Chinese Banks Begin Using DR001 as Bond Pricing Benchmark After PBOC Push
Chinese banks are increasingly adopting the overnight repo rate, or DR001, as a benchmark for pricing bonds, following the People's Bank of China's push to make it a new reference rate to enhance monetary policy transmission. China Merchants Bank is set to issue a three-year floating-rate bond this week, using this rate as the benchmark, aiming to raise up to 2 billion yuan, or about 298 million US dollars. This will be the first time a domestic Chinese commercial bank uses DR001 for a debt instrument, after the Export-Import Bank of China became the first financial institution to use this benchmark. This move follows several Chinese banks beginning to use DR001 to price loans, aligning with the PBOC's direction to promote this rate as a key mechanism for monetary policy transmission. Currently, the popular benchmarks for Chinese floating-rate bonds include the 7-day repo rate, the Loan Prime Rate (LPR), and the Shanghai Interbank Offered Rate (SHIBOR). Becky Liu, head of Greater China strategy at Standard Chartered Bank, views this change as supporting the transition to a new interest rate framework and could open room for the PBOC to ease monetary policy further, if it helps maintain banks' net interest margins. Meanwhile, Shanghai Clearing House stated that issuing bonds linked to DR001 will expand the channels for transmitting interest rates from the money market to the bond market, and aligns with global market practices that favor overnight risk-free rates as benchmarks.
OCBC says trade risks limit yuan gains against dollar
OCBC analysts Sim Moh Siong and Christopher Wong say potential US tariffs on Chinese goods and the People's Bank of China's resistance to rapid renminbi gains are likely to limit further downside in USD/CNH.
China builds dollar hedge as U.S. threatens sanctions over Iran
The U.S. is threatening to cut Chinese banks off from the American financial system if they help Iran evade sanctions, while Beijing is building a hedge against Washington's dollar dominance. Treasury Secretary Scott Bessent announced Monday that any entity facilitating money laundering or sanctions evasion on behalf of Iran risks being cut off from the U.S. financial system, and when asked about Chinese banks he said they will be targeted if they facilitate transactions that turn Iranian oil into money. China said Tuesday it would take all necessary measures to protect itself, and analysts note that China's Cross-Border Interbank Payment System, or CIPS, shows Beijing is trying to diversify from dollar-centered finance without abandoning it altogether. The U.S. dollar still accounted for over half of global payments in July, while China's yuan ranks fifth at 3.1%, according to Swift, and in trade finance the dollar accounted for nearly 80% that month while the yuan ranked second at 8.4%. Analysts say China definitely wants to stay in the dollar system which benefits its trade engine, but that doesn't mean it will do everything to comply with expanding U.S. sanctions.
After resuming 7-day reverse repos, the People's Bank of China stepped up liquidity injections, conducting 340 billion yuan of 7-day reverse repo operations on August 24, achieving a net injection of 340 billion yuan. The central bank also pre-announced on the same day that it would conduct a 500 billion yuan one-year medium-term lending facility operation via fixed quantity, interest rate bidding, and multiple price winning, and would carry out overnight reverse repo operations from August 27 to September 1, with daily operation volume not exceeding 600 billion yuan. This marked the second consecutive working day of injections after the central bank resumed 7-day reverse repo operations. Previously, on August 21, the central bank conducted 95 billion yuan of 7-day reverse repo operations, ending eight consecutive working days of zero net injection. Multiple institutions believe that the central bank's recent flexible mix of overnight and 7-day reverse repo tools reflects more precise liquidity management, aiming to protect funding conditions and prevent excessive upward movement in funding rates, while also guiding funding rates closer to the policy rate.
UOB targets 6.7200 for Chinese yuan against US dollar
United Overseas Bank strategists Quek Ser Leang and Lee Sue Ann maintain a downside bias on USD/CNH after the pair dipped to 6.7180 and closed near 6.7210. They see the Chinese yuan strengthening toward the 6.7200 level against the US dollar.
OCBC sees gradual yuan appreciation bias against dollar
OCBC analysts Sim Moh Siong and Christopher Wong say the Chinese yuan remains supported by a softer US dollar and exporter conversion, but the People's Bank of China is signaling a preference for gradual gains through its daily fixing.
