Weekend Buzz: 29-30 August 2026

CXMT Swings to Profit From Loss on Global Chip Shortage

Chinese memory chipmaker ChangXin Technology (CXMT), which recently completed the Chinese mainland's biggest IPO, swung to profitability in the first half on AI demand and tight global supplies for dynamic random-access memory chips. Profit turned to 77.6 billion yuan (US$11.3 billion) from a loss of 2.3 billion yuan a year earlier. Revenue surged 874 percent to 150.3 billion yuan. Driven by accelerating global demand for high-performance computing since late 2025, global DRAM supply has failed to keep pace with demand, triggering a surge in memory chip prices.

Since its founding in 2016, CXMT has established itself as China's top DRAM manufacturer and the 4th largest globally by both shipment volume and revenue. While Samsung Electronics, SK Hynix and Micron Technology collectively controlled over 90 percent of the global DRAM market share in 2025, Shanghai-listed CXMT is steadily advancing into the top tier of global suppliers, the company said in its earnings report. Yu Jia, head of China technology research at UBS Securities, noted that the imbalance of supply and demand is expected to persist through the second quarter of 2028.

China's Big 5 Banks Post Single-Digit Profits in Recovery From Sluggish 2025

China's five biggest banks, which rank among the largest lenders in the world, reported a single-digit profit growth in the first-half after sluggish 2025 results. The recovery was driven by stabilization of net interest margins, a key indicator of banking profitability that compares interest earned on loans against the interest a bank pays out on deposits. The banks also profited from widespread repricing of high-interest time deposits, with some high-yield products dropped. The banking sector benefitted from national and local government interventions to shore up the slumping housing market, easing risks of non-performing loans. Amid weaker domestic spending, the banks have steered more lending to booming sectors of advanced technology and green energy, as well as upgrading their operations with AI tools.

Industrial and Commercial Bank of China, the largest bank in the world by assets, reported first half net profit rose 3.3 percent to 173.7 billion yuan (US$25.8 billion) on a 9 percent gain in operating income to 446.2 billion yuan. Net interest income rose 8.8 percent to 341.2 billion yuan. The bank's net interest margin fell to 1.29 from 1.3 percent, and the non-performing loan ratio dropped to 1.29 from 1.31 percent. The bank said its credit impairment loss in the six months rose 22 percent to 127 billion yuan. Assets totaled 57 trillion yuan as of June 30.

Agricultural Bank of China reported profit rose 4.9 percent to 146.4 billion yuan on an 11 percent increase in operating income to 411.1 billion. The net interest margin fell to 1.28 from 1.32, and the non-performing loan ratio dropped to 1.25 from 1.32. The bank said its credit impairment loss rose 13 percent to 110.6 billion yuan. Assets totaled 51 trillion yuan. The bank has been expanding from its origins as a rural lender into broader services that include technology, aged care and green finance nationwide.

China Construction Bank, reported first-half profit rose 4.6 percent to 169.6 billion yuan on a 10.5 percent increase in operating income to 426.3 billion yuan. Its net interest margin dropped to 1.37 from 1.4 percent, while the non-performing loan ratio declined to 1.29 from 1.31 percent. The bank reported credit impairment losses of 130 billion yuan. Assets totaled 47.32 trillion yuan.

Bank of China, which was originally founded primarily to handle foreign exchange and international finance, posted first-half profit of 123.6 billion yuan, up 5.1 percent from a year earlier. Operating income rose 8.4 percent to 357.1 billion yuan. The net interest margin increased to 1.27 from 1.26 percent, and the non-performing loan ratio fell to 1.22 from 1.23 percent. The bank reported an impairment loss of 68.1 billion yuan on assets, up 18 percent. Assets totaled 40.1 trillion yuan at June 30.

Bank of Communications said profit rose 4 percent to 47.9 billion yuan on a 6.8 percent rise in operating income to 142.5 billion yuan. The net interest margin rose to 1.23 from 1.21 percent, and the non-performing loan ratio increased to 1.3 from 1.28 percent. The bank reported a credit impairment loss of 34.5 billion, up 5.3 percent. Assets totaled 16.3 trillion yuan.

