International News 21 October 2025
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China’s Economic Growth Slows to 4.8% in Q3 Amid Trade Tensions with U.S.
China’s economy expanded 4.8% year-on-year (YoY) in the third quarter of 2025, matching analyst expectations but slowing from 5.2% growth in the previous quarter, according to data from the National Bureau of Statistics (NBS) released Monday (October 20, 2025). On a quarterly basis (QoQ), GDP rose 1.1%, slightly above forecasts of 0.8%, signaling modest resilience despite mounting headwinds. The government’s annual growth target of around 5% now appears increasingly difficult to achieve amid persistent weakness in domestic consumption, an ongoing property crisis, and escalating trade frictions with the United States. Economists note that China’s post-pandemic recovery has lost momentum since early 2025 as sluggish exports, fragile business confidence, and continued stress in the real estate sector weigh on growth. The trade conflict with Washington—marked by tariffs and restrictions on high-tech exports—has further pressured external demand. Despite policy efforts, including stable lending rates and targeted stimulus, analysts warn that structural challenges in investment and household spending could limit China’s near-term rebound.
Nikkei 225 Soars to Record High Ahead of Takaichi’s Premiership
Japan’s Nikkei 225 index surged 3.4% to close at 49,185.50 on Monday (October 20, 2025), setting a new all-time high as investors priced in political stability under Sanae Takaichi, who is expected to become the country’s next prime minister. The broader Topix index also gained 2.5%, while Japanese government bonds (JGBs) weakened, sending yields higher. The rally followed Takaichi’s victory in the second round of the Liberal Democratic Party (LDP) leadership race and her agreement to form a coalition government with the right-wing Japan Innovation Party (Ishin), which pledged to back her in Tuesday’s parliamentary vote. Analysts noted that the fragmented opposition makes her confirmation as prime minister almost certain. Tech and industrial shares led the gains, with SoftBank Group rising 8.5%, Yaskawa Electric up 7.2%, and Fanuc climbing 6.5%, while only seven stocks on the Nikkei ended lower. Analysts at Nomura Securities said market sentiment was buoyed by expectations of Takaichi’s pro-growth, Abenomics-style policies, with the next target seen at the psychological 50,000 level. However, bond markets remained volatile, reflecting uncertainty over fiscal expansion. The five-year JGB yield rose 5 basis points to 1.24%, and the 10-year yield gained 4.5 bps to 1.67%, while long-term yields edged slightly lower. Among decliners, retailer Ryohin Keikaku (Muji) fell 2.5% after halting online operations following a cyberattack on its logistics provider.
Sany Heavy Industry Eyes $1.59 Billion Hong Kong IPO to Boost Global Expansion
Chinese construction machinery giant Sany Heavy Industry Co. is seeking to raise HK$12.36 billion (US$1.59 billion) through an initial public offering (IPO) in Hong Kong, according to its prospectus filed on Monday (October 20, 2025). The company plans to sell 580.4 million shares within a price range of HK$20.30–HK$21.30 per share, with final pricing expected on Friday. Trading is scheduled to begin on October 28. Shares of Sany, already listed in Shanghai, have soared 36.5% year-to-date, more than double the local market’s performance. The proceeds will be allocated to strengthen Sany’s global footprint, with 45% earmarked for expanding international sales and service networks, 25% for research and development, and 20% for building new overseas manufacturing bases. Cornerstone investors—including Temasek, Hillhouse, UBS Asset Management, BlackRock, and Oaktree—have committed around US$759 million in the offering. The IPO underscores Hong Kong’s resurgence as a fundraising hub for Chinese firms, following recent listings such as Chery Automobile and LG Electronics India, as well as upcoming plans from Miniso’s Top Toy and Momenta. According to LSEG data, Hong Kong has now overtaken the New York Stock Exchange in global IPO volume for 2025.