Top News
European leaders talk with Trump ahead of his summit with Putin
European leaders expressed mild satisfaction with the outcome of a "virtual summit" held with US President Donald Trump two days before he meets Russian President Vladimir Putin in Alaska. Trump reportedly told them his goal is to secure a ceasefire. French President Emanuel Macron said Trump agreed that Ukrainian borders shouldn't be changed without Kiev's consent and that Western guarantees for the nation's future security are important in any peace deal. Europe and Ukraine have largely been sidelined as the focus on ending the war shifts back to Trump and Putin. The two men will meet at an US Air Force base outside Anchorage on Friday. Separately, Trump said he will push for a trilateral summit with Putin and Ukraine President Volodymyr Zelensky if talks with Putin go well. He again warned that Russia will face "very severe consequences" if Putin doesn't agree to end the war.
Israel revives talk of relocating Palestinians
Israel is in early discussions with South Sudan about the possibility of resettling Palestinians from the Gaza Strip to the war-ravaged African country, Associated Press reported. South Sudan's civil war has killed an estimated 400,000 people and left parts of the country in severe famine. Similar talks have been held with other African countries. Israel Prime Minister Benjamin Netanyahu said on Wednesday that Palestinians are free to leave Gaza, but he didn't indicate where they might go. US President Donald Trump once proposed that Palestinians be resettled to Arab countries in the Middle East and Gaza be turned into a Riviera-style resort area.
South Korea arrests former first lady
A South Korean special counsel arrested Kim Keon Hee, wife of ousted former President Yoon Suk Yeol, over alleged stock manipulation, bribery and election interference. She is accused of rigging shares in Seoul-based Deutsch Motors from 2009 to 2012 and accepting luxury gifts from the controversial Unification Church in return for favors. Her husband was ousted from office over his martial law declaration and has been detained on charges of obstruction and abuse of power.
Top Business
Tencent beats forecasts with 16 percent increase in quarterly net profit
Tech giant Tencent, China's most valuable company by market capitalization, said second-quarter net profit rose 16 percent from a year earlier to 55.6 billion yuan (US$8 billion), on a 15 percent increase in revenue to 184.5 billion yuan, beating analysts' forecasts. Tencent shares in New York rose 7.4 percent.
Th company reported double-digit growth in most segments. Gaming was a key driver, with mainland revenue rising 17 percent and international sales up 35 percent on the success of titles including "Honor of Kings" and "Dungeon & Fighter Mobile." Its Tencent Video arm had 114 million subscribers. Tencent has been increasing investment in artificial technology in the past two years. Capital expenditure in the latest quarter surged 119 percent to 19 billion yuan. The company has developed its own large language model, called Hunyuan, with the "Turbo S" version launched in February.
Tencent Music, a leading online music and audio entertainment platform that is separately listed in Hong Kong, said second-quarter net profit rose 43 percent from a year earlier to 2.1 billion yuan (US$336 million) on a revenue gain of 18 percent to 8.4 billion yuan. The company reported 124.4 million paying users in the quarter.
US startup Perplexity AI makes bid for Google Chrome
Privately held US startup Perplexity AI made an unsolicited US$34.5 billion bid for Google's
Chrome browser, CNBC said. The figure is nearly twice the current valuation of Perplexity, but the company said several investors have agreed to back the deal. Google, which is under pressure from US antitrust regulators to divest itself of Chrome, had no comment. Chrome is estimated to be the most used web browser in the world. Most analysts said they aren't taking the Perplexity bid very seriously.
Economy & Markets
Global new energy vehicle sales slow
Growth in global sales of electric and hybrid vehicles in July slowed to 21 percent from 25 percent in June, Reuters reported, citing market research firm Rho Motion. China accounted for more than half of 1.6 million sales in the month, though growth in the world's largest auto market slowed from 36 percent in the first half to 12 percent in July. European sales surged 48 percent, and North American sales were up 10 percent.
