China Business NOW

• CBN Perspective丨Mixue shatters “IPO spell” on tea drinks. What’s next?

  Hello! Welcome to CBN Perspective. I’m Stephanie Li.Two decades ago, a modest restaurant in the middle of Northern China’s Henan province saw its business take off after selling cut-price soft serve for just 1 yuan per cone. Today, it has overtaken McDonald’s and Starbucks with over 45,000 stores worldwide, becoming the world’s largest food and beverage chain by store count.Mixue Ice Cream & Tea has turned the tea game into a global phenomenon—and their recent stock market debut is just the tip of the iceberg. Let’s dive into the story of how this budget-friendly beverage empire is shaking things up. With its signature drinks priced between 2 to 8 yuan, a catchy theme song and a chubby snowman mascot, Mixue has attracted a massive customer base across China.While other bubble tea brands have been focusing on premium positioning with prices above 20 yuan, Mixue successfully established its presence in lower-tier cities where competition is less intense.Born into an impoverished family, Zhang Hongchao, the founder of Mixue, has said his strategy is simple: “Let people around the world eat well and drink well for just two American dollars.” The capital market went wild with Mixue. Retail investors were so eager to get their hands on Mixue shares that the IPO was oversubscribed by a staggering 5,258 times. It’s no wonder people are calling it the “Pinduoduo of bubble tea,” after the popular Chinese discount e-commerce platform.On its first day of trading on the Hong Kong Stock Exchange, Mixue’s stock price surged by a whopping 43.2%, closing at HKD290 per share. The company raised HKD3.45 billion in its IPO, making it the biggest listing in Hong Kong so far this year, and the fifth-largest over the past year.Zhang Hongchao and his younger brother, Zhang Hongfu, the chain's CEO, have now a combined net worth of USD8.1 billion after the share sale. Following the surge on Monday, Mixue continued to rise over 77% throughout the first week of listing, with a market cap surpassing HKD130 billion.Mixue truly deserves its crown of being “King of Snow.” Its net profit jumped 42% to 3.49 billion yuan in the first nine months of 2024 from the same period in the previous year, according to the prospectus. Its revenue increased 21% to 18.7 billion yuan in the period.For comparison, Chinese premium tea chain Nayuki has been in the red except for 2023 since its listing in 2021. The brand has accumulated a loss of HKD5.6 billion as of the first half of 2024. But Mixue’s story didn’t start with a bang; it started with a lemon. Yes, you heard that right—a lemon! Imagine this: you’re walking down the street, and you see a store selling lemon water for just 2 yuan. You think it’s a typo, but nope, it’s Mixue’s magic. They’ve turned lemons into gold.How did they do it? The answer is actually as simple as it is: they grew their own lemons and tea leaves, and built a cold-chain logistics network that covers 97% of their stores. By cutting costs to the bone, they can offer drinks at prices that make your wallet smile. And with over 45,000 stores worldwide, they’ve pretty much cornered the market on affordable tea drinks.Being more like a raw materials supplier than a traditional brand, Mixue’s money game involves a big chunk of franchising. With over 99% of Mixue’s stores being franchise, its model is indeed a “lemon-squeezing machine.” They make 97% of their revenue from selling equipment and raw materials to franchisees.But let’s not forget the control freak side of Mixue. They’ve got cameras, standardized trash cans, and a 48-hour turnover requirement for ingredients to ensure every sip tastes the same, no matter where you are. So, here’s the million-dollar question: can Mixue go the distance? They’ve got the supply chain down pat and a franchise system that’s hard to beat. But there are some hurdles ahead.First, there’s the issue of scale. With over 40,000 stores in China alone, they’re pretty much maxed out. Competition in smaller cities is getting fiercer with more used-to-be premium brands joining the battle.Then there’s the profitability problem. In 2024, their average daily sales per store dropped by 5%, and some franchisees are jumping ship.And there’s Mixue’s global expedition. Mixue have set sights on Southeast Asia, with over 4,800 stores in countries like Indonesia and Vietnam. But the market is a real jungle out there. Coffee heavyweights like Starbucks, with their super-high brand recognition and a global army of loyal fans, are now in the tea game too, making it a tough battle for Mixue to carve out a piece of the pie. Then there’s the supply chain. Mixue's got a great setup at home, but overseas, finding the right ingredients can be a mission, either they're hard to come by or cost a fortune. And brand recognition is