Donald Trump requests US Supreme Court to stop TikTok prohibition

The incoming president mentions his recent electoral victory as a justification for being the 'appropriate legal player to settle the conflict via political routes.'

Trump "does not express an opinion on the fundamental issues of this argument", as stated in the submission. "Rather, he courteously asks the court to contemplate postponing the act's divestment deadline of January 19, 2025, while it evaluates the validity of this case."

This would allow the "incoming government to seek a political solution to the problems raised in the case," it further stated.

TikTok is urging the US Supreme Court to declare the divest-or-ban law unconstitutional, with Trump offering his opinion. The Supreme Court is scheduled to hear verbal arguments on January 10, just nine days before the controversial law is slated to be implemented.

In a document submitted to the US Supreme Court last Friday, TikTok once again asserted that a law demanding the Chinese-owned brief video application to be prohibited by January 19, 2025, unless it's sold to a buyer not from China, is against the constitution and should be prevented.

Closing down the platform will suppress the voices of petitioners and the over 170 million monthly American users who discuss politics, arts, business, and other public interest topics there, as demonstrated by the immense engagement shown during the recent presidential elections," TikTok contended in its submission.

The claim was that "Congress singled out TikTok due to conflicts over the nature of the content shared by TikTok's users and the supposed editorial decisions made by TikTok Inc in distributing that content."

In the document submitted, TikTok identifies itself as an American firm, despite being under the ownership of ByteDance, which originated in Beijing in 2012. TikTok states that ByteDance was established by Chinese businesspeople, however, it's now estimated that around 60% of the firm is effectively owned by international institutional investors.

"The brief stated that Congress has no valid reason to interfere with the operations of a U.S. speech platform, or to manipulate its editorial decisions regarding the variety of content it shares – regardless of whether some part of that content is considered by Congress to be foreign propaganda."

The electric vehicle market in China is facing another round of price cuts, posing a risk to car manufacturers that are already not profitable. The predicted drop in sales following the end of a subsidy is likely to further strain the finances of smaller companies.

Analysts predict that the financial constraints plaguing smaller electric vehicle manufacturers will likely worsen due to a predicted drop in sales after a government grant runs out at the end of the year.

"All car manufacturers recognize the importance of maintaining their market presence in 2025 because of increasing price competition," stated Eric Han, a top-ranking manager at Suolei, a consultancy business in Shanghai. "To withstand the price battle, the majority of these companies will need to provide price reductions."

This week, Tesla also reduced the price of its Model Y SUV by 10,000 yuan in mainland China. Given the original price of 249,900 yuan for the standard model, this equates to a discount of 4 per cent.

"Top competitors' approach of reducing prices will likely be mirrored by their lesser counterparts, as maintaining current prices could lead to a loss of clientele," stated Tian Maowei, a sales executive at Yiyou Auto Service in Shanghai. "In the present times, consumers with a moderate income are becoming more aware of pricing, mainly due to worries about salary reductions in a decelerating economy."

Battle of Technology in 2024: China swiftly advances in AI competition, though US restrictions on chips pose a threat

China's plentiful funding and open-source strategy have propelled it to the leading position in AI, however, a shortage of sophisticated chips could be disastrous.

"Each time a new product is launched, I'll test it out," stated Shi. He would opt for a paid subscription if a particular tool caught his attention and left him impressed.

Shi is one of several technologically adept Chinese individuals who have been pampered with a plethora of locally-produced generative AI (GenAI) offerings. These offerings are a result of the fierce competition between influential tech companies and wealthy start-ups vying for consumers in a rapidly expanding market. By November, the authorities had sanctioned 252 GenAI services to be launched to the public in the nation.

Despite initially lagging behind Western companies in the AI competition sparked by OpenAI's launch of ChatGPT in late 2022, Chinese businesses have swiftly made progress this year.

OpenAI hinted at Sora's arrival in early February, offering exclusive access to a select group of testers. It appeared as though China's AI competitors, already struggling due to rising US chip restrictions, were falling behind.

Clarification | OpenAI, the creator of ChatGPT, intends to become a public benefit corporation

This transformation is designed to potentially make OpenAI more appealing to investors, whilst continuing its commitment to support a relevant charity.

OpenAI's recent restructuring is designed to possibly create a more appealing entity for investors, while still upholding its commitment to support a corresponding charitable organization.

What does PBC mean?

Even though PBCs and conventional corporations both aim to make profits, PBCs have a legal obligation to strive for at least one public advantage, which can encompass social and environmental objectives.

In 2013, Delaware revised its general corporate law to permit the establishment of PBCs. Jens Dammann from the University of Texas found that, by December 2023, there were 19 PBCs trading publicly.

OpenAI characterized the present model in its blog as a profit-oriented entity overseen by a non-profit, with a profit limit set for both investors and workers.

In the revamped structure, the non-profit entity will hold stakes in the profit-making business, in a way comparable to external investors. The profit-oriented establishment will finance the philanthropic objectives of the non-profit organization.

