Special Report | Rosewood Hotel Group sets sights on Chinese tourists in Abu Dhabi, plans additional expansion in Middle East

The Hong Kong-based Rosewood Hotel Group was one of the first hotel businesses to acknowledge the increasing importance of the Middle East.

Hospitality providers in Abu Dhabi, such as the Rosewood Hotel Group, are prioritizing China as their primary focus. The efforts made by the group to set up the required framework to penetrate the Chinese market confirms this, says the head of the group's Abu Dhabi division.

Remus Palimaru, the managing director of Rosewood Abu Dhabi, stated that their primary customers currently come from the United States, Europe, and the Middle East. He further mentioned that apart from these regions, their main focus and target market is China. This focus is not only for their establishment, but also reflects a similar interest from their competitors and the city as a whole.

Palimaru stated that local cultural and tourism authorities were strongly encouraging Rosewood to incorporate payment methods such as WeChat to cater to the needs of Chinese travelers.

"Our goal is to stay a step ahead, having invested considerable energy in conveying to China that our doors are open for business," he stated.

Radha Arora, President and Co-Chief Development Officer of the Hong Kong-established Rosewood Hotel Group, stated that their organization was one of the first in the hospitality industry to acknowledge the increasing importance of the Middle East. This includes the crucial part the region plays in accommodating major international events and drawing a substantial number of tourists and investors.

In July of 2011, New World Hospitality purchased Rosewood Hotels & Resorts for a sum of $229.5 million. Following this, they rebranded themselves as the Rosewood Hotel Group two years later. Sonia Cheng Chi-man has since stepped into the position of CEO.

Sole Coverage | Rosewood Hotel Group Aims to Attract Chinese Tourists in Abu Dhabi, Considers More Expansion in the Middle East

The Rosewood Hotel Group, headquartered in Hong Kong, was one of the trailblazing hotel businesses to acknowledge the increasing importance of the Middle East.

Hotel owners in Abu Dhabi consider China as their main focus, reflected in the measures taken by the Rosewood Hotel Group to establish the required facilities to penetrate the Chinese market, states the head of its branch in Abu Dhabi.

Remus Palimaru, the managing director of Rosewood Abu Dhabi, mentioned that their predominant clients currently come from the United States, Europe, and the Middle East. He also pointed out that China is their primary focus, as well as that of their competitors and the city itself.

Palimaru mentioned that regional culture and tourism authorities were strongly advocating for Rosewood to adopt payment methods such as WeChat, to be well-prepared for visitors from China.

"We aim to be at the forefront, having exerted significant efforts to convey to China that we are ready for business transactions," he stated.

The Rosewood Hotel Group, headquartered in Hong Kong, was one of the first hotel chains to acknowledge the increasing importance of the Middle East, says Radha Arora, the group's president and co-chief development officer. This recognition encompasses the region's crucial function in organizing major international events and drawing in a substantial number of tourists and investors.

In July 2011, New World Hospitality purchased Rosewood Hotels & Resorts for a sum of $229.5 million. Two years subsequent to that, they rebranded themselves as Rosewood Hotel Group. Sonia Cheng Chi-man has since assumed the position of CEO.

Chinese electric vehicle manufacturer, Nio, has introduced its Firefly-branded cars to compete with Mini Cooper and Smart. This unveiling marks a significant step forward in Nio's expansion into global markets.

During the Nio Day event in Guangzhou on Saturday, William Li, who serves as the CEO and co-founder of the Shanghai-based auto manufacturer, announced that their latest smaller and less expensive vehicle, equipped with the newest electric vehicle technologies, is set to be within reach for a wider range of global customers.

"We believe it's our company's duty to pursue a sustainable and improved future," he conveyed to the 22,000 Nio owners present at the event. "Nio is committed to creating top-quality electric vehicles for customers around the world."

The initial model of the compact Firefly car is tagged at 148,000 yuan (equivalent to US$20,284) and they will start shipping in April, according to him.

Nio's battery swap technology, which enables users to switch out a depleted battery for a fully charged one in under three minutes, will support the car. The car also has the ability to park itself. Information about the car's driving distance and digital control panel was not disclosed.

Li stated that Firefly vehicles surpass Mini's in intelligence and, in terms of style, they outshine other cars equipped with smart features.

Last month, Deutsche Bank reported that the new model's total shipments would hit 8,000 units by 2025.

The ongoing turmoil in China's real estate sector continues into its fifth year

The persistent property debt issue in China is now in its fifth year, with no signs of struggling builders finding it easier to settle their debts.