a whole different ball game. Mixue's known for being down-to-earth in China, but overseas, that might not click right away. Mixue's got to figure out how to show off its unique charm while still keeping prices reasonable to win over international customers.So it seems like Mixue’s future depends on how well they can juggle a few tricky challenges. Balancing expansion with rising costs would be one of the priorities, and not to forget adapting their model to different cultures while going global, to prove that low prices don’t mean low quality. It’s a tall order, but with their recent stock market success, they’ve got the capital to make some bold moves.Mixue’s story is a rollercoaster ride, from humble beginnings to global domination, with a few bumps along the way. They’ve literally turned lemons into lemonade and shown that affordability can be a powerful weapon. But can they keep the momentum going? Only time will tell.So, the next time you sip on a Mixue drink, remember: you’re part of a hundreds-of-billions business! And who knows? Maybe one day, Mixue will be as iconic as Starbucks. Until then, keep sipping, and let’s see where this lemon water adventure takes us next!

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• CBN丨Highlights of press conference on economy at NPC session

  China’s Annual Two Sessions 2025China’s top economic officials held a press conference on Thursday afternoon as part of the Two Sessions, with heads of China’s economic planner, finance and commerce ministries, central bank and securities regulator attending.China is fully confident in achieving the economic growth target of around 5 percent this year as there is solid foundation, support and guarantee, said Zheng Shanjie, head of the National Development and Reform Commission, the country’s top economic planner.Zheng said China’s GDP target was the result of a “comprehensive and scientific” process, with “solid preparation” undertaken to come to the final number. There is new momentum driving growth, he added, citing the new industries and business modes which have contributed to 18 percent of China’s overall economy.An increase to domestic spending remains a priority, Zheng said, pointing to a 300 billion yuan in ultra-long special treasury bonds will be allocated to support the trade-in program for consumer goods and equipment in 2025.China will establish a national venture capital guidance fund in the near future with the aim of strengthening the development of innovative enterprises, Zheng added.Commerce Minister Wang Wentao said the trade-in program have been “bright spots” for China’s consumer market in the past year, adding that the categories will be expanded to include smartphones, tablets, smart watches and other consumer electronics. Meanwhile, new measures to promote consumption by foreign tourists will be implemented, Wang said, which include improving visa procedures and online payments methods. Finance Minister Lan Fo’an said China has “reserved” enough of its tools to counter whatever uncertainties may come about in the external environment. He said the effects of last year’s stimulus package will be sustained, and new policies that are “stronger and more targeted” will be rolled out.Spending on tech, he added, will exceed 1.2 trillion yuan in 2025, an increase of 8.3 per cent over the year prior.As for local debts, Lan said local governments had issued 2.96 trillion yuan in debt-swap bonds as of yesterday, and the interest rates of local debts has been lowered by 2.5 percentage points.The number of local government financing vehicles, previously a source of the lion’s share of implicit government debt, has fallen since last year, Lan said. The next step, he added, will be transforming the business of those vehicles that still exist.In terms of monetary policy, the People’s Bank of China will cut interest rates and the reserve requirement ratio at an “appropriate time” this year, central bank governor Pan Gongsheng said.He emphasized the need to keep the yuan’s exchange rate stable and cautions against overshooting.In response to how innovation will be financed, Pan said more bond issuances and relending tools will be used to aid in the country’s tech development. A tech-focused segment of the bond market will be launched to back these issuances, he added.The size of the relending tool for tech innovation will be doubled to 1 trillion yuan this year, Pan announced.Wu Qing, head of the China Securities Regulatory Commission, said the unexpected success of artificial intelligence start-up DeepSeek has helped usher in a re-evaluation of China’s stocks, vowing to improve capital market support mechanisms for tech firms, with a focus on those sectors that are actively working on new breakthroughs.On stock market regulation, Wu said China will redouble efforts to clamp down on irregularities in the stock