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Markets

Hong Kong raises Silver Bonds coupon rate to 4.25% for latest batch

The city plans to issue up to HK$50 billion of Silver Bonds next month, with the higher rate intended to pre-empt a rise in US interest rates Hong Kong is raising the guaranteed coupon rate for its 11th batch of Silver Bonds for senior citizens, amid market expectations that the US Federal Reserve will raise interest rates later this year. Up to HK$50 billion (US6.4 billion) of Silver Bonds will go on sale this month with a guaranteed annual coupon of 4.25 per cent, up from 3.85 per cent for the batch sold in September last year, the government announced on Thursday. The three-year bonds will be on sale from 9am on August 21 until 2pm on September 4, and will be issued on September 15, right before the Fed is due to announce its next interest rate decision. Each board lot is HK$10,000, with a maximum allocation of HK$1 million per person. Interest is paid every six months. The government will pay either the minimum fixed rate or a floating return linked to Hong Kong’s inflation rate, whichever is higher. Depending on market demand, the issuance size may expand to HK$55 billion.

August 6, 2026

Markets

China’s MLCC supply chain expanding rapidly amid surge in global AI demand

Driven by the insatiable computing needs of global AI infrastructure, the upstream MLCC supply chain is racing to expand capacity China’s upstream supply chain for multilayer ceramic capacitors (MLCCs) – tiny components dubbed “the rice of electronics” – is racing to expand capacity, as an artificial intelligence-driven boom triggers a surge in global orders. Shandong Sinocera Functional Materials, a major supplier of dielectric powder to MLCC manufacturers, told investors in a Shenzhen Stock Exchange filing on Wednesday that it was actively pushing to expand capacity for AI servers and vehicles, with parts of its new production lines already operational. “Looking ahead, as new capacity gradually ramps up, output and sales of MLCC powders are expected to rise further,” Sinocera said in the document, adding that it would continue to expand and ensure its supply aligns with market momentum. The company’s optimism follows a strong performance in the first half of 2026, when it reported sales growth of nearly 17 per cent year on year to reach 2.5 billion yuan (US$370 million), while net income rose 9 per cent. Other upstream suppliers have also rushed to pour investments into meeting the booming demand.

August 6, 2026

Markets

Swire earnings show Hong Kong’s prime commercial districts outpacing others in recovery

First-half results highlight a widening gap between Central’s office recovery and weaker commercial districts Hong Kong’s commercial property recovery is increasingly becoming a story of location, with the fortunes of the city’s biggest landlords diverging depending on the districts where they own office space. Swire Properties’ first-half results on Thursday captured that shift. The developer owns office towers in both Admiralty, next to Central’s financial district, and Quarry Bay, an eastern business hub that has long attracted tenants seeking spaces with lower rents than those in pricier areas like Central. Pacific Place, Swire’s mixed-use complex beside Central, was 98 per cent occupied and recorded selective signs of positive spot rents as banks, asset managers and other financial firms renewed leases and upgraded into premium offices. At Taikoo Place in Quarry Bay, however, an abundance of new supply and increased vacancies kept leasing conditions competitive. The occupancy rate for One Island East and One Taikoo Place was 91 per cent, while the district’s newest office tower Two Taikoo Place was 80 per cent leased.

August 6, 2026

Markets

Unrelenting AI demand spawns new plant for Chinese PCB maker Victory Giant

Nvidia supplier to invest at least US$444 million in plant for ‘AI high-end electronic circuit smart manufacturing’ in southern city Huizhou The Guangdong-based company has been negotiating new orders with major US firms, as it capitalises on surging demand from makers of both graphics processing units (GPUs) and application-specific integrated circuits (ASICs) used in AI computing, according to a source familiar with the matter. The source added that Victory Giant’s supply pipeline for Nvidia’s next-generation Kyber rack system was “progressing smoothly”. To meet the rising demand, the company is ramping up production in its home province. It acquired a 100,000-square-metre (1.08 million sq ft) industrial land plot in the southern city of Huizhou, earmarked for an “AI high-end electronic circuit smart manufacturing” facility, according to recent public disclosures. Victory Giant did not immediately respond to a request for comment on Thursday. The company’s Hong Kong-listed stock gained 4.4 per cent to HK$231 on Thursday.

