Cathay Pacific suggests Hong Kong take note of EU's mistakes regarding sustainable aviation fuel

The city needs to carefully establish usage objectives and give airlines confidence in the advantages of carbon reduction, according to speakers at a forum.

Speakers at a sustainable aviation forum expressed that Hong Kong should have adequate sustainable aviation fuel (SAF) in the area to satisfy its immediate requirements. However, they emphasized the necessity for the government to cautiously establish usage objectives and regulate infrastructure facilities.

The city, having pledged to establish a goal for the use of Sustainable Aviation Fuel (SAF) for flights leaving Hong Kong's airport within the current year, can gain insights from other markets that have already put similar requirements into practice, according to specialists at a city event held on Friday. As of January 1, fuel suppliers in both the European Union and the UK were ordered to provide fuel comprising at least 2 per cent SAF.

Grace Cheung, the head of sustainability at Cathay Pacific Airways, Hong Kong's leading airline, has indicated that alleged overcharging by major fuel providers at certain European airports is a significant issue that airlines have pointed out.

"Our collective observation of this requirement is that the suppliers have simply shifted the expense of the SAF mandate onto the airlines, who are somewhat trapped," she explained. "The jet-fuel market in many European countries is controlled by a handful of companies. They lack the open and competitive fuel-supply system we enjoy in Hong Kong. We have begun to notice some instances of price exploitation."

Moreover, she pointed out that the European guidelines did not clearly outline the methods for ensuring the quality of sustainable aviation fuel's (SAF) carbon-reduction advantages.

"An extensive amount of documentation is involved in the SAF supply chain, yet it's unclear how this is managed in Europe," Cheung noted. "This results in airlines bearing the costs, but the eco-friendly advantages are not relayed to us by the guaranteeing bodies."

In Hong Kong, the energy infrastructure, including pipelines, is managed in a way that allows all providers to utilize it, provided they contribute towards the costs, according to Peter Lee, the head of sustainability at Airport Authority Hong Kong. He further clarified that the operator doesn't impose extra charges on carriers beyond the permitted profit for managing the facilities.

Navigating the American Dream: The challenges and traps for Chinese businesses expanding internationally

With a decline in local consumer spending, Chinese companies are looking towards international markets. However, trade taxes and cultural differences could pose significant obstacles.

In 2005, Leo Li Minguang, a 32-year-old finance officer at a construction company, visited a Zara store in Japan for the first time and was completely captivated. The store was filled with bright lights, pulsating dance music, and stands filled with vibrant women's clothing. The ambience was akin to a fashion runway, a stark contrast to the dull department stores he had previously frequented.

"I recognized a potential commercial venture and inquired about the franchising cost," he expressed. "They informed me that it wasn't a possibility."

Urban Revivo isn't the only company with global ambitions. Many Chinese corporations are turning their gaze overseas due to declining local consumption and a persistent real estate crisis. According to official statistics, China's non-financial foreign direct investment (FDI) surged by 10.5 per cent in 2024 from the previous year, amounting to over US$143.9 billion. China has held the position of the world's third-biggest global investor for over ten years, lagging only behind the US and Japan.

Mark Zuckerberg, CEO of Meta Platforms, has announced plans to allocate $65 billion towards AI infrastructure in 2025. He indicated that the investment would be used to construct a data center of such size, it could span a notable portion of Manhattan.

"This is an extensive endeavor, and in the subsequent years, it will propel our fundamental products and commerce, unleash unprecedented innovation, and enhance the dominance of American technology," Zuckerberg penned in the post.

Zuckerberg stated that Meta plans on considerably expanding their AI teams in 2025.

Smartphones with TikTok installed are being listed for sale in the US on eBay and Facebook for thousands of dollars. As of Friday, the prices on eBay ranged from as high as $50,000 to as low as $340.

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TikTok has resumed operations as Donald Trump promises an executive order to momentarily prevent a ban.

New World declares it's 'business as usual' as the developer denies default risk rumours

The troubled company indicates that residential sales in Hong Kong are showing a steady rise, while sales in mainland China are progressing as expected.

Sales of homes in Hong Kong are steadily increasing, and the firm will persist in promoting its varied ventures in the mainland market, as per the company's announcement.

The team's leadership follows a business strategy based on caution and practicality, fortifying its market-driven approach and improving project profit margins, as per the announcement. The firm has met over 70% of its yearly sales goal for the mainland China market in the six-month period prior to December, the statement additionally mentioned.

