Chinese electric vehicles are ready to expand into international markets, with Hong Kong serving as a launch pad. Hong Kong has the potential to operate as a double-edged gateway, allowing Chinese electric vehicle manufacturers to reach out to foreign markets while also importing advanced technologies.

The first automotive industry supply chain summit, organized by the China Association of Automobile Manufacturers (CAAM), took place in Hong Kong on Wednesday. The event saw the participation of numerous electric vehicle manufacturers and government representatives, who came together to explore ways in which Hong Kong can assist mainland car producers in their international expansion efforts.

According to Fu Bingfeng, the secretary general of CAAM, Chinese automobile manufacturers encounter various obstacles when expanding their operations abroad. These include managing trade agreements, adhering to global regulations, enhancing brand visibility, offering post-purchase customer support, and navigating financial services.

"He emphasized that Hong Kong, with its inherent strengths as a global financial, trading and innovation hub, can significantly aid Chinese businesses in their pursuit of worldwide expansion."

"It can serve as a dual-channel portal for Chinese EV manufacturers to expand internationally and import innovative technologies."

Electric vehicle (EV) manufacturers in China are looking to expand globally due to intense local competition, robust sales, production growth, and foreign trade restrictions. In August, the Biden administration increased the import tax on Chinese EVs from 25% to a whopping 100%. Similarly, last month, the European Union hiked up tariffs on Chinese EVs to a maximum of 45.3%.

Unicorns from China are propelling Asia's growth narrative

TOJOY's chief executive advocates for enhanced international collaborations at the Smart Nation Expo

TOJOY's chief executive advocates for enhanced international collaborations at the Smart Nation Expo

[The information in this piece has been generated by our promotional collaborator.]

During the Smart Nation Expo 2024 held in Kuala Lumpur starting November 21, Ge Jun, the Co-Chairman of TOJOY Holding and the CEO of TOJOY Enterprise Services, gave an inspiring speech about the influence of China's unicorns on the future of productivity and innovation throughout Asia.

The executive's address, which was just a fraction of the company's overall participation at the fair, illuminated the transformative capacity of these rapidly expanding enterprises and emphasized the importance of enhanced international cooperation within the area. Chinese unicorn companies, those with a valuation exceeding US$1 billion, are not merely symbols of economic prosperity but are progressively regarded as catalysts for technological change.

Addressing a varied group of policy makers, corporate heads and creative thinkers, Ge outlined the idea of "new quality productive forces" backed by the Chinese government. This phrase refers to advanced productivity approaches that surpass conventional growth strategies.

"Unicorns are not solely focused on developing new business approaches," said Ge. "They are now making technological advancements that have the potential to revolutionize whole sectors."

A newly released White Paper discussing the development trajectory of China's Unicorn Enterprises, co-written by TOJOY and the GuoYan Institute of Economic Research, supports this perspective.

Hong Kong shares plummet following the largest increase in five weeks. The shares are finding it hard to recover from a drop that has pulled the standard down by over 15 per cent from the peak of this year in October.

The Hang Seng Index dropped by 1.2 per cent, closing at 19,366.96, and the Hang Seng Tech Index fell by 1.5 per cent. In the mainland, the CSI 300 Index declined by 0.9 per cent, while the Shanghai Composite Index pulled back by 0.4 per cent.

Shares in Hong Kong have been battling to recover from a downturn that has seen the key index fall by 16% since its peak in October, due to China's lackluster efforts to stimulate its economy and potential tariff actions by Donald Trump. The index saw a surge of over 2% on Wednesday, driven by the anticipation of more aggressive measures from Beijing to bolster the economy. A yearly economic conference is scheduled for the coming month, where President Xi Jinping along with other senior officials will convene to outline the primary policies for the upcoming year.

"The market is influenced by regulations. If there are gradually beneficial policies being introduced, like stabilizing the real estate market and promoting consumer spending, it will restore market confidence," stated Melody Lai, a researcher at SPDB International based in Hong Kong. "Prior to these policies being implemented, stocks will vary within a certain limit and chances will solely originate from specific sectors and stocks."

The surge in China's electric vehicle market could drastically reduce the demand for petrol. Citic Futures, a brokerage firm, anticipates a yearly decrease of 4 to 5% in Chinese gasoline consumption until 2030.

