China's National Bureau of Statistics released data showing that the Consumer Price Index (CPI) rose 0.5% year-on-year in July, while the Producer Price Index (PPI) increased 3.5% from a year earlier, with the pace of growth slowing by 0.6 percentage points from the previous month. The core CPI, which excludes food and energy prices, saw a year-on-year rise of 0.9%.
Major construction projects, including the "Six Networks," are accelerating and providing strong support for expanding investment and stabilizing growth. Experts anticipate that multiple funding sources, including local government special bonds and new policy-based financial instruments, will be deployed more quickly. Efforts are also underway to improve planning, guidance, and the coordination of fiscal and financial policies to boost domestic demand and create a better environment for private investment.
The implementation of the EU's Battery Regulation is approaching, with a digital battery passport system set to be enforced on February 18, 2027. This will create stringent ESG compliance requirements for Chinese lithium battery exporters to the EU. These compliance demands are already being passed up the domestic supply chain, affecting everything from data collection to supply chain due diligence.
As of August 7, 14 companies listed on the Beijing Stock Exchange (BSE) have published their 2026 semi-annual reports, revealing significant sector divergence. The recovery of lithium iron phosphate, driven by new energy vehicles and energy storage, alongside strong demand for AI computing power and advanced packaging, are key growth engines. Conversely, some traditional manufacturing sectors are facing headwinds due to global macroeconomic fluctuations and changes in export dynamics.
The US July non-farm payroll data, released on August 7, fell short of market expectations, strengthening the case for a potential shift in Federal Reserve monetary policy. This has renewed interest in overseas tech assets. As US tech giants report their second-quarter earnings, the market's focus is shifting from AI infrastructure investment to the realization of profits. Chinese capital is increasingly flowing into QDII funds to gain exposure to these overseas tech assets.
The National Financial Regulatory Administration and the Ministry of Finance have agreed on a revised "Measures for the Implementation of Professional Liability Insurance for Accounting Firms," which is expected to be released soon. The new rules will link insurance premiums to accounting firms' disciplinary records, litigation history, and claims experience, creating a more scientific rate adjustment mechanism. A special committee will also be established to improve the efficiency of claims processing.
In response to high premium speculation in Listed Open-Ended Funds (LOFs), the Shanghai and Shenzhen stock exchanges are planning to delist three categories of LOFs. This move signals a significant shake-up in the LOF market. Institutional investors remain bullish on the long-term value of the tech sector, noting that current crowding levels have significantly decreased, and they are focusing on industry trends and earnings performance.
As the deadline for registering fund investment advisory licenses approaches at the end of August, a new wave of applications is reaching a critical stage. A diverse range of institutions, including brokerages, domestic and foreign public fund companies, are preparing their materials. Preparations involve system upgrades, internal rule development, and preparations for on-site inspections, requiring extensive cross-departmental collaboration.
Shanghai police have dismantled a criminal gang that specialized in filing template-based complaints to extort money from licensed investment advisory firms. The gang is alleged to have illegally profited over 3 million yuan. Twenty-one suspects, including the masterminds, have been taken into criminal coercive measures.
Hangzhou has been recognized as one of the first batch of national pilot cities for capital market science and technology finance practices. The city's success in fostering innovative tech companies, from the "Hangzhou Six Little Dragons" to the "Hangzhou New Eight Steeds," is attributed to sustained investment in R&D and a robust financial support system. In 2025, Hangzhou's R&D spending intensity reached 4.0%, and its innovation capability ranks fourth nationally.
Yushu Technology Co., Ltd. is set to list on the A-share market as the "first humanoid robot stock," with its IPO subscription starting on August 10. The company has set its issuance price at 150.80 yuan per share, corresponding to a market value of approximately 60.993 billion yuan. It plans to issue 40.4464 million shares, aiming to raise about 6.099 billion yuan.
China's overall CPI remained moderate in July, with the core CPI rising 0.9% year-on-year. The PPI saw a 3.5% year-on-year increase, a slowdown from June's 4.1% rise. As Chinese companies shift from exporting products to building brands and technology overseas, financial services need to adapt to support their global expansion. This includes financing for long-term overseas factory construction and improving cross-border settlement efficiency.
The People's Bank of China and the Central Bank of Malaysia have renewed their bilateral local currency swap agreement, expanding the size from 180 billion yuan/110 billion Malaysian ringgit to 220 billion yuan/130 billion ringgit. The agreement is valid for five years. After a period of stagnation, international gold prices have rebounded sharply, with the spot price of gold rising 7.28% in the week of August 3 to 8, reaching 4,341.12 US dollars per ounce.