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  • Hong Kong Sees Record $2.2B Surge in Bulk Property Investments Amid Rising Rental Demand

    Hong Kong Sees Record $2.2B Surge in Bulk Property Investments Amid Rising Rental Demand

    In the wake of a record-breaking first half of the year, bulk homebuyers are anticipated to continue to be a significant influence in Hong Kong’s primary residential market throughout the second half of the year. The strong rental demand, particularly from mainland Chinese students and migrant workers, is bolstering this trend.

    Record Figures Demonstrate Investor Confidence

    From the beginning of the year to June, 654 buyers purchased two or more residences in the primary market. They bought a total of 1,794 flats with an estimated value of approximately HKD17.4 billion (US$2.2 billion). These numbers represent a significant increase from the previous year, effectively doubling and setting new records for buyer amounts, units sold, and the overall transaction value.

    Bulk buyers were responsible for about 14% of all primary home sales during this period. This means that approximately one in seven new flats was bought by purchasers acquiring a minimum of two units.

    A surge in purchases indicates a growing investor interest in rental properties. Hong Kong’s rental index reached a new high in June, making smaller apartments near educational institutions and transport hubs an attractive choice for investors.

    Increasing Appeal of Specific Developments

    The majority of bulk purchases were made in developments that were particularly well-suited to the rental market. Sun Hung Kai Properties’ Lime Spark in Tsuen Wan, which is a favored rental district with excellent transport links, had the most bulk transactions in June, with 29 deals covering 95 flats worth HKD669 million.

    Furthermore, Henderson Land Development’s Highwood in To Kwa Wan and One Victoria Cove in Hung Hom, both of which are near university campuses, recorded 16 and 13 bulk transactions, respectively. Together, these three developments accounted for approximately three-quarters of June’s bulk transactions.

    While most investors bought two units, 65 buyers purchased at least five homes and seven procured 10 or more. The most substantial single transaction in the first half of the year comprised an investor acquiring 16 flats in Highwood for over HKD111 million.

    In June, bulk-buying activity decreased as fewer projects were launched by developers. Nevertheless, bulk purchases are expected to pick up again in the third quarter as new projects are introduced and investor attention refocuses on the property market following global events such as the World Cup.

    Questions & Answers

    Why was there a surge in bulk home purchases in the first half of the year?
    The spike in purchases is primarily due to increased investor interest in rental properties, driven by robust demand from mainland Chinese students and migrant workers.

    What factors make certain properties more attractive to bulk buyers?
    Properties that are attractive to bulk buyers are typically smaller apartments near universities and transport hubs. Developments in popular rental districts with strong transport connections are especially appealing.

    What are the predictions for the third quarter of the year?
    Bulk purchases are expected to rise again in the third quarter as developers introduce new projects and investor attention shifts back to the property market. A boost in the stock market is also expected to support buying sentiment.

  • China’s New Renaissance: How AI and Digital Economy Could Transform Global Investments

    China’s New Renaissance: How AI and Digital Economy Could Transform Global Investments

    After enduring years of economic adjustments and investor uncertainty, China is on the cusp of entering a fresh chapter. This revival is anticipated to be powered by advancements in manufacturing, artificial intelligence (AI), and the digital economy, potentially presenting vast implications for global investors, according to the Bank of Singapore.

    Reassessing China’s Economic Prospects

    The Bank of Singapore suggests a reevaluation of China’s economic potential. In its report titled “2026 Supertrends: Cycles, Halos and Moonshots,” the private bank identifies China’s renaissance as one of five key trends expected to shape investment markets by 2030. The other trends include geopolitical chokepoints, a refreshed approach to portfolio development, the expansive influence of artificial intelligence, and the rapidly growing longevity economy. However, the resurgence of China’s economy is deemed particularly significant for Asian investors.

    The bank asserts that China is transitioning from an era of economic recalibration to a new phase of renaissance. The economic opportunities are projected to stem from high-value products and services as China intensifies the development of its digital economy. The bank also forecasts that the emerging strength in advanced manufacturing in North Asia, especially industries contributing to AI development, will be a crucial source of investment returns. A robust Chinese renminbi is also expected to be a favorable contributing factor.

    This hypothesis signals a significant shift in outlook, following several challenging years for Chinese assets characterized by a prolonged property downturn, dwindling domestic demand, and geopolitical tensions.

    The Transformative Role of AI in Investments

    The potential resurgence of China is closely linked to another significant investment theme identified by the Bank of Singapore: artificial intelligence. The bank anticipates that the investment sectors benefiting from AI expansion will extend far beyond a select group of technology stocks. Possibilities are expected to arise across asset classes, including equities and fixed income as well as public and private markets.

    This could be advantageous for North Asia, where advanced manufacturing, semiconductors, and the broader technology supply chain are gaining increasing importance in the global AI ecosystem.

    Geopolitics, however, remains a significant risk, expected to shape investment strategies in a world increasingly influenced by strategic chokepoints. Control over resources and infrastructure could be wielded for strategic or economic leverage, as exemplified by China’s position in rare earths and other critical materials. This could result in a more volatile global climate, contributing to higher inflation, elevated government deficits, and fluctuating long-term bond yields.

