China economic performance

European luxury brands face growth challenges in Chinese market

European luxury brands, including LVMH and Hermès, experienced declining sales in China as the nation's personal luxury goods market contracted by 3–5% in 2025. This downturn followed a 18–20% decline in 2024, driven by a shift in consumer preference toward second-hand goods and domestic alternatives amidst weak domestic demand. Companies such as Louis Vuitton responded by closing stores in mainland China, while legal disputes over trademark infringement, specifically against Molly Tea, triggered negative online sentiment and state media scrutiny.

China reports rise in exports to Southeast Asia amid domestic economic strain

China recorded a 36.3 per cent year-on-year increase in total exports last month, with shipments to Southeast Asia rising by 52.3 per cent. This export growth occurred alongside domestic economic indicators showing retail sales growth of 0.4 per cent in August, a 7.2 per cent decline in fixed-asset investment, and a 19.9 per cent drop in property investment over the first eight months of the year. While industrial production increased by 5.2 per cent in August, the country's total trade surplus reached US$133.5 billion, contributing to a nine-month total of US$938.1 billion.

Taiwan Weighted index falls 0.81% at market close

The Taiwan Weighted index experienced a decline of 0.81% by the time the market closed. This movement occurred within the Taiwan economic sector.

China reduces US Treasury holdings to 18-year low

In August, China reduced its holdings of US Treasuries to an 18-year low. This action followed China's ongoing efforts to diversify its foreign exchange reserves. The decision occurred amid rising geopolitical tensions and concerns regarding the fiscal outlook of Washington.

Brazil Sorghum Exports Reach 790,800 Tons

Between January and September 2026, Brazil exported 790,800 tons of sorghum, a significant increase from the 105 tons exported during the entirety of 2025. China emerged as the primary destination, purchasing 755,600 tons, which accounted for 95.6% of the total volume. Analysts from AgRural, StoneX, and Agrobom noted that this shift was driven by Chinese demand moving toward Brazil, partly due to the trade war. Conab projects the 2026/27 sorghum crop at 8.03 million tons, a 9.0% increase, while experts monitor whether this grain will displace corn in the safrinha, or second, crop cycle.

China reports 4.5% GDP growth amid concerns over export-led economic model

China reported a 4.5% year-on-year GDP growth for the July-September quarter, an acceleration from the 4.3% recorded in the previous quarter. This growth was primarily driven by strong exports, with the country on track to exceed last year’s $1.2 trillion global trade surplus. However, analysts noted that these figures mask persistent domestic issues, including a property market downturn and weakened consumer demand. The reliance on an export-led model has triggered pushback from trade partners, most notably the European Union, which seeks to address a trade deficit of more than $1.1 billion per day.

China economic growth expected to miss official target in third quarter

China’s third-quarter economic growth was projected to reach 4.4 percent, missing the government’s annual target range of 4.5 to 5.0 percent according to an AFP poll of economists. The stagnation was attributed to a persistent real estate crisis, weak domestic consumer sentiment, and rising energy costs linked to the conflict between the United States and Iran, which disrupted oil imports. While an AI-driven export boom provided a partial buffer, the International Monetary Fund downgraded its annual growth projection for China to 4.5 percent, citing limited impact from Beijing's recent support measures.

Hang Seng Index encounters resistance at 24,107.5

The Hang Seng Index encountered resistance at the level of 24,107.5 in Hong Kong, China.

CXMT shares fall over 6% following earnings forecast release

Shares of ChangXin Memory Technologies (CXMT) fell 6.5% on Monday, despite the company forecasting a swing to a net profit of 131 billion to 132.5 billion yuan for the first nine months of 2026. This performance marks a reversal from a 5.28 billion yuan loss during the same period in 2025, driven by surging demand for AI computing power and subsequent global DRAM price increases. As of the third quarter of 2026, CXMT has grown its global DRAM market share to 10%, up from 5% a year prior, solidifying its position as the fourth-largest supplier worldwide. This growth challenges established industry players, including Samsung Electronics, SK Hynix, and Micron Technology.

Beijing population expected to reach super-aged status by 2035

Beijing was projected to reach super-aged population status by 2035. This transition involved the demographic composition of the city's residents.

