Weekend Buzz: 4-5 July 2026

Alibaba Bans Employee Use of Anthropic Tools Amid Tech Row

Alibaba has banned internal employees from using Anthropic's Claude models, ordering any existing linkups to be fully uninstalled by July 10. This includes major large language models like Sonnet, Opus and Fable, as well as specialized developer tools like the Claude Code intelligent agent. The move follows a chain of escalating tensions. On June 10, Anthropic sent a letter to the US Senate accusing Alibaba of deploying 25,000 fake accounts to launch a massive "distillation attack" to clone Claude's capabilities. That accusation emerged just as Alibaba was suing the US government to be removed from a military blacklist. Tensions worsened when Anthropic initiated aggressive account bans for Chinese developers. Subsequently, reverse-engineering reports revealed that Claude Code contained hidden mechanisms designed to identify tag, and restrict proxy users from Chinese cloud providers like Alibaba and ByteDance.

Russia Claims Capture of Strategic Eastern Ukraine City

Russia claims it has captured the strategic industrial city of Kostyantynivka in Ukraine's eastern Donetsk region. Ukraine did not initially comment on the claim, though its military officials acknowledged fierce fighting around the already heavily damaged city. Capture of Kostyantynivka would move Moscow closer to his goal of bringing the Donbass region of eastern Ukraine, focused on the provinces of Donetsk and Luhansk, entirely under Russian control.

US, Iran Stage Very Different Nationwide Patriotic Events

The US and Iran, foes in war, are marking today with the guns silent amid very different nationwide patriotic events. The US is celebrating the 250th anniversary of the signing of its Declaration of Independence from British rule. Iran is beginning a week of elaborate funeral ceremonies for supreme leader Ali Khamenei, four months after he was killed on the first day of US and Israeli attacks. The US celebration, which President Donald Trump has dominated, is aimed at reinforcing the image of the nation's world supremacy, though some events were interrupted by a sweltering heat wave. The size of Iran's grand ceremonies is aimed at showing that the country is resilient and has survived a war meant to bring it to its knees.

Separately, Iran's foreign minister confirmed US media reports that Washington warned Tehran Israel had its chief negotiators on a target list during April talks in Islamabad that led to an initial peace framework signed on 17 June. Iranian Foreign Minister Abbas Araghchi said officials in Washington believed Israel might try to kill Iran negotiators in an attempt to derail ceasefire talks.

Top Business

Kuaishou AI Subsidiary Secures US$2.8 Billion in Funding Round

Chinese short-video platform Kuaishou Technology announced a round of outside investments in its Kling AI subsidiary, totaling about 19 billion yuan (US$2.8 billion), with backing from technology giant Tencent. Kling AI, a potential spinoff, was valued at about US$15 billion ahead of the latest funding round. The unit will use the injection of funds to accelerate product development and global expansion. Hong Kong-listed Kuaishou is China's second most popular short-video platform, with a reported 700 million monthly active users. Its stake in Kling AI will drop to about 68 percent following the funding round.

Kling AI has emerged as one of Kuaishou's fastest-growing businesses. The unit specializes in generative AI that transforms text prompts into high-quality videos and short films. The technology is increasingly being adopted by filmmakers, advertisers, content creators and corporations. Following the launch of Kling 3.0 in January, first quarter revenue quadrupled to 650 million yuan. The company operates in a market of intensifying competition, including rivals ByteDance's Seedance and startup Shengshu.

China Resources New Energy Shares More Than Double in Shenzhen Debut

Shares of China Resources New Energy surged 137 percent from their offer price in their trading debut in Shenzhen on Thursday, after the wind and solar power operator raised 24.5 billion yuan (US$3.6 billion) in Asia's biggest initial public offering so far this year. The IPO is expected to be eclipsed by the pending 29.5-billion-yuan share sale in Shanghai by memory chip maker ChangXin Memory Technologies. China Resources New Energy is controlled by China Resources Power, part of state-owned China Resources Group. It invests in, builds and operates wind and solar farms across China.

The successful listing suggests positive investor sentiment continues for companies linked to China's national priorities such as renewable energy and advanced technologies. For the first half, initial public offerings on the Chinese mainland rose 64 percent to US$7.7 billion, according to data provider London Stock Exchange Group.

Amazon to Launch Commercial Satellite Network to Rival Starlink

Amazon has announced that it has deployed a sufficient number of satellites in orbit to launch its Leo commercial space Internet service later this year. The new low Earth orbit network will directly compete with SpaceX's Starlink. Elon Musk-led Starlink currently holds a significant head start, created four years before Amazon announced its entry into the satellite broadband market. Starlink boasts a massive, established constellation of more than 10,000 satellites. China, too, is emerging as rival in the sector.

World Cup Fails to Spur Sportswear Sales in China

The FIFA World Cup hype hasn't translated into the big China sales expected by international sportswear brands like Nike, Adidas and Arc'teryx. All suffered poor in-store sales at Chinese shopping malls in May, the South China Morning Post reported, amid weak consumer spending in the leadup to the games, which are still underway in North America. "The World Cup could have less impact than the Olympics because it focuses on a single sport," the newspaper quoted Cathy Chao, senior director of Asia-Pacific corporate ratings at Fitch Ratings, as saying. "And when the event is in a difficult time zone for people to watch, it has even less of an impact." Nike's China same-store sales growth slowed to 3 percent from a year earlier in May, according to Shanghai-based consulting firm Meritco Services, and Adida sales dropped 2 percent. China's National Bureau of Statistics earlier reported that May retail sales fell 0.6 percent, the first decline since December 2022.

