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Today marks the 25th anniversary of Macao’s return to the motherland. The city is brimming with cheerful vibes, with anniversary-themed posters and floral decorations adorning popular sites such as the Ruins of St. Paul's, while national flags and Macao SAR flags flutter along the streets.
On December 20th, 1999, after more than 400 years of storms, Macao finally returned to the embrace of its motherland. These 25 years have been a period of hard work and prosperous development for Macao, as well as a successful implementation of the “One Country, Two Systems” policy.
Over the past 25 years, Macao’s economy has achieved a leapfrog development. With strong support from the government, Macao has fully leveraged its unique advantages, resulting in a staggering leap in GDP from 51.9 billion Macao patacas to an impressive 379.5 billion patacas in 2023—approximately $47 billion based on the 2023 average exchange rate.
This economic surge has catapulted Macao into the ranks of the world’s most developed economies. In a remarkable post-pandemic recovery, Macao’s GDP soared by 80.5% in 2023 compared to the previous year. The per capita GDP tells a similar success story, climbing from 15,000 patacas in 1999 to a noteworthy 69,000 patacas in 2023. Forbes Magazine listed Macao as the second-richest place in the world this year, behind Luxembourg.
Over these years, a social security system covering the entire life cycle of local residents has been established in the SAR, and the average life expectancy of Macao residents has increased to 83.1 years.
Since returning to the motherland in 1999, Macao’s economic structure has changed significantly. The city’s gaming industry has thrived, surpassing Las Vegas as the world’s leading gaming hub. The sector was opened up to international operators in 2002, creating new opportunities for tourism and foreign investment.
Macao has the international reputation of being the Las Vegas of the Far East, which, while being true, does not reflect the complete story. Macao has transformed into a modern, international metropolis with strong support from the central government, achieving remarkable progress in both economic development and residents' livelihoods.
A key driver of Macao's economic diversification, the Guangdong-Macao In-Depth Cooperation Zone on Hengqin Island, located near Macao, was established in 2021 to expand living options and work opportunities for Macao residents.
Over the past three years, Hengqin has endeavored to aid in Macao’s moderately diversified industrial development while constructing a livable and workable space for its residents. To this end, the integration of Hengqin and Macao is setting the course for a new era of close collaboration between the two regions.
In terms of industrial planning, Hengqin’s “four new” sectors blend with Macao’s “1+4” industry diversification strategy, which involves promoting the growth of one key sector — tourism and leisure — alongside the advancement of the big health, modern finance and high-tech industries, as well as conventions, exhibitions, culture and sports.
According to official data, as of the end of October, there were 6,521 Macao-funded businesses in the cooperation zone. In the first three quarters of this year, the added value of Macao-funded industries reached 2.63 billion yuan, representing a year-on-year increase of 111.2 percent.
As of the end of November, the number of “four new” industry enterprises had grown to 31,506, up 6.3 percent from the end of 2021. As well, in the first three quarters, the added value of “four new” industries reached 21.6 billion yuan, accounting for 57.8 percent of the cooperation zone’s GDP.
In addition, Macao’s economic diversification efforts have yielded notable results. In 2023, the added value of key sectors such as TCM and modern financial services surged to 39.05 billion Macao patacas, marking a 6.9 percent increase from 2019. Meanwhile, the gaming industry’s contribution to the local GDP saw a significant 14-percentage-point decline compared to 2019.
Hengqin has been steadfast in its commitment to establishing a destination that enhances the quality of life and employment opportunities for Macao residents. In a groundbreaking collaboration between the governments of Guangdong and Macao, the Macau New Neighborhood project was officially introduced in 2023 to satisfy the needs of Macao residents — many of whom have since relocated to Hengqin, benefiting from essential amenities such as Macao-centric schools, community services, and household assistance. As a result, the cooperation zone is progressively evolving into a distinctive enclave, embodying the essence of a fresh beginning for Macao residents.
This small place has also become well-connected because of the recent major and impressive infrastructure projects in and around Macao: the Hong Kong-Zhuhai-Macao Bridge, the Guangzhou-Zhuhai Intercity Railway, and Hengqin Port.
Standing at a new starting point of the silver jubilee of Macao’s return, this brilliant pearl of Macao will surely shine even brighter in the embrace of the motherland, as the next 25 years promise even more opportunities for growth and development, solidifying its place on the world stage.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
Trade between Chinese mainland and Macao SAR increases 4.3 times in 24 years from 1999;
GBA spearheads China’s “unicorn" growth.
Greater Bay Area, Greater future
Economic and trade relations between the Chinese mainland and Macao SAR are growing stronger, the Ministry of Commerce said on Thursday just before the 25th anniversary of Macao’s return to the motherland.
Among the significant achievements in economic cooperation, trade between the mainland and Macao reached $3.84 billion in 2023, marking a 4.3-fold increase from 1999.
The service trade has also seen substantial growth, as marked by the influx of mainland tourists to visit Macao. From 2004 to 2023, approximately 310 million mainland visitors traveled to Macao. The surge in tourism has boosted local retail, hospitality, and dining sectors in Macao, according to ministry.
In a move to enhance tourism, the mainland increased the duty-free allowance for travelers entering the mainland from Macao from 5,000 yuan to 12,000 yuan in July, to boost tourism spending in the Macao SAR.
Investment flows have also been robust. As of October, the mainland has attracted $23.93 billion in direct investment from Macao while investing $14.19 billion into the Macao SAR.
Since the release of the outline development plan for the Guangdong-Hong Kong-Macao Greater Bay Area in 2019, the ministry has released supportive policies covering key areas such as consumption, circulation, trade, investment, and economic cooperation to back up Macao's integration into the country’s national development plans.
The ministry also introduced special measures to support the relaxation of market access to Hengqin, home to the Guangdong-Macao In-depth Cooperation Zone, expanding the development space for diversified industries in Macao SAR.
As of September, more than 6,400 Macao enterprises have established operations in Hengqin, marking a growth of nearly 40 percent in the past three years. Growth has been particularly prominent in high-tech industries and traditional Chinese medicine sectors.
Sixty-eight companies in the Greater Bay Area have been ranked among the world’s most promising enterprises with a strong potential of growing into “unicorns” within five years, surpassing the combined total of the United Kingdom and France, according to the latest Hurun Global Cheetahs Index 2024. Shenzhen ranked fifth among global cities with 35 “cheetahs”, while Guangzhou contributed 26, an increase of six from last year, placing it eighth. The remaining seven are based in other GBA cities. China had 304 such companies in 2024, ranking second worldwide. The GBA accounted for 22 percent of the nation’s total.
Corporate confidence in Hong Kong as a preferred international hub is picking up with the number of startups and multinationals based in the city both hitting record highs. The number of companies in Hong Kong with overseas or Chinese mainland parent companies climbed to a historic 9,960 in 2024, while that of start-ups jumped to a record 4,694, both up 10 percent from last year, showed two surveys released by the Hong Kong SAR government.
China welcomed this year's first shipment with around 14,000 tons of Chilean cherries in Guangzhou, cutting price over 20 percent in some sales channels. At Alibaba's Freshippo grocery chain, cherry sales have surged 90 percent month-on-month, with prices declining by 23 percent. Five-kilogram packages of jumbo-sized cherries now cost 199 yuan, down from 259 yuan, while extra jumbo varieties are priced at 299 yuan, reduced from 399 yuan.
Next on industry and company news
Chinese travel giant Trip.com is considering a more flexible four-day workweek to boost employee satisfaction, support a greener office environment, and give workers more time for travel and family, co-founder James Liang shared at its Global Partner Summit yesterday. Liang also predicted that China’s inbound tourism market to grow by an additional $100 billion to 200 billion.
Apple is in talks with Chinese tech giants Tencent and ByteDance to integrate their AI models into iPhones sold in China, media reported today, citing three sources familiar with the matter. The discussions are in the initial stages, with no details made public yet.
Chinese auto giant GAC Group launched yesterday its new flying car brand, Govy, and its second flying car, Govy AirJet, aiming for a flight range of 200 km and supporting a quick recharging of 30 minutes. The firm will equip such vehicles with its self-developed all-solid-state batteries in the future, with an expected flight range of 400 km.
Alibaba Group Holding has divided its Tongyi Qianwen large language model team to accelerate the integration of artificial intelligence across consumer-facing products, media reported today citing sources familiar with the matter. Tongyi Laboratory's technology development team will remain within Alibaba Cloud, while the application team will shift to Alibaba's Intelligent Information Business Group.
The "Xin Shanghai," a vessel operated by China COSCO Shipping Corporation Limited, arrived in Shanghai's Yangshan Port at around 3:30 p.m. on Wednesday after a 23-day journey from Peru's Chancay Port, becoming the first vessel to arrive in Shanghai from Chancay after the Peruvian port officially opened in November.
Switching gears to financial news
A pilot cash-pooling service integrating domestic and foreign currency management for multinational companies in China will be further optimized, the country's monetary authorities said Wednesday. The move, which involves 10 pilot regions including Beijing, Shanghai, Jiangsu and Zhejiang, will focus on reducing corporate financing costs, enhancing cross-border payment and receipt facilitation, streamlining cross-border fund management, and further improving capital utilization efficiency for multinational companies.
Wrapping up with a quick look at the stock market
Chinese stocks closed mixed on Thursday. The benchmark Shanghai Composite slid 0.4 percent while the Shenzhen Component gained 0.6 percent. Hong Kong’s Hang Seng index edged 0.6 percent lower, and the TECH index dipped 0.7 percent.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
China extends visa-free transit stays to 10 days;
China's air-passenger transport hits record high in 2024.
Here’s what you need to know about China in the past 24 hours
China has tripled the amount of time visitors can spend in the country without a visa in yet another move to entice more foreign tourists.
The National Administration of Immigration announced the country will expand its visa-free layover period to 240 hours across the board.
Effective immediately, 21 additional ports have been designated for visa-free entry and exit.
Under the updated policy, eligible citizens from 54 countries, including Russia, Brazil, Britain, the United States and Canada, can enter China visa-free when transiting to a third country or region.
These travelers may now enter through any of the 60 ports across 24 provinces, regions and municipalities and stay within the designated areas for up to 10 days.
On December 1, 2023, China began implementing unilateral visa-free entry trials for ordinary passport holders from France, Germany, Italy, the Netherlands, Spain and Malaysia. The policies were later expanded several times to more countries, as a part of China’s continuous effort to revitalize international tourism and strengthen global connections. Passport holders from 38 countries now can enter China visa-free for up to 30 days, including most European countries, east and southeast Asian countries, Australia and New Zealand.
According to the latest statistics cited by state media, from January to November 2024, more than 29 million foreigners entered the country, a year-on-year increase of 86.2 percent. Of these, 17 million entered under the visa-free program, a year-on-year increase of 123.3 percent.
The number of foreigners entering China in the third quarter of the year reached a record high, according to data from the NIA.
Visa simplification isn’t the only change China has made to entice foreign tourists.
Its two biggest e-payment apps, WeChat and AliPay, now accept non-Chinese credit cards, have built-in translation software and streamlined identity verification processes.
Next on industry and company news
Chinese airlines have recorded over 700 million passenger trips so far this year, marking a record high in the history of China's civil aviation development, according to the Civil Aviation Administration of China (CAAC) on Monday. As of Sunday, the country's airlines reported a total of 700.48 million passenger trips since the start of the year. The total number of air-passenger trips for 2023 was 620 million.
