Here's what happened in China's markets last trade day (10/26):

The China Securities Regulatory Commission (CSRC) will, for the first time, allow commercial real estate developers and managers to spin off their “consumption-related infrastructure assets” into a public real estate investment trust (REIT). These assets include shopping malls and department stores, which are considered mature assets that can be pooled into a REIT and give investors more diversification. It also gives owners of malls and department stores the ability to raise fresh funds to use in expansion and repayment of debt. China Resources Land, for instance, just announced it will spin off one of its shopping malls located in Qingdao to raise nearly RMB 7 billion. More are likely to follow, helping ease the funding woes in China’s real estate sector.

Total smartphone shipments hit 66.7 million for the quarter, which grew 3.7% quarter-on-quarter. But the year-on-year decline was worse than the 4% decline registered in the 2nd quarter. The top brand was Honor, once owned by Huawei, which grabbed an 18% market share. Another local brand, OPPO, took 2nd place with a 16.3% share of market, followed by Apple in third at 15.9% share. Huawei released its new flagship 5G smartphone, Mate 60 Pro, in late August while Apple came out with its iPhone 15 series in late September. The 4th quarter shipments data will tell a lot about how well or poorly the market is accepting these new smartphones. Indications are that Chinese consumers are opting for Huawei over Apple, causing iPhone 15s to go for large discounts ahead of the Singles’ Day shopping event.

That’s the plan of China Mobile, the world’s largest wireless carrier with over a billion subscribers, of which 730 million are 5G users. The company expects to roll out commercial availability of 6G wireless technology in 5 years, catapulting wireless data communication in China at speeds 100X faster than technology today. In April, Chinese researchers achieved wireless data transmission at terahertz frequency level. That makes wireless data transmission nearly as good as fiber optic cables, which opens up a whole new range of applications.

Volvo Cars, majority owned by Chinese car behemoth Geely Holdings, reported an operating income of 4.5 billion Swedish Krona (SEK) - up 114% compared to the same period last year. Revenues grew 16.5% to 92 billion SEK, while earnings per share surged 9-fold to 1.01 SEK. For the period, 13% of revenue was derived from sales of electric vehicles, nearly double the 7% share a year ago. Meanwhile, Geely plans to bring its high-end luxury EV brand, Zeekr, to the Hong Kong and Macau markets next year. The company, which markets the Zeekr at prices reaching RMB 500K ($68K) plans to sell 160,000 Zeekr units over the next two years.

Formerly Fiat Chrysler, Stellantis will take a 20% stake in Zhejiang Leapmotor for $1.58 billion through the issuance of 194 million shares at a 19% premium to the closing share price prior to the announcement. Leapmotor is one of the fastest-growing EV manufacturers in China, selling 111,168 units last year - a more than 10-fold increase from 2020 levels. In July, the company hit a monthly record for deliveries with 14,335 units. The two companies will enter into a technological partnership, while also creating a company to tap overseas market. The international push will be majority-owned by Stellantis, which will have exclusive rights for the export, sale, and manufacturing of Leapmotor products outside China.