The appeal for the 'old money' aesthetic is on the rise in China, as the flashy extravagance of the newly wealthy is being disregarded during an economic downturn. Whether you refer to it as old money style or understated luxury, the enduring appeal of minimalist design and simplicity continues to captivate Chinese consumers.

Few sectors of China's economy have successfully navigated the downturn following the pandemic. The real estate sector continues to struggle and banking loans have dwindled. However, the charm of "vintage style" has managed to survive, despite the economic decline in consumer expenditure.

Conversations about defining the fashion style and how to emulate it are gaining popularity on well-known social media sites, such as Douyin and Xiaohongshu. Products labeled with this style, which include jumpers and belts priced as low as 20 yuan (US$2.70) to high-end European brands that embody the look, are inundating online shopping sites and experiencing rapid sales.

Brunello Cucinelli, a renowned Italian label often associated with traditional wealth visuals, has recently upgraded its sales growth forecast in China to potentially 12 per cent. Meanwhile, Ralph Lauren experienced a 13 per cent increase in China during the last quarter, following an impressive 25 per cent surge in 2023.

This approach, which prioritizes simplicity in design and high-grade materials, garnered international attention in 2023, partly due to the influence of the TV drama Succession, which depicts the family controlling the biggest entertainment conglomerate in America. Its popularity in China indicates a move towards a more understated way of life, valuing excellence and straightforwardness in the face of uncertainty, according to experts.

"This is in line with today's customer perspective," stated Jason Yu, the general manager at CTR Market Research. "In this day and age, individuals are not keen on being overly showy. They would rather maintain a subdued profile, indirectly displaying their preferences and fashion sense in a manner that doesn't attract attention."

"He further stated that it doesn't imply one must purchase exclusively high-priced products, as numerous budget-friendly brands are also embracing this trend."

The allure of vintage wealth style in China strikingly contradicts the grim economic conditions where families are frugally saving and stashing away money at an unprecedented rate for unforeseen circumstances. In November, retail sales in Beijing and Shanghai, two of the richest and biggest cities on the mainland, experienced a decline of approximately 14 percent.

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Despite the enhanced living conditions in Hong Kong, a growing number of its residents are expressing a desire to relocate to mainland China.

Bankers predict a significant increase in Hong Kong's IPO market in 2025 due to regulatory advantages and favorable interest rates. Deloitte, which has been tracking the city's IPO data since 2011, projects a 71% rise in Hong Kong's IPO volume to hit US$19.3 billion in 2025.

"The general outlook for the IPO market in 2025 is expected to get better for a number of reasons," stated John Lee Chen-kwok, who is the vice-chairman and co-head of Asia coverage at UBS. He attributed the constant reduction of the interest rate cycle as beneficial for equity markets, along with the robust backing from regulators in terms of listing reforms. They are also promoting mainland China A-share firms to opt for H-share listing in Hong Kong.

The Swiss investment bank secured the highest position in the Hong Kong IPO bookrunners' rankings among global banks this year, holding a market share of 6.75%, based on statistics from the London Stock Exchange Group.

"Companies listed on the A-share already possess a set of shareholders," stated Lee. "Considering it from the point of view of listing in Hong Kong, it will be simpler than for companies that are not listed."

Shares in Hong Kong experience a weekly increase due to expectations of policy changes following disappointing Chinese industrial data. Official figures revealed a 7.3% yearly decline in earnings for Chinese industrial firms in November, marking the fourth straight month of such a downturn.

The Hang Seng Index experienced a minor drop of less than 0.1 per cent, ending at 20,090.46 at the closing bell, which reduced the overall profit for the shortened trading week to 1.9 per cent. Meanwhile, the Hang Seng Tech Index saw an increase of 0.7 per cent.

On the mainland, there was a 0.2 per cent decrease in the CSI 300 Index, while the Shanghai Composite Index saw a slight increase of 0.1 per cent.

Consumer businesses like Haidilao International Holdings and China Mengniu Dairy saw a decrease due to worries that a drop in consumer spending could negatively impact profits. Alibaba Group Holding also experienced a fall after deciding to collaborate on an e-commerce project in South Korea.

Profits of industrial firms in China dropped by 7.3% compared to the same period last year, marking the fourth month in a row of such decline, according to the National Bureau of Statistics' announcement on Friday. From January to November, the net income experienced a 4.7% decrease, the Bureau noted.

The information further supports the notion that China must enhance its policy execution to assist a fluctuating recovery, following leading authorities' indication of more vigorous relaxation at a pivotal economic work meeting earlier this month.

Significant financial figures for November revealed a lack of progress in retail sales growth and a continued decline in the real estate market.

CATL from China is strategizing to list in Hong Kong to strengthen its global control in the EV battery market. The battery manufacturer's share offering strategy, currently listed in Shenzhen, is awaiting the green light from regulatory bodies and its shareholders.

Contemporary Amperex Technology (CATL) of China, the leading global manufacturer of batteries for electric vehicles (EVs), is pursuing a dual listing in Hong Kong with the aim to expand its international footprint and enhance its overall competitive edge.

