Weekend Buzz: 14-15 February 2026

Meituan Flags 2025 Loss on Food Delivery War

Chinese food delivery giant Meituan, in preliminary earnings guidance released to the Hong Kong stock exchange on Friday, warned that it may post a loss of up to 24.3 billion yuan (US$3.5 billion) for 2025 due to "intense industry competition," with the slump likely to persist this year. The annual loss would turn from a profit of 35.8 billion yuan in 2024. Beijing-based Meituan has been the leader in a battle with Alibaba and JD.com in the fast food-delivery market, with heavy discounts, consumer vouchers and marketing outlays. The rivals promise delivery within an hour of an order being placed. Competition has been so fierce and so detrimental to bottom lines that regulators have stepped in to try to quell it. Meituan said losses were expected to continue into at least the first quarter of 2026 "due to ongoing competition." Its shares, which have plunged almost 50 per cent in the last 12 months, fell 3.2 percent in Hong Kong on Friday.

CK Hutchison Threatens Lawsuit in Panama Canal Dispute

Hong Kong-based conglomerate CK Hutchison threatened legal action against shipping giant AP Moller-Maersk after Panamanian authorities tapped the Danish company to temporarily take over operations of two ports at either end of the Panama Canal that were previously operated by Hutchinson. The canal has been a lightning rod between China and the US over control of a waterway that handles about 40 percent of US container traffic. That battle intensified recently after a Panamanian court, allegedly under US pressure, voided long-term contracts Hutchinson held to run the ports. Last year, CK Hutchison bowed to US pressure and negotiated a deal with a US-backed, BlackRock-led consortium to sell the two ports as part of a US$23 billion deal to dispose of all its global ports. China reacted by insisting that Chinese shipping giant Cosco be given a shareholding in the sale. The sale has since stalled. Until now, Maersk hasn't been party to the dispute.

US Raises Pressure on Iran With Second Carrier Deployment

The US is sending a second aircraft carrier strike group to the Middle East, heightening pressure on Iran to strike a deal over its nuclear program, "If we don't make a deal, we'll need it," President Donald Trump said of the additional firepower. He also added, in response to reporters' questions, that regime change in Iran "seems like the best thing that could happen." The second carrier group is being dispatched from the Caribbean Sea, where it was sent ahead of the US attack on Venezuela.

Europe, US Agree Old World Order Is Dead

Europe and the US, often at loggerheads, agreed on one thing as the annual Munich Security Conference convened: the old world order is gone. German Chancellor Friedrich Merz, said the former rules-based system "no longer exists" and Europe's freedom is "no longer a given" in a world dominated by big powers that ignore the rules. US Secretary of State Marco Rubio echoed his remarks, saying "the old world is gone, frankly. We live in a new era of geopolitics." The 2026 conference security report issued ahead of the event called US President Donald Trump a "demolition" man in an era of "wrecking-ball politics," putting decades of international stability and order under unprecedented strain.

Japan Seizure of Chinese Fishing Boat Resolved

A Japanese Fisheries Agency patrol vessel seized a Chinese fishing boat and arrested but later released the captain on bail to Chinese authorities. Japan alleges the vessel ignored orders to stop for an on-board inspection in its exclusive economic zone. The incident didn't appear to ratchet up already frayed relations between both countries. Chinese Foreign Ministry Spokesperson Lin Jian said that the Chinese government always asks its fishermen to operate in accordance with laws and regulations, and China firmly protects their lawful rights and interests. The vessel was described as a "tiger net fishing boat," known for catching fish such as mackerel. It was the first time since 2022 that the Japanese fisheries agency has seized a Chinese fishing boat.

At the 2026 Chinese New Year Reception held by the Chinese Embassy in Tokyo earlier this week, Wu Jianghao, the Chinese ambassador to Japan, stressed that China-Japan relations are now facing the most severe, difficult situation since the normalization of diplomatic relations. He blamed Japan for the rupture, and stressed that "the Taiwan question is purely China's internal affairs that brook no external interference." Last year, newly installed Prime Minister Sanae Takaichi made remarks related to Taiwan that angered Beijing.

Swiss Plan Referendum on Population Control

Switzerland plans to hold a referendum on an anti-immigration party's proposal to limit the nation's population to 10 million. The poll is expected in mid-June. The Swiss population now stands at just above 9 million. The nation frequently uses referendums to establish policies, especially those involving contentious issues like compulsory military service, taxes and stricter environmental controls. The Swiss People's Party, which proposed the law, is the largest party in the legislative Federal Assembly. Business groups warn that passage of the limit would threaten agreements with the EU and cripple economy.

