Daily Buzz: 29 January 2026

Midas Touch Triggers Gold Rush in Shanghai, Hong Kong

Shanghai and Hong Kong residents are pouring into gold shops this week to buy the precious metal as the global price touched a record US$5,4000 an ounce on Wednesday, Reuters reported. The buyers are betting that gold prices will continue to rise, after a 65 percent surge in 2025. Gold is considered a safe harbor in times of uncertainty. On the flip side, some consumers are selling some of the gold they hold to cash in on high prices. French bank Societe Generale predicted this week that gold will hit US$6,000 by the end of this year.

Major gold retailers, including Lao Feng Xiang Jewelry, Lao Miao Gold and Chow Tai Fook, have raised their prices. Shanghai gold seller Zhao Jinhao, who works at a jewelry mall, told Reuters, "There are still quite a lot of people buying, and it's still heading upwards." In Hong Kong, Simon Littmann, the executive manager of Swiss Investors Corp, which trades in precious metals, said business this month is the best in 20 years. Central banks are also big buyers. Last year, the People's Bank of China reported additions of bullion to its reserves every month.

China is the world's biggest producer and consumer of gold. Shares in gold miners rose in trading on Wednesday. Zijin Mining, China's largest gold miner, surged 3.1 percent in Hong Kong.

Trump Warns Iran to Make Nuclear Deal Amid US Naval Buildup

US President Donald Trump warned Iran that "time is running out" to negotiate a nuclear deal as Washington moved a carrier strike group and warships to the Gulf. He said naval forces are "moving quickly, with great power, enthusiasm and purpose" toward Iran. In response, Iranian Foreign Minister Abbas Araghchi said the country's armed forces were ready "with their fingers on the trigger" to respond to any acts of aggression. Iran insists its nuclear program is entirely peaceful and has repeatedly denied accusations that it is seeking to develop nuclear weapons. Israel and the US last year bombed Iranian nuclear facilities. "The next attack will be far worse," Trump warned on Wednesday. Global benchmark Brent crude prices settled 1.2 percent higher at the close of trading in New York to US$68.40 per barrel.

UK Prime Minister Says China Trip History-Making

British Prime Minister Keir Starmer, arriving in Beijing for an official visit to China, told the 50-strong business entourage accompanying him that they are a delegation making history. "You're part of the change that we're bringing about," he told UK business leaders. "We are resolute about being outward-looking, about taking opportunities, about building relationships. I hope we can make some progress." The first trip by a UK leader in eight years is aimed at strengthening trade ties.

Ukraine Condemns Deadly Russian Attack on Passenger Train

Ukrainian President Volodymyr Zelensky condemned a Russian drone attack on a passenger train in the Kharkiv region that killed at least five people and set a carriage alight. The attack was a departure from recent Russian assaults on Ukrainian energy infrastructure that have left millions of people across the country without heating, electricity and sometimes water during sub-freezing winter temperatures. A second round of trilateral talks between Russia, Ukraine and the US to end the four-year war was scheduled to start this week. US Secretary of State Marco Rubio said on Wednesday that competing "territorial claims on Donetsk" in the eastern industrial heartland of Ukraine are the key remaining issue in talks.

Top Business

Busy Ming IPO Debut: Confidence in China Consumer Market

Shares in Busy Ming, which claims it was China's biggest snack and beverage retailer by sales in 2024, surged 69 percent from their offer price in their trading debut in Hong Kong on Wednesday. The Changsha-based company raised HK$3.67 billion (US$470 million) in an initial public offering that was 1,900 oversubscribed by retail investors. Cornerstone investors were Tencent, Singapore fund Temasek and US private equity firm BlackRock. The IPO was seen as a test of investor sentiment toward the mainland consumer market, which softened last year. Busy Ming said it will use proceeds from the share sale to improve its supply chain and upgrade its network of 20,000-plus shops, largely located in more rural areas.

