Daily Buzz: 13 June 2025
Top News
Air India jet crash kills 241 on board
All but one of 242 passengers and crew aboard an Air India flight from Ahmedabad to London's Gatwick Airport were killed when the Boeing 787-8 Dreamliner crashed into a residential area minutes after takeoff. The single crash survivor is an Indian-born British national. It was the first major incident involving the Boeing aircraft model. An investigation is under way. Boeing shares dropped nearly 5 percent in New York trading.
Asian stocks drop, oil rises on Israel attack on Iran
Investors ran for cover on news that Israel launched an attack on Iran nuclear facilities. The US said it was not involved. Israeli Prime Minister Benjamin Netanyahu said the targeted operations were necessary to secure his country's security and will continue for as many days as needed to remove the threat. Israel has repeatedly warned it would take action if US-Iranian nuclear talks made no progress.
Immediately after the news broke, Asian stocks dropped and oil prices rose. The Nikkei in Tokyo fell 1.5 percent and South Korea's market was down 1.2 percent. Brent oil futures shot up 7.6 percent, and gold added 1.2 percent. S&P 500 stock futures shot up 1.7 percent in New York.
Top Business
Chinese amphibious aircraft approved
China's domestically developed AG600, the world's largest amphibious aircraft, was approved for mass production. The Civil Aviation Administration of China certified the plane after ascertaining that it met all safety standards.
China has been promoting the development of domestic aviation which frees it from reliance on the US.
China closes AI gap with US
White House artificial intelligence head David Sacks said China is only "months" not years behind the US in development of AI models, Reuters reported. He put the gap as "three to six months." The remarks didn't include chips, the White House later clarified. But Sacks did also say AI chips made by Chinese company Huawei will be "everywhere in five years."Huawei's Chief Executive Ren Zhengfei told China's People's Daily earlier this week that "there is no need to worry about the chip problem."
China increases charging stations
China added around 91,000 public charging stations for electric vehicles in May, taking the number to 14 million nationwide, or 45 percent higher than a year earlier. Plentiful availability of charging points has been a key factor in winning public confidence in electric cars, which earlier suffered from concerns about short-range driving and getting stuck when batteries ran low.
Economy & Markets
Shanghai exchange adds contracts for cast aluminum alloy
The Shanghai Futures Exchange debuted new futures and options contracts for cast aluminum alloy. It is viewed as a step forward in financial derivatives based on recyclable goods.
According to the China Nonferrous Metals Industry Association, each metric ton of cast aluminum alloy produces 96 percent fewer carbon emissions than electrolytic aluminum, earning it the nickname "green metal." The alloy is used in car-engine blocks, motorcycle wheels and even smartphone casings. China production of the alloy hit about 6 million metric tons last year, making it the world's largest producer of the material.
US producer prices edge up, inflation could worsen
US producer prices increased by a less than expected 0.1 percent in May, following a report that consumer prices in the month rose by a similar amount. The data showed no evidence that US tariffs are heating up inflation, as some economists have predicted.
Jamie Dimon, head of JP Morgan, the largest investment bank in the US, said investors shouldn't be lulled by recent benign economic data. "I think there's a chance real numbers will deteriorate soon," he told a financial conference in New York. "You have all these really complex moving tectonic plates around trade, economics, geopolitics."
China savings bonds sell out
The latest tranche of 50 billion yuan (US$7 billion) in electronic Chinese government savings bonds sold out fast, with the five-years going first. The bonds, which can be bought online, carry interest rates higher than prevailing bank saving rates. The savings bonds are considered a popular low-risk investment for households seeking to squirrel away money.
Goldman sees strong confidence in China stocks
US investment bank Goldman Sachs said global long-term investors remain confident in China despite US trade tensions, noting strong demand in Hong Kong initial public offerings this year. According to Dealogic data, Goldman leads the advisory market with a 22 percent share of overseas equity deals for Chinese issuers.
Gold overtakes euro in forex reserves
Gold has overtaken the euro to become the world's second-largest reserve asset, behind only the US dollar, according to the European Central Bank. The dollar has been steadily declining amid trade tensions initiated by the Trump administration.
Corporate
CaoCao readies IPO
Chinese ride-hailing firm CaoCao Inc is set to go public in Hong Kong. Backed by automaker Geely, the company plans to issue up to 192 million shares. No price has been set. CaoCao, which operates in 136 Chinese cities, is China's second-largest ride-hailing platform with a 5.4 percent market share. The company reported 2024 revenue of 14.7 billion yuan (US$2 billion) and a loss of 1.3 billion yuan.
Game on!
China is ramping up support for global expansion of its gaming industry. New policies from Zhejiang Province and the city of Shenzhen in Guangdong Province are promoting exports and support for overseas development centers. Revenue of game publishers, backed by advancements in AI and cloud technologies, are forecast at US$33 billion this year.
'Wrist computer' sales soar
Sales of wrist-worn digital devices in China rose 38 percent to 18 million units in the first quarter from a year earlier, helped by government subsidies for consumers who trade-in older goods for new ones, according to US market research firm IDC. In that category, smartwatches surged 25 percent to 11 million. IDC said the market for digital wrist devices could grow 8.5 percent annually over the next five years. Chinese brands Huawei and Xiaomi are the world's two biggest makers of the devices
Venture to develop electronic skins
Dongfang Electric Heating Technology said it is teaming up with a Xiaomi startup Zhishi Intelligent Technology to develop "electronic skin" for cars and robots. It didn't disclose the amount of its investment in the venture. Electronic skin is a flexible material embedded with sensors that can replicate the sensations of human skin, including touch, temperature and pressure. It's used in robotics, prosthetics wearables and smart vehicles.
Another Leap in expansion
Chinese electric carmaker Leapmotor, a relative newcomer and still a small player in the industry, opened its first dealership in Hong Kong in another step in expansion. The showroom will feature right-hand drive versions of its C10 mid-sized electric SUV and T03 electric mini, the Hangzhou-based company said. Both models were launched in 13 European companies last year and are also being marketed in the Middle East, Africa and South America.
Separately, Chinese electric-car rival XPeng Motors said it may introduce advanced driver-assistance systems in Hong Kong as early as next year.
New Hope expands into non-milk drinks
China's New Hope Dairy announced its entry into the beverage market, joining a growing group of milk companies looking to tap the nation's fast-growing drinks sector as sales of milk decline. Its new product line will primarily be chilled drinks. Company Chairman Xi Gang said New Hope needs to "break free" of intense competition in the dairy market.
First AI showdown
Disney and Universal Studios in the US jointly sued AI company Midjourney, accusing it of mass copyright infringement by generating unauthorized images of their iconic film characters. The case marks the first major legal clash between Hollywood giants and a generative AI firm.
Authors get a digital hand
Chinese digital content company COL Group unveiled an artificial intelligence assistant that can help writers translate their works into English. The new XiaoYao Writing Platform can help authors with ideas, plots, language polishing and content logic. The online text market was valued at about US$40 billion last year.
