Daily Buzz: 26 December 2025

China Updates List for Priority Foreign Investment

China updated one of its main policy tools for steering foreign investment into priority industries, seeking to direct more overseas capital into advanced manufacturing and to expand regional investment. The latest version of the so-called Catalogue of Encouraged Industries for Foreign Investment, adds 205 new targets for investment, including nucleic acid-based drugs, zero-magnetic medical equipment, smart testing gear and instruments, and key robotic components, Yicai reported. The list released by the National Development and Reform Commission and the Ministry of Commerce, also includes priorities in advanced materials technology platforms, high-end shipping, virtual power plants, and consumer services such as pet care, sports tourism and Internet healthcare services. The updated version, which replaces the 2022 catalogue, takes effect on February 1.

Subject to certain conditions, businesses in sectors listed in the catalogue are eligible for incentives such as exemptions from customs duties, a lower corporate tax rate and tax credits if profits are reinvested. The new edition also encourages more foreign investment in central, western and northeastern areas of China, and in the southern province of Hainan.

US Military Strikes on Nigerian Extremists

President Donald Trump said the US military launched "powerful and deadly" strikes on Islamic State (ISIS) extremists in Nigeria, whom he accused of persecuting Christians in Africa's most populous country. "I have previously warned these terrorists that if they did not stop the slaughter of Christians, there would be hell to pay, and tonight, there was," he said. went on. Extremists have been linked to attacks on religious sites and to the kidnapping of schoolchildren for ransom. It wasn't clear from initial reports if the attacks were directed at the militant group Boko Haram. Nigeria is 56 percent Muslim and 43 percent Christian.

Ukraine Expresses Optimism on Peace Plan

Ukraine President Volodymyr Zelensky struck an upbeat tone on prospects for peace after a conversation with US envoys. He said a Thursday call with Steve Witkoff and Jared Kushner, which lasted nearly an hour, yielded "new ideas in terms of formats, meetings, and timing on how to bring real peace closer." However, he said there is still work to be done on "sensitive issues," an apparent reference to territorial control and NATO-style security guarantees covering any Russian assaults in the future. Zelensky earlier suggested that the new plan proposes the creation of a demilitarized zone in areas where Ukrainian troops may withdraw. However, Moscow has repeatedly insisted there will be no peace unless Ukraine surrenders land Russian occupies or seeks to occupy.

EU Accuses US of 'Coercion, Intimidation' in Visa Bans

European leaders accused the Trump administration of "coercion and intimidation" after Washington refused visas to five prominent European figures related to EU efforts to rein in hate and disinformation on digital platforms, largely run by US tech companies. The five include former EU commissioner Thierry Breton, one of the architects of the EU's Digital Services Act. The law was enacted in 2022 and requires digital platforms to show steps to curtail the spread of illegal content, hate speech and use of disinformation to manipulate election results, the Guardian reported. Under the law, Elon Musk's X platform was fined 120 million euros (US$141 million) this month over breaches the law related to transparency. The US says the law is a form of censorship.

Trump-Backed Candidate Wins Honduran Presidency

Nasry Asfura, the conservative candidate backed by US President Donald Trump, was declared winner of the November 30 presidential election in Honduras in a result delayed by technical problems and claims of election fraud. Asfura won 40.3 percent of the vote against Liberal Party candidate Salvador Nasralla, who said he didn't accept the outcome.

Top Business

Jiangxi Copper Clinches SolGold Takeover

Jiangxi Copper, China's largest integrated copper producer, will acquire the 88 percent of Ecuadorean miner SolGold that it doesn't already own for US$1.1 billion. The deal was clinched after Jiangxi Copper raised its offer for the UK-listed company to 28 pence (38 US cents) in cash -- a 43 percent premium to its closing price when Jiangxi first bid for the company in November. The deal comes as global prices for copper, vital in electronics industries, hover near record highs. Major SolGold shareholders, including Australia's BHP and US-based Newmont Mining, previously considered takeover offers for SolGold but have agreed to accept the sweetened offer from Jiangxi. The deal will give Nanchang-based Jiangxi control of the Cascabel mining project, part of a major belt of copper in South America. Jiangxi mines base metals like copper, precious metals like gold, silver and platinum, and rare earth minerals like molybdenum. The company's shares rose 1.9 percent on the Shanghai Exchange on Thursday.

China Vanke Faces Another Default Cliff

Distressed property developer China Vanke, fresh from a reprieve of sorts in efforts to delay one bond repayment, faces a new test over a second domestic bond. Creditors are voting on Vanke's proposal to postpone for one year the repayment on a 3.7 billion yuan (US$525 million) bond due December 28, Bloomberg reported. If bondholders reject the proposal, the company would have a five-day grace period to meet its obligation or face default. Earlier this week, holders of another yuan-denominated bond refused to delay a debt repayment for a year but extended the grace period on payment until January 27. Vanke, once China's largest property company, fell victim to the liquidity crisis that hit the real estate sector in 2021 and now has US$50 billion of outstanding liabilities. Vanke has been kept afloat for years by loans from its major shareholder Shenzhen Metro, but that support has been waning.

