China Business NOW

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

Global markets rallied on optimism over China-U.S. trade talks;

China unveils new guidelines to deepen reforms in Shenzhen.

Here’s what you need to know about China in the past 24 hours 

China and the United States have over the past two days conducted professional, rational, in-depth and candid exchanges, said a senior Chinese official on Tuesday.

Li Chenggang, China international trade representative with the Ministry of Commerce and vice minister of commerce, made the remarks when briefing the press following the first meeting of the China-U.S. economic and trade consultation mechanism held in London, Xinhua reported.

The two sides have agreed in principle the framework for implementing consensus between the two heads of state during their phone talks on June 5, as well as those reached at Geneva talks, Li said.

It is hoped that progress made at the London meeting will be conducive to strengthening trust between China and the United States, and to further promoting the steady and healthy development of economic and trade ties between the two countries, he said, adding that the meeting also adds positive energy to global economic growth.

Asian stocks mostly advanced on Wednesday, led by gains in Chinese markets, as optimism grew over news on a China-U.S. trade framework.

China's benchmark Shanghai Composite Index opened higher, led by gains in consumer products and battery stocks. The Shanghai Composite ended 0.52 percent higher to stand above the 3,400-point mark, the Shenzhen Component rose 0.83 percent, and the ChiNext board rallied 1.21 percent.

In Hong Kong, the benchmark Hang Seng Index advanced 0.84 percent and the TECH Index added 1.09 percent.

South Korea’s KOSPI rose 0.6 percent to an 11-month high. Japan’s Nikkei 225 climbed 0.4 percent, while the broader TOPIX was flat amid concerns on Bank of Japan rate policy.

Australia’s ASX 200 rose 0.3 percent after hitting a record intraday high early on.  

U.S. stocks also closed higher on Tuesday, with the Dow Jones rising by 0.25 percent. The S&P 500 closed up 0.55 percent, and the Nasdaq climbed 0.63 percent.

China will implement zero-tariff measures for 100 percent of tariff items for 53 African countries with diplomatic ties, providing more convenience for exports from Africa's least developed countries to China, Foreign Ministry Spokesperson Lin Jian said today. China’s total imports and exports with African countries increased from less than 100 billion yuan in 2000 to 2.1 trillion yuan in 2024, marking an average annual growth of 14.2 percent, according to data released by the General Administration of Customs (GAC) on Wednesday ahead of the fourth China-Africa Economic and Trade Expo.

GBA express

China will further advance comprehensive reforms in the vibrant southern city of Shenzhen, and push for greater innovation and opening-up in the city, according to a set of guidelines unveiled on Tuesday, according to Xinhua. They emphasize strengthening the integration of innovation, industrial, capital, and talent chains, while exploring new pathways, scenarios, and platforms for the GBA cooperation. Specifically, the guidelines call for a coordinated push to integrate reforms in education, science and technology, and talent development systems and mechanisms. This includes reinforcing the central role of enterprises in technological innovation and improving effective pathways for leading tech companies to serve as "problem setters" in R&D. Universities and enterprises are also encouraged to jointly cultivate high-caliber, interdisciplinary engineering talent and foster a pool of innovative entrepreneurs proficient in cutting-edge technologies. In addition, the guidelines propose measures to enable the high-quality development of the real economy through finance, technology, and data integration. This includes supporting Shenzhen in launching a pilot program for the integration of finance and the tech industry. They also support reforms in unmanned aerial vehicle flight management, improvement of low-altitude flight regulations, and exploration of general aviation services such as cross-border helicopter flights and public service missions.

Foshan Haitian Flavouring & Food Co began taking investor orders for a Hong Kong listing that could raise as much as HKD9.56 billion, the latest deal of its kind powering the city’s share-sale recovery this year. The Chinese maker of soy sauce and other condiments is offering 263 million shares at HKD35 to HKD36.30 each, according to a listing document on Wednesday.

The organizing committee of the 15th National Games on Tuesday unveiled the designs of the gold, silver and bronze medals. The medals are named Tongxinyue — meaning “united leaps” — which symbolizes the collaborative spirit and development pulse of the Hong Kong and Macao SARs, and Guangdong province. Ticket sales for the games will kick off in August with the trio using the same ticketing platform.

Industry and company news

A total of 13 Chinese automakers made a statement on Wednesday, promising to unify their supplier payment time to within 60 days, in a move to ensure the stability of the automobile sector supply chain, according to a post released by China's Ministry of Industry and Information Technology (MIIT) on Wednesday. Companies including BYD, Chang'an Automobile, FAW Group, Xiaomi Auto, Li Auto, and Xpeng, along with other domestic automakers, have issued the initiative so far this week.

Tencent Music Entertainment announced late Tuesday that it will acquire leading audio platform Ximalaya for approximately USD1.3 billion in cash plus the issuance of shares. Upon completion of the transaction, Ximalaya will become a wholly owned subsidiary of the Chinese music platform. In response to news of the merger, Ximalaya said it will continue to operate under its existing brand and will maintain independent management of its current products, core leadership team, and overall strategic direction.

China's domestically developed AG600 "Kunlong" amphibious aircraft has officially entered mass production after receiving the production certificate from the Civil Aviation Administration of China on Wednesday.

The number of departure tax refund transactions processed by China’s tax authorities surged 116 percent from a year ago, while sales at tax refund shops rose 56 percent between April 27 and May 26 since the refined tax-refund-upon-departure policy rolled out, the State Taxation Administration said.

ByteDance today released its latest generation of AI model, Doubao 1.6, which includes Doubao-Seed-1.6-thinking, Doubao-Seed-1.6, and Doubao-Seed-1.6-flash, cutting the price by 63 percent compared with Doubao 1.5 to as low as 2.6 yuan per million tokens.

Midea Energy today unveiled its three-dimensional growth strategy focused on energy storage, heat pumps, and AI. The Chinese home appliance giant aims to develop the energy sector into a core pillar of its overall business, said Wei Chang, VP and CTO of Midea Group.

Arashi Vision soared 274 percent on its trading debut in Shanghai today. The Chinese maker of the Insta360 action camera issued 41 million shares in its IPO, raising 1.9 billion yuan.

A mint green, 130cm-tall Labubu figurine was sold for 1.08 million yuan in a Labubu-themed auction in Beijing yesterday. Another brown limited-edition Labubu was auctioned for 820,000 yuan. The ugly-cute monster created by Hong Kong artist Kasing Lung and exclusively sold by Pop Mart has sparked a global buying frenzy. Stock price in Pop Mart continued to hit new high today, climbing over 4 percent to HKD270, with a market cap reaching HKD362.3 billion.

Asia-Pacific highlights

Singapore-based budget airline Jetstar Asia will close at the end of next month after over 20 years of operation, its Australian owner Qantas announced today. The airline is expected to log an AUD35 million (USD22.8 million) underlying EBIT loss this fiscal year. Its closure will not impact Australia-based Jetstar Airways or Jetstar Japan.

JD Logistics has reportedly set up a team of nearly 1,000 employees in Saudi Arabia and started providing delivery services in Riyadh. The express delivery arm of JD.Com declined to comment on the media report.

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

Huawei’s Ren Zhengfei speaks to People’s Daily on hot topics of public interest including its advance chip technology;

China's NEV retail sales and exports both surged in May.

Here’s what you need to know about China in the past 24 hours 

In a recent interview with People’s Daily published on Tuesday, Huawei Technologies' founder, Ren Zhengfei, shared insights on Huawei’s ability to produce advanced chips despite stringent sanctions, acknowledging a technological gap with Western competitors but expressing determination to bridge it.

Ren said Huawei’s Ascend chip, the main rival to Nvidia’s products in China, “still lags behind the US by one generation”. He added that the “US has exaggerated Huawei’s capabilities — we’re not that strong yet”.

However, the firm is finding ways to improve performance. Ren hinted the company could “compensate” for poorer performance through cluster computing, which involves linking multiple chips to boost AI server power. 

“Using clustering and stacking, our computing results are comparable to the world’s best,” he said. 

