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Markets

China accelerates digital yuan push as 26 banks join new cross-border platform

The platform will make it easier to make cross-border e-CNY payments, with banks operating in Brazil, Qatar and Thailand among others already signed up China has onboarded a first batch of 26 domestic and overseas financial institutions to its integrated cross-border digital yuan payment platform, marking a further step in building out the digital currency’s payment infrastructure amid Beijing’s push to scale up adoption of the digital yuan, also known as the e-CNY. The institutions will join as direct participants in China’s Cross-border e-CNY Transfer Services (CBETS), which is managed by the People’s Bank of China. The CBETS supports round-the-clock digital payment links with foreign central banks and overseas financial institutions, giving the member institutions direct access to the cross-border digital yuan network and reducing their reliance on traditional intermediary channels, Xinhua reported on Tuesday. The Chinese central bank’s digital yuan international operations centre, which launched in September, created the new platform by consolidating several existing service modules.

June 17, 2026

Markets

Why deeper China ties matter as Europe seeks to power its AI ambitions beyond America

Euro architect Christian Noyer says Chinese capital can help Europe build AI, green industries and strategic autonomy as it revamps markets Christian Noyer, a founding vice-president of the European Central Bank, former governor of the Bank of France and lead author of a landmark proposal to integrate the continent’s capital markets, said Europe should remain open to Chinese investment as it sought greater economic independence. “We cannot rely entirely on America,” said Noyer – referring to Europe’s urgent need to develop its own artificial intelligence and technology infrastructure – in an interview with the South China Morning Post on Tuesday. His comments came as Europe navigates an increasingly difficult position between the world’s two largest economies.

June 17, 2026

Markets

HSBC China pioneers cross-border fund services for mainland investors

Despite the cross-border trading crackdown, analysts say Beijing will continue to allow investment in overseas markets via legal channels HSBC China has become the first foreign bank to provide custodian services for a cross-border fund product that can help mainland clients invest in foreign markets, the lender said. China’s capital controls mean that mainland businesses and individuals are not technically allowed to deposit their money in offshore bank accounts or invest directly in equities and bonds abroad. However, mainland investors can opt for investment schemes such as QDLP, under a quota system, which allows institutions to raise capital from mainland investors before converting their funds into foreign currencies to buy overseas-listed bonds and equities. QDLP would continue to be an important mechanism for China to open up its capital market to the world, said Tom Chan Pak-lam, honorary president of the Institute of Securities Dealers. “HSBC China’s involvement in the scheme is an indication that Beijing will continue to encourage mainland investors to invest in overseas markets as long as it is through the proper channels such as the Stock Connect schemes or the QDLP,” he said.

June 17, 2026

Markets

Global brands in China seek local partners amid market squeeze

Pizza Hut, the largest casual dining operator in China, has become the latest Western chain to change hands in the country, as global brands count on local companies to bolster sales in an increasingly competitive market. Yum China will pay US$1.2 billion to buy the China business from US-based Yum! Brands, according to a statement on Tuesday. The Shanghai-based company already operates the pizza chain in China, along with KFC, Taco Bell and hotpot brands. The all-cash sale is due to close in...

June 17, 2026

Markets

AI boom sparks Kingboard subsidiary’s US$1.5 billion stake sale to ramp up PCB capacity

AI server backlogs and supply chain strains push Kingboard to tap markets and expand circuit board output The company said the proceeds would be used to expand business and production capacity to meet surging demand. The five hyperscalers – Alphabet, Amazon.com, Meta Platforms, Microsoft and Oracle – were expected to spend a combined US$805 billion on AI infrastructure in 2026 alone, according to Morgan Stanley’s latest estimates. Kingboard Holdings agreed to sell 155 million shares in Kingboard Laminates at HK$76 apiece, an 11.5 per cent discount to Tuesday’s closing price of HK$85.90, according to a Hong Kong stock exchange filing on Wednesday. The placed shares will account for about 4.92 per cent of the enlarged share capital, with the transaction scheduled to close on June 22.

June 17, 2026

Markets

Geopolitics is complicating the green transition – and China’s moment

Governments want to transition to cleaner energy but also cut strategic reliance on China. Balancing these goals will be tricky The recent escalation in the Middle East has produced an unforeseen winner. The conflict has rekindled worries about logistics and energy security, prompting governments and businesses to reconsider their reliance on fossil fuels and fragile supply routes. This has sped up the move towards renewable energy. The strategic significance of the Strait of Hormuz is well understood. Roughly one-fifth of the world’s oil trade passes through this narrow waterway. Any threat to its operation immediately affects energy prices, investor sentiment and economic planning. The conflict once again shows how fragile the global energy system remains when it depends heavily on a handful of geopolitical chokepoints. Across Europe, demand for electric vehicles has surged to record levels. In March alone, Britain’s installation of solar capacity hit its highest since 2012. South Korea, which imports about 70 per cent of its crude oil from the Middle East, has accelerated plans to expand renewable energy generation. Similar discussions are taking place in countries throughout Asia, Africa and Latin America.

