Think tank suggests Hong Kong to capitalize on clean-energy commodities

According to a report from the Better Hong Kong Foundation, a commodities market could stimulate economic growth in Hong Kong.

A commodities market in Hong Kong, centered on materials vital for clean energy and other rising sectors, could enhance the city's significance in international commerce, providing a strategic option for global economies and businesses, as per a local private research group.

The Better Hong Kong Foundation suggested in a Wednesday report that this kind of marketplace could assist commodity buyers in diversifying their investments and not relying solely on Western markets.

The report, which is the result of a nine-month study involving commodity-market participants and the China Development Institute in Shenzhen, stated that advancing the commodity market is a crucial step towards generating a new economic growth opportunity for Hong Kong.

The foundation, established in 1995 by prominent Hong Kong business and community leaders, stated that the recommendations and tactics outlined in the report are derived from the requirements of the industry.

Hysan of Hong Kong is celebrating over a hundred years of contributing to the city's development. The milestone was acknowledged with a grand dinner party, in which over 200 guests were invited to pay tribute to the company's history and look forward to its future.

This year signifies a critical historical landmark for Hysan – it's been over a hundred years since the forward-thinking trailblazer Lee Hysan acquired his first significant piece of property in East Point, presently referred to as Causeway Bay.

The incredible change from a slim strip of land into a globally recognized business area is largely due to Lee Hysan. His ambition was to establish a new residential and business zone that would cater to an expanding and progressively affluent population.

To celebrate the company's accomplishments and progress, Irene Lee, the third-generation leader of Hysan Development, hosted over 200 attendees at the Mandarin Oriental in Hong Kong for a unique event. This gathering was influenced by the Chinese maxim "Yu Gong Bu Yu", honoring the values of tenacity and determination. These characteristics perfectly embody the Lee family's continued commitment to enhancing the societal, financial, and environmental prosperity of the residents of Hong Kong.

During the banquet, Irene Lee honored over a hundred years of progress, expansion, and community development that started with the company's founder.

"A century ago, my grandfather saw the potential in East Point Hill, today known as Causeway Bay, when he bought it. He envisioned expanding the area towards the eastern edge of Hong Kong Island… The expansion from Causeway Bay to North Point would give rise to a new district in Hong Kong."

Lee Hysan had a dream to construct a fresh neighborhood on terrain reinforced by the ocean with boulders from East Point Hill. He faced numerous obstacles during the process, yet he remained steadfast and unswayed. In 1924, he erected the Lee Garden Amusement Park on the hill, and in 1927, he built the Lee Theatre, a grand 1,283-seat entertainment facility designed in the majestic style of an opera house.

A multitude of Chinese developers burdened with debt are confronting their fate in Hong Kong courts. Sunac and Shimao are dealing with fresh liquidation requests, whereas Country Garden and Times China are preparing for court proceedings this month.

The struggles of debt-ridden Chinese developers seem to be unending, as they consistently confront bankruptcy proceedings and get served with new dissolution requests in Hong Kong, which will ultimately determine their future.

Sunac China Holdings and Shimao Group Holdings were served with fresh dissolution requests this past Friday. Meanwhile, Country Garden Holdings and Times China Holdings are set to appear in court in the coming weeks.

In the meantime, Tianji Holding, a subsidiary of China Evergrande Group based in Hong Kong, received an eight-week extension after a Hong Kong judge postponed a liquidation hearing to March 12 on Wednesday.

Edward Middleton and Tiffany Wong, who are the liquidators for Evergrande from Alvarez & Marsal Asia, submitted the petition against Tianji in November.

8:36 AM

The disappearing fantasy: the rise and fall of China Evergrande

This marks the second insolvency court proceeding within a week involving an offshore division of Evergrande. Just last Friday, a court in Hong Kong mandated the liquidation of CEG Holdings BVI, as reported in a Monday announcement from the property developer.

Tencent and the Guillemot family are contemplating forming a new business entity that incorporates specific Ubisoft assets. They are currently assessing which assets should be a part of this new venture.

