Top News
Trump announces Vietnam trade deal, steps up pressure on Japan
President Donald Trump said the US has struck a trade deal with Vietnam that includes a 20 percent tariff on exports to the US and a 40 percent tariff on goods that originate in other countries but are shipped from Vietnam. Trump said on his social media platform that the agreement will give the US tariff-free access to Vietnam's markets.
Separately, Trump turned up the heat on trading partners who have not come to terms yet on new trade agreements, threatening to impose an import tariff of 30 percent or 35 percent on Japan. A day earlier, Trump scolded Tokyo for what he said is its unwillingness to open its rice market to US exports. Trump has set a July 9 deadline for trade agreements with all trading partners.
US stops some weapons supplies to Ukraine
The US has halted some weapons shipments to Ukraine, the White House said, even as Russian attacks have intensified. The Department of Defense decision came after a review of military support to other countries amid concerns that US stockpiles of weapons are too low. Patriot air-defense missiles and precision munitions are included in the suspended shipments. Ukraine's foreign ministry warned that action will encourage continued war not peace. President Donald Trump has thus far failed in attempts to end the war, which has been waging for more than three years.
China urges united front with EU
Chinese Foreign Minister Wang Yi, in talks with EU officials in Brussels, urged the bloc to unite with China against "unilateralism and bullying," according to China's foreign ministry. He called for enhanced communication and respect for each other's interests ahead of the China-EU leaders' summit later this month, and also reaffirmed China's support for a political solution to the Ukraine conflict.
Iran officially breaks with UN nuclear watchdog
Iran President Masoud Pezeshkian gave final approval to legislation passed last week by parliament that suspends ties with the UN's International Atomic Energy Agency. The measure, which now comes into effect, was in reaction to US and Israeli attacks on Irani nuclear facilities during the 12-day war now under a ceasefire. Iran criticized the UN nuclear watchdog for failing to condemn the strikes and for issuing a statement on June 12 that accused Iran of failing to comply with its nuclear obligations.
Top Business
BYD still king of the road
BYD retained its crown as top Chinese "new energy" carmaker in June, with first-half sales of 2.1 million electric and hybrid vehicles. The latest industry leaderboard shows BYD, Xiaomi and Geely leading the pack in a crowded, competitive market.
Geely sold 1.4 million vehicles in the first half, and Xiaomi, about 500,000 units. Trailing them were XPeng, with sales of 197,190 vehicles; Leapmotor, with 221,644; Li Auto, 203,938; and Nio, at 114,150. US-based Tesla, which operates a factory in Shanghai, reported first half-sales of 364,474, down 15 percent from a year earlier.
Separately, auto dealer groups in Shanghai and several provinces are urging carmakers to ease sales targets and price controls, and give them more management autonomy to address mounting vehicle inventories.
Upmarket housing in Shanghai is hot with buyers
Homebuyer demand for the higher end of the new housing market in Shanghai remains strong despite rising prices, according to Shanghai Centaline Property. The Kangding Yishijiu project in Jing'an District, the luxury No. 1 Courtyard development in Huangpu District and the Runyun Jinmao Mansion project in Putuo District sold out within hours of units going on sale.
Separately, China Real Estate Information said residential development sites sold by local governments in 300 cities across China in the first half fell 8 percent, but average prices paid by bidders shot up 9 percent amid growing competition for premium parcels.
Mainland to overtake Taiwan in chip capacity
The Chinese mainland will surpass Taiwan region and dominate global chip foundry capacity by 2030, according to a report by Yole Group. It projects that the mainland's market share will rise from 21 percent last year to 30 percent, overtaking Taiwan's current 23 percent. Chinese mainland has been heavily promoting development of the domestic chip industry to end reliance on imports.
Economy & Markets
Upbeat assessment of mainland stocks
The CSI 300 Index, which tracks the top 300 stocks traded on the Shanghai and Shenzhen stock exchanges, is expected to deliver earnings growth of about 6 percent in the second half, according to Meng Lei, China equity strategist at Swiss investment bank UBS. He said mainland markets may still experience some short-term volatility but share valuations should rise as long as liquidity remains loose and global trade tensions don't flare up again. Meng said cyclical stocks should do well and recommended investors to maintain diversified portfolios.
