HSBC introduces HyQ, a 25-level office skyscraper in Qianhai aimed at fostering international cooperation. The bank believes there is considerable opportunity for business and trade partnership between Guangdong and Hong Kong.

The structure serves as the headquarters for HSBC China's Shenzhen division, HSBC Qianhai Securities, and HSBC Software Development Guangdong, which is a financial technology hub. According to the bank, this tower will act as a critical hub to accelerate business expansion in the Greater Bay Area. This area, encompassing various cities in the southern mainland, including Hong Kong and Macau, is expected by Beijing to emerge as a globally competitive economic region by 2035.

HSBC sees great opportunities for economic and trade partnerships between Guangdong and Hong Kong as more top-tier Chinese firms shift towards global innovation and growth, stated Peter Wong Tung-shun, HSBC's Chairman for the Asia-Pacific region, during Wednesday's inaugural event.

"Similar to this towering structure, we too possess extensive aspirations and eagerly anticipate enhancing collaboration with additional partners. Our aim is to significantly contribute to the growth of the Greater Bay Area as well as the reciprocal advancement of both the Chinese and global economies."

The Qianhai structure is set to accommodate facilities for securities and funding services, wealth administration, along with private and business banking. In addition, administrative support will be available on the premises.

In the previous week, officials from both Hong Kong and mainland China announced several steps to bolster and improve cross-border links. These involve a trade-finance facility worth 100 billion yuan and enhancements to the Bond Connect program. Furthermore, they mentioned, it will shortly be more straightforward for residents of Hong Kong to open bank accounts on the mainland without being physically present there.

ByteDance's Doubao 1.5 gives a new look to China's leading AI app

In certain benchmark tests, this proprietary model outperformed top models from OpenAI, Anthropic, and Alibaba.

On Wednesday, the company headquartered in Beijing unveiled its proprietary multimodal model, Doubao 1.5 Pro, highlighting a "resource-efficient" training method which they claim doesn't compromise on performance.

ByteDance shared in a statement that the model has implemented a unified approach from the initial training phase to maintain a balance between superior performance and the most efficient inferencing cost. They also mentioned having created a server cluster that possesses adaptable support for lower-end chips, a strategy aimed at reducing the expenses related to AI infrastructure.

Major technology companies in China are making efforts to match the level of their American peers, despite facing financial limitations and restricted access to high-end chips. These challenges have urged them to enhance the efficiency of their AI models and improve their products within the nation's isolated market.

Performance assessments indicate that Doubao 1.5 Pro has outperformed in seven out of 14 evaluations. These evaluations were designed to test the model's understanding of language, mathematical and programming capabilities, specialized knowledge, visual comprehension, and logical reasoning skills.

Tencent intensifies its international AI initiatives by introducing its sophisticated Hunyuan 3D-generation system. The Hunyuan3D 2.0, an open-source system, is anticipated to reduce the difficulties of implementing AI models in various sectors including video games, social networking, and more.

The sophisticated setup comprises two fundamental elements: a form-creation module known as Hunyuan3D-DiT and a texture-creation model, Hunyuan3D-Paint.

Tencent has launched Hunyuan3D Studio, which they have claimed to be "the first comprehensive platform in the industry" designed to streamline the creation of 3D content through the use of AI. It is accessible for both expert and novice users to modify or even bring their creations to life.

The latest 3D-generation model and AI production platform are anticipated to "significantly reduce the obstacles for fans, developers, and creators", stated Guo Chunchao, leader of Tencent's Hunyuan3D team.

In addition to enhancing productivity, these items will "facilitate the appreciation of 3D AI models in different sectors," Guo further explained.

China allocates resources to steady the stock market in response to potential tariff threats from Trump. Regulators reveal that they will augment investments from the National Social Security Fund, mutual funds, and other sources to invigorate the stock market.

Chinese authorities have revealed a strategy to guide investment funds in order to stabilize the country's stock markets, amidst escalating disagreements with the US in the wake of President Donald Trump's warning of potential tariffs.