The public comments are the first from Ren or Huawei about the firm's advanced chip manufacturing efforts. Despite external blockades and suppression, Ren said that he never dwell on difficulties, just take action and move forward step by step.

China has opportunities in low- and mid-range chips, with dozens or even hundreds of chip companies working hard, Ren said, adding that China will have hundreds or thousands of operating systems in the future, supporting progress in Chinese industry, agriculture, healthcare, and more.

Ren also shared his thoughts on China’s basic research, saying that the country must attach importance to theoretical research, especially basic theoretical research, as purchasing foreign products is expensive because the price includes their investment in basic research.

“Basic research takes more than five to 10 years; it generally requires 10 years, 20 years, or even longer. If we do not engage in basic research, it is akin to having no roots,” Ren was quoted as saying in the interview.

Ren revealed that Huawei invests 180 billion yuan in research annually and sees promise in compound chips - or chips made from multiple elements.

When asked about his view on openness and development, Ren said, “The more open the country becomes, the more it will drive our progress. Under the leadership of the Party, with unified administration and clear policies, it is possible to gradually form a unified national market. This will surely break through all blockades and achieve great rejuvenation.”

GBA express

Hong Kong is gearing up to warmly welcome the 2,300 athletes and over 100,000 spectators expected to attend two major national sporting events taking place in the city late this year. Government officials on Monday outlined various preparations aimed at enhancing reception, publicity and infrastructure for the games. The Hong Kong SAR will team up with the Macao SAR and Guangdong province to host the 15th National Games in November. Hong Kong will also consider joint promotional campaigns for the 15th National Games and the Legislative Council elections to maximize public engagement and economic benefits.

Hong Kong will organize more than 100 events, with businesses and government entities providing discounts covering public transportation, leisure facilities, dining and shopping, to mark the 28th anniversary of the city’s return to the motherland on July 1, said Chief Executive John Lee Ka-chiu on Tuesday. Lee noted the increased number of businesses joining the celebrations, with more than 1,000 dining establishments offering discounts. He also announced that this year’s Policy Address will be delivered earlier than usual in September, compared with the normal mid-to-late October period in the past three years.

Industry and company news

China's retail sales of new energy passenger vehicles jumped 28 percent to 1.02 million units last month from a year earlier, the China Passenger Car Association said yesterday. The figure rose 34 percent to 4.35 million units in the first five months. NEV exports reached 200,000 units in May, surging 80.9 percent year-on-year and accounting for 44.5 percent of all cars exported. For the January-May period, the increase was 37.1 percent as the total number of exports reached 789,000 units.

The 110,000th China-Europe freight train departed today from Qingdao in China's eastern Shandong province and will arrive in Europe in 17 days, Xinhua reported. The China-Europe freight train service has so far reached 229 cities in 26 European countries and over 100 cities in 11 Asian countries.

China Eastern Airlines will open a new direct route between China's Xi'an and Istanbul on June 24, becoming the airline's second direct flight to Türkiye, CCTV News reported.

GAC aims to enter the Argentine market by the second half of this year and open showrooms in major cities in South America over the next three years, the Chinese auto giant said today. GAC is also accelerating its plans to expand in Chile and Bolivia.

Didi Global today released Xiaodi, the Chinese ride-hailing service provider's first AI agent designed to streamline business travel. The milestone also makes Xiaodi China's first AI agent with a closed-loop experience for hotel and flight reservations, media reports.

TikTok plans to add 500 new jobs in the UK this year to bring its local staff to a total of 3,000 employees, the short-video platform announced yesterday. Moreover, TikTok will invest around GBP140 million in UK infrastructure, including a new office in London, expected to open next year.

Apple unveiled new AppleIntelligence features, such as Live Translation, Image Playground, Genmoji, and Visual Intelligence, at the WWDC2025. Also, Apple CEO Tim Cook said the firm will launch its first original film in cinemas, F1TheMovie, on June 27, starring Brad Pitt and co-produced by seven-time F1 champion Lewis Hamilton.

Ping An Bank has been offering clients who deposit a certain amount of money Pop Mart’s most popular collectible plush toy, Labubu, as Chinese lenders’ practice of gifting physical items to attract depositors has hit new highs. Clients depositing over 50,000 yuan for a term of no less than three months can receive a Labubu 3.0 blind box or a gift package, according to Ping An Bank’s customer service. Prices for the mischievous-looking vinyl figure have soared to around 35,000 yuan on some e-commerce platforms, three times the original price, media reports.

Asia-Pacific highlights

ASEAN continued to be Guangdong's largest trading partner, serving as a key driver for the province's foreign trade growth, according to the China Council for the Promotion of International Trade Guangdong Committee on Tuesday. In 2024, Guangdong's total import-export volume with the 10-member bloc reached 1.45 trillion yuan, up 8 percent year on year. From January to April this year, Guangdong's trade volume with ASEAN amounted to 488.57 billion yuan, growing by 7.5 percent compared with the same period last year.

China Southern Airlines and Vietnam Airlines will launch a joint venture on August 1, 2025, marking the first partnership of its kind between carriers from China and Vietnam. Approved by both governments, the agreement aims to streamline air travel and expand route networks between the two countries.

Pov Somnang, Special Advisor to Secretary-General of ASEAN and President of ASEAN Economic and Trade Promotion Association, said at an event on Tuesday that deepening economic and trade ties and promoting supply chain collaboration between ASEAN and China, especially Guangdong, is both timely and a strategic opportunity against the backdrop of complex and volatile global economic conditions. Speaking at the 2025 China (Guangdong)-ASEAN Trade Promotion and Supply Chain Cooperation Mechanism Development Coordination and Exchange Conference, Pov Somnang said Guangdong enterprises have achieved fruitful results in ASEAN through investment in factory setups, cooperative park construction, green energy, and the digital economy. Meanwhile, more ASEAN companies view Guangdong as the primary gateway to the Chinese market. He added that facing global supply chain restructuring, ASEAN and Guangdong are fully capable and responsible for leading regional supply chain cooperation, which should encompass multi-dimensional coordination in industries, technology, rules, standards, and talent.

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

Asian stocks gained on Monday as investors pin hope on China-US trade talks in London;

China’s foreign trade increased 2.5% in Jan-May.

Here’s what you need to know about China in the past 24 hours 

Stock markets across Asia climbed Monday, helped by the renewed China-US trade talks in London.

China's A-share market opened on a positive note, with the benchmark Shanghai Composite Index once reclaiming the 3,400-point mark in the morning session. Hong Kong’s benchmark Hang Seng Index also surpassed the 24,000 points in early tradings, hitting a new high in over two months.

The Shanghai Composite closed 0.4 percent higher today, while the Shenzhen Component gained 0.65 percent. The ChiNext Index surged by 1.1 percent. The Hang Seng Index ended up 1.6 percent and the Tech Index rallied 2.8 percent.

The trading volume of the Shanghai and Shenzhen stock markets exceeded 1.29 trillion yuan, an increase of more than 134 billion yuan compared to the previous trading day.

Sectors such as pharmaceuticals, rare-earth magnets, securities, defense, and solid-state batteries led the market gains, with nearly 4,100 listed companies rising across the Shanghai, Shenzhen, and Beijing stock exchanges.

As for the other Asian markets, Japan’s benchmark Nikkei 225 advanced 1.1 percent, while the broader Topix index rose 0.6 percent. In South Korea, the Kospi index climbed 1.9 percent. 

Chinese foreign ministry spokesperson announced on Saturday that Chinese Vice-Premier He Lifeng would visit the UK from yesterday to June 13 at the invitation of the local government, Xinhua reported yesterday. A diplomatic schedule published by the foreign ministry showed that the Chinese side will hold the first meeting of the economic and trade consultation mechanism with the US side in London.

China's foreign trade has maintained resilience and stable growth since the beginning of this year despite challenges from external environment, official data showed on Monday. Total goods imports and exports in yuan-denominated terms expanded 2.5 percent year-on-year to 17.94 trillion yuan in first five months this year, according to the General Administration of Customs (GAC). Between January and May, the country's total exports rose 7.2 percent year-on-year to 10.67 trillion yuan, while imports slid 3.8 percent year-on-year to 7.27 trillion yuan. Meanwhile, the GAC said over 73,000 foreign-invested firms in China were involved in export and import activities in the first five months, with their combined trade volume rising 2.3 percent to 5.21 trillion yuan, accounting for 29 percent of the country's total.

