Analysts predict a slowdown in the launch of new high-end electric vehicles by Chinese manufacturers due to low consumer interest. They foresee the pace of the luxury EV market easing up next year, given the reduced demand and shrinking cash reserves.

Following the early victories of Chinese electric vehicle (EV) producers, who managed to gain a foothold in the luxury market previously ruled by BMW and Mercedes-Benz, market analysts are predicting a decline in sales of upscale models next year. This is due to a slump in demand and decreasing cash reserves.

Shenzhen Denza New Energy Automotive, a joint electric vehicle project between BYD and Mercedes-Benz, unveiled the 2025 model of its D9, a high-end multipurpose vehicle (MPV), in Shenzhen on Thursday.

The model, featuring BYD's BAS 3.0+ cutting-edge driver assistance system, comes in five hybrid options that can be plugged in, and three purely electric versions. The price ranges from 339,800 yuan (equivalent to US$46,555) to 469,800 yuan. Denza claims to have made over 300,000 sales of the D9 model since its introduction in 2022.

Figures from China's premier car website, Autohome, pointed out that D9's monthly sales suffered a dip in July, August, and September compared to the same period from last year. The third-quarter financial statement of BYD revealed that Denza's total sales had decreased by 14 per cent from the previous quarter.

Phate Zhang, the founder of CnEVPost, a Shanghai-based electric car data provider, believes that by 2025, car manufacturers will likely reduce the release of new high-end models and instead concentrate on improving their current models.

Growth within this market sector is quite challenging. This, along with the general decline in the electric vehicle market, has resulted in significant difficulties for luxury electric vehicle models in terms of sales this year.

The high-end electric vehicle sector, valued between 200,000 and 300,000 yuan, has become a competitive arena for Chinese auto manufacturers seeking to enhance their brand reputation and broaden their clientele.

The GenAI industry in China is gaining momentum, with an increase in LLM filings being noted in Beijing. The most recent registrations of GenAI services in Beijing comprised of substantial language models from Zhipu AI and Rigo Design, an associate of Xiaomi.

The Beijing branch of the CAC has reportedly given approval to a total of 105 LLMs up until Friday, according to their statement

Beijing has been the leader in China for authorizing LLMs. The CAC's data shows that over 309 GenAI items created by local tech firms have been given the green light for their LLMs up until November. Beijing topped the list with 96 approvals.

Could stars such as Chow Yun-fat from Hong Kong secure buyers for their high-end residences in 2025? Derek Chan from Ricacorp predicts a potential 5% increase in the prices of luxury properties next year, which is expected to coincide with a similar rise in rental rates.

Famous personalities such as Chow Yun-fat may have been compelled to cut down the costs of their lavish residences at The Peak, the most prestigious residential area in Hong Kong. However, experts are of the opinion that the downturn has hit rock bottom and there will be a resurgence in demand for upscale homes next year.

The just-concluded yearly gathering of China's main economic work committee, led by President Xi Jinping, suggested a more assertive and daring approach to policy easing to steady the country's real estate and stock markets in the coming year. This is likely to enhance trust in the city's property sector, according to sources.

"Derek Chan, the research leader at Ricacorp Properties, predicts a positive outlook for the high-end property market in 2025, stemming from a general bounce-back in the real estate industry. He adds that the projected overall economic growth in Asia and the continuous economic betterment in Hong Kong are factors that may boost the property market in the upcoming year."

Chan anticipates a surge in luxury real estate prices by up to 5 per cent in the coming year. Likewise, he predicts a comparable increase in rental rates for upscale properties.

Other market analysts have expressed similar views.

Martin Wong, who is the senior director and head of research and consultancy for Knight Frank in Greater China, also predicted a likely enhancement in transactions.

The economic downturn and market instability are affecting donations to Hong Kong's Community Chest. Companies such as HSBC and Cigna have committed to increase their support for social welfare initiatives in the coming year.

Recent economic instability has impacted the contributions received by the Community Chest of Hong Kong, an organization that raises money to assist a variety of social welfare initiatives in the city.

The charity organization garnered donations amounting to HK$220.3 million (US$28 million) in the fiscal year ending March 31, reflecting a 23% decline compared to the previous year, as per their yearly report. This also signifies a 43% drop from pre-Covid-19 times in 2019. The organization was compelled to delve into its savings to offset the shortfall.

Raising funds has been quite difficult in the last two years, according to a representative. The harsh financial climate has significantly influenced charity contributions, and corporate donations have been especially impacted due to reductions in their spending on corporate and social responsibility, he further explained.

