CATL, a Chinese company, is partnering with Stellantis, the owner of Fiat, to establish an EV battery factory in Spain costing $4.3 billion. This collaborative project has received endorsement from the Spanish government, which chose not to participate in the European Union's vote in October to enforce additional charges on EVs manufactured in China.

The agreement between the parties involves an investment of €4.1 billion, equivalent to US$4.3 billion, to construct a factory in Zaragoza, located in northeast Spain. As per the announcement, the facility will have the ability to manufacture 50 gigawatt-hours (GWh) of batteries each year. To put it in perspective, one GWh can provide enough power for 13,000 electric vehicles to travel a distance of 500km.

"Our partnership with Stellantis has elevated our collaborative efforts," said Robin Zeng Yuqun, the founder and chairman, in a late Tuesday statement. "Our advanced battery technology and exceptional operational expertise, along with Stellantis' extensive local business experience of many decades, guarantees a significant triumph."

The business endeavor in Spain is set to produce lithium iron phosphate (LFP) batteries suitable for cost-effective electric vehicles, crossovers, and mid-range sport-utility vehicles. Stellantis, the parent company of Jeep and Alfa Romeo, announced that the Spanish government has backed this joint venture to establish the factory, without going into further detail.

SenseTime, a Chinese AI creator, is aiming to raise $358 million through a share sale to finance its growth. The tech company, located in Shanghai, is offering the shares at a discount of 6.3 percent to strengthen GenAI development and surpass competitors.

SenseTime, a top AI technology company in China, is looking to raise HK$2.8 billion (approximately US$358.4 million) from a second round of stock offerings to external investors in just six months, subsequent to an internal restructuring aimed at enhancing its sector-specific focus.

SenseTime stated that the allocation provides an appropriate financial solution in support of the company's expansion and progress, considering the latest market trends. The company is offloading the new stocks under an authorization granted by its shareholders earlier in June.

The firm has engaged China International Capital Corp, Goutai Junan International, and Huatai International to assist in locating potential purchasers.

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The CEO of SenseTime anticipates that the company, which is listed in Hong Kong, will become profitable within two years through its generative AI operations.

Opinion | The way China's rapidly changing economy can dodge the discomfort of L-shaped growth

The nation possesses all the necessary resources – and the toughness – required to adjust to its new international surroundings and speed up its internal changes.

Several of these advancements have been in the pipeline for a while: even back in 2013, China's financial system was facing significant instability and escalating financial danger. Excessive lending into physical infrastructure and real estate led to a surge in the debt-to-GDP ratio, causing an oversupply problem in various sectors, such as coal mining, steel, and cement.

China is encouraging mergers and acquisitions with the aim of creating ten high-tech public companies that can vie internationally by 2027. The sectors involved encompass integrated circuits, biopharmaceuticals, and innovative materials.

By the year 2027, there will be a marked enhancement in the abilities of financial intermediaries to bolster mergers and acquisitions (M&A). This will be complemented by an increased cooperation between market players, local jurisdictions, governmental bodies, and businesses, as stated by the Shanghai government. They further noted that by boosting the M&A environment and industrial capabilities, Shanghai will be in a more favorable position to further the nation's ambitions for superior economic development.

The news from Shanghai comes after the China Securities Regulatory Commission (CSRC) launched the "Six M&A Measures" in September, a move designed to bolster deals in key sectors. This initiative aims to assist publicly traded companies in transitioning towards high-tech, renewable energy, and other pioneering sectors.

The document from September also urged for "increased tolerance" from decision-makers and promised to "honor market movements while maintaining regulatory standards".

Hong Kong serves as a springboard for Chinese Electric Vehicle (EV) manufacturers, with Xiaomi revealing their new electric SUV: Here's a roundup of seven EV-related news you might have overlooked. This includes the Chinese start-up Hozon's consideration of exports and the preference of Chinese EV manufacturers for Hong Kong.

1. Xiaomi introduces YU7 electric SUV to compete with comparable models from Tesla, Li Auto, Nio

Chinese tech behemoth Xiaomi has disclosed its latest YU7 sports utility vehicle (SUV), which it plans to officially launch in mid-2025, challenging similar models from Tesla, Li Auto, and Nio in the globe's biggest electric vehicle (EV) market.

