Shanghai Composite Index

China's Sci-Tech Innovation Bonds Provide Alternative Financing Option for LGFVs, Fitch Says

China's easing of the sci-tech innovation bond framework has provided a policy-anchored financing option for local government financing vehicles (LGFVs) and other public policy entities, Fitch Ratings said.Qualified issuers can enter the market either by channeling use of proceeds mainly to science and tech activities or by applying for classification as recognized science and tech companies, Fitch said.However, the rating agency believes the bonds have not yet anchored sectoral transformation, with a small number of LGFVs qualifying so far.Only 101 LGFVs and other public policy entities had sci-tech innovation bond issuances between May and December 2025, comprising less than 3% of the 4,000 entities tracked by Fitch.Issuers in more developed regions accounted for a majority of the issuance, Fitch said.The entities issued about 136 billion yuan of the bonds, although proceeds were channeled mainly for legacy science and tech investment refinancing and debt repayment instead of new investment financing, Fitch aid.The rating agency expects an increase in refinancing risk if projects supported by these bonds do not yield ample returns.

Asia Week Ahead: Inflation; Manufacturing Activity; and Trade

Asia's macro calendar will be busy in the week ahead, with investors set to track a broad mix of PMI readings, inflation prints, trade data and industrial activity across the region.The week starts with retail sales figures from Japan, alongside producer inflation figures from Singapore and Malaysia.Attention turns Tuesday to China's official PMI data and the Reserve Bank of Australia's meeting minutes.Activity indicators will remain in focus Wednesday as S&P Global releases manufacturing PMI reports for major Asian economies, while Thursday will bring inflation data from South Korea and trade balance from Australia.Friday rounds out the week with a heavy Vietnam data slate, alongside services and composite PMI reports from several major economies.Here's what to watch in the week ahead.MONDAY, June 29The week kicked off with the release of Japan's retail sales data for May, as well as producer inflation data from Malaysia and Singapore.Japan's retail sales expanded 5.3% year over year to 13.45 trillion yen during May, beating the consensus forecast of 3.1% growth tracked by Investing.com, and compared with a 2.8% increase recorded in the previous month.Meanwhile, Singapore's Manufactured Products Price Index jumped 30.8% year on year in May 2026, accelerating from the 27.5% annual growth recorded in April.The Domestic Supply Price Index climbed 34.2% from a year earlier, quickening from the 32.1% year-over-year expansion seen the previous month.Singapore also reported import and export prices for the month.Export prices increased 14.7% year over year in May, accelerating from a 13.3% growth in April, while import prices jumped 19.1% year over year, quickening from the 18.9% increase in the previous month.The Producer Price Index for local production in Malaysia rose 7.8% year over year in May, driven by a rise in all sectors, particularly by the mining industry.Elsewhere, consumer confidence in Taiwan rose to 65.05 in June from 62.08 in May, beating the 62.5 consensus forecast tracked by Trading Economics and marking the highest level since February.In contrast, consumer sentiment in the Philippines deteriorated sharply to -42 during the second quarter from -15.8 in the first three months of the year.Later Monday, India reports its monthly industrial and manufacturing production stats.TUESDAY, June 30Tuesday will be among the busiest days of macro releases with China's official manufacturing, non-manufacturing, and general purchasing managers' index (PMI) data taking the lead.Economists at ING expect China's manufacturing activity to edge up 0.1 point to 50.1, while non-manufacturing PMI is expected to slide back into contraction territory at 49.9. Importantly, the data readout will give economists the first look at whether a June rebound could be in the cards, ING