Candid economist Gao Shanwen departs his financial company in Hong Kong: insider information

Gao's authorization in Hong Kong expired last month, and he has ceased his employment at a city-based financial establishment, as per SFC documents.

Gao left his position following his inquiries about China's official economic expansion records last month.

The Securities and Futures Commission (SFC) website indicates that Gao's permit to provide investment guidance as a representative for SDICS International Securities (Hong Kong) expired on December 31.

Gao is unable to perform any investment consultation services in Hong Kong since he doesn't have a principal, indicating he isn't employed by a finance company supervised by the SFC, as per the regulator's online information. Gao obtained his license in May 2012.

Gao's license became invalid due to his resignation from a financial company in Hong Kong, as per an individual in the know. This person also mentioned that Gao remains a part of the mainland branch of SDIC Securities, a finance company headquartered in Shenzhen.

SDIC Securities remained unresponsive to an email request for information, and there was no possibility to establish contact with Gao for his remarks.

During an investors' gathering in Shenzhen in December, he mentioned that China's economic growth numbers have been exaggerated by 3 percent each year for the last few years.

Huawei integrates WeChat into HarmonyOS, a crucial move to compete with Android and iOS in China. The Chinese firm, which has been sanctioned by the US, is aiming to host 100,000 apps on its independently created mobile operating system this year.

WeChat, boasting 1.38 billion monthly active users, has turned into a vital digital platform for users in mainland China. This makes it crucial for Huawei's ambition to challenge the prevailing market control of Google's Android and Apple's iOS in its local market.

In March of last year, Tencent designated a seasoned group to spearhead the creation of WeChat's HarmonyOS version, the firm announced on Wednesday. This group has been responsible for developing different versions of WeChat over time, including the version for Nokia's Symbian mobile operating system.

Huawei has been restructuring its consumer device sector following a significant drop in smartphone sales due to US sanctions. Prevented from using US-based technologies, the Chinese tech powerhouse has redoubled its attempts to lessen dependency on foreign software and hardware.

Alibaba's studio has withdrawn its leading game from Vivo's app store, following Tencent's similar action. This decision has been made in the backdrop of continuous disagreements between Chinese video game firms and smartphone companies over commission rates in the app store.

Lingxi Games, a subsidiary of Alibaba, announced earlier this week that the partnership between the strategy game, Three Kingdoms Tactics, and the Vivo app store has concluded, without providing further details. The game is set to be taken down on March 7, as per the announcement, and players will not be able to access the game via Vivo's app store thereafter.

The studio based in Guangzhou has issued an apology to its players for the disruption. The firm stated that players could request a refund for any game credits they haven't used.

Vivo chose not to provide any comments on Friday. Lingxi, a company that Alibaba took over in 2017, directed the South China Morning Post to a previous statement. The Post is owned by Alibaba.

Debuting in 2019, Three Kingdoms Tactics has proven to be a profitable venture, amassing over US$1 billion within its initial two years on the market. As of last November, it ranked as the eighth top-earning mobile game on Apple's China App Store, contributing to Lingxi's placement as the fifth highest-earning Chinese mobile game company globally, as per information from the analytics company, Sensor Tower.

Commentary | The role of AI bigwigs in facilitating a green energy shift for Asian providers

Companies such as Microsoft, Google, and Nvidia have the potential to fund eco-friendly energy, enhance the renewable energy capabilities of their suppliers, and lobby for improved regulations.

In May of last year, Microsoft reported a surge in its carbon footprint by around 30% since 2020. The tech giant partially blamed this on infrastructure and devices related to artificial intelligence (AI), including data centers and microchips. Then in July, Google disclosed a 48% rise in its emissions over the preceding five years. The company pointed to the unpredictable potential environmental effects of AI as a hurdle to their climate goals.

China's airline industry sees profit following four challenging years

After four financially draining years due to the pandemic, China's civil aviation industry bounced back into the green in 2024, marking the sector's initial profitable return.

In 2024, the sector decreased its deficits by 20.6 billion yuan (approximately US$2.8 billion) compared to the previous year, while also experiencing a 25% surge in overall traffic. This was revealed by Song Zhiyong, the Administrator of the Civil Aviation Administration of China (CAAC), during an industry work meeting on Thursday.

He stated that this decrease was sufficient to pull the industry out of the red.