China Approves First Imports of Nvidia H200 Chips

China has approved the first batch of imported Nvidia H200 AI chips, Reuters reported, citing two people familiar with the matter. The approval, which comes the same week as a visit to China by Nvidia Chief Executive Jensen Huang, covers 400,000 of Nvidia's second-most advanced chips to be delivered to Chinese internet giants ByteDance, Alibaba and Tencent. Each chip costs at least about US$30,000. The US late last year removed restrictions on exports of H200s to China despite reservations about sharing its advanced technology with China. There have been some concerns that China wouldn't welcome the chips, given its drive to develop self-reliance in chipmaking and end dependence on foreign suppliers.

SK Hynix Doubles Profit, US AI Giants Beat Expectations

South Korean chipmaker SK Hynix reported a more than doubling of 2025 operating profit to 47.21 trillion won (US$30 billion) as a shortage of advanced AI memory chips lifted prices. For the December quarter, the company posted record revenue of 32.82 trillion won and a 137 surge in operating profit to 19 trillion won.

In a raft of fourth-quarterly earnings reports from US AI tech giants released after the end of trading in New York, Tesla, Microsoft and Meta beat market forecasts. In Europe, Dutch chip-making equipment firm ASML breezed past analysts' predictions with record quarterly orders for advanced AI chips.

Separately, Japan's SoftBank is in talks to invest as much as US$30 billion more in US-based OpenAI, creator of ChatGPT, after a US$41 billion investment in December, the Wall Street Journal reported. The investment giant made headlines in November when it dumped its entire stake in Nvidia for US$5.83 billion and turned its focus to OpenAI.

Economy & Markets

German Corporate Investment in China Hits 4-Year High

Investments by German companies in China hit a four-year high in 2025, Reuters reported, citing data from IW German Economic Institute. The investment from Europe's largest economy signals a continuing shift away from the US amid the aggressive trade and geopolitical policies of the Trump administration. The institute said German corporate investment rose to more than 7 billion euros (US$8 billion) in the first 11 months of 2025, up 56 percent from a year earlier.

US Federal Reserve Holds Rates Steady

The US Federal Reserve held rates steady on Wednesday, defying President Donald Trump's consistent pressure to lower them. Fed Chairman Jerome Powell told reporters after the decision was announced that he remains committed to an independent central bank. Earlier this month he revealed that he is under investigation by the Justice Department related to a major renovation of Fed headquarters in Washington, calling the probe an effort to intimidate him. Powell, whose term as chairman ends in May, had this advice for his successor, "Stay out of elected politics."

China Debt Ratio Grows

China's debt ratio – or government debt as a proportion of gross domestic product – rose by 11.8 percentage points last year to 302 percent, Yicai Global reported, citing research from a think tank under the Chinese Academy of Social Sciences. The change reflects slower nominal growth, which measures goods and services produced in an economy without accounting for inflation. The Global Times reported that China's debt ratio remained significantly lower than the Group of 20 average as Beijing ramped up fiscal support to drive growth and industrial restructuring. Economists generally hold that the debt ratio isn't as important as how efficiently a country uses debt to develop its economy.

Resale Homes on the Market in Shanghai, Beijing Drop

The number of resale homes on the market in Shanghai and Beijing is continuing to decline as homeowners shy away from selling properties at currently low prices. Shanghai has about 336,800 existing homes listed for sale this week, according to Online Real Estate, returning to levels of a year ago. Beijing's listings topped 125,300 units, down from a peak of 143,200 units in September, according to real estate agency Ke Holdings. Lower prices are the fallout of a real estate slump that began in 2021 amid a liquidity crisis in the property development sector.

Vanke Gets Another Lifeline From Largest Shareholder

China Vanke, the once leading mainland property developer now mired in debt, said its largest shareholder Shenzhen Metro agreed to provide it an additional loan of up to 2.4 billion yuan (US$339 million) as it continues to negotiate new bond terms with creditors. The three-year loan will carry an interest rate of 2.34 percent. It's the latest in a series of lifelines extended by Shenzhen Metro to Vanke, which has an estimated US$50 billion in outstanding foreign and domestic debt.

