Business
Hong Kong stock market ends six-day rise after the Chinese rate cut
- 2024-09-23
- Business
- By: Haoming Zhou、ZHAO RuntongEdited by: Runqing LI
- 2024-09-23
Hong Kong's stock market twisted the six-day increase and closed lower as China’s central bank slashed the short-term rate after the US interest rate eased the yuan’s pressure. The Hang Seng Index edged down by 0.06% to 18,247.11 at the close, snapping the six-day streak to last Friday, and the Hang Seng Tech Index decreased by 0.15% due to the drop in mainland electric vehicle stocks. XIAOMI-W Holdings jumped by 3.37% to HK$20.55 after announcing the official launch of the latest Redmi Note 14 series on Sept. 26. Chinese Aoyuan Group surged by 126.89% as the UAE-based investment firm, Multi Gold Group, became its main shareholder. The Chinese Biotech company Wuxi AppTec dropped by 3.65% at the close, and WuXi Biologics, its subsidiary, slipped by 5.08%. CHINA RES Power Group rallied 3.33% to its five-day high of HK$19.84 after the company published its financial report. LENOVO Group surged 2.56% to HK$9.63, and GEELY AUTO Group added 2.11% to HK$10.18 on its first trading day after launching its new car last Friday night. “The cut of US interest rate last week made Hong Kong’s stock gain rapidly,” said Herald van der Linde, the head of equity strategy, Asia Pacific at HSBC.“But this week, as initial excitement and confidence at first hearing the interest rate cut have passed, people are considering whether the market could meet their expectations.” Financial Secretary Paul Chan Mo-po reminded investors the pace of cuts in the prime rate used by commercial banks ‘may be slower’ than those in the US on Sept. 19. The People’s Bank of China cut the 14-day reverse repurchase rate to 1.85% from 1.95% on Monday to maintain the liquidity of the banking system, according to the statement on its website. The weak outlook of the US economy leads to the interest rate …
Hong Kong banks trim prime rates firstly in five years after the US rate cut
- 2024-09-19
- Business
- By: BO Chuxuan、Yichun FangEdited by: Junzhe JIANG
- 2024-09-19
Hong Kong lenders have lowered their prime rates for the first time since 2019 to boost the local economy just after the US Federal Reserve’s interest rate cut. HSBC cut the prime lending rate by a quarter of a point to 5.625% effective Friday, and the deposit rate over HK$5,000 will be decreased by the same margin to 0.625% per year, according to the bank. Bank of China (Hong Kong), also reduced the loan rate for its best customers by the same amount to 5.625%, starting from Sep. 23, the bank said. The action echoed the US Federal Reserve’s decision to cut the base rate by 50 basis points on Thursday. Hong Kong Monetary Authority, the city’s de facto central bank, followed the decrease to 5.25% to maintain the exchange rate with the US dollar. “By now various indicators show that inflationary pressure in the US has eased,” said Howard Lee, the acting chief executive at HKMA. “With signs of labour market cooling down, the Fed’s 50-basis-point rate cut is largely in line with market expectations.” During the Fed’s rate-hike cycle since March 2022 in response to inflation, interest rates were raised 11 times by a 5.25 percentage point, according to the HKMA. Chong Tai-leung, the executive director of Lau Chor Tak Institute of Global Economics and Finance, said the Interest rate cut will release money from fixed deposits, and most of this money will go back to the stock market, which simulates stocks upwards first. “If all the money from fixed deposits comes back, the stocks could be pushed to over 30,000; even half of it comes back, our stocks could also soar to about 24,000.” The Japanese stock market tops the increase of 2.1% among major Asian markets on Thursday. The Hang Seng Index reached a two-month high …
Midea’s Hong Kong IPO drives the market to a two-week high in its first-day trading
- 2024-09-17
- Business
- By: XIA Fan、WANG RuoshuiEdited by: Junzhe JIANG
- 2024-09-17
Midea Group pushes the Hang Seng Index to reach its highest in the past fortnight as the city’s biggest initial public offering in over three years amid the sluggish local market. Under code 0300, the shares of the global electronic appliance giant opened at HK$ 59.2, an 8% increase from its listing price of HK$ 54.8, and closed at HK$59.1. The Hang Seng Index reached a two-week high and closed at 17660.02 accordingly. The Company’s Shenzhen-listed shares climbed by 1.83% last Friday, while the CSI300 index, which indicates the performance of the Top 300 Chinese companies, dropped by 0.42% compared with the previous close. The Shanghai and Shenzhen stock markets are closed today due to the Mid-Autumn Festival. Midea Group's IPO this time received 5.31 times oversubscription for the public offering and 8.06 times oversubscription for the international offering. It sold 566 million shares after exercising the option to expand its offering by 15% due to the excess demand, according to the company’s filing to the