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Mr Chan attended a breakfast reception hosted by virtual asset enterprise Animoca Brands, headquartered in Hong Kong, yesterday (January 20). Speaking at the meeting, Mr Chan said that Hong Kong adopts a proactive yet prudent approach to the development of digital assets guided by the principle of “same activity, same risk, same regulation” to promote responsible and sustainable market development. Since 2023, Hong Kong has issued licences to 11 virtual asset trading platforms, and a licensing regime for stablecoins is expected to be launched later this year. The Financial Secretary also noted the HKSAR Government’s leadership role in promoting tokenisation, including the issuance of three batches of tokenised green bonds amounting to around US$2.1 billion.

Mr Chan also engaged with a number of officials from different economies and regional organisations attending the WEF Annual Meeting, including Deputy Prime Minister and the Minister of Finance of Thailand, Mr Ekniti Nitithanprapas; the Secretary-General of the Cooperation Council for the Arab States of the Gulf, Mr Jasem Mohamed Albudaiwi; the Minister of Investment and Foreign Trade of Egypt, Mr Hassan El Khatib; and the State Secretary for International Finance at the Federal Department of Finance of Switzerland, Ms Daniela Stoffel. They exchanged views on the global political and economic landscape and issues of mutual concern, and explored opportunities to strengthen collaboration in areas such as trade, finance, industry development and digital transformation.

During a meeting with the Director-General of the World Trade Organization (WTO), Dr Ngozi Okonjo-Iweala, Mr Chan reiterated that Hong Kong, China firmly supports free trade and multilateralism, and expressed support for the WTO’s efforts to pursue reforms in response to current global challenges, with a view to enhancing its agility in addressing emerging issues in international trade.

On arriving Davos (January 19), Mr Chan began his visit programme by meeting with the Minister of Economy of the Sultanate of Oman, H.E. Dr Said Mohammed Al-Saqri. During the meeting, the two sides discussed ways to deepen mutually beneficial cooperation in areas such as finance, trade, green transformation and industrial development.

Mr Chan said that Hong Kong’s advantages as a “super connector” could support Oman’s transitioning from an oil-driven growth model towards a more diversified economic structure. He said that Hong Kong could facilitate Chinese Mainland and Hong Kong enterprises to invest in Oman to support its infrastructure and industrial development. At the same time, Hong Kong’s status as an international financial centre in Asia could provide Omani enterprises with an ideal platform for fundraising and financing, as well as offshore Renminbi investment and risk management products.

Mr Chan will continue his programme in Davos, including participating at the 2026 Davos-Caixin CEO Luncheon and the “How to Finance Decarbonization?” session of the WEF Annual Meeting, before returning to Hong Kong on January 24 morning.

Hashtag: #hongkong #brandhongkong #WEF #internationalhub #trade #finance

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By Nitya Chakraborty For the two main contenders in the coming assembly elections in West Bengal in March/ April 2026, every week is important in the present electoral battle as fresh developments take place needing for a relook at the poll strategy. The ruling Trinamool Congress led by the Chief Minister Mamata Banerjee and the […]

The article Supreme Court Decision On Mamata’s Action During ED Raid Will Impact Bengal Polls appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

First Shell Recharge Electric School Bus Charging Station installed in CUHK

As one of the leading global energy companies, Shell continues to focus on its strategy to deliver more value with less emissions while working to become a net-zero emissions business by 2050, contributing to global decarbonisation. This year, Shell installed CUHK’s first Shell Recharge electric school bus charging station, featuring two fast chargers with a power output of 120 kW, ensuring rapid and efficient energy replenishment for CUHK’s electric school buses. At the same time, Shell consistently upholds high safety standards, with stringent controls in the design, installation, and operation of the charging station to ensure a safe and reliable electric vehicle charging experience.

Since 2018, Shell has supported CUHK’s sustainability initiatives by supplying Shell FuelSave Diesel B5 for the university’s fleet, helping reduce emissions and enhancing operational efficiency. The collaboration has expanded with the introduction of fast-charging facilities further modernises CUHK’s transportation system and accelerates the adoption of innovative low-carbon technologies. Looking ahead, Shell will continue to work with CUHK to lead the development of advanced mobility solutions and demonstrate leadership in campus sustainability.

Mr. Yew Chong Tan, General Manager of Shell Commercial Fuels East, commented, “At Shell, we are committed to working with customers and partners to provide holistic energy solutions that power progress together. The installation of this electric school bus charging station at The Chinese University of Hong Kong exemplifies our dedication to such collaboration as we navigate the energy transition.”

First Hybrid School Bus to Begin Operates at CUHK

The Hong Kong Productivity Council (HKPC) has provided CUHK with the first hybrid school bus ever deployed on a Hong Kong campus, which helps reduce diesel consumption and lower exhaust emissions compared to regular diesel coaches. When utilizing fast charging directly, it can reach an 80% battery charge in as little as 25 minutes.

Mr. Yonghai Du, Chief Innovation Officer of HKPC and General Manager, Centre of Advanced Power and Autonomous Systems (APAS), added, “This 12-meter plug-in hybrid bus is the first green transport project designed, developed, and assembled in Hong Kong by APAS, funded by the Innovation and Technology Fund and supported by our industry partners. This collaboration exemplifies the shared commitment of academia and industry to social responsibility. HKPC will continue to pioneer diverse innovative solutions, foster collaboration among ‘Government, industry, academia, research, investment, and applications’, expand the application demonstration of new technologies, products, and scenarios, and drive the transition towards green transportation.”

CUHK Advances Low-Carbon Transportation

These two major initiatives not only highlight CUHK’s dedication to sustainable development but also set a new standard for environmentally conscious transformation in transportation across Hong Kong.

Mr. Simon Lee, Director of Security and Transport at The Chinese University of Hong Kong, stated, “CUHK is committed to promoting sustainable development and embedding environmental protection principles within daily campus operations. By installing the EV charging station and introducing the hybrid campus bus, we aim to offer convenient transportation for staff and students while reducing carbon emissions and achieving low-carbon mobility. I would like to express my heartfelt gratitude to Shell for its strong support of the charging station project and to the Hong Kong Productivity Council for its professional assistance in introducing the hybrid campus bus, enabling us to jointly drive campus transportation toward a new green milestone.”

Hashtag: #Shell #CUHK #ElectricBusChargingStation

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By Nitya Chakraborty The annual summit of World Economic Forum began in the Alpine hills of Davos in Switzerland on January 19 with the European leaders and the businessmen rattled over the confrontationist approach taken by the U.S. President Donald Trump on Greenland annexation. After imposing 10 per cent tariff on the EU countries taking […]

The article Davos 2026 Delegates Are Panicky As Trump Is Set To Explode His Policy Bomb On January 21 appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

Malaysia’s United Malays National Organization, long the central pillar of the country’s political establishment, has begun working with erstwhile rivals from the Malay-Muslim opposition, signalling a recalibration that underscores how far the nation’s politics has shifted since the party’s electoral dominance fractured.

The cooperation, confirmed through parallel statements and joint appearances by party leaders, reflects UMNO’s attempt to consolidate Malay political influence at a time when its authority has been diluted by years of electoral setbacks, internal splits and the rise of competing blocs. While the party remains a key component of the ruling coalition led by Prime Minister Anwar Ibrahim, its outreach to former adversaries has fuelled debate about whether Malaysia is entering a new phase of pragmatic alliances driven less by ideology and more by survival.

UMNO governed Malaysia almost uninterrupted for more than six decades after independence in 1957, anchoring the Barisan Nasional coalition and shaping state institutions. That grip was broken in 2018 when voters punished the party over corruption scandals and governance concerns, leading to a series of unstable administrations. Since then, UMNO has struggled to define its role in a crowded political field that includes Anwar’s reformist bloc and the Malay-Muslim opposition alliance led by Parti Islam Se-Malaysia and Parti Pribumi Bersatu Malaysia.

The current cooperation has emerged against that backdrop. Senior figures from UMNO have acknowledged coordination with opposition leaders on issues framed as safeguarding Malay-Muslim interests, including economic equity policies and the position of Islam in public life. Though party officials have stopped short of describing the engagement as a formal pact, they have not ruled out deeper collaboration if it serves what they describe as national stability and communal interests.

