Shares in Hong Kong have plummeted to their lowest level in six weeks, wiping out the majority of the 26% surge spurred by Beijing's stimulus injection on November 24. The Hang Seng Index has given up most of the 26.5% increase that was fueled by Beijing's stimulus package on the same date.

On Wednesday, the Hang Seng Index experienced a drop of 0.9 per cent, landing at 19,279.84. This is the lowest it's been since November 26. The majority of the 26 per cent surge, triggered by Beijing's stimulus injection on September 24, has been wiped out. The Tech Index also fell 1.1 per cent, while the Shanghai Composite Index experienced a slight increase of less than 0.1 per cent.

A recent report from the US government indicated an unanticipated increase in job vacancies in November, reaching the highest point in six months. However, hiring appeared to be slowing down. This hints that the employment situation in the US may not compel the Federal Reserve to slash interest rates as frequently as financial analysts on Wall Street have been predicting for the current year.

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Trump does not dismiss the possibility of using military force to regain control of the Panama Canal and purchasing Greenland, invoking China as an example.

"Stocks are currently facing a downturn due to reduced anticipations concerning Fed rate reductions," stated Yan Zhaojun, a researcher at Zhongtai Securities. "The market is also restrained by poor business profits and the unclear extent of China's additional fiscal stimulus."

BrainAurora's shares increased by 3.4% in its initial launch on the Hong Kong stock market, contributing to the city's aspirations to become the leading IPO hub by 2025. The company's closing value stood at HK$3.33, estimating the total worth of BrainAurora at HK$4.22 billion (US$542 million).

Stock values for BrainAurora Medical Technology, a company specializing in medical diagnostics and digital treatments, soared up to 8.4 per cent on their first day on the Hong Kong market, following the completion of the city's inaugural initial public offering (IPO) for the year.

The shares, identified by the 6681 code, started trading at the same price of HK$3.22 and closed at HK$3.33, showing a 3.4% increase by the time the market closed at 4 pm local time. This resulted in the company's total value reaching HK$4.22 billion (US$542 million). At one point, there was a spike of up to 8.4%, bringing the stock price to HK$3.49.

The business's initial public offering garnered interest that equated to 11.4 times the stock set aside for individual investors. These investors were placing their money on the increasingly popular sectors of health and tech. The company was registered following the Hong Kong Exchanges and Clearing's rule known as Chapter 18A. This regulation permits biotech firms not yet making a profit to gather capital from the public.

"Our inclusion in this directory signifies our swift entrance into the global financial market as we join Hong Kong's Section 18A," stated our chairman, Tan Zheng, who initiated the trading day by ringing the bell at the stock exchange at 9:30 AM. Since its introduction in 2018, Section 18A has seen over 60 companies enlist.

Paul Chan suggests that Hong Kong is a 'beneficial' location for IPOs, extending an invitation to Indonesian businesses. According to Chan, firms in Southeast Asia's most densely populated country should view Hong Kong's financial market as an 'appealing and advantageous' platform for securing funds.

Financial Secretary Paul Chan Mo-po stated that Hong Kong has the ability to significantly contribute to Indonesia's economic expansion. He further urged Indonesian companies to consider Hong Kong as an avenue for generating funds and establishing treasury hubs.

Businesses in the most densely populated nation of Southeast Asia are likely to find the capital market of Hong Kong appealing and beneficial for fundraising. This is attributed to its strategic location near mainland China and the extensive nature of the city's stock market, according to Chan. He made these remarks during the "Think Business: Think Hong Kong" conference in Jakarta, which was arranged by the Hong Kong Trade and Development Council (HKTDC).

Chan stated that Indonesian firms that are registered on the Hong Kong stock market would have the opportunity to access both global and local funds. He further mentioned that this ability to raise funds could be beneficial for infrastructure projects as part of the president's 2045 plan to double the GDP per person. He also urged these projects to consider acquiring funds in Hong Kong.

As geopolitical strains escalate in the area, numerous businesses have chosen to spread out their industries and supply chains throughout various nations, especially in the Global South, according to Chan.

He further added that with the ongoing trend, Hong Kong is capable of providing successful administrative and business treasury services, expert advice in logistics, and also boasts a wide range of global connections.

Cheuk Shum of HSBC Hong Kong Shares Marketing Forecasts for 2025

Looking back at 2024, Shum labels it as a pivotal year for the marketing department of HSBC. Shum's team rolled out numerous innovative campaigns that transcended the norms of conventional banking marketing.

Shum envisages the forthcoming year as a period of "transformation", with HSBC persisting its progress and reimagining its marketing strategies.

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Kevin Huang, who serves as the Chief Operating Officer for SCMP, and Cheuk Shum, the Marketing Head for Wealth and Personal Banking at HSBC Hong Kong.