Shanghai Composite Index Outlook for Monday

The China stock market ended a two-day losing streak on Friday, which had previously resulted in a decline of almost 100 points or 3.2 percent. The Shanghai Composite Index concluded the session positioned slightly above the 3,715-point plateau.

Taiwan Stock Market Expected to Open Lower on Monday

The Taiwan stock market experienced fluctuations after a four-day losing streak resulted in a decline of nearly 1,500 points or 3.1 percent. Following this period, the market finished higher in two of the three subsequent trading days and rested just above the 47,110-point plateau.

Robin Xing discusses China's economic divergence and policy challenges

Morgan Stanley chief China economist Robin Xing discussed the nation’s K-shaped economic divergence and policy challenges in an interview with SCMP Plus. Xing addressed the potential for the top half of the economy to offset deflation and weak consumption, while arguing that supporting consumers could further China's technological advancements. The discussion also touched upon the broader geopolitical climate, specifically noting that President Xi Jinping and U.S. President Donald Trump were expected to hold two additional meetings following their previous two encounters.

Taiwan Semiconductor Reports Recent Quarterly Financial Results

Taiwan Semiconductor Manufacturing (TSMC) reported its third-quarter financial results, showing 51% revenue growth in New Taiwan Dollars and 41% growth in US dollars, alongside a 69% year-over-year increase in profits. CEO C.C. Wei characterized demand for AI-related chips as "extremely robust," stating that the previously projected 50% compound annual growth rate through 2029 would likely be exceeded. Although the stock price declined 2.28% to $412.61 on October 16, 2026, the company maintained a positive outlook due to its role as the primary chip fabricator for major designers like Nvidia and Apple.

Rosen Law Firm Announces Securities Class Action Against Baidu, Inc.

The Rosen Law Firm filed a securities class action lawsuit against Baidu, Inc. on behalf of investors who purchased securities between November 18, 2025, and August 17, 2026. The lawsuit alleged that Baidu made misleading statements by overstating its AI business's capacity to offset declines in its legacy online marketing revenue. Investors seeking to serve as lead plaintiff in the litigation must file with the court by November 13, 2026.

TSMC Plans Up to $64 Billion in Capital Expenditure for 2024

Taiwan Semiconductor Manufacturing (TSMC) announced plans to invest $60 billion to $64 billion in capital expenditure for 2024 to expand its factory capacity and equipment. This decision was driven by significant demand for chips, particularly from the emerging market for autonomous agentic AI, with CEO C.C. Wei noting a substantial gap between current supply and demand. The company reported record third-quarter revenue of $46.7 billion and expects further growth, with CFO Wendell Huang projecting that capital spending from 2026 through 2028 will exceed the levels seen over the previous three years.

Hong Kong developers launch new residential projects following successful weekend sales

Following the sell-out of more than 360 flats across two major residential projects, Hong Kong developers moved to launch new sales in mid-October 2026. Sun Hung Kai Properties initiated a second round of sales for 152 flats at the Sierra Sea Phase 2C(2) project in Shap Sze Heung, utilizing both a regular price list and a tender process. Simultaneously, Swire Properties and Chinachem Group announced a collaborative redevelopment project to convert three buildings into a premium grade-A office tower in Taikoo Place.

Western luxury brands close select stores in China

Western luxury retailers, including Louis Vuitton and Galeries Lafayette, closed select stores in mainland China as demand waned amidst a stagnant economic recovery. Bain & Company reported that China's personal luxury market contracted between 3% and 5% in 2025, while the domestic secondhand luxury market grew by 15% to 20%. Consumers increasingly shifted preferences toward homegrown brands, cost-effective secondhand goods, and items reflecting personal identity rather than traditional status symbols. Additionally, friction arose between Western firms and Chinese consumers following legal trademark disputes involving cultural motifs.