market, and ensure that investors are protected.Coordination and countercyclical adjustments will be strengthened between primary and secondary markets, Wu added, noting that this will drive listed companies to improve their ability to deliver stronger returns to investors.Meanwhile, corporate mergers and acquisitions will be promoted among tech firms. He encouraged the use of “patient capital”, funding with an eye on the long-term, and said tools besides stock listings would be used to support scientific innovation.In terms of foreign trade, Commerce Minister Wang Wentao said the country’s service trade has surpassed 1 trillion yuan in value for the first time, and it now includes a more diverse range of partners. Trade with countries involved in the Belt and Road Initiative now account for more than half of all imports and exports – a development he deemed a historic milestone.Wang said there are “severe challenges” for Chinese imports, given global trends towards protectionism, and policies will be implemented to stabilize foreign trade, particularly in services.Enterprises will be assisted in securing orders and keeping their exports stable, and cross-border e-commerce and overseas warehouses will be expanded.Two Sessions highlightsLin Long'an, a member of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC) from the Hong Kong SAR, proposed to further promote the cross-border e-commerce development of the Greater Bay Area (GBA) based on local industrial advantages as well as assistance with AI technologies. Lin, also the chairman of the GBA Importers and Exporters Association, said during the annual Two Sessions that the GBA, boasting abundant industrial cluster resources and a well-established cross-border e-commerce foundation, provides immense potential for the foreign trade development of the area, while noting that the construction of the GBA brings both opportunities and challenges for the foreign trade sector.Xinjiang should leverage its strategic position as the gateway for China's westward opening-up, and continue expanding high-level opening-up efforts this year, several NPC deputies and the CPPCC National Committee members from Xinjiang have suggested. They also urged the region to ramp up economic exchanges with Central Asian countries as well as exploring markets in ASEAN, the Middle East and Africa.Geely insists on not engaging in price wars, as it aims to compete over technology, quality, services, brand, and ethics, Li Shufu, CPPCC member and chairman of the Chinese automotive giant, told media during the Two Sessions yesterday.Li Dongsheng, an NPC deputy and founder and chairman of TCL, suggested yesterday at the Two Sessions that Chinese regulators may develop financing policies that meet the needs of large technology manufacturers, as the sector is characterized by high-tech, heavy assets, and long payback period.Next on industry and company newsAlibaba today released Tongyi Qwen QwQ-32B, a new open-source AI model focusing on advancing AI reasoning capabilities that can compete with DeepSeek-R1, the Chinese tech giant said.Chinese AI team Manus released its homonym general AI agent product able to perform complicated tasks, such as resume screening, property research, and stock analysis. Manus achieved the State-of-the-Art level according to the GAIA benchmark and outperformed OpenAI DeepResearch in solving real-world problems.China’s average daily AI model token usage surged 33-fold in the past eight months, of which paid token usage grew 15 times, Yang Chaobin, CEO of Huawei's ICT BU, said at the MWC2025. Huawei expects the token-driven traffic volume to exceed 350 percent of the total mobile internet data traffic by 2030, he added.Xpeng Motors plans to enter the Polish, Swiss, Czech, and Slovakian markets in the second quarter with its P7 sedan, G9 SUV, and G6 SUV, the Chinese NEV startup said yesterday on Weibo. Xpeng hopes to be present in more than 60 global markets by the end of the year, with overseas sales accounting for more than half of the total.Douyin has introduced a series of initiatives to support small- and medium-sized businesses joining the platform. The program includes subsidies, commission reductions, and free training programs, Douyin announced yesterday.China Eastern Airlines will launch direct flights between Shanghai and Abu Dhabi starting April 28, becoming the first Chinese airline to run the route. Hong Kong will charge HKD200 instead of HKD120 for departure tax per air passenger starting Oct. 1. The new measure will likely bring around HKD1.6 billion a year to the local government.Wrapping up with a quick look at the stock marketChinese stocks rallied on Thursday. The benchmark Shanghai Composite gained 1.2 percent and the Shenzhen Component added 1.7 percent. Hong Kong’s Hang Seng index jumped 3.3 percent and the TECH index rallied 5.4 percent.

