Gold reaches an all-time high as Trump's tariffs drive purchases towards safe assets

The price of gold reached a peak of US$2,830.49 per ounce on Monday, fueled by the demand for secure investments amidst uncertainty caused by Trump's tariffs.

On Monday, the value of gold reached a record high, driven by investors seeking security following US President Donald Trump's imposition of tariffs on Canada, China, and Mexico. These tariffs have intensified fears of inflation, which could negatively impact economic expansion.

The price of spot gold increased by 0.8% to reach US$2,818.99 per ounce by Monday afternoon, having earlier set a new record at US$2,830.49 in the same session.

Gold futures in the US saw a settlement with a 0.8 per cent increase, closing at US$2,857.10.

The 25% duties enforced by Trump on imports from Canada and Mexico starting Tuesday, plus a 10% levy on products from China, sparked concerns of a potential trade conflict that could hinder worldwide economic progress and contribute to inflation.

Battery-operated trucks prove more cost-effective than diesel-powered vehicles on extensive routes in Shenzhen trial: specialist

A test initiative in Shenzhen demonstrated that electrically powered trucks superseded diesel-run vehicles when considering the overall cost of ownership.

Electric trucks running on batteries are more economical for long-distance routes from Shenzhen compared to diesel-powered ones, as per a specialist from a research group.

He mentioned in an interview that due to a significant drop in battery prices, the purchasing costs for electric trucks have decreased by approximately 30% compared to 2023. This makes even some shorter routes more economically viable in competition with diesel trucks this year.

Earlier, the steep price of electric trucks wasn't balanced out by their energy cost savings, which deterred some potential purchasers.

"He stated that cargo trucks in Shenzhen, mainly operating routes to the manufacturing hubs of Dongguan and Huizhou, will be a crucial factor in accelerating the growth of vehicle electrification."

The government of Guangdong province is aiming to establish several freight paths with no emissions in the bay area scheme, as a component of its efforts towards decarbonization and promoting clean energy, according to him.

Luxembourg can serve as a bridge in discussions among the globe's major powers, according to the finance minister. Gilles Roth suggests that trade should remain unified even in the face of conflicts in Ukraine and the Middle East.

Global powerhouses ought to work together and Luxembourg is prepared to serve as a mediator, says the nation's finance minister.

Undeniably, it's crucial to maintain unity in global trade, particularly in light of the current geopolitical strains such as the conflict in Ukraine and the unrest in the Middle East," Gilles Roth stated during a conversation with the Post, held during the Asian Financial Forum (AFF) last month.

"China holds a position as one of the top three economic giants worldwide, so any growth in its economy can have positive repercussions on the global economic stage," Roth conveyed.

In 1979, the Bank of China marked its place as the first lender from the mainland to establish a branch in Luxembourg. Presently, Luxembourg For Finance, an entity that fosters and cultivates the financial services sector, reports that seven Chinese banks are operational within the nation. They cater to Chinese customers with an interest in European investments and also assist European clients seeking financial support for their ventures in China.

"As a major financial center, yet a small nation, it's crucial for us to steer clear of protectionism. We aim to act as a bridge, not just in financial areas but particularly in these matters," stated Roth.

Shares in Hong Kong surge due to AI focus and potential for US-China tariff relief. Analysts suggest that investors are eagerly awaiting the possibility of the US resuming talks with China.

Hong Kong shares rose on Tuesday, as investors increased their investments in artificial intelligence (AI) companies, holding out hope that trade war talks could be avoided through negotiations.

The Hang Seng Index experienced a significant daily increase of 2.8 per cent, reaching 20,789.96, which is the largest since October 18. This blue-chip index trimmed its earlier gains, which were as much as 3.3 per cent, following China's announcement of countermeasures against the 10 per cent tariffs imposed by US President Donald Trump on Chinese products. Meanwhile, the Hang Seng Tech Index saw a substantial leap of 5.1 per cent.

Trading on the mainland stock exchanges has been paused for the Lunar New Year holiday and will recommence on Wednesday.

Shares in tech companies generally experienced an increase, particularly those engaged in AI. Xiaomi saw a rise of 4.2 percent, reaching a value of HK$39.55, while JD.com's stocks increased by 6.7 percent, hitting HK$162.10. Meanwhile, online retail behemoth Alibaba Group Holding saw a growth of 3.9 percent, reaching HK$97.65, and Tencent's shares went up by 4.1 percent to HK$420.80.

Li Auto, a manufacturer of electric vehicles, saw a significant increase of 8.7 percent, reaching HK$94.20 in value. Similarly, Geely Automobile's worth increased by 7.9 percent, hitting HK$15.94. Semiconductor Manufacturing International, also known as SMIC, experienced a boost of 8.5 percent, bringing its value up to HK$45.45. In the fashion industry, Shenzhou International Group Holdings also saw a rise, with an 8.7 percent increase to HK$62.90.