    The evolving global landscape could also significantly impact currencies. The Bank of Singapore predicts modest short-term strengthening for the US dollar but a more bearish outlook in the long term. Large fiscal and current account deficits, coupled with potential political pressure on the Federal Reserve, could trigger a multi-year downtrend for the greenback.

    Consequently, safe-haven assets such as gold, the Swiss franc, and the Singapore dollar may gain prominence as investors seek alternatives to traditional government bonds for portfolio hedges.

    For investors, the inference is clear: the forthcoming phase of Asian growth is expected to be drastically different from the past, characterized by less dependence on traditional globalization and more emphasis on technology, strategic supply chains, and the competition for critical resources.

    Questions & Answers

    What is the anticipated economic shift in China?
    The Bank of Singapore suggests that China is transitioning from a period of economic recalibration to a new phase of renaissance, powered by advancements in manufacturing, AI, and the digital economy.

    What role does artificial intelligence (AI) play in this shift?
    AI is considered a major catalyst for the expected economic resurgence in China, with opportunities expected across asset classes. It is also perceived as instrumental in advancing North Asia’s manufacturing and technology sectors.

    What implications could the changing global landscape have on currencies?
    The Bank of Singapore anticipates modest short-term strengthening for the US dollar but a bearish outlook in the long term, which could result in a multi-year downtrend for the greenback due to large fiscal and current account deficits, and potential political pressure on the Federal Reserve.

  • Golden Goose Leaps Forward: Chinese and Singaporean Investments Fuel Luxury Brands Global Expansion

    Golden Goose Leaps Forward: Chinese and Singaporean Investments Fuel Luxury Brands Global Expansion

    Italian luxury brand, Golden Goose, has recently gone through a significant change in ownership. A majority stake in the company is now held by Chinese private equity firm HSG, while Singapore’s investment firm, Temasek, has also joined as a minority shareholder. This move followed the necessary regulatory approvals, and while the financial specifics remain undisclosed, existing investor Permira has retained a minority stake.

    A New Chapter for Golden Goose

    The revamped ownership structure is poised to support the next phase of Golden Goose’s worldwide expansion, faithfully retaining the company’s focus on Italian craftsmanship and its direct-to-consumer retail model. Silvio Campara will maintain his position as CEO, managing the company in association with the existing management team. Effective immediately, former Gucci CEO, Marco Bizzarri has been appointed as the non-executive chairman of the company.

    Campara expressed his confidence in the new investors, stating that their vast experience in scaling international luxury brands and driving innovation will propel Golden Goose in achieving its global aspirations. He is anticipating benefiting from their expertise as they advance towards realizing their international ambitions and introducing Golden Goose to more “Dreamers” around the world.

    Campara added, “This investment is a testament to our unique model and the global appeal of our brand. It will aid us in unlocking Golden Goose’s full potential, establishing it as a leading Next Gen luxury brand.”

    Golden Goose’s Expansion over the Years

    Golden Goose has witnessed remarkable growth under the ownership of Permira, with its global retail presence now spanning 232 stores across Asia-Pacific, Europe, and the Americas. The brand has also boosted its direct-to-consumer business and invested in experiential retail concepts, including its signature in-store co-creation services, as it continues to expand its international presence.

    Questions & Answers

    What is the new ownership structure of Golden Goose?
    The luxury brand Golden Goose is now primarily owned by the Chinese private equity firm HSG, with Temasek, a Singaporean investment firm, and Permira as minority shareholders.

    Who will lead Golden Goose under the new ownership?
    Silvio Campara will continue to serve as CEO of Golden Goose, working alongside the existing management team. Marco Bizzarri, former Gucci CEO, has been appointed as the non-executive chairman.

    What are the future expansion plans of Golden Goose?
    Under the new ownership, Golden Goose plans to further expand its worldwide presence while maintaining its focus on Italian craftsmanship and its direct-to-consumer retail model. The company also plans to leverage the experience of its new investors to scale the brand and drive innovation.

  • Alibaba’s Revenue Surges, Thanks to Fast Delivery and AI Investments: Outpaces Quarterly Estimates

    Alibaba’s Revenue Surges, Thanks to Fast Delivery and AI Investments: Outpaces Quarterly Estimates

    In Tuesday’s quarterly report, Alibaba, the Chinese e-commerce behemoth, exceeded analysts’ revenue predictions. This success was primarily attributed to the company’s significant investments in one-hour delivery services, which attracted more users to its shopping applications. Additionally, the company’s cloud division demonstrated remarkable growth.

    Share Performance and Revenue

    Following the announcement, the company’s US-listed shares increased by 2% in initial trading. Alibaba reported a second-quarter revenue of 247.80 billion yuan (approximately US$35 billion). This figure surpassed the anticipated revenue of 242.65 billion yuan. However, the adjusted profit of 4.36 yuan per American Depository Share fell short of an estimated 5.49 yuan.

    Fierce Competition in the Quick Commerce Sector

    Alibaba’s performance comes amidst an expensive competition in China’s ‘instant retail’ or ‘quick commerce’ sector. Here, major corporations are investing billions in expedited delivery services to secure a larger market share. Simultaneously, Alibaba has been making significant investments in artificial intelligence (AI), positioning itself as a frontrunner in the industry within China.

