China's economy likely cooled in the ​second quarter, with growth drifting toward the lower end of Beijing's annual target as an entrenched demand slump overshadowed resilient exports, though any fresh ‌stimulus measures are expected to be limited, Reuters reported. The world's second-largest economy is becoming increasingly unbalanced: Factory output remains robust, helped by AI-related exports, while consumption and investment continue to weaken under the weight of a prolonged property slump and fallout from the global oil shock.

Chinese regulators have issued guidance to some banks barring them from conducting bill re-discount ​operations at rates below 0.5%, sources said on ‌Tuesday, as regulators move to rein in aggressive bill buying amid weak loan demand, Reuters reported. The guidance came after bill re-discount rates plunged ​in recent months as banks — struggling to find ​willing borrowers in a sluggish economy — turned to the ⁠bill market to meet lending quotas and park ​excess liquidity. Traders have said rates as low as 0.01% ​were not uncommon at month-end.

China set no numeric target for urban job creation for the first time in at least three decades, in an apparent nod to rising uncertainty over employment as AI spreads through the economy, Bloomberg News reported. The government will instead keep new urban jobs at a "considerable scale" in 2026-2030, according to a five-year plan released Thursday by the Ministry of Human Resources and Social Security. Annual targets will be set flexibly based on each year's conditions, it said.

China's securities regulator said it was monitoring developments in a US lawsuit after Susquehanna International Group alleged insider traders made at least $100 million from well-timed options bets before Beijing's recent crackdown on illegal cross-border trading, Bloomberg News reported. The China Securities Regulatory Commission stopped short of signaling any domestic probe, saying only that it would continue to follow the case closely. It notified online brokers before the penalty announcement was made public, the CSRC said in a statement to Bloomberg on Tuesday.

For decades, thousands of niche, world-class manufacturers that form the backbone of the German economy relied on an unassailable moat: unmatched quality. Now that moat is drying up, the Wall Street Journal reported. The Mittelstand—a broad tier of midsize manufacturers, mainly specialized in capital and intermediate goods and reliant on exports—once thrived by making machines for factories everywhere. But China is now closing the quality gap and offering prices as low as half those of their European rivals.

The China New Employment Forms Research Center, a think tank, estimates the number of people in flexible employment - without a permanent full-time contract - rising to 320 million this year from 280 million in 2025, a cohort almost as large as the U.S. population and about 44% of China's workforce, Reuters reported. Analysts say China's gig economy has become a crucial employment buffer as the property crisis wipes out construction jobs and manufacturers shed workers through automation and cost-cutting amid tariffs, overcapacity and price wars.

China is stepping up efforts to eliminate risks in its financial sector, highlighted by moves to address troubles at two financial institutions, Bloomberg News reported. The National Financial Regulatory Administration announced on Friday (Jul 3) a one-year regulatory takeover of Z-Bank and approved the bankruptcy of Zhongrong International Trust, according to separate statements. The moves mark the first major enforcement actions under Ding Xiangqun, a veteran banking and insurance regulator who took the helm of the agency in late May.

China called for global measures to curb what it described as “malicious litigation” by bondholders in debt relief cases, saying such action is needed to protect a Group of 20 (G20) restructuring mechanism for poor countries struggling to repay their loans, Bloomberg News reported. The statement by People’s Bank of China deputy governor Xuan Changneng, who did not identify any specific examples, is the latest sign of tension between the world’s biggest bilateral creditor and commercial lenders when it comes to negotiating debt restructuring for nations from Ethiopia to Zambia.