Data indicates that the GenAI industry in China is experiencing more investments but fewer transactions, suggesting a trend towards consolidation. This year's total investments reached 35 billion yuan, a significant increase from last year's 20.5 billion yuan, indicating a more discerning approach from investors.

The generative artificial intelligence (GenAI) industry in China has attracted increased financial backing this year, despite a decrease in the number of deals. This is due to investors becoming more selective due to market saturation, as per industry statistics.

As of December 18, the GenAI sector in China had secured 113 agreements, a drop of roughly 20 per cent from the 143 recorded the previous year, based on information gathered by Itjuzi.com, a database service for start-ups.

The overall funding this year reached 35 billion yuan (US$4.8 billion), a significant increase from last year's 20.5 billion yuan. This indicates that investors are becoming more cautious in their investment choices due to the saturated market and the unpredictability of how new AI products will generate revenue.

The top four AI firms in China – Zhipu AI, Moonshot AI, Baichuan, and MiniMax, collectively referred to as the Chinese AI Tigers, have raised approximately $2.1 billion this year, as per company announcements and news stories. This accounts for nearly half of the total investment made in the Chinese GenAI market this year.

CATL plans on constructing 1,000 electric vehicle (EV) battery exchange facilities in China to alleviate concerns over driving distance. The company, along with its collaborators such as Changan Auto and FAW Group, will develop ten new EV models that incorporate this battery swap technology, as stated by the chairman.

The firm announced that the facilities would enable electric vehicle owners to swap their depleted battery packs with fully powered ones in less than two minutes. Some of these stations are planned for construction in Hong Kong and Macau, as part of increased efforts to transition more users away from gas-fueled vehicles.

"CATL is committed to advancing top-notch EV battery technologies," stated Robin Zeng Yuqun, the billionaire originator and head of the company, during a digital press conference on Wednesday. "Being the market front-runner, we plan to collaborate with our associates to establish a robust environment for facilitating innovative advancements."

Headquartered in Ningde, in the east of Fujian province, CATL has plans to construct a total of 30,000 battery exchange sites in the future, according to Zeng, who did not provide a particular timeline. To broaden the charging network, the company will also welcome outside investors.

CATL, a battery supplier for major clients like Tesla and BMW, also provides EV users with swappable battery rental services starting from 369 yuan (equivalent to US$51) per month. The company has received subscription orders for its Choco-SEB batteries from over 30 companies, amounting to a total of 107,500 units, as reported by Zeng at the press conference.

CATL, along with its collaborators including Changan Automobile and FAW Group, plans to create 10 additional electric vehicle models utilizing battery switch technology, the firm announced.

Despite falling stock prices and financial difficulties, New World intends to maintain its business plan. On Wednesday, the firm's shares dropped 6.7% to HK$5.27, leading to a total decline of 55% this year.

New World Development (NWD) has announced its intention to maintain its current corporate strategy, despite worries regarding its financial stability after reporting a historic yearly loss and an increased debt burden.

"We want to emphasize again that we remain in adherence with disclosure obligations, offering prompt and fitting updates to our investors and shareholders," the company stated on Wednesday. They also mentioned that they have observed "several false speculations and rumors" about the firm.

The developer, listed in Hong Kong, did not provide further details on the rumors or its business plan. Echo Huang Shaomei was announced as the new CEO on November 29, succeeding Eric Ma Siu-cheung who held the position for just two months.

The most recent announcement was made following a 6.7 per cent drop in the company's shares to HK$5.27 on Wednesday, the lowest they've been since at least 1986 based on data from Bloomberg. The shares have seen a 20 per cent decrease in the last five days, contributing to a total drop of 55 per cent this year. The company first went public in 1972.

As per the annual report, New World Development (NWD) had a consolidated net debt of around HK$123.7 billion (US$16 billion) as of June 30. Its net gearing or debt-to-equity ratio stood at 55%, which is among the top in the industry. The company's interest-based loans and bonds totaled to HK$151.6 billion. NWD recorded an unprecedented loss of HK$19.7 billion for the fiscal year ending June 30.