Hong Kong Stock Exchange. The Foshan-based Midea priced its share at the top of the marketed range of HK$54.8 to raise $4 billion (around HK$31.2 billion), which made it the city’s biggest debut after Kuaishou Technology since early 2021. The Chinese manufacturer introduced 18 cornerstone investors who subscribed to 179.0327 million shares, approximately $1.258 billion (around HK$9.811 billion) of the offered shares. The list includes COSCO Shipping Hong Kong, UBS AM Singapore, and BYD’s subsidiary Golden Link, according to its IPO documents. Despite its strong performance today, Renee Wu, 28, an insurance agent at AIA Group and individual stock trader, remains sceptical about purchasing Midea’s shares. “I won't touch Chinese concept stocks anymore. I feel they lack investment value,” Wu said. “The risks they bring outweigh what they can provide. Chinese concept stocks are …
Huawei unveils world’s first tri-fold phone
- 2024-09-11
- Business
- The Young Reporter
- By: YANG HaicenEdited by: Ji Youn Lee
- 2024-09-11
Chinese tech giant Huawei unveiled the first tri-fold smartphone, priced at 19,999 yuan (HK$22,000), yesterday at a launch ceremony in the southern tech hub of Shenzhen. Pricier than earlier models such as Huawei’s double-fold phone Mate X5, the newly launched Mate XT is more than double the starting price of Apple’s iPhone 16 Pro Max, which was unveiled just hours ahead. Huawei's foldable phone Mate XT allows users to fold it into three sections like an accordion screen door. According to Yu at the launch, prices for the new smartphone start at 19,999 yuan for 256 gigabytes, with higher memory versions available for 21,999 yuan and 23,999 yuan. The phone comes in red and black colours. “The average consumer has limited knowledge of smartphones, let alone the benefits and value of the products,” said Will Wong, a senior researcher at IDC Consulting. “Therefore, they may be put off by its high price.” New products from both Apple and Huawei will be available from 20 September. Jene Park, an analyst at research firm Counterpoint, said the upcoming new Huawei products are not expected to have a major impact on Samsung's and Apple's business in terms of volume. “With a starting price of 20,000 yuan, more than double the starting price of the comparable iPhone 16 Pro Max, and limited production, the tri-fold phone is likely to be more of a symbol of Huawei's tech prowess than a major sales driver,” said Wong. Although Apple has shown strong demand in China as a mobile phone producer, a recent report released by Canalys in the second quarter shows it has fallen out of the top five in terms of sales for the first time in China, dropping from third to sixth place. “Huawei's new product may not have a huge impact on sales …
Hong Kong ELS turmoil Unfolds: Escalating Damages Surge Like an Avalanche
- 2024-06-13
- Business
- By: Subin JO、Runqing LIEdited by: Ji Youn Lee、Chi On LIU
- 2024-06-13
Three years ago, Kang Jong Hyun, 62, visited a major commercial bank with the intention of utilising the retirement savings he had accumulated through a lifetime of dedicated work. Drawing on decades of experience, he is striving to formulate an investment plan for a better old age life. In an interaction with a banker, he revealed that despite clearly expressing a preference for safe investments, he was advised to consider Equity Linked Securities products linked to the performance of the Hang Seng China Enterprises Index. "I told the banker I dislike risky investments like funds and prefer something safe," Kang said. However, influenced by the banker's recommendation, he subscribed to ELS instead of opting for regular interest-bearing deposits. "The banker assured me this product was not risky and similar to a deposit. I fell into this situation simply because I trusted the bank. I can't even tell my family, and I can't sleep at night," Kang said. According to the Financial Supervisory Service's investigation in January, three out of 10 bank ELS investors are 65 or older and often need help comprehending the complex structure of derivative products. Furthermore, 1 out of every 10 investors were first-time subscribers, indicating a need for familiarity with such financial instruments. The criterion for considering bank investors as elderly is set at 65 in South Korea, emphasising the heightened responsibility to exercise caution when advising and recommending investments to these senior individuals. As of November 2023, the total volume of Hong Kong index-linked ELS products sold to investors amounted to 19.3 trillion KRW (around HK$ 11.3 billion). Among them, about 82.1% were sold by banks, according to the Financial Services Commission of South Korea. As a derivative, the ELS product linked to HSCEI aims to pay customers with a fixed return based on the …
Impact investment: change the world and return a profit
- 2024-06-13
- Health & Environment
- By: Ji Youn Lee、Chi On LIUEdited by: Subin JO、Runqing LI
- 2024-06-13
