BRICS to help augment growth in Global South, advance reform of governance

Hi everyone. I’m Stephanie LI.Coming up on today’s programBRICS Summit concluded on Monday in Brazil, urging to be vanguard in advancing global governance reform as it stands at the forefront of the Global South;The PBOC will broaden onshore access to offshore bonds via Bond Connect with Hong Kong.Here’s what you need to know about China in the past 24 hoursThe 17th BRICS Summit concluded on Monday, offering a platform for Global South countries to voice their perspectives and demonstrate their commitment to building a more inclusive, equitable, and sustainable world.Themed "Strengthening Global South Cooperation for More Inclusive and Sustainable Governance", the 17th BRICS Summit is being held in Rio de Janeiro, Brazil, from Sunday to Monday. This was the first summit held after the latest member Indonesia and 10 partner countries joined the grouping. In addition, some emerging markets and developing countries, international and regional organizations were invited to attend the meeting.The summit came as the international multilateral system continues to erode, the 90-day pause on additional tariffs imposed by the United States nears its end on Wednesday, and global trade, security and governance face uncertainty and new challenges.Given the situation, all eyes were on the 17th BRICS Summit to see what kind of strategy the champion of the Global South and a stabilizing force in an increasingly volatile world comes up with to tone down differences and ensure a fair and balanced international order.The leaders of countries participating in the meeting noted that the BRICS cooperation mechanism has continued to grow stronger and more representative, with its international influence rising steadily.It has provided an important platform for Global South countries to defend their right to development, uphold international fairness and justice, and participate in the reform of the global governance system, they said.The growing significance of BRICS on the global stage is increasingly clear, both in demographic and economic terms. With its recent expansion, BRICS now represents about 41 percent of the world's population, roughly 4 billion people.The BRICS-led New Development Bank, which announced to have added Colombia and Uzbekistan as new members on Saturday, has emerged as a pioneering initiative for countries seeking sustainable and inclusive growth, experts noted.Over the past decade, the NDB has approved more than 120 projects worth a total of US$40 billion, offering financial support to member countries across various sectors, including infrastructure, clean energy, environmental protection, and digital development.GBA expressThe People’s Back of China said on Tuesday more mainland-based institutions would be allowed to invest offshore through the Bond Connect scheme, with authorities planning to open it up to non-banking investors. The scheme enables onshore investors to access Hong Kong's bond market. Since the launch of Bond Connect eight years ago, it has become overseas investors’ preferred channel to access China’s bond market, with international holdings soaring fivefold to CNY4.4 trillion, said Bonnie Chan Yiting, CEO of Hong Kong Exchanges and Clearing (HKEX) at the program’s anniversary summit on Tuesday. Hong Kong is set to launch its stablecoins licensing regime as early as August, with approvals likely capped in the "single digits" this year, according to Financial Secretary Christopher Hui. Hui noted that stablecoins will serve “resolve difficulties and points of pain in the real economy”. He explained that one of the most precious use cases is to improve cross-border payments, especially in regions with unstable local currencies or underdeveloped financial systems.Hong Kong-listed Chinese milk tea chains continued to surge today amid intensifying competition among major food delivery platforms, which rolled out large discount coupons to attract users. ChaPanda jumped 11 percent, Naixue rose 2 percent, and Auntea Jenny gained 4 percent in the morning session.Industry and company newsChina’s box office, including presales, exceeded CNY30 billion so far this year as of today, achieving the milestone 28 days earlier than last year, according to movie data tracker Beacon. Ne Zha 2, Detective Chinatown 1900, and Creation of the Gods II are the highest grossing films.China plans to deploy over 100,000 high-power charging stations nationwide for electric vehicles by 2027, according to a policy issued by four central government agencies. The initiative focuses on supporting "charge-and-go" use to accelerate public acceptance of electric mobility. Following the announcement, shares of companies related to charging rallied sharply on mainland A-share markets, with Autosun rising 10 percent to the daily trading limit.The ISO has released a new international standard for autonomous driving system test scenarios led by China. It outlines the evaluation process for test scenarios of autonomous driving systems, clarifies the requirements for evaluation indicators, and defines the general methods and characteristics of test cases, China's Ministry of Industry and Information Technology announced yesterday.Asia-Pacific highlightsUS President Donald Trump signed an executive order to delay the implementation of the so-called “reciprocal tariffs” to Aug. 1. Trump said yesterday that the US will impose tariffs of 25 percent to 40 percent on imports from 14 countries, including Indonesia, Japan, Malaysia, Serbia, South Africa, South Korea, and Thailand from next month. Japanese Prime Minister Shigeru Ishiba said on Tuesday that the 25 percent tariff is "truly regrettable," adding that he would continue negotiations to seek a mutually beneficial trade deal. While South Korea's Presidential Office said it needs to "make utmost efforts on negotiations with the US by putting national interests at the top priority.”Ong Tee Keat, chairman of the Center for New Inclusive Asia in Malaysia and former Malaysian MP, told 21st Century Business Herald that the completion of negotiations on the China-ASEAN Free Trade Area (CAFTA) 3.0 is a pivotal step toward a “qualitative leap” in bilateral trade. During a recent interview, Ong said the upgraded agreement, covering not only merchandise trade but also investment and services, introduces new chapters on digital trade, green energy, digital economy, cross-border e-commerce, consumer rights protection, and competition policies—all centered on sustainable development. Ong noted that these additions will influence the Regional Comprehensive Economic Partnership (RCEP) to align with similar standards. Amid rising global trade tensions, the launch of CAFTA 3.0 emerges as a positive counterforce, reinforcing free trade and economic integration in the region, he said.