Daily Buzz: 31 July 2026

China's Leadership Pledges Support for Property, Markets

China's top leadership, mapping out strategy for the second half of the year, pledged measures to stabilize the property market and strengthen confidence in capital markets. President Xi Jinping presided over a meeting of the Politburo that promised a package of debt resolution measures and market reforms to improve resilience and investor confidence. Policymakers said China will maintain a more proactive fiscal policy and a "moderately loose" monetary policy, and will stress an expansion of domestic demand, quality supply of consumer goods and acceleration of the "AI Plus" initiative to develop digital technologies.

The meeting came amid an economic backdrop of strong exports, world-class achievements in the development of AI, robotics and biotech, softer consumer spending and a property sector struggling to find a bottom to a five-year slump. Wang Qing, a senior economic analyst at Golden Credit Rating International, said in a research note that the meeting's call to "strengthen counter-cyclical adjustments" indicates that policies going forward will place greater emphasis on supporting growth.

IPO Fizzles at the Starting Gate

Shares in China's Zhongji Innolight, the world's largest producer of optical transceivers used in AI data centers fell 2 percent from their offer price in their Hong Kong trading debut on Thursday, following a HK$53.4 billion (US$6.8 billion) initial public offering that was the biggest in the city in seven years. Innolight succumbed to a global tech selloff triggered by investor concerns about the sustainability of the AI bubble, ending a string of strong IPO debuts by technology companies in Hong Kong and Chinese mainland markets.

Innolight, a supplier to Nvidia, said proceeds from the sale will go toward research and development, global expansion, supply-chain upgrades and possible acquisitions. The company reported a fourfold increase in first-quarter profit to 6.3 billion yuan (US$934 million) on tripled revenue of 19.5 billion yuan. About two-thirds of revenue came from the US. The ⁠listing was the biggest in Hong Kong since Alibaba raised US$12.9 billion in a 2019 IPO and the second-largest in Asia this year after memory chipmaker CXMT's US$8.6 billion IPO debut in Shanghai on Monday.

US Conducts 'Heavy Wave' of Strikes Against Iran

The US military completed what it called a "heavy wave" of strikes against Iran in retaliation for a thwarted Iranian ballistic-missile attack on a US air base in Jordan and strikes against ships in the Strait of Hormuz. Jordan said it shot down five Iranian missiles over its territory on Thursday. Iran pledged a strong response to the US attacks and said it maintains "full control" of the strait. The latest flareup of hostilities breaks a several-day lull in fighting, dashes hopes for any immediate return to peace talks and sent oil prices higher. The war that President Donald Trump said at its start would last only a few weeks is now in its fifth month. Global benchmark Brent crude futures were trading at about US$90 a barrel in New York.

Russia Fires Ballistic Missiles at Ukrainian Cities

Russia launched missiles at Kiev and other Ukrainian cities. Russia's Ministry of Defense, in a post on Telegram, said it carried out a "massive strike using long-range precision weapons from land, air, and sea" as well as attack drones on military sites across Ukraine. One unidentified projectile exploded in a Polish village not far from the border with Ukraine. Kiev reported at least eight people were killed, adding to a July civilian death toll already the highest since the war started more than four years ago.

Hamas Agrees to Disarm if Israel Military Withdraws from Gaza

Gaza's Hamas group said it has agreed to disarm under a new agreement with US President Donald Trump's "Board of Peace" that also calls for Israeli withdrawal from the enclave. Trump hailed the agreement as a " critical step towards Gaza finally being governed by a new Palestinian government." Disarmament of Hamas militants is part of last year's US-brokered Gaza ceasefire, which also calls for reconstruction of the war-torn territory. The plan calls for Israeli forces in Gaza to be replaced with an international force that will work with a new Palestinian police force. Israel hasn't commented on this latest development.

Top Business

Wall Street Heavyweights Amazon, Apple Post Earnings Gains

Amazon, which has expanded from online retailing into AI services, reported second-quarter net income tripled from a year earlier to US$62.6 billion on surging growth in demand for AI cloud services. Revenue rose 20 percent to US$201 billion. The company's free cash flow, an indicator of ability to fund capital spending internally, turned to an outflow of US$7.6 billion from a year-earlier inflow of US$18.2 billion, primarily on investments in artificial intelligence. Its Amazon Web Service (AWS) delivered a 37 percent sales increase to US$42.2 billion, beating estimates. Advertising rose 26 percent to US$19.8 billion. Capital spending in the quarter rose to US$54.2 billion from US$32.1 billion a year ago. The company kept its 2026 capex estimate at US$200 billion. The results were announced after the bell on Wall Street. Amazon shares in after-hours trading in New York rose 9 percent.

