Business News
Latest business news and updates
Total: 433
Retail Traders Double Down as Gold Crashes; Chinese Banks Raise Bar to Curb Risk
A sharp fall in global gold prices at the end of January and early February prompted Chinese retail investors to average down aggressively while major banks raised minimums and issued warnings to curb risk. The episode reflects growing retail participation in precious‑metals markets and a tension between long‑term structural demand drivers for gold and short‑term monetary policy signals that can reverse price gains rapidly.
China's Markets Steady as Tech and Aerospace Advance, Gold Surges and Platforms Trim Creator Tools
Chinese equities advanced broadly on February 3, buoyed by gains in space, photovoltaic and chip-related sectors while international spot gold spiked nearly 6%, lifting mining stocks. Key industrial developments included the first flight of a hybrid-propulsion unmanned transport aircraft and a private reusable rocket planned for mid-2026, amid renewed travel flows and provincial housing-stability measures.
Chengdu–Chongqing Reunited: China’s Western Twin-Cities Top 10 Trillion Yuan and Redraw Regional Balance
Sichuan and Chongqing together have surpassed 10 trillion yuan in GDP, underscoring the re-emergence of the Chengdu–Chongqing twin-city economic corridor as China’s largest western growth pole. The milestone reflects not just fiscal transfers and infrastructure spending but the maturation of industrial clusters in electronics, advanced manufacturing and new energy.
Yuan Breaks 6.94 Against Dollar as Dollar Softens — A Test of China’s Managed Float
The onshore renminbi strengthened intraday past 6.94 to a 32-month high as the US dollar softened. Market strategists see room for further dollar weakness this year if US jobs data disappoint and rate-cut expectations move forward, a dynamic that will shape China’s exchange-rate, trade, and monetary policy considerations.
Gold and Silver Bounce After Historic Flash Crash — Volatility, Deleveraging and a Strong Dollar Still Loom
Gold and silver rebounded in early February after unprecedented intraday plunges at the end of January and renewed selling on Feb. 2. The shocks were driven by a rapid deleveraging of positions and a renewed expectation of a stronger US dollar following Kevin Warsh’s nomination for Fed chair, while Chinese state banks raised margins and issued risk warnings to curb retail exposure.
A‑Shares Rally as Solar Supply Chain and AI Hardware Drive Broad Market Advance
A‑shares rallied on February 3 as photovoltaic supply‑chain stocks and AI/compute hardware names led gains, while overall market turnover contracted slightly. The advance was broad—nearly 4,900 stocks rose—but lower volume suggests the move may be more sentiment‑driven than conviction‑led.
Shenzhen on the Cusp of a 4-Trillion Yuan Club — Can Its Model Rescue Guangdong’s Slower Growth?
Shenzhen posted 2025 GDP of 3.873 trillion yuan, growing 5.5% and nearing the 4-trillion threshold, powered by advanced manufacturing, exports and world-leading R&D intensity. Guangdong province, by contrast, grew 3.9%, weighed down by sluggish industrial recovery and a sharp fall in fixed-asset investment, exposing the province’s reliance on Shenzhen and Guangzhou as growth engines.
Shanghai to Buy Second‑hand Flats for Affordable Rentals, Pilots in Three Central Districts
Shanghai has begun buying second‑hand flats to convert into guaranteed rental housing for new urban residents, youth and graduates, piloting the scheme in Pudong, Jing’an and Xuhui. Backed by China Construction Bank, the programme aims to speed up delivery of affordable units using existing stock, bolster market liquidity and address urban rental shortages while posing valuation and governance challenges.
China Tightens VAT Rules: New Guidance Clarifies Input Deductions, Long‑term Assets and Prepayment Obligations
China has issued three implementing measures to clarify how businesses deduct input VAT, treat high‑value long‑term assets and manage VAT prepayments, along with transitional filing changes. The rules reduce legal ambiguity but require firms to adjust accounting systems and cash‑flow planning, with construction, real estate and oil & gas particularly affected.
Gold’s Retail Frenzy Pauses as Prices Plunge and Bank Inventories Reappear
A rapid reversal in precious-metals markets has cooled the retail scramble for physical gold in China, with major banks reporting renewed inventory after weeks of sell-outs. The correction was triggered by a drop in fears over Fed independence following a high-profile nomination, prompting a dollar rebound and sending volatile price signals through both futures and retail channels.
China’s Only Silver Futures Fund Plunges 31.5% in One Day as Retail Arbitrage Unravels
Guotou-UBS’s silver LOF plunged 31.5% in a single day after the manager revalued domestic Shanghai silver futures positions by reference to international prices, creating a rush of limit-down selling and exposing a socially-driven retail arbitrage bubble. The fund — China’s only public vehicle tracking silver futures — faces possible further limit-down sessions as investors try to escape a crowded position.
Gen‑Z Caught in the Silver Storm: How a record precious‑metals swing turned a trendy fund into a classroom for retail investors
A historic surge and collapse in gold and silver prices at the end of January exposed fragile market mechanics and left many Chinese retail investors—particularly Gen‑Z—caught in volatile trades around Guotou Silver LOF (161226). The shock combined stretched valuations, elevated implied volatility, regulatory curbs and a hawkish shift in U.S. monetary policy to produce a rapid deleveraging in precious metals.