China Daily Briefing

SCMP reports that Eswin, a Chinese RISC-V architecture chipmaker, is seeking a US$300 million Hong Kong IPO ahead of an October debut — part of China's strategic push to develop domestic semiconductor architectures independent of ARM's licensing model. RISC-V is an open-source instruction set architecture that China has adopted as its preferred path to chip sovereignty, with Alibaba's T-Head, Huawei, and multiple state-backed startups all pursuing RISC-V roadmaps. The IPO timing is notable: Eswin is listing into a weak HK market, but the semiconductor sovereignty narrative gives it access to strategic-sector valuation premiums that consumer tech names cannot access — Northbound Stock Connect flows from mainland investors into HK-listed chip names have been notably resilient.

SCMP reports that China's EV and battery manufacturers are in dispute over who absorbs the cost of a resumed lithium-ion battery tax, with EV makers pushing back on passing costs upstream. The tax dispute arrives as BYD, Nio, and Li Auto are already fighting a brutal price war — LI -2.38% today — while battery costs remain the primary determinant of EV profitability margins. James Chen's read: the lithium-ion tax dispute is a signal that Beijing's industrial policy consensus on EV support is fracturing at the supply chain level, a negative margin catalyst for the sector heading into Q4 earnings.

SCMP reports that the Shanghai Gold Exchange is pressuring Chinese commercial banks to end retail leverage gold trading products — a regulatory tightening aimed at reducing speculative retail exposure to commodity markets following record gold prices. China's retail gold trading volumes have surged in 2026 as domestic investors sought inflation hedges and CNY depreciation protection, creating a systemic risk concern for regulators when leveraged positions are involved. The crackdown mirrors the pattern seen in retail stock leverage products post-2015: Beijing prefers steady institutional market structure over retail-driven volatility, and this move is consistent with the PBOC's broader financial market risk management posture.