said in a preview.In Japan, monthly industrial production and unemployment data would capture headlines. ING expects May's industrial output to slow to 1.4% year on year from the 2% growth recorded in the prior month, with unemployment to remain steady at 2.5%.Macao will also report unemployment data the same day, with Trading Economics expecting a slight tick upwards to 1.9% from 1.8% in April.Industrial production data from Thailand and South Korea will also feature Tuesday, alongside their retail sales stats.Markets will also follow the release of the Reserve Bank of Australia's meeting minutes for clues on whether the central bank will raise interest rates. In its most recent meeting, the RBA unanimously decided to leave the cash rate steady at 4.35% but opened the possibility of a rate hike to balance the risk between high inflation and slowing growth.Neighboring New Zealand will see the release of a report capturing business confidence for June.Elsewhere, the Philippines will release monthly trade and producer inflation figures.WEDNESDAY, July 1S&P Global's monthly PMI reports on manufacturing activity will be closely watched Wednesday.The reports will cover activity across India, Vietnam, Thailand, Taiwan, South Korea, Malaysia, Japan, Indonesia, China, Australia, and the Philippines.Markets will also await the Bank of Japan's sentiment index for the second quarter, with ING expecting the Tankan survey to show an increase amid strong chip demand and an improved situation in the Middle East.A monthly report covering consumer confidence in Japan will also be due.Indonesia's monthly inflation print will also be among the highlights Wednesday. Economists at ING expect June's consumer price index to edge up to 3.2% year on year from 3.1% in the month prior, reflecting the knock-on effect of elevated oil prices and depreciation of the local currency.Still, inflation is likely to remain within Bank Indonesia's target range, ING said.Indonesia will also report its trade balance the same day, with Trading Economists expecting a trade surplus of $4 billion, up from $90 million in April.South Korea will similarly report trade figures for June. ING said it expects strong chip demand to support exports, resulting in a trade surplus of $33 billion, up from $27 billion in May.THURSDAY, July 2South Korea's monthly inflation print will lead headlines Thursday.As with Indonesia, ING said it expects the knock-on effect of elevated oil prices to reflect more visibly in the June printout which could show inflation accelerating to 3.3% year on year from 3.1% in the prior month."The recent decline of global oil prices won't be reflected in domestic gasoline prices for another couple of months, while petrochemicals and related product prices are likely to remain sticky," ING said.Markets will be on the lookout for Australia's trade balance for May. Canberra is expected to report a trade surplus of A$2.2 billion for the month, up from A$1.79 billion in April, according to a Trading Economics consensus.Thailand will release a business confidence report for June, while Hong Kong will release its monthly retail sales stats.The Singapore Institute of Purchasing and Materials Management's manufacturing PMI report is also expected Thursday.FRIDAY, July 3Vietnam will feature prominently on Friday with a slew of macro data readouts, including inflation and GDP growth rate.The country's June consumer price index is expected to clock in at 6.5% year on year, accelerating from 5.6% in May, Trading Economics forecasted.Meanwhile, the economy is forecasted to have grown by 7.6% year on year during the second quarter, slowing from the 7.8% increase witnessed during the first three months of the year, according to Trading Economics.Other Vietnamese release include monthly retail sales, industrial production, and balance of trade figures.Singapore will similarly report its retail sales data on Friday, while New Zealand will see the release of a consumer confidence report.On the activity front, S&P Global will release composite and services PMI reports for India, China, Singapore, Japan, and Australia.