The firm disclosed its strategy in a document following the board's endorsement on Thursday. The plan is awaiting sanction from authorities such as the China Securities Regulatory Commission and its shareholders, who are scheduled for a meeting on January 17, as per the announcement.

Shares of CATL listed in Shenzhen experienced a drop of up to 2.4 percent but ended Friday's market day with a slight increase of 0.3 percent, closing at 262.00 yuan. The stock's value has surged upwards by over 67 percent within this year.

CATL announced that it would select a suitable time and opportunity to complete the public offering within 18 months or the extended period agreed upon post shareholder approval. They emphasized that this decision would be made with meticulous regard for the current shareholders' interests and the status of both domestic and international capital markets.

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Swap stations in China have the ability to automatically replace batteries in electric vehicles.

The electric vehicle battery titan is the newest entrant among an increasing group of Chinese firms intending to go public in Hong Kong. Experts in deal-making predict this trend will significantly boost the city's IPO activities next year, thanks to enhanced regulatory backing.

Pharmaceutical company Jiangsu Hengrui Pharmaceuticals and food company Foshan Haitian Flavoring & Food, both listed in Shanghai, are also considering listing here.

CATL from China aims to list in Hong Kong to strengthen its international lead in the EV battery market. The battery manufacturer, listed in Shenzhen, is awaiting consent from both regulatory bodies and shareholders for its proposed share issuance.

Contemporary Amperex Technology (CATL) from China, the biggest manufacturer of batteries for electric cars worldwide, is attempting to get listed in Hong Kong for a second time. The aim is to boost its international visibility and enhance its competitive edge.

The firm disclosed its strategy in a document following the board's endorsement on Thursday. The suggested plan awaits the green light from authorities such as the China Securities Regulatory Commission, along with stockholders, who have a meeting scheduled for January 17, as per the statement.

Shares of CATL listed in Shenzhen experienced a drop of up to 2.4 per cent, but ended Friday's market session up by 0.3 per cent at 262.00 yuan. The stock has seen an increase of over 67 per cent within this year.

CATL communicated that it would select a suitable time and issue window to finalize the public offer within 18 months or the extended period agreed upon following the consent of the shareholders. This decision would be made after carefully considering the interests of current shareholders and the state of both domestic and international capital markets.

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Battery replacement stations in China can automatically switch out batteries in electric vehicles.

The electric vehicle battery titan is the newest addition to an increasing group of Chinese businesses intending to go public in Hong Kong. Experts in the field predict this trend will greatly boost the city's IPO output in the coming year, thanks to enhanced regulatory backing.

Jiangsu Hengrui Pharmaceuticals, a drug manufacturer listed in Shanghai, and Foshan Haitian Flavoring & Food, also listed in Shanghai, are both considering listing here too.

The surge in Bitcoin slows down as the market prepares for the termination of crypto derivatives. Bitcoin, along with its lesser competitors, is finding it difficult to gain momentum, following its notable rise to an unprecedented peak last week.

The most significant token was traded at a price of US$96,200 as of 2pm Friday in Hong Kong, partially recovering from a nearly 3 per cent drop from the previous day. Lesser competitors such as ether and dogecoin, which are popular among meme enthusiasts, fluctuated within narrow limits.

The cryptocurrency market is also preparing for a significant amount of bitcoin and ether options contracts to expire on Friday. This event is one of the largest of its kind in the history of digital currencies, as stated by leading broker, FalconX.

The hypothetical worth of bitcoin contracts on the Deribit exchange, a major platform for digital asset derivatives, surpasses $14 billion, with the comparable value for ether standing around $3.8 billion.

Arbelos Markets' trading director, Sean McNulty, highlighted the potential for a turbulent market due to the expiration of derivatives positions.

The housing market in Hong Kong experienced a split in November as lower-interest loans encouraged renters to become homeowners. Existing home prices saw a slight increase for two consecutive months, while rental prices decreased, based on official figures.

The value of occupied houses experienced a slight increase for two consecutive months, with November seeing a minor rise to 290.9 from October's 290.7, as reported by the Rating and Valuation Department. Throughout the first 11 months of the year, the cost of homes declined by 6.55%, marking a 27% drop from the highest recorded price in September 2021.

Lease prices experienced a decrease for the second consecutive month, falling by 0.36% to reach the lowest level in five months at 193.1, following a 0.7% decline in October. Yet, rental rates have seen an overall increase of 3.8% during the first 11 months of the year.

Eddie Kwok, the executive director for valuation and advisory services at CBRE Hong Kong, stated that housing costs have leveled out following a five-month decrease. He further noted that a more definite projection for residential prices is expected to surface following the Lunar New Year celebrations next month.

"Ever since the U.S. Federal Reserve initiated its cycle of decreasing interest rates in September, the mean monthly residential transaction volume for October and November soared to 5,498, exceeding the average transaction volume observed from 2017 to 2021," commented Kathy Lee, the research lead at Colliers Hong Kong.

In the face of the US-China tech dispute: Shanghai plans to become the world leader in medical AI by 2027

Even with the US restrictions on exporting high-tech chips, China's economic giant is heavily investing in medical AI.

