China stocks near 2022 high on construction, rare earth gains
The Shanghai Composite index added 0.7% to 3,559.79, its highest closing since January 2022. China's blue-chip CSI300 index also gained 0.7%. Leading the gains onshore, the CSI Construction & Engineering Index rallied 4.3% to a seven-month high after China began construction of a $170 billion hydropower dam in Tibet.
The project is macro relevant and could provide some demand support, likely easing concerns on growth and the labor market marginally, Citi analysts said in a note.
Also lifting markets, the rare earth sector advanced 3.2% following a Reuters report that Beijing has quietly issued its first 2025 rare earth mining and smelting quotas.
In Hong Kong, the benchmark Hang Seng Index grew 0.7% after briefly topping the 25,000 level for the first time since February 2022.
Platform companies Meituan, JD.com and Alibaba rose between 1.8% and 2.7% after Beijing summoned the three and asked them to cool a bruising price war, a move dubbed by investors as an 'anti-involution' campaign.
Positive catalysts from anti-involution policies and strength in the tech sector have lifted sentiment, which together with a solid economic foundation have fuelled the market rally that's surprising in its timing yet reasonable, Huatai Securities said.
Looking ahead, Chinese policymakers are expected to hold the July Politburo meeting in the coming days to discuss economic policies for the second half of this year.
Goldman Sachs analysts said they don't expect broad-based, significant stimulus in the near term, but anticipate continued policy pledges to regulate disorderly price competition and contain the 'involution'.
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Express Tribune
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Ancient wisdom and China's national power
Listen to article "Give the bully an inch [and] he will take a mile," Chinese ambassador to India Xu Feihong said in response to the Trump administration's latest tariffs' hike on India. Then came an unusual support for India from the ministry of foreign affairs, which criticised the US doubling of the tariffs as the "abuse of tariffs." It also justified this by saying "Beijing's opposition to the abuse of tariffs has been consistent and clear." Global Times also slammed Washington's 50% tariffs as "punishment for India's independent foreign policy." The US treats India as expendable not a guest at the table, but an item on the menu," the paper said. These latest messages out of the Chinese capital should not be surprising at all. They reflect self-confidence and a sense of inherent economic strength and socio-political power of a nation that boasts thousands of years of civilisation rooted in ancient wisdom. That ancient wisdom in fact constitutes the foundation of China's national power today. Its reaction to Donald Trump's tariff aggression against India proves it again. The approach reflects consistency, pragmatism, concern for others and a strong belief in cooperation instead of coercion. Is it China's national power what actually drives its political economy? Science and technology, hard work, the Communist Party or consistency of policies? Or does this national power flow from something deeper, rooted in history? Most probably. Here is a synopsis of why - and this is based on multiple conversations with Chinese officials, intellectuals and academics. China distinguishes itself through civilisational values that are thousands of years old. The Chinese pride rests on a fully documented history dating back 5000 years. This helps the Chinese double-check certain historical acts and draw on the ancient wisdom — etched in books for thousands of years. Several social values — reflective of that wisdom - have traveled through generations and seem to guide the socio-politic conduct of the Chinese. Most Chinese take pride in the knowledge that their ancestors (Confucius, General Sun Zu, the author of the iconic military literature The Art of War) left behind. Let us recap some of those values that constitute an element of the present Chinese political philosophy. Humility is the hallmark of the old wisdom. We are all prone to make mistakes but humility — a deeply ingrained trait of the Chinese character — makes you admit to their mistakes. Admission of guilt can save you many embarrassments. This also helps in introspection and to learn for course correction. Interestingly, a debate in China following the brief India-Pakistan confrontation in May and the string of Indian government's contradictions accompanying it also provided a glimpse into the Chinese way of thinking. "Why don't they admit the loss of aircraft instead of being humiliated in public and in the parliament where MPs are talking about at least five Indian jets lost in the May 7 air battle," asked a friend in Shanghai. Secondly, the conventional thrust on peaceful conflict-resolution — as advocated by Confucius — rang through recent debates. Most