Top Business

Enflame Eyes a Potential Shanghai IPO Blockbuster

AI chip designer Enflame Technology moved a step closer to an initial public offering on the Shanghai tech-focused Star market. The Shanghai-based company is now in the stage of providing supplemental information to the exchange. The company may seek to raise as much as 6 billion yuan (US$860 million), which would make it the biggest mainland IPO this year, the South China Morning Post reported. Enflame is seeking to join other mainland chip designers – including Moore Threads, MetaX and Biren Technology – that successfully raised funds on the Star market to finance China's challenge to the domination of US rivals, including Nvidia. Enflame was founded in 2018 by two former veterans from US-based Advanced Micro Devices. Its roster of pedigree engineers has attracted backing from Tencent, which holds a 20 percent stake, and other heavyweight mainland investors. The company's core offering is its Suisi series of processors, now in their fourth generation.

ISpace Completes Largest Fundraising in Its Sector

Beijing-based ISpace raised 5 billion yuan (US$730 million) in the single largest fundraising to date for a privately owned aerospace company in China. The company, also known as Interstellar Glory Aerospace Science & Technology, said the funding round this month involved Cowin Capital and existing shareholder Jingming Capital, with Spring Partners, Chengdu Industry Group and Qianlima Capital also taking part. The company is reported to be planning an initial public offering. Proceeds from the funding will be used to accelerate development of ISpace's reusable methalox carrier rockets, expanding their launch, assembly and sea-recovery capabilities. Chinese authorities have made aerospace development, especially by private companies, a priority under the 15th Five-Year Plan (2026-30), with a focus on reusable rocketry that cuts costs and narrows launch timetables. The technology will be vital in China's plans to create giant sub-orbital satellite constellations.

ByteDance Poised to Sell Game Studio Moonton

China tech giant ByteDance is in advanced talks to sell its Shanghai-based Moonton Technology, the studio behind the popular mobile game "Mobile Legends: Bang Bang," to Saudi Arabia's Savvy Games Group in a deal valued at up to US$7 billion, Reuters reported. The two companies have reached an initial agreement on broad terms of the deal. A sale of Moonton sale would add to the ongoing consolidation in the video game industry and mark a major retreat from online games by ByteDance, which owns TikTok. ByteDance bought Moonton in 2021. On its website, Moonton claims more than 110 million monthly active users.

Xiaomi Electric Vehicle Sales Outpace Tesla's in January

Chinese carmaker Xiaomi ranked first on the mainland in electric car sales in January, outpacing Tesla, which operates a mega-factory in Shanghai. Xiaomi sold 37,869 of its YU7 SUV, compared with Tesla's 16,845 Model Ys, according to the China Passenger Car Association. The Model Y, which was the best-seller in December, plunged to 20th place last month, CNBC reported, citing figures posted on car sales platform Autohome. Xiaomi debuted the YU7, its second electric car model, last summer, pricing it 10,000 yuan (US$1,450) below the Model Y.

Economy & Markets

China's Housing Market Continues Decline

China's new home prices last month dropped 3.1 percent from a year earlier and 0.4 percent from December, Reuters reported. The nation's residential property market has been in an entrenched slump since 2022 defaults by developers bitten by amid a liquidity crisis. "The foundations of the property market's recovery remain fragile," Zhang Dawei, an analyst at Centaline Property, told the news agency. In a survey of 70 cities, the Bureau of Statistics said 62 showed price declines. In the top cities of Beijing, Shanghai, Guangzhou and Shenzhen, new home prices slipped 0.3 percent from December, while home resale prices dropped 0.5 percent. Local governments in China have been rolling out measures aimed at stabilizing the real estate market, including buying up foreclosed properties to convert into affordable housing. Standard & Poor's Global Rating this week predicted primary property sales this year will drop between 10 percent and 14 percent.

China Bans Carmakers From Selling at Below Cost

China has banned carmakers from selling new vehicles for less than it costs to make them, including use of discounts and subsidies, as regulators continue trying to smother a persistent price war that has collapsed profitability for most manufacturers, the South China Morning Post reported. The State Administration for Market Regulation said, effective immediately, vehicle makers are banned from selling upgraded models at the same price as lower-grade models and are not allowed to offer any discounts or subsidies that effectively bring net prices below cost. Such practices, which contribute to deflation, have emerged as carmakers rev up production amid weaker consumer demand. "The government is urging carmakers not to blindly pursue sales volume at the expense of profitability," Zhao Zhen, a sales director at Shanghai dealer Wan Zhuo Auto, was quoted as saying.

New Bank Lending Misses Forecasts

China's new bank lending in January rose to a smaller-than-expected 4.7 trillion yuan (US$681 billion) from 910 billion yuan in December but fell from 5.1 trillion yuan a year earlier amid subdued credit demand. Household loans, including mortgages, rose to 456.5 billion yuan in January after a contraction of 91.6 billion yuan in December, while corporate loans jumped to 4.5 trillion yuan from 1.1 trillion yuan, according to Reuters. People's Bank of China figures show that new bank lending in China last year slipped to a seven-year low of 16.3 trillion yuan in 2025, reflecting a prolonged property slump. Credit typically spikes in January as Chinese banks front-load lending at the start of the year, Reuters reported. Policymakers have signaled deployment of further stimulus this year to boost demand in the economy.

