China’s CPI Rises 0.5% in July as Services Prices Remain Resilient
Beijing, August 09 — China’s Consumer Price Index (CPI) rose 0.5% year-on-year in July 2026, according to data released by the National Bureau of Statistics. Urban CPI increased 0.5%, while rural prices rose 0.4%. For the first seven months of 2026, CPI increased 0.9% year-on-year on average.
Food prices fell 1.5%, while non-food prices rose 0.9%. Consumer goods prices edged up 0.2%, while service prices increased 0.7%, highlighting relatively stronger price momentum in the services sector.
On a month-over-month basis, CPI edged down 0.1%. Food prices remained unchanged, while non-food prices declined 0.1%. Consumer goods prices fell 0.6%, while service prices rose 0.4%.
Category Highlights – Year-on-Year Changes:
- Food, Tobacco & Dining: -0.8%
- Clothing: +1.4%
- Healthcare: +2.9%
- Education, Culture & Entertainment: +1.3%
- Other Goods & Services: +5.8%
- Living Goods & Services: +0.8%
- Transportation & Communication: +0.4%
- Housing: -0.3%
Data Source: https://www.stats.gov.cn/sj/zxfb/202608/t20260809_1965008.html
Over 90% of A-Share Companies Reporting H1 Results Post Profits
Beijing, August 08 — As of August 8, a total of 171 A-share listed companies had released their 2026 first-half earnings, with 156 reporting profits and only 15 posting losses, meaning more than 90% of early reporters remained profitable.
On August 8 alone, 39 companies disclosed interim results, of which 33 were profitable and six reported losses.
Earnings growth was particularly strong among some companies. A total of 75 companies recorded net profit growth of more than 50%. Yisheng Livestock & Poultry Breeding, Wenzhou Hongfeng, and PCBLOOP Technology led the rankings, with first-half net profit surging 4,897.29%, 2,521.90%, and 1,561.55%, respectively.
In absolute profit terms, 16 companies reported net profit exceeding CNY 1 billion. CATL ranked first with CNY 43.28 billion, followed by WuXi AppTec at CNY 11.08 billion and Hikvision at CNY 7.90 billion.
The early batch of interim results points to solid profitability among A-share companies that have reported so far, although the figures represent only a small portion of the overall market and may not yet reflect the broader earnings trend.
KiwiTech Semiconductor to Acquire Jingyi Semiconductor for CNY 1.65 Billion
Suzhou, August 05 — After market close on August 5, STAR Market-listed Suzhou KiwiTech Semiconductor (688693) announced plans to acquire 100% of Jingyi Semiconductor for CNY 1.65 billion, combining CNY 749 million in cash with CNY 901 million in newly issued shares. The company also plans to raise up to CNY 901 million in additional funding from qualified institutional investors.
Jingyi Semiconductor specializes in motor-drive and power-management ICs and modules. The acquisition is expected to expand KiwiTech’s product portfolio and strengthen its position across the power semiconductor value chain.
The transaction uses differentiated valuations. Shareholders providing performance guarantees, representing 56.06% of Jingyi, received a valuation of approximately CNY 1.78 billion, while external investors without such commitments were valued at roughly CNY 1.49 billion, reflecting a discount for the absence of performance guarantees.
KiwiTech’s business has already been growing rapidly. In Q1 2026, revenue reached CNY 64.8 million, up 44.5% year-on-year. Its shares also gained around 30% over three consecutive trading days, reflecting strong market expectations surrounding the restructuring.
The deal comes as regulators appear increasingly selective toward A-share M&A. The Shanghai Stock Exchange recently rejected Keda Manufacturing’s nearly CNY 7.5 billion restructuring, while another transaction by Dark Horse Venture was suspended for further review. The developments suggest greater scrutiny of valuations, target-company independence, and commercial rationale, even as strategically driven consolidation in semiconductors remains active.
Deal Structure: CNY 1.65B acquisition → CNY 749M cash + CNY 901M shares → 100% ownership of Jingyi Semiconductor → strengthens KiwiTech’s power semiconductor portfolio.
Unitree Sets A-Share IPO Price at CNY 150.80 as China’s Robotics Sector Heats Up
Hangzhou, August 07 — On August 7, humanoid robotics company Unitree Technology set its A-share IPO price at CNY 150.80 per share, marking a major milestone in the capitalization of China’s rapidly expanding humanoid robotics industry.
Notably, DeepSeek and Tencent participated in the strategic placement, underscoring the growing convergence between artificial intelligence and robotics. China’s humanoid robotics ecosystem is expanding rapidly, with 116,000 new related companies registered in the first half of 2026, up 9.5% year-on-year.
In another major technology development, China’s Cybersecurity Review Office announced a cybersecurity review of products sold domestically by U.S.-based Palo Alto Networks. The review, conducted under China’s National Security Law and Cybersecurity Law, aims to assess potential risks to critical information infrastructure. It marks the first time China’s cybersecurity review mechanism has explicitly targeted a foreign cybersecurity vendor.
Meanwhile, the People’s Bank of China renewed its bilateral local-currency swap agreement with the Central Bank of Argentina, maintaining the facility at CNY 130 billion / ARS 28 trillion for another five years. The agreement is intended to support bilateral trade and deepen financial cooperation.
China’s manufacturing sector also remained resilient. According to the China Machinery Industry Federation, value-added output among machinery companies above designated size increased 6.4% year-on-year in the first half, with growth in key industry indicators expected at around 5.5% for the full year.
Shenzhen Trade with APEC Economies Surges 33% Ahead of 2026 APEC Meetings
Shenzhen August 08 — On August 8, Shenzhen held an APEC 100-Day Countdown Media Tour, highlighting the city’s expanding role as a gateway connecting China with Asia-Pacific markets.
In the first half of 2026, Shenzhen traded with more than 240 countries and regions. Exports to Belt and Road markets rose 16.7% year-on-year, while exports to other APEC economies jumped 33%. During the first seven months, 850,000 foreign nationals from APEC economies passed through Shenzhen airport checkpoints, up 32% and reaching a record high.
Trade infrastructure continues to expand. Yantian Port, which handles roughly half of Shenzhen’s foreign trade, processed more than 8.35 million TEUs in H1 and added 11 new international shipping routes connecting APEC markets this year. Meanwhile, Shenzhen’s GoGlobal e-Station has served more than 1,900 companies and facilitated 224 overseas investment projects.
Inbound consumption is also gaining momentum. Shenzhen’s tax-free sales eligible for departure tax refunds surged 130% in H1, supported by around 2,680 designated stores, with locally manufactured technology products among the leading categories.
More broadly, China’s emerging industries continue to expand rapidly. According to the State Administration for Market Regulation, around 600,000 new companies were registered across major emerging and future industries in H1, including 55,000 in generative AI and 116,000 in humanoid robotics.
China’s export momentum also remained strong, particularly in automobiles. In July, the laden weight of outbound RoRo vessels increased 87.1% year-on-year, reflecting continued growth in vehicle exports. However, Typhoon Bailu approaching China’s southeastern coast has triggered evacuations and weather alerts, creating potential near-term disruptions to regional logistics and supply chains.