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• CBN丨Key takeaways of China's 2025 Government Work Report

  Hi everyone. I’m Stephanie LI.Coming up on today’s programChina sets major targets for 2025, including 5% GDP growth and 4% deficit-to-GDP ratio;First “Ministers’ Passage” opens for interviews today at the Two Sessions.China’s Annual Two Sessions 2025China has set an economic growth target of "around 5 percent" for 2025, the same as last year's figure, as the world's second-largest economy emphasizes expanding domestic demand with more supportive policies, according to the Government Work Report released on Wednesday.Premier Li Qiang, who delivered the report at the opening of the third session of the 14th National People's Congress in Beijing, pledged that the country will pursue a more proactive fiscal policy and exercise a moderately loose monetary policy this year.Li said the government has set a projected deficit-to-GDP ratio for 2025 at 4 percent, up from 3 percent for 2024. The government started to release the annual projected deficit ratio in 2010, with the highest reading in 2020 at 3.6 percent as COVID-19 hit, according to market tracker Wind Info.The work report also said China will issue 1.3 trillion yuan in ultra-long-term special treasury bonds this year, up from 1 trillion yuan for 2024. This year's quota of special local government bonds will be increased to 4.4 trillion yuan from a record high of 3.9 trillion yuan last year.The government will launch special initiatives to boost consumption in 2025, including issuing ultra-long special treasury bonds of 300 billion yuan to support consumer goods trade-in programs, according to the work report.This year, China, as laid out in the report, plans to target a surveyed urban unemployment rate of around 5.5 percent, the creation of over 12 million urban jobs, and consumer price index increase of around 2 percent.Meanwhile, the report highlighted the development of new quality productive forces, with the aim to foster strategic emerging industries and future industries. Key initiatives include advancing commercial space, fostering the low-altitude economy, and establishing a funding mechanism for bio-manufacturing, quantum technology, AI, and 6G.The report said authorities will unleash the digital economy under its AI Plus initiative, which will work to combine digital technologies with China’s manufacturing and market strengths.As for the private sector, Li pledged to better support the private economy and bolster business confidence. The country would strengthen legal protections and policy support for private enterprises, ensuring their legitimate rights, as well as curbing profit-motivated law enforcement against private companies.Also, China would persistently stick to its opening-up policy, which would lead to more reforms and development opportunities. The nation will encourage foreign investors to expand their investments in China and cooperate with companies up and down the industrial supply chain.Two Sessions highlightsChina has emerged as the world's busiest country in terms of passenger and cargo movements, thanks to the rapid growth of its transport, China's Transport Minister, Liu Wei, said on Wednesday after the opening meeting of the 14th National People's Congress' third session. "China's high-speed railways, roads, bridges, ports and express delivery services have become shining symbols of the country's modernization," Liu said, pointing to the country's remarkable achievements in infrastructure. China has built the world's largest high-speed railway network, expressway network, postal and express delivery network, and a world-class port cluster, Liu said. The country's high-speed railway network now spans 48,000 kilometers, and its expressway network extends over 190,000 kilometers, both ranking first globally. China’s Minister of Education Huai Jinpeng said at today's "Ministers' Passage” on the sideline of the ongoing Two Sessions that DeepSeek and robots have attracted extensive attention at home and abroad in recent times, which also illustrates the effects of China's scientific and technological