Florian Spiegel hopes to save the planet by promoting fuel-related securities, which represent a part of impact investing. Recently, his company Evident Capital released the world’s first tokenised airplane leasing fund with a fund mandate on sustainable fuels. The Global Impact Investor Network, a US-based non-profit organisation that promotes impact investing, defines impact investing as investments that aim to create social and environmental impact alongside financial return. Compared to traditional investment, which focuses on risk and return, impact investment aims to put a new axis on investment-- mainly, the social impact investments have. In recent years, a growing number of corporations have recognised the importance of aligning their financial investment with their social and environmental goals, and the impact investing landscape is changing as new actors. Spiegel’s company, Evident Capital, aims to improve the financial market through transitional investment, a branch of impact investment. To cut the costs of current fossil fuel giants through cleaning the process, transitional investment incentivises oil and transport companies to invest in fuel-cutting equipment. Evident’s platform receives various private projects and then uploads them as divided digital securities on their network. One of their projects, a Liquified Natural Gas carrier ship from Honduras, was able to raise enough funding from the security to build and buy new carriers, making it more efficient to use fossil fuels than other companies. “A one percent decrease in the carrier gas industry can reduce more carbon than what 20,000 solar panels can create in a year,” Spiegel said. Although official numbers cannot be listed, the company says uploaded products have reached a total of US$ 50 million (HK$ 391 million) within the year they have been on the platform. “Small to medium investors who want to reach the impact investment market right now do not have enough funds …
Fake Crypto Exchanges: Insights from South Korea's Frontline
- 2024-06-13
- Business
- By: Subin JO、Runqing LIEdited by: Chi On LIU、Ji Youn Lee
- 2024-06-13
The cryptocurrency has become one of the significant investments in South Korea. According to Statista Market Insight, the total revenue of the cryptocurrency market has doubled from 2018 to HK$ 12.3 million in 2023 and recorded the highest in 2021 with a value of HK$ 33.2 million. Meanwhile, the total number of cryptocurrency users has increased more than seven times in the last five years since 2018. As the cryptocurrency market grows, so does the incidence of fraud, mainly through fake cryptocurrency exchanges, highlighting the need for increased vigilance among investors in South Korea. "When I tried to cash out profits, the cryptocurrency exchange started giving me the runaround. They kept stalling and making up excuses left and right,” said Kim Hyun Jin, 41, a cryptocurrency scam victim by the BTC Man, from South Korea. Kim added that to make matters worse, they started demanding more money, claiming it was for taxes or setting up virtual accounts. After stumbling upon a seemingly innocent stock discussion group, Kim was defrauded of around HK$ 350,000 in an online group chat. The group initially offered daily market insights, stock recommendations, and testimonials from purportedly successful members, which attracted Kim to join the telegram community. However, the chatroom was silent after Kim did not get his guaranteed return. “I reached out to the group leader for guidance. Surprisingly, the leader offered to make a substantial personal investment to cover my losses. It seemed like the leader genuinely cared about my well-being and success in trading,” Kim said. However, the exchange claimed Kim needed to deposit more money to withdraw his profit. When Kim contacted the admin again, he was kicked out of the chat room. “I got a bunch of empty promises, and it left me feeling pissed off and hopeless," Kim said. Serena …
AI-powered health and wellness tools: Personalising medical care at your fingertips
- 2024-05-11
- Society
- The Young Reporter
- By: Jemima BadajosEdited by: Ming Min AW YONG
- 2024-05-11
With an iPad’s front camera, artificial intelligence and sitting still for just 30 seconds, Vitals, an AI-powered app, can tell your vital signs by simply scanning the colour changes in your face. Vitals was developed by Panoptic.AI, a Hong Kong-based healthtech company founded in August 2022. The health and wellness monitoring app can identify up to 15 health indicators, including your breathing rate, blood pressure and oxygen saturation, which can help track current lifestyle conditions and detect any potential health risks down the line. As the colours in your face are affected by blood flow, signals that only show these changes are tracked, which can also filter out “blind spots” such as beards and tattoos. Next, the signals are sent to the company through the cloud, while any personal identifiable information is kept back on the user’s device. Kyle Wong, CEO and co-founder of the start-up, says the product’s idea