The disruption of DeepSeek services intensifies its challenges in the midst of political examination, however, some view this as a chance for growth. A digital assault on the Chinese AI new venture has resulted in sporadic service interruptions over several days, while third parties like Nvidia are promoting their in-house solutions.

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The Chinese AI innovator, DeepSeek, has claimed the prime position in the US App Store, ousting ChatGPT from the top spot.

Australia's Finance Minister Jim Chalmers has issued a warning to users to tread carefully with DeepSeek this week, as reported by Reuters. The Italian data protection authority has disallowed access to the app due to concerns over its handling of personal information. The app has been taken down from the Apple App Store and Google Play store in Italy. Additionally, both Ireland and South Korea are seeking more details from DeepSeek about how it uses personal data, as per Reuters' coverage.

Exclusive | Macau's inaugural domestic mutual fund aims for mainland investors through wealth connect program

A&P Macau Patacas Money Market Fund is set to be made available to individuals on the mainland in the Greater Bay Area.

"The investment fund we manage recently hit the half-year mark, and we've effectively built a reputation," said Bernardo Alves, founder, chairman, and chief investment officer of A&P Investment Fund Management, during a discussion with the Post at his office in Macau.

"It's time to progress and begin advocating [the fund] to those on the mainland through the Wealth Management Connect program."

The portfolio has accumulated 218 million patacas (equivalent to US$27 million), earning a return of 3.86 per cent through its investment in Macau's interbank market using time deposits in patacas, Hong Kong dollars and US dollars. The Bank of China in Macau manages the distribution of the fund, while EY acts as its auditor.

This signifies a significant advancement in Macau's financial services sector, as funds that were earlier marketed here were from global fund firms headquartered in Hong Kong.

Standard Chartered relies on yuan resources amidst US-China conflicts and potential threats from Trump

The bank has already experienced an increased requirement for foreign-exchange administration and hedging, and an executive predicts this need will only amplify.

The instability in the market during the tenure of US President Donald Trump and the increasing attractiveness of yuan assets are driving a surge in Standard Chartered Bank's capital markets and trading operations this year, says a high-ranking official.

John Thang, who heads markets and strategic client management and solutions for Hong Kong, Greater China, and North Asia, stated that Trump's plans for inflationary policies and his tariff talk directed at China and other nations are causing shifts in the markets. This is influencing predictions on interest rates, foreign currency, and credit.

"The market has experienced instability each time Trump made a move or even when he remained silent, not to mention when he actually spoke," stated Thang.

Standard Chartered, a bank in Hong Kong that issues notes, has already observed a rise in the need for managing foreign exchange and hedging. The requirement for companies and financial establishments to handle risks will continue to expand, according to Thang.

The management of risks associated with the Yuan will become a crucial issue for market players, given the currency's recent instability, he further commented.

Chinese equities are projected to benefit from a $236 billion injection from state-owned investors, according to UBS. The Chinese government's encouragement for insurers, mutual funds, and social-security funds to ramp up their A-share investments is expected to stabilize market fluctuations, as per industry experts.

James Wang, who heads China strategy for the Swiss bank, suggested in a separate statement that establishing a more extended investment timeframe for the main institutional investors in the A-share market could help decrease the market's inherent fluctuations. He further added that this could also inspire more long-term capital infusion into the stock market.

Wang stated that China's most recent actions have the potential to produce steady inflows amounting to nearly 1.3 percent of market capitalisation annually.

Shares in Hong Kong surge as UBS predicts significant fund investments due to government aid initiatives. UBS anticipates a fund influx of US$236 billion in 2025, following Beijing's order to bolster the capital markets.

Shares in Hong Kong climbed, positioning the market for a successful month, as investors speculated on significant capital inflows following China's increased efforts to protect the country's financial markets from the effects of U.S. trade sanctions.

On Monday, the Hang Seng Index rose by 0.7% to reach 20,197.77, marking a monthly increase of 0.6%. The Tech Index also made gains, rising by 1.4%. With the exception of a 9.2% drop last year, the city's key indicator has recorded a successful January each year since 2021.

Indices in domestic markets took a hit prior to the week-long Lunar New Year break, as the Shanghai Composite Index gave up its entire 0.7 per cent increase. Both the index and the CSI 300 measure of stocks from Shenzhen and Shanghai saw a decline of 3 per cent in January.

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US President Donald Trump moderates stance on potential China tariffs

On Sunday, the China Securities Regulatory Commission revealed new steps to enhance index-related products, while also appointing a group of insurance companies to back its initiative. Last week, Beijing declared its intention to channel more mutual and insurance funds into stocks to counter potential US policy offensives.