innovation and talent cultivation from one aspect. Huai said that a series of national special actions will be launched this year to better accelerate and strengthen talent cultivation in the process of serving national strategies and scientific and technological development.China will optimize regulations to promote the healthy development of the platform economy, Luo Wen, Director of the State Administration for Market Regulation, said at today’s "Ministers' Passage”. Luo also vowed to regulate the live-streaming e-commerce sector by strengthening platform's review responsibilities and conducting more random inspections, as to maintain a fair and competitive order and improve the quality of online products.Li Yunze, Director of the National Financial Regulatory Administration, said at the "Ministers' Passage” a total of 3.8 trillion yuan of non-performing assets were disposed of last year, reaching the highest level in history, and the bottom line of preventing systemic risks was firmly held. Li vowed to support the stable development of the real estate market, expand the "white list” and ensure the delivery of completed housing. Li also said the administration will encourage banks to increase credit limit and extend the term of consumer loans in order to support residents’ needs of long-term, large amount consumption.Technological innovation plays a key role in transforming industries and expanding emerging ones, Xiaomi’s founder and NPC deputy Lei Jun said at the Two Sessions today. Five years ago, Xiaomi pledged to invest 100 billion yuan in core technologies, and now, after having invested 105 billion yuan, the company has experienced a significant transformation, driven by R&D, Lei noted.Heightened efforts are needed to allow more households in townships and counties to enjoy consumption-friendly subsidies from the consumer goods trade-in program, and reinforce the dominant position of enterprises in technological innovation, said Jia Shaoqian, chairman of Chinese home appliance manufacturer Hisense Group, who is also a deputy to the 14th National People's Congress. In the fourth quarter of last year, sales of Hisense's home appliances surged more than 30 percent year-on-year fueled by the trade-in program, Jia said.Many enterprises are accessing AI large language model platforms after DeepSeek released its DeepSeek R1 large model in January, said Yang Chengzhang, member of the CPPCC National Committee and chief economist of Shenwan Hongyuan Securities at the Two Sessions. He stated that the country should take science and technology as the driving forces, greening as the orientation, and strengthen the application of digitalization and artificial intelligence to promote the development of the private economy.Promoting China's independent PV innovation and the development of original technology is the top priority in the country's green development, Zhong Baoshen, an NPC deputy and chairman of Longi Green Energy Technology Co said on Tuesday. The PV industry is still facing challenges such as supply-demand mismatch and involution-style competition, so strengthening the capability of independent innovation and developing original technology is an inevitable choice to break through the current bottleneck, Zhong said.Next on industry and company newsHuawei's Harmony Intelligent Mobility Alliance will release a revamped version of the Aito M9 this month and the Aito M8 next month, Richard Yu, chairman of Huawei's Smart Auto Solutions BU, said on Weibo today.Liu Jiakun has won the 2025 Pritzker Architecture Prize, the highest honor in the field, becoming the second Chinese architect to receive the honor after Wang Shu in 2012. Based in Chengdu, Liu's career spans over four decades, with more than 30 projects ranging from academic and cultural institutions to civic spaces, commercial buildings, and urban planning throughout China.Wrapping up with a quick look at the stock marketChinese stocks rose on Wednesday. The benchmark Shanghai Composite gained 0.5 percent and the Shenzhen Component added 0.3 percent. Hong Kong’s Hang Seng index jumped 2.8 percent and the TECH index rallied 4 percent.

