China's Commerce Ministry Responds to US Section 301 Investigation on Production Capacity

China's Commerce Ministry stated it will closely monitor developments and reserve the right to take necessary measures following the US launch of a Section 301 investigation into production capacity. The ministry characterized the move as a typical act of unilateralism that severely disrupts international economic order.

During a press conference on July 28, Lin Weilong, director of the Commerce Ministry's Policy Research Office, said the US cannot narrowly define production exceeding domestic demand as "overcapacity" and label it as such. He argued the US has no right to unilaterally determine whether trading partners have "overcapacity" through a Section 301 investigation and impose unilateral restrictions. China urges the US to correct its approach and return to the proper path of resolving issues through dialogue and consultation. China will closely monitor the situation, maintain the right to take necessary measures, and resolutely safeguard its legitimate rights and interests, according to Xinhua News Agency.

EU Protectionist Measures Damage China-EU Cooperation Confidence

Lin Weilong also noted that the EU's recent wave of protectionist measures against China has severely dampened Chinese companies' confidence in cooperating with Europe. While differences and friction are inevitable given the scale of China-EU cooperation, such disagreements should not be used to fabricate unfounded accusations or serve as excuses to impose restrictions or pressure that hinders practical cooperation. China is willing to properly resolve differences and friction with the EU through dialogue and consultation, as reported by Xinhua News Agency.

Tax Revenue Sees 4.9% Growth in First Half of 2026

Hu Jinglei, head of the State Taxation Administration, announced at a press conference on July 28 that tax authorities collected a total of 16.7 trillion yuan in tax and fee revenue in the first half of 2026. This includes over 10 trillion yuan in tax revenue (excluding customs-collected import VAT, consumption tax, tariffs, and tonnage tax, and before deducting export tax rebates), representing a 4.9% year-on-year increase. During the same period, social insurance contributions totaled 4.5 trillion yuan, and non-tax revenue reached 1.8 trillion yuan, according to Xinhua News Agency.

Bank Loans to Tech-SMEs Grow 20.1%

Data released by the People's Bank of China on July 28 showed that, as of the end of the second quarter of 2026, 305,600 technology-based small and micro enterprises (SMEs) had received bank loans, with a loan approval rate of 50.8%, up 0.6 percentage points from the end of the previous year. Outstanding loans in domestic and foreign currency to these enterprises reached 4.15 trillion yuan, a 20.1% year-on-year increase, outpacing the overall loan growth rate by 15 percentage points, as reported by Xinhua News Agency.

Hong Kong's Exchange Fund Posts H1 Investment Income of HKD 134.7 Billion

The Hong Kong Monetary Authority stated on July 28 that the Exchange Fund recorded an investment income of HKD 134.7 billion in the first half of 2026. Key components include HKD 49.1 billion in bond investment income, a HKD 11.8 billion loss from Hong Kong stock investments, HKD 53.7 billion in gains from other stock investments, a HKD 34.3 billion upward valuation adjustment from non-HKD foreign exchange assets, and HKD 9.4 billion from other investments, according to Xinhua News Agency.

China Adjusts Urban Land Use Tax for Energy Resource Companies

The Ministry of Finance and the State Taxation Administration announced on July 28 an adjustment to the urban land use tax policy for certain energy and resource industry companies. The policy introduces a transitional period implemented in two phases. For land where tax is reinstated, the urban land use tax will be halved from September 1, 2026, to August 31, 2027, and the full amount will be levied starting September 1, 2027, as reported by Xinhua News Agency.

Chinese Bank Wealth Management Market Reaches 33.66 Trillion Yuan

A report released by the Banking Wealth Management Registration and Depository Center on July 28 showed that the total outstanding scale of China's bank wealth management market reached 33.66 trillion yuan as of the end of June, an increase of 1.11% from the beginning of the year. In the first half of 2026, 100 banks and 32 wealth management companies issued a total of 18,200 new wealth management products, raising a total of 39.21 trillion yuan, providing high-quality financial services for economic and social development, according to Xinhua News Agency.

Five-Year Plan to Upgrade Grassroots TCM Services

The National Administration of Traditional Chinese Medicine, along with 10 other departments, jointly released the "Medical and Health Strengthening Project Traditional Chinese Medicine Action Plan" on July 28. The plan aims to upgrade the quality of grassroots TCM services within five years. Targeting key improvements by 2030 in county-level TCM hospital service capabilities, primary healthcare TCM capabilities, TCM personnel allocation, promotion of appropriate TCM techniques, and popularization of TCM health culture, the action plan outlines seven specific actions with 25 key tasks, according to Xinhua News Agency.