China on Monday announced plans for 12 winter tourism-themed travel routes across the country, aiming to further activate the ice and snow economy during the 2024-25 winter season. The 12 travel routes are set in Beijing, Southwest China's Chongqing Municipality and Sichuan Province, the three provinces in Northeast China, North China's Shanxi Province, Inner Mongolia Autonomous Region, Central China's Henan Province and Hubei Province, as well as Northwest China's Shaanxi Province and Xinjiang Uygur Autonomous Region.
Alibaba plans to sell its 99 percent stake in its department store chain Intime to a buyer consortium consisting of Chinese clothing and property firm Youngor, and members of Intime's management team, with deal will be worth about 7.4 billion yuan, the Chinese e-commerce giant said today.
Walmart China and Meituan announced a tie-up in instant delivery, product diversity, product operations, digital customer capabilities, and digital marketing today. The US retail giant's stores in China integrate Meituan's food delivery services.
Switching gears to financial news
China's Shanghai Stock Exchange (SSE) announced on Monday that it has signed a Memorandum of Understanding (MoU) with the Qatar Stock Exchange. Under the agreement, the two exchanges will explore collaborative opportunities in areas such as exchange-traded fund (ETF) products, data and index products.
China's fiscal income rose at the fastest pace of this year in November, mainly because the latest incremental policy package promoted economic recovery. General public budget revenue soared 11 percent to 1.4 trillion yuan last month from a year earlier, compared to 5.5 percent in October, according to data released by the Ministry of Finance yesterday.
Wrapping up with a quick look at the stock market
Chinese stocks fell on Tuesday with the benchmark Shanghai Composite down 0.7 percent and the Shenzhen Component down 0.35 percent. Hong Kong’s Hang Seng index dipped 0.5 percent and the TECH index inched down 0.6 percent.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
China’s economy remains on trajectory of steady recovery in November;
Home prices decline narrows in China’s major cities.
Here’s what you need to know about China in the past 24 hours
China's economy continued to recover steadily in November thanks to the synergy created by existing supportive policies and the incremental roll-out of new stimulus, with manufacturing and service sectors witnessing accelerated growth, together with an improvement in public expectations, the National Bureau of Statistics (NBS) said on Monday.
Output of industries above a designated level grew by 5.4 percent year-on-year in November, a 0.1 percentage point higher than last month. Output of high-tech manufacturing sector increased 7.8 percent year-on-year, 2.4 percentage points higher than the output growth of all industries.
Productions of new energy vehicles, industrial robots, integrated circuits grew 51.1 percent, 29.3 percent, 8.7 percent year-on-year in November, respectively.
Retail sales, a key measurement of consumer spending, grew 3 percent year-on-year to nearly 4.38 trillion yuan in November, among which products eligible for "trade-in" policy saw good sales performance.
In the first 11 months, fixed-asset investment, a gauge of expenditures on items including infrastructure, property, machinery and equipment, saw a 3.3 percent yearly growth to 46.6 trillion yuan.
In the January-November period, average surveyed urban jobless rate stood at 5.1 percent, down 0.1 percentage point compared with same period last year.
Officials expect China to achieve its 2024 economic goals, given major economic indicators have rebounded significantly in the fourth quarter, according to Fu Linghui, the spokesperson of the statistics bureau said on Monday. More efforts are needed to promote China's economic recovery in 2025 to boost household income and defuse risk, as a rising tide of trade protectionism renders the external environment more complex, he added.
Meanwhile, the decline in the prices of commercial residential homes in China's 70 large and medium-sized cities narrowed on a year-on-year basis in November, NBS data showed on Monday.
In the four first-tier cities, new home prices dropped 4.3 percent year on year, a decline narrowing 0.3 percentage points from October. However, Shanghai, China's economic hub, saw a 5 percent increase in new home prices last month.
Second-hand home prices in the first-tier cities went down 8 percent last month, 1.6 percentage points narrower than the decline in October.
For the 31 second-tier and 35 third-tier cities across the country, data also showed narrower drops in both new and second-hand home prices in November, according to the NBS.
The Chinese government issued a document on Monday that outlines measures to modernize the nation's retail industry over the next five years. According to the document, the country seeks to initially form a modern retail system that features enriched supplies and high-quality services, and that is smart, convenient and green by 2029. To modernize the industry, upgrade and transformation efforts targeting department stores, shopping centers, supermarkets, and community business hubs will be made, according to the document jointly issued by seven government departments including the Ministry of Commerce.
Greater Bay Area, Greater future
The Guangzhou Futures Exchange will introduce polysilicon futures and options to provide more risk management tools for price fluctuations to the Chinese photovoltaic industry. Polysilicon futures and options will be listed on Dec. 26 and Dec. 27, respectively, becoming the third product after industrial silicon and lithium carbonate to join the GFEX.
Next on industry and company news
The tech giant Huawei Technologies is to complete the spinoff of its intelligent automotive business unit to become an independent company, Shenzhen Yinwang Intelligent Technology Co. Ltd., by Jan. 1, media reported, citing sources close to the auto BU.
The BYD Seal has made history as the first Chinese car to be among the 10 nominees for the 2024-2025 Japan Car of the Year. Launched in Japan this year, the Seal has gained significant attention and was praised for its sleek design, powerful performance, and advanced smart features.
The box office sales of China's moviegoing season ringing in the New Year have reached about 1.63 billion yuan, with pre-sales included, as of Sunday, according to the film data platform Beacon. The top three of the movies are Her Story, Crayon Shin-chan the Movie: Our Dinosaur Diary, and Brave New World.
Switching gears to financial news
Foreign direct investment in the Chinese mainland in actual use climbed 6 percent in November from the same period last year, the Ministry of Commerce said Saturday. From January to November, the actual use of FDI stood at 749.7 billion yuan, down 27.9 percent year on year, which narrowed by 1.9 percentage points compared to January to October.
Wrapping up with a quick look at the stock market
Chinese stocks fell on Monday with the benchmark Shanghai Composite down 0.2 percent and the Shenzhen Component shedding 1.3 percent. Hong Kong’s Hang Seng index also closed 0.9 percent lower, and the TECH index dropped 1.45 percent.
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In setting priorities for its economic policy for 2025, China is emphasizing the need to adopt a moderately loose monetary policy next year, including the rollout of rate cuts and cuts in the reserve requirement ratio at an appropriate time to ensure ample liquidity
The nation's policymakers set the policy agenda for the world's second-largest economy at the annual Central Economic Work Conference in Beijing on Wednesday and Thursday.
While noting heightened negative factors from the outside environment and challenges now facing the economy, policymakers reaffirmed the need to forge ahead with high-quality development, comprehensively deepen reform, expand high-level opening-up and develop a modern industrial system.
They pledged to implement more proactive and effective macroeconomic policies, boost domestic demand, drive the integration of sci-tech innovation and industrial innovation, and stabilize the real estate sector and stock markets.
The meeting also signaled a rare increase in its deficit-to-GDP ratios, through fiscal expenditures and issuance of ultra-long special treasury bonds and local government special-purpose bonds.
The policy stance is aligned with signals from a tone-setting meeting on Monday of the Political Bureau of the CPC Central Committee.
Among a series of positive signals regarding China's economy conveyed at the two key meetings, the most notable is that the meetings urged the implementation of a more proactive fiscal policy and a moderately loose monetary policy.
The announcement of a moderately loose monetary policy in particular has drawn widespread attention. The last time monetary policy was moderately loose was in the 2008 to 2010 period after the global financial crisis. The change in stance will further open up the space for policy easing, according to analysts.
Monday’s meeting said the policy toolkit will be beefed up, unconventional counter-cyclical adjustments will be strengthened, policy coordination will be stepped up, and macro regulation will be more forward-looking, targeted, and effective.
Policy researchers and economists predict that China may take unconventional monetary steps to finance bolder fiscal expansion next year, possibly including a sizable central bank purchase of government bonds, coupled with more aggressive cuts in interest rates and reductions in banks' required reserves.
This shift in monetary policy provides a much needed boost to the stock market. China’s A-share market reacted positively at the news, having climbed for 3 consecutive days since Tuesday.
As domestic and international economic environments continue to evolve, the transition to a moderately loose policy is a timely and responsive measure to current economic challenges, and also a strategic approach to ensure stable growth and long-term development, particularly during crucial periods of economic transformation.
Moreover, moderate monetary easing can stimulate market vitality and drive industrial upgrading and innovative development. In addition, a moderate approach to monetary easing can provide clearer and more explicit signals to the market, bolstering confidence in China's economic recovery.
In fact, since the beginning of this year, China's monetary policy has exhibited a trend of moderate loosening while maintaining a prudent approach.
Over the past year, the central bank has made several precise and considerable adjustments, including cuts to the reserve requirement ratio (RRR) and interest rates. The one-year loan prime rate (LPR) has decreased from 3.45 percent to 3.10 percent, while the LPR for loans with a term of five years or more has fallen from 4.20 percent to 3.60 percent, marking the largest reductions within a year in history.
Next year, the PBOC will likely cut the policy rates by 40 bps to 60 bps, trim the five-year LPR by 60 bps to 100 bps, and lower the RRR by 150 bps to 250 bps, according to Zhang Jun, chief economist of China Galaxy Securities.
The PBOC will go on paring the RRR and interest rates next year while stepping up its unconventional easing policies, such as purchasing government bonds and conducting outright reverse repurchase operations, said Ming Ming, chief economist at Citic Securities.
Shifting the policy tone from "prudent" to "moderately loose" not only responds positively to the current economic situation but also serves as a crucial measure for strengthening expectation management.
In addition, changes in the external environment have created a unique opportunity for China to adjust its monetary policy stance. In September, the US Federal Reserve announced a 50-bp cut to its benchmark interest rate, the first reduction in borrowing costs since March 2020. Wall Street investors now expect the Fed to implement another rate cut this month.
In its latest Asian Development Outlook released on Wednesday, the Asian Development Bank (ADB) maintained its previous growth forecasts for China at 4.8 percent for 2024 and 4.5 percent for 2025. Notably, the bank lowered the growth forecast for developing Asia to 4.9 percent for 2024 and 4.8 percent for 2025.
On Wednesday, a report on the Oxford Economics also said that the new US administration's tariffs will likely exacerbate the "slowbalisation" globally.
In contrast to uncertainty from the US, China's positive role for the global economy has been highlighted by major international economic organizations.
During a meeting with China's top leader on Tuesday, the heads of major international economic organizations, including President of the New Development Bank Dilma Rousseff, Managing Director of the International Monetary Fund Kristalina Georgieva, President of the World Bank Group Ajay Banga and Director-General of the World Trade Organization Ngozi Okonjo-Iweala, hailed China's remarkable achievements.
Amid global economic challenges and the rise of unilateralism and protectionism, countries around the world are looking to China with hope and belief that it will remain a key engine of global economic growth. -
Hi everyone. I’m Stephanie LI.
Coming up on today’s program
China’s private pension system is being rolled out nationwide;
Double 12 shopping festival is set to boost consumption with trade-in policies.
Here’s what you need to know about China in the past 24 hours
China said on Thursday it would expand a private pension scheme nationwide from December 15, following a pilot effort, as it moves to plug a pension gap in plans to help a rapidly aging population.
Those covered by public pension insurance will be allowed to open private pension accounts and invest up to 12,000 yuan ($1,652) a year in financial products, five official bodies, including the human resources ministry, said in a joint notice.
The scheme expands the category of eligible pension products by including government bonds, designated pension savings and index funds, they added.
According to the latest directory of individual pension funds released by the China Securities Regulatory Commission, as of today, there are 284 pension funds products, with 85 index funds run by 30 institutions being recently added.