    Investment in AI

    The company announced in February plans to allocate 380 billion yuan over three years to AI and cloud investments. However, CEO Eddie Wu hinted at potential additional investments to address supply chain challenges while meeting customer demand. Indicating the company’s aggressive stance on AI investment, Wu suggested that the planned investment may be insufficient given the scale of customer demand.

    Profit Impacts

    Despite the investments causing a 53% reduction in net profit to 20.61 billion yuan, this figure still surpassed analysts’ predictions. These investments, particularly in AI, are anticipated to establish long-term competitive advantages, notwithstanding the immediate pressure on profit margins.

    Instant Retail Sector

    In the instant retail sector, aggressive discounting and subsidies from Alibaba and its competitors have led to concerns over margins and substantial cash expenditure. However, with its diversified business model and significant resources, Alibaba is less vulnerable than its rivals. The company projects that the instant retail sector could add 1 trillion yuan in yearly gross merchandise value over the next three years. Notably, Alibaba’s instant retail business has significantly improved unit economics recently, with cost per order decreasing by half since summer.

    Singles’ Day Subsidies

    The Singles’ Day sales period, stretching from early October to November 11, witnessed considerable subsidies and discounting by retailers to stimulate demand. Sales across major platforms during this period escalated to 1.70 trillion yuan, an increase from 1.44 trillion yuan the previous year.

    Expansion into Consumer AI

    Alibaba has also recently intensified efforts to penetrate the consumer AI market, a sector where it has been comparably less active due to its greater emphasis on enterprise clients. Despite launching a free app, which gained 10 million downloads within its first week, it remains behind the market leader, ByteDance’s Doubao, which boasts 150 million users. Consequently, an ongoing price war in China’s domestic AI market, triggered by competitors focusing on affordable computing and app development, has forced Alibaba to reduce prices.

    Questions & Answers

    What led to Alibaba exceeding analysts’ revenue expectations?
    Alibaba’s investments in one-hour delivery services attracted more users to its shopping apps, leading to increased revenue.

    What challenges is Alibaba facing in the quick commerce sector?
    The sector is highly competitive, with corporations investing billions in expedited delivery services to secure a larger market share.

    How is Alibaba responding to competition in the consumer AI market?
    Alibaba has intensified efforts to penetrate the consumer AI market and launched a free app that gained 10 million downloads within its first week. It has also reduced its prices to remain competitive.

  • Singtel Celebrates 14% Profit Leap: A Triumph of Regional Growth and Strategic Investments

    Singtel Celebrates 14% Profit Leap: A Triumph of Regional Growth and Strategic Investments

    The Singtel Group has reported a 14% increase in underlying net profit, reaching SGD 1.35 billion in the first half of the year. This growth has been mainly driven by regional associates Airtel and AIS, as well as operating companies NCS and Optus.

    Profit Increase Despite Economic Challenges

    Neglecting the impact of foreign currency fluctuations and contributions from Intouch, which concluded after its merger with Gulf, the underlying net profit would have increased by 22%. The net profit rose to SGD 3.40 billion, largely as a result of a net exceptional gain of SGD 2.05 billion from the partial sale of a stake in Airtel in May and the Intouch-Gulf merger.

    Operating revenue declined by 1.2% to SGD 6.91 billion, which was affected by the strong Singapore dollar. However, in constant currency terms, the Group’s operating revenue, EBITDA, and operating company EBIT would have increased by 1.9%, 4.9%, and 14%, respectively.

    CEO Insights

    Yuen Kuan Moon, Singtel Group CEO, stated that the group’s H1 results reflect the positive momentum across their diversified portfolio of businesses across the region. They have continued to drive growth in connectivity, digital services, and digital infrastructure and also unlocked value from their asset recycling efforts as they executed their Singtel28 plan.

    Despite the challenging macroeconomic outlook, and uncertainty surrounding the Optus business, Yuen believes their business and geographical diversity is providing stability to the Group’s performance. He expects their growth engines to change the business’s complexion in the mid term as they continue to scale.

    Plan Execution and Active Capital Management

    Since launching the Singtel28 plan, the Group’s active capital management has generated SGD 5.6 billion in proceeds, including SGD 1.5 billion from the recent divestment of a 0.8% stake in Airtel. The Group has achieved more than half of its new SGD 9 billion mid-term asset recycling target, which will be used to fund growth opportunities and provide returns to shareholders.

    The Group’s balance sheet remains strong, with a cash balance of SGD 3.4 billion as of September 2025, helping reduce net debt to SGD 8.7 billion and improve gearing ratios.

    Regional Associates’ Contributions

    The profit contributions from regional associates post-tax increased by 12% to SGD 0.92 billion. Excluding Intouch and considering constant currency terms, these contributions would have risen by 25%.

    Airtel Group saw solid earnings growth in both India and Africa due to effective execution and higher mobile tariffs, while AIS reported stronger profits due to revenue growth and effective cost management. However, Telkomsel’s performance was impacted by weaker mobile performance, a capital gain from the sale and leaseback of indoor infrastructure in the previous period, and higher interest expenses. Globe’s earnings also declined due to weak consumer spending.

    Questions & Answers

    What is the overall financial status of Singtel Group?
    Singtel Group has reported a 14% increase in underlying net profit, reaching SGD 1.35 billion in the first half of the year.

    What were the main contributors to Singtel Group’s growth?
    The growth was mainly driven by regional associates Airtel and AIS, as well as operating companies NCS and Optus.

