Daily Buzz: 21 May 2025

Top News

China cuts LPR, deposit rates

China cut its key lending rates to underpin the nation's economic growth and consumer spending. The People's Bank of China trimmed the one-year loan prime rate, which feeds into corporate and household loans, to 3 percent from 3.1 percent, and the 5-year rate, which benchmarks mortgage rates, to 3.5 percent from 3.6 percent. They were the first reductions since last October.

Following those changes, major Chinese banks lowered deposit rates for the first time this year. Interest on one-year, fixed-term deposits was reduced by 0.15 percentage point to 0.95 percent, the three-year rate was pared a quarter point to 1.25 percent, and the five-year rate fell a quarter point to 1.3 percent.

CATL dazzles in debut

Shares in China's CATL, the world's largest battery maker, rose 16 percent from their offer price to HK$3.06 on their first day of trading in Hong Kong. The initial public offer, oversubscribed 150 times, raised HK$35.7 billion (US4.55 billion) and was the largest global listing to date in 2025. The company, which is also listed on the Shenzhen exchange on the mainland, said most of the funds raised from the IPO will go toward construction of a new factory in Hungary to supply batteries to European carmakers.

Stalled aid for Palestinians

Israel said 93 trucks carrying food and other humanitarian aid entered Gaza on Tuesday, but the UN said no food, medicine and other supplies have been delivered to its warehouses for distribution. UN humanitarian chief Tom Fletcher told the BBC that 14,000 babies are at risk of dying in the next 48 hours unless aid reaches them. UK Prime Minister Keir Starmer, calling the situation "intolerable," suspended trade talks with Israel. Israel agreed on Sunday to ease its 11-week aid blockade on the coastal enclave amid rising international outcry about the risk of famine.

EU, UK slap new sanctions on Russia

The European Union and the United Kingdom announced new sanctions against Russia, a day after a phone call between President Donald Trump and President Vladimir Putin failed to produce a ceasefire in the war in Ukraine. Ukraine's European allies accuse Russia of not being serious about peace. The new measures take aim at Moscow's "shadow fleet" of oil tankers and financial firms that help it avoid the impact of earlier sanctions.

Top Business

Temu, Shein face more parcel duties

Chinese e-commerce giants Temu and Shein face new duties on parcels they send to households in the European Union, which is proposing that former duty-free parcels valued at 159 euros (US$180) or less be charged a flat two-euro fee. The EU said 4.6 billion small parcels were delivered last year, with 90 percent of them coming from China.

The EU's move comes after US President Donald Trump slapped duties on such parcels, triggering fears that goods originally destined for US consumers would flood European markets. Temu said it has 92 million users in the EU, while Shein said it has over 130 million.

Japan is reportedly also considering ending duty-free entry of small parcels shipped from China.

3SBio-Pfizer agreement

Shares of 3SBio jumped 32 percent on Tuesday in Hong Kong trading after the Chinese biopharma company announced it reached an agreement with US-based Pfizer for a cancer-treatment drug called SSGJ-707. The US$6.1 billion deal is considered a breakthrough for Chinese biomedicine firms. Pfizer will also make a US$100 million equity investment in 3SBio.

Private business surge

The Beijing Stock Exchange 50 Index, which tracks small-cap tech firms, jumped 1.2 percent on Tuesday as China's first law dedicated to private businesses officially came into effect. By comparison, the Shanghai Composite Index closed up 0.38 percent increase, and the Shenzhen Component Index gained 0.77 percent.

Output of advanced tech zones

Chinese technology zones that host 70 percent of the nation's major innovation centers posted 7.1 percent year-on-year growth in output in the first quarter, according to the Ministry of Industry and Information Technology. The zones, which also house 80 percent of China's key research labs, are involved in realms such as artificial intelligence prototypes and brain-computer interface chips.

Economy

Foreign investment shifts to China, Japan

China, US and Japan attracted significant capital inflows in April as foreign investors shifted out of the US in reaction to President Donald Trump's tariff war and its repercussions. China's State Administration of Foreign Exchange reported a net capital inflow of US$17.3 billion in the month, from both individuals and companies.

Japan's finance ministry said overseas investors bought 8.21 trillion yen (US$56.6 billion) of equities and long-term bonds in April. It was the largest monthly net inflow since data was first collected in 1996, CNBC reported.

"Trump tariff shocks likely changed global investors' outlook on the US economy, which likely led to diversification to other major markets," Yujiro Goto, Nomura's head of FX strategy in Japan, was quoted as saying.

Policy tools coming soon

China's top economic planner pledged new measures to stabilize employment and drive growth, with more policies expected to roll out by the end of June. Speaking on Tuesday, National Development Reform Commission spokesperson Li Chao said efforts are underway to deliver timely support. The commission also aims to expand its policy toolbox, Li said.

Corporate

Bilibili reports higher revenue from mobile games

Bilibili, China's leading video community platform, reported first-quarter net income rose 24 percent from a year earlier to 7 billion yuan (US$965 million). Revenue from mobile games surged 76 percent to 1.73 billion yuan. Users spend an average 108 minutes a day on the platform, up from 105 minutes a year. Chief Executive Chen Rui told investors that Bilibili will continue to deliver the high quality that has made the platform so popular among the younger generation. The company's shares rose 0.9 percent in New York trading to US$18.15.

Vodafone loss

Vodafone posted a pre-tax loss of 1.4 billion euros (US$1.6 billion) for its fiscal year ended March 31, amid continued poor results in Germany, where revenue dropped 6 percent. The annual loss swung from a profit of 1.6 billion euros a year earlier.

Nestle water scandal

The French government was accused of a high-level coverup by a French Senate inquiry into alleged fraud in mineral water production by Swiss food and drinks conglomerate Nestle. The company, which markets water under the Perrier brand and other labels, benefited to the tune of 500 million euros (US$564 million), according to the newspaper Le Monde, when the government allowed it to use a controversial microfiltration process that changes the properties of natural mineral water and is banned under EU law.