China Holds LPR at Record Lows Amid Growth Pressures

RESEARCH REPORT

Plantation – Maintain Momentum
• Inventory shortfall / surging imports boost CPO price
• Maintain Overweight
(Please refer to our report here)

MACROECONOMY
China Holds LPR at Record Lows Amid Growth Pressures

The People’s Bank of China kept the one-year LPR at 3.0% and the five-year LPR at 3.5% in July, as the economy faces US tariffs, weak domestic demand, and a property slump. 2Q25 GDP rose 5.2% YoY, slightly above forecasts but down from 5.4% in the previous quarters, while 1H25 growth stood at 5.3%. Deflationary pressures persist despite strong bank lending and a May rate cut of 10 bps to support growth. (Trading Economics)

INDUSTRY

Indonesia's Hybrid Car Shipments Rise in 1H25
Indonesia’s wholesale hybrid car shipments reached 28,817 units in 1H25 (+0.85% YoY), driven by more hybrid model launches. June shipments rose to 5,998 units, recovering from earlier declines. Toyota led with 16,081 units, mainly Kijang Innova Zenix, followed by Suzuki with 8,513 units and Hyundai with 1,544 units. New hybrid models like Daihatsu Rocky Hybrid and Toyota Veloz Hybrid are expected to debut at GIIAS 2025 to further boost the market. (IDXChannel)

COMPANY
Astra International (ASII) to Acquire 83.67% Stake in Mega Manunggal Property (MMLP)
ASII, through its indirectly owned subsidiary Saka Industrial Arjaya, signed a conditional share purchase agreement on 21 Jul-25 to acquire 83.67% of MMLP from Suwarna Arta Mandiri, Bridge Leed Limited (17.51%), and other minority holders. Upon completion, SIA will become the new controlling shareholder and launch a mandatory tender offer. (Emitennews)