Chinese electric vehicle manufacturers persist in slashing prices, despite the risks involved. The sector is launching another bout of price rivalry, which could potentially force less successful competitors out of the market by 2025.

The typical sales price for a pure electric vehicle, also referred to as a battery EV (BEV), dropped by 24,000 yuan (equivalent to US$3,275), settling at 225,000 yuan in the previous month, according to Cui Dongshu, the chief secretary of the China Passenger Car Association (CPCA). He mentioned in a report released on Monday that such a significant price reduction is unusual in the globe's biggest car and EV market.

"He stated that a significant amount of new electric vehicle models were introduced at reduced prices, leading to a near-universal reevaluation of electric car costs. The price cuts, he said, were pursued quite assertively."

The financial assistance program for swapping gas-guzzling vehicles for electric ones was in effect from July to December, causing a flurry of customers to quickly finalize purchases before the year concluded.

It's expected that Beijing will roll out new incentives this year to boost the sales of eco-friendly vehicles in 2025. However, the announcement isn't anticipated until after the annual National People's Congress session concludes in March.

Based on information from the CPCA, an unprecedented 227 models, including electric and gasoline vehicles, saw a reduction in their prices last year. This is a significant increase from the 148 models in 2023. Back in 2022, merely 95 cars were sold at a discounted price.

The economy of Abu Dhabi is receiving a significant lift from Chinese investments, with a particular focus on ports, energy, and real estate. These investments are generating employment opportunities, contributing to the development of infrastructure, and enhancing the emirate's reputation as a worldwide center, according to the director of the investment office.

Firms from China are playing a significant role in diversifying Abu Dhabi's economy by escalating their investments in sectors like ports, industry, energy, and real estate, as stated by a representative from the Abu Dhabi Investment Office (ADIO).

Chinese firms are pumping money into the UAE's capital, leading to job creation, enhancing infrastructure growth, and bolstering the city's position as an international business center, according to Hareb Al Mheiri, the Executive Director of the Investor Growth Sector at ADIO, an organization dedicated to endorsing investment in the city.

Al Mheiri highlighted in a discussion that a significant trend is the growing participation of Chinese companies in the development of ports and industrial areas. This includes their role in the China-UAE Industrial Capacity Cooperation Showcase Zone at the Khalifa Economic Zones Abu Dhabi Group, which is boosting the emirate's industrial potential.

There has been a significant increase in Chinese investment in the real estate sector, particularly in high-end residential developments and the hospitality industry, he noted. This trend is partially fueled by the growing number of Chinese tourists, which in turn is encouraging more investment in tourism facilities.

"Chinese corporations are setting up production units [here], leveraging the emirate's strategic position and beneficial business climate to penetrate regional markets," said Al Mheiri.

Abu Dhabi, home to 90% of the UAE's oil wealth and a majority of the nation's sovereign wealth, is pursuing a strategy to broaden its economic base. It aims to enhance its reputation as a financial hub and free trade zone.

Honor, a smartphone manufacturer from China, is aiming to capitalize on Indonesia's increasing demand for high-end mobile devices. The company plans to kick off its initial entry with the release of over 30 products in the Indonesian market this year. Additionally, Honor intends to establish more than 10 interactive 'experience' stores across the country.

Looking ahead at future financial periods, we hold a strong belief in the possibilities of the Indonesian market. We see potential not only in the general market but also in the middle to high-end smartphone sector. This belief stems from the fact that Indonesia is the leading economy in Southeast Asia and boasts the largest and most youthful demographic," Li expressed during a press briefing on Friday.

Li stated that in Indonesia, their primary attention will be on products of medium to high value and they will aim for long-term market investments.

Tencent and Xiaomi pull Hong Kong shares to a six-week low due to US-China political tensions

The Defense Department included Tencent, CATL, and numerous other companies on the list of 'Chinese military companies', triggering significant losses.

The Hang Seng Index fell by 1.2 per cent to 19,447.58 on Tuesday, bringing the benchmark down to the same level it was at on November 29. The Tech Index also decreased by 0.9 per cent, while the Shanghai Composite Index saw an increase of 0.7 per cent. The Nasdaq Golden Dragon Index, which consists of Chinese stocks listed in the US, dropped 1.2 per cent overnight.

The company behind WeChat, Tencent, experienced a significant drop of 7.3 per cent, falling to HK$379.60. This is the largest decrease since October 8, mirroring its 7.8 per cent decline in New York. The biotechnology company Wuxi Biologics also saw a decrease of 2.5 per cent, reducing its value to HK$16.18, while Xiaomi dipped by 5.9 per cent to HK$34.15. Leading the downturn among prominent electric vehicle manufacturers, Li Auto's shares dropped by 1.6 per cent to HK$92.85.

China's largest EV battery manufacturer, Contemporary Amperex or CATL, experienced a 2.8 per cent drop, taking its value to 249.45 yuan in Shenzhen's market.