    What does the Group’s CEO, Yuen Kuan Moon, attribute the positive results to?
    Yuen attributes the positive results to the group’s diversified portfolio of businesses across the region and active capital management as part of the Singtel28 plan. The plan has generated SGD 5.6 billion in proceeds, contributing to the reduction of net debt and improvement of gearing ratios.

  • Korea Secures $9 Billion in Cloud and AI Investments from Global Tech Giants at APEC Summit

    Korea Secures $9 Billion in Cloud and AI Investments from Global Tech Giants at APEC Summit

    During the APEC Global Investment Partnership event, which was held in conjunction with the APEC CEO Summit in Gyeongju, an announcement was made that underscores the determination of Seoul to lure high-value investment into the areas of digital infrastructure and advanced manufacturing. This is part of Seoul’s drive to expedite its aspirations in the field of artificial intelligence (AI).

    Investments in South Korean Digital Infrastructure

    Matt Garman, the CEO of Amazon Web Services (AWS), disclosed a plan to invest $5 billion by 2031 in order to expand the company’s cloud data centers and enhance its AI competencies in South Korea. He pointed out that South Korea is swiftly becoming a hub of AI innovation in Asia, and the continuous investments by AWS reveal their faith in South Korea’s technological ecosystem. He also believes that these investments will bolster South Korea’s place in the global AI economy.

    President Lee Jae Myung of South Korea, who met with Garman during the event, expressed his approval of AWS’s investment, deeming it a crucial aspect of Seoul’s AI strategy. His endorsement comes on the heels of AWS’s announcement of their $4 billion AI data center project in Ulsan earlier this year. President Lee is confident that this collaboration with AWS will stimulate Korea’s AI ecosystem and solidify their mutual path to prosperity.

    Investments from Other Multinational Corporations

    Additionally, six other multinational companies, namely Renault, Amkor Technology, Corning, Air Liquide, Siemens Healthineers, and Umicore, also communicated their new investment commitments. Renault Korea is set to transform existing production lines for the manufacture of electric vehicles, designating Korea as one of its five global strategic hubs. Siemens Healthineers has plans to construct a new 9,917-square-meter facility in Pohang for the production of components for cardiovascular ultrasound systems. Amkor Technology is preparing to extend its semiconductor packaging operations, while Umicore has intentions to build a cathode materials plant to cater to Korea’s rapidly expanding battery supply chain.

    As per the Ministry of Trade, Industry, and Energy of Korea, approximately $660 million of the declared amount is to be immediately registered as foreign direct investment.

    Korea’s Leadership in AI Development

    President Lee, during his keynote speech at the APEC CEO Summit, expressed Korea’s intention to propose an AI Initiative at the upcoming APEC leaders’ meeting, advocating for inclusive and cooperative AI development in the Asia-Pacific region. He envisions a future where AI is accessible to all, hopeful that this vision will become the new standard for APEC. This places Korea in a leadership position in the Asia-Pacific region in terms of digital transformation and ethical AI governance.

    The APEC CEO Summit, organized by the Korea Chamber of Commerce and Industry (KCCI), saw a record turnout of 1,700 business and political leaders, the largest in the summit’s 30-year history. The summit boasted the attendance of top executives and heads of state, including U.S. President Donald Trump, NVIDIA CEO, Jensen Huang, and several Asia-Pacific leaders.

    The summit was represented by the chairmen of Korea’s biggest conglomerates, including Samsung, Hyundai, LG, SK Group, and POSCO, reinforcing the country’s pivotal role in shaping the region’s technological future. The summit’s sessions over the three days centered around AI, digital currencies, supply chain resilience, green transition, and economic cooperation.

    Questions & Answers

    What was the primary focus of the APEC Global Investment Partnership event?
    The event was centered around Seoul’s efforts to attract high-value investments in digital infrastructure and advanced manufacturing to accelerate its AI ambitions.

    What is AWS’s planned investment in South Korea?
    AWS announced a plan to invest $5 billion by 2031 to expand its cloud data centers and boost its AI capabilities in South Korea.

    How are other multinational corporations contributing to South Korea’s AI strategy?
    Six multinational corporations have committed to new investments in South Korea. These include Renault’s conversion of production lines to electric vehicle manufacturing, Siemens Healthineers’ construction of a new facility for cardiovascular ultrasound systems, and Amkor Technology’s expansion of semiconductor packaging operations.

  • Makara Capital Sets Ambitious Goal to Mobilize $7B for Strategic Investments in Vietnam

    Makara Capital Sets Ambitious Goal to Mobilize $7B for Strategic Investments in Vietnam

    In a significant meeting held in Hanoi on Wednesday, Ali Ijaz Ahmad, chairman and CEO of Makara Capital Partners, expressed strong interest in expanding the firm’s footprint in Vietnam. Joined by other company executives, Ahmad highlighted the group’s substantial presence in Singapore in areas such as fund and asset management, financial structuring, and advisory services.

    Vietnam: A Promising Investment Landscape

    Demonstrating due diligence, the leaders outlined their comprehensive analysis of the Vietnamese market, underscoring their confidence in the country’s strategic development trajectory and long-term growth ambitions. Their enthusiasm mirrors Vietnam’s reputation as a burgeoning hub for investment in Southeast Asia.

