Top News
As sanctions on Russia loom, Trump gives diplomacy another chance
US President Donald Trump said he will decide whether to impose tariffs on countries buying Russian oil after his envoy Steve Witkoff meets with Kremlin officials on Wednesday in Moscow. Trump earlier said if Russia doesn't agree to a ceasefire in Ukraine by August 8, he would impose tariffs of up to 100 percent on countries that buy Russian energy, which he said finances the war. India and China are the biggest buyers of Russian oil and gas.
Russian President Vladimir Putin wants to capture four regions of Ukraine before considering peace talks and isn't overly concerned about US threats, Reuters reported, citing sources close to the Kremlin. Trump has been losing patience with the Russian leader's obstinance amid heavy attacks on civilians in Ukrainian cities. Both sides have escalated rhetoric about the risks of nuclear war. Russia's Foreign Ministry said Moscow no longer considers itself bound by a moratorium on the deployment of short- and medium-range nuclear missiles.
The Russian oil issue has created a war of words between the US and India. Trump accused India of not caring if people were dying in Ukraine. India said US pressure to stop oil purchases was unjustified and unreasonable. A spokesman for India's foreign ministry noted that the US still trades with Russia, despite years of sanctions. Last year, American trade with Russia totaled an estimated US$3.5 billion.
Top Business
Record number of Chinese companies seeking IPOs in US
A record number of Chinese companies are seeking initial public offerings on US stock exchanges this year despite trade tensions and more scrutiny over Chinese firms, Reuters reported. In the first half, 36 Chinese companies went public, with another 40 waiting in line. If all get through the listing process, it will break the record 64 Chinese IPOs in the US last year. Among hopeful Chinese applicants is Shanghai-based Xinghui Car Technology, a racing car manufacturer. So far this year, tearoom chain Chagee Holdings has been the biggest IPO in New York, raising US$411 million. About 100 companies are listed there, including tech titans Alibaba, JD.com and Baidu.
China to retain 'accommodative' monetary policy
Chinese policymakers are likely to maintain "accommodative' monetary policies through the end of the year, Xinhua reported, citing analysts. Lou Feipeng, a researcher at the Postal Savings Bank of China, was quoted as saying that the monetary authorities will want to continue support for the economy to maintain the momentum of the first half and to stabilize the yuan. Cuts to the reserve requirements for banks and lower interest rates cannot be ruled out, he said.
After lowering its key rates in May, the People's Bank of China held them steady through July. The one-year prime rate, which references corporate and consumer loans, stands at 3 percent, while the five-year rate, a benchmark for mortgages, remains at 3.5 percent.
BP announces largest oil and gas discovery in 25 years
UK-based energy giant BP says it has made its largest oil and gas discovery of the century 400 kilometers off Brazil's coast. The find is part of a company shift in focus back to fossil fuels and away from its 2020 commitment to net zero. The find follows discoveries of new energy reserves this year in the Gulf of Mexico and Egypt. The company has slashed planned investments in renewable energy. BP on Tuesday reported adjusted second-quarter net income of US$2.35 billion, down 14 percent from a year earlier but beating analyst expectations.
Economy & Markets
China's air passengers rise in July
China's domestic air travel reported a 3 percent rise in passengers to about 60 million in July, as average economy fares fell 7.3 percent from a year earlier. Yicai Global reported. Among the most popular destinations were tourism hotspots. Passengers on international routes rose 10 percent to 7.7 million. The summer travel season is traditionally the most lucrative for airlines, second only to the Chinese New Year.
Delistings on mainland exchanges
Some 23 companies have been delisted from China's three mainland stock exchanges so far this year, according to Wind Information. Liu Chunsheng, a professor at Central University of Finance and Economics, told Yicai said it's a healthy sign, enhancing the overall quality of listed companies. Since 2021,186 companies have delisted. Among July departures were Jinzhou Port after regulators found it had falsified financial statements, and power equipment manufacturer Qingdao Zhongzi Zhongcheng and Internet marketing service provider Hubei Geoway, both showing deteriorating balance sheets beyond repair.
