Weekend Buzz: 9-10 May 2026

Top News

US Awaits 'Imminent' Reply From Iran on 14-Point Peace Proposal

The Trump administration said it expects a reply from Iran by late Friday on its 14-point proposed framework for a peace agreement. While the wait continued, US jets fired on two empty Iranian tankers, disabling them as they tried to break through an American blockade of Iranian ports. Tensions notched up a day earlier, when the US struck Iranian missile-launch sites in what it says was defensive retaliation after Iran tried to attack three of its naval destroyers in the Strait of Hormuz. Iran said the US opts for "reckless military adventurism" every time there is "diplomatic solution on the table." It added, "The deeper they sink into folly, the more inventive they become in justifying it." The two adversaries have been communicating through intermediary Pakistan on peace proposals.

US Secretary of State Marco Rubio said plans by Iran to levy tolls on vessels transiting the Strait of Hormuz are unacceptable. The United Arab Emirates said its air defenses intercepted a barrage of missile attacks from Iran. The UAE is often a retaliatory target for Iran because the Gulf state hosts a major US air force base.

China's foreign ministry on Friday confirmed reports that an oil-products tanker carrying Chinese

crew was attacked in the Strait of Hormuz earlier in the week, expressing ‌deep concern about vessel traffic choked by the ongoing conflict in the Middle East. No injuries were reported, and the source of the attack wasn't disclosed. The vessel was reportedly marked with a banner saying "Chinese owner and crew." Maritime security sources said the damaged ‌vessel ⁠was believed to be sailing under Marshall Islands flagging.

Global oil prices remained steady above US$100 a barrel as investors took a wait-and-see stance on prospects for an end to the war. Benchmark Brent crude futures closed the trading week in New York at US$101.29.

Brief Ceasefire in Russia-Ukraine War Announced

US President Donald Trump announced a three-day ceasefire in the war between Ukraine and Russia, along with a prisoner swap of 1,000 prisoners from each side. "Hopefully, it is the beginning of the end of a very long, deadly and hard-fought war," Trump said. It isn't clear how the ceasefire will affect long-stalled peace talks to end the four-year conflict.

UK Prime Minister's Grip on Power Imperiled by Election Losses

UK Prime Minister Keir Starmer, already in political hot water over his appointment and later firing of an ambassador to the US with ties to convicted pedophile Jeffrey Epstein, faces increased pressure to step down after his Labour Party suffered heavy losses in local elections in England, Wales and Scotland on Thursday. Starmer, calling the poll results "tough," said he has no plans to walk away.

Top Business

Orient Securities Plans Merger With Shanghai Securities

Orient Securities and Shanghai Securities, two brokerages controlled by the Shanghai government, are moving toward a merger that will create a major securities firm with a strong business brand and deep regional market presence, Yicai reported. Orient Securities will purchase a 100 percent stake in Shanghai Securities in a cash-and-share deal. After the transaction is completed, Orient Securities' core business will remain unchanged, with net assets topping 1 trillion yuan (US$138.5 billion). The merged company will have about 250 branches, including 79 in Shanghai.

Consolidation in the securities industry nationwide has been continuing apace. China International Capital Corp began a merger with Dongxing Securities and Cinda Securities last November, and Shanghai brokerages, Guotai Junan Securities and Haitong Securities merged in 2024, creating China's biggest securities firm. More recently, a merger between Soochow Securities and East China Securities, both based in Jiangsu Province, was announced this year.

Tesla Shanghai Factory Sales Surge 36 Percent

Tesla's Shanghai mega-factory reported April deliveries surges 36 percent from a year earlier to 74,478 vehicles on increased consumer interest electric vehicles amid high gasoline prices triggered by the Middle East war. The April figures include Chinese mainland and overseas sales. On a month-to-month comparison, sales drop 7.2 percent from March, a sign of tough competition as domestic rivals roll out new models.

Sony Annual Profit Drops 3.4 Percent

Japanese electronics and entertainment giant Sony reported a 3.4 percent decline in net profit for its fiscal year ended March 31 to 1.03 trillion yen (US$6.57 billion). Revenue rose 3.7 percent to 12.5 trillion yen. Gaming remained the top earner, growing 6 percent to 4.26 trillion yen, driven by PlayStation Plus price hikes and third-party software sales. Music revenue surged 18 percent on streaming growth, while imaging sensors grew 8 percent amid a smartphone market rebound. For the 2026 fiscal year, Sony forecasts a 1.4 percent revenue decline to 12.3 trillion yen, but expects net profit to jump 12.5 percent to 1.16 trillion yen, aided by lower gaming hardware costs and lower semiconductor prices. Sony said it will invest 150 billion yen to expand image sensor capacity for the smartphone and automotive sectors.

