PRE-MARKET CHINESE STOCK NEWS: Sinopec (386 HK) is reportedly reorganising its business into four main units

BYD Co. (1211 HK) - Co. reportedly hired former Hungarian Foreign Minister Péter Szijjártó. (Chinese press)

China Coal Energy (1898 HK) - Co. reported June commercial coal production fell 0.8% Y/Y to 11mln tonnes. (Chinese press)

China Yongda Automobiles (3669 HK) - Co. partnered with Hongxin Electronics to provide embodied AI services and signed a strategic cooperation framework agreement to jointly develop AI computing businesses. (Chinese press)

Hainan Airlines (600221 CN) - Co. reported June load factor rose 2.2ppts Y/Y to 90.0%, while traffic fell 7.7% Y/Y and capacity fell 7.0% Y/Y. (Chinese press)

Li Ning (2331 HK) - Co. guided Q2 retail sell-through of POS fell by a low single-digit percentage Y/Y. (Chinese press)

Sinopec (386 HK) – Co. is reportedly reorganising its business into four main units, according to sources. (Newswires)

Tencent Holdings (700 HK) - Co.'s Tencent Cloud will begin charging for excess storage usage of MySQL local disk instances from August. (Chinese press)

Pharmaceuticals - US Senate bill is reportedly seeking to curb US reliance on China's pharmaceutical industry. (SCMP)

Other News

PBoC-backed Financial News said China's liquidity support remains intact despite swings in monthly credit data, noting monthly lending figures are often distorted by seasonal factors and urging markets to focus on longer-term financing trends. (Financial News)

US President Trump’s administration could pursue further executive action addressing China-related concerns over open-source AI models, according to Semafor citing a senior White House official. (Semafor)

China’s Cyberspace Regulator said Apple (AAPL) Intelligence was among seven mobile generative AI services registered in China to provide on-device AI services. Chinese state media also reported that Alibaba's (9988 HK) Qwen AI would be integrated into Apple Intelligence in China, and the integration would enable users in China to access text and image understanding and content generation across iOS, iPadOS, macOS and visionOS without switching applications. (Newswires)

US companies were increasingly adopting open-weight Chinese AI models from Alibaba (9988 HK), Z.ai and Moonshot AI as cheaper and more customisable alternatives to OpenAI and Anthropic models. (Washington Post)

DATA RECAP

• Chinese New Yuan Loans (Jun) 1610B vs. Exp. 2000B (Prev. 520B)
• Chinese Total Social Financing (Jun) 3360B vs. Exp. 3770B (Prev. 2030B)
• Chinese Outstanding Loan Growth YoY (Jun) Y/Y 5.2% vs. Exp. 5.4% (Prev. 5.5%)
• Chinese M2 Money Supply YoY (Jun) Y/Y 8.0% vs. Exp. 8.5% (Prev. 8.6%)