Daily Buzz: 21 July 2026

China Takes Quick Steps to Stanch Selloff in Equities

Wu Qing, chairman of the China Securities Regulatory Commission, pledged support and further reforms to mitigate market risks after a selloff last week wiped about 10 trillion yuan (US$1.5 trillion) from the value of Chinese stocks. The commission will be unwavering, he said, in its attempts to "keep transparent, fair and open market order to let investors share the benefits of growth in the economy and capital markets." After a high-profile meeting with a group of retail investor representatives in Beijing on Monday to discuss market stability, he stressed the importance of individual investors, who comprise the bulk of the Chinese mainland trading.

Market volatility eased on Monday after two state-backed investment firms bought 60 billion yuan of shares on Chinese mainland and Hong Kong exchanges, and after a parade of companies announced share buybacks to prop up prices. The Shanghai Composite Index rose 0.85 percent, with its Nasdaq-style STAR market 50 index up 0.19 percent after a 20 percent plunge last week. The tech-heavy ChiNext in Shenzhen rose 0.4 percent, and Hong Kong's Hang Seng Index jumped by 2.4 percent, with Alibaba soaring 3.7 percent.

The speedy government assurances of support came as Beijing seeks to restore positive investor sentiment as large initial public offerings by Chinese tech companies move toward mainland listings, including the US$9.8 billion share sale by ChangXin Memory Technologies (CXMT) and one pending by Unitree Robotics.

Last week's market selloff was part of global wave of losses, triggered by a slump in tech shares and a spike in oil prices on renewed fighting between the US and Iran. South Korea has been among the hardest-hit after declines that slashed a quarter off the value of the Kospi index since its June 22 record high. The index dropped a further 4.1 percent on Monday as investors continued to unwind leveraged positions in AI chipmakers.

Burnham Takes Over as UK Prime Minister

Andy Burnham took over as the seventh UK prime minister in 10 years, replacing Keir Starmer, who resigned under pressure from parliamentary colleagues startled by the Labour Party's plunging popularity in polls. Burnham, 56, pledged a new dawn in politics, more closely aligned with grassroots needs, and promised a plan to shore up the weak economy. In three high-profile appointments on his first day in office, Burnham named John Healey as chancellor of the exchequer. Healy quit as Starmer's defense secretary several weeks earlier, severely criticizing inadequate spending on the nation's defense. Wes Streeting was appointed new defense secretary, and Ed Miliband was named new foreign secretary.

US Launches 10th Day of Attacks on Iran, Oil Prices Remain Elevated

The US military launched a 10th consecutive day of strike on Iran, vowing retaliation for the death of three American soldiers from enemy actions. The US vowed to "further degrade" Itan's capabilities to attack ships in the Strait of Hormuz. Iran, in turn, has vowed "full-scale" war against the US as a June ceasefire collapsed. Global benchmark Brent crude futures were trading near US$89 a barrel in New York late on Monday.

Trump Slaps 50 Percent Tariffs on Canadian Goods

US President Donald Trump imposed a 50 percent tariff on a wide range of goods imported from Canada, escalating long-running tensions between the two North American neighbors. Trump said the levies are in retaliation for what he called "unequal treatment" of US car, dairy and alcohol exports. Days earlier, he threatened new tariffs on Canada over wildfires that blanketed parts of the eastern US with smoky skies. Early in his current term, Trump said the US should annex Canada as the 51st state.

Top Business

Zhongji Innolight Receives HK Approval for Mega IPO

China's Zhongji Innolight, the world's largest producer of optical transceivers used in digital equipment and AI data centers, received approval for a Hong Kong initial public offering that analysts predict could seek to raise up to US$8 billion, which would be the city's largest listing in years. The Shandong Province-based company is currently in talks with institutional investors and underwriters to determine size and timing of the IPO. Innolight, which is already listed on the Chinese mainland's Shenzhen market, may begin taking share subscriptions later this week.

TSMC Ramps Up Work on US Facility, Predicting Strong Chip Demand

Taiwan Semiconductor Manufacturing (TSMC), the world's largest contract chip maker, is predicting strong multi-year demand for its AI chips, justifying its announcement last week of an additional US$100 billion investment to accelerate development of a new factory complex in the US state of Arizona. The additional funding takes the company's investment in the facility to US$265 billion.

