Chinese Electric Vehicles: Geely's Zeekr debuts MPV targeting middle-income families

Zeekr refers to its Mix MPV as a 'smart mobile living space'

"Zeekr has no interest in imitating its rivals by producing comparable electric vehicles," declared CEO An Conghui during a product unveiling event in Hangzhou on Wednesday. "Zeekr prides itself on its innovation in creating top-tier cars for the future of transportation."

Zeekr referred to its MPV as a "smart mobile living space".

"The Mix, a five-passenger multipurpose vehicle, aims to attract clientele from both existing all-electric vans and Tesla's Model Y," commented Eric Han, a high-ranking official at Suolei, a consulting company based in Shanghai. "High-end SUVs and multipurpose vehicles are profitable markets where major industry figures pour significant resources into research, development, and advertising to vie for dominance."

A Multi-Purpose Vehicle (MPV) usually comes with seven seating options, making it a suitable choice for families with multiple children. These MPVs, often referred to as minivans, are considered commercial vehicles in China. The versions designed for carrying passengers are generally targeted towards affluent families who are ready to invest a minimum of 300,000 yuan on a car for their family.

Jake Sullivan, U.S. National Security Advisor, states that tariffs on China are essential due to their trading behaviors. He supports specific tariffs, while Donald Trump advocates for increasing them to 60% on all Chinese imports.

Jake Sullivan, the US National Security Adviser, stood up for the Biden administration's approach to China and overall foreign policy plans on Wednesday. This comes as the White House is nearing the final weeks leading up to the election of a new president, who will assume office in January.

Addressing the audience at the Brookings Institution in Washington, Sullivan endorsed the government's decision to maintain the tariffs on China, initially set by Donald Trump, and its strong opposition to Beijing's diplomatic and economic approaches.

With November 5 quickly approaching as Election Day – and early voting already underway – Trump, who is the current Republican candidate aiming for another term, and his Democratic opponent, US Vice-President Kamala Harris, are actively promoting their respective economic strategies.

Though Harris advocates for policies that favor the middle class and regulate expenses, she hasn't extensively expressed her position on tariffs. However, last month she described Trump's suggestion as a "sales tax on the American citizens".

Sullivan, who works alongside Harris at the White House, contended on Wednesday that Biden's strategy towards China signifies a revival of a longstanding American foreign policy tradition, one that is fundamentally rooted in the notion of "properly comprehended self-interest".

Moody's predicts a hit to earnings for Hong Kong developers CK Asset, Sun Hung Kai, and Swire

According to Moody's, the sectors of office and retail real estate are expected to continue facing challenges

Moody's anticipates the office and retail real estate sectors to stay under strain.

Analysts from both S&P and Morningstar also share the rather pessimistic forecast.

The agency predicts a 5% drop in total earnings before interest, taxes, depreciation, and amortization for the entire year of 2024, with the levels projected to stay consistent in 2025. This follows a 7% decrease in 2023, as stated in their Wednesday report.

Specifically, the company stated that the sectors of office and retail real estate are anticipated to continue facing challenges, despite predictions of the housing market reaching a level of stability.

SK Hynix, a provider for Nvidia, reports unprecedented earnings, surpassing Samsung in the sales of AI chips. The global runner-up in memory chip production exceeded predictions in its third-quarter financial results.

The second largest producer of memory chips globally announced an operating profit of 7 trillion won (equivalent to US$5.07 billion) for the period between July and September, a significant improvement from a loss of 1.8 trillion won they experienced the previous year.

This is in contrast to the 6.8 trillion won average prediction by LSEG SmartEstimate, which leans towards analysts with a higher accuracy track record.

SK Hynix announced that HBM sales have significantly increased, rising over 70% since the last quarter and skyrocketing by over 330% compared to this time last year.

SK Hynix anticipates that HBM sales will constitute 40% of its total DRAM earnings in the last quarter, a rise from the previous quarter's 30%. The company also forecasts an increase in the demand for memory chips for AI servers in the coming year, as international tech firms persist in advancing generative AI.