The appeal for the 'old money' aesthetic is on the rise in China, as the flashy extravagance of the newly wealthy is being disregarded during an economic downturn. Whether you refer to it as old money style or understated luxury, the enduring appeal of minimalist design and simplicity continues to captivate Chinese consumers.

Few sectors of China's economy have successfully navigated the downturn following the pandemic. The real estate sector continues to struggle and banking loans have dwindled. However, the charm of "vintage style" has managed to survive, despite the economic decline in consumer expenditure.

Conversations about defining the fashion style and how to emulate it are gaining popularity on well-known social media sites, such as Douyin and Xiaohongshu. Products labeled with this style, which include jumpers and belts priced as low as 20 yuan (US$2.70) to high-end European brands that embody the look, are inundating online shopping sites and experiencing rapid sales.

Brunello Cucinelli, a renowned Italian label often associated with traditional wealth visuals, has recently upgraded its sales growth forecast in China to potentially 12 per cent. Meanwhile, Ralph Lauren experienced a 13 per cent increase in China during the last quarter, following an impressive 25 per cent surge in 2023.

This approach, which prioritizes simplicity in design and high-grade materials, garnered international attention in 2023, partly due to the influence of the TV drama Succession, which depicts the family controlling the biggest entertainment conglomerate in America. Its popularity in China indicates a move towards a more understated way of life, valuing excellence and straightforwardness in the face of uncertainty, according to experts.

"This is in line with today's customer perspective," stated Jason Yu, the general manager at CTR Market Research. "In this day and age, individuals are not keen on being overly showy. They would rather maintain a subdued profile, indirectly displaying their preferences and fashion sense in a manner that doesn't attract attention."

"He further stated that it doesn't imply one must purchase exclusively high-priced products, as numerous budget-friendly brands are also embracing this trend."

The allure of vintage wealth style in China strikingly contradicts the grim economic conditions where families are frugally saving and stashing away money at an unprecedented rate for unforeseen circumstances. In November, retail sales in Beijing and Shanghai, two of the richest and biggest cities on the mainland, experienced a decline of approximately 14 percent.

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Despite the enhanced living conditions in Hong Kong, a growing number of its residents are expressing a desire to relocate to mainland China.

Bankers predict a significant increase in Hong Kong's IPO market in 2025 due to regulatory advantages and favorable interest rates. Deloitte, which has been tracking the city's IPO data since 2011, projects a 71% rise in Hong Kong's IPO volume to hit US$19.3 billion in 2025.

"The general outlook for the IPO market in 2025 is expected to get better for a number of reasons," stated John Lee Chen-kwok, who is the vice-chairman and co-head of Asia coverage at UBS. He attributed the constant reduction of the interest rate cycle as beneficial for equity markets, along with the robust backing from regulators in terms of listing reforms. They are also promoting mainland China A-share firms to opt for H-share listing in Hong Kong.

The Swiss investment bank secured the highest position in the Hong Kong IPO bookrunners' rankings among global banks this year, holding a market share of 6.75%, based on statistics from the London Stock Exchange Group.

"Companies listed on the A-share already possess a set of shareholders," stated Lee. "Considering it from the point of view of listing in Hong Kong, it will be simpler than for companies that are not listed."

Shares in Hong Kong experience a weekly increase due to expectations of policy changes following disappointing Chinese industrial data. Official figures revealed a 7.3% yearly decline in earnings for Chinese industrial firms in November, marking the fourth straight month of such a downturn.

The Hang Seng Index experienced a minor drop of less than 0.1 per cent, ending at 20,090.46 at the closing bell, which reduced the overall profit for the shortened trading week to 1.9 per cent. Meanwhile, the Hang Seng Tech Index saw an increase of 0.7 per cent.

On the mainland, there was a 0.2 per cent decrease in the CSI 300 Index, while the Shanghai Composite Index saw a slight increase of 0.1 per cent.

Consumer businesses like Haidilao International Holdings and China Mengniu Dairy saw a decrease due to worries that a drop in consumer spending could negatively impact profits. Alibaba Group Holding also experienced a fall after deciding to collaborate on an e-commerce project in South Korea.

Profits of industrial firms in China dropped by 7.3% compared to the same period last year, marking the fourth month in a row of such decline, according to the National Bureau of Statistics' announcement on Friday. From January to November, the net income experienced a 4.7% decrease, the Bureau noted.

The information further supports the notion that China must enhance its policy execution to assist a fluctuating recovery, following leading authorities' indication of more vigorous relaxation at a pivotal economic work meeting earlier this month.

Significant financial figures for November revealed a lack of progress in retail sales growth and a continued decline in the real estate market.

CATL from China is strategizing to list in Hong Kong to strengthen its global control in the EV battery market. The battery manufacturer's share offering strategy, currently listed in Shenzhen, is awaiting the green light from regulatory bodies and its shareholders.

Contemporary Amperex Technology (CATL) of China, the leading global manufacturer of batteries for electric vehicles (EVs), is pursuing a dual listing in Hong Kong with the aim to expand its international footprint and enhance its overall competitive edge.

