- Aug 04, 2025 13:27 PM
- Cover: Stablecoins Face Reality Check as Tech Gaps Mount
- From June to July 2025, stablecoin discussions surged then cooled across the Pacific, as the U.S., Hong Kong, and others advanced stablecoin regulation; the U.S. passed the Stablecoin National Innovation Act on July 18.
- Hong Kong delayed the first stablecoin licenses to early 2026, increased anti-money laundering requirements, and saw over 60 organizations interested, with banks and brokers favored over tech firms.
- Stablecoins’ technical risks, financial crime incidents, and regulatory challenges prompted caution; core use cases remain crypto trading and cross-border payments, but widespread adoption faces significant hurdles.
This article is selected from the Aug 06 issue of Caixin Weekly
- Aug 02, 2025 14:32 PM
- China Gets Serious About Taxing Overseas Income
- Chinese tax authorities are increasing enforcement on overseas income, especially for individuals trading US and Hong Kong stocks, requiring self-reporting and annual tax payment at a 20% rate on gains and dividends.
- Overseas stock trading losses cannot currently be carried forward to offset future profits, unlike systems in the US where losses may be offset across years with set limits.
- Tax residency in China is determined by domicile or presence over 183 days; Chinese tax residents must report global income, though double taxation credits and limited exemptions exist.
This article is selected from the Aug 04 issue of Caixin Weekly
- Aug 02, 2025 14:13 PM
- Will Smart Glasses Lead a New Surge in AI Hardware?
- Major Chinese tech firms like Alibaba and Xiaomi launched AI glasses in 2024–2025, with global AI glasses shipments projected to reach 8.83 million in 2025—a 225.6% year-on-year increase (IDC).
- AI glasses, with lighter form factors and voice/vision interactivity, are poised to replace VR/AR as the next key AI hardware entry point; established and startup players alike are competing.
- China’s mature supply chain drives innovation, but large-scale manufacturing is challenging; Chinese startups are expanding rapidly into overseas markets.
This article is selected from the Aug 04 issue of Caixin Weekly
- Aug 02, 2025 13:52 PM
- How a Tycoon Looted the Now-Delisted Jinzhou Port
- Jinzhou Port (600190.SH) was forcibly delisted on July 25, 2025, after a large-scale financial fraud involving over 86 billion yuan in inflated revenue and 1.8 billion yuan in profits (2018–2021), and 1.2 billion yuan (2022–2024 Q1).
- Key figure Liu Hui used fake trades and related companies to siphon funds, causing up to 100 billion yuan in debt, with his exit triggering investor losses and ongoing lawsuits.
- New state-backed management seeks to stabilize operations and restructure debts, but the port faces severe liquidity issues, over 59.8 billion yuan in short-term liabilities, and uncertain prospects.
This article is selected from the Aug 04 issue of Caixin Weekly
- Aug 02, 2025 13:32 PM
- In-Depth: Can Childcare Subsidies Boost Birth Rates?
- China will launch a national childcare subsidy from January 2025, providing 3,600 yuan per child per year for families with children aged 0–3; estimated annual budget is about 90 billion yuan, targeting over 20 million families.
- The subsidy is universal for first, second, and third children, aiming to ease the parenting burden and encourage births amid declining fertility and rapid aging; central government covers up to 95% of the cost.
- Scholars note the subsidy offers significant help for low-income families but is limited for urban middle-class, stressing the need for broader support—such as public services and social insurance—to address overall fertility challenges.
This article is selected from the Aug 04 issue of Caixin Weekly
- Aug 02, 2025 13:22 PM
- Chen Changhua: What’s Behind the Wide Divergence in Industry Prosperity?
- China’s economy stabilized and slightly rebounded in early 2025 after 2024 stimulus, but faces weak foundations, deflation pressure, and youth unemployment.
- Export growth shifted from developed countries to emerging markets, with electric vehicles, batteries (up 22.6% YoY), and semiconductors (up 18% YoY) driving gains.
- Fixed-asset investment in real estate dropped 11.2% YoY, while retail sales growth accelerated to 5% YoY, mainly due to government trade-in subsidies.
This article is selected from the Aug 04 issue of Caixin Weekly
- Aug 02, 2025 13:12 PM
- Further Interest Rate Cuts for Life Insurance Products Signals Shift for Insurers
- In July 2025, China lowered the maximum guaranteed interest rates for new life insurance products: traditional from 2.5% to 2.0%, participating (dividend) to 1.75%, and universal to 1.0%.