"Concerns about future strain are increasing as the action introduces ambiguity to other Chinese technology companies," stated Xing Zhaopeng, a high-ranking strategist at the Australia & New Zealand Banking Group. "The effect still remains minimal due to their restricted business dealings with the US."

Forty minutes and

Trump returns: what lies ahead for China, Asia, and the world? | Discussion Column with Yonden Lhatoo

US actions cause new blow to Chinese tech stocks, pulling Tencent and CATL into military realm

Both shares plummeted in Hong Kong and Shenzhen exchanges, wiping off $38 billion in market worth as a result of the US intervention.

Several of China's leading private tech firms experienced a new blow on the stock market following the US's decision to include Tencent Holdings and Contemporary Amperex Technology, also known as CATL, in a list of Chinese military entities. This move escalates geopolitical strains ahead of Donald Trump's upcoming inauguration later this month.

Tencent, the company behind the dominant app WeChat, experienced a 7.3% drop to HK$379.60 in Hong Kong, mirroring a 7.8% decrease in its American depositary shares in New York the previous night. CATL, the global leader in electric vehicle battery production, saw a decline of 2.8% to 249.45 yuan in Shenzhen. Meanwhile, SenseTime Group, the top AI firm in China which has also been blacklisted, remained steady at HK$1.33 after an initial drop of up to 5.3% in the city.

Tencent and CATL suffered a joint loss of US$38 billion in market value, as the Hang Seng Index dropped 1.2 per cent, hitting almost a six-week low. Both companies have described the shift as an error and misinterpretation.

Seven minutes to seven

Rise or Fall: Is China's Stock Market Craze Sustainable?

Even though the register doesn't function as a trade embargo or penalty, and firms have the opportunity to request removal from the blacklist, this action will probably incite increased wariness among investors. The incoming President, Donald Trump, who decreed a prohibition on U.S. investments in these organizations in 2020, is set to retake the White House on January 20.

"The decision suggests ongoing instability, especially in light of President Trump's proposed additional tariffs," stated Kai Wang, a strategist at the US research company, Morningstar. "Consequently, it wouldn't be surprising if investors remain cautious about China-related matters until the Chinese government provides more detailed information about its financial aid. Furthermore, this situation could deter certain funds from investing in the company, which would further decrease the value of its stock."

Miniso has released US$550 million in bonds to fund its worldwide growth and repurchase its shares. The retailer from China is intensifying its endeavors to expand internationally with the aim of establishing a worldwide chain of 40,000 stores.

Miniso Group Holding, a Chinese retailer specializing in economical lifestyle products, is securing $550 million through a debt instrument. This funding will aid in their global growth initiatives and allow for stock repurchases.

The company based in Guangzhou is set to issue this amount in securities linked to equity, which will mature on January 14, 2032, as stated in a document submitted to the Hong Kong stock exchange on Tuesday. After six years, these securities can be converted into cash and they come with a 0.5% interest rate, which is payable twice a year. The offering will conclude the upcoming Tuesday.

The starting price for the instrument is set at US$8.28, which is approximately HK$64.39. This price is 26.1% higher than Monday's closing price of HK$51.05. The equity-linked securities will have a value expressed in lots of US$200,000.

"The intricate tool could lower Miniso's funding expenses and aid the firm in decreasing costs by approximately 4 per cent," stated Richard Lin, the head consumer analyst at SPDB International. "As a growing number of Chinese businesses aim to grow globally, they will progressively depend on foreign capital for financing."

4:41 AM

The food chain from the mainland, HotMaxx, intends to shake up Hong Kong's retail market by offering products at discounted prices.

Lin anticipates that more businesses will start to release debt with increasingly complex structures.

Shares of Miniso, listed in Hong Kong, experienced a drop as high as 8.3 percent before reducing losses and finally settling at HK$48.40.

Smithfield, the American pork-processing subsidiary of WH Group, has applied for a listing on Nasdaq. WH Group, a Chinese firm, bought out Smithfield for US$4.7 billion in 2013, ending its 14-year trading on the New York Stock Exchange (NYSE).

Smithfield Foods, the biggest pork processing company in the US and a branch of WH Group, has sought a place on the Nasdaq, in a move following their Chinese parent company's decision to finalize the split that was declared half a year ago.

The American division has not yet determined the amount of funds to be raised or the number of fresh shares up for sale. WH initially announced its intention to spin-off in July of the previous year.

WH Group has stated that the proposed Smithfield offering will begin when market conditions are favorable, and once the SEC gives its approval to the registration statement. It was also mentioned that the proposed separation and the Smithfield share listing are dependent on approval from the appropriate authorities, favorable market conditions and other factors.

Chinese corporations are increasingly opting to list their overseas branches separately, a trend that's gaining traction as a strategy for global expansion, particularly as domestic trade is stalling due to a decrease in consumer expenditure.