STAR market clears listing for unprofitable biotech startup
Shanghai's Nasdaq-style STAR Market approved the first initial public offering under reinstated listing rules for unprofitable companies, clearing Wuhan Heyuan Biotechnology to sell shares. Heyuan Biotech, which specializes in recombinant protein technology, plans to raise 3.5 billion yuan (US$488 million) by issuing 89.5 million shares. Guotai Haitong Securities is lead underwriter.
US bond yields rise on concern about Trump legislation
US bond yields rose amid concerns about the debt implications of President Donald Trump's mega tax-and-spending legislation. The contentious bill narrowly passed the Senate and now heads back to the House, where conservatives are voicing strong opposition to a measure that will raise US debt, which is funded by government bonds, to an estimated US$5 trillion. The benchmark 10-year Treasury rose to 4.283 percent, the 30-year bond was up at 4.809 percent, and 2-year notes ended at 3.787 percent.
Jinbo Bio, YST deal
Shanxi Jinbo Biopharmaceutical, the most valuable company on the Beijing Stock Exchange, struck a deal with wellness giant YST whereby the biotech company will issue a 6.24 percent stake to YST for up to 2 billion yuan (US$275 million), potentially the largest-ever cash placement in the exchange's history. In a related transaction, Jinbo's founder will transfer a 5 percent stake worth 1.4 billion yuan to a YST-controlled entity. The deal could reshape Jinbo's market reach by leveraging YST's ties to bottled water company Nongfu Spring, which entered the skincare market in 2017.
New rules on paying cash for gold
China's central bank will require reporting of large cash purchases of gold under new anti-money laundering rules. According to the People's Bank of China, gold transactions of 100,000 yuan (US$13,800) or more in cash – or a foreign currency equivalent – must be reported to a designated agency within five days, effective August 1.
Corporate
Luckin lands in US
Popular Chinese coffee chain Luckin ventured into Starbucks territory, opening its first two outlets in the US with splashy debuts in New York City. Drinks were priced as low as US$1.99. While Starbucks holds a dominant 30 percent-40 percent market share, recent US sales have declined. In China, Luckin has outpaced Starbucks in outlet numbers by appealing to younger, price-sensitive consumers.
CATL begins industry first assembly lines
Contemporary Amperex Technology (CATL), the world's biggest maker of electric vehicle batteries, began operation of its first production lines based inside a carmaking factory. Two CATL assembly lines at Seres Group's mega-factory in Chongqing will make power cells for the group's premium electric vehicle brand Aito, which was developed in partnership with Huawei Technologies.
HelloRide to expand Singapore fleet
Chinese bike-sharing firm HelloRide received approval from Singapore's Land Transport Authority to expand its fleet from 15,000 to 20,000 bicycles. Launched in 2022 with just 1,000 bikes, HelloRide's Singapore venture is a natural fit for a city that restricts downtown car traffic. The city now has licensed use of 55,000 share bikes, with local operator Anywheel managing 35,000 of them.
Hozon seeks new investors amid bankruptcy proceedings
Hozon New Energy Automobile, which markets under the Neta electric car brand, is looking for new investors as it undergoes debt reorganization. The Zhejiang Province-based company entered bankruptcy proceedings in June after a creditor sued the company for unpaid debt of 5.3 million yuan (US$730,000), amid total liabilities exceeding 10 billion yuan. Hozon officials denied rumors of a takeover by Japan's Toyota Motor.
GM China joint venture reports 18 percent sales growth
The joint venture of SAIC Motor, General Motors and Liuzhou Wuling Motors said global sales in the first half rose 18 percent from year earlier to 764,544 units, led by surging demand for electric vehicles. Exports in the period increased 17 percent to 125,539 vehicles. Among the most popular-selling models was four-door Hongguang Mini-EV family car.
Eve Energy to develop cold-resistant batteries
Chinese lithium battery manufacturer Eve Energy opened a 10-billion-yuan (US$1.4 billion) facility in the northeastern city of Shenyang to develop electric car batteries capable of enduring extreme cold. Poor battery performance in cold temperatures has limited sales of electric vehicles in regions of China with frigid winters.
Qantas cyberattack affects 6 million customers
Australia's Qantas Airways is investigating a major cyberattack that may have exposed personal data of about 6 million customers, including names, email addresses, phone numbers and birthdates. The breach didn't involve payment details, passport numbers or frequent flyer logins, the carrier said.