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Markets

Deleveraging clouds China’s AI trade as rising US Treasury yields, inflation fears persist

The outstanding balance of stocks bought with borrowed money dropped to US$390.1 billion on Thursday after a brief rebound in August Chinese leveraged traders continue to unwind their bets on stocks, as unease over rising global bond yields and a lingering oil shock add uncertainty to the artificial intelligence trade. The outstanding balance of stocks bought with borrowed money dropped to 2.62 trillion yuan (US$390.1 billion) on Thursday after a brief rebound in August, according to data from China Securities Finance. That was 13 per cent below an all-time high of 3.01 trillion yuan set on June 25. Meanwhile, short positions on stocks rose to 29.2 billion yuan, near a two-year high. The subdued risk appetite aligned with global caution about risk assets after long-duration US Treasury yields rose to multi-year highs and Federal Reserve chairman Kevin Warsh signalled an interest-rate increase unless inflation moderated. Stocks were also capped by Beijing’s reluctance to introduce a broad stimulus package even after key economic data fell short of estimates in July.

September 4, 2026

Markets

Debunking the ‘Tina’ doctrine: Nomura warns AI-driven rally masks US vulnerabilities

Bank flags US risk premium as AI surge falters, undermining ‘Tina’ or ‘there is no alternative’ to dollar assets The ratio of US net international investment position (NIIP) liabilities to the combined assets of all net creditor nations has risen to 80 per cent, according to the Japanese investment bank. US NIIP liabilities reached US$21.9 trillion in 2025, equivalent to 71 per cent of gross domestic product, while the country’s portfolio liabilities have quadrupled to US$37.4 trillion in March 2026 from US$9.2 trillion before the global financial crisis, the bank’s data showed.

September 4, 2026

Markets

China prepares next phase of national SME fund to boost tech start-ups and IPOs

A new phase of the state-backed fund is set to target early-stage hard-tech firms that are IPO-ready China will soon launch the second phase of a National SME Development Fund with a focus on IPO incubation and channelling private capital into backing innovative, early-stage entities and projects with long-term prospects in hard tech. The fund’s second phase was confirmed as the Ministry of Industry and Information Technology (MIIT), together with nine other ministries and agencies, released China’s 15th five-year plan for promoting the development of small and medium enterprises (SMEs). The second phase would enhance support for inclusive financing and initial public offering readiness, MIIT officials said at a State Council Information Office press conference in August. The national fund would provide a “guiding and catalytic role”, the officials said, expressing confidence that it would continue to attract and pool more venture and private capital for investment in tech-focused SMEs.

September 3, 2026

Markets

As hordes head to Shenzhen, Hong Kong bars, restaurants sign up for more floor space

More food and beverage outlets ‘incorporating unique experiential elements into the dining journey’, says CBRE’s Lawrence Wan Hong Kong’s food and beverage (F&B) operators, both new and existing players, signed leases for 155,000 sq ft of new floor space in the second quarter of this year, a record high for the sector and more than double the amount registered in the first quarter, according to property consultancy CBRE. In the first half of the year, they snapped up 230,000 sq ft of new space, CBRE data showed. However, analysts said the city’s selective and narrow-based retailing recovery was forcing brands and retailers to be more creative and adopt novel tactics to keep attracting consumers, with that trend particularly evident in the F&B sector. “Our frontline observations suggest that an increasing number of F&B operators are enhancing their offerings by incorporating unique experiential elements into the dining journey,” said Lawrence Wan, executive director and head of retail leasing at CBRE Hong Kong.

September 3, 2026

Markets

About 4 in 5 young, affluent investors in mainland China turn to offshore assets: study

Affluent investors are using exposure to the assets for returns and to manage risk Young Chinese investors are increasingly turning to offshore assets for wealth preservation and diversification, with more than four-fifths of those surveyed reporting some exposure outside mainland China, a recent study by the CFA Institute showed. About 81 per cent of young Chinese investors surveyed had offshore investments, with such assets accounting for an average 43 per cent of their portfolios, according to the report. The study, conducted in December by the CFA Institute – which trains financial professionals – surveyed 300 young, affluent investors in mainland China between the ages of 18 and 44. The findings suggest offshore diversification has moved beyond a niche preference among wealthy Chinese investors, despite the country’s monetary policies, according to the report. “Despite capital controls, exposure to offshore assets is already mainstream among young, affluent investors, driven primarily by the need for asset preservation and international diversification,” researchers said in the report.

September 3, 2026

Markets

Tech race flashpoint: Huang, Musk push back on AI guard rails amid heated US-China rivalry

US tech leaders warn strict rules could blunt innovation and prevent the harnessing of economic gains from rapidly advancing AI He argued that excessive regulation and fear could prevent countries from capturing the economic benefits of rapidly advancing AI. “The worst outcome is that you don’t take advantage of it, that you are left behind,” the billionaire chip executive said. Musk delivered a similar message at a G20 session on Tuesday, saying countries should create an environment “relatively free of regulation” in which new technologies were “default legal as opposed to default illegal”.

