Daily Buzz: 4 February 2026

US Shoots Down Iranian Drone Ahead of Nuclear Talks

A US aircraft carrier shot down an Iranian drone that it said "aggressively approached" off Iran's southern coast in the Arabian Sea on Tuesday, just days before US-Iranian nuclear talks are scheduled. In a separate incident on Tuesday two Iranian gunboats approached a US-flagged chemical tanker in the Strait of Hormuz and threatened to board and seize the ship. The US Central Command said no one was injured and no equipment damaged in either incident. Global oil prices rose, with benchmark Brent crude up 2.6 percent to US$68 a barrel.

Friday talks were scheduled to be held in Istanbul, but Iran is now demanding they be held in Oman and that the scope of the negotiations be narrowed to nuclear issues and not include US proposals to limit Iranian ballistic missile production. The US wants Iran to end its nuclear weapons development, but Tehran insists its nuclear program is for peaceful purposes only. The talks would be the first since President Donald Trump moved a military strike force close to Iran last month amid threats of an attack if no nuclear deal is reached.

Russia Resumes Strikes on Ukraine as Peace Talks Loom

Russia resumed attacks on Ukrainian energy infrastructure with a record number of ballistic missile strikes on Tuesday, following a pause of several a days instigated at the personal request of US President Donald Trump to spare residents from enduring sub-freezing temperatures without heat or electricity. The cold snap is continuing. Meanwhile, Moscow confirmed the next round of trilateral talks between the US, Ukraine and Russia seeking the end the four-year war will be held in Abu Dhabi today and Thursday. The recent first round didn't produce a breakthrough on the sticky issue of who will control what Ukrainian territory under a peace agreement.

Separately, Ukraine said Elon Musk's efforts to stop Russia from using his company's Starlink satellites for drone attacks have "delivered real results." Russian also has used Starlink to provide its military front line with internet access. Despite Musk's intervention, drone attacks last week on Ukrainian passenger train and a miners' bus caused multiple deaths.

Top Business

China's 'Red Bull' Makes Lackluster Trading Debut in HK

China energy-drinks giant Eastroc Beverage fizzled in its debut on the Hong Kong exchange on Tuesday, with shares closing almost flat. The listing was seen as test of investor confidence in the mainland consumer market. Eastroc's Shanghai shares fell 1.2 percent. The Shenzhen-based company makes a domestic version of Austria's popular Red Bull energy drink. Its HK$10.1 billion (US$1.3 billion) initial public offering – largest in the city so far this year – was priced as HK$248 a share. Eastroc was the mainland's largest drinks company by revenue from 2021-24, the South China Morning Post reported. Profit in the first nine months of last year rose 39 percent to 3.8 billion yuan (US$541 million). Full-year earnings haven't been released yet.

China Bans Hidden Door Handles on Cars

China has become the first country to ban hidden door handles on cars, a trend first popularized by Tesla electric cars. The crackdown comes after two fatal crashes last year involving Xiaomi brand electric vehicles, when power failures prevented the electronically controlled doors from being opened to rescue passengers. Starting on January 1, 2027, all cars in China must come equipped with a manual release system on both inside and outside, the Ministry of Information Technology said. It also set specifications on handle recesses to allow easy access. Hidden handles now feature on the 100 best-selling new energy vehicles on the mainland. Tesla's door handles are also under investigation by US and European safety regulators.

Spain to Bar Young Users From 'Digital Wild West'

Spain said it will ban social media for under-16s and require platforms to employ strict age verification tools, joining Australia, France and Denmark in moves to curb the influence of digital platforms on children. Tiktok, Facebook, Instagram, Snapshot and X are among social media platforms fighting restrictions. Prime Minister Pedro Sánchez said the ban is aimed at protecting children from the "digital Wild West," where they are exposed to addiction, abuse, pornography, manipulation and violence. In December, Australia became the first country to implement a ban on users under 16 years of age, and France and Denmark have announced plans to limit use for those under 15.

Economy & Markets

Shanghai Targets 5 Percent Growth in 2026

Shanghai is aiming for about 5 percent growth in 2026, the city government said on Tuesday during the fourth session of the 16th Shanghai People's Congress. At the meeting, Mayor Gong Zheng outlined plans to boost foreign investment, global tourism and major infrastructure projects. The city expects local budget revenue to rise 2 percent this year, and research and development spending to reach 4.6 percent of gross domestic product. The city also pledges to keep urban unemployment under 5 percent and growth in consumer prices near 2 percent. Key 2026 projects include spending 255 billion yuan (US$36.8 billion) to expand Metro Lines 21, 23 and the Chongming Line, and continuing work on the Shanghai-Nantong Railway and high-speed rail to Chongqing. Tourism development will focus on the Huangpu River and Suzhou Creek waterfronts, and the Pudong International Tourism and Resorts Zone.