The software creator sent a letter to its financial lenders requesting a relaxation of loan terms, according to a recent report from Debtwire that referred to anonymous sources. The company asked for leniency following a violation of its net debt-to-assets ratio limit, a situation that could potentially enable lenders to demand immediate repayment of their loans, as per the report.

TikTok urgently requests the US Supreme Court to pause the enforcement of a divestiture or prohibition law until further examination. The topmost court in the US is being called upon to reassess a lower court's decision, while Donald Trump commends the widely-used video application for its role in bridging the gap between him and younger electorate.

The submission contended that only under exceptional and limited situations have speech limitations endured the Constitution's strictest criteria.

The prohibition, set to commence on January 19, 2025, will bar TikTok's operations in the US unless it's purchased by a company not based in China.

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The CEO of TikTok vehemently refutes any connections to the Chinese Communist Party during a tense dialogue with a US senator.

"Prior to any further proceedings, it is of significant public concern that this court has the chance to carry out a thorough examination," stated the document, arguing that the case "brings up unique constitutional issues with far-reaching implications for the whole country".

Opinion | The pathway for China to accomplish its upcoming economic surge

For China to reach its new economic height, it must let go of the remnants of its constrictive centrally planned economy. This would make room for a more market-oriented distribution of land, funds, and workforce.

The future of the global economy and international political scene in 2025 will rely greatly on China, which holds the position as the world's biggest exporter and second-most significant consumer market. However, current evaluations of China's economic stability have serious inaccuracies.

My Perspective | As Nvidia faces antitrust investigation, China takes a firmer position against US 'AI collaborators'

It's possible that Beijing is seeking to strengthen its reaction to the rising tensions with Washington over chips, beginning with a warning for the AI-chip manufacturer.

The prominent investigation may be interpreted as a cautionary message to Nvidia, instead of a penalty. The international ministry of foreign affairs, for example, has not hesitated to place American companies viewed as adversarial to China on a list of sanctions. This involves instructing Chinese individuals and businesses to cut off connections with these sanctioned companies and refusing visa applications from executives of these targeted firms. Violations consist of overstepping China's "red lines", such as dealing arms to Taiwan.

Nvidia's circumstances aren't as grave as what Micron encountered the previous year. In May 2023, the American memory chip manufacturer was confronted with claims by China's Cyberspace Administration, asserting that its products posed a "national security" threat. Consequently, crucial data infrastructure operators in China were instructed to halt their purchases from Micron.

In the most unfavorable potential circumstance for Nvidia, a non-fabricating chip designer that continues to operate in China, they may have to pay a penalty to the country's market regulator for "correction," a situation reminiscent of what Qualcomm experienced in 2015.

Before its duties were transferred to the State Administration for Market Regulation, the National Development Reform Commission (NDRC) of China, acting as the country's competition regulator, imposed a fine of 6.1 billion yuan, roughly equivalent to US$1 billion then, on Qualcomm. This penalty came after a year of investigation into the leading mobile chip maker on claims of market power misuse. Even after ten years, China continues to be Qualcomm's biggest market.

The Post has revealed that Nvidia might be subjected to a fine as high as US$1 billion if it is proven to have breached the Anti-Monopoly Law, a sum that the third most valuable company globally can readily handle. If this happens, Nvidia's operations in China would continue as normal.

Exclusive | Chinese companies establish relationships with UAE as the Gulf country serves as a global trade 'superconnector'

The increasing influence of China in innovative sectors is fostering collaborations with the UAE, according to the country head of HSBC.

More and more Chinese firms are looking for collaborations in the United Arab Emirates (UAE) as the Gulf country serves as a powerful link between the East and West. This is happening alongside a transition in commerce beyond the conventional industries, says a leading banking professional.