The banking sector is undergoing considerable changes fueled by fast-paced digital advancements, and HSBC Hong Kong continues to lead this progression, with no indication of deceleration.

Cheuk Shum, who leads the marketing for Wealth and Personal Banking at HSBC Hong Kong, has stated that the financial behemoth is perpetually reconsidering its marketing strategies and customer interaction methods. Looking back at 2024, Shum identifies it as a milestone year for the HSBC's marketing division.

Revolutionizing the Banking Journey

With him at the helm, his crew carried out numerous innovative strategies that challenged the norms of conventional banking promotion. They ventured into the world of esports through strategic alliances and introduced unique credit card offerings, showcasing the bank's readiness to take chances and embrace experimentation.

"This year has been truly exceptional for HSBC and our collective," notes Shum. "We introduced several pioneering promotions in Hong Kong that genuinely kept us engaged and challenged." These initiatives embraced the T1 esports squad, the launch of an exclusive banking credit card at the renowned new Henderson location, and the Global Investment Summit, among others.

Shum believes this surge of initiatives is due to HSBC's commitment to leading the market and offering their clients innovative and unforgettable experiences. "People in Hong Kong have a fondness for novelty," he clarifies. "Therefore, we're constantly striving to maintain a sense of novelty for our customers."

Chinese auto retailers are experiencing a pricing battle, while BYD surpasses Tesla in Q4: 7 noteworthy EV updates

With Chinese electric vehicle retailers being drawn into a pricing conflict and BYD outperforming Tesla in the last quarter, here are seven significant electric vehicle narratives you might have overlooked.

1. From excess production to the second coming of Trump: the future of EV batteries by 2025

The worldwide battery industry faced a challenging year in 2024, marked by lower than anticipated demand for electric vehicles (EVs), overproduction, fierce rivalry among various battery technologies, and geopolitical conflicts exacerbated by the US's hike in tariffs on China.

2. Over 30,000 Chinese car dealerships predict a grim 2025 due to price competition and e-commerce pressure

In mainland China, over 30,000 car dealers are bracing for a challenging 2025. Many have transitioned from profit-making entities to corporate failures in just two years due to an intense price war and the surge of e-commerce.

3. BYD Outperforms Tesla in Q4 EV Production, Becoming Global Leader

BYD Auto, the leading electric vehicle (EV) manufacturer in China, emerged as the top global seller of all-electric cars in the last quarter of 2024, surpassing Tesla whose sales during the same period did not meet projected figures.

Goldman identifies a purchasing prospect within the US$60 billion bonds belonging to Chinese corporations on the US roster. Those who issued the impacted bonds encompass some of China's most significant privately-held and government-owned businesses.

In the past, Goldman analysts Kenneth Ho and Sandra Yeung noted that being included in the military connections list has only affected bond prices in the short term.

In January 2021, former American President Donald Trump implemented an executive order which sanctioned 35 Chinese firms associated with the military. This included the chip producer Semiconductor Manufacturing International Corp, telecommunications giant Huawei Technologies, and surveillance camera manufacturer Hangzhou Hikvision Digital Technology. This order barred American investments in these businesses.

The securities of the impacted firms took a hit in the final quarter of 2020, which resulted in an increased yield difference of approximately 60 basis points compared to the Asia US dollar bond index, according to Goldman. This downward trend persisted until mid-2021, when the yield disparity vanished and the affected bonds started to align with other high-quality Chinese debt instruments, Goldman stated.

The effects of the US executive order in 2021 were fairly brief, and we anticipate that any adverse outcomes from the latest events will be transient," stated Goldman.

Transsion, the leading Chinese smartphone supplier in Africa, is harnessing Alibaba's AI technology. Alibaba's Tongyi Qianwen model will facilitate the GenAI capabilities of the Phantom V Fold2, the newest 5G smartphone from Transsion's Tecno brand.

The GenAI service, provided by the two companies, leverages an AI button on the device. This button allows the user to engage in various AI-driven dialogues and swiftly summarize documents and telephone messages.

In the official communication from Alibaba Cloud, Shi highlighted that the "enhancement of energy usage during inference" has emerged as a significant obstacle in incorporating AI models on gadgets. AI inference is the procedure that a trained model employs to form judgements or tackle tasks using completely new real-time data.

The Airport Authority of Hong Kong has managed to amass $2.4 billion through a landmark bond issuance. The bond, issued by AAHK, was specifically aimed at institutional investors and was denominated in Hong Kong dollars.

The Hong Kong Airport Authority (AAHK) has secured HK$18.5 billion (US$2.4 billion) through the biggest institutional bond ever issued in Hong Kong currency. This move places them among a group of borrowers who are exploiting the market during a period of unexpectedly slow interest rate cuts.

The most recent issuance included four segments with three-year, five-year, 10-year and 30-year notes, each valued at 4.05%, 4.10%, 4.25% and 4.50% respectively. The total value of orders received amounted to HK$25.3 billion, largely due to the interest from Asian investors such as banks, asset managers, insurance companies, other corporations and private banks. S&P Global Ratings has given the airport authority a AA+ rating.

