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Market Chatter: Chinese Export Prices Rise in April

Chinese export prices rose 5% in April, their sharpest increase since April 2023, Bloomberg reported Friday, citing raw data from the General Administration of Customs released Thursday.Prices of petroleum exports were among those that gained the highest, rising 22% year over year, while fertilizers, dependent on natural gas, grew 17%, the report said.Electronics export prices jumped by more than 20%, the report said.The increase reflects spillover effects from the Iran war, according to the news agency.(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.)

Shanghai Composite^SZSE
Asia

China Hits at EU for Justifying Trade Quotas

China slammed the European Union for justifying trade imbalances after the 27-nation bloc said it would use import quotas and tariffs to hedge against unfair competition, the Foreign Ministry said Thursday.Spokesperson Mao Ning responded to EU Industry Commissioner Stéphane Séjourné's statement to the Financial Times that the bloc would use quotas and tariffs more systematically due to threats of Chinese competition in the chemicals, metals, and clean technology sectors."China has never deliberately pursued a trade surplus with Europe," Mao said during a press briefing that day, adding that China has never forced any nation to buy or sell to the nation.A conclusion of trade imbalance would "naturally" come up "if one only looks at trade in goods and ignores trade in services and investment returns," Mao said.The EU's quotas are seen to protect the European market from cheap Chinese products and exports, the Financial Times reported separately.Beijing will take needed measures to protect its rights, Mao said.

Shanghai Composite^SZSE
Asia

China in Talks with EU on Steel Trade Duty-Free Quotas, Commerce Ministry Says

The Chinese government is negotiating with the European Union within the World Trade Organization's framework regarding limits on duty-free steel imports, Commerce Ministry Spokesperson He Yadong said in a press briefing Thursday.The bloc's measures constitute trade protectionism, could "severely" impact China-Europe steel trade, and hurt stable global supply chains, He said in the briefing.

Shanghai Composite^SZSE
Asia

Market Chatter: US, Iran Reach Tentative 60-Day Ceasefire Extension

The U.S. and Iran have tentatively agreed to extend a ceasefire for two months while initiating new negotiations over Tehran's nuclear program, fueling optimism that the ongoing three-month conflict may soon end, Bloomberg News reported on Thursday, citing a source familiar with the discussions.The anonymous source confirmed a prior Axios report, though President Donald Trump has not yet signed off on the terms, the newswire said.While both sides have previously celebrated progress and Trump has often claimed a deal was imminent, the impasse has repeatedly persisted, the publication said.Vice President JD Vance told reporters that the two nations are exchanging proposals on specific language regarding Iran's nuclear capabilities, and noted that Iran appears to be engaging in good faith, with tangible progress underway, 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.)

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Toyota Motor Sales Fall Again in April Amid Challenging China, Middle East Environments
US Markets

Toyota Motor Sales Fall Again in April Amid Challenging China, Middle East Environments

Toyota Motor's (TYO:7203) sales fell for a third straight month in April as the carmaker saw sharp drops in China and the Middle East.Worldwide sales, including those of its luxury brand Lexus, slipped 3.1% year over year to 849,306 units.Toyota also attributed the fall to the impact of the changeover to its new RAV4.The decline in global sales was softer compared with the 7.3% fall in March and 3.4% decline in February, according to the Japanese car giant.Sales from outside Japan fell 7.5% year over year to 699,382 units.The fall was led by sales in China, Hong Kong and Macau, which declined 25% to 106,479 units during the month amid challenges in the market environment.Middle East sales plunged 34% to 31,360 units.The fall comes as Toyota has been able to withstand the impact of the conflict in the region despite trade disruptions along the Strait of Hormuz, the Japan Times reported separately.In the U.S., Toyota's largest market, sales slipped 4.6% to 222,378 vehicles despite high demand for hybrid electric vehicles and other models. The decline came after the carmaker saw pre-tariff-driven demand.Japanese sales increased for the first time in four months by 24% to 149,924 units, following a rebound in registrations after postponements anticipating the discontinuation of the country's environmental performance-based vehicle tax.Production jumped 2% to 831,971 units. Overseas production increased 3.8% to 567,578 units.Chinese production rose 4% to 118,451 units despite market environment challenges.Total exports fell for a second consecutive month in April, sliding 7% to 166,972 units. Middle East exports slumped 92% to 2,418 units.The carmaker's suppliers earlier said they are seeing more shortages due to the conflict in Iran, the Japan Times said.