The highest contributors throughout the year were HSBC, Cheung Kong Group, The Wharf Group, Bank of China (Hong Kong), and Sun Hung Kai Properties. Completing the top 10 lineup were Hang Seng Bank, Biel Crystal, Fuji Photo Products, Tencent Charity Foundation, and Microware.

One hour and twenty

HSBC is dedicated to the well-being of Hong Kong and is always prepared to assist those who require help.

Established in November 1968, the Chest collects money to support 167 member organizations that operate in six key service sectors – services for children and young people, senior citizens, family and child welfare, healthcare, rehabilitation and post-treatment care, and community growth.

Experts in economics have stated that the recent economic downturn and the two-year battle of the Hang Seng Index has negatively impacted both corporations and private citizens. The Hong Kong General Chamber of Commerce revealed on December 12 that nearly 44% of companies hold a bleak view of the city's economy for the coming year, marking the highest level of pessimism in half a decade.

Huawei's latest high-end smartphones are equipped with memory chips from South Korea, not China. Despite having Chinese memory chips in other models, the Mate 70 series incorporates products from SK Hynix, as displayed by a detailed examination.

Last week, a disassembly report was released by a Canadian company's analysts, revealing that they discovered a 12-gigabyte low-energy mobile DRAM and 512GB NAND in a Huawei Mate 70 Pro smartphone. The more advanced Mate 70 Pro Plus phone had the same NAND and an upgraded 16GB DRAM from SK Hynix.

Mobile DRAM devices were produced by SK Hynix using 14-nanometer tech and sophisticated extreme ultraviolet lithography, as stated by Senior Analyst Jeongdong Choe at TechInsights. NAND refers to a kind of memory used in flash storage, and DRAM, an acronym for dynamic random-access memories, is typically utilized in smartphones and computers.

Huawei chose not to respond. SK Hynix stated on Thursday that it has been rigorously adhering to the applicable policies ever since the limitations on Huawei were made public and has ceased all dealings with the company from that point forward.

In a shocking move in 2023, Huawei unveiled its Mate 60 Pro smartphone, equipped with a state-of-the-art chip manufactured domestically. However, TechInsights data indicates that a majority of the company's premium P and Mate series phones released the previous year still housed DRAM and NAND chips produced by SK Hynix.

Shares in China experience a moderate increase as market participants anticipate clear direction on stimulus measures during the festive week. Chinese shares have remained fairly stable over the previous two months as investors prepare for the successful execution of stimulus policies.

The CSI 300 Index, a measure of the 300 biggest stocks in Shanghai and Shenzhen, increased by 0.1 per cent, closing at 3,987.48. Over the previous three days, the index had grown by 1.5 per cent. It's important to note that Christmas isn't recognized as a public holiday in China.

The Shanghai Composite Index also saw a slight increase of 0.1 per cent. Tech and telecommunications companies proved to be the strongest among the 10 industrial sectors in the CSI 300, while utility and energy shares fell short.

For the past two months, Chinese shares have remained fairly stable as market participants anticipate the successful execution of the government's economic boost strategies. Investors are predicting that Beijing will implement additional reductions in interest rates and increase the government's borrowing cap next year to stimulate growth, following a policy change by the capital's leading authorities.

The People's Bank of China chose not to reduce borrowing rates on Wednesday, leading experts to speculate that it's holding off on utilizing its policy measures until later to address the economic repercussions of the Trump administration. November's economic figures indicate that China's inconsistent economic rebound is still ongoing, with consumer expenditure remaining low and a continued trend of producer-price deflation.

"Although there have been prior efforts to stimulate the economy with financial relaxation and increased liquidity, they have not been very successful," stated Stephen Innes, the chief executive officer of SPI Asset Management in Bangkok. "As concerns about deflation are close behind, Beijing is ready to take decisive action."

The proposed stablecoin law is making progress in the Hong Kong legislature, with supporters highlighting its numerous applications. Industry specialists believe that stablecoins have the potential to extend their reach in the actual financial market.

People in Hong Kong are gradually moving towards the utilization of stablecoins for various purposes including local transactions and international trade settlements, as a legislation concerning this digital currency is being processed in the Legislative Council.

A possible application could be the automation of rewards, discounts, or loyalty points in digital wallets, similar to the Octopus scheme, through the use of stablecoins' programmability. This involves the capacity to integrate rules and data into the blockchain.

For instance, if a customer is part of a rewards scheme, their purchases could be directly added to their loyalty account and discounts could be implemented at the point of sale without the customer having to share their membership information.

Hong Kong's MPF is poised for its highest yield in four years; the projection for 2025 appears 'favorable'.