The new provisions have also introduced rules to allow earlier withdrawals under specified conditions, including permanent disability, severe illness, unemployment, and having moved abroad.
More than 60 million people have opened personal pension accounts since the introduction of China's private pension system in late 2022, data from the Ministry of Human Resources and Social Security showed.
Private pensions are a part of the “third pillar” of China's pensions system to supplement the public safety net and corporate annuities.
With approximately 217 million people aged 65 and above, China is home to the world's largest elderly population, and roughly one in every four seniors globally.
A society is considered "aged" when those aged 65 and above account for 14 percent of the total population, and "super-aged" when the proportion exceeds 20 percent, according to the WHO. The figure stood at 15.4 percent in China in 2023.
The China Research Center on Aging predicts that the silver economy could grow from its current value of 7 trillion yuan to 30 trillion yuan by 2035. By 2050, elderly consumption is expected to reach 40 to 69 trillion yuan — accounting for up to 20.7 percent of the country's GDP.
Greater Bay Area, Greater future
GAC Aion, the electric vehicle brand of Chinese automotive giant GAC Group, has joined hands with Chinese autonomous driving technology provider Pony.ai to co-develop a commercially-viable, mass-produced robotaxi. The collaboration aims to deliver at least 1,000 robotaxis based on GAC Aion's EV models and equipped with Pony.ai's seventh-generation self-driving solutions, Pony.ai announced yesterday. The first batch of robotaxis will be deployed in the Greater Bay Area next year.
International accounting firm KPMG foresees improved investor confidence in Hong Kong's IPO market and expects it to maintain its position among the global top five in 2025, as its financial funding sector shows robust resilience. As of Dec 8, the Hong Kong stock exchange ranked 4th in the 2024 global IPO rankings, with total funds raised reaching HKD82.9 billion from 63 completed IPOs, according to the latest report released by KPMG on Wednesday.
Next on industry and company news
Major Chinese e-commerce platforms have launched a range of promotional activities that integrate with the nation's trade-in programs in this year’s Double 12 shopping festival. Tmall has launched more than 100 categories of products that are eligible for government subsidies, offering discounts as much as 50 percent. Suning.com has partnered with major brands, offering discounts of up to 50 percent for various categories including winter products. JD.com is also providing offers on popular home appliances at half prices, along with an additional discount of 40 yuan for every 300 yuan spent. Consumers can also take advantage of national subsidies on various appliances, with discounts of up to 2,000 yuan on select items.
Sales of new-energy vehicles (NEV) in China reached a new milestone on Wednesday, as NEV sales surpassed 40 percent of all auto sales for the first time during the January-November period. During the first 11 months, Chinese NEV output reached 113.45 million units while sales hit 112.62 million, data from China Association of Automobile Manufacturers (CAAM) showed. Output surged by 34.6 percent year-on-year and sales grew by 35.6 percent during the period.
China's production and sales of batteries soared 33 percent and 40 percent to 117.8 GWh and 118.3 GWh, respectively, in November from a year earlier, the country’s automotive power battery industry innovation alliance announced yesterday.
SenseTime Group, a Chinese artificial intelligence developer, said it plans a HKD2.8 billion stock placement. SenseTime will issue nearly 1.87 billion shares at HKD1.50 apiece to at least six entities to raise money for core business development, including supporting its shift to generative AI, building an industry-leading AI cloud, and increasing the scale of its AI infrastructure.
Switching gears to financial news
China's Ministry of Finance issued yuan-denominated treasury bonds worth a total of 6 billion yuan in Hong Kong on Wednesday, with the total bid amount 3.58 times the amount in circulation. The issuance included additional two-year bonds, three-year bonds, and five-year bonds, with respective interest rates at 1.7 percent, 1.7 percent, and 1.8 percent.
Wrapping up with a quick look at the stock market
Chinese stocks continued to rise on Thursday. The benchmark Shanghai Composite gained 0.85 percent and the Shenzhen Component jumped 1 percent. Hong Kong’s Hang Seng index rebounded 1.2 percent and the TECH index added 1.5 percent.
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Coming up on today’s program
Trade-in program continues to boost consumption with 5 million applications for autos;
Huangmao Sea Channel Bridge, western extension of the Hong Kong-Zhuhai-Macao Bridge, opens to traffic.
Here’s what you need to know about China in the past 24 hours
China's trade-in program targeting automobiles is progressing steadily with policy effects accelerating, as combined auto trade-ins surpassed 5 million units by Monday, said the Ministry of Commerce on Tuesday.
Over 2.44 million units were scrapped and renewed while more than 2.59 million were replaced, according to the ministry.
As a key focus of the consumer goods trade-in policy, the vehicle sector has seen substantial growth of car sales in recent months.
In November, domestic retail sales of passenger cars reached 2.423 million units, marking a year-on-year increase of 16.5 percent, representing a growth of 5.2 percentage points compared to October. From January to November, total retail sales of passenger cars stood at 20.257 million units, reflecting a year-on-year increase of 4.7 percent.
People who purchase an electric car to replace an old vehicle that does not meet the latest emissions standards can receive a one-off subsidy of 20,000 yuan, while those buying a fossil fuel-powered auto with a displacement of 2 liters or less will receive a subsidy of 15,000 yuan. As a result, those wanting to upgrade their vehicle will generally choose to buy an NEV.
And as for trade-ins, those who swap their auto for an NEV will receive around 3,000 yuan more than those who opt for a gasoline-powered car.
Although the trade-in subsidies have only been in place for a short time, they are having a much bigger effect on boosting sales than the vehicle scrapping ones, said Cui Dongshu, secretary-general of the China Passenger Car Association.
Meanwhile, other sectors involved in the trade-in programs have also seen growing sales momentum. Nationwide, the home appliance trade-in program exceeded 100 billion yuan in sales within 79 days, and it took only 40 additional days to reach 200 billion yuan, underscoring the accelerating momentum of consumption upgrades.
Greater Bay Area, Greater future
The Huangmao Sea Channel Bridge in South China's Guangdong Province, a pivotal infrastructure project in the Greater Bay Area (GBA) and the western extension of the Hong Kong-Zhuhai-Macao Bridge, opens to traffic on Wednesday. The travel time from Zhuhai to Jiangmen is cut to 30 minutes.
China's domestically developed C919 aircraft will be used to operate commercial flights connecting Guangzhou, Guangdong province with Haikou, Hainan province, starting Wednesday, the first time that the jetliner will operate in Hainan. Operated by Guangzhou-based China Southern Airlines, Haikou will become the carrier's fifth destination for the aircraft model.
Hong Kong Chief Executive John Lee said on Wednesday that the city will continue to make use of its strengths in the fields of aviation and cargo to contribute to the development of an international logistics hub in the Greater Bay Area. Officiating at the second Business Conference on Guangdong-Hong Kong-Macao Greater Bay Area Development, Lee said Hong Kong will make use of its professional marine services, and cooperate with the mainland and Macao to increase the competitiveness of the Greater Bay Area's port clusters. As for aviation, Hong Kong is developing intermodal cargo‑transhipment with Dongguan, and has brought forward the development of the Hong Kong International Airport Dongguan Logistics Park, Lee added.
Next on industry and company news
China’s Contemporary Amperex Technology and European automaker Stellantis will invest EUR4 billion to build a plant in northern Spain that will make electric vehicles batteries. The pair have set up a joint venture for the project and expect to begin production at the factory in Zaragoza, which will have an annual capacity to turn out 50 gigawatt hours of lithium iron phosphate batteries, by the end of 2026, CATL announced yesterday. Meanwhile, the battery giant said it would distribute 5.4 billion yuan cash dividends. Shareholders will receive 12.30 yuan per 10 shares.
Mao Geping Cosmetics, a beauty brand named after famous Chinese makeup artist Mao Geping, surged over 90 percent on its first trading day in Hong Kong. The renowned seller of foundation and face masks issued 78.4 million new shares at a price of HKD29.8 each, securing net proceeds of HKD2.2 billion from its initial public offering. The stock ended at HKD51.95 today.
Switching gears to financial news
Shanghai has released a new action plan to facilitate 300 billion yuan in mergers and acquisitions transactions over the next three years to fully support the M&A of listed companies. Shanghai will land several industry-representative M&As and cultivate about 10 internationally competitive listed firms in integrated circuits, biomedicine, new materials, and other key areas by 2027, according to the plan the local government released yesterday.
Wrapping up with a quick look at the stock market
Chinese stocks closed higher on Wednesday, with the benchmark Shanghai Composite and the Shenzhen Component each up 0.3 percent. Hong Kong’s Hang Seng index shed 0.8 percent and the TECH index fell 1.3 percent.
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Coming up on today’s program
China's foreign trade grew 4.9% in the first 11 months, sustaining stable growth;
CPC leadership meeting stressed the need to boost fiscal and monetary policies in 2025.
Here’s what you need to know about China in the past 24 hours
China's foreign trade of goods increased by 4.9 percent year-on-year to reach 39.79 trillion yuan ($5.49 trillion) in the first 11 months this year, demonstrating stable growth and economic structural improvements, official data showed on Tuesday.
According to the General Administration of Customs (GAC), exports rose 6.7 percent year-on-year to reach 23.04 trillion yuan, while imports edged up 2.4 percent year-on-year to reach 16.75 trillion yuan in the first 11 months.
Thanks to the government's package of pro-growth policies, the country's foreign trade volume registered a 1.2-percent increase year-on-year in November alone in yuan-denominated terms, totaling 3.75 trillion yuan, with monthly foreign trade volume maintaining growth in a consecutive of eight months, according to the GAC.
In the first 11 months, foreign trade handled by private enterprises accounted for 55.3 percent of the country's total trade, representing a 2-percentage-point increase from the same period last year, GAC data showed.
Throughout the period, ASEAN held its position as China's largest trading partner, with bilateral trade reaching 6.29 trillion yuan in the first 11 months, up 8.6 percent from a year earlier, representing 15.8 percent of the country's total foreign trade. It was followed by the EU with bilateral trade reaching 5.09 trillion yuan and the US at 4.44 trillion yuan.
China's trade with countries and regions participating in the Belt and Road Initiative totaled 18.74 trillion yuan, an increase of 6 percent year-on-year.
Recently, a State Council executive meeting reviewed and approved new policy measures to drive the steady growth of foreign trade. The Ministry of Commerce and the GAC also announced measures to optimize the business environment at its ports and streamline customs clearance process for foreign trade companies.
China on Monday said the country would implement a more proactive fiscal policy and a looser monetary policy next year. The announcement came after the Politburo of the Communist Party of China Central Committee met to analyze and study the economic work of 2025. It urged implementing a more proactive fiscal policy and a moderately loose monetary policy. It is necessary to enrich and improve the policy toolkit, strengthen unconventional counter-cyclical adjustments, intensify the coordination of various policies, and make the macro regulation more forward-looking, targeted and effective, the meeting noted. The country should vigorously boost consumption, improve the investment efficiency, and expand domestic demand on all fronts, it said.
Greater Bay Area, Greater future
Guangdong Province plans to enhance trade and industrial integration with the Macao SAR, officials said on Monday, as trade between Guangdong and Macao in the first 10 months reached 15.88 billion yuan this year, exceeding last year's total.
Hong Kong's largest artificial intelligence supercomputing center officially commenced operation Monday. Located in Cyberport, the supercomputing center is expected to deliver up to 3,000 petaFLOPS of computing power -- capable of processing 10 billion images in just one hour.