Evidence of China's transition to electric transportation, and the decline of gasoline, is omnipresent. It ranges from Tesla charging stations nestled in the historical lanes encircling Beijing's Forbidden City to solitary charging stations in rest stop areas across the vast Western deserts.

Sales of electric and hybrid vehicles in China have surpassed those of traditional combustion engine vehicles this year. Over half of the retail passenger vehicle sales from July to October were accounted for by these eco-friendly cars, as reported by the China Passenger Car Association. This shift in preference is expected to reduce the demand for transport fuels significantly, subsequently affecting the oil market.

The swift adoption of electric vehicles (EVs) has changed the perspectives of oil predictors in major energy companies, banks, and academic circles recently. This is not the same as in the US and Europe, where high levels of consumption were succeeded by prolonged periods of stable demand. The decrease in demand in the world's leading crude oil importer is anticipated to be more significant. Citic Futures, a brokerage firm, predicts a yearly decrease of 4 to 5 percent in China's petrol consumption until 2030.

"China is moving towards the future at a quicker pace," stated Ciaran Healy, a petroleum expert at the International Energy Agency in Paris. "We're currently observing the mid-term forecasts unfolding sooner than anticipated, and this could impact the trajectory of both Chinese and worldwide demand growth for the remainder of the decade."

The international oil market, largely dependent on China for its expansion throughout the majority of the 21st century, is about to face a significant decrease in one of its primary areas of consumption. China represents nearly 20% of the global oil demand, with gasoline accounting for roughly a quarter of that. The potential for a significant decline from the transportation sector is also looming, compounded by lukewarm industrial consumption due to decelerating economic growth.

The increasing interest in electric and liquefied natural gas trucks is affecting the demand for diesel. UBS Securities stated in a recent report that diesel consumption in China reached its highest level in 2019 and is projected to decrease by 3 to 5 percent annually until 2030.

There remains considerable uncertainty regarding the adoption of electric vehicles (EVs) in China, including doubts about the possibility of accomplishing total electrification and its implications for fuel consumption. There's also ambiguity about plug-in hybrid vehicles which can run on either electricity or reserve gas engines. They have been responsible for a significant portion of sales increase in recent years, yet there's minimal information on how much these car owners continue to depend on automotive fuel.

What's causing the global excitement about LNG? As the planet grapples with an environmental emergency, liquefied natural gas presents a greener, more viable energy alternative. But what makes LNG crucial to the shift in energy use, and how does it impact everyday living?

From the desk of the Morning Studio editors, November 28

Continue reading to delve into the narrative

With the global climate emergency on the rise, liquid natural gas presents a greener, more viable energy alternative. However, why is LNG crucial to the shift towards sustainable energy, and in what ways does it impact our everyday lives?

From the Morning Studio Editors, November 28, 202

Continue reading to delve into the narrative

The top experts in climate science forecast a significant increase in worldwide temperatures, surpassing the globally set limits in the future years. Preventing this impending climate disaster makes the shift to greener energy sources even more essential.

In order to meet the temperature goals outlined in the Paris Agreement, natural gas is viewed as an appropriate interim energy source as we move towards more environmentally friendly options. Specifically, liquefied natural gas (LNG), which emits less carbon than other conventional fossil fuels like coal, is a key player in initiatives to control global warming, as per the scholarly research resource, ScienceDirect.

LNG towards a more sustainable future

However, first, what exactly is LNG?

Why do certain energy specialists champion LNG as a key energy resource that might fuel our future?

Petronas' initiatives towards carbon neutrality

Top figures in the industry are taking action to make sure that LNG fulfills its potential for a future with less carbon emissions. Petronas has been a leader in this field for over four decades, providing and moving LNG.

LNG plays a vital role in Petronas' plans for a future with reduced carbon emissions. However, the Malaysian energy company is also dedicated to decarbonisation and lowering operational emissions through a number of significant measures set out in its "Net Zero Carbon Emissions by 2050" roadmap.

In order to fulfill its goal of net-zero emissions, Petronas has pledged to meet the subsequent decarbonisation objectives:

Immediate Objectives

By the conclusion of 2024, Petronas aims to limit their Malaysian operations' greenhouse gas emissions to 49.5 million metric tonnes of carbon dioxide equivalent (MtCO₂e). Also, the goal is to cut their global natural gas value chain's methane emissions in half by 2025, as compared to the levels recorded in 2019.