Horizon Robotics Initiates a New Phase in Intelligent Driving Technology through Listing on the Hong Kong Stock Exchange

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As the worldwide car industry shifts towards the evolution of intelligent vehicles, and with the increasing trend of self-driving cars, the international market for sophisticated driver support systems (ADAS) and autonomous driving (AD) solutions is flourishing. Established in 2015, Horizon Robotics (9660.HK) has grown to be a prominent supplier of intelligent driving solutions for passenger cars, driven by its aim to equip every passenger vehicle with such advanced technology.

Horizon Robotics officially went public on the Main Board of the Hong Kong Stock Exchange on October 24, with an opening price of HK$3.99 per share. The company's initial public offering (IPO) drew considerable interest from investors. These investors were primarily drawn to Horizon's unique strengths, including its deep knowledge of the Chinese market, its comprehensive set of hardware and software solutions, its solid base of dependable major clients, its flourishing network, and its adaptable business structure.

Prominent anchor investors such as Alibaba and Baidu have heightened market assurance, highlighting Horizon's robust value offering. The firm's adaptable and expandable business structure generates substantial value for customers and can continually adapt to changing market demands. This places Horizon in a prime position for sustained growth.

Revolutionary Integration of Software and Hardware: Pioneering Large-Scale Production in Intelligent Driving

The need for increasingly effective and efficient smart vehicle technology is set to significantly rise in the coming years, playing a crucial role in the smart vehicle value chain. A forecast from China Insights Consultancy (CIC) suggests that the global market for Advanced Driver Assistance Systems (ADAS) and autonomous driving (AD) solutions is anticipated to skyrocket from 61.9 billion RMB in 2023 to a staggering 1,017.1 billion RMB by 2030. This represents a compound annual growth rate (CAGR) of 49.2%. Specifically in China, the market, valued at 24.5 billion RMB in 2023, is predicted to expand at a CAGR of 49.4% reaching 407.0 billion RMB by 2030.

Stocks in Hong Kong and mainland China take a hit as anticipation for a Fed rate cut dwindles. The market mood has become pessimistic as a few investors chose to secure profits from the last two days, according to an analyst.

Shares in both Hong Kong and mainland China experienced a downturn after a significant drop in major US stock indexes overnight. This was due to reduced predictions for interest-rate cuts by the Federal Reserve and a closely contested US presidential race that will shape its future ties with China.

The Hang Seng Index fell by 1.3 per cent, closing at 20,489.62. Meanwhile, the Hang Seng Tech Index plunged 2.6 per cent to finish at 4,483.99.

On the mainland, the CSI 300 Index experienced a decrease of 1.1 per cent, while the Shanghai Composite Index suffered a 0.7 per cent loss.

Investor confidence in both Hong Kong and mainland China has dwindled as some chose to secure their profits from the last two days by lessening their investment stakes," noted Ivan Li, a portfolio manager at Loyal Wealth Management in Shanghai. "The future of the market is still uncertain as the majority of investors are wary of stock investments until China introduces a potent stimulus bundle to uplift the decelerating economy and the struggling real estate sector."

The S&P 500 saw a drop of 0.9 percent on Wednesday as traders expressed skepticism regarding more rate reductions in the US in the two upcoming Federal Reserve policy meetings.

Furthermore, with the world anticipating the imminent US election, Beijing might be postponing any new policy implementations until after the election's outcome, says Dickie Wong, who is the executive director at Kingston Securities.

WeRide, a Chinese self-driving taxi start-up, has submitted paperwork for a $119 million IPO on Nasdaq. This IPO is set to be one of the most significant US listings by a Chinese company since Didi Global's in 2021.

The company based in Guangzhou intends to provide 6.5 million American depositary shares within a pricing bracket of $15.5 to $18.5 each, potentially amassing up to $119.4 million. Alongside this, it has a strategy to garner approximately $320.5 million through a simultaneous private placement.

In August, the self-driving tech startup declared its intention to aim for a valuation of up to $5.02 billion during its Initial Public Offering, coinciding with the period the Biden government was anticipated to suggest a ban on Chinese software for autonomous cars in the US.

