Hi everyone. I’m Stephanie LI.
Coming up on today’s program
- China is confident in achieving healthy economic growth in 2025, with full-fledged government policy support, NDRC said;
- Hong Kong unveils its second policy statement to boost use of digital assets.
Here’s what you need to know about China in the past 24 hours
China is confident and also capable of minimizing the uncertainty and adverse impacts of external shocks, promoting sustained and healthy economic growth as existing stimulus policies take effect, to be reinforced by new pro-growth measures being planned by the government, according to the National Development and Reform Commission (NDRC), the country’s economic planner, on Thursday.
The remarks came in response to a media question about assessing the impact of external factors such as sluggish global growth on China's economic outlook, given the OECD's lowered global growth forecast and a latest warning from JPMorgan Chase’s CEO about US bond market risks.
Facing a more complex and severe external environment, China has adhered to steady economic progress, aided by the government’s more proactive policies, said Li Chao, spokesperson for the NDRC. She noted that the economy has generally operated smoothly, with accelerated efforts to stabilize employment.
While the World Bank and OECD cut global growth forecasts, China's growth outlook remains stable, with Deutsche Bank, Morgan Stanley, and Goldman Sachs raising their forecasts for China, Li said. For example, Deutsche Bank analysts recently raised China's GDP forecast by 0.2 percentage points to 4.7 percent growth for the full year of 2025.
Speaking on the expanded policy support for equipment upgrade and consumer goods trade-in programs, Li noted that ultra-long special treasury bonds provide CNY200 billion in support for equipment upgrades.
The first batch of approximately CNY173 billion has been allocated to around 7,500 projects across 16 sectors, and the second batch is currently undergoing project review and selection.
For consumer goods trade-in, CNY300 billion in ultra-long special treasury bonds have been allocated, with the first two batches totaling CNY162 billion disbursed as planned in January and April.
To stabilize employment, Li said that the NDRC and the Ministry of Finance allocated CNY16.5 billion in 2025 central special investments for the work-relief programs, supporting over 3,900 projects nationwide which are expected to address employment and income issues for 380,000 people in difficulty.
GBA express
- Hong Kong on Thursday released its second policy statement on the development of digital assets to establish a framework for service providers. The government also plans to regularize the issuance of tokenized government bonds and incentivize the tokenization of real-world assets to enhance liquidity and accessibility. Guotai Junan International shares extended gains to a fourth day, bringing this week’s advance to nearly 300 percent. The broker obtained regulatory approval to offer trading services of cryptocurrencies in Hong Kong yesterday.
- Hong Kong will launch its own drug and medical device regulator by late 2026, ending dependence on foreign approvals, Director of Health Ronald Lam Man-kin said on Thursday. The city will also begin setting up a mechanism for primary evaluation for new drugs in phases in 2026, with the goal of completing the setup in 2030, he added. Currently, to get registered in the city under the secondary evaluation system, western-style drugs need approval from at least two overseas regulators. Chinese medicines and medical devices are able to get primary evaluation in the city.
- SF Express aims to raise nearly HKD3 billion through share placement to strengthen the firm’s cross-border logistics capabilities and R&D and optimize its capital structure, the Chinese courier said in a bourse filing today.
- Reconova Technologies, a Chinese mainland AI company specializing in visual perception, is planning an IPO in Hong Kong as soon as this year, according to people familiar with the matter. The Intel Capital Corp-backed firm is said to be working with advisers on a share sale that could raise about USD100 million.
Industry and company news
- Unitree Robotics’ annual revenue has surpassed CNY1 billion, founder and CEO Wang Xingxing said at the Summer Davos today. The time humanoid robots can be used in large quantities has not yet come, Wang said. AI robots will undergo stepwise development, and products need to be precisely aligned with the market, he added.
- BYD said it has penned a supply agreement with Voestalpine for the leading Austrian steel producer to supply its new passenger car factory in Hungary. The deal covers sheet steel and makes Voestalpine one of the first confirmed supply partners for BYD's Szeged factory, the carmaker announced yesterday.
- Geely said it will take a 26 percent stake in a Brazilian joint venture controlled by France's Renault in its first foray into Latin America's largest car market. The venture will manufacture and distribute both Renault and Geely brand vehicles.
- China unveiled new regulations aimed at countering tax evasion and income concealment by online vendors. The rules, released in a policy document from the State Council, China's cabinet, require digital platforms to provide names and income figures on a quarterly basis for all merchants they host, beginning in October. Failure to comply is punishable by fines of up to CNY500,000 and possible suspension from operation.
- Louis Vuitton unveiled its new cruise ship-shaped landmark today in Shanghai's Jingan district. The Louis includes a boutique store, a restaurant, exhibition spaces, and an outdoor terrace, the French luxury brand said, noting that it will open to the public from June 28, with visitors able to make reservations via a WeChat mini-program.
Asia-Pacific highlights
- China has played a transformative role in expanding global connectivity, with its Belt and Road Initiative serving as a vital platform and successful example of fostering multilateral cooperation and infrastructure development, Qatar's Minister of Finance Ali bin Ahmed Al Kuwari said at the AIIB Annual Meeting in Beijing.
- Foreign investment banks see a lot of opportunities in China with supporting policies such as lower cost funding for ESG, Kenya Yoshiura, president and vice-Chairman at Mizuho China, said at Summer Davos. Many foreign firms, including Japanese ones, are looking for business partners there, he added.
- PCG Global, a platform specializing in the development and management of commercial and industrial photovoltaic (PV) assets, formally entered the New Zealand market through a joint venture with Dreamhome Group, a local property and construction company, marking a new phase of integration for China's renewable energy expertise in global markets.
Editor: LI Yanxia
Host: Stephanie LI
Writer: Stephanie LI
Sound Editor: Stephanie LI
Graphic Designer: ZHENG Wenjing, LIAO Yuanni
Produced by 21st Century Business Herald Dept. of Overseas News.
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