Hong Kong’s IPO Market Sees Significant Rebound in 2024

[para. 1] Recent reports have highlighted a fraudulent claim regarding the establishment of a BRICS Pay cross-border payment system. This alleged system was said to be supported by BRICS nations and reportedly began a pilot project in China during the October BRICS Summit in Kazan, Russia. The misinformation included a fake website, which stated that BRICS Pay would rival the U.S. dollar and that extensive pilot operations were underway in China. However, Chinese government officials have refuted these claims, stating no knowledge or involvement with such a payment system.

[para. 2] The Chinese bond market has shown signs of strengthening since November, with yields on 10-year government bonds falling to a historical low of 2% as of Monday. This trend is attributed to expectations of sustained loose monetary policy and substantial demand for bonds due to liquidity surpluses. Analysts, however, caution that the potential for further declines in bond yields might be restricted, as the market has seemingly accounted for the benefits of a relaxed monetary policy. Additionally, concerns remain about how increased bond supplies from local governments could affect the market.

[para. 3] Denials have been issued by HSBC China regarding rumors of their exit from the credit card market in mainland China. Despite these rumors, the bank has streamlined this business segment, now offering only one credit card product for premium clients. This strategic shift reflects the challenging circumstances for foreign banks operating in China. HSBC has also expanded its wealth and personal banking operations, notably through the acquisition of Citigroup Inc.'s local retail wealth management operations. Currently, only clients with substantial account balances can apply for HSBC China’s credit card, with further possible increases in application thresholds rumored.

[para. 4] Futu Holdings Ltd., an online brokerage listed on Nasdaq, experienced protests from employees in Shenzhen and Hong Kong due to the abrupt layoff of nearly 200 workers. These layoffs, focused on the product and R&D departments, are primarily centered in Shenzhen and have not impacted the firm's international operations significantly. The company's restructuring and focus on expanding its overseas operations follow China's top securities watchdog criticisms in 2022 concerning illegal practices. The sudden nature of the layoffs was reportedly due to concerns over network security, as many of the laid-off employees were programmers, despite the company's stable financial status.

[para. 5] Guangzhou Automobile Group Co. Ltd. (GAC) and Huawei Technologies Co. Ltd. have collaborated to create a high-end smart new-energy vehicle brand. Building on their successful partnership with the Aion electric vehicle line, they aim to work closely on product development and marketing. This venture highlights Huawei’s growing influence in the automotive industry, supported by its intelligent driving technologies and partnerships under the Harmony Intelligence Mobility Alliance. Despite a previous unsuccessful attempt in developing a smart car series, this new collaboration signifies focused efforts on innovation and market expansion.

[para. 6] TCL Technology Group Corp., a prominent Chinese tech enterprise, is anticipated to acquire the remaining percentage of an LG Display Co. Ltd. subsidiary in China, achieving full control of its LCD production line in Guangzhou. This development follows TCL's acquisition of an 80% stake in the company and reflects China's significant growth in the global LCD panel industry over the past decade. With Chinese manufacturers leading in cost and efficiency, South Korean companies like Samsung and LG Display are transitioning to OLED technology. The LCD panel industry anticipates a rebound following challenges during the Covid pandemic.

[para. 7] Tensions have escalated between China and Lithuania following the expulsion of Chinese diplomatic personnel by Lithuania, which declared the officials "persona non grata." China's foreign ministry criticized the move as provocative and harmful to bilateral relations, indicating possible countermeasures against Lithuania. Relations have been strained since Lithuania permitted the opening of a Taiwanese representative office using the island's name in 2021, a move that deviated from the convention of using the name Taipei for such offices.