September 3, 2026

Markets

Amid global risks, younger investors favour tangible bars as paper gold loses shine

Gen Z buyers are driving demand for bullion, spurred by geopolitical tensions, inflation and the appeal of owning gold outright Sussi Ye began buying gold bars in small batches at the start of the year, slowly building a hoard now worth about 200,000 yuan (US$29,700). Despite the metal’s price swings since then, she has not sold a single gram. “I like that it’s tangible, you can hold it, and that gives you a sense of security. If I get married someday, I can still have these gold bars crafted into wedding jewellery.” Demand for physical gold among Gen Z was rising, as geopolitical tensions and market uncertainties fuelled interest in owning gold outright rather than through paper-based products, according to the London-based dealer IBV Gold London. “Younger investors have experienced a lot of uncertainty – inflation, geopolitical tensions, volatile markets and concerns about the strength of currencies and the wider economy,” said Yuvana Singh, manager at IBV Gold London.

September 3, 2026

Markets

Mainland Chinese investors buy Hong Kong tech stocks in AI pivot, sell financials

Net buying surges for third straight month as AI pivot benefits MiniMax, Alibaba and Tencent, while investors eschew traditional industries Alibaba Group Holding and Tencent Holdings, the Chinese hyperscalers that have ramped up AI adoption, ranked second and third, attracting buying of HK$7.86 billion and HK$6.72 billion, respectively. Alibaba owns the South China Morning Post. The shift underscored the appeal of Chinese technology stocks trading in Hong Kong after the latest results from chipmaker Nvidia indicated that demand for AI infrastructure remained robust in spite of rising funding costs. The Hang Seng Tech Index dropped 4.3 per cent last month, offering a dip-buying opportunity to mainland traders, who currently account for about 30 per cent of stock transactions in the city.

September 3, 2026

Markets

Hong Kong’s Digital Asset Moment: Forthright Securities on What Bitcoin Asia Signals for Licensed Finance

[The content of this article has been produced by our advertising partner.] When Bitcoin Asia landed at the Hong Kong Convention and Exhibition Centre last week, it was more than another major gathering for the digital asset community. The summit’s presence in the city reflected a wider shift: digital assets are increasingly moving from the margins of finance into a more regulated, institutionally relevant part of the market. From International Financial Centre to Compliant Digital Asset Hub Bitcoin Asia’s decision to host in Hong Kong has been years in the making. Over the past few years, the city has steadily built out a virtual asset regulatory framework, from licensed virtual asset trading platforms and spot bitcoin and ether ETFs to stablecoin-related initiatives, institutional-grade custody and the tokenisation of real-world assets. The result is a market where digital asset innovation can be pursued inside, rather than alongside — a regulated environment. Hong Kong's competitive advantage is no longer simply its status as Asia’s top international financial centre, but its ability to bridge deep, traditional capital markets with digital asset innovation under a single, coherent supervisory framework.

September 3, 2026

Markets

China’s new home finance rules reduce buyer risks but may not revive the market: analysts

Analysts say lower mortgage payments alone may not persuade buyers to jump in while prices remain under pressure China’s new housing finance rules reduce the risk of buying a new home but analysts are not convinced they will be enough to tempt hesitant buyers still weighed down by falling prices and weak confidence. The changes are designed to reduce the risk in buying pre-sold homes. Mortgage funds for pre-sold homes will be released only after submission of the project completion filing, when the homes are certified as safe and ready to move in, rather than when the main structure is finished. The maximum mortgage term has also been extended to 40 years from 30. The measures address a problem that emerged during China’s property downturn, when some buyers were left paying mortgages on homes that developers struggled to complete. But analysts said concerns about handover were only one factor behind the decline in home purchases. “I don’t think the primary goal of this reform is really to … stimulate property demand,” said Karl Choi, head of China property research at Bank of America.

September 2, 2026

Markets

Walmart’s Sam’s Club accelerates expansion in China as membership passes 10.7 million

Company to open 13 new stores this year, bringing total to 76, as value prices and exclusive goods prove to be a winning formula US membership-only retailer Sam’s Club has sped up its expansion in China this year, with the launch of its sixth Beijing location on Monday drawing long queues of eager shoppers. The Walmart-owned warehouse retailer has found a winning formula in China, with its value pricing and exclusive goods attracting middle-class consumers even as some foreign brands shut down stores or pull out of the country. Sam’s Club said last month that it had 10.7 million paid members in China as of June. Its total annual membership revenue could hit 3 billion yuan (US$450 million) this year, with its basic and premium memberships priced at 260 yuan and 680 yuan a year, respectively. “The appeal of Sam’s Club is the breadth and quality of goods offered along with wholesale pricing,” said Cathy Chao, senior director of Asia-Pacific corporate ratings at Fitch Ratings.

September 2, 2026

Markets

BYD, Leapmotor buck EV market slowdown as pressure piles up on small rivals

Top performers BYD and Leapmotor clawed their way up higher in terms of sales last month, even as China’s electric vehicle (EV) market was shrinking amid weaker consumer demand. However, smaller players were expected to face falling sales and mounting losses for the rest of the year as competition got fiercer, according to analysts. BYD, the world’s largest EV builder, saw its sales in August surge to the highest in nine months, climbing 17.8 per cent from a year ago to 440,293 units, it said in...

September 2, 2026