China's consumer price index (CPI), a main gauge of inflation, edged down in May, data from the National Bureau of Statistics (NBS) showed on Monday. The CPI dropped by 0.1 percent year-on-year last month, matching the decline rate seen in April. NBS attributed the year-on-year CPI decrease primarily to a 6.1-percent drop in energy prices. The NBS data also showed the country’s producer price index (PPI), which measures costs for goods at the factory gate, fell by 3.3 percent year-on-year in May, with the decline widening by 0.6 percentage points from April.

GBA express

The number of visitors to Hong Kong has continued to increase, as the city attracted about 20 million tourist trips in the first five months of this year, of which Chinese mainland tourists accounted for about three-quarters, with about 10-percent growth year-on-year. Hong Kong Financial Secretary Paul Chan Mo-po wrote in an official post on Sunday that the growth to a series of activities with different themes that were held in Hong Kong since the beginning of this year has brought a continuous increase in the number of tourists visiting Hong Kong. It is estimated that the events held in Hong Kong in the first half of this year will attract about 840,000 tourists to participate, and bring HKD3.3 billion in consumption and HKD1.8 billion in economic added value.

The People's Bank of China and the Hong Kong Monetary Authority are promoting the interconnectivity between the quick payment systems of the Chinese mainland and Hong Kong, with some services likely to be launched mid this year, media reported yesterday. The pair signed an MOU on cross-border payment interconnectivity last August.

Macao launched a PopMart tourism event to attract global fans, bringing the Chinese toy maker’s most popular character lines, including Baby Molly, Crybaby Dimoo, and Labubu, to four iconic locations across the SAR, from June 6 to September 21. A seven-meter-high Labubu was unveiled.

The two-day International Science, Technology and Innovation Forum of the Boao Forum for Asia 2025 Hong Kong Conference ended June 7, attracting over 800 government officials, representatives from international organizations, entrepreneurs, and experts from over 20 countries and regions to focus on global tech innovations and sci-tech governance.

Industry and company news

Pop Mart's founder and Chairman Wang Ning had a net worth of USD20.3 billion yesterday, surpassing Muyuan Foods' founder Qin Yinglin to become the richest person in China's Henan province, according to the Forbes Real Time Billionaires List. Wang's wealth growth was fueled by Labubu's global craze.

Boeing resumed aircraft deliveries to China as a Boeing 737 MAX took off from Seattle, the US, headed to China on Saturday. This aircraft was made at Boeing's Zhoushan factory in China but was sent back to the US in April.

Alibaba’s open-source AI model Qwen3 has garnered 12.5 million downloads globally in just one month, media reported today. On major LLM platforms, such as Hugging Face, ModelScope, and Ollama, each version of Qwen3 has surpassed one million downloads.

Shares of China Rare Earth Holdings closed up 60 percent in Hong Kong today after China approved some export license applications for rare earth-related items amid rising global demand for medium and heavy rare earth elements, fueled by the robotics, NEV, and other industries.

China has added 19 bases to its cold-chain logistics network, bringing the total to 105 distribution centers for ultra-low temperature delivery, which are now under construction, CCTV News reported.

China's forex reserves stood at USD3.2853 trillion at the end of May, up from USD3.2817 trillion a month earlier, data from the State Administration of Foreign Exchange showed. Gold reserves topped 73.83 million ounces.

Starbucks will launch a new summer promotion for its three major non-coffee beverage categories -- Frappuccino, Shaken Iced Tea, and Tea Latte -- in the Chinese market from tomorrow. The average price cut for a grande-sized drink will be around 5 yuan.

Asia-Pacific highlights

Thailand's durian exports to China have enjoyed stable growth thanks to the China-Laos Railway. So far this year, China's import volume of Thai durian and other tropical fruits through the Mohan border checkpoint in Southwest China's Yunnan Province has increased by 25 percent from the same period last year, according to China State Railway Group on Sunday. 

Hello! Welcome to this edition of CBN Perspective. I’m Stephanie Li.

I still remember the first time I tasted coffee from southwest China’s Yunnan province. It was a crisp, sunny morning in Dali, a historic city with stunning natural scenery and colorful Bai ethnic culture. 

At a random coffee stand, I bought a simple Americano with local blend. As I took my first sip, I paused. There was something different, something special about this coffee. It had a delicate sweetness, a hint of florals, and a depth I hadn’t quite experienced before. That was the moment I knew: Yunnan coffee wasn’t just good, it was world-class.

But there’s a problem. When you think of the world’s biggest coffee-growing regions, Yunnan might not immediately spring to mind. 

As more and more people in Chinese cities are starting their day with a freshly brewed cup, it is their compatriots on the other end of the country who are growing, washing, and drying the beans needed to make China’s coffee boom possible.

In the undulating highlands of southwest China, Yunnan’s distinctive natural environment, characterized by low latitudes, high altitudes, large day-night temperature fluctuations, and fertile, slightly acidic soils, creates conditions reminiscent of the world’s renowned coffee-growing regions. These attributes have allowed small-grain coffee to flourish, earning the province a growing reputation among coffee connoisseurs.

Little did one know, the history of coffee cultivation in Yunnan actually dates back 130 years. Now its coffee-growing regions span six prefectures and cities, including Pu'er, Baoshan, Lincang, Dehong, Xishuangbanna, and Nujiang. By 2024, the province's coffee plantations covered 1.27 million mu, yielding an annual output of 146,000 tons - both accounting for over 98 percent of China's total coffee cultivation area and production. 

For decades, however, Yunnan’s coffee was primarily sold as low-cost raw material to international brands. 

The turning point came with the harsh reality of shrinking profit margins. Prices for the most basic type of coffee have dropped so steeply in recent years that many Yunnan farmers have found it isn’t worth the effort. Since peaking in 2014, the total area of farmland devoted to coffee cultivation in the province has shrunk considerably.

Forced to find a way to make a profit, some farmers in the province have instead turned to growing beans for specialty coffees, which have more flavor — and higher prices. They have done so with remarkable success. 

Yunnan’s revival hinges on three pillars: quality, policy, and innovation. Now the province has designated 1.05 million mu of land as optimal growing zones for specialty coffee, promoting the cultivation of premium varieties such as Geisha and Typica.

New products, such as freeze-dried powder and cold brew concentrates, are gaining popularity, particularly in Vietnam’s ready-to-drink market, where consumers applaud the coffee’s smooth, richly nuanced flavor accented by a hint of fruity acidity.

Advances in processing technology have further bolstered Yunnan’s coffee industry. The specialty coffee ratio in Yunnan has risen from 8% in 2021 to 31.6% by 2024, while the deep-processing rate for coffee beans has surged from 20% in 2021 to 80% in 2024.

Crucially, strong policy support has also driven up Yunnan coffee's sustained growth. For instance, Baoshan has launched a project called the “Thousand, Hundred and Ten thousand Project,” aiming to create 100 coffee estates, connecting 1,000 coffee shops on one end and 10,000 coffee farmers on the other. The local government believes this approach will nurture a strong and sustainable industry chain. 

Yunnan is also ramping up efforts to train coffee professionals across the entire industrial chain. In 2024, Yunnan Agricultural University launched China's first undergraduate program in coffee science and engineering.

With the joint efforts of the government, growers and entrepreneurs, Yunnan's coffee industry is on a fast track to high-quality development, putting China's coffee on the map among international players. 

For years, coffee lovers have looked to Latin America and Africa for the best beans. And Yunnan coffee remained a well-kept secret, enjoyed mainly by locals and specialty coffee enthusiasts.

Now Yunnan coffee has started appearing in cafes from New York to London, often featured in single-origin espresso shots or delicate pour-overs.

A report by the International Coffee Organization believes that China has the potential to have a bright and formative future in coffee, noting its firm integration into the global coffee value chain and its own unique place within the global coffee industry.

