Under the Open Sky | Global community needs to hold strong against Trump's flood of tariff warnings

A lot hinges on Trump's effectiveness in luring leaders away from collective policymaking and the steadfastness of China in resisting the tempting appeal of two-party agreements.

Initially, Donald Trump was seen as a "funny diversion", but it might be more apt to compare him to chaff – a storm of metal, glass or plastic ejected by fighter pilots to mislead and deter enemy chasers. For nearly ten years, this strategy of diversion has been crucial for Trump, with his steady flow of quick tweets and comments during campaigns ensuring he stays in the headlines and keeps his opponents unsettled.

Since his electoral win, the surge of distractions has been both characteristic and successful in maintaining a lack of stability among global leaders and media, regardless of whether they're from the US or abroad, ensuring their attention remains fixated on his policy objectives.

It's uncertain if and how these tariffs will be implemented and predicting it is just not feasible. It's highly likely that even Trump himself doesn't have a clear understanding. Given the number of tariff supporters he's appointed to his close-knit team, it's quite probable that tariffs will play a key role in his trade strategy – although, that's not the main issue.

Trump has managed to command media attention months prior to his inauguration, inciting a wave of intense activity among prominent global trade economists who are likely fruitlessly estimating the effects of potential tariffs.

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Trump returns: what lies ahead for China, Asia, and the globe? | Conversation Column with Yonden Lhatoo

The sale of The Center skyscraper was a dramatic event in Hong Kong, but now the purchasers are having a hard time liquidating their investment. Have a peek into The Center, which held the title of the priciest skyscraper globally when it was astutely sold by the richest individual in the city.

However, the firm has not yet secured a purchaser for the 30th floor, say sources close to the situation, given that the city's office space market has been sluggish for some time.

The home construction company based in Shenzhen is looking to sell its property for HK$500 million (US$64.3 million), roughly HK$20,000 per square foot for a total area of 24,900 square feet. Back in 2019, Kaisa reportedly purchased the entire floor for HK$884 million, a price that is 43% more than the current asking price. The floor was originally bought from local entrepreneur Lo Man-Tuen and simultaneously, Kaisa also acquired the 38th floor for an alleged HK$1.08 billion from magnate David Chan Ping-chi, also famously known as the "King of Cassettes," due to his firm being one of the largest manufacturers of cassette tapes globally.

Only two years afterwards, Kaisa was forced to let go of the 38th floor for a mere HK$186.4 million, offloading it to the mainland investment company, Shandong Hi-Speed Financial Group, in order to clear an existing loan, as per the records of the Hong Kong exchange. Furthermore, in 2023, the company put the 30th floor up as collateral to Kingston Finance to obtain a loan, as the Land Registry records indicated.

Travel interest spikes in China due to the prolonged Lunar New Year break

Air travel and group excursions are being reserved several weeks in advance of the eight-day nationwide holiday that kicks off on January 28.

Anticipations are high for a significant increase in travel needs in China during the forthcoming Lunar New Year celebrations. This comes as good news for the nation which recently extended their public holiday by a day to stimulate demand.

Preliminary information from Chinese tourism businesses indicates that customers are preemptively looking for and reserving journeys far before the eight-day vacation period from January 28 to February 4.

eLong Inc., a top supplier of travel products in the country, announced on Monday that there will be a dramatic increase in air ticket prices, around 80 to 90 per cent, from January 23-27. This is the week leading up to the Lunar New Year and some popular flight paths could even see a hike of over 100 per cent in prices.

Tuniu, a leading travel company, announced on Monday that group travel reservations for the Spring Festival have increased by 40 per cent compared to the last week, as reported by The Paper, a media organization based in Shanghai.

The Beijing government declared last month that, beginning in 2025, the Spring Festival holiday would be extended by a day, making it an eight-day holiday. This initiative aims to boost consumer purchases, especially within the middle and lower-income demographics that have been reducing their spending to save funds.

