^SZSE

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.)

Market Chatter: China Stockpiles 200 Million Metric Tons of Coal Ahead of Summer Heat Wave

China has amassed over 30 days of coal reserves ahead of an expected El Niño-driven summer heat wave and power crunch, Nikkei Asia reported Wednesday.Peak electricity demand is forecast to rise about 5% year on year, equivalent to 90 gigawatts, or the entire power needs of Henan province, according to the report.As of April, power plants held roughly 200 million metric tons of coal, enough for at least 30 days of supply, Nikkei Asia wrote.Thermal coal still powers over 60% of China's grid, 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.)

International19d ago

China's Outbound Direct Investment Up 4% in January-April

China's outbound direct investment rose 3.9% year over year to 429.4 billion yuan in the first four months of 2026, according to data released Tuesday by the Ministry of Commerce and the State Administration of Foreign Exchange.Domestic investors poured 315.7 billion yuan into 5,231 overseas companies across 142 countries and regions, though that figure decreased 14% from 2025.China's actual use of foreign direct investment fell 10% to 287.7 billion yuan.Despite the decline in investment, 20,113 new foreign-invested firms were established, up 6.8%.

Market Chatter: China to Expand Travel Restrictions to Top AI Professionals

Chinese authorities will now require government approval for top artificial intelligence professionals in private companies to travel abroad, Bloomberg reported Tuesday, citing people familiar with the matter.The curbs signal increasing Chinese intervention to safeguard its technology as it competes with the U.S. and to prevent brain drain, the report said.Government agencies have imposed restrictions on people involved in advanced AI work, as they are considered strategically important to the country, the report said.Those told they will be subject to travel restrictions span from startup founders and researchers to executives, Bloomberg said, citing the people.Chinese restrictions on overseas travel for its top talent are not new. The country has, for years, controlled travel for top college researchers, nuclear scientists, and executives at state-owned firms, 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.)

International19d ago

China's Online Retail Rises 6.6% in First January-April

China's online retail sales of goods and services went up 6.6% year over year in the first four months of 2026, the Ministry of Commerce said Tuesday.Online goods sales contributed 72% to total consumer retail growth.Agricultural product e-commerce rose 12%, while metal products soared 35%.Online sales in tourism increased 33% and catering climbed 20%.

Shanghai Composite^SZSEHKG:2208SHE:001896SHE:002202

China Stocks Drop Amid Doubt Over US-Iran Deal

Chinese equities closed with losses as sentiment was dampened by uncertainties surrounding the potential truce between the U.S. and Iran that could end the war, shadowing the positive industrial data.The Shanghai Composite Index lost 1.3%, or 51.65 points, to close Wednesday's trade at 4,093.73. The Shenzhen Component Index slipped 0.9%, or 139.69 points, to 15,736.47.Iran expressed doubt over negotiations being made with the U.S. to end the war, accusing the U.S. military of violating the ceasefire by attacking the Iranian province of Hormozgan. Iranian politician Abbas Moghtadaei's comment was made after Parliament Speaker Mohammad Bagher Ghalibaf returned from Qatar for the talks that could lead to a war-ending deal with the U.S.Meanwhile, the total profits of China's major industrial enterprises between January and April jumped 18% year on year to 2.436 trillion yuan, faster than the 15.5% growth in the previous month, according to data from the National Bureau of Statistics.Henan Yuneng (SHE:001896) dropped 4.9% after receiving a warning from the China Securities Regulatory Commission's Henan Bureau for breaches in disclosure.Goldwind Science & Technology's (SHE:002202, HKG:2208) Shenzhen shares fell 3.7% amid plans to repurchase part of its shares worth between 300 million yuan and 500 million yuan.

Shanghai Composite^SZSEHKG:0175HKG:1211HKG:2015HKG:9863SHE:002594

Chinese EV Sales Fall 6% in April, Jefferies Says

Chinese electric vehicle sales fell 6% year over year in April, contributing to weaker growth worldwide, Jefferies said in a note Wednesday.Plug-in hybrid EV sales plunged 24% year over year, while that of battery-operated EVs jumped 4% year over year.In the battery EV segment, Li Auto's (HKG:2015) market share increased 4.1% while that of Zhejiang Leapmotor (HKG:9863) jumped 2.9%.BYD's (HKG:1211, SHE:002594) market share fell 4.5% while that of Geely (HKG:0175) slid 3.9% year over year.Electric vehicle penetration surged 830 basis points year over year to 61%.EV sales across Europe, the U.S., and China slipped 0.5% year over year. Market share rose 2.5 percentage points to 33.1%, impacted by a 19% slide in Chinese market share.