China Backs Domestic Lithography Supplier

Shanghai Micro Electronics Equipment won a 110 million yuan (US$16 million) contract awarded by China's Ministry of Science and Technology for development of step-and-scan lithography used in the manufacture of integrated circuits as part of Beijing's push to develop self-reliance in the semiconductor equipment industry. Founded in 2002, Shanghai Micro focuses on the development, design and manufacture of semiconductor and advanced intelligent equipment. The company is jointly owned by state-backed Shanghai Electric Group and a subsidiary of Zhangjiang High-Tech Park.

No Bark, No Bite: Big Head Bobo May Be Ideal Pet

If you want a dog that doesn't require feeding, training or pooper-scoopers, startup Vita Dynamics has just the pet for you. Its Big Head Bobo robotic dog began sales at 9,998 yuan (US$1,420) as the price of household robotic companions keeps dropping. The company said it received 10 million yuan in pre-orders on the first day. Big Head Bobo is capable of accompanying owners on outdoor walks, taking photos, carrying light loads and communicating by voice. Shenzhen-based robotics company Dobot started presales of its Rover X1 robot dog on the same day, priced at 7,499 yuan.

Economy & Markets

Existing Home Sales in China on the Rise

China will see a decline in new homes sales and a rise in existing home sales over the next five years as a long property slump realigns inventories, according to the Ministry of Housing and Urban-Rural Development. Sales of existing homes increased in Shanghai and Beijing this year. As of December 19, resales in Shanghai topped 243,900, up from 242,700 for the whole of 2024, according to the Shanghai Real Estate Transaction Center. Existing home are attracting budget-conscious buyers as prices of new homes remain relatively high, the firm said. In Beijing, resales jumped 20 percent in November alone, with the average price dropping to 3.5 million yuan (US$497,970) from 3.8 million in June, real estate analytics firm Heshuo Institution told Yicai Global. Existing homes listed for sale in the capital fell to about 157,000 units, down from last year's high of 176,000 but still above the market low of 100,000.

Yuan Strengthens to 15-Month High

The Chinese yuan strengthened to its highest point in 15 months against the US dollar, rising above 7 yuan in offshore trading on Thursday. Bloomberg News said traders are betting the People's Bank of China will allow a gradual appreciation of the currency as a market-boosting measure, after the central bank widened its reference rate for the yuan to 6.996 to the dollar on Thursday, its strongest since September 2024. Trading was thin because Hong Kong is shut for a holiday until December 29. The yuan will likely stay strong -- in the range of 6.95-7 yuan per dollar -- in the first half of next year, according to a forecast from Australia & New Zealand Bank.

China Rejects 102 Generic Drug Applications

Chinese regulators have turned down marketing applications for 102 generic drugs this month after tightening the approvals process. China is attempting to turn the focus of its pharmaceutical industry to development of innovative drugs and away from the saturated market of copy-cat generics.

Corporate

IFlytek Sets Up Company to Expand Into AI

Hefei-based technology company iFlytek set up a new company to expand into semiconductors and other artificial intelligence-related fields, the South China Morning Post reported, citing Chinese corporate data provider Qichacha. The new Shandong Yixun Information Technology company will focus on integrated circuit design, AI software development and technical consulting for AI public service online platforms. IFlytek made its name in voice-recognition software. Its diversification is seen as part of China's campaign to become self-sufficient in semiconductor development and manufacturing. IFlytek was placed on a US government blacklist of companies considered national security risks in 2019, which banned the company from buying US-made chips.

Jinmao Holdings Sells Hainan Ritz-Carlton Unit

China Jinmao Holdings, the property development arm of state-backed Sinochem Holdings, has sold a tourism subsidiary that owns the five-star Ritz-Carlton hotel on Hainan Island to Sanya Luanmao for 2.26 billion yuan (US$322 million) as part of asset restructuring to weather the real estate slum on the mainland, the South China Morning Post reported. Wholly owned subsidiary Shanghai Jinmao will sell its 100 per cent stake in Sanya Tourism, which in turn solely owns the Ritz-Carlton Sanya Yalong Bay. Sanya Luanmao is a wholly owned subsidiary of Citic Securities, China's biggest publicly traded brokerage. The Ritz-Carlton in Sanya opened in 2008 with 446 guest rooms.

Jovo to Expand Production of Aerospace Fuel

Zhuhai-based Jovo Energy, a Chinese importer and wholesaler of liquefied natural gas, said it plans to spend 300 million yuan (US$43 million) to expand its production capacity of commercial aerospace fuel. The project aims to meet new demand for fuel and special gases from the Hainan Commercial Space Launch Site and adjacent Wenchang Space Launch Site in Hainan Province, and the Oriental Maritime Space Port in Shandong Province and the Jiuquan Satellite Launch Center in Gansu Province. Jovo's second-phase of production will produce liquid nitrogen, liquid oxygen, green hydrogen, helium, krypton, xenon, light hydrocarbons and jet fuel.