Unprecedented attendance at the 2024 Asian Insurance Forum to tackle worldwide patterns and obstacles

The forum, held in Hong Kong, gathered 2,400 attendees including international regulatory authorities and industry pioneers, to discuss the evolving trends and difficulties that the insurance sector is grappling with in the face of global instability.

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The Asian Insurance Forum (AIF) 2024, which took place on December 10 at the Hong Kong Convention and Exhibition Centre, attracted an unprecedented 2,400 attendees both physically and virtually.

With the central subject being "Overcoming Difficulties in Times of Worldwide Uncertainty," the AIF, organized by the Insurance Authority (IA), served as a crucial forum for international regulators, insurance executives, and policymakers to share their thoughts on the urgent issues and transformative possibilities.

Staying strong in an unpredictable world

Stephen Yiu, the head of the IA, greeted the international attendees at the seventh iteration of the event, which followed a half-day schedule. He expressed gratitude for the enhanced collaborations across different sectors, stemming from careful selection of discussion themes and panelists.

The Japanese automakers, Honda and Nissan, have consolidated their businesses to create the world's third biggest car manufacturing company, just as the focus shifts from traditional fossil fuel vehicles to electric ones. This development occurs as the car industry pivots from fossil fuel based vehicles towards electric ones, where Japanese firms have been struggling to keep up with competition.

Honda and Nissan, two major Japanese auto manufacturers, have unveiled their intention to merge. This partnership is set to create the world's third-largest car manufacturer in terms of sales. This move comes at a time when the industry is experiencing significant shifts in its transition towards more sustainable energy sources and away from fossil fuels. Moreover, fierce competition from Chinese automakers is prompting traditional car manufacturers to reassess their business strategies.

The two corporations announced that they had formalized an agreement on Monday. They also confirmed that Mitsubishi Motors, a minor member of the Nissan alliance, had consented to participate in the discussions concerning the amalgamation of their enterprises.

Nissan's CEO Makoto Uchida expressed in a statement that if the integration is successful, it can significantly enhance the value they offer to a broader range of customers.

Japanese auto manufacturers have been trailing their major competitors in the electric vehicle market and are now striving to reduce expenses and recuperate the lost ground.

In China, the rising demand for domestically-produced electric vehicles is causing foreign brands to struggle to stay afloat, and Japanese auto manufacturers in the country are grappling with excessive production capacity.

Earlier this month, rumors began to circulate about a potential merger, with speculative sources suggesting that the desire for closer cooperation was partially fueled by Taiwan's iPhone manufacturer, Foxconn's ambition to team up with Nissan. Notably, Nissan maintains a partnership with Renault SA from France and Mitsubishi.

For the first time in half a decade, sales of industrial robots in China have decreased due to 'diminishing demand'. It's projected that the total number of industrial robots delivered this year will be around 300,000, marking a 5 per cent decline from 2023.

According to recent findings from the Shenzhen Gaogong Industrial Institute (GGII), a market consultancy firm, the total distribution of industrial robots in the country for this year is projected to hit 300,000 units, a 5 per cent decline compared to 2023.

The dip in industrial robot sales, which is below the anticipated amount, signifies the initial decrease since 2020, as stated by GGII data. The institute had earlier predicted an unprecedented sale of 320,000 units this year.

The report indicates that industrial robot producers are undergoing a survival challenge. It highlighted the fact that sluggish demand has sparked a pricing battle within the sector.

The surge in China's foldable smartphone deliveries experiences a slowdown as worldwide demand decreases. Huawei continues to be the top-selling vendor of foldable smartphones in China, contributing to approximately 50% of all nationwide shipments.

According to a recent market report released by Counterpoint on Friday, the delivery of foldable mobile phones in China, which holds the biggest smartphone market globally, is projected to hit 9.1 million units this year, a 2% increase from 2023.

This stands in sharp contrast to the three-digit yearly percentage increase observed in past years, such as 103 per cent in 2023, 191 per cent in 2022, and a staggering 442 per cent in 2020.

The projected decrease in China's foldable phone deliveries mirrors the recent global slump in demand.

According to a November report by Counterpoint, worldwide shipments of foldable phones experienced a 1% decrease year-on-year in the quarter ending September, following six straight quarters of increase.

An AI model from Hong Kong has demonstrated superior accuracy over medical professionals in identifying eye diseases. The VisionFM model, a free-to-use tool created by the Chinese University of Hong Kong, has shown equivalency to physicians in diagnosing eye-related conditions, according to a study.

VisionFM is a novel base model that successfully diagnoses and forecasts a range of eye diseases, according to a study published in the NEJM AI journal last month. This could encourage the use of more clinical applications as more data becomes available.

The model showcased a performance either equivalent to or surpassing that of mid-level eye doctors in identifying 12 eye conditions, as stated in the report. Additionally, it exceeded the capabilities of the eye-care field's initial benchmark model, RETFound, in forecasting the advancement of glaucoma, the scientists noted.

The creation of VisionFM emerges as an increasing number of medical experts and researchers investigate the potential of generative AI in assisting the healthcare sector.