This posture has drawn mixed reactions within UMNO itself. Reform-minded members argue that aligning, even tactically, with parties that have attacked UMNO in past campaigns risks alienating centrist voters and undermining the party’s commitment to multiracial governance within the current administration. Others counter that the political landscape no longer allows rigid red lines, pointing to successive elections that showed Malay votes splintering among multiple parties.

Political analysts say the outreach reflects both opportunity and vulnerability. UMNO’s share of parliamentary seats has shrunk sharply compared with its peak years, reducing its leverage inside the ruling coalition. By engaging with rivals who command strong grassroots support in rural and conservative constituencies, the party may be seeking to reassert relevance and prevent further erosion of its base.

At the same time, the move complicates Prime Minister Anwar’s delicate balancing act. His coalition spans ideologically diverse partners, from UMNO’s traditionalists to reform-oriented parties and regional allies from East Malaysia. Any perception that UMNO is hedging its bets with the opposition could strain internal trust, even as Anwar has publicly emphasised unity and policy-driven governance.

The opposition, for its part, has responded cautiously. Leaders have framed the cooperation as issue-based rather than strategic, mindful that their core supporters view UMNO as emblematic of past excesses. Yet the willingness to engage suggests an acknowledgment that Malaysia’s fragmented politics makes absolute isolation costly.

Electoral arithmetic also looms large. Several state and parliamentary contests are approaching, and past results have shown that three-cornered fights often benefit Anwar’s coalition or regional parties, leaving Malay-based rivals divided. Limited coordination could alter outcomes in closely contested seats, though it also risks backlash from voters wary of perceived opportunism.

Beyond elections, the discussions point to broader questions about Malaysia’s political trajectory. The country’s multiracial framework has historically rested on bargaining among communal parties, with UMNO as the dominant broker. Its weakened position has opened space for ideological competition and policy debate, but also for sharper identity politics. Whether UMNO’s outreach tempers or intensifies those dynamics remains uncertain.

Business groups and civil society organisations have reacted with caution, urging political leaders to prioritise economic reform and institutional stability over tactical manoeuvring. Malaysia’s economy faces pressures from global volatility, fiscal constraints and the need to attract investment, issues that many argue require coherent policymaking rather than shifting alliances.

India has overtaken most markets to become the world’s second-largest 5G network by user base, crossing an estimated 400 million subscribers as operators expand coverage and devices become more affordable. The scale of adoption places the country behind only China, underscoring the pace at which fifth-generation services have spread across cities, towns and large rural corridors.

Official tallies compiled from industry disclosures and regulatory filings show nationwide 5G availability across all states and union territories, with more than 450,000 base stations activated since commercial launch in October 2022. Data from the Telecom Regulatory Authority of India indicates that fifth-generation users now account for a substantial share of total mobile broadband connections, a shift that has occurred faster than earlier transitions from 2G to 3G and 4G.

India’s 5G surge reshapes global rankings as operators leveraged aggressive rollouts and introductory pricing to seed usage. The government’s early spectrum auctions, coupled with simplified right-of-way rules for fibre and towers, reduced deployment friction. Policymakers also pushed indigenous manufacturing through production-linked incentives, lowering equipment costs and shortening supply chains.

Market leaders have driven much of the momentum. Reliance Jio built a standalone 5G network using mid-band spectrum and dense fibre backhaul, prioritising urban clusters and industrial zones before pushing into smaller towns. Bharti Airtel opted for a non-standalone architecture initially, upgrading existing 4G sites to accelerate time-to-market while expanding capacity. Vodafone Idea has begun selective launches following capital infusions, focusing on circles with higher data demand.

Subscriber growth has been supported by falling handset prices and a rapid refresh cycle. Entry-level 5G smartphones from domestic and global brands now sit near mass-market price points, while older devices have been phased out as networks refarm spectrum. Analysts note that average data consumption per user has climbed as video streaming, cloud gaming and real-time navigation benefit from lower latency and higher throughput.

Enterprise use cases are also gaining ground. Private 5G deployments are being tested in ports, manufacturing plants and campuses to support automation, predictive maintenance and machine vision. The Department of Telecommunications has approved pilot licences for captive networks, enabling firms to experiment without relying solely on public networks. Healthcare applications such as remote diagnostics and education tools like immersive classrooms are being trialled in partnership with state governments.

The speed of expansion reflects a competitive pricing environment. Unlimited 5G plans bundled with 4G subscriptions reduced barriers to trial, while promotional offers encouraged device upgrades. Industry executives argue that scale efficiencies and declining network costs will support sustainable pricing even as data traffic rises.

Challenges persist. Monetisation remains uneven as consumers expect higher speeds at similar prices, pressuring average revenue per user. Network densification in dense urban areas requires continued capital expenditure, and power availability in remote regions complicates operations. Cybersecurity and data privacy frameworks must keep pace with new applications that rely on ultra-reliable connectivity.

Spectrum policy will shape the next phase. Operators are seeking clarity on millimetre-wave allocations to unlock ultra-high-capacity hotspots for campuses and stadiums. Backhaul capacity, particularly fibreisation of towers, is another bottleneck that policymakers are addressing through coordinated infrastructure planning.

Globally, India’s ascent alters competitive dynamics. Vendors see the market as a proving ground for large-scale deployments, while application developers view it as a launchpad for services that require millions of concurrent users. The country’s experience is being studied by emerging economies looking to leapfrog directly to advanced mobile broadband.

A landmark judicial ruling on the taxation of foreign investments routed through Mauritius has sent ripples across global financial markets, unsettling investors who have long relied on the island nation as a preferred gateway into India. The decision, delivered by the Supreme Court of India, upholds the government’s right to tax certain capital gains arising from indirect transfers and treaty-based structures, reinforcing a tougher stance on what authorities describe as aggressive tax planning.

India’s decisive stand on Mauritius-linked investments has revived debate over the balance between sovereign tax powers and investor certainty. Government data underline the scale of what is at stake. Over the 23 years leading up to 2023, cumulative foreign direct investment routed from Mauritius amounted to about $171 billion, making it the single largest source of inflows. For decades, the India–Mauritius Double Taxation Avoidance Agreement enabled investors to claim capital gains tax exemptions, helping fuel equity investment, private equity deals and strategic acquisitions.

The court’s ruling addresses disputes that intensified after New Delhi amended tax laws and renegotiated treaties to curb what it saw as treaty abuse. While the revised tax treaty signed in 2016 had already limited exemptions for new investments, the judgment clarifies that authorities may scrutinise older structures if they lack commercial substance. Tax officials argue the decision closes loopholes without violating treaty commitments, while investors warn it introduces uncertainty for legacy holdings.

Officials from the finance ministry maintain that the ruling aligns with international norms promoted by the Organisation for Economic Co-operation and Development, particularly the Base Erosion and Profit Shifting framework. They stress that genuine investors with demonstrable economic substance in Mauritius have little to fear. However, fund managers say the practical test will lie in how tax authorities interpret “substance” and whether retrospective demands emerge through reassessments.

Market reaction has been cautious. Legal advisers report a spike in queries from foreign portfolio investors and multinational corporations reassessing exposure to India-linked assets held through Mauritius vehicles. Some funds have begun exploring alternative jurisdictions such as Singapore or the Netherlands, though treaty benefits in those routes have also narrowed over time. The broader concern is not a single treaty, but a pattern of assertive tax enforcement that could complicate exit planning.

Mauritius itself faces strategic implications. The island has worked to reposition its financial sector beyond treaty advantages, emphasising regulatory credibility, compliance standards and links to African markets. Authorities in Port Louis have reiterated that the country remains committed to transparency and cooperation, noting that the revised treaty framework already reflects shared objectives with New Delhi.

Economists note that India’s investment landscape has changed markedly since the era when Mauritius structures dominated. Domestic capital markets are deeper, startup funding has diversified, and manufacturing-linked incentives are attracting strategic investors less dependent on tax arbitrage. Even so, foreign capital remains critical for sectors such as infrastructure, renewable energy and technology, making predictability in tax policy a sensitive issue.

Corporate leaders caution that while sovereign governments have the right to protect revenues, abrupt shifts can affect perceptions of stability. Several high-profile disputes in the past decade, including cases involving telecom and energy companies, continue to shape investor memory. The latest ruling, they say, reinforces the need for clear administrative guidance to avoid prolonged litigation.

