Weekend Buzz: 20-21 June 202

Top News

Iran-US Peace Initiative Suffers Setback as It Comes Into Effect

The clock ticking down on a 60-day negotiating period for Iran and the US to come up with a permanent peace plan got stuck on minute one. The first round of talks in Switzerland, due to start on Friday, was called off after 24 hours of intense fighting between Israel and Iran-backed Hezbollah in Lebanon. The freshly signed interim peace framework calls for a cessation of Middle East hostilities, including Lebanon. The US later announced that Israel and Hezbollah had agreed to another ceasefire after Israeli airstrikes killed more than 47 people, including civilians, across southern Lebanon, and Hezbollah killed four Israeli soldiers. Israel's far-right national security minister Itamar Ben Gvir poured fuel on the fire by saying that "Lebanon must burn" to avenge deaths suffered by Israelis in the decades-long conflict. The Trump administration, in rare remonstrations, has criticized Israel for threatening to upend the peace agreement, with Vice President JD Vance warning Israel not to cross the only big ally it has left in the world. Benchmark Brent crude futures edged higher after the talks were delayed, closing trading in New York at US$80.57 a barrel.

UK Prime Minister Faces Leadership Challenge After Rival Wins Seat

UK Prime Minister Keir Starmer faces a serious leadership challenge after Manchester Mayor Andy Burnham easily won a seat in Parliament in a by-election on Thursday. His path to re-entering Parliament after a 10-year absence was smoothed by Labour Party politicians anxious to oust Starmer and convinced that the publicly popular Burnham is the best candidate to do that. Starmer, who led the party to a resounding victory two years ago, has fallen out of favor with backbenchers who think his leadership has been indecisive. His popularity in polls has plunged after high-profile controversies, including his appointment of a Jeffrey Epstein crony as US ambassador and the more recent resignation of his defense secretary, who claimed the military budget is inadequate to safeguard Britain. Starmer has said he will not resign and will contest any leadership challenge. The UK has had five prime ministers in the last 10 years.

Top Business

Early Manus Investors Reportedly Set to Buy Back AI Firm from Meta

Early investors in Chinese AI startup Manus are planning to buy back the company from Meta at the US$2 billion price that the Facebook parent paid, The Information reported. The move comes after Chinese regulators ordered Meta to unwind its acquisition, citing concerns about the transfer of China-developed technologies. Early investors included HSG, ZhenFund and Tencent. Manus was founded with technology developed by Beijing-based Butterfly Effect and moved its headquarters to Singapore in 2025. Manus develops AI agents that can autonomously carry out tasks with minimal human input. The company is said to be considering restructuring into a joint venture for incorporation in China, paving the way for a Hong Kong stock market listing. Manus's revenue has reportedly surged up to US$500 million compared with US$100 million when Meta acquired it.

Momenta Global Secures Regulatory Approval for HK IPO

Chinese regulators approved an application by Chinese autonomous-driving software maker Momenta Global to seek a listing in Hong Kong. The company, based in Beijing and Suzhou, is seeking to sell almost 44 million shares, though no price has been set. The IPO application comes after a proposed listing in the US fizzled in 2024. Momenta develops advanced self-driving technologies for carmakers and robotaxis, and has alliances with domestic carmakers SAIC Motor and BYD. The company was founded in 2016, led by Cao Xudong, a former scientist with Microsoft and SenseTime.

SpaceX Mulls US$20 Billion Debt Offering

SpaceX is considering a bond sale to raise as much at US$20 billion to fund the company's cost-intensive AI expansion, multiple US media outlets reported. The debt sale would refinance a bridging loan that SpaceX ⁠took out ⁠earlier this year. News of the debt sale follows the company's world-record initial public offering in New York. Shares from the sale, which soared in the days immediately following their debut, have since dropped about 3.6 percent on concerns about SpaceX's announcement that it will buy AI coding startup Cursor for US$60 billion in an all-stock deal.

Economy & Markets

First Commercial Real Estate REITs Debut in Shanghai

China's first four commercial real estate investment trusts debuted on the Shanghai Stock Exchange. Such trusts, known as REITs, are investment vehicles that allow individuals to pool their capital to invest in large-scale, income-generating commercial properties. Trading was active on the first day, with volume nearing 1.3 billion yuan (US$180 million), led by the Guotai Haitong Sasseur Commercial REIT, which surged 11 percent. More projects will list soon as the market expands. Meanwhile, authorities are advancing supportive policies regarding land use rights and tax incentives.

China Imposes Additional Tariff on Australian Beef

The Ministry of Commerce in China announced it is slapping an additional 55 percent tariff on beef imports from Australia, following similar measures implemented in January to enforce country-specific quotas when limits are breached. According to the ministry, Australian beef imports reached 100 percent of their designated annual quota in mid-June, automatically triggering the 55 percent tariff hike. Australia is one of the world's largest exporters of beef.

