China’s longstanding two-speed economy is creating ever greater divergence in its financial markets, with stocks and bond yields sinking to more than one-year lows this month while the yuan has powered higher.

China’s government bond supply is poised to pick up next quarter as the authorities look to speed up debt issuance to fund stimulus, potentially challenging the market’s rally.

Taiwan’s central bank has scaled back issuance of a popular short-term debt instrument in a move that will leave more cash in the banking system.

China’s central bank strengthened the yuan’s reference rate for a fifth straight day, aiming to offset the dollar’s recent gains ahead of President Xi Jinping’s summit with US counterpart Donald Trump later this month.

China’s government bond sales are expected to pick up after a lull as authorities seek to boost a sluggish economy, with increased issuance likely to prompt the central bank to inject more liquidity.

The Taiwan dollar’s strongest monthly rise in over a year is running into a wall of headwinds, sowing doubts among analysts on the sustainability of its rebound.

Chinese long-end bond yields are tumbling as traders bet on further economic weakness, highlighting a growing divide with global markets where yields have soared to multi-year highs.

Hong Kong raised its full-year growth forecast after a global investment boom in artificial intelligence supercharged exports and helped deliver the economy’s strongest first-half performance in almost five years.

China’s central bank injected liquidity through overnight reverse repos on Friday, marking its first such operation in the middle of a month in a boost to bond bulls.

China is working closely with Hong Kong authorities to expand the Stock Connect cross-border trading link by adding yuan-denominated stock counters and real estate investment trusts, according China Securities Regulatory Commission Chairman Wu Qing.

The yuan strengthened to its highest level in more than three years against the dollar, buoyed by the renewed weakness in the US currency and continued policy support from Chinese authorities.

Taiwan’s five‑year bond yield climbed to the highest level in almost two decades as a disappointing 20-year sale last week and growing expectations for a central bank interest-rate hike spurred a selloff.

China’s central bank made its biggest addition of liquidity to the economy in five months via its medium-term lending facility to support growth ahead of its late July Politburo meeting and to accommodate government bond issuance.

China’s central bank said it’s boosting longer-term liquidity injections through outright reverse repurchase agreements, a move expected to help companies and individuals handle upcoming tax payments and to sustain demand for debt issuance.

The yuan advanced after China’s central bank signaled its comfort with the currency’s strength by setting the daily reference rate below 6.80 per dollar for the first time since 2023.

The Taiwan dollar fell to its weakest level since April 2025, erasing gains from last year’s historic rally as dollar strength and record dividend payouts weighed on sentiment.

Singapore Airlines Ltd. said it will begin rolling out a Starlink broadband service on its flights from 2027, with the system promising faster connectivity than its existing inflight offering.

A fund focusing on smaller Taiwanese firms in the AI supply chain has emerged as a big winner, with a diversified strategy helping it weather the volatility that has rattled the industry over the past year.

Investors are growing more upbeat about China’s push to build a “smart economy,” with AI, semiconductors and a range of frontier technology sectors emerging as beneficiaries of the policy drive.

Hong Kong’s technology and financial companies are poised to benefit from the city’s spending plan as the government accelerates artificial intelligence adoption across sectors.