Next on industry and company news
China's NEV market continued to see robust growth in November, with retail sales reaching nearly 1.27 million units, marking a 50.5 percent year-on-year increase and a 5.9 percent jump from the previous month. During the first 11 months of the year, total retail sales of NEVs amounted to 9.59 million units, representing a 41.2 percent increase from the previous year. China's top EV maker BYD recorded its fastest-growing month in 2024, with delivery of 3.76 million in the first 11 months, on track to top its 2024 sales goal.
The State Administration for Market Regulation (SAMR), China's top market regulator, announced on Monday it has launched an investigation into Nvidia over suspected violations of China's Anti-monopoly Law and a notice on the 2020 antitrust review decision regarding the approval of Nvidia's acquisition of chip designer Mellanox Technologies with additional restrictive conditions.
China’s fixed-asset investment in railroad networks rose 11 percent to 711 billion yuan in the first 11 months from a year earlier, the China Railway Group said today. The country had over 160,000 km of railroad in use as of Nov. 30, of which 46,000 km were high-speed.
Wrapping up with a quick look at the stock market
China's A-share market rallied at the opening on Tuesday, following last night’s news that the CPC leadership’s meeting emphasizing the need for a more proactive fiscal policy. The Shanghai Composite Index ended 0.6 percent higher after rising by 2.58 percent at the opening, while the Shenzhen Component Index closed up 0.75 percent after jumping 3.66 percent. The total turnover of the A-share market hit 2.2 trillion yuan. Despite a strong start in the morning, Hong Kong’s Hang Seng Index closed 0.5 percent lower and the TECH index dropped 1.4 percent.
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Coming up on today’s program
China's consumer prices steadied in November due to stronger consumer confidence;
Revenue from home appliances under China’s trade-in program exceeded 200 billion yuan.
Here’s what you need to know about China in the past 24 hours
China's consumer prices saw a modest growth in November compared to a year earlier, while the economy has sustained the recovery momentum driven by the government's barrage of support policies since September.
According to data released by the National Bureau of Statistics (NBS) on Monday, China's consumer price index (CPI), a main gauge of inflation, increased by 0.2 percent year-on-year in November, slightly lower than the 0.3 percent rise registered in October.
"This is largely due to a deceleration in food price rises," said NBS chief statistician Dong Lijuan.
The core CPI, which excludes food and energy prices, rose 0.3 percent from a year ago in November, up from 0.2 percent in October.
Looking forward, China's CPI is projected to experience a year-on-year increase as meat demand will be likely to rise and cold winter weather may disrupt vegetable supplies, pushing up food prices, said Wen Bin, chief economist at China Minsheng Bank.
The NBS data also showed the country's producer price index (PPI), which measures costs for raw material supplies at the factory gate, dropped by 2.5 percent year-on-year in November, narrowing from the 2.9 percent decline seen in October.
On a month-on-month basis, the PPI rose by 0.1 percent in November, following a drop of 0.1 percent in October.
Experts attributed the increases in core CPI and PPI in November to the sustained economic growth since September. China has implemented a series of heavyweight growth-boosting measures, including massive consumer goods trade-ins, to bolster the economy this year.
In order to promote significant improvements in macroeconomic indicators, more supportive policies are expected in 2025 to ramp up domestic consumption, elevate market expectations, and strengthen internal economic growth momentum, experts noted.
Greater Bay Area, Greater future
Macao has seen its cumulative cross-border trips surpass 200 million this year as of Saturday, a new record and an increase of 9.4 percent compared to the total number of trips in 2023. Macao residents accounted for over 72.26 million of these trips, making up 36.1 percent of the total. Inbound tourist numbers reached 32.55 million, a year-on-year increase of 25.7 percent from the same period in 2023.
A pair of giant pandas, gifted from the Chinese mainland to Hong Kong in September, were officially named An An and Ke Ke after over 22,000 suggestions. The pandas were warmly welcomed on their public debut at Ocean Park Hong Kong yesterday.
The Shenzhen municipal government announced Sunday that Luye Medical Group has signed an agreement with the city's health commission to establish an international medical headquarters and China’s first wholly foreign-owned specialty hospital. Its parent company, Luye Life Sciences Group, is headquartered in Singapore and operates across Australia, China, and Singapore.
Next on industry and company news
Sales of home appliances under China's policy-backed trade-in scheme exceeded the 200 billion yuan threshold in less than five months, the Ministry of Commerce announced on Saturday. More than 29.4 million consumers enjoyed the trade-in subsidies to purchase nearly 45.9 million house appliances as of Friday.
China's population aged 65 and above will account for 20 percent of the total by 2030 and 37.4 percent by 2060, according to a blue book released by authorities. The scale of the country's silver economy will likely reach 30 trillion yuan by 2035, accounting for 10 percent of the GDP.
Artificial intelligence will change everything, but this does not mean it can decide all, Alibaba Group Holding's founder Jack Ma said at an event to celebrate the 20th anniversary of Chinese fintech giant Ant Group, which spun off from the e-commerce titan 12 years ago. On the same day, Ant Group's Eric Jing announced that he would step down from the chief executive post and be succeeded by President and Chief Financial Officer Cyril Han effective March 1.
Xiaomi is currently preparing for its third sports utility vehicle (SUV) model "Kunlun", which will feature an extended-range powertrain and is estimated to be priced at around 150,000 yuan, media reported. Its official launch is expected in 2026， which may be outsourced to Wuhan Dongfeng Motor for production.
Switching gears to financial news
China's 1-trillion-yuan ultra-long special treasury bonds have all been allocated to support specific projects and programs, according to the National Development and Reform Commission (NDRC). Among the total, 700 billion yuan was allocated to implement major national strategies and build up security capacity in key areas, while 300 billion yuan was channeled to fund equipment upgrades and consumer goods trade-ins.
China's foreign exchange reserves totaled 3.2659 trillion U.S. dollars at the end of November, up by 4.8 billion dollars, or 0.15 percent, from the end of October, official data showed Saturday.
Wrapping up with a quick look at the stock market
Chinese stocks slightly eased on Monday with the benchmark Shanghai Composite barely moved while the Shenzhen Component dipped 0.55 percent. Hong Kong’s Hang Seng index rallied 2.8 percent and the TECH index jumped 4.3 percent.
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Hi, I am Stephanie Li. Thank you for joining this episode of CBN special.
Albert Einstein once said, “Creativity is intelligence having fun.”
When you speak with a researcher, a scientist, a professor, or a university chancellor, how often do you think the word “fun” would come up in the conversation?
Seldom, or even zero, I would assume. But Sharon Hu, our correspondent in Guangzhou, had a rather “fun” talk with the Vice Chancellor at Duke Kunshan University the other day, in which “to have fun” was frequently mentioned. He shared his unique view on how fun relates to creativity in knowledge creation and leadership business.
Today, Sharon joins CBN and we are going to talk about the conversation she had with Dr. Quelch, and what her takeaways are.
Stephanie: Hi Sharon, thanks for joining the podcast. Could you introduce Dr. John Quelch for us?Sharon: Happy to be here. So Dr. Quelch is currently the Executive Vice Chancellor and Distinguished Professor of Social Science at Duke Kunshan University, and the John deButts Professor of Practice at Duke University’s Fuqua School of Business.
He was also the Charles Edward Wilson professor of business administration emeritus at Harvard Business School, and dean emeritus of the China Europe International Business School in Shanghai.
Quelch is also a dedicated mentor, coach and teacher. Throughout his career, he has been recognized for providing hundreds of students with career development and leadership advice, and eight members of his teams have gone on to become deans of prestigious business schools. His case studies have sold over four million copies, the third highest in Harvard Business School history.
Stephanie: So I heard you had a rather “fun” talk with Dr. Quelch the other day. Tell us more.
Sharon: Absolutely. Being a professor at Harvard Business School for over thirty years as well as a veteran academic administrator, Dr. Quelch sees “fun” as one of the priorities in his pedagogical philosophy, which is a source of creativity. Take a listen.
(Quelch: I think it's very important to be passionate about whatever you do, and you can't be passionate about something unless you're enjoying it.
So what we attempt to do is create a climate where learning can be fun and enjoyable, and that then increases, I think, the productivity and success of our own professors. They're having more fun. They transmit that energy to the students. And if the students are having more fun in the class, but also in extracurricular activities outside of class.
They can become more creative, and we are in the knowledge creation and thought leadership business, so creativity is fundamental to our success.
And my bottom line is, you can't be creative if you're not having fun.)
Stephanie: Wow, that’s quite riveting. What Dr. Quelch said actually got me thinking of a famous quote from Albert Einstein: “Creativity is intelligence having fun.”
An unfortunate consequence for many of us as we age is that the opportunities for fun, play and creativity diminish. This reduction in opportunity also means we often find it increasingly difficult to come up with things that are fun and creative when opportunities for this type of activity do present themselves.
Sharon: Yes, I can totally relate to that. When we were students, the ability to be creative came natural to us and we are strongly encouraged to be creative. But the older we get, the less creative we seem to become. However, creativity isn’t just for the young minds. In fact, it’s for everyone at all ages.
Stephanie: Exactly. When you think of creativity, job titles such as graphic designer or marketer may come to mind. Yet, creativity and innovation are important across all industries. These are skills commonly sought after in top industries.
For example, Google's "20% time" policy allows employees to dedicate a portion of their work hours to pursue passion projects. This culture of innovation has led to groundbreaking products like Gmail and Google News, demonstrating how fostering creativity within an organization can drive continuous innovation.
Sharon: Dr. Quelch worked at Harvard Business School for many years, and having fun in what you do brings out creativity, which is essential in entrepreneurship.
Successful entrepreneurs act as the perfect amalgamation of creativity and business. Effective entrepreneurs can spot an unaddressed problem and then build a company to solve it. They have learned to combine the big picture, or the problem, and the daily picture, or specifics of the business operations.
Apple revolutionized the tech industry with its iconic product designs, epitomized by the sleek and intuitive iPhone. Their commitment to blending cutting-edge technology with elegant aesthetics showcases the power of creativity in captivating consumer interest and loyalty.
Stephanie: The world sure needs more creativity to make it a fun place. Even if you’re not an entrepreneur, the ability of creative problem solving is essential in our day-to-day work.
Sharon: I can’t agree more.
Stephanie: Sharon, thank you again for sharing with us. And thank you all for listening. Until next time. Bye.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
China's 2024 box office reached 40 billion yuan, showcasing market resilience;
China is set to see 100,000 eVTOLs for taxi and personal use by 2030.
Here’s what you need to know about China in the past 24 hours
China's 2024 box office revenue reached 40 billion yuan as of Wednesday, according to film data platform Maoyan.
While this figure marks a decline of 21 percent from the same period last year, analysts nonetheless highlight the resilience and potential of the country's evolving film market.
Currently, eight of the top 10 highest-grossing films of the year are domestic productions. Leading the pack are Jia Ling's weight-loss comedy YOLO, Han Han's car-racing comedy sequel Pegasus 2, and Successor, a comedy starring Shen Teng and Ma Li -- each earning between 3.3 billion and nearly 3.5 billion yuan at the box office.
Hollywood's Godzilla x Kong: The New Empire and Japanese animated feature The Boy and the Heron are the most successful foreign films so far this year, ranking ninth and tenth, while earning 957 million yuan and 791 million yuan, respectively.
Experts noted that the movie market is advancing amid fluctuations, with periods like the Spring Festival continuing to exhibit strong audience demand.
Notably, comedy has emerged as the standout genre of 2024, as films with comedy as a core element have collectively earned nearly 20 billion yuan, accounting for half of the year's total box office revenue to date, according to an analyst with box office tracker Beacon.