UBTech, a Chinese robotics manufacturer, aims to begin large-scale production of industrial humanoid robots by the end of the year. The company intends for over 60% of the humanoid robots they plan to distribute this year to be their forthcoming model, the Walker S2.

UBTech Robotics, a company based in Shenzhen, intends to start large-scale production of its humanoid robots by the end of this year, says a high-ranking official. This move comes as the company, which is currently operating at a loss, seeks to increase production in the face of intense rivalry in China's robotics industry.

UBTech plans to distribute approximately 500 to 1,000 Walker S Series industrial humanoid robots to its clients and collaborators this year. These include automobile manufacturers, Apple's supplier Foxconn, and the logistics company SF Express, according to the company's chief brand officer, Michael Tam. He shared this information during an interview at the recent China Conference in Guangzhou, organized by the South China Morning Post.

Tam stated that UBTech's ultimate goal is to introduce humanoid robots to every household. However, the company's primary emphasis at the moment is on industrial robots.

According to Tam, factories require humanoid robots to assist in addressing the issue of labor scarcity.

Factories offer a less complex and more predictable environment for humanoid robots to function and learn, as they are not yet intelligent enough to serve humans at home, according to Tam.

Established in 2012 and going public in Hong Kong in 2023, UBTech is a major force in China's robotics sector. The company provides an extensive selection of non-humanoid robots used in various applications including cleaning, delivery, and service. In October of the previous year, they introduced their most sophisticated industrial humanoid, the Walker S1.

Sunac China reduces expenses on a defaulted debt of US$715 million associated with a project in Beijing. The terms of the restructuring enable the Chinese developer to significantly decrease its yearly borrowing expenses from 9.6 per cent to 4.12 per cent.

Sunac China, a leading residential and commercial property developer in the nation, successfully reduced its borrowing expenses and avoided a potential fine after rearranging a 5.2 billion yuan (equivalent to US$715.6 million) unpaid debt related to a premium housing and business project in Beijing.

The developer has entered into a contract with China Credit Trust and China CITIC Financial Assets to settle the debt accrued by its subsidiary, Beijing Oceanwide Dongfeng Real Estate, over a period of four years, ending in January 2029. This information was revealed in a filing with the Hong Kong stock exchange on Monday. The firm managed to reduce the original debt by 1.64 billion yuan before it defaulted in September 2023, the company stated.

Sunac announced that the lenders have consented to forgo the default penalty, decrease the accumulated late interest to 650 million yuan, and reduce the yearly interest on the remaining debt to 6.5 per cent from 9.6 per cent. This essentially reduced its loan costs on the initial debt to 4.12 per cent from the date of borrowing, it further stated.

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Upsurge, collapse, and debt: Is China's real estate market in a slump?

Sunac stated that this has offered "a full departure solution" for the trust investors, significantly easing the project's debt burden. This gives the project more robust financial backing.

Beijing announces a $7.2 billion infusion of insurance funds for stocks

China Pacific, Taikang Life, and Sunshine Life are among the companies investing 'patient capital' into A shares to assist with market stabilization.

Beijing has released another roster of insurance firms participating in a program aimed at strengthening and stabilizing the stock market through the infusion of long-term capital.

The State Council's National Financial Regulatory Administration (NFRA), a body that supervises the financial industry, has given the green light to the second round of long-term equity investment trial ventures, valued at 52 billion yuan (US$7.2 billion). This news was announced by state media on Sunday.

The roster comprises of China Pacific Insurance, Taikang Life Insurance, Sunshine Life Insurance, and pertinent insurance asset-management firms, as per the reports.

These organizations will be involved in the trial program by means of contract-based funding, a method in which the investment is handled based on preset conditions and goals specified in an agreement. It is anticipated that the insurance companies will use the influence of long-term and patient capital to uphold the steady functioning of the capital market, according to the reports.

A week ago, Trump issued threats to start applying tariffs on products from China starting from the next month. He also revealed a strategy to surpass China in the realm of artificial intelligence.

"Belt and Road": Chinese energy companies set new records in capacity installation, leaning heavily on fossil fuels.

The dependence on polluting energy sources was still significant, comprising 48 per cent of projects in 2024, a slight decrease from 55 per cent in 2022, according to the report.

Chinese energy corporations established a historic level of generation capacity in foreign markets encompassed by Beijing's Belt and Road Initiative, with almost 50% utilizing fossil fuels.

China has successfully finished projects equating to 24 gigawatts (GW) across over 150 countries they have cooperative agreements with, marking a record since the program's initiation in 2013, according to a report released on Monday by UK consulting firm, Wood Mackenzie. This is a significant increase from the 10GW completed in 2023 and the 22GW accomplished in 2022.