BYD Posts Declines in Profit, Revenue on Weaker Domestic Sales

BYD, the world's largest maker of electric vehicles, reported a 20.5 percent decline in first-half profit to 12.3 billion yuan (US$1.7 billion), with revenue dropping 7.1 percent to 344.8 billion yuan from a year earlier. The company said the declines were driven by a reduction in new energy vehicle sales domestically and foreign-exchange losses resulting from the appreciating yuan. However, gross profit increased to almost 19 percent, up 18 percent, helped by growth in overseas sales. In the six months, new energy vehicle sales reached 1.8 million units, with exports surging 68 percent to 792,000 units. Research and development investment totaled 28.9 billion yuan as the company advanced its second-generation blade battery and flash-charging systems. The company said a scaling up of foreign production facilities and deployment of its charging infrastructure globally will drive second-half operations momentum. According to extrapolated figures for the second quarter reported by the South China Morning Post, profit in the three months to June 30 rose 30 percent to 8.2 billion yuan, largely on foreign sales and more focus on higher-priced premium models. Revenue, however, slipped 3 percent to 195 billion yuan.

China Overhauls Housing Rules, Extends Mortgages to 40 Years

China unveiled one of its biggest overhauls of housing and property-financing rules in decades, extending maximum mortgage terms to 40 years while shifting more project-delivery risk from homebuyers back to developers and banks.

Under new rules released Friday, banks will disburse mortgages for presold homes only after projects complete official completion filing, rather than after the building structure is merely topped out. Authorities are also encouraging new projects to prioritize completed-home sales, a move aimed at reducing unfinished-project risks and buyer disputes.

The changes are likely to lower monthly mortgage burdens for some buyers while giving qualified households slightly more room to borrow.

China also issued new rules covering property-development loans, commercial real-estate lending, urban-renewal financing and property trusts.

The policy package could increase financing pressure on smaller developers, which will need to fund more construction before receiving buyers' mortgage proceeds, while potentially favoring larger developers with stronger balance sheets.

The broader shift suggests Beijing is not simply trying to revive housing demand. It is redesigning parts of the property model around greater buyer protection, tighter project financing and reduced reliance on presales.

Meituan Q2 Profit Surges but Half Year Shows a Loss

Meituan, China's largest food-delivery company, snapped three consecutive quarters of losses in the March-June period with a sixfold jump in profit from a year earlier to 2.2 billion yuan (US$317.6 million). Revenue increased 14 percent to 104.6 billion yuan, as cutthroat competition in the fast food-delivery market eased. However, the results weren't strong enough to overcome a 6.8 billion loss in the first quarter, leaving the company 4.7 billion yuan in the red for the first six months. That compares with a year-earlier profit of 10.4 billion yuan. Revenue in the six months rose 10 percent to 196 billion yuan.

In the second quarter, selling and marketing expenses rose 11 percent, and spending on research and development increased 22.5 percent to 7.7 billion yuan as the company expanded its technology and AI footprint with the June release of LongCat 2.0, its next-generation proprietary large language model. The HK-listed company said in a statement that business segments returned to steady growth in the three months, on the mend from a challenging 2025 when Meituan logged an annual loss of 23.4 billion yuan as it burned through cash to defend its 70 percent market share against main rivals Alibaba and JD.com in China's fast food-delivery services. Chinese regulators stepped in to cool the competition this year.

Estimated 2,000 People Missing in Nepal-China Flash Flooding

The number of people now believed missing in Nepal rose to almost 2,000 in the disaster created after a collapsed glacier in the Himalayas sent a wall of mud and rocks roaring into valleys below, triggering flash floods that swept away homes, roads and bridges. At least 517 foreigners are on the list of missing persons in an area popular with mountain trekkers and Hindu pilgrims. Nepalese officials said the death toll has risen to 579. At least seven people have died and an estimated 554 are missing on the Chinese side of the border. Chinese rescuers resumed suspended operations as concerns eased that a dam of mud and rock that created a lake on a river would burst, triggering new flooding.

Top Business

Cosco Shipping Profit Falls Despite Higher Cargo Volumes

Cosco Shipping, one of China's largest container shipping and port operators, reported first-half net profit fell 22 percent from a year earlier to 15.7 billion yuan (US$2.3 billion), while revenue rose 2.6 percent to 112 billion yuan. Profit attributable to shareholders fell 23.5 percent to 13.4 billion yuan. Extrapolated figures from first-quarter results show second-quarter net profit rose about 26 percent from a year earlier to 8.8 billion yuan and was up 28 percent from the first three months of the year. Revenue in the latest quarter rose 18 percent to 60.1 billion yuan. That improvement came amid stronger shipping demand. For the first half, Cosco container volume rose 7.5 percent to 14.3 million twenty-foot equivalent units, the standard industry measure -- including increases of 12.4 percent on Asia-Europe routes and 9.7 percent on trans-Pacific routes. But container-shipping revenue rose only 2.4 percent while costs increased 6.6 percent. The company said the Iran war had a negative impact on shipping, forcing it to seek alternative routes.

