Cynthia Ho
Senior Asia Markets Reporter

Hong Kong and mainland equities plus China macro and policy. Former Greater China analyst at a foreign securities firm. Delivers insights on HK and mainland equities.

Latest

Yip's Chemical Holdings Ltd. issued a profit alert forecasting first-half 2026 net profit of at least HKD 138.6 million, a 110% year-on-year increase driven by solvents pricing and inks market share gains.

Yip's Chemical forecasts 110% profit surge on solvents and inks strength

**Key Takeaways:** - Net profit for 1H26 expected at no less than HKD 138.6 million - Solvents associate business drove gains amid surging selling prices - Inks segment grew market share in both sales revenue and tonnage

JPMorgan forecasts China's three major airlines will post an average net loss of RMB4.3 billion in 2Q25, the worst quarterly result since 2023.

JPMorgan says Chinese airlines face worst quarterly loss in 3 years

**Key Takeaways:** - JPM forecasts average net loss of RMB4.3 billion for 2Q25 - China Southern expected to post the largest loss at RMB5.2 billion - High oil prices and weak summer demand drive the sector downturn

China's January-June retail sales growth slowed to 1.3% year-over-year, down from 1.4% in the prior period, as consumer weakness persists.

China retail sales growth slows to 1.3% as consumer demand weakens

**China's retail sales growth decelerated to 1.3% in January-June from 1.4% in the prior period, the NBS reported, as consumer weakness deepened.**

China's June exports rose 20.8% year-on-year in yuan terms, accelerating from 13.8% in May and beating expectations as global demand remained resilient.

China exports surge 20.8% in June as global demand beats expectations

**Key Takeaways:** China's June exports surged 20.8% year-on-year in yuan terms, accelerating from 13.8% in May and marking the strongest reading since early 2025. The data signals resilient global demand and reduces pressure for additional PBoC stimulus. The divergence between strong exports and subdued domestic demand remains a key theme for China's economy.

The People's Bank of China set the USD/CNY reference rate at 6.7989 on July 9, 2026, compared with the previous fixing of 6.8036.

PBOC sets yuan fixing at 6.7989 per dollar, edging stronger by 0.07%

**Key Takeaways:** - PBOC set the USD/CNY reference rate at 6.7989 on Thursday - The fixing represents a 0.07% strengthening from the prior day's 6.8036 - The marginal adjustment signals a steady policy stance from Beijing

Insilico Medicine issued a positive profit alert for H1 2026, projecting revenue of up to USD106.5 million, a 287% YoY increase, driven by global AI drug discovery partnerships.

Insilico Medicine flags H1 2026 profit with revenue surging as much as 287%

**Key Takeaways:** - Revenue expected at USD102.5M to USD106.5M, up as much as 287% YoY - Net profit of USD33.5M to USD39.5M marks first-half profitability - Pipeline advances with 31 PCCs and Rentosertib entering Phase III

China's commerce ministry and eight other agencies issued a joint policy on July 9 supporting retail enterprises to pursue IPOs, issue REITs, and access credit subsidies.

China backs retail IPOs, REITs in 9-agency push to modernize sector

**Beijing is opening capital markets to retail enterprises through IPOs, REITs, and targeted credit support in a coordinated push to modernize the sector.**

GF Securities' 2026 mid-year strategy report identifies six broken historical A-share market rules and forecasts deepening AI vs non-AI divergence in the second half.

GF Securities flags 6 broken A-share rules as AI divergence deepens

**Six historical A-share market rules have been broken in 2026, and two more are under threat, as China's equity market undergoes its most structural transformation in two decades, according to GF Securities.**

China's June 2026 PMI data shows high-tech manufacturing at 53.5% while heavy industry remains in contraction at 47.1%, signaling a K-shaped recovery.

China's high-tech PMI jumps to 53.5% as manufacturing diverges in June

**China's high-tech manufacturing PMI surged to 53.5% in June, while high-energy-consumption industries remained stuck at 47.1%, highlighting a deepening K-shaped divergence in the country's factory sector.**

China's June 2026 official composite PMI rose to 50.6 from 50.5, barely above the expansion threshold as the economy's recovery remains fragile.

China's composite PMI edges to 50.6 in June, recovery fragile

**Key Takeaways:** - China's June composite PMI rose to 50.6 from 50.5 in May - The reading barely exceeds the 50 expansion threshold - Tepid data strengthens expectations for additional PBoC stimulus

China's 618 shopping festival total GMV grew only 1 percent year over year to RMB836.6 billion, sharply down from 15 percent growth last year, according to CLSA and Syntun data.

China 618 GMV growth slows to 1% as consumer spending weakens

**China's 618 shopping festival posted its weakest growth on record, pointing to deepening consumer caution in the world's second-largest economy.**

Citi says China's 2026 618 shopping festival is the most muted in 16 years with online GMV growing just 3.2% YoY as Alibaba scaled back subsidies.

China's 2026 618 festival posts weakest growth in 16 years

**Key Takeaways:** - Online GMV rose just 3.2% YoY, the slowest in 16 years - Alibaba scaled back Quick Commerce subsidies, shifting to brand ads - Taobao/Tmall held 34% market share, JD 25%, Douyin 20%

China's companionship economy, valued at 50 billion yuan ($7.4 billion) in 2025, is reshaping consumer spending as weakened household wealth and urban loneliness drive demand for paid emotional services.

China's companionship economy hits $7.4 billion as consumers shift spending

**Key Takeaways:** - China's companionship economy is valued at 50 billion yuan ($7.4 billion) in 2025 - Weakened household wealth, youth unemployment and urban loneliness are driving demand for paid companions - Meituan, Trip.com, Douyin and Xiaohongshu are best positioned to benefit from the trend

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