Banking professionals in Hong Kong are forming a task force to expand business connections in developing markets. The task force intends to host promotional events and keep industry stakeholders informed about new regulations and policies in Hong Kong, according to the association.

The Hong Kong Association of Banks (HKAB) is intending to establish a task force within this quarter. The goal is to devise strategies that will appeal to more customers from emerging markets to their financial center, thereby reinforcing the city's position as an offshore yuan hub.

The chairwoman, Mary Huen Wai-yi, announced in a press conference that the association intends to reach out to industry groups and other interested parties, particularly those in Southeast Asia and the Middle East. The goal is to assist them in establishing or expanding their market footprint in Hong Kong.

"The task force will conduct promotional events and brief industry stakeholders on fresh policies and regulatory actions in Hong Kong, as a method to attract new clients," she revealed. The plan is to "advertise Hong Kong as a hub for trade deals, family businesses, and wealth management," she further explained.

Members of the HKAB have collaborated with the government and market overseers in numerous commercial and business ventures across various Southeast Asian and Middle Eastern markets in the past few years, according to Huen. These ventures were initiated by Chief Executive John Lee Ka-chiu as a strategy to explore new markets and decrease the city's vulnerability to geopolitical uncertainties in the wake of trade conflicts between the US and China.

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Paul Chan invites businesses from the Middle East to come to Hong Kong in 2023 to investigate potential listing prospects.

A working group focused on developing markets will be formed as Beijing aims to strengthen the interconnectedness of financial markets and bolster Hong Kong's status as the leading offshore yuan center. This will be accomplished through a new liquidity facility worth 100 billion yuan (equivalent to US$13.6 billion/HK$106 billion) to stimulate trade settled in yuan.

Could increased tuition costs, fresh taxation policies, and a decrease in rental income growth discourage Hongkongers from investing in UK real estate?

Rising schooling costs, a recently introduced tax system, and a deceleration in the growth of rental rates might deter Hongkongers from purchasing properties in the UK.

Data from 2024 revealed that approximately 190,000 real estate properties in England and Wales were foreign-owned, marking a 2.6 per cent increase from the previous year.

Skipton has recently launched a five-year mortgage plan with a fixed interest rate starting from 4.99 percent. Additionally, they have rolled out a novel three-year loan scheme that begins with a fixed interest rate of 5.89 percent.

However, the latest happenings in the UK could potentially decrease interest.

Billions are being traded in Trump's digital currency meme coin, even as Bitcoin sees a decline. Key trading platforms such as Coinbase and Binance have announced plans to include Trump's currency on their sites. In the meantime, Melania has also launched a coin.

The token, which is traded as "Trump" on the Solana blockchain, saw its market value skyrocket to $15 billion over the weekend, according to CoinMarketCap data. This surge followed the Republican's promotion of the token on his social media platforms last Friday.

The market value of the digital asset dipped under $10 billion in New York on Sunday, following the introduction of a coin by Trump's spouse, Melania. This move attracted investors looking to profit from the swift changes in speculative demand for memes.

In the meantime, the broader cryptocurrency market faced challenges over the weekend, with a decline in the value of the biggest digital coin, bitcoin, and a more significant fall for the runner-up, ether. Contrarily, SOL, the cryptocurrency linked with the Solana blockchain that hosts the Trump meme coins, defied the trend and saw a surge.

The volume of investment going into the Trump token has outpaced most other cryptocurrencies, with the exception of SOL and a few associated assets, according to Richard Galvin, a Sydney-based co-founder of the hedge fund DACM.

Hong Kong shares surge following encouraging discussions between Trump and Xi

Leading tech firms JD.com, Alibaba, and Baidu spearhead the winners, as investors express relief over potential easing of US-China tensions.

Shares in Hong Kong surged due to hopeful sentiments regarding US-China ties, after an encouraging conversation between Chinese President Xi Jinping and US President-elect Donald Trump.

