Rachel Tang
HK & China Markets Correspondent

Focuses on Hong Kong and mainland capital markets, corporate earnings, and macro trends. Previously stationed as a correspondent in both Beijing and Hong Kong. Expert at translating macro policies into market signals.

Latest

PBOC Deputy Governor Zou Lan and the Q2 2026 Monetary Policy Committee signal potential further easing in Q3, citing inflation, economic fundamentals, and overseas central bank policies.

PBOC signals further easing in Q3 as bond supply rises

**The People's Bank of China opened the door to additional monetary easing in the third quarter, citing inflation trends and global policy shifts as key considerations for its next move.**

Chinese economist Ren Zeping's paid VIP member lost over 10 million yuan using leverage on storage chip stocks, eroding retail confidence in the tech bull narrative.

Ren Zeping VIP loss of 10M yuan tests China's tech bull narrative

**Key Takeaways:** - A Ren Zeping VIP member lost over 10 million yuan using leverage on storage chip stocks - Ren's team dissolved all VIP chat groups on July 16 as the controversy escalated - The episode threatens retail confidence in China's tech bull narrative and may invite regulatory scrutiny

China's MIIT said it will accelerate work on a national integrated technology market to remove trade barriers and institutional obstacles across provincial lines.

China targets technology trade barriers with 3-point market reform plan

**Beijing is moving to dismantle the institutional walls that fragment its domestic technology market.**

China's MIIT will issue 15th Five-Year industrial plans centered on advanced manufacturing, signaling continued state-directed investment through 2030.

China unveils 15th Five-Year industrial plan to boost advanced manufacturing

**Key Takeaways:** - China's MIIT will issue 15th Five-Year industrial plans centered on advanced manufacturing - The previous 14th Five-Year period saw China's manufacturing value-added reach 30% of global output - State-directed investment will target semiconductors, AI, and EV supply chains through 2030

China's MIIT designates next-generation communication networks as the top priority for the information and communications industry in 2026.

China's MIIT makes next-gen networks top priority for 2026 telecom push

**Key Takeaways:** - China's MIIT designated next-generation communication networks as the top 2026 priority for the information and communications industry - The policy frames the network buildout as critical digital infrastructure innovation for the intelligent era - Three work streams were outlined to advance the initiative, with specific investment details not yet disclosed

China's industrial profit margin reached 5.66% in Jan-May 2026, the highest since 2024, as semiconductor and wind power exports surged.

China industrial profit margin hits 5.66% as exports surge 88.7%

**Key Takeaways:** - China's industrial profit margin reached 5.66% from January to May, the highest since 2024 - Industrial value-added output grew 5.4% year-over-year in the first half of 2026 - Integrated circuit exports surged 88.7%, while wind power equipment rose 35.6%

China's PBOC held the 1-year loan prime rate at 3% for a 14th consecutive month in July 2026, resisting calls for stimulus as Q2 GDP growth slowed to 4.3%.

PBOC keeps 1-year LPR at 3% for 14th straight month

**China's central bank held its benchmark lending rate at 3% for a 14th consecutive month, showing reluctance to deploy broad-based monetary easing even as the economy grew at its slowest pace in more than three years.**

China's central bank held the five-year loan prime rate at 3.5% for July while injecting 236.5 billion yuan into the banking system.

China holds 5-year LPR at 3.5% as PBOC maintains steady course

**The People's Bank of China kept its five-year loan prime rate at 3.5% for July, extending a pause that signals policymakers see limited urgency for additional easing even as the economy contends with weak domestic demand.

China Guoxin and China Chengtong announce coordinated stock purchases exceeding 50 billion yuan to support Chinese equity markets, echoing their April 2025 intervention.

China state investors pledge over 50 billion yuan in stock purchases

**Key Takeaways:** - China Guoxin and China Chengtong announced continued stock purchases exceeding 50 billion yuan - The coordinated intervention echoes the April 2025 move that preceded a year-long rally - Purchases target central enterprise stocks and technology assets via PBoC refinancing tools

China Reform Holdings and China Chengtong inject over 60 billion yuan into A-shares while CSRC schedules symposium to stabilize capital markets.