Following Bloomberg's earlier reports on Thursday, it was stated that PJT Partners, a firm advising on debt issues, had discussions with a number of the troubled developer's creditors. The talks revolved around the potential that the ongoing debt discussions could result in a default.

Particularly, some bankruptcy provisions in NWD's dollar bonds could possibly be activated after the company started talks with creditors, as per the report.

Experts suggest that Hong Kong has the potential to evolve into a hub for multicurrency bonds with the backing of Beijing. Numerous public institutions in Hong Kong have observed a growing appeal for multicurrency bonds as a means to draw in more global investors, according to UBS.

John Lee Chen-kwok, vice-chairman and co-head of Asia coverage at UBS in Hong Kong, stated that recent strategies implemented by the PBOC, combined with the Hong Kong government's marketing initiatives over the past few years, aim to elevate Hong Kong as a center for bond issuance in various currencies.

Numerous public entities in Hong Kong have noticed a growing fascination for multicurrency bonds among investors keen on diversifying their investments across various currencies.

In 2017, the Bond Connect program was launched to promote the expansion of the bond market in mainland China and Hong Kong. This program enabled international investors to purchase and trade debt that was issued on the mainland. In 2021, the program expanded to include a southbound route, which gave mainland Chinese investors the opportunity to invest in bonds issued in Hong Kong.

Pan made public further improvements to the southbound channel on January 13. Mainland investors are now permitted to purchase bonds valued in US dollars and euros through the connect programme. Additionally, Beijing is set to authorize mainland-based insurance and securities companies to deal in Hong Kong's bond market, a privilege currently limited to banks.

Analysts predict a tumultuous period for Hong Kong residents' MPF investments during the Year of the Snake. They indicate that the impressive yields during the Year of the Dragon may be challenging to replicate, with the US-China trade ties being an unpredictable element.

Philip Tso, who leads institutional business for Allianz Global Investors in the Asia-Pacific region, explained that the snake in the Chinese zodiac represents wisdom, tactical thought, and the capacity to stay calm under pressure. He predicts that under Trump's 'America first' policy and his suggested tariffs, turbulence and global political conflicts will become the primary focus.

The Snake Year is the sixth in the cycle of 12 animal-based years of the Chinese lunar calendar, with each year symbolized by a creature and its alleged characteristics.

From January 21, the 379 MPF investment funds saw an increase of 12.3 per cent in the Dragon lunar year, which started on February 10 the previous year, as reported by MPF ratings, a self-governing research company specializing in pensions. This is set to be the sixth highest lunar-year return since the inauguration of the city's pension plan in December 2000.

According to MPF Ratings, MPF participants experienced a 4.5% loss in the Year of the Rabbit and a 7.8% decrease in the Year of the Tiger over the last two years.

The founder of Nongfu Spring, Zhong Shanshan, has vowed to cease the price war following a year filled with online criticism. He claims that cheap prices are damaging the standard of Chinese goods and negatively affecting the economy.

The relentless chase for cheaper prices, particularly fuelled by online competition, is compromising the quality of Chinese goods and destabilizing China's economy, as stated by the billionaire at a corporate gathering on Thursday. He further mentioned that only those lacking in skill resort to price battles. If one has solid proficiency, superior abilities and genuine innovation, engaging in price wars is not needed.

Although Nongfu expressed its dislike for price competitions, it launched a low-cost bottled water product in April, costing less than 2 yuan (US$0.27), as part of its strategy to recapture its market share.

Zhong confessed in November that the choice to introduce the low-cost item was an impulsive decision. He further stated that the product doesn't hold much value and isn't appropriate for extended use.

Stocks in Hong Kong surge due to Trump's positive outlook on China and a surge on Wall Street

The Hang Seng Index concludes positively for a consecutive week, with Sunny Optical, Xiaomi and Trip.com taking the lead.

The Hang Seng Index saw a 1.9 per cent rise to 20,066.19 this past Friday, marking a second consecutive week of growth with a 1.3 per cent increase over the five-day span. The Hang Seng Tech Index also experienced a significant surge of 3.2 per cent. In mainland China, the CSI 300 Index grew by 0.8 per cent, and the Shanghai Composite Index also saw a slight uptick of 0.7 per cent.

