Key Points
- The Bond Connect program has been significantly upgraded, widening investor scope and currency options, reinforcing Hong Kong’s role as a premier offshore RMB hub. Over 80 of the world’s top 100 asset management firms have entered China’s bond market.
- AI robotics firm Zhiyuan Robotics (智元机器人) is attempting a “backdoor listing” by taking control of A-share listed Swancor New Material (上纬新材) to go public faster.
- Beijing is actively injecting funds (¥10 billion RMB for work-relief programs) and promoting a “ticket economy” to boost employment and domestic consumption, while also cracking down on “involution” or destructive price wars in industries like automotive.
- A fierce subsidy war between Meituan (美团) and Alibaba (阿里巴巴) over milk tea discounts highlighted the extreme stress on shop staff and delivery riders, showcasing the intensity of competition in instant retail.
- Global trade for China is expanding, with major partnerships in over 150 countries and regions, though a potential “Tariff Storm 2.0” from the US is being considered.
Here’s the latest breakdown of major moves in China’s tech and finance sectors for July 2025, and it’s a wild ride.
We’re seeing huge policy shifts opening up China’s massive bond market, an AI robotics startup making a bold play for the public A-shares market, and an all-out subsidy war between Meituan (Meituan 美团) and Alibaba (Alibaba 阿里巴巴) that literally pushed milk tea shops to their breaking point.
Let’s dive into the key headlines shaping the landscape.
Bond Connect Gets a Major Upgrade: What It Means for Global Investors
China is making it even easier for global cash to flow through its financial system.
The Bond Connect, a crucial link between mainland China and Hong Kong’s bond markets, just rolled out some serious optimizations.
Here’s the TL;DR:
- Investor Scope Widens: The “Southbound Connect” (mainland investors buying offshore bonds) is now open to four new categories of non-bank institutions. This move is designed to help alleviate the “asset shortage” pressure within the mainland.
- More Scenarios & Currencies: Offshore repurchase agreements (repos) now have broader applications, and tradable currencies have expanded to include the USD, EUR, HKD, and more. This gives overseas investors much-needed access to RMB liquidity.
Industry insiders are buzzing about this.
The anouncement by the People’s Bank of China (Zhongguo Renmin Yinhang 中国人民银行) and the Hong Kong Monetary Authority (Xianggang Jinrong Guanliju 香港金融管理局) is seen as a major step in reinforcing Hong Kong’s role as a premier offshore RMB hub.
After eight years, the Bond Connect program is a clear success.
According to Jiang Huifen, Deputy Director of the Financial Market Department at the PBOC, over 80 of the world’s top 100 asset management firms have already entered China’s bond market.
And the money is flowing both ways. Data from Q2 2025 shows that Northbound funds (overseas investors buying mainland stocks) have increased their holdings, with both the market value and number of shares held on the rise.
The PBOC isn’t stopping here, either. They’ve stated they are “actively researching other measures to promote the opening up of the bond market.”
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Corporate Action: The Wild, The Bold, and The Busted
The corporate world saw some major moves, from scalper schemes and blockbuster M&A to lawsuits and insider trading allegations.
Xiaomi’s SU7 Frenzy Creates a ‘Scalper’ Black Market
The hype around the Xiaomi (Xiao Mi 小米) SU7 electric vehicle is so intense that it’s created a thriving black market run by “scalpers.”
Investigations found these resellers are hoarding massive numbers of orders—one seller allegedly has nearly 300.
They’re using two main tactics:
- The “Used Car” Flip: They take delivery of the car and then immediately resell it as a second-hand vehicle.
- The “New Car” Flip: Before delivery, they change the license plate registrant info, allowing them to resell it as a “new car.” This method is more lucrative because it lets the new buyer claim trade-in subsidies.
AI Startup Zhiyuan Robotics Eyes Public Market in Major Takeover
This is a power move.
Zhiyuan Robotics (Zhiyuan Jiqi 智元机器人), a high-profile AI and robotics firm, is planning to take control of Swancor New Material (Shangwei Xincai 上纬新材), an A-share listed company.
The plan involves Zhiyuan Robotics and its core team acquiring control through a share transfer and a tender offer.
If the deal goes through, the company’s actual controller will become Deng Taihua, a key figure in the Zhiyuan Robotics team.
This is a classic “backdoor listing” or reverse merger strategy, allowing a hot private tech company to enter the public market much faster than a traditional IPO.
Corporate Headaches: Lawsuits and Insider Trading
It’s not all growth and clever M&A.
