Top News
Let the parade begin! China celebrates victory of the past, vision for the future
President Xi Jinping will preside over an historic Victory Day parade in Beijing today, and sitting beside him in the reviewing stand will be Russian President Vladimir Putin, North Korean leader Kim Jong Un and Iranian President Masoud Pezeshkian – the first time the four leaders have ever appeared together at an event.
The parade celebrates the 80th anniversary of the defeat of Japan in World War II. But in a broader sense, the event marks China's emergence as a global military power and its leadership role in shaping a new world order not dominated by the US. More than 20 heads of state will be attending. The US and leaders from Europe, with the exception of Serbia and Slovakia, will be notably absent.
The grand parade, which begins at 9am, Beijing time, will move the historic Chang'an Avenue (Avenue of Eternal Peace) to Tiananmen Square, displaying China's cutting-edge hypersonic weapons, nuclear-capable missiles and undersea drones, There will also be columns of soldiers in precision marching.
In a one-on-one meeting on the eve of the parade, Xi and Putin pledged continuing solidarity. US President Donald Trump brushed aside their warm rapport, saying it poses no threat to the US and "China needs us more than we need them."
The parade follows a successful two-day meeting of the Shanghai Cooperation Organization, where more than 20 world leaders endorsed Xi's call for a multipolar world free of the old "cold war mentality" and dedicated to economic development that benefits all.
US proposal for postwar Gaza envisions mass relocation of Palestinians
The US has drafted a 38-page document of detailed plans for postwar Gaza that embodies President Donald Trump's vision of turning the war-torn territory into a seaside Riveria that will involve mass relocation of Gaza's 2 million Palestinians, the Washington Post reported. It proposes at least 10 years of US stewardship over Gaza and the creation of up to eight "smart cities" powered by artificial intelligence. Under the plan, Gaza residents who own land would be given a "digital token" in exchange for the right to develop their property. The tokens could be used to start a new life outside Gaza or redeemed for an apartment in one of the smart cities. Hamas denounced the plan, saying Gaza is part of a Palestinian homeland and not for sale.
Trump doubles down on criticism of India
US President Donald Trump heaped more criticism on Prime Minister Narendra Modi after India's leader attended the Shanghai Cooperation Organization summit in China, with photos of his congenial meeting with Chinese President Xi Jinping and Russian President Vladimir Putin, splashed across global media. Trump said on his social media site that trade relations with India are a "a totally one-sided disaster," showing no sign that fences will be mended by stalled negotiations on a new trade deal. In its absence, Trump has slapped a 25 percent blanket tariff on imports of Indian goods and added a 25 percent punitive tariff because of its imports of Russian oil. Modi has thus far rebuffed American bullying.
US Navy attacks Venezuelan ship, killing 11
US naval vessels attacked a Venezuelan ship in international waters, setting it alight and killing 11 sailors. President Donald Trump said the vessel was carrying drugs to the US and was operated by a terrorist organization under the control of Venezuelan President Nicolas Maduro.
China extends visa-free entry to Russian visitors
China will allow Russian ordinary passport holders to enter the country visa-free for stays up to 30 days, beginning September 15. The Foreign Ministry said the visa policy reflects the high-level of China-Russia relations and supports people-to-people exchanges. China already grants similar visa exemptions to 75 countries.
Top Business
Carmaker Nio narrows 2Q loss, predicts profit by fourth quarter
Shanghai-based electric carmaker Nio reported its second-quarter loss narrowed slightly to 4.99 billion yuan (US$699 million) from 5.05 billion yuan a year earlier. Revenue rose 9 percent increase to 19 billion yuan. The company, which has also been a leader in operating batter-swapping stations for its vehicles as an alternative to conventional charging stations, delivered 72,056 vehicles in the quarter, a gain of 26 percent, but its vehicle margin fell to 10.3 percent from 12.2 percent. The company singled out strong market demand for its Onvo L90 and NIO All-New ES8.
For the first half, Nio's loss widened to 11.7 billion yuan from 10.2 billion yuan a year earlier, amid a mainland price war that has eroded earnings margins. Revenue increased 13.5 percent to 31 billion yuan. Founder and Chief Executive William Li Bin told analysts on a call after the results that the company "expects to turn to profit in the fourth quarter," with a gross margin of around 16-17 percent needed to break even. "We anticipate total deliveries in the third quarter to range between 87,000 and 91,000, setting a new company record," he said.
BeOne becomes largest cap pharma company on mainland market
Shares of BeOne Medicines, formerly known as BeiGene, surged 8.3 percent in Shanghai to 324.85 yuan (US$45.54) on Tuesday, making it the largest pharmaceutical company by market value on China's A-share market. The company, with major offices in Beijing, the US and Switzerland, specializes in drugs for cancer treatment and operates in 45 countries. The company, also listed on the Nasdaq in New York, reported in early August that second-quarter net income turned to a profit of US$94 million yuan from a year earlier loss of US$120 million, with revenue to US$$1.3 billion from US$929 million, primarily on sales of its Brukinsa drug.
