Business Brief (Aug. 29): Cambricon Warns of Price Risk Amid Chip Frenzy

The following is a summary of the main business and economic developments over the past 24 hours, reflecting both domestic and international trends, with key upcoming events highlighted. Each summary point is referenced with paragraph indicators as requested.

The A-share semiconductor company Cambricon experienced a significant share price surge, surpassing Kweichow Moutai to become the most valuable firm on the exchange. Subsequently, Cambricon issued a risk warning, noting its stock had detached from fundamentals and cautioning investors against considerable risks due to price overperformance versus industry peers and indexes. [para. 3]

China’s central government introduced a new long-term urbanization and real estate development plan targeting the establishment of modern cities by 2035. The focus is on quality housing, improved communities, and a shift in the real estate development model. [para. 4] Additionally, Beijing announced an action plan to optimize university programs between 2025-2027, emphasizing rapid establishment of academic programs for strategic industries, strengthening basic sciences, and supporting cross-disciplinary fields. [para. 5]

Chinese Vice Minister of Commerce Li Chenggang is set for talks with U.S. counterparts in Washington after a Canadian visit, with both sides expressing a willingness to use bilateral trade mechanisms and resolve issues through dialogue, aiming to stabilize U.S.-China trade relations. [para. 6]

The European Commission proposed eliminating some tariffs on U.S. goods and offering preferential access to certain sectors. In exchange, the U.S. will cut tariffs on EU automobiles and parts from 27.5% to 15% and grant zero or near-zero tariffs on cork, aircraft parts, generic drugs, and chemical precursors effective September 1. [para. 7]

The U.S. Department of Homeland Security announced draft visa rules tightening the permitted stay period for international students, requiring departure within 30 days of graduation. This rule, pending public comment, does not require congressional approval. The Chinese foreign ministry urged the U.S. to honor President Trump’s assurances to Chinese students. [para. 8]

Xiamen, Fujian, became the second Chinese city to enact a personal bankruptcy law, effective November 1, providing "honest but unfortunate" debtors a chance for relief, while incorporating anti-fraud mechanisms and lifelong revocation for fraudulent cases. [para. 9]

On political discipline, China’s leadership advanced measures to strengthen Party ideological discipline and formalize ethnic relations policy, while stressing that development should prioritize public safety, as discussed by the Politburo chaired by President Xi Jinping. [para. 10]

Upcoming key events include the U.S. core PCE price index and the end of tariff exemptions for low-value imports on August 29; Alibaba earnings; China’s August manufacturing PMI and the Shanghai Cooperation Organisation summit between August 31 and September 1. [para. 11][para. 12]

Domestically, Guotai Junan International launched cryptocurrency trading in Hong Kong; almost half of China’s provinces raised minimum wages, Shanghai advanced “safety+AI” initiatives, and Chinese scientists developed a groundbreaking high-speed communication chip. [para. 15]

On the corporate front, Nvidia’s China revenue fell to below 6% of total sales, with expectations for H20 chip sales of $2-5 billion in Q3. Google announced $18 billion in new U.S. investments. JD.com, Alibaba, and Hengli Group topped the 2025 China private enterprise list. Mengniu Dairy increased profits by 13.4%, and Midea Real Estate posted a first-half net profit of 305 million yuan after divesting from real estate development. China Overseas Land & Investment accelerated land purchases, and KE Holdings reported a 24% rise in first-half revenue. [para. 16]

Internationally, Nvidia CEO Jensen Huang appealed to President Trump for U.S. companies’ access to China. U.S. Federal Reserve Governor Waller supported a 25-basis-point rate cut in September. The China-New Zealand central bank swap agreement was renewed. [para. 17]