Data from Kunming Customs show that in 2024, Yunnan exported 32,500 tons of coffee – a remarkable year-on-year increase of 358 percent. The coffee was shipped to 29 countries and regions — including the Netherlands, the United States, and Vietnam. 

The province’s expanding global presence is further bolstered by efficient logistics, such as the China-Europe freight train service, which ensures European consumers receive their coffee orders in as little as 15 days.

Pu’er, often dubbed “China’s coffee capital,” plays a pivotal role in the supply chain, providing raw beans for industry giants such as Nestle, Starbucks, and Luckin Coffee.

According to Starbucks’ website, since establishing a farmer support center in Yunnan in 2012, the company has worked closely with local growers to refine cultivation techniques and improve bean quality, expanding the reach of Yunnan coffee internationally. In addition to meeting Chinese domestic demand, the premium beans are exported to markets across Asia, Europe, and the U.S., with Starbucks even offering a Yunnan single-origin coffee in its Chinese product lineup.

The online marketplace has taken notice as well. Some have begun sourcing Yunnan beans for their specialty blends, recognizing the region’s potential to stand alongside the greats.

On Amazon, Yunnan coffee varieties are selling briskly, with many customers commending the beans’ exceptional quality and distinct character. It’s no longer just a hidden gem, but a rising star in global coffee market.

From humble beginnings with commercial beans to a thriving specialty coffee scene, Yunnan's coffee industry is brewing success after decades of exploration.

Back in Dali, that first cup of Yunnan coffee now feels like a prologue. What was once a local secret is emerging as a global narrative—one of resilience, innovation, and terroir.

From the hands of Bai farmers meticulously handpicking cherries to the precision of roasters in Kunming, every step reflects a commitment to quality that’s rewriting China’s role in the coffee world. With China's coffee culture thriving, the best is yet to come.

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

Legislation on stablecoins is a milestone for Hong Kong, paving way for RMB’s cross-border use;

China's finance ministry issues 12.5 billion yuan of treasury bonds in Hong Kong.

Here’s what you need to know about China in the past 24 hours 

Hong Kong's introduction of the world's first dedicated legislation on fiat-referenced stablecoins — a type of cryptocurrency — marks a significant milestone in the city's push to solidify its status as a global financial hub that pioneers in virtual asset regulation, financial experts said.

The move also reflects China's broader strategic ambition to strengthen its financial heft in the digital age, the experts said. They added that the legislation may open up new possibilities for cross-border use of the digital yuan, or e-CNY, while providing a reference for any potential adoption of stablecoins in other parts of the country.

A stablecoin is a digital currency that is built on blockchain technology and pegged to fiat currencies or other assets at a designated exchange rate to maintain a stable value. Fiat-referenced stablecoins are backed by fiat currencies, which are government-issued money not backed by a physical asset such as gold.

In late May, the Legislative Council of the Hong Kong SAR passed the Stablecoins Bill, establishing a licensing regime for fiat-referenced stablecoins issuers. The bill became law on May 30 when it was gazetted as the Stablecoins Ordinance.

While the commencement date of the ordinance is currently unknown, the Hong Kong Monetary Authority said it expects the ordinance to take effect this year.

"Hong Kong's Stablecoins Ordinance marks the world's first official legislation targeting stablecoins, setting a policy benchmark globally," said Song Ke, executive vice-president of Renmin University of China's Shenzhen Research Institute.

The legislation opens new possibilities for the cross-border use of the e-CNY, representing a positive factory for the internationalization of the Chinese currency. Such synergy may allow China to explore innovations for cross-border payments, improve efficiency and reduce reliance on SWIFT, the world's leading system of secure financial messaging services, Song added.

Stablecoins have drawn regulatory attention globally. On May 19, the United States Senate advanced its own bill to regulate stablecoins, called the GENIUS Act.

Circle Internet, the issuer of regulated stablecoin USDC, may raise USD1.1 billion through an IPO on the NYSE, bringing its market value to USD6.8 billion.

Yuan Shuai, deputy secretary-general of Z-Park Internet of Things Industry Alliance, said Hong Kong's Stablecoins Ordinance has significant importance for the global financial hub amid intensifying global competition over stablecoin leadership.

"Hong Kong's more open regulatory environment for the crypto industry will present opportunities for the subsidiaries of mainland banks to gain experience in the market," Moody's Investors Service said in its research report.

GBA express

China's Ministry of Finance issued this year's third batch of yuan-denominated treasury bonds worth 12.5 billion yuan in Hong Kong yesterday, including 3.5 billion yuan of two-year bonds and 3 billion yuan of each of three-year, five-year, and 10-year bonds.  

Hong Kong announced the pricing of approximately HKD27 billion worth of green bonds and infrastructure bonds denominated in Hong Kong dollars, renminbi, US dollars and euro. According to the government, the offering attracted participation from over 30 markets across Asia, Europe, the Middle East and the Americas, with the total order amounting around HKD237 billion.

Southeast Asian business veterans participating in an opportunity-discovery tour of the Greater Bay Area said on Wednesday they hope to harness the region’s development opportunities and institutional advantages as a springboard into the broader Chinese market. They were part of a delegation of more than 70 consular officials and business chamber heads from Hong Kong, with Shenzhen being their first stop. On the second day, the delegation traveled to Guangzhou, with an itinerary that included stops at smart agriculture company XAG and EV manufacturer XPeng. The group also toured Guangzhou International Financial City. The day concluded with a policy promotion session hosted by the Guangzhou municipal government, offering further insights into the city’s development strategies.

Cathay Pacific announced that it has partnered with Sinopec to refuel select departures from Hong Kong International Airport using sustainable aviation fuel blended by the Chinese state-owned energy giant.

Shanghai-based Jinjiang International Hotels, which is listed on the city's stock exchange, announced on Wednesday it is seeking a secondary listing in Hong Kong. Funds raised through the IPO will be used to repay loans, strengthen overseas expansion and replenish working capital. The group plans to open more hotels in Asia, including Malaysia.

Industry and company news

Shares in Changan Automobile advanced today after the Chinese vehicle manufacturer said that it will be spun off from its parent company China South Industries Group to become a standalone central state-owned enterprise, putting an end to long-standing rumors of a potential merger with Dongfeng Motor. Changan’s auto business will be calved off into an independent central enterprise, the firm said today, citing a notice that China South Industries received from the State-owned Assets Supervision and Administration Commission, which has received approval from the State Council.

XPeng Motors announced it partnered with Huawei to equip the Chinese tech giant’s cutting-edge augmented reality heads-up display on its upcoming G7 electric SUV. The new AR HUD technology will be unveiled at a launch event today.

China Southern Airlines flight CZ3383, carrying 139 passengers, became the first commercial flight on the China-made C919 to fly to a regional airport after landing at Nanyang Airport in Henan province from Guangzhou yesterday.

Chinese wind power giant Sany Renewable Energy has signed a clean energy supply agreement in Serbia to construct a wind power plant in the eastern European country. The wind farm will be located in the northeastern city of Alibunar and generate 480 million kilowatt-hours a year, Sany said yesterday.

May deliveries of China-made Tesla Model 3 and Model Y electric cars, both domestically and for export, fell 15 percent from a year earlier to 61,662 vehicles, following a 6 percent drop in April, according to the China Passenger Car Association on Wednesday. 

Zhejiang has become the first province in China to issue special government bonds for the purpose of buying unsold homes and converting them into affordable housing. The province sold three bonds worth nearly 1.7 billion yuan, according to an official announcement.

China's finance ministry unveiled a list of 20 Chinese cities, including Beijing, Tianjin, Dalian, Harbin, Suzhou, Guangzhou, and Urumqi, eligible for central budget support for urban renewal actions. The subsidies are limited to 800 million yuan for eastern cities, 1 billion yuan for the central cities, and 1.2 billion yuan for the western cities and municipalities.

