China’s Economic Pulse: Key Moves in Real Estate, Tech, and Global Markets You Need to Know

Catch the latest on China’s economic strategy, from stabilizing its crucial real estate market to big moves in tech and finance, plus how global events are shaping the landscape. Essential reading for investors, founders, and anyone tracking Chinese innovation.

This weekend brought a ton of action that’s shaking things up. We’re seeing the State Council step in with stronger measures for the real estate market, new plays from the People’s Bank of China (PBOC), and ripples from international incidents. Let’s dive in.

Macro Economic Moves: Steering the Ship

State Council Doubles Down: Real Estate & Drug Procurement in Focus

Premier Li Qiang led a pivotal State Council Executive Meeting on June 13th. Here’s the lowdown:

• Real Estate Rescue: They’re not just talking; they’re deploying stronger measures to promote stabilization and recovery in the real estate market. This includes building a new model for real estate development and pushing for “good housing.” For anyone watching China’s property sector, this is a big signal.
• Drug Procurement Shake-up: The meeting also tackled optimizing how consolidated procurement of drugs and medical consumables works. This is about efficiency and accessibility in healthcare.
• Policy Polish: They also discussed promoting pilot measures from the China (Shanghai) Pilot Free Trade Zone and improving the credit repair system. These are all about refining the economic engine.

PBOC Action: ¥400 Billion RMB Liquidity Boost

The People’s Bank of China (PBOC) (Zhongguo Renmin Yinhang 中国人民银行) isn’t sitting on the sidelines.

They announced a significant move: a ¥400 billion RMB ($56 billion USD) buyout repurchase operation scheduled for June 16, 2025.

This operation, with a 6-month term, is an effort to maintain ample liquidity in the banking system. It’s the second such operation this month, signaling a proactive stance on monetary policy.

This kind of liquidity injection is a key tool the PBOC uses to manage interest rates and ensure the financial system runs smoothly – definitely one to watch for its impact on lending and investment.

Money Supply & Loans: The Numbers Speak

The latest data from the PBOC paints a picture of current financial conditions:

• RMB Loans Surge: In the first five months of the year, RMB loans shot up by a staggering ¥10.68 trillion RMB ($1.4952 trillion USD). That’s a massive amount of new credit flowing into the economy.
• Broad Money Supply (M2) Growth: At the end of May, the broad money supply (M2) (Guangyi Huobi 广义货币) hit ¥325.78 trillion RMB, marking a 7.9% year-on-year increase. M2 is a broad measure of money supply, and its growth can indicate inflationary pressures or economic expansion.
• Narrow Money Supply (M1) (Xiaayi Huobi 狭义货币): This stood at ¥108.91 trillion RMB, up 2.3%.
• Currency in Circulation (M0) (Liutong Zhong Huobi 流通中货币): Reached ¥13.13 trillion RMB, a robust 12.1% increase.
• Net Cash Injection: The first five months saw a net cash injection of ¥306.4 billion RMB.

These figures suggest continued efforts to support economic activity through credit expansion, though the M2 growth rate is something economists will be watching closely.

Global Market Tremors: Geopolitics and Financial Swings

Middle East Tensions Flare: Attacks and High-Level Calls

The global stage saw some serious developments:

• Reports surfaced of an attack on Iran’s nuclear headquarters and missile attacks by Iran on multiple locations in Israel.
• In a notable diplomatic exchange, Russian Presidential Assistant Ushakov confirmed that Russian President Putin and US President Trump had a 50-minute phone call on June 14th (local time). They discussed the Israel-Iran tensions, with Putin sharing details of his conversations with Israeli Prime Minister Netanyahu and Iranian President Pezeshkian.

Trump’s Warning on Iran

Adding to the tension, US President Trump made a strong statement on social media in the early hours of June 15 (US Eastern Time).

He asserted, “The United States was not involved in the incidents [attacks] in Iran tonight,” but warned that if Iran attacked the US, the US armed forces would respond “with full force on an unprecedented scale.”

Trump also claimed the US could “easily facilitate an agreement to end this bloody conflict,” though details were scarce.

China’s Stance: Calling for De-escalation

Foreign Ministry spokesperson Lin Jian expressed China’s deep concern over the Israeli attack on Iran and the potential for serious consequences.

Key takeaways from China’s position:

• China opposes actions infringing on Iran’s sovereignty and security.
• China opposes provoking contradictions and escalating conflict.
• Beijing emphasized that the rapid escalation serves no party’s interest and called on all sides to work towards regional peace and stability.
• China stated its willingness to play a constructive role in de-escalating the situation.