MPF Ratings advises that 'members might be inclined to favor US stocks in their portfolio, but it's crucial to maintain a diverse investment mix'.

According to independent research firm, MPF Ratings, the MPF's 379 investment funds have seen a projected profit of around HK$102.8 billion (US$13.2 billion) this year, as of December 18. This marks the third occasion where the fund's earnings have surpassed the HK$100 billion mark.

Thus far this year, American stock funds have outperformed others with an impressive 21.5% increase. Japanese stock funds follow closely, having risen by 18.7%. Stock funds in China and Hong Kong are in third place with a 15.5% gain.

Instituted in the year 2000, MPF is a mandatory pension plan that includes 4.7 million existing and past employees.

A Shanghai-supported company assists AI startup Stepfun in securing 'hundreds of millions of dollars'

Fortera Capital, a private investment firm affiliated with the Shanghai State-owned Capital Investment Co, spearheaded the latest series B financing for Stepfun.

The recent series B funding for Stepfun was spearheaded by Fortera Capital, a private-equity company that operates under the Shanghai State-owned Capital Investment Co (SSCIC), as revealed in Fortera's WeChat message on Monday.

Stepfun, a startup based in Shanghai that was established in April of the previous year, plans to utilize its recent financial backing to create basic AI models. These models will concentrate on multifaceted abilities and intricate reasoning, the startup's post on Fortera's WeChat revealed. This will also aid in enhancing the firm's range of products targeted at consumers.

The most recent action from Shanghai's city government demonstrates the city's increasing endeavors to enhance technological advancement in key sectors.

Insurance companies BOC Life, HSBC, and Manulife are targeting a larger portion of Hong Kong's elderly market. As per government statistics, in 2023, individuals aged 65 and above accounted for roughly 22% of Hong Kong's total population of 7.5 million.

Individuals who are 65 years old or older constituted 22% of the city's population of 7.5 million last year, as reported by the department of statistics. From 1971, there's been a rise in the average lifespan in Hong Kong, reaching 82.5 years from 67.8 for males, and for females, it's risen to 88.1 from 75.3 as of 2023.

BOC Life is looking to expand its "RetireCation" program, which was introduced last month. This scheme permits policy holders to utilize the monetary value of their retirement plans to fund their accommodation in properties offered by their partners in significant cities on the mainland. The insurance company has plans to extend its services to Southeast Asia and Japan in the upcoming year.

"Previously, insurance firms primarily offered security to families in the event of the sudden demise of their primary earners," stated Wilson Tang, BOC Life's CEO, during an interview. "Currently, there's a growing need for retirement security due to the extended lifespan of individuals. Hence, it's crucial for them to begin retirement planning at an early stage."

Tang indicated that the company will also focus on creating products for affluent clients, particularly in the area of estate planning.

Edward Moncreiffe, the chief executive officer of HSBC's global insurance, stated that there is a high demand for products that enable wealth transfer to the succeeding generation.

Li Auto, a Chinese competitor to Tesla, is looking to broaden its horizons to include AI and robotics. The luxury electric vehicle manufacturer's ambition is to create humanoid robots once they've mastered level-4 self-driving technology, according to their CEO Li Xiang.

Artificial Intelligence (AI) is integral to Li Auto's future, according to the company's founder and CEO, Li Xiang, in a video released on the luxury electric vehicle manufacturer's website on Wednesday. Li Xiang expressed the company's ambition for its core AI model to rank among China's top three, challenging not just automotive companies, but significant technology corporations as well, within a few years.

Li Auto is set to unveil a mobile application for its AI assistant, Lixiang Tongxue, which has been developed using its proprietary Mind GPT model, said Li.

The South China Morning Post is owned by Alibaba.

Stepfun, an AI start-up, has garnered 'hundreds of millions of dollars' in funding with the assistance of Shanghai-supported company, Fortera Capital. This private-equity firm, which operates under Shanghai State-owned Capital Investment Co, spearheaded Stepfun's latest Series B financing round.

The private equity company, Fortera Capital, which operates under the umbrella of Shanghai State-owned Capital Investment Co (SSCIC), was the leader in the recent series B funding round for Stepfun, as revealed in a WeChat post by Fortera on Monday.

Stepfun, a Shanghai-based company established in April of the previous year, plans to utilize its recent funding to build foundational AI models. These models will concentrate on multimodal functions and intricate reasoning, aiming to enhance the start-up's product range targeted towards consumers. This information was relayed via a WeChat post by Fortera.

Shanghai's city administration's most recent project demonstrates the city's increasing endeavors to enhance technological advancement in key sectors.