Botim Money, the financial services arm of the messaging platform botim, said on Tuesday it has entered a partnership with Mastercard to widen the reach of its international money transfer services, enabling users to send funds from the United Arab Emirates to more than 150 countries through a single digital interface. The agreement integrates Mastercard Move into the Botim app, allowing customers to initiate cross-border transfers that […]
Arabian Post Staff -Dubai Abu Dhabi-based clean energy company Masdar has reached financial close on the Ibri III Solar Independent Power Project in Oman, marking a milestone for the sultanate’s power sector as it brings together utility-scale solar generation with battery energy storage for the first time. The project is being developed by a consortium comprising Masdar, Al Khadra Partners, Korea Midland Power Co. and OQ Alternative […]
Arabian Post Staff -Dubai Dubai is preparing to introduce electric air taxis into commercial service before the end of the year, marking a pivotal step in the emirate’s push to reshape urban mobility through cleaner, faster transport options. The timeline was outlined by Mattar Al Tayer, chairman of the Dubai Roads and Transport Authority, who said regulatory approvals and infrastructure preparations are advancing in parallel with […]
China’s market watchdog has ordered the removal of co-located trading servers from exchange data centres, a step that strikes at the core of high-frequency trading strategies by stripping away microsecond advantages and reshaping how orders reach the market.
The directive, conveyed to brokerages and proprietary trading firms over the past week, requires firms to relocate servers that sit inside or adjacent to exchange facilities, a practice that has allowed algorithmic traders to exploit ultra-low latency connections. By mandating physical separation, regulators aim to level access speeds across participants and curb behaviour blamed for sharp intraday swings.
Officials at the China Securities Regulatory Commission have framed the move as part of a broader effort to restore fairness and stability at a time when volatility has tested investor confidence. Exchanges have begun coordinating timelines with members, while technology vendors assess the operational impact of migrating equipment and reconfiguring networks.
At the heart of the change is co-location, a service long offered by major venues such as the Shanghai Stock Exchange and the Shenzhen Stock Exchange. By placing servers in the same buildings as matching engines, firms could shave milliseconds off order transmission, a decisive edge for strategies that depend on speed. The new rule eliminates that edge by forcing all traders to connect from outside facilities, effectively compressing the speed differential.
Market participants say the immediate effect will be uneven. Firms that rely heavily on latency-sensitive strategies face higher costs and potential revenue declines, while asset managers and retail-focused brokers expect fewer instances of sudden price dislocations triggered by rapid-fire trades. Some proprietary desks have already paused certain algorithms as engineers test alternative connectivity routes.
Regulators’ concerns extend beyond fairness. Officials have grown wary of feedback loops in which automated strategies amplify short-term moves, especially during thin liquidity. Episodes of abrupt swings in small- and mid-cap shares have sharpened scrutiny of trading practices that can overwhelm order books in fractions of a second. By slowing the fastest participants, authorities believe markets will better reflect underlying supply and demand.
The measure also aligns with a wider tightening of oversight on quantitative trading. Over the past year, exchanges have refined monitoring of order-to-trade ratios, imposed stricter reporting on algorithmic strategies, and increased penalties for disruptive behaviour. Server removal adds a structural constraint that complements those rules, shifting the emphasis from after-the-fact enforcement to preventative design.
Technology providers are bracing for a wave of changes. Data centre operators linked to exchanges will see reduced demand for premium co-location services, while telecom firms may benefit as traders invest in faster external links to mitigate latency losses. Network optimisation, time-synchronisation tools and smarter order-routing software are expected to attract investment as firms adapt.
There are risks of short-term disruption. Moving servers involves downtime, testing and regulatory approvals, raising the possibility of temporary liquidity dips in certain instruments. Exchanges have signalled flexibility on implementation schedules to avoid disorderly conditions, though the direction of policy is clear. Compliance teams are urging firms to prioritise stability over speed during the transition.
Internationally, the decision is being watched closely. Other jurisdictions have grappled with the balance between innovation and fairness, with mixed approaches ranging from speed bumps to transaction taxes. China’s choice to remove co-location altogether is among the most decisive interventions to date and could influence debates elsewhere, particularly in markets where retail participation is high.