Fitch Expects More Selective State Support for Chinese Securities Firms

Fitch Ratings expects state shareholders to be more discerning in terms of support for Chinese securities firms, according to a Sunday release.State-driven sector consolidation and a structural shift in the economy drive greater selectivity in terms of shareholder support, Fitch said.Strategic relevance will factor in more into support consideration for securities firms rather than ownership alone, the rating agency said.Group resource integration, synergies, and shareholder and national policy goal endorsement will determine the firms that will be prioritized for state support, Fitch said.Tiering as a result of past consolidation anchors the goal of supporting two or three globally competitive securities firms, but also increases the gap between higher-tier and weaker firms, according to Fitch.The shift to greater capital market activity from debt-linked growth has also increased securities firms' strategic value to state shareholders, Fitch said.

Chinese Shares Rose as Industrial Profit Growth Accelerates; China Spacesat Rises 4%

Chinese equity markets climbed on Monday, fueled by data demonstrating an accelerated pace of profit growth across the country's major industrial enterprises during the first five months of the year.The Shanghai Composite Index, the main gauge of Chinese stocks, rose 1.2% to 4,073.90. The Shenzhen Component Index climbed 0.2% to 15,812.87.Profits of China's major industrial firms grew 18.8% year over year to 3.14 trillion yuan during the first five months of the year, according to data from the National Bureau of Statistics on Saturday.The year-to-date pace accelerated compared with the 18.2% expansion recorded in the previous four-month period, but missed the Trading Economics forecast for a 20% growth. In May alone, industrial profits jumped 21% year over year.Meanwhile, Xiong'an New Area has secured state approval to launch a national-level intellectual property protection hub.The center, green-lit by the State Intellectual Property Office, promises a "one-stop" service for rapid patent reviews and rights protection. The move is expected to slash average patent approval times by 70%.In company news, China Spacesat (SHA:600118) affiliate Shenzhen Aerospace Xinyuan Technology is planning a capital increase via a public listing process on a property rights exchange platform. Shares of the satellite manufacturer closed 4% higher Monday.

Correction: Xiong'an New Area Secures Approval for National IP Protection Hub

(Corrects a typo in the headline)Xiong'an New Area has secured state approval to launch a national-level intellectual property protection hub, according to a weekend news release.The center, greenlit by the State Intellectual Property Office, promises a "one-stop" service for rapid patent reviews and rights protection. The move is expected to slash average patent approval times by 70%.As preparations ramp up, officials say the center will anchor a comprehensive intellectual property system for the region. The initiative aims to drive industrial upgrades across southern Hebei and bolster Beijing-Tianjin-Hebei collaborative development.

Xiong'an New Area Greenlit Greenlights National Protection Hub

Xiong'an New Area has secured state approval to launch a national-level intellectual property protection hub, according to a weekend news release.The center, greenlit by the State Intellectual Property Office, promises a "one-stop" service for rapid patent reviews and rights protection. The move is expected to slash average patent approval times by 70%.As preparations ramp up, officials say the center will anchor a comprehensive intellectual property system for the region. The initiative aims to drive industrial upgrades across southern Hebei and bolster Beijing-Tianjin-Hebei collaborative development.

China Proposes Gold Import-Export Rule Changes

Chinese regulators proposed revising gold and gold product import-export regulations to streamline administration and facilitate trade, state media Xinhua News reported Sunday.The People's Bank of China, jointly with the General Administration of Customs, drafted amendments to update the framework.Key changes include removing provisions that require joint rules for individuals carrying gold across borders while maintaining customs oversight. The revisions formalize effective practices to improve convenience and strengthen pre-import supervision.

Market Chatter: Apple Seeks US Approval to Secure Memory Chips From China's CXMT

Apple Inc. is seeking the Trump administration's approval to purchase memory chips from Chinese chipmaker ChangXin Memory Technologies (CXMT), which was blacklisted by the Pentagon over suspected ties with the People's Liberation Army, the Financial Times reported Saturday, citing six people familiar with the matter.Although Apple is not currently barred from sourcing chips from companies like CXMT or Yangtze Memory Technologies Corp. (YMTC), both firms are on the Pentagon's Chinese Military Company blacklist, also known as the Section 1260H List, the report said.This list is a U.S. Defense Department blacklist of firms that are deemed to support China's military-civil fusion strategy.Apple Inc., CXMT, and YMTC did not immediately respond to' requests for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Chinese Shares Open Flat Amid Policy Signal Support, AI Skepticism

Chinese shares opened flat with a negative bias on Monday amid signals of policy support and growing skepticism on massive global spending on artificial intelligence.The Shanghai Composite Index, the main gauge of Chinese stocks, ticked down 0.58 of a point to 4,026.69. The Shenzhen Component Index inched down 0.43 of a point to 15,782.22.The People's Bank of China will increase the overnight reverse repurchase operation in its open market operations by the end of June, with the operation to adopt a fixed interest rate and quantity bidding. The new rate will be an addition to the central bank's regular seven-day reverse repo rate that has served as the main policy benchmark since 2024.The move is a major step toward aligning with U.S. policy rate structures, with analysts saying anything at 1.25% or below would amount to a de facto PBOC rate cut.Meanwhile, markets are demanding more tangible monetization for AI companies, as investors are questioning whether funneling vast amounts of capital into the industry can justify stretched valuations in an uncertain macro environment.

