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China Mobile is battling it out with a US$1 billion proposal for HKBN to ward off I Squared Capital. The company has gotten commitments from the Canada Pension Plan Investment Board and American private equity company TPG, who collectively own a 25 per cent share.

China Mobile has proposed an acquisition deal for HKBN, potentially worth up to HK$7.8 billion (US$1 billion). This move puts China Mobile in competition with US private equity firm, I Squared Capital, both vying to acquire one of Hong Kong's major broadband service providers. Following the announcement, HKBN's share price saw a significant increase.

The biggest mobile-phone provider globally, based on subscriber count, proposed HK$5.23 for each share of the company's primary stock, as per a filing with the Hong Kong stock exchange. This proposal is 7.6 per cent more than its most recent trading price. Earlier in the day, I Squared Capital had also put forward a non-binding purchase proposal for HKBN, though the proposed amount remains undisclosed.

China Mobile announced that it has secured solid commitments from two of HKBN's major shareholders, the Canada Pension Plan Investment Board (CPPIB) and the American private equity company, TPG. These two firms, which collectively own approximately 25% of HKBN, have expressed their support for the bidder, as noted in a filing submitted late Monday.

The Canada Pension Plan Investment Board (CPPIB) holds a 13.9% share in HKBN. Similarly, TPG has an 11.1% interest in HKBN, equal to the stake held by South Korean private equity firm MBK Partners, as per HKBN's most recent yearly report. This does not take into account convertible instruments. The Singaporean sovereign wealth fund, GIC Private, owns a 7% stake in the company.

China Mobile has proposed a price of HK$5.23 per share for each of HKBN's 1.31 billion shares currently on the market, amounting to a total of HK$6.86 billion. The same price will be applied to other unclaimed shares and vendor loan notes, potentially increasing the overall acquisition sum by an additional HK$937.7 million.


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China’s AI Challenger DeepSeek Bets on ‘Young Geniuses’ Over Experience in Battle Against US Tech Titans

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China's AI game-changer, DeepSeek, is banking on a relatively quiet team of 'young prodigies' to outdo American behemoths. In keeping with the firm's inclination towards skill over experience, DeepSeek tends to recruit fresh grads or those at the beginning of their AI journey.

DeepSeek, a Chinese AI start-up that astounded the tech industry with its potent AI model created on a tight budget, is relying on its "young prodigies" arsenal to compete with well-funded American behemoths, as per sources and reports from Chinese news outlets.

DeepSeek has yet to provide a response to a comment request made on Friday.

The firm's breakthrough can be traced back to its unassuming founder and a budding research group, as gleaned from an analysis of the authors named in its V3 model technical document, professional networking websites, discussions with past employees, and local news coverage. The V3 technical document lists a group of 150 Chinese researchers and engineers, along with a dedicated team of 31 data automation researchers.

During a discussion with Chinese digital news platform 36Kr in May 2023, Liang revealed that the majority of the developers at DeepSeek are either recent graduates or individuals at the initial stages of their AI careers. This aligns with the company's recruitment philosophy which values skill over prior work experience. "The majority of our key technical positions are occupied by recent graduates or individuals with a year or two of professional experience," Liang stated.

DeepSeek recognizes the significant contributions of Gao Huazuo and Zeng Wangding from their vast pool of talent. The company attributes them with making crucial advancements in the study of the MLA structure.


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From Blackpink’s Favorite to Fading Frenzy: The Rise and Dip of Pop Mart’s Labubu in the Chinese Toy Market

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Pop Mart's Labubu: The Journey from being Blackpink's Preferred to a Diminishing Craze for the Chinese Toy Company

The diminutive character's worth declines in the uncertain market, however, it still manages to bolster investor confidence in Pop Mart's strategy for capitalizing on intellectual property.