From the government’s perspective, the judgment strengthens its hand in ongoing tax assessments and signals continuity in policy direction. Officials argue that aligning domestic law with treaty intent ultimately supports fair competition and long-term growth. They also point to dispute resolution mechanisms and advance rulings as safeguards for investors seeking clarity.

By Nitya Chakraborty The Washington talks for discussing the future of Greenland failed on Wednesday with the foreign ministers of Denmark and Greenland returning back home with the message from White House that Greenland rightfully belongs to USA and Trump will be deciding on the timing of its takeover. The U.S. does not care for […]

The article How Far European Union Can Go To Defend Greenland From Trump Annexation? appeared first on Latest India news, analysis and reports on Newspack by India Press Agency).

Organised by MP Singapore, and presented by the Franchising & Licensing Association (Singapore), FLAsia 2026 marks a new chapter for the long-running industry event as it enters its 21st edition under a new organiser partnership. The appointment of MP Singapore brings expanded regional reach, deeper industry engagement and a strengthened focus on business outcomes for exhibitors and visitors across Asia.

FLAsia 2026 is expected to welcome more than 7,000 trade visitors and over 250 exhibiting brands from franchising, licensing, character IP, retail concepts and emerging business models. The event will continue to serve as a central marketplace for brand owners, franchisors, licensors, investors and entrepreneurs to connect, explore partnerships and identify expansion opportunities across regional and international markets.

Building on the momentum from previous edition, the Brand Licensing Village will return in 2026. The dedicated zone will spotlight locally developed intellectual property that has already been successfully commercialised, offering visitors a focused platform to discover market-ready IP, connect with licensing experts and explore collaboration opportunities across categories. The Licensing Village reinforces FLAsia’s role in supporting IP growth and brand extension within the region’s licensing ecosystem.

On the franchising front, the Chinese Franchise Conference will make a return, reflecting continued interest from Chinese brands and investors seeking expansion opportunities across Southeast Asia and beyond. Curated in collaboration with key industry stakeholders, the conference will provide targeted insights, market perspectives and networking opportunities for Chinese franchise brands and regional partners.

FLAsia 2026 will also feature international pavilions and brand participation from key markets, with brands from Korea, Thailand and other regional economies expected to be present, further strengthening the show’s international profile. Alongside the exhibition showcase, the event will include curated business sessions, industry sharing, talent and career touchpoints, and dedicated zones highlighting innovation, IP development and brand growth, reinforcing FLAsia’s position as a leading gateway for franchising and licensing opportunities in Asia.

“Partnering with MP Singapore marks a dynamic leap forward for FLAsia. Together, we’re amplifying the event’s influence and reach, ensuring the franchising and licensing community thrives as the industry surges across Asia.” Mr Gan Shee Wen, President, Franchising & Licensing Association (Singapore).

“FLAsia is a well-established platform with strong industry trust, and we are pleased to be organising the event for the first time. By leveraging on MP’s global network, we will connect brands, partners and stakeholders in a way that will foster an environment that encourages collaboration, supports quality participation and drives tangible outcomes for both exhibitors and visitors. We are excited to grow FLAsia alongside the industry in the years ahead.” Jason Ng, Managing Director of MP Group.

Franchising & Licensing Asia has, over the years, established itself as a key business platform for brands seeking growth, market entry and partnership opportunities in Asia. With Singapore as its springboard, the event continues to attract regional and international participation, reinforcing its role as a gateway to Asian markets.

More information about FLAsia 2026 can be found at www.franchiselicenseasia.com.

Hashtag: #FLAsia2026 #Franchising #Licensing #BrandExpansion #TradeShowAsia #BusinessNetworking

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About FLAsia

Franchising & Licensing Asia (FLAsia) – 21st Edition – Asia’s leading marketplace for franchising and licensing, FLAsia brings together reputable brand owners, business leaders, investors, and entrepreneurs to create a dynamic platform for accelerating business growth, expanding professional networks, and increasing brand visibility across the vibrant Asian market.​ ​FLAsia provides the chance for exhibitors to showcase unique business concepts, engage in face-to-face meetings with high quality visitors and create meaningful business connections.​ ​Visitors get to connect directly with brand owners, franchisors, licensors, industry experts, and like-minded leaders, attend insightful conferences, and access high quality business opportunities.​

About Franchising and Licensing Association (Singapore)

Franchising and Licensing Association (FLA Singapore), one of the founding members of the World Franchise Council, was established in 1993 with the mission to nurture and develop Singapore’s franchising industry. An essential component of Singapore’s knowledge-based economy, FLA Singapore promotes and facilitates the use of franchising, licensing and branding as a growth strategy for Singapore enterprises, thus contributing to turning Singapore into a regional franchise and license hub.

Through its partnership with Singapore government agencies and international franchise and license bodies, FLA Singapore also assists its members in their international development programmes. With an active growing membership of close to 150 companies, representing more than 250 strong brands, FLA (Singapore) is led and managed by a dedicated team of advisors, committee members and a full-time secretariat with the goal of supporting Singapore companies to expand internationally.

About MP Singapore

The MP Singapore (MP) is a global full-service agency that specialises in connecting and building eco-systems, industry engagement, events management and marketing. Established since 1987, MP embodies more than a quarter century of event building, marketing and management experience in both Eastern and Western cultures, practices, and business philosophies. We bring world-class talent, industry expertise, and incredible enthusiasm into the design and management of extraordinary online-to-offline experiences for your organisation.

MP is part of Pico Group, a global group of agencies specialising in engaging people, creating experiences and activating brands for businesses, institutions and governments. As part of the Pico group, MP has unlimited access to a wide network of industry contacts and resources. Pico Far East Holdings has been listed on the Hong Kong Stock Exchange since 1992.

This is the fifth edition of the Hong Kong Economic Policy Green Paper, released by HKU Business School, with the aim of providing recommendations on how Hong Kong can effectively tackle these challenges.

HKU Business School today unveils the Hong Kong Economic Policy Green Paper 2026. From left: Prof. Huiyin Ouyang, Associate Professor in Innovation and Information Management of HKU Business School, Prof. Dragon Tang, Professor in Finance in HKU Business School, Professor Hongbin CAI, Dean and Chair of Economics of HKU Business School, Prof. Richard Wong, Provost and Deputy Vice-Chancellor of The University of Hong Kong and Director, Hong Kong Institute of Economics and Business Strategy, Prof. Heiwai Tang, Associate Vice-President of The University of Hong Kong and Associate Dean of HKU Business School, and Dr. Tingting Fan, Principal Lecturer in Marketing of HKU Business School.

Prof. Richard Wong, Provost and Deputy Vice-Chancellor of The University of Hong Kong and Director, Hong Kong Institute of Economics and Business Strategy said, “This Green Paper was released after months of rigorous research by the scholars from HKU Business School. Grounded in an academic perspective and guided by a pragmatic, problem-solving approach, we have conducted objective analyses and in-depth investigations into core issues and real-world challenges currently facing Hong Kong’s development in political and economic operations, people’s livelihood, and industrial upgrading. Our aim is to provide the Government and relevant authorities with valuable insights and actionable policy recommendations.”

Professor Hongbin Cai, Dean and Chair of Economics of HKU Business School, said, “As a ‘super-connector’ bridging China and the world, Hong Kong’s unique role remains indispensable. Looking ahead, Hong Kong must deeply integrate into China’s national development plans, and also take a more prominent role on the international stage, with an in-depth understanding of the global market and active engagement with its international collaborators.

With campuses in Beijing, Shanghai, and Shenzhen, and an expanding presence in Vietnam and Europe, HKU Business School embodies our unique proposition: deeply rooted in Hong Kong, fully engaged with the Chinese Mainland, and truly international. This year’s Green Paper reflects our dedication to inspiring solutions based on rigorous research. As a world-class institute of higher education, we are committed to enabling Hong Kong to further unleash its core values and usher in a new era of high-quality development.”

Prof. Heiwai Tang, Associate Vice-President of The University of Hong Kong and Associate Dean of HKU Business School, added, “This Green Paper features research papers from ten teams of scholars with diverse backgrounds and varied expertise. Based on profound insights into Hong Kong’s development, they offer unique and targeted policy recommendations, building a rich and multifaceted framework of issues for the Green Paper. At the same time, behind these research achievements lies the scholars’ deep affection for and sense of responsibility toward Hong Kong.”