Greater Bay Area, Greater future
Hong Kong will leverage its international capital markets and professional financial services to provide financing and overseas promotion services for mainland new energy vehicle enterprises, said Chief Executive John Lee at Wednesday's International Automotive and Supply Chain (Hong Kong) Summit Forum. The city leader outlined HKD750 million in subsidies for electric taxis and buses in his latest policy address. “We will also launch a new HKD300 million scheme to subsidize the private sector’s installation of rapid charging facilities,” he said, noting the initiative would support 160,000 electric vehicles.
Hong Kong Chief Secretary Eric Chan on Wednesday said a three-day visit to the Greater Bay Area has offered authorities insight into developing the Northern Metropolis project in the New Territories. The delegation also learnt about a “large-scale, land-disposable” development model used in mainland cities, which the SAR administration hopes can be used to expedite development in the Northern Metropolis. The group also visited Huizhou as part of the GBA tour, focusing on understanding the city's business environment and industrial systems, at the China-Korea (Huizhou) Industrial Park.
Next on industry and company news
China will likely see 100,000 eVTOLs serve as family vehicles or air taxis by 2030, according to a report released by the China Low Altitude Economic Alliance. Major cities will complete air transportation networks within two or three years, it added.
China's National Healthcare Security Administration said it had benefited 830 million people as of the end of last month via medication price negotiation and reduced cumulative burdens of 880 billion yuan for patients over the past seven years.
China's domestic phone shipments rose 1.8 percent to 29.7 million last month from a year earlier, with 5G handsets accounting for 90 percent of the total, the China Academy of Information and Communications Technology said yesterday.
China on Wednesday issued an action plan to cut logistics costs to boost economic efficiency, targeting a reduction in the ratio of social logistics costs to GDP to around 13.5 percent by 2027. Key goals include breakthroughs in integrated transport reforms, optimizing freight transport structure, increasing the share of railway freight volume and railway freight turnover to 11 percent and 23 percent, and boosting growth in port container rail-water intermodal transport.
Tencent Holdings, the distributor of the Nintendo Switch in China, will gradually close the console's Chinese online store and stop providing related network services. The Nintendo eShop will halt the sale of games and other software in the Chinese market on March 31, 2026, Shenzhen-based Tencent announced yesterday.
Switching gears to financial news
Chinese self-driving startup Pony.ai made its debut on Nasdaq on Wednesday evening, with the pricing of its IPO of 20 million American depository shares at USD13 each. It is also the largest IPO in autonomous driving sector on the US stock market this year.
China's five biggest banks, including the Industrial and Commercial Bank of China and Bank of China, continue to be critical to global financial safety, according to the latest ranking of systemically important banks by an international organization.
Wrapping up with a quick look at the stock market
Chinese stocks fell on Thursday as the benchmark Shanghai Composite lost 0.4 percent and the Shenzhen Component retreated 1.3 percent. Hong Kong’s Hang Seng index also closed 1.2 percent lower, and the TECH index dropped 1.5 percent.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
Top officials and global executives call for global supply chain stability at supply chain expo;
Profits of China’s major industrial enterprises improve in October.
Here’s what you need to know about China in the past 24 hours
Maintaining the stability of global supply chains is essential for addressing challenges confronting businesses worldwide, such as escalating costs, geopolitical tensions and rising protectionism, which could further fuel global inflation, government officials and business leaders said on Tuesday.
Delivering a keynote speech at the opening ceremony of the second China International Supply Chain Expo(CISCE) in Beijing, Vice-President Han Zheng said that China is willing to work with all countries to promote the establishment of an open world economic system and ensure the stability and smooth operation of global industrial and supply chains.
This year's expo, which runs through Saturday, has attracted over 620 Chinese and foreign companies, marking a 20 percent increase in the number of exhibitors compared with the first edition, according to the China Council for the Promotion of International Trade, the organizer of the event. The proportion of overseas exhibitors has climbed from 26 percent to 32 percent, it said.
Tim Cook, CEO of Apple Inc, reaffirmed the critical role of China's supply chains in supporting the US tech giant during his recent visit to China, aligning with other multinational companies in committing to the Chinese market and integrating more deeply into global industrial and supply networks.
In a visit before the opening of the expo, Cook said that the company is "very committed to China", citing that he has visited the country three times so far this year.
Sean Stein, incoming president of the US-China Business Council, said that over the past few decades, global supply chains have not only been the cornerstone of economic development, but also a key stabilizer for world peace and international cooperation.
Such interconnectedness has enabled the creation of resilient economies, supported innovation and generated employment opportunities, Stein said, adding that collaboration and development have benefited both China and the United States, as well as the whole world.
Greater Bay Area, Greater future
The Airport Authority Hong Kong inked a deal to buy a 35 percent stake in neighboring Zhuhai Airport for 4.3 billion yuan yesterday. The aim is to enhance collaboration between Hong Kong International Airport and Zhuhai Airport, boosting the Greater Bay Area's aviation sector and building a world-class airport network.
The new Zhongshan Passenger Port that runs cross-boundary route between Zhongshan and the Hong Kong SAR will come into service on Thursday. It will initially operate three routes to Hong Kong International Airport, China Ferry Terminal in Tsim Sha Tsui, and Shenzhen’s Shekou Port. New routes to Taipa in Macao, islands off Zhuhai and water sightseeing routes are also in the pipeline.
Hong Kong's latest retail infrastructure bond offering got off to a strong start yesterday with investors seeking between 5 and 15 board lots and banks doing brisk business for the bonds. The target size of the retail infrastructure bond is HKD20 billion, with each lot offered at HKD10,000 and a tenor of three years.
Next on industry and company news
Profits at China's major industrial firms fell 4.3 percent to 5.8 trillion yuan in the first 10 months of the year from a year earlier. The drop of their monthly profit narrowed significantly by 17.1 percentage points from a month earlier, data from the National Bureau of Statistics (NBS) showed on Wednesday. Their revenue rose 1.9 percent to 111 trillion yuan.
Huawei launched its first car model jointly-developed with JAC Motors, the Maextro S800, priced at between 1 million and 1.5 million yuan. The luxury sedan, which aims to compete with the Mercedes-Benz S-Class, BMW 7 Series, and Audi A8L, uses the second-generation Tuling intelligent chassis. Huawei also unveiled its Luxeed S7 sedan yesterday, an electric vehicle co-developed by Chery Automobile. The EV comes in three versions with prices ranging from 229,800 yuan to 319,800 yuan. Huawei’s Harmony Intelligent Mobility Alliance delivered around 500,000 vehicles in the 32 months since it delivered its first co-developed car, according to Richard Yu, chairman of the Chinese telecoms giant’s consumer business group.
Baidu plans to launch trial operations of its robotaxi service Apollo Go in specific areas of Hong Kong by the end of this year, marking significant progress for the Chinese tech giant's global autonomous driving layout, according to sources familiar with the matter.
Switching gears to financial news
SF Holding Ltd’s shares rose in their debut in Hong Kong on Wednesday after completing the second-largest listing in the SAR this year. The Chinese mainland's biggest express-delivery firm’s stock climbed as much as 3.5 percent in early trading.
Bank of China Hong Kong issued 5 billion yuan worth of 2-year panda bonds, with an interest rate at 2 percent per annum and attracted sovereign wealth funds from the Middle East. Though setting a new low in the interest rate of panda bonds, it was subscribed by more than two times yesterday, attracting the participation of more than 30 domestic and foreign investors, with nearly 80 percent of them participating for the first time.
Alipay has launched a new line of exclusive voucher packs for international inbound passengers. Overseas registered users of the Alipay wallet can collect vouchers worth 200 yuan for flights, retail tickets, car-hailing orders, accommodation, and other travel needs.
Wrapping up with a quick look at the stock market
Chinese A-share rallied on Wednesday as the benchmark Shanghai Composite climbed 1.5 percent to regain 3,300 points and the Shenzhen Component jumped 2.3 percent. Hong Kong’s Hang Seng index also gained 2.3 percent and the TECH index soared 3.6 percent.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
Guangdong and Hong Kong forge closer ties in an investment conference;
The second China International Supply Chain Expo kicks off today.
Here’s what you need to know about China in the past 24 hours
Guangdong and Hong Kong secured collaboration on projects valued at 100 billion yuan after a high-profile meeting on Monday between senior officials and business heavyweights.
The 126 projects, with 101 involving investment by Hong Kong entrepreneurs in Guangdong, span the financial, logistics, smart manufacturing, biopharmaceutical, and artificial intelligence sectors. They mark the first fruit yielded by a Hong Kong delegation’s three-day visit to Guangdong led by Chief Executive John Lee Ka-chiu.
The achievement was witnessed by Huang Kunming, Party secretary of Guangdong province, Wang Weizhong, governor of Guangdong, and Lee during the Guangdong-Hong Kong Deepening Economic, Trade and Investment Cooperation Conference held on Monday in Guangzhou.
Lee said that the agreements showcase the commitment of both regions to strengthen their economic and trade relationships.
He added that a significant portion of the projects involving investment from Hong Kong into the mainland reflect the dedication of Hong Kong’s business community to contribute to the development of Guangdong and the entire mainland.
“Hong Kong will fully leverage its roles as a superconnector and super value-adder to venture onto the world stage alongside Guangdong enterprises, while also attracting more domestic and international businesses to invest in the Greater Bay Area,” Lee added.
Speaking at the conference, Huang said the Greater Bay Area has unlimited prospects, with the size of the economy reaching over 10 trillion yuan last year.
The Hong Kong delegation, comprising over 80 senior government officials, business executives and heads of chambers, is scheduled to visit four more mainland GBA cities, including Foshan, Dongguan, Huizhou and Shenzhen. The tour is aimed at understanding the successful development of local districts, which the administration is planning to adopt for Northern Metropolis.
China will continue to take concrete actions to ensure stable and unimpeded global industrial and supply chains, Chinese Premier Li Qiang said Monday while attending a symposium with representatives of enterprises and organizations participating in the ongoing second China International Supply Chain Expo (CISCE). Present at the symposium were representatives of Apple, Rio Tinto, CATL and the US-China Business Council, among others. As the world's first national-level exhibition focusing on supply chains, the expo has attracted over 600 Chinese and foreign companies, marking a 20-percent rise in exhibitors compared to the previous edition. Themed "Connecting the World for a Shared Future," the expo, hosted by the China Council for the Promotion of International Trade (CCPIT), has kicked off in Beijing today and will run through till Saturday.
Greater Bay Area, Greater future
Prices for new and second-hand homes in Shenzhen edged up in October for the first time in 18 months and 13 months respectively. Prices of new homes rose by 0.1 percent while prices of second-hand homes rose 0.7 percent, the National Bureau of Statistics said.
Hong Kong’s property sales are expected to surge 33 percent month-on-month to 7,800 deals in November, marking a seven-month high, partly driven by interest rate cuts, according to data from Centaline Property Agency.
Next on industry and company news
Chinese tech giant Huawei Technologies unveiled its Mate 70 smartphone series on Tuesday, marking a significant step in its premium smartphone comeback while showcasing its own operating system. The Mate 70 is the first mainstream smartphone to include a satellite paging system, has an improved processor and runs on Huawei's own HarmonyOS Next, which together boost performance by 40 percent compared to previous models, said Richard Yu, chairman of Huawei's Consumer Business Group. The new lineup consists of four models and priced from 5,499 yuan.
Tesla announced said it will lower the Model Y price by 10,000 yuan to 239,900 yuan until Dec. 31, as well as offering a five-year zero interest financing deal with a down payment starting at 79,900 yuan. Meanwhile, Geely-backed EV maker Zeekr said that it will not follow Tesla by cutting prices and making equity adjustments to boost year-end sales, the VP of Zeekr said today.