Market Reactions: Stocks Dip, Oil & Gold Spike

These geopolitical jitters, among other factors, had a clear impact on markets on June 13th:

• US Stock Indices Tumble: Major US stock indices all closed down over 1%.
  • The Dow Jones Industrial Average fell 1.79% (769.83 points) to 42197.79.
  • The S&P 500 index dropped 1.13% (68.29 points) to 5976.97.
  • The Nasdaq Composite Index slid 1.3% (255.65 points) to 19406.83.
• Weekly Performance: For the week, the Dow was down 1.32%, the Nasdaq down 0.63%, and the S&P 500 down 0.39%.
• Oil Prices Surge: International oil prices jumped by over 7%. This is a classic flight-to-safety and supply concern reaction.
• Gold Hits New Highs: International gold settlement prices reached new highs, underscoring its status as a safe-haven asset during uncertain times.

Financial Capital & Regulatory Watch

CSRC Targets Program Trading in Futures Market

The China Securities Regulatory Commission (CSRC) (Zhengjianhui 证监会) is tightening the reins on automated trading.

They’ve issued the “Provisional Regulations on Program Trading in the Futures Market,” set to take effect on October 9, 2025.

The goal? To implement the “Futures and Derivatives Law,” strengthen regulation, prevent risks, and promote high-quality development in the futures market. This move is all about ensuring market order and fairness in an increasingly automated trading environment.

Decoding Aggregate Financing: ¥18.63 Trillion RMB to the Real Economy

The PBOC also released striking data on aggregate financing to the real economy (AFRE) (Shehui Rongzi Guimo 社会融资规模).

In the first five months of 2025, AFRE totaled a massive ¥18.63 trillion RMB ($2.6082 trillion USD).

This represents an increase of ¥3.83 trillion RMB ($536.2 billion USD) compared to the same period last year. Talk about a significant jump!

Breaking it down:

• RMB loans to the real economy increased by ¥10.38 trillion RMB (a year-on-year increase of ¥112.3 billion RMB or $15.722 billion USD).
• However, foreign currency loans to the real economy (converted to RMB) decreased by ¥96.3 billion RMB ($13.482 billion USD). This was a larger decrease year-on-year by ¥169 billion RMB ($23.66 billion USD), perhaps reflecting global currency fluctuations or changing borrowing strategies.

Stock Manipulator Fined: CSRC Cracks Down

In a clear message against market malpractice, prominent “Big Investor” Tu Wenbin (Tu Wenbin 屠文斌) faced hefty penalties from the CSRC.

The investigation found Tu Wenbin guilty of manipulating the prices of multiple stocks using a group of controlled accounts.

His tactics included continuous trading, price ramping, large-amount limit-up orders, and false declarations/withdrawals.

The result? Illegal gains of ¥36,273,319.64 RMB ($5,078,264.75 USD) were confiscated, and he was fined, bringing the total to nearly ¥77 million RMB ($10.78 million USD). This is a significant enforcement action underscoring the CSRC’s focus on market integrity.

• Individual Targeted: Tu Wenbin (“Big Investor”)
• Violation: Manipulating prices of multiple stocks using controlled accounts.
• Methods Included: Continuous trading, price ramping, large-amount limit-up orders, false declarations/withdrawals.
• Illegal Gains Confiscated: ¥36,273,319.64 RMB ($5,078,264.75 USD)
• Fines Issued: Approximately ¥40.7 million RMB ($5.7 million USD) (Calculated as Total – Confiscated Gains)
• Total Penalty (Confiscation + Fine): Nearly ¥77 million RMB ($10.78 million USD)

Industrial Economy: Pharma Focus & Travel Perks

State Council Eyes Drug Procurement Optimization

The State Council meeting wasn’t just about real estate; it also delved into the consolidated procurement of drugs and medical consumables.

Key directives include:

• Strengthening policy evaluation and learning from past experiences.
• Promoting normalized and institutionalized procurement.
• Better coordination of healthcare, medical insurance, and pharmaceuticals (the “three medicals”).
• Improving compensation for public hospitals.
• Supporting pharmaceutical companies in boosting innovation to meet diverse medical needs.
• Enhancing quality supervision across the entire drug supply chain.
• Advancing quality and efficacy consistency for generic drugs to ensure public confidence.

This is all about making healthcare more efficient, innovative, and trustworthy.

SAMR Vows Continued Anti-Monopoly Action in Pharma

The State Administration for Market Regulation (SAMR) (Shichang Jianguan Zongju 市场监管总局) is echoing this focus on the pharmaceutical sector.

Spokesperson Wang Qiuping stated on June 13th that SAMR will intensify anti-monopoly law enforcement in this crucial area.

The agency is maintaining “high pressure” against any illegal acts that threaten drug safety or inflate costs, aiming to safeguard the public’s access to “life-saving medicines” at “affordable prices.”

Her message was clear: companies harming public health or “blindly pursuing profit” at public expense will not be tolerated. This is a strong signal to the industry about compliance expectations. (Opportunity for a link to more info on SAMR’s regulations).

Travel Update: Visa-Free Entry to New Zealand for Some Chinese Citizens

Good news for some travelers!