Toyota Posts Decline in Operating Profit

Japan's Toyota Motor, the world's largest automaker by sales, reported a 49 percent drop in operating profit in its fiscal fourth quarter ended March 31 to 569 billion yen (US$3.6 billion) on flat revenue of 12.6 trillion yen. The operating results were Toyota's fourth consecutive quarterly year-on-year decline, as US tariffs on imported vehicles, rising material costs and Middle East war supply disruptions squeezed margins. Consolidated car sales in the quarter declined to 2.29 million from 2.36 million units a year earlier. The company lowered its forecast for operating income in the fiscal year that began on April 1 by 20 percent to 3 trillion yen.

China Issues First National Guidelines for AI Agents

China rolled its first comprehensive regulatory framework for AI agents, targeting a 70 percent adoption rate across key industries by 2027. The rules introduce a tiered regulatory system. High-risk sectors like healthcare and public safety will face mandatory standards, government filing requirements and product recall mechanisms, while low-risk sectors will be left to self-regulation.

The guidelines mandate human oversight, ensuring users retain ultimate decision-making power and visibility over AI actions. The policy also strictly bans algorithms that cause user addiction or exploit consumers. To boost the industry, authorities plan to build a national registration platform assigning digital IDs to AI agents to ensure traceability. The government also greenlit 19 specific uses, encouraging deployment and state procurement in fields such as smart manufacturing, financial risk control, scientific research and embodied robotics.

Economy & Markets

China Exports Surge Beyond Expectations in April

China's exports in April rose 14.1 percent from a year earlier, the General Administration of Customs said on Saturday. The surge beat analysts' forecasts. Imports rose 25.3 percent, also exceeding predictions. The gains came despite high oil prices and supply chains disrupted by the Iran war. The nation's trade surplus last month rose to US$84.82 billion from US$51.1 billion in March.

China Tech Firms Pursuing IPOs in Shanghai, Hong Kong

Baidu's spun-off AI chip unit Kunlunxin yesterday began preparations for a listing on Shanghai's STAR market, with CICC acting as its IPO advisor, according to the website of China's securities regulator. The firm's ongoing plans for an initial public offering in Hong Kong remain intact, sources told Yicai.

In other pending IPOs, RobotPhoenix, a leading player in China's light industrial robotics sector, is preparing for a Hong Kong IPO that could raise up to US$100 million. The Zhejiang Province-based company said in its prospectus that it plans to sell 24.6 million shares at HK$30.50 each. Founded in 2012, RobotPhoenix designs and manufactures industrial robots, ranking about fifth in China's market for light industrial robots used in consumer electronics, healthcare, automotive components and semiconductors.

Chinese AI startup StepFun completed a shareholding restructuring on its path toward listing in Hong Kong. It has is secured investment from the Hong Kong Investment Corp, positioning itself to potentially become China's third publicly traded AI foundation model company in the city. StepFun is also finalizing a nearly US$2.5 billion funding round backed by supply-chain investors that including ZTE, Huaqin, Longcheer, and OmniVision.

China Companies Plan Debt Issues

Midea, China's largest household appliance maker, plans to raise HK$17.2 billion (US$2.2 billion) from the sale of convertible bonds to expand its overseas business, the South China Morning Post reported. The company said it will issue the zero-coupon bonds in two tranches of HK$8.62 billion each, with the first maturing in May 2027 and the second due in May 2033. Convertible bonds are debt securities that can be converted into shares at a predetermined price. Separately, Hong Kong-listed Macau casino operator MGM China Holdings said it will sell US$750 million in senior notes maturing in May 2033. The debt will carry an interest rate of 6.25 per cent, according to an exchange filing. Money from the sale will be used for debt repayment and general operating expenses.

TSMC April Sales Jump 17.5 Percent on AI Chip Demand

Taiwan Semiconductor Manufacturing, the world's biggest contract chipmaker, reported a 17.5 percent increase in April sales to NT$411 billion (US$13 billion) on booming global demand for AI chips. Analysts are predicting that June quarter revenue will increase by a third from a year earlier, Bloomberg News reported.

US April Payrolls Beat Expectations

The US economy added a greater-than-expected 115,000 jobs in April, while March figures were revised up to 185,000, according to Bureau of Labor Statistics. Strength in the labor market suggests the Federal Reserve will keep interest rates unchanged for longer that earlier forecast.

Job gains were led by healthcare, retail, hospitality and warehousing sectors, offsetting layoffs in information technology, finance and manufacturing.

