Finance

China ramps up Wall Street meetings as Trump inauguration looms

Published

6 months ago

December 10, 2024

Chinese Vice Premier He Lifeng has met with several U.S. finance executives in the last month as Beijing seeks to build relationships ahead of President-elect Donald Trump’s planned tariffs on China.

He Lifeng is one of China’s four vice premiers, and heads the ruling Chinese Communist Party’s economic and finance committee.

He met with BlackRock Chairman and CEO Larry Fink in Beijing on Dec. 5, and Goldman Sachs President and COO John E. Waldron on Dec. 4, according to state media. That followed a meeting with Citigroup CEO Jane Fraser on Nov. 21, state media said.

“The Chinese are seeking all possible avenues to access those now ascending to power in Washington. The Trump Team,” said Peter Alexander, founder of Shanghai-based consulting firm Z-Ben Advisors. “Back channeling is how China operates, even prefers, when building lines of communications.”

Goldman Sachs said it was aware of the reports. The two other financial firms did not respond to a CNBC request for comment.

Trump has filled his Cabinet picks with at least 10 reported billionaires, including two with a finance-heavy background: hedge fund manager Scott Bessent for treasury secretary and Cantor Fitzgerald CEO Howard Lutnick for commerce secretary.

Xi’s cautious tone reflects concerns about exacerbating structural challenges: Longview's McNeal

“I do think the Wall Street folks that are coming into commerce and treasury will serve a moderating role on the trade protectionist side,” said Clark Packard, research fellow at the Cato Institute. “It’s all relative because I do think there’s going to be something protectionist on the trade side. Those voices will be the voices that work to mitigate some of that.”

“Especially at Treasury they’re pretty worried about market reaction,” Packard said. “The one thing that can truly maybe scare Trump away from a really aggressive [policy] would be the market reaction.”

U.S. stocks are on track for a relatively rare second straight year of more than 20% gains. After tumbling early this year, Chinese stocks rebounded after Beijing signaled a shift toward stimulus in late September. Chinese authorities on Monday affirmed that supportive stance in a high-level meeting.

‘Keeping its options open’

With actions such as hosting Wall Street executives and imposing export controls on critical minerals, Beijing is keeping its options open, said Zongyuan Zoe Liu, who is Maurice R. Greenberg senior fellow for China studies at the Council on Foreign Relations. “They are preparing for the worst-case scenario.”

But she cautioned that it’s unlikely that financial institutions can do much to mitigate tariffs and tensions with the U.S. “Business transactions and Wall Street executives, one way or another, they would not give up opportunities in any market as long as it fits into their profile,” Liu said.

Chinese financial media summarized He Lifeng’s meetings with the U.S. executives as sending a signal on Beijing’s willingness to open up the financial sector and attract long-term, foreign institutional investment. Foreign capital inflows are often cast by Chinese state media as a symbol of support for the domestic market.

The Chinese vice premier also met with Invesco President and CEO Andrew Schlossberg in Beijing on Nov. 12, and HSBC Group Chairman Mark Tucker on Nov. 14, according to state media. HSBC said it had nothing to add to the report. Invesco did not respond to a request for comment.

U.S.-China capital markets have been “arguably the most dynamic and inter-connected aspect” of the bilateral relationship in the last two decades, said Winston Ma, adjunct professor at NYU School of Law.

“When the cross-border finance relationship is constructive and cooperative, it could lead to MAP, i.e. mutual assured [prosperity]; otherwise it will be MAD, mutual assured destruction,” Ma said, referring to a Cold War deterrence principle.

Finance

Stocks making the biggest moves midday: WBD, MODG, SATS, AAPL

Published

23 minutes ago

June 9, 2025

Business Finance News

Finance

Walmart taps own fintech firm for credit cards after Capital One exit

Published

56 minutes ago

June 9, 2025

Business Finance News

A Capital One Walmart credit card sign is seen at a store in Mountain View, California, United States on Tuesday, November 19, 2019.

Yichuan Cao | Nurphoto | Getty Images

Walmart‘s majority-owned fintech startup OnePay said Monday it was launching a pair of new credit cards for customers of the world’s biggest retailer.

OnePay is partnering with Synchrony, a major behind-the-scenes player in retail cards, which will issue the cards and handle underwriting decisions starting in the fall, the companies said.

OnePay, which was created by Walmart in 2021 with venture firm Ribbit Capital, will handle the customer experience for the card program through its mobile app.

Walmart had leaned on Capital One as the exclusive provider of its credit cards since 2018, but sued the bank in 2023 so that it could exit the relationship years ahead of schedule. At the time, Capital One accused Walmart of seeking to end its partnership so that it could move transactions to OnePay.

The Walmart card program had 10 million customers and roughly $8.5 billion in loans outstanding last year, when the partnership with Capital One ended, according to Fitch Ratings.

For Walmart and its fintech firm, the arrangement shows that, in seeking to quickly scale up in financial services, OnePay is opting to partner with established players rather than going it alone.

In March, OnePay announced that it was tapping Swedish fintech firm Klarna to handle buy now, pay later loans at the retailer, even after testing its own installment loan program.

One-stop shop

In its quest to become a one-stop shop for Americans underserved by traditional banks, OnePay has methodically built out its offerings, which now include debit cards, high-yield savings accounts and a digital wallet with peer-to-peer payments.

OnePay is rolling out two options: a general-purpose credit card that can be used anywhere Mastercard is accepted and a store card that will only allow Walmart purchases.

Customers whose credit profiles don’t allow them to qualify for the general-purpose card will be offered the store card, according to a person with knowledge of the program.

OnePay didn’t yet disclose the rewards expected with the cards, though the general-purpose card is expected to provide a stronger value, said this person, who declined to be identified speaking ahead of the product’s release. The Synchrony partnership was reported earlier by Bloomberg.

“Our goal with this credit card program is to deliver an experience for consumers that’s transparent, rewarding, and easy to use,” OnePay CEO Omer Ismail said in the Monday release.

“We’re excited to be partnering with Synchrony to launch a program at Walmart that checks each of those boxes and will help serve millions of people,” Ismail said.