Market Chatter: China Drops Medium-Term Loan Rate to Record Low to Aid Economy

The People's Bank of China (PBOC) allowed its one-year Medium-Term Lending Facility (MLF) rate to drop to a record low of 1.45% in May from 1.5% in April, according to details from recent banking auctions, Bloomberg reported Tuesday.A number of commercial banks tapped the central bank at this historically low rate, signaling that Beijing is stepping up efforts to keep a less buoyant economy afloat, the report said.The 5-basis-point drop follows an identical reduction to the MLF rate earlier in January, Bloomberg said.It remains unclear how much of the 600 billion yuan in MLF loans issued in May was priced at the new 1.45% low, the news outlet said.China's central bank halted the publication of uniform MLF data since March 2025 following a revision of its pricing rules. Under the restructured framework, individual lenders are instead required to bid for and pay varying rates based on institutional market demand.(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: US to Seek Comments, Start Process for Board of Trade with China

The U.S. government will issue a notice in the Federal Register to begin the process of setting up a Board of Trade with China that will help manage bilateral economic relations, Bloomberg News reported Tuesday, citing Trade Ambassador Jamieson Greer."We'll be putting out a Federal Register notice shortly," Bloomberg quoted Greer as saying.The notice will seek public comments regarding the mechanism, the report said.Both countries pledged to set up a Board of Trade and a separate Board of Investment during President Donald Trump's visit early in May, according to Bloomberg.The details regarding the boards, including their coverage, remain unclear, 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.)

Market Chatter: China Delays Airbus Approvals as COMAC Certification Stalls in Europe

Beijing is delaying Airbus jet delivery approvals, signaling frustration with European regulators dragging their feet on certifying China's homegrown COMAC aircraft, Reuters reported Tuesday.Sources said the Civil Aviation Administration of China withheld final import and service approvals for Airbus jets for several months, 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.)

US Markets19d ago

Tech Goods Lift Chinese Industrial Profits to Record High in April

Chinese industrial profits jumped 24.7% year over year in April, rebounding to another record high during the month, led by technology-related goods, according to data from the National Bureau of Statistics released Wednesday.The figure rose to a 52-month high in April, according to a note by ING analyst Lynn Song released the same day.Year-to-date industrial profit increased 18.2% to 2.436 trillion yuan, rising from the 15.5% seen in the January-March period, the bureau said.The January-April figure was the highest since March 2022, according to ING.Signs point toward a sector-driven industrial profit recovery rather than a broad-based one, the Dutch bank said in its note.Industrial profits in the computers, communications, and electronic equipment segment surged 108% to 316.5 billion yuan."The leading role of new growth drivers such as equipment manufacturing and high-tech manufacturing was evident," NBS statistician Yu Weining said in a note accompanying the release."Growth is mainly driven by upstream price increases and AI," Reuters reported separately Wednesday, citing Economist Intelligence Unit senior economist Tianchen Xu.Profits in the mining industry grew 26% to 361.8 billion yuan, while that of the manufacturing sector jumped 20% to 1.802 trillion yuan, the NBS said.The utilities sector saw profit slip 1.9% to 272.0 billion yuan, while electrical machinery and equipment manufacturing industrial profits slid 11% to 150.7 billion yuan."Downstream sectors still face significant profit pressure due to rising upstream costs and intensified 'involution'," Reuters quoted Xu as saying.Overall operating revenue increased 5.2% to 4.489 trillion yuan, while operating costs jumped 4.5% to 3.813 trillion yuan, with the rate of increase unchanged from the first three months of 2026, ING said.Growth in utilities costs accelerated to 0.6% in the January-April period from a decline of 0.2% in the January-March period.Should energy prices stay high, they could impact profit growth, ING said.China faces headwinds amid rising component costs worsened by the crisis in the Middle East, according to a separate Reuters report Wednesday.Meanwhile, industrial profit data could signify uneven economic recovery in China as the economy lost momentum at the start of the second quarter, Reuters said.Industrial production, for instance, slowed to 4.1% in April, a 33-month low, from a 5.7% growth in March, while retail sales reported a sluggish 0.2% rise.

Market Chatter: ByteDance Taps Qualcomm in AI Chip Deal

ByteDance tapped Qualcomm for the supply of artificial intelligence data center chips, Reuters reported Tuesday.The TikTok owner will buy millions of Qualcomm's custom AI-focused application-specific integrated circuits, making it one of the first major customers for the chip designer's AI-focused silicon, according to the report.The move helps ByteDance turn an in-house design into production-ready semiconductors, Reuters wrote. The deal could sidestep U.S. restrictions, as long as the chips fall within legal computing thresholds.(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.)