Last year, China's securities regulator gave the company the green light for a listing in the US.

The establishment of the company took place in Silicon Valley in 2017 and it was subsequently registered in the Cayman Islands. Following this, they introduced a robotaxi service in Guangzhou, China, in 2019.

Investors were eagerly anticipating WeRide's possible listing, keeping an eye out for indications of a resurgence in Chinese IPOs in the US.

Opinion | To promote equitable commerce, enhance supply-chain financing in developing markets

It's imperative for global lenders to work in harmony with governments and regional banks to encompass the globe's most underprivileged areas.

Supply-chain networks are a global collaboration of raw materials, components, services, and other resources from various nations. Frequently, products cross international boundaries multiple times for processing before they're completed, distributed, and sold.

Companies within these networks rely on short-term supply-chain financing to prevent the tension created by early payments to their suppliers and delayed payments from their customers. This type of financing plays a significant role in international trade and is crucial for small businesses in developing nations.

For instance, clothing manufacturers required funding to boost their procurement of materials, despite the fact that they would only receive payments from customers at a later time. Supply-chain financing provided a solution by giving them instant access to cash, which enabled them to efficiently manage their working capital, maintain steady operation, and help alleviate global supply crunches.

On a worldwide scale, the financing of supply chains is among the quickest expanding sectors of trade finance. BCR's most recent Global Supply Chain Finance Report approximates its worth to be about US$2.3 trillion. However, only a select few are reaping the benefits of this growth.

The CEO of Nvidia, Jensen Huang, is banking on the expansion in India and backing an AI model that understands Hindi. His move coincides with India's growing importance to international tech firms in the wake of escalating tensions between the US and China.

The American semiconductor firm, currently hosting an AI conference in Mumbai, emphasized how its Indian collaborators from various sectors are leveraging their AI technology to enhance their offerings. CEO Huang is scheduled to talk about the possibilities of AI in India with business tycoon Mukesh Ambani, involved in retail to refining industries, at the gathering on Thursday.

India has surfaced as a significant player in the AI field, as the nation of 1.4 billion people has begun to incorporate this technology into sectors such as farming, education, and manufacturing to enhance productivity. Although it still represents a minor segment of their earnings, international tech giants like Nvidia, Microsoft, and Meta Platforms are wagering on the swiftly expanding economy as a promising market and a hub for their operations.

Nvidia announced its collaboration with India's Tech Mahindra to develop a comprehensive Hindi language model. They also intend to support e-commerce business Flipkart in enhancing its chat-based customer service. Additionally, Nvidia plans to partner with Indian healthcare firms to boost efficiency in patient treatment and research.

The American firm has positioned itself as a leader in the worldwide surge of AI, providing the microchips that tech giants such as Microsoft and Google utilize to advance artificial intelligence. Huang has been globetrotting this year, urging nations and businesses to embrace AI technologies, which he refers to as the "next industrial revolution".

'The UOB Approach' aids staff in fostering enduring careers

The prominent Southeast Asian financial institution's principles, mission and beliefs promote individual and career development to enhance involvement and efficiency.

In today's fiercely contested business landscape, any enterprise seeking to draw in and keep the best talent should have definitive plans to nurture the personal and professional development of their employees.

Understanding this, the Singapore-based United Overseas Bank (UOB), which boasts an international network of 500 branches and offices, took a considerable amount of time to identify the crucial components that would shape its distinct organizational culture.

The outcome, dubbed "The UOB Way," is a structure that embodies the bank's principles, mission, and human resources ethos. Importantly, it offers each staff member the education, advice, chances, and adaptability to chase enduring careers, as well as assisting them in achieving a balanced work-life equilibrium with plenty of time for family and extracurricular activities.

The bank's goal in doing this is to foster a culture that enhances involvement and efficiency, enabling individuals to make significant impacts in their positions by continually investing in new abilities and initiatives.

Four years ago, the initial phase in developing the structure was to reaffirm the bank's mission: a pledge to its clients, communities, and coworkers in shaping the future of the Association of Southeast Asian Nations, which consists of 10 member countries.