The tech company from China and the Guillemot family are currently examining which assets to incorporate into their new venture, and how much they are worth, according to sources. A possible agreement could enable Tencent to acquire an interest in the business venture and gain greater influence over some of Ubisoft's intellectual properties, thereby enhancing its video game operations beyond the Chinese market, insiders claim.

Discussions are still in progress and nothing has been finalized yet, according to sources. A spokesperson for Tencent chose not to comment on the matter. When asked, a representative for Ubisoft pointed to the company's announcement from January 9, stating they've enlisted consultants to explore different strategies to enhance value.

Bloomberg News revealed in October that Tencent and the Guillemot family were discussing with consultants on strategies to steady Ubisoft and increase its worth following a drop in its share value. Insiders have indicated that a buyout was one of the potential solutions being evaluated.

As per Ubisoft's yearly report, as of March 31, Tencent and the Guillemot family held 25.4% of Ubisoft's share capital and 29.6% of the voting rights.

Ubisoft's stocks have seen a drastic decrease of almost 50% within the last year, making the company's market worth approximately US$1.6 billion. The company lowered its projections in September and announced a postponement of its Assassin’s Creed Shadows game's launch from November to February. Just last week, it further pushed back the release date of this well-liked series to March 20.

Next-generation chip manufacturers in the Greater Bay Area are gaining traction in the Chinese electric vehicle sector. The Nansha district in Guangzhou is becoming a hot spot for firms producing silicon carbide semiconductors, who are leveraging the benefits of regional consolidation.

Nansha, situated in the southern part of Guangdong's province capital, is leveraging its close proximity to major economic hubs and local industrial strategies to establish a top-tier semiconductor hub. The focus of this hub is on silicon carbide (SiC) – a vital element for future generation semiconductors.

AscenPower Semiconductors, a significant entity in the regional center, is known as China's biggest SiC chip production endeavor, primarily concentrating on the automobile industry's chip needs.

Xiao, who also heads up APT Electronics, the first semiconductor firm in Nansha, highlighted the advantages of the bay area layout, since it allows him to participate in meetings in both Guangzhou and Hong Kong within a single day.

"Two decades ago, when I launched a business with my guide from the Hong Kong University of Science and Technology, I had no idea about the existence of GBA," Xiao stated at the yearly conference, which was hosted in Nansha for the first occasion this year. APT Electronics and three other semiconductor start-ups established by Xiao's group have now expanded to roughly 4,000 employees, generating an economic yield of 4 billion yuan (US$545.5 million) in 2024, as per the executive's information.

Hans Group, the primary shareholder of Citybus, has entered an agreement to power buses in Hong Kong using hydrogen. This pact, involving Hans Group, Citybus, and Grand Resource Hydrogen, was signed on Wednesday.

On Wednesday, a supply agreement was inked between Hans Group, Citybus and Grand Resource Hydrogen Energy Science & Technology. The latter, a Shenzhen-based firm, operates under the oversight of the Guangdong provincial government.

Grand Resource Hydrogen has assured a daily provision of at least five tonnes of hydrogen, with the cost not surpassing what is billed to customers on the mainland, as stated in a collective announcement by the firms.

"This deal will significantly alleviate worries regarding the availability and cost-effectiveness of hydrogen as a sustainable fuel for public transportation for Citybus," stated Hans Group CEO Yang Dong to the Post following a contract signing event.

He stated that five tons of hydrogen could adequately fuel approximately 100 buses that operate on hydrogen fuel cells. He also mentioned that the expansion of the hydrogen-based fleet for Citybus is not anticipated to achieve this scale in the upcoming two years or even longer.

Citybus has committed to ensuring its entire fleet, currently over 1,700 buses, will be emission-free by 2045. This is five years before the deadline set by Hong Kong. Currently, there is one hydrogen fuel cell bus in operation, but the number is expected to rise to five within this year.