June 17, 2026

Markets

How Asia’s C-suite leaders cut through chaos to drive clarity, financial discipline and growth

Marsh Asia CEO David Jacob on how leaders can navigate geopolitical, environmental, technological and socio-economic risks to seize new opportunities Growing global and economic uncertainty driven by geopolitics, advances in artificial intelligence (AI), socio-economic concerns and environmental risks are all intensifying pressure on executives as they adapt and respond to ongoing, high-stakes disruptions around the world. The World Economic Forum’s “Global Risks Report 2026” says 57 per cent of experts surveyed anticipate a turbulent decade ahead. “Asia’s C-suite is navigating a new competitive era marked by geopolitical fragmentation,” says David Jacob, CEO of Marsh Asia, a global professional services firm. He adds many leaders struggle to make timely decisions and can lack the foresight, clarity and agility needed when faced with complex, interconnected risks. Marsh says it advises more than 90 per cent of Fortune 500 companies, one-third of which are headquartered in Asia, with a commitment to helping leaders navigate uncertainty around risk, capital and people to help unlock opportunities for growth.

June 17, 2026

Markets

China pledges support for trading of treasury bond futures in Hong Kong

Top financial regulator declares support for move promoting yuan internationalisation and the city’s role as a yuan hub China will double down on its support for Hong Kong as a global hub for the offshore yuan, with Beijing’s top market regulator saying that the city could soon begin offering trading of yuan-denominated treasury bond futures. Beijing would support Hong Kong launching five-year Chinese government bond futures in the near term, making it easier for overseas investors to put long-term asset allocations into yuan assets, said Wu Qing, chairman of the China Securities Regulatory Commission (CSRC) at the annual Lujiazui financial forum in Shanghai on Wednesday, without giving a time frame. His comments indicate that the much hoped-for financial derivative product may materialise soon in the city after lengthy regulatory discussions. An official launch would serve Beijing’s ambition of yuan internationalisation amid the diminishing role of the US dollar, while solidifying Hong Kong’s status as a global financial hub and the world’s biggest centre for offshore yuan transactions.

June 17, 2026

Markets

Mongolian coal riding the rails towards a brighter future

In southeastern Mongolia, not far from the Khangi border checkpoint with China, a railway track ends just short of the fence, awaiting the day when a direct connection to the country’s prosperous southern neighbour becomes a reality. But if everything goes according to plan, that day could come this year, with the track in Mongolia’s Dornogovi province linking to an extension on the other side of the border that will allow transshipment and seamless rail delivery to China’s Mandal port in the...

June 17, 2026

Markets

Can Hong Kong make a giant leap to commercial space insurance?

Some may feel a lump in their throats as they watch Hong Kong’s first astronaut, Lai Ka-ying, make history, but few see it as anything more than an inspirational story for our youth. In reality, space, which can feel lofty and far away to pragmatic Hongkongers, could hold the key to our city’s economic future. In my previous column, we discussed why Hong Kong represents China’s best chance to build an alternative global maritime insurance system, but also why that remains mission impossible for...

June 17, 2026

Markets

Buyers flock to SHKP project in New Territories as confidence grows in home market outlook

SHKP generated more than HK$1 billion after the sale of the 154 flats at Lime Spark last week Hundreds of prospective buyers gravitated to a Sun Hung Kai Properties’ (SHKP’s) project in the New Territories on Saturday, keen to view the 121 flats on offer in a fresh sign that Hong Kong’s home market is on a sustained upwards cycle despite risk caution. “Despite a 2 to 3 per cent price increase, the next round [of 121 units] still sold out. This shows strong buyer confidence in the market,” said Norry Lee, senior director at JLL. The buying euphoria surrounding the project came one week after its first batch of 154 units was sold out last Saturday. “We have seen a warm response from homebuyers,” said Tam Sik-cham, SHKP’s sales and marketing assistant general manager. “The developer is highly confident of the sales results today.” He added that one buyer planned to spend more than HK$30 million (US$3.8 million) to purchase four units, while another six investors looked at owning three flats each.

May 16, 2026

Markets

Stephen Miran, Trump’s economic guru, is leaving the Fed. What happens now?

Miran quit his job as a Trump economic adviser to join the US Federal Reserve board, where he became known as a vocal dove The move is also sparking speculation about what comes next for Miran – a former top economic adviser to US President Donald Trump – with market watchers debating whether he will return to the White House or re-enter the private sector. Miran submitted his resignation as a board member on Thursday, according to the Federal Reserve, making it “effective when or shortly before his successor on the board is sworn in”. Matteo Giovannini, a senior finance manager at the Industrial and Commercial Bank of China, noted the move was “largely expected” once Warsh’s nomination to lead the Fed moved forward. “In practical terms, his resignation clears the way for a smoother leadership transition at the Fed under Warsh,” he said. Xu Tianchen, senior economist at the Economist Intelligence Unit, also sees Miran’s exit as a procedural necessity to “give Warsh a window to establish his presence within the Fed”.

May 15, 2026