European Business Confidence in China Shows Signs of Recovery

European business confidence in China may be nearing an inflection point after years of decline, according to a European Chamber survey released Wednesday.The survey found that 68% of respondents said doing business in China got harder over the past year, down five percentage points. Those reporting more politicization fell five percentage points to 47%. Optimism on two-year profitability rose five percentage points to 17%.Still, serious challenges remain, including China's economic slowdown and persistent supply-demand imbalances. About 32% of respondents reported being impacted by export controls and 39% see the enforcement of intellectual property rights laws and regulations as inadequate.European Chamber President Jens Eskelund said despite the "signs of an uptick" in business confidence, margin pressure stemming from persistent low domestic demand relative to supply growth "remains a core issue."

International20d ago

China's Industrial Profits Up 18% in January-April Period

The total profits of China's major industrial enterprises in the first four months of 2026 went up 18% year on year to 2.436 trillion yuan, faster than the 15.5% growth in the previous month, according to Wednesday data from the National Bureau of Statistics.Mining industry profits rose 26% to 361.8 billion yuan, while that of the manufacturing industry climbed 20% to 1.802 trillion yuan.The utilities industry's profits slipped 1.9% year on year to 272.0 billion yuan.In April alone, profits of major industrial enterprises rose 25% from the previous year.

Market Chatter: US to Ask for Public Input on China Tariff Cuts

The U.S. will ask Americans which Chinese goods deserve lower tariffs, with a public notice to be issued soon, Reuters reported Tuesday, citing Trade Representative Jamieson Greer.Both the U.S. and China agreed on a "Board of Trade" that aims to slash levies on $30 billion in non-strategic goods, according to the report.Greer said U.S. tariffs on China will likely stay higher than others. He added that while there will be no significant reform in China's political system, "some managed trade" is possible, 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.)

Market Chatter: China Aluminum Sector Prepares for Impact of Guinea's Bauxite Export Restrictions

The Chinese aluminum sector is bracing for the impact on its raw supplies following Guinea's plans to limit its bauxite exports, Bloomberg reported Monday.The West African nation, the world's largest bauxite producer, will lay out its measures to control its exports as global prices of the ore slumped, the report said, citing Mines and Geology Minister Bouna Sylla.Guinea's shipments of the ore surged to 183 million tons, helping lower costs for Chinese aluminum companies, Bloomberg said."Supply mustn't exceed demand," the news outlet quoted the minister as saying, adding Guinea has to regulate export quantities to bring back prices to "reasonable levels."(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:1211SHE:002594

China to Lead Drop in Light Vehicle Demand for 2026, S&P Says

S&P Global Ratings sees light vehicle demand declining this year, with China and the US observing the largest drops, according to a recent release.Waning consumer interest and reduced policy incentives will drive the decline in demand, S&P said.Chinese light vehicle sales dropped 20% year on year in the first four months of 2026, although S&P expects a modest recovery in the second half due to better seasonality and availability of new models, the rating agency said.Meanwhile, domestic wholesale volume for Chinese mass-market producers like BYD (HKG:1211, SHE:002594) and Chery Automobile dropped between 40% and 50%, the rating agency said.S&P expects rated manufacturers to leverage scale advantages to sustain stable sales volumes.However, rising cost inflation amid higher commodity prices due to the Middle East war could squeeze profit margins across the sector, S&P said.Chinese carmakers have quickened the pace of overseas expansion to offset intense domestic competition, leading to a 50% jump in passenger vehicle exports during the first quarter, the rating agency said.Chinese producers will also continue to increase prices or scale back incentives on some models amid these pressures, according to the rating agency.

Shanghai Composite^SZSESHA:688308SHE:002340SHE:002491SHE:300209

Chinese Shares Mixed Over Cross-Boarder Trading Crackdown

Chinese equities were mixed, almost flat, as sentiment over the crackdown on illegal cross-border securities trading waned.The Shanghai Composite Index slipped 0.2, or 7.2 points, to finish Tuesday's trade at 4,145.37. The Shenzhen Component Index marginally rose to 15,876.16.Beijing tightened its crackdown on illicit cross border investing, imposing fines on three securities brokers --- Tiger Brokers, Futu Securities and Changqiao Securities --- that operated without proper approvals.In corporate news, Xingyun Technology (SHE:300209) slumped 11.8% amid unit's plan to sell enterprise-grade SSD drives to Zhejiang Shenhu Technology for 321.8 million yuan.Tongding Interconnection Information (SHE:002491) dropped 7.8% after naming Bai Xiaoming vice chairman.OKE Precision Cutting Tools (SHA:688308) jumped 5.9% despite GEM (SHE:002340) announcing it will dispose of its 5.5% holdings in the CNC cutting tool maker.