The rally in BeOne's shares lifted the broader mainland market for innovative drugs, with Changchun High-Tech Industry New, Wecome Pharmaceutical and MicuRx Pharmaceutical rising more than 8 percent. The gains followed the National Healthcare Security Administration's August 28 preliminary list of new candidates for the 2025 national reimbursement system, highlighting T-cell cancer drugs.
Aux Electric gets cool reception in HK stock market debut
In a sign that investor appetite for Hong Kong initial public offerings may be slowing, shares in Chinese air conditioner maker Aux Electric fell in their trading debut. The shares closed at HK$16.48 (US$2.11), down 5.7 percent from their offer price, following an IPO that raised HK$4.15 billion and was 557 percent oversubscribed. The Ningbo-based company is the world's fifth-largest air conditioner manufacturer by sales. The disappointing market reception came as Hong Kong and mainland Chinese markets retreated on Tuesday from recent strong gains.
Economy & Markets
European stocks slump as government bond yields rise
Europe's Stoxx 600 index fell 1.47 percent, its steepest decline in a month, as investors worried about deteriorating UK finances that have pushed the nation's 30-year government bond yield to its highest since 1998. France's long-bond yield hit its highest since 2009 ahead of a no-confidence vote next week that could topple the government. EU inflation in August edged up to 2.1 percent from 2 percent in July.
Gold, silver prices rise on investor jitters
Gold hit a record high of US$3596.70 in New York on Tuesday and silver prices remained above the US$40 level high as investors on the prospect of a cut in US interest rates by the Federal Reserve this month, on the Trump administration's clashes with the Fed and on lingering geopolitical tensions. Precious metals often act as safe havens in times of uncertainty.
Chinese mainland Internet industry revenue climbs
China Internet firms amassed revenue of 1.14 trillion yuan (US$15.8 billion) in the first seven months of the year, up 3.5 percent from a year earlier, according to the Ministry of Industry and Information Technology. The Beijing-Tianjin-Hebei region in northern China posted the fastest growth rate, followed by the eastern region and the Yangtze River Delta region.
Corporate
UBTech gets funding boost of US$1 billion
China's UBTech Robotics said it has secured a credit line of up to US$1 billion from a Hong Kong investment firm to finance production expansion that includes a joint venture in the Middle East. The leading robot manufacturer said the credit line will come from Infini Capital, which invests in high-technology companies. Infini, which has an office in Abu Dhabi, will help Shenzhen-based UBTech establish a research center and a factory in the Middle East.
SAIC-GM offers big discount on flagship model
In a sign that the price war in the Chinese vehicle market isn't over yet, the Shanghai-based joint venture of SAIC and General Motors said buyers who purchase its Buick Envision Plus midsize sport utility model this month will get a price discount of 10,000 yuan (US$1,400). The sticker price for the car is 169,900 yuan, but with the discount and the national trade-in subsidy, the vehicle will cost only 144,900 yuan. US electric carmaker Tesla just announced a 3.7 percent price reduction in new longer-range Model 3 to 259,500 yuan.
Midea reports record-breaking profit
Chinese appliance maker Midea Group said first-half profit and revenue hit records, fueled by government subsidies for consumers who trade in old products for new. Net profit rose 25 percent to 26 billion yuan (US$3.6 billion), and sales jumped 16 percent to 252.3 billion yuan. The Foshan-based company said sales revenue from home appliances such as air conditioners, refrigerators and washing machines surged 13 percent, while earnings from its commercial and industrial segment were up 21 percent. Overseas sales from 44 overseas factories rose 18 percent.
Gotion to build two lithium battery factories
Electric car battery maker Gotion High-Tech said it will spend 8 billion yuan (US$1 billion) to build two new lithium battery factories. Each plant will have an annual capacity of 20 gigawatt hours. One will be located in Nanjing and the other in the city of Wuhu in Anhui Province, with completion scheduled within 24 months. Gotion reported half year net profit rose 35 percent to 367 million yuan on a 15 percent rise in operating revenue to 19.4 billion yuan.
Unitree Robotics sets IPO timeline
Chinese robotics startup Unitree Robotics, which earlier announced it will seek an initial public offering on the mainland, said online that it plans to submit listing documents in the fourth quarter. Hangzhou-based Unitree specializes in quadruped and humanoid robots. About 80 percent of its quadruped robots serve research, education and consumer markets, with the remainder applied in industries such as inspections and firefighting.
CNOOC unit wins US$4 billion Qatar contract
Offshore Oil Engineering, a unit of China National Offshore Oil (CNOOC), said it won a US$4 billion contract for a project owned by QatarEnergy to build offshore structures and install submarine pipelines. It is a major breakthrough in the company's goal of expansion in the Middle East.