China's economy grows at one of its lowest rates on record

China's economy has posted worse-than-expected growth figures for the three months to June, with the economy expanding just 4.3%, one of its lowest quarterly readings on record.

The rate, which came in under the government's target of 4.5-5%, was among the weakest since the reporting of official quarterly GDP figures began in the early 1990s.

The last period of lower growth was the final quarter of 2022, when the country was still under its three-year period of Covid-19 restrictions.

The data released on Wednesday by the National Bureau of Statistics of China followed official customs figures for June that showed soaring exports, with outbound shipments increasing by 27%.

The contrasting figures highlight the extent to which China's economy has become dependent on selling its goods abroad while the country struggles to drum up consumer demand and investment at home. Monthly car exports topped 1 million for the first time in June, but Wednesday's statistical release showed domestic vehicle sales plummeted by more than 16%.

Although retail sales, excluding cars, increased by 3% last month, economists said more sustained growth in consumption was necessary. For the whole of 2026, Chinese leaders have set a growth target of 4.5% to 5%, slower than last year's 5%.

The International Monetary Fund recently raised its forecast for China's annual growth by 0.2 percentage points to 4.6%.

Reference Sources

1. theguardian - Chinas economy grows at one of its lowest rates on record
2. cna - China's Q2 GDP grows at its weakest pace since 2022, dipping below official target
3. newyorkpost - China’s economy slows to 4.3% annual pace of growth in April-June

Chipmaker CXMT seeks $10bn in largest China IPO since 2010

Chinese memory chipmaker Changxin Memory Technologies (CXMT), the world's fourth-largest DRAM Memory-Chip manufacturer, is seeking to raise nearly $10Bn in Mainland China's largest initial public offering since 2010 as it capitalises on a boom in demand for AI memory chips.

The company hopes to bring in CNY66.6Bn ($9.8Bn) in a listing that would value the company at CNY579.2Bn, according to a filing to the Shanghai stock exchange on Tuesday.

The IPO marks the biggest in Mainland China since the Agricultural Bank of China's listing in 2010.

The Anhui-based company said Tuesday it would raise at least 57.9 billion yuan (us $8.6 billion) in a share sale and listing on Shanghai's chip-heavy Star board at 8.66 yuan apiece.

The offering consists of 6.69 billion shares, or 7.69 billion shares including an overallotment option. At the maximum size, the IPO would raise 66.6 billion yuan ($9.8 billion), about double the previous estimate.

The listing plan comes as the tech industry battles an unprecedented memory chip shortage caused by the frantic demand to build global artificial intelligence infrastructure.

Reference Sources

1. wsj - China’s CXMT Eyes $85.5 Billion Market Cap Ahead of Blockbuster IPO
2. ft - Chipmaker CXMT seeks $10bn in largest China IPO since 2010
3. malaymail - China’s memory chip giant is gearing up for a US$9.8b blockbuster stock debut
4. bloomberg - Chip Giant CXMT Seeks $9.8 Billion in Shanghai IPO
5. nikkei - CXMT to raise $8.5bn in largest Chinese chip IPO

Cushman & Wakefield Study: AI to Drive Stronger Growth and Higher Real Estate Demand Across Asia Pacific

Artificial intelligence (AI) is set to fuel economic expansion and increase demand for commercial real estate across the Asia Pacific (APAC), rather than displace it, according to a study by Cushman & Wakefield.

The analysis, AI Impact: regional insights – Asia Pacific, noted that AI will act as a net positive force for both economic growth and real estate demand as the region strengthens its position as a global Hub for production, services, and innovation.

The APAC analysis is part of Cushman & Wakefield’s global, multi-sector, scenario-based assessment of how AI adoption could reshape real estate fundamentals over the next decade.

The study models four distinct scenarios reflecting different paths for AI adoption, productivity, and labour market outcomes.

Under the baseline scenario, the APAC economy is projected to grow at around 3-4% annually through 2030, supported by AI-driven productivity gains and continued investment in infrastructure such as data centers and power.

While AI will automate certain routine functions, the study indicates overall employment in APAC is expected to rise, with a projected net increase of 58.5 million jobs between 2026 and 2030 under the baseline scenario.

However, this growth is likely to moderate over time as economies mature, alongside a shift toward higher-value, knowledge-based work.

Reference Sources

1. thesunmy - Cushman & Wakefield Study: AI to Drive Stronger Growth and Higher Real Estate Demand Across Asia Pacific

Singapore's DBS targets over US$774 billion in wealth assets by 2030

Singapore's largest bank, DBS Group, aims to double its wealth management assets under management (AUM) to more than SGD1 trillion ($775Bn) by 2030.

The Bank plans to hire at least 600 staff and open 18 new wealth centers in its core markets of Singapore and Hong Kong.

The aim is to join the global Rankings of large asset managers such as UBS Group AG, Morgan Stanley, and JPMorgan Chase & Co., which manage more than $1Tn in clients' funds.

However, the Asian Bank distinguishes itself with wider target groups that also include everyday millionaires and below, a fast-growing market, especially in emerging markets across the region. To meet its SGD1 trillion target, DBS would need to roughly double its assets in five years from about Sgd492Bn as of 2021.

The bank's AUM target spans the lender's retail and wealth segments and marks an increase of about SGD400Bn from SGD632Bn in wealth assets under management at the end of 2025. "From full year 2015 to 2025, in 10 years, we grew our AUM by $400Bn. Looking at the Traction, our ambition now is to grow the same $400Bn by half the time," said Shee Tse Koon, DBS's group executive and group head of consumer banking and wealth management.

Reference Sources

1. thesunmy - DBS targets over S$1 trillion wealth assets by 2030
2. asiaone - DBS targets over $1t in wealth assets by 2030, Money News - AsiaOne
3. nikkei - Singapore's DBS targets over $774bn in wealth assets by 2030
4. bloomberg - DBS Targets $773 Billion in Wealth Assets as Money Flows Surge
5. thestarmy - Singapore's DBS targets over US$774bil in wealth assets by 2030

The CommonWealth English daily news digest is a service curated by CommonWealth English team with the help of AI tools.  

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