Approximately half of the projects, 52% to be exact, utilized renewable energy sources, which saw a two-fold increase in solar power to 8GW and a quintuple increase in hydroelectric power to 5GW. The remaining 48% of the projects relied on coal, natural gas, and oil, with their collective capacity soaring to 12GW, up from 3GW in 2023.

"Chinese corporations are significantly focusing on environmentally friendly technologies abroad," stated Alex Whitworth, the Vice President and leader of Power and Renewables research for Asia-Pacific. As the expenses decrease, "they are spearheading its implementation in several emerging markets that were unable to afford it before," he further explained.

2:48 AM

China's President Xi Jinping has revealed an 8-point plan for the country's Belt and Road Initiative at a conference.

In September 2021, President Xi Jinping promised to halt the construction of additional overseas coal-powered plants. Approximately 20% of the total capacity of the 104 coal plants, either proposed or currently being built across 26 nations with China's participation, was called off one year later.

Even with the worldwide move towards cleaner energy, there remains about 19GW of coal-powered energy projects under development. Also, approximately 9GW of natural gas projects are at various stages of completion, according to Wood Mackenzie.

Robot manufacturer from China identifies Hong Kong and Macau as potential markets for their large cleaning machines. The cleaning robots of Suzhou Intelligence Technology are utilized in big commercial settings like malls and airports.

"Considering the high cost of labor and the need for cleanliness, these two markets are ideal for introducing our robots," he continued.

Acquiring industrial-level cleaning robots is challenging due to their limited adoption, Kong explains. Therefore, these items present an increased opportunity for expansion, he mentioned.

"The intended audience for domestic cleaning robots is quite specific. They can be easily promoted as gifts for new homeowners or the elderly," stated Kong. "However, convincing commercial property management companies to purchase a cleaning robot is a more complex task, as it requires the agreement of numerous individuals within these organizations."

The Exchange Fund of Hong Kong announces its fifth-highest yearly return, even with a loss in the final quarter. The fund reported a 3% drop in 2024, down to HK$219 billion (US$28 billion), primarily because of a HK$20.1 billion loss in the last quarter.

Hong Kong's financial defense mechanism, the Exchange Fund, revealed a loss for the last quarter due to decreasing bond values and a reduction in the worth of non-US dollar assets.

The fund recorded its fifth-highest annual yield for the entire year, demonstrating the success of a varied investment strategy. The return on investment in 2024 dropped by 3 per cent compared to the previous year, amounting to HK$219 billion (US$28 billion), according to the Hong Kong Monetary Authority (HKMA) statement released on Monday.

The Exchange Fund posted record-breaking results for the initial three quarters of 2024, however, a loss of HK$20.1 billion in the final quarter halted the streak of four straight profitable quarters. During the period from October to December, Hong Kong's stock market experienced a decrease of HK$6.7 billion, while the foreign exchange suffered a valuation loss of HK$27.4 billion. These losses were partially balanced by a rise of HK$11.3 billion in bonds and a HK$2.7 billion hike in foreign stocks.

The subpar showing of the stock markets in the final quarter, coupled with declining bond prices, impacted the Exchange Fund's performance, according to Eddie Yue Wai-man, the HKMA's Chief Executive Officer, during a press conference. He further noted that a robust US dollar also negatively influenced the fund's returns.

The total assets of the Exchange Fund saw a rise of HK$65.9 billion, reaching a value of HK$4.082 trillion by the end of the previous year.

BYD sets aside $5 billion for foreign exchange derivatives trading to mitigate risks from fluctuations in the yuan value. As the biggest electric vehicle producer globally, the company aims to safeguard its expanding international activities from the instability of the yuan, given the escalating trade conflicts.

"In an attempt to counterbalance the negative effects of volatile currency exchange rates and to reduce financial costs, the firm has opted to engage in foreign exchange hedging via derivatives trading," stated BYD in a document submitted to the Hong Kong stock market over the weekend. "The derivatives trading will proceed based on business requirements."

The automobile manufacturer based in Shenzhen, that includes Warren Buffett's Berkshire Hathaway among its shareholders, clarified that the 5 billion dollars would solely be allocated for hedging activities.

Currency futures serve as a protective mechanism enabling traders to limit possible damages from currency exchange. In practical terms, if the Chinese yuan gains strength, it could result in foreign exchange losses for the car manufacturer if its overseas revenue loses value.

BYD's decision to engage in forex derivatives trading stems from its swift international expansion, driven by the growing acceptance of its mass-market electric vehicles beyond China's borders. The firm has a presence in almost a hundred nations.