HOT TOPICS
China criticizes latest U.S. chip export controls
China's Ministry of Commerce stated that the U.S. is abusing export controls under the guise of national security to close so-called regulatory loopholes. This severely harms the legitimate rights of Chinese companies, disrupts international trade order and destabilizes the global semiconductor supply chain, the ministry said. The response came after the U.S. Department of Commerce issued a guidance that would close a loophole allowing advanced AI chip exports to Chinese firms abroad.
Summer power load to exceed 1.3 billion kilowatts
The State Grid estimates that the maximum electricity load this summer will surpass 1.3 billion kilowatts, an increase of about 6% year-on-year. The El Nino phenomenon has brought forward the summer-peak power usage, coinciding with a reshaped coal supply and demand landscape, bringing structural changes to the domestic power and coal markets.
Land market shows structural divergence
Real-estate companies are prioritizing certainty in their land acquisitions, leading to structural divergence in the land market. Bidding in core areas of key cities remains competitive, with an average premium rate of 36% across 12 land parcels auctioned from April 1 to May 28. However, overall land acquisition volume continues to shrink, and parcels in non-core areas remain largely ignored.
WeChat partners with smartphone makers on AI
Tencent's WeChat is collaborating with major smartphone manufacturers, including Huawei, Honor, Xiaomi, Oppo and Vivo, to launch an agent-to-agent assistant feature. The function allows users to initiate WeChat audio and video calls or send messages via their phone’s native voice assistant.
NEWS SUMMARY
Domestic
The People’s Bank of China will conduct 500 billion yuan ($73.8 billion) in outright reverse repurchase operations.
Online brokerage Futu Holdings will suspend the buying and opening of positions for all trading products in accounts on the Chinese mainland starting June 12, while closing positions will remain unaffected.
The Ministry of Industry and Information Technology pledged to strengthen the cultivation of 6G-related industries, including new terminals, chips, operating systems and commercial aerospace.
The debt ratio of county-level local government financing vehicles has fallen below that of city-level counterparts over the past three years of debt resolution efforts.
The Shenzhen Stock Exchange added WeRide and Pony.ai to the list of eligible securities for the Hong Kong Stock Connect program.
International
European companies’ business confidence in China has rebounded for the first time in five years, though investment willingness remains affected by changing business models, according to the European Union Chamber of Commerce in China.
China’s foreign ministry criticized the European Union’s consideration of a new trade-restriction tool against China as contrary to economic laws and detrimental to all parties.
Contact editor Kelsey Cheng (kelseycheng@caixin.com)
