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A-shares fall amid escalating China-U.S. tension
China’s A-share market continued to fall Tuesday, with the Shanghai Composite Index closing down 0.62% after falling 0.19% the previous day. More than 3,600 stocks fell across the board Monday, though sectors like rare-earth permanent magnets, military, and semiconductors showed strength.
China’s exports beat expectations
China’s exports grew at a faster-than-expected pace in September, while imports also staged a strong rebound, suggesting some resilience in the world’s second-largest economy despite persistent global uncertainties.
Driver killed in Xiaomi EV crash
A fatal crash involving a Xiaomi SU7 electric sedan that caught fire has sent Xiaomi shares sharply lower, marking the third fire-related incident this year involving the tech giant’s debut vehicle. The 31-year-old driver died in the crash.
Caixin survey: China’s consumer and factory gate price drops seen narrowing
China’s key inflation gauges likely improved in September, largely due to a favorable comparison with a year earlier, according to a Caixin survey of economists. The average forecast for the consumer price index is a year-on-year drop of 0.2%, an improvement from a 0.4% decline in August. The producer price index is forecast to drop 2.4%, compared with a 2.9% decline.
Guangzhou Metro accepts foreign bank cards ahead of Canton Fair
Guangzhou’s subway system has started accepting foreign bank cards, a move to enhance payment convenience for international visitors just days before the city hosts the massive Canton Fair, which opens Oct. 15.
Two Chinese banks to offload billions in bad debt
Two Hong Kong-listed Chinese banks are moving to offload non-performing assets with a total claim value of nearly 90 billion yuan, highlighting a push by smaller lenders to clean up their balance sheets.
Agricultural Bank to take over nearly 200 branches of Jilin’s ailing rural lenders
State-owned Agricultural Bank of China Ltd. is taking over nearly 200 branches from troubled rural lenders in Jilin province, a key step to defuse risks in the northeastern region’s banking system.
Wahaha power struggle takes new turn
A power struggle at Hangzhou Wahaha Group Co. Ltd. has taken a new turn, after former Chairwoman Zong Fuli stepped down from her leadership roles at the beverage giant last month. Two key executives at her Hongsheng Group Co. Ltd. have been sidelined, Caixin has learned from sources with knowledge of the matter. Yan Xuefeng, production center director at Hongsheng, and Zhu Lidan, the company’s legal representative, have had their positions listed as “pending” on its internal system. Controlled by Zong, Hongsheng handles production and sales channel operations for Wahaha.
News Summary
Domestic
Hong Kong’s Hang Seng Index continued to drop Tuesday as escalating U.S.-China tensions rattled investor confidence.
The People’s Bank of China and the Monetary Authority of Macao have signed a memorandum of understanding on interconnectivity for cross-border payments.
Guangzhou is piloting a housing voucher program for buyers of stalled residential projects, which could allow for exchanges into larger properties amid falling home prices.
Companies
Ant Group Co. Ltd.’s planned acquisition of a controlling stake in a Hong Kong-listed brokerage has won approval from the city’s securities regulator, but the deal remains in limbo as it awaits a crucial review from Beijing.
Chairman of property giant China Vanke Co. Ltd. has resigned after being out of contact for about a month.
Chinese tech firm Wingtech Technology Co. Ltd. said it will sue the Dutch government after the Netherlands froze the operations of its semiconductor subsidiary Nexperia and stripped the company of control.
OpenAI and Broadcom announced a strategic partnership to develop custom data center chips, with a planned release in 2026.
Chinese aircraft-maker EHang Holdings Ltd. released a new long-range flying taxi.
International
Israel and Hamas have begun exchanging hostages and prisoners in a critical first step toward a cease-fire in Gaza.
A local government in Canada has called for the cancellation of tariffs on Chinese-made electric vehicles.
