Asian investors significantly contribute to a US$30 billion fund for the secondary private equity market. Amid worldwide instability and liquidity issues, investors are increasingly focusing on the secondary private equity market.

Asian investors significantly contributed to a $30 billion fund targeting chances in the secondary private equity market. This indicates their increasing interest in these assets as they navigate through global instability and liquidity shortages.

Fluctuations in the market in the past few years have led some fund investors to dispose of their private equity investments. This move comes as their allocations surpassed predetermined limits due to the decrease in value of other public market assets. Meanwhile, some publicly traded companies aim to make a profit by offloading their stakes in certain funds as a way to alleviate pressure in their primary operations, according to Jason Yao, Ardian's chief of Greater China.

"He mentioned that numerous family offices have been established in the area," he said. "A good number of these offices boast of highly advanced operations, with personnel from institutional investment backgrounds who have a global market reach, and they fully grasp the worth of secondary markets."

Ardian chose not to reveal the identities of the Asian investors in their most recent fund. Yao expressed that insurance companies showed significant interest. The most recent fund saw a minimum of 40 investors from the Asia-Pacific area, a number that is over four times greater than that of Ardian’s preceding fund.

Yao suggests that the secondary market serves as an ideal entry point for many novice Asian investors in private equity, due to its rapid liquidity rotation.

Office lease rates in Tokyo surge, yet uneven vacancy rates warrant investor prudence

Lease rates for premium commercial spaces in Tokyo saw a 5.2 per cent hike in the third quarter of the previous year, marking the highest increase in the past eight years.

The cost of top-tier office rentals in Tokyo, Japan saw a surge of 5.2% in the third quarter of the year, marking the first time the growth rate has surpassed 5% since the same time span in 2016, as stated in a report by CBRE.

Prime office space rents in key cities such as Nagoya and Osaka saw an increase of 2.6 per cent and 1 per cent respectively. Meanwhile, the remainder of Japan experienced a rise in overall office rents by up to 1.7 per cent.

The increase in nationwide office rents was driven by a decrease in vacancy rates, dropping by up to 5.9 basis points. This was due to businesses enforcing back-to-office work policies and organizations enhancing their office settings to appeal to and keep their staff, as stated by CBRE.

Seven forty-three

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Yet, the increase in rental rates was primarily focused on certain properties, obscuring the imbalance in vacancy rates within Japan's office sector.

China's retail incentives encourage hesitant buyers to shop during the Lunar New Year

Purchases of consumer products like smartphones and tablets skyrocket, though future retail trends remain unclear.

The substantial financial aid provided by Beijing to stimulate spending is working as intended, with consumers taking advantage of the situation to upgrade various devices and home appliances.

Customers, who have been holding off on spending since the beginning of the year in hopes of larger government subsidies, have embarked on a spending binge during the Lunar New Year holiday, despite the subsidy amount remaining unchanged from the previous year.

As an illustration, smartphone sales in Shanghai have seen a significant increase of over 90% since January 20, compared to the same time frame a year ago. Similarly, tablet sales have skyrocketed, with an increase of over 200%, as shown by data from Suning.com, a leading home-appliance chain in mainland China.

"The surge in purchases of home appliances and electronics is due to the government's commitment to boost the economy," stated Eric Han, a high-ranking executive at Suolei, a consultancy agency in Shanghai. "However, it's uncertain if this retail growth will continue post-holiday."

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JSR, a key player in the semiconductor supply chain, anticipates an increase in chip sales due to DeepSeek. The affordable AI models offered by DeepSeek are predicted to drive long-term demand for semiconductors, according to the Japanese chip materials provider.

Five past ten

Chinese AI innovator DeepSeek has seized the number one position in the US App Store, toppling ChatGPT from its reign.

Emoto stated in a discussion that progress in AI technology is always beneficial. Regardless of whether DeepSeek alters the landscape of the industry, he mentioned it wouldn't significantly affect them. He further added that the advent of innovative AI technologies is a favorable trend.

The Chinese startup, Unitree, predicts that humanoid robots will be extensively utilized in commerce within this decade. Unitree anticipates a significant advancement in the abilities of humanoid robots by 2026, at which point their applications in the business world are expected to become more defined.

The achievement displayed at the Spring Festival Gala highlights the advancements made by Unitree. Over the last two years, the company has ramped up its development of humanoid robots, particularly as the sector becomes more saturated with both international and local competitors due to recent developments in AI models.

One minute and one

Robots take the spotlight in a dance performance at China's Spring Festival Gala.

"The crux of humanoid robots lies in the 'mind' – implying intelligence," stated Huang Jiawei, the marketing director, during a conversation with the South China Morning Post.

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.

Five past ten

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.

Two-thirty-one

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.

Ten fifty-seven

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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.