Daily Buzz: 28 May 2026

Top News

US Launches Fresh Strikes on Iran, Peace Talks Clouded

The US military carried out new strikes in Iran, targeting a site that it said posed a threat to US forces and commercial maritime traffic. Iran's semi-official Fars News Agency reported that three explosions were heard to the east of Bandar Abbas, a strategic port city. The attacks follow US strikes on Monday that the US called "self-defense, " targeting boats that were allegedly laying mines. Iran claimed those strikes were a violation of a fragile ceasefire agreed in early April.

Earlier in the day, President Donald Trump called an Iranian description of a peace settlement proposal "complete fabrication" and threatened again to resume full-scale attacks on the country if no deal is struck. Tehran claimed a draft agreement would reopen the Strait of Hormuz within a month, with management and routing of vessels through the oil-vital waterway to be controlled by Iran and neighboring Oman. Tehran said management would include "service fees," an apparent attempt to water down harsh global reaction to earlier statements that "tolls' would be levied. Tehran also said the US would end its naval blockade in the region and said its stockpile of enriched uranium wasn't part of the deal.

"They're negotiating on fumes," Trump said. "They just want to make a deal. I don't think they have a choice." He also denied reports that he was considering easing US sanctions on Iran. Secretary of State Marco Rubio said there had been "some progress" in negotiations and said the US will give the talks "every chance to succeed." His remarks sent Wall Street stock markets higher and oil prices lower. Benchmark Brent crude futures fell almost 5 percent to US$94.98, but rose on news of the latest attacks to US$96.32 a barrel.

Israel Orders Biggest Evacuation in Lebanon Since Ceasefire Began

Israel stepped up its assault on what it said were strongholds of Iran ally Hezbollah in Lebanon. The Israeli military has issued evacuation orders for large parts of southern Lebanon, declaring them "combat zones." It was the largest evacuation order since an ineffectual ceasefire took effect in mid-April, covering about 14 percent of Lebanese territory and 300 towns and villages. Heavy attacks in recent days have killed more than 30 people. Iran has insisted that Lebanon be part of any peace deal with the US, but rhetoric from both sides in the past week hasn't mentioned that conflict.

Top Business

PDD Misses Earnings Expectations, Says Company in 'Deep' Transformation

PDD Holdings, an online retailing giant that operates the Temu discount e-commerce platform overseas and the Pinduoduo platform in mainland China, posted a 15 percent decline in first-quarter net profit to 12.5 billion yuan (US$1.84 billion) on negative investment returns and foreign-exchange losses, falling far short of market forecasts. Revenue also missed expectations, with an 11 percent increase to 106.2 billion yuan. Operating profit, which strips out certain items, climbed 22 percent to 19.6 billion yuan. Cost of revenues rose 15 percent on higher fulfillment fees, bandwidth, server costs and payment processing fees, the Nasdaq-listed company said.

PDD said it will deepen development of "first-party brands" to improve product quality standards. It said it is expanding its logistics support, while admitting that its supply chain has faced "manufacturer constraints." Co-Chairman Chen Lei said, "This quarter marks the start of deep transformations in our business, our internal processes and our organization."

Video-App Maker Kuaishou Posts 27 Percent Drop in Profit

Kuaishou, a leading Chinese developer of a mobile app for sharing short videos, reported a 27 percent decline in first-quarter profit to 2.9 billion yuan (US$430 million), with losses overseas. Total revenue rose 3.4 percent to 33.7 billion yuan. Revenue from online marketing grew 9.3 percent from a year earlier, and sales from its Kling AI app jumped 300 percent, with average daily active users reaching 413 million. The company overseas operations turned to a loss of 31 million yuan from a year-earlier profit of 28 million yuan. Kuaishou said Kling was involved in the creation of virtual scenes and visual effects shots in the hit Chinese historical drama "Swords Into Plowshares" and the Hollywood TV series "House of David." Live streaming revenue fell 13 percent to 8.5 billion yuan. Sales and marketing expenses increased 4.4 percent to 10.3 billion yuan, and spending on research and development was up 9.8 percent to 3.6 billion yuan.