    Strategic Projects in the Pipeline

    Makara Capital Partners is currently championing an investment initiative to establish a biopharmaceutical industrial park in the northern province of Hung Yen. Moreover, the company is engaging with Vietnamese authorities to explore collaborations in energy, infrastructure, and banking restructuring, as well as contributing to the development of a global financial center in the country.

    Such ambitious ventures could potentially mobilize between US$5 and $7 billion in investments, showcasing the firm’s commitment to driving economic growth in Vietnam.

    A Call to Action

    Prime Minister Pham Minh Chinh encouraged Makara Capital Partners to expedite its investment decisions and scale up operations within Vietnam’s priority sectors. He emphasized the philosophy of “working together, benefiting together, winning together, and sharing joy and happiness.”

    Reiterating the Vietnamese government’s commitment to facilitating successful investments, Chinh assured that the country will protect the legitimate rights and interests of investors, grounded in principles such as regulatory transparency, market alignment, and international standards.

    Aligning Interests for Sustainable Development

    Chinh warmly welcomed Makara Capital’s ambitions in biopharmaceuticals and finance, aligning them with Vietnam’s goals for rapid, green, and sustainable development. He provided insights into the nation’s socio-economic strategies and highlighted ongoing efforts in institutional reform, infrastructure expansion, and human resource enhancement.

    Vietnam is embarking on a transformative journey, restructuring its administrative framework and implementing key resolutions aimed at fostering swift and sustainable growth. The nation has set its sights on achieving a GDP growth of at least 8% this year, with aspirations for double-digit growth in the years to follow, all while aiming to transform into a high-income developed country by 2045. A tall order? Perhaps. But in Vietnam, the potential often exceeds the challenge.

    Questions & Answers

    What investment projects is Makara Capital Partners pursuing in Vietnam?
    Makara Capital is focused on developing a biopharmaceutical industrial park in Hung Yen, while also exploring opportunities in energy, infrastructure, and banking restructuring.

    What is the expected investment range from Makara Capital in Vietnam?
    The initiatives being discussed could mobilize between US$5 and $7 billion in total investments.

    What are Vietnam’s economic growth targets for the coming years?
    Vietnam aims for a GDP growth of at least 8% this year, with a vision for double-digit expansion in subsequent years, striving to become a high-income developed nation by 2045.

  • UBS’s Benjamin Cavalli: Growing Interest Among SFOs in MidEast’s “Second Leg” Investment Opportunities

    UBS’s Benjamin Cavalli: Growing Interest Among SFOs in MidEast’s “Second Leg” Investment Opportunities

    The trend of diversifying booking centers among the ultra-wealthy is gaining momentum, with an increasing number of family offices eyeing the Middle East as a prime destination. According to Benjamin Cavalli, head of strategic clients at UBS Global Wealth Management, the region is shaping up to be an alluring option alongside traditional financial hubs.

    In a world marked by escalating geopolitical risks, evolving regulations, and abundant global investment opportunities, ultra-high net worth (UHNW) individuals are strategically planning their wealth management bases. “Our clients have become very, very global. There is certainly local demand for managing wealth and a strong interest coming out of Asia, but also certainly from Europe,” Cavalli shared during a media briefing unveiling the bank’s latest findings in the “Global Family Office Report 2025.”

    Regional Competitors Emerge

    Highlighting the hotspots in the Middle East, Cavalli pointed to Dubai and Abu Dhabi, where UBS has also announced plans to launch a new office. Not to be outshone, Saudi Arabia is evolving rapidly, boasting increasingly sophisticated financial setups designed to attract this elite clientele.

    <p“There is certainly a bit of healthy competition as well in the Middle East,” Cavalli noted, emphasizing how these emerging centers are vying for the attention of fortune managers.

    Delving into the motivations behind these choices, Cavalli referenced UBS’s “Billionaire Ambitions Report 2024,” which reveals that UHNW families prioritize four critical pillars when selecting a financial center: a robust rule of law, high-quality healthcare, excellent educational opportunities, and a favorable tax environment. It’s intriguing to think that these elite families might be as concerned about school zoning as any down-the-street parent.

    Questions & Answers

    What is driving the interest in the Middle East as a financial center for family offices?
    The rise in geopolitical risks, regulatory changes, and diverse global investment opportunities has prompted UHNW individuals to consider the Middle East alongside traditional hubs.

    Which Middle Eastern cities are becoming popular choices for ultra-high net worth individuals?
    Dubai and Abu Dhabi are topping the list, with new UBS offices planned, while Saudi Arabia is developing sophisticated financial setups.

    What factors do UHNW families consider when choosing a financial center?
    According to UBS, key considerations include a strong rule of law, proper healthcare, quality education, and a friendly tax environment.

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  • Hong Kong’s Property Slump Affects Celebrity and Tycoon Real Estate, Including Nicholas Tse and Ho Family

    Hong Kong’s Property Slump Affects Celebrity and Tycoon Real Estate, Including Nicholas Tse and Ho Family

    In March, Hong Kong actor Nicholas Tse secured a lease for a retail space in Central Hong Kong for HK$60,000 (US$7,721) per month—a remarkable 40% reduction from its original listed price of HK$100,000. This transaction comes after the unit languished vacant for over a year, underscoring the current challenges in the market.