Regarding how digital technology can boost Hong Kong’s trade finance, he emphasised: “Both data and industry feedback clearly demonstrate the core value of trade finance. However, we need more synergy in the trade finance ecosystem and to catch up in digitisation. To address this, we must strengthen the governance and standard promotion of digital trade platforms and tools, deepen the cross-border interoperability of trade data, expand the functions of the Hong Kong Export Credit Insurance Corporation, focus on high-value-added trade enterprises, extend the coverage of Free Trade and Double Taxation Avoidance agreements, and promote responsible stablecoin adoption and Renminbi internationalisation.”

Prof. Dragon Tang, Professor in Finance at HKU Business School, stated, “Hong Kong is uniquely positioned to lead in the integration of blockchain technology within green finance, exemplified by our pioneering issuance of the world’s first tokenised green bonds, totalling HKD 6 billion in February 2024. With green finance representing a critical avenue for sustainable development, the global market is projected to grow significantly, emphasising the importance of transparency and trust. To capitalise on this opportunity, we must enhance our blockchain infrastructure, establish clear regulatory standards, and promote cross-border integration with initiatives like Core Climate. By leveraging blockchain’s capabilities, we can significantly reduce costs, improve transparency, and engage a broader investor base, ultimately driving our transition to a sustainable finance future.”

Prof. Huiyin Ouyang, Associate Professor in Innovation and Information Management, HKU Business School, commented on her study, saying, “Two weeks post-implementation of the hospital fee reform, the media reported no significant change in emergency department crowding, which aligns with what our analysis predicted. Overcrowding isn’t simply about patient behaviour – it’s a structural issue. Demographics are shifting, capacity is constrained, and alternative treatment options remain limited. What we now need is a careful, systematic evaluation of the fee changes. Where are vulnerable patients going for care? Are some patients delaying treatment? What unintended effects are emerging? Effective reform requires pairing fee adjustments with expanded primary care access. We can’t solve a capacity problem with pricing alone.”

Dr. Tingting Fan, Principal Lecturer in Marketing at HKU Business School, presented as well, spoke on her study and asked, “Why did Pop Mart go public in Hong Kong but register IP in Singapore? Or why was Molly ‘born’ in Hong Kong but did not go viral from Hong Kong? Why have local companies not managed to turn these homegrown IPs into major business triumphs? Learning from the past and looking forward, Hong Kong can leverage its financial market, legal system, as well as talents to build a comprehensive IP industry infrastructure and become an IP hub.”

The Green Paper includes ten articles; the key points are as follows:

Empowering Merchandise Trade Finance with Digital Technology in Hong Kong
Author: Prof. Heiwai Tang, Associate Vice-President (Global), The University of Hong Kong; Associate Dean (External Relations), HKU Business School; Associate Director, Hong Kong Institute of Economics and Business Strategy; Victor and William Fung Professor in Economics

• Trade is an essential lifeline for Hong Kong; its total merchandise trade was three times the city’s HKD3.2 trillion GDP in 2024. Trade finance is thus equally important, yet research shows that the total loans extended for trade finance have been declining.
• As geopolitical and technological shifts reshape trade, Hong Kong must upgrade its trade finance services. With consumer-goods trade shifting to smaller, more frequent orders and shorter cycles, financial institutions need to streamline approvals and develop flexible products for e-commerce and logistics-driven cash cycles. Banks also need to digitise core processes in fund settlement. The article cautions that platforms directly connecting mainland manufacturers with overseas buyers disintermediate Hong Kong’s traditional hub-and-spoke role.
• To address this, the article suggests the government leverage digital technologies to elevate the adoption of Hong Kong’s digital trade platforms through unifying core digital trade functions. Moreover, speeding up interoperability of trade data platforms with the Chinese Mainland and other economies will enable seamless data exchange.

Rebuilding Hong Kong as the Catalyst to the Greater Bay Area (GBA) Startup Ecosystem
Prof. Alberto Moel, Professor of Practice in Finance, HKU Business School
Prof. Joseph Chan, Associate Professor of Practice in Management and Strategy, HKU Business School; Associate Director, Centre for Innovation and Entrepreneurship

• Offering a quantitative analysis of the evolution of Hong Kong’s startup landscape, the article found that post-2019 activity has slowed, mirroring global venture capital trends, with most failing to grow beyond 50 employees due to scarce late-stage capital despite early-stage availability. While fintech and logistics dominate and AI/blockchain grow quickly, deep tech lags—authors view this as temporary and highlight Hong Kong’s alignment in financial innovation, regtech, and GBA supply chains to attract investment and support corporate transformation.
• To strengthen Hong Kong as the GBA’s premier startup hub and international financial centre, the article recommends nine policies—including fixing funding gaps, closing academia-market divides through industry-focused research for tech transfer, attracting/retaining talent, integrating Northern Metropolis with GBA supply chains, pivoting to high-value services, and drawing large tech platforms to incubate local startups.

The Applications of Blockchain in Green Finance: Hong Kong’s Experience and Opportunities
Author: Prof. Dragon Tang, Professor in Finance, HKU Business School; Associate Director, Centre for Financial Innovation and Development

• The green finance market has entered an important new phase. Hong Kong became the world’s first issuer of sovereign tokenised green bond when it priced an HKD800 million one-year note in February 2023. Despite this, Hong Kong faces several challenges in the practical implementation of using blockchain to advance green finance. This is due to the limited interoperability between blockchain platforms and existing financial infrastructure, which hinders cross-market transactions. Real-time settlement for tokenised assets is also difficult because of scalability constraints.
• The article argues that the future success of blockchain development in green finance will depend on progress in three areas: standardisation, scalability, and security. Clear regulatory frameworks and common technical protocols are needed to provide legal certainty and interoperability across platforms. While collaboration among regulators, technology providers, and energy-market participants can align rules for tokenisation. Blockchain can also connect Hong Kong’s Core Climate platform with overseas counterparts, as cross-border integration is crucial to the inherently international nature of climate finance.

Can Hong Kong be an IP hub for Future Labubu? An Overview of Hong Kong’s IP Industry
Dr. Tingting Fan, Principal Lecturer in Marketing, HKU Business School
Prof. Heiwai Tang, Associate Vice-President (Global), The University of Hong Kong; Associate Dean (External Relations), HKU Business School; Associate Director, Hong Kong Institute of Economics and Business Strategy; Victor and William Fung Professor in Economics

• As Labubu’s success turns the spotlight on the growing importance of the IP industry, the authors propose that this can inspire more creators and businesses to invest in branding, licensing, and cross-border collaborations. This can also attract policymakers’ attention to the emerging IP sector as a key driver of innovation and economic growth.
• To position Hong Kong as a leading regional IP trading centre, the authors recommend that stakeholders—including IP developers, entrepreneurs, and government agencies—coordinate efforts across key areas. These include building a robust IP financing ecosystem, such as through government-issued IP bonds replicating the green finance model; enhancing infrastructure and platforms to support IP development; developing specialised talent and professional services in the IP sector; promoting IP initiatives throughout the Greater Bay Area; and strengthening IP protection alongside a solid legal framework.

Thematic Research: Maximisation of Social Value and Shareholder Value – Insights from Hong Kong-listed Companies Across Sectors
Author: Prof. Sean Chang, Associate Professor of Practice in Finance, HKU Business School

• Through a triangulation research approach, the article examines how social policies, international frameworks, and corporate social responsibility influence a company’s valuation and capital budgeting decisions. Using insights from major Hong Kong-listed companies across nine sectors—spanning transport, utilities, financials, banking, conglomerates, technology, real estate, consumer, and hotel servicing—the research highlights CSR’s role in enhancing long-term firm performance.
• Key findings show that corporate risk assessment, company valuation, and stock performance are significantly influenced by CSR-linked socially responsible investing (SRI) factors. Hong Kong-specific social values, such as equality and sustainability, shape investor preferences, guiding finance managers to tailor solutions and adapt regulatory standards. While conventional metrics remain dominant, incorporating social value boosts long-term firm value by building shareholder trust and mitigating risks; companies can pursue CSR projects financed via SRI bonds to create dual economic and societal benefits.
• The study recommends embedding core values like equality and sustainability into corporate strategies, aligning budgeting processes with social objectives to pinpoint investments yielding both returns and positive impacts, and urging Hong Kong-listed firms to sustain capital budgeting aligned with enduring societal values.