Hang Lung advocates for speedier decarbonisation in Hong Kong and China's construction sector. The developer is pushing for rapid regulatory advancements and trial initiatives to hasten the uptake of low-carbon materials, an essential move for the industry's decarbonisation.

Hang Lung Properties suggests that the building sector requires rapid advancement in rules and trial initiatives to encourage the adoption of low-carbon materials and technology. This is crucial to speed up the process of reducing carbon emissions in the construction industry in both Hong Kong and mainland China.

"The regulatory landscape is quite significant, as we can only depend on the sectors to progress at a certain speed," stated John Haffner, the assistant director of sustainability at the development company, which operates in both Hong Kong and mainland China.

China has set a goal to hit maximum carbon emissions by 2030 and aims to attain a balance of carbon emissions by 2060. The steel production industry is responsible for approximately 15 percent of the country's total emissions.

"Haffner stated that regulations can aid in assigning a cost to pollution and increasing the cost of materials and processes that emit high levels of carbon. As a result, it becomes simpler to switch to alternatives that produce less carbon,"

Special Report | Rosewood Hotel Group sets sights on Chinese tourists in Abu Dhabi, plans additional expansion in Middle East

The Hong Kong-based Rosewood Hotel Group was one of the first hotel businesses to acknowledge the increasing importance of the Middle East.

Hospitality providers in Abu Dhabi, such as the Rosewood Hotel Group, are prioritizing China as their primary focus. The efforts made by the group to set up the required framework to penetrate the Chinese market confirms this, says the head of the group's Abu Dhabi division.

Remus Palimaru, the managing director of Rosewood Abu Dhabi, stated that their primary customers currently come from the United States, Europe, and the Middle East. He further mentioned that apart from these regions, their main focus and target market is China. This focus is not only for their establishment, but also reflects a similar interest from their competitors and the city as a whole.

Palimaru stated that local cultural and tourism authorities were strongly encouraging Rosewood to incorporate payment methods such as WeChat to cater to the needs of Chinese travelers.

"Our goal is to stay a step ahead, having invested considerable energy in conveying to China that our doors are open for business," he stated.

Radha Arora, President and Co-Chief Development Officer of the Hong Kong-established Rosewood Hotel Group, stated that their organization was one of the first in the hospitality industry to acknowledge the increasing importance of the Middle East. This includes the crucial part the region plays in accommodating major international events and drawing a substantial number of tourists and investors.

In July of 2011, New World Hospitality purchased Rosewood Hotels & Resorts for a sum of $229.5 million. Following this, they rebranded themselves as the Rosewood Hotel Group two years later. Sonia Cheng Chi-man has since stepped into the position of CEO.

Sole Coverage | Rosewood Hotel Group Aims to Attract Chinese Tourists in Abu Dhabi, Considers More Expansion in the Middle East

The Rosewood Hotel Group, headquartered in Hong Kong, was one of the trailblazing hotel businesses to acknowledge the increasing importance of the Middle East.

Hotel owners in Abu Dhabi consider China as their main focus, reflected in the measures taken by the Rosewood Hotel Group to establish the required facilities to penetrate the Chinese market, states the head of its branch in Abu Dhabi.

Remus Palimaru, the managing director of Rosewood Abu Dhabi, mentioned that their predominant clients currently come from the United States, Europe, and the Middle East. He also pointed out that China is their primary focus, as well as that of their competitors and the city itself.

Palimaru mentioned that regional culture and tourism authorities were strongly advocating for Rosewood to adopt payment methods such as WeChat, to be well-prepared for visitors from China.

"We aim to be at the forefront, having exerted significant efforts to convey to China that we are ready for business transactions," he stated.

The Rosewood Hotel Group, headquartered in Hong Kong, was one of the first hotel chains to acknowledge the increasing importance of the Middle East, says Radha Arora, the group's president and co-chief development officer. This recognition encompasses the region's crucial function in organizing major international events and drawing in a substantial number of tourists and investors.

In July 2011, New World Hospitality purchased Rosewood Hotels & Resorts for a sum of $229.5 million. Two years subsequent to that, they rebranded themselves as Rosewood Hotel Group. Sonia Cheng Chi-man has since assumed the position of CEO.

Chinese electric vehicle manufacturer, Nio, has introduced its Firefly-branded cars to compete with Mini Cooper and Smart. This unveiling marks a significant step forward in Nio's expansion into global markets.

During the Nio Day event in Guangzhou on Saturday, William Li, who serves as the CEO and co-founder of the Shanghai-based auto manufacturer, announced that their latest smaller and less expensive vehicle, equipped with the newest electric vehicle technologies, is set to be within reach for a wider range of global customers.

"We believe it's our company's duty to pursue a sustainable and improved future," he conveyed to the 22,000 Nio owners present at the event. "Nio is committed to creating top-quality electric vehicles for customers around the world."

The initial model of the compact Firefly car is tagged at 148,000 yuan (equivalent to US$20,284) and they will start shipping in April, according to him.

Nio's battery swap technology, which enables users to switch out a depleted battery for a fully charged one in under three minutes, will support the car. The car also has the ability to park itself. Information about the car's driving distance and digital control panel was not disclosed.

