Bankers suggest that the IPO modifications proposed by the Hong Kong exchange could attract additional listings. UBS states that the suggested changes by HKEX relating to public float and allocation stipulations would contribute to the city drawing in more listings and institutional investors.

Industry insiders suggest that the recent suggested changes to the listing rules by Hong Kong's stock exchange could enhance the city's appeal for more initial public offerings (IPOs). This could potentially bolster its prospects of reclaiming its status as the leading global location for new stock offerings.

The Hong Kong Exchanges and Clearing (HKEX) is actively seeking public opinion until March 19 on its proposal to significantly lower the public float requirement and boost the percentage of new shares available for institutional investors to subscribe.

"Traditionally, Hong Kong's public offering requirement has been stricter compared to other global exchanges like the US," stated John Lee Chen-kwok, vice-chairman and co-head of Asian coverage at the investment bank UBS in Hong Kong. "The suggested change to reduce the public offering would give potential listed companies more room for choice in determining their share offerings, therefore improving Hong Kong's attractiveness as a listing location."

HKEX is going all out to draw in new listings. The money raised through initial public offerings (IPOs) in Hong Kong skyrocketed by 87 per cent compared to the previous year, reaching US$11 billion in 2024 as reported by the London Stock Exchange Group. This advancement propelled the city to the fifth position globally on the IPO rankings in December, a significant rise from the 13th spot in June and the eighth in 2023. Between 2009 and 2019, Hong Kong had the distinction of being the world's leading IPO platform seven times.

According to the existing regulations, Initial Public Offerings (IPOs) are required to make available to the public, a minimum of 25% of their overall issued shares with a market value of no less than HK$125 million (US$16 million). Major participants have the option to request a reduction of this limit to 15%.

The mandate, established in 1989, is designed to guarantee that there are enough shares accessible for trade.

The Hong Kong-based startup Arbor is targeting 100,000 international investment professionals as potential users of its AI tool. The company's 'reasoning' chatbot is designed to analyze text and distill investment suggestions, thereby improving fundamental stock analysis.

A tech start-up, spearheaded by Hong Kong natives including an ex-analyst from Goldman Sachs, is poised to assist finance experts and investors around the world in making superior investment choices. This will be facilitated through their AI chatbot, capable of executing cycles of "cognitive processing and logic".

Arbor's artificial intelligence-powered chatbot, ArborChat, uses extensive language models to scrutinize text and identify investment strategies, as a way to improve basic stock analysis, the company revealed. It's been tested by around 100 companies, with a handful even purchasing the system, which was introduced just two months earlier, as per Arbor's CEO and co-founder, Cheney Cheng. The objective is to expand their clientele to 100,000 within the next three years, primarily focusing on the worldwide fund industry, Cheng stated.

"Cheng expressed that the current surge in AI technology is revealing a vast untapped potential in the investment sector, thanks to AI's superior task comprehension and analysis skills beyond human capacity. He added that this will lead to many profitable opportunities that have yet to be seized."

Investment has always been seen as a testament to human intelligence due to the vast amount of data and intricate analytical abilities needed, making it a difficult field for artificial intelligence to master, according to Cheng. Cheng, who began his professional journey in basic equity investment at Goldman Sachs Asset Management and later worked as a banker in mergers and acquisitions, emphasized this point.

With the advancement of technology, AI is now capable of assisting with more complex tasks.

For instance, if inquired about the effect of policies from the soon-to-be US President, Donald Trump, on businesses, or a multitude of stocks, ArborChat would perform several procedures to dissect the query and amass relevant information. It would then offer responses supported by internal databases in a matter of minutes.

The method is what the company refers to as a "ThoughtTree" strategy, which mimics the way humans respond to a query. Generally, ArborChat carries out two phases of inquiries and three levels of examination. As the chip industry develops and computing capacity expands, the firm intends to enhance this, according to Cheng.

The retirement fund in Hong Kong saw an impressive growth of 13% in 2024, marking the best progress in four years for retirees. This surge, amounting to HK$102.4 billion (US$13 billion), translates to about HK$21,500 for each member, according to MPF Ratings.

