Weekend Buzz: 31 January-1 February 2026

Gold, Silver Plunge, China Seeks to Cool Investment Mania

Gold and silver plunged in New York trading on Friday as the US dollar rose and profit-takers moved in after months of skyrocketing prices. Gold, which surged 65 percent last year, fell as much as 9 percent, its biggest slide in four years. Silver, which soared 135 percent in 2025, dived as much as 31 percent, its worst trading day since 1980.

The steep declines came after Chinese banks and commodity exchanges earlier on Friday took steps to cool the frenzy in mainland precious metals investment. Chinese regulators temporarily suspended trading of one silver commodity fund for a day, the South China Morning Post reported, with four other funds related to gold and oil trading halted briefly. The intervention came after several fund-management firms issued risk alerts.

Two of China's largest state-owned banks also announced adjustments to consumer gold investment products they offer. Beginning February 7, Industrial and Commercial Bank of China (ICBC) said it will impose transaction limits on its Ruyi Gold products on weekends and public holidays when the Shanghai Gold Exchange is closed. The limits cap daily accumulation and redemption volumes. China Construction Bank said it will raise the minimum amount for scheduled gold investment plans to 1,500 yuan (US$215) from February 2.

China's six listed gold mining firms, in preliminary 2025 earnings forecasts, expect cumulative net profits to surge at least 84 percent from a year earlier, exceeding 60.2 billion yuan on increased bullion prices.

Starmer Rebuffs Trump's Warning on China Deals

US President Donald Trump warned it's "very dangerous" for the UK to deal with China as British Prime Minister Keir Starmer continued his visit to Beijing. Starmer rebuffed the warning during a visit to Shanghai on Friday, saying it would be foolhardy for Britain not to engage with China and noting that the Trump himself has a visit to China scheduled in April. Starmer's warmer ties with China are as seen as a continuing pivot away from the US by Washington's allies in Europe, amid tensions related to Trump policies.

Trump's warning came after new business agreements were reached between Starmer and Chinese President Xi Jinping at meetings in Beijing to reset bilateral relations. Xi and Starmer exchanged warm greetings, pledging to seek closer trade ties. During the visit, UK-based pharma giant AstraZeneca announced a US$15 billion investment in China, and both countries agreed on cooperating to end illegal immigration and providing bilateral visa-free entry for tourists, among other issues.

UN Chief Sees Looming Financial Crunch

UN Secretary-General António Guterres, in a letter to all 193 members, warned that the international organization could run out of money by July unless nations honor their financial commitments. The US, the largest contributor, has balked at some peacekeeping budgets and the missions of agencies. In January, President Donald Trump withdrew the US from 31 UN agencies that he said were a waste of taxpayer dollars and operated in opposition to Washington policies.

Gaza Death Toll: 70,000 Palestinians

About 70,000 Palestinians were killed during the war in Gaza, the Israeli newspaper Yedioth Ahronoth reported, citing military officials. The conflict nominally ended in a tense ceasefire brokered under a US peace plan last October.

Top Business

Panama Invalidates CK Hutchison Ports Contract

Panama's top court struck down the contract allowing Hong Kong-based CK Hutchison Holdings to operate two ports near the Panama Canal as unconstitutional, opening a new chapter in the conglomerate's fraught efforts to sell off its global port facilities, Bloomberg News and Reuters reported. Shares in the company, controlled by tycoon Li Ka-shing, tumbled 4.6 percent on the news on Friday. US President Donald Trump has been seeking to wrest control of the two ports from "Chinese control," citing national security concerns. CK Hutchison has been operating the two ports since 1997. They are part of CK Hutchison's plans to sell 43 global sea terminals to a consortium led by Italy's Mediterranean Shipping and US private equity firm BlackRock for about US$23 billion. However, Beijing, which must approve the sale, has insisted that state-owned Cosco Shipping be part of the buyer consortium.

Gary Ng, a senior economist at Natixis, told Bloomberg that the court ruling reflects US pressure on Panama, following Trump's declaration that all of Latin America is within the US sphere of influence – a doctrine reinforced by last month's attack on Venezuela and the removal of its president. On Thursday, Trump declared Cuba an "extraordinary threat" and threated to impose tariffs on any country selling oil to the communist-led island. Venezuela was formerly a major supplier.

Chinese AI Module Makers Signal Profit Boom

Zhongji Innolight and Eoptolink, two leading Chinese makers of optical modules used in high bandwidth data communications, released strong earnings projections for 2025 on Friday, reflecting global demand for AI computing power. Zhongji Innolight said it expects net profit to reach between 9.8 billion yuan (US$1.4 billion) and 11.8 billion yuan, a surge of up to 128 percent from a year earlier. That would follow nearly a 400 percent stock surge in 2025, sending the company's market cap to 721 billion yuan. Eoptolink projected its 2025 net profit will skyrocket about 249 percent to nearly 10 billion yuan. Both companies attributed their success to the rapid rollout of high-speed 800G and 1.6T products required for massive AI infrastructure by global terminal customers.

US Decertifies Canadian-Made Jetliners

Canada's aircraft industry came into President Donald Trump's crosshairs in stepped-up attacks on the northern US neighbor, with the president saying he is removing US certification for all aircraft made in Canada and will impose a 50 percent tariff on all Canadian plane makers, including Quebec-based Bombardier's Global Express commercial jets. Trump said the tariffs would remain until Ottawa certifies US-made Gulfstream aircraft. The Canadian Broadcasting Corp, citing the Gulfstream website, reported that a numbers Gulfstream jets – including the G450, G350, GV, G550 and G500 – have been certified by Canada. Some 864 Bombardier CRJ feeder jets are currently used by US regional airlines operated by United, Delta and American airlines. Trump earlier this month threatened 100 percent tariffs on Canada if it proceeds with a new trade deal with China.