Sunny Optical, a supplier for Apple, was at the forefront with an increase of 8 per cent, reaching HK$73.00. Smartphone manufacturer, Xiaomi, saw a leap of 6.8 per cent to HK$36.85, while travel service provider, Trip.com, moved up 5.3 per cent to HK$541.00.

"Ever since Donald Trump took office, his remarks have caused a fluctuating trend in the Hong Kong market," stated Louis Wong, the managing director at Phillip Capital Management.

Wong stated that Trump's remarks about wanting the Federal Reserve to lower interest rates could benefit Hong Kong's stock market. However, his statements about imposing tariffs on China might cause instability.

The prediction from American semiconductor manufacturer, Texas Instruments, indicates that the semiconductor industry's downturn is continuing. The firm has experienced a consistent decrease in sales over the last nine consecutive quarters, reflecting the ongoing sluggishness prevalent across the electronics sector.

The company announced on Thursday that earnings for the first quarter are expected to be between 94 cents and $1.16 per share. The average predicted by analysts was $1.17 per share, making the company's midpoint estimate of $1.05 per share considerably lower. Revenue is anticipated to fall between $3.74 billion and $4.06 billion, a range that includes the projected estimate of $3.86 billion.

A significant portion of the electronics sector continues to struggle, leading to a continuous decrease in sales for the company over nine consecutive quarters. Texas Instruments leaders also indicated that manufacturing costs have impacted the company's profits.

The company, which is based in Dallas, generates a significant amount of its revenue from industrial equipment and vehicle manufacturers. This makes its forecasts a reliable indicator for the overall global economy.

A quarter of a year earlier, executives from Texas Instruments indicated that certain sectors of the company's market were displaying signs of recovering from an excess supply issue. However, this recovery has not occurred as swiftly as some investors had hoped.

The firm's stocks declined roughly 3 per cent following the announcement in post-market trading. Prior to the close of usual trading hours, the stock had seen an increase of approximately 7 per cent this year.

Tianqi Lithium forewarns a loss of US$1 billion due to a decrease in price and cessation of growth in Australia. The company's reduced earnings at its Chilean branch, foreign exchange losses, and asset depreciations were significant factors in the unfavorable outcomes in 2024.

The business, headquartered in Chengdu, Sichuan province, informed the Hong Kong stock exchange via a document on Friday that it anticipates a net deficit of between 7.1 billion yuan (US$978.3 billion) and 8.2 billion yuan for the previous year. This is a significant change from 2023, when the company reported a profit of 7.29 billion yuan.

Shares of Tianqi experienced a drop of up to 3.5 per cent, but they managed to recover and actually ended with a gain of 1.3 per cent, closing at HK$23.20. Meanwhile, the Hang Seng Index saw an increase of 1.9 per cent.

"Despite the company's lithium compounds witnessing an increase in production and sales, the overall price faced a substantial decline due to market fluctuations," stated Tianqi.

Tianqi stated that a significant decrease in earnings from its foreign subsidiary, Sociedad Quimica y Minera de Chile, adverse currency exchange losses due to the robustness of the US dollar, and substantial asset devaluations primarily due to the cessation of a project's growth in Australia, all played a role in the yearly loss.

Shanghai releases additional spending coupons following unexpected drop in retail purchases

In 2024, the significant economic center in China experienced a downturn in retail sales, marking only the second occurrence in four decades.

Shanghai has declared its intention to release a new set of consumer coupons, in an effort to counteract a decline in consumer expenditure in the major Chinese city.

On Thursday, the metropolis housing 25 million residents revealed a 3.1 per cent drop in retail sales for 2024. This is only the second instance of a decrease in consumer spending in over four decades.

Shanghai's retail sales experienced a decrease, falling to 1.79 trillion yuan (equivalent to US$246 billion) in the previous year. This significant drop was largely caused by a steep decline in the sales of common household items and food services, as per the data disclosed by the Shanghai Statistics Bureau.

Shanghai has only seen a yearly drop in retail sales once before since 1978, and that was in 2022. This decrease, a significant 9.1 per cent, happened due to the city experiencing a two-month lockdown because of Covid, as per information from Wind.

The findings indicate a persistent absence of trust among consumers during a time of economic instability in China, as families concentrate on reducing their spending and increasing their savings.

The rate of household savings in China soared to 55% in the previous year, marking an 11.2 percentage point rise from 2023 and the highest rate seen since 1952, according to a Monday report from Chinese news source, Caixin.