In line with its goal to reach net-zero emissions, Petronas has pledged to meet the subsequent targets for carbon reduction:

Goals for the Intermediate Term

Petronas aims to cut its overall emissions by 25 per cent by the year 2030. This target includes a 70 per cent decrease in methane emissions from its global natural gas value chain, alongside a 50 per cent decrease in methane emissions from Malaysia's natural gas value chain, all measured from the baseline levels of 2019.

In order to fulfill its goal of net-zero emissions, Petronas has pledged to meet the subsequent carbon reduction objectives:

Ultimate Objective

Achieve a balance of zero carbon emissions through

LNG observed in real-world settings

Globally, the dependence on LNG is increasing at an impressive rate, signaling a worldwide progression towards more eco-friendly energy. This form of energy is already being utilized in numerous countries globally, with Asia – specifically Japan, South Korea, and China – being notable examples. Petronas, as one of the world's leading LNG producers, has supplied LNG to over 55 terminals in more than 25 countries around the globe. LNG is instrumental in people's daily routines, enabling everyday tasks to proceed without hitches.

For instance, Japan heavily depends on LNG, accounting for approximately 24 per cent of its overall energy consumption. The rise in reliance on LNG largely stems from the country's learnings from the 2011 earthquake and tsunami, which resulted in a Fukushima power plant being put out of action.

The main use for Japan's supply of LNG is in power generation, but it also serves as a source of heat and fuel for cooking in the majority of homes.

In Singapore, nearly 95% of the power comes from natural gas, viewed by the nation as the most eco-friendly type of fossil fuel. The nation is constantly on the lookout for cleaner energy imports from foreign countries, such as Malaysia and Indonesia.

The city state is also expanding its natural gas sources through an LNG terminal functioning on Jurong Island, with intentions to construct a second terminal soon to assist new industrial areas and power stations.

The usage of LNG is becoming more popular due to its adaptability and effectiveness.

In 2023, the worldwide trade in liquefied natural gas (LNG) saw a rise to 401.4 metric tonnes, marking an increase of 8.4 metric tonnes. The United States held the top spot as the largest exporter of LNG in the same year, distributing a total of 84.5 metric tonnes, which signifies an 8.9 metric tonnes increase from the previous year.

China reclaimed its position as the globe's foremost LNG importer in 2023, with a total import of 71.2 metric tonnes, showing an increase of 7.6 metric tonnes from 2022.

As global efforts towards decarbonisation gain momentum, LNG is expected to play a pivotal role in leading the shift towards sustainable energy. The gas industry itself is evolving through a decarbonisation phase, which involves speeding up the use of carbon capture, low-carbon solutions, and renewable energy, as well as the eradication of methane emissions. These measures solidify the role of LNG and the wider energy sector in achieving global climate objectives. Through concerted efforts, the world can anticipate a greener and more sustainable future.

Narrative crafted by Morning Studio

Creative Supervisors

Venice Ng, Wing Chan

Editors

Fairoza Mansor, Reggie Ho

Assistant Editor

Megan McCoid

Observation Scope | China's tariff issues are minor compared to Germany's economic difficulties

An escalating trade conflict could cause more chaos to Europe's biggest economy, which is already grappling with economic slowdown, decreased exports, and geopolitical stress.

Trump, known for his unpredictable nature, has once again sparked debate regarding the depth, extent, and tactics of his tariff policies. Nevertheless, a quick look at the trade surpluses of the countries targeted by these policies – these three economies along with the euro zone have the biggest bilateral surpluses with the US – indicates Trump is acting consistently with his usual behavior.

Trump has a strong distrust towards trade, seeing it only from the shallow perspective of two-party balances. He is targeting countries that have significant trade surpluses with the US. According to the incoming president and his team, any country that has a large surplus with the US is likely taking high-paying manufacturing jobs away from the US, thus undermining the middle class.

With a significant downturn in China's economy, European exporters have turned to the US market to compensate for the shortfall. This is particularly evident in Germany, where trade surplus solely with the US makes up 40 per cent of the EU's total, as stated by GlobalData TS Lombard.

Standard Chartered's CEO suggests that while US import duties may cause disturbances, 'markets will find balance'. He asserts that 'Global trade is pushing ahead. It continues to provide vast benefits globally, a fact that is widely acknowledged,' says Winters.

