1. Three government departments, including the People's Bank of China, have expanded the scope of loan support for equipment upgrades to cover 14 key sectors, including artificial intelligence. The move aims to enhance financial services for technological innovation and industrial modernization. The new policy will incorporate privately-owned small and medium-sized enterprises with high R&D investment into the relending support framework and extend loan coverage to areas such as electronic information, AI, agricultural facilities, and commercial infrastructure. It also emphasizes improving financial services for companies purchasing AI equipment and software to boost the integration of AI with industries. The relending issuance and management process will be optimized to increase policy efficiency.
2. Yi Huiman, former Vice Chairman of the Economic Committee of the 14th National Committee of the Chinese People's Political Consultative Conference, has been expelled from the Communist Party and dismissed from public office following a disciplinary investigation. The probe found that Yi abused his power to secure benefits for relatives, allowed others to pay his personal expenses, engaged in improper relationships for gain, and leveraged his position to assist others with promotions, IPO approvals, and financing in exchange for illegal financial benefits.
3. Wuliangye reported a significant surge in first-quarter net profit, approaching its full-year 2025 earnings, and announced a share buyback plan of up to 10 billion yuan. In Q1 2026, the company’s revenue reached 22.838 billion yuan, up 33.67% year-on-year, while net profit attributable to shareholders jumped 82.57% to 8.063 billion yuan. The growth was partly attributed to a low base in the same period last year. For the full year 2025, Wuliangye’s revenue fell 54.55% to 40.529 billion yuan, with net profit down 71.89% to 8.954 billion yuan. The company also proposed a cash dividend of 25.78 yuan per 10 shares. The buyback, to be executed via centralized bidding, will range between 8 billion and 10 billion yuan, with a maximum price of 153.59 yuan per share, using the company’s own funds. The repurchased shares will be used for capital reduction.
4. The People's Bank of China and the General Administration of Customs have jointly issued new rules to optimize the management of gold import and export permits. Starting June 1, 2026, the "non-single-use" permit system will be expanded to 15 customs districts, with validity extended to nine months and no usage frequency restrictions. The adjustments are intended to streamline administration and facilitate trade.
5. According to the Ministry of Finance, the total profits of state-owned enterprises fell 5.1% year-on-year in the first three months of the year. Operating revenue for SOEs declined 0.4% to 19.8812 trillion yuan, while taxes payable increased 0.6% to 1.62754 trillion yuan. The debt-to-asset ratio stood at 65.5% at the end of March, up 0.5 percentage points from a year earlier.
6. The People's Bank of China will conduct a 300-billion-yuan outright reverse repo operation on May 6, 2026, to maintain ample liquidity in the banking system. The operation will have a 91-day maturity, ending on August 5, 2026.
7. Rising tensions in Iran have contributed to inflationary pressures, with the U.S. March PCE price index climbing to its highest level in nearly three years. The index rose 0.7% month-on-month, the largest increase since mid-2022, pushing the annualized inflation rate to 3.5%, further above the Federal Reserve’s 2% target.
8. Both the European Central Bank and the Bank of England kept interest rates unchanged, in line with market expectations. The ECB maintained its key rates for the seventh consecutive meeting, while the BOE held its benchmark rate steady for the third time.
Investment opportunities noted by market observers include the real estate sector, among others. 1. Guangzhou and Tianjin have introduced new property market policies. Guangzhou’s measures include higher provident fund loan limits, resale subsidies, and expanded land supply, while Tianjin encouraged the use of existing housing stock for public rental projects. Analysts suggest that such city-specific easing measures may help restore market confidence. Other sectors worth attention include: 2. Pork | Four departments will support local commercial reserves of frozen pork. 3. AI Applications | A campaign has been launched to regulate misuse of AI tools. 4. Aviation Equipment | Airbus has secured several large orders in China.
Positive corporate announcements include SMIC’s plan to acquire a 49% stake in SMIC North, while negative updates involve a regulatory warning issued to Giant Network’s chairman Shi Yuzhu. Positive Announcements: 1. SMIC: Intends to purchase a 49% equity stake in SMIC Northern Integrated Circuit Manufacturing (Beijing) Co., Ltd. 2. Pien Tze Huang: Controlling shareholder completed a share增持 plan, totaling approximately 500 million yuan. 3. Kuihua Pharmaceutical: First-quarter non-GAAP net profit rose 166.22%. 4. Sanxing Electric: Pre-selected for State Grid projects totaling about 349 million yuan.
Negative Announcements: 1. Giant Network: Received a regulatory warning from the Chongqing bureau regarding Chairman Shi Yuzhu. 2. Tiantong Co.: Actual controller and acting-in-concert parties plan to reduce holdings by up to 1.56%. 3. Guangxin Chemicals: Controlling shareholder under investigation for alleged disclosure violations regarding shareholding changes. 4. S Giti: Subject to a CSRC investigation over suspected information disclosure violations. 5. ST Dongshi: Fined 1.8 million yuan for disclosure violations.