Housing Affordability and Homeownership in Hong Kong, 1985-2023
Mr. Allen W. Huang, Student Researcher, Hong Kong Future Economy Institute
Mr. Alex Ngau, Research Associate, Hong Kong Future Economy Institute
Prof. Michael B. Wong, Assistant Professor in Economics, Management and Strategy, HKU Business School

• Hong Kong’s housing market has grown increasingly unaffordable, hindering upward mobility for younger generations. Main findings from the research reveal that since the 2002 suspension of the Home Ownership Scheme (HOS), homeownership has declined sharply, rendering private housing “impossibly unaffordable” for median-income households. A wide public-private rent gap drives young people to accept lower-paying or part-time jobs to qualify for public rental housing (PRH), distorting labour supply, stifling human capital investment, and fuelling a surge in adult co-living with parents; younger cohorts (born 1980-1999) face far lower access to public housing and ownership than prior generations at the same age.
• Taking Hong Kong Island as an example, between 2003 and 2024, the rent-to-income ratio for a typical 400-sq-ft private unit jumped from 35% to 60% of median household income, peaking at 65% in 2015 and 2019—far exceeding the UN-Habitat and World Bank’s 30% affordability threshold. Public housing rents stayed dramatically lower at just 7%–11% of median household income from 1985 to 2024. For home purchases, it now takes 18.2 years of median income to buy a 500-sq-ft private unit (up from 7.4 years in 2003), placing it in the “impossibly unaffordable” zone per the Demographia International Housing Affordability report, where ≤3.0 years is considered affordable and 9.0+ years is impossibly unaffordable. After the 2002 Home Ownership Scheme suspension, even subsidised HOS units now require 15.8 years of income on Hong Kong Island (up from 7.4 years in 2007), shifting them from moderately unaffordable to severely or impossibly unaffordable in urban cores.
• To reverse these trends, the authors recommend ramping up production of high-quality ownership units, easing resale and leasing restrictions on existing subsidised sale flats to boost residential mobility and enable “trading up” the housing ladder, setting housing price and affordability targets over mere supply goals, and adopting responsive mechanisms to balance demand and supply.

Beyond Crisis Management: Structural Reform for the Overcrowding in Hong Kong’s Emergency Departments
Prof. Huiyin Ouyang, Associate Professor in Innovation and Information Management, HKU Business School
Ms. Yiran Zhang, PhD student, HKU Business School

• Hong Kong’s public emergency departments (EDs) handle over 2.14 million annual attendances. This crisis, exacerbated by an ageing population, results from a structural mismatch: the majority of the attendances are for non-emergency conditions, leading to staff burnout and compromised care.
• The article proposes three comprehensive structural reforms. First, improving operational efficiency with accurate wait time information systems is crucial. Second, increasing the ED fee (categories III–V) aims to divert non-critical patients. Success for this hinges on assumptions about patient responses, particularly how varied population segments will react to the price signal. International evidence raises concerns, showing that higher ED fees can reduce overall utilisation, but with the decrease primarily occurring among price-sensitive groups who may risk delays in receiving serious care. Therefore, for this reform to succeed, the public must have genuine access to alternative care pathways that can accommodate acute but non-emergency needs outside regular business hours, with pricing acceptable to price-sensitive populations. Third, AI can augment the workforce and manage demand (e.g., through telemedicine).
• Ultimately, sustainable reform demands robust evaluation, political courage, and a commitment to address root causes, not just symptoms.

Initial Efforts to Empirically Measure AI Activity and Its Impacts on Hong Kong’s Labour Market
Prof. Alan Kwan, Associate Professor in Finance, HKU Business School
Prof. Mingzhu Tai, Associate Professor in Finance, HKU Business School; Associate Director, Institute of Behavioural and Decision Science
Mr. Zihan Wang, Master student, HKU Business School

• In an effort to empirically measure the impact of AI on Hong Kong’s labour force, the researchers observe that firms with a higher adoption of AI experience lower headcount growth. However, the scale of impact appears small in the city, which could be due to several potential reasons. One of these is the different composition of Hong Kong’s labour force compared with other countries. For instance, Hong Kong has a high proportion of finance or managerial talent, which is harder to displace; the city also features older or more elite workers. On the other hand, much of the impact of AI, particularly generative AI, is on the less elite and younger populations.
• As such, the authors recommend policymakers produce more labour market statistics that track the impact of AI, particularly by occupation. On the rate of AI adoption in Hong Kong through innovation, the authors find that the city is heavily skewed towards research, but not commercialisation. This means that the quality and quantity of academic research is not translating to commercial use. To address this decoupling, the authors propose that the government tweak its existing early-stage startup funding platforms to encourage streamlining and higher utilisation of existing government resources.

The Impact of Generative Artificial Intelligence on Cybersecurity in Hong Kong
Author: Prof. Michael Chau, Professor in Innovation and Information Management, HKU Business School

• As GenAI can produce human-like text, code, images, and audio, cybersecurity crimes have become easier and faster to perpetrate. Not only have data leaks and hacks into security systems led to significant financial losses in Hong Kong, but they also hurt confidence in the city’s digital infrastructure.
• The article recommends using AI to fortify Hong Kong’s cyber defence, such as using biometric verification and deepfake detection technologies, especially in areas involving critical infrastructure and high financial stakes. It is also important to prevent data leakage and other threats in using GenAI.

Hong Kong’s Next Growth: Pioneering the Web 3.0 Ecosystem
Prof. Yulin Fang, Professor in Innovation and Information Management, HKU Business School; Director, Institute of Digital Economy and Innovation
Mr. Yangchen Mou, PhD student, HKU Business School

• Given the inherent risks in Web 3.0 operational models—most notably within Decentralised Finance (DeFi) systems—striking a balance between fostering the development of the Web 3.0 ecosystem and implementing appropriate regulation to maintain financial stability is and should be a key priority for Hong Kong authorities. To support this, the article categorises the industry into three distinct systems—Centralised Finance (CeFi), the integration of Traditional Finance and Centralised Finance (TradFi-CeFi), and Decentralised Finance (DeFi)—and put forward targeted policy recommendations for each.
• For the CeFi system, the authors recommend creating a more conducive environment for development by refining specialised auditing frameworks, promoting a local Web 3.0 talent certification system, and introducing global leading CeFi institutions to the local market. For the TradFi-CeFi system, they suggest upgrading audit standards for traditional firms holding digital assets and upskilling traditional finance professionals with Web 3.0 expertise. In contrast, for the DeFi system, which carries higher inherent risks and poses greater regulatory challenges, the authors advise authorities to adopt a prudent stance while keeping monitoring its latest technological developments.

The full version of the Green Paper can be accessed here. Hi-res photos are available here.

Hashtag: #HKUBS

The issuer is solely responsible for the content of this announcement.

About HKU Business School

Established in 2001, HKU Business School is one of the youngest and most dynamic members of The University of Hong Kong (HKU). The School strives to nurture first-class business leaders and foster academic and relevant research that serves the needs of Hong Kong, China and the rest of the world in the new Asia-led economy. As a top international business school, the School has established its place as a globally impactful institution that leads the way through timely thought leadership, pioneering research, and educational excellence. Deeply rooted in Hong Kong and fully engaged with China, the School’s world-class faculty equip students with global knowledge and perspectives.

HKU Business School offers business education across a full range of disciplines, while achieving remarkable growth in faculty strength and research capabilities. The School ranks Asia’s No.1 in Financial Times’ Aggregated Research Ranking for two consecutive years, 2024 and 2025, while the University of Hong Kong ranked 11^th in the world and No. 1 in Asia according to the QS World University Rankings 2026. The School has strategic partnerships with world-renowned universities and corporate partners, providing market-oriented content, superior learning, and instrumental resources.

To better serve our students and alumni in various cities and regions, and to facilitate collaboration opportunities with business communities around the globe, HKU Business School has established a unique international network that extends to Beijing, Shanghai, Shenzhen and Ho Chi Minh City.

