The Central Committee of the Communist Party of China and the State Council have recently revised the “Regulations on Thrift and Opposition to Waste in Party and Government Organs.” The updated regulations aim to improve fund management for official activities, including domestic business trips, temporary overseas trips, official receptions, and vehicle procurement. Notably, the regulations propose that official vehicles should prioritize domestic new energy vehicles during centralized government procurement. This move is expected to boost the domestic new energy vehicle market.
China Drops to Third Largest Creditor of US Treasuries
Data released by the US Treasury Department on May 16 showed that China reduced its holdings of US Treasury bonds for the first time this year. In March 2025, China’s holdings decreased by US$18.9 billion to US$765.4 billion, moving China from the second-largest to the third-largest creditor of the United States. Japan remains the largest creditor, increasing its holdings by US$4.9 billion to US$1.1308 trillion. The United Kingdom became the second-largest creditor, with increased holdings.
Market Performance and Key Events
A-Share Market
Last week witnessed a positive rebound in major indices within the A-Share market. Specifically, the Shanghai Composite Index experienced a 0.76% increase, while the Shenzhen Component Index saw a more pronounced rise of 2.83%. The ChiNext Index also posted gains, rising by 1.38%. Notably, the auto parts and chemical fiber sectors exhibited significant performance improvements, driving much of the market’s upward momentum.
Hong Kong Stock Market
The Hang Seng Index in Hong Kong continued its upward trajectory, registering a 2.09% increase and marking its sixth consecutive week of gains. This positive trend was particularly evident in the entertainment, AI, and robotics sectors, where stocks demonstrated strong performance. These sectors have been key drivers of the market’s sustained growth over the past several weeks.
US Stock Market
The US stock market also experienced broad gains across all three major indices. The Dow Jones Industrial Average rose by 3.41%, the S&P 500 increased by 5.27%, and the Nasdaq saw the most substantial gains, rising by 7.15%. Large-cap tech stocks, including Nvidia, Meta, and Apple, were significant contributors to these increases, reflecting strong investor confidence in the technology sector.
Upcoming Focus Areas
China’s Economic Data Release
This week, market participants will closely monitor the release of China’s economic data, including retail sales and real estate investment figures for April, as well as the May LPR (Loan Prime Rate) quote. These indicators will provide crucial insights into the health of the Chinese economy and its potential impact on global markets.
US and European Economic Indicators
The US and European economies will release their May manufacturing and services PMI (Purchasing Managers’ Index) data. These indicators will offer a snapshot of economic activity and business conditions in these regions, influencing investor sentiment and market trends.
Earnings Season and Corporate Events
The earnings season for US stocks is nearing its end, with notable companies such as Baidu and Ctrip scheduled to release their results. These reports will be closely watched for indications of corporate health and future growth prospects. Additionally, Microsoft and Google are set to hold their developer conferences, which often feature significant announcements and updates that can influence market dynamics. CATL, a leading battery manufacturer, is also scheduled to be listed on the Hong Kong Stock Exchange, adding another layer of interest to the week’s events.
In summary, the past week saw positive market performance across major indices in China, Hong Kong, and the US, driven by gains in key sectors and large-cap tech stocks. This week, investors will turn their attention to crucial economic data releases, corporate earnings, and significant corporate events, all of which will shape market trends and investor sentiment in the coming days.
Trump Criticizes Walmart on Tariffs
US President Trump criticized Walmart for raising prices, stating that the company should not use tariffs as a reason for price hikes. He noted that Walmart made billions of dollars last year and should “bear tariffs” without charging customers additional fees.
Financial and Economic Updates
Guangzhou Mortgage Rates Rise
Several banks in Guangzhou have raised mortgage interest rates by 10 basis points, from LPR-60 basis points to LPR-50 basis points. The mortgage rate for first homes with a term of more than five years has increased from 3.0% to 3.1%.
Nvidia Adjusts Chip Exports to China
Nvidia CEO Jensen Huang announced that due to US government restrictions on H20 chip exports to China, the company will no longer launch Hopper series chips in the future. This decision is part of Nvidia’s re-examination of its China market strategy.
Huawei Launches New Products
Huawei will hold a new product launch event for the nova 14 series and HarmonyOS computers at 14:30 on May 19th.
Gold Prices Drop in Shenzhen
Gold prices at Shuibei Mall in Shenzhen have dropped to 756 yuan per gram, a decline of over 4% from last weekend’s 792 yuan per gram. The drop in prices has led to increased sales of gold jewelry.
China Securities Regulatory Commission Fines Stock Manipulators
The China Securities Regulatory Commission has issued three fines worth hundreds of millions of yuan for market manipulation this year. Notable cases include Yang, who manipulated “Annil” and other stocks, making a profit of 140 million yuan and having 280 million yuan confiscated.
Hong Kong IPO Market Leads Globally
Hong Kong’s new share market has raised over HK$60 billion this year, temporarily ranking first in the world. The Hong Kong Stock Exchange will see a new share listing of a leading mainland new energy company, marking the largest new share fundraising event globally this year.
Regional Economic Highlights
Shenzhen District Economic Performance
In the first quarter, Nanshan District’s GDP exceeded 251.825 billion yuan, accounting for over a quarter of Shenzhen’s total GDP. Seven districts outperformed the city’s average growth rate of 5.2%, with the Shenzhen-Huizhou Special Cooperation Zone leading with a 40% growth rate.
Technological and Industrial Developments
Brain-Computer Interface Ward Established
Beijing Tiantan Hospital has established China’s first clinical and translational ward for brain-computer interfaces, jointly built with several domestic research institutions. This ward will conduct research and clinical trials to provide innovative treatments for patients with neurological diseases.
Rare Metal Bismuth Prices Surge
The price of bismuth, a rare metal used in solder and other materials, has risen sevenfold in the past three months. China, the largest producer, has initiated export controls in response to US tariffs, tightening the supply and demand for bismuth.
Industry Reports
China’s Satellite Navigation Industry Grows
The “2025 White Paper on the Development of China’s Satellite Navigation and Location Service Industry” shows that the industry’s overall output value reached 575.8 billion yuan in 2024, with a year-on-year growth of 7.39%. China’s cumulative satellite navigation patent applications exceeded 129,000 by the end of 2024, maintaining a global leading position.
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