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China’s state-controlled firms posted a 6.3% drop in profits for 2025 despite a 0.5% rise in revenue, with total profits around ¥4.04 trillion and an asset‑liability ratio of 65.1%. The data highlight margin pressure across SOEs and present Beijing with a choice between fiscal support and deeper restructuring.

The Shanghai Composite rose 3.76% in January and closed above 4,100, powered by a rotation between precious‑metals miners and AI application plays. Heavy turnover—more than RMB 2.5 trillion for 20 trading days—fostered sharp, theme‑driven rallies in smaller names even as some large‑cap benchmarks showed strain.

The EU moved on 29 January to designate Iran’s Islamic Revolutionary Guard Corps as a terrorist organisation, prompting strong condemnations from Tehran that called the decision illegal and dangerous. The move deepens transatlantic alignment on Iran but risks legal, diplomatic and security fallout that could complicate nuclear diplomacy and increase regional tensions.

Japan’s prime minister sparked Beijing’s ire by saying Tokyo and Washington would jointly evacuate citizens in a Taiwan crisis, prompting Chinese accusations of remilitarisation. The dispute unfolds amid U.S. efforts to balance deterrence with stable ties to China and Japan’s procurement of unmanned “machine dogs”, which signal a low‑risk military transformation that may alter crisis incentives.

US Defense Secretary Hegseth is reportedly set to skip next month’s NATO defence ministers meeting in Brussels. If true, the absence would compound recent high‑level US no‑shows at NATO gatherings and risk heightening allied doubts about Washington’s commitment to the alliance.

A South Korean C-130 transport made an emergency landing in Okinawa after one engine’s power dropped during a flight to a Saudi defence exposition; technicians replaced the faulty part and the aircraft departed later that day. The diversion, handled without injury, underscores routine maintenance and logistics challenges for long-range military flights and highlights practical benefits of regional basing and defence cooperation.

New Oriental and its e‑commerce spinoff Dongfang Zhenxuan both reported mid‑fiscal 2026 results that show operational stabilization and a return to profitability for Dongfang. Their recoveries reflect strategic shifts—de‑personalisation and self‑operated goods for Dongfang, and business‑mix adjustment plus AI investment for New Oriental—but both face significant execution and competition risks before growth can be deemed sustainable.

The Pentagon told President Trump it is prepared to execute any orders regarding Iran as U.S. forces gather in the Middle East. Washington is reportedly weighing strikes on Iranian leaders and nuclear sites, while Tehran has warned it is ready to respond to any aggression and called for an end to provocations if genuine talks are desired.

China’s Politburo, chaired by Xi Jinping, reviewed and approved 2026 workplans for the Party leadership groups embedded in the country’s major state and judicial organs, praising 2025 performance and calling for strict implementation of Party directives. The meeting underlined centralised leadership, strengthened Party governance, and a focus on achieving a stable start to the 15th Five‑Year period while reducing formalism at the grassroots.

Shanghai markets closed January with a 3.76 percent gain, stabilising above 4,100 after mid‑month highs and narrow consolidation. Precious metals, AI application names and commercial space stocks were the standout performers amid sustained high trading volumes.

The Pentagon told President Trump it is prepared to implement any decision on Iran as U.S. forces concentrate in the Middle East. Trump is reportedly considering a range of military options while Iran warns it is ready to respond, leaving the region at heightened risk of escalation.

A comment by Japanese cabinet minister Sanae Takaichi — that Japan should consider force if U.S. troops were attacked in a Taiwan contingency — provoked a sharp rebuke from China at the UN Security Council. Beijing used the forum to frame Tokyo’s rhetoric as dangerous and tied to domestic political manoeuvring, intensifying regional strategic tensions and complicating U.S.-Japan alliance management.

China has delivered the domestically designed 175,000 m³ LNG carrier Haihan from CSSC Dalian to China Merchants, featuring low boil‑off and a dual‑fuel engine that meets strict IMO emissions rules. The handover underscores China’s growing competence in high‑end shipbuilding and carries implications for energy logistics, industrial policy and international competition in the LNG‑carrier market.

An explosion at an Iranian nuclear facility on January 27 has heightened regional tensions amid a visible U.S. military buildup. With IAEA inspectors reportedly absent and competing claims about responsibility, the incident increases the risk of miscalculation and wider escalation in the Middle East.

Donald Trump has sued the U.S. Treasury and IRS in Miami federal court, seeking at least $10 billion for allegedly illegal disclosure of his tax returns from his first presidential term. The suit revives long-standing disputes over presidential tax transparency, raises questions about agency handling of confidential data, and carries significant political symbolism even if large damages are unlikely.

Russian media report that Iran has received Russian-made attack helicopters but has not yet put them into operational service. While the delivery signals closer Russia–Iran military ties, operational challenges and sanctions mean the immediate threat is limited, though the transfer could have significant medium-term implications for regional balance and sanctions enforcement.

China’s Coast Guard reports 550,000 vessel sorties and 6,000 air missions since the 2021 Coast Guard Law, with patrols around the Diaoyu Islands reaching 357 days in 2025. The data signal a sustained, law‑framed push to normalize Chinese control in contested maritime zones, complicating ties with Japan, the United States and Southeast Asian claimants.

Ziguang Guowei, a Chinese semiconductor firm, told investors it has no plans to acquire Nvidia. The response highlights practical, regulatory and geopolitical obstacles to cross‑border purchases of cutting‑edge chipmakers and points to China’s continued focus on building domestic capabilities.

At the Jan. 30 midday break China’s main indices diverged: the Shanghai Composite and Shenzhen Component fell while the ChiNext index staged a V-shaped rebound, rising 0.8%. Compute-hardware and AI-related small caps drove the upside even as non-ferrous metals and lithium names plunged, leaving the market narrow and turnover subdued.

China is effectively easing its "three red lines" deleveraging rules for property firms, with some developers no longer required to file monthly metrics. The move reflects a sector-wide shift from aggressive deleveraging to stabilisation, but analysts remain split on the timing and strength of any sustained recovery.