The city is striving to become a world-renowned hub for medical AI by 2027, as announced by the local government earlier this week. The biennial work plan outlines tactics such as enhancing cutting-edge research and developing clusters of computing power and biological data platforms.

Shanghai aims to address tech-related issues in fields such as large-scale models and processing capabilities, as per the plan. The city also plans to enhance the use of AI in sectors like clinical healthcare and conventional Chinese medicine, as stated by the local authorities.

Chinese corporations and research bodies are delving into the application of AI in the health sector, keeping pace with the swift advancement of technologies like large language models (LLMs). These technologies are the basis for generative AI services, like ChatGPT, offered by the American start-up, OpenAI.

Shanghai's plan indicates that substantial AI models have the ability to propose diagnosis and treatment strategies by analyzing clinical data and patient medical histories. Additionally, this technology can enhance platforms that offer consultations on traditional herbal medicine, as stated by policymakers.

Chinese newcomer DeepSeek has unveiled an AI model that surpasses the performance of offerings from Meta and OpenAI. The V3 model by DeepSeek underwent training for a period of two months, amounting to a total cost of $5.58 million. Notably, it required considerably less computational resources compared to its competitors.

"Open weights" is a term used when only the pre-established parameters or "weights" of an AI model are made available. This allows external parties to utilize the model just for inference and refinement purposes. However, information such as the model's training code, initial dataset, structural details, and training approach are not supplied.

Analysts predict a slowdown in the launch of new high-end electric vehicles by Chinese manufacturers due to low consumer interest. They foresee the pace of the luxury EV market easing up next year, given the reduced demand and shrinking cash reserves.

Following the early victories of Chinese electric vehicle (EV) producers, who managed to gain a foothold in the luxury market previously ruled by BMW and Mercedes-Benz, market analysts are predicting a decline in sales of upscale models next year. This is due to a slump in demand and decreasing cash reserves.

Shenzhen Denza New Energy Automotive, a joint electric vehicle project between BYD and Mercedes-Benz, unveiled the 2025 model of its D9, a high-end multipurpose vehicle (MPV), in Shenzhen on Thursday.

The model, featuring BYD's BAS 3.0+ cutting-edge driver assistance system, comes in five hybrid options that can be plugged in, and three purely electric versions. The price ranges from 339,800 yuan (equivalent to US$46,555) to 469,800 yuan. Denza claims to have made over 300,000 sales of the D9 model since its introduction in 2022.

Figures from China's premier car website, Autohome, pointed out that D9's monthly sales suffered a dip in July, August, and September compared to the same period from last year. The third-quarter financial statement of BYD revealed that Denza's total sales had decreased by 14 per cent from the previous quarter.

Phate Zhang, the founder of CnEVPost, a Shanghai-based electric car data provider, believes that by 2025, car manufacturers will likely reduce the release of new high-end models and instead concentrate on improving their current models.

Growth within this market sector is quite challenging. This, along with the general decline in the electric vehicle market, has resulted in significant difficulties for luxury electric vehicle models in terms of sales this year.

The high-end electric vehicle sector, valued between 200,000 and 300,000 yuan, has become a competitive arena for Chinese auto manufacturers seeking to enhance their brand reputation and broaden their clientele.

The GenAI industry in China is gaining momentum, with an increase in LLM filings being noted in Beijing. The most recent registrations of GenAI services in Beijing comprised of substantial language models from Zhipu AI and Rigo Design, an associate of Xiaomi.

The Beijing branch of the CAC has reportedly given approval to a total of 105 LLMs up until Friday, according to their statement

Beijing has been the leader in China for authorizing LLMs. The CAC's data shows that over 309 GenAI items created by local tech firms have been given the green light for their LLMs up until November. Beijing topped the list with 96 approvals.

Could stars such as Chow Yun-fat from Hong Kong secure buyers for their high-end residences in 2025? Derek Chan from Ricacorp predicts a potential 5% increase in the prices of luxury properties next year, which is expected to coincide with a similar rise in rental rates.

Famous personalities such as Chow Yun-fat may have been compelled to cut down the costs of their lavish residences at The Peak, the most prestigious residential area in Hong Kong. However, experts are of the opinion that the downturn has hit rock bottom and there will be a resurgence in demand for upscale homes next year.

The just-concluded yearly gathering of China's main economic work committee, led by President Xi Jinping, suggested a more assertive and daring approach to policy easing to steady the country's real estate and stock markets in the coming year. This is likely to enhance trust in the city's property sector, according to sources.

"Derek Chan, the research leader at Ricacorp Properties, predicts a positive outlook for the high-end property market in 2025, stemming from a general bounce-back in the real estate industry. He adds that the projected overall economic growth in Asia and the continuous economic betterment in Hong Kong are factors that may boost the property market in the upcoming year."

Chan anticipates a surge in luxury real estate prices by up to 5 per cent in the coming year. Likewise, he predicts a comparable increase in rental rates for upscale properties.

Other market analysts have expressed similar views.

Martin Wong, who is the senior director and head of research and consultancy for Knight Frank in Greater China, also predicted a likely enhancement in transactions.