A prominent Chinese developer is now under scrutiny by officials due to potential default risks. A significant construction company in Hong Kong is seeking extended loan terms from its lenders. Meanwhile, another similar industry player is offloading a famous yet mostly vacant shopping complex in Beijing.

The real estate debt crisis in China, now in its fifth year, shows little signs of easing, as struggling property developers continue to grapple with debt repayment amidst a persistent downturn in housing sales. These developers' dollar bonds remain noticeably devalued, while debt issuance is almost non-existent. Additionally, the real estate sector stands out as a significant underperformer in the stock markets.

Recently, there were renewed concerns when the banking regulator instructed leading insurance companies to disclose their financial risks associated with China Vanke. This was to determine the level of assistance needed by the country's fourth-largest developer by sales to prevent bankruptcy. Meanwhile, in Hong Kong, New World Development tried to postpone some loan repayments, and Parkview Group listed a notable commercial property for sale in Beijing.

Recent indications of strain are heightening worries that the housing industry, which was once a significant driver of growth and now a major hindrance to demand for products ranging from furniture to vehicles, is far from recovering. The problems faced by Vanke add to the anxiety as it demonstrates that the liquidity crunch is impacting one of the few major construction companies that have managed to stave off insolvency. Moreover, the difficulties experienced by its counterparts in Hong Kong signify that the ripple effects are being increasingly experienced abroad.

"Though the latest governmental strategies have slowed down the decline, the industry may need another year or two to reach its lowest point," stated Leonard Law, a senior credit analyst at Lucror Analytics. "Given these circumstances, there remains a chance for additional defaults in the coming year, though the total default rate is expected to be significantly less than previously."

In an attempt to mitigate the economic slowdown, Chinese officials have intensified their initiatives in the past few years. These measures include reducing interest rates, decreasing buying expenses and limitations, and providing government assurances for bond sales from more robust developers. During a significant economic conference held earlier this month, prominent leaders also vowed to stabilize the real estate market in the coming year.

Nonetheless, the implemented rescue strategies have primarily aimed at averting a crash in real estate values, safeguarding proprietors of incomplete apartments, and utilizing government funding to manage surplus inventory. Simultaneously, decision-makers decided to stand by and observe as once-industry giants China Evergrande Group and Country Garden Holdings failed to meet their financial obligations.

The value of diamonds is drastically decreasing globally. Could China be the culprit? The demand for natural diamonds in China has significantly diminished due to the decline in marriage rates. Simultaneously, China's factories are producing synthetic substitutes that are nearly 90 per cent less expensive.

In the current challenging financial climate in China, not all recently married couples can afford a high-end, genuine diamond. However, many of them are no longer interested in owning one.

The global value of natural gems has decreased, tarnishing their worth, even as their synthetic counterparts shine equally bright but come at a significantly lower cost.

Vivian Wu, a 40-year-old entrepreneur who established the diamond company Wei An Shang Mao in Shanghai, stated that there isn't a definite requirement for items from Tiffany's.

Wu continues to fulfill approximately 10 diamond requests weekly, a trend that has been consistent over the years. However, recently, customers are frequently seeking deals. More and more newly married couples are requesting her to source smaller diamonds to suit their decreasing budgets or opting for synthetic versions that can sometimes cost only a fraction, about one-tenth, of the price of a natural diamond.

Transformations occurring in China are swiftly altering the worldwide diamond industry, as Chinese consumers are reducing their spending on natural diamonds and their manufacturing sectors are increasing the production of more affordable synthetic options.

The cost of diamonds in bulk has seen a reduction of approximately 40% in the last two years, as stated by Bank of America Global Research. The Zimnisky Rough Diamond Price Index indicates a notably sharp decrease since reaching its peak in 2022.

China's C919 jet is undergoing crucial trials as its network swiftly broadens. The Chinese commercial plane is currently operating flights to 10 prime cities in an effort to assure Western authorities of its dependability.

China's inaugural domestically-produced passenger plane, the C919, is currently operational in 10 leading cities throughout the nation, as local airline companies quickly integrate the new airplane into their fleets.

The airplane, viewed as a testament to China's accomplishments in technology and high-end production, reached a fresh high point on Thursday, having transported a sum of 1 million travelers since its first commercial journey in May 2023.

The swift deployment of the C919 will serve as a crucial examination of its capabilities, as it seeks to establish itself as a dependable choice against Boeing and Airbus' one-aisle models. The increased number of flights will present hurdles, ranging from implementation to upkeep.