Shenzhen Regulators Crack Down on Gold Trading

Regulators in Shenzhen issued new rules on Friday, prohibiting companies from engaging in unauthorized gold price-fixing, leveraged trading and deferred settlement deals. The edict from the Shenzhen Municipal Financial Regulatory Bureau also said companies may not use online platforms such as WeChat let customers pay a deposit to lock in the price of a certain amount of gold under the guise of gold recycling or pre-priced gold sales. Regulators in China have been clamping down on gold selling and buying amid volatility in precious metals prices that threaten market stability.

China Tightens E-Cigarette Investment Rules

China's State Tobacco Monopoly Administration issued a notice reinforcing restrictions on investment in the e-cigarette industry. The regulator said companies are prohibited from launching new production projects and existing production can't expand capacity. Producers must continue to meet all environmental and safety standards. Export-oriented firms must prove that additional output meets regulatory requirements in destination markets. China had a smoking rate of 22.9 percent last year. The country has implemented a strong anti-smoking campaign.

China Court Clarifies Assisted Driving Liability

In a landmark case, China's Supreme People's Court on Friday ruled that drivers remain legally responsible when using assisted driving systems. The court held up the conviction of a man identified only by his surname Wang, who activated a Level 2 assisted driving system after drinking and moved to the passenger seat to sleep. Level 2, among 5 levels of autonomous driving, means that advanced driver assistance systems that control both steering and speed can be activated, but the driver must remain at the wheel and be ready to take control of the car at any time. Activating automated functions doesn't transfer legal liability, the court ruled. The issue of legal liability in use of autonomous driving has loomed large as China now ventures into more automated Level 3 trials.

Corporate

MiniMax Rolls Out 'Frontier' AI Model

Shanghai-based AI company MiniMax released an update to its M2 large language model that it says is designed for real-world application. The company said the new model is its most powerful to date, with performance matching models from the likes of US-based Anthropic and OpenAI in key areas such as coding and search, the South China Morning Post reported. "M2.5 is the first frontier model where users need not to worry about cost, delivering on the promise of intelligence too cheap to meter," the company said. Earlier in the week, MiniMax rival Zhipu AI rolled out a new flagship GLM-5 model.

Baidu Opens OpenClaw to Smartphone App Users

Chinese tech giant Baidu announced plans to give users of its main smartphone app direct access to the popular Austrian-developed AI tool OpenClaw, according to a spokesperson for the company. Users who opt in can message the AI agent through Baidu's main search app to complete tasks such as scheduling, organizing files and writing code. Baidu claims 700 million monthly active users for its search app. The company is also rolling out OpenClaw's capabilities to its e-commerce business and other services.

Film Industry Poised for Strong Holiday Sales

Box office ticket presales ahead of the nine-day Chinese New Year holiday that begins on Monday 16 exceeded 200 million yuan (US$29 million), as of Friday afternoon. The favorite films of holiday movie-goers are racing comedy "Pegasus 3," which accounted for 38 percent of sales, and films "Scare Out," Blades of the Guardians: Wind Rises in the Desert," and "Per Aspera Ad Astra," according to box office trackers Maoyan Pro and Beacon.

Coca-Cola Lauds China as Vital Market

US beverage giant Coca-Cola said sales in China continue to drive long-term growth, after the company reported global consolidated fourth-quarter profit rose 5 percent to US$2.3 billion on a 2 percent gain in revenue to US$11.82 billion. For the full year 2025, Coca-Cola posted net income increased 23 percent to US$13.14 billion. "We have China as one big market for us," Executive Vice President Henrique Braun told investors on an earnings call. "We invested ahead of the curve and we continue to win in that." For the coming Chinese Lunar New Year, the company has rolled out a limited-edition Year of the Horse soft drink can designed with traditional symbols.

Elkem Sells Silicones Unit to China's Bluestar

Elkem, a Norwegian chemicals company, said on Friday it has agreed to sell the majority of its Silicones division to its biggest owner, China National Chemical, known as Bluestar. Under the agreement, Bluestar would cease to be a shareholder in the Norwegian group, cancelling its 338.3 million shares in Elkem, which total about 53 percent of the group's capital. Elkem said the company's move it to simplify its business and allocate capital to "strong long-term growth opportunities."

Maniformer Seed Funding Led by Sequoia Capital

Mifeng Technology (Maniformer), an embodied AI data platform founded this month by robotics maker AgiBot, announced the completion of hundreds of millions of yuan in combined seed and angel round financing. The fundraising was led by Sequoia Capital China, with participation from VGC, BV Baidu Ventures and Yunfeng Capital, and industrial investors including JPSU Intelligent and Lingchu AI. Proceeds will be directed toward research and development and capacity expansion.