China's central bank signals a slowdown in yuan appreciation
China's central bank has signaled it will slow the yuan's appreciation after the Chinese currency hit its strongest level in more than three years. It set the daily reference rate at 6.7808 yuan per dollar, which was 598 pips weaker than the average forecast by analysts and traders in a Bloomberg survey, the widest gap since February. The move reflects that the PBOC wants to curb overly rapid appreciation by using the daily fixing mechanism as a signaling tool to the market. The offshore yuan strengthened to its highest level since February 2023 amid pressure on the US dollar, after investors scaled back expectations that the Fed would raise interest rates further and the US Treasury announced plans to increase the size of long-term government bond buybacks. Wee Khoon Chong, senior Asia-Pacific market strategist at BNY in Hong Kong, said he remains positive on the yuan over the medium term but expects the pace of appreciation to slow, noting that China's slowing economy, continued portfolio outflows, and rising demand for currency hedging are becoming greater headwinds for the yuan. However, China's large current account surplus remains a key fundamental factor supporting the yuan over the medium term.
China's central bank holds LPR for 15th month despite slowing economy
China's central bank decided to keep the one-year loan prime rate, or LPR, at 3 percent and the five-year LPR at 3.5 percent at today's meeting, marking the 15th consecutive month of unchanged rates and matching market expectations. Analysts view the rate hold as a sign that Chinese policymakers may rely more on accelerating fiscal spending than on a new round of monetary easing to support economic growth, while Chinese commercial banks still face narrowing margins near record lows. The central bank said last week that it would maintain appropriately accommodative monetary policy and take effective measures as needed, but it has not given a clear signal about cutting policy rates or reducing banks' reserve requirement ratios, even though July data pointed to economic weakness from sluggish domestic demand, including industrial output, retail sales, and loan growth.
China expands e-CNY network, adding 20 banks to reach 30
China is pressing ahead with expanding its digital yuan network, e-CNY, this year by adding 20 more participating banks, bringing the total number of banks in the network to 30. The People's Bank of China, or PBOC, is driving this expansion of the central bank digital currency, or CBDC, network. The addition of 20 new banks to the existing ones reflects efforts to accelerate wider use of e-CNY.
China bond yields fall against global trend as investors pile into long-dated debt
China's long-dated government bond yields have kept falling, bucking a global bond selloff that has pushed yields elsewhere to multi-year highs. The 30-year yield dropped to its lowest since November last year, narrowing the spread between 10-year and 30-year bonds to 50 basis points, near the tightest since February this year. Open interest in 30-year bond futures hit a record high on Friday, reflecting heavy speculation that Chinese yields will fall further. Analysts at Zhongtai Securities view the narrower 10-30 year spread as offering the best risk-reward balance for the rest of this year and expect the 30-year yield to fall to 2%. Weak Chinese economic data for July, with industrial output, retail sales and investment all missing expectations, has reinforced bets that Beijing will ease policy further. Investors have piled into longer-dated bonds, reflecting a view that China's economy may face a prolonged slowdown, in contrast with many countries where interest rates remain high. The 10-year US Treasury yield hit its highest since 2025 this week, while long-dated bonds globally have come under selling pressure. Analysts at Shanze Fund explained that the recent bond rally has been driven mainly by short-term trading books rather than long-term investment portfolios. If the market expects further monetary easing in China and liquidity remains loose, the spread between 10-year and 30-year yields could narrow toward 40 basis points. Chinese government bonds have returned 2.6% since the start of the year excluding currency effects, putting China third among major bond markets. The 30-year yield held at 2.15% on Wednesday, near the nine-month low reached the previous day. Demand for bonds remains strong, with a 20-year special government bond auction today drawing a record bid-to-cover ratio.
TCL Smart Home first-half net profit 512 million yuan, down 19.88% year on year
TCL Smart Home disclosed its 2026 half-year report. In the first half, total operating revenue reached 9.934 billion yuan, up 4.83% year on year. Net profit attributable to shareholders of the listed company was 512 million yuan, down 19.88% year on year. Basic earnings per share were 0.47 yuan. The company said the core reason for the change in net profit was exchange losses of 198 million yuan caused by RMB appreciation, with losses up 280 million yuan year on year.
