Daily Buzz: 26 February 2026

Chinese, German Leaders Pledge Stronger Ties

Chinese President Xi Jinping met visiting German Chancellor Friedrich Merz in Beijing on Wednesday, with both leaders stressing the need to strengthen their partnership in a more turbulent world buffeted by a profound postwar transformation, Xinhua News Agency reported. Xi cited the need for enhanced communications and bilateral trust. On the war in Ukraine, an issue dear to the Germans who are a strong Kiev ally, Xi said crisis should be resolved through dialogue and negotiations. Merz, on his first visit to China, also met Premier Li Qiang, who called for joint efforts to safeguard multilateralism and free trade -- remarks widely seen as a reference to the protectionist policies of the US. China and Germany are the world's second and third largest economies, and China is German's largest trading partner, with bilateral trade last year totaling US$218 billion. Merz said his nation attaches great importance to expanding economic ties, while stressing the need for fair competition and open communication. China and Germany signed agreements related to climate change, animal disease prevention and sports exchanges.

Trump Regales US Superiority in Record-Long State of Union Speech

US President Donald Trump, in a State of the Union address speech that broke the record for length, regaled his administration's achievements and proclaimed a "golden age" ahead of this year's 250th anniversary of the nation's independence. "Our nation is back, bigger, better, richer and stronger than ever before," he told a joint session of Congress. The president spoke for 107 minutes. He made no mention of his controversial desire to annex Greenland and barely mentioned the war in Ukraine. In comments he did make related to global issues, the president said:

○ US import tariffs will eventually replace the federal income tax. He said the tariffs are "paid for by foreign countries," when, in fact, they are paid by US companies that import foreign goods.

○ The cost of the massive electricity needed to operate AI data centers will be borne by technology companies, not household utility users. "I'm telling them they can build their own plants," Trump said. "They're going to produce their own electricity."

○ Iran will never develop nuclear weapons. "My preference is to solve this problem through diplomacy," Trump said. "But one thing is certain, I will never allow the world's number-one sponsor of terror to have a nuclear weapon. Can't let that happen."

Top Business

Nvidia Beats Forecasts with Almost Doubled Profit

Nvidia, a global leader in AI firm and the world's most valuable company by market cap, reported better-than-expected record earnings for its fiscal fourth quarter ended January 25, driven by 75 percent revenue growth in its core data center business. The company reported quarterly revenue surged 73 percent to US$68.1 billion yuan and net income almost doubled to US$43 billion. Its gross margin was 75 percent. For the full fiscal year, revenue increased two-thirds to US$215.9 billion, and net income rose by the same percentage to US$120.1 billion. The company said it invested US$17.5 billion in private companies and infrastructure funds during the year "primarily to support early-stage startups.

Nvidia said it expects sales in the current quarter of US$78 billion – plus or minus 2 percent -- excluding any expected revenue from sales of its data center chips to China. It noted that its Rubin platform, to be released this year, comprises six new chips to deliver up to a 10-fold reduction in inference token cost, compared with the Blackwell platform. It also announced that its BlueField-4 data processor will power its Inference Context Memory Storage platform, which it calls a "new class of AI-native storage infrastructure for the next frontier of AI."

AI Companies Sugon, Hygon Post Gains in 2025 Earnings

Sugon and Hygon Information, which called of a planned merger in December, announced strong profit growth for 2025, benefitting from expanding domestic demand for computing power. Sugon, an AI server provider, reported a 10.5 percent increase in net profit to 2.1 billion yuan (US$300 million). Revenue rose 14 percent to 15 billion yuan. The company's growth reflects its pivot to high-performance AI infrastructure. Sugon remains a major shareholder Hygon, which makes graphic processing units. Hygon reported net profit last year surged 32 percent to 2.5 billion yuan on a 57 percent surge in revenue to 14.4 billion yuan. The company said the increases reflect deeper penetration into the domestic market for AI chips and high-end processors. The decision to drop merger plans came after a deal that looked good on paper proved complicated in detail because it involved other entities.

ByteDance's Estimated Valuation Surges to US$550 Billion

New York-based investment firm General Atlantic is selling an equity stake in privately owned ByteDance, owner of TikTok, in a deal that values the Chinese technology giant at US$550 billion, Reuters reported, citing two people with knowledge of the matter. The size and value of the stake sales aren't known. The potential divestment will be the first since the Trump administration engineered the sale of TikTok's US operations to an Oracle-led consortium in January and is a jump from a US$330 billion valuation last year estimated after a share buyback. General Atlantic first invested in ByteDance in 2017 when the company was valued at about US$20 billion.

HSBC Posts 7 percent Drop in 2025 Profit

UK-based HSBC Holdings, the biggest bank in Europe and Hong Kong bank by assets, posted a 7 percent decline in 2025 after-tax profit to US$23.1 billion, hurt by US$4.9 billion worth of one-time charges related to its holding in China's Bank of Communications and other costs. Revenue increased 4 percent to US$68.3 billion, the bank said. Its net interest margin rose to 1.59 percent from 1.56 percent a year earlier, with net income from interest rising US$2.1 billion from a year earlier to US$34.8 billion. For the fourth quarter, after-tax profit rose US$4.6 billion to US$5.2 billion, following the sale of business in Argentina and a French portfolio of home and other loans. Revenue in the period increased 42 percent to US$16.4 billion. HSBC said it had assets of US$3.2 trillion at the end of 2025.