UBTech Narrows Loss as Humanoid Robot Sales Jump

Shenzhen-based UBTech Robotics, a leading player in embodied humanoid robots, reported its first-half loss attributed to shareholders narrowed to 311 million yuan (US$49.8 million) from 413.6 million yuan a year earlier. Revenue doubled to 1.3 billion yuan, with sales from full-size embodied intelligent humanoid robot products and services soaring 15-fold to 590.3 million yuan. The company said it sold 16,123 robots in the six months. Investment in research and development jumped 39 percent to 301 million yuan, and gross profit margin increased to 44.7 percent from 35 percent.

Biren Technology Narrows Loss on Surge in Chip Revenue

AI chip firm Biren Technology said its loss in the first half narrowed 76 percent from a year earlier to 377 million yuan (US$55 million) as revenue surged 20-fold to 1.2 billion yuan. Spending on research and development jumped 41 percent to 804 million yuan, as the company continues to advance its chip architecture. Biren attributed first-half revenue gains to rapid breakthroughs in artificial intelligence, saying in a statement that "expansion of large language models to trillions of parameters, context windows exceeding millions of tokens and accelerated adoption of agentic AI applications have collectively created robust demand for AI computing solutions."

SAIC Profit Drops on Domestic Pricing Pressure

Shanghai-based automotive giant SAIC Motors reported first-half net profit of 5.2 billion yuan (US$721 million), a drop of 14.4 percent from a year earlier. Operating revenue slipped 0.3 percent to 298.7 billion yuan. The profit contraction reflected domestic pricing pressures and shifting market dynamics. However, the company maintained robust volume momentum by delivering over 2 million vehicles, fueled by a 23 percent increase in new energy vehicles sales and a 49 percent jump in overseas sales. Its robotaxi business has accumulated over 420,000 orders. Looking ahead, SAIC said its semi-solid-state battery technology has achieved mass production application and advanced auxiliary driving technology continues to grow.

Miniso Swings to Quarterly Loss on Higher Costs

Miniso, a global value retailer known for affordable lifestyle products, said it turned to a 291.5 million yuan (US$43.3 million) loss in the second quarter from 489.5 million yuan profit a year earlier. Revenue, however, rose 17 percent to 5.8 billion yuan. The quarterly loss was partly driven by a 597-million-yuan one-time loss on an AI investment, the company said. A 36 percent rise in selling and distribution expenses also weighed on earnings. For the first half, revenue rose 22 percent to 11.5 billion yuan, while adjusted net profit, excluding foreign exchange, fell 1.7 percent to 1.2 billion yuan. The Chinese mainland produced a 23 percent rise in revenue in the second quarter. As of June 30, the company had 8,309 stores, with 365 Top Toy shops. Overseas stores account for nearly half of net new stores in the past year.

China Southern Air Loss Widens on Jet Fuel Prices, Forex Losses

China Southern Airlines, one of China's three major state-owned carriers, reported a net loss of 3.7 billion yuan (US$550 million) for the first half, widening from a 1.5-billion-yuan loss a year earlier. Revenue rose 9.7 percent to 947.7 billion yuan. China Southern said it carried 83 million passengers in the six months, a decline of 0.2 percent, with international passenger numbers increasing 12 percent to 11.2 million. Cargo and mail operations rose 0.3 percent to 943,320 tons, with gains in international cargo offsetting a drop in domestic cargo. China Southern said the Iran war led to significant increases in jet fuel costs, and foreign-exchange losses on the yuan's appreciation also weighed on earnings. Extrapolated figures based on first-quarter results show a second-quarter net loss of about 5.2 billion yuan, widening from a loss of about 786 million yuan a year earlier. Derived second-quarter revenue rose about 9.4 percent to 46.9 billion yuan. The second-quarter deterioration marked a sharp reversal from the first quarter, when China Southern posted profit of 1.5 billion yuan.

Economy & Markets

Citic Reports Higher Growth as Finance Businesses Flourish

Citic Ltd, one of China's largest conglomerates, involved in financial services, resources and energy, manufacturing, engineering, contracting and real estate, reported first-half net profit increased 18.3 percent from a year earlier to 70.8 billion yuan (US$10.5 billion) on a 10.7 percent revenue gain to 408.7 billion yuan. Growth in financial services was a main growth driver, rising 15 percent to revenue of 160.6 billion yuan. Net fee and commission income jumped 22 percent due to growth in the brokerage, asset management and investment banking business of Citic Securities. Citic Bank's net interest income increased 5.3 percent as its net interest margin stabilized. Revenue from its real estate business fell 12.4 percent.

