Daily Buzz: 9 October 2026

Top News

China, EU Discuss Trade Spat Over Hybrid Car Exports

Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maroš Šefčovič are holding talks in Beijing over Chinese hybrid vehicle exports to Europe. Brussels has warned it will cap imports of the vehicles and impose higher tariffs on any cars above that ceiling if no voluntary agreement on curbing exports is reached. The EU alleges that Chinese subsidies make their vehicles cheaper and undercut EU carmakers – an allegation Beijing rejects. The EU is trying to whittle a record trade deficit with China, which hit 360 billion euros (US$404 billion) last year and widened 9 percent in the first six months of this year. Chinese carmakers held about 12 percent of Europe's new car sales in August and accounted for about one in three plug-in hybrid sales in the region. "We hope the European side ​can work toward solutions together with China," foreign ministry spokesperson ‌Mao ⁠Ning said at a regular news briefing.

Separately, BYD, China's largest new energy carmaker, said geopolitics is the biggest stumbling block in its goal to become the world's biggest automaker within five years. Executive Vice President ​Stella Li told the Milken Institute ​Asia Summit in Singapore, "When we do business, we want ​to do something and have certainty and visibility, but ⁠with geopolitics, you never understand what's the angle and ​what they are doing." BYD's European sales surged to more than 100,000 deliveries in the first five months of this year.

Amid European calls for a stronger yuan, the People's Bank of China said it ​has never kept the nation's currency artificially weak for competitive advantage. European policymakers want a stronger yuan to help curb China's record trade surplus and ‌export surge. In a lengthy policy statement, the central bank said, "China neither needs nor intends to obtain a trade-competitive advantage through exchange-rate depreciation, ​and has never engaged in competitive currency depreciation."

Trump Halts Pre-Election Attacks on Iran, Oil Transit Flows Falter

President Donald Trump announced on Thursday that the US won't attack Iran before midterm elections on November 3. The war, now in its seventh month, has become an issue in the elections, which will determine control of Congress, because of the high gasoline and diesel prices it has triggered for consumers. A Reuters/Ipsos poll in August showed just 31 percent of Americans supported US military action against Iran. The US Treasury Department announced additional sanctions against Iran on Thursday, impacting 17 vessels alleged to be part of a "shadow fleet" that Iran uses to ship its oil around the world.

Separately, maritime tracker Kpler said the number of vessels transiting the ‌Strait of Hormuz has fallen to its lowest in more than two months, after attacks on tankers in the waterway last week reached their highest since the war began on February 28. On Tuesday, it said, only seven commodity vessels passed through ​the strait. However, shipments through the Red Sea on the other side of the Arabian Peninsula rose, offset some of the loss through Hormuz. Global benchmark Brent crude futures rose 4 percent in New York to close at US$104.28 a barrel.

Russian Attacks on Ukrainian Buses Kill at Least 30 Civilians

Russian glide bomb attacks on two buses in the Ukrainian city of Kramatorsk killed at least 30 people, with Kiev accusing Moscow of intentionally targeting civilians. Ukraine's President Volodymyr Zelensky promised retaliation. Russia hasn't commented on the attacks. Ukraine said Russia strikes in August killed more people than the whole death toll for 2025. UK Foreign Secretary Ed Miliband, who is on a trip to Ukraine, said the attacks show "evil intent."

China Scientists Develop Nuclear Clock

Chinese scientists have developed a nuclear optical clock using thorium-229, marking a breakthrough that could push precision timekeeping beyond today's atomic clocks. A team led by researchers at Tsinghua University used a self-developed 148-nanometer continuous-wave, vacuum-ultraviolet laser to drive energy-level transitions inside thorium-229 nuclei. The team said stability of the time-keeping is nearly an order of magnitude better than that reported by a European team at the same stage. The work, published online in Nature magazine on October 7, extends quantum precision measurement from electronic transitions to nuclear transitions. Because atomic nuclei are less susceptible to electromagnetic disturbances than electrons, nuclear clocks could eventually provide more precise time-keeping. The technology has applications for satellite navigation and deep-space exploration, where highly accurate timing is critical.

Canadian Poet Wins Nobel Prize in Literature

Canadian poet and essayist Anne Carson, 76, won the 2026 Nobel Prize in Literature. In bestowing the award, the Swedish Academy cited her "bold and inventive oeuvre that, in playful dialogue with the classical tradition, has created new forms for contemporary literature." Carson's work often combines ancient Greek literature with contemporary poetry and prose. Her best-known books include Autobiography of Red, The Beauty of the Husband and Nox.

Top Business

Manus Gets US$500 Million Investment Boost

Beijing-based Butterfly Effect, parent of AI company Manus, announced completion of a fundraising round that secured new investment exceeding US$500 million. The round was co-led by Boyu Capital and IDG Capital, with participation of existing shareholders Tencent, HSG and ZhenFund. It was Manus's first disclosed financing since resuming independent operations on September 1, after Beijing unwound Meta's US$2 billion, December 2025 acquisition of Manus, citing technology transfer concerns. The fundraiser values Manus, now based in Singapore, at about US$4 billion – double the valuation at which the founding team and existing shareholders bought back shares from Meta. The funding announcement came just 10 days after Manus released Manus 2.0 and Cue, a standalone personal AI agent app, and said it is assembling a team to develop products for the Chinese domestic market.