"Increasing the number of flights across various cities not only serves as a genuine assessment for the jet, but it also enhances its visibility," stated Li Hanming, an aviation expert.

Eastern Airlines of China was the inaugural airline to utilize the new aircraft for its operations.

Under the Open Sky | Global community needs to hold strong against Trump's flood of tariff warnings

A lot hinges on Trump's effectiveness in luring leaders away from collective policymaking and the steadfastness of China in resisting the tempting appeal of two-party agreements.

Initially, Donald Trump was seen as a "funny diversion", but it might be more apt to compare him to chaff – a storm of metal, glass or plastic ejected by fighter pilots to mislead and deter enemy chasers. For nearly ten years, this strategy of diversion has been crucial for Trump, with his steady flow of quick tweets and comments during campaigns ensuring he stays in the headlines and keeps his opponents unsettled.

Since his electoral win, the surge of distractions has been both characteristic and successful in maintaining a lack of stability among global leaders and media, regardless of whether they're from the US or abroad, ensuring their attention remains fixated on his policy objectives.

It's uncertain if and how these tariffs will be implemented and predicting it is just not feasible. It's highly likely that even Trump himself doesn't have a clear understanding. Given the number of tariff supporters he's appointed to his close-knit team, it's quite probable that tariffs will play a key role in his trade strategy – although, that's not the main issue.

Trump has managed to command media attention months prior to his inauguration, inciting a wave of intense activity among prominent global trade economists who are likely fruitlessly estimating the effects of potential tariffs.

40 minutes and

Trump returns: what lies ahead for China, Asia, and the globe? | Conversation Column with Yonden Lhatoo

The sale of The Center skyscraper was a dramatic event in Hong Kong, but now the purchasers are having a hard time liquidating their investment. Have a peek into The Center, which held the title of the priciest skyscraper globally when it was astutely sold by the richest individual in the city.

However, the firm has not yet secured a purchaser for the 30th floor, say sources close to the situation, given that the city's office space market has been sluggish for some time.

The home construction company based in Shenzhen is looking to sell its property for HK$500 million (US$64.3 million), roughly HK$20,000 per square foot for a total area of 24,900 square feet. Back in 2019, Kaisa reportedly purchased the entire floor for HK$884 million, a price that is 43% more than the current asking price. The floor was originally bought from local entrepreneur Lo Man-Tuen and simultaneously, Kaisa also acquired the 38th floor for an alleged HK$1.08 billion from magnate David Chan Ping-chi, also famously known as the "King of Cassettes," due to his firm being one of the largest manufacturers of cassette tapes globally.

Only two years afterwards, Kaisa was forced to let go of the 38th floor for a mere HK$186.4 million, offloading it to the mainland investment company, Shandong Hi-Speed Financial Group, in order to clear an existing loan, as per the records of the Hong Kong exchange. Furthermore, in 2023, the company put the 30th floor up as collateral to Kingston Finance to obtain a loan, as the Land Registry records indicated.

Travel interest spikes in China due to the prolonged Lunar New Year break

Air travel and group excursions are being reserved several weeks in advance of the eight-day nationwide holiday that kicks off on January 28.

Anticipations are high for a significant increase in travel needs in China during the forthcoming Lunar New Year celebrations. This comes as good news for the nation which recently extended their public holiday by a day to stimulate demand.

Preliminary information from Chinese tourism businesses indicates that customers are preemptively looking for and reserving journeys far before the eight-day vacation period from January 28 to February 4.

eLong Inc., a top supplier of travel products in the country, announced on Monday that there will be a dramatic increase in air ticket prices, around 80 to 90 per cent, from January 23-27. This is the week leading up to the Lunar New Year and some popular flight paths could even see a hike of over 100 per cent in prices.

Tuniu, a leading travel company, announced on Monday that group travel reservations for the Spring Festival have increased by 40 per cent compared to the last week, as reported by The Paper, a media organization based in Shanghai.

The Beijing government declared last month that, beginning in 2025, the Spring Festival holiday would be extended by a day, making it an eight-day holiday. This initiative aims to boost consumer purchases, especially within the middle and lower-income demographics that have been reducing their spending to save funds.

Lin Huanjie, head of the Institute for Theme Park Studies in China, expressed that the notable passion for travel among consumers is expected to persist into the following year. He further projected that China's tourism industry could see a growth of more than 5 per cent in 2025.

Hong Kong shares close the week on a down note as investors seek triggers

Tencent goes up by 2.7 percent following the decision to launch a gifting feature on its WeChat app; semiconductor manufacturer SMIC surges by 8.2 percent.