The New Zealand government announced that starting November 2025, Chinese passport holders arriving from Australia who hold a valid Australian visitor, work, student, or family visa will be able to enter New Zealand visa-free for up to three months.

This could be a significant convenience for eligible Chinese citizens living, working, or studying in Australia.

Company Focus: Tech Frenzies & Market Unlocks

POP MART’s Labubu Craze: A Toy Story Success

The 潮玩 (Chaowan – “trend play” or collectible toys) giant POP MART (Paopaomate 泡泡玛特) (09992.HK) is on an absolute tear.

Its stock price has skyrocketed more than tenfold in the past year!

The driver? Its Labubu 3.0 series, launched in April this year, has sparked a global buying frenzy.

This excitement is spilling over into the A-share market:

• Yuanlong Yatu (Yuanlong Yatu 元隆雅图) (002878.SZ) hit 7 limit-up days (the maximum daily stock price increase allowed) in just 11 trading days. That’s wild!

And it’s not just them. A host of listed companies are confirming their partnerships with POP MART, eager to ride the wave. These include:

• Changlian Corporation (Changlian Gufen 畅联股份) (603648.SH)
• Yeahmobi (Yidiantianxia 易点天下) (301171.SZ)
• Debi Group (Debi Jituan 德必集团) (300947.SZ)
• Qingmu Technology (Qingmu Keji 青木科技) (301110.SZ)
• Utour Group (Zhongxin Lüyou 众信旅游) (002707.SZ)
• Hanshuo Technology (Hanshuo Keji 汉朔科技) (301275.SZ)
• \*ST Yangguang (\*ST Yangguang \*ST阳光) (000608.SZ)
• Wanda Film (Wanda Dianying 万达电影) (002739.SZ)
• Nanling Technology (Nanling Keji 南凌科技) (300921.SZ)

This highlights the immense brand power and market impact of successful intellectual property in the consumer space. (An opportunity for a link to a deeper dive on the Chaowan trend).

Tencent (Tengxun 腾讯) & Nexon: Acquisition Rumors Quashed

Rumors were swirling in the gaming world that Chinese tech giant Tencent (Tengxun 腾讯) was planning to acquire Korean game developer Nexon.

However, on June 13th, sources close to Tencent put those rumors to bed.

The official word: “Tencent has not contacted the founder’s family to discuss the transaction and is not considering acquiring Nexon.”

Previous media reports had suggested Tencent was eyeing a $15 billion USD (¥107.7 billion RMB) deal for Nexon. For now, it seems that’s off the table. (Linking opportunity to more about Tencent’s gaming strategy).

A-Share Unlocks: Over ¥45 Billion RMB Hitting the Market

Heads up for A-share investors: a significant batch of shares is set to be unlocked next week.

Here are the key figures:

• 48 A-share stocks will face unlocking.
• A total of 2.914 billion shares will become available for trading.
• Based on latest closing prices, the total market value of these unlocked shares is ¥45.458 billion RMB ($6.36412 billion USD). This is a 27.16% decrease in unlock value week-on-week, but still a substantial amount.

Stocks with unlock values exceeding ¥4 billion RMB ($560 million USD) each include:

• DR Corp. (Di’a Gufen 迪阿股份) (301177.SZ)
• Ruitai New Materials (Ruitai Xincai 瑞泰新材) (301238.SZ)
• Jidong Cement (Jidong Shuini 冀东水泥) (000401.SZ)

Furthermore, seven stocks will see their tradable float (the number of shares available for public trading) more than double. These are:

• DR Corp. (301177.SZ)
• Qiaoyuan Corporation (Qiaoyuan Gufen 侨源股份) (301286.SZ)
• Fengguang Corporation (Fengguang Gufen 风光股份) (301100.SZ)
• Wanda Bearing (Wanda Zhoucheng 万达轴承) (920002.BJ)
• Mengtian Home Furnishings (Mengtian Jiaju 梦天家居) (603216.SH)
• Ruitai New Materials (301238.SZ)
• Zhonglun New Materials (Zhonglun Xincai 中仑新材) (301565.SZ)

Share unlocks can sometimes put downward pressure on stock prices as supply increases, so these are names to watch.

Currency conversions are approximate based on prevailing exchange rates around June 15, 2025.

Understanding these multifaceted developments—from government policy shifts in China’s real estate and pharmaceutical sectors to global market reactions and specific company news—is crucial for anyone engaged with or observing China’s dynamic economy.

References

• 周末要闻汇总：国常会部署更大力度推动房地产市场止跌回稳 – 东方财富Choice数据
• 国常会：进一步优化现有政策 更大力度推动房地产市场止跌回稳 – 东方财富网
• 央行：前五个月人民币贷款增加10.68万亿元 广义货币增长7.9% – 东方财富网
• 证监会发布《期货市场程序化交易管理规定（试行）》 – 东方财富网