The hype surrounding Pop Mart's Labubu, a cute yet fanged toy creature adored by countless Asian enthusiasts, including a member of the K-pop group Blackpink, appears to be diminishing. The resale value of these toys on speculative markets has been gradually decreasing, nearing their retail costs in recent months. Experts caution that this dwindling trend might negatively impact the annual earnings of the Beijing-based company.

A Labubu with a Halloween theme is presently going for between 170 yuan (equivalent of US$23.20) and 300 yuan on Xianyu, a highly frequented second-hand marketplace in China. The festive holiday version was originally sold at 159 yuan on the company's official web store when it was released in September.

"The diminished hype around Labubu is both anticipated and completely typical, as it's impossible for any IP character to maintain that level of enthusiasm indefinitely," stated Richard Lin, the main consumer analyst at SPDB International.

Nevertheless, the influence of the tiny creature has not completely diminished. "Considering that Labubu gained significant popularity globally in the final quarter of 2024, which in turn boosted its fame in China, it's predicted that the brand will continue to propel growth in the Chinese market for at least the first half of the year, and possibly even the first three quarters," Lin stated. "However, the last quarter might present difficulties due to the high standards set in previous periods."

The stock of Pop Mart, which is listed in Hong Kong, fell almost 9 per cent in the last days of 2024. This comes after a significant increase of 370 per cent in value over the previous year.

The decline in costs for Labubu toys is partially attributed to an intentional rise in supply by the company. This strategy is designed to increase the availability of the product and enhance the customer experience, as stated by Huatai Securities.

Huatai analysts have commented that as Pop Mart continues to launch their vinyl toys, individuals shouldn't focus too heavily on the increased costs of their mystery boxes. These boxes, which hide the figure within and occasionally include scarce variants, shouldn't be the main focus. Rather, more attention should be directed towards the larger vinyl figures and big dolls, as they provide a greater opportunity for collection and potential value growth.


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Shanghai Property Market to Surge as Landlords Slash Prices and High-Net-Worth Individuals Seek Safe Returns Amid Economic Turbulence: JLL Report

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Real estate transactions in Shanghai are set to rise due to enthusiastic deal-seeking activities, according to JLL. Property owners are prepared to lower their prices as wealthy people seek secure investments in the face of deflationary forces.

The real estate market in Shanghai is expected to witness an increase in deals related to office spaces, retail centers and rental properties this year. This is because property owners are ready to lower their prices, while wealthy individuals are seeking secure profits in the face of deflationary risks.

Overseas entities are demonstrating growing curiosity in seeking good deals in the domestic real estate market, despite economic instability, as per the data from property consulting firm JLL.

"Landlords are increasingly open to offering pricing compromises to liquidate, resulting in more fair transaction prices," stated Sun Ling, who leads the capital markets division at JLL East China. "After a phase of market instability and price modifications, it's anticipated that more developments in Shanghai will be listed for sale and likely to be traded in 2025."

Two-fifteen

China experiences its most sluggish economic expansion in more than a year, recording a 4.6% GDP in the third quarter.

She further mentioned that the count of transactions is predicted to surge in 2025, building on the 12% annual growth seen last year, which took the total to 103. However, the worth of transactions in 2024 took a hit, plunging 38% to 57.4 billion yuan (approximately US$7.8 billion) compared to the previous year, as per JLL data. There was a notable increase in overseas investment, doubling from 6% to 12%.

The majority of agreements inked last year were each worth less than 1 billion yuan, and these smaller ventures drew the attention of several ultra-wealthy individuals, according to Sun.

"Given the current unstable economy, it continues to be a market that favors buyers, as they hold the sway in deal discussions," stated Yin Ran, a Shanghai-based investor. "It seems that a growing number of property owners are expecting their property values to drop even more, which might prompt them to sell at this time."

Shanghai, the central business and financial center of mainland China, recorded an economic growth of 4.7% in the first three quarters of 2024. This was lower than the 5% growth rate goal they established at the start of the previous year.