stems from their previous projects involving temperature screening and thermal imaging technology in large-scale areas, such as border control points and government facilities. During the COVID-19 pandemic, the company’s team realised that it was challenging to identify asymptomatic patients who did not show signs of fever or had taken medication that lowers their temperature, said Wong. “We were doing a lot of research about using a camera, trying to find what other features we can measure from the person,” Wong said. “That led to the idea of what we have now, which is by using a regular camera, and we're talking about the camera of your smartphone, your everyday, off-the-shelf device, we're able to measure these biomarkers,” he said. Artificial intelligence is developing in Hong Kong’s health technology industry as it transforms health and well-being services into a personalised and self-manageable tool. The rise of artificial intelligence in digital wellness …
Hong Kong retail sales edge up amid changes in consumer spending patterns
- 2024-04-04
- Society
- By: Subin JOEdited by: Runqing LI
- 2024-04-04
Hong Kong's retail sales saw a modest year-on-year increase in the first two months of 2024 despite shifting consumer spending patterns and the evolving retail sector landscape, according to official data, The government’s provisional figures showed on Wednesday that the total retail sales value was provisionally estimated at HK$33.8 billion in February, marking a 1.9% increase from the same period last year. Revised estimated data for January showed a year-on-year increase of 0.9%. Retail sales value increased by 1.4% in the first two months of 2024 compared to the same period last year, while online retail sales decreased by 15.9% in the same period in 2023. Kevin Kim, 28, a research analyst at Hong Kong Shanghai Banking Corporation, explained that the decrease in online retail sales could be attributed to several factors. “One possibility is that consumers have begun to prefer shopping at traditional retail stores, which could be a rebound from the increased online shopping activities during the pandemic. Additionally, intensified competition in certain online marketplaces may have also played a role,” he said. After adjusting for price changes, the volume of total retail sales in February recorded a year-on-year increase of 0.5%. Nonetheless, when January and February 2024 were considered together, a decrease of 0.4% in volume was observed, indicating a nuanced recovery in retail sector performance. “It should be noted that retail sales tend to show greater volatility in the first two months of a year due to the timing of the Lunar New Year,” the government said in the press release. “... It is more appropriate to analyse the retail sales figures for January and February taken together in making a year-on-year comparison.” For significant types of retail outlets, the first two months of 2024 saw 8.8% increases in sales of jewellery, watches, clocks, and valuable …
“Art March 2024”: tourists welcome new ovoid installations with full bookings in the opening week
- 2024-03-25
- Culture & Leisure
- By: Chi On LIUEdited by: Ji Youn Lee
- 2024-03-25
teamLab:Continuous, an outdoor art project featuring hundreds of colourful illuminated egg-shaped installations at Tamar Park & Central and Western District Promenade, was fully booked by tourists on its opening week as part of the government’s new campaign. Around 200 ovoid installations changed colours with interactive sound effects with audiences. The installation is part of the government’s “Art March 2024” campaign, a program which aims to welcome tourists and locals to take part in various artistic events and “take the city’s vibrant cultural landscape to the next level”. In the opening ceremony, Tam Mei-yee, Deputy Director of Leisure and Cultural Services, said they were pleased with the public’s reaction to the exhibit. “The 100,000 reservations for the first week were sold out within 2 hours, showing the audience’s enthusiasm for this event,” said Tam. However, some visitors were disappointed in the amount of tickets and available amenities. Gao Xiaoqian, 28, a visitor from mainland China who has been to other teamLabs projects in Japan, said he had to walk more than 100 metres from the exhibit to the nearest vending machine for drinks and snacks. “I think the government can do better in this event, Gao said. “More tickets and valuable souvenirs related to Hong Kong may make this event more friendly.” To accommodate for high demand, Tam said the Leisure and Cultural Services Department would increase the number of booking quotes and would work with the travel industry to arrange group bookings. According to Klook’s official listing for the event, all tickets are fully booked until Apr.7. Richard Kim, 25, a local resident, said: “If an event has reservations to limit the people coming to the exhibition, I can’t see how it can attract more people to go out and more tourists to come.” The installations will be …