The Mandatory Provident Fund (MPF) of Hong Kong, which consists of 4.75 million members, saw a 13% growth in their pension assets in 2024. This was due to the highest investment returns they've seen in the past four years.

According to independent research company, MPF Ratings, the MPF accumulated a total of HK$102.4 billion (US$13 billion) in the previous year. This amount corresponds to HK$21,500 per member.

The 379 MPF investment funds yielded an average profit of 8.8% over the year, a significant increase from the 3.5% growth in 2023 and the 15.7% downturn in 2022. This marks the highest annual return since the 11.4% rise in 2020.

The impressive outcomes increased the total assets of the MPF to HK$1.29 trillion. This amount, including investment profits and fresh deposits from members, equates to HK$271,500 for each member. This is a 13% rise compared to the previous year, suggesting an average portfolio growth of HK$31,600 per member.

"2024 has proved to be a fruitful year for investors," stated Mark Konyn, the main investment officer at AIA, a leading MPF provider. "The decrease in inflation and overall positive returns have contributed to the expansion of retirement savings."

In 2025, the Hong Kong real estate market is slated to receive an influx of 10,000 new apartments, further inundating an already saturated market. Experts predict that prices will continue to remain low as builders hurry to sell their inventory. However, this strategy might not be enough to attract investors to the market.

Approximately ten major housing developments, which include a minimum of 10,000 new apartments, are set to launch in the Hong Kong market in 2025. This comes as builders persist in slashing prices to clear stock, in light of declining interest rates and a rise in purchasing interest.

Nonetheless, despite it being an opportune moment for personal purchases, the market might still struggle to attract investors, according to industry professionals.

Joseph Tsang, chairman of JLL Hong Kong, suggests that now might not be the best time for investors to dive into the market. The rental return hasn't shown a positive trend yet and the capital appreciation continues to decline. He noted that although some projects in specific areas have offered enticing prices for final users, it's unlikely that one could purchase at the lowest point.

Property agents have indicated that Kai Tak, the location of Hong Kong's previous airport, is set to become a major hotspot for the introduction of new projects.

Hong Kong shares stumble due to instability in manufacturing as China promises additional policy backing. Shares increased their losses in the first week of 2025 following reports indicating a slowdown in Chinese manufacturing growth the previous month.

On Monday, the Hang Seng Index experienced a 0.4 per cent dip to 19,688.29, furthering its 1.6 per cent decrease from 2025's initial trading week. The Tech Index also fell by 0.2 per cent, and the Shanghai Composite Index saw a 0.1 per cent reduction.

Nongfu Spring, a company that manufactures bottled water, experienced a 3.4 per cent decrease, dropping to HK$32.50. Likewise, China Resources Beer, a brewing company, also saw a 3.7 per cent fall, landing at HK$23.15. The food delivery service, Meituan, retreated by 2 per cent, settling at HK$150.70. On a more positive note, JD.com, an e-commerce company, managed to increase by 1.1 per cent, reaching HK$135.70. Similarly, the online travel agency, Trip.com, saw a slight rise of 0.8 per cent, bringing its value to HK$520.50.

Two hours and fifty

Trump warns of imposing fresh tariffs targeting narcotics on 'day 1' for China, Canada, Mexico.

The mood was somewhat subdued as a definitive stimulus policy is still pending, despite promises from the government to intensify efforts to boost the consumer sector," stated Ka Liu, chief of advisory support at Citibank Hong Kong. He further added that a deceleration in the rate of export growth is anticipated due to Trump's tariff warnings.

The trader who earned billions in 2008 is back to gamble on fluctuations in the Asia-Pacific market. The ex-trader from a Singapore-based hedge fund is looking for $250 million to speculate on market instability and business collapses in the Asia-Pacific region.

An ex-hedge fund manager, whose company raked in billions during the worldwide economic downturn, is poised to capitalize on market instability once more. He perceives dangers to the stability of the market at an unprecedented level, similar to the situation in 2008.

The family office of Steve Diggle, Vulpes Investment Management, is planning to raise a capital of around $250 million from investors possibly within the first quarter, according to what the investor based in Oxford, UK, stated during a phone interview.

Diggle, the man behind a company that amassed $3 billion between 2007 and 2008, is gathering funds for a hedge fund and handled portfolios intended to yield significant earnings during market downturns, and benefit from bets on both escalating and declining stocks during more stable times.