Viewpoint | Macau's Emergence as Financial Center Creates Opportunities for Hong Kong

Hong Kong, with its sturdy financial bodies and extensive investor base, has the potential to significantly aid in the development of Macau's financial sector.

The latest Financial System Act of Macau, enacted in 2023, showcases the government's dedication to enhancing its financial infrastructure and staying abreast with the changing financial technology landscape. The act notably features a distinct segment dedicated to financial technology, which establishes a legal structure for the provisional authorization of financial technology initiatives on a trial basis.

Despite the lack of a stock exchange in Macau, the city has given the green light to two financial asset trading platforms. In August 2018, the Macau administration sanctioned the creation of the Chongwa (Macao) Financial Asset Exchange (MOX). This platform primarily facilitates debt securities transactions for Chinese companies and local Chinese government financial entities.

Singapore-based fund, Paragon, has established an office in Hong Kong in an effort to connect with more affluent clients. The fund manager views Hong Kong as the perfect center for wealth management that can help them tap into a larger pool of wealthy clients in the Greater China area.

Paragon Capital Management, a Singaporean asset management company, has established its inaugural international office in Hong Kong. This move aligns them with an increasing number of overseas financial managers seeking to attract more affluent customers in this financial center.

The company, overseeing S$1.2 billion (US$880 million) worth of assets, has been granted a permit for operations by the Securities and Futures Commission, according to a Tuesday announcement. This will enable Paragon to offer an extensive array of services to customers in the Greater China area.

The team in Hong Kong will act as a link between customers throughout North Asia and Southeast Asia, according to Paul Lee, the co-founder, CEO and chief investment officer of Paragon. The company stated that Hong Kong is an ideal center for wealth management.

American cloud services company Akamai plans to terminate its content delivery network (CDN) activities in China by June 2026. The company's partners, Tencent Cloud and Wangsu Science & Technology, will facilitate a seamless transition for the users of Akamai's CDN in China.

The letter from Akamai stated that all China CDN services will be terminated by June 30, 2026. Post this date, content requests that are still pending will be automatically directed to adjacent countries, unless there is a specific partner solution that has been activated for a particular country.

"Akamai has announced that all existing China CDN clients are required to switch over to our partner's solution by June 30, 2026, to ensure continuous service. The American company has reassured its customers that it is working closely with Wangsu to create a thorough transition plan and ongoing support services."

The withdrawal of the American firm from Content Delivery Network activities in China is part of a bigger pattern of international tech companies reducing their involvement in the nation as it strives for increased technological independence.

ByteDance's newest venture post TikTok: engaging Chinese mini-series

The firm is on a quest for its subsequent blockbuster in the realm of brief dramas, targeting Southeast Asia and English-speaking audiences.

Melolo, launched in November by ByteDance's subsidiary Poligon, provides a range of brief dramas at no cost, with each installment typically lasting only a few minutes. These internet mini-series, brimming with captivating story turns aimed to engage the audience, are rapidly growing in popularity in China.

Currently, the app can be accessed in areas such as Indonesia and the Philippines, as stated by a representative from Melolo. They also noted that they are continuously seeking fresh business prospects.

ByteDance seems to be considering the possibility of introducing short dramas to the Western market too.

The social media powerhouse based in Beijing is presently on the hunt for an English-language editor and proofreader. Their role would entail transforming Chinese dramas into material that would resonate with viewers from Europe and America, as stated on their online job listings page.

Zijin of China plans to commence lithium production in Congo by the start of 2026. The Manono project is also under contention by Australia's AVZ Minerals, which has initiated arbitration proceedings against the government and Zijin.

Zijin Mining Group from China intends to begin lithium production in the Democratic Republic of Congo at the start of the upcoming year, utilizing one of the world's most extensive reserves of this battery metal.

Zijin is ramping up operations at a location in southeast Congo, a site that is still reportedly owned by AVZ Minerals. The Australian company has begun arbitration processes against both the government and Zijin, in an attempt to regain an exploration license.

The Zijin spokesperson stated via email that the Manono project is slated to begin production in the initial three months of 2026. This would establish it as Congo's first functional lithium mine. Congo is globally recognized as the second-largest producer of copper and the most significant source of cobalt.

Firms from China, such as Zijin, are pouring significant funds into Africa's lithium reserves spanning from Mali to Zimbabwe. This is happening despite nearly a 90% drop in prices from their highest point in 2022. These companies aim to secure supplies for their domestic refineries, anticipating a dramatic increase in the metal's usage in the future.

Despite the ongoing surplus in supply expected to persist in the near future, Zijin mentioned in September that there's still potential for demand from worldwide new energy vehicle and energy storage sectors in the long run. The firm also has additional lithium projects underway in China and Argentina.

Zijin, a company with operations in copper, gold, lithium, and zinc mining spread over five continents, is jointly working on the Manono project with the Congolese government and received a comprehensive mining permit about four months ago. The resource is of significant volume and has an average yield of 1.51 percent lithium oxide, according to the representative.