Economy & Markets

Chinese Firms Unleash 10-Billion-Yuan Buyback Wave

More than 30 Chinese-listed companies, including China Railways Rolling Stock and aluminum giant Chalco, announced plans on Monday to buy back shares or expand majority stakes, amounting to a 10 billion yuan (US$1.38 billion) effort to boost market confidence after last week's sharp declines. China Three Gorges Renewables announced its parent group's plan to increase its stake by up to 3 billion yuan, while Aluminum Corp of China (Chalco) revealed a similar plan valued at up to 2 billion yuan. In addition, China Pacific Insurance said that it would boost its investments in stocks, while Shanghai-based carmaker SAIC Motor said that its state parent had pledged not to reduce its stake in the next six months.

China Keeps Interest Rates Unchanged

China's central bank kept its benchmark lending rates unchanged in July for a 14th consecutive month. The one-year rate, used for corporate and consumer loans, remains at 3 percent, and the five-year rate, used to benchmark mortgages, stays at 3.5 percent. The decision by the People's Bank of China was in line with market expectations.

China Consumption Tax on Solar Cells Lifts Shares

Shares of Chinese solar and major battery makers rose on Monday after Beijing unveiled a consumption tax on solar cells and lithium batteries, aiming to accelerate industry consolidation, particularly in the solar sector where supply has long outweighed demand. Longi Green Energy Technology shares rose 2.1 percent, and Jinko Solar increased 4 percent.

Moutai Price Hike Sparks Rally in Chinese Liquor Stocks

China's liquor giant Kweichow Moutai raised the price of its flagship spirit Feitian for the second time this year, lifting the retail price on its direct sales platform by 100 yuan (US$14.80) to 1,639 yuan a bottle. The company also increased its wholesale contract price by 100 yuan to 1,369 yuan. Kweichow Moutai shares closed up 6 percent higher on Monday, sparking a rally among peer distillers, with Anhui Gujing Distillery surging by the maximum 10 percent daily limit and Wuliangye Yibin gaining 4.8 percent.

Corporate

Chinasoft, Moonshot Sign Agreement on Tokens

Chinasoft International said it signed a token revenue-sharing and joint innovation agreement with Moonshot AI. Moonshot has been in global headlines in recent days with the release of its groundbreaking Kimi K3 model, a next-generation open-weight AI system that features 2.8 trillion parameters and drew such a rush of subscribers that it had to temporarily suspend new accounts. The agreement is another step in Chinasoft's transformation into a token operator. The two parties will take Chinasoft's self-developed intelligent operating system for companies, the Allmeta platform, plus Moonshot K2.7 Code and K3 models as their core partnership foundation.

Chinese Rocket Startup LandSpace Restarts IPO Process

Beijing-based commercial aerospace company LandSpace has restarted its initial public offering process following an earlier suspension. The private rocket builder, now valued at over 20.6 billion yuan (US$3.04 billion), has successfully logged seven liquid-fueled rocket launches across its Zhuque-2 and Zhuque-3 series. The company is backed by prominent investors that include Sequoia China, Matrix Partners China and several state-funded investment bodies. LandSpace reported a 2025 loss of 1.7 billion yuan.

Chip Developer Jaguar Microsystems Seeks Shenzhen IPO

Shenzhen-based chipmaker Jaguar Microsystems has applied for an initial public offering on Shenzhen's ChiNext board, aiming to raise 3 billion yuan (US$418 million). The startup develops high-performance data processing units, a specialized class of data center chips rivaling those of Nvidia. The company is a supplier to tech giants like China Mobile and Tencent, with revenue last year surging 900 percent to 370 million yuan.

China Eastern Airlines Starts Offering Free Wi-Fi Service

China Eastern Airlines is now offering free Wi-Fi on all wide-body aircraft, the first Chinese carrier to drop fees for the service across its entire wide-body fleet. The free service covers routes flown by China Eastern and subsidiary Shanghai Airlines to the Americas, Europe, Africa, the Middle East, Central Asia and South Asia.