The steep price of hydrogen has raised questions about the financial feasibility of hydrogen-powered buses in Hong Kong. Sinopec announced last year that the cost of hydrogen in the city would be HK$108 per kilogram (US$13.80), which is roughly triple the rate in Foshan, Guangdong.

A high-ranking Beijing representative in Hong Kong urges for a white paper to improve the capital market. Deputy Qi Bin of the liaison office highlights the flaws in Hong Kong's market regulation, transaction fees, and corporate governance at the Capital Markets Forum.

Hong Kong's financial market is instrumental in the city's economic framework and country's plans. However, it lacks in several aspects, states Qi Bin, the deputy at the nation's central government liaison office in the city.

"Hong Kong's market regulation, transaction costs, and corporate governance still fall short when measured against global standards," Qi stated during his address at the Hong Kong Capital Markets Forum on Wednesday.

"Hong Kong might consider investigating and creating a capital market white paper, suggesting enhancements that meet the top international standards."

The white paper might seek feedback from all involved parties, such as international organizations, to enhance the trust of investors. It could also compare Hong Kong's financial market to leading finance hubs such as New York and London, Qi mentioned.

He emphasized the importance of the city's financial market, which last year showed impressive performance, as the market for initial public offerings (IPOs) revived its vigor.

"Boosting Hong Kong's economy relies heavily on finance, and enhancing Hong Kong's financial sector depends largely on the capital market," stated Qi, highlighting its crucial role in sectors like promoting artificial intelligence development and fueling the growth of the Greater Bay Area.

Forecasts for Marketing in 2025 by Melissa Wong of AIA Hong Kong and Macau

Wong highlights the comeback of the AIA Carnival and its potential to foster significant relationships as a notable event of 2024

AIA's marketing strategies in 2025 will concentrate on dismantling cliches and advocating a comprehensive perspective on health and wellness

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Kevin Huang, the Chief Operating Officer at SCMP, and Melissa Wong, the Chief Customer and Marketing Officer at AIA Hong Kong and Macau.

Melissa Wong, the lead customer and marketing officer at AIA Hong Kong and Macau, has been a significant figure in the company's attempt to promote health and wellness to Hong Kong's residents. She emphasizes the importance of this in Hong Kong, considering their high life expectancy. Wong aims to shift the public's mindset from viewing life as a mere number to considering it as a span of health.

"She emphasizes that there's an abundance of options and initiatives to pick from," she states. "Processing and considering these various alternatives, and determining precisely how we can bring about significant change for our clients has genuinely been our primary concentration."

She emphasizes that the key to success here is having the bravery to choose a handful of essential projects that will create the most significant effect.

Igniting Human Interactions

Investigation in the US reveals China's undue control over shipbuilding, according to insiders

Chinese embassy representative counters the report, stating 'US is pointing fingers at China for its own issues'

Chinese embassy representative counters the report, stating 'US is pointing fingers at China for its own issues'

The administration of US President Joe Biden has determined that China employs unjust strategies and methods to gain control over the global maritime, logistics and shipbuilding industries, according to three sources who have knowledge of the findings of an extensive trade inquiry, as reported to Reuters.

In April 2024, Katherine Tai, the United States Trade Representative, initiated an investigation following the appeal from the United Steelworkers and four other American unions. This investigation was carried out under Section 301 of the 1974 Trade Act, which permits the US to impose penalties on overseas nations that partake in actions deemed "inexcusable" or "unreasonable", or those that place a strain on US commerce.

The probe determined that China strategically aimed at controlling the shipbuilding and maritime sector, employing methods such as financial backing, creating obstacles for international companies, compulsory technology sharing, intellectual property infringement, and acquisition strategies to favor its own shipbuilding and maritime sector, according to an insider who wished to remain anonymous.

The individual also claimed that Beijing significantly and deliberately held down labor expenses in the marine, ship construction, and logistics industries, referencing sections of the report.

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Biden declares that China 'will never outdo us', in his parting statement a week prior to his departure from office.