On Monday, the Hang Seng Index ended the day with a 1.8 per cent increase, settling at 19,925.81, after experiencing a 2.6 per cent surge during the day. In mainland China, the CSI 300 Index experienced a 0.5 per cent growth, and the Shanghai Composite Index also saw a slight increase.

Technology shares experienced a significant rise, with the Hang Seng Tech Index increasing by 2.6 per cent. Standing at the forefront was the e-commerce titan JD.com, which saw a striking 7.3 per cent surge to HK$157.40. Concurrently, its counterpart Alibaba Group Holding climbed 4.7 per cent to HK$84.55, and the technology behemoth Baidu made a 2.7 per cent gain to HK$80.80.

Significant increases were also seen in the pharmaceutical firm, WuXi AppTec, which jumped 7.2 per cent to HK$55.65, whilst food delivery service, Meituan, rose 5.2 per cent to HK$155.50. Athletic company Anta Sports experienced a growth of 3.8 per cent to HK$81.05, and the electric car manufacturer BYD saw a rise of 4.3 per cent to HK$275.00.

During their Friday phone conversation, Xi and Trump discussed several key topics including the Ukraine crisis, the dispute between Israel and Palestine, and the US Supreme Court's ban on TikTok. Following Trump's intention to momentarily halt a countrywide prohibition on the short-video application, TikTok was operational again in the US by Sunday. This came after the app had been previously shut down to adhere to a federal law intended to compel it to cut off its connection with its Chinese parent company, ByteDance.

Dayao, a Chinese company that produces soda, intends to go public in Hong Kong with the aim of raising as much as US$500 million. The firm, based in Inner Mongolia and known for its carbonated drinks, juices and protein beverages, is currently collaborating with consultants to determine the scale and schedule of the transaction.

Chinese soft drink manufacturer, Dayao, is preparing for an Initial Public Offering (IPO) in Hong Kong, possibly as soon as the latter half of this year, according to those with knowledge of the situation. This is a reflection of the city's growing resurgence in new stock market entries.

The firm, located in the autonomous region of Inner Mongolia in China, is collaborating with consultants in an attempt to secure up to US$500 million, according to sources who requested anonymity because they were not permitted to make public comments. Discussions are still in progress, and the details and schedule of the potential deal may vary, the sources indicated.

Dayao didn't reply to an inquiry for a statement.

Established in the 1980s, Dayao produces a variety of products including fizzy drinks, juices, and protein beverages. According to their website, they have seven key manufacturing facilities, some of which are in China. Dayao also ships its products to various markets such as Russia and Southeast Asia.

Business negotiators anticipate an improved year for Initial Public Offerings (IPOs) in Hong Kong, primarily due to the secondary listings of firms that are already trading shares in China.

In 2024, companies listed in Hong Kong, inclusive of firms listed in China, generated over US$11 billion, almost twice the amount raised in the previous year, as per figures gathered by Bloomberg. In the decade leading up to 2020, before the Covid-19 pandemic struck, the average IPO amounts were close to US$30 billion.

Steel producers in China are preparing for further reductions in production as demand decreases. The Chinese research company, Mysteel, predicts that production will drop to under 900 million tons by 2030, a significant decrease from over 1 billion tons in 2024.

China continues to overproduce steel, leading the sector towards further hardships as internal demand decreases and loss-making mills approach a critical juncture.

Production slightly dipped in 2024, but it still maintained over 1 billion tons for the fifth year in a row. More significant reductions will be required to match the flailing demand, which is due to the prolonged turbulence in China's real estate sector and the ongoing transformation of its economic structure.

Years of growth fueled by building projects and public investment have come to a halt, with emerging sectors in the industry falling short of taking over these roles. The government is now turning its attention towards more sustainable, advanced technology growth and consumerism, thereby reducing the significance of steel in the economic landscape.

"The situation is far from improved," stated John Chen, the regional commodities sales director of Standard Chartered in Singapore. "Nearly every steel mill is suffering significant losses."

Mysteel, a research company based in China, predicts that production will decline to under 900 million tons by 2030. Bloomberg Intelligence's base case forecast indicates that Chinese steel usage, which exceeded 1 billion tons in 2020, might drop to less than 800 million tons by 2030. The worst-case scenario could see a dramatic decrease to 525 million tons.

