Key Takeaways
- Zhipu AI (2513) shares surged up to 22% in Hong Kong after the company successfully raised $4 billion (HK$31.37 billion) through a discounted share placement to fund foundation model R&D.
- Germany's trade surplus widened to €19.1 billion in May, far exceeding estimates of €14.8 billion, as exports unexpectedly grew 0.9% while imports fell 2.5%.
- China's auto market remains under pressure with total vehicle sales falling 3.2% in June, though New Energy Vehicle (NEV) retail penetration hit a near-record 62.8%.
- Israel's Defense Minister declared that IDF forces will remain in a southern Lebanon "security zone" indefinitely until Hezbollah is fully disarmed, dismissing calls for a withdrawal.
- South Korea's Supreme Court ruled that CJ Logistics (000120) is not legally obligated to engage in collective bargaining with subcontracted delivery drivers, a significant setback for gig-economy labor rights.
Zhipu AI Secures $4 Billion to Fuel China’s AI Ambitions
Beijing-based Zhipu AI, trading as Knowledge Atlas Technology (2513), saw its shares jump as much as 22% in early Thursday trading following a massive $4 billion fundraising effort. The company sold 19.78 million shares at HK$1,588 each, representing a 13% discount to its previous close. Despite the dilution, investors rallied behind the firm, which has seen its stock price climb nearly 1,300% since its January debut.
The capital injection is earmarked for large-language-model (LLM) research and cloud computing infrastructure. Zhipu AI, a spinoff from Tsinghua University, is currently competing with global giants like OpenAI and domestic rivals such as DeepSeek and Moonshot AI. The company recently launched its GLM-5.2 model, signaling its intent to lead the "AI arms race" in China.
German Trade Surplus Widens Amid Export Resilience
The German economy provided a positive surprise on Thursday as the Federal Statistical Office (Destatis) reported a trade surplus of €19.1 billion for May. This figure significantly outperformed the €14.8 billion forecast by economists. While analysts expected a decline in exports, they instead rose 0.9% month-on-month, driven by a 3.6% increase in shipments to countries outside the European Union.
Conversely, imports fell by 2.5%, wider than the anticipated 0.8% drop. This divergence suggests that while German industrial demand abroad remains robust, domestic consumption and industrial input demand may be cooling. In Northern Europe, Finland reported a less favorable trade balance for May, with a deficit of -€910 million, deepening from the previous month’s -€288 million.
China Auto Sales Struggle Despite NEV Dominance
The China Passenger Car Association (CPCA) released data showing a continued slump in the world's largest auto market. Total vehicle sales in June declined 3.2% year-on-year, following a 2.1% drop in May. For the first half of 2026, overall auto sales have fallen 4.1%, a sharp reversal from the 11.4% growth recorded during the same period last year.
The silver lining remains the New Energy Vehicle (NEV) sector. NEV sales climbed 7.3% in the first half of the year, with retail penetration reaching 62.8% in June. While domestic retail demand for NEVs saw a slight year-on-year dip, exports surged by 152.7%, highlighting the global expansion of Chinese manufacturers like BYD (002594) and Xiaomi (1810).
Geopolitical Tensions Escalate in Southern Lebanon
Israeli Defense Minister Israel Katz reaffirmed a hardline stance on the conflict in Lebanon, stating that Israeli forces will not seek permission from any external party regarding military operations. Katz emphasized that the IDF will remain active in a self-proclaimed security zone until Hezbollah is completely disarmed across all of Lebanon.
This statement directly counters recent suggestions of a potential withdrawal and follows the signing of a US-sponsored trilateral framework intended to path a way toward peace. However, with Hezbollah leadership rejecting the disarmament terms as a "humiliation," the prospect of a prolonged Israeli military presence in southern Lebanon appears increasingly likely.
Legal Setback for South Korean Delivery Drivers
In a landmark labor ruling, the Supreme Court of South Korea cleared CJ Logistics (000120) of any obligation to negotiate with a union representing delivery drivers. The court overturned a lower court's decision, ruling that because the drivers are technically contracted to local agencies rather than the parent company, CJ Logistics does not qualify as their "employer" under the former Trade Union Act.
The decision is a blow to the National Courier Labor Union, which has long fought for better working conditions and a five-day workweek. While a separate recent ruling recognized the "employee status" of some platform riders for the first time, this Supreme Court decision reinforces the legal barriers facing subcontracted workers in the logistics sector.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.