China's Daily AI Token Usage Surges 1,000-Fold

China's daily AI token usage topped 140 trillion by late March, a 1,000-fold increase since late 2024, the National Data Administration reported. Deputy Director Yu Ying noted this explosive growth is rapidly reshaping the nation's computing infrastructure, energy networks, and data systems. The Chinese government is prioritizing the coordination of computing power and electricity grids. To support sustainable AI expansion, authorities plan to build national computing hubs, integrate green energy and develop industry-specific datasets.

Deep Dive

Aye for an Eye: the Race Is on in China to Market Drugs to Slow Myopia

A prescription eye drop used to slow childhood myopia is becoming one of China's most closely watched pediatric healthcare markets, as drugmakers, eye hospitals and online health platforms move to capture demand from parents worried about their children's worsening nearsightedness.

The End of Free AI: Agents Drive A New Cost Reality

As AI shifts from being a simple Q&A tool to agent-based products capable of completing tasks autonomously, its cost structure is changing.

Corporate

WPS Office Launches International Version

WPS Office, an office suite developed by China's Kingsoft Office Software, has launched a new version globally that introduces AI-powered assistant supports translation, proofreading, and polishing in over 100 languages, all completed within the document without switching tools.

These features eliminate the efficiency friction that global knowledge workers experience every day when switching between devices and navigating language barriers, delivering an AI office assistant that is accessible to everyone. WPS is a competitor to Microsoft Office.

SJM Turns to Loss on Closure of Satellite Casinos in Macau

Macau-based SJM Holdings, which owns and operates casinos and hotels in China's special administrative region and is the only place in China where gambling is legal, turned to a first-quarter loss of HK$62 million (US$7 million) from a year-earlier profit of HK$31 million, with revenue declining 21 percent to HK$5.9 billion. Gross gaming revenue fell 19 percent to just under HK$6.1 billion, dropping SJM's share of Macau gaming revenue to 9.6 percent from 13.5 percent. The first quarter was the first earnings period after the closure of the last of SJM casino satellites – smaller gaming venues operated by third-party concessionaries and shuttered last year under new gaming regulations. Hong Kong-listed SJM's revenue from the Grand Lisboa Palace hotel-resort rose 7 percent, and earnings from the Grand Lisboa hotel rose to HK$1.9 billion from HK$1.7 billion.

Sino-US Biopharma Firm Zai Lab Widens Q1 Loss

Zai Lab, a biopharmaceutical company based in the US and Shanghai, said its first-quarter loss widened to US$51 million from US$48.4 million a year earlier, largely on a decrease in sales of its Zejula drug for treating ovarian cancer on the Chinese mainland. Spending on research and development rose to US$65.6 million from US$60.7 million. The company said it will remain focused on developing and marketing drugs that address medical conditions with significant unmet needs in the areas of oncology, immunology, neuroscience and infectious diseases. The company reported a pipeline that includes a drug targeting small-cell lung cancer and a bispecific antibody aimed at inflammation caused by atopic dermatitis.

Ourgame Goes Into Official Liquidation

Hong Kong-listed Ourgame International Holdings, a Chinese company that primarily focuses on online card and board games like chess, has gone into official liquidation. The company, a unit of China's SeaRainbow Holding, was founded in 1998. At its height, the company reported 70 million registered users and 700,000 paid subscribers. In its last earnings filing, for the six months ended June 30, 2025, the company said its loss widened to U$38 million from US$19.7 million a year earlier on a 14 percent drop in revenue. It reported liabilities of US$30 million. The company was ordered into liquidation by regulators in the Cayman Islands, where Ourgame is registered, who were concerned over its solvency. Its Hong Kong shares have been suspended.

Marriott's Revenue From China Increases in Q1

Marriott International said first-quarter revenue per available room in China rose 5.7 percent from a year earlier to US$70.68, with Hong Kong and Hainan Province among the best-performing markets. Average daily room rates rose 3.9 percent, and occupancy edged up to 63 percent. Globally, Marriott posted first-quarter revenue of US$6.65 billion, up 6.2 percent from a year earlier, while net profit slipped 2.6 percent to about US$648 million. Marriott said China remains one of its key growth markets, where it now operates more than 700 hotels across 150 Chinese cities under 26 brands.

Major Chinese Tech Platforms Overhaul Algorithms to Comply with New Rules

Meituan, Alibaba's Taobao and 12 other major Chinese tech platforms have implemented 63 algorithmic improvements to comply with new national regulations targeting lifestyle service platforms. Food delivery giant Meituan has fully deployed its core algorithm logic across its app and web platforms, updating its order-dispatching system to eliminate discriminatory factors like age, gender or order value. Similarly, online travel agency Qunar now uses in-app graphics to transparently explain its algorithms to users. It has also introduced contextual alerts during the checkout process to clearly explain the reasons behind any price differences.