The primary objectives for civil aviation in 2025 include enhancing profit margins and ferrying 780 million passengers.

According to an article from the previous year, the state news service Xinhua reported that the industry would shift from a rapid rebound following the pandemic to consistent expansion in 2024. The main indicator of success would be a return to profit-making.

Song revealed that the sector surpassed expectations by ferrying a staggering 730 million passengers in the previous year. This was significantly higher than the prediction of 690 million, which was made during an industry meeting at the beginning of 2024.

Apple establishes a data-processing enterprise in Shanghai as their AI initiative in China remains uncertain. Apple's Shanghai division will concentrate on software development, extensive data services, storage services and data handling.

Tejas Kirit Gala, the leader of several Apple divisions in the nation, acts as the legal delegate for the new company. This new firm is fully owned by Apple South Asia, as per information from Tianyancha.

Apple did not provide a prompt response to a comment request on Friday.

Shares of Hong Kong-based developer NWD have taken a hit due to sluggish efforts towards reducing debt. The company's stock has seen a 7 percent dip this year, following a substantial 50 percent decrease in value the previous year.

The firm's stocks have seen a 7 per cent decline since the start of the year, following a loss of over half their worth in the previous year. On Wednesday, the stocks closed at a 2.65 per cent lower rate, at HK$4.78.

NWD, overseen by a wealthy Hong Kong family, has been actively selling off assets in the previous year and asking for leniency from creditors in a bid to recover from the crisis.

HSBC has recognized that leadership has prioritized restoring cash flow, however, significant progress is still not evident, according to a report released on Monday. It is predicted that NWD's stock value will continue to experience instability as investor worries regarding its liquidity haven't been adequately resolved.

The bank stated that NWD's net gearing ratio, which indicates the company's level of debt, has increased to 89 per cent, up from 55 per cent in June.

Indonesia is a prime location for Chinese firms in the logistics and supply chain sectors, according to SF Group. The nation's expanding economy, diverse language skills, and large geographic area make it an attractive option for growth, says the SF division.

The expanding economy of Indonesia, combined with a workforce fluent in multiple languages and an array of business possibilities across a chain of 15,000 islands, is attracting Chinese logistics companies, says a prominent Chinese delivery firm.

"Indonesia holds significant promise in the supply chain sector which could greatly aid its economic development," stated Michael Tung, the Managing Director for Hong Kong and Macau at SF Supply Chain, a company specializing in comprehensive supply-chain solutions for businesses. "Indonesia is a major focus for us. I plan to dedicate significantly more resources to Indonesia than to any other Asian nations."

Tung, who belongs to a division of the SF Holding group, mentioned that Hong Kong has the capacity to assist Indonesia's expansion in various areas such as finance and supply chain management. He further stated that intense domestic rivalry in numerous sectors such as e-commerce has led Chinese companies to explore fresh opportunities for growth in Southeast Asia.

He delivered a speech at the "Think Business: Think Hong Kong" conference in Jakarta, an event coordinated by the Hong Kong Trade and Development Council.

With the "Golden Indonesia 2045 Vision", Indonesia is targeting to increase its GDP twofold in two decades. The objective is to bolster its standing as the largest economy in Southeast Asia. The population is projected to hit 324 million by 2040, which could make it the world's fourth or fifth largest consumer market.

Bridgewater extends its dominance in China with a 40% increase in assets. Its All Weather Plus domestic fund saw returns exceeding 35% in 2024, while lesser local competitors achieved returns ranging from 38.8% to 76.5%.

Bridgewater Associates extended its dominance over worldwide competitors in China last year, as its multi-asset approach's consistent profits drew in more affluent local customers amid a turbulent market.

The Shanghai branch of the company, which focuses on private fund management, has seen its managed assets grow to over 55 billion yuan (US$7.5 billion) as of December 31. This growth is attributed to returns on investments and new capital coming in, as stated by knowledgeable sources who wished to remain anonymous due to the confidential nature of the information. This indicates an approximately 40% increase from the total which was under 40 billion yuan at the beginning of 2024.

The company's All Weather Plus domestic fund yielded returns exceeding 35 per cent for the entire year, as stated by insiders. This was over triple the typical return of 11 per cent from local diversified asset funds, based on data gathered by Shenzhen PaiPaiWang Investment & Management.

