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Business

Midea’s Hong Kong IPO drives the market to a two-week high in its first-day trading

  • 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 …

Business

Huawei unveils world’s first tri-fold phone

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 …

Business

Hong Kong ELS turmoil Unfolds: Escalating Damages Surge Like an Avalanche

  • 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 …

Health & Environment

Impact investment: change the world and return a profit

  • 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 …

Business

Fake Crypto Exchanges: Insights from South Korea's Frontline

  • 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 …

Society

AI-powered health and wellness tools: Personalising medical care at your fingertips

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 …

Society

Hong Kong retail sales edge up amid changes in consumer spending patterns

  • 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 …

Culture & Leisure

“Art March 2024”: tourists welcome new ovoid installations with full bookings in the opening week

  • 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 …

Health & Environment

Small companies find ESG compliance easier said than done

  • The Young Reporter
  • By: XIA Fan、ZHAO RuntongEdited by: Junzhe JIANG、Ji Youn Lee
  • 2024-03-23

Two years ago, Edmund Chan started a small company called Meat The Next which offers  plant protein products. He came up with the idea soon after his child was born because he wanted to protect the  environment for the next generation through sustainable development. “Sustainable development has the highest priority in our business,” Chan said. “We want to provide a solution to our customers and give them the platform to protect the environment.” Chan’s company develops  their leading products in  an environmental, social and corporate governance or ESG philosophy. That means they are mindful of the company's sustainability, including its effects on the environment and the broader society. According to the company’s website, the carbon emission in producing one kilogram of tiger nut milk is  less than 0.9 kg, far lower than the  3.2 kg in producing the same amount of cow’s milk. “Our society is becoming more concerned about our environment compared with the previous decade, and companies are embracing the idea of ESG as consumers are calling for more sustainable development,” said Davis Bookhart, Director of the Sustainability Office at the Hong Kong University of Science and Technology, A Hong Kong Consumer Council survey in 2023 found that 87% of consumers said they would be willing to pay an additional 5% or more for products or services that are environmentally friendly or sustainably produced. However, developing ESG is easier said than done for small to medium enterprises.  “The lack of talent is a major challenge for SMEs,” said Keith Chan, assistant professor of HKUST. “It will affect their ability to make their ideas financially feasible.” Edmund Chan said his company has  cooperated with experts from different fields, such as  product development, test and retailing. “If small businesses do things individually, it is like trying to speak up but …

Business

Investors bullish about Tencent’s stock after annual results released

  • By: Runqing LIEdited by: Subin JO
  • 2024-03-21

Chinese technology giant Tencent announced its annual report yesterday with revenues increased and a plan to double share buybacks, driving the stock’s price up. The listed company reported a 7% rise in revenue for the three months ended Dec. 31, 2023, to 155.2 billion yuan (about HK$ 142.9 billion) from a year earlier and its annual revenue surged 10% to 609 billion yuan (about HK$ 560.6 billion)from 2022. However, the net income during the three-month period ended Dec. 31, 2023, dropped 75% from the same period in 2022 because there’s a high base from gains from the disposal of Meituan shares last year. Besides, the annual net income in 2023 declined 39% from 2022, according to the company’s report. The company decided to increase the dividend by 42% to HK$ 3.4 per share at the year-end, with its increased shares repurchasing scheme to over HK$ 100 billion this year. The stock’s opening price edged up by 2.2% to HK$ 295.2 per share from yesterday’s close, and it closed at HK$ 290 per share, which is up 0.4%. During 2023, four major segments, including value-added service (VAS), Online Advertising, FinTech and Business Services, and others, all achieved growth in revenue. For value-added services, which increased by 4%year-on-year to 298 billion yuan, international online gaming increased 14%to 53 billion yuan, and domestic online gaming increased by 2%to 126 billion yuan. “Several of our recent releases have performed well in terms of DAU(Daily Active User), and now are converting the DAU success to monetisation,” said Martin Lau, the president of Tencent, in the live streaming of the annual report. “We will contribute to long-term stability and growth of our game portfolio; having a large portfolio of major hits illustrates our ability to continuously develop new major hits and operate multiple highly popular games …