A developer in Hong Kong slashes rates in Shau Kei Wan venture due to market saturation

The latest pricing guide lowers the district's average cost to its least since September 2016 for initial offerings, according to data from Midland Realty.

Hip Shing Hong (Holdings) is now accepting requests for 50 properties at Oria in Shau Kei Wan, following an unsuccessful sale in June 2023. The medium-sized private developer has decided to reduce the prices of 30 of these properties by over 30%, as per the updated list released on Thursday.

The apartments in the 23-floor building are on average valued at HK$19,544 per square foot, which is close to a nine-year low for new launches in the area, as reported by Centaline Property. The Island Garden project by Nam Fung Group had a similar average pricing of HK$19,409 per square foot back in September 2016.

Quarter to Seven

Despite the enhancing quality of life in Hong Kong, a growing number of its residents are showing interest in relocating to mainland China.

"Developers lack the power to hike prices," stated Jeff Yau, a real estate analyst at DBS Bank (Hong Kong), in a media conference on Thursday. He added that because some heavily leveraged home builders are feeling the squeeze to liquidate their stock for cash, there won't be much leeway for price growth in 2025.

The value of houses dropped by 6.6% in the initial 11 months of the previous year, cumulatively declining by 27% from the highest point in the market in September 2021, based on the government's statistics. Experts suggest that prices may start to level off by the middle of the year after slight recoveries in October and November.

A developer in Hong Kong reduces costs in the Shau Kei Wan project due to market oversupply

The updated pricing brings the average cost in the area to its lowest since September 2016 for initial releases, according to data from Midland Realty

The revised price list drives the average cost in the region to the lowest point since September 2016 for first-time releases, as per information from Midland Realty.

Hip Shing Hong (Holdings) is now accepting orders for 50 properties at Oria in Shau Kei Wan, following a failed sale attempt in June 2023. The medium-scale private developer has announced a price reduction of over 30 per cent on 30 of these properties, as per the updated list released on Thursday.

The apartments in the 23-story building are valued at an average of HK$19,544 per square foot, which is close to a nine-year low for initial property offerings in the area, as per Centaline Property's data. Back in September 2016, Nam Fung Group set the price for its Island Garden project at an average of HK$19,409 per square foot.

Quarter to Seven

Despite the enhanced quality of life in the city, an increasing number of residents from Hong Kong are expressing a desire to relocate to mainland China.

"Developers lack the capacity to hike prices," stated Jeff Yau, a real estate industry analyst at DBS Bank (Hong Kong), during a press conference on Thursday. He further added that due to the financial strain on some heavily leveraged home builders who need to liquidate their stock for cash, significant price increases are unlikely in 2025.

The value of homes dropped by 6.6% in the initial 11 months of the previous year, resulting in a total decrease of 27% since the market's high point in September 2021, as per governmental statistics. Analysts predict that prices might level off by the middle of this year after slight recoveries in October and November.

Apple has consented to settle a Siri eavesdropping lawsuit by paying out $95 million. The collective legal action alleges that Apple captured personal dialogues when Siri was inadvertently triggered.

The suggested resolution, submitted to a federal court in Oakland, California, on Tuesday, was accompanied by Apple's staunch denial of any wrongdoing.

"Apple has persistently rejected and still refutes any accusations of misconduct and responsibility," stated the technology giant in the suggested settlement, which needs a judge's consent to be completed.

The tech powerhouse from California has positioned user privacy as a significant aspect of its brand reputation. This is a primary reason why it maintains a firm grip on its integrated system of hardware and software.

Hong Kong shares bounce back as Beijing increases backing for institutional purchases. Around 20 securities firms, fund managers, and insurance companies were given a total of US$7.53 billion in liquid assets by the PBOC via a swap mechanism.

The Hang Seng Index saw a 0.7 per cent increase, closing at 19,760.27, partially offsetting the 2.2 per cent drop experienced on the inaugural trading day of 2025. Over the week, the index decreased by 1.6 per cent, marking the biggest five-day slump in nearly two months.

The Tech Index of Hang Seng saw an increase of 1.1 per cent. Meanwhile, the CSI 300 Index in mainland decreased by 1.2 per cent and the Shanghai Composite Index also experienced a fall of 1.6 per cent.

Nonetheless, the willingness to take risks was muted and investors amplified their acquisition of fixed-income assets, indicating doubt over a robust resurgence in China's growth. For the first time ever on Friday, the return on China’s standard 10-year government bond surpassed 1.6 per cent.

Approximately 20 companies, including securities firms, fund managers and insurance companies, were granted 55 billion yuan (equivalent to US$7.53 billion) in liquid assets from the People's Bank of China on Thursday. These assets can be used as security for loans to purchase stocks, according to a statement from the central bank. This was the second instance of this new facility's operation since its initiation in September as a component of a stock and economic recovery package.