Shanghai Composite^SZSETYO:7203
Asia

Market Chatter: ByteDance to Build Own CPUs to Help with AI Launch, Sources Say

ByteDance is building its own central processing units to help support growing artificial intelligence hardware needs, Reuters reported Thursday, citing three people familiar with the matter.The move by TikTok's owner will help the company cope with surging chip prices and supply shortages, the newswire said.ByteDance's action signifies a shift toward "inference," where AI models perform agentic or autonomous tasks that demand more power from CPUs, the report said.The company will deploy its proprietary CPU in its own servers and data centers as it looks to roll out its Coze agent-based platform, the report said, citing one of the sources.(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.)

Shanghai Composite^SZSE
Asia

China to Help SMEs Collaborate with Large Companies Through Campaign

The Chinese government will facilitate the collaboration of large businesses and small and medium-sized enterprises through a matchmaking program, Xinhua reported Wednesday.The "100 events for 10,000 enterprises" event will allow SMEs to integrate into larger innovation chains, the report said.China will pool its resources from companies, research institutions, and financial organizations to build a platform for businesses to strike cooperation deals, according to the report.

Shanghai Composite^SZSE
Asia

Market Chatter: Chinese Companies to Invest 940 Million Euros in AI, Cars in Serbia

Chinese companies will invest an additional 940 million euros into Serbia, beginning in July, Bloomberg reported Wednesday, citing President Aleksandar Vucic.Companies with investment agreements include Minth Group (HKG:0425), Shandong Linglong Tyre (SHA:601966), Changzhou Xingyu Automotive Lighting Systems (SHA:601799), Yusei Holdings (HKG:0096), Shanghai AgiBot Innovation Technology, Weichai Power (HKG:2338, SHE:000338), Zhejiang EV-Tech, Jiangsu Reliance Energy, and China Construction Fourth Engineering Division, the report said.The investments will go to auto parts production, humanoids, energy, and artificial intelligence projects, according to the report.(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.)

Shanghai Composite^SZSEHKG:0096HKG:0425HKG:2338SHA:601799SHA:601966SHE:000338
Treasury

Market Chatter: China to Issue 6 Billion Yuan Inaugural Green Sovereign Bonds in Hong Kong

The Chinese government is issuing as much as 6 billion yuan in green sovereign bonds in Hong Kong on Thursday, Bloomberg reported the same day, citing a person familiar with the matter.China's finance ministry set the guidance for the three-year bonds at a yield of 1.85% and the five-year bonds at 2%, the report said, citing a source.The renminbi-denominated debt will be the Chinese government's first green bond issuance in Hong Kong after pledging in March to expand international ESG funding, Bloomberg 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.)

Shanghai Composite^SZSE
Asia

Market Chatter: ByteDance Weighs Massive $70 Billion 2026 Capex Surge

ByteDance will more than double its capital expenditure from the previous year in a bid to challenge its U.S. rivals, Bloomberg reported Thursday, citing people familiar with the matter.TikTok's owner is looking to spend as much as $70 billion in 2026 to build data centers and other artificial intelligence infrastructure, Bloomberg said.It plans to increase spending to $100 billion in 2027, should economic conditions be favorable, the report said.The privately held parent company of short-video global phenomenon TikTok and domestic chatbot Doubao will underwrite the expense through its $50 billion of profit in 2025, the report said, citing the sources.(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.)

