HOT TOPICS
PBOC to deepen Hong Kong’s bond, offshore yuan markets
People’s Bank of China Governor Pan Gongsheng expressed support for more high-quality enterprises to list and issue bonds in Hong Kong. He said the central bank would continue to optimize and expand connectivity between the Chinese mainland and Hong Kong in areas such as stocks, bonds, wealth management and interest rate swaps. The annual net investment quota for the Southbound Bond Connect program is set to rise to 800 billion yuan ($118 billion) from 500 billion yuan.
Gold reserves rise
Central bank data showed that China’s gold reserves reached 75.4 million ounces at the end of June, an increase of 480,000 ounces from the previous month, marking the 20th consecutive month of purchases. The central bank stepped up purchases as international gold prices fell more than 10% in June.
Asia stocks fall despite strong Samsung profits
Asian stock markets slipped on Tuesday, with A-shares fluctuating as the Shanghai Composite Index fell below the 4,000-point mark. Stock markets in Japan and South Korea also fell, with technology shares facing sell-offs. Despite Samsung Electronics Co. Ltd. reporting a 19-fold year-on-year surge in profit, its shares plunged by as much as 10% intraday. Investors also expressed concerns over high valuations for artificial intelligence hardware, a potential slowdown in AI capital expenditure by tech giants and weaker-than-expected price increases for DRAM chips.
NEWS SUMMARY
Gao Shanwen, an influential former chief economist at SDIC Securities Co. Ltd., died of cancer on Tuesday. He was 55.
China’s humanoid robot output is expected to surpass 100,000 units this year.
The State Administration for Market Regulation released a half-year report on combating excessive competition, noting that seven major e-commerce platforms were fined a total of nearly 3.6 billion yuan.
AI server manufacturer Inspur Electronic Information Industry Co. Ltd. forecast a net profit of up to 3.1 billion yuan for the first half of 2026, up 288% year-on-year.
Accor SA, Europe’s largest hotel group, announced plans to double its number of hotels in the Greater China region over the next five years and rebrand the iconic Peace Hotel in Shanghai.
Taiwanese memory manufacturer Adata Technology Co. Ltd. warned that memory prices are expected to rise by 20% to 30% in the third quarter of 2026, while flash memory prices will increase by 35% to 40%.
Contact editor Kelsey Cheng (kelseycheng@caixin.com)