Hong Kong FX trading sees US dollar/yuan take top spot for first time in April, overtaking Hong Kong dollar/US dollar
According to a semi-annual survey by the Hong Kong Financial Markets Association, the US dollar/Chinese yuan pair overtook the Hong Kong dollar/US dollar pair for the first time in April to become the most traded currency pair in Hong Kong's foreign exchange market. Average daily foreign exchange turnover in Hong Kong rose to 908.2 billion US dollars in April, with average turnover in the US dollar/yuan pair expanding to 274 billion US dollars, accounting for about 30.2% of the total. In the previous survey, the figure was 198.6 billion US dollars. Average turnover in the Hong Kong dollar/US dollar pair also increased, reaching 240.2 billion US dollars. Amid rising geopolitical tensions, the Chinese and Hong Kong governments have rolled out a series of measures to strengthen currency, bond, and gold trading in Hong Kong, stepping up efforts to establish the city as a major hub for offshore yuan trading.
Deutsche Bank becomes first European renminbi clearing bank in Frankfurt
Deutsche Bank has been appointed by the People's Bank of China as a renminbi clearing bank in Frankfurt, making it the first European bank to receive the designation. The German lender will provide direct end-to-end processing, clearing and settlement services for cross-border renminbi transactions for European companies and financial institutions, aiming to give European businesses more direct access to China's onshore financial system. The move supports China's push to expand use of the yuan in trade and investment, building on Deutsche's participation in China's Cross-Border Interbank Payment System since 2015. The appointment strengthens Deutsche's role as a global clearing partner and adds another piece to China's yuan internationalization puzzle, though the currency still faces challenges in becoming a widely held reserve asset.
Analysts expect yuan to strengthen to 6.70–6.73 per dollar in September
Analysts expect the Chinese yuan could strengthen against the US dollar in September, potentially reaching 6.70 to 6.73 per dollar, driven by seasonal factors such as typically stronger exports, the end of the dividend payment season, and a weaker dollar if US inflation data comes in below expectations, reducing the likelihood of further Fed rate hikes. Over the past month, the offshore yuan has moved in a range of just 560 pips, compared with a monthly average of about 845 pips in 2026, reflecting sluggish trading partly due to the People's Bank of China's daily reference rate being weaker than expected for more than four consecutive months, the longest stretch since Bloomberg began compiling data in 2018. Carie Li, a strategist at DBS Bank, estimates the yuan could strengthen to those levels if US inflation is lower than expected, while BNY and Bloomberg Intelligence also see a stronger yuan. Wee Khoon Chong, senior Asia-Pacific market strategist at BNY, notes the dollar-yuan pair is likely to decline on dollar weakness, but the yuan's strength has not yet coincided with a broad-based recovery in China's economy. Stephen Chiu, head of emerging market strategy at Bloomberg Intelligence, sees Chinese export orders likely increasing, especially for electronics, which will support the export sector and the yuan, and expects September could be the point when the yuan starts to move decisively again.
People's Bank of China Vows to Expand International Use of the Renminbi in Five-Year Plan
In a five-year plan released on the 10th, the People's Bank of China laid out a policy to keep the renminbi exchange rate basically stable and expand the use of the renminbi in international trade and investment. It also stated that it will resolve risks in key areas, strengthen financial support to boost consumption, and steadily promote high-level opening-up of the financial sector.
China sets yuan central parity rate weaker at 6.7895 per dollar
The China Foreign Exchange Trading System set the yuan central parity rate weaker by 0.0006 yuan today, at 6.7895 yuan per US dollar. In China's foreign exchange market, the yuan is allowed to move within a band of no more than 2 percent from the daily central parity rate. The central parity rate is based on a weighted average of prices before the interbank market opens.
