Daily Buzz: 5 June 2026

Top News

Lebanon Ceasefire Rejected by Hezbollah, Trump Wears Rose-Colored Glasses

The latest Israeli-Lebanese ceasefire began crumbling hours after it was signed, when Iran ally Hezbollah, which wasn't party to the agreement, strongly rejected its terms. Hezbollah called it "surrender, not a peace agreement" and said Israel must withdraw from areas of Lebanon it now occupies. The US-brokered truce is contingent on Hezbollah's ceasing rocket attacks on northern Israel. It calls for the creation of trial security zones in Lebanon, where Hezbollah would be banned and Lebanon's army would take control. Iran has insisted that peace talks with the US must include an end to the conflict in Lebanon.

US media reports said US President Trump is reluctant to resume attacks on Iran, a war that is increasingly unpopular with the American public. Trump again said a peace deal with Iran is "close" and added that he would be "honored" to meet Iran's supreme leader if agreement is reached.

Global Oil Inventories Shrink to Near 'Critical Levels'

Global oil inventories risk hitting "critical levels" soon as the war in Iran effectively limits oil transit through the Strait of Hormuz, the International Energy Agency said. It could take six to eight months to fully reopen the waterway even when a peace deal is signed, the agency said. Its analysts said China's crude reserves remain relatively resilient but its onshore volumes have begun to shrink modestly. The strait carried 20 percent of global oil supply before the war, most of the crude bound for Asia. The agency said global crude inventories were drawn down by 250 million barrels over March and April. China has a robust oil industry but still imports crude. Last month, those imports fell 23 percent to 38.5 million tons, according to Chinese customs data. Benchmark Brent crude futures are hovering below US$100 a barrel, raising prices for consumers around the world because so many products rely on oil derivative products.

The EU estimates that 1.3 million jobs could be lost this year in automotive, construction, metals, chemicals and transport sectors because of higher energy prices. It said low-income households could spend an additional 1.4 percent of income on transport fuel.

Zelensky Proposes Face-to-Face Talks with Putin on Ukraine War

Ukrainian President Volodymyr Zelensky wrote an open letter to Russian President Vladimir Putin proposing a face-to-face meeting between both leaders in an effort to end their more than four-year war. Zelensky said it would be "wrong to simply wait" until US attention toward peace efforts shifts from its focus on the Middle East, saying peace can come only through direct talks. He also called for a full ceasefire for the duration of negotiations, something Putin has always rejected. The Kremlin acknowledged receipt of the letter but made no further comment.

China, South Korea Expanding Flight Connections

China and South Korea agreed to expand passenger and cargo flight rights for the first time in seven years, reflecting growing travel demand and improving bilateral ties. Under an agreement, weekly passenger flight rights will increase by 56 flights to 664, while cargo flight rights will rise by 14 flights to 68. Passenger traffic between South Korea and China reached 4.4 million in the first quarter, surpassing pre-pandemic levels.

Top Business

Asian AI-Related Shares Set to Slump After Wall Street Selloff

The tech-heavy Kospi index in South Korea stocks plunged 4.5 percent in the first half hour of trading today, following the slump in shares of heavyweight AI companies on Wall Street. The move away from tech stocks began a day earlier with Broadcom losing 12.6 percent, after its outlook on AI chip sales disappointed investors. The sector is once again beset by fears that the AI boom on stock markets is running out of steam.

TSMC Chief Says Chip Supply Won't Meet Demand 'for Years'

Taiwan Semiconductor Manufacturing Chief Executive C.C. Wei told the company's annual general meeting on Thursday that TSMC's global chip supply will fall short of AI-fueled demand for years to come, guaranteeing revenue growth for the world's largest contract chipmaker. Wei repeated earlier estimates of sales growth of more than 30 percent this year after posting record-breaking sales in 2025. Prices of chips continue to rise on supply shortages, hiking input costs for companies that need them in production. In April, TSMC said capital spending this year could reach as high as US$56 billion to address capacity shortages. Last week, Jensen Huang, head of Nvidia, a major TSMC customer, said his company plans to invest about US$150 billion a year in Taiwan technology.

Shougang Lanzatech Shares Rise in HK Trading debut

Shares in Beijing-based Shougang Lanzatech Technology rose 44 percent in their trading debut in Hong Kong this week. The company raised HK$684 million (US$87.3 million) in the share sale, which was oversubscribed about 1,400 times at the retail level. The company specializes in low-carbon products such as ethanol used as a green auto fuel and in perfumes and packaging materials. Its microbial protein products are used in agricultural planting and livestock breeding. The company said it plans to use sale proceeds for the construction and upgrading of production facilities, research and development, and investments in a gas pipeline company in China.

Foxconn, Intel Tie Up to Develop AI Data Systems

Foxconn, Taiwan's multinational contract electronics manufacturer, and US chipmaker Intel have agreed to jointly develop next-generation infrastructure for AI data systems. The partnership will combine Intel's processor and accelerator technologies with Foxconn's manufacturing and systems integration capabilities. The two firms will also work on high-speed interconnect technologies, cooling systems and energy-efficiency solutions -- areas that have become increasingly important as AI workloads drive higher power consumption. Beyond data centers, the companies aim to develop AI computing platforms for applications in manufacturing, robotics and smart cities. The companies did not disclose financial terms, potential target customers or a commercial deployment timeline.