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CES 2025: Chinese Innovators Steal the Show with AI-Powered Robots, EVs, and Smart Glasses Amidst Predicted Global Market Boom

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CES 2025: Chinese companies display advanced AI robots, electric vehicles, and smart glasses

The consumer electronics industry is predicted to expand worldwide as businesses compete to introduce AI-based advancements, according to event organizers.

The Consumer Technology Association, the organizer of the CES, predicts that the market is set to expand by 2025. They anticipate that the worldwide sales of consumer electronics will hit a staggering $537 billion. The association also forecasts a 2.6% growth in hardware revenue, taking it to $353 billion, and a 4.6% increase in software and services, estimating it to reach $184 billion.

During the four-day occasion, robots of diverse forms and dimensions were the center of attention at multiple locations. The event gathered manufacturers, developers, and providers of consumer technology equipment, content, and technology distribution systems from 160 nations.

Yushu Technology, also known as Unitree Robotics, has unveiled a range of models, including human-like and four-legged robots, aimed at both the consumer and industrial sectors. Its G1 human-like robot comes with 23 to 43 joint motors, demonstrating significant adaptability and the capacity to shift from standing to a complete squat, or rise from a flat position.

Robots with a pet-like appearance also attracted a lot of attention. Ropet, a buddy robot currently pursuing crowdfunding on Kickstarter, piqued the interest of many visitors. Its device, powered by artificial intelligence, has the ability to detect the emotional conditions of users and alter its facial expressions, movements and actions based on these emotions.


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Driving Forward: Mastering the Curve of Industry Innovation and Market Trends in the Automobile Sector

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The Automobile Industry is rapidly transforming, with businesses aiming for the top by focusing on key areas like Vehicle Manufacturing, Automotive Sales, Aftermarket Parts, Car Dealerships, Vehicle Maintenance, Automotive Repair, and Car Rental Services. Embracing Automotive Technology and Industry Innovation, especially in electric and autonomous vehicles, is critical. Staying ahead requires adapting to Market Trends and Consumer Preferences, ensuring Supply Chain Management, and meeting Regulatory Compliance. Automotive Marketing strategies now leverage digital platforms to meet the evolving demands of an environmentally conscious and technology-savvy consumer base. In essence, success in the dynamic Automobile Industry landscape hinges on innovation, customer centricity, and a proactive approach to challenges and opportunities.

In the fast-paced world of the automobile industry, staying ahead of the curve is not just an advantage—it's a necessity. From vehicle manufacturing to automotive sales, aftermarket parts to car dealerships, every facet of the automotive business is undergoing rapid transformation. This evolution is driven by a complex interplay of automotive technology advancements, shifting market trends, changing consumer preferences, and stringent regulatory compliance. As businesses navigate this dynamic landscape, understanding the key factors that drive success becomes paramount. This article delves into the critical aspects of the automotive industry, offering insights into navigating the road to success through top trends and strategies. We explore how innovation is revving up vehicle manufacturing and sales, the impact of aftermarket parts on the supply chain management, the importance of customer satisfaction in automotive repair and maintenance, and the role of automotive marketing in enhancing car dealership and car rental services. Join us as we unpack the essentials of industry innovation, shedding light on how businesses can adapt and thrive in the competitive automotive market.

1. "Navigating the Road to Success: Top Trends and Strategies in the Automobile Industry"

Futuristic cars amidst tech and market trends.

In the ever-evolving landscape of the automotive industry, businesses are constantly seeking pathways to not only survive but to thrive amidst fierce competition and shifting market dynamics. Success in this sector hinges on a blend of astute awareness of industry trends, innovative strategies, and a customer-centric approach. Here, we delve into the key trends and strategies propelling businesses towards success in the realms of vehicle manufacturing, automotive sales, aftermarket parts, car dealerships, vehicle maintenance, automotive repair, and car rental services.