    Prime Property Discounts

    In the Tsim Sha Tsui shopping district, a property owned by the family of Stanley Ho, the late “King of Gambling” with a towering net worth of $14.9 billion, has hit the market with an asking price of HK$88 million. “It is very rare to see such a prime development site in the heart of Tsim Sha Tsui for sale,” remarked Reeves Yan, head of capital markets at CBRE Hong Kong, the exclusive agent managing this sale.

    Just a few months earlier, legendary actor Chow Yun Fat made headlines when he slashed the price of his mansion in The Peak, Hong Kong’s most exclusive neighborhood, by HK$25 million, bringing it down to HK$195 million. This property, known as “Sunshine Garden,” is among Chow’s most cherished assets, once purchased for HK$128 million.

    Recently, a high-end duplex apartment that was previously owned by actress Vicki Zhao also struggled to attract bidders. The property went to auction at HK$49 million—a 32% markdown from its original price of HK$72 million—but failed to generate any interest.

    A Tumultuous Market

    Hong Kong’s real estate markets, historically favored by entertainment elites and tycoons, are feeling the weight of a downturn. Residential prices have tumbled nearly 30% since their peak in 2021, propelled by rising mortgage rates, decreased demand following an exodus of professionals, and a dismal economic outlook, according to Reuters.

    The city’s Rating and Valuation Department reported a 0.5% decline in private home prices in March, following a revised 0.6% drop in February, marking the fourth consecutive month of decline. The secondary market has also seen prices slip cumulatively by 1.7% in Q1 2023, pushing the price index to its lowest since July 2016.

    With the office and retail segments still struggling, transaction values in these sectors have plummeted for four straight years since 2021. According to Centaline Commercial, overall deals dipped by 7% to HK$64 billion in the past year, the lowest level since the SARS outbreak in 2003.

    Persistently weak retail sales remain a burden on rental prospects. In March, the city’s retail sales dropped for the 13th consecutive month, hitting HK$30.1 billion—a 3.5% decrease from the previous year. While the contraction was less severe than February’s 13% plunge, the decline continues.

    A Silver Lining?

    Despite the prolonged downturn, a few rays of optimism are breaking through, thanks to fresh investments from Southeast Asian firms and local educational institutions, which together accounted for approximately 22% of the HK$6.28 billion investment in Hong Kong properties during the first quarter, as reported by Colliers. This influx of capital is rejuvenating leasing activity.

    Thomas Chak, head of capital markets and investment services at Colliers Hong Kong, explained that investors are drawn to lower prices in the prime property sector. Following the introduction of the “Studying in Hong Kong” scheme last October, there is renewed interest in the market, further fueled by hopes for declining interest rates and a recovering stock market.

    With luxury homes once again catching the eye of affluent buyers—thanks to falling prices—the segment is witnessing an uptick in sales. Lucia Leung, director of research and consultancy for Greater China at Knight Frank, noted: “This highlights a persistent appetite for high-end properties, particularly as confidence in the market stabilizes.”

    Knight Frank anticipates a 3% increase in luxury home prices this year, suggesting that the current luxury bargains won’t stick around for long. Victoria Allan, founder and managing director of Habitat Property, added, “We will see some distressed vendors looking to exit quickly. But as this stock is sold, supply will tighten and values will firm.”

    Will it be a bumpy ride ahead for Hong Kong’s real estate? Only time will tell.

    Questions & Answers

    How far have Hong Kong property prices fallen?
    Prices have dropped nearly 30% since their peak in 2021, with private home values decreasing for four consecutive months as of March.

    What is impacting retail sales in Hong Kong?
    Retail sales have declined for 13 straight months, largely due to reduced consumer spending and shifts in demand as many professionals have left the city.

    Are there signs of recovery in the real estate market?
    Yes, recent investments from Southeast Asian firms and local educational institutions are revitalizing interest in commercial real estate, while luxury properties are seeing an uptick in sales due to lower prices and improving market conditions.

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  • Fonterra Commits $65 Million to Ditch Coal and Embrace Renewable Energy

    Fonterra Commits $65 Million to Ditch Coal and Embrace Renewable Energy

    Fonterra has taken a major step toward its decarbonisation goals with the commissioning of its first electrode boiler at its Edendale site in Southland, New Zealand. This move marks a significant shift away from coal usage in the dairy cooperative’s operations.

    NZ$70 Million Investment for Further Transition

    The company has pledged an additional NZ$70 million (approximately A$65 million) to install two more electrode boilers. This initiative is part of Fonterra’s broader strategy to transition to renewable energy across its operations.

    Ensuring Long-Term Operational Resilience

    Fonterra Chief Operating Officer Anna Palairet emphasised the importance of energy reliability, stating:

    “Investing in renewable energy solutions, such as electrode boilers, will help ensure we can continue to process milk efficiently now and in the future. This investment will help future-proof Edendale for years to come.”

    The new boilers will replace two coal-fired units and support the site’s expansion, including a new UHT (ultra-high temperature) processing plant currently under development.

    Significant Emissions Reductions

    The switch to electrode boilers is expected to cut around 72,800 tonnes of carbon emissions annually—comparable to removing more than 30,000 cars from New Zealand’s roads.

    Boost for the Local Economy

    Andrew Johns, Fonterra’s General Manager for Operations in the Lower South Island, highlighted the local impact:

    “The investment is also great news for the local economy. Where possible, we will be engaging with local contractors, and we expect more than 400 people from Southland and wider New Zealand to be part of the team on site delivering this investment.”

