Top News
Bullish HK debuts
Hong Kong's world-leading streak of IPOs continued on Wednesday as five Chinese mainland companies that raised a combined HK$10.4 billion (US$1.3 billion) from initial share offers ended their first trading day above their issue prices.
Shares in chip designer Fortior Technology led gainers, surging 16 percent from their initial share price of HK$120.50. Apple supplier Lens Technology gained 9.13 percent; robot maker Geekplus Technology was up 5.36 percent; Dazhong Dental Medical increased 3.5 percent; and Xunzhong Communication closed 0.2 percent above its initial share price.
In the first half, Hong Kong led the world in IPO value, with 42 new listings raising HK$106.7 billion. Corporate advisory firm KPMG said new listings for the full year could reach as high as HK$250 billion with between 100-300 IPOs.
US farmland ban aimed at Chinese buyers
The US Department of Agriculture said it will ban sales of farmland to "nationals of countries of concern or other foreign adversaries" – a veiled reference to China. The US government is also reportedly investigating existing land owned by China-linked buyers, potentially seeking to revoke past purchases. Chinese-owned farmland in the US totals about 121,400 hectares, or about 0.02 percent of agricultural properties.
Russia unleashes largest attack on Ukraine
Russia attacked Ukraine with 728 drones and 13 missiles, the largest aerial bombardment in the more than three-year war. It came hours after President Donald Trump harshly criticized Russian President Vladimir Putin for blocking a US-led ceasefire proposal and said he would send Patriot missiles and other military equipment to Ukraine.
Top Business
Starbucks attracts multiple suitors for China stakes
Starbucks has received about 30 offers for potential stakes in its China business, valuing the mainland operations at up to US$10 billion, CNBC reported. Among interested investors are Asian equity firms Centurium Capital and Hillhouse Capital, and US-based KKR, it said. The report said Starbucks may retain a 30 percent stake. The company, which operates about 7,600 outlets in China, has been suffering from lackluster profits amid rising competition from popular, cheaper domestic coffee chains like Luckin.
Shanghai leads nation in sales of luxury homes
Sales of luxury homes priced at 50 million yuan (US$7 million) or more in Shanghai in the first half of the year accounted for 80 percent of residential property sold in that upmarket segment nationwide, according to the China Real Estate Information Corp. It said 482 homes in that price category were sold, defying a general slowdown in the residential property market.
US container imports from China plunge
US imports of containerized goods from China in June plunged 28 percent from a year earlier on Trump administration import tariffs, according to supply chain technology provider Descartes. China shipments totaled 639,300 ten-foot equivalent units, a standard marine cargo measure.
Economy & Markets
China consumer prices edged up in June
China's consumer prices in June rose 0.1 percent from a year earlier after four months of decline, the National Bureau of Statistics reported. Producer prices, which measure costs at the factory gate, fell at the fastest pace in almost two years, dropping 3.6 percent and fueling concerns about deflationary pressures.
Separately, consumer spending in the previous four years accounted, on average, for 86 percent of economic growth, according to the National Development and Reform Commission.
Pending introduction of yuan in HK stock trading
Shares traded on the Chinese yuan counter of the Hong Kong Stock Exchange will soon be included in the Stock Connect program linking the city and mainland markets, according to the chief executive of the Securities and Futures Commission of Hong Kong. Leung Fung Yee said the new link would allow investors to trade shares of Hong Kong-listed companies either in the Hong Kong dollar or the yuan. Tencent, Alibaba and JD.com were among 24 companies that participated in trials of the "dual counter model" when it was introduced two years ago.
China begins trading benzene derivatives
Benzene futures and options contracts began trading on the Dalian Commodity Exchange, all closing higher. Benzene is an important raw material for the petrochemical industry. The derivatives are aimed at providing the industry a hedging tool against volatile prices.
Corporate
Nvidia chalks up a world first
US chipmaker Nvidia briefly made global equity history when the value of its shares rose to a market capitalization of US$4 trillion, the first company in the world to reach that milestone. The shares fell back before the close of New York trading, leaving the world's most valuable company with a market cap of US$3.97 trillion.
New World trims Shanghai assets
Hong Kong property giant New World Development is selling the office portion of its Shanghai K11 mall building for 2.85 billion yuan (US$397 million) as part of a divestment following a HK$88.2 billion (US$11 billion) debt refinancing deal with creditors. K11 was China's first art mall concept.
Pony.ai teams up with Dubai on robotaxis
Guangzhou-based autonomous driving firm Pony.ai has formed a partnership with the Dubai transit authority to begin robotaxi services. The first vehicles will begin road testing this year, with full operations expected to start in 2026. Dubai has set a 2030 target for 25 percent of all trips in the city to involve self-driving vehicles.
Chipmaker seeks to sell shares
Chengxin Memory Technology, a Chinese maker of dynamic random-access memory chips, has taken its first steps toward an initial public offering on the mainland, according to the China Securities Regulatory Commission. No time frame was given. The company, founded in 2016, has hired China International Capital Corp and China Securities as advisors on the share sale.
Zhuoyue New Energy to build biofuel plant in Thailand
China's Zhuoyue New Energy, the nation's largest biodiesel producer, said it plans to invest 700 million yuan (US$98 million) to build a biofuel plant in Thailand. The first phase, with an annual production capacity of 300,000 tons, will take 12 months to complete.