China Daily Briefing

Zhipu AI, developer of the GLM-5.2 large language model, saw its HKEX market cap cross HK$1 trillion as shares surged — making it the first Chinese AI model company to reach this valuation milestone. The move validates the structural thesis that China's homegrown AI infrastructure has investment-grade scale, separate from the US LLM ecosystem. For Stock Connect investors, Zhipu's valuation trajectory provides a domestic benchmark for Chinese AI companies that lack US ADR equivalents.

Beijing's signal that it will support qualified foreign companies listing on domestic Chinese exchanges is a structural reversal of capital isolation — it opens China's A-share market as a fundraising venue for international companies for the first time at meaningful scale. This is directionally bullish for Stock Connect flows and for the RMB's profile as an international settlement currency. The devil is in 'qualified': expect initial listings to be Belt-and-Road partner companies with deep China commercial relationships, not pure-play western multinationals.

A major Chinese renewable energy company is reportedly considering majority localisation of its European operations — a strategic response to EU anti-subsidy investigations and local content requirements that threaten market access for Chinese clean energy exports. This is the first large-scale instance of a Chinese industrial company treating European localisation as the primary market access strategy rather than the last resort. For European solar and wind investors, Chinese localisation is a competitive threat to local champions like Vestas and RWE Renewables, as it combines Chinese technology efficiency with local regulatory compliance.