DJI, the leading drone manufacturer from China, plans to establish its worldwide headquarters in the heart of Shenzhen's new city. The company is aiming to secure a plot of land spanning 15,658 square meters within the Shenzhen Bay Super Headquarters Base.

The plan outlines that the project, with its expansive construction space totalling 188,000 square meters, will house facilities for research and development (R&D), administration, demonstration, and other functions.

The land utilization period for the DJI project is set to last 30 years, and the workspace is exclusively for the company and its affiliated entities, as outlined in the plan.

China is grappling to establish its own automobile chip supply chain in an attempt to reduce its significant dependence on foreign imports. As per an official from MIIT, the country's current rate of self-reliance for car chips is under 10 per cent.

The boom in China's electric vehicle production has sparked a surge in the requirement for car chips. However, local companies still depend on overseas providers for over 90% of their needs, say analysts and individuals within the industry.

Representatives from both the Ministry of Industry and Information Technology (MIIT) and the State Council's Development Research Centre have consistently highlighted China's lack of self-reliance when it comes to car semiconductors. Luo Daojun, the deputy head of the MIIT's Institute of Components and Materials, stated that China currently only produces less than 10% of its own automotive chips. Luo has been a prominent speaker at numerous industry events this year.

Last year, Wang Qing, who serves as the deputy director at the Development Research Centre, informed another symposium that China relies heavily on overseas vehicle chip manufacturers, up to 95 per cent. He stated that "The rate of self-production for processing and control chips is under 1 per cent, and for power and memory chips, it's merely 8 per cent."

The urgency of China's reliance on imported car chips has grown as it strives to dominate the international electric vehicle industry amid escalating political disputes with the US. In May, Nikkei Asia disclosed that the Chinese authorities had encouraged the nation's automobile manufacturers to obtain as much as 25% of their chips from local sources by 2025.

The surge is happening in line with the dramatic expansion in EV production. As per the data from the National Bureau of Statistics, China had manufactured 11.49 million EVs by November of this year, marking a 37.5 per cent rise compared to the previous year. In addition, EVs made up 40.8 per cent of the total car production in the nation.

The surge in electric vehicles (EVs) has triggered a sharp increase in the need for semiconductors. This is due to EVs and intelligent vehicles necessitating a substantially higher amount of chips compared to their conventional counterparts that run on internal combustion engines. The China Association of Automobile Manufacturers (CAAM) informed that while standard cars usually need between 600 and 700 chips, EVs require roughly 1,600. Moreover, advanced intelligent vehicles can require up to 3,000 chips.

Beijing's adjustments to the mutual fund recognition scheme will enhance Hong Kong's funds. The revisions to the Mutual Fund Recognition will broaden the range of products for investors, thereby breathing new life into the program, says HKIFA.

The asset management sector in Hong Kong is set to receive a boost, as financial managers eagerly anticipate drawing more investors from mainland China due to adjustments made to a trans-border trading program.

Modifications to the Mutual Fund Recognition (MFR) program will enable companies in Hong Kong to increase the sale of their investment funds to investors in mainland China, as stated by the China Securities Regulatory Commission (CSRC). Additionally, fund managers located outside of Hong Kong will have the capacity to invest these funds on behalf of the investors, the CSRC further explained.

The alterations, introduced in mid-December and implemented from the first of January, are expected to boost Hong Kong's attractiveness as a hub for international fund managers who cater to the investment requirements of mainland investors. This is according to the Hong Kong Investment Funds Association (HKIFA).

"The easing of restrictions will tackle two significant challenges within the sector," stated CEO Sally Wong. "They will substantially re-energize the program."

The Hong Kong Investment Funds Association (HKIFA) is comprised of 106 members, some of which are globally renowned fund houses such as JPMorgan, Fidelity and Barings. The Mutual Fund Recognition (MFR) program was initiated in July 2015, setting a path for homegrown investment funds to be marketed in both territories.

Investors from the mainland invested approximately 33.2 billion yuan or US$4.56 billion in Hong Kong funds in the first ten months of 2024. This was a significant increase from the 12.4 billion yuan invested during the same timeframe the previous year, as reported by the State Administration of Foreign Exchange. Conversely, investment from Hong Kong into mainland fund products decreased, with investors spending 86.6 million yuan, a drop from the previous 339 million yuan spent.

Citigroup and Bank of America align with Wall Street financiers in exiting international climate-banking coalition. There's mounting pressure on American financial institutions from GOP legislators to disassociate themselves from corporate entities advocating for carbon emission cuts.

Citigroup and Bank of America (BofA) have announced their departure from an international climate-banking coalition. This makes them the most recent Wall Street financial institutions to withdraw from the group within the last month.

