Weekend Buzz: 5-6 September 2026

China Launches Program to Explore Deep Space Between Earth and Moon

China has launched an international science program to deploy a constellation of cube satellites – small satellites built in compact modular units – across deep space between the Earth and moon, collaborating with research institutions in Thailand, Serbia, Egypt, Senegal, Indonesia and other countries. The International Earth-Moon Cube Constellation Megascience Program aims to monitor the space environment, detect gamma-ray bursts and survey lunar resources, with all satellites expected to be deployed by around 2030. Its finding will fill existing gaps in current deep-space observations.

Russia Attacks Kiev Security Office Ahead of New Peace Initiative

A Russian drone struck the headquarters of Ukraine's Security Service in Kiev, aimed at the office of security chief Oleksandr Poklad, who was unharmed. It was Russia's eighth day of aerial attacks on the capital, which have struck warehouses, residential areas and a factory bottling Coca-Cola. US President Donald Trump's two top negotiators – real-estate developer Steve Witkoff and son-in-law Jared Kushner – are visiting Moscow and Kiev this weekend in a renewed attempt to broker a peace deal. Trump said they will be carrying a new peace proposal. Witkoff and Kushner have visited Russia multiple times, but this will be their first trip to Ukraine. Moscow and Kiev were far apart on terms for a peace deal during an earlier round of negotiations. Territory remains a sticking point, with Russia demanding that Ukraine cede control over the 20 percent of the Ukraine it occupies.

EU Joins US Sanctions Against Iran, Seoul Weighs Military Role

The EU joined the US "Operation Economic Outcast" sanctions campaign against Iran, and South Korea said it's weighing a military role to help reopen the Strait of Hormuz. The goal of sanctions is to strangle Iran's economy to force Tehran to end the six-month war by closing its access to digital assets, advanced technology procurement, gold reserves, commercial aviation and shipping. Seoul's move toward possible military intervention comes amid US criticism of allies for not offering assistance. After a week of resumed US and Iran attacks after a month-long pause, global benchmark Brent crude futures ended New York trading at US$96.28 a barrel.

Top Business

Tesla Cybercab to Appear in China, but Not for Sale

Tesla's Cybercab, rolled out at an invitation-only debut in Texas this week, will make appearances at some exhibitions in China, including events in Beijing and Shanghai, to showcase its design and technology, but the US electric vehicle maker said the events won't involve commercial sales on the Chinese mainland. The much-vaunted US debut of the two-seater vehicle with butterfly doors, featuring no steering wheel and no driver pedals. It was designed for use in Tesla's fledgling robotaxi business. Tesla operates a mega factory in Shanghai.

Separately, the US National Highway Traffic Safety Administration on Friday said it has opened an investigation into whether 1,000 Tesla Cybercab vehicles were properly certified. The regulator is examining the process and technical data Tesla relied on to claim compliance with federal vehicle safety standards.

Yunxi Tech Files Application for IPO in Hong Kong

Yunxi Technology, officially dubbed one of China's "little giants," submitted a confidential initial public offering application to Hong Kong's stock exchange, the South China Morning Post reported. The Guangzhou-based startup was valued at 10 billion yuan (US$1.3 billion) after its latest private funding round and will seek to raise several hundred million US dollars in the share offer. High-profile backers include Chinese billionaire Jack Ma's Yunfeng Capital fund and investment firm HSG Capital. Yunxi provides tools to help companies in consumer goods, retail, real estate and automotive sectors integrate artificial intelligence into their operations.

VW Announces Big Cuts in Model Line-Up and Jobs

Volkswagen announced plans to eliminate a further 50,000 jobs, taking the total to 100,000, and to cut half of its vehicle offerings as it faces increased competition from Chinese automakers in global markets and high US tariffs. Germany's biggest carmaker said its domestic factories have excess capacity of about 500,000 vehicles a year. It didn't disclose how the scale-back might affect operations in China, where the group has operated for 40 years and has partnerships with domestic automakers SAIC and FAW. Sales on the Chinese mainland dropped 33 percent in the second quarter, contributing to a 9.5 percent decline in the group's global operating profit.