UOB sees Chinese yuan gradually strengthening toward 6.7300 against US dollar
United Overseas Bank analysts Quek Ser Leang and Lee Sue Ann report that the offshore yuan slipped to 6.7459 per dollar after failing to extend a modest bounce, with limited downside momentum. They see potential for the pair to test last week’s low of 6.7420 intraday but doubt a sustained break below that level.
mBridge Project Moves Closer to Commercial Launch, Pushing Digital Yuan into Cross-Border Payments
The mBridge project, a cross-border digital currency initiative developed by multiple central banks, is moving closer to commercial use, helping to propel China's digital yuan into the international payment system. The project is a collaboration between the central banks of China, Hong Kong, Thailand, and the United Arab Emirates, together with the Bank for International Settlements, aiming to build a platform for cross-border transfers using central bank digital currencies. The latest development marks a significant step that will give the digital yuan a greater role in the global financial system and could help reduce reliance on traditional payment networks such as SWIFT.
Hong Kong Officially Launches Trading of 5-Year China Government Bond Futures
Hong Kong officially began trading 5-year China government bond futures on Monday, marking China's third attempt to introduce risk management tools to further open its bond market to foreign investors and support the internationalisation of the renminbi. The September delivery contract opened at 106.685 yuan per contract before rising to 107.730 yuan, with each contract valued at 500,000 yuan and cash-settled. The opening price was close to the onshore China market level of 106.545 yuan, reflecting that the domestic market still sets the main direction. Li Yue, Vice President of Debt Capital Markets at ICBC International, expects that if the contract builds sufficient liquidity and a solid trading track record, regulators will gradually launch additional China government bond futures with other tenors. Meanwhile, Vikas Gupta, Head of Asia and Emerging Markets Macro Trading at JPMorgan Chase, noted that this futures contract will serve as an effective interest rate risk management tool for the Dim Sum bond market, as it helps separate interest rate risk from credit risk. Foreign investors' holdings of China government bonds have risen from around 450 billion yuan in mid-2017 to 2 trillion yuan as of June 2026, while the yield on the 5-year bond has stabilised at 1.41%, its lowest level since February 2025.
PBOC to Adjust Policy Tools in a Timely Manner, Boost Panda Bond Issuance
The People's Bank of China has indicated it will adjust monetary policy tools in a timely manner and promote the issuance of panda bonds. At a working meeting to set the policy direction for the second half of the year, it confirmed it will continue a moderately accommodative monetary policy and maintain ample liquidity. It will also provide financial support to resolve debt risks of local government financing vehicles and promote their market-oriented transformation. Furthermore, it outlined plans to strengthen cross-border and offshore financial services in Shanghai and solidify Hong Kong's status as an offshore renminbi trading hub.
China's yuan midpoint set at weakest bias against market forecasts in five months
The People's Bank of China on the 31st set the yuan's daily midpoint against the dollar at a level significantly weaker than market expectations, with the deviation reaching its widest in five months. The midpoint was fixed at 6.7894 per dollar, 581 pips weaker than Reuters' estimate of 6.7313, marking the largest downward bias since February 27. The central bank has been setting the midpoint on the weaker side of market forecasts since November last year, a move analysts and traders view as aimed at maintaining currency stability and preventing excessive yuan appreciation.
Shanghai Composite opens down 16.36 points on profit-taking
The Shanghai Composite Index opened down 16.36 points, or 0.42%, at 3,812.11 today, pressured by profit-taking after yesterday's positive close. The People's Bank of China injected 206.5 billion yuan of short-term liquidity via seven-day reverse repos at an interest rate of 1.40%, and added another 600 billion yuan through overnight instruments to ease funding tightness and support risk-asset investment.
Shanghai Composite closes up 15.15 points on PBOC liquidity injection
The Shanghai Composite Index closed up 15.15 points after China's central bank injected additional short-term liquidity into the financial system, ending at 3,828.47 points, a gain of 0.40%. The People's Bank of China conducted seven-day reverse repo operations worth 206.5 billion yuan at an interest rate of 1.40%, and injected another 600 billion yuan through overnight instruments, following an earlier announcement of overnight operations totaling 2.1 trillion yuan during the period from July 29 to August 3. Meanwhile, the US Federal Communications Commission expanded restrictions on imports of goods related to Chinese companies, particularly in the robotics and power inverter sectors, which continues to raise concerns over policy factors.