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  9:39
• CBN丨Shenzhen puts AI innovation and application high on the agenda in 2025

  Hi everyone. I’m Stephanie LI.Coming up on today’s programShenzhen aims to expand its AI terminal industry to a scale of 1 trillion yuan by 2026;China will impose extra tariffs of 10-15% on various US imports from March 10.Here’s what you need to know about China in the past 24 hours Shenzhen city, a technology hub in South China's Guangdong Province, on Monday released an action plan to propel the rapid development and application of AI technology, fostering a good number of AI-powered high-end industries.The action plan aims to enhance the city's industrial competitiveness by leveraging latest AI innovations. By 2026, an extra output value of 800 billion yuan will be attained by making use of AI technology, with the ambition to reach 1 trillion yuan. Additionally, it seeks to consolidate no less than 10 leading AI-powered industrial enterprises and launch over 50 innovative products across sectors such as smartphones, computers, and wearable devices, while working out more than 60 AI applications in smart finance, smart manufacturing and smart medical care. The action plan prioritizes a few key products, including AI-powered smartphones, computers, and tablets. The city plans to set up a comprehensive industrial ecosystem to transform smartphones from "smart tools" to "intelligent assistants" and upgrade computers from traditional devices to AI-powered work stations. Meanwhile, large-model all-in-one machines and AI wearable devices will be developed, focusing on smarter home, health care, security, and industrial automation applications, which will offer customized services to boost businesses and consumers.In addition to Shenzhen, other cities across China, including Beijing, Chengdu and Wuhan, have also introduced similar policies to support the development of AI-powered new industries. Wuhan, as a national AI innovation pilot zone, has launched the “AI+" action plan to integrate AI models into over 20 industrial lines this year.Given the very positive stance of local governments, AI innovation and application in China is likely to scale up, especially since the launch of DeepSeek during the Spring Festival that upended the tech landscape. Lou Qinjian, spokesperson for the third session of the 14th National People's Congress, highlighted the significant progress made by DeepSeek at a press conference today. The rise of Chinese tech companies like DeepSeek shed light on the innovative and inclusive approach of China's sci-tech development, Lou said, adding that DeepSeek's adherence to an open-source technological approach has contributed "Chinese wisdom" to the world.China on Tuesday swiftly retaliated against fresh US tariffs, announcing a range of between 10 and 15 percent hikes to import levies covering a basket of American agricultural and food products, while placing 25 US firms under export and investment restrictions. An additional 15 percent tariff will be imposed on imported chicken, wheat, corn and cotton, while 10 percent tariff will be imposed on sorghum, soybean, pork, beef, aquatic products, fruits, vegetables and dairy products, per the statement. The US’s unilateral tariffs measures seriously violate World Trade Organization rules and undermine the basis for economic and trade cooperation between China and the US, the Commerce Ministry said in a separate statement.Greater Bay Area, Greater futureBYD said on Tuesday it had raised USD5.59 billion in a primary share sale that was increased in size, making it the largest of its kind in Hong Kong in four years and the largest equity follow-on offering globally in the automotive sector in the past decade. The company said it sold 129.8 million primary shares in the deal, up from the original 118 million shares planned when the deal launched on Monday. BYD's shares opened down 8 percent on Tuesday, in line with the discount the stock was sold at in the deal. The UAE-based Al-Futtaim Family Office was a key investor in the share sale.Two Sessions highlightsChina should make efforts to enhance the market-oriented application of new energy storage, including fostering the market participation mechanism and establishing a regular safety inspection system, CATL's founder and Chairman Robin Zeng suggested during the Two Sessions.iFlytek's Chairman and CPPCC member Liu Qingfeng proposals for the Two Sessions are about new quality productive forces brought by AI. China should be alert to LLM hallucinations, construct a trustful information environment from the perspective of technical research and management, and extend trade-in policies to promote the development