China Holiday Trade-Ins Generate Sales of US$4.7 Billion

China's subsidized consumer trade-in programs generated 33.5 billion yuan (US$4.7 billion) in sales during the weeklong National Day holiday, according to the commerce ministry. Vehicle purchases contributed 10.9 billion yuan; appliances, 12.3 billion yuan; and digital and smart products, 8.7 billion yuan. The programs, which subsidize trade-ins of older products for new ones, is aimed at boosting consumer spending as China tries to rebalance its economic growth from over-reliance on exports.

In another positive for the economy, China's top 100 property developers reported a pickup in September sales from the previous month, underpinned by new government policies making homeownership easier and less costly for some residents The real estate firms reported a 13.5 percent surge in combined contracted sales last month to 242 billion yuan, according to the China Index Academy. Some housing projects in major cities such as Shanghai, Beijing, Chengdu and Hangzhou recorded especially strong sales. The boost comes amid hopes that the five-year slump in residential property has turned a corner.

Qualcomm Denies Details of Its Cross-Licensing Deal With Huawei

US multinational technology company Qualcomm has denied media reports about the details of cross-licensing agreement with Huawei announced on October 5. A Qualcomm spokesperson said specific terms of the deal remain confidential, and "reports characterizing Qualcomm as a net payer under this agreement are inaccurate." The statement also said claims that the agreement relates to Huawei's Logic Folding chip technology are untrue. The US company confirmed it has agreed to acquire certain "non-cellular" US patents from Huawei across multiple technology areas. Analysts questioned the details after they were first reported by Bloomberg News, followed by a Shenzhen TV News report stating that its reporters confirmed with Huawei that the patent licensing covers near-package optics interconnect technology, as well as patent licenses supporting Logic Folding chip technology.

Anta Completes Purchase of Controlling Stake in Puma

Chinese multinational sportswear conglomerate Anta completed its acquisition of a 29.1 percent stake in Puma from the Pinault family investment vehicle for 1.5 billion euros (US$1.7 billion) in cash, officially becoming the German sportswear company's largest shareholder. Anta said it will respect Puma's brand independence and governance structure, with the athletic shoe and apparel company continuing to operate independently. The challenge for Anta is to reverse Puma's flagging performance after the company posted a loss last year and declining revenue in the first half of 2026.

Economy & Markets

China Biotech Stocks Tumble on News of Clinical Trial Failure in US

Shares of Chinese biotechnology stocks fell after a China-developed lung cancer drug failed clinical trials in the US. The drug was initially developed by Shanghai-based Allist Pharmaceuticals and licensed to US-based ArriVent BioPharma in 2021, one of the earlier foreign pharma companies to invest in China. In Phase 3 trials, the drug, called firmonertinib, failed to show that it significantly delayed disease progression, compared with chemotherapy. ArriVent's New York shares tanked 47 percent after the company announced the trial results on Wednesday. When trading in Shanghai resumed yesterday after a weeklong holiday, Allist Pharma shares plunged 20 percent. In Hong Kong, the Hang Seng biopharma index listing many Chinese drug firms fell 3.8 percent on Thursday. Among constituent stocks, Wuxi AppTec fell 4.3 percent, BeOne Medicines lost 1.8 percent, Innovent Bio shed 5 percent and Akeso was down 3.1 percent.

The South China Morning Post quoted Tony Ren, head of Asia healthcare research at Macquarie Capital, as saying many "out-licensed Chinese drugs are starting to face their moments of truth as they come under more rigorous scrutiny and higher global standards."

Biren Technology Announces Second Share Placement in Three Months

Chinese AI chipmaker Biren Technology announced a HK$4 billion share placement, its second fundraising attempt in three months. The Shanghai-based company, often called one of China's "four little dragons" in production of graphic processing units, said it is selling 130 million Hong Shares at HK$31.08 each. Biren shares fell 11.9 percent on the news. On July 8, the company completed a placement of 153 million shares, raising HK$7.1 billion. Biren needs funds to expand and capture the booming demand for chips used in AI and electronics. The company said proceeds from the latest sale will be used for supply-chain procurement, production readiness and marketing of latest-generation products.

Alibaba Cloud, AI Revenue Forecast to Surge 50 Percent

Alibaba is expected to report a 50 percent revenue surge in its cloud and AI unit for the third quarter, the South China Morning Post reported, citing market analysts. The increase would accelerate from 45 percent growth in the prior three months, signaling progress in the tech giant's Alibaba's efforts to monetize its massive AI investments. Brokerage Jefferies projects the segment's profit margin in the latest quarter will rise to 12.3 percent, while Longbridge Securities is forecasting the margin will rise to about 15 per cent from 12 percent in the June quarter.

