More Chinese Banks Cut Rates as Demand Deposit Interest Near Zero
Following the lead of six major state-owned banks and institutions like China Merchants Bank and China Everbright Bank on May 20, an additional seven banks—including Ping An Bank, China CITIC Bank, Industrial Bank, SPD Bank, China Minsheng Bank, GF Bank, and Huaxia Bank—announced deposit rate cuts on May 21, further signaling a coordinated shift in the domestic banking sector.
The latest round of adjustments sees deposit interest rates lowered by 5 to 25 basis points. After the changes, six joint-stock banks—GF Bank, Ping An Bank, CITIC Bank, Huaxia Bank, Industrial Bank, and SPD Bank—have now standardized their RMB deposit rates, aligning closely with one another across both demand and time deposit categories.
Updated RMB Deposit Rates (Post-Cut):
- Demand deposit rate: 0.05% (down 5 basis points)
- Time deposit (fixed-term) rates:
The rate adjustments reflect broader efforts by Chinese financial regulators and banks to lower funding costs, guide interest rate expectations, and support credit expansion, particularly as the economy grapples with deflationary pressure and seeks to stimulate domestic demand. Analysts note the coordinated move may also help stabilize margins for banks facing narrowing spreads amid a low-rate environment.
3SBio Signs Landmark $5.3 Billion Licensing Deal with Pfizer for PD-1/VEGF Bispecific Antibody
On May 20, Hong Kong-listed biopharmaceutical company 3SBio Inc. (01530.HK) announced it has signed an exclusive licensing agreement with Pfizer for the global development and commercialization of its independently developed PD-1/VEGF bispecific antibody, SSGJ-707.
Under the agreement, Pfizer will obtain exclusive rights to develop, manufacture, and commercialize SSGJ-707 globally—excluding mainland China. In return, 3SBio will receive a $1.25 billion upfront payment, and is eligible for up to $4.8 billion in development, regulatory, and commercial milestone payments, as well as tiered double-digit percentage royalties based on net sales in the licensed territories. 3SBio retains the option to commercialize the drug within China.
As part of the strategic collaboration, Pfizer will also subscribe to $100 million worth of newly issued 3SBio shares, based on the 30-day volume-weighted average price.
The announcement sent 3SBio shares surging 13.81% on the same day, while its subsidiary SinoMab BioScience (三生国健) hit the 20% daily limit.
This milestone transaction marks one of the largest outbound licensing deals in China’s biotech sector in recent years, setting a new benchmark for Chinese innovation in biologics. It also signals escalating global interest and competition in the rapidly emerging PD-1/VEGF bispecific antibody space—an area viewed as a promising frontier in cancer immunotherapy.
Lebanese EV Maker EV Electra Establishes $143M Joint Venture in China with HiPhi
On May 22, Jiangsu HiPhi Automobile Co., Ltd., a new joint venture backed by Lebanese electric vehicle manufacturer EV Electra Ltd., was officially registered in Yancheng, Jiangsu province, with a registered capital of over USD 143 million (more than CNY 1 billion). The company lists Jihad Mohammad—founder and CEO of EV Electra—as its legal representative.
The newly established joint venture includes two major shareholders:
- EV Electra Ltd., which holds a 69.8% majority stake, and
- Human Horizons (Jiangsu) Technology Co., Ltd. (华人运通), which owns the remaining 30.2%.
EV Electra, headquartered in Lebanon, is widely regarded as the first homegrown electric vehicle manufacturer in Lebanon and across the Arab world. Founded by Jihad Mohammad, the company has rapidly expanded its global footprint with operations and branches in Canada, Italy, Germany, Turkey, and Sweden, according to its official website.
In a notable sign of collaboration, EV Electra prominently features HiPhi’s three flagship models—HiPhi X, HiPhi Y, and HiPhi Z—on the homepage of its corporate website, highlighting the strategic alignment between the two firms.