Insta360, a Chinese action camera maker with backers including IDG Capital, is considering an initial public offering in Hong Kong, according to people familiar with the matter. The Shenzhen-based maker of 360-degree cameras and virtual reality devices could seek a valuation of at least 15 billion yuan in a share sale.
China’s air passenger trips rose 12.5 percent to 64.09 million in October from a year earlier, data from the CAAC showed yesterday. Among them, international passenger trips surged 76 percent to over 5.8 million, recovering to 96 percent of the level in October 2019.
34 Chinese mobile game publishers earned nearly USD1.9 billion last month, accounting for about 36 percent of the combined revenue of the top 100 companies, according to Sensor Tower. Tencent ranked first, followed by NetEase, Century Games, and Mihoyo.
Switching gears to financial news
Revenue at Chinese state-owned enterprises inched up 0.9 percent to 67.66 trillion yuan in the January to October period from a year ago, finance ministry data showed. Net profit fell 1.1 percent to 3.54 trillion yuan.
Wrapping up with a quick look at the stock market
Chinese stocks fell on Tuesday as the benchmark Shanghai Composite edged down 0.1 percent and the Shenzhen Component slid 0.8 percent. Hong Kong’s Hang Seng index barely moved and the TECH index dipped 0.3 percent.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
Nvidia CEO Jensen Huang said China can beat AI rivals with Greater Bay Area edge;
China extends unilateral visa-free policy to Japan and eight European countries.
Here’s what you need to know about China in the past 24 hours
Jensen Huang, the founder and chief executive of chip manufacturer Nvidia, voiced his strong confidence in Hong Kong's role in advancing artificial intelligence (AI) as well as open science development and highlighted huge potential in capitalizing on AI in the Greater Bay Area.
This comes after the 61-year-old was awarded an honorary doctorate in engineering at the 2024 Hong Kong University of Science and Technology (HKUST) Congregation on Saturday, which also marks his first visit to Hong Kong.
During his acceptance speech, Huang emphasized that the world is entering a new era defined by AI. He said that AI is poised to revolutionize scientific disciplines and impact every industry, heralding the arrival of the robotics age and the subsequent creation of new sectors.
NVIDIA, a leader in AI chip technology, has seen its market valuation surpass that of Microsoft, marking it as a global frontrunner.
The head of the US chipmaker has also pledged to maintain the company’s presence in the Chinese mainland despite rising geopolitical tensions.
In a later discussion on stage, Huang pointed to the mainland’s unique strengths in capitalizing on AI, saying there was huge potential in the Greater Bay Area, which links Hong Kong, Macao and nine Guangdong cities.
“This is just an extraordinary opportunity for China and for this area,” Huang said. “The Greater Bay Area is so good at mechatronics already, the intersection between mechanical technology and electronics.”
Huang noted that AI development is a global, unstoppable trend and emphasized the importance of seizing the opportunities to tackle the challenges with AI tools.
Huang also addressed the employment challenges faced by the youth in Hong Kong and the Chinese mainland, stating that AI presents extraordinary chances for them and encourages graduates to embrace the new era of industries being transformed as the world undergoes a reset.
Huang's stay in Hong Kong became a social media sensation after a photo showed the CEO of Nvidia, Financial Secretary Paul Chan, HKUST President Nancy Ip, HKUST Council Chair Harry Shum, and other big names drinking and eating at a food stall in a night market in Sham Shui Po.
China has added Japan and eight European countries to its unilateral visa-free policy, sparking an immediate surge in travel searches. Citizens of Japan, Bulgaria, Romania, Croatia, Montenegro, North Macedonia, Malta, Estonia, and Latvia will be able to travel to China for up to 30 days without a visa from Nov. 30 to the end of next year, the Ministry of Foreign Affairs' consular department announced on Saturday. Within half an hour of the announcement, travel-related searches from Europe to China surged 65 percent and from Japan to China 112 percent, according to the overseas platforms of Chinese travel agency Ctrip.
Local governments across China, including Hebei, Sichuan and Yunnan Province have taken action to implement debt replacement after the approval of a 6-trillion yuan new local government debt quota for replacing the hidden debts. Per latest statistics, a total of 16 provinces in the country have announced that they will issue special refinancing bonds to replace existing hidden debts, with a total issuance amount reaching 1.09 trillion yuan.
Greater Bay Area, Greater future
A high-profile Hong Kong delegation led by Chief Executive John Lee Ka-chiu will attend a conference in Guangzhou on Monday afternoon to promote economic ties between the city and Guangdong province. The Guangdong-Hong Kong Deepening Economic, Trade and Investment Cooperation Conference, co-organized by Guangdong and Hong Kong authorities, is a highlight of the delegation’s three-day visit to Guangdong that kicked off on Monday morning. The delegation, which will tour Foshan, Guangzhou, Dongguan, Huizhou and Shenzhen, includes around 50 business executives, leaders of business chambers and senior government officials.
The 2024 World Consumer Electronics Expo will be held in China's Shenzhen from Nov. 28 to 30, showcasing cutting-edge tech in smart connected cars, drone economy, humanoid robots, and others. Tech giants, including Huawei, Samsung, and LG, as well as NEV makers, such as Tesla, Nio, and Xpeng, will be among the exhibitors.
Next on industry and company news
Apple CEO Tim Cook arrived in Beijing on his third business trip to China this year, as he toured the site of the 2nd China International Supply Chain Expo on Monday. Answering a question on Chinese supply chain partners, Cook stated his high regard for Apple's Chinese partners, as Apple "could not do what it does without them.” Apple has some 200 major suppliers, with more than 80 percent producing products in China, according to information at Apple's booth at the supply chain expo.
China will set up over 100 trusted data spaces by 2028 to promote the flow of data factors and facilitate the utilization of data resources, according to an action plan the National Data Administration released on Saturday.
Switching gears to financial news
Courier group SF Holding has said it raised USD749.3 million for its Hong Kong IPO after pricing its shares at HKD34.3 apiece. The group made the announcement in a term sheet and is expected to announce details of its H share issue on Tuesday and trading is expected to begin on Wednesday.
China's small- and micro-sized businesses enjoyed 946.1 billion yuan tax cuts in the first three quarters of the year, up 6.7 percent from a year earlier, according to the State Taxation Administration. The total tax relief exceeded 5 trillion yuan in the past five years.
Wrapping up with a quick look at the stock market
Chinese stocks fell on Monday as the benchmark Shanghai Composite slid 0.1 percent and the Shenzhen Component edged down 0.2 percent. Hong Kong’s Hang Seng index also closed 0.4 percent lower, and the TECH index dipped 0.3 percent.
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This week marks the 50th anniversary of diplomatic relations between China and Brazil.
The commemoration comes with a groundbreaking announcement: The two countries have elevated their ties to a China-Brazil community with a shared future for a more just world and a more sustainable planet, and agreed to align the Belt and Road Initiative (BRI) with Brazil's development strategies.
China and Brazil have also signed 37 bilateral agreements that range from protocols on agricultural exports and joint projects in innovative technology to plans for enhancing AI capabilities and promoting sustainable mining practices.
Over the past half-century, the two nations have made significant achievements in economic and trade cooperation, strengthening bilateral economic and trade ties.
China has been Brazil's largest trading partner for 15 consecutive years and is a major source of foreign investment, while Brazil has long been China's top trading partner in Latin America.
China's trade with Brazil increased by nearly 10 percent in the first 10 months of 2024, as China's annual imports from Brazil in the past three years have stayed above USD100 billion.
According to Chinese customs, trade with the South American country grew by 9.9 percent year-on-year to reach 1.14 trillion yuan (USD157.62 billion), maintaining steady growth and outpacing China's overall trade growth rate by 4.7 percentage points.
Beyond traditional manufacturing and goods trade, Chinese companies have actively participated in renewable energy projects in Brazil, including hydropower, solar and wind energy projects. This involvement in green economic development has further diversified and advanced China-Brazil investment cooperation.
A recent analysis by Brazilian digital media outlet Poder360 estimated such investment from Chinese enterprises alone has exceeded USD51 billion.
Earlier this year, State Grid Corp of China won a 30-year franchise agreement to build a 1,500-kilometer transmission line in northeast Brazil.
China’s “new three exports” - electric vehicles (EVs), lithium-ion batteries, and photovoltaic (PV) panels - to continental Latin America have surged from USD3.2 billion in 2019 to USD8.9 billion in 2023, with Brazil absorbing 63 percent of these imports by value last year.
China’s apparent focus on Brazil for new three exports can be attributed to the size of the Brazilian market, strong environmental and policy fundamentals, and the influence of Beijing’s trade and investment diplomacy.
Cultural exchanges between China and Brazil have also thrived, strengthening the friendship between their peoples. To celebrate the 50th anniversary of diplomatic relations, the Brazilian city of Recife has designated 2024 as the "Year of China" to foster a conducive environment for cultural relations.
Over the past five decades, China and Brazil have nurtured a partnership that has grown in depth and breadth, mirroring the broader shifts in international power dynamics. As the world's second-largest economy and Latin America's most influential nation, their relationship has far-reaching implications beyond their bilateral ties.
The China-Brazil partnership is largely founded on their economic complementarity. Brazil's abundance of natural resources, including agricultural products like soybeans and meat, and minerals like iron ore, align seamlessly with China's vast market demands. For China, Brazil provides critical raw materials and a strategic entry point for common development with South America.
Beyond economics, in a rapidly changing world, China and Brazil are coordinating closely and consistently within multilateral frameworks, such as the UN, G20 and BRICS, on crucial issues, including global governance and climate change, amplifying the voices of developing countries and safeguarding the interests of emerging markets.
In May, China and Brazil jointly issued a six-point common understanding on political settlement of the Ukraine crisis, receiving a positive response from the international community.
Meanwhile, the two countries, together with some other Global South countries, launched the group of "Friends for Peace" on the crisis, with the goal of bringing together more voices for peace.
In terms of poverty reduction, both countries are determined to tackle challenges and are willing to share their solutions with others.
Looking back, the two sides have every reason to be proud of the achievements in their relations. Looking ahead, the China-Brazil partnership is poised to become even more integral to the global geopolitical calculus. Their cooperation is both an emblem of the benefits of South-South collaboration and a harbinger of the increasing complexity of international relations in the 21st century.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
China's stock buyback loan program reaches 35.2 billion yuan in one month;
Hong Kong outlined plans for the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone.
Here’s what you need to know about China in the past 24 hours
Chinese listed companies have secured 35.2 billion yuan in loans through the country's stock buyback borrowing scheme launched a month ago.
So far, 152 listed firms have announced their participation in the stock buyback loan program, of which 109 with share repurchases and 43 with stakeholding increases, according to data from Wind Information. Nearly two-thirds of them are private companies.
Yesterday alone, China Resources Chemical Innovative Materials, Zanyu Technology, Tecon Biology, AiSen Semiconductor Material, and other companies announced how they plan to use the loans they have obtained.
The People's Bank of China unveiled the new re-lending facility on Sept. 24, with initial funding of 300 billion yuan, as part of a broader economic stimulus package. It officially launched on Oct. 18, and the first batch of 23 participants was announced two days later.
Commercial banks can offer stock repurchase loans at rates up to 50 basis points higher than the facility's 1.75 percent benchmark, Governor Pan Gongsheng said at a press conference. By allowing businesses and major shareholders to use loans to buy back their own shares, the PBOC aims to boost stock prices, support liquidity, and increase investor confidence in Chinese markets, Pan added.