"There is growing anticipation in the market for the advancement of mainland's AI models, premium chips or innovative technologies, which is driving the Hong Kong stock market upwards today," stated Jason Chan, a top investment strategist at Bank of East Asia.

ENN Energy Holdings experienced a decrease in profits, dropping by 0.9% to HK$52.45 as a result of China's proposed 15% import tariff on US liquefied natural gas. This could potentially increase the cost of gas.

China has begun an antitrust investigation into Google following the imposition of Trump's tariffs. The State Administration for Market Regulation kick-started the inquiry into the web search behemoth after the US enforced a 10 per cent tariff.

The U.S. online search leader, which withdrew its search function from mainland China in 2010, is under investigation by the State Administration for Market Regulation (SAMR), as stated on the regulator's website on Tuesday. The Chinese agency suspects the company of breaking the nation's competition laws.

Six minutes and three

The Chinese ambassador has voiced criticism over Donald Trump's US tariff, Panama Canal, and AI strategies.

The SAMR did not specify the supposed infractions by Google. In mainland China, the majority of Google's services, such as search, Gmail, Google Maps, aren't accessible. However, the American technology behemoth has continued to run certain operations in the nation, primarily in the advertising sector.

Real estate transactions in Hong Kong drop to the lowest in four months due to tariffs and uncertainty over interest rates

January saw a decrease in transactions involving homes, commercial properties, and parking spots as purchasers prepared for global political unrest and a deceleration in rate reductions.

Transactions related to homes, businesses, and parking areas fell by 10.4% to 4,938, and their worth decreased by 14.2% to HK$36.7 billion (US$4.7 billion) compared to the previous month, as per the information released by the Land Registry on Tuesday. The figures reached their lowest since recording 3,843 deals valued at HK$27.7 billion in September.

Compared to the previous year, transactions saw an increase of 12.2 per cent, with their value also going up by 9.1 per cent, as per the information from the data.

Ricacorp Properties predicts that there will be no significant increase in sales this month. This comes as US President Donald Trump instigates what might be the beginning of another tariff dispute involving trade allies like China, Mexico, and Canada. Last week, the Federal Reserve held its main interest rate steady in order to reevaluate inflation and employment market situations.

Two hours and forty

China retaliates against US tariffs, promising to bring the matter to the WTO.

"Derek Chan, the research head at Ricacorp, predicts that the transaction registration volume in February will either remain static or may see a minimal growth," He further stated that property investors have become wary, waiting to see the outcome of the tariff war.

The UK court has approved the debt strategy of Chinese developer, Sino-Ocean. This decision could potentially set the stage for the company's success in a forthcoming liquidation lawsuit in Hong Kong later this month.

Chinese real estate company, Sino-Ocean Group, burdened with debt, received approval for its financial restructuring plan from a UK court on Monday. This decision was made in spite of opposition from some lenders, potentially setting the stage for the company to succeed in a liquidation case in Hong Kong.

The London High Court has sanctioned a restructuring plan proposed by a construction firm, enabling the state-supported entity to restructure around $6 billion of debt. First suggested in July, the proposal faced opposition from a spontaneous assembly of creditors.

The developer, whose major stakeholders include state-supported China Life Insurance and Dajia Insurance, plans to repay its lenders by releasing US$2.2 billion in long-term bonds along with an amalgamation of mandatory convertible notes and perpetual securities.

Justice Nicholas Thompsell expressed strong belief in his verdict that the division of worth in this situation is considerably equitable concerning all creditor groups involved in the plan. He further noted that the plan might seem excessively favorable to shareholders, but it's justified considering that maintaining the company's public ownership enhances the plan's value for every creditor category, more than what they would benefit from any other plan.

Shares of Sino-Ocean in Hong Kong saw an increase of 18 per cent, reaching HK$0.26 on Tuesday.

The UK court has approved the debt strategy of Chinese builder Sino-Ocean. This decision could set the stage for the firm to come out victorious in an impending bankruptcy case in Hong Kong later in the month.

Sino-Ocean Group, a debt-laden Chinese developer, received approval for its reorganization plan from a UK court on Monday. This happened even though some creditors objected, and it could potentially clear the path for the company to succeed in a liquidation lawsuit in Hong Kong.

The High Court of London has given the green light to the builder's offshore restructuring plan, enabling the government-supported firm to reorganize around US$6 billion in debt. Initially presented in July, this proposition faced opposition from a spontaneous assembly of creditors.

The development firm, supported by significant stakeholders like China Life Insurance and Dajia Insurance, plans to reimburse its creditors. They intend to do this through the release of long-term bonds valued at US$2.2 billion, along with a mix of obligatory convertible notes and everlasting securities.

Justice Nicholas Thompsell expressed unwavering confidence that the proposed value division among all creditor classes involved in the plan is significantly equitable. He acknowledged that the plan might be overly favorable to shareholders, but justified this by saying it was for a valid reason. Maintaining the company's public ownership status, he said, enhances the plan value for every creditor group more than any other potential plan would.