Asia-US freight rates in decline
Asia-US sea freight rates have slumped up to 58 percent since June 1 and are expected to drop further this year as shipping capacity outpaces demand and trade routes shift due to US tariff policies, Reuters reported. Adding to uncertainty are unresolved trade talks between the US and China. Sea freight had a brief increase in late May and early June as shippers took advantage of a 90-day pause in US implementation of tariffs.
Indonesia's economy grows as fastest pace in two years
Indonesia's economic growth accelerated to 5.1 percent in the second quarter from 4.9 percent in the previous three months, the fastest pace in two years. Ahead of Tuesday's data, Bank Indonesia, which has cut policy rates four times since September, forecast economic growth would be up to 5.4 percent this year.
Financial guidelines to help advanced industries
China has issued a set of guidelines to strengthen financial support for new industries in advanced science and technology. Measures could include enhanced incentives for bond and equity financing to meet the capital needs of companies, and introduction of long-term funds. The guidelines, released by the People's Bank of China and six other government entities, state that a financial system for smart and green manufacturing should be largely in place by 2027. China also issued a plan to accelerate digital upgrading in the machinery sector.
Corporate
WeRide gets license for robotaxis in Saudi Arabia
Guangzhou-based WeRide, an autonomous driving company, has received approval from Saudi Arabia to operate robotaxis, becoming the sixth country to license the technology. The company has partnered with Uber and local company AiDriver for pilot operations in the capital Riyadh. A full-scale commercial Robotaxi service is expected to be launched by the end of the year.
JD to open discount marts
JD.com, expanding from its e-commerce retail format, will open its first five large discount supermarkets in Jiangsu and Hebei provinces this month. The store in the Hebei city of Zhuozhou will offer 5,000 goods priced at below the market average.
XD forecasts tripling of net profit
Chinese game developer XD Inc said net profit in the first half will likely triple to 790 million yuan (US$110 million) from a year earlier on at least a 37 percent rise in revenue. Its Hong Kong-listed shares surged 25 percent on the forecast.
Goldman in talks on ice cream investment
Goldman Sachs is in talks to lead an investment group to buy into UK-based Froneri, the world's second-largest ice cream company, in a deal valued at 15 billion euros (US$17 billion), including debt, the Financial Times reported. The deal would see Goldman take a major holding in Froneri held by French private equity firm PAI Partners. Froneri is a joint venture between Swiss food giant Nestle and PAI unit R&R Ice Cream. Nestle sold its US ice cream business to Froneri in 2019 in a US$4 billion deal, giving it control of Häagen-Dazs and other Nestle brands.
Alibaba to quit hypermarket model
Alibaba Group's retailing brand Freshippo will close all its X membership stores, a hypermarket format similar to those operated by Costco and Walmart's Sam's Club, by the end of this month. Alibaba said it would focus on mainstream supermarkets.
China's Prisemi expands chip presence
Shanghai-based Prisemi Electronics, an emerging player in semiconductors, has announced a 403 million yuan (US$56 million) deal to acquire full control of SPSEMI Electronics, a local provider of circuits protection solutions. The cash-and-convertible bonds takeover marks one of China's latest moves to consolidate its chip-supply chain.
Kweichow Moutai nears end of share buyback
Major liquor producer Kweichow Moutai said it has spent 5.3 billion yuan (US$738 million) to buy back 3.5 million shares at prices ranging from 1,408 yuan to 1,640 yuan as of July 31. The company announced last December that it planned to repurchase up to 6 billion yuan worth of stock.
Hongxin Electronics to build AI computing hub
Xiamen-based Hongxin Electronics Technology said it plans to invest 12.8 billion yuan (US$1.8 billion) in a new artificial intelligence computing center. It will be located in the northern province of Gansu.