China Daily Briefing

China's State Council pledged 'improved policy mechanisms to stabilise the stock market' within hours of Friday's CSI 300 decline — the fastest policy response loop in recent memory, suggesting a standing 'circuit breaker' playbook is activated. This is the national-team signal: Huijin and Central Huijin Investment are authorized to buy ETFs when the market drops a predefined threshold. For global investors, this means Beijing is providing an implicit floor under Chinese equities even as US sentiment deteriorates.

SCMP Business reported China's domestic AI chip makers (Moore Threads, Biren, and others) swung into profit in Q3 2026 — a milestone that reframes the US export-control narrative. While US-made GPUs face tighter restrictions, China's domestic GPU ecosystem is hitting profitability and scale, creating an indigenous AI semiconductor supply chain. This is the structural counter-thesis to the global AI selloff: China's AI infrastructure isn't dependent on NVIDIA, and Democrat data-centre regulation doesn't reach mainland China's data centres.

Moonshot AI's Kimi model family accounts for nearly 90% of global enterprise spending on open-source AI systems, per a new study. While US proprietary models (OpenAI, Anthropic) dominate total revenue, Kimi's open-source dominance signals China's strategic positioning: open-source as a Western market penetration tool. CSI Internet/Platform sector gained 2.7% today as this narrative provided sector support against the global AI selloff.