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China Economy 19 August 2025 - 15 October 2025

Hermès Shares Drop Nearly 10% as China Stalls and Growth Narrows
LVMH Stock Surges 12% on China Boost – Luxury Giant Regains Momentum

LVMH Stock Surges 12% on China Boost – Luxury Giant Regains Momentum

LVMH shares skyrocketed after the company’s third-quarter update hinted at a turnaround. When markets opened on Oct. 15, the stock spiked about 12%, hitting roughly €597 in morning tradeinvesting.com. It was the steepest intraday jump LVMH has seen in almost two years, propelling the company back to the top of France’s market capitalization rankingsreuters.com. The catalyst was LVMH’s better-than-expected Q3 sales report: organic revenue increased ~1% in the quarter, a sharp improvement from declines earlier in 2025reuters.com. This modest growth – driven largely by a rebound in Chinese luxury spending – broke a streak of negative quarters and “offered some solace to a luxury goods sector grappling with a prolonged slump,” as Reuters notedreuters.com.
15 October 2025
ASML Stock Surges on AI Boom but Faces China Headwinds – What Investors Must Know

ASML Stock Surges on AI Boom but Faces China Headwinds – What Investors Must Know

ASML’s stock has been on a tear heading into mid-October. The company’s American depositary shares traded near $980 on October 15, 2025, up from around $935 a week earlier and not far from their all-time hights2.techts2.tech. In Amsterdam, ASML’s ordinary shares closed at approximately €847 on Oct. 14, continuing a rally from ~€813 at the start of last weekts2.tech. This ~4% weekly rise outpaced the broader semiconductor index and brings ASML’s gain since early September to about +32%reuters.com. Year-to-date, the stock has dramatically rebounded from last year’s lows to new highs, fueled by enthusiasm around artificial intelligence demand.
China’s Rare Earth Clampdown Sparks Trade War Shockwaves in Tech and Stocks

China’s Rare Earth Clampdown Sparks Trade War Shockwaves in Tech and Stocks

China’s latest restrictions on rare earth exports mark a major escalation in the strategic trade standoff with the United States. On October 9, 2025, Beijing’s Ministry of Commerce unveiled “Announcement No. 61”, dramatically tightening export controls on a range of critical rare-earth elementsaljazeera.com. Five additional rare-earth metals – holmium, erbium, thulium, europium and ytterbium – were added to China’s export control list, on top of seven elements already restricted since Aprilaljazeera.com. In effect, 12 out of the 17 rare earth elements are now subject to Chinese export licensing and quotasaljazeera.com. These metals might sound obscure, but they are fundamental ingredients in modern high-tech manufacturing and defense. By expanding the list, China has for the first time placed well over half of the rare-earth periodic table off-limits without special permission.
Rare Earth Boom: MP Materials Stock Skyrockets on Pentagon Deal, China Curbs – Hype or Game-Changer?

Rare Earth Boom: MP Materials Stock Skyrockets on Pentagon Deal, China Curbs – Hype or Game-Changer?

Rare earth elements – a group of 17 metals like neodymium, praseodymium, dysprosium, and terbium – may not be household names, but they are the lifeblood of modern tech and defense industries. They power the magnets in electric vehicle motors and wind turbines, enable the miniaturization of smartphones and precision-guided missiles, and are critical for fighter jet engines and satellites. For years, the United States has been almost entirely dependent on imports of these resources, especially from Chinats2.tech. In fact, China currently accounts for roughly 70% of the world’s rare earth ore production and over 90% of processing capacity – giving it a near chokehold on global supplyts2.tech.
China’s Manufacturing Slump Deepens: Factories Freeze for 6th Month – Experts Warn of Lingering Weakness

China’s Manufacturing Slump Deepens: Factories Freeze for 6th Month – Experts Warn of Lingering Weakness

China’s official manufacturing PMI in September was 49.8, up slightly from 49.4 in August but still indicating contraction bloomberg.com reuters.com. This means more factories are shrinking output than expanding. September marked the sixth consecutive month the PMI stayed below 50, the longest downturn since mid-2019 bloomberg.com. Reuters notes this “prolonged slump” reflects the economy’s struggle with weak demand and trade pressures reuters.com reuters.com. As one analyst put it, “The rebound reflects a seasonal uptick… but a continued upcycle is still some way off” given capacity and global headwinds reuters.com.
30 September 2025
Global Business Roundup: Oil Rally, SoftBank’s $2B Intel Lifeline & China’s Big Debt Deal (Aug 18–19, 2025)

Global Business Roundup: Oil Rally, SoftBank’s $2B Intel Lifeline & China’s Big Debt Deal (Aug 18–19, 2025)

Sources: Key stories were drawn from Reuters unless otherwise noted. Reuters provided detailed reporting on financial markets reuters.com reuters.com, corporate deals reuters.com reuters.com, energy prices reuters.com reuters.com, retail shifts reuters.com reuters.com, property sector turmoil reuters.com reuters.com, automotive developments reuters.com reuters.com, and healthcare breakthroughs reuters.com reuters.com between August 18 and 19, 2025. Additional context was incorporated from reputable financial news outlets and industry analysts to provide background and implications for each development.
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#1 STRONG BUY

Taiwan Semiconductor

NYSE: TSM 96 / 100
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AerCap

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Constellation Energy

NASDAQ: CEG 93 / 100
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Walt Disney

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American International Group

NYSE: AIG 87 / 100
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