Economy & Markets

Futu Limits Brokerage Business From Chinese Mainland

Hong Kong-based Futu Holdings has joined fellow brokerages Tiger and Longbridge in making changes related to mainland business after the trio were fined by Chinese regulators for unlicensed cross-border services. Futu said mainland account holders will no longer be able to buy stocks and other securities, though selling them will remain unaffected. The brokerage said fund transfers from mainland accounts will also be suspended. The tightening of rules on overseas accounts is part of Beijing's efforts to redirect capital back to domestic stock markets and strengthen oversight of cross-border money flows.

Shein Fined US$26 Million by French Regulators

Chinese-owned global discount e-commerce platform Shein was fined 22 million euros (US$26 million) by French regulators for breaches of consumer regulations related to returns, product information and order confirmations. The company said it will challenge the penalty. The fine follows an earlier French fine of 40 million euros after revelations that its platform was selling weapons and sex dolls resembling children, but a Paris court rejected a move by authorities to shut down the online marketplace. Shein has become popular with budget-conscious consumers around the world for its rock-bottom prices on clothing, gadgets and accessories. The company was founded in Nanjing but moved its headquarters to Singapore in 2022 for regulatory and financial reasons, while keeping its supply chains and warehouses in Chinese mainland.

Barking Up the Right Tree? Pet-Food Maker Fubei Applies for IPO

Shanghai-based pet-food maker Fubei filed for a listing on the Hong Kong stock exchange, betting that investors will realize its growth potential in a nation with an estimated 126 million pet dogs and cats. Despite slower consumer spending in China, people who often treat pets as part of the family and don't skimp on spending to feed them. Fubei ranks second in China's third-party manufacturing for pet food brands. Its proprietary brand Bi Le ranked 10th among domestic pet food brands by annual retail sales last year, the South China Morning Post reported. Last year, the retail-sales value of China's pet food industry reached 108.4 billion yuan (US$16 billion), and the market size is forecast to grow at a compound annual rate of 10.4 per cent in the next five years, according to the company's prospectus. No figure was given for how much the company will seek in the IPO.

China's E-Bikes Make Inroads Overseas

China's electric two- and three-wheeled vehicles are gaining traction overseas, driven by competitive pricing, improving technology and growing demand for low-emission transport. In 2025, China exported more than 26.7 million electric two-wheelers, valued at US$6.8 billion, according to customs data. In Fengxian County, Jiangsu Province, China's largest electric tricycle manufacturing hub, exports rose 87 percent in the first four months this year from the same period in 2025. Electric three-wheelers are widely used for cargo and transportation in more rural areas.

Corporate

China Literature to Acquire Controlling Stake in YKHT

Hong Kong-listed China Literature, China's largest online literature platform, will pay 400.8 million yuan (US$59.2 million) to acquire a controlling stake in YKHT, producer of the "Ling Cage" sci-fi series and the animated adaptation of "The Three-Body Problem." The holding will be purchased from Linzhi Lichuang, an investment vehicle controlled by Tencent Holdings, raising its stake to 59.7 percent. The deal is the latest move by Shanghai-based China Literature to strengthen animation and content-production capabilities as it expands beyond online literature, Yicai reported.

Alibaba Opens Tongyi Qianwen Platform to Developers

Alibaba's Tongyi Qianwen opened its agent and skills platforms to third-party developers, enabling them to build and run their own agents on the AI model platform. Luckin Coffee, KFC, Mixue and China Eastern Airlines are among the companies now beta-testing the service.

WeChat Collaborates with Chinese Smartphone Makers

Tencent-developed social media platform WeChat is collaborating with smartphone makers Huawei, Honor, Xiaomi and Vivo to roll out agent-to-agent assistant capabilities that will allow users to initiate WeChat voice or video calls, or send messages via smartphone voice assistants. The cooperation aims to turn WeChat's capabilities into more natural daily usage. WeChat is widely used by more than 1.4 billion Chinese to do everything from online payments to hailing a ride.

Kling AI to Conduct First Pre-IPO Fundraising

Kuaishou's video-generation spinoff Kling AI is conducting its first round of financing, with a pre-money valuation of US$18 billion, ahead of a planned initial public offering in Hong Kong next year, Chinese media reported. Kuaishou has yet to formally conclude the spinoff of Kling AI, which it valued at US$20 million last month. If completed, Kling AI would become the highest-valued independent video generation model product globally.

Daqo Plans US$887 Million Production Facility

Daqo New Energy, a Chinese maker of polysilicon, said it plans to invest 6 billion yuan (US$887 million) to build a production site for smart energy systems. Its Shanghai unit will establish the facility in the Jiangsu Province city of Kunshan in two phases. The Chongqing-based parent said the center will focus on the research, development, production and sales of smart energy system solutions and related equipment, including energy storage and solid-state transformers, breakers, and batteries.

Sinopec, BYD Agree to New Joint Ventures

China Petroleum & Chemical (Sinopec), Asia's largest oil refiner, signed an agreement with BYD, China's largest electric carmaker, for three joint ventures. The collaboration covers smart flash-charging energy ecosystems, integrating "energy replenishment" with automotive services and upstream and downstream segments of the industrial chain, including automobiles and battery materials, automotive lubricants, marine fuel bunkering and energy storage.