The firm disclosed its strategy in a document following the board's endorsement on Thursday. The plan is awaiting sanction from authorities such as the China Securities Regulatory Commission and its shareholders, who are scheduled for a meeting on January 17, as per the announcement.

Shares of CATL listed in Shenzhen experienced a drop of up to 2.4 percent but ended Friday's market day with a slight increase of 0.3 percent, closing at 262.00 yuan. The stock's value has surged upwards by over 67 percent within this year.

CATL announced that it would select a suitable time and opportunity to complete the public offering within 18 months or the extended period agreed upon post shareholder approval. They emphasized that this decision would be made with meticulous regard for the current shareholders' interests and the status of both domestic and international capital markets.

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Swap stations in China have the ability to automatically replace batteries in electric vehicles.

The electric vehicle battery titan is the newest entrant among an increasing group of Chinese firms intending to go public in Hong Kong. Experts in deal-making predict this trend will significantly boost the city's IPO activities next year, thanks to enhanced regulatory backing.

Pharmaceutical company Jiangsu Hengrui Pharmaceuticals and food company Foshan Haitian Flavoring & Food, both listed in Shanghai, are also considering listing here.

CATL from China aims to list in Hong Kong to strengthen its international lead in the EV battery market. The battery manufacturer, listed in Shenzhen, is awaiting consent from both regulatory bodies and shareholders for its proposed share issuance.

Contemporary Amperex Technology (CATL) from China, the biggest manufacturer of batteries for electric cars worldwide, is attempting to get listed in Hong Kong for a second time. The aim is to boost its international visibility and enhance its competitive edge.

The firm disclosed its strategy in a document following the board's endorsement on Thursday. The suggested plan awaits the green light from authorities such as the China Securities Regulatory Commission, along with stockholders, who have a meeting scheduled for January 17, as per the statement.

Shares of CATL listed in Shenzhen experienced a drop of up to 2.4 per cent, but ended Friday's market session up by 0.3 per cent at 262.00 yuan. The stock has seen an increase of over 67 per cent within this year.

CATL communicated that it would select a suitable time and issue window to finalize the public offer within 18 months or the extended period agreed upon following the consent of the shareholders. This decision would be made after carefully considering the interests of current shareholders and the state of both domestic and international capital markets.

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Battery replacement stations in China can automatically switch out batteries in electric vehicles.

The electric vehicle battery titan is the newest addition to an increasing group of Chinese businesses intending to go public in Hong Kong. Experts in the field predict this trend will greatly boost the city's IPO output in the coming year, thanks to enhanced regulatory backing.

Jiangsu Hengrui Pharmaceuticals, a drug manufacturer listed in Shanghai, and Foshan Haitian Flavoring & Food, also listed in Shanghai, are both considering listing here too.

The surge in Bitcoin slows down as the market prepares for the termination of crypto derivatives. Bitcoin, along with its lesser competitors, is finding it difficult to gain momentum, following its notable rise to an unprecedented peak last week.

The most significant token was traded at a price of US$96,200 as of 2pm Friday in Hong Kong, partially recovering from a nearly 3 per cent drop from the previous day. Lesser competitors such as ether and dogecoin, which are popular among meme enthusiasts, fluctuated within narrow limits.

The cryptocurrency market is also preparing for a significant amount of bitcoin and ether options contracts to expire on Friday. This event is one of the largest of its kind in the history of digital currencies, as stated by leading broker, FalconX.

The hypothetical worth of bitcoin contracts on the Deribit exchange, a major platform for digital asset derivatives, surpasses $14 billion, with the comparable value for ether standing around $3.8 billion.

Arbelos Markets' trading director, Sean McNulty, highlighted the potential for a turbulent market due to the expiration of derivatives positions.

The housing market in Hong Kong experienced a split in November as lower-interest loans encouraged renters to become homeowners. Existing home prices saw a slight increase for two consecutive months, while rental prices decreased, based on official figures.

The value of occupied houses experienced a slight increase for two consecutive months, with November seeing a minor rise to 290.9 from October's 290.7, as reported by the Rating and Valuation Department. Throughout the first 11 months of the year, the cost of homes declined by 6.55%, marking a 27% drop from the highest recorded price in September 2021.

Lease prices experienced a decrease for the second consecutive month, falling by 0.36% to reach the lowest level in five months at 193.1, following a 0.7% decline in October. Yet, rental rates have seen an overall increase of 3.8% during the first 11 months of the year.

Eddie Kwok, the executive director for valuation and advisory services at CBRE Hong Kong, stated that housing costs have leveled out following a five-month decrease. He further noted that a more definite projection for residential prices is expected to surface following the Lunar New Year celebrations next month.

"Ever since the U.S. Federal Reserve initiated its cycle of decreasing interest rates in September, the mean monthly residential transaction volume for October and November soared to 5,498, exceeding the average transaction volume observed from 2017 to 2021," commented Kathy Lee, the research lead at Colliers Hong Kong.