Kingsoft Posts Surge in Q1 Profit Driven by AI Growth

Kingsoft, which develops WPS Office tools to rival Microsoft Office, announced its first-quarter net profit surged 284 percent from a year earlier to 1.1 billion yuan (US$151 million), boosted by investment returns from joint ventures. Total revenue edged up 3 percent to 2.42 billion yuan. The growth was anchored by office software and services, which generated 1.6 billion yuan, up 24 percent and accounting for two-thirds of total sales. That segment was driven by monetizing its WPS AI and deeper penetration of its WPS 365. Global monthly active use grew 4 percent to 672 million, while overseas paid users jumped 64 percent to 2.85 million. Revenue from online games and businesses declined 22 percent to 803 million yuan.

Pony.ai Widens Loss in First Quarter

Nasdaq-listed Chinese robotaxi firm Pony.ai reported its first-quarter net loss widened to US$53.5 million (369.1 million yuan) from US$37.4 million a year earlier. Revenue rose 145 percent to US$34.3 million. The loss followed the company's first-ever profit in the last three months of 2025. Revenue from its robotaxi businesses surged 395 percent, with registered users on the mainland tripling. The company was operating a fleet of 1,700 vehicles in the quarter and raised its 2026 estimate to 3,500 self-driving cars from 3,000 in 20 cities around the world. Operating expenses in the first quarter rose 9.5 percent, and spending on research and development was relatively unchanged at US$47.9 million. The company has adopted a "dual-engine strategy" for this year, deepening its domestic presence in China while accelerating international expansion. Outside mainland Chinese cities, the company is beginning services in Croatia, Dubai, Singapore and South Korea, and is expanding into commercial robotruck services.

Nvidia to Invest US$150 Billion a Year in Taiwan Tech

AI chip giant Nvidia said it will invest around US$150 billion a year in Taiwan, calling the island the "epicentre" of the AI revolution. The investment will bring Nvidia closer to Taiwan Semiconductor Manufacturing, the world's largest contract chipmaker and major supplier to Nvidia. But it also will boost Nvidia's ties with other Taiwan partners including Foxconn and Quanta Computer, which all play key roles in the building AI servers and infrastructure, Reuters reported.

SK Hynix Joins Elite US$1 Trillion Club of Tech Firms

South Korean chipmaker SK Hynix joined the elite global club of about a dozen mostly technology companies with market capitalizations of US$1 trillion or more after its shares surged 11 percent on Wednesday, amid booming demand for high-bandwidth semiconductor used in AI servers. The shares have rocketed 250 percent since the start of the year. SK Hynix is a major supplier of Nvidia. Weeks earlier, rival Samsung Electronics surpassed a market cap of US$1 trillion. The two chip heavyweight account for more than 40 of South Korea's benchmark Kospi, which rose 2.5 percent on Wednesday and has doubled since the start of the year. In the US, chipmaker Micron also topped US$1 trillion in market value for the first time this week.

Economy & Markets

China's Industrial Profits Jump in April

China's industrial profits in April surged 24.7 percent from a year earlier, the fastest pace of growth since November 2023. For the first four months of this year, the Bureau of Statistics reported that profits rose 18.2 percent, led by doubled profits in computing and electronics equipment manufacturing. The oil and gas extraction industry posted an 8.1 percent gain, while auto manufacturers declined 16.8 percent and furniture makers plunged 54 percent. The data cover industrial firms with an annual core business revenue of at least 20 million yuan (US$3 million).

Changxin Technology Gets Green Light for IPO in Shanghai

The Shanghai Stock Exchange approved an initial public offering for Changxin Technology, a leading maker of dynamic random-access memory chips, on the STAR market. The company said it seeks to raise 29.5 billion yuan (US$4.1 billion), which would be the second-largest IPO on the tech-focused board. The company turned to a first-quarter profit of 24.76 billion yuan from a net loss of 2.3 billion yuan in the first half of 2025. Revenue surged 719 percent from a year earlier to o 50.8 billion yuan.

Deployment of Direct Foreign Investment in China Drops

Actual deployment of direct foreign investment in China in the first four months of the year fell 10 percent from a year earlier to 286.7 billion yuan (US$42.2 billion), according to the Ministry of Commerce. However, use of investment in technology industries rose 40 percent to a record, reflecting the nation's progress in that sector. Direct foreign investment doesn't include money invested in capital markets. Some 20,113 foreign-invested companies started up in China in the January-April period, a rise of 6.8 percent.