Asia-Pacific highlights

Chinese carmakers took center stage at an exhibition on Wednesday during the Road Safety Week events organized by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) in Bangkok. Several leading Chinese carmakers in Thailand -- Changan Automobile, GAC Group, BYD, and Great Wall Motor -- joined global peers like Mercedes-Benz and Land Rover to showcase advanced driver-assistance systems, including features such as adaptive cruise control and automatic parking.  

China announced an "ASEAN visa" for business executives from the 10 ASEAN members and ASEAN observer Timor-Leste. Chinese Foreign Ministry spokesman Lin Jian told a news conference on Tuesday that the new program offers five-year multiple-entry visas to eligible applicants visiting China for business. It allows them, their spouses and their children a maximum stay of 180 days. Lin said this will further facilitate cross-border travel in the region following the visa-free arrangements between China and Singapore, Thailand and Malaysia, plus China's "Lancang-Mekong visas" program for Mekong River nations.

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Host: Stephanie LI

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Produced by 21st Century Business Herald Dept. of Overseas News.

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Hi everyone. I’m Stephanie LI.

Coming up on today’s program

Chinese stocks continued to gain on Wednesday, enchanting global investors on more supportive moves;

High-profile Hong Kong delegation tours GBA for growth opportunities.

Here’s what you need to know about China in the past 24 hours 

China's A-share market has remained steadfast despite headwinds in major Asian markets at the start of the month, and is likely to provide more structural opportunities as the nation rolls out more supportive measures and its economic fundamentals stabilize further, experts said.

The benchmark Shanghai Composite Index continued to gain 0.42 percent today, while the Shenzhen Component Index jumped 0.87 percent, with the ChiNext board rallying 1.1 percent. Combined trading value at the Shanghai and Shenzhen exchanges exceeded 1.15 trillion yuan, with over 3,900 stocks in the rise.

Boosted by the Dragon Boat Festival consumption boom, shares related to consumption gained the most. Moreover, jewelry and accessories companies reported the biggest daily increase of 5.21 percent on average on Tuesday, partly due to the return of benchmark COMEX gold futures to above the $3,400 per ounce level.

"Recently, the rollout of a package of fresh policy measures in early May further stabilized expectations and markets. Stepped-up policies and stable economic growth will bring more opportunities to China's capital market in 2025," said Yang Delong, chief economist at Shenzhen-based First Seafront Fund.

Yang said that the overall valuation of the A-share market is less than one-third of the US stock market, which means great investment opportunities. "With the emergence of sci-tech innovative fields represented by artificial intelligence and humanoid robots, China's capital market is expected to attract inflow of more overseas capital," he said.

As the IPO market in China is starting to recover, three main stock exchanges accepted more applications in May than they did in the first four months combined.

The Shanghai Stock Exchange, Shenzhen Stock Exchange and Beijing Stock Exchange accepted 16 IPO applications last month, compared with 11 from January to April, according to Wind Information data. In all, 27 companies had their filings accepted in the first five months, a big jump from just two in the same period last year.

The improved quality of IPO applicants means we can expect more vibrant investment and fundraising activities from companies listed on the Beijing bourse going forward, analysts noted.

GBA express

A high-profile delegation of consular officials and business leaders from Hong Kong are on a tour of the Greater Bay Area on Tuesday, aiming to explore the region’s rapid development. With the theme “Revisiting the Greater Bay Area to Embrace New Opportunities”, the four-day trip will take the delegation through Shenzhen, Guangzhou, and Zhuhai, with stops at key development platforms such as Qianhai, Nansha, and Hengqin. Participants will also visit leading firms such as Tencent and Medprin Biotech, and attend policy briefings by Guangdong officials. 

Guangdong has launched a 10 billion yuan intelligent industry fund in its capital city, Guangzhou, aimed at accelerating the development of AI, robotics, and semiconductor technologies. The fund's initial phase will raise two billion yuan.

Douyin's monthly active users in Hong Kong exceeded 3 million, up 147 percent from the end of 2022 and over 60 percent from a year earlier, according to the Chinese short video platform. Its parent firm ByteDance is also accelerating its AI deployment in the city, with its cloud computing provider BytePlus launching a data center there last October. 

Industry and company news

China has launched a campaign to promote new energy vehicles in rural areas where the NEV penetration is low but consumption potential is high, according to a circular released by the MIIT and four other authorities. 124 NEV models from BYD, Geely Auto, GAC Aion, Xpeng Motors, Tesla, and other carmakers are included in the campaign.

French President Emmanuel Macron and Envision CEO Zhang Lei attended the opening of its subsidiary AESC’s lithium-ion battery gigafactory in the northern French city of Douai yesterday. The plant can provide batteries for 200,000 EVs a year, Envision said today.

Nio said it plans to expand into Austria, Belgium, Czech Republic, Hungary, Luxembourg, Poland, and Romania in 2025 and 2026 as the next step in its European growth journey. The Chinese NEV startup will bring cars under both the Nio and Firefly brands to these new markets. Meanwhile, Nio is still expected to achieve its profitability target in the fourth quarter, its chief executive officer said after its net loss expanded by more than 30 percent in the first quarter. Revenue rose 21 percent to 12 billion yuan.

Tencent is ramping up efforts to recruit young talent through its largest-ever campus hiring project, aiming to offer 28,000 internship positions over the next three years. More than 60 percent of the new positions in its campus hiring are technical roles. The company has also launched a recruitment program named Qingyun, targeting elite students for AI research and leadership development through mentorship from senior executives and participation in cutting-edge projects.

Asia-Pacific highlights

Chinese cookware maker Aishida plans to invest no more than 150 million yuan to build a cookware, small appliances, and industrial robots production base in Vietnam. Aishida's unit Aishida Hong Kong will invest in the plant located in Dong Nai province, which will help expand its business in Vietnam and Southeast Asia, it said yesterday.

Air China and Emirates have signed an MOU to expand their reciprocal interline cooperation. The two carriers will explore reciprocal codeshare arrangements and collaborate on cargo operations and their frequent flyer loyalty programs.

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

China saw 3% increase in cross-regional trips during Dragon Boat Festival, with folklore tours spurring consumption;

BYD retains electric car crown in May.

Here’s what you need to know about China in the past 24 hours 

China saw a robust growth in travel and tourism-related consumption during the just-concluded Dragon Boat Festival holiday, as the country's cultural appeal and spending momentum continued to draw crowds across major cities and provinces, official data released on Tuesday revealed.

According to China's Ministry of Transport, an estimated 657 million inter-provincial trips were recorded during the three-day holiday, averaging 219 million trips per day, up 3 percent year-on-year. 

Railways played a central role, which handled 47.1 million passenger trips during the holiday, marking a 2.3 percent increase year-on-year. 

During the holiday, robust consumption growth in the culture and tourism market was highlighted by a surge in domestic folklore tourism bookings to short-distance destinations, amusement parks and other cultural attractions.

From traditional dragon boat races and zongzi-making (sticky rice dumplings) workshops to immersive cultural experiences, these folklore events are empowering consumption scenarios with cultural elements.

Data from online travel agency Qunar showed a spike of 2.5 times month-on-month in searches for "dragon boat," "Dragon Boat Festival" and "zongzi" as of Monday. The report showed significant 40 percent year-on-year growth for folk experience destinations.

Bookings for cities with dragon boat traditions also saw significant surges. In Foshan, South China's Guangdong Province, total travel orders rose 167 percent, while in Miluo, Central China's Hunan Province, considered by many to be the birthplace of dragon boat culture, bookings jumped 85 percent, according to Trip.com. Strong demand for short-distance travel during the festival led to bookings increasing 23 percent year-on-year. 

Data from another travel agency Tongcheng Travel showed that in the first two days of the Dragon Boat Festival holiday, search for keywords related to "Dragon Boat Festival" and "intangible cultural heritage" nearly doubled year-on-year.

Meanwhile, during the three-day holiday, the number of visits to travel tips related to domestic intangible cultural heritage markets increased by more than 300 percent year-on-year, per Tongcheng Travel.

Experts attributed the boom to the heightened spending vigor spurred by the economic revival and government push for high-quality services consumption, highlighting the shift toward a more sophisticated consumption structure and diverse consumer needs, driven by overall industry upgrades.