Due to China's significant investment in research and development, business growth has been witnessed in emerging sectors such as hydrogen, ammonia, carbon capture, electric vehicles, solar energy, and consumer technology. This was shared by Mohamed Al Marzooqi, the CEO of HSBC UAE, in an exclusive interview during the Abu Dhabi Finance Week held last week. These investments are propelling progress in these respective fields.

"Traditionally, interactions with China were quite restricted, however, we're now observing a shift from this pattern," he stated, further mentioning that numerous important infrastructure developments in the UAE involve Chinese corporations.

The international financial hub of the UAE capital, Abu Dhabi Global Market (ADGM), has entered into a partnership with the Beijing Financial Street Service Bureau. This agreement, aimed at enhancing collaboration, was signed during the UAE-China Investment Summit which took place during Abu Dhabi's Finance Week. The Beijing bureau's role involves promoting and developing the Beijing Financial Street region into a national financial administration center.

Chinese businesses are contributing to nearly half of the ongoing renewable energy initiatives in the United Arab Emirates (UAE), as per Al Marzooqi. Chinese firms specializing in solar photovoltaic production are intensifying their efforts in the UAE and the Middle East, aiming to meet local needs and to function as access points to the US, European, and other global markets.

Hong Kong's stock market experiences a second day of decline, wiping out all progress achieved last week. Trader sentiment has remained low since the end of last week, and any profits made from a short-lived recovery have been wiped out.

On Tuesday, the Hang Seng Index witnessed a decrease of 0.2 per cent, closing at 19,751.81. Similarly, the Hang Seng Tech Index also saw a fall of 0.5 per cent. However, the CSI 300 Index in the mainland experienced a slight increase of 0.3 per cent, contrasting with the Shanghai Composite Index which dropped by 0.7 per cent.

During the afternoon trading, stock prices experienced a brief surge following news that China plans to raise its budget deficit to 4 per cent of its total GDP next year, a move aimed at mitigating risks from US tariffs. The Hang Seng Index initially climbed by up to 0.7 per cent, but it eventually dipped once more.

Trader sentiment has been downcast since the end of last week, wiping out any profits that came from a short-lived recovery. Stocks fell on Friday following a report from a significant Chinese economic policy meeting that failed to appease investors. The officials mainly echoed the same rhetoric from a Politburo meeting held earlier in the week, leaving traders feeling the report lacked specifics on Beijing's strategies for reviving economic growth next year.

Investors were optimistic about potential stimulus policies from the yearly Central Economic Work Conference, however, their expectations were not met as no fresh initiatives were unveiled," stated Kenny Ng, a strategist at Everbright Securities International. "The mood further deteriorated when China's consumption data, which was lower than anticipated, showed no progress even with numerous supportive measures in place."

Deye, a Chinese company that produces solar inverters, plans to pour $150 million into a manufacturing base in Malaysia. The firm's strategy includes establishing a subsidiary in the country to manufacture solar photovoltaic equipment and energy storage items.

The corporation announced plans to establish a branch in Malaysia for the production of solar photovoltaic (PV) equipment and energy storage items, as per a statement released in Shanghai on Monday. A significant component of a solar panel is the power inverter.

"As global circumstances and trade landscapes continue to shift, the need for expanding capabilities abroad is becoming more and more critical," stated the company.

Establishing a branch in Malaysia would aid the firm in broadening its global market reach and more adaptably counter any possible negative impacts from the larger economic landscape and international commerce.

The corporation stated that the proposed investment requires consent from both the Chinese and Malaysian authorities.

Solar and electric vehicle businesses from China are seeking growth in Southeast Asia as a strategy to bypass trade barriers imposed by the US and the European Union. These trade barriers are designed to shield domestic industries and prevent an influx of inexpensive imports.

Deye, a Chinese firm that produces solar inverters, is set to invest $150 million in a manufacturing facility in Malaysia. The company intends to establish a subsidiary in the country to manufacture solar photovoltaic equipment and energy storage items.