Lin Huanjie, head of the Institute for Theme Park Studies in China, expressed that the notable passion for travel among consumers is expected to persist into the following year. He further projected that China's tourism industry could see a growth of more than 5 per cent in 2025.

Hong Kong shares close the week on a down note as investors seek triggers

Tencent goes up by 2.7 percent following the decision to launch a gifting feature on its WeChat app; semiconductor manufacturer SMIC surges by 8.2 percent.

On Friday, the Hang Seng Index experienced a 0.2 per cent drop, closing at 19,720.70. This marked its second consecutive day of decline and a 1.3 per cent decrease for the week.

The Hang Seng Tech Index saw an increase of 0.1 per cent. Meanwhile, in mainland China, the CSI 300 Index fell by 0.5 per cent and the Shanghai Composite Index also declined, dropping by 0.1 per cent.

The tech behemoth Tencent saw a 2.7 per cent increase in its stocks, reaching HK$426.40, after announcing its intentions to trial a feature on a WeChat-affiliated e-commerce platform that enables users to present gifts valued under 10,000 yuan (US$1,370). Semiconductor manufacturer SMIC experienced a significant 8.2 per cent jump to HK$28.30, while athletic apparel producer Anta Sports saw a modest increase of 1.8 per cent, pushing its stocks to HK$80.40.

"The downturn of the benchmark was primarily halted by Tencent," stated Kenny Ng, a strategist at Everbright Securities International. "Without their involvement, the market could have plummeted even more."

Laopu Gold surpasses Chow Tai Fook to become China's leading jeweler, experiencing a 437% increase in stock value. The distinctive luxury approach of the ancient Beijing-based jeweler is likened to that of Cartier and Tiffany.

In China's relatively bleak retail jewelry scene, any sparkle is likely to be courtesy of Laopu Gold.

The jeweler based in Beijing, also known as "old shop" in Chinese, is attracting customers as it surpasses Chow Tai Fook Jewellery Group, the market leader, and other domestic brands in terms of sales growth and stock performance. Its revenue has soared by 148% annually in the initial half of 2024 and is expected to more than double by the end of the year. Also, its shares have rocketed by 437% since its introduction on the Hong Kong stock market in June, thus becoming the top achiever on the Hang Seng Composite Index this year.

The stock's 14-day relative strength index has surpassed 80 on at least five occasions since it first entered the market. This is an uncommon score, usually suggesting superior performance. Generally, an RSI score of 70 or higher implies that the stock is over-purchased. Despite this, market analysts remain optimistic. Every one of the 14 analysts monitoring the company recommends purchasing the stock, according to data collected by Bloomberg.

Established a decade and a half ago, the firm has chosen to remain compact with only 33 outlets, primarily dealing in heritage gold jewelry with a Buddhist influence, which have set prices. This differs from the common practice among local brands of pricing items by weight. This unique approach has elevated Laopu's status as a luxury brand and led to comparisons with international brands like Richemont's Cartier and LVMH's Tiffany – an uncommon accomplishment for a Chinese brand.

Three twenty-two

The journey of Chow Tai Fook, transitioning from a goldsmith to a jewelry empire.

Laopu's "somewhat diminutive scale" is a benefit that enables it to prioritize superiority over abundance, according to Mark Tanner, the director of the consultancy firm China Skinny in Shanghai. He stated that the brand "occupies a niche" in the unexplored luxury market of Chinese-made goods.

A Laopu gold necklace, weighing 7.2 grams and adorned with a diamond-encrusted gold pendant, can be purchased for a price starting at 11,230 yuan (equivalent to US$1,540). This price is significantly higher than what it would be if it were sold simply based on the weight of the gold. The brand also attracts customers who are interested in beautifully crafted decorations that incorporate traditional Chinese features. The cost of these items can run into hundreds of thousands of yuan.

CK Hutchison's subsidiary, Wind Tre, is under investigation by Italian tax authorities for a €3.4 billion deal with Cellnex. It's believed the company managed to avoid paying taxes worth approximately €132 million for 2022 from the sale of mobile phone towers, as stated in a document.