August 6, 2026

Markets

US efforts to prop up the yen risk doing more harm than good

Reversing the yen’s long-term decline ultimately rests on Japan’s ability to take its real interest rates out of negative territory – without triggering market panic The surprise coordinated intervention has caused the yen to strengthen to 157 per dollar, its strongest level since May 12. The fact that the US was directly involved indicates a stronger commitment to shoring up the currency. In a report on August 2, Citigroup said “coordinated intervention may be a turning point” for the yen. HSBC, in a report on August 3, said “joint intervention will likely buy more time than earlier solo intervention”. Yet no sooner did the joint operation occur than investors began to question the rationale for US participation – especially given US Treasury Secretary Scott Bessent’s unusually assertive approach to shaping Japanese economic policy – and whether it would help or hinder efforts to stabilise Japan’s currency and bond markets. This explains why Bessent wants Japan’s government to make use of the so-called Foreign and International Monetary Authorities Repo Facility, a Federal Reserve liquidity tool that allows central banks to use their Treasury holdings as collateral to access dollars.

August 6, 2026

Markets

Chinese fund managers’ pursuit of AI plays backfires as hot tech stocks wobble

AI bets have been unravelling globally amid doubts about the investment returns on cloud-service infrastructure A shift to technology stocks by China’s most seasoned fund managers has backfired, with the unwinding of AI plays taking a toll on the performances of their products. Funds run by some star managers with a value-investing approach all recorded declines in net asset values last month after they switched to chipmakers and the manufacturers of optical transceivers and out of long-held consumer bets in the second quarter. Technology stocks listed in mainland China suffered their biggest monthly declines in July, aligning with a global unravelling of artificial intelligence bets amid doubts about the investment returns on cloud-service infrastructure. The pursuit of hot tech stocks by China’s most influential fund managers, driven by the fear of missing out on the AI frenzy and a marked contrast to the value-investing approach they were known for, probably saw them buy at the peak of the boom. Meanwhile, the consumer stocks they had abandoned rebounded as they piled into technology stocks at elevated prices.

August 6, 2026

Markets

Hong Kong stock regulator flags more companies for share concentration

SFC notes 13 cases so far this year, already close to last year’s total of 15, and warns a lack of public float can lead to high volatility Hong Kong’s securities regulator has put a spotlight on highly concentrated shareholding this year, a move interpreted by market analysts as a warning about sharp price swings on small-cap stocks. For example, the controlling shareholder and 18 shareholders of Desun Real Estate Investment Services Group, a Sichuan-based property management firm, held a combined 99.53 per cent of total issued shares as of July 21, according to an SFC announcement on Monday. The firms cited by the SFC were small- and mid-cap stocks, with market values between HK$600 million (US$89 million) and HK$9 billion. The regulator warned that when ownership was concentrated among a few shareholders, even small trades could cause sharp price swings. Andrew Lam, managing director at audit firm BDO, said market funds and investor attention were heavily focused on “A plus H” listings – firms with both Hong Kong shares, called H shares, as well as A shares listed in mainland China – as well as biotech companies and specialist tech leaders.

August 6, 2026

Markets

Shares of major Hong Kong insurance, finance firms tumble following report of 20% levy

Prudential, AIA, and HSBC slid following report of the levy, though Goldman Sachs says profit fallout may be limited Shares of major Hong Kong-listed insurance and financial institutions tumbled on Thursday, after reports surfaced that mainland Chinese authorities had begun taxing gains on offshore insurance policies bought by mainland visitors in the city, reviving fears of tighter curbs on cross-border capital flows. In early trading as of 9.45am, Prudential, whose Hong Kong hub was its biggest profit driver last year, fell 5.9 per cent, while pan-Asian life insurer AIA Group dropped 6.6 per cent. Major banking giants with significant wealth management arms also tracked lower, with HSBC Holdings losing 4.1 per cent and Standard Chartered trading down 3.4 per cent. The sell-off was triggered by a report from domestic financial media outlet Caixin saying that Chinese tax officials in cities like Beijing and Hangzhou had begun imposing a 20 per cent levy on income from Hong Kong insurance products, including dividend distributions and interest on prepaid premiums.