The concept for the new fund was conceived when the company devised an artificial intelligence model capable of analyzing massive amounts of public data. This allowed the identification of Asia-Pacific businesses at a high risk of failure due to perilous activities like excessive borrowing, asset-liability discrepancies, or even blatant fraud, according to Diggle. The equity portfolio will also include individual stocks or indexes as optimistic bets.

Eight forty-seven

Dramatic fluctuations in stock markets of Hong Kong and mainland China

Diggle is making his most significant move into volatility trading, following the shutdown of his former company, Artradis Fund Management, in March 2011. The hedge fund firm, which was based in Singapore at the time, saw its assets surge to almost US$5 billion in 2008. This was primarily due to profits made from wagering on market crashes and banking issues. However, it eventually succumbed to market changes caused by an unexpected intervention by the central bank.

"There are more fault lines present today, and the likelihood of an issue arising is considerably higher, yet the cost of risks has reduced," stated Diggle, likening the situation to the period of relaxed financial policies experienced over a decade ago. "Thus, our current circumstances parallel those we faced from 2005 to 2007."

The stock markets in Shanghai and Shenzhen are attempting to attract foreign investors following their poorest opening since 2016. The markets held meetings with representatives from 16 international fund managers and investment banks, hoping to gain their insights to revitalize the market.

The leading pair of Chinese stock exchanges convened with delegates from international investment firms and banks. This comes as authorities are exploring methods to boost confidence among foreign investors following the market's most dismal commencement of a year since 2016.

The attendees proposed an increase in briefings about Chinese regulations and international promotional events by leading businesses. This would aid overseas investors in gaining a deeper comprehension of the economic swings and publicly listed companies, according to the declarations.

8:47 AM

Extreme fluctuations in stock markets of Hong Kong and mainland China

UBS predicts that China will eliminate surplus solar-panel capacity by 2027. Reductions in production from major participants and government-imposed restrictions on new facilities will aid in correcting the imbalance, according to an analyst.

UBS suggests that by eliminating surplus production within the next two years and imposing restrictions on new factories, along with consensus among providers, China's solar panel manufacturing sector could regain balance as soon as 2027.

The Swiss investment bank predicts that supply will begin to decrease annually by 7% from 2024 to 2026. This is a stark difference from the 70% yearly increase observed from 2021 to 2023, according to analyst Yan Yishu, who stated this during a webinar on Monday. Yan Yishu estimates that China has approximately 1,200 gigawatts (GW) of solar photovoltaic manufacturing capacity, which is double the market demand.

Beijing has implemented rules to control the growth of new infrastructures by increasing the minimum capital necessities and restricting their usage of energy and water. The administration also reduced export tax rebates from 13 per cent to 9 per cent on solar products, aiming to accelerate industry amalgamation and alleviate trade disputes.

"She stated that the revival of the industry will be spearheaded by the government and businesses from the supply side. As soon as the top businesses decide to cut down on their production, the total capacity will rapidly decrease," she added.

In order to address the disparity between supply and demand, more than 30 of the top competitors consented last month to reduce output during the yearly gathering of the China Photovoltaic Industry Association. They committed to sticking to future production limits and to stop excessive price reductions to curb losses across the industry.

The Asia-Pacific loan market is set for a robust recovery in 2025, driven by a wave of mergers and acquisitions. The loan volumes in this region hit a high of US$164 billion in the last quarter of 2024, marking the best performance in the last three years.

Loan activity in the Asia-Pacific region, excluding Japan, is poised for a recovery this year. This resurgence is motivated by merger and acquisition movements and a conducive rate landscape, following a three-year continuous decline.

In the last quarter of 2024, the area reported loan volumes of $164 billion, making it the best fourth-quarter outcome in three years, based on data gathered by Bloomberg. This trend indicates a promising beginning for 2025, possibly overturning a three-year drop from the highest yearly total of $672.5 billion in 2021.

"Andrew Ashman, the head of loan syndicate for Barclays Bank in the Asia-Pacific region, expressed that the steady rate forecast along with the end of election periods in numerous key economies will stimulate corporate assurance. This will, in turn, catalyze mergers and acquisitions as well as capital expenditure actions. He predicts a considerable increase in financing volumes."