Zhonghong Medical's first-half net profit forecast to surge over 23-fold; shares hit upper limit
Zhonghong Medical hit the daily upper limit on July 29, with over 170,000 lots locked at the limit, closing at 12.85 yuan per share and a total market value of 5.511 billion yuan. The company released an earnings forecast on the evening of July 28, estimating first-half net profit of 140 million to 210 million yuan, a year-on-year increase of 2,338% to 3,557%. The sharp rise in performance was mainly due to higher selling prices for health protection gloves, a significant increase in product gross margins, and enhanced profitability through cost reduction, efficiency gains, and management optimization. In addition, the fluctuation of the yuan against the US dollar during the reporting period resulted in substantial exchange losses; excluding this impact, the improvement in operating performance would be even greater.
OCBC sees USD/CNH rangebound near term with PBoC fix around 6.79
OCBC strategists Sim Moh Siong and Christopher Wong expect the offshore Chinese yuan to trade in a broad range against the US dollar in the near term. The daily People's Bank of China fixing is clustered around 6.79 and is acting as an anchor rather than a directional signal for the pair.
Three Major Chinese Banks Begin Lending Based on Repo Rate Instead of LPR
Three major Chinese banks, Industrial and Commercial Bank of China, China Merchants Bank, and Shanghai Pudong Development Bank, have started trialing the interbank repo rate as a benchmark for setting loan interest rates, replacing the sole use of the Loan Prime Rate. This marks a significant step in China's loan rate reform. All three banks have already issued their first loans referencing the repo rate. ICBC extended a one-year loan of 76.7 million yuan to a foreign company, SPDB lent 7 million yuan to a state-owned enterprise, and China Merchants Bank provided approximately 8 million yuan in credit. The shift reflects greater flexibility for Chinese commercial banks in determining borrowing costs amid sluggish credit demand, and helps interest rates better reflect actual funding costs. This comes after money market rates and bond yields fell faster than the LPR in recent years. The People's Bank of China signaled support for this approach in its May monetary policy report, noting that many countries have developed multi-benchmark loan pricing systems to more accurately reflect funding costs and credit risk.
China's Central Bank Injects 500 Billion Yuan in Liquidity, Highest in Five Months
China's central bank injected 500 billion yuan of liquidity into the financial system through the MLF program, marking the largest injection in five months, to support the economy ahead of the Politburo meeting. The amount exceeded maturing loans, resulting in a net injection of 100 billion yuan. Combined with an earlier injection of 700 billion yuan through three-month and six-month reverse repo transactions at the start of the month, July saw a total medium-to-long-term liquidity injection of 1.2 trillion yuan, the highest level since February. Hui Shan, chief China economist at Goldman Sachs, estimates that the Politburo meeting is likely to signal further economic policy easing, with the government possibly accelerating the disbursement of existing fiscal measures, including an 800 billion yuan policy loan program.
US puts Thailand, China, Japan and 7 others on currency watchlist
The US Treasury Department has kept Thailand, China, Japan and seven other major trading partners on its currency monitoring list. In its semi-annual report submitted to Congress on Thursday, July 23, it found no country had manipulated its currency to the point of facing sanctions. The seven other countries on the watchlist are Germany, Ireland, Singapore, South Korea, Switzerland, Taiwan and Vietnam. The assessment criteria include a bilateral trade surplus with the US of at least 15 billion dollars, a current account surplus of at least 3 percent of GDP, and persistent one-sided intervention in foreign exchange markets. Countries meeting two of the three criteria are placed on the list. The report noted that China remains notable for its lack of transparency in exchange rate policy, while Japan has not intervened in currency markets and is particularly transparent in its data disclosures, while also highlighting the yen's continued depreciation despite narrowing interest rate differentials.