The new financial instrument is gaining rapid market acceptance, helping stabilize share prices, boost market confidence, and promote the high-quality development of listed companies, experts noted.
Greater Bay Area, Greater future
Hong Kong on Wednesday unveiled the development outline for the Hong Kong section of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone, with the gross floor area in phase one doubling from what was initially planned. The SAR section will be developed in two five-year phases, with phase one covering 1 million square meters. The plan focuses on four main objectives, including building a world-class research and development platform, creating a competitive R&D and pilot production base, fostering global innovation, and promoting institutional and policy innovation.
The People's Bank of China successfully issued a total of 45 billion yuan of central bank bills in Hong Kong on Wednesday. Among which, 30 billion yuan of three-month central bank bills were issued at a bid rate of 3.2 percent, while 15 billion yuan of one-year central bank bills were issued at 2.6 percent.
Next on industry and company news
China approved 112 domestic games and seven imported games this month, bringing the total of this year to 1,184 and 97, respectively, according to the National Press and Publication Administration.
Huawei will debut its latest Xuanwu architecture and use it on its upcoming Mate X6, Richard Yu, chairman of the Chinese telecoms giant’s Consumer BG, said on Weibo today. The ultra-reliable framework has a basalt body, durable polyamide fiber material, and next-generation Kunlun glass.
Earnings reports express
Nio’s third-quarter net loss widened 11 percent year on year to 5 billion yuan, the Chinese EV startup said in a financial report. Deliveries reached 61,855 vehicles, up 11.6 percent from a year ago and 7.8 percent on the previous quarter. Nio expects to ship 72,000 to 75,000 autos in the fourth quarter, up 44 percent to 50 percent from a year earlier.
Meanwhile, Xpeng saw its net loss shrink nearly 54 percent to 1.8 billion yuan in the same period from a year earlier, thanks to a strong growth in sales. Revenue rose over 18 percent to 10.1 billion yuan. The EV maker delivered 46,500 cars in the third quarter, up 16 percent from the same period last year.
Wrapping up with a quick look at the stock market
Chinese stocks closed almost flat on Thursday as the benchmark Shanghai Composite gained less than 0.1 percent while the Shenzhen Component eased 0.1 percent. Hong Kong’s Hang Seng index closed 0.5 percent lower, and the TECH index dropped 1.2 percent.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
Hong Kong kicks off its annual flagship financial summit with the largest mainland delegation;
Guangzhou becomes the first tier-1 city to grant permanent residency to homebuyers.
Here’s what you need to know about China in the past 24 hours
Chinese Vice-Premier He Lifeng has urged Hong Kong to go big on reforms to foster development while raising its status as an international finance hub, with the state leader speaking at the city’s flagship industry summit.
The three-day Global Financial Leaders’ Investment Summit, organized by the the Monetary Authority opened to a 300-capacity audience on Monday.
Speaking in his keynote address on Tuesday, the state leader highlighted three areas of focus for Hong Kong’s finance sector: deepen financial reforms and innovate to boost the city’s competitiveness; expand cooperation and opening up; and dovetail with national developments.
The central government will help more mainland companies list in Hong Kong, improve mutual market access, issue treasury bonds and strengthen its position as a global offshore yuan hub, which will help the city become a stronger international financial centre and support China in opening up its economy, He said.
He added that the financial cooperation in the Greater Bay Area will be deepen, including interfacing the rules and mechanisms between mainland cities in the GBA, Hong Kong and Macao.
China’s securities regulator also gave its strongest endorsement yet to expand and add financial products to a trans-border investment channel with Hong Kong.
Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), said commodities may be added to the stocks, bonds, options and wealth management products that are currently tradable in the Connect scheme, which allows global investors and mainland capital to tap into each other’s markets via Hong Kong.
Delivering his welcoming remarks, Hong Kong’s acting Chief Executive Eric Chan Kwok-ki said the city should look to meaningful opportunities for growth in emerging sectors such as fintech and green and sustainable finance.
“Investors are increasingly seeking opportunities that align with sustainable development goals, and green technologies and green finance were central to that goal,” said Chan.
This year’s event is attended by the biggest delegation of top Chinese officials on-site since the annual event began in 2022. Top executives from HSBC, Goldman Sachs, JPMorgan Chase, Citigroup, BNP Paribas, among many others, are also in town in a show of support for Hong Kong, a key profit centre for many of them and a major regional headquarters for others.
Beijing followed Shanghai on Tuesday to eliminating the distinction between ordinary and non-ordinary housing and expanding tax incentives for property transactions. This means that homeowners selling apartments purchased over two years prior will be exempted from the 5 percent of value added tax in both first-tier cities. Apartments larger than 144 square meters or those intended for commercial use are generally considered "non-ordinary".
Greater Bay Area, Greater future
Guangzhou is set to become the first Chinese first-tier city to introduce a policy allowing home buyers to receive a permanent residence permit. Individuals who buy an apartment in seven suburban districts and have paid social security in Guangzhou for at least one year can apply to obtain residency status, also known as hukou, according to a draft policy issued by the local government yesterday.
Guangzhou will purchase stock commercial housing below 90 square meters in the city as affordable housing. The city government-owned Guangzhou Anju Group announced on Tuesday that it will start buying residential properties for affordable housing and outlined the criteria for the properties it is seeking, which now expands to cover the entire city.
The 19th China International Small and Medium Enterprises Fair in Guangzhou drew more than 10,000 buyers and 120,000 visitors, generating intended transactions worth over 96 billion yuan a year. The fair featured companies from the low-altitude economy, high-end equipment, robotics core components, biomedicine, advanced medical equipment, and other sectors this year.
Earnings reports express
Xiaomi’s third quarter profit rose 9.7 percent from a year earlier after the Chinese electronics giant increased the price of its handsets and saw more shipments. Net profit stood at 5.3 billion yuan in the three months, while revenue surged 31 percent to 92.5 billion yuan. Its auto unit delivered 39,790 units of its first EV, the SU7, last quarter, having produced 100,000 units as of Nov. 13. The company has raised its annual delivery target to 130,000 from 120,000.
EHang’s net loss narrowed 28 percent to 48.1 million yuan in the third quarter from a year earlier, the Chinese drone maker said in a financial report. Revenue surged 348 percent to 128 million yuan.
Trip.Com's net profit jumped 47 percent to 6.8 billion yuan and revenue rose 16 percent to 15.9 billion yuan in the third quarter of the year from a year earlier, the Chinese online travel agency announced today. Offshore hotel and outbound flight bookings in the quarter have recovered to 120 percent of the level in the same period of 2019.
Switching gears to financial news
China's fiscal revenue expanded 5.5 percent last month, mainly because the policy package introduced in September supported economic recovery and boosted business confidence. Tax revenue achieved positive growth for the first time this year in October, up 1.8 percent from a year earlier, data released yesterday by the Ministry of Finance showed.
China's holdings of US treasury bonds fell to USD772 billion in September, a drop of USD2.6 billion from a month earlier, marking the third consecutive monthly decline, according to the latest data released by the US Department of the Treasury on Monday.
SF Holding plans to raise up to HKD6.2 billion in a Hong Kong listing by issuing 170 million shares priced between HKD32.30 and HKD36.30 a share, according to regulatory filings the Chinese express delivery company released yesterday.
Wrapping up with a quick look at the stock market
Chinese stocks rose on Tuesday with the benchmark Shanghai Composite gaining 0.7 percent and the Shenzhen Component jumping 1.9 percent. Hong Kong’s Hang Seng index also inched up 0.4 percent and the TECH index added 1.2 percent.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
Asia-Pacific summit closes in Peru with members calling for effective multilateral cooperation;
Some 285.6 billion yuan worth of deals were signed at Airshow China 2024.
Here’s what you need to know about China in the past 24 hours
APEC members on Saturday jointly called for effective multilateral cooperation as areas including trade and investment, environment, food security and energy security are facing challenges.
They made the remarks in the 2024 APEC Leaders' Machu Picchu Declaration released following the conclusion of the 31st APEC Economic Leaders' Meeting on Saturday.
Unprecedented and rapid changes continue to shape the world today, it said, adding that in this regard, leaders of APEC economies have noted the significant changes affecting areas such as trade and investment, environment, food security and energy security.
"Effective multilateral cooperation is even more important in this context," it noted.
They also reiterated their commitment to advancing economic integration in the Asia-Pacific region, and continuing to foster a regional trade and investment environment in response to emerging global challenges.
The leaders also reaffirmed their commitment to enhancing supply chain connectivity to establish secure, resilient, sustainable, inclusive supply chains.
Meanwhile, China announced to host the APEC Economic Leaders' Meeting in 2026, the third time China will host the gathering since APEC's founding in 1989.
To advance Asia-Pacific cooperation, China took the initiative to shoulder the responsibility by offering to host APEC in 2026, which was welcomed by APEC members and received their endorsement at this year's APEC Economic Leaders' Meeting, a Chinese Foreign Ministry spokesperson said on Saturday.
Hong Kong Chief Executive John Lee said his visit to Peru and participation in the APEC meeting achieved fruitful results. Lee explained that signing a free trade agreement with Peru, which will take effect in about six months, enables Hong Kong to explore new growth areas and market opportunities in South America. Hong Kong and Peru have also commenced negotiations on a separate investment promotion and protection agreement, he added. Furthermore, through joining the APEC sessions, Lee said Hong Kong enhanced connections and relationships with Association of Southeast Asian Nations economies, as well as built connections with other economies.
Greater Bay Area, Greater future
Around 285.6 billion yuan worth of deals were signed at the Airshow China in Zhuhai, which involve 1,195 aircraft of various models. The six-day event which closed on Sunday attracted nearly 590,000 spectators and participated by 1,022 companies from 47 countries and regions, with 261 aircraft and 248 types of ground equipment exhibited, according to the organizers.
Sunday marked the 10th anniversary of the mutual access mechanism connecting capital markets in the Chinese mainland and the Hong Kong SAR. Financial Secretary Paul Chan Mo-po said the average daily trading value of mainland investors buying and selling Hong Kong stocks through the programs reached 38 billion yuan in the first three quarters of this year - a 40-fold increase compared with that of the first month after the launch of the Shanghai-Hong Kong Stock Connect in 2014. Nearly 77 percent of foreign investors got access to mainland stock and over half to bond markets via the programs, HKEX's CEO Bonnie Chan said Monday. The Northbound and Southbound Stock Connect recorded new monthly highs of 510 billion yuan and HKD280 billion in turnover last month, she added.
Next on industry and company news
Huawei Mate 70 series is live for reservations and the new lineup already exceeded 1 million pre-orders within minutes after the tech giant opened reservation of its new flagship smartphone series at around 12 a.m. on Monday. The page also reveals the colors, storage variants, and models available for pre-order.
China is set to launch electric vertical takeoff and landing aircraft (eVTOL)pilot projects in six cities, said an official of China Air Transport Association on Monday. These six pilot cities are Hefei in Anhui province, Hangzhou in Zhejiang province, Shenzhen in Guangdong province, Suzhou in Jiangsu province, Chengdu in Sichuan province and Chongqing.
Yiwu-Madrid China-Europe freight train service, the world's longest international rail cargo route, marks 10th anniversary on Monday. Over the past decade, the Yiwu-Madrid route completed 1,800 round trips, transporting 145,500 containers of commodities, worth more than USD8 billion in value, according to China Railway Shanghai Group.
China's National Oil and Gas Pipeline Network Group announced on Monday that the China-Russia east-route natural gas pipeline has completed construction and entered its final commissioning phase. The pipeline will supply annually 38 billion cubic meters of natural gas to China once fully operational.