Stellantis, Huawei, JAC Reported in Talks on Maserati Rescue

Automaker Stellantis is in talks with China tech giant Huawei and carmaker JAC for collaboration to shore up its struggling luxury brand Maserati, Reuters reported. Italian media reported that the deal would use Huawei's Harmony Intelligent Mobility platform for Maserati production, with the aim to start production ⁠of a jointly developed vehicle by the end of next year, and includes a strategy of dual-branding, with a vehicle marketed under JAC's ⁠Maextro luxury marque in China. Maserati shipped fewer than 8,000 cars last year, suffering an adjusted operating loss of US$230 million.

Economy & Markets

China Central Bank Chief Sees No Need to Devalue Yuan

China has neither the need nor the intention of weakening the yuan to gain a trade advantage globally, Pan Gongsheng, governor of the People's Bank of China, told this week's meeting of Group of 20 finance ministers and central bank chiefs in the US. A weaker currency makes exports cheaper. The bank has allowed the yuan to appreciate this year. It sets a daily midpoint for the currency, allowing it to trade within 2 percent on either side. The onshore yuan has risen 3.9 percent against the US dollar this year to 6.718. The value of offshore trading in the currency has risen 2.7 percent to 6.717. Pan said China never deliberately pursues a trade surplus, rebutting claims from some trading partners.

US Labor Market Rebounds, Fueling Rate-Hike Expectations

The US economy added a higher-than-expected number of jobs in August, fueling speculation of a Fed hike in interest rates this month. Nonfarm payrolls rose by 162,000. The monthly gain was the strongest since March, while the unemployment rate held steady at 4.1 percent. Figures for the summer months were revised higher. Strong employment removes one factor for the Fed to keep rates steady or lower them as inflation remains above the Federal Reserve target. President Donald Trump threatened to cease trading with all countries maintaining trade surpluses with the US if interest rates aren't cut this month. "What I'm saying, very simply, is that we should be paying the lowest interest rate in the world," Trump said. The latest data sent major Wall Street stock markets lower and yields on US Treasury bonds higher. Sharply higher debt yields spread across global bond markets this week, raising borrowing costs for governments, companies and consumers.

China Calls on France to Rescind Garment Fee on 'Fast Fashion' Platforms

China's commerce ministry urged France to rescind its new per-garment fee on so-called "fast fashion" foreign online sellers, which principally targets Chinese companies Shein, Temu and AliExpress. The fees, which took effect on September 1, range up to 12 euros (US$14), rising to up to 20 euros in 2030. The fee violates the World Trade Organization's non-discrimination principle, ministry spokesman Huang Ling told a press briefing. The French legislation came amid concerns about the volume of cheaper clothing landing in the domestic market, and the price of repairing often shoddy clothing. Exempt from the fees are online sellers in the EU, Norway and Iceland.

Longsys Prices IPO Shares to Raise US$795 Million

Chinese chipmaker Longsys Electronics has priced its initial public offering in Hong Kong at HK$236 a share, aiming to raise HK$6.2 billion (US$795 million). The company's 26.1 million shares are expected to start trading on September 8. The Shenzhen-based company said it will allocate about 78 percent of net proceeds to research and development of chip design and advanced memory development.

China Proposes New Rules on Private Equity Fundraising

China's securities regulator has proposed new administrative rules governing fundraising by private equity funds, tightening of investor qualifications, sales channels and compliance requirements. The China Securities Regulatory Commission is seeking public comment on the draft rules, which would require individual investors to have at least two years of investment experience and up to 5 million yuan (US$750,000) in household financial assets or average annual income of at least 500,000 yuan. The rules would prohibit unqualified institutions or individuals from raising funds, while banning funds from guaranteeing returns and conducting misleading marketing promotions.

CLSA, UBS Upbeat on China Biotech, Recommend BeOne and Innovent

CLSA, the international arm of Citic Securities, said in a new report on China's biotech sector that fundamentals in the industry remain solid, supported by half-year earnings reports, sustained momentum in licensing-out drug deals and encouraging readings on clinical tests. However, it said investor sentiment on the sector has yet to fully reflect its potential. CLSA recommended Sino-US drugmaker BeOne, Suzhou-based Innovent Biologics and Nanjing-based Leads Biolabs as stocks with attractive valuations.

In a separate report, Swiss investment bank UBS said market expectations for first-half earnings in the industry were conservative, mainly due to concerns over tighter regulation on domestic pharmaceutical marketing activities and anti-corruption campaigns at public hospitals. However, it noted that biotech companies focused on innovative drugs were only mildly affected. It said aggregate sales of 11 listed Chinese biotech companies in the first half rose 34 percent from a year earlier and recommended shares in BeOne, SKB Bio and Innovent.

