Weekend Buzz: 20-21 December 2025

EU Agrees to US$105 Billion Loan for Ukraine

EU leaders agreed on a 90 billion euro (US$105 billion) loan for Ukraine to cover the next two years, with financing to come from borrowing and not from tapping frozen Russian assets held in Belgium. Ukraine faces a funding gap of US$160 billion because of cutbacks in US aid, according to the International Monetary Fund. The EU was seeking to fill two-thirds of that hole, but its members were divided on how to finance the aid. The EU is counting on Russian reparations to Ukraine to pay back the loan, with the block of 27 countries reserving the right in the future to tap the US$246 billion in frozen Russian assets to repay the debt. The assets are mostly in bonds, and the EU has been using interest on the bonds to date to lend financial support to Kiev. But as the bonds mature, they turn into cash, which the new EU funding plan will borrow to finance the new loans.

Meanwhile, Ukraine President Volodymyr Zelensky said Kiev and Washington negotiators will hold a new round of talks in the US on Friday and Saturday in pursuit of an end of the nearly four-year war with Russia.

Putin Says He Favors Peace, Signals No Compromise

Russian President Vladimir Putin, in his traditional end-of-year marathon televised Q&A with the public, said Russia is ready and willing to end the war in Ukraine but signaled no willingness to make compromises to achieve a peace deal. He said Russia didn't start the war and indicated Moscow hasn't shifted from demands for Ukrainian territory to end the conflict. A day after the EU approved a US$105 billion loan to Ukraine by borrowing from frozen Russian assets, Putin called the move "daylight robbery" and accused Europe and Ukraine of being stumbling blocks to peace. He said Russian has no plans to attack Europe and there would be no more wars if Russia were treated with the respect. On the domestic front, he blamed the slow economy on central bank attempts to rein in inflation. During the nearly five-hour event, the Russian central bank announced it is lowering its key interest rate by a half point to 16 percent. The Kremlin said 2.6 million questions were submitted from residents across the far-flung nation. They spanned issues such as rising energy prices, poor quality tap water, rutted roads, mobile phone outages and fish prices.

Top Business

US Reviewing Export Controls on Nvidia H200 Chips

The Trump's administration has initiated a review of chip exports to China that could result in shipments of Nvidia's second-most powerful H200 AI chips, Reuters reported. The US would collect a 25 percent fee on every sale under current policy. Any relaxation of export controls would not include Nvidia's most powerful chip, the Blackwell. Reuters reported last week that Nvidia is considering raising production of the H200 because of China demand, but it's uncertain whether the Chinese government would welcome sales as Beijing strives to develop self-reliance in chipmaking.

Separately, China is forecast to remain the world's biggest buyer of semiconductor manufacturing equipment through 2027, as domestic chipmakers keep expanding capacity under the national campaign for self-sufficiency, according to microelectronics industry association SEMI. However, sales are expected to begin a gradual decline next year.

Alibaba Pares Non-AI Holdings to Focus on Embodied Intelligence

Alibaba Group has pared its holdings in the entertainment, semiconductor and retail sectors this month as the Chinese e-commerce giant pivots its focus toward artificial and embodied intelligence, Yicai Global reported. Alibaba Entrepreneurs Fund, a nonprofit initiative that supports startups, and Alibaba founder Jack Ma cut their stake in Huayi Brothers Media to less than 5 percent from 6 percent by selling more than 29.5 million shares in the Chinese film studio. Alibaba also sold over 12.5 million shares in ASR Microelectronics through block trades and open-market transactions, reducing its holding to 12.4 percent from about 15.4 percent, and Alibaba-backed investment firms cut their combined stake in furniture retailer Red Star Macalline to 5.7 percent from 7.3 percent. The company also plans to sell up to 3 percent of its stake in Meinian Onehealth Healthcare Holdings, the healthcare provider announced earlier this month. Artificial intelligence, particularly related to embodied intelligence, has accounted for about half of Alibaba investment since 2023.

MiniMax, Zhipu Advance Hong Kong IPO plans

Chinese AI startup MiniMax received approval from Chinese mainland security regulators for its initial public offering on the Hong Kong Stock Exchange, which is expected next month. Founded in 2022, MiniMax is poised to become the fastest AI company in history to transition from founding to an IPO. Although no figure for the fundraising has been made public, media reports have said the Shanghai-based company will seek at least HK$4 billion (US$514 million) in the share sale.

Meanwhile Tsinghua University spinoff Zhipu AI has filed for a Hong Kong IPO. The company is considered China's largest independent model provider and is consider a rival to OpenAI. Its language and multi-modal tools are compatible with over 40 domestic chips.