2. Implications of Xi Jinping's brief trip to Morocco for China's Electric Vehicle sector

Morocco, along with other nations in the Maghreb region encompassing central and western parts of North Africa, play a significant role in addressing two crucial challenges for China – obtaining essential materials required for manufacturing electric vehicles (EVs) and circumventing import barriers set by the US and Europe.

3. Chinese lidar manufacturer Hesai determined to expand globally despite EV tariffs

Real estate in China: Increase in inhabited property sales but decline in costs in Shenzhen, Beijing, Shanghai

It's premature to declare that China's real estate market has reached its lowest point, says Lu Ting, Nomura’s head economist for China.

It's premature to declare that China's real estate market has reached its lowest point, says Lu Ting, Nomura’s head economist for China.

Residential property transactions in several of China's biggest cities are increasing, though prices are still low. Japanese investment bank Nomura points out that the ongoing property crisis that has burdened the economy for almost four years is far from resolved.

Last week in Shenzhen, there was a record high in over three years with 2,390 previously owned homes being sold, as per the information gathered by the Shenzhen Real Estate Intermediary Association.

Comparable patterns have been noticed in other large cities such as Beijing and Shanghai, where there has been a rise in the sale of previously owned homes in the past few months.

On the other hand, the scenario for prices of occupied homes is distinct. In Shenzhen, there's been roughly a 7 per cent drop in prices during the initial 11 months of the year, as per the price index from Centaline Property. The decreases have been more pronounced in Shanghai, at around 10 per cent, and over 12 per cent in Beijing. Concurrently, the sale of new homes keeps on dwindling.

"Lu Ting, Nomura's chief China economist, expressed on Wednesday that it might be somewhat premature to assert that China's real estate industry has hit rock bottom and started to recover.

Hong Kong's Initial Public Offering (IPO) sector is set to break a three-year downward trend, backed by Chinese support and growing optimism. The city has seen a total of US$10.7 billion generated from 64 IPOs from January to November this year, with further transactions expected in December.

According to information gathered by EY, the total amount of funds raised this year up until the end of November hit HK$83.4 billion (US$10.7 billion), showing a surge of 80% compared to the previous year. However, the domestic Initial Public Offering (IPO) market experienced a decline for the third consecutive year in 2023, with the volume decreasing to US$5.9 billion, as per data from LSE Group.

Worldwide, businesses have finalized 1,162 Initial Public Offerings (IPOs) this year, generating a total of US$117.3 billion. This indicates a drop of 14 per cent in IPOs number and a 7 per cent reduction in the proceeds, respectively.

The increasing trust of investors in Hong Kong has attracted numerous appealing and sizable Initial Public Offerings (IPOs) to the market. This is according to Louis Lau, a partner at KPMG China's Hong Kong capital markets group. This includes Midea Group's offering in September that was worth US$3.98 billion and SF Holding's deal in November that was valued at US$793 million.

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Upsurge or downfall: how enduring is China's stock market craze?

Investors from the Gulf region are speculating on a 35% return from Chinese properties, driven by predictions of economic stimulus. The CEO of Gulf Capital suggested at the China-UAE summit during the Abu Dhabi Finance Week, that for those seeking growth, their investments should be focused from the Middle East to the Far East.

Financial backers in the Gulf region predict that their investments in China could yield returns as high as 35% in the coming year. This optimism stems from the anticipation that Beijing will introduce further stimulus packages, as per the discussions held at a conference in the United Arab Emirates (UAE).

The businesses that we've invested in are expanding, and we're making significant inroads into the Asian market, which shows a lot of promise for growth," stated Karim El Solh, the co-founder and CEO of Gulf Capital, on Tuesday. He made these remarks during a panel discussion at the China-UAE summit, which was part of the Abu Dhabi Finance Week (ADFW).

Gulf Capital, the most significant private-equity company in the area, diversifies its investments among various asset categories such as private equity, growth capital, and real estate.

"I often advise my international investors that if they're seeking growth, they need to consider this pathway from the close East to the distant East," he expressed. "We're establishing this contemporary silk route. Therefore, we're incredibly optimistic about the growth opportunities in China and wider Asia."