China state funds inject 60 billion yuan to stabilize A-shares

**Key Takeaways:** China's two largest state capital operators poured more than 60 billion yuan into A-shares on July 19, the most aggressive government intervention since the 2024 market rescue campaign.

China Reform Holdings and China Chengtong deployed capital to buy A-shares amid a technology sector correction, with industry insiders saying fundamentals remain stable.

Two China SOEs deploy capital to support A-shares during tech selloff

**Key Takeaways:** - China Reform Holdings and China Chengtong deployed capital to buy A-shares this week - Industry insiders said fundamentals remain stable, attributing the selloff to sentiment swings - The intervention mirrors previous state-led efforts to stabilize Chinese equity markets

Tianqi Lithium Corp. issued a profit alert expecting interim net profit of RMB 2.85 billion to RMB 4.25 billion for the six months ended June 30, 2026.

Tianqi Lithium guides interim profit to RMB 4.25B on lithium price recovery

**Key Takeaways:** - Net profit expected at RMB 2.85B to RMB 4.25B for the first half - Earnings per share seen at RMB 1.68 to RMB 2.51, versus RMB 0.05 a year ago - Lithium price recovery and downstream demand drove the turnaround

Air China will operate the C919 on a daily Beijing-Ulaanbaatar route from Aug. 12, the first regular international commercial service for China's domestically produced narrowbody jet.

C919 to fly first international route on Aug. 12 with Air China

**Air China will deploy the C919 on a daily Beijing-Ulaanbaatar service from Aug. 12, marking the first regular international route for China's domestically produced narrowbody jet.**

Goldman Sachs reports China's National Team ETFs saw 29 billion yuan in net inflows during July 13-16, the largest four-day total since April 2025.

National Team ETFs draw 29 billion yuan in four-day buying spree

**China's state-backed funds poured 29 billion yuan into domestic equities over four sessions, the most aggressive buying in 15 months, signaling Beijing's resolve to support a struggling market.**

The People's Bank of China set stronger yuan fixings for a third consecutive session, but safe-haven dollar demand from Middle East tensions kept USD/CNH range-bound.

PBoC fixings support yuan as two forces keep CNH range-bound

**Key Takeaways:** - PBoC set stronger yuan fixings for a third straight session on Friday - Safe-haven dollar demand from Middle East tensions capped CNH gains - USD/CNH remains range-bound near 7.28 as two opposing forces keep the pair in check

The People's Bank of China set the USD/CNY reference rate at 6.7909, 332 pips softer than market estimates, the largest deviation since June.

PBOC yuan fixing misses estimates by 332 pips as easing bets cool

**The People's Bank of China set the yuan reference rate 332 pips weaker than market estimates Thursday, the largest deviation since June, indicating comfort with measured depreciation to support exports.**

JP Morgan says the A-share AI correction is a healthy leverage unwinding, citing margin ratio decline from 12% to 8-9% and strong semiconductor ETF inflows.

JP Morgan backs A-share AI stocks after 12% margin ratio drop

**The recent selloff in Chinese AI stocks is a healthy leverage unwinding, not a bubble burst, according to JP Morgan.**

China's $1.39 trillion local government debt cleanup is slowing economic growth and creating ripple effects across global commodity markets.

China's $1.39 trillion debt cleanup creates a growth mess for global markets

**Beijing's debt-resolution program is succeeding on paper but starving provinces of the investment capacity that powers Chinese GDP growth.**

China's Q2 sectoral GDP data shows real estate contracting 0.2% while financial services grow 6.9%, revealing deepening structural divergence in the world's second-largest economy.

China property GDP shrinks 0.2% as financial services surge 6.9%

**China's property sector contracted for a second straight quarter while financial services grew at the fastest pace in more than a year, highlighting the economy's deepening structural divergence.**

China's economy grew 4.3% in Q2 2026, missing forecasts and the annual target floor, while the GDP deflator turned positive for the first time in 13 quarters.

China Q2 GDP grows 4.3%, missing target as deflator turns positive

**China's economy expanded at its slowest pace since the pandemic lockdown era in the second quarter, though a key price gauge turned positive for the first time in 13 quarters, revealing a deeply uneven recovery.**

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