SenseTime, a Chinese AI company, scales back its Singapore branch due to increased rivalry following the advent of ChatGPT. This move highlights the challenges SenseTime is encountering in the evolving AI industry and signifies a shift in Singapore's premier office real estate market.

The firm is relinquishing an approximately 11,000 square foot (1,022 square meter) area in Frasers Tower in favor of a less centrally located building, according to individuals who requested anonymity while discussing confidential matters.

In the final quarter, BYD surpassed Tesla to become the biggest producer of fully electric vehicles globally. BYD's deliveries outpaced Tesla by over 20% in this period.

"BYD boasts a robust range of products, with their more affordable battery electric vehicle (BEV) models appealing to a global audience of middle- to low-income consumers," stated Phate Zhang, the originator of CnEVPost, a data service for electric cars based in Shanghai. "It is poised to maintain its position as the world's leading producer of BEVs this year."

In an unprecedented occurrence, Tesla, renowned for manufacturing high-end electric vehicles, experienced a yearly drop in deliveries for the first time. The company announced a 1.1 per cent decrease from the previous year, delivering 1.79 million units. Following this news, the value of its shares listed on the New York stock exchange dipped by 6 per cent to US$379.28 on Thursday, despite having seen a substantial increase of 61 per cent in 2024.

Alibaba collaborates with Lee Kai-fu's unicorn amid the unification of China's AI industry. Alibaba Cloud enters an agreement with the start-up 01.AI to create AI model solutions tailored for business customers.

The laboratory plans to merge the expertise in research and development of both groups to investigate AI-related technology and services. Their goal is to develop robust and all-encompassing big model solutions to cater to the needs of business customers, as per the announcement made by Alibaba Cloud.

Alibaba is the owner of the South China Morning Post.

Launched in May 2023, 01.AI rapidly ascended to unicorn status within half a year, following a financing round that involved Alibaba Cloud. The startup's open-source base large language model (LLM) Yi-34B was previously rated as the top pre-trained model by the online AI community, Hugging Face. However, it has since been surpassed.

01. The top AI model, Yi-1.5-9B-Chat-16K, placed tenth among the Chinese contenders as per the recent ratings by benchmarking service SuperClue. Alibaba Cloud's Qwen2.5-72B-Instruct was the frontrunner, only surpassed by models from international competitors OpenAI and Anthropic.

Real estate transactions in Hong Kong saw a decrease in December, leading to a reduction in the number of agents. Despite a 28.3% dip in December, there was an overall increase of 17% in property deals in 2024, based on the information provided by the government.

Real estate deals in Hong Kong saw a decline in December, during a downturn that has dwindled the number of certified real estate agents to the lowest it's been in seven years.

In December, there were 5,510 real estate sales in Hong Kong, which included new and used residences, parking lots, retail spaces, industrial properties, and office buildings, as per the data provided by the Land Registry on Friday. This signifies a decrease of 28.3% compared to November, but indicates a substantial rise of 46.4% compared to the same period last year. The overall worth of these transactions was HK$42.8 billion (US$5.5 billion), a decline of 33.3% from November, however, it demonstrated a 27.4% increase on a year-to-year basis.

The number of home sales dropped by 35 per cent to 4,103 in December, following a surge in the last two months. However, this still signifies a 40 per cent increase compared to the previous year. The total revenue generated from residential sales was HK$32.6 billion.

In 2024, there was a record of 67,979 transactions, marking a 17% increase from 58,035 in 2023, and hitting the highest point since the 96,133 deals in 2021, according to the data. The annual residential sales also witnessed a significant boost, jumping 23.5% to reach 53,099.

"Eddie Kwok, executive director of valuation and advisory services at CBRE Hong Kong, indicated that the expansion in residential property deals primarily resulted from initial sales. This boost was due to the lifting of property restrictions and the initiation of a cycle of rate reductions."

The decrease in the actual mortgage rate has consistently drawn more purchasers to the housing market, he noted. He also pointed out that the decline in December was primarily due to seasonal influences.

"Kwok predicts that the volume of transactions will stay consistent in January," He stated. "The circumstances are anticipated to get better post Lunar New Year, as we foresee more new initiatives being launched by developers."

China's economic boost draws in an increasing number of Generation Z stock traders willing to take on greater risks: according to a study. The number of Gen Z traders escalated to 110 million following the policy changes in September, expanding the group of investors ready to shoulder higher risks, as per a report by Hurun-Ping An.

China's aggressive economic stimulus in September to bolster its economy has attracted more Generation Z investors to the stock market and increased the number of traders willing to take on more risk, based on findings from a research study.

The investor demographic, categorized as individuals born from 1997 to 2012, has seen a significant increase, now accounting for about 110 million or 30% of China's stock trading population, according to a study released by Hurun Research Institute and Ping An Securities. The study further indicated that the number of traders willing to take on greater risks rose to 54% from 49% following a policy change.

