Stocks in Hong Kong are climbing, reducing the weekly deficit, as the future economic growth of China appears promising. An analyst notes, 'We are of the opinion that the assurance of Chinese homebuyers in the real estate market has significantly strengthened.'

Indices on the mainland also saw an increase. The CSI 300 Index rose by 0.7 per cent, while the Shanghai Composite Index gained an additional 0.6 per cent.

Promising indications for the economic sector have been noted as pre-sales of residences in 30 major Chinese cities saw a 22% boost from a solid foundation set in the preceding week, as per financial information supplier, Wind. The surge was primarily driven by first-tier cities, where sales shot up by 27% in the last week, as depicted by the data. A nationwide sales leap of 58% was recorded in the week before on a week to week comparison.

A drop in US Treasury yields, which had previously been pushed higher due to dwindling expectations of a significant reduction in interest rates and increased chances of Donald Trump's presidential victory, also sparked buying enthusiasm.

"Considering the determination of policymakers to rescue the real estate market with a host of robust initiatives introduced since the end of September, we're convinced that the confidence of Chinese homebuyers in the property market has significantly strengthened," stated Raymond Cheng, the Managing Director at CGS International Securities in Hong Kong. "We anticipate that monthly industry sales in the last quarter will show an increase compared to the previous year. By 2025, we predict that industry sales might experience the first positive annual growth since 2022."

Performance of TSMC's Arizona chip factory surpasses those in Taiwan, enhancing US efforts

The initial production output at Arizona's first TSMC factory has exceeded that of comparable plants in Taiwan, according to a high-ranking official.

The percentage of functional chips produced at TSMC's Phoenix facility is approximately 4 percentage points greater than similar facilities in Taiwan, as shared by Rick Cassidy, the head of TSMC's US division, during a webinar on Wednesday, based on information from a participant. The production success rate, often referred to as the yield, is a vital metric in the semiconductor sector as it dictates if the substantial expenses of establishing a chip plant can be recuperated.

A spokesperson from TSMC chose not to directly address Cassidy's event, instead pointing to comments made by CEO C.C. Wei during a recent call with investors.

"In April, our initial factory started manufacturing engineering wafers using 4-nanometer process technology, and the outcome has been extremely positive, producing a high yield," he stated then. "This marks a significant operational achievement for TSMC and our clients, showcasing TSMC's robust production capacity and implementation."

Prominent Chinese fund manager invests in Alibaba and alcohol-related stocks for investor yields. Zhang Kun from E Fund Management anticipates substantial profits and dividends from tech and consumer stocks.

As of the end of September, the fund had invested 4 billion yuan (equivalent to US$561.4 million), which constituted 9.1% of the fund's total assets, according to the announcement. The fund's mid-year report indicated that Alibaba wasn't included in Zhang's portfolio in June.

"We've noticed that the dividend yields of major consumer companies are some of the highest in the market, even exceeding those on the dividend indexes," stated Zhang in the report. "When taking into account all components of shareholder returns, such as buy-backs and dividend payouts, several top technology and consumer stocks provide extremely high returns, whether measured on an absolute or relative basis."

Zhang is recognized for his approach to value investing and the substantial amount of funds he oversees. His premier offering is the Blue Chip fund, worth US$6.2 billion.

The fund accomplished a 15.1% yield in the previous quarter by implementing a strategy of investing in Alibaba and other big-cap stocks such as the Chinese alcohol manufacturer, Shanxi Xinghuacun Fen Wine Factory. This outperformed the 12% increase of a tailor-made benchmark, created specifically to measure the fund's performance. The benchmark includes shares listed in Hong Kong, onshore stocks, and bonds, as per the quarterly report.

Apple's CEO, Tim Cook, had a meeting with China's Minister of Commerce, marking his second interaction with a regulator this week. Wang Wentao, the Commerce Minister, expressed his enthusiasm for Apple to further immerse itself in China's market. In response, Cook reaffirmed Apple's dedication to the market.

Wang Wentao, the Chinese Commerce Minister, during his interaction with Cook, encouraged Apple to leverage the opportunity and enhance its presence in the Chinese market, as per the ministry's statement released on Friday. He emphasized that the economic collaboration between China and the US, which is mutually advantageous, is beneficial for both nations. He also pointed out that exaggerating the national security concerns could hinder regular economic and trade interactions.

During the meeting, Cook referred to China as a significant market and a crucial partner in Apple's supply chain, according to the statement. He further mentioned that Apple would persist in its investments in Chinese supply chains. Cook also expressed that Apple would maintain its role as a connecting link between China and the US, particularly in economic and trade matters.