**Embracing Automotive Technology and Industry Innovation:** Technological advancements are at the forefront of shaping the future of the automobile industry. From electric vehicles (EVs) to autonomous driving and connected car features, embracing innovation is not a choice but a necessity for businesses aiming for the top. Automotive technology not only enhances vehicle functionality but also improves manufacturing processes and service efficiency. Companies investing in research and development (R&D) and adopting cutting-edge technologies are setting new benchmarks in industry innovation, thereby gaining a competitive edge.

**Understanding Market Trends and Consumer Preferences:** Staying attuned to market trends and evolving consumer preferences is critical for automotive businesses. Today's consumers are more informed and have specific demands ranging from sustainability to digital features. Businesses that are quick to adapt to these preferences, whether it's through offering eco-friendly vehicles or incorporating advanced tech features, are more likely to capture and retain customer interest. Automotive marketing strategies now heavily rely on digital platforms to engage with potential customers, making an online presence essential for success.

**Strengthening Supply Chain Management:** The recent disruptions highlighted the importance of resilient supply chain management within the automotive industry. Effective supply chain strategies ensure the timely availability of automotive parts and vehicles, which is crucial for maintaining customer satisfaction and operational efficiency. Companies focusing on diversifying their supply sources and leveraging digital tools for supply chain optimization are better positioned to mitigate risks and respond to market changes swiftly.

**Fostering Customer Satisfaction through Quality Service:** Whether it's through automotive sales, vehicle maintenance, or car rental services, delivering quality and value remains the cornerstone of customer satisfaction and loyalty. Businesses that excel in providing exceptional service, whether through personalized experiences or reliable automotive repair, establish a strong reputation that drives repeat business and positive word-of-mouth.

**Navigating Regulatory Compliance:** The automotive industry is subject to a myriad of regulations, from safety standards to environmental laws. Keeping abreast of these regulations and ensuring compliance is not just about avoiding penalties but also about reinforcing brand integrity and commitment to societal values. Companies that proactively adopt sustainable practices and adhere to regulatory standards demonstrate leadership and responsibility, aligning with the values of environmentally-conscious consumers.

**Leveraging Automotive Marketing:** Effective marketing strategies are vital for automotive businesses to differentiate themselves in a crowded market. This involves a mix of traditional advertising and digital marketing techniques tailored to target audiences. Content marketing, social media engagement, and data-driven campaigns are among the top strategies that can enhance visibility and attract customers to car dealerships, aftermarket parts, and car rental services.

In conclusion, navigating the road to success in the automobile industry requires a multifaceted approach. By staying at the forefront of automotive technology, understanding market trends and consumer preferences, optimizing supply chain management, prioritizing customer satisfaction, ensuring regulatory compliance, and employing strategic automotive marketing, businesses can steer towards growth and profitability in this dynamic sector.

2. "Revving Up Innovation: How Automotive Technology and Market Trends are Shaping Vehicle Manufacturing and Sales"

Futuristic cars evolving in digital landscape.

In the fast-paced world of the Automobile Industry, innovation is not just a buzzword but the engine driving Vehicle Manufacturing and Automotive Sales into the future. The integration of cutting-edge Automotive Technology and responsiveness to evolving Market Trends has become imperative for businesses aiming to stay at the top of their game. This dynamic fusion is reshaping not just how vehicles are made but also how they are sold and maintained, signaling a transformative era for Car Dealerships, Aftermarket Parts suppliers, and Car Rental Services alike.

The relentless pace of Industry Innovation means that Automotive Repair and Vehicle Maintenance services are now embracing more advanced diagnostics and tools, ensuring they meet the high standards of quality and efficiency that consumers demand. This leap in technological capability is in part a response to Consumer Preferences that increasingly lean towards more connected, safer, and environmentally friendly vehicles. These preferences are not just shaping the design and functionality of new vehicles but are also influencing the stock and services offered by Car Dealerships and Car Rental Services.

Moreover, the push towards electric vehicles (EVs) and autonomous driving technology is a testament to how Automotive Technology is steering the industry towards a greener and more autonomous future. This shift is not without its challenges, though. Supply Chain Management has become more complex, with the need for rare materials for batteries and the demand for high-tech components stretching existing capacities. Companies that excel in navigating these complexities while ensuring Regulatory Compliance are setting new benchmarks for success in the industry.

