World Street | Bluesky's flight, China's weak PMI data, EV maker BYD's shopping and more

Alibaba successfully concluded a three-year regulatory overhaul process following an antitrust fine that was imposed in 2021 for monopolistic practices. In 2021, State Administration for Market Regulation (SAMR) fined Alibaba 18.23 billion yuan ($2.6 billion) after investigating the company for unfair practices.

China's SAMR also said to be overseeing Alibaba's efforts to comply with antitrust rules over the past few years. The main issue which led to Alibaba's antitrust fine was its policy that forced merchants to choose between two e-commerce platforms, giving the company an unfair advantage in the market.

Crawling down

China's manufacturing activity dropped to a six-month low in August, with factory gate prices falling and factory owners struggling to secure orders, according to an official survey released on Saturday. The National Bureau of Statistics purchasing managers' index declined to 49.1 from 49.4 in July, marking its sixth consecutive decline and the fourth month when the reading came below the 50 threshold that indicates contraction.

Following a disappointing second earnings quarter, the world's second-largest economy continued to lose momentum in July, pushing policymakers to consider shifting away from their usual strategy of heavy infrastructure spending. Instead, they are now signaling plans to direct more stimulus towards households.

Opening claws

China's BYD announced that it will acquire its German distributor, Hedin Electric Mobility, as a part of its larger strategy to solidify its position as a major electric vehicle manufacturer in Europe. Pos the acquisition,  BYD Automotive GmbH will take over Hedin's sales activities and manage its stores in Stuttgart and Frankfurt, with the deal likely to close in the fourth quarter.

This move will give BYD more control over its operations in Germany, where it sold just over 4,000 vehicles last year, but has seen a decline in sales this year due to a broader downturn in EV demand. Hedin is a Swedish mobility group that also handles distribution for other Chinese car brands like XPeng and Hongqi, previously managed BYD's relationships with six dealers across Germany to help the company establish a foothold in Europe.

Hopes for more

Oil prices extended losses on Monday as investors bey on hopes of increased OPEC+ production starting in October against a significant drop in output from Libya, all while facing weak demand in China and the US, the world's largest oil consumers. According to a Reuters report, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, plan to proceed with an oil output increase in October. Specifically, eight OPEC+ members are set to raise production by 180,000 barrels per day, as part of a strategy to gradually roll back their recent 2.2 million bpd output cuts while maintaining other cuts until the end of 2025.