Apple Intelligence, a collection of generative AI (GenAI) services, is set to roll out shortly in specific nations, excluding China. This is due to the necessity of obtaining a license from Beijing before any such software can be publicly launched. As of August, China has greenlit 188 GenAI services for its citizens, all of which are designed by domestic companies.

Real estate in Hong Kong: Sun Hung Kai, Wheelock, and CK Asset place offers for a piece of land in Sha Tin

The plot, known as STTL 625, covers an area of 5,652 square metres and is capable of accommodating up to 570 units.

Leading property developers in Hong Kong have put in their offers for a government land auction in the New Territories. However, specialists anticipate a tepid reaction due to an abundance of existing properties and escalating building expenses.

The bidding for the sole residential property available for purchase in the second quarter of this fiscal year ended at midday on Friday. The Department of Lands confirmed that they had gotten a total of six offers.

Five developers have acknowledged putting forward proposals – these include Sun Hung Kai Properties (SHKP), Wheelock Properties, Chinachem Group, CK Asset Holdings, and Sino Land.

The location, referred to as STTL 625, positioned at the intersection of Sha Tin Wai road and Siu Lek Yuen road, spans across 5,652 square meters (60,837 sq ft). It has the capacity to accommodate up to 570 units.

"The interest in the auction was somewhat tepid," remarked Kathy Lee, the lead investigator at Colliers. "A significant problem is that many developers are still sitting on a large amount of property and their main focus is on selling what they already have. Coupled with the steep expenses involved in building, a handful of developers are wary about bidding on new locations."

Midland Surveyors have assessed the property's worth at around HK$1.07 billion, using a land premium measure of HK$3,500 per square foot as their basis for calculation.

Hong Kong records three home sales worth millions within a week as affluent purchasers are making a comeback. Two significant transactions were noted in Mid-Levels, with another one listed in Happy Valley.

DBS Bank (Hong Kong) CEO, Sebastian Paredes, spent HK$49.4 million to acquire a three-bedroom apartment measuring 1,249 square feet at The Aster, located in Happy Valley, as per Land Registry documents. The buying price is over double the amount the previous owner paid for the same property in 2011.

In the meantime, Ngai Lun Limited was listed as the purchaser of a 3,335 square foot apartment in Grenville House, also located in Mid-Levels, for a price of HK$114 million. According to official papers, Zhang Jinglin, who holds a Hong Kong ID, is recorded as the director of Ngai Lun. The property was last sold in 2012 for HK$90 million.

The program was reestablished in March following its suspension in 2015. This was due to the fact that real estate acquisitions by new immigrants were causing a significant increase in domestic property prices.

Shein's earnings are reportedly plummeting by 70% as competitors Temu and Zara threaten its leading position. The decelerating profit increase is becoming a burden on the company's ambition to launch publicly in London.

The income increase for the Singapore-based firm decelerated to 23 per cent within the timeframe, a drop from the 40 per cent observed in the entire year of 2023. Earnings fell under US$400 million, as per the report from The Information, which quoted anonymous informants.

The figures indicate a substantial slowdown compared to the previous year, during which the firm boosted its earnings over two-fold, hitting a record peak of over US$2 billion, as reported by the Financial Times in March.

Shein, a privately owned company, keeps its financial information confidential and does not share it with the general public. The company did not provide an immediate response to a comment request made on Friday.

Should the decrease in earnings growth be verified, it would introduce additional ambiguity to Shein's initial public offering (IPO) strategy, already complicated by regulatory challenges. The company is gearing up for a listing in London and has been in discussions with potential investors. This comes after an initial strategy to go public in New York was scrapped due to resistance from US legislators.

Chinese Electric Vehicles: Geely's Zeekr debuts MPV targeting middle-income families

Zeekr refers to its Mix MPV as a 'smart mobile living space'

"Zeekr has no interest in imitating its rivals by producing comparable electric vehicles," declared CEO An Conghui during a product unveiling event in Hangzhou on Wednesday. "Zeekr prides itself on its innovation in creating top-tier cars for the future of transportation."

Zeekr referred to its MPV as a "smart mobile living space".

"The Mix, a five-passenger multipurpose vehicle, aims to attract clientele from both existing all-electric vans and Tesla's Model Y," commented Eric Han, a high-ranking official at Suolei, a consulting company based in Shanghai. "High-end SUVs and multipurpose vehicles are profitable markets where major industry figures pour significant resources into research, development, and advertising to vie for dominance."