There was no instant response available from USTR, the White House, or President-elect Donald Trump's transition team.

The US suggests enhancing supervision over 'de minimis' exemption for low-cost imports. The new regulation is aimed at assisting customs officials in managing more than 4 million deliveries that they receive each day, with approximately half believed to come from China.

On Monday, the United States suggested a fresh rule to boost the monitoring of low-cost imports under the de minimis guideline. This rule currently allows goods worth US$800 or less to bypass strict screening and duty charges.

The United States Customs and Border Protection (CBP) agency announced a proposed rule for the entry of low-value shipments. The rule is designed to improve the agency's capability to intercept dangerous and unlawful goods. This would be achieved by requiring more shipment information and initiating an entirely digital filing process.

The suggestion arises as CBP struggles with an unparalleled surge of de minimis deliveries – exceeding 4 million each day – which authorities claim saturates their capability to focus on potentially hazardous parcels.

Pete Flores, the interim leader of the organization, described the suggested alteration as crucial in tackling escalating dangers.

"Every single day, CBP's male and female personnel seize items that pose a risk to the health and security of US citizens, as well as to our nation's economic prosperity," stated Flores.

"This suggested regulation will provide us with some of the resources required to tackle a greater number of these hazards."

Restrictions are expected on the global growth of Chinese tech businesses under a prospective second Trump administration, according to UBS analyst Kenneth Fong. Despite a slowdown in domestic growth, Chinese firms will persist in their international endeavors. However, Fong warns that they will encounter increased risks.

With the inception of the new US administration, we anticipate a surge in policies or announcements impacting the international operations of Chinese firms, spanning areas such as cross-border e-commerce, video gaming, and artificial intelligence," stated Kenneth Fong, the leader of China internet research at UBS, during a press conference in Shanghai on Monday.

Despite the geopolitical uncertainties, he noted that Chinese firms will persist in making investments in foreign markets.

Fong suggests that Chinese tech firms should be concerned about three things in terms of geopolitical risks: the potential for American businesses to be prohibited from investing in Chinese tech corporations, possible further limitations on the procurement of AI chips, and the effect of trade disputes on their international operations.

Time Stamp:

Biden's objective for China's tech policy: a decade-long disadvantage

The number of distressed property transactions is expected to increase this year due to a downturn prompting property owners and receivers to lower prices. The surge in distressed transactions in 2025 is attributed to high interest rates and global economic instability.

"Given the persistent high interest rates and instability in the worldwide economy, we anticipate a rise in the count of troubled properties throughout this year," expressed Eunice Tang, the executive director of capital markets at JLL. "Since the latter part of the previous year, there's been a noticeable increase in individual consumers and investors who are keen on the investment market, as sellers become more open to reducing their demand prices."

Tang stated that the total worth of troubled property deals in Hong Kong reached HK$15 billion (US$1.9 billion) in 2024. The highest value of these kind of transactions was recorded in 2012, amounting to HK$82.7 billion.

During the final quarter of 2024, the major point of interest for investors was assets that were either in receivership or being sold at a reduced price, making up almost 50% of the significant transactions in Hong Kong, based on information collected by Colliers. This tendency is expected to persist into the current year, they reported.

"Tang mentioned that numerous property owners may not openly express their readiness to sell, but they would probably entertain substantial bids from buyers. He added that although the worth of sales related to financially troubled properties may not hit unprecedented levels, there could be a rise in the volume of such deals."

A new real estate listing has been made for the Sheraton Hotel in Tung Chung, which boasts 1,219 rooms. The property comprises two distinct hotel brands: the Sheraton Hong Kong Tung Chung Hotel that has 218 rooms and the larger Four Points by Sheraton with 1,001 rooms, as per the information provided by the exclusive broker, Savills. Insiders have informed the Post that the desired selling price for the whole property is approximately HK$4.5 billion. The hotel, situated near the Hong Kong International Airport, covers a total floor area of roughly 610,000 square feet.