Such forecasts have sparked a push to merge businesses within the industry, a trend that could intensify this year as factories grapple with sustaining cash flow and profit margins. The industry has been in the red for the majority of the year, with its cumulative debt soaring to an unprecedented 5.1 trillion yuan (US$696 billion) by November, as per the data from the statistics bureau.

An unprecedented number of Chinese and international businesses, marking a 41% increase, have established their presence in Hong Kong, making significant investments, according to InvestHK. Last year saw a surge in companies initiating their operations in the city, leading to a record-breaking number of registrations for companies outside of Hong Kong.

InvestHK reports that Hong Kong saw a 41% increase in the number of overseas and mainland companies setting up there last year, bringing in a record-breaking investment of HK$67.7 billion (US$8.7 billion). This surge can be attributed to various incentives aimed at rejuvenating the economy.

The investment promotion agency reported on Monday that a total of 539 domestic and international companies have established their operations in the city, a rise from 382 in 2023. Over half of these new companies originated from mainland China, with others hailing from the US, France, the UK, and Singapore.

"This showcases the tenacity and versatility of Hong Kong, and the robust trust businesses have in the city as their favored hub for regional expansion," stated Alpha Lau Hai-suen, the director general. She further mentioned that these companies are anticipated to generate 6,864 new employment opportunities.

The agency reported that in 2024, the overall investment surged by 10 per cent, reaching an all-time high of HK$67.7 billion.

Hong Kong has introduced a range of measures aimed at attracting overseas investors to help jump-start the economy following its downturn due to the pandemic. These measures include tax breaks and an improved residency-by-investment program to appeal to worldwide family businesses. The government has assigned InvestHK with the responsibility of attracting 1,130 companies between the years 2023 to 2025.

Tech conflict: Nvidia's CEO Huang expresses gratitude to Chinese employees for their commitment amidst intensifying US semiconductor restrictions

The US business leader praised Nvidia's role in China's modernization during a visit to Beijing.

Nvidia, headquartered in Santa Clara, California, didn't reveal the specifics of Huang's travel plans. However, video footage and local news coverage depicted the American businessperson, originally from Taiwan, interacting with clients and staff in Shenzhen and Beijing.

During a yearly celebration at Nvidia's Beijing headquarters on Sunday, Huang highlighted the company's significant role in advancing China's technological progress.

Huang reported that approximately 1.5 million developers in China have been utilizing CUDA, a proprietary platform from Nvidia designed for creating applications that operate on graphics processing units. Moreover, he mentioned that the company has been collaborating with over 3,000 start-ups to aid in the formation of the technology sector in China.

"For the past twenty years, we've played a significant role in the advancement of one of the world's most prominent markets and nations. We take immense pride in being a part of this ecosystem," stated Huang.

He also boasted about the minimal staff turnover in the local team.

HSBC, Standard Chartered, and Bocom are now permitted to establish accounts for residents of Hong Kong within mainland China. Account owners can shift money for use in mobile payment applications when they are in mainland China.

On Monday, HSBC, Standard Chartered Bank and Bank of Communications (Bocom) began assisting Hong Kong residents in establishing bank accounts in the mainland from afar. This initiative is part of a larger plan to simplify the process for Hong Kong citizens to cross the border for travel, residence, employment and retirement.

Once a 'Type II' account is initiated at a specified branch in Hong Kong, clients are allowed to move up to 10,000 yuan (equivalent to US$1,367) daily or 200,000 yuan annually to their corresponding mainland account within the same bank. The account opening comes without a fee, and there's no obligation to maintain a specific minimum balance.

Clients are then able to move funds to payment platforms like Alipay or WeChat Pay, enabling them to make purchases and eat out in mainland China, as per individual announcements from the three banks.

There are three kinds of bank accounts in China. The first kind requires an individual to physically open an account on the mainland. However, from 2019 onwards, the Chinese government has permitted some domestic banks to initiate remote openings for the second and third types of accounts, both of which provide varying degrees of banking services.