Shanghai Composite^SZSE
Asia

Chinese Stocks Close Muted on JPMorgan Survey, Fresh Middle East Airstrikes

Chinese equities closed flat as sentiment was slightly lifted by a JPMorgan report on Chinese stocks' growing attractiveness, while uncertainty lingers over the negotiations between U.S. and Iran following fresh airstrikes in the Gulf region.The Shanghai Composite Index rose marginally to finish Thursday's trade at 4,098.64. The Shenzhen Component Index inched 0.9%, or 125.42 points, to 15,861.89.JPMorgan Chase survey showed that more international investors are considering investing in Chinese equities, particularly technology stocks, with the surveyed rising to 57% from 51% a year earlier.Kwang Kam Shing, JPMorgan's chairwoman for North Asia, said foreign investors are being attracted to Chinese and Hong Kong equities due to their low valuations and the tech firms' robust research and development capabilities, South China Morning Post reported.Meanwhile, investor sentiment further weakened after the U.S. launched new airstrikes against a military site in Iran and shot down four drones, while Tehran retaliated by striking a U.S. air base. The attacks threaten the ongoing talks between both sides, which could have ended the war in the Middle East.In corporate news, CIG Shanghai's (HKG:6166, SHA:603083) Shanghai shares rose 7.7% as it considers raising HK$1.98 billion through a stock offering.Shenzhen Tianyuan DIC Information Technology (SHE:300047) climbed 6.6% after Chair Chen You was released from residential detention.China Resources Microelectronics (SHA:688396) jumped 5.8% amid plans to invest 193.9 million yuan into a partnership fund.

Shanghai Composite^SZSEHKG:6166SHA:603083SHA:688396SHE:300047
Asia

Market Chatter: JPMorgan Says More International Investors Want to Invest in Chinese Stocks

Chinese equities continue to attract more foreign investors due to rising technological advancements and the stocks' low valuations, the South China Morning Post reported Thursday, citing JPMorgan Chase.A survey from the U.S.-based bank showed that the number of investors considering investing in China rose to 57% from 51% in the same period a year earlier, according to the media outlet.Global investors are looking into stocks in the technology space, including artificial intelligence, electric vehicles, renewable energy, robotics and biotechnology, due to their robust research and development capabilities, as well as their production costs, the report said.Kwang Kam Shing, JPMorgan's chairwoman for North Asia, said foreign investment in China and Hong Kong stayed at a historical low, but international investors are considering their valuation more attractive than their counterparts, according to the SCMP.(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.)

Hang SengShanghai Composite^SZSE
Asia

Market Chatter: China Approves 15 Domestic Innovative Drugs

Domestic biopharmaceutical developers captured nearly 80% of China's recent innovative drug clearances, marking a major milestone as local pipelines outpace imports.Fifteen of the 19 innovative drugs cleared by the National Medical Products Administration as of May 21 came from domestic companies, The South China Morning Post reported Wednesday.The regulator has overhauled its approval process specifically to fast-track home-grown innovative drugs to market, according to the report.Among those approved was BeOne Medicines' (SHA:688235, HKG:6160) sonrotoclax, used for treating adult blood cancers, the SCMP wrote.(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.)

Shanghai Composite^SZSEHKG:6160SHA:688235
Asia

China's Transport Sector Logs 2% Growth in January-April

China recorded 23.21 billion cross-regional passenger trips from January to April, up 2.1% from last year, state media reported Wednesday.Road passenger traffic rose 1.7%, while waterway trips climbed 7.4%.Commercial cargo handling went up 3.6% to 18.2 billion tonnes. Port cargo throughput rose 3.1% to 5.9 billion tonnes, with container throughput rising 7.2% to 120 million twenty-foot equivalent units.Fixed-asset investment in the transport sector exceeded 894.4 billion yuan during the period.

