Top News
Shenhua Energy plans major merger
China's Shenhua Energy announced plans to acquire 13 subsidiaries from its parent, China Energy Investment Corp, as part of a sweeping asset restructuring that could prove to be one of the nation's largest mergers and acquisitions. The cash-and-share deal involves coal, coal-fired power and coal-chemical businesses. Shenhua's shares in Shanghai will be suspended for 10 trading sessions, beginning today. The company also trades on the Hong Kong exchange.
The restructuring aims to resolve overlapping businesses and strengthen Shenhua's position as an integrated global leader in energy. Specific financial terms of the deal are under discussion, but analysts said it may rank among China's largest. With assets of over 650 billion yuan (US$90 billion), Shenhua is a heavyweight in China's energy sector and ranks in the top 200 global companies by market capitalization.
Hamas proposes aid plan, refuses to lay down arms
Hamas said it is prepared to coordinate with the Red Cross to deliver aid to Israeli hostages it holds in Gaza if Israel permanently opens humanitarian corridors for aid to Palestinians and halts airstrikes during distribution of food, medicine and other critical supplies. The Sunday announcement came after Hamas released a second video showing skeletally thin hostage Evyatar David, amid continuing reports of Palestinians dying from starvation and being killed at food distribution sites.
Hopes for any immediate ceasefire in the Gaza conflict were dashed after Hamas earlier said it won't disarm – a key Israeli demand -- unless a sovereign Palestinian state is established, which Israel adamantly opposes.
Separately, Itamar Ben-Gvirpr, Israel's far-right national security minister, and 1,250 other people provoked outrage by praying at the Al-Aqsa mosque compound in East Jerusalem, a holy site sacred to both Jews and Muslims. The prayers broke a decades-old agreement that Jews are allowed to visit but not pray at the site, which is under Jordanian custodianship.
Russia, Ukraine trade blame over weekend attacks
Russia blamed Ukrainian drones for an attack on an oil depot near the Black Sea resort of Sochi, triggering a massive fire. Ukraine blamed Russia for a missile strike in the southern city of Mykolaiv that destroyed homes and injured local residents. US President Donald Trump has threatened to impose new sanctions on Russia this week if Moscow doesn't agree to a ceasefire in the three-and-a-half year war. Among the sanctions, he said he will impose a 100 percent tariff on countries that buy oil and gas from Russia, which include India and China.
Top Business
Bank account frozen in Wahaha inheritance brawl
A Hong Kong court has frozen an HSBC bank account holding US$1.8 billion related to the estate of Zong Qinghou, founder of beverage giant Wahaha, often called "China's Coca-Cola." His death in February 2024 triggered a high-profile legal battle for his inheritance. The account freeze stems from a lawsuit filed by three of Zong's extramarital children against Kelly Zong Fuli, Wahaha's chief executive who is publicly known as sole heiress. The plaintiffs claim Kelly breached a family agreement by withdrawing over US$6 million and failing to establish offshore trusts worth US$2.1 billion.
The court ruled the account will remain frozen until related proceedings in a Hangzhou court are resolved or a further order is issued. The ruling marks a rare legal intervention into the high-profile Chinese inheritance brawl and highlights governance risks in family-run firms. Wahaha said the lawsuits do not affect its business operations. Zong was once China's richest man. The frozen funds were intended as the core of the proposed trusts.
India says imports of Russian oil continue
Indian officials rebutted media reports that its refineries have discontinued buying oil from Russia ahead of US President Donald Trump's threat to slap 100 percent import tariffs on any country that trades with Russia as a punitive measure against the Kremlin's refusal to accept a ceasefire in the Ukraine war. But India's ANI news agency, quoting official sources, said Russian imports haven't stopped. India is the biggest buyer of Russian energy.
Separately, India took umbrage at Trump's recent comment that its economy is "dead," with Prime Minister Narendra Modi noting his country is poised to become the world's third-largest economy. India, which has incurred a 25 percent US tariff unrelated to Russian oil, has yet to sign a trade deal with the US.
Buffett's Berkshire Hathaway posts profit drop
Warren Buffett's Berkshire Hathaway, a conglomerate as valued for gems of wisdom from its founder as for its holdings, reported a 59 percent drop in second-quarter net income to US$12.4 billion, and warned of adverse effects of Trump administration tariffs. Operating profit fell 4 percent. The company, with interests in railroads, consumer goods, energy, technology and insurance, took a US$3.76 billion write-down on its 27 percent stake in food giant Kraft Heinz, a longtime underperformer in the portfolio, and said insurance underwriting premiums fell. Buffett, 94, announced in May that he will step down as chief executive at the end of the year. The folksy founder became something of a guru over the years for some investors.
Economy & Markets
OPEC+ to increase production
Eight leading oil-producing countries in OPEC+ agreed on Sunday to raise oil production again by 547,000 barrels a day next month. The increase is the latest in a series of output hike as concerns mount over potential supply disruptions linked to Russia. OPEC+, which pumps about half of the world's oil, began output increases in April with a modest hike of 138,000 barrels a day, followed by larger hikes of 411,000 barrels in May, June and July, and 548,000 in August. In early Asian trading, the price of benchmark Brent crude oil futures fell 0.62 percent US$69.24 a barrel.
Cruise industry profits from popularity of ocean-going holidays
China's cruise industry experienced a 40 percent surge in passengers in the first half of the year, the Ministry of Natural Resources said, citing strong government support for the industry and the launch of new luxury liners made in China. Revenue in what the government calls the "marine-tourism sector," including cruises, increased 8 percent increase in the first six months to 772 billion yuan (US$108 billion.) Chinese ports handled more than 4 million cruise ship passengers last year, and the volume is forecast to surge to 40 million by 2035.
Tighter regulation on e-commerce merchant fees
China's State Administration for Market Regulation on Saturday unveiled new guidelines on how much e-commerce platforms can charge participating merchants. The aim is to reduce the cost burden on sellers and create a more transparent pricing structure. Instant food delivery platforms, including Ele.me and Meituan, issued statements promising more reasonable discounts and subsidies, and opposing malicious competition.
Corporate
Two funds raise stakes in CICC, Tencent pares its holding
China tech giant Tencent pared its stake this month in China International Capital Corp by HK$105 million (US$13.4 million), to 10.75 percent from 11.01 percent, while asset management firms US-based BlackRock and China's E Fund raised their investments, according to filings with the Hong Kong stock exchange. BlackRock raised its stake in CIIC to 5.01 percent from 4.94 percent with the HK$25.5 million purchase of shares, and E Fund spent HK$153 million to lift its holding to 5.13 percent from 4.76 percent.
Global New Material takes over Merck unit
Global New Material International Holdings, a Chinese maker of synthetic mica, completed its 665 million euro (US$760 million) acquisition of Merck Group's surface solutions business, marking the largest cross-border deal in that minerals sector. Mica comprises a group of silicate minerals used to give gloss to drywalls and paints in automobiles, roofing and electronics. The acquisition gives Hong Kong-listed Global New Material production hubs in Germany, Japan and the US, adding to existing sites in China and South Korea.