Economy & Markets

PBOC Shifts Policy Stance by Increasing Liquidity in Money Markets

The People's Bank of China announced it will conduct a 1 trillion yuan (US$138 billion), three-month outright reverse repo operation on July 6, shifting its monetary stance to inject net liquidity back into the banking system. With 800 billion yuan of earlier operations maturing this month, the operation will yield a net 200-billion-yuan injection of money. This effectively ends three consecutive months of tightened liquidity through open market operations. The central bank action is to offset upcoming maturities and a looming peak in government bond supplies throughout July.

China Proposes Rules to Ease Refinancing for Listed Companies

China's securities regulator is seeking public feedback on proposed rules to loosen refinancing for listed companies. The revised rules would allow eligible companies to carry out multiple ⁠share issues via private placements after registering plans only once, enabling more frequent access to refinancing. The ⁠revisions also propose a hike in refinancing caps for certain smaller financing procedures. If financing stays below 20 percent of net assets, the cap for Shanghai and Shenzhen-listed firms will double from 300 million yuan (US$41 million) to 600 million yuan. For companies with over 10 billion yuan in net assets, the limit rises to 1 billion yuan. The cap for Beijing Stock Exchange companies will double to 200 million yuan.

China to End Tax Breaks for Hybrid, Commercial New Energy Vehicles

China is set to scrap tax exemptions for plug-in hybrids, extended-range electric car models, commercial electric vehicles and commercial fuel-cell vehicles, starting in 2027. Officials noted that new energy vehicles now comprise more than 60 percent of the market. Many plug-in hybrids now command premium prices, averaging 218,000 yuan (US$32,110), with some exceeding 1 million yuan. However, tax exemptions for standard passenger electric and fuel-cell electric cars will remain.

Anker Innovations Rises in Hong Kong Trading Debut

Shares in Anker Innovations Technology, a Chinese maker of mobile-phone chargers, rose 16 percent from their offer price in their Hong Kong trading debut on Thursday after an IPO that raised HK$4.5 billion (US$576 million). Changsha-based Anker said the proceeds will fund expansion, supply-chain upgrades, hardware research and development, and branding. It held 5 percent of the global market for chargers last year.

Overseas Investors Gain Access to China's Lithium Carbonate Derivatives Trading

The China Securities Regulatory Commission said overseas investors are now able to trade lithium carbonate futures and options on the Guangzhou Futures Exchange in the latest move to open domestic markets wider. The futures and options allow investors to hedge risks in a key material used in the new energy sector.

S&P Global Survey Shows China Services Remain in Expansion

China services activity expanded at a slightly slower pace in June as a 20-month record in overseas demand offset a slip in new business growth, according to S&P Global's RatingDog China General Services Purchasing Managers' Index. The index fell to 54.1 from 54.4 in May, remaining above the 50-mark that separates expansion from contraction. Companies in the sector raised their selling prices for the first time in four months and at the fastest clip in more than two years, and also accelerated hiring, the report said.

Deep Dive

Apple Price Hikes Fire Shot Across the Bow of an Industry in Uncharted Territory

Apple's announcement of price hikes last week surprised consumers, highlighted fierce corporate competition for tight memory-chip supplies and sparked a selloff in technology shares. The consumer electronics industry is finding itself in uncharted territory.

Corporate

Great Wall Motor Targets Expansion in Europe

Baoding-based Great Wall Motor is aiming for a European market share of up to 5 percent by 2030, with the planned rollout of at least 10 models of compact cars and large off-road vehicles in two years. Great Wall was among the first Chinese mainland carmakers to enter the European market, where it now sells in the UK, Germany, Italy and Spain, with expansion into Poland scheduled next month. Great Wall has launched its compact Ora 5 SUV, in gasoline, hybrid and electric versions, in Europe, at prices starting at 26,950 euros (US$30,760), Reuters reported.

Geely-backed Volvo Cars Posts 5.6 Drop in Global Sales

Swedish-based Volvo Cars, majority-owned by China's Geely, said global sales in the second quarter fell 5.6 percent from a year earlier to 171,501 vehicles. Sales of electric and hybrid cars, however, rose 10 percent. Sales of all-electric models in China surged 144 percent to 9,909 cars, but Chief Commercial Officer Executive Erik Severinson said the Chinese mainland market remains "challenging."

Samsung's Backlog of Custom AI Chip Orders Growing

Samsung Electronics backlog of orders for custom AI chips designed by global tech giants, including Tesla, Anthropic and Meta, is projected to approach 50 trillion won (US$32.7 billion).

According to industry sources, Meta is currently collaborating with Samsung on design and production of its next-generation chips in a deal valued at over 10 trillion won. AI startup Anthropic is also utilizing Samsung cutting-edge 2-nanometer process to develop its own custom chips.

Samsung and South Korean rivals SK Hynix and Hanwha plan to invest an additional 312 trillion won to build an advanced industrial hub for semiconductors, AI and aerospace.

Chery Officially Takes Over Nissan Plant in South Africa

Chery, China's largest car exporter, officially took over a Nissan's car plant in South Africa, with pledges to spend millions of dollars upgrading the factory ahead of starting production in mid-2027. The company, which has set a goal of selling 100,000 vehicles a year in the country, said it will establish South Africa as its African hub for manufacturing, exports, research and development and regional operations.

Poly Property Signals First-Half Loss

Hong Kong-based Poly Property, whose major businesses include property development in the Yangtze River and Pearl River deltas in China, forecasts a loss for the first half of up to 800 million yuan (US$118 million), turning from a profit of 208 million yuan a year earlier. The company said delivered projects decreased amid continuing real estate pressures on the Chinese mainland after years of a property slump. The group said it completed contracted sales of 23.2 billion yuan in the first half.