The value of the asset class' loans for 2024 dropped by 4.6% to US$590 billion in the Asia-Pacific region, excluding Japan. This is the lowest annual total since 2020, according to the data.

The set of potential deals for 2025 is already being established. In Australia, a takeover of the car leasing company SG Fleet Group by Pacific Equity Partners is being supported by an A$800 million (US$497 million) buyout loan, which is expected to kick off this quarter. Meanwhile, Peabody Energy, a US coal company, has plans to refinance a US$2.1 billion bridge facility in the first half of the year, which will fund its purchase of Anglo American's steelmaking coal mines.

Reliance Industries in India is attempting to secure a loan of up to US$3 billion, which could potentially be the country's largest loan since 2023. Meanwhile, Shriram Finance is exploring the possibility of syndicating a portion of a US$1.28 billion multicurrency social financing, marking the largest offshore transaction from an Indian shadow lender to date. In other news, Marina Bay Sands is potentially setting a new record in Singapore by promoting a facility worth up to S$12 billion (US$8.8 billion).

Trina Solar from China has established a new global achievement in solar conversion technology. The firm's solar module has surpassed a longstanding efficiency record for solar cells, previously held by the University of New South Wales laboratory.

Trina Solar from China has established a new global benchmark for the conversion effectiveness of a specific kind of solar panel, the firm reported on Monday.

In lab experiments, Trina's n-type fully passivated heterojunction (HJT) modules, which have a sizable surface area, demonstrated an efficiency of 25.44 per cent. These findings have been authenticated by the Fraunhofer CalLab in Germany, an organization that specializes in solar research.

Passivation is a technique used to conceal flaws on a solar cell's surface, whereas cell efficiency is the proportion of solar power received by a device that gets transformed into practical electricity. Enhancing cell efficiency can aid in minimizing the space required for solar setups and in reducing expenses.

Professor Martin Green, from the University of New South Wales in Sydney, whose research lab has maintained the record for solar cell efficiency for many years, has indicated that the recent output demonstrates the promise of HJT solar technology. This is one of the many technologies vying to be the leading future technology in the industry.

"Ultimately, it all boils down to efficiency. Even if certain processes are currently more expensive, the trend is that as the industry adopts new technology, the costs tend to drop fairly rapidly," stated Green.

Goldman Sachs suggests China to prioritize fiscal stimulus over policy relaxation to boost share prices. The US investment bank asserts that government expenditures and demand-side strategies yield more substantial effects on equity returns compared to monetary relaxation.

Goldman Sachs suggests that China could benefit from taking a leaf out of history's book and focusing more on fiscal strategies rather than reducing interest rates to stimulate stock market growth. This follows Goldman Sachs' increase of its objectives for Chinese stocks in November.

According to a study from a US investment bank, financial strategies involving government spending and demand-related actions have traditionally had a more significant influence on the returns of Chinese stocks compared to monetary relaxation policies.

The bank confirmed that this pattern has been consistent since 2016, drawing parallels between steps such as resuming operations post-Covid-19 outbreak and the stimulus plans that stimulated stock market surges.

From the end of September onwards, China has implemented a range of strategies to stimulate their slow economy. This includes reducing the barriers to buy properties, exchanging municipal government debt, and providing subsidies to increase consumer spending. These initiatives led to a surge in the stock market, with the CSI 300 Index, which represents the largest domestic stocks, experiencing a 21 per cent rise in September – a record-breaking monthly increase not seen in nearly ten years.

The MSCI China Index, which includes 581 Chinese stocks from both domestic and international markets, experienced a significant rise from 58 to 76 in the early part of October. However, by Monday, it had slightly decreased to around

The report, published on Monday, suggests that the significant ups and downs witnessed in the market recently are largely due to shifts in investor expectations. These shifts pertain to when, how large, and how detailed the expected fiscal stimulus announcements will be in different policy discussions.

TikTok broadens its e-commerce business to Mexico despite possible prohibition in the U.S

The geographical growth of TikTok Shop beyond the U.S demonstrates its resilience against the 'sell-or-ban' legislation from Washington.