This high-profile joint venture reflects both the globalization of EV manufacturing and the growing strategic ties between emerging-market innovators. It also marks a bold step in restructuring and revitalizing the HiPhi brand, which has faced financial difficulties in recent months. For EV Electra, the move into China—the world’s largest EV market—represents a major milestone in its global expansion strategy.
Huawei Launches HarmonyOS PCs in Strategic Push to Challenge Microsoft and Apple
On May 19, Huawei Technologies officially launched its first personal computers powered by its self-developed HarmonyOS operating system, marking a bold step to challenge the long-standing dominance of Microsoft Windows and Apple macOS in the global desktop OS market.
Unveiled in Chengdu, Sichuan province, the HarmonyOS PC line is the result of five years of research and development, backed by over 2,700 core patents, and involving more than 10,000 engineers and 20 research institutes, according to Huawei. The company said its new operating system offers a high-performance, AI-integrated alternative to traditional PC platforms, capable of handling demanding tasks with exceptional speed and stability. For example, a 1-gigabyte, 100-page PowerPoint presentation reportedly opens in just one second.
The PCs run on HarmonyOS 5, which introduces AI processing at the device level, reducing dependence on cloud services and enabling more seamless, intelligent user experiences. Huawei also confirmed that over 2,000 applications are being adapted for the platform, with more than 300 already available.
HarmonyOS for PCs represents Huawei’s broader ambition to build a fully independent and secure technology ecosystem, particularly in light of increasing U.S. restrictions on Chinese tech companies. While China has long sought to develop its own desktop operating systems, previous efforts have largely been Linux-based adaptations with limited market traction. HarmonyOS aims to rewrite that narrative.
With the convergence of smartphones, tablets, wearables, and PCs in the era of the Internet of Everything, Huawei positions HarmonyOS as a unified platform that enables cross-device integration, making features like multi-screen collaboration and shared computing resources a reality.
The launch of HarmonyOS PCs is seen as both a technological milestone and a geopolitical statement—a move to strengthen China’s self-reliance in core technologies and secure its digital infrastructure against external dependencies. As Huawei deepens its ecosystem, the success of HarmonyOS PCs will be closely watched by both global competitors and policymakers alike.
Xiaomi Unveils Breakthrough 3nm Mobile Chip, Becoming Global Industry’s Fourth Mover
On May 19, Xiaomi founder and CEO Lei Jun announced via Weibo that the company’s first self-developed and self-designed 3nm mobile processor chip, named Xring O1, is set for official launch. This marks a significant milestone for China’s semiconductor industry, positioning Xiaomi as the fourth company globally—after Apple, Qualcomm, and MediaTek—to unveil a 3nm smartphone processor.
The achievement represents a major leap forward in China’s pursuit of cutting-edge semiconductor design capabilities. Lei highlighted that the R&D scale and team size behind the Xring O1 rank “among the top three in China’s semiconductor design sector.” He emphasized that such progress would not have been possible without deep technical strength and substantial investment.
“To build true flagship products, mastering core technologies is essential,” Lei said. “Without great determination and courage, Xring O1 wouldn’t be where it is today.”
The Xring project began in 2021, when Lei Jun reignited Xiaomi’s chip ambitions with a commitment to long-term, large-scale investment. The project reportedly includes a team of 2,500 engineers, a total budget of CNY 50 billion (approx. USD 6.9 billion), including R&D spending exceeding CNY 13.5 billion (approx. USD 1.87 billion).
Xiaomi’s entry into the elite circle of 3nm chip designers marks more than just a commercial milestone—it reflects the broader resilience and ambition of China’s tech sector, which continues to push for self-reliance in key strategic industries amid global headwinds.
As Lei noted, “Technology competition is not a sprint—it’s a marathon.” His decade-long vision and multi-billion-yuan investment in chip development underscore not only Xiaomi’s strategic commitment, but also China’s determination to narrow the tech gap with international giants.
While the final commercial performance of Xring O1 remains to be seen, its arrival sends a powerful message: Chinese tech firms are no longer just followers—they are becoming contenders on the global innovation stage.