HOT TOPICS
Premier Li Qiang calls for incremental policies
Premier Li Qiang chaired a State Council plenary meeting on Aug. 17, noting that while the Chinese economy remains broadly stable, insufficient domestic demand remains a prominent issue, difficulties for some businesses are increasing, and external uncertainties are rising. He called for maximizing the effectiveness of existing policies and introducing practical, incremental measures to eliminate bottlenecks and promote sustained economic improvement.
July retail sales growth slows
China’s retail sales of consumer goods rose 0.6% year-on-year in July, down 0.4 percentage points from June. The slowdown is primarily attributed to the front-loaded effects of earlier stimulus measures, such as the consumer goods trade-in program and vehicle purchase tax cuts, which have temporarily drained market demand.
Tier 2 new-home prices decline
New-home prices in China’s tier 1 cities were flat month-on-month in July, compared with a 0.1% increase in June. Prices in tier 2 cities fell 0.1%, compared with no change in the previous month. The month-on-month decline in July indicates that a sustained recovery in tier 2 city property prices has not yet taken hold. July is traditionally an off-season month with fewer project launches.
CXMT Corp. shares hit record high
Shares of CXMT Corp. closed up 12% on Aug. 17 to a record high, pushing its total market capitalization to 4.13 trillion yuan ($613 billion). Industry insiders attributed the rally to a combination of domestic substitution, AI compute expansion and an upcycle in the memory sector.
Multiple provinces raise minimum wages
More than 10 Chinese provinces and municipalities, including Guangdong, Jiangsu and Zhejiang, have initiated a new round of minimum wage increases for 2026, representing increases of 6% to 8%. Guangzhou and Shenzhen will raise their monthly minimum wages to 2,680 yuan and 2,700 yuan, respectively, with many regions implementing the new standards on Sept. 1.
China releases auto chip certification standards
China published five certification and accreditation standards for the automotive chip industry to build a capability evaluation system for the sector. The move aims to accelerate quality control from research and development to vehicle application and foster a trillion-yuan auto chip ecosystem.
NEWS SUMMARY
Domestic
China’s industrial value-added output grew 4.5% year-on-year in July, missing estimates.
Eight banks have been added to the roster of institutions authorized to operate digital yuan services, lifting the total to 30 as the central bank presses ahead with the rollout of the e-CNY.
China released its 15th Five-Year Plan for oil and gas development centered on energy security and low-carbon growth.
Companies
Alibaba Group Holding Ltd. spun off its gaming business Lingxi Games, which was acquired by private equity firm Trustar Capital.
A U.S. appeals court remanded a case involving SZ DJI Technology Co. Ltd. and the U.S. Department of Defense for retrial, citing errors in the original ruling.
Li Shufu resigned as chairman of the board of Geely Automobile Holdings Ltd., effective Aug. 18.
Battery giant Contemporary Amperex Technology Co. Ltd. will require new suppliers to meet carbon-footprint criteria starting next year.
Contact editor Kelsey Cheng (kelseycheng@caixin.com)
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