Economy & Markets

Vanke Warns of Record Loss for 2025

China Vanke, once the mainland's largest homebuilder, warned that its loss last year probably widened by two-thirds to a record as the nation's four-year property slump continued. In a preliminary earnings statement, Vanke projected its 2025 net loss grew to about 82 billion yuan (US$11.8 billion), compared with 49.5 billion yuan the previous year, Bloomberg News reported, citing a filing with the Hong Kong stock exchange. The company has engaged in a series of negotiations with creditors on repayment of debt. This week, Vanke got clearance from creditors to repay 40 percent of the principal due on two bonds it failed to repay at maturity last month after receiving another bailout loan from its major shareholder Shenzhen Metro.

Trump Taps Kevin Warsh to Lead Federal Reserve

US President Donald Trump nominated Kevin Warsh to take over as chairman of the Federal Reserve when incumbent Jerome Powell's term ends in May. Warsh, 55, is a former member of the Fed's board of governors and a frequent critic of the central bank. He is expected to support Trump's call for deeper and faster cuts in interest rates. Investors closely watch Fed actions because they determine the cost of borrowing in the US and in the wider world. In reaction, the US dollar strengthened and government Treasury bond yields were mixed. Warsh's appointment must be approved by the Senate.

China's State-Owned Sector Profits Fall

Profits at state-owned companies last year fell 6.3 percent from a year earlier to an aggregate 4 trillion yuan (US$561 billion), the Ministry of Finance reported. However, combined revenue edged up 0.5 percent to 84.9 trillion yuan. The debt-to-asset ratio of that sector increased 0.4 percentage point to 65 percent. The data reflect the challenging transformation underway to upgrade state-owned companies that have lagged the private sector in adopting advanced technologies and management efficiencies.

Transsion, Apple Cite Chip Cost, Supply Problems

Transsion Holdings, a Chinese phone maker that dominates the market in Africa, said it expects profit for 2025 to halve from a year earlier on the surging price of memory chips. The Shenzhen-based company, in a preliminary earnings report, said it expects to show profit of 2.5 billion yuan (US$360 million), with revenue declining 5 percent to 66 billion yuan. That would be its biggest profit decline since the company went public in Shanghai in 2019.

Separately, smartphone giant Apple warned that problems in the chip supply chain could affect earnings this year, after the company announced record iPhone sales in the fourth quarter. "The constraints that we have are driven by the availability of the advanced nodes that our system chips are produced on," Chief Executive Tim Cook said. "We're seeing less flexibility than normal in the supply chain, partly because of our increased demand."

Deep Dive

Chinese Mergers, Acquisitions Surge in Search for Efficiency, Markets

China's corporate sector posted a 30 percent increase in mergers and acquisitions last year both at home and abroad as the government encouraged consolidation to raise business efficiency and expand markets. The trend is forecast to continue this year though risks remain for the unwary.

Corporate

Chinalco, Rio Tinto to Take Controlling Stake in Brazil's CBA

Aluminum Corporation of China (Chinalco) and Anglo-Australian mining giant Rio Tinto said they have agreed to acquire a controlling stake in Brazilian aluminum producer CBA for US$903.6 million. The companies will acquire a joint stake of 68.6 percent of shares from Brazilian conglomerate Votorantim and other shareholders. Chinalco is the biggest shareholder in Rio Tinto's UK listing, and the two are partners in a large iron ore mine in Guinea.

Tencent, Alibaba, ByteDance Eye TV Gala to Promote AI Apps

Chinese tech giants such as Tencent, Alibaba and ByteDance are targeting the annual Chinese Spring Festival TV gala broadcast on the eve of the Lunar New Year to pitch their latest artificial intelligence applications to a viewing audience in the millions. The companies will use their apps to interact with viewers during the February 14 telecast and are offering "red envelopes" of cash to viewers, among other promotions. Alibaba's Qwen assistant has secured the exclusive naming rights for shows to be broadcast by multiple provincial TV stations, including Shanghai Oriental TV. The hours-long annual TV entertainment extravaganza has long attracted fierce competition among advertisers. Unitree humanoid robots, a big hit as dancing performers during the last two years' shows, will be back again this year.

China Approves First Targeted Vitiligo Drug

China has approved its first targeted drug for vitiligo, a chronic autoimmune disorder that causes patches of skin to lose pigment or color. The approval marks a milestone in dermatological treatment, China Medical System Holdings said. The National Medical Products Administration approved its affiliate Dermavon's ruxolitinib phosphate cream for patients aged 12 and older.

Angang Steel Forecasts Narrowing Loss

Angang Steel projects a 2025 net loss of approximately 4 billion yuan (US$566 million), narrowing its year-earlier loss of 7.1 billion yuan. The company noted that an overall improvement in China's steel industry's last year but said the imbalance between high supply and weak demand remains.

Caocao to Fund Robotaxi Expansion in Private Placement

Caocao Mobility, the ride-hailing arm of automaker Geely, announced a private share placement to expand its robotaxi business. Caocao is seeking to raise HK$383 million (US$49 million) by issuing up to 12 million shares. Caocao is collaborating with Geely and other partners to develop a fully customized robotaxi model, with 100,000 units of the self-driving vehicles to be deployed by 2030.