Shenzhen Composite Index

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.

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.

China Shares Slide at Market Open on Tech Selloff

Chinese shares opened lower on Friday as tech stocks took a hit after U.S. artificial intelligence company Anthropic accused Chinese e-commerce giant Alibaba Group (HKG:9988) of extracting the capabilities of its Claude AI model.The Shanghai Composite Index, the main gauge of Chinese stocks, opened 0.5% lower at 4,098.69. The Shenzhen Component Index declined 0.8% to 16,211.41.Anthropic alleged that between April 22 and June 5, Alibaba conducted a distillation effort, in which a less capable model is trained via the outputs of a stronger one, using nearly 25,000 fraudulent accounts to generate nearly 29 million exchanges with Claude.The move furthered China's ability to reach the advanced capabilities of Claude's AI model, Mythos ⁠Preview, Anthropic claimed.However, Nomura analyst Jialong Shi told The Wall Street Journal: "Given this is not the first distillation allegation targeting Chinese firms, I expect the reputational damage ... to be small."

Market Chatter: India Set to Approve $370 Million Investment From Horse Powertrain

India is expected to greenlight an investment of approximately $370 million from Horse Powertrain, Bloomberg News reported Thursday, citing insiders.The potential agreement would enable the Geely Automobile-backed (HKG:0175) hybrid-engine venture to invest in the Indian manufacturing operations of its other major shareholder, French automobile maker Renault. The investment includes the construction of domestic advanced hybrid powertrains and engines, the sources told the media outlet.Renault is expected to kick off a Horse-powered Duster sport utility vehicle in the country later in the year, the report said.Horse, Geely and India's commerce department did not immediately respond to' request 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.)

China's Limited Market Data Delays Upgrades to Brokers' Risk Models, S&P Says

China's limited market history could slow down improvements in brokerage firms' risk models amid rising risks, S&P Global Ratings said Thursday.Shorter historical data compared to other developed markets could limit the assessment of a greater range of extreme downturns, S&P said.The rating agency still expects risk modeling to grow more sophisticated as major brokers take the lead in these efforts.However, a thorough assessment should be applied to test the models' effectiveness, S&P said.The rating agency also suggests market-neutral frameworks to absorb directional exposure.