China Tech Shares Drop on Tax Rumors

Shares of Tencent, Alibaba, Baidu and other big Chinese tech companies fell on Tuesday amid rumors that value-added taxes on internet services would be raised. The market speculation cited the high profitability and relatively low tax burden of the sector. Industry insiders, however, quickly dismissed the claims. A Shanghai-based game company spokesperson told 21st Century Business Herald that no official documents or consultations have been held regarding tax changes. A Guangdong gaming executive called the reports "untrue." In Hong Kong trading, Tencent closed 2.9 percent lower, Alibaba was down 1.4 percent and Baidu shed 3.6 percent. Shares of Bilibili and Kuaishou Technology also fell.

Separately, AI-related shares tanked in New York trading amid concerns about rising competition and huge, often debt-financed, outlays for development costs. The tech-heavy Nasdaq lost 1.4 percent. Bitcoin, often seen as a barometer on the tech sector, dived below the US$73,000 level for the first time since November 2024.

US Plans Minerals Stockpile to Counter China

US President Donald Trump is poised to launch a strategic stockpile of industry-critical minerals, with US$12 billion in initial funding. Bloomberg News reported. The action is aimed at insulating manufacturers from supply shocks and reducing reliance on China for rare earths and other metals. The plan involves funding from both private capital and the US government, but no details have been announced. China is the world's largest producer of rare earths used in carmaking, electronics and other advanced industries. China has not responded yet. Beijing tightened exports licenses on the minerals for a time last year during trade tensions with Washington.

Australia Lifts Interest Rates, Bucks Trend

Australia's central bank raised its benchmark interest rate for the first time in two years, bucking the trend toward lower rates in the US, UK and Canada. The Reserve Bank raised its policy rate by a quarter of a point to 3.85 percent, saying the economy is growing faster than expected and inflation is likely to remain above target for some time. Analysts are predicting a further rate rise this year.

Corporate

India, Ant in Talks on Digital Payment Tie-Up

India is in talks with China-related Ant International to allow digital payments platform Alipay+ to be linked to India's leading instant payments system for cross-border transactions, Reuters reported. The move would allow Indian tourists to make earlier payments by using India's Unified Payments Interface with merchants in countries that have signed up with Alipay+. Ant International, which was founded by Alibaba affiliate Ant Group, is headquartered in Singapore and operates independently of its China parent.

Huatai Securities to Issue Bonds for Global Expansion

Chinese brokerage Huatai Securities plans to raise up to HK$10 billion (US$1.3 billion) through the issuance of zero-coupon convertible bonds to support its international expansion, the South China Morning Post reported, citing a stock exchange filing. The bonds will carry no interest and mature in February 2027. Investors will be able to convert them into Huatai's Hong Kong-listed shares from the day after issue, at a price of HK$19.70 per share. Full conversion would expand Huatai's share pool by about 508 million shares, or 5.6 percent of total share capital across Hong Kong and Shanghai.

ByteDance Snaps Up Prime Beijing Land

Tech giant ByteDance, which operates TikTok, has acquired a commercial land site in Beijing's Zhongguancun Science Park zone for 2.8 billion yuan (US$404 million). It isn't clear what ByteDance intends to do with the acquisition. The purchase comes as ByteDance ramps up investment in AI and reflects a broader trend of major tech firms locking in scarce core-city commercial land in the capital.

Jereh Oilfield Secures Fourth US Contract for Generators

Yantai-based diversified energy company Jereh Oilfield Services said it has secured the fourth order in two months for its gas turbine generators from a US data center developer. The company said the deal is valued at US$182 million. The client wasn't identified.

Three China Chip-Equipment Makers Rank in Global Top 20

China's Naura Technology, Advanced Micro-Fabrication Equipment and Micro Electronics Equipment were among the world's top 20 semiconductor equipment makers last year in a ranking by Japanese research firm Global Net. It's the first time so many Chinese companies have placed in the top tier. Naura ranked fifth, Advance Micro-Fabrication was 13th, and Micro Electronics placed 20th.

Zeekr Confirms Pre-Release 8X Leaks

Chinese electric automaker Zeekr confirmed details leaked ahead of schedule about its new high-performance flagship SUV, the Zeekr 8X. The company said the premature disclosure has disrupted the planned rollout. The 8X has entered pre-production testing. Zeekr said it aligns major announcements with actual vehicle development to provide accurate information for users and the media. The 8X is expected to strengthen Zeekr's position in the high-end of the market.