Economy & Markets

Shanghai Exchange Opens Bond Repos to Foreign Institutions

The Shanghai Stock Exchange announced Friday that eligible overseas institutional investors can now conduct bond repurchase transactions on its platform. The move aligns with a September central bank policy to meet rising liquidity demands by allowing foreign firms to exchange securities for short-term cash. By opening the onshore repo market, Chinese authorities aim to bring domestic financial infrastructure closer to international standards, offering global institutions more flexible tools for capital management.

China's Holdings of US Treasuries Continue Decline

China reduced its US Treasury holdings in October to their lowest level in 17 years, the South China Morning Post reported, citing figures from the US Treasury Department and data provider Wind. The holdings fell to US$688.7 billion, down from US$700.5 billion in September and 47 percent lower than the peak reached in November 2013. The continuing decline reflects concerns about the sustainability of high US borrowing to finance growing budget deficits. China ranks third among foreign Treasury bond holders, after Japan and the UK.

Japan Lifts Interest Rates to 30-Year High

Japan's central bank raised its short-term rates to a three-decade high, after inflation remained above its 2 percent target for nearly four years. The Bank of Japan raised benchmark rates by a quarter point to 0.75 percent. The bank said real interest rates –actual borrowing cost after inflation is deducted from bank rates -- are expected to remain "significantly negative." Bond yields and the stock market rose after the rate hike was announced.

Japan's consumer prices dropped to 2.9 percent in November. Inflation in the price of rice, a Japanese staple, came in at 37 percent, continuing to slow from a May rate that more than doubled in a year. Core inflation, which strips out fresh food prices, remained unchanged from 3 percent in October.

China Extends Synthetic Rubber Anti-Dumping Duties

China's Ministry of Commerce said it is extending anti-dumping duties as high as 222 percent on synthetic EPDM rubber imported from the US, South Korea and the EU. The duties were due to expire this month, but the ministry said they will continue while a yearlong review is conducted. The rubber is widely in automotive and construction sectors.

Deep Dive

Private Insurance in China to End 'One Leg' Drug Payment System

China has opened a new payment channel for some of its most expensive drugs, allowing private insurers to issue policies covering high-cost, innovative therapies not on the government reimbursement system.

New Regulation Aims to Curb Exports of 'Zero-Mileage' Used Cars

China's used-car export market, the largest in the world, is braced for a shakeup in 2026 as a new regulation comes into effect that requires car exporters to wait at least 180 days after a car is registered to ship it overseas.

Corporate

Ace Robotics Open Sources Latest Model

Ace Robotics, led by SenseTime co-founder Wang Xiaogang and AI scientist Tao Dacheng, opened sourced its Kairos 3.0 embodied intelligence model that stimulates the physical world. The company said Kairos 3.0 gives robots a "smart brain" and advances the field of spatial intelligence, the South China Morning Post reported. The system was developed to run on graphics processing units from Chinese chip designers such as MetaX and Biren Technology.

Nike Reports Quarterly Decline in China Sales

US sportswear and equipment maker Nike said sales in China dropped 17 percent from a year earlier to US$1.4 billion in its second fiscal quarter ended November 30, at least partly due to higher tariffs. Chief Executive Elliott Hill said improvement in China markets didn't happen at the pace the company hoped but China remains a key market opportunity for Nike. A 9 percent increase in North American sales helped offset losses in China. Globally, the company reported a 32 percent drop in net income to US$792 million on a 1 percent rise in revenue to US$12.4 billion.

Wanxiang US Unit to Pay US$53 Million in Settlement

The US arm of Hangzhou-based Wanxiang Qiaochao, China's largest auto-parts maker by revenue, reached agreement with the US Department of Justice to pay US$53 million to settle a dispute over anti-dumping import duties on well-hub assemblies and other components. The agreement, which ends nearly 10 years of litigation, involves both collection of lost revenue and civil penalties. Wanxiang America didn't admit wrongdoing.

Rino.ai Fundraising Increases to US$100 Million

Shenzhen-based robovan maker Rino.ai completed its third financing round, taking total fundraising this year to more than US$100 million. The company said the money will be used to

accelerate production of its self-driving delivery vans and increase overseas expansion. The company currently has 2,000 vans operating in more than 170 cities.

Fosun Unit Wins US Trial Nod

Shanghai-based Fosun Pharmaceutical said its subsidiary Henlius Biotech received approval from the US Food and Drug Administration to begin Phase I clinical trials of HLX18, a version of cancer immunotherapy treatment drug Nivolumab. The US clearance allows the company to advance clinical development outside China. The company said cumulative research and development spending on HLX18 has totaled about 52.5 million yuan (US$7.5 million).

Hengrui Gets Green Light for Obesity Drug

Hengrui Pharma has received clinical trial approval from China's drug regulator for SHR-2906, a therapy targeting obesity that was developed by subsidiary Shendi Pharmaceutical. Currently, no similar product has been approved globally. Hengrui said it has spent 17 million yuan (US$2.4 million) on research and development.