academics wonder why India fails to realise that military means don't sustainably resolve political issues. The third component of the ancient relates to deep reflection on personal and national conduct. The bigger and stronger — a metaphor both for persons and nations — should treat the smaller and weaker with kindness and restraint. And the smaller and the weaker — person or nation — should handle the bigger with wisdom and deference, so dictates the Chinese wisdom. Fourth, care about people. The way the Communist Party of China and successive leaders have cared about people at large also seems to be driven by an ancient saying wherein political philosophers likened the king to a boat and the people to a sea. If the sea is restless it can sink the boat, meaning thereby that the king/government must be mindful of the people's needs. The Chinese Communist Party (CCP), the anchor of the country's political philosophy, therefore often invokes Confucian ideas — like respect for authority, filial piety, and social harmony — to promote unity and social stability. These ideas are framed as part of a broader narrative of "Chinese values" or "traditional culture" that distinguishes China from the West. President Xi Jinping, for example, often references "harmonious society", a concept with Confucian roots, to justify centralised governance and social order. The fifth component of the ancient wisdom — that is a cardinal pillar of the present day political economy — is the cultural identity as embodied by Confucius. The revival of and focus Confucianism helps reclaim Chinese cultural identity in the post-Mao era. The global network of Confucius Institutes (named after Confucius) promotes Chinese language and culture abroad, positioning Confucian thought as a symbol of Chinese heritage. Modern Chinese politics, therefore, draws on Confucius — to reinforce state authority, shape national identity and promote social values aligned with the state goals. That lends an incredible strength to China of 2025 — a country guided by the CPC with the help of the Confucian thought that has made great strides and is set to rise to new heights on the back of what is a blend of ancient thought and modern practices.
Express Tribune
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Tesla to streamline its AI chip design work, Musk says
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JD Vance rules out US recognition of Palestinian state
US Vice President JD Vance and British Foreign Secretary David Lammy shake hands at Chevening House in Sevenoaks, Britain, August 8, REUTERS Listen to article US Vice President JD Vance reiterated that Washington had no plans to recognise a Palestinian state, questioning the meaning of recognition 'given the lack of a functional government there.' Britain and the United States may disagree on how to address the Gaza crisis but share common goals in the region, US Vice President JD Vance said Friday at the start of talks with British Foreign Secretary David Lammy in southern England. Vance, who has previously criticised Britain's governing Labour Party, arrived in London with his wife Usha and their three children before heading to Chevening, the red-brick country residence used by the British foreign minister. Read More: PM condemns Israel's plan to seize Gaza as illegal, illegitimate Appearing before reporters, the two leaders displayed a warm rapport, with Lammy recommending a coastal walk in Kent and Vance professing his 'love' for Britain. Policy differences Asked about Britain's plan to recognise Palestine, Vance said the US and UK shared a goal of resolving the Middle East crisis but differed on methods. 'We may have some disagreements about how exactly to accomplish that goal, and we'll talk about that today,' he said. Britain, by contrast, intends to recognise Palestine along with France and Canada to pressure Israeli Prime Minister Benjamin Netanyahu over the Gaza conflict and humanitarian crisis. Personal diplomacy Earlier Friday, Vance and Lammy went fishing in the lake behind Chevening House, joking with reporters about their catch — or lack thereof. 'Before beginning our bilateral, the Vice President gave me fishing tips, Kentucky style,' Lammy wrote on X. Also Read: Global outcry as Israel moves to take control of Gaza City The Vances will spend two nights at Chevening before travelling to the Cotswolds, a popular retreat for political and cultural figures. Wider agenda The visit comes amid heightened transatlantic tensions, political shifts in both countries, and increased focus on Vance's foreign policy views as a key figure in President Donald Trump's administration. The trip is described as a working visit, with official meetings, cultural site visits, and a planned meeting with US troops. The war in Ukraine will also be on the agenda. Protests Near Chevening House, a small group of protesters gathered, some waving Palestinian flags and one holding a sign featuring a meme of a bald Vance.
