Shares in Hong Kong slightly increase ahead of crucial financial information from the US and China. The inflation data for December in the US is expected on Wednesday evening, and China plans to reveal its economic growth for the last quarter on Friday.

Shares in Hong Kong experienced a slight increase ahead of the anticipated key economic figures from the US and China. These figures are expected to influence monetary strategies and reveal the extent of economic resurgence in mainland China.

The Hang Seng Index experienced a 0.3 per cent increase, closing at 19,286.07 after trading within a limited range. Similarly, the Hang Seng Tech Index saw a 0.3 per cent boost. However, in China, the CSI 300 Index fell by 0.6 per cent and the Shanghai Composite Index also declined by 0.4 per cent.

China Merchants Bank saw a rise of over 3% following its profit increase from the previous year. At the same time, the Semiconductor Manufacturing International Corp (SMIC), buoyed by anticipation that US technology restrictions would prompt China to accelerate its autonomy plans. However, Zijin Mining Group, a gold production company, faced a downfall after being placed on a US blacklist due to accusations of forced labour associated with the Uygur ethnic group.

The US inflation figures for December, set to be released on Wednesday evening, are eagerly awaited. This comes following last week's impressive jobs data which significantly reduced expectations for the Federal Reserve to cut interest rates. It's likely that consumer prices saw a growth of 2.9 per cent, a jump from the previous month's 2.7 per cent, based on predictions compiled by Bloomberg from various economists.

In the meantime, China is set to release information on its economic growth for the fourth quarter on Friday. The forecast indicates that growth likely accelerated to 5 per cent, up from 4.6 per cent in the prior quarter.

Yang Chao, a strategist at China Galaxy Securities in Beijing, has noted that China's economy is slowly but surely improving following the implementation of the stimulus package. However, he also highlighted that investor confidence is dropping due to external factors, like the unpredictability of US policies towards China under the Trump administration. As a result, it's anticipated that stock prices will remain largely stable.

Elon Musk faces lawsuit from US SEC for postponing Twitter share ownership announcement

According to the SEC, Musk purchased over US$500 million worth of Twitter stocks at unjustly reduced rates, negatively affecting unaware investors.

The SEC has lodged a complaint in federal court in Washington, alleging that Musk breached federal securities legislation by delaying his announcement of buying 5% of Twitter's common shares for an additional 11 days.

A regulation by the SEC mandates that investors need to reveal within a span of 10 calendar days, or by March 24, 2022, for Musk, when their ownership surpasses the 5% mark.

The SEC disclosed that Musk manipulated unsuspecting investors by acquiring over US$500 million worth of Twitter stocks at undervalued rates. He only made his purchases public on April 4, 2022, at which point he held a 9.2% share.

The SEC reported that Twitter's stock value increased over 27 per cent after the revelation.

The lawsuit filed on Tuesday aims to compel Musk to pay a monetary penalty and surrender any unduly earned profits.

The Hong Kong Initial Public Offering (IPO) market is causing a stir among international investors and bankers due to the resurgence of large-scale deals, according to China International Capital Corporation (CICC). Foshan Haitian Flavouring and CATL, major players in the mainland industry, are reportedly preparing for IPOs worth billions of dollars. This comes as China intensifies its market integration efforts.

Larger share offerings from some of China's most substantial onshore-listed firms are finding their path to Hong Kong, backed by global funds' demand, enhanced valuations, and market reforms, as stated by the country's leading investment bank.

"Several prominent companies with significant market value across diverse sectors in the A-share market are considering issuing H shares. This could lure international long-term funds and institutional investors," stated Xu Jia, the assistant chief of the investment banking division at China International Capital Corporation (CICC).

Foshan Haitian Flavouring and Food, the largest condiment producer in China, applied to list its stocks on Monday. It chose CICC, Goldman Sachs, and Morgan Stanley as joint sponsors. Media speculation indicates that the firm, which is currently listed in Shanghai, is aiming to raise a minimum of $1.5 billion.

Six fifty-seven

Upsurge or downfall: Is China's stock mania maintainable?

Think tank suggests Hong Kong to capitalize on clean-energy commodities

According to a report from the Better Hong Kong Foundation, a commodities market could stimulate economic growth in Hong Kong.

A commodities market in Hong Kong, centered on materials vital for clean energy and other rising sectors, could enhance the city's significance in international commerce, providing a strategic option for global economies and businesses, as per a local private research group.

The Better Hong Kong Foundation suggested in a Wednesday report that this kind of marketplace could assist commodity buyers in diversifying their investments and not relying solely on Western markets.

The report, which is the result of a nine-month study involving commodity-market participants and the China Development Institute in Shenzhen, stated that advancing the commodity market is a crucial step towards generating a new economic growth opportunity for Hong Kong.

The foundation, established in 1995 by prominent Hong Kong business and community leaders, stated that the recommendations and tactics outlined in the report are derived from the requirements of the industry.