- Participating insurance saw only a 25 basis points cut, boosting its market competitiveness, and sales share is rising sharply across major insurers.
- Regulators encourage insurers to invest more in equities: in Q1 2025, insurance funds’ stock allocation grew to 8.37%, with net equity purchases hitting recent highs.
This article is selected from the Aug 04 issue of Caixin Weekly
- Aug 02, 2025 13:03 PM
- As Stocks Rebound, Different Capital Is Flowing Into Different Sectors
- Shanghai Composite surged from 3500 to above 3600 within July 2025, backed by strong policy support and daily trading volume rising from RMB 1.5 to 1.8 trillion.
- The rally was mostly driven by capital inflows, margin leverage, and ETF investments, despite listed company earnings growth lagging; dividend payout rates and retail investor participation increased.
- Banking stocks outperformed as institutional and insurance funds favored high dividends and stability, while traditional high-dividend sectors underperformed; future risk remains if macro expectations shift.
This article is selected from the Aug 04 issue of Caixin Weekly
Jul 29, 2025 12:48 PM- Crisis Facing Shigeru Ishiba Reflects New Challenges in Japanese Politics
- This article is selected from the Jul 31 issue of Caixin Weekly
- Jul 29, 2025 12:47 PM
- Succession, Scandal and Bottled Water — the Real Battle at the Heart of Wahaha Court Case
- In 2024-2025, Wahaha, China’s leading beverage company, faced a high-profile inheritance dispute after founder Zong Qinghou’s death, with three alleged children from another relationship suing Zong Fuli and seeking to freeze $1.8 billion in offshore trust assets.
- Zong Fuli, designated successor, consolidated control by inheriting a 29.4% stake, replacing board members, transferring employees and core business to her controlled Hongsheng Group, triggering employee lawsuits and concerns over shifted profits and dividend cuts.
- Offshore trust and asset distribution disputes exposed Zong family’s complex business, legacy, and cross-border wealth management, raising market and media scrutiny on company governance, employee rights, and state-owned stakes.
This article is selected from the Jul 31 issue of Caixin Weekly
- Jul 26, 2025 14:52 PM
- Gao Zhanjun: The Costs of Trade Fragmentation
- IMF and World Bank both note global trade remains resilient but faces increasing downward risks from tariffs and geopolitical uncertainty; World Bank projects global trade growth will slow from 3.4% (2024) to 1.8% (2025).
- Supply chain restructuring and trade fragmentation threaten efficiency, scale, and knowledge sharing, possibly reducing global GDP by 0.2–7% depending on scenario.
- China’s share of US imports fell from 2017 to 2025, with Mexico and Vietnam gaining; maintaining global supply chain stability is crucial amid ongoing challenges.
This article is selected from the Jul 28 issue of Caixin Weekly
- Jul 26, 2025 14:12 PM
- How a Power Surplus at the Height of Summer Shows How China’s Electricity Market Has Changed
- In 2025, China’s electricity prices dropped sharply nationwide, with Guangdong spot prices falling below RMB 0.3/kWh (down to 0.2377), and annual contract prices dropping nearly 30% in two years.
- The decline is driven by excessive supply growth (notably renewables: Guangdong’s PV capacity up 70.5% year-on-year), modest demand growth, coal price drops, and expanding electricity market reforms.
- Power generators face squeezed profits and paused new investments, while lower electricity costs benefit enterprises but raise long-term system operation cost uncertainties.
This article is selected from the Jul 28 issue of Caixin Weekly
- Jul 26, 2025 14:03 PM
- Inclusive Finance’s Success Breeds Host of Hidden Risks
- Inclusive small and micro loans in China reached RMB 35.57 trillion by Q2 2025, over 5 times 2017’s total, with 12.3% YoY growth and a 13% share of all loans.
- Growth is driven by regulatory incentives, market expansion, and innovations like supply chain finance, but challenges include rising non-performing loan rates and illegal loan intermediaries.
- Major state banks dominate, with the top six holding trillion-yuan balances; risk concerns and regulatory tightening intensify as low-interest loans spur arbitrage.
This article is selected from the Jul 28 issue of Caixin Weekly
- Jul 26, 2025 13:42 PM
- In-Depth: The Peril of Excess Solar Power Capacity
- Since late June 2025, China’s polysilicon futures surged 80% in a month amid policy-driven expectations to curb “involution” (malignant price wars) and reduce overcapacity; major photovoltaic (PV) stocks rose over 50%.
- China’s PV production capacity now exceeds global demand by nearly twofold; 2024 saw sector-wide losses, with polysilicon, wafer, and module prices falling 29–50% below cost.
