Daily Buzz: 26 June 2025

Top News

Iran-Israel truce holding, Washington and Tehran to talk next week

President Donald Trump continued to vehemently deny the findings of a leaked preliminary Pentagon report suggesting that US bombing damage to Iranian nuclear facilities was far less than the "obliteration" he initially declared. Iranian foreign ministry spokesman Esmail Baghaei told Al Jazeera news service that Iran's nuclear installations were "badly damaged."

Meanwhile, a tenuous ceasefire between Iran and Israel continued into a second day. Trump, attending a NATO leaders' summit in The Hague, told reporters that the US will meet with Iran next week to explore a potential nuclear agreement, though he cast doubt on its necessity in the aftermath of the 12-day Iran-Israel war. "We may sign an agreement. I don't know. I don't think it's that necessary," he said.

Premier Li says Chinese growth will continue, urges global collaboration

Premier Li Qiang said China is confident in maintaining its economic growth despite dramatic changes in global trade and political dynamics.

"Over the years, no matter how the international environment has changed, China's economy has consistently maintained a good momentum," Li said in a keynote address to the Summer Davos meeting in Tianjin.

Noting that China's gross domestic product grew by 5.4 percent in the first quarter of 2025 despite heightened tensions in the world, he said, "Key economic indicators continued to improve in the second quarter, and international institutions have recently raised their expectations for China's growth. It's not about short-term spurts, but rather sustained progress over the long term."

"Breakthrough in science and technology are injecting fresh vitality into world economies, helping overcome sluggish growth," he added, calling on countries to support globalization and collaboration.

NATO allies agree to raise defense spending

The NATO alliance on Wednesday agreed to increase its defense spending target to 5 percent of gross domestic product by 2035, acceding to a demand from US President Donald Trump. The 32 member nations are required to submit annual plans showing steps taken to reach that goal. The military bloc said in a joint declaration that it is "united in the face of profound security threats and challenges."

Top Business

Crypto license boosts Guotai

Shares of Guotai Junan International, the Hong Kong subsidiary of Shanghai-based Guotai Haitong Securities, nearly tripled on Wednesday after it became the first unit of a mainland firm to receive a license to conduct crypto-trading in the city. Shares surged as much as 198 percent to HK$3.70 (50 US cents) following the announcement. Hong Kong last month passed a bill allowing trading in stablecoins by licensed firms as part of ambitions to become a hub for digital assets.

Powell defends caution on rate cuts

US Federal Reserve Chairman Jerome Powell, in testimony before a congressional committee, repeated earlier statements that the central bank is holding off on interest-rate cuts until the effects of Trump administration's global tariffs on prices are more fully assessed. President Trump has publicly rebuked Powell for failing to reduce rates. Financial markets are pricing in a 25 percent likelihood of a rate cut in July and a 67 percent chance of the first cut to come in September.

Chery considers plant in UK

Chinese carmaker Chery Auto is considering Britain for a second European factory, after launching its Omoda and Jaecoo models in the UK last September, the BBC reported. Cherry UK Director Victor Zhang, attending the annual conference of the Society of Motor Manufacturers and Traders, said the company is making inroads in the British market, where it sees a growing appetite for Chinese cars, but there is still work to be done in navigating US tariffs. The automaker already has an assembly plant in Hungary.

Economy & Markets

Shanghai share rally led by brokers

Chinese brokerage stocks extended their rally on Wednesday, driving the A-share market to a new high for the year amid optimism about crypto-currency trading and government measures supporting the financial industry. The Shanghai Composite rose 1 percent, the Shenzhen index gained 1.7 percent and the Nasdaq-style ChiNext index in Shenzhen surged 3.1 percent. Brokerages Guosheng Financial, Xiangcai and TF Securities hit daily trading limits, while East Money posted the highest trading volume for a second straight day. New China Life, Ping An and other insurers also delivered strong performances. The rally was underpinned by Guotai Junan International, the Hong Kong subsidiary of Shanghai-based Guotai Haitong Securities, becoming the first mainland firm to secure a crypto-currency license under the city's new stablecoin trading system.