A Multi-Purpose Vehicle (MPV) usually comes with seven seating options, making it a suitable choice for families with multiple children. These MPVs, often referred to as minivans, are considered commercial vehicles in China. The versions designed for carrying passengers are generally targeted towards affluent families who are ready to invest a minimum of 300,000 yuan on a car for their family.

Jake Sullivan, U.S. National Security Advisor, states that tariffs on China are essential due to their trading behaviors. He supports specific tariffs, while Donald Trump advocates for increasing them to 60% on all Chinese imports.

Jake Sullivan, the US National Security Adviser, stood up for the Biden administration's approach to China and overall foreign policy plans on Wednesday. This comes as the White House is nearing the final weeks leading up to the election of a new president, who will assume office in January.

Addressing the audience at the Brookings Institution in Washington, Sullivan endorsed the government's decision to maintain the tariffs on China, initially set by Donald Trump, and its strong opposition to Beijing's diplomatic and economic approaches.

With November 5 quickly approaching as Election Day – and early voting already underway – Trump, who is the current Republican candidate aiming for another term, and his Democratic opponent, US Vice-President Kamala Harris, are actively promoting their respective economic strategies.

Though Harris advocates for policies that favor the middle class and regulate expenses, she hasn't extensively expressed her position on tariffs. However, last month she described Trump's suggestion as a "sales tax on the American citizens".

Sullivan, who works alongside Harris at the White House, contended on Wednesday that Biden's strategy towards China signifies a revival of a longstanding American foreign policy tradition, one that is fundamentally rooted in the notion of "properly comprehended self-interest".

Moody's predicts a hit to earnings for Hong Kong developers CK Asset, Sun Hung Kai, and Swire

According to Moody's, the sectors of office and retail real estate are expected to continue facing challenges

Moody's anticipates the office and retail real estate sectors to stay under strain.

Analysts from both S&P and Morningstar also share the rather pessimistic forecast.

The agency predicts a 5% drop in total earnings before interest, taxes, depreciation, and amortization for the entire year of 2024, with the levels projected to stay consistent in 2025. This follows a 7% decrease in 2023, as stated in their Wednesday report.

Specifically, the company stated that the sectors of office and retail real estate are anticipated to continue facing challenges, despite predictions of the housing market reaching a level of stability.

Horizon Robotics' value surges by 28% in its initial appearance in Hong Kong, signalling a significant week for IPOs and raising funds. The shares of the tech company, located in Beijing, started trading at HK$5.12, compared to the initial public offering cost of HK$3.99.

Trading under the ticker 9660, the technology firm's stocks debuted at HK$5.12, marking a 28 per cent surge from its IPO value of HK$3.99. However, by the end of the day, the stocks only managed a slight increase of 2.8 per cent, settling at HK$4.10. This was in line with a general downtrend witnessed in tech stocks in Hong Kong. The Hang Seng Tech Index registered a dip of 2.6 per cent on that Thursday.

"Finalizing our IPO in Hong Kong signifies a crucial move in our expansion into the international market," stated Chairman and CEO Yu Kai prior to the traditional gong strike. "We plan to boost our investment in exploration and maintain our dedication to advancements to generate worth for our users, and enhance safety and quality of travel for all."

The initial public offering (IPO) of Horizon drew interest from retail investors in Hong Kong and global funds 33.8 and 13.8 times its allocated shares respectively. This high demand could potentially prompt the company to consider selling an extra 203 million shares. That move could boost the IPO's earnings up to $800 million.

SK Hynix, a provider for Nvidia, reports unprecedented earnings, surpassing Samsung in the sales of AI chips. The global runner-up in memory chip production exceeded predictions in its third-quarter financial results.

The second largest producer of memory chips globally announced an operating profit of 7 trillion won (equivalent to US$5.07 billion) for the period between July and September, a significant improvement from a loss of 1.8 trillion won they experienced the previous year.

This is in contrast to the 6.8 trillion won average prediction by LSEG SmartEstimate, which leans towards analysts with a higher accuracy track record.

SK Hynix announced that HBM sales have significantly increased, rising over 70% since the last quarter and skyrocketing by over 330% compared to this time last year.

SK Hynix anticipates that HBM sales will constitute 40% of its total DRAM earnings in the last quarter, a rise from the previous quarter's 30%. The company also forecasts an increase in the demand for memory chips for AI servers in the coming year, as international tech firms persist in advancing generative AI.