China plans to channel medium- to long-term funds, such as commercial insurance funds, the National Social Security Fund, and mutual funds, to intensify their involvement in the stock market. This was announced in a collective statement on Wednesday by several government departments, including the China Securities Regulatory Commission, the Ministry of Finance, the People's Bank of China, and the National Financial Regulatory Administration.

The percentage of the funds' assets invested in the stock market will be progressively raised, while a permanent mechanism will be established to monitor these investments, according to the statement.

The strategy to "steady the stock market by eliminating hurdles for medium- and long-term funds to infiltrate the market" was a subsequent step to a number of policies launched the previous year aimed at enhancing the Chinese economy and its slow-moving stock market, according to the statement.

The strategy emerges as China attempts to steer through the unpredictability of Trump's second tenure. On Tuesday, Trump mentioned that he was mulling over a 10 per cent levy on Chinese exports starting February 1, as punishment for the influx of fentanyl, which is accountable for thousands of fatalities in the US each year.

In the initial week of 2025, Chinese shares experienced a downturn, marking their poorest commencement to a year since 2016. The indexes in Shanghai and Hong Kong saw significant declines on Wednesday due to a proposed tariff and an investment strategy aimed at outperforming China in the field of artificial intelligence.

Legal action is being taken against Ou Zongrong, the founder of Chinese developer Zhenro, due to alleged unlawful activities. Following the expiration of a restructuring support agreement, Ou Zongrong has been subjected to mandatory legal procedures, as stated by the holding company.

The creator of Zhenro Properties Group, a developer based in Shanghai, has been subjected to mandatory legal actions. This comes as the heavily indebted home construction companies persist in battling the ongoing real estate market crisis in the country.

The real person in control at Zhenro, Ou Zongrong, is confronting obligatory legal measures "because of alleged unlawful activities," the development firm's parent company declared on Monday. The company highlighted that "Ou presently does not occupy any roles like director, monitor, or upper-level executive at the company."

The news broke merely a few days following Ou Guowei, Ou Zongrong's son, stepping down from his roles as a non-executive director and audit committee member of the developer's firm. Prior to this, on January 2, the developer revealed that a restructuring support agreement had lapsed after its definitive deadline had passed on the last day of December.

My Perspective | The $3.2 trillion query from Beijing: What portion of China's foreign exchange reserves are channeled to Hong Kong?

The commitment from the central bank to boost its reserve of Hong Kong dollars underscores its dedication to maintaining the city's prominence as a financial hub.

The head of China's central bank, Pan Gongsheng, has vowed to allocate a larger portion of the nation's $3.2 trillion foreign exchange reserves to Hong Kong. This has sparked conjecture regarding how much additional funding Beijing can designate for the city's assets.

Beijing has consistently kept the specifics of its foreign exchange reserve portfolio confidential, leaving the exact quantity of reserve funds designated for Hong Kong markets a mystery. Pan, the former head of the State Administration of Foreign Exchange (Safe) until November 2023, indicated that Beijing would substantially boost the proportion of Hong Kong assets, but did not provide specific details.

Since 2018, Safe has been providing a restricted view into the makeup of China's foreign exchange reserves through its yearly reports. This began when they started revealing the percentage of assets held in US dollars with a delay of four years. In their report from 2023, which was published in October, Safe revealed the proportion of US dollar assets for the year 2019.

The officially released figures from 2014 to 2019 show that the proportion of US dollar assets in China's foreign exchange reserves remained between 55% and 59% during this period. In 2019, the percentage of US dollar assets dropped to 55%, with the balance made up of "other currencies". The specific breakdown of these other currencies was not provided by Safe. However, they had previously revealed that China's reserves not in US dollars comprised of euros, sterling, yen, won, and a minor percentage of Hong Kong dollars.

China is expected to retain approximately 50% of its holdings in US dollars for the sake of "security". After all, dollar-based assets, such as US treasuries, continue to be among the most readily available and reliable asset categories for Beijing.