Hong Kong hosts Apec Finance Ministers’ Meeting

Hong Kong hosted the Apec Finance Ministers’ Meeting on October 20 and 21, marking the city's first time holding the event at the Hong Kong Convention and Exhibition Centre. Approximately 500 guests, including finance chiefs and senior officials from 21 member economies, attended the gathering. Beijing selected Hong Kong as the host city to demonstrate the city's role as a safe harbor amidst geopolitical tensions and to promote its status as an international financial center. According to analyst Lau Siu-kai, the decision served to highlight the city's importance to China's development and its function as an offshore renminbi hub.

economic17 Oct 2026

Toyota to build next-gen Corolla in China from 2028

Toyota Motor announced plans to begin production of the next-generation Corolla at a local joint venture in China starting in 2028. The automaker intended to utilize a vehicle platform compatible with various powertrain types to navigate a slowing Chinese market where it had been struggling. This strategic shift followed the public debut of the new Corolla model at the Tokyo Mobility Show in the fall of 2025.

economic17 Oct 2026

Citi: Chinese AI supply-chain IPO valuations remain steady despite market pullback

Citi reported that valuations for Chinese AI supply-chain IPOs remained steady. This occurred despite a broader market pullback.

economic17 Oct 2026

Foreign banks reduce China branch networks amid shifting strategic focus

Foreign-funded banks, including Deutsche Bank, HSBC, and Standard Chartered, reduced their physical branch networks in China over the past year. Deutsche Bank closed branches in Qingdao and Chongqing, while HSBC and Standard Chartered closed individual sub-branches in Chongqing and Beijing. These actions followed Citi’s decision to exit its retail banking business in the country. The banks shifted their strategic focus toward digitalization, wealth management, and core clients to maintain a presence in a financial sector dominated by state-owned lenders.

China's DeepSeek AI service experiences five-hour outage

On October 15, 2026, the Chinese artificial intelligence startup DeepSeek experienced a five-hour service outage that impacted its V4-Pro and V4.1-Flash models and chat services. The disruption occurred between 8 a.m. and 1 p.m., prompting the company to provide partial refunds to affected subscribers. While the company did not formally identify a cause for the downtime, the event highlighted ongoing concerns regarding a shortage of computing power resulting from U.S. chip export restrictions.

Nike Sales Performance in China Leads to Low Analyst Buy Ratings

Nike experienced challenges in global sales performance, with a specific focus on underperformance within the Chinese market. These difficulties led analysts to issue low buy ratings for the company.

Nike announces expansion into India

Nike CEO Elliott Hill announced the establishment of a new global campus in Bengaluru, India, as part of a strategic effort to reverse the company’s recent performance slump. The expansion aims to leverage India’s growing role as a manufacturing hub and consumer market, which is projected to become the world’s third-largest retail market by 2030. This move coincides with Nike’s internal 'Pace' strategy, which includes company-wide layoffs and supply chain reorganizations intended to generate $2.5 billion in savings through fiscal 2031. The decision follows a 26% decline in revenue within the Greater China market during the first fiscal quarter.

Chinese chip and tech firms report profit growth amid self-sufficiency push

Chinese technology and chip firms reported significant profit growth for the third quarter, with Shanghai-listed Yuanjie Semiconductor Technology projecting a net profit increase of 579 to 660 percent year-over-year. The GPU designer MetaX also reported reaching profitability in the first nine months of the year following an increase in orders. These financial gains were driven by high demand for home-grown processors and artificial intelligence infrastructure, supporting the country’s push for self-reliance.

PetroChina projects record trading profit amid market volatility from war

PetroChina projected record trading profits as the company navigated market volatility resulting from war. The state-owned enterprise adjusted its financial expectations in response to global instability.

Air China reports September traffic growth and new route launch

Air China reported growth in traffic for the month of September and announced the launch of a new route. The airline oversaw these developments within its operational activities.

Chery International User Summit to Showcase Smart Energy and Charging Technology

From October 19 to 23, 2026, Chery Auto hosted the Chery International User Summit in Wuhu, Anhui, attended by more than 2,000 global guests and users. The event showcased the company's smart energy center, which integrates solar power, energy storage, and AI-powered dispatch to support electric vehicle charging. The facility serves as China’s first scaled AC Vehicle-to-Grid (V2G) demonstration station, featuring a local microgrid capable of megawatt-level ultra-fast charging.