Daily Buzz: 3 June 2025
Top News
Chinese and US presidents to talk?
The White House said President Donald Trump is seeking to speak to Chinese President Xi Jinping this week amid an escalating war of words. China, which didn't confirm any scheduled communication, on Monday rejected Trump administration claims that it had violated terms of the 90-day trade truce reached earlier this month in Geneva. Instead, China accused the US of breaching the accord, which included a mutual rollback of some tariffs. Since then, the US has tightened restrictions on exports of chip-design software and jet engines to China, and started "aggressively" revoking visas for Chinese students. Washington, in turn, has said China hasn't relinquished controls over its exports of rare earth minerals vital for industrial production. Global auto executives warned last week that a shortage of rare-earth magnets from China could force the closure of some factories within weeks.
Most Asian and European markets fell on Monday but losses were much less severe than at other critical junctures in US-China trade tensions. US markets closed modestly higher.
Russia, Ukraine fail to reach agreement on ceasefire
In talks that lasted barely an hour and were overshadowed by an audacious overnight Ukrainian attack on Russian bombers deep in the country, delegations from Moscow and Kiev met in Istanbul for a second time to discuss peace. Both sides did agree to exchange more prisoners but there was no breakthrough on a ceasefire proposal backed by the US and Europe that Russian has refused to accept. Russia said it would agree to end the war only if Ukraine cedes large tracts of its territory and limits the size of its army. Ukraine in the past has rejected similar proposals.
The talks came a day after Ukraine struck bomber planes with drone attacks on four airfields in remote parts of the country in a precision assault that took more than a year to plan.
South Koreans go to the polls
South Korean voters go to the polls today in a snap presidential election pitting left-wing opposition leader Lee Jae-myung, who is favored to win, against conservative Kim Moon-soo. The poll was called after former president Yoon Suk Yeol was impeached over his failed martial law declaration last December, which resulted in months of political protests and chaos. The country's new leader faces economic problems arising from the Trump administration tariffs. Among the setbacks for the major car-exporting nation is the 25 percent tariff the US has imposed on vehicle imports.
Conservative wins in Poland
Right-wing historian Karol Nawrocki, a Trump-style populist was elected Poland's new president in a runoff election, with 50.9 percent of the vote. He defeated Warsaw's liberal mayor Rafal Trzaskowski. Nawrocki's win in a politically divided country could present roadblocks to Prime Minister Donald Tusk's pro-EU agenda.
Top Business
Holidays a boon for tourism spending
Two holidays in China that don't normally fall at the same time, the Dragon Boat Festival and Children's Day, converged this weekend to create what is predicted to be a boon for tourist-related consumer spending, the South China Morning Post reported. Online travel group Trip.com said bookings at popular tourist destinations over the three-day weekend period were up almost a quarter from a year earlier.
Box office revenue for the three-day Dragon Boat Festival exceeded 400 million yuan (US$56 million), higher than a year earlier, according to movie-data platform Maoyan. The new Hollywood blockbuster "Mission: Impossible – the Final Reckoning," starring Tom Cruise, topped the domestic box office.
Hedge funds upbeat on China robo-taxis
Chinese robo-taxi companies were among the top hedge-fund picks to emerge at the annual Sohn investment conference in Hong Kong, Reuters reported. Baidu, a Chinese search-engine firm venturing into self-driving technology, drew praise from US-based Flight Deck Capital, with managing partner Jay Kahn telling the conference that Baidu's Apollo Go will likely take 15 percent of a taxi and ride-hailing market that he predicts will grow to US$237 billion by 2034. Hong Kong's Apeiron Capital pitched Chinese ride-hailing company DiDi Global, while Triata Capital said it is upbeat on Chinese discount e-commerce player PDD, owner of the Temu platform.
BYD retains electric car crown
Chinese carmaker BYD remained king of the electric-vehicle market with total May sales of 382,476, including an overseas sales record of 89,047. For the first 25 days of May, total electric-car sales in China jumped 16 percent from a year earlier to 1.36 million, the China Passenger Car Association said.
May auto sales and delivery figures come amid an industry price war fanned by BYD's price cuts on 20 models.
Among other domestic electric carmakers, Li Auto had 40,856 deliveries in May, up 17 percent from a year earlier; Leapmotor was at 45,067, up 148 percent; Nio, 23,231, up 13 percent; Xpeng, 33,525, up 230 percent; and Xiaomi was static at 28,000. Zeekr deliveries totaled 46,538, up 1.6 percent.
Economy & Markets
Factory activity worldwide contracts
Global trade tensions are taking their toll on manufacturing activity across the world as US tariffs disrupt supply chains and businesses become wary about investment.
In Asia, Japanese manufacturing activity in May contracted for an 11th consecutive month, with the Jibun Manufacturing Purchasing Managers' Index at 49.4. The 50 mark is the threshold between expansion and contraction. A similar survey in South Korean showed factory activity at 47.7, its fourth month below 50. China's official May index, announced over the weekend, notched up a half-point to 49.5. Reuters reported that similar data showed contraction in Vietnam, Indonesia and Taiwan region.
In the US, where manufacturing comprises 10 percent of the economy, the ISM index of activity dropped to a six-month low of 48.5. And in the EU, activity in May stood at 49.4.
Hong Kong sticks with growth forecast
Hong Kong Financial Secretary Paul Chan Mo-po said the government will maintain its growth target of 2-3 percent for the year despite a stronger-than-expected 3.1 percent increase in first quarter gross domestic product that he described as an "exception" rather than the norm, the South China Morning Post reported. Speaking at a legislative committee, he said a recent rise in tourism may offset dull consumer spending.
Corporate
New World defers interest payments
Debt-ridden Hong Kong giant property company New World Development delayed interest payments on some of its bonds, Bloomberg reported, citing deferment of US$77.2 million on four perpetual notes. The company, which has a total of US$27 billion in liabilities, is trying to complete a loan-refinancing package with creditors by the end of June, with about 60 percent of the banks committed to the deal so far. The company's shares slid 6.5 percent in Hong Kong trading on Monday.
DJI to build a new global headquarters
Chinese drone maker DJI has acquired a site in the southern city of Shenzhen for about 2.3 billion yuan (US$320 million) to build a new global headquarters for its intelligent-aviation division. Chinese media 36Kr also reported that DJI plans to launch its first consumer-grade, 360-degree camera called DJI Osmo 360 in July.
Merck confirms new China head
US-based pharmaceutical giant Merck Sharp & Dohme appointed Kyle Tattle as head of China operations, replacing Anna Van Acker. Tattle is currently head of the company's Japan branch. The change in leadership comes as China earnings, with account for almost 10 percent of global revenue, dropped sharply in the first quarter.
Citi taps veteran banker for China operations
US investment bank Citigroup named veteran banker Wenjie Zhang as its new banking chief for China. He replaces Luke Lu, who left late last year, citing personal reasons. Zhang, who will be based in Shanghai, has 30 years' experience, including stints at Bank of America China, HSBC, JPMorgan and Credit Agricole. He started his career with Sinochem Group.
Akeso drug data inconclusive
Chinese biotech firm Akeso, whose cancer drug has been hailed as a breakthrough, suffered a setback after less-than-favorable clinical data dashed hopes for quick US regulatory approval, the South China Morning Post reported. Its US partner, Summit Therapeutics said the US Food and Drug Administration indicated that a "statistically significant" benefit on overall survival rates is required to support marketing approval for the ivonescimab antibody, which targets certain lung cancers. Akeso's shares fell 10.5 per cent in Hong Kong on Monday.