Safe has been assessing the proportion of the dollar in China's foreign currency reserves compared to the worldwide average. The organization stated that China's reserves were already "more varied" than the international level of 61 per cent in 2019, implying that the country is not in a position to significantly reduce its US dollar holdings.

Consumer confidence in China is nearing a 'critical juncture' where it could skyrocket following a series of stimulus measures, according to UBS. The Swiss bank has suggested that homegrown brands and private labels are likely to profit as Chinese households decrease their savings and increase their spending.

The consumer sector in China, which has been negatively affected by a prolonged property downturn that has stunted economic growth and lowered morale, may be approaching a critical juncture. This comes as consumers start to save less and increase their spending in response to the stimulus package introduced last September, according to analysts.

The rate of growth in surplus savings of households slowed down in 2024 and saw a decrease in the third quarter, while there was a 3 to 4 percent yearly rise in societal retail sales, as per a report by UBS revealed on Monday. The Swiss bank credited this turnaround to the lessening impact of the Covid-19 pandemic, along with favorable government measures.

Local brands are poised to gain advantages, and private brands could potentially become the main factor for this year's growth due to their limited market presence. However, what's more significant is that they could profit from a possible shift away from the "downtrading" trend observed in the previous year.

UBS suggests that due to enhancements in quality and accessibility of channels, customers might not view local brands or private labels as 'cheap alternatives' to internationally-branded products. Instead, they are increasingly selecting local brands or private labels, guided by a practical mindset.

An independent study released by the bank in October discovered that almost half of the participants transitioned to local brands and private labels within the past year, attributing this change to "greater worth for their money". This tendency was particularly prevalent among consumers in major and mid-sized cities.

Investor hopes for a rebound in consumption continue to be muted due to the possibility of increased US tariffs and ongoing strain on real estate prices. The Monday report forecasts that China's total real consumption growth will likely hover about 3.8 per cent in the period of 2025-2026.

Industry professionals believe that tourism and student accommodation will boost the value of hotel properties in Hong Kong. They predict a prosperous year for hotel owners, as they anticipate a surge in tourism and the opportunity for proprietors to sell their assets at higher prices.

The hotel sector in Hong Kong has experienced significant transactions totaling HK$7.85 billion within the last two years, not only in 2024, as reported by Colliers. An altered statement from a high-ranking official at Colliers reads: "Even with difficulties, the hotel industry is set for a hopeful year in the future."

The number of tourists, which surged by 33% to 44.5 million in 2024, is expected to maintain its pace due to government initiatives aimed at enhancing its economic impact. Additionally, the city is grappling with a lack of student housing, which is driving the need for transforming hotels into student lodgings.

The hotel and tourism industry is projected to increase its contribution to the city's economy from 2.6% in 2023 to 5% by 2029, mirroring its importance last observed in 2018. According to a strategic plan revealed in December, Hong Kong aims to stimulate the economy with a HK$120 billion (US$15.4 billion) injection, creating 65,000 new employment opportunities within the coming five years.

"Even with obstacles, the hotel industry is set up for a hopeful year ahead," stated Shaman Chellaram, the leading director for Asia in valuation and advisory services at Colliers. He further added, "We also anticipate an increase in occupancy rates," considering the forthcoming events such as the Lunar New Year fireworks, the Rugby Sevens competition in March, and the Coldplay concert in April.

The planned 23-floor hotel is set to feature eight suites and 91 rooms, in addition to a commercial hub, boasting approximately 138,000 square feet of space for retail stores, eateries, and event spaces. This information was disclosed in a recent submission by Miramar to the Hong Kong stock exchange.

Trump authorizes executive order postponing TikTok prohibition, warns of imposing duties

Trump lengthens the deadline by 75 days, cautioning China with potential tariffs if Beijing fails to sanction a deal related to the brief-video application.

"Whether or not I proceed with the agreement is undecided. TikTok has no value whatsoever. If I don't give it the green light, it needs to shut down. I gathered this information from the proprietors," Trump stated on Monday.

