing practices, and take steps to address 'involution-style' competition, the state agencies said. The draft amendment, which is open for public comment until Aug 23, also proposes tougher penalties for unfair pricing practices, including higher fines for violations of clear price marking requirements. China's producer prices dropped for the 33rd month in June. REUTERS
CNBC
22-07-2025
- Business
- CNBC
Profit-taking hits some momentum stocks, and a dark cloud lifts over DuPont
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: Stocks were mixed for most of the session on Tuesday as second-quarter earnings season marched on. The S & P 500 turned slightly positive shortly after President Donald Trump said on Truth Social that the U.S. has reached a trade deal with the Philippines. As part of the agreement, the tariff rate on goods imported from the Philippines was reduced to 19% from 20% and U.S goods into the Philippines will not be subject to tariffs. Beyond the trade headlines, there's a counter-trend move happening underneath the surface that's taking some of the froth out, with profit-taking in many momentum growth stocks and buying of more value-oriented names. Called off: DuPont received positive news Tuesday after China's State Administration for Market Regulation said it suspended its antitrust investigation into DuPont China. The probe began in early April and was widely seen as retaliation for Trump's tariff escalation. When first announced, DuPont disclosed that the inquiry only concerned its Tyvek business, which generated $90 million in sales to China in 2024, representing less than 1% of the company's total sales. This is an immaterial amount, but it still caused the stock to sell-off sharply because the market was concerned about its broader implications. Specifically, the worry was that the investigation and China's retaliations would extend to DuPont's electronics business (now called Qnity), derailing the upcoming spinoff. But that's no longer the case, and it's a good thing to clear that overhang ahead of the breakup in November. DuPont has been a disappointment this year due to concerns about tariffs and its exposure to China, but shares have started to act better over the past few weeks. Tuesday's gains are putting it at its highest levels since March. The company has not announced when it will report its second-quarter earnings, but last Friday analysts at Deutsche Bank named it a "catalyst call" buy idea into the print. Up next: Club name Capital One Financial reports after the closing bell on Tuesday . We're expecting a noisy quarter due to the timing of the Discover deal, but we remain positive about the long term fundamentals. Its earnings report more generally will offer a look at the health of the U.S. consumer. Other companies reporting are Intuitive Surgical , SAP , Enphase Energy , Baker Hughes , Chubb , EQT Corporation , and Texas Instruments . Club name GE Vernova reports before the opening bell on Wednesday along with AT & T , Freeport-McMoRan , Thermo Fisher , Fiserv , Amphenol , Hasbro and Lamb Weston . (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Time of India
14-07-2025
- Business
- Time of India
China grants conditional approval for Synopsys to acquire Ansys
BEIJING: China's market regulator has conditionally approved the acquisition of simulation software company Ansys by U.S. software firm Synopsys ' , the State Administration for Market Regulation said on Monday. The approval comes after the United States lifted restrictions on exports to China for chip design software developers earlier this month, allowing companies, including Synopsys, to restore access to their software and technology for Chinese customers. The Chinese regulator said it approved the deal based on restrictive commitments submitted by the companies, requiring the merged entity to fulfil several obligations. The conditions require the companies to honour existing customer contracts, including pricing and service terms, and continue supplying electronic design automation products to Chinese customers on fair and non-discriminatory terms. The companies will also be required to maintain existing interoperability agreements and renew them on request from Chinese customers. Synopsys, which makes EDA tools for chip design, announced the $35 billion cash-and-stock deal for Ansys in early 2024. The transaction has faced antitrust scrutiny in major markets, though some authorities, including Britain, have already granted approval.
Business Times
14-07-2025
- Business
- Business Times
China clears Synopsys's US$35 billion Ansys buyout in US win
[HONG KONG] Synopsys has secured China's approval to buy out Ansys for US$35 billion, a major win for a company regarded as key to helping sustain US dominance of certain aspects of semiconductor technology. The State Administration for Market Regulation gave the acquisition a green light, with certain conditions, the agency said in a statement. Among other things, the Chinese watchdog mandated that Synopsys cannot reject requests from customers to renew their contracts. Washington this year briefly considered limiting Synopsys and its rivals from dealing with Chinese clients on the grounds of national security. Synopsys and Cadence Design Systems – the two American firms that dominate the global market for software tools used to design chips – got drawn into the Washington-Beijing trade war this year. The US imposed a licensing requirement that would've limited exports of their products, part of its response to Beijing's limits on rare earths, before abruptly lifting that mandate weeks later. Following Beijing's decision, Synopsys has cleared one of the last major hurdles to a deal to intended to shore up its market position. The buyout, announced in early 2024, was already approved by European and US authorities. In June, reports emerged that Chinese officials were delaying it in part because of escalating tensions over Washington's chip sanctions. Synopsys shares rose as much as 3.7 per cent in premarket trading on Monday. They have risen about 15 per cent so far this year. US companies seeking Chinese antitrust approval – particularly for deals in the tech sector – are often caught in the middle of geopolitical disputes between the countries. The companies needed Beijing's sign off because China is one of the world's largest semiconductor markets. In 2018, US-based Qualcomm scrapped a US$44 billion bid for Dutch chipmaker NXP Semiconductors after failing to secure a nod in time. As recently as 2023, Intel Corp. abandoned its proposed US$5.4 billion acquisition of Tower Semiconductor for the same reason. Broadcom's US$61 billion merger with software maker VMware eventually went through, although investors remained on edge throughout the process due to speculation that China would hold up the deal. BLOOMBERG