    Government Partnership Supports Project

    The project is being co-funded in partnership with the Energy Efficiency and Conservation Authority (EECA), a government body focused on promoting energy efficiency and reducing carbon emissions.

    Timeline for Completion

    Construction of the new boilers is expected to begin this year, with the upgraded energy systems anticipated to be operational by August 2027.

    Questions & Answers

    1. What is the main purpose of Fonterra’s investment in electrode boilers? To replace coal-fired boilers with renewable energy solutions, ensuring sustainable milk processing and reducing carbon emissions.

    2. How much carbon emission reduction is expected from this transition? Approximately 72,800 tonnes of carbon emissions will be reduced annually, equivalent to taking over 30,000 cars off the road.

    3. When will the new boilers be fully operational? The new electrode boilers are scheduled to be operational by August 2027.

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  • Apple plans $1B manufacturing plant investment in Indonesia

    Apple plans $1B manufacturing plant investment in Indonesia

    Tech giant Apple plans to invest $1 billion in a manufacturing plant in Indonesia that produces components for smartphones and other products, Indonesia’s investment minister said on Thursday.

    In October, Indonesia banned sales of the iPhone 16 because it said Apple had not adhered to rules that require phones sold domestically to have at least 40% locally made parts. And this week, the government said it would increase the local content requirement.

    Investment minister Rosan Roeslani told reporters that details of the planned investment were still being ironed out, but when asked confirmed it was the expected $1 billion investment he had flagged earlier this week.

    “We will discuss with them some more … our hope is for everything to be announced in the next week after receiving a written commitment from them,” he said.

    Last week, the government had rejected a $100 million investment proposal from Apple to build an accessory and component plant as not enough to reverse the iPhone 16 ban.

    Apple did not immediately respond to a request for comment.

    Apple currently has no manufacturing facilities in Indonesia, a country of about 280 million people, but since 2018 it has set up application developer academies.

    Indonesia considers that strategy an attempt to meet local content requirements for the sale of older iPhone models.

    Companies typically increase the local composition through local partnerships or by sourcing parts domestically.

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  • Indonesia says Apple’s $100M investment proposal inadequate

    Indonesia says Apple’s $100M investment proposal inadequate

    Indonesia said a $100 million investment proposal from Apple to build an accessory and component plant was not enough for the country to allow the tech giant to sell its latest iPhone model, its industry ministry said on Monday.

    Indonesia in November banned sales of Apple’s iPhone 16 after it failed to meet requirements that smartphones sold domestically should comprise at least 40% locally-made parts.

    Indonesia has also banned the sale of Alphabet’s Google Pixel phones over a similar lack of use of local components.

    Indonesian authorities last week said Apple had put forward the investment proposal to lift the sales ban.

    Apple did not immediately respond to a request for comment.

    “We have done an assessment and this (proposal) has not met principles of fairness,” Industry Minister Agus Gumiwang Kartasasmita told a press conference, comparing the proposal to Apple’s bigger investments in neighboring Vietnam and Thailand.

    Apple has no manufacturing facilities in Indonesia, but has since 2018 set up application-developer academies, which Jakarta considers a way for the company to meet local content requirement for the sale of older iPhone models.

    Companies usually increase the use of domestic components to meet such rules through partnerships with local suppliers or by sourcing parts domestically.

    Agus said Apple had an outstanding investment commitment of $10 million it should have carried out before 2023. He also wanted Apple to commit to new investment until 2026.

    The ministry would invite Apple to visit Indonesia to negotiate further, Agus said.

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  • Booming foreign investment to push Vietnam up value chain

    Booming foreign investment to push Vietnam up value chain

    “Vietnam has repeatedly proven its ability to climb up the value chain over the years, to the point where the country has grown into a key manufacturing hub for tech products within the electronics space,” CEO of HSBC Vietnam, Tim Evans said.

    Apple is reportedly in talks to make watches and the MacBook in Vietnam for the first time, with its suppliers having started test production of the former in the north.

    Foxconn, a key Apple supplier, this month leased 50.5 hectares of land in Bac Giang Province and plans to build a $300-million factory there and employ 30,000 workers.

    South Korean conglomerate Lotte is seeking to expand in Vietnam, arguably its third most important market behind its home nation and Japan, and completely pull out of China.

    Over the last decade Samsung, Intel and many other multinationals have made significant investments in Vietnam and consider it an important base for their production.

    The country’s ectronics exports climbed to a record US$108 billion in 2021, equivalent to 32% of total exports, against less than $1 billion in 2000.

    “Vietnam has effectively turned itself into a rising star in global supply chains, gaining substantial global market share in sectors ranging from textiles and footwear to furniture and consumer electronics,” Evans said.

    This has come about because of its strategic location, competitive labor and production costs, and political, currency and social stability, have helped it become an attractive investment destination, he added.

    Vietnam attracted $31.15 billion worth of foreign direct investment last year, up 9.2% from 2020 despite Covid-19.

    Multinationals are moving part of their production from China to Vietnam since the risk of the latter facing punitive tariffs in future is low, according to analysts.