of the AI terminal industry, he suggested.Xiaomi’s founder and NPC deputy Lei Jun submitted five proposals to the Two Sessions, including accelerating the mass production of autonomous driving vehicles, fostering the intelligent EV ecosystem, and optimizing the NEV license plate design.Zhong Zheng, a deputy to the NPC and VP of Midea Group, suggested at the Two Sessions to enhance the legal protections for copyright and privacy for original content and using AI to review AI-generated videos for more efficient and accurate content oversight.The PBOC handled 736 proposals and suggestions from NPC and CPPCC members, the central bank said yesterday. “Five major articles” (digital, green, inclusive, pension, and technology finance), financial regulatory framework, high-level financial opening-up, and improvement of financial service capabilities were the main focus.Next on industry and company newsBAIC Group and iFlytek announced that the Chinese automaker and AI giant yesterday signed a deal on human-vehicle interaction, in-car intelligence, and AI technologies, big data analysis, and smart vehicle networking platforms.Huawei unveiled its AI-centric 5.5G solutions at #MWC2025 to help operators tap into AI-driven opportunities, enhance network autonomy, and drive business monetization, Cao Ming, VP of the tech giant and president of Huawei Wireless Solution, said yesterday.The number of tourists in Harbin, China's popular winter destination in northeast Heilongjiang province, jumped 9.7 percent to over 90 million during the winter season from Nov. 8 to Feb. 28 from a year earlier. The tourism sector raked in 137.2 billion yuan, up 16.6 percent from a year ago.China's manned space program will focus on the use of space stations, carrying out two manned and one cargo resupply missions this year while also aiming to conduct a manned lunar landing before 2030, the China Manned Space Agency announced yesterday.Chinese animated film “Na Zha 2" raked in USD2 billion globally, including presales, becoming the first Asian film to reach the milestone, according to movie data platform Maoyan.Wrapping up with a quick look at the stock marketChinese stocks rose on Tuesday with the benchmark Shanghai Composite up 0.2 percent and the Shenzhen Component adding 0.3 percent. Hong Kong’s Hang Seng index slid 0.3 percent and the TECH index closed flat.

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  8:36
• CBN丨Bubble-tea giant Mixue soared on debut after HK’s biggest IPO of year

  Hi everyone. I’m Stephanie LI.Coming up on today’s programChina's largest bubble tea chain Mixue soared 43% on Hong Kong trading debut;China's manufacturing PMI rises to 50.2 in February.Here’s what you need to know about China in the past 24 hours Shares of China's largest bubble tea and drinks chain Mixue Group jumped over 40 percent by midday on their first day of trading on the Hong Kong Stock Exchange today after the firm raised HKD3.46 billion in an initial public offering.The shares started trading at HKD262 each and closed 43 percent higher at HKD290, with a market cap nearing HKD110 billion.Retail investors subscribed for over 5,000 times more shares than were on offer in that tranche, according to Mixue's filings, making it one of Hong Kong's most popular ever IPOs. Investors applied for a record HKD1.8 trillion worth of margin loans to buy Mixue stock during the book-building process.The debut is a positive start for Mixue compared to its rival Guming whose shares slumped 10 percent on their first trading day in Hong Kong on February 12.Mixue is often seen as China's largest chain of iced drinks, milk tea, and ice cream. However, it operates more like a raw-material supplier than a traditional beverage brand.Founded in 1997 as a small ice shop in Zhengzhou, Henan province, Mixue has grown into a franchise giant with over 45,000 stores globally by September 2024, surpassing Starbucks' 40,576 stores worldwide.Unlike Starbucks, which operates 53 percent of its stores directly, Mixue relies heavily on franchising, with more than 99 percent of its stores run by franchisees.Mixue's prospectus showed sales of goods and equipment accounted for 97.6 percent of Mixue's total revenue in the first nine months of 2024, while franchise fees contributed a mere 2.4 percent. China's Purchasing Managers' Index (PMI) rose to 50.2 in February, up 1.1 percentage points from January, according to data released by the National Bureau of Statistics on Saturday. The NBS said that the resumption of work and production across enterprises following the Spring Festival holiday in February has revitalized business operations, improving economic vitality. The country's non-manufacturing PMI in February stood at 