China's EV Charging Infrastructure Surpasses 23 Million Units

According to the National Energy Administration, as of the end of June 2026, the total number of electric vehicle charging infrastructure units in China reached 23.057 million, a 43.2% year-on-year increase. This includes 5.009 million public charging units (up 22.3% year-on-year) with a total rated power of 247 million kilowatts and an average power per unit of about 49.35 kilowatts, and 18.048 million private charging units (up 50.4% year-on-year) with a total installed capacity of 155 million kilovolt-amperes, as reported by Xinhua News Agency.

AI Large Model IPv6 Enhancement Initiative Launched

The "AI Large Model IPv6 Capability Enhancement Initiative" was jointly launched in Xiong'an New Area by the Cyberspace Administration of China, the internet information offices of Beijing, Shanghai, Zhejiang, and Shenzhen, along with five leading large model companies. The initiative aims to promote generative AI applications that fully support IPv6, strengthening the network foundation for the intelligent era. Xiong'an New Area will comprehensively promote single-stack IPv6 deployment, coordinating efforts in four dimensions: strengthening foundations, expanding applications, intensifying research, and cultivating ecosystems. By 2030, newly developed areas will fully achieve large-scale operation of IPv6 single-stack, according to Xinhua Finance.

Multiple A-Share Companies Report Strong H1 Performance and Share Buybacks

On the evening of July 28, several A-share companies released their semi-annual performance forecasts, reports, or preliminary results for 2026, with many in AI, energy storage, medical, and chip sectors showing substantial profit growth. Notably, Zhonghong Medical expects a net profit attributable to shareholders for the first half of 2026 to increase by 2338% to 3557% year-on-year. Liangli Diamond reported a 247.61% increase in net profit for the first half of 2026. Simultaneously, several A-share companies announced significant share repurchase and shareholding increase plans, demonstrating long-term confidence. Display panel leader BOE A saw its controlling shareholder plan to increase its stake in the company by 500 million to 1 billion yuan, according to China Securities Journal.

Changxin Memory Tech to be Included in MSCI China All Shares Index

MSCI Inc announced that Changxin Memory Tech will be included in the MSCI China All Shares Index, effective August 10, according to Xinhua Finance.

Cambricon Technologies Unveils Stock Incentive Plan

Cambricon Technologies released its 2026 restricted stock incentive plan (draft), proposing to grant 5 million restricted shares to incentivize employees, representing 0.80% of the company's total share capital, with a grant price of 750 yuan per share, according to Xinhua Finance.

Zhongji Innolight Chairman Proposes Major Share Buyback

Zhongji Innolight announced on July 28 that it received a proposal from its Chairman and President, Liu Sheng, to repurchase the company's A-shares. Liu Sheng proposed repurchasing shares worth no less than 4 billion yuan (inclusive) and no more than 8 billion yuan (inclusive) using the company's own or self-raised funds through centralized bidding transactions on the Shenzhen Stock Exchange, according to Xinhua Finance.

China State Construction Signs Major Kuwaiti Sewage Treatment Plant Contract

China State Construction signed a contract with Kuwait's Ministry of Public Works for the North Kabd Sewage Treatment Plant and supporting projects, with a contract value equivalent to approximately 22.4 billion yuan, according to Xinhua Finance.

Kingsoft Office Expects Sharply Higher H1 Net Profit

Kingsoft Office expects its net profit for the first half of 2026 to be between 2.316 billion yuan and 2.719 billion yuan, a year-on-year increase of 209.98% to 263.89%. The company stated that some of its external investment fund projects achieved good investment returns during the reporting period, which significantly contributed to the net profit growth, according to Xinhua Finance.

Hyperstrong Projects Strong H1 Profit Growth

Hyperstrong expects its net profit for the first half of 2026 to be between 620 million yuan and 700 million yuan, a year-on-year increase of 96.30% to 121.63%. The company said it is successfully advancing its strategic transformation from a single equipment supplier to an integrated full-lifecycle energy services provider, gradually releasing the value creation advantages of the complete industrial chain, according to Xinhua Finance.