El Solh stated that if bold economic stimulus actions are implemented, China's capital market is projected to expand by 35 per cent in the coming year. However, without these interventions, the growth will be limited to just single digits.

His perspective was echoed by other panel members, among them Ethan Chan, the head of Arte Capital Group, a diverse strategy asset management firm based in Hong Kong.

"There's a wealth of prospects in China. Following a three-year decline since 2021, the valuations have turned quite appealing, bolstered by the recent supportive actions taken by the central government," he expressed. "We maintain an optimistic stance, observing that the market has regained stability and possesses significant potential for growth."

Technology Battle: Chinese monitoring company Uniview urges US to rethink its trade embargo

The US Commerce Department has placed Uniview on Washington's trade prohibition list for allegedly facilitating certain 'human rights abuses'.

Uniview, in a release on Wednesday, declared that the move was baseless, indicating that they were never notified by US officials about any ongoing investigation. They called on the US government to revisit their decision, as stated by Uniview.

TikTok is requesting a temporary suspension of a possible US ban while the Supreme Court examines the situation. The firm and its parent company, ByteDance, argue that the appeal court's decision to support the law is founded on a 'faulty legal reasoning' that needs to be addressed by the court.

On Monday, TikTok and its Chinese owner, ByteDance, appealed to a federal court to momentarily halt a legislation that might result in a US prohibition of the widely-used short-video application next month. This is awaiting a review from the US Supreme Court.

The urgent plea submitted to the US Court of Appeals in the District of Columbia Circuit stated that, without this help, TikTok would cease operations "for its over 170 million monthly users in the US".

"A slight postponement in implementing the law will merely provide a buffer for the Supreme Court to carry out a systematic examination, and for the new government to assess this issue – prior to the closure of one of this nation's key platforms for speech," stated the proposal.

Last Friday, a trio of judges at the appellate court unanimously affirmed the legislation. The law mandates that ByteDance must sell TikTok to a company not based in China, or else risk having the platform prohibited starting from January 19.

The committee determined in their verdict that the government solely intervened to safeguard this liberty from an overseas enemy country and to curb this enemy's capacity to collect information on individuals within the United States.

Due to fears that Beijing might coerce ByteDance into tampering with TikTok's algorithm and gathering personal information to damage US interests – accusations TikTok has refuted – the US Congress approved, and President Joe Biden enacted, the Protecting Americans from Foreign Adversary Controlled Applications Act in April.

Hozon, a struggling Chinese electric vehicle manufacturer, looks to export as a lifeline amid severe local price competition. The company, located in Shanghai, plans to increase its international sales to account for half of its total sales by 2026 in an attempt to become profitable, according to the firm's founder, Fang Yunzhou.

The automobile manufacturer based in Shanghai, which has been in operation for a decade, recently scaled back its activities due to a number of obstacles. These included financial difficulties that posed a risk to the company's existence.

Fang Yunzhou, the chairman of the company, stated to the Post that by streamlining and restructuring, the corporate management framework will be made simpler, leading to more effective operations. He added that this would lower administrative expenses and pave the way for the creation of a team comprised of youthful professionals.

Fang didn't provide details about the job cuts, however, he mentioned that they were essential to create a revamped Hozon. He also stated that the company is set on initiating an IPO in Hong Kong, regardless of its financial difficulties. Further details were not given.

Fang stated that the manufacturer of Neta-branded electric vehicles will aim to attract China's middle-income buyers and expects to reach a break-even point by 2026.

The conflict between the founder of Moonshot AI, Yang Zhilin, and five investors is set to be settled through arbitration in Hong Kong. These five companies, which funded Zhilin's previous business venture, Recurrent AI, allege that he has an 'unsettled debt'.

Yang informed the South China Morning Post that the board of directors of Recurrent AI, containing representatives from specific investors, have already approved his departure from the company and his plans to explore other opportunities. Being one of the top AI companies in China, Yang's Moonshot AI holds a valuation exceeding US$3 billion.

"Yang stated that he has completed all the essential procedures to depart from Recurrent and commence a new venture."

GSR's Zhu responded by claiming that Yang avoided addressing all the important issues, as reported by local media source 36Kr. Zhu argued that proper procedures, like the shareholders' decision to approve a liability waiver, were not correctly adhered to.