Daily Buzz:14 May 2025

Top News

China, US to Hold Trade Talks as Trump Arrives in Beijing

US President Donald Trump arrived in Beijing on Wednesday night for a two-day visit, the first visit by a US leader to China in nine years. Chinese President Xi Jinping will meet the president for talks today. Chinese Foreign Ministry spokesperson Guo Jiakun said China welcomed the state visit, expressing hopes that bilateral talks will expand friendly, constructive relations based on the principles of equality, mutual respect and reciprocity.

Nvidia chief Jensen Huang joined the high-profile business delegation accompanying Trump's visit by hopping on board at a refueling stop in Alaska. Huang's name didn't appear on the original White House entourage list. China was formerly a major market for Nvidia chips. The company is a pivotal player in the China-US tug-of-war over semiconductor development, with the US limiting what chips the company can export to China, and China trying to stem imports of chips to build up self-reliance on its domestic semiconductor industry.

Alibaba Misses Revenue Forecasts, Posts Q1 Operating Loss

Alibaba Group, a Chinese conglomerate spanning AI assistants, cloud computing, e-commerce, food delivery, logistics, entertainment and media, missed analysts' forecasts with revenue in its fiscal fourth quarter ended March 31 rising 13 percent to 243.4 billion yuan (US$29.3 billion). Net profit doubled to 25.5 billion yuan, largely reflecting year-earlier write-downs on the disposal of Sun Art and Intime units. The company reported a loss of 848 million yuan on operations, its first since 2021, turning from a profit of 28.5 billion yuan a year earlier, largely on higher spending on AI and its fast-food delivery service, where it competes with JD.com and Meituan. Overall sales and marketing expenses in the quarter, which accounted for 22 percent of revenue, rose to 53.4 billion yuan from 36.3 billion.

Revenue from its booming cloud services surged 38 percent to 41.63 billion yuan. "Alibaba's full-stack AI investments have progressed from incubation to commercialization at scale," Chief Executive Eddie Wu said in a statement. For the full fiscal year, revenue rose 3 percent to 1 trillion yuan and net income fell 18 percent to 105.9 billion yuan. Adjusted profit fell 56 percent to 76.4 billion yuan.

UK Bond Markets Edgy Over UK Leadership Challenge

UK bond markets remained on edge as Prime Minister Keir Starmer faces a formal challenge to his leadership today from Health Secretary Wes Streeting, who is expected to resign from the cabinet to mount his bid for the top job. Bond yields rose on the news but later eased. Higher borrowing costs for government debt could hurt a national budget already in a financial squeeze. The leadership challenge comes after the Labour Party suffered steep losses in local elections last week and Starmer's approval rating has plummeted after a number of policy missteps. The Labour Party, under Starmer, breezed to a landslide election victory two years ago.

Top Business

Tencent Posts Growth in Revenue, Profit

Chinese multinational conglomerate Tencent reported first-quarter revenue rose 9.1 percent from a year earlier to 196.46 billion yuan (US$29 billion), missing analysts' forecasts. Domestic games revenue slowed to a 6 percent increase of 45.4 billion yuan from a 24 percent increase a year earlier. Profit rose 21 percent to 58.1 billion yuan. Tencent accelerated its AI transition with 37 billion yuan in capital expenditure this quarter, primarily supporting AI-related infrastructure.

The company said several of its games, including "Honor of Kings," Peacekeeper Elite" and "Delta Force" achieved records in quarterly gross receipts, and international sales from games rose 13 percent. Tencent's music arm said net profit in the first quarter rose 4.8 percent to 2.3 billion yuan on a 7.3 percent revenue to increase to 7.9 billion yuan. Tencent Music is China's largest online streamer.

Separately, China's antitrust regulator conditionally approved Tencent's US$1.3 billion acquisition of Shanghai-based online audio platform Ximalaya. The approval mandates no rise in prices for online audio streaming platforms, no lowering of service standards, no exclusive licensing agreements and no reduction in the share of free content. Ximalaya held more than 45 percent of China's audio app market in 2025.