Bridgewater chose not to provide a statement.

Bridgewater's strategy of spreading investments across different types of assets is enabling it to defy the pattern in China's hedge fund industry worth 5.2 trillion yuan, which experienced a reduction in total assets up until November due to stricter regulations and volatile stock market fluctuations. Despite many local competitors feeling the need to reduce their fees to retain clients, the local branch of Bridgewater managed to increase their performance fees.

Shares in Hong Kong relinquish increase due to Chinese deflation threat while Tencent breaks 6-day losing streak. Tencent increased its stock repurchases following a HK$477 billion market sell-out over the last six trading days.

On Thursday, the Hang Seng Index experienced a slight dip of 0.2 per cent, falling to 19,240.89, a figure not seen since November 26. This decrease nullified a previous increase of up to 0.7 per cent. In contrast, the Tech Index saw a minor rise of 0.1 per cent, while the Shanghai Composite Index pulled back by 0.6 per cent.

Athletic apparel manufacturer Li Ning plummeted by 5 per cent, landing at HK$15.56, while electric vehicle producer Li Auto saw a 4.4 per cent decrease, falling to HK$87.50. Meanwhile, e-commerce giant Alibaba Group saw a slight drop of 0.4 per cent, settling at HK$80.60.

Tencent managed to curb its losses, improving by 1.1 per cent to reach HK$373.40, thus ending a series of losses partially instigated by the US move to categorize the WeChat proprietor as a Chinese military firm. Similarly, Anta Sports saw a 4.5 per cent increase to HK$78.60, following UOB Kay Hian's announcement of a rise in its retail sales during the previous quarter.

Tencent, ranked third among firms listed in Hong Kong, has invested HK$3.7 billion (equivalent to US$475.6 million) in repurchasing its shares this week, as per exchange filings. This move comes after a six-day plummet that wiped off HK$477 billion from the company's market capitalization.

12:40 PM

What strategies can Hong Kong employ to recover from its almost HK$100 billion shortfall?

Allan Zeman's Lan Kwai Fong Group is set to establish a significant entertainment center in Xian. According to Zeman, the proposed project is gigantic, and it will be the biggest Lan Kwai Fong they've ever built.

The initiative is set to span across 148,000 square metres (equivalent to 1.6 million square feet) located in the Xian High-Tech Industries Development Zone, situated in the city's southwest region.

"The Lan Kwai Fong we envision isn't simply a location with food and drink establishments, clubs and bars," he stated. "We aim to progress, adapting with the times, and we want to spearhead the transformation of entertainment."

The LKF Group reported that the city's advanced technology district was responsible for roughly one-third of its total GDP. It was also noted that this area had an estimated population of around 13 million by the close of 2023.

Charles Li suggests that sovereign funds and family offices consider small business investments as an option. In 2023, Micro Connect consolidated over 11,000 stores and 688 brands in China, distributing a revenue of US$113.2 million amongst investors.

Charles Li Xiaojia, the brains behind Hong Kong's US$24 trillion Stock Connect collaboration with mainland China, expressed a valuable investment suggestion for family offices and sovereign wealth funds: small-scale family businesses across the globe.

The past chief executive of Hong Kong Exchanges and Clearing (HKEX), a stock exchange operator, is considering involving government-controlled funds and family-run businesses in investing in small enterprises through Micro Connect Macau Financial Assets Exchange (MCEX). This platform provides alternative financing options for small businesses in China.

In 2023, Li along with his partner Gary Zhang, initiated MCEX targeted at institutional investors, offering them an opportunity to trade daily revenue obligations, also known as DROs. These obligations provide investors with a portion of the revenue in return for growth capital. The platform has since broadened its reach beyond China, linking up small businesses from areas like Southeast Asia, the Middle East, and North America.

"The forthcoming phase of growth involves broadening our pool of investors, which is why Micro Connect has planned numerous roadshows this year," Li stated during a break at a market forecast seminar hosted by the Bank of East Asia. "A lot of these businesses may be small, however, they boast steady earnings and promising growth opportunities."

MCEX is targeting large sovereign wealth funds interested in diversifying their asset classes by investing a minor portion of their portfolio capital into small enterprises. Additionally, they are focusing on family offices capable of making prompt decisions on such investments, Li mentioned.