A multitude of Chinese developers burdened with debt are confronting their fate in Hong Kong courts. Sunac and Shimao are dealing with fresh liquidation requests, whereas Country Garden and Times China are preparing for court proceedings this month.

The struggles of debt-ridden Chinese developers seem to be unending, as they consistently confront bankruptcy proceedings and get served with new dissolution requests in Hong Kong, which will ultimately determine their future.

Sunac China Holdings and Shimao Group Holdings were served with fresh dissolution requests this past Friday. Meanwhile, Country Garden Holdings and Times China Holdings are set to appear in court in the coming weeks.

In the meantime, Tianji Holding, a subsidiary of China Evergrande Group based in Hong Kong, received an eight-week extension after a Hong Kong judge postponed a liquidation hearing to March 12 on Wednesday.

Edward Middleton and Tiffany Wong, who are the liquidators for Evergrande from Alvarez & Marsal Asia, submitted the petition against Tianji in November.

8:36 AM

The disappearing fantasy: the rise and fall of China Evergrande

This marks the second insolvency court proceeding within a week involving an offshore division of Evergrande. Just last Friday, a court in Hong Kong mandated the liquidation of CEG Holdings BVI, as reported in a Monday announcement from the property developer.

Tencent and the Guillemot family are contemplating forming a new business entity that incorporates specific Ubisoft assets. They are currently assessing which assets should be a part of this new venture.

The tech company from China and the Guillemot family are currently examining which assets to incorporate into their new venture, and how much they are worth, according to sources. A possible agreement could enable Tencent to acquire an interest in the business venture and gain greater influence over some of Ubisoft's intellectual properties, thereby enhancing its video game operations beyond the Chinese market, insiders claim.

Discussions are still in progress and nothing has been finalized yet, according to sources. A spokesperson for Tencent chose not to comment on the matter. When asked, a representative for Ubisoft pointed to the company's announcement from January 9, stating they've enlisted consultants to explore different strategies to enhance value.

Bloomberg News revealed in October that Tencent and the Guillemot family were discussing with consultants on strategies to steady Ubisoft and increase its worth following a drop in its share value. Insiders have indicated that a buyout was one of the potential solutions being evaluated.

As per Ubisoft's yearly report, as of March 31, Tencent and the Guillemot family held 25.4% of Ubisoft's share capital and 29.6% of the voting rights.

Ubisoft's stocks have seen a drastic decrease of almost 50% within the last year, making the company's market worth approximately US$1.6 billion. The company lowered its projections in September and announced a postponement of its Assassin’s Creed Shadows game's launch from November to February. Just last week, it further pushed back the release date of this well-liked series to March 20.

Cambricon, considered China's top AI chip manufacturer and a competitor to Nvidia, forecasts its initial quarterly earnings. The company, highly favored by Chinese investors in 2024, is deemed as one of the country's most promising enterprises in creating sophisticated domestic graphics processors.

This implies that in the previous quarter, the company generated net earnings varying between 240 million yuan and 328 million yuan, following a loss of 724 million yuan in the initial nine months of the year. This was the inaugural quarter where Cambricon turned a profit.

The company, based in Beijing, also projected that its revenue last year would see a substantial rise of about 70 per cent, amounting to 1.2 billion yuan.

The shares listed in Shanghai ended at 695.96 yuan on Wednesday, marking a significant increase from 120.80 yuan from the previous year.

Next-generation chip manufacturers in the Greater Bay Area are gaining traction in the Chinese electric vehicle sector. The Nansha district in Guangzhou is becoming a hot spot for firms producing silicon carbide semiconductors, who are leveraging the benefits of regional consolidation.

Nansha, situated in the southern part of Guangdong's province capital, is leveraging its close proximity to major economic hubs and local industrial strategies to establish a top-tier semiconductor hub. The focus of this hub is on silicon carbide (SiC) – a vital element for future generation semiconductors.

AscenPower Semiconductors, a significant entity in the regional center, is known as China's biggest SiC chip production endeavor, primarily concentrating on the automobile industry's chip needs.

Xiao, who also heads up APT Electronics, the first semiconductor firm in Nansha, highlighted the advantages of the bay area layout, since it allows him to participate in meetings in both Guangzhou and Hong Kong within a single day.

"Two decades ago, when I launched a business with my guide from the Hong Kong University of Science and Technology, I had no idea about the existence of GBA," Xiao stated at the yearly conference, which was hosted in Nansha for the first occasion this year. APT Electronics and three other semiconductor start-ups established by Xiao's group have now expanded to roughly 4,000 employees, generating an economic yield of 4 billion yuan (US$545.5 million) in 2024, as per the executive's information.

Hans Group, the primary shareholder of Citybus, has entered an agreement to power buses in Hong Kong using hydrogen. This pact, involving Hans Group, Citybus, and Grand Resource Hydrogen, was signed on Wednesday.

On Wednesday, a supply agreement was inked between Hans Group, Citybus and Grand Resource Hydrogen Energy Science & Technology. The latter, a Shenzhen-based firm, operates under the oversight of the Guangdong provincial government.