On Friday, the Hang Seng Index experienced a 0.2 per cent drop, closing at 19,720.70. This marked its second consecutive day of decline and a 1.3 per cent decrease for the week.

The Hang Seng Tech Index saw an increase of 0.1 per cent. Meanwhile, in mainland China, the CSI 300 Index fell by 0.5 per cent and the Shanghai Composite Index also declined, dropping by 0.1 per cent.

The tech behemoth Tencent saw a 2.7 per cent increase in its stocks, reaching HK$426.40, after announcing its intentions to trial a feature on a WeChat-affiliated e-commerce platform that enables users to present gifts valued under 10,000 yuan (US$1,370). Semiconductor manufacturer SMIC experienced a significant 8.2 per cent jump to HK$28.30, while athletic apparel producer Anta Sports saw a modest increase of 1.8 per cent, pushing its stocks to HK$80.40.

"The downturn of the benchmark was primarily halted by Tencent," stated Kenny Ng, a strategist at Everbright Securities International. "Without their involvement, the market could have plummeted even more."

Laopu Gold surpasses Chow Tai Fook to become China's leading jeweler, experiencing a 437% increase in stock value. The distinctive luxury approach of the ancient Beijing-based jeweler is likened to that of Cartier and Tiffany.

In China's relatively bleak retail jewelry scene, any sparkle is likely to be courtesy of Laopu Gold.

The jeweler based in Beijing, also known as "old shop" in Chinese, is attracting customers as it surpasses Chow Tai Fook Jewellery Group, the market leader, and other domestic brands in terms of sales growth and stock performance. Its revenue has soared by 148% annually in the initial half of 2024 and is expected to more than double by the end of the year. Also, its shares have rocketed by 437% since its introduction on the Hong Kong stock market in June, thus becoming the top achiever on the Hang Seng Composite Index this year.

The stock's 14-day relative strength index has surpassed 80 on at least five occasions since it first entered the market. This is an uncommon score, usually suggesting superior performance. Generally, an RSI score of 70 or higher implies that the stock is over-purchased. Despite this, market analysts remain optimistic. Every one of the 14 analysts monitoring the company recommends purchasing the stock, according to data collected by Bloomberg.

Established a decade and a half ago, the firm has chosen to remain compact with only 33 outlets, primarily dealing in heritage gold jewelry with a Buddhist influence, which have set prices. This differs from the common practice among local brands of pricing items by weight. This unique approach has elevated Laopu's status as a luxury brand and led to comparisons with international brands like Richemont's Cartier and LVMH's Tiffany – an uncommon accomplishment for a Chinese brand.

Three twenty-two

The journey of Chow Tai Fook, transitioning from a goldsmith to a jewelry empire.

Laopu's "somewhat diminutive scale" is a benefit that enables it to prioritize superiority over abundance, according to Mark Tanner, the director of the consultancy firm China Skinny in Shanghai. He stated that the brand "occupies a niche" in the unexplored luxury market of Chinese-made goods.

A Laopu gold necklace, weighing 7.2 grams and adorned with a diamond-encrusted gold pendant, can be purchased for a price starting at 11,230 yuan (equivalent to US$1,540). This price is significantly higher than what it would be if it were sold simply based on the weight of the gold. The brand also attracts customers who are interested in beautifully crafted decorations that incorporate traditional Chinese features. The cost of these items can run into hundreds of thousands of yuan.

CK Hutchison's subsidiary, Wind Tre, is under investigation by Italian tax authorities for a €3.4 billion deal with Cellnex. It's believed the company managed to avoid paying taxes worth approximately €132 million for 2022 from the sale of mobile phone towers, as stated in a document.

An investigation has been launched into CK Hutchison Holdings' Italian telecom division, alleging that it avoided paying taxes on a $3.6 billion asset sale to Cellnex Telecom.

A probe by Italy's financial law enforcement is looking into the possibility that Wind Tre, Italy's third largest telecommunications firm, might have evaded paying registration taxes during the sale of multiple thousands of mobile phone towers to Cellnex, a company based in Barcelona, as per a document reviewed by Bloomberg.

The document indicates that the supposed tax evasion could total roughly €132 million for the year 2022.

Executives from Wind Tre are accused of employing a complicated asset-sale mechanism, utilizing a Luxembourg-based entity known as CK Hutchison Europe Investments, in an effort to decrease the company's tax obligations in Italy.

The sale of the tower subsequently utilized "an excessive minimization of the total tax liability in terms of registration and income tax," the financial law enforcement stated in the document.