"Although there may be disturbances, markets will eventually balance out. If a nation imposes a trade tax on another, commerce will simply redirect itself," Winters stated on his recent trip to Hong Kong.

Numerous promises were given throughout the [US presidential] campaign, and, in terms of their general intent, I'm certain they'll be respected.

The bank headquartered in London, that earns a significant portion of its revenue from Asia, is relying on its expertise in international transactions and investments for future expansion. In addition, it plans to focus on wealth management to serve the increasing number of wealthy clients in Asia.

In Vietnam, China emerged as the leading direct investor, accounting for 29.7% of all fresh initiatives in the initial seven months of the current year.

The 'Emperor's Home' penthouse in Hong Kong was purchased at a discount of 68% as financially struggling magnates sell off their assets. Analysts predict that this trend of asset disposal by owners under economic stress will persist until there is a significant reduction in interest rates.

Tycoons from Hong Kong and mainland China, under financial strain, persist in selling their real estate properties in the city at a loss. This is happening as the market experiences a resurgence in deals, drawing in more individuals looking for good deals.

A tri-level penthouse apartment located in The Arch complex on top of Kowloon station in Hong Kong was sold on Tuesday. This apartment was part of a collection of six properties in receivership that were sold for a total of HK$410 million (US$52.7 million). This is a significant 68% reduction from the original asking price of HK$1.3 billion in 2021. The property collection, which included six parking spaces, was previously owned by Hui Chi-ming, the ex-chairman of Sino Union Petroleum & Chemical International, as per the Land Registry.

Unprecedented interest rates, along with a decline in the real estate market in Hong Kong and mainland China, have compelled some heavily indebted borrowers to resort to desperate sales. In the meantime, the prolonged slump in the property market has dwindled the personal wealth of regional and mainland business proprietors and real estate magnates.

"Owners under financial strain will persist in selling off their properties until there is a significant decrease in interest rates," stated Tom Ko, the executive director and leader of capital markets for Cushman & Wakefield in Hong Kong.

In the meantime, the relatives of the deceased 'Shop King' of Hong Kong, Tang Shing-bor, are attempting to offload their Hotel Ease Access located in Tsuen Wan, as stated by Cushman & Wakefield, the exclusive broker. The 21-floor hotel, which comprises 170 rooms, is now priced at HK$300 million, experiencing a 40 per cent depreciation from its initial selling price last year.

Naomi Osaka shares personal experiences at Women Aces in Leadership gathering

The renowned tennis player teamed up with other female sportspersons and worldwide executives at the discussion event, which took place alongside the Prudential Hong Kong Tennis Open.

One hour and seventeen

Naomi Osaka is set to be one of the speakers at the Women Aces in Leadership event.

In both the sporting and corporate world, women have tirelessly battled for upper echelon positions. This made the Prudential Hong Kong Tennis Open an appropriate occasion to gather a renowned group of international tennis athletes and high-ranking executives from across the globe for a special event celebrating the achievements of women leaders.

Last month, Prudential hosted the Women Aces in Leadership event in Hong Kong. This event was linked with the women's tennis tournament that Prudential has been sponsoring since 2014, as a part of their initiative to emphasize the significance of resilience to the younger generations. Additionally, Prudential aims to promote diversity, equality, and inclusivity in both the sports and business sectors.

At the commencement of the event, Angel Ng, the Regional Chief Executive Officer for Greater China's customer and wealth division at Prudential Group, stated: "Promoting a healthy and active lifestyle among individuals is one of Prudential's key objectives. This is why we are intensely dedicated to backing women in the field of sports."

Over 120 attendees convened to listen to two panel debates where seven women achievers from the spheres of sports and business, featuring four-time Grand Slam tennis winner Naomi Osaka, recounted their individual paths to triumph in their respective industries.

The initial conversation, named "Emerging Talents: Guidance and Psychological Strength for Future Leaders", showcased Osaka as well as Lilian Ng, the director in charge of the Strategic Business Group at Prudential Group, and Mary Huen, the Chief Executive Officer for Hong Kong, Greater China, and North Asia at Standard Chartered Bank.

The founder of Chinese retail company Miniso has criticized Douyin, owned by ByteDance, for its excessive charges. This represents the second major public criticism of Douyin in recent days, with some of China's richest people being involved.