Another crucial aspect is the role of Automotive Marketing in this evolving landscape. Effective marketing now goes beyond traditional approaches, leveraging digital platforms to engage with consumers, showcase innovations, and highlight how businesses are addressing environmental concerns and safety improvements. This digital shift is not only about selling cars but about building a brand that resonates with the values and aspirations of modern consumers.

In conclusion, the automotive sector is witnessing a significant transformation, fueled by advancements in Automotive Technology and shifts in Market Trends. From Vehicle Manufacturing to Automotive Sales, and across services like Aftermarket Parts, Car Dealerships, Vehicle Maintenance, Automotive Repair, and Car Rental Services, the entire ecosystem is revving up innovation. Staying abreast of these changes, focusing on Consumer Preferences, and ensuring Regulatory Compliance are now fundamental for businesses aiming to lead in the Automobile Industry. The road ahead is both challenging and exciting, with continuous innovation and adaptation being the key gears for driving forward.

In conclusion, staying ahead in the fast-paced automobile industry requires businesses to continuously adapt and innovate. From vehicle manufacturing to automotive sales, aftermarket parts, car dealerships, vehicle maintenance, automotive repair, and car rental services, every facet of the automotive business is undergoing a significant transformation. Driven by automotive technology, market trends, consumer preferences, and regulatory compliance, companies are finding new ways to meet the evolving demands of customers and stay competitive.

The key to success in this dynamic environment lies in understanding the top trends that are shaping the industry, from supply chain management to industry innovation and automotive marketing strategies. Businesses that can effectively leverage these trends to enhance their product offerings and services are more likely to thrive. Emphasizing quality, customer satisfaction, and a deep understanding of the automotive sector will continue to be essential for companies aiming to rev up their position in the market.

As we have explored, the automotive industry's future will be characterized by rapid changes in technology, shifting consumer needs, and stricter regulatory standards. Those within the sector, from manufacturers to service providers, must be agile, forward-thinking, and ready to embrace new opportunities for growth and efficiency. By focusing on the areas of vehicle manufacturing, automotive sales, and the provision of comprehensive automotive services, businesses can navigate the road to success, ensuring they not only meet but exceed the expectations of their customers in this ever-evolving landscape.


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China’s Solar Industry Crisis: A Storm on the Horizon as OPEC-Style Pact Falters Amid Price War and Overcapacity

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A growing crisis in China's solar panel industry risks becoming unmanageable. The solar sector is bracing for a pivotal year as an agreement similar to that of OPEC weakens due to a pricing conflict and surplus capacity.

During the yearly gathering of the China Photovoltaic Industry Association (CPIA) in the beginning of December, 33 leading photovoltaic producers agreed to a self-regulation commitment, somewhat inspired by the alliance of the globe's largest oil providers. The manufacturers consented to production limitations relative to their capabilities and vowed to adhere to the minimum price suggestion previously established by the association.

Two weeks later, the CPIA publicly criticized a solar project based in Xinjiang for disregarding their agreement. The branch of China Energy Investment Group set a top bidding limit that was notably lower than the CPIA's minimum price of 0.68 yuan (US$0.09) per watt, and they selected the winners based on the lowest bids.

"Are you attempting to halt the ruthless rivalry in the industry, or intensify it?" questioned the CPIA.

This incident has significantly undermined the spirit of the sector, since industry insiders and analysts viewed the pact similar to Opec as one of the final plausible attempts to rescue China's solar-related businesses, over a million in number, which have been battered by a year-long price war and surplus that even Beijing acknowledges as problematic.


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Retreating Globalization: Biden’s US Steel Deal Blockage and the Implications for International Business Relations

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Macroscope | Biden's halting of US Steel agreement latest indication of globalization's decline

Even with a rise in global collaboration, governments are hesitant to compromise on matters of sovereignty for the sake of global interests.