Global GDP growth is projected to slow from 3.3 percent in 2024 to 2.9 percent this year and the next year, the Organization for Economic Cooperation and Development (OECD) said on Tuesday.

China on Sunday began implementing a trial policy that unilaterally grants visa-free entry to citizens of Brazil, Argentina, Chile, Peru and Uruguay. Under the policy, which will remain in effect through May 31, 2026, holders of ordinary passports from these five countries can enter China without a visa for up to 30 days.

GBA express

The Guangdong-Hong Kong-Macao Greater Bay Area International Auto Show is expected to welcome a record number of visitors this year, according to the event's organizer. In the first three days, which coincided with the Dragon Boat Festival holiday, the GBA Auto Show attracted 450,000 visitors, an increase of 28 percent from a year earlier, according to data disclosed by the Shenzhen United Auto Show Management. The GBA Auto Show is held at the Shenzhen World Exhibition and Convention Center from May 31 to June 8, with over 110 car brands and 1,039 car models showcasing in the event. Some 4 billion yuan worth of transactions were completed at the GBA Auto Show between May 31 and yesterday, up 8 percent from a year earlier.

Hong Kong logged an increase in tourist arrivals from the Chinese mainland during the first two days of the Dragon Boat Festival break, official data show. On Saturday and Sunday, the number of inbound passenger trips through all checkpoints exceeded 1.17 million. Among them, over 270,000 were made by mainland visitors, a surge of more than 7 percent compared to the same period last year.

Industry and company news

Multiple Chinese carmakers reported year-on-year growth in their monthly sales in May. BYD’s sales reached 382,476 units, a year-on-year increase of 15.27 percent. Chery's car sales hit 205,732 in May, with NEV sales standing at 63,169, a surge of 47.7 percent year-on-year. Geely Auto’s Zeekr led Chinese NEV startups with 46,538 car deliveries last month, followed by Leapmotor, Li Auto, and Xpeng Motors. Xpeng deliveries surged 230 percent to 33,525 units from a year earlier. Xiaomi Auto’s deliveries exceeded 28,000 units in May.

Huawei will release its new flagship Pura 80 series at a launch event on June 11, according to a teaser poster. The new phones will feature powerful camera capabilities and the tech giant's Harmony OS 5 operating system. Meanwhile, Vivo will release its next-gen foldable phone, the X Fold5, late this month, which will be lighter than the previous X Fold3, according to sources.

Etihad Cargo, the cargo and logistics arm of the United Arab Emirates' Etihad Airways signed a strategic cooperation agreement with Ezhou Huahu Airport in Central China's Hubei Province on Monday. The partnership will focus on increasing flight frequencies, opening new routes and building joint solutions for cross-border e-commerce, cold chain logistics and high-value manufacturing.

China's consumer goods trade-in program has generated 1.1 trillion yuan in sales in the first five months this year, the Ministry of Commerce said on Sunday. As of Saturday, nationwide trade-ins had fueled a surge in transactions, including 4.12 million vehicles, 77.62 million units of household appliances and 56.63 million units of digital products.

China's box office earnings reached 459 million yuan during the three-day Dragon Boat Festival break as of 9 p.m. yesterday, according to movie data platform Beacon. “Mission: Impossible - The Final Reckoning” topped the chart with about 190 million yuan.

Asia-Pacific highlights

China and Bangladesh on Sunday signed a memorandum of understanding on strengthening economic cooperation in industrial chain and supply chain between the Ministry of Commerce of China and the Ministry of Finance of Bangladesh.

Stock markets in Asia slipped on Monday amid investors' concerns over Washington's hike in steel and aluminum tariffs to 50 percent. In South Korea, steelmaker POSCO Holdings saw its shares sink 2.4 percent, while Hyundai Steel fell 2.66 percent.Vietnamese steelmakers Hoa Sen Group and Nam Kim Steel tumbled 2.8 percent and 3.4 percent, respectively. Japan's benchmark Nikkei 225 ended down 1.3 percent and the Topix index dropped 0.87 percent.

The total net profit of airlines from Asia Pacific, of which China accounts for 40 percent of the total traffic, is expected to expand 23 percent to USD4.9 billion this year, according to data from the IATA. Global airlines’ net profit will likely grow 11 percent to USD36 billion, and their revenue may reach a record USD979 billion in the period.

Hello! Welcome to this edition of CBN Perspective. I’m Stephanie Li.

China’s new energy battery bigwig Contemporary Amperex Technology Limited (CATL) has made headlines again – this time for its USD4.6 billion debut on the Hong Kong stock exchange, the world’s largest initial public offering this year. 

CATL’s shares surged as much as 18% on its debut, a signal of both investor confidence and the company’s carefully orchestrated industrial dominance. CATL commands 38% of the global electric vehicle battery market, comfortably ahead of rivals BYD and LG Energy Solution. That kind of dominance doesn’t happen by accident. CATL has cultivated long-term relationships with industry titans such as Tesla, BMW and Volkswagen. 

But CATL is perceived by the market as a company that is not short on funds. According to the latest financial report, as of the end of the third quarter of 2024, CATL held 264.7 billion yuan in cash on its balance sheet. Its HKD35.3-billion IPO is only a tiny fraction of its HKD1.4 trillion market cap. So why Hong Kong for a secondary listing? 

Founded in 2011, CATL was listed on Shenzhen Stock Exchange’s ChiNext market in 2018. Last year, the group’s net profit reached 50.75 billion yuan — a year-on-year increase of 15% — with dividends exceeding a whopping 25 billion yuan, not much less than the amount raised from the Hong Kong IPO.

In reality, CATL’s listing in Hong Kong is more about serving its overseas expansion strategy. At its previous roadshows, the company repeatedly mentioned that the purpose of the IPO fundraising is to actively expand its overseas business, with 90% of the funds intended for the construction of its Hungarian plant. The new factory is expected to become the largest EV battery factory in Europe upon completion.

In its annual report released in March this year, CATL also stated that the company is at a critical stage of rapid overseas expansion and layout. The Thuringia plant in Germany is currently ramping up production capacity, while the Hungarian plant, the joint venture plant in Spain with Stellantis and the Indonesian battery industry chain project are still under construction or in the planning stages — all of which require significant overseas funding.

This deep integration gives CATL a unique position within the EV ecosystem. Its clients are not merely customers; they are co-investors in CATL’s future. This translates into greater security of demand, faster deployment of new battery chemistries and an expanding global footprint. In an industry where scale and speed are decisive, CATL checks both boxes, and then some.

“CATL is not just a battery component manufacturer; we are a system solution provider and are committed to becoming a zero-carbon technology company,” said Chairman Zeng Yuqun at the listing ceremony. 

He stressed that the global zero-carbon transportation market is a trillion-dollar opportunity poised for explosive growth, in light of which CATL is promoting the integration of the transportation and energy grids.

BloombergNEF predicts that annual investment in electric transportation must reach USD3 trillion by 2030. CATL has built the world's most advanced and diversified product portfolio to respond to this revolution.

In terms of power grids resilience, CATL is channelling resources into zero-carbon grid technologies, including power electronics, flexible regulation systems, and virtual power plants.

It also aims for all factories to be carbon-neutral this year and is helping to decarbonize traditional industries such as steel, cement, and chemicals. The International Energy Agency(IEA) predicts that starting in 2030, achieving net-zero emissions will require USD4.5 trillion in annual global investment.

Trekking deeper in its foray to expand worldwide, CATL’s the move is of strategic importance to get it connected with global financial markets.

And CATL is not the only company that chose “A+H” dual listings on both the A-share and Hong Kong markets.

Several A-share companies in the lithium battery and photovoltaic sectors — such as Wuxi Lead Intelligent, CNGR Advanced Material, Shenzhen Senior Technology Material, Zhejiang Narada Power Source and Hainan Drinda New Energy Technology — have all announced plans to list in Hong Kong.

The biggest three IPOs so far this year, besides CATL, included China’s biggest bubble tea chain Mixue Ice Cream & Tea and top biopharma company Jiangsu Hengrui Pharmaceuticals.

