Key economic and industry developments shaping today’s markets
Macro Highlights
Sino-British Economic Talks: Vice Premier He Lifeng visits UK June 8-13, will chair first China-US trade consultation mechanism meeting
Rare Earth Export Controls: MOFCOM defends medium/heavy rare earth restrictions as “internationally consistent,” reports approving compliant civilian-use export applications
- Gold Reserves: PBOC adds 1.86 tons in May (7th consecutive monthly increase), bringing total to 2,296.37 tons
- Liquidity: PBOC net withdraws 671.7B yuan last week; 930.9B yuan reverse repos maturing this week
- Forex Reserves: Rise 0.11% MoM to $3.2853 trillion in May
- EV Tariff Talks: Commerce Minister Wang Wentao makes “significant progress” in EU price commitment negotiations
Sector Spotlight
| Sector | Development |
|---|---|
| Manufacturing | MIIT launches “AI+Manufacturing” initiative, prioritizing industrial datasets and large model innovation |
| State-Owned Enterprises | SASAC unveils new planning system focusing national capital on strategic emerging industries |
| Capital Markets | SSE pushes listed firms to increase dividends, buybacks, and investor communication |
| Aviation | Boeing resumes China deliveries with 737MAX transfer to Zhoushan after April return |
| Payments | PBOC and HKMA to launch cross-border fast payment system by mid-2025 |
Corporate Moves
Notable Developments:
- LONGi Green Energy: HHLR to sell ≤0.5% stake
- Desay SV: Two shareholders plan 4.45% combined stake reduction
- Vanke: Shenzhen Metro to provide ≤3B yuan loan
- Stone Technology: Announces Hong Kong IPO plans
- BlueFocus: Plans Hong Kong secondary listing
Global Markets
- U.S. Stocks: All three major indices gained Friday (Dow +1.05%, Nasdaq +1.2%, S&P +1.03%) led by tech and crypto
- Immigration Tensions: ICE operations spark violent clashes in Los Angeles County immigrant communities
- Visa Policy: State Department reverses Harvard student visa ban after 48-hour policy flip
Investment Themes
1. Autonomous Driving Chips
Samsung-Infineon-NXP collaboration on 5nm automotive SoCs reflects growing demand. Everbright Securities notes 2025 will see sub-150k RMB urban NOA models driving chip demand, with BYD and Geely’s “ADAS democratization” benefiting third-party SoC suppliers.
2. Commercial Space
Successful LEO satellite launch (Group 04) marks progress. Western Securities highlights 200k+ Tiantong satellite service users and Huawei’s upcoming tests as indicators of maturing ecosystem.
3. Defense Exports
Indonesia’s J-10 fighter evaluation signals China’s military export momentum. SWSC sees geopolitical conflicts boosting recognition of Chinese defense systems.
4. ByteDance AI
Upcoming Volcano Engine conference (June 11-12) follows multiple AI product launches including podcast generator and vector database tech offering 115% performance gains.
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