The idea of a "business world without borders" promoted in 1990 by Kenichi Ohmae, a Japanese business advisor and ex-senior partner at McKinsey, seems to be a thing of the past. In his popular book, The Borderless World: Power and Strategy in the Interlinked Economy, Ohmae contended that national boundaries were losing their significance in the business realm like never before.

Meanwhile, Biden's directive is triggering worries within the Japanese government and business sector. They fear that this move may deter Japanese companies from investing in the United States and potentially harm the mutual relations between both nations.

The problems at hand are more profound than just displays of limited nationalism from either leader. They bring up the fundamental question of whether the eradication of national boundaries can be accomplished from grassroots level – through commercial interests, for instance, as seen in this situation – rather than from a top-down approach by governance and the judicial system.


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Retreating Globalisation: Biden’s Blockade of US Steel Deal and the Resurgence of National Sovereignty over Business Interests

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Macroscope | Biden's hindrance of US Steel transaction is the most recent indication of globalization's decline

Even with heightened global interactions, nations are hesitant to compromise their independence, even if it benefits the world.

The idea of a "world without business boundaries," which was popularized in 1990 by Kenichi Ohmae, a well-known Japanese business advisor and ex-high-ranking associate of McKinsey, may not hold much weight anymore. His top-selling publication, The Borderless World: Power and Strategy in the Interlinked Economy, suggested that national boundaries were becoming increasingly insignificant in the business world.

Meanwhile, Biden's directive is causing unease within the Japanese government and business sector, with fears that the move will deter Japanese companies from investing in the United States and potentially damage the relationship between the two nations.

The problems at hand are more profound than simply the display of limited patriotism by any of the leaders. They bring to the forefront the fundamental query of whether eradicating national boundaries can be accomplished through grassroots efforts – such as economic motives, as seen in this instance – instead of being imposed by authoritative bodies like the government and the judicial system.


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Nationalism vs Globalisation: Biden’s US Steel Deal Blockade and the Resilience of Sovereign Borders in Global Business

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Macroscope | Biden's halt on US Steel agreement indicates a step back from globalization

Even with heightened global interaction, governments are reluctant to compromise their autonomy for the sake of global benefits.

The idea of a "business world without borders," initially promoted in 1990 by Japanese business strategist Kenichi Ohmae, a past high-ranking associate of McKinsey, seems to have lost its ground. In his widely celebrated book, The Borderless World: Power and Strategy in the Interlinked Economy, Ohmae contended that national boundaries had become increasingly insignificant to the world of commerce.

Meanwhile, Biden's directive is causing apprehension among the Japanese government and business sector. They fear that the move might deter Japanese companies from investing in the United States and undermine the mutual relations between both nations.

The problems at hand are more complex than simple displays of limited nationalism by either of the leaders. They bring to light the fundamental query of whether the elimination of national boundaries can be accomplished through grassroots efforts, such as through commercial interests like in this scenario, instead of being imposed by government bodies and legal institutions.


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Creditors Ramp Up Legal Pressure on China’s Evergrande, Shimao Amid Housing Slump and Looming 700 Billion Yuan Property Bond Deadline

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Lenders are taking legal steps against developers Evergrande and Shimao amidst a downturn in the housing market. Property bonds valued at more than 700 billion yuan are due this year from developers in China.

Two of China's biggest real estate developers are facing increased pressure from creditors, who are taking legal measures to recover debts amidst the challenging recovery of the country's housing market.

The property management division of China Evergrande, known as China Evergrande Property Services Group, announced that its parent company has been directed by a court in Guangzhou to reimburse 13.4 billion yuan (approximately US$1.8 billion) in pledge guarantees associated with deposit certificates. This information was disclosed in a filing with the Hong Kong stock exchange late on Friday night.