Shanghai Composite^SZSE
Asia

Market Chatter: Nvidia CEO Joins Tsinghua University Board

Nvidia's Jensen Huang has agreed to join Tsinghua University's advisory board, chaired by Apple's Tim Cook, Reuters reported Wednesday.The move comes amid ongoing U.S. restrictions on Nvidia's advanced artificial intelligence chip exports to China, according to the report.Tsinghua's 65-member board already includes prominent tech and finance leaders Elon Musk, Michael Dell, Satya Nadella, Mark Zuckerberg, Jamie Dimon and Larry Fink, Reuters wrote.(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.)

Shanghai Composite^SZSE
Asia

PDD's Q1 Revenue Misses Expectations

Nasdaq-listed PDD Holdings' first-quarter revenue missed expectations.The parent of online retailer Temu posted total revenues of 106.2 billion yuan for the first quarter, up 11% from 95.7 billion yuan a year earlier, according to a Wednesday press release from the company.Analysts predicted revenue worth about 109 billion yuan on average, based on data compiled by Bloomberg News, the media outlet reported.Operating profit jumped 22% year on year to 19.6 billion yuan from 16.1 billion yuan, while the attributable net income dropped 15% to 12.5 billion yuan from 14.7 billion yuan in the previous year."As we head into the next decade of our journey, supply chain investments will be our core strategic priority," PDD's co-chairman and co-chief executive officer, Jiazhen Zhao, said.

Shanghai Composite^SZSE
Asia

Market Chatter: ByteDance to Offer Stock Options at AI Division to Retain Talent

ByteDance will offer low-priced stock options linked to its Seed AI division in a bid to retain talent, the Financial Times reported Tuesday, citing four people with knowledge of the matter.The stock options will expose staff to the AI division without diluting the TikTok owner's other business segments, the FT said.The move comes as tech rivals including Tencent (HKG:0700) have begun poaching ByteDance's researchers, according to the report.Seed has one of the largest concentrations of top AI talent in China, according to the newspaper.(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.)

Shanghai Composite^SZSEHKG:0700
Asia

China Top Diplomat Calls on UN to Protect Multilateralism

Chinese Foreign Minister Wang Yi called on the United Nations to protect multilateralism and uphold the U.N. Charter during a meeting of the Security Council Tuesday."The international order established by the Charter has not been effectively maintained, and the basic norms of international relations embodied in the Charter have not been earnestly observed," Wang said in his speech.The remarks are seen as a swipe against the U.S. but stopped short of mentioning the U.S. or President Donald Trump explicitly, the South China Morning Post reported.Wang also called on the U.S. and Iran "to meet each other halfway so that peace can return to the Middle East as early as possible."

Shanghai Composite^SZSE
Asia

Market Chatter: 'Business as Usual' for China Drugmakers Despite Scrutiny of Cross-Border Tech Deals, JW Therapeutics CEO Says

The Chinese pharmaceutical sector remains unaffected by Beijing's restrictions on cross-border deals involving sensitive technology, Reuters reported Tuesday, citing JW (Cayman) Therapeutics (HKG:2126) CEO Leo Tian."For us, everything is business as ​usual. Our cross-border collaborations, especially in CGT (cell and gene therapies), are particularly ⁠dependent on international cooperation," Reuters quoted Tian as saying.JW is "actively seeking cooperation" with companies outside China for assets in its pipeline, the report said, citing Tian.Global pharmaceutical companies have been ramping up their search for China‑developed experimental drugs in a bid to cut costs before their patents expire, Reuters said.Industry analysts have forecast drug licensing deals to rise to a record in 2026, 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.)

Shanghai Composite^SZSEHKG:2126
Asia

Market Chatter: Foreign-Branded Mobile Phone Shipments in China Rise 1.8% in April

Foreign-branded mobile phone shipments in China grew 1.8% year over year in April to about 3.6 million units, Reuters reported Tuesday, citing its own calculations from data released by the China ​Academy of Information ​and Communications Technology.Overall phone shipments in China jumped 2.8% year over year to 25.7 million units, 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.)

Shanghai Composite^SZSE

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