- Proposed industry-wide restructuring aims to consolidate excess capacity through joint platforms and debt restructuring, but complex negotiations and persistent oversupply challenge recovery.
This article is selected from the Jul 28 issue of Caixin Weekly
- Jul 26, 2025 13:22 PM
- U.S., China Ease Rare Earth and Chip Export Controls Amid Pursuit of Self-Sufficiency
- In mid-2025, China and the U.S. eased tech and rare earth export controls, with China resuming rare earth exports and the U.S. allowing Nvidia H20 AI chip sales to China.
- Despite restrictions, China's domestic AI chip (e.g., Huawei, Cambricon) and EDA software industries accelerated, while the U.S. advanced rare earth independence plans via MP Materials.
- China's June rare earth exports to the U.S. surged 660% month-on-month, while Nvidia's H20 remains attractive but is a weakened, previous-generation product.
This article is selected from the Jul 28 issue of Caixin Weekly
- Jul 26, 2025 13:03 PM
- How to Solve Middle-Aged Unemployment
- Middle-aged jobseekers (35+) in China face rising unemployment and significant re-employment barriers—nearly 70% laid off from some foreign enterprises, with age discrimination common in recruitment, despite 30–59-year-olds comprising 46% of the workforce.
- Technological change and industrial upgrading render older workers’ skills obsolete, while flexible employment rises: over 200 million flexible workers in 2023, but with weaker social security.
- Policy reforms to address age discrimination and improve social security coverage for flexible and unemployed workers are in progress, but gaps in legal protections and implementation remain.
This article is selected from the Jul 28 issue of Caixin Weekly
- Jul 19, 2025 14:32 PM
- New Form of Bribery Changes Judicial System
- Zhang Tong, former Executive Vice Mayor of Xuzhou, was convicted in 2025 for accepting or agreeing to accept bribes worth RMB 49.4 million (including RMB 41.6 million in unreceived gains), and sentenced to 14 years in prison.
- His conviction centered on "agreed bribery," where officials agree to accept benefits that haven't yet materialized, a concept not clearly defined in Chinese law, fueling legal controversy.
- The case sparked debate in legal circles over the threshold for criminal liability in agreed bribery cases, highlighting challenges in prosecuting new, covert forms of corruption.
This article is selected from the Jul 21 issue of Caixin Weekly
- Jul 19, 2025 14:22 PM
- Shi Lei: What Does “Anti-Involution” Really Mean?
- In Q2 2025, China’s GDP grew 5.2% year-on-year, outperforming expectations, but the GDP deflator dropped 1.26%, marking nine consecutive quarters of falling prices.
- Overcapacity and intensified "ineffective" competition (“involution”) persist, affecting both traditional and emerging sectors like new energy vehicles and e-commerce; policy now targets unregulated, low-price competition.
- China’s global influence increasingly hinges on its position in complex economic networks, with metrics like connectivity (“degree centrality”) and intermediary roles critical for value creation.
This article is selected from the Jul 21 issue of Caixin Weekly
- Jul 19, 2025 14:03 PM
- China’s Scandal-Hit Credit Ratings Industry Seeks a New Beginning
- Leading Chinese rating agencies are exploring a two-tier model offering simplified, free reports and detailed, paid reports to shift some focus from issuer-paid to investor-paid revenue, aiming to improve rating independence and reduce inflated ratings.
- As of Q1 2025, over 90% of Chinese bond issuers were rated AA or above, compared to international standards with greater rating differentiation.
- Structural challenges—including issuer dependence and limited investor payment habits—pose obstacles to scaling investor-paid ratings, though non-rating services are becoming a growing revenue source.
This article is selected from the Jul 21 issue of Caixin Weekly
- Jul 19, 2025 13:42 PM
- There’s New Model for Innovation in the Service Sector, but Can It Be Replicated?
- The Jiangsu Provincial City Football League (“苏超”), launched in 2025, broke China’s amateur football attendance record with 60,396 spectators on July 5 and over 3 billion yuan in projected economic impact.
- “苏超” boosted local tourism and consumption: hotel, ticket, and restaurant bookings in host cities surged, with many tourism and dining sectors seeing over 100% year-on-year growth during match weekends.
- The league attracted national sponsors and inspired similar events in other provinces, but experts caution its success may not be easily replicated elsewhere due to differing local conditions.
This article is selected from the Jul 21 issue of Caixin Weekly
- Jun 16, 2025 02:54 PM
- Jun 16, 2025 02:53 PM
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