The airport management also set prices for the 10-year and 30-year offshore yuan bonds. These "dim sum bonds" amounted to 3.2 billion yuan (US$436 million) after getting bids of up to 5.7 billion yuan from investors across Asia, Europe, the Middle East, and Africa. Furthermore, the airport operator was compiling a record for its US dollar bonds on Wednesday.

The revenue generated from the issuance worth HK$18.5 billion will be allocated towards debt repayment and financing capital costs, including the three-runway system at the airport, along with other business-related expenses.

Tech Conflict: American company SiFive establishes Chinese branch to cater to increasing demand for open-source chips

SiFive, originating from California, has founded a branch in Shanghai with the intent to assist clients in making significant technological advancements.

SiFive, a company headquartered in Santa Clara, California, has set up a local branch named Shanghai Xinwu Technology, located in the Pudong New Area free-trade zone, as per the company's recent WeChat announcement on Tuesday. This strategic decision was made in response to the significant demand in the highly prized Chinese market, the company added.

SiFive, established in 2015, is a significant contender in the RISC-V industry, providing developers with the ability to tailor their own chip designs. It's a competitor to Intel's X86 and the architecture of UK-based firm Arm Holdings, both of which rule the personal computer and smartphone markets, respectively.

Chinese companies and institutions are investing in RISC-V, also known as "risk five," as a strategy to lessen their dependence on foreign providers. This move comes as the United States increases export limitations on sophisticated chip technology.

A multitude of elements are set to restrict the growth of Hong Kong's stock market in 2025, according to UBS. The Swiss bank predicts that the city's standard index will surpass 20,000 by the end of the year, suggesting a 3.7 per cent increase from the closing figures on Wednesday.

UBS predicts that Hong Kong shares may see slight increases this year. However, the benchmark index's growth will likely be restrained due to escalating conflicts between the US and China, a decreased speed in rate reductions, and doubts surrounding Beijing's economic stimulus strategies.

The Swiss bank anticipates that the Hang Seng Index will see a one-digit percentage growth, barely surpassing the 20,000-point mark by year-end. This is a 3.7 per cent jump from its closing figure of 19,279.84 on Wednesday.

UBS analysts, in a media briefing on Wednesday, commented that although China's policy actions might steady the markets temporarily, the overall geopolitical and economic scenario continues to be unpredictable.

"Our apprehensions regarding the uncertain speed of interest rate reductions and persistent global political disputes, particularly involving the US, as well as doubts over the success of China's remedial actions, are mirrored in our predictions," stated Angus Chan, a UBS strategist.

Consequently, the bank has increased the risk premium for the Hang Seng Index from 6 per cent to 8 per cent, signifying the expected higher market fluctuations this year, he further explained.

Beijing maintains EV grant to boost purchases, retaining the same value of the benefit from 2024. The NDRC stated that customers replacing their cars with electric ones would get a subsidy of US$2,728 this year. The NDRC repeated that those substituting their vehicles with electric models would be given a US$2,728 support this year.

The National Development and Reform Commission (NDRC) announced on Wednesday that individuals who purchase electric vehicles as replacements this year will be granted a cash incentive of 20,000 yuan (equivalent to US$2,728). Additionally, those who opt for gasoline-powered cars with an engine capacity under 2 litres as a replacement will receive a 15,000 yuan reward.

"Dealers and car purchasers have been expecting a renewal of the subsidy," stated Chen Jinzhu, the Chief Executive Officer of Shanghai Mingliang Auto Service, a consulting firm. "The formal declaration arrived sooner than we thought it would, which will likely stimulate sales in January when there seems to be a dip in interest for electric vehicles."

In July, Beijing increased the exchange subsidy for electric vehicle purchasers to 20,000 yuan per car. This action was taken three months following the introduction of the incentive, but the scheme concluded on December 31. According to China's Commerce Ministry, the exchange program benefitted 3.7 million buyers in 2024 when they reported on Wednesday.

Cui Dongshu, the General Secretary of the China Passenger Car Association (CPCA), predicts that electric vehicle sales in China could surge by 38% to 10.68 million units by 2024.

China's new subsidy plan excludes Apple's expensive iPhones, setting the limit at $818

The most recent financial incentive from China provides a 15% discount for buying smartphones, tablets, and smartwatches.

The financial aid will have a limit of 500 yuan for each buy, and buyers can only benefit from the discounted price for a single item in each product category.

The Department of Trade announced on Wednesday that all local and international firms have the same rights to participate in the subsidy program in a fair and transparent manner.

The starting costs for Apple's iPhone 16 Pro and iPhone 16 Pro Max are set at 7,999 yuan and 9,999 yuan, respectively.