China Daily Briefing

BYD's $1.2 billion Q2 net profit, up 30% year-on-year, cements its position as the world's most profitable EV company outside of Tesla. The surge was driven by record global delivery volumes, with Europe now accounting for 11%+ of Chinese automaker market share — much of it BYD. The earnings beat repositions BYD as a structural growth story rather than a China-subsidy story, and raises the bar for legacy automakers globally.

ChangXin Memory Technologies (CXMT) posted an 870% first-half revenue surge, driven by aggressive DRAM capacity expansion that the market had questioned as potentially overshooting demand. The data says otherwise: domestic Chinese demand for DRAM — fuelled by the AI server buildout and local hyperscaler investment — has absorbed CXMT's ramp faster than expected. For Samsung and SK Hynix, this confirms that the China domestic memory market is not ceding ground to foreign suppliers and will increasingly be supplied from within.

Hong Kong Exchanges and Clearing (HKEX) is adding Pony AI and WeRide — both autonomous-driving firms — to its Tech 100 index in a revamp targeting AI-driven companies. The index inclusion creates mandatory passive buying from ETFs and funds tracking the benchmark, providing a technical demand floor for both stocks. More broadly, HKEX's deliberate AI-curation of its tech indices signals competitive intent against Nasdaq ADR listings for Chinese tech companies.