HKU Business School is fully accredited by the European Quality Improvement Systems (EQUIS) and the Association to Advance Collegiate Schools of Business (AACSB).

Visit us at https://www.hkubs.hku.hk/

The MoU was signed by UTM Vice Chancellor Prof. Dr. Mohd Shafry Mohd Rahim and CDL Academy Chairman Dato’ Sr. Mohd Zaid Zakaria. It formalises the ongoing partnership between the two organisations and aims to provide students with industry exposure and practical experience, preparing them for careers in the construction sector.

Under the agreement, UTM and CDL Academy will pursue initiatives including professional training programmes, student internships, academic exchanges, workshops, seminars, and innovation projects in green building materials, advanced construction technologies, and cost management solutions.

Universiti Teknologi Malaysia (UTM) is Malaysia’s premier university for engineering, science, and technology, committed to building partnerships that enrich research output and provide students with real-world learning opportunities. The collaboration with CDL Academy exemplifies UTM’s efforts to equip graduates with the skills and experience needed to contribute effectively to the nation’s development.

Since its inception in 2019, CDL Academy has delivered over 100 seminars and learning engagements, benefiting more than 10,000 participants across the construction and engineering ecosystem. The collaboration with UTM expands these efforts, supporting the development of industry-ready graduates and addressing emerging needs in sustainable construction and advanced building technologies.

The MoU will be in effect for three years, with opportunities for renewal. Coordinators from both parties will oversee programme development to ensure measurable outcomes for students, researchers, and the construction industry.
Hashtag: #YTLCement, #CDLAcademy, #UTM, #ESG, #Sustainability, #Construction, #SustainableConstruction

https://ytlcement.my/cdl-academy
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CDL Academy Sdn Bhd

CDL Academy Sdn. Bhd. is the professional learning and development platform of the YTL Cement Group, established to support training and talent development within the construction industry. CDL Academy focuses on developing well-trained, industry-ready professionals through structured training and practical knowledge-sharing.

Beyond technical disciplines, CDL Academy serves as a hub for knowledge exchange, innovation and collaboration. It brings together practitioners, academics and universities, as well as industry leaders, industry associations and governing bodies through training programmes, seminars, workshops and strategic partnerships.

Through its commitment to quality education and best-practice sharing, CDL Academy aims to contribute to strengthening industry talent pipelines, supporting university–industry collaboration, and supporting the long-term advancement and sustainability of the construction ecosystem.

Universiti Teknologi Malaysia (UTM)

Universiti Teknologi Malaysia (UTM) is a premier public research university in Malaysia, specialising in engineering, science and technology. Located in Johor Bahru and with a campus in Kuala Lumpur, UTM is committed to producing globally competitive graduates and advancing cutting-edge research that addresses national and global challenges.

Beyond Balance: The Next Regime

HONG KONG SAR – Media OutReach Newswire – 13 January 2026 – Today, KGI has released its 2026 Global Market Outlook, covering markets in the US, Mainland China, Hong Kong, Taiwan, and Singapore.

After a turbulent year of trade disruptions and policy uncertainty under President Trump, investors face new questions. China has unveiled its 15th Five-Year Plan, as policymakers aim to support domestic growth amid global challenges. The market outlook for 2026 is shaped by interest rate decisions, economic resilience, and shifting international dynamics.

Under this backdrop, we propose the “LEAD” strategy for 2026:

1. Liquidity Shift
2. Earnings Focused
3. Adding Credit
4. Diversified Assets

Cusson Leung, Chief Investment Officer at KGI, says: “Looking ahead to 2026, investors can adopt a LEAD strategy: L ​​stands for Liquidity Shift, benefiting from a weakening US dollar and interest rate cuts, with funds expected to flow to non-US dollar and Asian currencies; E stands for Earnings Focused, focusing on earnings growth to support valuations and allocating to US, European, and Japanese stocks; A stands for Adding Credit, locking in the credit of leading companies and increasing holdings of A-rated investment grade bonds; and D stands for Diversified Assets, responding to the upward trend in both stocks and bonds by including alternative assets to optimize asset allocation.”

Macro & US Markets
The US economy will experience a more pronounced downturn in 4Q25, which will extend into 1H26, and this will have a negative impact on consumption, slowing investment activity. Nevertheless, AI-driven productivity gains should provide some support, with US GDP growth in 2026 forecast at 2.2%. The eurozone will see moderate growth, with Germany benefiting significantly from fiscal expansion and economic improvement. Japan’s economy will strengthen on domestic demand, aided by additional fiscal stimulus. China has demonstrated resilience under trade protectionism in 2025. With inflation risks easing and labor market risks rising, the US Fed cut the interest rates in September 2025, with a total reduction of 75 bps in 2025, followed by an additional 50-75 bps in 2026.

Regarding US stocks, AI-driven productivity gains and cost reductions should sustain solid profitability, with S&P 500 earnings projected to grow by 13.55% year-on-year (YoY) in 2026. However, higher risk premiums may cap valuation upside, leading us to project a year-end target of 7,650 points. Market performance will reflect risk-driven declines in 1Q26, stabilize and recover in 2Q26, and rally significantly around the midterm elections in 4Q26. By sector, among AI-related themes we favor technology, semiconductors, utilities (on higher power demand), machinery for advanced manufacturing, and industrial REITs. Non-AI beneficiaries include aerospace and defense (on higher military spending), pharmaceuticals (on tariff benefits), and capital market segments (supported by active investment banking). As for fixed income, US economic weakness and Fed rate cuts will drive Treasury yields lower, with 10-year yields expected to fall to 3.5-3.7% by 2Q26. We recommend allocating to US Treasuries or high-rated investment-grade corporate bonds in 1H26, then rotating into high-yield bonds in 2H26 as policy rates and economic conditions reach a bottom.

James Chu, Chairman at KGI Securities Investment Advisory, says: “AI is triggering a new productivity revolution, supporting economic growth and strengthening corporate earnings. While the US economy is expected to slow, a recession remains unlikely, and the short-term impact of tariff policies should gradually fade by the first quarter of 2026. Although the Fed may shift from cutting rates at every meeting to cutting at alternating meetings, the overall environment remains a rate-cutting cycle. In a non-recession backdrop, lower interest rates should continue to support equity market performance.”

Mainland China and Hong Kong Markets
In terms of the macroeconomy, with the conclusion of trade agreements among many countries, risks have subsided. However, due to external drag, China’s GDP growth is expected to slow slightly to 4.6% in 2026. In 2026, investors should focus on four key areas for Hong Kong and mainland China markets: (1) In the consumption sector, domestic demand continued to be the core growth driver, contributing more than half of GDP. As the “trade-in” effect diminishes, the central government is expected to implement the “15th Five-Year Plan” and economic conference plans, launching a new round of subsidies covering culture, entertainment, and sports to continuously boost consumer spending. (2) In the financial market, risk appetite has increased. Given the narrowing spread between bond yields and fixed deposit rates, large amounts of savings are flowing into the capital market seeking returns. The fundamentals of the banking and insurance industries have bottomed out, and the credit structure is accelerating its shift from real estate to supporting the real economy. (3) Regarding the issue of “anti-involution,” the PPI remains weak, and capacity reduction has become a focus. Compared to 2015, this round involves more downstream private enterprises and needs to consider employment, presenting greater challenges. While industry consolidation is expected to be lengthy, the impact is controllable and beneficial for long-term healthy development. (4) Regarding new quality productive forces, this will replace real estate and infrastructure as the main investment focus. Digital infrastructure supports AI and embodied intelligence, and humanoid robots are expected to see commercialization in 2026, “iPhone moment.” Leading companies with core technological autonomy in innovative drugs will enjoy higher valuation premiums.

Overall, we are optimistic on Hang Seng Index. We expect the Federal Reserve’s interest rate cuts to drive fund inflows to the Hong Kong and mainland stock markets. Based on an upward revision of the forward PE ratio to 13.5x and 8% earnings growth, we set a target of 30,000 points for the Hang Seng Index by the end of 2026, representing a potential upside of approximately 14%. As confidence recovers, the investment style is expected to shift from defensive to growth stocks. Recommended 12 stocks: XPeng Motors (9868), UBTECH (9880), Tencent Holdings (700), Alibaba (9988), China Hongqiao (1378), AIA Group (1299), Ping An Insurance (2318), China Merchants Bank (3968), Akeso Biopharma (9926), Pop Mart (9992), Tencent Music (1698), and Sino Land (83).