Shares of Sino-Ocean in Hong Kong increased by 18 per cent, reaching HK$0.26 on Tuesday.

Viewpoint | Trump's ban on digital dollar paves the way for the rise of China's yuan

The US president's choice to stop CBDC progression could unintentionally speed up the movement away from the dollar, facilitating the global acceptance of the yuan.

On the 23rd of January, Donald Trump, the President of the United States, initiated an executive order to form a task force for developing regulations for digital assets. Interestingly, this order also enforced a prohibition on the development of a digital currency by the US central bank, thereby putting a stop to the plans to develop a digital equivalent of the dollar.

The World Economic Forum underscored in April of the previous year that more than 98% of the world's central banks were engaged in the creation of a Central Bank Digital Currency (CBDC). However, considering the US ban on CBDC development, this percentage has potentially decreased.

Though there are already solutions such as FedNow, an instant payment platform supported by the Federal Reserve launched in 2023, for local US transactions, a Central Bank Digital Currency (CBDC) could significantly improve international trade and immediate settlements for everyone, from individuals to institutions to governments.

Commentary | Trump's prohibition on digital dollars paves the way for China's yuan

The American president's choice to stop the progress of Central Bank Digital Currencies (CBDC) could unintentionally speed up the diminishing dominance of the dollar, making way for the global acceptance of the yuan.

On the 23rd of January, the American President, Donald Trump, authorized an executive order to establish a task force to develop regulations for digital assets. Interestingly, this directive concurrently prohibited the development of a digital currency by the US central bank, essentially putting a stop to the plans for creating a digital form of the dollar.

According to the World Economic Forum's report from April of the previous year, central banks of more than 98 percent of the world's economy have participated in creating a CBDC. Nonetheless, due to the United States' ban on CBDC development, this percentage has presumably decreased.

Though there are existing services such as FedNow, an instant payment service supported by the Federal Reserve and launched in 2023, for internal U.S. transactions, a Central Bank Digital Currency (CBDC) could greatly improve international commerce and provide immediate transaction resolution for individuals, organizations, and governments.

Trump's tariffs drive up gold prices to an all-time high as investors look for secure investments.

Worries among investors about a possible worldwide trade conflict have led to a significant rise in gold prices.

On Monday, the value of gold skyrocketed to an all-time high as investors turned to reliable assets in the face of unpredictability triggered by the tariff strategies of US President Donald Trump and persistent worries about inflation.

On Monday, the cost of global spot gold increased by 0.57 percent, reaching US$2,813.34 per ounce, following an earlier all-time high of US$2,830.49 during the same trading period.

The positive trajectory persisted into Tuesday, with the price of gold reaching US$2,819.46 per ounce by the morning.

The cost of gold products in China has been on an upward trend since the start of the year. Prominent jewelry brands like Chow Tai Fook and Chow Sang Sang announced on Tuesday that their prices have exceeded 850 yuan per gram, which is equivalent to US$3,325 per ounce.

"Citic Securities analysts stated in a research note on Monday that the escalating trade conflicts have dramatically increased the avoidance of market risk, pushing gold prices to record levels. They suggested that any further amplification of trade frictions will continue to stimulate the rise in gold prices."

Global central banks, such as those in China, Russia, India, and the United Arab Emirates, have been boosting their gold reserves lately. However, the surge in demand for secure assets took off when Trump declared on Saturday that the US would put tariffs on goods imported from Canada, Mexico, and China.

Guming, the major Chinese bubble-tea company, aims to raise US$200 million in Hong Kong's Initial Public Offering (IPO). The firm, trading under the "Good me" brand, plans to offer 158.6 million shares with each priced between HK$8.68 and HK$9.94.

Guming Holdings, a Chinese company specializing in bubble tea beverages, plans to generate as much as HK$1.58 billion (equivalent to US$202 million) through an initial public offering (IPO) in Hong Kong. This marks the first IPO of the Year of the Snake.

Guming revealed in a regulatory filing on Tuesday that it plans to sell 158.6 million shares between HK$8.68 and HK$9.94 each. The final cost per share will be set by Friday, and the shares will become publicly traded on February 12.

The business, trading as Good me, ranked as the biggest mid-range fresh drink vendor in China in terms of gross merchandise value (GMV) and number of outlets in 2023. In the initial three quarters of 2024, there was a 20% yearly increase in GMV, reaching 16.6 billion yuan (US$2.3 billion). Concurrently, the expansion of its outlet chain saw an 8.6% growth, totalling 9,778 stores.

According to its report, Guming saw a year-on-year profit increase of 11.8% in the first three quarters of the previous year, reaching 1.1 billion yuan. This figure exceeded the total profit for 2023.

The Initial Public Offering has drawn the interest of five key investors who have collectively poured in US$71 million. Huang River Investment, fully owned by Tencent Holdings, has contributed US$25 million to this total.