- Asia Harvest (Yashi Chuangneng 亚士创能) is facing a ¥234 million RMB ($32.2 million USD) lawsuit. The company admitted to “capital turnover difficulties” after being unable to repay a ¥157 million RMB ($21.6 million USD) loan from a business partner.
- Yongjin Co. (Yongjin Gufen 甬金股份) announced its controlling shareholder, Cao Peifeng, was released on bail after being detained on suspicion of insider trading and leaking inside information.
Beijing’s Playbook: Stimulus, Consumption, and Cracking Down on “Involution”
The government is actively shaping the economy with targeted spending, new consumption models, and rules to curb destructive price wars.
Government Injects ¥10 Billion to Boost Jobs
The National Development and Reform Commission (Guojia Fazhan Gaige Weiyuanhui 国家发展改革委) has allocated an additional ¥10 billion RMB ($1.4 billion USD) for work-relief programs.
This funding is aimed squarely at boosting employment and income for key groups, supporting 1,975 projects across 26 provinces.
An estimated ¥4.59 billion RMB ($632.7 million USD) of this will go directly to labor wages, helping 310,000 people find jobs.
Boosting ‘China Consumption’: From Tax Rebates to a ‘Ticket Economy’
China is getting creative to spur domestic spending.
Five international consumption hubs—Shanghai, Beijing, Guangzhou, Tianjin, and Chongqing—are leading the charge.
These cities account for:
- ~60% of all tax rebate stores in China.
- Over 50% of national consumer goods imports.
- Nearly 33% of all “China Time-Honored Brand” (Zhonghua Laozhao 中华老字号) businesses.
Meanwhile, a new trend called the “ticket economy” is taking off.
Cities are turning event tickets into consumption keys. For example, in Luoyang, a high-speed rail ticket gets you half-price entry to famous sites like the Longmen Grottoes. In Wuxi, a sports ticket gets you discounts on hotels and meals.
It’s a clever way to turn a small purchase into a long chain of spending.
The Fight Against ‘Involution’: China Targets Harmful Price Wars
Beijing is sending a clear signal that it’s tired of “involution”—a slang term for hyper-competition that becomes a value-destroying race to the bottom.
The Central Financial and Economic Affairs Commission is now focused on “governing low-price disorderly competition” in key industries like automotive and photovoltaics.
The goal is to guide companies toward improving product quality and to push out backward production capacity, rather than just endlessly undercutting each other on price.
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Tech, Trends, and Consumer Chaos
Meituan vs. Alibaba: The Milk Tea Subsidy War That Broke the Internet
Last weekend, a fierce subsidy war between e-commerce giants Meituan (Meituan 美团) and Alibaba (Alibaba 阿里巴巴) exploded.
The platforms poured cash into discounts, sparking a consumer frenzy for “milk tea freedom and coffee freedom.”
Social media was flooded with screenshots of refrigerators packed with “wool-gathered” (heavily discounted) drinks.
But behind the record-breaking sales, it was an extreme stress test for the people on the ground.
Milk tea shop staff and delivery riders were completely overwhelmed, with exhaustion being their key takeaway from the weekend.
It’s a powerful case study in what happens when platforms with deep pockets decide to fight for market share in the instant retail space.
The Hot and Cold of Stablecoins
The stablecoin market is heating up, but it comes with a warning label.
Hong Kong-listed Golden Spring Investment (Jinyong Touzi 金涌投资) saw its stock price pop by an insane 650% on news of a strategic cooperation to develop stablecoins.
While the market has huge potential, insiders caution that the regulatory system is still immature, and investors should be mindful of the risks behind the hype.
Global Trade and Geopolitics
On the global stage, China continues to expand its trade relationships while bracing for potential headwinds.
- Expanding “Circle of Friends”: China is now a major trading partner for over 150 countries and regions. In the first five months of the year, exports to Africa, ASEAN, Latin America, and the EU grew by 20.2%, 13.5%, 10.6%, and 7.7% respectively.
- The Trump Tariff Question: As Trump talks about a potential Tariff Storm 2.0, global markets have been surprisingly calm. Analysts at BCA Research believe the baseline scenario is a deal where Europe accepts a 10% tariff on exports to the US, a situation they view as “manageable.”
This detailed report offers a multi-faceted view of China’s tech and finance sectors in mid-2025, highlighting a nation that is simultaneously opening its markets, fostering innovation, and grappling with the chaotic nature of hyper-growth.
- Africa: 20.2%
- ASEAN: 13.5%
- Latin America: 10.6%
- EU: 7.7%
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