China's Industrial Profits Grow 18.8% in January-May Period

Profits of China's major industrial firms grew 18.8% year over year to 3.14 trillion yuan during the first five months of the year, according to data from the National Bureau of Statistics on Saturday.The year-to-date pace accelerated compared with the 18.2% expansion recorded in the previous four-month period, but missed the Trading Economics forecast for a 20% growth. In May alone, industrial profits jumped 21% year over year.From January to May, the mining industry achieved a total profit of 479.5 billion yuan, up 33.5% year over year, while the manufacturing industry's profit grew 20% to 2.33 trillion yuan.Meanwhile, the electricity, heat, gas and water production and supply industry recorded a total profit of 335.9 billion yuan, a decrease of 2.7% year over year.

Media Reports: Small Aircraft Hits Citic Tower, Beijing's Tallest Skyscraper

China's Central Bank Plans Overnight Reverse Repo in End-June

The People's Bank of China will increase the overnight reverse repurchase operation in its open market operations on June 29 and June 30.The operation will adopt a fixed interest rate and quantity bidding, according to a Thursday statement.The new rate will be an addition to the PBOC's regular seven-day reverse repo rate, currently at 1.4%, which has served as the main policy benchmark since 2024, Bloomberg reported.Standard Chartered's Becky Liu said the move is a major step toward aligning with U.S. policy rate structures, according to the report. She added that the overnight reverse repo rate is the figure to watch and anything at 1.25% or below would amount to a de facto PBOC rate cut.

Tech Caution Overcomes Asian Stock Markets

Asian stock markets fell back Friday on tech-sector gloom, after media reports that prominent US-based OpenAI may delay its IPO until next year, to better secure a $1 trillion valuation.Announcements by Apple (AAPL) that it will boost prices on iPads and MacBooks to offset higher memory- and storage-chip costs also damped sentiments.Hong Kong, Shanghai, and Tokyo finished in the red, as did most other regional exchanges, led by a 5.8% retreat in Seoul's KOSPI index.In Japan, the Nikkei 225 opened lower and declined thereafter, closing down 4.1%.The benchmark Nikkei 225 fell 3,005.46 to 69,360.88, although gaining issues outnumbered losers 114 to 108, as declines were somewhat concentrated in tech issues.Leading the upside was consumer products maker Kao, up 4.9%, while tech financier SoftBank slipped 12.5%.In economic news, Tokyo's consumer price index core (CPI-core) that strips out fresh food bills, rose 1.6% on year in June, up from 1.3% in May, but still below the Bank of Japan's 2% target.In Hong Kong, the Hang Seng Index opened lower and could not recover, closing down 1.8% as tech and property issues faltered.The broad gauge Hang Seng fell 405.05 to 22,671.86, as losing issues outnumbered gainers 72 to 20. The Hang Seng TECH Index lost 3.4% on the day, while the Mainland Properties Index fell 1.7%.Leading the upside was J&T Global Express, gaining 4.6%, while smartphone components maker Sunny Optical Technology declined 9.1%.On the mainland, the Shanghai Composite fell 2.3% to 4,027.26.On the other regional exchanges, the Taiwan TWSE declined 3.6%; the Australian ASX 200 rose 0.2%; the Singapore Straits Times Index fell 0.5%, and the Thai Set declined 1%. Trading floors in Mumbai were closed on holiday.The MSCI All Country Asia Pacific Index fell 2.6% on the day.

China's Current Account Surplus Reaches $184.3 Billion in Q1

China's current account registered a surplus of $184.3 billion in the first quarter of 2026, according to final data released by the State Administration of Foreign Exchange Friday.In Chinese yuan terms, the current account surplus stood at 1.284 trillion yuan.Of the total, a surplus of $247.5 billion was recorded under goods trade, a deficit of $59.6 billion under services trade, a deficit of $7.4 billion under primary income, and a surplus of $3.8 billion under secondary income.The capital and financial accounts recorded a deficit of $188.1 billion.

Securities Firms in Major Asia-Pacific Markets Display Strength Despite Volatility, Fitch Says

Rated securities firms in major Asia-Pacific markets show strength despite lingering equity market volatility, Fitch Ratings said in a recent release.Securities companies in Korea, Japan, Taiwan, and China display sufficient capital buffers, solid risk control frameworks, and adherence to strict regulatory oversight, the rating agency said.Net adjusted leverage has risen in the sector since 2025, reaching about 8x to 9x in Korea and Taiwan and 12x to 13x in Japan, due to asset expansion and stronger capital market activity, according to Fitch.Direct credit risk from margin financing and similar securities-backed lending will remain limited due to tight margin maintenance requirements and active collateral monitoring, the rating agency said.Investment books continue to account for the largest asset share for firms, making up 60% of assets in Korea, 40% to 50% in China, and 30% to 40% in Japan and Taiwan, Fitch said.