Wanma Technology Plans New Cable Material Production Facilities

Wanma Technology announced that its subsidiary, Wanma Polymer, plans to build a 100,000-ton-per-year cable material boutique factory project in Yuqian Town, Lin'an District, Hangzhou, with an estimated total investment of approximately 450 million yuan. It also plans to invest in a Wanma Polymer Qingdao subsea cable insulation material project in the West Coast New Area of Qingdao, Shandong, with an estimated total investment of about 370 million yuan, according to Xinhua Finance.

Volcano Engine Launches Doubao Search Service

On July 28, Volcano Engine officially launched the Doubao search service, providing cross-language, multimodal, and multi-vertical online information query, according to Xinhua Finance.

Boeing Reports Narrower Q2 Net Loss

US aircraft manufacturer Boeing reported a net loss of $428 million for the second quarter of this year on July 28, narrowing from a net loss of $612 million in the same quarter last year, according to Xinhua News Agency.

Trump Threatens Strike on Iran's Nuclear Facility; Iran Reportedly Fires Missiles at US Forces

US President Donald Trump met with Israeli Prime Minister Benjamin Netanyahu at the White House on the morning of July 28, their first face-to-face meeting since the US and Israel launched a large-scale joint military operation against Iran in late February. According to US media reports, the meeting lasted over an hour, following Trump's approximately one-hour meeting with Ukrainian President Volodymyr Zelenskyy. Later, Trump again threatened to strike Iran's underground nuclear facility at Mount Gaoshan if the US and Iran cannot reach an agreement. Trump had previously told media on July 21 that the US could "soon" strike the facility, according to Xinhua News Agency.

On July 28, the US Central Command stated that at 5:45 PM Eastern Time, Iran's Islamic Revolutionary Guard Corps launched multiple ballistic missiles from Iranian territory in an "attempted surprise attack on US forces in the Middle East." The Central Command claimed all missiles were successfully intercepted, and US forces remain on high alert and combat-ready. Iran has not yet responded, according to CCTV News.

Iran Threatens to Block Hormuz Strait for Entities Using Iranian Assets for Compensation

According to a July 28 report by Islamic Republic of Iran Broadcasting, a spokesperson for the Khatam al-Anbia Central Headquarters of the Iranian Armed Forces said that any country or company accepting compensation from the US using Iranian assets will have its vessels barred from passing through the Strait of Hormuz, according to Xinhua News Agency.

UK Shop Prices Fall 0.9% in July

Data released by the British Retail Consortium on July 28 showed that the overall UK shop price index fell 0.9% year-on-year in July. This compares to a 1.2% year-on-year increase in June. Both food and non-food shop prices in the UK declined in July, according to Xinhua Finance.

Magnitude 7.1 Earthquake Hits Japan's Kumamoto Prefecture

A magnitude 7.1 earthquake struck Kumamoto Prefecture in Japan on July 28, causing power outages for approximately 48,000 households and multiple injuries. The specific number of casualties is still being tallied, according to Xinhua News Agency.

Australian Treasurer Warns of Rising Economic Risks from Middle East Conflict

Australian Treasurer Jim Chalmers warned on July 28 that the economic risks from the ongoing Middle East conflict are increasing, according to Xinhua News Agency.

Asian Markets Tumble on US Tech Sell-off

Influenced by a sharp drop in US semiconductor stocks overnight, Japanese and South Korean stock markets declined on July 28. South Korea's KOSPI index plunged over 8% at one point, triggering a market circuit breaker. Japan's Nikkei 225 Stock Average also fell over 4% during the session, according to Xinhua News Agency.

Wall Street Ends Mixed with Sector Divergence

US stocks ended mixed on July 28 with performance diverging across sectors. US memory and optical communication stocks collectively plunged during the session, with the Philadelphia Semiconductor Index falling over 6.5% before recovering. Meanwhile, Apple shares hit a new record high, with its market capitalization briefly surpassing $5 trillion during the session. Coca-Cola shares also hit a new all-time high, having risen over 30% year-to-date, according to Xinhua Finance.

US Private Sector Employment Grows Moderately

In the four weeks ending July 11, US private sector employment increased by an average of 15,000 jobs per week, according to Xinhua Finance.

US Consumer Confidence Dips in July

Preliminary results from a survey by the Conference Board released on July 28 showed that the US consumer confidence index fell to 90.8 in July, down from 92.2 in June. The survey also indicated that consumers' inflation expectations for the next 12 months declined, while the proportion of consumers expecting interest rates to rise over the next year remained unchanged at 61.3%, according to Xinhua Finance.