Citigroup announced that despite its dedication to accomplishing net zero emissions, it is withdrawing from the Net-Zero Banking Alliance (NZBA). Likewise, Bank of America, in an independent statement on Tuesday, confirmed that it too was departing from the NZBA, but assured that it would persist in assisting its clients in decreasing greenhouse gas emissions.

The exit of various banks from NZBA is succeeding that of Goldman Sachs and Wells Fargo. The most substantial financial establishments in the US are experiencing escalating stress from Republican legislators to separate themselves from trade organizations that advocate for a decrease in carbon emissions.

The New Zealand Bankers' Association (NZBA) is a member of the Glasgow Financial Alliance for Net Zero, an organization endorsed by the United Nations that comprises various climate alliances. Both Citigroup and Bank of America are among the original members of this group, known as GFANZ. GFANZ announced on Tuesday that it plans to increase its efforts to attract private funding in order to assist with the transition to cleaner forms of energy.

The Chief Executive Officers of Bank of America and Citigroup, Brian Moynihan and Jane Fraser respectively, are members of the GFANZ's Principals' group. This group is tasked with determining the priorities for GFANZ, as stated on the alliance's official website.

Citigroup announced in a press release that they intend to back GFANZ in its upcoming stage. The firm also stated that they will persist in assisting their customers in their shift towards a more eco-friendly economy, while also contributing to energy consistency, considering the variety of transition methods being implemented across their worldwide network.

The real estate market in Hong Kong is expected to keep its pace following a three-year peak in transactions. According to data from Midland, the total number of property sales reached 67,662, with a total worth of US$68.2 billion in 2024.

The real estate market in Hong Kong is anticipated to gain momentum following a three-year peak in 2024, due to an uplift in outlook. Factors such as increased loan amounts, reductions in interest rates, and interest from investment-migration programs are contributing to this positive shift.

As of December 30, there were 67,662 transactions for new and pre-owned residences, offices, stores, industrial spaces, and car parks, showing a 16% increase from the 58,035 deals in 2023. This is the highest number since the 96,133 transactions in 2021, based on the data gathered by Midland Realty on Monday.

"The overall recorded property value last year surpassed HK$530 billion (US$68.2 billion), marking an increase of over 10 per cent from the HK$477.9 billion recorded in 2023," stated Buggle Lau Ka-fai, the lead analyst at Midland. This comes following a bounce back in the number of transactions.

Nevertheless, the total number of transactions last year dropped by 6 per cent compared to the annual average of 72,380 from 2019 to 2023. Additionally, the total worth was 20 per cent less than the average yearly value during the same timeframe, which stood at HK$654 billion, he further commented.

1:00 PM

Why Hong Kong's real estate market is one of the globe's priciest

The rise in total property registrations last year was primarily driven by the housing sector, states the real estate firm.

Alibaba has decided to offload its complete shares in Sun Art Retail Group to the Chinese private-equity company DCP Capital, for a price of US$1.7 billion. The move is intended to allow Alibaba to concentrate more on its e-commerce operations.

Upon completion of the sale, Alibaba is projected to record a loss of 13 billion yuan (equivalent to US$1.8 billion) that will be charged to its shareholders. Alibaba is the current owner of the South China Morning Post.

The disposal of Sun Art provides a "valuable chance" for Alibaba to "cash in its peripheral assets and use the generated income to concentrate more on the expansion of its primary businesses," according to the company's official statement.

Introducing DeepSeek: the Chinese newcomer revolutionizing AI training methods

The Hangzhou-established company, DeepSeek, is being hailed as the most significant underdog of 2025 in the arena of open-source large language models by Nvidia's research scientist, Jim Fan.

"[The latest AI model] demonstrates how limitations on resources compel you to creatively transform in outstanding manners," Fan noted, alluding to the way DeepSeek produced the product with significantly less financial investment than what other tech firms typically put into the construction of LLMs.

Perspective | Chinese Economy: Beijing Needs to Brace for a Phase of Lower Expansion

It's projected that China will achieve a 5 per cent economic growth this year; however, this figure no longer holds significance for numerous investors and consumers.

Numerous Chinese individuals will likely recall 2024 as the year they had to reconcile with the potential for an extended phase of sluggish economic expansion.

The anticipated release of data from China's statistical bureau, suggesting approximately 5 per cent economic growth for the year, has seemingly lost its significance for numerous investors and consumers.

The enduring systemic limitations impacting China's economic expansion, such as a declining population and an excess of housing, have become more apparent this year. This has led numerous private companies to either reduce their investments or abandon their businesses altogether.

Over the years, the Chinese government has enforced numerous limitations on real estate developers and aspiring homeowners to control speculative buying. Despite these attempts, the nation's property market downturn continued, even when the government eased these constraints or changed particular policies. Consequently, many families have stopped viewing real estate as the perfect place to invest their money.