WeRide Loss Widens in First Quarter on Robotaxi Expenses

Guangzhou-based WeRide, a ride-hailing and robobtaxi company, reported its first-quarter net loss edged up to 389.1 million yuan (US$56.4 million) from 385.1 million yuan a year earlier despite a 58 percent rise in revenue to 114.1 million yuan. Cost of revenue increased to 74.5 million yuan from 47.1 million yuan, and research and development expenses increased 12 percent to 363.3 million yuan. The company said it had a robotaxi fleet of 1,300 vehicles at the end of the quarter, including international operations in Singapore, Dubai and Slovakia. It also operates self-driving taxis in mainland cities.

Samsung Electronics Strike Risk Escalates

Samsung Electronics failed to reach a wage agreement with its labor union after marathon negotiations, raising the risk of a strike that could disrupt global chip supplies. Talks between Samsung and the National Samsung Electronics Union broke down early Wednesday after 17 hours of government-mediated discussions. The union said it would proceed with an 18-day strike scheduled to begin on May 21. More than 40,000 employees, many from Samsung's semiconductor division, have reportedly registered to join the action. The union is demanding major changes to the company's bonus structure, including the removal of a cap currently limiting bonus payments to 50 percent of annual base salary. The dispute comes as Samsung recently reporting record earnings driven by booming demand for artificial intelligence chips. Last week, the company became only the second Asian firm after Taiwan Semiconductor Manufacturing to surpass a US$1 trillion market valuation.

Economy & Markets

ChiNext Index Hits Record High

China's ChiNext Index closed above a record 4,000 points on Wednesday as investor appetite for artificial intelligence and computing-related stocks fueled a broad market rally. The ChiNext Index, which tracks growth-oriented companies in Shenzhen, rose 2.63 percent to close at 4,038.33. The broader market also advanced, with more than 3,200 stocks rising and over 100 shares hitting daily limit-up levels. The Shanghai Composite Index gained 0.67 percent, while the Shenzhen Component Index climbed 1.67 percent. AI infrastructure and hardware-related shares led gains. Stocks linked to computing power equipment and printed circuit boards extended recent rallies as investors continued to bet on rising demand tied to artificial intelligence applications.

In Hong Kong, the Hang Seng Index ended 0.15 percent higher, while the Hang Seng Tech Index added 0.46 percent. Chinese AI model developers MiniMax and Zhipu AI outperformed the market, with MiniMax up 18 percent and Zhipu soaring nearly 37 percent.

US Wholesale Prices Surge on Impact of Iran War

US wholesale prices in April rose 6 percent from a year earlier, their highest annual increase in more than three years, signaling higher costs related to the war in Iran. The producer price index rose a seasonally adjusted 1.4 percent from a month earlier, exceeding forecasts. Energy prices accounted for about 40 percent of the increase. Wholesale prices eventually ripple down to consumer costs.

President Donald Trump said the higher household costs are not a motivating factor in his attempts to end the Iran conflict. "The only thing that matters when I'm talking about Iran is that they can't have a nuclear weapon," Trump told reporters before leaving on a trip to China. "I don't think about Americans' financial situation. Every American understands." His comments followed the day-earlier release of April data showing US consumer prices accelerated to a three-year high of 3.8 percent, driven by a 28 percent surge in gasoline prices and higher airfares due to spiking jet-fuel costs

Beijing-Shanghai Rail Line to Increase Fares

Beijing-Shanghai High Speed Railway, which reported first-quarter profit rose 6 percent to 3.1 billion yuan (US$456 million) on revenue of 10.6 billion yuan, announced up to a 20 percent hike in fares, effective on May 26. The rail line is popular with the public in the densely populated corridor because it's cheaper than air fares and quicker if travel time to and from airports is figured in. The purpose of the increase is to expand the floating range of prices and promote a more even traffic flow, Yicai reported. Discounts will be offered, depending on season, date, time period, travel speed seat class. The timing comes after domestic carriers raised fuel surcharges to counter the rising price of jet fuel caused by the Iran war.