China’s Gold Imports Hit Two-Year High in June After Price Slump
Chinese gold imports surged to a two-year high of about 173 tons in June, the third straight monthly increase and the highest since March 2024, according to customs data. Cheaper international prices and a stronger yuan kept investors interested, while banks were motivated to use up import quotas and stock up on bullion to meet retail commitments. Zijie Wu, an analyst at Jinrui Futures Co., said dip-buying by investors was an important demand driver, and commercial banks needed to build inventories to back retail bullion sales and gold accumulation plans. Bullion-backed exchange traded funds have also seen net inflows of around 28 tons this year, according to the Shanghai Gold Exchange. A new licensing regime from June 1 likely encouraged banks to exhaust existing quotas, and some shipments booked earlier may have only registered in June due to financing, transportation, and customs paperwork delays.
China sets yuan central parity rate weaker at 6.7939 per dollar
The China Foreign Exchange Trade System set the yuan central parity rate weaker by 0.0033 yuan to 6.7939 per US dollar today. In China's foreign exchange market, the yuan is allowed to move no more than 2 percent from this central parity rate, which is based on a weighted average of prices before the interbank market opens each day.
Haineng Industrial reports higher revenue but lower profit in first half, expects loss of up to 22 million yuan
Haineng Industrial issued a performance forecast, estimating first-half 2026 revenue at 1.803 billion yuan, up 19.79 percent year-on-year, but net profit is expected to show a loss of 12 million to 22 million yuan, a year-on-year decline of 115.55 percent to 128.51 percent. The company said the appreciation of the renminbi caused exchange losses, core raw material procurement costs continued to climb, and there is a time lag in passing cost increases on to customers. It will actively negotiate price adjustments with clients. The company already fell into the pattern of higher revenue but lower profit in the first quarter, with revenue of 853 million yuan up 25.52 percent, while net profit attributable to the parent company was a loss of 9.6857 million yuan. Overseas business accounts for 82.80 percent of revenue, but capacity utilisation at its factory in Hai Duong, Vietnam, is only about 5 percent. The share price has fallen 30.56 percent this year. The company has launched a buyback programme of 50 million to 100 million yuan, and as of June 30 had repurchased a cumulative 4.205 million shares.
United Overseas Bank strategists Quek Ser Leang and Lee Sue Ann say downside momentum in USD/CNH is building after the pair fell to 6.7653, with a chance of testing major support at 6.7600 intraday as long as it stays below 6.7780.
Europe questions yuan undervaluation and trade gap, says Rabobank
Rabobank's Michael Every reports that German Chancellor Merz has called for dialogue with China on monetary and foreign exchange policy, arguing the Chinese yuan is 20 to 30 percent undervalued and should float more freely.
Qianjiang Motorcycle expects attributable net profit for the first half of 2026 to fall 59.15% to 66.57% year-on-year
Qianjiang Motorcycle has released its performance forecast for the first half of 2026, expecting attributable net profit to be between 90 million and 110 million yuan, a year-on-year decline of 59.15% to 66.57%. The company said the decline was mainly due to a combination of factors: weak domestic market demand led to a year-on-year drop in sales of large-displacement products for the domestic market, shrinking operating revenue; intensified industry competition and upstream cost pressures caused product gross margins to continue falling, narrowing per-unit profit margins; during the reporting period, the renminbi continued to appreciate, resulting in significant foreign exchange losses on foreign currency settlement business, and financial expenses increased year-on-year, further eroding overall profit.
Topband expects first-half net profit attributable to parent to fall 55% to 65% year-on-year
Topband issued an announcement, expecting net profit attributable to the parent for the first half of 2026 to be between 116 million and 149 million yuan, a decline of 55% to 65% compared with 330 million yuan in the same period last year. The company's operating revenue for the same period was approximately 5.809 billion yuan, up 5.57% year-on-year, but the profit decline was mainly due to increased exchange losses caused by the appreciation of the yuan against the US dollar, as well as rising prices of some raw materials putting pressure on gross margins. Through cost reduction and efficiency improvement, the company achieved a year-on-year decline in total period expenses. Net profit attributable to the parent and net profit after deducting non-recurring items both grew quarter-on-quarter in the second quarter compared with the first quarter, indicating some improvement in operating conditions.