This Wednesday, five mainland companies, including Muyuan Foods, BASiC Semiconductor, FS.com, Shanghai Seer and Worldwide Logistics, have filed preliminary listing applications with the HKEX to raise capital, joining the flurry of Chinese start-ups that have pushed the city to the top of the global ranking for IPOs.

In April 2024, Chinese mainland securities regulator rolled out five measures to bolster capital market ties with Hong Kong, including encouraging leading mainland firms to list in Hong Kong. In October 2024, Hong Kong’s Securities and Futures Commission (SFC) and the HKEX announced fast-track approvals for eligible A-share applicants. 

“Formidable” clusters of companies are set to tap Hong Kong’s IPO, as IPOs in the city have raised around USD10 billion this year and there were more than 150 companies in the pipeline, including many USD1-billion-plus jumbo deals, HKEX CEO Bonnie Chan Yiting said on Wednesday.

The three clusters were mainland Chinese A-share firms, US-listed Chinese firms and specialist companies, she added.

As a growing number of US-listed China concept stocks are proactively returning to list closer to home to circumvent geopolitical risks and the potential threat of delisting, Hong Kong’s IPO market is poised to further invigorate.

On May 7, China Securities Regulatory Commission Chairman Wu Qing said that they will safeguard the legitimate interests of Chinese companies listed overseas, and create conditions to support the return of high-quality US-listed Chinese firms to the A-share market and the Hong Kong market.

Beyond their financial triumph, mainland firms listing in Hong Kong is a strategic maneuver in a rapidly changing geopolitical and industrial landscape.

They, in fact, signaled a clear intention: to distance itself from mounting US regulatory pressure while deepening financial ties with more receptive markets across Asia, the Middle East and Europe.

With Washington increasing scrutiny over Chinese tech firms, particularly those involved in energy and critical infrastructure, raising capital in New York has become more political than financial.

For them, it’s not just about raising money – it’s about charting a path of financial independence and resilience in a world of fragmented alliances.

Still, embracing big mainland IPOs amid China-US competition presents both opportunities and challenges for the international financial hub.

CATL issued its shares through a “Regulation S” offering, meaning the securities were not offered to investors within the US, thus bypassing the need to register with the US Securities and Exchange Commission. While this helps circumvent US regulatory scrutiny and potential political risks, it also limits the participation of US institutions.

Given that the Hong Kong stock market is already smaller than the US market, market participants worry that if trade tensions between China and the US spill over to affect more stocks, further restricting US investment will inevitably reduce the overall capital supply to the Hong Kong market, leading to an oversupply of shares.

Lawrence Lau, Greater China Financial Accounting Advisory Services Leader at Ernst & Young, as pointing out that insufficient trading activity for some stocks and even a short-term oversupply situation could result from a large-scale influx of newly listed companies to the Hong Kong stock market without a corresponding significant increase in market funds, impacting company valuations and share price performance.

In the long run, the key to whether Hong Kong stocks can continue to attract and accommodate more heavyweights such as “King Ning” and “King Snow” lies in whether it can maintain sufficient capital inflows.

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

Dragon Boat festivities and zongzi exports surge ahead of traditional holiday;

Bangladeshi mangoes enter China for the first time.

Here’s what you need to know about China in the past 24 hours 

As the Dragon Boat Festival approaches, celebrations are in full swing across the globe, with dragon boat races and traditional food gaining popularity beyond Chinese communities.

This year, the demand for festive zongzi—sticky rice dumplings wrapped in bamboo leaves—has seen a significant rise, with exports from Shenzhen alone exceeding 134 metric tons, marking a 110 percent increase compared to last year.

Traditional festivals have long been celebrated by overseas Chinese communities, and this year’s Dragon Boat Festival is no exception.

In Cape Town, South Africa, the local dragon boat association organized races and even a fun tug-of-war competition. The event attracted not only Chinese participants but also many locals eager to experience the lively festivities.

Meanwhile, the export market for zongzi has expanded considerably.

At a Shenzhen-based food factory, workers are busy preparing thousands of the delicacies daily to meet growing international demand.

Huang, a zongzi factory manager, recently gave a video tour to a British client, showcasing the production process. "This is our factory. We produce around 10,000 zongzi per day, all freshly steamed," he told the client.

Each zongzi is meticulously hand-wrapped, with skilled workers making 600 to 700 daily. However, due to surging orders, the factory has had to nearly double its workforce.

With increasing interest from abroad, the factory is eyeing new markets. Deputy manager Feng revealed plans to expand further, develop markets in Singapore, the Netherlands, the U.S., and Vancouver.

Classic Cantonese savory zongzi, such as those filled with salted egg yolk and pork, remain the top export, but innovative flavors like seafood and fruit zongzi are also gaining traction. 

Additionally, as this year’s Dragon Boat Festival falls earlier than usual, many export companies began receiving orders as early as late March, contributing to the notable rise in both export volume and reach.

GBA express

The Forum on Building up Cultural Strength and Promoting Digital Intelligence of the Greater Bay Area was held in Shenzhen on Wednesday, which gathered professionals from cultural sectors and experts on diverse disciplines such as Wu Zhiliang, a member of the National Committee of the CPPCC, Haiya, Hugo Award winner for Best Novelette, and renowned actor Zhang Guoli. In their speeches, attendees, drawing on the ongoing digital technology innovations in the GBA, particularly in Shenzhen, explored topics such as how digital technology can support the development of a cultural community in the region. Meanwhile, the Lingnan culture big data center was inaugurated in Guangzhou yesterday. By integrating cultural resources such as intangible cultural heritage, history and folk customs, the center has developed distinctive databases like the Lingnan dialect corpus and the Lingnan cultural gene bank to promote the digital protection and revitalization of cultural heritage. In the GBA, Lingnan culture boasts a rich and profound history, encompassing five UNESCO Representative Intangible Cultural Heritage elements, including Cantonese opera, guqin, paper-cutting and tea art.   

Hong Kong is taking another big step to strengthen financial-market linkages with the Middle East with the launch of Asia’s first exchange-traded fund (ETF) tracking Saudi Arabia’s Islamic government bonds, or sukuk. The ETF, called Premia BOCHK Saudi Arabia Government Sukuk ETF, started trading on the Hong Kong stock exchange on Thursday.

Zhuhai has launched a new company as part of an ambitious program to boost its artificial intelligence (AI) and robotics sectors. On Wednesday, the city announced its support for the newly established Zhuhai Technology Industry Group, focusing on AI and robotics. It also unveiled incentives for local businesses, including “computing power vouchers” totaling 500 million yuan. Eligible companies will be reimbursed for half of their computing power expenditures, capped at 10 million yuan.

Industry and company news

NVIDIA CEO Jensen Huang said during a quarterly earnings calls on Wednesday that the US' export control policy on AI chips to China was "clearly wrong," noting that China's AI will move on with or without US chips due to its abundant AI talent. Huang stated that China is one of the world's largest AI markets and a springboard to global success. Nvidia said the restrictions on exports of its H20 chip to China resulted in lost sales of US$2.5 billion in its fiscal first quarter in 2025 and are expected to rise to US$8 billion in the current quarter.

Honor CEO James Li yesterday confirmed that the Chinese phone maker has entered the robotics sector. Li shared behind-the-scenes stories of the company’s robotics team at the Honor 400 series launch, with a video showing a humanoid robot running at a speed of up to 4 meters per second, a new industry benchmark.

Competition in China’s auto market will get fiercer in the next five years, He Xiaopeng, chairman of Chinese NEV startup Xpeng said yesterday. Carmakers should shift their focus to technological breakthroughs and expanding overseas from low-price competition, he added.

Nio joined hands with Geely's EV brand Zeekr over battery charging, the Chinese NEV startup said today. This will allow Nio, Onvo, and Firefly car owners to find and use Zeekr's charging stations via the three Nio brands' own apps.

DJI has reportedly started mass production of robotic vacuum cleaners, with the first model set to launch next month. The Chinese drone maker has spent more than four years developing the products, media reported, citing people familiar with the matter. The debut model will be a vacuum-mop combo.