China's annual parcels delivery volume surpassed 150 billion on Sunday, marking the first time the parcels hit this number, the State Post Bureau said.
Earnings reports express
Alibaba Group Holding reported a 63 percent increase in net profit in the fiscal second quarter from a year ago, mainly thanks to the Chinese company's latest strategic adjustments to its core e-commerce and cloud businesses. Net profit was 43.9 billion yuan in the period, while revenue rose 5 percent to 236.5 billion yuan driven by improving monetization of Taobao and Tmall Group. Alibaba's Cloud Intelligence Group logged 29.6 billion yuan in revenue in the second fiscal quarter, up 7 percent from a year earlier thanks to a double-digit public cloud growth.
JD.com reported a 48 percent surge in third quarter net profit from a year earlier thanks to a strong performance in its retail and logistics divisions. The Chinese e-commerce giant raked in net profit of 11.7 billion yuan in the third quarter, while revenue advanced 5.1 percent to 260.4 billion yuan.
Lenovo Group reported a 44 percent profit surge for the second fiscal quarter, mainly thanks to a jump in sales of artificial intelligence-related products such as AI personal computers. Profit was USD359 million in the quarter, while revenue surged 24 percent to USD17.9 billion from a year earlier.
Chinese video-sharing and gaming platform Bilibili turned a profit for the first time in the third quarter after a surge in revenues from mobile gaming and advertising. Bilibili had an adjusted net profit of 236 million yuan in the period,as its net loss shrank 94 percent to 79.8 million yuan from a year ago, while revenue jumped 24 percent to 7.31 billion yuan.
Wrapping up with a quick look at the stock market
Chinese stocks fell on Monday as the benchmark Shanghai Composite slid 0.2 percent and the Shenzhen Component lost 1.9 percent. While Hong Kong’s Hang Seng index closed 0.8 percent higher and the TECH index inched up 0.3 percent.
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Lima, the capital of Peru, enters “APEC time” this week as the South American country hosts the 31st Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting.
Under the theme of “Empower, Include, Grow,” senior officials, ministers and leaders from APEC's 21 member economies, which together account for almost two-thirds of world GDP and half of global trade, will tackle core challenges facing the Asia-Pacific region, including climate change, sustainable energy solutions, the digital economy transition and trade facilitation.
Spanning across the vast Pacific Ocean, China and Peru have long-lasting sincere friendship. Peru was one of the first Latin American countries to establish diplomatic relations and a comprehensive strategic partnership with China. It was also the first Latin American country to sign a package of free trade agreements with China.
The two countries have witnessed increasingly close economic and trade cooperation as well as cultural exchanges. Peru is one of the Latin American countries where Chinese immigrants first arrived and settled in large numbers. "Chifa," a word that originated from the Cantonese dialect for "having meals," has become the term that Peruvians use to refer to Chinese restaurants.
At the just concluded 2024 China International Import Expo (CIIE), an alpaca doll named Gordita traveled far from Peru to China to participate in the expo. The fluffy adorable alpaca doll captured the attention of many visitors. Moreover, toys crafted from alpaca wool by Peruvian artisans were also on display. From the first CIIE to the seventh, these Peruvian alpaca toys have been a part of every expo, showcasing their unique charm to China and the world.
Peru was also one of the first countries to benefit from Chinese cooperation. In 1992, the Shougang company of China acquired an iron mine in Marcona, Peru (one of China's first investments abroad). Since then, collaboration and cooperation between Peru and China have increased, with the two countries signing a free trade agreement in 2009, and raised the bilateral relationship to a comprehensive strategic partnership in 2013.
China's first investment in the Marcona iron mine was $120 million. Today, it has increased to $35 billion, spread across sectors such as mining, infrastructure, energy, communications and services.
In 2010, the FTA officially came into effect and serves as a catalyst for bilateral trade growth. In June of this year, the two countries announced the completion of negotiations on upgrading the FTA.
Thanks to the FTA, Peru's products have begun to reach Chinese households. Peru has become the largest supplier of blueberries and avocados to China, with products such as quinoa, grapes, maca, and alpaca wool, among others, gaining popularity in the Chinese market.
It is reported that China and Peru are actively negotiating on issues such as the export of high-quality Peruvian frozen fruits to China, and positive progress has been made.
The Chinese and Peruvian economies are highly complementary. With joint efforts from both sides, China has become Peru's largest trading partner for 10 consecutive years, and Peru is the second largest investment destination of China in Latin America.
In 2023, the bilateral trade volume reached $37.69 billion. According to Peruvian statistics, over the past 14 years, Peru's exports to China have grown by 325.9 percent, with an average annual growth of 13.2 percent, making Peru China's fourth-largest Latin American trading partner.
The signing of the FTA has greatly enhanced the level of trade between Peru and China. Since the agreement came into effect, Peru's non-traditional exports to China have increased by 227 percent, making Peru the second largest fruit supplier to China in Latin America.
Since China and Peru signed the memorandum of understanding (MOU) on Belt and Road Initiative cooperation in 2019, bilateral cooperation has achieved fruitful results, with increasingly close collaboration in the economy, trade, finance, culture and other fields. A notable milestones include the Chancay Port, a flagship project under the Belt and Road Initiative.
Chancay Port was officially inaugurated on Thursday, which will turn into a business hub of the Americas and trigger a true economic revolution in the region, directly boosting its development and reconfiguring the map of maritime routes in the Asia-Pacific region.
The Sino-Peruvian partnership is being continuously reinforced. Reputable Chinese companies in consortium with local companies are in charge of important projects in different regions of Peru, creating direct and indirect employment and contributing to Peru's development.
Among the emblematic projects are the construction of the San Gabán III Hydroelectric Power Plant, worth $500 million, in the forest region of Puno in southeast Peru, which includes the construction of an about 15-kilometer-long tunnel that will divert the waters of the river of the same name to generate 206 MW of electricity and feed the national interconnected system.
In the neighboring region of Cusco, another important Chinese company is building a road, including a 2-km-long tunnel, from Santa Maria to Machu Picchu, a UNESCO World Heritage Site, to provide easier and better access to the Inca sanctuary.
Peru is witnessing economic development on such a scale for the first time in its history thanks to its partnership with China, which is based on goodwill, mutual trust and mutual respect. Peru's development is an example of brotherhood and common destiny of two ancient civilizations, which will become an example for Latin America.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
China unveils new tax breaks to boost property sales;
Tencent logs 47% jump in Q3 profit on strong gaming growth.
Here’s what you need to know about China in the past 24 hours
China is amending its tax structure on residential property transactions, effectively lowering the cost of ownership and extending fresh incentives to a wider pool of buyers, in a round of measures to arrest a four-year slump.
First-time buyers will enjoy a 1 percent deed tax on homes measuring 140 square meters and below from December 1, the Ministry of Finance said on Wednesday, while a 1.5 percent rate will be taxed on purchase of units above that size. The existing threshold is 90 square meters.
The revised regulation on home transaction deed tax will mainly benefit those who plan to purchase bigger homes, said Zhang Dawei, chief analyst with real estate agency Centaline Property.
Home buyers planning to buy second homes in Beijing, Shanghai, Guangzhou and Shenzhen will benefit most from the revised deed tax, as a previous rate of 3 percent had been applied to all four of these first-tier cities, Zhang said.
Under the new policy, buyers planning to buy a second home with a floor area of 140 square meters or less will enjoy a lowered deed tax of 1 percent, while for those intending to buy a second home with a floor area above 140 square meters, the revised deed tax has been lowered to 2 percent.
More impactful policies are expected to roll out in the future, which will help stabilize real estate market expectations.
The transaction volume of new homes went up 0.9 percent year on year in China in October, reversing a decline that started in June last year, while second-hand home transactions rose for the seventh consecutive month and by 8.9 percent year on year.
Additionally, authorities will clarify policies on value-added taxes and land appreciation taxes in line with the scrapping of standards for ordinary and non-ordinary housing, reduce second-hand housing transaction costs, and keep tax burdens on real estate companies stable.
Warming home sales, along with further trade improvement in October and vibrant manufacturing activity, have added to evidence proving that the Chinese economy is gaining more traction thanks to pro-growth measures.
China's trade with Asia-Pacific Economic Cooperation (APEC) economies reached a historic high, surpassing 21 trillion yuan in the first 10 months of 2024, underscoring their deepening economic integration and strong trade connections. According to China Customs, trade with APEC economies accounted for 59.1 percent of China's total trade, which grew by 5.7 percent year-on-year, outpacing China's overall trade growth rate by 0.5 percentage points.
Greater Bay Area, Greater future
Several Chinese aviation companies, including Aero Engine Corp. of China and Xpeng AeroHT, reported record-breaking orders at the ongoing Zhuhai airshow. AECC signed procurement contracts of intent for over 1,500 general aviation power products with 10 major clients that valued at more than 10 billion yuan, marking the largest order sum ever for the civil aviation engine manufacturer. EV startup Xpeng’s flying car unit Xpeng AeroHT signed cooperation and pre-order agreements with 12 prospective clients, totaling nearly 2,010 units.
Hong Kong Chief Executive John Lee has confirmed that a free-trade agreement between the SAR and Peru will be signed this week during the APEC Economic Leaders’ meeting, with the agreement to cover goods and services, as well as investment and a dispute settlement mechanism.
Hong Kong climbed to seventh in a survey of countries ranking their global digital competitiveness. According to the latest World Digital Competitiveness Ranking compiled by the Switzerland-based International Institute for Management Development, Hong Kong had advanced three places following an improvement in three areas - technology, knowledge and future readiness.
Next on industry and company news
China’s annual production of new energy vehicles surpassed 10 million units for the first time, marking a global milestone, said the China Association of Automobile Manufacturers. Experts predict production could exceed 12 million by year-end.
Dingdong Maicai has chosen Saudi Arabia as its first overseas destination for international expansion and is in the process of building a team there, sources said. The Chinese online grocer will focus on selling prepared meals in the Middle East, alongside fresh produce and frozen goods.
Earnings reports express
Chinese social media and gaming company Tencent on Wednesday reported better-than-expected profit in the third quarter, spurred by growth in games, advertising and cloud services. Tencent reported profit attributable to shareholders surged by 47 percent year-on-year to 53.23 billion yuan in the third quarter, while revenue rose by an annual 8 percent to 167.19 billion yuan. Gaming remained the company's backbone, with the unit's domestic revenue up 14 percent year-on-year to 37.3 billion yuan, while that for online advertising surged by an annual 17 percent to 29.99 billion yuan, making it one of the fastest-growing categories outside gaming.
Alibaba Health’s net profit soared 73 percent to 769 million yuan in the six months ended Sept. 30 from a year earlier, the Chinese online healthcare provider latest earnings report showed yesterday. Revenue rose 10 percent to 14.27 billion yuan.
Geely-backed Zeekr today reported a 22 percent reduction in net loss to 1.1 billion yuan in the third quarter from a year earlier. Revenue surged 31 percent to 18.4 billion yuan, with vehicle sales rising 42 percent to 14.4 billion yuan during the period.
Seres Group announced yesterday that it would distribute 500 million yuan worth of cash dividends to all shareholders. The NEV maker reported its operating revenue surged 636 percent in the third quarter from a year earlier to 41.6 billion yuan.
Wrapping up with a quick look at the stock market
Chinese stocks declined on Thursday as the benchmark Shanghai Composite dropped 1.7 percent and the Shenzhen Component tumbled 2.8 percent. Hong Kong’s Hang Seng index also closed 2 percent lower, and the TECH index fell 2.2 percent.
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