The firm announced plans to establish a branch in Malaysia for the production of solar photovoltaic (PV) equipment and energy storage products, as per a statement filed in Shanghai's stock exchange on Monday. A solar panel heavily relies on a power inverter.

"The company stated that the ever-changing global landscape and trading conditions make it increasingly critical to build capacity overseas."

Establishing a branch in Malaysia will assist the firm in broadening its international reach and more efficiently navigating potential challenges posed by the global economy and international commerce.

The business confirmed that the proposed investment requires authorization from both Chinese and Malaysian authorities.

Chinese firms in the solar and electric vehicle sectors are turning to Southeast Asia as a way to broaden their international reach and evade trade barriers imposed by the United States and the European Union. These barriers aim to safeguard domestic industries and prevent an influx of inexpensive imports that could saturate the market.

Hong Kong developer Parkview has listed a shopping center in downtown Beijing for sale. The proprietor of Parkview Green, colloquially referred to as Fang Cao Di, is reportedly struggling with costly mortgage repayments and a lack of tenants, according to insiders.

A significant business center in Beijing is being listed for sale by the Hong Kong-based real estate firm, Parkview Group. This move comes as the ongoing downturn in China's property market strains its financial resources.

Parkview Green, also recognized locally as Fang Cao Di, is situated in the heart of Beijing's business district. The property is currently on the market due to the company's struggle with significant mortgage costs and a low rate of tenancy in the capital, say sources who wish to remain anonymous due to the sensitive nature of the information.

A company owned by the Chinese government is considering buying the property, noted for its distinctive pyramid-like design, according to sources. Discussions are still in progress and no definitive choices have been decided, the sources further stated.

Finalized in 2012, the multi-purpose complex spanning 200,000 square meters, situated in Beijing's Chaoyang district, comprises a shopping mall, a hotel, corporate buildings, and a cultural centre, as stated on its website.

The possible transaction involving Parkview Green is happening during China's extended downturn in real estate and slow consumer expenditure. Retail sales saw an increase of 3% in November compared to the previous year, marking the lowest rate in three months and falling short of even the most pessimistic predictions.

In the meantime, there's a slump in China's commercial property market, as empty spaces in Beijing have surged to 20.6% in the second quarter, a peak not seen in a minimum of 15 years, as per a report from Bloomberg News referencing data from Colliers.

Restrictions on crop imports in China lead to soybean scarcity

Traders report that certain soybean processing facilities in Dongguan, located in Guangdong province, have been forced to halt operations for the past three weeks.

The attempts of the Chinese government to restrict the import of agricultural products this year are creating a scarcity of soybeans in the country's southern regions. This is due to extended delays at customs, as reported by traders familiar with the situation.

Several soybean processing facilities in Dongguan, a significant center for oilseed processing in Guangdong province, have been forced to halt operations over the past three weeks due to inadequate supply, according to undisclosed sources. These sources, who wished to remain anonymous as they are not permitted to speak publicly, revealed that shipments have been held up at the border for more than 20 days, a significant increase from the usual five-day delay.

Attempts to get a response from China's Customs General Administration were unsuccessful.

Dongguan is a significant hub for oilseed processing in China, hosting factories owned by corporations like the agricultural giant Cargill and Yihai Kerry Arawana Holdings. The costs for soybean meal, a component in animal feed, surged by nearly 7% last week in Guangdong, marking the largest hike since March, due to a supply shortage.

A representative from Wilmar International, Yihai Kerry's parent company, has stated that authorities are spending more time than is typically necessary to conduct quality checks on imported beans. There has been no response from Cargill regarding how this is affecting their Dongguan operations, despite attempts to reach them via email.

China, the globe's largest importer of food, has requested merchants and manufacturers to reduce their purchases of overseas grain this year. This is a strategy to prop up prices and bolster local agriculture during a decrease in local demand. Initially, the authorities proposed a reduction in corn acquisitions, followed by a request to stop importing barley and sorghum. However, these steps appear to be causing extended delays at customs for other types of crops as well.