Analysts predict China will encourage consolidations in the $1.6 trillion brokerage industry following the colossal Guotai-Haitong merger. It is expected that more state-directed transactions will surface in 2025 as a result of the massive merger between Guotai Junan Securities and Haitong Securities.

The unification process within China's brokerage industry, worth 12 trillion yuan ($1.6 trillion), is predicted to quicken in the forthcoming year. This comes as more businesses heed the Beijing government's call to build top-tier investment banks capable of competing with international powerhouses such as Goldman Sachs and Morgan Stanley.

Shanghai, which hosts China's biggest stock market, has indicated that it plans to support the development of two to three globally competitive investment banks by 2035. The city recently revealed a three-year strategy aimed at bolstering the restructuring of its publicly traded firms. Within this plan, Shanghai underscored the urgency of speeding up consolidations among brokerages to build premier investment banks.

"The merger trend in the brokerage sector is speeding up," stated Xu Yingying, a researcher at Caitong Securities. "It's quite clear that the policy focus is to enhance competitiveness through consolidations and purchases, in addition to refining the distribution of public financial properties."

The concept to foster domestically-produced, top-notch investment banks was initially proposed by Wu Qing, the chairman of China Securities Regulatory Commission, as a solution to halt the downward trend in the stock market. This goal was later supported in a comprehensive guideline document released by the State Council this year, which advocated for an industry overhaul to enhance competitiveness.

As the new year begins, Chinese developers continue to grapple with longstanding issues due to a debt crisis that keeps bond investors on edge. There's scant relief for these struggling developers with housing sales still sluggish and persistent funding restrictions.

The upcoming year might not bring much relief for distressed Chinese real estate developers due to ongoing worries related to debt maturity. Key players in the market such as China Vanke and Country Garden Holdings are up against deadlines for repayment and restructuring.

Property bonds worth over 700 billion yuan (about US$5.1 billion) are set to be repaid in 2025, a slight decrease compared to the 770 billion yuan that was due in 2024, as reported by the China Academy Index.

Everbright Securities estimates suggest that there will be an initial strain with 160 billion yuan in the first and second quarters, which will then increase to 190 billion yuan in the quarter of September. The last quarter of 2024 saw 126 billion yuan come to maturity, encompassing both onshore and offshore liabilities.

"Real estate developers continue to face significant pressure to pay off debts in 2025, as many are still undergoing bond extensions or reorganization," stated Wang Xingping, a top analyst at the rating firm Fitch Bohua. "The income from home sales and external funding are still restricted."

10:57 AM

Upsurge, collapse, and debt: Is China's real estate market in decline?

The real estate industry in China, which was a key economic contributor, faced a significant downturn following the implementation of the "three red lines" policy by the Beijing government in August 2020. This policy aimed to curb the extreme borrowing among struggling property developers. Rather than resolving the issue, it inadvertently led to a severe shortage of available cash, causing an unprecedented amount of bond defaults worth $160 billion.

According to official figures, residential property sales experienced a 20% decrease, dropping to 7.49 trillion yuan between January and November, compared to the same period the previous year. Real estate investment also saw a decline of 10.4%, amounting to 9.36 trillion yuan.

China's updated foreign exchange regulations are mandating stricter oversight from banks on cryptocurrency transactions. The State Administration of Foreign Exchange is pressing banks to keep a watchful eye and report any risky operations, including those that involve cryptocurrencies.

The regulations, which apply to domestic banks throughout mainland China, also mandate them to monitor these activities, taking into account the involved institutions and individuals' identities, the origin of the money, and the rate of trading, among other elements.

Moreover, the regulator stated that banks must establish risk-management protocols for these entities and limit the delivery of certain services to them.

The most recent regulations demonstrate how Beijing persists in implementing strict controls to eliminate commercial activities related to cryptocurrencies like bitcoin trading and mining. This is because digital assets are viewed as a risk to the nation's financial stability.

Musk's Starlink will deliver satellite-driven mobile service in Ukraine. Users of Ukraine's top mobile provider will have the option to utilize connectivity from space when ground network service is not accessible.

The agreement will enable clients of Kyivstar to utilize satellite-linked connections when the ground network cannot cover a specific area, as per the Monday announcement from the Ukrainian firm.

Kyivstar anticipates rolling out text messaging capabilities via their technology in the last quarter of 2025, with plans to incorporate voice and data functionalities in the subsequent phases.

Since their invasion in February 2022, Russian troops have consistently targeted Ukrainian infrastructure, including telecommunication systems.

Starlink mobile terminals are essential for Ukraine's battle strategy, offering fast broadband internet for both military communications and the general public.