Cusson Leung, Chief Investment Officer at KGI, says: “2026 marks a crucial turning point for the Chinese economy. While the market anticipates GDP growth to slow to 4.6%, “new quality productive forces,” resembling humanoid robots, is taking over as a new growth engine. The most critical signal in the market is the “awakening” of idle cash—massive savings are flowing from low-interest fixed deposits to the capital market seeking returns. With risk appetite returning and policy support intensifying, now is the time to shift investment strategies from “defensive” to “growth.” Driven by both valuation repair and earnings growth, we are optimistic that the Hang Seng Index will reach 30,000 points, and the allocation value of Hong Kong and mainland China stocks has reappeared.”

Taiwan Market
Compared to the dot-com era bull run, which lasted almost five years, the current AI frenzy has been around for about three years, suggesting that the uptrend is still in its middle phase and could extend through 2026.

AI plays are trading at high PEs, such valuations are backed by strong fundamentals. In fact, the PEG ratio of Taiwan’s AI supply chain has yet to surpass 1x. We estimate that aggregate earnings of AI plays will grow by 21% YoY in 2026, following impressive upticks of 35% in 2024 and 43% in 2025. AI stocks now account for more than 60% of TAIEX earnings, and with the ongoing AI arms race, overall TAIEX earnings growth is projected to accelerate from 14% in 2025F to 20% in 2026.

Although the AI frenzy should keep the bull market intact, volatility will rise in tandem due to: (1) substantial cumulative gains, and the fact that valuations are approaching historic highs; (2) policy and political uncertainty surrounding the US midterm elections; and (3) potential changes in the US Fed’s rate-cut pace. We expect the TAIEX to repeat a “smile-curve” pattern, featuring continued strength in 1Q26, followed by healthy corrections in 2Q-3Q26 before closing the year with a renewed upswing.

We think investors need to pay attention to two major themes. The first is a broad-based product spec upgrade trend across the AI supply chain, which will drive the industry into a new growth phase, with beneficiaries including foundries, GPU and ASIC designers, advanced packaging (such as CoWoS), and ODMs, as well as testing interfaces, memory, thermal solutions, CCL, ABF substrates, PCBs, switches, and power component suppliers amid strong AI computing demand and ongoing GPU platform upgrades. The second is diversification and defensive asset allocation. Innovations in consumer electronics, such as foldable iPhones and smart wearables, will provide growth opportunities, while companies with resilient domestic demand and stable high dividend yields offer a balanced strategy combining growth and income. Overall, investors should strike a balance between growth and resilience against volatility in their portfolios, in the face of market fluctuations.

James Chu, Chairman at KGI Securities Investment Advisory, says: “The solid earnings growth driven by AI and still reasonable valuations form a strong foundation for the ongoing bull market in Taiwanese equities. With AI adoption accelerating across enterprises and consumers, demand for computing power is rising rapidly. Yet supply remains constrained by chip and power bottlenecks, meaning hardware suppliers are likely to face continued shortages through 2026. Taiwan’s AI supply chain is set to remain a key beneficiary, particularly those tied to next-generation specification upgrades.”

Singapore Market
In 9M25, the overall performance of Singapore’s economy was better than expected as the global trade tensions eased after the US pivoted on its reciprocal tariffs and reached deals with its major trading partners. The manufacturing, wholesale trade and finance & insurance sectors remained the growth pillars of the Singapore economy, and each sector delivered decent growth. In particular, manufacturing’s growth has been robust, driven by the electronics, transport engineering and biomedical manufacturing clusters. The full year outlook is upbeat, as the growth momentum shall continue till the end of the year.

Looking ahead, the global economic outlook for 2026 suggests slower GDP growth for most of Singapore’s key trading partners, including China and the Eurozone, largely due to the impact of US tariffs, which will temper demand for Southeast Asian exports, though US growth is expected to remain resilient from AI investment. Consequently, Singapore’s outward-oriented sectors, particularly manufacturing and trade-related services, are projected to expand at a slower pace than in 2025, although the electronics and related sectors will benefit from AI demand, while some precision engineering and biomedical output may moderate domestically, the construction sector is set to grow, but consumer-facing sectors are likely to remain subdued. However, the relatively low interest rates and continuous government support shall buffer the impact of the slowdown, and the capital market will still benefit from the upward re-rating catalysts.

Chen Guangzhi, Head of Research at KGI Singapore, says: “Thanks to trade de-escalation and the AI wave, Singapore experienced significant economic expansion in 2025. Proactive government initiatives turbo-charged the equity bull run, and this strong momentum is expected to deliver an optimistic economic outlook for 2026.”
Hashtag: #KGI #MarketOutlook

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KGI

KGI* has been a leading financial institution in Asia since 1997. Our scope of business encompasses wealth management, brokerage, fixed income, and asset management. We are committed to offering a comprehensive range of financial products and services to corporate, institutional, and individual clients throughout Asia. Backed by KGI Financial Group, we have a robust footprint in Asia, covering Taiwan, Hong Kong, Singapore, Indonesia, and Thailand^.

*KGI refers to KGI Asia Limited and its affiliates.
^an investee enterprise of KGI Securities, not a subsidiary.

National Stock Exchange of India has set its sights on filing draft initial public offering documents by the end of March, signalling a decisive step towards a long-anticipated market listing after years of regulatory uncertainty and governance resets.

People familiar with the matter say preparatory work is advancing, with internal approvals and compliance checks being aligned to meet the timeline. The exchange, which dominates equity and derivatives trading in the country, has been seeking to revive its listing plans after earlier attempts were stalled by regulatory scrutiny and leadership changes.

The move hinges on the receipt of a no-objection certificate from the market regulator, Securities and Exchange Board of India, which would clear the way for formal appointments of investment bankers and legal advisers. Those appointments are expected to follow swiftly once regulatory clearance is in hand, allowing the exchange to progress towards a draft red herring prospectus.

A potential filing by the end of March would place the exchange on track for a listing later in the financial year, subject to market conditions and regulatory review. Such a timeline would mark a turning point for the bourse, which has remained unlisted despite being among the world’s largest exchanges by trading volumes.

The exchange’s renewed push comes after a period of structural and governance reforms aimed at addressing issues that emerged earlier in the decade. These included concerns around preferential access to trading systems and lapses in oversight, which led to enforcement actions and delayed the listing roadmap. Since then, the exchange has reconstituted its board, strengthened compliance frameworks, and worked to restore regulatory confidence.

Market participants view the IPO as a significant milestone for capital markets, offering investors exposure to a cash-generative infrastructure asset with a dominant market position. The exchange commands a substantial share of equity derivatives trading globally and has expanded its product offerings across equities, indices, commodities, and data services.

Financial performance has also supported renewed listing ambitions. The exchange has reported steady growth in revenues driven by trading fees, clearing and settlement income, and technology-related services. Operating margins have remained robust, reflecting the scale advantages of its platform and relatively low incremental costs as volumes rise.

Valuation expectations, while not formally disclosed, have been the subject of market discussion for several years. Unofficial estimates have ranged widely depending on assumptions around growth, regulatory constraints, and competitive dynamics. A formal IPO filing would provide the first detailed, regulator-reviewed snapshot of the exchange’s finances, risks, and strategic priorities.

The listing process is expected to draw intense scrutiny from the regulator, given the exchange’s systemic importance and its history. Any draft filing will need to address past issues comprehensively, outline governance safeguards, and demonstrate sustained compliance with regulatory norms. Observers expect the regulator to take a cautious but structured approach, balancing investor protection with the broader objective of deepening capital markets.

For investors, the exchange’s ownership structure adds another layer of interest. Several domestic and global financial institutions hold stakes, some of which have been illiquid for years due to the absence of a public market. An IPO would offer a potential exit route and price discovery mechanism for these shareholders, while also broadening public participation in a key piece of market infrastructure.

Competition in the exchange space has intensified, particularly in derivatives and technology-driven trading solutions. Rival platforms have sought to chip away at market share through pricing, product innovation, and regulatory appeals. Even so, the exchange’s network effects, liquidity depth, and brand recognition continue to underpin its leading position.

