Hi everyone. I’m Stephanie LI.

Coming up on today’s program

Global investors accelerate Chinese asset purchases with major ETF inflows surging in July;

China vows to pledge more economic support at top meeting.

Here’s what you need to know about China in the past 24 hours

Global investors are demonstrating remarkable confidence in Chinese assets, with five major overseas China equity exchange-traded funds (ETFs) collectively attracting USD2.7 billion in net inflows in July, according to market data tracker FUTU.

From end-June to July 25, the iShares MSCI China ETF's assets under management expanded 12.38 percent to USD7.187 billion, while the KraneShares CSI China Internet ETF saw a 20 percent jump to USD7.648 billion. The scale of Direxion Daily FTSE China Bull 3X Shares grew 14.13 percent to USD1.253 billion. Assets under management at Xtrackers Harvest CSI 300 China A-Shares ETF and iShares China Large-Cap ETF grew 10.54 percent and 5.32 percent, according to FUTU.

This surge came amid heightened interest from South Korean retail investors, which executed USD5.764 billion in Chinese stock trades through July 25 year-to-date, making China their second-largest overseas investment destination, according to SEIbro, a market data provider under the Korea Securities Depository.

South Korean investors have shown particular enthusiasm for Chinese tech giants, with Xiaomi, BYD, and Alibaba topping their Hong Kong buy lists. In the A-share market on the Chinese mainland, BYD, Hengli Hydraulics, and Huatai Securities were the most popular picks.

This also mirrors a growth trend among institutional investors, as evidenced by the Hang Seng Index's 27 percent year-to-date rally through July 29.

Foreign institutions have been particularly active in Hong Kong's market, with the cumulative shareholding ratio of stable foreign capital and flexible foreign capital reached 60.4 percent as of the second quarter.

In a recent research note, Goldman Sachs pointed out that Chinese equities have recently broken out of their trading ranges, with the MSCI China reaching a near four-year peak and the CSI300 a year-to-date high. The drivers of these gains include robust second-quarter GDP growth, the revival of Hong Kong's IPO market, record-breaking Southbound inflows, and a wide gap between rising foreign investor interest in Chinese stocks and their still-conservative equity allocations, the investment bank said.

China's Politburo held a top meeting on Wednesday, pledging to "step up" economic support in the second half of 2025 amid internal and external challenges. The meeting said it is imperative to make good use of various structural monetary policy tools to intensify support for scientific and technological innovation, boost consumption, support small and micro enterprises, and stabilize foreign trade, while underlining a crucial role the country's provincial economic powerhouses have to play in driving growth, Xinhua reported.

China's manufacturing PMI dipped to 49.3 from 49.7 in July from the prior month, according to the NBS. The non-manufacturing PMI dropped to 50.1 from 50.5.

GBA express

As China’s fifth‑largest urban economy and a major trading hub, Guangzhou gained momentum in the second quarter, propelling the city’s first-half growth to 3.8 percent on the back of policy‑driven consumption, fast‑growing emerging industries, and a stabilizing property market. Guangzhou’s GDP was CNY1.5 trillion in the first six months, after growth accelerated from a 3 percent clip in the first quarter, according to data released yesterday by the local statistics bureau.

The proxy witness bank account opening service for residents of Hong Kong and Macao, aiming to ease payments in the Chinese mainland, officially expanded to all nine mainland cities in the Greater Bay Area yesterday. Through a collaborative mechanism involving "proxy witnesses" by local banks in Hong Kong and Macau and "remote account opening" by mainland lenders, it enables residents of the two SARs to obtain mainland bank accounts "at their doorstep."

The largest hydrogen refueling station in South China has been completed and put into operation in Guangzhou’s Baiyun district yesterday. It has a maximum daily refueling capacity of 4,000 kilograms, equivalent to the total of four typical medium-sized hydrogen refueling stations.

Industry and company news

Chinese state-owned power producer State Grid came in at 3rd place in the latest Fortune Global 500 List that ranks the world’s biggest companies by revenue, topping all other Chinese companies for the second consecutive year. US retailer giant Walmart headed the ranking for the 12th straight year, followed by Amazon. Also in the top 10, energy giants Saudi Arabian Oil Company, Sinopec, and China National Petroleum ranked fourth to sixth, respectively. The number of Chinese companies on the Fortune Global 500 list fell to 130 this year from 133 last year, with total revenue of USD10.7 trillion. JD.Com and Alibaba Group Holding were 44th and 63rd, respectively, China Mobile at 58th, and Huawei Technologies at 83rd. BYD jumped 52 positions to 91st, becoming the only Chinese automaker making it into top 100.

China's top industry regulator reaffirmed its support for foreign firms during talks with the US-China Business Council in Beijing on Tuesday. Li Lecheng, Minister of the Industry and Information Technology (MIIT) met with senior executives from major US companies, including Apple, Thermo Fisher and Otis, to stress the government's commitment to maintaining an open, fair and transparent business environment, and to welcome further investment in China's industrial transformation.

Chinese coffee chain operator Luckin Coffee said its net profit widened 44 percent to CNY1.3 billion in the second quarter of the year, mainly thanks to robust revenue, an increase in the store count, and a rise in monthly transacting customers. Revenue surged 47 percent to CNY12.4 billion in the period, the company announced yesterday. Luckin Coffee had 26,206 stores at the end of the second quarter, up 8.8 percent from last quarter.

CATL's net profit jumped 33 percent to CNY30.5 billion in the first half from a year ago, while revenue rose 7 percent to CNY178.9 billion, the Chinese battery giant said in an earnings report yesterday.

JD.Com has further increased its investments in the robotics sector by leading the latest financing round of RoboScience, the fourth such fundraiser the internet giant has led this month. RoboScience bagged nearly CNY200 million in an angel financing round, it announced today.

China’s cyberspace regulator today summoned Nvidia over security risks linked to backdoor vulnerabilities in its H20 chips sold in China, requiring the US chipmaker to provide an explanation and submit supporting documents.

China will earmark CNY90 billion dedicated for its new childcare subsidy program for this year, Guo Yang, director of the finance ministry's social security department, said yesterday. Local governments will begin accepting applications for the grants by Aug. 31.

Asia-Pacific highlights

US President Donald Trump announced a new trade deal with South Korea on Wednesday, stating that the US will impose a 15 percent tariff on goods imported from the country — 10 percent lower than what was initially proposed — under a trade deal that would charge America no tariffs.

Air China yesterday launched a direct route between Beijing and Almaty, Kazakhstan, the Chinese carrier said. The new round-trip service runs every Monday, Wednesday, Friday, and Sunday using Boeing 737 aircraft.

Malaysia's digital economy is poised for growth, fueled by strong interest from Chinese investors following a recent successful high-level mission, the Digital Ministry of Malaysia said on Wednesday. The delegation undertook the mission in conjunction with the WAIC 2025 held in Shanghai and reaffirmed Malaysia's growing role as a regional leader in digital transformation and innovation, the ministry said. Malaysia has secured digital investments from leading Chinese technology players, which will create over 6,800 high-value digital jobs across the country.

Multiple China equity ETFs receive significant capital inflows in July