EU Plans New Tariffs on China's Hybrid Autos

The European Commission plans to impose duties on Chinese hybrid cars, the German newspaper Handelsblatt reported on Friday, ‌citing high-ranking EU officials. The duties would affect imports from Chinese mainland manufacturers that include BYD, Chery and SAIC. The EU, which is debating measures to counter the bloc's growing trade deficit with China, imposed duties ⁠on imported electric vehicles made in China in 2024.

China's 618 Festival Forecast to Show Weaker Sales

China's 618 shopping festival, the country's second-largest online event of its kind, which ends this weekend, is expected to show sales growth in the single digits after a 15 percent surge in gross receipts last year, as consumer spending remains subdued and regulators exerted pressure on online platforms to stop excessive discounting. The 618 festival, begun in 2010 as a one-day event, has stretched out over the years, with this year's event beginning on some online platforms in mid-May. JD, Alibaba's Tmall, Pinduoduo and ByteDance's Douyin are the major platforms participating in the event. Retail data provider Syntun said this year's receipts aren't expected to match 2025's gross sales of 855.6 billion yuan (US$126.4 billion) and are likely to come in at below 10 percent growth.

Separately, consultancy firm Bain & Co, in a newly released report, predicts modest growth in China's consumer marker this year, largely unchanged from 2025. It cited a growing trend of consumers switching to lower-cost goods and looking for value in what they buy. Online promotional events, such as the 618 festival, are generating less enthusiasm, it said. Earlier this week, China reported a 0.6 percent decline in May retail sales, the first decline in more than three years.

Zhejiang Power Project Begins Operation

A major power transmission project in eastern China's Zhejiang province began operations, launching a substation complex that combines the Xiubei 500-kilovolt and Jiacheng 220-kilovolt sites. Designed to transmit over 4.2 billion kilowatt-hours of electricity annually, the complex supports peak power demand exceeding 13 million kilowatts.

Separately, China's electricity usage in May rose 6.9 percent from a year earlier to 867.1 kilowatt-hours, the National Energy Administration reported. For the first five months of 2026, usage rose 5.7 percent to 4.2 trillion kilowatt-hours. Residential power use was up 4.5 percent at 606.5 kilowatt-hours. Electricity usage is widely watched as a barometer of economic activity.

Hong Kong to Launch China Bond Futures

The Hong Kong Securities and Futures Commission plans to launch futures contracts on China's five-year government bonds, beginning on August 3. City Chief Executive John Lee welcomed the

decision, saying it will further enhance Hong Kong's standing as a global bond hub and will give investors effective offshore risk management tools.

Deep Dive

Control Algorithms: Your Workplace AI Might Be Working Against You

A digital assistant augments you. A control algorithm defines your work flow. The difference doesn't lie in the technology, but rather in who sets the parameters and whose interests the parameters serve.

China Car Market Shifts from Price Wars to Rivalry in New Models, Overseas Expansion

Extreme competition among automakers in China has shaved profits and long drawn criticism from market regulators and players alike. A year ago, the China Association of Automobile Manufacturers advocated an end to industry price wars. Twelve months on, what's changed?

Corporate

Tire Maker Sailun Announces US$1.1 Billion Expansion in Egypt

Qingdao-based tire maker Sailun Group announced a US$1.1 billion plan to expand production capacity in Egypt. The company said it will build a new factory in the Suez Canal Economic Zone, with an annual output of 27 million semi-steel radial tires, 1.7 million all-steel radial tires, and 20,000 tons off-road tires. Construction is expected to take 24 months. In addition to Egypt, Sailun operates factories in China, Vietnam, Cambodia, Mexico and Indonesia.

Unitree Lowers Some Robot Prices

Hangzhou-based Unitree Robotics recently trimmed prices for some of its robots, Chinese media reported. The price of its Go2-Air robotic dog on Alibaba's Taobao dropped to 8,997 yuan (US$1,330) from 9,997 yuan, and the price of the Go2-Pro robotic dog was reduced from 18,600 yuan to 15,600 yuan. For humanoid robots, the Unitree G1 price fell to 85,000 yuan from 90,000 yuan

Micot Pharma's IPO Shares Heavily Oversubscribed

Micot Pharmaceutical Technology said the retail portion of its HK initial public offering was oversubscribed 1,182 times. The Shaanxi Province-based clinical biotech company is seeking to raise as much as HK$1.2 billion (US$153 million) in the offering of 58 million shares. The final price of the stock will be announced next week, and the shares are due to start trading on June 24.

Hyundai Seeks to Make Boston Dynamics a Wholly Owned Subsidiary

Hyundai Motor Group plans to buy Japanese Investor SoftBank's remaining 9.65 percent in US robot maker Boston Dynamics for US$325 ‌million, Reuters reported, citing South Korea's Maeil Business newspaper. Group Executive Chairman Euisun Chung and several Hyundai affiliates already own more than 90 percent of the company. The deal is expected to be presented for board approval next week.

FAW Bestune, Egypt's Nasr to Jointly Produce Vehicles

China's FAW Bestune Motor has signed an agreement with Egypt's state-owned Nasr Automotive Manufacturing to jointly produce a series of Nasr brand vehicles. Founded in 1960, Nasr Automotive resumed production in 2024 after a years-long halt.