Analysts note that the timing of an IPO will also be influenced by broader market conditions. Equity markets have shown periods of volatility, and new listings have faced varying levels of investor appetite. A filing by March-end would allow flexibility to choose a launch window that aligns with sentiment and valuations.

Germany’s opposition leader Friedrich Merz has suggested that a long-stalled trade agreement between the European Union and India could be clinched by the end of January, injecting momentum into negotiations that Brussels and New Delhi have struggled to close for more than a decade as global supply chains remain under strain from geopolitical frictions.

Speaking at a policy forum, Friedrich Merz said the bloc and India were “closer than many assume” to resolving key differences, adding that the economic case for a deal had sharpened after prolonged disruptions linked to strategic competition between major powers. His comments come as European manufacturers continue to grapple with uneven access to critical inputs following China’s tightening of export controls on minerals vital for electric vehicles, electronics and defence applications.

Negotiations for an EU–India free trade agreement were relaunched in 2022 after an eight-year hiatus, with both sides aiming to expand trade that exceeded €120 billion in goods and services last year. Officials involved in the talks say progress has been made on tariff reductions and rules governing digital trade, though sensitive areas such as agriculture, labour standards and intellectual property remain contentious. Merz’s remarks underscore a growing sense in Berlin and other capitals that the agreement has moved from a strategic aspiration to an economic necessity.

Germany, Europe’s largest economy, has been among the strongest advocates of diversifying trade ties beyond China, particularly after export controls imposed by Beijing on gallium, germanium and graphite created months of bottlenecks for automotive and renewable energy firms. Those controls, introduced amid the broader U. S.–China trade dispute, highlighted vulnerabilities in Europe’s dependence on a narrow set of suppliers for critical raw materials.

Executives in the auto sector say shortages of battery-grade materials last year forced production adjustments and delayed investment decisions. While some supply has since stabilised, industry groups argue that long-term resilience requires deeper partnerships with alternative producers and manufacturing hubs. India, with its expanding industrial base and policy push to attract foreign investment, has emerged as a central pillar of that strategy.

European officials note that the proposed agreement would not only cut tariffs—currently as high as 60 per cent on some vehicles entering India—but also establish clearer rules for public procurement and data flows. For India, the deal promises greater access to the European market for pharmaceuticals, textiles and IT services, while also encouraging technology transfer and skills development.

Trade analysts caution that closing the pact by late January would require political compromises on both sides. European negotiators have pressed for stronger environmental and labour commitments, while Indian counterparts have sought flexibility to protect small farmers and domestic manufacturers. Still, the geopolitical context is shifting calculations. The European Union has accelerated its “open strategic autonomy” agenda, seeking to balance openness with security of supply, and India has signalled willingness to align more closely with Western economies without abandoning its strategic independence.

Merz’s intervention also reflects domestic pressures within Germany, where exporters are seeking new growth markets as demand in China cools. German industry groups have repeatedly urged policymakers to prioritise agreements with fast-growing economies, arguing that delays risk ceding ground to competitors from East Asia and North America.

The broader backdrop includes intensifying scrutiny of China’s role in global supply chains. Beijing has defended its export controls as legitimate measures to safeguard national security and manage resources, but the ripple effects have reinforced calls in Europe for diversification. The European Commission has already launched initiatives to secure access to lithium, cobalt and rare earths through partnerships in Africa, Latin America and Asia, with India seen as both a market and a manufacturing partner.

Diplomats familiar with the EU–India talks say technical chapters are largely drafted, leaving political decisions to bridge remaining gaps. Any agreement would still need approval from member states and the European Parliament, a process that could extend beyond the negotiating deadline even if a political deal is struck.

GEM SRILANKA is organized by the Ceylon Gem and Jewellery Traders Association (CGJTA).It has over 2,000 members covering key gem-producing regions in Sri Lanka, including Beruwala, Ratnapura, and Galle, providing a professional platform for gemstone industry professionals worldwide to network, collaborate, and explore the world of gemstones in depth.

The exhibition set new records in both scale and attendance

This edition of the exhibition featured a total of 150 booths, attracting a large number of local and international buyers. Mr. Sunil Handunnetti, Minister of Industry and Enterprise Development of Sri Lanka; Rizwan Naeem, Vice Chairman of CGJTA,Mr. Andrew Lucas, President of GUILD Gemology Education and active field gemologist, Ms Ruby Liu, President of GUILD Gem Laboratories, and other distinguished guests attended the event.

At the Gem Sri Lanka 2026 gemstone exhibition, exhibitors comprehensively showcased their professional expertise across all stages of the gemstone industry value chain. Covering key areas such as mining, cutting, polishing, and heat treatment, the exhibition was guided by the core values of integrity and transparency, ensuring consistently high professional standards throughout. At the same time, this edition presented an immersive experience showcasing the long and diverse history of Sri Lanka’s gemstone industry, with detailed introductions to the country’s renowned sapphires and star sapphires. A dedicated premium exhibition zone was also curated to highlight exceptional sapphires and high-end colored gemstone collections.

According to data from GUILD Gem Laboratories, the number of gemstone samples submitted during the exhibition reached a new record high, directly reflecting the strong activity of the Sri Lanka trading market and further indicating a recovery trend in the global gemstone market at the beginning of the year.”The colored gemstone market in 2025 continues to evolve in terms of supply chains and color preferences. Although the market faced numerous supply-side challenges in 2024, against the backdrop of current conditions in the diamond market and rising gold prices, colored gemstones still demonstrate strong potential to gain increased market share.”Andrew Lucas noted in the opening of the GUILD 2025 Colored Gemstone Market Report.

Sri Lanka — a world-renowned gemstone trading hub

Sri Lanka has a thriving and highly valuable trade in precious and semi-precious gemstones, earning international recognition for its high-quality gemstones as well as its exceptional cutting and finishing craftsmanship. The gemstones produced in Sri Lanka consistently meet—and often exceed—the highest industry standards.

The country has long occupied a pivotal position in the global gemstone industry, serving as an integrated global hub encompassing mining, cutting, treatment, and trade. Buyers from major markets such as Japan, India, and China continue to travel to Sri Lanka, where they can observe the entire colored gemstone supply chain. Supported by a deep-rooted gemstone culture, extensive expertise, and an innovative mindset, Sri Lanka has developed a keen understanding of global market dynamics.

In recent years, by combining rough gemstone sourcing from Africa, Madagascar, and Southeast Asia with its renowned local cutting craftsmanship, Sri Lanka has further strengthened its position in the global gemstone industry.

GUILD Made a Dual-Booth Appearance at Gem Sri Lanka

As an internationally recognized gemstone testing authority, GUILD has long been committed to the study of field gemology, collecting A-type reference samples from major mining regions around the world to provide global industry professionals with accurate, authoritative, and efficient testing services. Since the inception of the exhibition, GUILD has served as a Platinum Sponsor of Gem Sri Lanka for three consecutive editions. At this year’s event, GUILD made its first-ever dual-booth appearance, featuring both GUILD Gem Laboratories and GUILD Gemology Education.

At the GUILD Gem Laboratories booth, a team of senior gemologists from GUILD Beruwala offered 24–48 hour rapid testing services to exhibitors and buyers, covering gemstone identification, treatment detection, and related services, providing reliable support for global gemstone trading and procurement. During the exhibition, the 2025 GUILD Colored Gemstone Market Report was also launched in limited quantities, serving as an important reference for industry trends and market direction.

Making its debut, the GUILD Gemology Education booth focused on the knowledge needs of professionals from both domestic and international markets, comprehensively presenting GUILD’s education and training programs as well as its overseas study tours. The booth showcased the English editions of Journey of Gems, professional color charts, and the combined volume of Microscopic Wonders: A Gemstone Inclusion Atlas, all of which were warmly received by industry professionals from around the world.

Focusing on a global perspective, driving the advancement of industry development

GUILD will continue to deepen its presence in the international gemstone market, leveraging its professional expertise to support the transparency and standardization of the global gemstone industry. Working together with industry peers, GUILD aims to explore new possibilities in source-origin trade and looks forward to even more highlights at the next edition of Gem Sri Lanka.

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