On September 24, the central bank of China introduced two fresh financing mechanisms designed to stimulate stock purchases. This action was taken in response to ongoing poor data that risked undermining public confidence. Additionally, the bank committed to reducing the interest rates on home loans. This move triggered a significant surge in Chinese domestic and international stocks, attracting foreign investments back into the market.

Eight forty-seven in

Extreme fluctuations in stock markets of Hong Kong and mainland China

The report indicates that the younger generation is now the primary driving force in the market. These youthful investors display a strong interest in technological advancements and emerging sectors, and exhibit a greater readiness to embrace higher risks in pursuit of substantial returns.

The stimulus strategies implemented by Beijing have diversified the geographical makeup of Chinese stock investors. Now, 61 percent of these investors come from cities other than the top-tier ones, an increase from the previous 42 percent prior to the policy's launch.

In 2024, the significant Chinese index, the CSI 300, increased by 15 per cent, marking a significant recovery from its previous status as one of the globe's weakest. The majority of this growth happened in the weeks following September 24. However, the stocks have plateaued since then as investors are urging for more impactful subsequent actions.

Three forty-nine

Xi's call to action establishes economic objectives for Chinese authorities, forgiving them for past missteps.

In the last year, according to data examined by Hurun and Ping An Securities, 58% of investors have seen a minimum of a 10% return on their stock investments.

The Chinese quick-service restaurant chain, LXJ, is aiming for an initial public offering in Hong Kong as the market recovers. LXJ manages over 1,400 dining establishments in 53 cities in mainland China, with the average meal price around 20 yuan (equivalent to US$2.73).

LXJ International, the operator of the biggest fast-food franchise in mainland China, is aiming for a stock listing in Hong Kong to gather capital for growth, following two failed tries to launch its shares in Shanghai the previous year.

The restaurant chain, Lao Xiang Ji or Home Original Chicken, filed its application with the Hong Kong stock exchange on Friday, without revealing the value of its offering. The capital raised will be utilized to strengthen its supply chain, grow its restaurant reach and upgrade its technologies, along with other objectives.

Previously, the firm had planned to generate 1.2 billion yuan (equivalent to US$164 million) through its submissions to the Shanghai Stock Exchange. However, it retracted its applications in August.

The initial public offering (IPO) market in Hong Kong saw a resurgence last year, following a series of economic boosters unveiled by Beijing towards the end of September, which sparked a global leading surge in Chinese equities. In that same month, Midea Group, a leading Chinese home appliances conglomerate, finalized its IPO valued at US$4.6 billion, marking it as the second largest deal worldwide in 2024.

Last year, the stock exchange in Hong Kong welcomed 71 fresh listings, enabling it to generate 89% more funds, amounting to HK$87.5 billion, compared to the previous year. This development propelled Hong Kong to the fourth position among the world's most active places for initial public offerings.

Comac, China's aviation company, is emphasizing safety as they enter a crucial phase in the unveiling of their C919 aircraft. The firm predicts that the year 2025 will present difficulties due to a complicated and intense safety environment facing the worldwide aviation sector.

The foremost aircraft producer in China has committed to intensifying safety measures while increasing the production of its latest C919 passenger jet. This comes at a time when the worldwide aviation sector is experiencing instability due to accidents and supply chain problems.

Senior leaders from China's government-run Commercial Aircraft Corporation (Comac) emphasized the utmost importance of safety during a strategy session for the upcoming year held on Thursday.

This year is expected to be a pivotal time for Comac as it aims to accelerate the manufacturing of the C919, market the aircraft to international customers, and obtain certification from Western regulatory authorities.

The C919 is transitioning into a crucial phase of mass production and implementation, during a time when the worldwide aviation sector is confronting a challenging and intricate safety environment," said He Dongfeng, the chairman of Comac, as reported on Comac's official website.

"We are also encountering obstacles such as shortcomings in our assistance for airline clients, increased demands with the growth of production, and lack of adequate team development."

Transitioning from excess to the second phase of Trump: Predictions for the EV battery market in 2025

Here's some key information about the EV battery industry in 2025.

What can we expect for the future of EV batteries in 2025?

Nikhil Bhandari, the co-head of natural resources and clean energy research for Asia-Pacific at Goldman Sachs, predicts that the worldwide average price for an EV battery may drop to around $90 per kilowatt-hour (kWh) in 2025, a decrease from $111 per kWh at the close of 2024.

The investment bank projects that by 2026, the cost per kilowatt-hour may drop to US$82, almost 50% less than the US$149 it might be in 2023. This would make the expense of owning an electric vehicle equivalent to that of a gasoline vehicle in the US, without any subsidies.

Bhandari indicated that the driving forces behind this trend are advancements in technology and the decreasing costs of essential battery metals. He also mentioned that the energy density of many newly released battery products has increased by approximately 30% and they are more affordable.

Goldman predicts that lower commodity costs will contribute to over 40% of the reduction in worldwide average battery prices between 2023 and 2030. The metals used in batteries make up close to 60% of the battery's total cost.