Great Microwave Forecasts Profit Surge

Great Microwave Technology, a Chinese supplier in commercial satellite and specialty electronics, forecast a sharp rise in 2025 profit, citing stronger demand for integrated circuits and faster market expansion. The company said in preliminary earnings guidance that it expects net profit to surge as much at 642 percent to up to 145 million yuan (US$21 million). Based on the forecast, fourth-quarter net profit is estimated as high as 41.3 million yuan. Great Microwave has accelerated expansion in satellite communications, where it supplies radio-frequency front-end chips.

Kingsoft Scales Up Business in East China

Kingsoft Office, developer of WPS Office, said it is expanding its footprint in the East China market with its Enterprise Brain version of the software taking on clients like AI chip firm Cambricon. WPS, touted as a high-value replacement for Microsoft Office, now includes AI technology to "understand" the internal logic and complex business relationships of corporate data.

Company Vice President Huang Zhijun said high-end manufacturing, commercial services and retail sectors are the growth engines for sales in East China.

Ganfeng Lithium Flags Return to Profit

Ganfeng Lithium, in preliminary earnings guidance, said its 2025 net profit will come in at between 1.1 billion yuan (US$158 million) and 1.7 billion yuan, turning from a loss of 2.1 billion yuan in 2024. Xinyu-based Ganfeng is the world's second-largest lithium processor. The lithium industry has become a hot sector on rising demand for the material used in making batteries that power electric cars and consumer electronics.

Hanjian Heshan to Acquire Specialty Plastics Maker

Beijing-based Hanjian Heshan Pipeline said it plans to acquire a 52.5 percent stake in Xingfu New Material, a company listed on China's National Equities Exchange and Quotations. Hanjian Heshan is primarily engaged in the production of concrete pipes for water conservation and infrastructure projects. Xingfu New Material produces a specialty plastic known for its high heat resistance, corrosion tolerance and biocompatibility, and is used in aerospace, new energy vehicles, medical implants and humanoid robotics.

VW China Venture May Produce Longer-Range Models

Volkswagen Anhui, an electric car venture with China's JAC Motors, is considering producing extended-range models to meet current trends in a competitive market, Stefan Timmerman, head of the venture's digital sales and services, told Yicai Global. The venture in VW's third in China, after ones with FAW and SAIC Motor.

Baidu Merges Consumer App Units in AI Drive

Tech giant Baidu merged two of its consumer app businesses into a new AI-focused unit, the South China Morning Post reported. The company combined its online document-sharing business Wenku and consumer-oriented cloud storage operation Wangpan to form the Personal Super Intelligence Business Group, marking Baidu's biggest reorganization in two years. The move reflects increasing competition in China's consumer market for artificial intelligence applications.

BYD Pushes Into Europe at Tesla's Expense

BYD, China's largest electric carmaker, had a 267 percent surge in new car registrations in Europe last year to 187,657, while rival Telstra registrations fell 27 percent to 238.656, according to data this week from the European Automobile Manufacturers Association. BYD has set a target for foreign sales of vehicles this year at 1.3 million, a 25 percent jump.

Pony.ai Links Up With Travel Firm

Pony.ai said it has formed a partnership with Beijing-based ATBB Travel & Express Service to deploy and operate robotaxi services in China's biggest cities, with a focus on airport transfers and business travel. They plan to establish a fleet powered by Pony.ai's seventh-generation self-driving technology that will operate on routes linking airports, high-speed rail stations and urban centers. In 2025, Pony.ai secured China's first citywide permit for fully driverless robotaxi operations in Shenzhen and expanded services across Beijing, Guangzhou and Shanghai. It plans to expand its fleet to 3,000 vehicles by the end of this year.