The declaration from the three Hong Kong banks occurred seven days after Beijing confirmed their inclusion to the roster of authorized banks to provide verification services. This service allows the bank to confirm the identity of the individual setting up the mainland account. Currently, eight banks are providing this kind of service.

Ahead of Trump's swearing-in, Chinese authorities have shown their backing for capital markets. Some observers interpret this action as an attempt to strengthen investor trust during periods of instability.

Recently, China's central bank and securities regulator convened a meeting to discuss a relending program aimed at stock buybacks and shareholder increases. This initiative is intended as a strategic measure to bring stability to the capital markets, as per the announcement made by the regulators on Sunday evening.

The scheme, designed to allow Chinese companies and primary stakeholders to request low-interest loans to finance share repurchases and equity hikes, kicked off in mid-October. Since its inception, over 300 public companies have revealed their intentions to utilize this facility, as per the report. They have collectively borrowed in excess of 57 billion yuan (US$7.8 billion), which is roughly 20% of the initial quota of 300 billion yuan. This quota may be raised later, as per the state-run media agency Securities Daily, which cites data gathered from Wind.

The beneficial impacts of the policy instrument are progressively surfacing, playing a crucial part in upholding the steady function of the capital market and enhancing market assurance, as per the statement.

Shares in China experienced a significant rise after the government of Beijing implemented several strategies to stimulate the slow-moving economy in the latter part of September. The CSI 300 Index saw an increase of 21 per cent in September, marking the highest monthly growth in almost ten years. However, the upward trend began to slow down in October as following policies failed to meet the expectations of investors. Moreover, Trump's victory in the US presidential election – with his threats of imposing 60 per cent tariffs on goods imported from China – added to this slowdown.

In the midst of increased US trade regulations, China has set up a $8.2 billion AI investment fund. This move comes just a few days after the US introduced fresh limitations on chip exports and added more Chinese companies to its trading embargo list.

The newly established AI fund's business range encompasses typical equity investment and asset management, as per the registry service. However, no further details were provided.

The establishment mirrors Beijing's resolve to enhance the country's AI competencies, despite the increased technology limitations set by Washington.

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The US government has instructed an AI chip manufacturer to cease exports to China.

Hong Kong is set to become part of the LME warehouse network to cater to China's demand for metals. This significant development strengthens Hong Kong's position as a key link to China, the largest global consumer of metals.

The London Metal Exchange (LME) has included Hong Kong in its list of worldwide warehouse locations this Monday. This decision was made in response to the rising need for actual metal trading between mainland China and the rest of the world. Consequently, this move strengthens Hong Kong's position as an intermediary.

The inclusion of Hong Kong into our international warehousing system is a thrilling progression, offering storage amenities nearer to the metal centers of mainland China than previously possible," stated Matthew Chamberlain, the Chief Executive Officer of LME.

According to an official announcement, Hong Kong will house London Metal Exchange-registered aluminium alloy, primary aluminium, copper, lead, nickel, tin, and zinc. The city will transition into an operational hub three months following the endorsement of the initial warehouse company.

The action signifies a significant accomplishment that draws China – the globe's largest metals consumer – nearer to the most dynamic international metals trading community. This enhances the connection between China's physical metals markets and global pricing on LME, according to Bonnie Chan Yiting, the CEO of the stock exchange operator Hong Kong Exchanges and Clearing (HKEX).

The London Metal Exchange (LME) oversees over 465 storage facilities in 32 different global locations, although it doesn't own or manage these warehouses. Instead, it accredits warehouse companies and their facilities to store LME-certified brands of metal for certificate holders. The LME has shown interest in China as a potential location for storage since 2012, around the time when the Hong Kong Exchanges and Clearing (HKEX) purchased the LME for a sum of $2.2 billion.

"Mainland China is globally recognized as the biggest user of metals. Thanks to its excellent business framework, Hong Kong serves as a crucial link to the Chinese market, which plays a vital role for those involved in market activities and the broader metals sector," stated Chamberlain.