AI Allegations, Demand for AI Monetization Proof Spark China Tech Selloff; Hui Lyu Ecological Technology Down 10%

Chinese shares declined Friday as tech stocks came under fire amid allegations of Alibaba's (HKG:9988) illegal extraction of Claude's AI capabilities and investors balked at massive spending on artificial intelligence.The Shanghai Composite Index, the main gauge of Chinese stocks, fell 2.2% to 4,027.27. The Shenzhen Component Index plunged 3.4% to 15,782.22.Anthropic, the makers of the Claude artificial intelligence model, accused Alibaba of illegally scraping Claude AI data via 28.8 million exchanges from 25,000 fake accounts between April and June.Meanwhile, Gary Dugan of The Global CIO Office said markets are now demanding tangible monetization for AI companies, not just narratives, The South China Morning Post reported. He said the sell-off reflects growing skepticism over whether massive AI capital spending can justify stretched valuations in an uncertain macro environment.While investors still like AI, they are unwilling to pay one price that assumes everything-long-term growth, better margins, and market dominance-all at once. The market is pivoting to execution from concept, which is a healthy reset but will lead to greater performance dispersion among players.On the regulatory front, the People's Bank of China will increase the overnight reverse repurchase operation in its open market operations on June 29 and June 30. The operation will adopt a fixed interest rate and quantity bidding. Analysts see the move as a major step toward aligning with U.S. policy rate structures.The central bank also injected 500 billion yuan into the country's banking system via a one-year medium-term lending facility operation to stabilize banking system liquidity. The move will result in a net injection of 200 billion yuan after offsetting maturing funds of 300 billion yuan.In company news, Hui Lyu Ecological Technology (SHE:001267) 51%-owned Wuhan Junheng is injecting 110 million yuan into wholly-owned Hubei Junheng to shore up funding for the Ezhou optical module production base. Shares of the landscaping company closed 10% lower Thursday.

DeepSeek Looks to Double Staffing Count

DeepSeek is looking to double the size of all its departments and is hiring for technical and engineering roles, according to a job advertisement posted on its WeChat account Thursday.The hiring push comes as the AI startup is in the final stages of its 50-billion-yuan fundraising, Bloomberg reported separately the same day.

Market Chatter: China Oilseed Processors Await Australia Canola Imports on Hopes of Trade Deal

Chinese oilseed processors have inquired about Australian canola cargoes for delivery in the fourth quarter in anticipation of a trade deal that has blocked supplies, Bloomberg reported Thursday, citing traders who sought anonymity.China and Australia have suspended canola trading since 2020 due to sanitation concerns, but Cofco International restarted shipping on a trial basis in 2025, the report said.More oilseed crushers are seeking approval for Australian canola imports, the report said.Cofco did not immediately respond to a request for comment from.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Market Chatter: China Sells 5 Billion Euros Worth of Euro-Denominated Bonds

The Chinese Ministry of Finance sold a total of 5 billion euros worth of euro-denominated bonds, its largest-ever deal in the currency and the second since November 2025, Bloomberg News reported Thursday, citing a person with knowledge of the matter.The five-year, eight-year, and 12-year euro-denominated notes have spreads at 3, 12, and 22 basis points above the mid-swap rate, respectively, the report said.The offering attracted more than 29.8 billion euros in bids as of 12:30 pm London time, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

PBOC Boosts Liquidity Via 500-Billion-Yuan Medium-term Lending Facility Operation

The People's Bank of China on Thursday injected 500 billion yuan into the country's banking system via a one-year medium-term lending facility operation, state media Xinhua News reported the same day.The variable-rate, fixed-quantity tender aims to stabilize the banking system liquidity.The move will result in a net injection of 200 billion yuan after offsetting maturing funds of 300 billion yuan.