Hi everyone. I’m Stephanie LI.
Coming up on today’s program
Post-gaokao economy sweeps the country with shopping and travel spree, fueled by government and industry subsidies;
Guangdong motorists can apply for HK entry permits from November.
Here’s what you need to know about China in the past 24 hours
With the results of China's national college entrance exams, or gaokao, now released, a significant wave of spending is sweeping the nation as 13.35 million high school graduates and their families embrace what has been dubbed the "post-gaokao economy".
The purchasing of the "tech trio" — smartphones, laptops and tablets — has become a near-universal ritual, often seen as a reward or necessities for university preparations. E-commerce platform JD.com reported that the sale of electronics during the "618" shopping festival, which coincides with the post-exam period, jumped 45 percent, accounting for half of all sales.
Governments and manufacturers are offering subsidies to encourage purchases. In Suzhou, Anhui province, combined national subsidies and vendor discounts could save graduates up to CNY800 yuan on a single phone. The city reported more than 77,000 subsidized transactions worth CNY280.7 million.
Meanwhile, graduates are also marking the end of high school with celebratory travel. Tongcheng Travel reported that bookings surged 137 percent year-on-year in the period after the exams, with long-distance travel particularly popular. Bookings on travel platform Qunar rose 35 percent.
China expects to set a new record high for air passenger traffic this summer. Airlines may handle 150 million passengers this month and next, a 7 percent increase from a year earlier and an all-time high for the summer season, according to a forecast by the Civil Aviation Administration of China. Daily passenger volume could peak at 2.6 million, surpassing the previous record of 2.48 million set during the Chinese New Year holiday on Feb. 3.
Rising demand is already evident in ticket bookings. As of June 26, domestic bookings for July had reached 17.9 million, up 5 percent on the previous year. International bookings rose 14 percent to 7.7 million, according to data from Umetrip.com, a flight information website.
GBA express
Guangdong motorists will be able to drive their own vehicles to Hong Kong from November, with a daily cap of 100 applications, Hong Kong’s transportation chief said on Wednesday. The southbound cross-border driving program, as a reciprocal arrangement of the Northbound Travel for Hong Kong Vehicles program implemented in July 2023, is expected to benefit various industries in Hong Kong and create more regional synergy. It will allow Guangdong vehicles with only Chinese-mainland-issued plates to enter the city through the Hong Kong-Zhuhai-Macao Bridge.
The nation’s first domestically built aircraft carrier, the CNS Shandong, sailed into Hong Kong Special Administrative Region waters on Thursday on its maiden visit to the city, accompanied by a powerful escort fleet. It makes Hong Kong the only city to have played host to two serving Chinese carriers, following CNS Liaoning’s 2017 visit for the handover’s 20th anniversary. The PLAHK garrison has distributed 10,000 free tickets through its WeChat account, with 2,000 allocated for tours of the Shandong anchored near Victoria Harbour.
Luxshare Precision, a Guangdong-based electronics manufacture and a major Apple supplier, is planning to list on the Hong Kong Stock Exchange, according to its announcement released on Wednesday on the Shenzhen Stock Exchange. The company went public in Shenzhen in 2010.
Industry and company news
Synopsys said it received a notice from the US Department of Commerce that export curbs to China have been revoked, with the electronic design automation software supplier working to resume sales there. Some Chinese semiconductor companies told media they also got confirmation from overseas EDA firms.
Popular Chinese coffee chain Luckin ventured into Starbucks territory, opening its first two outlets in the US with splashy debuts in New York City. Drinks were priced as low as USD1.99.
CATL, the world's biggest maker of EV batteries, began operation of its first production lines based inside a carmaking factory. Two CATL assembly lines at Seres Group's mega-factory in Chongqing will make power cells for the group's premium EV brand Aito, which was developed in partnership with Huawei.
Chinese lithium battery maker Eve Energy opened a CNY10 billion facility in the northeastern city of Shenyang to develop electric car batteries capable of enduring extreme cold.
China's central bank will require reporting of large cash purchases of gold under new anti-money laundering rules. According to the People's Bank of China, gold transactions of CNY100,000 or more in cash must be reported to a designated agency within five days, effective August 1.
The Chinese mainland’s three major stock exchanges stepped up the pace of approvals for IPOs last month. The Beijing, Shanghai, and Shenzhen bourses accepted 150 IPO filings in June, compared with 77 in 2024. The cumulative total for the first half of this year is 177.
Asia-Pacific highlights
Chinese bike-sharing firm HelloRide received approval from Singapore's Land Transport Authority to expand its fleet from 15,000 to 20,000 bicycles. Launched in 2022 with just 1,000 bikes, HelloRide's Singapore venture is a natural fit for a city that restricts downtown car traffic. The city now has licensed use of 55,000 share bikes, with local operator Anywheel managing 35,000 of them.
JD Property has partnered with Abu Dhabi Airport Free Zone to jointly develop and operate a 70,000-sqm, high-standard logistics infrastructure, marking the JD.Com-backed property service provider's first self-constructed project in the Middle East, media reported today.
The economic cooperation between China and Laos will not only enhance the connectivity of the two countries but also bring shared benefits for the whole of Southeast Asia, a Laotian business leader told Chinese media. Laos and China have formed a close political partnership, and now it is time to develop their economic relations as well and involve all the stakeholders from both countries, said Oudet Souvannavong, president of the Lao National Chamber of Commerce and Industry. "The connectivity between Laos and China will also enhance further connectivity of the rest of Southeast Asia," he said. With improved transport infrastructure and logistics including the China-Laos Railway, Oudet said it supports Laotian manufacturing, agriculture, and tourism alongside the railway. In addition, Vietnam's planned railway project to connect with China will further increase regional connectivity, which will create a boost for industries, said Oudet, adding that Laos is planning to build another railway to connect Vietnam.