STAR market reinstates relaxed rules for startup IPOs

Wuhan-based Healthgen Biotechnology is poised to become the first unprofitable company to be listed on Shanghai's STAR market since looser requirements on initial public offerings were reinstated after a four-year suspension. The easier access is aimed at giving promising startup companies with no track record of revenue or profit a channel to raise funds. At the Lujiazui Forum last week, China Securities Regulatory Commission Chairman Wu Qing said the scope of the relaunched policy would expand beyond biomedicine to include sectors like artificial intelligence, commercial aerospace and low-altitude flying technology.

Founded in 2006, Healthgen focuses on innovative drug development but has yet to generate revenue from core products. The startup has invested nearly 386 million yuan (US$53.8 million) in research and development in the past three years, and researchers comprise nearly 70 percent of its employees.

China cracks down on tax evaders

China unveiled new regulations aimed at countering tax evasion and income concealment by online vendors. The rules, released in a policy document from the State Council, China's cabinet, require digital platforms to provide names and income figures on a quarterly basis for all merchants they host, beginning in October. Failure to comply is punishable by fines of up to 500,000 yuan (US$70,000) and possible suspension from operation.

Asian investment bank's next president

Zou Jiayi, a former Chinese vice finance minister, was named to replace Jin Liqun as president of the Asian Infrastructure Investment Bank when his five-year term expires at the end of the year. She is the first woman to head the bank, which was established in 2016. Its current 110 members include Russia, Germany, India and Britain.

Corporate

CATL invests in robot-maker Galbot

Contemporary Amperex Technology (CATL) was lead investor in a 1.1 billion yuan (US$153 million) funding round by Galbot, a developer of intelligent robots. Beijing-based Galbot's robots have been deployed in retail, industrial and healthcare sectors. The company has raised more than 2.4 billion yuan in investment in the past two years.

ZTO Express starts its own air cargo company

Shanghai-based ZTO Express said it will set up an air cargo unit to expedite deliveries overseas. The new unit, Zhongtong Aviation, with registered capital of 600 million yuan (US$83 million), will be based in Changsha, the capital of Hunan province, according to corporate information platform Tianyancha. ZTO joins other Chinese logistics companies, including SF Express and JD Logistics, in establishing their own air cargo subsidiaries.

Geely steps into Brazilian car market

Hangzhou-based automaker Geely said it will take a 26 percent stake in a Brazilian joint venture controlled by France's Renault in its first foray into Latin America's largest car market. The venture will manufacture and distribute both Renault and Geely brand vehicles. The two companies began collaborating in 2021, initially focusing on the hybrid markets in China and South Korea.

BYD car production

BYD, the world's largest manufacturer of electric vehicles, has slowed production and expansion, reducing shifts in some Chinese factories and delaying plans to add new assembly lines, Reuters reported, in a signal that the company's phenomenal growth of recent years as a major rival to Tesla may be slowing. BYD sold 4.27 million cars last year, mostly in China, where it operates at least seven car factories. The China Automotive Dealer Association in May said BYD dealers held an average inventory of 3.2 months, the highest among all brands in China.

Zangge gets green light to mine lithium

Zangge Mining, based in Qinghai Province, received regulatory approval to extract lithium from Mamicuo Salt Lake in neighboring Tibet. The company said it plans to invest 4.5 billion yuan (US$637 million) in the project, which will produce 50,000 tons of battery-grade lithium carbonate a year, along with 17,000 tons of borax as a by-product. The company is majority-owned by the Jiangsu Qinghai-Xizang New Energy Industry Development Fund Partnership, a private equity fund.

Wanyi invests in fusion-equipment venture

Shanghai-listed Wanyi Science & Technology will invest 4 million yuan (US$557,000) in a project with Hefei Comprehensive National Science Center to build a laboratory to research and develop measurement equipment used in nuclear fusion. The center's Institute of Energy will invest 2 million yuan in the venture. The research will focus on gas-leak detection technology and testing equipment.

Huanlejia to build coconut plant in Indonesia

Zhanjiang-based Huanlejia Food Group said it plans to build a US$21 million coconut-processing factory in Indonesia. It will process pulp juice and desiccated coconut for local and export markets. Shenzhen-listed Huanlejia produced 172,000 tons of coconut juice last year, which earned 964 million yuan (US$134 million) in revenue, or 52 percent of operating income.