China Daily Briefing

Contemporary Amperex Technology (CATL, 300750.SZ), the world's largest EV battery manufacturer, announced a battery breakthrough that SCMP Business reports could push flying cars closer to commercial viability. The significance for investors: CATL's expansion beyond automotive into urban air mobility (UAM) represents a strategic pivot into a segment with potentially higher margin and lower commoditisation pressure than passenger EV batteries. The UAM battery specification requires higher energy density (>400 Wh/kg) and much faster charge/discharge cycles than automotive — if CATL has cleared those thresholds, it widens its technological moat against BYD and LGES. China's 15th five-year power plan (unveiled August 3) includes explicit UAM infrastructure provisions, suggesting government support for the commercialization runway. Near-term catalyst: CATL's investor briefing or patent filing detail; medium-term: partnerships with EHang (EH), Xpeng AeroHT, or Lilium will confirm the roadmap.

China's rare earth producers reported or guided for significant first-half 2026 profits, per SCMP Business, even as the US-China technology trade friction continues to create demand uncertainty on the export side. The structural read: China's domestic rare earth consumption for EV motors, wind turbines, and defence electronics is growing fast enough to offset any Western-market share loss — domestic demand absorbed what export restrictions can't reach. China Rare Earth Group (688167.SS), Northern Rare Earth (600111.SS), and Shenghe Resources (600392.SS) are the names to watch in this category. For global investors, the key tension is whether US and allied nations can build sufficient rare earth processing capacity outside China (the NDRC controls export quotas for 17 elements) — each quarter of strong Chinese producer profits makes that geopolitical diversion more urgent. PBOC's steady RMB fixing this week (around 7.24) provides FX stability that supports the rare earth export-revenue translation back to CNY.

China unveiled its 15th five-year plan for the power sector on August 3, with SCMP Business providing a breakdown of key targets. The plan sets ambitious renewable capacity additions (solar, wind, and nuclear) with a stated goal of reducing coal's share of electricity generation below 40% by 2030. For equity investors, the immediate beneficiaries are utility-scale solar developers (GCL Technology, LONGi Green Energy, Xinhua), grid infrastructure operators (State Grid, SGCC subcontractors), and nuclear equipment makers (China National Nuclear Power, CNNC). The plan also includes explicit provisions for data centre power infrastructure — relevant to the hyperscaler build-out (Alibaba, Tencent, Baidu) that has been driving Fintech and Internet sector outperformance today. NDRC's direct involvement in the plan (not just MIIT) signals that grid investment will be SOE-led with guaranteed returns, making it a defensive capex play rather than a pure-growth infrastructure bet.