Daily Buzz: 12 June 2025
Top Business
China-US deal details opaque, market reaction subdued
Big stock rallies that greeted the news in early May that China and the US had agreed to a 90-day truce in their trade war to begin talks were nowhere to be seen on Wednesday after the first follow-up talks produced a "framework agreement" now pending approval by Chinese President Xi Jinping and US President Donald Trump. Few details of the accord have been made public.
Treasury Secretary Scott Bessent, testifying before Congress, said the talks had been narrowly focused and reaching a more comprehensive deal on outstanding disputes "will be a much longer process."
In Asian trading, Shanghai's Composite Index rose 0.52 percent, Japan's Nikkei was up 0.55 percent, and the Hang Seng in Hong Kong gained 0.8 percent. In Europe, German's DAX slid 0.16 percent, and the FTSE in London rose 0.13 percent. The S&P500 index in New York fell 0.27 percent, the Nasdaq lost 0.5 percent and the Dow closed flat.
US-Iran talks stall, oil surges
The US evacuated non-essential embassy staff from Iraq amid an apparent breakdown in nuclear talks between the US and neighboring Iran. US President Donald Trump said in a podcast that he is "less confident" that a deal will be reached with Iran over its nuclear capabilities. Brent crude oil futures surged as much as 6 percent on escalating tensions.
Top Business
China vehicle production, sales surge
China's auto production in the first five months of 2025 rose 13 percent from a year earlier to 12.8 million units, the China Association of Automobile Manufacturers said. Sales in the period increased 11 percent to 12.8 million vehicles. Electric and hybrid cars were the main drivers of growth, with sales accounting for 44 percent of all vehicle sales. Auto exports rose 7.9 percent to 2.5 million units, with shipments of new energy vehicles surging 65 percent.
Carmakers shorten payment terms
Fifteen major Chinese carmakers, including BYD, FAW, Geely and Xiaomi Auto, have pledged to shorten payment cycles to suppliers, aiming to cap them at 60 days. The move comes amid mounting pressure to stabilize supply chains and improve cash flow for smaller industry players. Industry experts say faster payments will encourage suppliers to invest more in their companies. The announcement triggered a sharp rally in auto and parts stocks across mainland and Hong Kong markets.
Regulations proposed for livestreaming
China's State Administration for Market Regulation is seeking public feedback on a draft proposal related to supervision of livestreaming e-commerce. It seeks to protect the interests of consumers and ensure sound development of an industry that has often come under fire for deceptive marketing practices that include misleading information on products. The proposals set forth criteria for the sales behavior of live-streamers who market products and require e-commerce platforms that host them to assume some legal responsibility for content.
Shanghai technology fair
The three-day 2025 International Technology Import and Export Fair opened on Wednesday in Shanghai, drawing more than 1,000 companies, mostly from the city. The event showcases the latest advancements in robotics, artificial intelligence, brain-computer interfaces, quantum computing and other technologies.
Economy & Markets
Insta360 camera maker surges in stock debut
Shares of Arashi Vision, maker of Insta360 cameras, surged 274 percent in their trading debut on Shanghai's Star market on Wednesday. The Shenzhen-based company's initial public offering, the largest in Shanghai in 17 months, was priced at 47.27 yuan a share and raised about 1.9 billion yuan (US$125 million). The company, which makes action and 360-degree cameras, said it plans to use the funds to strengthen its research and development. The company was founded in 2015 by Chinese entrepreneur Liu Jingkang and Max Richter, who formerly worked for Chinese drone-maker DJI.
Inflation in US remains tame
US consumer prices and core inflation in May both increased at a slower-than-expected 0.1 percent. Core inflation strips out volatile items like energy and food. In the 12 months through May, the Consumer Price Index was up 2.4 percent. In May, rent, food and healthcare were among the biggest price gainers; gasoline, clothing and airline fares dropped.
Japan wholesale inflation slows
Japanese wholesale inflation in May slowed to 3.2 percent from 4.1 percent a month earlier. The so-called corporate goods price index measures the prices companies charge one another for goods and services. The slowdown is expected to pass through to consumer prices.
Corporate
Tencent Music to buy Ximalaya
Tencent Music Entertainment Group, the owner of China's biggest online music platform, said it will acquire Shanghai-based Ximalaya, which provides audiobooks, podcasts, radio broadcasts and music to more than 300 million users in China. Ximalaya was valued as high as US$4.3 billion in 2020, but failed in four tries in subsequent years to go public. At the end of 2023, Tencent Music held a 5.3 percent stake in Ximalaya. The deal is subject to regulatory approval. In Hong Kong trading on Tuesday, Tencent Music shares slipped 1.4 percent.
Car-battery maker Eve seeks to sell shares in HK
Eve Energy, a Chinese car-battery maker, plans an initial public offering in Hong Kong, according to a statement filed with the Shenzhen Stock Exchange, where it is listed. The company said funds raised in the public sale would be used to lift its brand internationally and finance business expansion overseas. It didn't reveal how much money it hopes to raise. In the first four months of this year, the company ranked ninth in global market share, with global installation volume of 8.3 gigawatt hours, CNEVPost reported, citing data from the China Automotive Battery Innovation Alliance. In China, Eve's market share ranks fifth.
Jetstar Asia to cease operations
Singapore-based budget airline Jetstar Asia will cease operations on July 29, affecting 16 routes. The airline's owner, Australia's Qantas Airways, cited higher costs and heightened regional competition. The closure won't affect operations of Jetstar based in Australia and Japan. Jetstar Asia, which has been operating out of Singapore for two decades, will refund passengers holding tickets for flights beyond July.
General Mills may sell Haagen-Dazs shops in China
US good giant General Mills plans to sell its 250 Haagen-Dazs ice-cream stores in China, Bloomberg News reported. The sale, which could fetch several hundred million dollars, may come as earlier as this year.
Ping An Good Doctor pivots to AI-driven healthcare
China's Ping An Healthcare & Technology, which rebranded itself Ping An Good Doctor, is pivoting toward a more consumer-oriented business model that will leverage artificial intelligence to improve product lines, provide AI-powered 24/7 online health advice and extend a focus on specialized elderly care and advanced chronic disease management. In the first quarter, Ping An Good Doctor had 400 million registered users, 20 million medical members and recorded an online consultation every two seconds.