Jefferies is estimating total Alibaba revenue for the September will show a 9.6 per cent year from a year earlier. The company is scheduled to announce third-quarter earnings late next month.

OpenAI Revenue Reveal Triggers Tech Selloff

Shares of Nvidia, Oracle and other AI heavyweights sank in New York after media reports that OpenAI's revenue, on an annualized basis, was about US$18 billion less than earlier reports suggested. CNBC said OpenAI told investors at a private presentation that annualized revenue at the end of September was US$50 billion, lower than the US$68 billion figure widely reported late last month. OpenAI has been under pressure to justify its US$852 billion valuation ahead of what investors expect to be a jumbo IPO next year. The tech-heavy Nasdaq fell 1.3 percent, with Nvidia shares down 3 percent, Oracle off 6 percent and Advanced Micro Devices losing 5 percent.

Transsion's Shanghai Shares Tumble on Hong Kong IPO Valuation

Shares in Transsion Holdings, the Chinese smartphone maker that dominates sales in the Africa market, fell 14 percent in Shanghai on Thursday after the company priced in its Hong Kong IPO at about a 30 percent discount to its Chinese mainland valuation. Transsion began subscriptions for its Hong Kong offering at between HK$35.30 (US$4.50) and HK$38.80 a share, seeking to raise up to HK$3.4 billion. The company posted first-half revenue of 35.4 billion yuan (US$5.3 billion), with net profit up 46 percent, but revenue growth was driven primarily by price increases rather than volume expansion. It will announce final IPO pricing on October 13.

Chinese Buyers Return to US LNG Talks

US exporter Venture Global is in preliminary talks with at least three Chinese importers, including PetroChina, over long-term contracts for liquefied natural gas, Bloomberg reported. PetroChina could buy more than 1 million metric tons annually. US-China trade in gas largely ceased after Beijing imposed a 15 percent tariff in February 2025.

Corporate

JAC Suffers Setback After Video of Vehicle Brake Failure

Share in China's JAC Motors fell 10 percent on Thursday after a test video released by auto platform Dongchedi showed three of its Zunjie V800 vehicles suffered brake pedal bracket fractures during emergency braking tests. The Zunjie V800 is an ultra-luxury multi-purpose vehicle jointly developed with Huawei under the Harmony Intelligent Mobility Alliance, with a starting price of 766,000 yuan (US$114,260).

Porsche Plans Major Workforce Cuts as Sales in China Collapse

Porsche plans to cut up to 30 percent of its workforce and expand its lineup of larger sports cars as it seeks to restore profitability. The German automaker aims to lower its break-even point to below 200,000 vehicles a year through a leaner organization and lower costs. About 9,000 jobs are expected to be eliminated. The carmaker is also making a clearer return to combustion-engine models. Porsche plans to raise the average price of its top-end models by about 20 percent and expand customization. Porsche's sales in China have plunged from a peak of 95,700 vehicles in 2021 to 41,938 last year, with a further decline to about 14,500 units in the first half of 2026.

ByteDance Ranks Top in Chinese Companies Expanding Overseas

TikTok owner ByteDance topped the list of China's "going global champions" in a new ranking system developed by the South China Morning Post. The tech giant outranked Apple assembler Foxconn Industrial Internet, online fashion retailer Shein and electric vehicle BYD. More than 2,000 companies were assessed on factors such as overseas revenue, reliance on foreign markets and the pace of overseas growth.

Apple's China App Store Generates US$597 Billion in Billings, Sales

An Apple research report shows that its China App Store ecosystem generated 4 trillion yuan (US$597 billion) in billings and sales last year, more than double the figure from 2020. Physical goods and services accounted for 91 percent of the total. Revenue earned by Chinese developers from overseas markets rose from 32 percent in 2020 to 52 percent in 2025, with overseas revenue reaching 99.4 billion yuan. Twenty-three of the world's top 100 most-downloaded games come from Chinese developers, the highest of any country. Starting last March, Apple lowered the standard commission rate for digital goods in China from 30 percent to 25 percent.

COL Group Scraps Plan to Seek Listing in Hong Kong

Shenzhen-listed COL Group, a leading Chinese digital content company founded in 2000 at Tsinghua University, said it is scrapping plans to list in Hong Kong. Its shares fell 12.8 percent on the announcement. The company said the decision is based on an assessment of market conditions and the company's own development plans. Shareholders approved an initial public offering in Hong Kong in 2025. The company said the decision will have no material impact on business activities or sustainable development.

Wuzhou Comm Says Controlling Shareholder to Increase Stake

Shanghai-listed Wuzhou Communications, a Chinese toll-road operator, said its controlling shareholder Communications Investment Group, plans to increase its stake to 40.1 percent from 38.5 percent over the next 12 months, with investing between 89 million yuan (US$13 million) and 178 million yuan. The move comes as Chinese mainland market focus on expressways and transportation is increasing. Wuzhou Communications is a key transport player in the Guangxi Zhuang Autonomous Region.