An investigation has been launched into CK Hutchison Holdings' Italian telecom division, alleging that it avoided paying taxes on a $3.6 billion asset sale to Cellnex Telecom.

A probe by Italy's financial law enforcement is looking into the possibility that Wind Tre, Italy's third largest telecommunications firm, might have evaded paying registration taxes during the sale of multiple thousands of mobile phone towers to Cellnex, a company based in Barcelona, as per a document reviewed by Bloomberg.

The document indicates that the supposed tax evasion could total roughly €132 million for the year 2022.

Executives from Wind Tre are accused of employing a complicated asset-sale mechanism, utilizing a Luxembourg-based entity known as CK Hutchison Europe Investments, in an effort to decrease the company's tax obligations in Italy.

The sale of the tower subsequently utilized "an excessive minimization of the total tax liability in terms of registration and income tax," the financial law enforcement stated in the document.

OCBC marks achievement by hosting a 'Christmas Festival' for its clients in Hong Kong and Singapore. The bank, having posted unprecedented net earnings of S$5.90 billion in the initial three quarters of 2024, distributed genuine Singaporean pandan cakes.

In recognition of OCBC's impressive results in the last two years and as a gesture of appreciation to its loyal customers, the bank based in Singapore organized its inaugural "Christmas Festival" in Hong Kong earlier this month. The bank disclosed a net gain of S$1.97 billion (US$1.34 billion) for the third quarter of 2024, which is a 9 percent rise compared to the prior year.

The occasion took place at the primary branch of OCBC Hong Kong located in Central. The CEO of OCBC Hong Kong, Wang Ke, and Josephine Lee, who is in charge of Consumer Financial Services at OCBC Hong Kong, initiated the event. Prominent guests like popular actress and TV presenter Kelly Cheung were present. Additionally, the bank's team for Consumer Financial Services and branch employees were in attendance. Chosen branches from Singapore and Hong Kong also joined in distributing over a thousand boxes of pandan cakes to their clientele and the local community.

The bank orchestrated an event to give their clients a sense of Singaporean culture by importing pandan cakes from one of Singapore's renowned brands, Old Seng Choong, all the way to Hong Kong. These treats were personally selected by Sunny Quek, who leads Global Consumer Financial Services at OCBC and is based in Singapore, providing customers with an original taste experience.

Old Seng Choong, founded in 1965, is renowned for its classic biscuits and cakes, particularly its best-selling, fluffy pandan chiffon cake. It shares the status of being a reputable brand originated from Singapore with OCBC, both boasting a deep-rooted history. The bank used the festive occasion as a chance to offer its Hong Kong customers a slice of the iconic cake, underscoring their dedication to cultivating meaningful and mutually beneficial relationships.

Despite the unstable business climate, OCBC's robust performance was largely fueled by the company's total revenue of S$3.80 billion in the third quarter, hitting another all-time high. The company had previously recorded consecutive record-breaking net profits from 2022-23. The net earnings for the group for the first three quarters of the year saw a 9% increase from the previous year, landing at S$5.90 billion.

Apart from strong revenue growth, a significant factor contributing to the bank's profits is its unique "Singapore and Hong Kong dual-hub" approach. This model, which involves operations in both cities, provides a prime position for the bank as a portal to the Asean region and a conduit for Greater China to reach international markets. This strategy enables the bank to seize business transactions occurring bi-directionally between Greater China and Asean countries, particularly as the movement of wealth between these regions has become more prominent in recent times. The dual financial centers of Singapore and Hong Kong offer unique benefits for clients looking to broaden their reach into Asean countries.

Utilizing a dual-center approach, OCBC Premier Banking capitalizes on its significant presence in two key areas. This strategy enables clients in Hong Kong and Greater China to reap the advantages of a wide range of banking services and collaborations through its unified "One Group" method.