Quoting statistics from the video, Ye mentioned that in 2023, Douyin reported a total trade value of 2 trillion yuan (approximately US$276 billion). Out of this, 40% was given back as refunds. Concurrently, the total income from advertisements hit 400 billion yuan during the same timeframe.

Reacting to the posts on social media, a spokesperson from Douyin stated, "The statistics mentioned are incorrect."

Neither Miniso nor the internet personality promptly replied to a plea for their input. By Thursday midday, the WeChat posts from Ye and the influencer that were aimed at Douyin had been removed from the internet.

Miniso's critical message represents the second notable criticism of Douyin in recent days, coming from some of the most affluent people in mainland China.

BOC Life provides insurance policies for those in Hong Kong who wish to spend their retirement years in cities on the mainland. In 2022, it's estimated that about 88,000 individuals from Hong Kong, aged 65 and older, resided in the southern region of Guangdong. This represents an increase of 11% compared to the numbers from 2017.

BOC Life has announced a strategy to provide insurance protection for Hong Kong retirees intending to reside in mainland China, citing the city's aging population as a rising business prospect.

The company, a subsidiary of China's third largest bank, Bank of China, plans to provide cheaper insurance packages for its approximately 150,000 current clients who are considering residing in 18 major cities in mainland China. These cities include nine from the southern Guangdong province, which is part of the Greater Bay Area, as well as Hangzhou, Chengdu, Dali, and Qingdao.

Through their RetireCation plan, policyholders have the option to utilize their cash value to cover the cost of accommodations offered by the company's business associates, stated CEO Wilson Tang. The insurance company also provides guidance on transportation logistics, as well as cultural, medical, and other social events. Policyholders have the flexibility to choose a stay duration of a week or more, he further explained.

"Hong Kong is witnessing a surge in its elderly population, leading to a high need for retirement services," Tang stated during a press conference on Thursday. "Given the steep living expenses, numerous retirees are looking at more affordable living alternatives elsewhere. This is predicted to give rise to fresh business prospects in the future."

In 2023, approximately 22 per cent of Hong Kong's population of 7.5 million were individuals aged 65 and older, as per the data from the statistics department. Life expectancy in Hong Kong has seen a significant rise since 1971, going up to 82.5 years from 67.8 for males and increasing to 88.1 from 75.3 for females. Government records revealed that in 2022, about 88,000 Hong Kong inhabitants aged 65 and above resided in Guangdong, indicating an 11 per cent increase compared to 2017.

BOC Life isn't the only company capitalizing on this market sector. Other firms like Ping An Insurance, HSBC Life and Manulife have also launched retirement-focused products and services to secure a part of the market share. To cope with increasing living expenses, many Hong Kong residents are choosing to spend their money across the border where they can get more value for their money on necessities such as food, leisure activities, and housing.

Four thirty-six

People from Hong Kong are searching for deals on items like roast chicken and soap at an American warehouse retailer located in mainland China.

As an illustration, Ping An provides in-home elderly care services to their policyholders and is in the process of establishing three luxury elderly care facilities in Shenzhen, Guangzhou, and Foshan, according to co-CEO Michael Guo Xiaotao's statement in August. Meanwhile, HSBC Life and Manulife have recently introduced services to assist retirees in Hong Kong in managing their wealth.

Hong Kong provides funding to encourage the release of tokenised bonds with the aim of becoming a centre for cryptocurrency. The city's unofficial central bank is offering up to HK$2.5 million in subsidies for each issuance to eligible issuers of tokenised bonds.

The unofficial main bank of the city has initiated a grant program that will last for three years. This program will provide up to HK$2.5 million (US$321,000) in financial support for each release to eligible tokenised-bond issuers, with a limit of two releases, according to the HKMA's announcement on Thursday.

Tokenized bonds log advantageous interests on a blockchain, which is a decentralized digital record, rather than utilizing conventional computer-based ledger entries.

The initial release demonstrated that the provision of tokenised bonds is successful in Hong Kong, stated Kenneth Hui, a high-ranking official at HKMA, during a press conference on Thursday. He further added that the second release confirmed that this business approach could aid in popularising bond tokenisation in the primary market.

The financial watchdog aims to "expand the limits" by transforming theories into practical uses, as stated by Hui.