Shanghai Sets Housing Supply Targets

Shanghai plans to add up to 28 million square meters of commercial housing, or residences built by property developers on government-allocated land, and renovate up to 40 million square meters of old residential communities by 2030 under its latest plan for urban development. The plan, released by the Shanghai government, sets 21 key targets covering housing, urban renewal, public facilities and property management. The city also plans to add up to 270,000 units of affordable rental housing.

Deep Dive

Chinese Auto-Supply Expansion Is Helping, Not Strangling, European Industry

Claims that Chinese companies are somehow surreptitiously seizing control of Europe's auto-supply chain just aren't borne out by the facts.

China's Listed Drugmakers Show Bottom-Line Profit: One-Off or Durable?

Profit has finally hit the bottom lines of a growing group of China's listed innovative drugmakers, but beneath the stronger earnings lies a sharp divide on how that money is made.

Buried in Chinese Corporate Earnings Reports Is an Emerging AI Dividend

The most revealing AI figures don't necessarily come exclusively from AI companies. They are also starting to surface deep inside the earnings of manufacturers whose core businesses aren't generally considered connected to artificial intelligence.

Corporate

China CSSC Lands Second Big Shipbuilding Contract in a Week

China CSSC Holdings, the listed arm of the world's biggest shipbuilder, secured the second major contract in a week. The latest deal, valued at US$1 billion, was with a "well-known" but unidentified shipowner for 10 dual-fuel vehicle carriers, each capable of transporting 8,200 trucks and cars. The company earlier reported its Shanghai-based subsidiary had landed a US$2.7 billion deal to build 12 liquefied natural gas, dual-fuel container vessels for Cosco Shipping.

Li Auto to Invest in Sunwoda Subsidiary

Li Auto said it will invest 2.65 billion yuan (US$395 million) in a subsidiary of Shenzhen-based battery maker Sunwoda Electronic, according to a Hong Kong stock exchange filing. The electric carmaker will take an 8.8 percent stake in Sunwoda Power Technology.

GenScript Biotech Plans Spin-Off, Listing of Probio Unit

Nanjing-based GenScript Biotech announced a proposed spin-off and separate listing of its subsidiary Probio Technology on the Hong Kong stock exchange. The subsidiary operates biologics and advanced therapy contract research and development. Details of the listing haven't been announced.

Xiaomi Expands Auto Dealership Ties in Germany

China's Xiaomi Auto signed deals with eight leading German dealerships, including Ernst Dello and Autohaus Dinnebier, to expand its network in Europe.

Geely-Controlled Polestar Slashes Car Delivery Forecast on US Ban

Swedish-based electric carmaker Polestar, which is majority-owned by Chinese automaker Geely, cut its full-year delivery forecast to single digits from double digits after it became the first foreign automaker in June to be forced out of the US market in a crackdown on Chinese-linked vehicles. The company earlier reported narrowing its second-quarter loss to US$459 million from a year earlier on an 8 percent decline in revenue. In the first half, retail sales rose only 0.4 percent.

Xiaomi Promises 'Surprises' in New Phone Releases

Xiaomi President Lu Weibing, addressing rising costs of memory chips for smartphones, said higher costs cannot simply be passed on to consumers without making products better. The key to selling products at higher prices is making users feel they are receiving excellent value for money, he said.

He cited the example of the company's K100 Pro series, where Xiaomi added more features amid price hikes. He said the Xiaomi 18 Fold will be released on Monday and the 18 Pro series at the end of September – products, he said, that "will bring many surprises."

QwenWork Has Strong Start

Alibaba Cloud announced that its QwenWork notched up more than 30 million users one month after launch, with more than half of them corporate users.

Dyson Enters Oral Care Market With Smart Toothbrush

Singapore-based household appliance maker Dyson unveiled the AI CameraJet smart toothbrush in its first foray into oral care. The device combines brushing and flossing, with a camera to monitor interdental spaces. Priced at US$573, the device uses an integrated 100,000-pixel macro lens scanning at 28 frames per second, paired with an AI algorithm to detect interdental spaces and fire a targeted liquid jet between teeth.