Legal action by Evergrande Property against its financially troubled parent company initiated a year back, following the disclosure by the firm in 2022 that it utilized 13.4 billion yuan of the property division's funds as collateral for pledge guarantees.

The announcement was made just hours after a Hong Kong court mandated the dissolution of CEG Holdings BVI, an overseas subsidiary of Evergrande that holds almost 50% of Evergrande Property. This ruling marks another win for those in charge of the liquidation process.

On the same day, another prominent developer, Shimao Group, announced that CPYM Link Investment had initiated a dissolution lawsuit against them concerning cross-border loan guarantees valued at 258 million yuan. A court hearing is scheduled for March 19 in the Hong Kong High Court.


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China Reignites Major Nigerian Rail Project with Key Loan: A Look at the Kaduna-Kano Railway Revival

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China revives significant Nigerian railway project by providing crucial loan

In 2020, Chinese state financiers had discontinued the Kaduna-Kano project, but they have now approved new funding under commercial conditions.

State-backed financial institutions in China have given the green light for a loan towards a crucial portion of a fresh nationwide railway project in Nigeria. This arrangement seems to showcase China's evolving sensible perspective towards funding development in Africa.

The China Development Bank, a significant policy bank, declared on Tuesday that it plans to allocate an initial funding of €245 million (US$253.7 million) for the Kaduna-Kano railway project. This project is a component of a broader railway network that connects Nigeria from the northern to the southern regions.

"China has emerged as a vital catalyst for worldwide connectivity," said foreign ministry spokesperson Guo Jiakun at a press conference on Wednesday, referencing numerous international rail projects that China has contributed to.

The rail link between Kaduna and Kano – a 203-kilometer (126-mile) track uniting Nigeria's northern Kaduna state with its second biggest city, Kano – is projected to cost around US$1.2 billion in total. China is expected to fund 85 per cent of this amount, while the remaining portion will be covered by the Nigerian government.

A local insider familiar with the project reports that the new railway aims to join two past Chinese-supported train projects in Nigeria. One project connects Nigeria's capital, Abuja, with Kaduna, while the other spans from Lagos, the largest city in the country, to Ibadan, the third largest city.


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Trump’s Tariffs Predicted to Peak at 25%, Offering Relief to Hong Kong, China Stock Markets: Insights from Pictet and BNP Paribas Analysts

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Analysts predict Trump's tariffs won't exceed 60%, which may strengthen stock markets in Hong Kong and China.

Pictet and BNP Paribas analysts foresee US tariffs on Chinese products hitting 20% and 25% correspondingly.

Analysts suggest that the substantial 60 per cent tax on Chinese exports, proposed by incoming US President Donald Trump, might end up being significantly less. This could soften the blow on company profits and stock markets in mainland Hong Kong.

Pictet Wealth Management has forecasted that US import duties on Chinese products will increase to 20%, whereas BNP Paribas has stated they will not exceed 25%.

"We're skeptical about accepting the 60 per cent at face value because we believe it could significantly affect the US economy, particularly in terms of inflation," stated Dong Chen, the Chief Asia Strategist and Head of Asia Research at Pictet in Hong Kong, on Thursday.

Trump's focus on tariffs is likely a tactic to facilitate negotiations with China, rather than the end goal, he suggested. He also stressed the need to anticipate possible countermeasures from China and other nations that are predicted to face further US tariffs.

One minute and forty

China's thriving 'underwear hub' could encounter difficulties if Trump remains committed to his promise of US tariffs.

Jacqueline Rong, the lead economist for China at BNP Paribas, predicts a 10% tariff on Chinese goods to be implemented later this month once Trump takes office. She also anticipates an additional 15% to be gradually introduced in the latter half of the year. She highlighted a high degree of uncertainty concerning when and how aggressively the U.S. will impose these tariffs.

She suggested that Chinese exporters may reroute some deliveries to lessen the impact of potential tariff hikes. The bank projected a likely decrease of approximately 14% in China's exports to the US year on year, resulting in a reduction of about 2% in China's total export growth.


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