Business News
Latest business news and updates
Total: 2083
How a Star Manager and Strategic Drift Turned a Promising China Fund into a Cautionary Tale
A Huaxia Fund product launched in late 2020 with a tech-and-consumption strategy has underperformed severely, suffering near-50% cumulative losses and a nearly 70% drawdown amid manager turnover and strategy drift. Successive managers failed to restore performance in time to capture the 2024–25 AI-led market recovery, exposing governance and succession weaknesses within the asset manager. The episode highlights systemic risks in China’s mutual fund industry: overreliance on star managers, misalignment between rhetoric and trading, and the reputational danger of poor product governance.
Cambricon Shares Plunge as Alibaba Unit’s New AI Chip Stokes Market Fears
Cambricon shares plunged nearly 10% as Alibaba’s chip unit unveiled a new high‑end AI chip and reports suggested its Zhenwu PPU shipped at scale in 2025. The drop came despite Cambricon forecasting a strong full‑year turnaround and a fivefold revenue increase, underlining investor concerns about intensifying domestic competition in AI semiconductors.
Broad A‑share Rally Sees Space and PV Stocks Soar as Precious Metals Tumble
China’s A‑shares rallied at mid‑day as speculative themes — notably commercial space, photovoltaic and AI application stocks — led a broad advance that saw over 4,400 stocks rise. Turnover was about RMB1.6 trillion, while precious metals and non‑ferrous miners fell sharply, highlighting a rotation in domestic investor flows.
Nasdaq Opens Lower as Crypto Names Slide; Oracle Jumps on Dollar‑Bond Plan, Disney Plummets After Q1
US markets opened slightly lower as the Nasdaq underperformed and crypto‑related stocks tumbled. Oracle rose after unveiling a dollar bond issuance plan, while Disney plunged despite modest revenue growth, highlighting selective investor caution across the market.
Chairman of ‘Metaverse’ Concept Stock Placed Under Supervisory Retention, Raising Governance and Investor Risks
Fushi Holdings said its chairman and majority controller, Chen Yongliang, was placed under retention by a national supervisory commission on February 1, without the company being asked to assist the probe. The development heightens investor and governance risks for the loss-making firm and highlights broader regulatory scrutiny of speculative “metaverse” concept stocks in China.
Silver’s 36% Flash Crash and a Nation on the Move: Markets Rattle as China Begins Spring Festival Travel
A dramatic intraday collapse in silver—down as much as 36%—and steep falls in gold rattled markets as China launched its Spring Festival travel season. The Shanghai Gold Exchange moved to tighten margin and price‑limit rules, while authorities and firms rolled out transport, social and marketing measures to stabilise movement and capture consumers during the holiday.
Precious‑metals Rout and Telecom Tax Hike Drag Hong Kong Stocks; Hang Seng Tech Falls 3.4%
Hong Kong markets slipped as a sharp drop in gold and silver hammered miners and a VAT increase on telecom value‑added services pressured the three major operators. The Hang Seng fell 2.23% and the tech‑heavy Hang Seng TECH lost 3.36%, with notable declines across chips, autos and precious‑metals stocks.
China’s A‑Shares Slide: Broad-Based Selloff Sees Hundreds of Stocks Hit Limits as Tech, Metals Lead Declines
China’s equity markets tumbled on February 2, with major indices down over 2% and hundreds of stocks hitting limit‑down as trading volume contracted. Defensive pockets such as white spirits and power‑grid equipment held up, while metals, energy and semiconductor names led the declines, raising questions about investor confidence and near‑term policy reaction before Lunar New Year.
China’s EV Financing War Ripples Through Used‑Car Market, Pummelling Resale Values and Dealers’ Margins
Tesla’s January 2026 push of 5‑year 0% and 7‑year low‑interest purchase plans has spurred competitors to extend similar financing, making new EV purchases cheaper per month and prompting buyers to favour new cars. That shift has weakened demand for secondhand electric cars, forced dealers to cut prices or offer short-term interest‑free loans, and highlighted structural risks to EV residual values driven by rapid technological obsolescence and battery concerns.
Gulf States Poised to Ride a New Wave of AI and Tech Investment
At SEF2026 in Sharjah, venture capitalists signalled that Gulf countries — buoyed by low energy costs, proactive regulation and growing AI education — are entering a new phase of technology investment. Saudi Arabia led the region in deal value in 2025 and has launched funds targeting early-stage biotech, reflecting its Vision 2030 diversification agenda.
NIO’s Le Dao Brand Makes Overseas Debut in Uzbekistan as the EV Push Turns Global
NIO opened its first national-authorised showroom in Uzbekistan on 31 January, introducing models from its premium NIO line and launching Le Dao’s L90 and L60 — the sub‑brand’s first overseas models. The company also announced a tie-up in Costa Rica, signalling simultaneous expansion into Central Asia and Latin America as Chinese EV makers chase growth beyond a crowded domestic market.
Maotai’s Pre‑New Year Rollercoaster: Prices Spike Then Slide, Leaving Traders Exposed
Maotai prices swung sharply around the Lunar New Year, with single‑bottle quotes briefly rising to about ¥1,830 before retreating to ¥1,740–¥1,780. Wholesale boxed vintages saw modest declines while single‑bottle retail prices remained comparatively stable, underscoring festival demand and speculative trading pressures that strain small merchants.