Chip industry investment shifts
Investment in China's semiconductor industry shrank 10 percent in the first half to 455 billion yuan (US$63 billion), though that rate was lower than the 42 percent decline last year, Yicai reported, citing Shanghai market research firm CINNO. Industry spending patterns are shifting to chipmaking equipment, a segment that showed a 53 percent increase in investment, amid national efforts to make Chinese supply chains more self-sufficient.
Margin trading on Chinese exchanges hits 10-year high
Margin trading on Shanghai and Shenzhen stock exchanges, a gauge of market sentiment and leverage levels, topped 2 trillion yuan (US$275 billion) for the first time since 2015. Sectors with margin trading exceeding 100 billion yuan include electronics, computers, biotech and autos. Under margin trading, investors borrow money, usually from a broker, to purchase stocks that serve as collateral for the loan. Buying on margin can magnify returns or also increase losses.
Trump threatens Fed chair with lawsuit amid rate spat
With tame July inflation to back up his claim that interest rates should be lowered, President Donald Trump threatened a "major lawsuit" against Fed Chairman Jerome Powell if rates aren't reduced. He said the lawsuit would relate to Powell's mismanagement of a US$2.5 billion renovation at Fed headquarters in Washington. Analysts raised their forecasts for a rate cut after July inflation slowed to 0.2 percent from 0.3 percent in June. Powell has held off on rate cuts, saying the Fed needs to assess price effects from Trump's import tariffs.
Separately, the US budget deficit widened by a fifth in July to US$291 billion despite the nearly US$21 billion increase in customs collections from Trump tariffs.
China launches green fuel pilots
The National Energy Administration has unveiled nine projects involving green methanol, green ammonia and fuel ethanol. The pilot projects will tap renewable power such as wind and solar, mostly in the northeast of the country, to electrolyze water for hydrogen, then synthesize it into green fuels. Five projects focus on methanol and three on ammonia. China has tripled its wind and solar capacity by 220 gigawatts a year since in the past five years.
Corporate
Chip equipment maker to close Chinese factory
Hong Kong-listed ASMPT, a Singapore-based company that makes semiconductor assembly and packaging equipment, will close its factory in the southern Chinese city of Shenzhen and lay off 950 workers to streamline its mainland operations, the South China Morning Post reported. The company said other global manufacturing operations aren't affected. The company said it will take a one-time restructuring charge of around 360 million yuan (US$50 million) related to the closure.
Suning settles dispute related to Carrefour China takeover
Suning agreed to pay Carrefour China 220 million yuan (US$31 million) to settle a long-standing dispute over its 2019 acquisition of an 80 percent stake in the French retailer's China supermarkets The dispute related to fees and other financial details associated with Suning's agreement to buy the remaining 20 percent at a fixed price if Carrefour China chose to sell, which occurred in 2022.
Nutritional supplement company seeks buyers
The owners of aland Health Holding, a China-based global nutritional supplement maker, are seeking to sell their combined controlling stake, targeting a valuation of more than US$1.5 billion, Reuters reported. Founder and Chairman Chang Liang holds around 60 percent, with the rest held by investment firms that include Affinity Equity Partners, Goldman Sachs Growth Equity and Henderson Investment Corp.
Evergrande assets sold off
China Evergrande administrators said they have sold US$255 million of the property developer's assets in the past 18 months as part of China's largest debt liquidation process and have taken control of more than 100 of the company's subsidiaries. It was the first court filing on the matter since 2022. Evergrande's defaults on debts in 2021 triggered a deep slump in the Chinese real estate market.
Equity firm to make first robotics investment
Shanghai-listed Jiuding Investment said it plans to buy 53.3 percent of Nanjing-based startup Bio-inspired Intelligent Technology at a price of 213 million (US$30 million). The equity fund manager said its entry into the robotics industry will help the startup with research and development costs.
Changan share structure takes shape
Changan Automobile said 19 senior executives and the Chinese carmaker's indirect controlling stakeholder Changan Automobile Group plan to collectively buy no less than 5.7 million yuan (US$793,000) of its shares within the next six months. Late last month, the Chongqing-based auto maker was restructured as a stand-alone company under the control of the central government.