Chinese Mainland Account for 28 Percent of HK Home Sales

The number of Hong Kong homes bought by mainland Chinese surged 48 percent ‌in April to a two-year high, property agent Midland Realty reported. The gains reflect a strong yuan and a shift from renting to homeownership. Mainland citizens bought 1,892 Hong Kong homes in the month, valued at a 17-month high of HK$18.9 billion (US$2.4 billion). The purchases accounted for 28 percent of home sales in the city last month.

India Raises Import Duties on Gold, Silver to Defend Rupee

India stepped up its campaign to counter the rising cost of the Iran war on its economy by raising import duties on gold and silver to 15 percent from 6 percent. India is the world's second-largest consumer of gold, with average monthly imports of 40-50 tons draining foreign reserves. The duty hike comes after Prime Minister Narendra Modi this week urged citizens to curb bullion purchases for a year, postpone overseas travel, curtail use of gasoline, diesel fuel and edible oils, and reduce dependence on imported chemical fertilizers to conserve foreign exchange. Energy prices have particularly hit the economy hard. The nation relied on the Gulf states for about 50 percent of its crude imports and 60 percent of its liquefied natural gas before the Iran war closed war the Strait of Hormuz tanker waterway.

Corporate

MediaTek Upgrades AI Strategy, Introduces On-Device Ray Tracing Tech

MediaTek, a world leading mobile chip designer, announced an upgrade of its AI strategy in Shanghai, introducing advanced technologies and reinforcing industry partnerships. The upgrade includes Dimensity AI Development Kit and AI Engine, emphasizing a focus on powerful on-device AI capabilities that prioritize user privacy protection and data security. MediaTek announced collaborations with smartphone manufacturers like Oppo and Xiaomi. One highlight was the release of ray tracing mobile Immensity technology, providing real-time, precise lighting and dynamic objects to be applied to Tencent's major game title "Delta Force."

Robotic Startups Attract New Investment

Chinese robotic startups Lumos Robotics, Vbot, and Uncharted Dynamics, announced new funding as the industry's development picks up pace. Shenzhen-based Lumos, a maker of AI-powered humanoid robots, said it raised several hundred million Chinese yuan in a fundraising led by a subsidiary of Mitsubishi Electric. Vbot announced additional investment of 500 million yuan (US$73.6 million), after saying it expects to begin marketing first product, a robot dog priced at almost13,000 yuan, this month. Uncharted Dynamics said it secured several million dollars in a seed funding round led by venture capital firm K2VC. The three startups said proceeds will be used for research and development, and market expansion. Since the start of the year, 182 companies in the industry have announced additional investment, Yicai reported, citing EqualOcean, an investment research firm and information provider.

Douyin Increases Investment in Micro-Dramas

Douyin Group, operator of the popular platform of micro-dramas under ByteDance, said it plans to invest 1.5 billion yuan (US$219 million) to support live-action, micro-drama making this year. The money will boost allocations for each creation by an average 60 percent. Data from Douyin showed the average daily viewing time for live-action micro-dramas nearly quadrupled in a year, with more than 1,100 dramas drawing more than 1 billion views. Last year, the number of drama genres expanded to 65.

China Unicom Unveils 'Age-Friendly' Initiatives

China Unicom launched a suite of services and AI-driven products in Shanghai designed to bridge the digital divide for the elderly. The campaign will span over 100 local communities in Shanghai, offering on-site network diagnostics, specialized service plans, anti-fraud education and smartphone training for older users. Key product highlights include wearable safety devices with emergency positioning and health monitoring, as well as an AI digital doctor developed in partnership with Shanghai General Hospital to provide one-stop medical consultations and medication reminders.

The initiative addresses a critical demographic shift: China's elderly population is projected to reach 400 million by 2035, and many older people are flummoxed by new technologies.

CATL Begins Battery Production in Hungary

Chinese battery giant Contemporary Ampere Technologies (CATL) said it has begun a battery-module assembly plant at a new facility in Hungary. The assembly line has an annual capacity of 5 gigawatt-hours.