Apple beat headline forecasts for profit and revenue in its fiscal third quarter ended June 27, driven by a 22 percent increase in iPhone sales. However, revenue from China, iPad sales and services came in below estimates. Net income climbed to US$29.8 billion from US$23.4 billion a year ago. Revenue rose 16 percent to US$109.4 billion The company's weak earnings guidance for the current quarter, based on shortages and rising prices of memory chips, sent Apple shares plunging 6 percent in extended trading in New York. Apple Chief Executive Tim Cook has called the global memory crunch the industry's "hundred-year flood," which has already forced the company to raise prices for Macs and iPads.

Samsung Issues Final Q2 Report, Confirming 14-Fold Surge in Net

South Korean chipmaking giant Samsung Electronics verified earlier preliminary figures for second-quarter earnings in a full report that showed a 14-fold increase in net profit to 71.6 trillion won (US$50 billion) and a 130 percent revenue surge to 171.5 trillion won, on strong global demand for AI memory. The strong chip profits offset a 700-billion-won loss in Samsung's smartphone business. The company's shares dropped 0.7 percent in Seoul, and rival SK Hynix lost 5.6 percent, continuing a recent selloff.

Yum China Profit Rises 14 Percent, New Outlets Opened

Yum China, which operates KFC, Pizza Hut and Taco Bell outlets on the Chinese mainland, said net profit in the second quarter rose 14 percent from a year earlier to US$244 million on a revenue increase of 13 percent to US$3.1 billion. Same-store sales grew 1 percent, and delivery sales rose 26 percent. The company added a net 560 outlets, raising the total to 19,297, with 18 percent under franchise management. Yum China said it is aiming for more than 20,000 outlets by the end of the year. The company said it will close the acquisition of the Pizza Hut brand from its US parent in August and plans to secure a US$1.2 bridge loan for financing.

China's Power Grid Giants Invest Combined US$59 Billion

State Grid and China Southern Power, China's two largest power grid operators, ramped up first-half spending on fixed-asset investment to a combined 400 billion yuan (US$59 billion). The investment highlights Beijing's efforts to accelerate power infrastructure development and support the country's energy transition. State Grid invested 310 billion yuan in the first six months, up 13 percent from a year earlier. China Southern Power invested 89.3 billion yuan, a 15 percent rise. Both utilities said they will continue expanding investment.

Economy & Markets

Zijin Gold Scraps Plan to Acquire Canada's Allied Gold

Leading Chinese mining company Zijin Gold International said it terminated plans to acquire Canada's Allied Gold in favor of buying 12.8 million new shares, or a 9.2 percent stake, in the Toronto-based company, for about US$295 million. The two companies said they mutually agreed to terminate an earlier agreement on full acquisition because there was "no reasonable likelihood" that its terms could be met within a reasonable period.

US Economic Growth Slows

The US economy in the second quarter grew at an annual rate of 1.5 percent, slowing from 2.1 percent growth in the first quarter. Consumer spending rose but imports outweighed exports, widening the nation's trade deficit in May to a nearly one-year high of US$77.6 billion. The Commerce Department also said its personal consumption expenditures price index, the measure of inflation favored by the Federal Reserve, rose 3.7 percent in June, dropping from 4.1 percent in May as oil prices declined from their Iran war highs.

Japan, Bitten by High Energy Costs, Pares Growth Forecast

Japan, Asia's second-largest economy, pared its economic for the fiscal year that began April 1 to 0.9 percent from 1.3 percent as the high price of oil from the continuing Middle East conflict ripples across consumer prices and corporate costs. Japan heavily relies on foreign oil imports. The government is projecting 2.2 percent inflation in the current year, rising from an earlier forecast of 1.9 percent. However, the government said it expects 1.1 percent growth for the next fiscal year.