Grand Resource Hydrogen has assured a daily provision of at least five tonnes of hydrogen, with the cost not surpassing what is billed to customers on the mainland, as stated in a collective announcement by the firms.

"This deal will significantly alleviate worries regarding the availability and cost-effectiveness of hydrogen as a sustainable fuel for public transportation for Citybus," stated Hans Group CEO Yang Dong to the Post following a contract signing event.

He stated that five tons of hydrogen could adequately fuel approximately 100 buses that operate on hydrogen fuel cells. He also mentioned that the expansion of the hydrogen-based fleet for Citybus is not anticipated to achieve this scale in the upcoming two years or even longer.

Citybus has committed to ensuring its entire fleet, currently over 1,700 buses, will be emission-free by 2045. This is five years before the deadline set by Hong Kong. Currently, there is one hydrogen fuel cell bus in operation, but the number is expected to rise to five within this year.

The steep price of hydrogen has raised questions about the financial feasibility of hydrogen-powered buses in Hong Kong. Sinopec announced last year that the cost of hydrogen in the city would be HK$108 per kilogram (US$13.80), which is roughly triple the rate in Foshan, Guangdong.

A high-ranking Beijing representative in Hong Kong urges for a white paper to improve the capital market. Deputy Qi Bin of the liaison office highlights the flaws in Hong Kong's market regulation, transaction fees, and corporate governance at the Capital Markets Forum.

Hong Kong's financial market is instrumental in the city's economic framework and country's plans. However, it lacks in several aspects, states Qi Bin, the deputy at the nation's central government liaison office in the city.

"Hong Kong's market regulation, transaction costs, and corporate governance still fall short when measured against global standards," Qi stated during his address at the Hong Kong Capital Markets Forum on Wednesday.

"Hong Kong might consider investigating and creating a capital market white paper, suggesting enhancements that meet the top international standards."

The white paper might seek feedback from all involved parties, such as international organizations, to enhance the trust of investors. It could also compare Hong Kong's financial market to leading finance hubs such as New York and London, Qi mentioned.

He emphasized the importance of the city's financial market, which last year showed impressive performance, as the market for initial public offerings (IPOs) revived its vigor.

"Boosting Hong Kong's economy relies heavily on finance, and enhancing Hong Kong's financial sector depends largely on the capital market," stated Qi, highlighting its crucial role in sectors like promoting artificial intelligence development and fueling the growth of the Greater Bay Area.

Forecasts for Marketing in 2025 by Melissa Wong of AIA Hong Kong and Macau

Wong highlights the comeback of the AIA Carnival and its potential to foster significant relationships as a notable event of 2024

AIA's marketing strategies in 2025 will concentrate on dismantling cliches and advocating a comprehensive perspective on health and wellness

15:00

Kevin Huang, the Chief Operating Officer at SCMP, and Melissa Wong, the Chief Customer and Marketing Officer at AIA Hong Kong and Macau.

Melissa Wong, the lead customer and marketing officer at AIA Hong Kong and Macau, has been a significant figure in the company's attempt to promote health and wellness to Hong Kong's residents. She emphasizes the importance of this in Hong Kong, considering their high life expectancy. Wong aims to shift the public's mindset from viewing life as a mere number to considering it as a span of health.

"She emphasizes that there's an abundance of options and initiatives to pick from," she states. "Processing and considering these various alternatives, and determining precisely how we can bring about significant change for our clients has genuinely been our primary concentration."

She emphasizes that the key to success here is having the bravery to choose a handful of essential projects that will create the most significant effect.

Igniting Human Interactions

Investigation in the US reveals China's undue control over shipbuilding, according to insiders

Chinese embassy representative counters the report, stating 'US is pointing fingers at China for its own issues'

Chinese embassy representative counters the report, stating 'US is pointing fingers at China for its own issues'

The administration of US President Joe Biden has determined that China employs unjust strategies and methods to gain control over the global maritime, logistics and shipbuilding industries, according to three sources who have knowledge of the findings of an extensive trade inquiry, as reported to Reuters.

In April 2024, Katherine Tai, the United States Trade Representative, initiated an investigation following the appeal from the United Steelworkers and four other American unions. This investigation was carried out under Section 301 of the 1974 Trade Act, which permits the US to impose penalties on overseas nations that partake in actions deemed "inexcusable" or "unreasonable", or those that place a strain on US commerce.

The probe determined that China strategically aimed at controlling the shipbuilding and maritime sector, employing methods such as financial backing, creating obstacles for international companies, compulsory technology sharing, intellectual property infringement, and acquisition strategies to favor its own shipbuilding and maritime sector, according to an insider who wished to remain anonymous.

The individual also claimed that Beijing significantly and deliberately held down labor expenses in the marine, ship construction, and logistics industries, referencing sections of the report.

Two forty-three

Biden declares that China 'will never outdo us', in his parting statement a week prior to his departure from office.

There was no instant response available from USTR, the White House, or President-elect Donald Trump's transition team.