Li stated that Firefly vehicles surpass Mini's in intelligence and, in terms of style, they outshine other cars equipped with smart features.

Last month, Deutsche Bank reported that the new model's total shipments would hit 8,000 units by 2025.

The ongoing turmoil in China's real estate sector continues into its fifth year

The persistent property debt issue in China is now in its fifth year, with no signs of struggling builders finding it easier to settle their debts.

A prominent Chinese developer is now under scrutiny by officials due to potential default risks. A significant construction company in Hong Kong is seeking extended loan terms from its lenders. Meanwhile, another similar industry player is offloading a famous yet mostly vacant shopping complex in Beijing.

The real estate debt crisis in China, now in its fifth year, shows little signs of easing, as struggling property developers continue to grapple with debt repayment amidst a persistent downturn in housing sales. These developers' dollar bonds remain noticeably devalued, while debt issuance is almost non-existent. Additionally, the real estate sector stands out as a significant underperformer in the stock markets.

Recently, there were renewed concerns when the banking regulator instructed leading insurance companies to disclose their financial risks associated with China Vanke. This was to determine the level of assistance needed by the country's fourth-largest developer by sales to prevent bankruptcy. Meanwhile, in Hong Kong, New World Development tried to postpone some loan repayments, and Parkview Group listed a notable commercial property for sale in Beijing.

Recent indications of strain are heightening worries that the housing industry, which was once a significant driver of growth and now a major hindrance to demand for products ranging from furniture to vehicles, is far from recovering. The problems faced by Vanke add to the anxiety as it demonstrates that the liquidity crunch is impacting one of the few major construction companies that have managed to stave off insolvency. Moreover, the difficulties experienced by its counterparts in Hong Kong signify that the ripple effects are being increasingly experienced abroad.

"Though the latest governmental strategies have slowed down the decline, the industry may need another year or two to reach its lowest point," stated Leonard Law, a senior credit analyst at Lucror Analytics. "Given these circumstances, there remains a chance for additional defaults in the coming year, though the total default rate is expected to be significantly less than previously."

In an attempt to mitigate the economic slowdown, Chinese officials have intensified their initiatives in the past few years. These measures include reducing interest rates, decreasing buying expenses and limitations, and providing government assurances for bond sales from more robust developers. During a significant economic conference held earlier this month, prominent leaders also vowed to stabilize the real estate market in the coming year.

Nonetheless, the implemented rescue strategies have primarily aimed at averting a crash in real estate values, safeguarding proprietors of incomplete apartments, and utilizing government funding to manage surplus inventory. Simultaneously, decision-makers decided to stand by and observe as once-industry giants China Evergrande Group and Country Garden Holdings failed to meet their financial obligations.

The value of diamonds is drastically decreasing globally. Could China be the culprit? The demand for natural diamonds in China has significantly diminished due to the decline in marriage rates. Simultaneously, China's factories are producing synthetic substitutes that are nearly 90 per cent less expensive.

In the current challenging financial climate in China, not all recently married couples can afford a high-end, genuine diamond. However, many of them are no longer interested in owning one.

The global value of natural gems has decreased, tarnishing their worth, even as their synthetic counterparts shine equally bright but come at a significantly lower cost.

Vivian Wu, a 40-year-old entrepreneur who established the diamond company Wei An Shang Mao in Shanghai, stated that there isn't a definite requirement for items from Tiffany's.

Wu continues to fulfill approximately 10 diamond requests weekly, a trend that has been consistent over the years. However, recently, customers are frequently seeking deals. More and more newly married couples are requesting her to source smaller diamonds to suit their decreasing budgets or opting for synthetic versions that can sometimes cost only a fraction, about one-tenth, of the price of a natural diamond.

Transformations occurring in China are swiftly altering the worldwide diamond industry, as Chinese consumers are reducing their spending on natural diamonds and their manufacturing sectors are increasing the production of more affordable synthetic options.

The cost of diamonds in bulk has seen a reduction of approximately 40% in the last two years, as stated by Bank of America Global Research. The Zimnisky Rough Diamond Price Index indicates a notably sharp decrease since reaching its peak in 2022.

China's C919 jet is undergoing crucial trials as its network swiftly broadens. The Chinese commercial plane is currently operating flights to 10 prime cities in an effort to assure Western authorities of its dependability.

China's inaugural domestically-produced passenger plane, the C919, is currently operational in 10 leading cities throughout the nation, as local airline companies quickly integrate the new airplane into their fleets.

The airplane, viewed as a testament to China's accomplishments in technology and high-end production, reached a fresh high point on Thursday, having transported a sum of 1 million travelers since its first commercial journey in May 2023.

The swift deployment of the C919 will serve as a crucial examination of its capabilities, as it seeks to establish itself as a dependable choice against Boeing and Airbus' one-aisle models. The increased number of flights will present hurdles, ranging from implementation to upkeep.

"Increasing the number of flights across various cities not only serves as a genuine assessment for the jet, but it also enhances its visibility," stated Li Hanming, an aviation expert.

Eastern Airlines of China was the inaugural airline to utilize the new aircraft for its operations.