Xinbao Shares Expects First-Half 2026 Net Profit Attributable to Parent to Drop Over 70% Year-on-Year
Xinbao Shares disclosed a performance forecast, expecting net profit attributable to the parent in the first half of 2026 to be between 125 million and 155 million yuan, a year-on-year decline of 71.44% to 76.97%. Deducted non-recurring net profit is expected to be between 102 million and 132 million yuan, a year-on-year drop of 75.19% to 80.83%. The company stated that the decline in performance is mainly due to the complex global macro environment, intensified competition in the small home appliance industry, and fierce price wars. At the same time, rising bulk raw material prices and the appreciation of the yuan against the US dollar led to a decline in gross margin. In addition, the company's export business accounts for about 80% of total revenue, and the yuan's appreciation has increased exchange losses. The company has already taken measures such as price increases and cost reduction and efficiency improvement, but the effects have a lag.
Heli Technology expects net loss attributable to parent of 3 million to 9 million yuan in first half of 2026
Heli Technology disclosed an earnings forecast, expecting a net loss attributable to the parent of 3 million to 9 million yuan in the first half of 2026, compared with a profit of 9.8492 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 11 million to 17 million yuan, compared with a profit of 1.608 million yuan a year earlier. The company said the change in performance was mainly due to significant exchange losses caused by the appreciation of the renminbi against the euro and the US dollar. In the same period last year, it achieved exchange gains of 8.4746 million yuan. At the same time, revenue in the first half of the year declined year-on-year and relevant impairment losses were provided. Heli Technology is mainly engaged in the research, development, design, manufacturing and sales of automotive casting molds, die-casting molds, hot stamping molds, aluminum alloy parts and automotive braking systems.
Kehua Holdings Expects Net Loss of 3 Million to 4.5 Million Yuan Attributable to Parent in First Half of 2026
Kehua Holdings disclosed its earnings forecast, expecting a net loss attributable to the parent of 3 million to 4.5 million yuan in the first half of 2026, compared with a profit of 55.5951 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 10 million to 15 million yuan, versus a profit of 27.8472 million yuan a year earlier. The company stated that the decline in performance was mainly due to intensified market competition leading to lower sales volumes and prices of major products, reduced gross profit, and significant exchange losses caused by the appreciation of the renminbi. In addition, gains from changes in fair value and government subsidies fell sharply compared with the same period last year. The company said it will step up market development, optimize product mix, strengthen lean management, and deepen exchange rate risk management to enhance profitability.
Xinya Electronic Technology Expects to Turn Around Deducted Non-Recurring Profit in First Half of 2026
Xinya Electronic Technology disclosed its 2026 half-year performance forecast. Net profit attributable to the parent company is expected to be between negative 12 million yuan and negative 6 million yuan, while deducted non-recurring net profit attributable to the parent company is expected to be between 2.4 million yuan and 3.6 million yuan, turning from a loss to a profit compared to the same period last year. The performance change is mainly influenced by two factors. First, a litigation matter has led to an estimated loss provision of about 17 million yuan, which is a non-recurring item. Second, the appreciation of the renminbi has caused an exchange loss of about 6 million yuan. Excluding these non-operating factors, deducted non-recurring net profit has rebounded significantly year-on-year, reflecting the continuous improvement of the company's actual operations and the steady strengthening of profitability across its three major business segments. The company's main businesses cover chemical materials and adhesives, lithium-ion battery materials, and electronic information product sales services. Among these, the electronic information product sales service business achieved revenue of 1.345 billion yuan in 2025, accounting for 69.66 percent of total main business revenue, and has established long-term cooperation with leading enterprises such as Huawei and BYD.
Qingdao Kingking Expects First-Half 2026 Net Profit to Drop by Up to 100% Year-on-Year
Qingdao Kingking disclosed its earnings forecast, expecting a net profit attributable to the parent company of zero to 10 million yuan for the first half of 2026, a year-on-year decline of 76.84% to 100%. The company said the decline was mainly due to a surge in crude oil prices caused by changes in the international situation in the second quarter, which led to a sharp rise in the price of paraffin wax, its main raw material. At the same time, the depreciation of the US dollar against the renminbi resulted in significant exchange losses.