China’s cinema ticket pre-sales for the upcoming Dragon Boat Festival holiday exceeded 30 million yuan as of 10 p.m. yesterday, with Mission Impossible: The Final Reckoning leading the chart, according to movie data tracker Beacon.

China launched the Tianwen-2 spacecraft early on Thursday morning to bring asteroid samples back to earth. The craft is designed to collect samples from an asteroid orbiting Earth that scientists believe may be a fragment of the moon. China would become the third country, after Japan and the US, to return asteroid samples.

Asia-Pacific highlights

Malaysia’s central bank has granted Chinese cross-border payment platform PingPong the Money Services Business license, making it the first China-based B2B cross-border payment institution to achieve such milestone. PingPong has secured over 60 global payment licenses and permits worldwide.

Shanghai's iconic Peace Hotel will be rebranded as Raffles Peace Hotel Shanghai, joining the portfolio of Singaporean luxury hotel chain Raffles Hotels and Resorts.

A shipment of 3 tons of fresh mangoes from Bangladesh arrived in Changsha, central Hunan province, yesterday, marking China's first import of mangoes from the South Asian country. Previously exported mainly to the Middle East and the EU, Bangladeshi mangoes are now entering China, with the importer estimating over 100 tons in the first year. In July 2024, China approved the import of fresh mangoes from Bangladesh. To facilitate the shipment, Changsha Customs offered end-to-end support, including policy consultation and quarantine approval.

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

China’s Dragon Boat Festival is expected to see a surge in short-haul and cultural tourism;

Chinese premier pledges stronger strategic alignment with ASEAN and GCC for common development during the trilateral summit.

Here’s what you need to know about China in the past 24 hours 

As China's Dragon Boat Festival approaches, cities across the country are seeing a surge in short-haul trips and cultural activities tied to the holiday, a trend that industry insiders predict will intensify as the summer travel season gains momentum.

During this year's holidays from May 31 to June 2, travel within the "two-hour high-speed rail radius" and short-to-medium distance self-driving trips have become the mainstream choices for holidaymakers, according to travel platform Fliggy, with car rental bookings for the holidays have so far increased by 47 percent year-on-year.

Bookings for domestic short-haul travel during the holidays are up 23 percent year-on-year, according to another travel platform Trip.com. 

As traditional Dragon Boat Festival culture gains traction, folk activities such as dragon boat racing are emerging as major draws for cultural and tourism spending during the forthcoming holidays, according to industry data.

As of Monday, bookings for holiday-themed tours featuring traditional activities like dragon boat racing and zongzi (sticky rice dumplings) making had surged by 105 percent year-on-year, data from Fliggy showed.

As part of the ongoing consumption-boosting efforts, the Chinese government in late April launched a nationwide campaign to promote cultural and tourism consumption, featuring measures including festival-themed activities and locally tailored events.

Meanwhile, according to the National Immigration Administration (NIA) on Wednesday, China is expected to see 2.15 million daily border crossings on average during the 3-day holidays, marking a 12.2-percent increase compared to the same period last year, 

Traffic at China's major international airports is projected to rise steadily, with Shanghai Pudong expected to lead with 100,000 daily crossings, followed by Guangzhou Baiyun at 48,000 and Beijing Capital at 46,000, according to the NIA.

As travel between Hong Kong, Macao, and the Chinese mainland continues to rise, the Dragon Boat Festival is expected to bring even greater volumes, to be boosted by a series of major events scheduled across Chinese provinces.

Asia-Pacific highlights

Premier Li Qiang called on Tuesday for further deepening strategic alignment and expanding regional opening-up among China, the Association of Southeast Asian Nations and the Gulf Cooperation Council, in order to address new challenges and fully unleash the potential of open development. Addressing the inaugural ASEAN-GCC-China Summit, Li urged the three parties to build the related regions into a large shared market where resources, technologies and talent flow more efficiently, and trade and investment enjoy greater freedom and convenience.  He also called on China, the ASEAN and the GCC countries to jointly forge an example in openness, development cooperation and cross-civilization integration. The summit, themed "Synergising Economic Opportunities Towards Shared Prosperity", was hosted by Malaysia in Kuala Lumpur as part of its 2025 ASEAN chairmanship.

China will expand its visa-free entry policy for Saudi Arabia, Oman, Kuwait and Bahrain to cover all GCC member countries. From June 9, 2025, to June 8, 2026, people from the four countries holding ordinary passports will be allowed to enter China visa-free and stay for up to 30 days, Foreign Ministry spokeswoman Mao Ning said on Wednesday.

The Asian Infrastructure Investment Bank is looking to open new offices in Hong Kong and Singapore, according to people familiar with the matter, in a plan that would mark its biggest expansion since beginning operations in Beijing almost a decade ago. The multilateral lender, which had more than US$57 billion in assets at the end of last year, is currently negotiating with relevant parties in the cities to open the offices, the people said. The bank may announce the move at its annual meeting in June if it's finalized.

GBA express

World's first self-propelled deep-sea aquaculture vessel with a pollution-free seawater exchange system was successfully launched in Jiangmen, Guangdong Province on Tuesday, marking the start of a new era of China's deep-sea aquaculture industry that integrates intelligent aquaculture practices with energy conservation, environmental protection, and a combination of fishery and tourism. The vessel named Bay Area Lingding boasts an aquaculture space of nearly 80,000 cubic meters, providing ample room for fish to swim freely, CCTV reported.

The Ministry of Finance said Wednesday that it will issue a total of 68 billion yuan in renminbi-denominated treasury bonds in six batches in the Hong Kong SAR in 2025. The first two batches, totaling 25 billion yuan, were issued in February and April. The third batch of 12.5 billion yuan is scheduled to be issued via tender on June 4.

A 62,000-ton multi-purpose pulp carrier, China Ocean Shipping Company's inaugural weekly service ship to BRICS countries in eastern South America, began operations at the Nansha Port in Guangzhou on Monday.

Industry and company news

Profits of China's state-owned enterprises dropped 1.7 percent to 1.35 trillion yuan in the first four months of the year from a year earlier, according to data from the Ministry of Finance. Their revenues stayed flat at 26.27 trillion yuan.

Xiaomi's mobile phone shipments returned to rank first in the Chinese mainland in the first quarter for the first time in a decade, as its sales share of high-end smartphones reached 25 percent of the total, President Lu Weibing said yesterday. The average selling price of Xiaomi smartphones rose 5.8 percent to record 1,211 yuan from a year earlier.

Pinduoduo plunged over 13 percent in New York yesterday after the Chinese e-commerce giant owner of Temu said its first-quarter net profit shrank 47 percent to 14.7 billion yuan from a year earlier. Revenue rose 10 percent to 95.7 billion yuan.

The Ningbo-Zhoushan Port, the world's busiest port in terms of cargo throughput, on Tuesday announced three initiatives it has undertaken with three major European ports -- Hamburg and Wilhelmshaven in Germany, and Valencia in Spain -- to construct green shipping corridors and advance low-carbon port cooperation between China and Europe.

Chinese autonomous driving startup WeRide announced it has begun testing Robotaxis in Saudi Arabia, with trial operations to launch on Uber's platform soon and a full commercial rollout expected by late this year.

Today marks the second anniversary of home-made C919 aircraft's commercial operation. The jets have moved over 2 million passengers in the two years, its maker COMAC said. The 18 planes delivered to Air China, China Eastern Airlines, and China Southern Airlines run 24 routes and connect 16 cities.

Marriott International and Meituan today announced a partnership to introduce a joint membership program offering integrated “hotel + lifestyle” travel services. New members will receive a 388-yuan coupon that can be used on the platforms of both companies.

Enlight Media said yesterday that the English-dubbed version of the Chinese animation blockbuster Ne Zha 2 is expected to hit North American cinemas this summer. A Japanese dub is also in the works and will have an extended run in Japan.

Legoland Shanghai Resort announced it will begin selling one-day tickets and hotel packages at 8 p.m. today. For opening day, July 5, standard tickets are priced at 549 yuan, while children and senior tickets are 439 yuan.