"On TikTok, I possess the authority to either auction it off or shut it down, and we'll arrive at that decision… We might also need endorsement from China, I'm not certain, but I'm confident they'll give it the green light," he further stated.

Trump hinted that if there was an opportunity to strike a beneficial agreement with TikTok and China disapproved, he believes they would eventually give their consent due to the threat of imposing tariffs on China.

"Perhaps, I'm not confirming that I'd do it, but it's definitely a possibility. If we were to declare that 'it won't get approved', that could be perceived as a definite aggression. In response, we might impose tariffs ranging from 25, 30, 40, 50 per cent, or even up to 100 per cent."

Shares in Hong Kong surge despite Trump's tariff threat to China over the TikTok agreement. The US president postpones TikTok's prohibition for 75 days and issues a tariff warning to China should Beijing reject a deal related to the brief-video application.

The Hang Seng Index saw an increase of 0.9 per cent, closing at 20,106.55 on Tuesday, and the Hang Seng Tech Index experienced a rise of 2.1 per cent. In mainland China, the CSI 300 Index had a marginal growth of 0.1 per cent, while the Shanghai Composite Index experienced a slight decline of 0.1 per cent.

The largest chip manufacturer in China, Semiconductor Manufacturing International Corporation, experienced a 6.4 per cent increase in its share price, reaching HK$41.90. Similarly, Sunny Optical, a producer of iPhone camera lenses, saw its shares rise by 7.3 per cent to HK$70.20. Additionally, car makers Li Auto and Geely Auto saw their share prices increase by 5.3 per cent to HK$94.10 and 3.1 per cent to HK$14.74 respectively.

The Hang Seng Index has been performing admirably in recent days, largely due to last week's encouraging economic figures from China and hopes for better US-China ties, says Kenny Wen, who leads the investment strategy at KGI Asia.

"He noted that the positive aspect is also due to the postponement of immediate tariffs on China," he said, suggesting that potential increases might be restricted in the lead-up to the Lunar New Year holiday next week.

Nvidia's CEO whirls through Taiwan: from Lunar New Year celebrations to night market trips

Jensen Huang engaged with leading figures in the industry, such as TSMC's originator Morris Chang and Foxconn's chairman Liu Young-way.

Huang held a notable lunch event in Taipei on Sunday, which saw the participation of 36 senior leaders from Taiwan's premier tech firms.

At the meal, Huang humorously commented on the group picture snapped post-lunch, in which he, along with a few others, were crouching in the front row. He playfully remarked, "The front row works out. The back row doesn't," which elicited chuckles from those present.

Huang underscored the vital role that supply chain partners play in Nvidia's tech advancements. He pointed out that 45 global factories are currently running round the clock to manufacture supercomputers equipped with Nvidia's Grace and Blackwell chips.

The bond clearance systems of Hong Kong and Macau have been interconnected to establish a more substantial market for raising funds. On the first day of this connection, four new bond issues totaling 3.2 billion patacas (US$401 million) were settled, along with 18 transactions in the secondary market.

On the initial day, Benjamin Chan, the chairman of the Monetary Authority of Macao (AMCM), announced that four fresh bond issues in Macau, valued at 3.2 billion patacas (equivalent to US$401 million), were cleared through Hong Kong's CMU. Additionally, 18 secondary-market dealings were carried out by investors from both Hong Kong and Macau.

"The inaugural day of linking the two clearing houses was a success," he stated during an event at the World Trade Centre in Macau. "We anticipate a rise in the involvement of institutional investors in the Macau debt markets following this association."

The link will establish an international investment and funding route, allowing investors from both markets to engage in each other's bond market more conveniently and effectively, according to the HKMA.

The immediate connection demonstrates Hong Kong's position as a "central hub" and signifies a significant progression in transforming the CMU into a global CSD in Asia, a statement from HKMA's CEO Eddie Yue Wai-man highlighted.