    The foreign direct investment flow from China to Vietnam reached $1.88 billion in 2020, up 245% from 2017, according to data from the United Nations Conference on Trade and Development, Thai lender Kasikorn – Kbank said.

    Michael Kokalari, chief economist of investment fund VinaCapital, said Vietnam still has a large number of workers who can move from the farm to the factory since over 40% of its workforce is still employed in agriculture.

    “I don’t see any other country in the world as a serious competitor to Vietnam in the assembly of high-tech products, which explains why Vietnam’s FDI inflows have remained so consistent.”

    But much remains to be done for Vietnam to take advantage of the increasing foreign investment.

    World Bank data shows its non-tariff trade costs are higher than for its ASEAN peers, with transport congestion costing as much as 21% of GDP in 2016, much higher than the global average of 12%.

    “Upgrading and modernising existing infrastructure will empower Vietnam to reduce the barriers to trade and strengthen its ability to attract additional FDI,” Evans said.

    Improving labor skills is another necessity as the demand for highly skilled workers is rising given the high level of technology and automation at foreign-invested manufacturers, he added.

    Kokalari said factors such as wages, workforce quality and infrastructure are more important than government policies in attracting FDI.

    More FDI means more opportunities for local firms to develop their capabilities to produce inputs the FDI factories require, he pointed out.

    “FDI brings not only money into a country, but also creates spillover benefits that help foster that country’s industrial sector.”

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  • Vietnamese co-living startup raises $1.7 mln from Singapore fund

    Vietnamese co-living startup raises $1.7 mln from Singapore fund

    M Village, an accommodation startup in co-living spaces, has received funding of US$1.7 million led by Singaporean venture fund Simple Tech Investment.

    The money will be used for expanding the number of rooms the startup has in Ho Chi Minh City from the current 300 to 1,000 this year.

    Its founder, Nguyen Hai Ninh, is also the founder and ex-CEO of The Coffee House, a HCMC-based coffee chain that has over 140 stores across Vietnam.

    He said: “The fund-raising process started late last year and it has worked out pretty well. Simple Tech Investment agreed on investing after a month of getting to know each other”.

    Simple Tech has previously invested in digital transformation by some Vietnamese businesses, including online advertiser 24h, human resources service SieuViet Group, and leading barbershop chain 30Shine.

    M Village has also received funding from Singapore’s Vulpes Venture, Japan’s Genesia Ventures, and some angel investors.

    Founded in October 2020, M Village operates five locations in Ho Chi Minh City with their occupancy rates exceeding 90 percent.

  • Young Vietnamese look to cryptocurrencies to get rich quick

    Young Vietnamese look to cryptocurrencies to get rich quick

    Cryptocurrencies are becoming a new investment favorite in the country, but many are learning what goes up rapidly could come down at the same speed. This year Minh Quan of Hanoi started to study the cryptocurrency market for the first time after a friend urged him to invest in it. The real estate broker started with a $1,000 investment in a startup he barely knew.

    “I invested because the founders have good physiognomy,” he says.

    The startup picked up and the founders were able to secure funding from foreign funds, and Quan’s investment appreciated five-fold within a month.

    Young Vietnamese like Quan are becoming increasingly interested in cryptocurrencies, hoping to get rich quick despite a lack of legal support for them and high risk.

    Vietnam is among the top 15 countries in the world by number of cryptocurrency investors, with most being under 35 years old, Lynn Hoang, Vietnam country director for trading platform Binance, said.

    Though the government does not recognize Bitcoin and other cryptocurrencies, it still led globally in cryptocurrency adoption with 41 percent of respondents claiming to have bought Bitcoin and others, according to a survey in August by U.S. financial consultancy Finder.

    Minh Anh, who is in his 20s, has found that while predicting the market is nearly impossible, a thoughtful and safe investment strategy could help him navigate the cryptocurrency world.

    He only invests a small amount in it and only in cryptocurrencies managed by experienced people, he says.

    “I only invest 25 percent of my total assets into crypto. After placing an order I turn off the app to not be distracted by the volatility”.

    This year he made profits of hundreds of millions of dong (VND100 million = $4,380).

    But with great profit potential come great risks.

    With bank deposit interest rates sharply down, Hanh, a bank teller, withdrew money from stocks to invest in cryptocurrency futures, which allow investors to predict the market future and bet on it.

    However, lacking sufficient knowledge of the market, she lost all her money and decided to stop investing in futures altogether.

    Le Trong and his wife invested all their savings into cryptocurrencies in 2017 when the market was booming. They even borrowed to invest.

    But then the market fell, hurling them into a crisis as debt collectors began to call constantly. Trong’s wife went into a depression, and it took the couple several years to repay their debts.

    “I’ll never get involved with crypto again,” he says.

    Lynn Hoang of Binance says the two basic rules for cryptocurrency investment are knowing how to protect your investment and not using leverage.

    New investors should opt for cryptos with a large market cap, she says, likening it to buying blue chips in the stock market.

    Whether one’s strategy is to invest for the long term or short term, it is important not to be greedy, she warns.

    Thuong, an investor in Hanoi, has learned that lesson.

    When Bitcoin dropped to around $54,000 on December 4, she poured most of her savings into it, thinking she had found the bottom.

    But the fall continued down to $43,000, and, without cash, she has been unable to buy more to average the price.

    “Controlling your greed sounds easy, but it is not,” she says.

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