50.4, an increase of 0.2 percentage point from the previous month.Greater Bay Area, Greater futureForty-one companies from the Chinese mainland have filed to go public on the Hong Kong Stock Exchange in the first two months of this year, up about three times from a year earlier, due to tightening domestic regulations on initial public offerings and more supporting policies. Twelve of the 41 companies applying to list in Hong Kong are listed on the mainland, according to the latest data from Wind Information.Shenzhen released yesterday three new work plans to create a superior business environment that is market-oriented, law-based, and internationalized. As per the plans, the city will further expand its high-level opening up by offering more opportunities for foreign investors to engage in the telecommunications, internet, education, healthcare, big data, and AI sectors, aiming to achieve an actual use of more than 50 billion yuan of foreign investment this year. The city will enhance services and support for foreign-invested enterprises, streamline registration and establishment procedures for those enterprises, and provide them with the latest preferential policies.Next on industry and company newsSales of Chinese electric vehicles rose last month as XPeng led the charge with a more than fivefold increase in sales. XPeng delivered 30,500 vehicles in the month, topping the 30,000 mark for a fourth consecutive month. BYD sold 322,846 cars, up 164 percent from the same period a year ago while Nio's sales rose 62 percent to 13,192, bringing total sales since its launch to 698,600 vehicles. Zhejiang Leapmotor Technology delivered 25,287 cars, up 285 percent. Zeekr sold 14,039 cars, up 87 percent, Li Auto delivered 26,263 cars, up 29.7 percent and Xiaomi sold more than 20,000 SU7 electric sedans in the month. Honor unveiled its Alpha strategy, which will transform the smartphone maker into an AI-centric firm, newly-appointed CEO James Li said at the Mobile World Congress (MWC) Barcelona 2025. Honor will spend USD10 billion over the next five years to team up with global partners to build an AI terminal ecosystem, he added.In a groundbreaking move for industrial automation, UBTECH has successfully executed the world's first collaborative practical training program for humanoid robots at ZEEKR's state-of-the-art 5G-Intelligent Factory. This initiative represents a key advancement in developing a general-purpose Swarm Intelligence system for humanoid robots, marking a major leap from single-agent autonomy to swarm intelligence (SI), the Shenzhen-based company said in a press release today.The theoretical cost-profit ratio for DeepSeek's V3 and R1 models reached 545 percent based on data from Feb. 28, according to the first cost and revenue data the Chinese AI startup released on March 1. The theoretical daily profit of V3 and R1 is 3.5 million yuan but the firm’s actual revenue is significantly lower, DeepSeek warned.Firm orders for Xiaomi's new SU7 Ultra have reached 19,000 units, while locked-in one topped 10,000 units, exceeding the Chinese tech giant's expectations and completing this year's tasks ahead of schedule, Chairman Lei Jun said on Weibo yesterday. Meanwhile, Li Auto is scheduled to release its first pure electric SUV in July, the Chinese NEV maker said today. The i8, which CEO Li Xiang defined as a travel version of the Tesla's Model X, is expected to debut around the Shanghai Auto Show next month.Chinese AI startup Zhipu recently raised over 1 billion yuan in strategic financing, with government-backed Hangzhou Urban Investment Industry Fund among investors. The proceeds will support innovation and ecosystem development for Zhipu’s GLM model.Switching gears to financial newsChina's central bank and four other regulators discussed financial measures to boost private firms’ development during a meeting on Feb. 28. The PBOC will guide financial institutions to increase investment in the private economy and adopt an “appropriately loose” monetary policy to maintain ample market liquidity, Governor Pan Gongsheng said.Shanghai Futures Exchange will expand the range of tradable products for QFII and RQFII to include stainless steel, fuel oil, pulp futures, and silver and rebar options contracts from tomorrow, after having got approval from China's securities regulator.Wrapping up with a quick look at the stock marketChinese stocks closed mixed on Monday. The benchmark Shanghai Composite edged down 0.1 percent while the Shenzhen Component added 0.4 percent. Hong Kong’s Hang Seng index gained 0.3 percent while the TECH index slipped 0.6 percent.

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  8:41

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