Semiconductor Output Surges 23.1% China produced 279.8 billion pieces of integrated circuits in the first half of 2026, a 23.1-percent year-on-year increase, reflecting massive government-backed expansion of domestic chipmaking capacity and the maturation of advanced process nodes at facilities operated by SMIC, Hua Hong Semiconductor, and CXMT. The output surge coincides with a structural shift toward Huawei Ascend and other domestically produced AI accelerators, as US export controls on

A-Share Capitalisation Touches New Highs China's A-share market capitalisation reached record levels in June and July 2026, supported by a wave of domestic retail inflows, strong corporate earnings in the technology and consumer sectors, and renewed foreign appetite for Chinese equities following the inclusion of more A-share shares in global indices. The STAR Market Index — tracking Shanghai's high-tech Nasdaq-style board — climbed to 2,305 points in June, its highest level in over a year

Fastest Growth Since 2011 Hong Kong's economy expanded at an annualised rate of 5.9 percent in the first quarter of 2026 — the fastest pace of growth since early 2011 excluding pandemic-distorted periods — driven by a sharp rebound in investment, a surge in visitor arrivals, and resilient private consumption, according to the Hong Kong Census and Statistics Department. The reading significantly exceeded the Bloomberg consensus forecast of 3.5 percent and followed a 4.0-percent expansion in

Yuan Stable Near 6.78 Despite Dollar Strength The Chinese yuan held within a narrow band of 6.77 to 6.79 against the US dollar through July 2026, supported by a resilient current account surplus and active policy intervention by the People's Bank of China. On July 24, the China Foreign Exchange Trade System set the USD/CNY central parity rate at 6.7939, reflecting continued pressure from a firm dollar index but also underlying support from

China's Largest AI Startup Fundraising DeepSeek, the Hangzhou-based artificial intelligence laboratory, completed its first-ever external fundraising round in June 2026, raising more than 500 billion yuan ($74 billion) at a valuation exceeding $500 billion — making it China's largest AI startup by both capital raised and implied valuation, according to multiple sources familiar with the deal. The round, reportedly led by China's Big Fund (National Integrated Circuit Industry Investment Fun

First Monthly Price Gains in Four Months Twenty of China's 70 major cities reported month-on-month increases in new home prices for June 2026, according to data published by the National Bureau of Statistics — the first time in four months that a majority of surveyed cities recorded price gains. The figure marks a tentative but meaningful shift in sentiment for a market that has been the single largest drag on the broader economy since 2021. Shanghai Leads Tier-1 Recovery

LPR Stays Unchanged for 12th Consecutive Month The People's Bank of China kept its one-year Loan Prime Rate at 3.0 percent and the five-year LPR — the benchmark for most mortgage pricing — at 3.5 percent for July 2026, marking the twelfth consecutive month without a change to either rate. The decision was broadly anticipated by markets, with analysts noting that the central bank is prioritising stability over further easing as it assesses the impact of previous stimulus

Record Half-Year Trade Performance China's total goods trade in the first half of 2026 surpassed 25 trillion yuan for the first time in history, reaching 25.47 trillion yuan ($3.76 trillion) and posting year-on-year growth of 16.9 percent, according to official customs data. The robust performance was driven by a surge in high-technology exports and strong demand for Chinese electric vehicles and green-energy equipment from emerging markets. Export Highlights Auto exports reached $91.8

PMI Breaks Below-50 Streak China's manufacturing sector returned to expansion in June 2026, with the official Purchasing Managers' Index rising to 50.3 percent from 50.0 percent in May — a 0.3 percentage-point improvement that took the index above the critical 50-point threshold separating growth from contraction for the first time in three months, according to the National Bureau of Statistics. Sub-Index Breakdown The production sub-index climbed to 51.4, reflecting increased factory o

National Accounts Show Broad-Based Expansion China's gross domestic product expanded to 69.57 trillion yuan ($10.28 trillion) in the first half of 2026, up 4.7 percent year-on-year at constant prices, according to data released by the National Bureau of Statistics on July 15. The figure underscores an economy that is growing solidly, though momentum has moderated from previous years. The Q2 reading of 4.3 percent marked the weakest quarterly performance since 2022, raising questions about

A Rare Bright Spot in a Cautious Market Shenzhen's Guangming District has emerged as a standout performer in an otherwise cautious Chinese property market, defying the national downtrend with remarkable sales momentum in the first half of 2026. New-home net signings in Guangming surged 38% year-on-year in H1, driven by falling price entry points, maturing infrastructure and a wave of completions that have transformed the area from a conceptual new district into a lived-in community. In

The Coexistence Model Deepens China's 2026 corporate landscape is increasingly defined by a dual structure: large state-owned enterprises commanding strategic sectors — energy, infrastructure, finance, telecoms — while dynamic private firms drive innovation and consumer markets. The Fortune China 500 list published on July 21, 2026 offers a snapshot of this bifurcation. SOEs: Scale and Stability The top six positions on the Fortune China 500 list — State Grid (#1, $555.37 billion), C

Overall FDI Contracts Foreign direct investment into China totalled 327.3 billion yuan in the first five months of 2026, down 8.6% year-on-year, data from the Ministry of Commerce showed. The decline reflects a complex mix of global geopolitical uncertainty, shifting supply-chain investment priorities and a cautious stance from some multinational investors amid US tariff pressures. The Quality Story: High-Tech Inflows Surge Yet a closer structural look reveals a more encouraging narr

Market Cap Scales New Heights China's A-share market has scaled cumulative records through the first half of 2026, underpinned by strong technology-sector performance, foreign inflows and policy-driven sentiment recovery. The STAR Market Index — tracking Shanghai's Nasdaq-style board for high-tech startups — reached 2,305 points, a significant milestone reflecting investor appetite for China's innovation economy. IPO Market: A Record Haul New issuance activity has been exceptional. C

A Four-Month Streak for Tier-1 Cities China's tier-1 cities — Beijing, Shanghai, Guangzhou and Shenzhen — have now recorded four consecutive months of rising new-home selling prices from March through June 2026, NBS data confirmed in mid-July. The sustained price recovery in the premium segment stands in contrast to the broader national picture, where most smaller cities remain in price correction. June 2026: 70-City Snapshot Across the 70 monitored cities, the divergence was pronoun