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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

Markets

Chinese EV makers hunt for idled plants in Europe as they expand global influence

Chinese electric vehicle (EV) makers, from BYD to Leapmotor, are voraciously seeking out manufacturing assets in Europe as the global energy crisis creates surging demand for battery-powered vehicles. Their pursuit of idled European assembly facilities owned by big names like Stellantis and Volkswagen is disrupting the pecking order in the global automotive industry, as the Chinese carmakers’ design and manufacturing heft sees them morph into international players. “China’s EV assemblers are...

May 15, 2026

Markets

Chinese margin traders raise wagers to record high as tech stock rally in full swing

Outstanding value of bets passes US$420 billion amid seven-day record run, as investors drive indices to new highs China’s stock investors boosted their leveraged bets to an all-time high, helping fuel a record-setting run on technology stocks amid easing geopolitical tensions and earnings resilience. The outstanding value of margin trading on the mainland’s exchanges reached 2.86 trillion yuan (US$420.8 billion) on Thursday, rising to a record for a seventh straight day, according to the data by China Securities Finance. Leveraged traders poured the borrowed funds mainly into electronics, semiconductor and telecoms stocks, according to China Galaxy Securities and China Merchants Securities. Leveraged trading is viewed as a barometer of sentiment on China’s equity markets, with more such trading often correlating with more momentum on stocks. And indeed, the record level of leveraging this week coincided with a blistering run on technology stocks, in which both the Star Market 50 index and the ChiNext 50 gauge smashed records on optimism that the artificial intelligence investment boom would hold up.

May 15, 2026

Markets

China’s hotel sector shines, poised to outperform through 2026 on strong travel demand

International hotel chains ride China’s travel rebound, posting gains as domestic demand and inbound flows strengthen As US President Donald Trump makes a state visit to Beijing this week, international arrivals to China also jumped in the first quarter, fuelled by the country’s expanded visa-free entry policies for more countries. Four international hotel groups – Hilton Worldwide Holdings, InterContinental Hotels Group (IHG), Marriott International, and Hyatt Hotels – reported improved revenue per available room (RevPAR) performance on both quarterly and yearly bases, according to a research note by Deutsche Bank on Wednesday. RevPAR, a key industry metric, tracks a hotel’s ability to generate revenue from its entire room inventory. Hyatt posted a 12.4 per cent year-on-year RevPAR rise, while Marriott International and IHG both climbed 5.7 per cent, and Hilton added 1.3 per cent. Deutsche Bank attributed the growth to higher occupancy and average daily rates. The strong growth of international hotel chains in the first quarter came as China’s overall RevPAR outpaced the global average for the first time on record, Deutsche Bank said.

May 15, 2026

Markets

Chow Tai Fook turns from tenant to owner with US$51 million Hong Kong school property deal

Cheng family entities acquire DSC International School site, with the purchase a bet on demand for international schools in city: analysts The deal – nearly doubling the property’s valuation from an internal transfer in late 2023 at HK$213 million – marks a change from leasing to owner-occupation as the campus is home to DSC International School, which is operated by CTF Education Group, an education arm linked to Chow Tai Fook interests. The premises at 5-7 Tai Fung Avenue comprise the ground floor to the fourth floor of Kam Shan Mansion on Kao Shan Terrace. The property covers about 146,000 sq ft with about 80 classrooms, sports grounds and other school facilities. “The biggest incentive for schools to buy instead of rent is stability,” said Oscar Chan, head of capital markets at JLL in Hong Kong. “If a lease expires and the school has to relocate, it is disruptive for students and parents.” The acquisition comes as demand for international school places and student accommodation gains momentum amid government efforts to attract skilled migrants and overseas students through various talent admission schemes.

May 14, 2026