Fed Chairman Takes Hawkish Tone on Outlook for Rates

US Federal Reserve Chairman Kevin Warsh, picked by US President Donald Trump to replace Jerome Powell on the expectation he would lower interest rates, delivered a clearer signal that stubborn inflation – largely triggered by Trump's war against Iran -- could push the Fed toward a rate hike. In his inaugural keynote address at the annual meeting of central banks in Jackson Hole, Wyoming, Warsh said the US economy remains robust but inflation remains too high, with no sign the "underlying trends have meaningfully improved." Wall Street took his remarks to mean that interest rates could be lifted at the next Fed meeting in September, sending major stock indexes lower. His remarks came after the Personal Consumption Expenditures index, a favorite Fed benchmark for inflation, was reported at 3.7 percent in July, above the central bank's 2 percent target.

China Curbs Humanoid Robot Hype, Demands Real-World Applications

China regulators have stepped in to curb "barbaric growth" in investment hype surrounding the humanoid robot industry. The National Development and Reform Commission said it is addressing a massive disconnect between investment in the sector and actual use applications for the technology. In the first half, the sector raised 93.5 billion yuan (US$13 billion), a 500 percent surge, while public bidding contracts for the technology totaled only 2.5 billion yuan. The commission said it will coordinate national training grounds to expand applications across manufacturing and healthcare sectors. Local authorities will be urged to stop funding repetitive, low-level projects and focus on building genuine, self-sustaining capabilities for the technology.

PICC Posts Higher First-Half Net Income

People's Insurance Co of China (PICC) reported first-half net profit surged 39 percent from a year earlier to 49.8 billion yuan (US$7.4 billion), supported by better investment returns. Revenue increased 9.6 percent to 355.1 billion yuan. Investment assets increased to 2 trillion yuan by the end of June. Founded in 1949, PICC operates across life, health, and property and casualty insurance, as well as reinsurance and asset management.

Yuan's Rise Leaves Some China Companies With Forex Losses

The rising value of the Chinese yuan against the US dollar has resulted in foreign-exchange losses for 677 listed Chinese firms to date, according Yicai's review of half-year earnings reports. A higher yuan makes exports more expensive but reduces earnings at home when overseas sales are converted to domestic balance sheets. Carmaker Chery, a leading car exporter, for example, reported a forex loss of 2.1 billion yuan (US$311 million) for the first half. Yawei Machine Tool reported a loss of 10.4 million yuan. The currency has been rising since the beginning of the year, hitting its highest point against the dollar since 2023 on August 21.

Toyota July Sales Slump, Led by Decline in China

A 24 percent plunge in China sales contributed to a 4.8 percent global drop in Toyota Motor's July sales. The decline in the China market was the sixth consecutive monthly drop, as higher gasoline prices damped demand for hybrid and internal-combustion models. Sales also fell in the US and Middle East, offsetting 11 percent higher sales in Toyota's home base of Japan.

Trump Doesn't Rule Out Sanctions on Chinese Banks

US President Donald Trump indicated in a Fox News interview that he's not ruling out sanctions on China banks as part of new measures to punish nations and entities that don't sever economic ties with Iran. US Treasury Secretary Scott Bessent warned earlier in the week that if Chinese banks "are part of the ecosystem that turns Iranian oil into money, they will be targeted" under the new economic stranglehold plan. Chinese Foreign Minister Wang Yi, after a meeting in Beijing with several top US officials, said both nations need to "remove interference" and "overcome obstacles," saying bilateral risks and challenges remain, according to Chinese media. Several China's biggest banks are the largest lenders in the world.

China Energy Storage Growth Slows

China's new energy storage sector showed a first-half decline in new installations, signaling a shift from rapid expansion toward market-driven growth. The country's installed power storage capacity reached 237.7 gigawatts by the end of June. New-type energy storage capacity rose 59 percent to 168.3 gigawatts, but newly commissioned capacity in the first half fell 18 percent in power terms and 16 percent in energy terms from a year earlier. The number of new projects dropped 51 percent. The industry expects growth to slow between 2026 and 2030.

Deep Dive

AI to the Rescue as China Endures a Strong Summer Typhoon Season

A question is becoming increasingly urgent as China deploys artificial intelligence to improve forecasts and early warnings: How much more accurately, and how much earlier, can technology tell people what is coming?

Count Sheep No More, Tech-Based Sleep Products Enter Market

In Shanghai, a better night's sleep can now involve pressurized oxygen pods, cryotherapy chambers, floating tanks and infrared cabins.

