China Daily Briefing

Chinese chip foundry CanSemi's IPO drew 2,360 times oversubscription according to SCMP Business, one of the highest subscription rates seen in Chinese domestic IPOs. The number reflects the intensity of domestic demand for AI-capable semiconductor capacity as China's tech sector accelerates under import-substitution mandates. For Northbound and MSCI-tracking fund managers, the CanSemi event validates the broader China AI infrastructure thesis — NTES, JD, and Alibaba Cloud capex are the demand side; foundries like CanSemi are the supply response. Watch the post-IPO trading range as a sentiment gauge for how the A-share market prices domestic AI capacity.

SCMP reports VW and Gotion High-Tech are jointly accelerating battery production ramp in Europe and Morocco to meet EV demand. The story is significant for China's EV supply chain: Gotion (a CATL rival backed by VW) scaling in Europe means Chinese battery technology is entrenching globally even as Western tariffs tighten. China EV/Mobility sector +0.60% today with LI Auto (LI +2.61%) and BEKE +3.92% among the ADR gainers. Nio (NIO) and Geely's battery-swap commitments (also reported by SCMP) add to the structural EV production story — China is exporting the battery supply chain, not just the finished vehicle.

The Asian Infrastructure Investment Bank plans to double its financing by 2030, per SCMP, targeting Asia's estimated $26 trillion infrastructure gap. For GEM fund managers running China-heavy EM portfolios, AIIB's expansion is a structural tailwind for materials, construction, and power-sector names — the beneficiaries span CSI 300 constituents in infrastructure, cement, and grid operators. PBOC's current accommodative stance complements AIIB's capital deployment: the combination of multilateral lending and domestic MLF liquidity is the macro backdrop that makes China's infrastructure premium valuation defensible near-term.