Economy & Markets

Shanghai Eases New Homebuying Policies

Shanghai announced new measure to encourage homebuying and maintain one of China's most stable real estate markets during a nationwide property slump. Non-local residents who hold five-year residency permits and have made social security contributions or paid income tax for one year will now be eligible to buy one home anywhere the city. Previously they had to have made contributions or paid taxes for three years and were restricted to homes outside the Outer Ring Road. In addition, the maximum public housing fund loan available for first-time buyers rises to 2.4 million yuan (US$331,000) from 1.6 million yuan. Multi-child families will receive a 20 percent boost to loan limits for second homes. The new rules also exempt families from property taxes when selling an old apartment to purchase a new sole residence, and they also relax controls on home purchases by residents from Hong Kong, Macao, Taiwan and foreign nationals. Shanghai's housing market has remained relatively buoyant while demand nationwide in January fell 39 percent, based on floor area benchmarks.

US Collection of New Tariffs Starts at Lower Rate

President Trump's new round of global tariffs, which he initially announced at 10 percent and raised to 15 percent a day later, are apparently starting off at 10 percent at US customs ports. The tariff will be raised to 15 percent, "where appropriate," US Trade Representative Jamieson Greer said. Trump declared the new tariffs after the US Supreme Court struck down his 2025 "reciprocal" tariffs levied under a different statute. Fedex, Costco and L'Oreal are among a host of countries that have filed lawsuits seeking refunds on tariffs they paid that have been declared illegal by the court.

AI Bubble Risk at Forefront of Creditor Concerns

The risk of an artificial intelligence bubble has for the first time become the top concern among credit investors, overshadowing geopolitical worries, the South China Morning Post reported, citing a survey by Bank of America. The February poll of clients who buy and sell debt found that 23 per cent cited an AI bubble as their top concern, up from 9 per cent in December. Only 10 percent cited geopolitical concerns. Respondents said they are expecting tech high-flyers such as Amazon and Meta to issue about US$285 billion in new debt this year, with 30 percent saying that figure could even reach US$300 billion. Only 10 percent of respondents said they are worried about AI making traditional companies and business models obsolete.

Corporate

China's Skyworth to Take Over Some Panasonic Markets

Chinese consumer electronics firm Skyworth Group will take over Panasonic's television businesses in Europe and North America to accelerate its global expansion, Yicai Global reported, citing a Panasonic insider. The deal is part of Japan-based Panasonic's restructuring following years of financial pressure. Panasonic last year failed to make it into the top 10 global TV manufacturers ranked by shipments, while Skyworth placed sixth with 8.2 million shipments.

Han's Laser to Invest US$150 Million in Offshore Center

Han's Laser Technology Industry Group said it plans to invest US$150 million to establish an operational center, tentatively located in Southeast Asia, to expand its overseas business and enhance service capabilities, Yicai Global reported. The Shenzhen-based firm said the investment will help it seize opportunities in overseas markets and better meet the needs of international customers. Southeast Asia is China's biggest export market.

Tongwei Plans to Acquire Polysilicon Maker Lihao Qingneng

Leading Chinese solar polysilicon maker Tongwei announced it will acquire Lihao Qingneng in a cash and share deal. Tongwei's shares were suspended from trading in Shanghai for 10 days following the announcement. Lihao is primarily engaged in research production and sales of semiconductor materials such as PV-grade high-purity polysilicon and electronic-grade polysilicon, Chengdu-based Tongwei's current silicon material capacity exceeds 900,000 tons, while Lihao Qingneng has planned capacity of 200,000 tons.

Paramount Ups Offer in Bid for Warner Bros

In the blockbuster Hollywood battle, Paramount raised its offer for Warner Bros Discovery to US$31 per share to try to knock Netflix out of contention. Netflix, which originally offered a deal valued at about US$82 billion, has four days to make a counteroffer. Both suitors have been engaged in a bidding war, with their sights set on Warner Bros vast film library.

Supor Posts First Profit Decline in Four Years

Chinese kitchen appliance maker Supor reported its first annual profit decline since 2021, citing weaker exports and lower interest income. Net profit attributable to shareholders in 2025 fell 6.6 percent to 2.1 billion yuan (US$300 million), while net profit excluding non-recurring items dropped 7.3 percent to 1.9 billion yuan. Revenue rose 1.5 percent to 22.8 billion yuan. Gross margin edged up slightly as the company stepped up cost-control and efficiency measures. However, selling expenses increased on intensified domestic competition and higher spending on marketing.

Sunshine Guojian Flags Profit Surge on Pfizer Deal

Chinese biotech firm Sunshine Guojian, in an earnings advisory, signaled that net profit for 2025 is likely to surge more than 300 percent from a year earlier to nearly 3 billion yuan (US$430 million), driven by a major licensing agreement with US-based pharma giant Pfizer. Revenue is projected to soar 252 percent to 4.2 billion yuan. The Pfizer deal includes an upfront payment of about 2.9 billion yuan. The Chinese company focuses on research, manufacturing and commercialization of antibody-based therapeutics.