Global Auto Giants Face Crunch Time, China a Pivotal Focus

VW, Mercedes, Toyota and GM can no longer count on the 'cash cow' of China to drive sales growth.

Corporate

GAC Loss Widens in First Half

Guangzhou Automotive Group (GAC) reported a net loss of 44.67 billion yuan (US$6.25 billion) for the first half, widening 76 percent from a year earlier. Operating revenue grew 9 percent to 461.2 billion yuan. The loss reflects ongoing domestic market pressures, aggressive pricing competition and heavy strategic investments. International business, however, was a bright spot. Independent brand exports surged by 132 percent, nearing the total volume for the entire year of 2025, while overseas market revenue doubled to 14 billion yuan. GAC said it plans to focus on overseas markets for growth. It also noted that its investments in AI-driven applications such as humanoid robots, flying cars and robotaxi services have begun commercialization.

BAIC Swings to Loss as Vehicle Revenue Contracts

Beijing Automotive Group (BAIC) reported a net loss of 1.6 billion yuan (US$223 million) for the first half, turning from profit of 360 million yuan a year earlier. Revenue fell 30 percent to 57.7 billion yuan.

The downturn was primarily driven by intense market price competition and a decline in overall vehicle sales volume. BAIC said it plans to navigate these challenges by accelerating new energy and smart driving technologies, scaling up off-road vehicle lines and expanding overseas.

China Shenhua Profit Rises on Higher Demand for Coal

Shenhua Energy, China's largest listed coal producer, reported first-half net profit attributable to shareholders rose 4.1 percent to 28.7 billion yuan (US$4 billion) on a revenue increase of 7.9 percent to 189.3 billion yuan. Adjusted attributable profit, excluding one-time items, rose 10.6 percent to 26.9 billion yuan. Commercial coal production fell 3.6 percent to 250 million tons, but coal sales rose 1.8 percent and the company's average coal selling price increased 4.5 percent. Electricity sales rose 5.5 percent as new generating units came online. Shenhua said disruptions in oil and natural gas shipments triggered by the Iran war led to recommissioning of coal-fired generation in several countries, pushing up global coal demand and prices. The company also noted an increase in electricity demand from internet data services and electric-vehicle charging systems.

Midea Profit Edges Up on AI, Industrial Expansion

China's Midea, a global consumer appliance and industrial technology group, posted a 1.7 percent rise in first-half profit to 26.5 billion yuan (US$3.7 billion) and a 3.5 percent revenue increase to 261 billion yuan. Earnings were fueled by robust demand across industrial and business-to-business e-commerce sectors, especially in building technology and robotics, where growth exceeded 10 percent. Midea said it will accelerate its transformation into an "AI-plus industrial technology group," with deeper AI integration across its value chain.

Sany Heavy Shows Profit on Excavating Equipment

Sany Heavy Industry, a leading company in China's construction machinery sector, reported an 8.3 percent increase in first-half profit to 5.69 billion yuan (US$850 million) on a 20 percent rise in revenue to 53.5 billion, led by excavating and cement machinery. Gross profit margin edged up to 27.9 percent from 27.6 percent. Sany operates its business globally. Subsidiary Sany International reported a 21 percent rise in revenue to 14.8 billion yuan, driven by mining equipment. Net income fell 5.9 percent to 1.2 billion yuan on rising raw material overheads and a reduction in domestic government subsidies.

Hua Hong Grace First-Half Profit Jumps Fivefold

Shanghai-based Hua Hong Grace Semiconductor reported first-half profit attributable to shareholders surged fivefold from a year earlier to US$59.5 million on a 24 percent gain in revenue to US$1.4 billion. The company earlier reported that second-quarter profit surged 386 percent to US$38.6 million on record revenue of US$717.5 million, with gross margin edging up 5.6 percent to 16.5 percent. Revenue from the Chinese mainland rose 20 percent and from North America, 77 percent. Hua Hong said it expects third-quarter sales of up to US$780 million. The chipmaker said it will conduct a 7.56-billion-yuan (US$1.1 billion) private share placement to finance its all-share offer to acquire Huali Microelectronics, which has received regulatory approval and is expected to be completed in a month.

China Shipbuilder Wins US$2.7 Billion Order

China State Shipbuilding (CSSC) said its subsidiary Hudong-Zhonghua Shipbuilding and China Shipbuilding Trading have entered into a US$2.7 billion contract to build 12 large container vessels powered by liquefied natural gas. The vessels, each with a capacity of 21,700 twenty-foot equivalent units, were ordered by a unit of Cosco Shipping, according to a filing on August 28. The ships are scheduled for delivery between 2028 and 2030.