Pop Mart, a toy manufacturer from China, has experienced a 370% increase in growth, largely due to the popularity of their mystery box toys. These mystery toys from Pop Mart have gained worldwide attention, positioning the toy company as one of the most rapidly expanding businesses in China.

In a recent video by Vanity Fair, Lisa, a member of the hugely popular K-pop group Blackpink, revealed her fascination with toys made by the Chinese firm Pop Mart International Group.

"I lose my mind. It feels as though I've splurged all my cash," she chuckled, revealing dolls from the toy manufacturer's Pucky Roly Poly Kitty range. "I visit Pop Mart no matter where I am. If I take a flight to New York, I make it a point to seek out Pop Mart there. Same goes for Paris, and any other place. It's somewhat similar to a treasure hunt."

Lisa is not the only one eager for Pop Mart's toys. This year, the company, based in Beijing, has transcended from being a popular choice among China's Gen Z to becoming a worldwide sensation. In places like the US and Australia, enthusiasts are said to have lined up for hours, at times in the dead of night, waiting for new products. Shops have sprung up in cities such as Paris, Milan, and New York. Sales abroad have seen a fivefold increase.

The enthusiasm for its diverse range of toys has catapulted Pop Mart into China's fastest-growing company. Its shares have skyrocketed by 368 per cent this year, outperforming the majority of companies on the MSCI China Index. It has also surpassed global competitors such as Walt Disney and Sanrio, the parent company of Hello Kitty. The company announced that its domestic sales increased by at least 55 per cent in the quarter ending in September, compared to the same period last year. Meanwhile, its international sales have exploded, with an increase of over 400 per cent.

Morgan Stanley analysts, including Dustin Wei, have suggested that Pop Mart is probably the inaugural Chinese domestic consumer brand to attain substantial international success. This success is attributed to their appeal through intellectual property, design, and products, rather than competitive pricing. Wei referred to the company as an emerging global brand.

Special Report | Wynn Macau advocates for simplified transportation and immigration procedures with Hong Kong to boost tourism

This sentiment mirrors President Xi Jinping's plea for both cities to 'remain unified and strive for superior accomplishments'

Enhancing connections and collaboration can lead to a better atmosphere and experience for local inhabitants and overseas tourists, stated Linda Chen, deputy chairman and president. This can be achieved by the governments of both unique administrative areas.

"In the event of us organizing a function in Macau, it's crucial to market it to visitors from Hong Kong and the other way around," she conveyed during a discussion. "Should Hong Kong be the venue for a music event, we ought to simplify the process for Macau residents to attend and return afterwards."

She reiterated President Xi Jinping's Thursday proclamation where he urged both cities to remain cohesive and strive for more progress, as reported by Xinhua News Agency. Xi is presently on a formal trip to Macau, commemorating the 25th anniversary of its transfer to Chinese rule.

John Lee Ka-chiu, the Chief Executive of Hong Kong, previously emphasized that both Hong Kong and Macau, being essential urban centers of the Greater Bay Area, are collectively propelling the area's growth by capitalizing on their distinct but synergistic capabilities.

Sam Hou Fai, the Chief Executive of Macau, has made a commitment to transform the world's largest betting center by enhancing its appeal as a tourist and leisure spot.

Special Report | Wynn Macau advocates for improved transportation and immigration processes with Hong Kong to boost tourism

This perspective aligns with President Xi Jinping's insistence that both cities should 'maintain unity and strive for more accomplishments'

Improved collaboration and connectivity between the governments of the two special administrative regions can enhance the atmosphere and experience for local inhabitants and international tourists, according to vice-chairman and president Linda Chen.

She suggested in a conversation that if an event is held in Macau, it needs to be advertised to tourists from Hong Kong and the same should be done in reverse. She further insisted that if a concert is hosted in Hong Kong, efforts should be made to simplify the process for Macau's residents to attend the concert and return.