This can be achieved by showing dedication, integrity, initiative, and unity in all business-related decisions and actions. To support this, UOB's employee philosophy, which is based on consideration, development, and confidence and reinforced by purpose and equilibrium, makes the bank an excellent workplace.

Tesla reigns supreme in the pure electric vehicle market, however, Chinese motorists are gravitating towards hybrid cars due to concerns about driving range. Tesla declared that their net profit for the third quarter increased by 17% compared to the previous year, amounting to $2.17 billion.

The company from Austin, Texas, announced on Thursday that its worldwide vehicle deliveries for the third quarter increased by 5 per cent compared to the last quarter, reaching a total of 462,890 vehicles. This also represents a 6.3 per cent increase from the same period last year.

Tesla outperformed China's BYD in terms of pure electric vehicle (EV) sales for the third quarter in a row. In the final quarter of the previous year, the company based in Shenzhen had surpassed Tesla in the sale of pure EVs. BYD saw a sale of 443,426 pure EVs in the third quarter, which was a 2.7% increase from the same period in the previous year and a 4.1% increase from the second quarter.

In China, which has the biggest car market globally, it seems that hybrid vehicles are more popular than solely electric vehicles (EVs) due to concerns about driving distance. The China Passenger Car Association's data shows that sales of pure EVs in September increased by 29.2 per cent, selling around 644,000 units, a rise from the previous year. However, this growth was slower than the sales growth for plug-in hybrids and extended-range cars, which saw a boost of 96.7 per cent (selling about 361,000 units) and 89.1 per cent (about 111,000 units) respectively, during the same timeframe.

BYD, the global leader in the production of new-energy vehicles, credited its hybrid models for a surge in overall sales during the third quarter. The company reported global sales of 685,830 plug-in hybrid vehicles, marking a 75.6% increase from the previous year and a 23.2% rise from the second quarter. Consequently, BYD's total sales reached 1.13 million units in the third quarter, a year-on-year increase of 37.4% and a 41.9% jump from the second quarter, according to the company's statement.

As homegrown firms concentrate more on the hybrid vehicle sector, Tesla, a company that solely manufactures pure electric vehicles, is anticipated to dominate the majority of sales in China's pure electric vehicle market, states Phate Zhang, the creator of CnEVPost, an electric-car data service based in Shanghai.

"Zhang stated that the disparity in China's all-electric vehicle market between Tesla and BYD will keep growing."

Ex-Hong Kong chief, CY Leung, issues warning about possible housing surplus

Leung alerts about the possible excess of homes due to new developments, advising meticulous demand forecasting and financial management to prevent problems.

Ex-Hong Kong chief, Leung Chun-ying, has expressed worries over the potential dangers of an oversupply in the real estate market, following the government's commitment to increase the number of residential units in newly developed large-scale areas.

Leung, who served as Hong Kong's chief executive between 2012 and 2017, stated in a recent social media post that Hong Kong is currently facing a lack of land and housing. However, he cautioned that increasing the supply in the future may not necessarily be beneficial. His post was titled "preventing oversupply".

The authorities have put forward the Northern Metropolis initiative, a plan worth HK$224 billion (US$28.7 billion) designed to transform 30,000 hectares (74,000 acres) of land into a residential and economic growth area. The project, encompassing Kwu Tung North and Fanling North, is expected to house 226,700 individuals and generate approximately 53,100 new employment opportunities, as per the government's statement.

Leung also expressed doubts about the projected future demand. He pointed out on Facebook that the significant rise in supply and the drastic drop in property prices may indeed address the housing issue. However, he wondered how the subsequent issues of negative equity, financial difficulties, and governmental fiscal challenges would be managed.

Leung stated that previously, the government used to generate revenue from selling land while establishing new regions. However, as the development density in these new regions decreases, the earnings per square foot of land have seen a decline.

He stated that it's necessary to gauge the level of demand, quantify the planning for supply, and earmark the government's financial income and expenses for the advancement of new districts.