Hong Kong Regulators Raid Two Brokerage Firms Tied to Chinese Mainland

Hong Kong's securities regulator raided the offices of the local arms of Chinese brokerages CBB International and China Securities International as part of a probe into misconduct tied to initial share offerings, Reuters said. CBB International is an arm of China Construction Bank, and the other firm is a unit of China Securities Co. The raid is part of a larger crackdown on IPO activity that earlier exposed flaws in due diligence and listing practices. In the first quarter, IPOs in the city raised USD$14 billion.

Chinese Brands Burnish Values Globally

The value of 13 Chinese brands listed among the top 100 most valuable global brands jumped 32 percent this year from 2025, according to a new report by consulting firm Kantar. Among the heavyweights on the list are Tencent, Alibaba, Huawei and Haier. Additionally, 14 Chinese brands are listed in sub-rankings in the fields of alcohol, apparel, automobiles, food and beverages, media and entertainment, retail, and home care. They include Wuliangye, Anta, BYD, Nongfu Spring, WeChat, Pinduoduo. The report said Chinese brands excel at making decisive judgments and acting swiftly to capture emerging trends. It also said this year's list sends a clear signal that AI is rapidly reshaping the global brand value system, with brands unable to adapt to AI-driven transformations are losing their competitive advantage.

Corporate

VNET Reports Q1 Loss Despite Strong Revenue Growth

Nasdaq-listed VNET, China's largest private, carrier-neutral Internet and data center service provider, reported a 19.8 percent year-on-year increase in first-quarter revenue to 2.7 billion yuan (US$372.2 million). However, the company said its net loss widened to 531.8 million yuan from 237.6 million yuan a year earlier, primarily attributable capital transactions-related income tax expenses. Revenue in its wholesale internet data center business increased 58 percent, but the retail side of that segment rose only 5.4 percent. VNET said it has secured an investment from an affiliate of CATL, the Chinese battery-maker. The company said it expects full-year revenue of up to 11.8 billion yuan.

Pharmaron Unveils US$694 Million Investment in New Production Sites

Beijing-based Pharmaron announced plans to invest 5 billion yuan (US$694 million) to construct two new pharmaceutical facilities. The company will build a commercial drug production and research center in Hangzhou, alongside a project in Shaoxing capable of producing 200 tons of pharmaceutical intermediates and active pharmaceutical ingredients a year. The new sites will focus on small molecule drugs and treatments for obesity and diabetes. The manufacturing expansion follows Pharmaron's previously established production partnership with global pharmaceutical giant Eli Lilly for orforglipron, an oral weight-loss drug.

Alipay Debuts AI Wallet, Claiming a World First

Ant Group's Alipay mobile payment platform released what it says is the world's AI Wallet, enabling users to manage and control purchases made by AI agents. The company also unveiled Token Pay, a service designed to meet token-payment needs and help AI firms streamline user subscriptions and one-click token top-ups. Alipay said its system of allowing users to make secure transactions through AI agents via voice commands now supports 95 percent of general agent frameworks, including Qwen, JVS Claw, Claude Code, and Hermes Agent.

DSC Reveals Profit Decline in US Filing for IPO

DSC, a Chinese provider of operating systems for used-car dealers on the mainland, disclosed a 29 percent plunge in 2025 revenue in a filing ahead of an initial public offering on New York's Nasdaq market, Reuters reported. Revenue rose to 677.1 million yuan (US$99.8 million) from a year earlier, and its net loss narrowed to 94.6 million ⁠yuan from 157.1 million yuan. The company said its platform was used by more than 228,000 active ⁠customers last year.

JD.com Denies Interest in Buying UK's The Very Group

Chinese e-commerce giantJD.com denied media reports that it is considering a 2 billion pound (US$2.7 billion) bid for British online retailer The Very Group. Private equity firm Carlyle, owner the UK company, said in January that it is planning to sell the company.

Didi Apologizes for Crash of Ride-Hailing App

Ride-hailing operator Didi Chuxing apologized for a brief system crash of its mobile app around 5 pm on Tuesday, explaining that it was caused by a cloud service provider's network failure. Numerous users reported disruptions in trying to book rides and payment-processing services.