August 6, 2026

Markets

How SAIC’s recharged venture with GM plans to catch up with top EV makers in China

Renewed partnership aims to roll out 30 EVs by 2030, pairing China’s supply chain muscle with GM’s global reach and loyal base SAIC and GM, the largest carmakers in China and the United States, respectively, in terms of sales volume, signed the agreement on Wednesday, building on a partnership that began in 1995 and led to the SAIC-GM joint venture in 1997. Wang Xiaoqiu, chairman of state-owned SAIC, said both sides should leverage their strengths in technology, branding, global distribution and local resources, opening new avenues for development with a global perspective. The renewal comes as sales from SAIC-GM and affiliates slumped from a peak of more than 4 million vehicles in 2017 to about 2.17 million units last year, according to data from SAIC. GM’s global car sales also shrank sharply to about 6.2 million units last year from over 10 million units in 2016.

August 5, 2026

Markets

From wealth transfer to living legacy: How Asia’s founders are architecting the future

As its latest research reveals a 'Knowledge Paradox' stalling succession plans, HSBC Life is building a comprehensive ecosystem to safeguard wealth, health, and family values. [The content of this article has been produced by our advertising partner.] Asia is on the precipice of a monumental economic shift. By 2030, an estimated US$5.8 trillion of wealth is expected to pass from the region’s founding generations to their successors. In today’s world, wealth is rarely held in one place or one form. Families increasingly live cross-border lives with complex corporate holdings - making succession a formidable challenge to execute smoothly. At the inaugural Legacy Continuum Summit recently hosted by HSBC Life in Hong Kong, the dialogue ventured far beyond traditional asset allocation. The event served as a real-world corroboration of a shifting paradigm: modern succession planning must safeguard not only financial portfolios, but also human capital, family values, and long-term health. “Legacy planning has become a matter of continuity,” Daisy Tsang, Chief Executive Officer of HSBC Life Hong Kong and Macau, said in her opening address. “In a cross-border world, good intentions are no longer enough.

August 5, 2026

Markets

Chinese and Western firms are teaming up even as governments fight

To survive trade restrictions and regulatory barriers, companies on both sides are turning to joint ventures In an era defined by escalating geopolitical tensions and the weaponisation of supply chains, a counterintuitive phenomenon is taking root in the industrial heartlands of China, the United States and Europe. While governments in Beijing, Washington and Brussels engage in high-stakes chess matches of tariffs, export controls, sanctions and investment screening mechanisms, a parallel universe of corporate deal-making is flourishing. The prevailing logic among multinational executives is that state-level divergence does not necessitate commercial divorce. Instead, Chinese and Western manufacturing giants are increasingly aligning their interests through complex joint ventures and strategic production alliances, not in spite of government friction but as a direct hedge against it. This corporate pragmatism could transform joint ventures from mere tools of market access into sophisticated risk-mitigation vehicles designed to bypass trade barriers, localise supply chains and secure a foothold in multiple regulatory blocs at the same time.

August 5, 2026

Markets

Peninsula group to renovate Hong Kong flagship, Tokyo hotel in US$268m project

No timeline has been set, but the operator says it will minimise disruption while preserving the heritage of its iconic Hong Kong hotel The board also approved the capital expenditure programme for The Peninsula Hong Kong and The Peninsula Tokyo, which accounted for most of the group’s total HK$2.5 billion in outstanding capital commitments. “These capital expenditure programmes reflect our confidence in the long-term value of our owned portfolio,” CEO Benjamin Vuchot said in the group’s statement on Wednesday. “Preserving the heritage and character of the building is a key consideration,” said Lynne Mulholland, HSH general manager, group corporate affairs. While the timeline for the renovations was yet to be finalised, the hotel would aim to minimise disruption during the works, Mulholland added. The investment comes as Hong Kong’s tourism sector continues to recover, with international visitor arrivals supporting a rebound in luxury hospitality. For the six months ended June 30, HSH posted a profit attributable to shareholders of HK$23 million, compared with a loss of HK$289 million a year earlier.

August 5, 2026