Six Chinese Films Withdrawn Ahead of 'Spider Man,' 'The Odyssey'

Six Chinese film producers have withdrawn movies from the summer lineup, the peak cinema season, amid weak box office receipts and pending competition from the much-hyped Hollywood blockbusters "Spider-Man: Brand New Day" and "The Odyssey," due to open in China in August. The withdrawals include "The Decisive Moment," "Three Kingdoms: The Beginning," "Just Kidding" and "Battle of Penghu." The producers of the "Three Kingdoms" said the film generated receipts of only 87 million yuan (US$13 million) after its initial release on July 10. Perhaps reflecting the arrival of the Hollywood films, movie data provider Maoyan predicts the summer box office will increase by 600 million yuan from last year to 6 billion yuan.

China Posts Double-Digit Growth in Gaming Revenue

Revenue in China's gaming industry rose 12 percent in the first half to 188 billion yuan (US$26 billion), according to a report issued at a ChinaJoy forum. China's total domestic player base reached a record 684 million, and self-developed Chinese titles achieved US$12 billion in overseas revenue, a record 30 percent surge from a year earlier.

Corporate

ByteDance Restructures AI Business

ByteDance has launched a major organizational restructuring to integrate AI services. Under the move, its Feishu productivity platform and Doubao AI teams will be merged into a new Doubao product unit led by Doubao head Zhao Qi. The company will also combine Feishu's go-to-market team with its Volcano Engine cloud service unit. The restructuring follows similar moves by Tencent and Alibaba as China's technology giants race to develop AI workplace platforms.

Toyota, BMW Report Sales Declines, Citing China Market

Japan's Toyota Motor said first-half global vehicle production and sales fell for the first time in two years, citing weaker demand from China. Sales dropped 2.9 percent to 5 million vehicles, with a 17 percent plunge in China. Production sank 1.2 percent to below 4.9 million.

German automaker BMW said second-quarter global deliveries fell about 5 percent, dragged down by a 30 percent decline in China. The slump increases restructuring pressure on the company as Chinese electric-car makers gain share at home and expand in Europe.

CATL Energy Storage Revenue Surges, Rivals Close In

Contemporary Ampere Technology's revenue from its energy-storage business in the first half jumped 88 percent to 53 billion yuan (US$8 billion), approaching one-quarter of group sales. CATL's dominance in the sector is being challenged. Carmaker BYD and Sungrow have jointly secured a contract for an Abu Dhabi project where CATL had been the preferred supplier.

Fosun International Flags 172 Percent Profit Surge

Shanghai-based Fosun International, a multinational conglomerate with interests in fashion, food and beverages, pharmaceuticals, mining, insurance, healthcare and tourism, said it expects to post first-half profit of up to 1.8 billion yuan (US$266 million), which would be a year-on-year increase of 172 percent. The company, which gave no revenue projection, cited a substantial increase in profit from industrial operations.

HashKey Seeks to Acquire Singapore's Asia Pacific Exchange

HashKey, a Hong Kong based financial-technology platform, said its wholly owned Singapore subsidiary has entered a framework agreement to acquire the entire equity interests in Asia Pacific Exchange, located in Singapore. HashKey said the deal is subject to due diligence and regulatory approval. HashKey is listed in Hong Kong. The Asia Pacific Exchange is a derivatives trading platform that includes cryptocurrencies.

Midea Fields Rush of European Orders for Air Conditioners

Chinese home appliance supplier Midea said it is receiving "explosive demand" for air conditioners from Europe as the continent struggles under record-breaking heat waves. Midea said its two factories in Wuhu received orders for 200,000 units within a month. To keep up with demand, the company said it has opened a new production line, turning out 20,000 units in four days and shipped a batch to France within seven days. China's overall exports of air conditioners to Europe in the first half of the year jumped 43 percent from a year earlier.

MGM China Reports Q2 Revenue, Profit Declines

Hong Kong-listed MGM China, which operates casinos and hotels in Macau, said second-quarter revenue fell 0.5 percent to HK$8.63 billion (US$1 billion). The only figure it gave for profit was after financing costs, taxes, depreciation and amortization, which fell 7.4 percent to HK$2.3 billion. The company said it was operating 750 gambling tables and about 2,000 slot machines as of June 30.

Honor Says IPO Progress Continues

Smartphone maker Honor denied market rumors that it has halted plans to go public in a Chinese mainland initial public offering. In a filing with the China Securities Regulatory Commission, the company said its advisor Citic Securities is working on outstanding issues, including fundraising projects and capital needs. Honor is seeking to transform itself into an AI device ecosystem. In 2025, the company announced a five-year, US$10 billion investment plan to build an open AI terminal ecosystem.