She mirrored the sentiments of President Xi Jinping who, on Thursday, urged both cities to remain unified and strive for greater success, as reported by Xinhua News Agency. Presently, Xi is on a formal trip to Macau to mark the 25th anniversary of its return to Chinese rule.

John Lee Ka-chiu, the Chief Executive of Hong Kong, previously emphasized that Hong Kong and Macau, being key cities in the Greater Bay Area, are collectively propelling the area's growth through their distinct but synergistic capabilities.

Sam Hou Fai, the Chief Executive of Macau, has committed to broadening the scope of the world's leading gambling center by enhancing its appeal as a destination for tourism and leisure.

Revamping Hong Kong's workforce for upcoming times

Mercer's 'Global Talent Trends 2024' study reveals four emerging trends that are influencing a people-centric strategy, which could aid businesses in achieving an edge over their competitors.

Each generation contributes unique attributes to the professional environment. Baby boomers are celebrated for their relentless determination and robust work principles; Generation X is lauded for its independence and versatility, while millennials are acknowledged for their technological prowess and cooperative nature. Gen Z, with a firm focus on adaptable work schedules, health consciousness, and highly tech-engaged roles, is set to influence the future of the business world in a significant way.

Due to shifts in socio-economic dynamics across generations, Asian businesses are adapting to create work environments that are more sustainable, more stimulating, and less draining. In order to handle the difficulties and potential advantages of 2024 and the future, corporate heads and HR specialists can aid in creating a workplace that reflects employees' ethics. This is especially important considering the impact of Gen Z, predicted to be the most substantial generation in the workforce by 2035, which in turn enhances team cohesion, efficiency and job contentment in the workplace.

It's crucial for employers to grasp trends across generations to effectively manage the recruitment and retention of talent. The "Global Talent Trends 2024" study by Mercer provides insights into the priorities of leaders and the factors that are important to their talent.

Gary Chin, the leader of career consulting at Mercer in Hong Kong and Macau, stresses the importance of utilizing strong data in measuring people policies and strategies to draw in and keep talented individuals.

"What sets you apart from your rivals?" he inquires. "It's crucial to conduct a performance comparison. Mercer possesses a comprehensive database that aids in establishing a correct starting point for companies to retain their market competitiveness. However, each company is distinct and should develop an all-encompassing rewards plan tailored to their specific aims and objectives," he continues, alluding to more detailed, customised employee programs that take into account the needs of a varied, multi-age workforce.

Chin emphasizes that employers ought to give more serious thought to this issue. Rather than just setting industry standards, top companies should utilize comprehensive reward strategies and talent initiatives to foster a distinctive value proposition for employees. This, in turn, will aid in attracting and retaining top talent.

Analysts suggest that imposing tariffs on Chinese graphite exports may drive up the price of EV batteries. A group of American graphite miners has requested the Commerce Department to investigate Chinese manufacturers and impose a 920 per cent anti-dumping duty.

American graphite miners' demand for a tariff of up to 920 per cent on Chinese mineral suppliers could lead to "significant and widespread effects" on the price of electric vehicle (EV) batteries, according to automotive industry experts.

If given the green light, the prospective duty on active anode materials made in China could significantly inflate the prices of electric vehicle batteries and energy storage systems in the US, as per a study released by California-based investment bank, Roth Capital Partners.

"Managing director Justin Clare stated that they project the additional expense may amount to approximately US$135 per kWh. This signifies a spike of 125 percent in the DC-block, bringing it to roughly US$255 per kWh."

The anode usually accounts for about 10 to 15 percent of the battery's total cost, which equates to approximately US$15 per kilowatt-hour (kWh). The battery's overall price is around US$120 per kWh, he further stated.

In 2023, China was the main source of lithium batteries for the US, supplying $13.1 billion worth, which accounted for 70% of all US imports, as per official records. The International Energy Agency reports that China holds a significant lead in the global battery market, owning around 85% of the world's battery cell production capacity and a large proportion of cathode and anode active material production.