Google has rolled out Flow, an artificial intelligence-powered video creation tool designed for Workspace users, marking a significant expansion of the company’s generative AI offerings for businesses and educators. Announced on January 16, 2026, Flow allows users to create high-definition, cinematic-style videos from simple text prompts embedded directly within familiar productivity applications such as Docs and Sheets. The launch places video creation alongside text, data and presentation […]
Greenlogue/AP A consortium led by Abu Dhabi Future Energy Company Masdar has achieved financial close for Oman’s first utility-scale solar power project integrated with battery energy storage, marking a significant step in the Sultanate’s clean energy transition and long-term decarbonisation strategy. The project, located in the Wilayat of Manah in the Ad Dakhiliyah Governorate, is designed to supply enough electricity to power about 33,000 homes while avoiding […]
Copper prices slid in late morning trade on Tuesday as investors locked in profits after a strong run and renewed scrutiny fell on consumption prospects in China, the world’s largest user of the industrial metal. The pullback left the market near its lowest point in a week, underscoring how quickly sentiment can turn when demand signals soften. Benchmark three-month copper on the London Metal Exchange was down […]
Global investors are being urged to rethink long-held assumptions about United States stock market dominance after Goldman Sachs projected that emerging market equities and select European stocks are positioned to deliver stronger returns over the next five years. The investment bank’s outlook points to a combination of lower valuations, stronger economic growth prospects and a gradual narrowing of the earnings gap with the US, challenging strategies that […]
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.
BANGKOK, THAILAND – Media OutReach Newswire – 16 January 2026– ONYX Hospitality Group, a leading Southeast Asian hospitality management company specialising in hotels, resorts, serviced apartments, and luxury residences, is proud to announce its new partnership with Yee Fung Group to operate Y Hotel Nanshan in Shenzhen, People’s Republic of China.
ONYX Hospitality Group oversees renowned brands including Amari, OZO, Shama, and Oriental Residence across key destinations in the Asia–Pacific region. This agreement marks another significant milestone in strengthening ONYX’s presence in the Chinese market. Scheduled to open in Q4 2026, the hotel supports ONYX’s long-term growth strategy as it works toward its target of managing more than 75 properties by 2030.
Mr Yuthachai Charanachitta, Chief Executive Officer of ONYX Hospitality Group, commented: “This collaboration reflects the strong confidence Yee Fung Group has in ONYX, following our successful partnership in managing Y Hotel Hong Kong. It represents a significant step forward in building on that success and further expanding ONYX’s presence in the Greater China market. At the same time, this partnership reinforces ONYX’s position as a distinctive ‘Regional Player’, well-positioned for stable and sustainable growth across the region.”
Y Hotel Nanshan Shenzhen featuring 82 thoughtfully designed guest rooms and suites, located within YEE FUNG PLACE on a strategically significant site surrounded by key national infrastructure. The area is supported by five major national sea and land ports, including Shekou, Chiwan and Mawan, servicing more than 150 shipping routes. It is also situated at the heart of one of China’s leading innovation and industrial hubs, home to sectors such as integrated circuits, artificial intelligence, biomedicine and the marine economy, alongside more than 50 specialised industrial parks.
Y Hotel NanshanShenzhen is ideally suited for leisure travellers, offering convenient accessibility just 35 minutes from Shenzhen Baoan International Airport and 31 minutes from Shenzhen North Railway Station, and only 650 metres from Lilin Subway Station. The surrounding area features vibrant food markets and nightlife destinations such as Nanyi Fang, Shekou Sea World, Green World and Houhai, as well as cultural and recreational attractions including Shenzhen Poly Theatre, Shenzhen Talent Park, Nanshan Museum, Nanshan Park and Shenzhen Bay Park. Guests will also find leading shopping centres nearby, including Walmart, Xinhe Shopping Plaza, Garden City, Haiya Mega Mall, Coastal City and Shenzhen Bay MixC.
Furthermore, the hotel is located close to the headquarters of major national technology companies such as ZTE, Tencent, Huawei, Alibaba, Han’s Laser and Mindray, as well as Shenzhen University, positioning it as both a relaxing retreat and a strategic hub for business travellers seeking comfort alongside a distinctive lifestyle experience.Hashtag: #ONYXHospitalityGroup #YeeFungGroup #YHotel #HospitalityManagement #HotelManagement #LifestyleHotel
The issuer is solely responsible for the content of this announcement.
About ONYX Hospitality Group:
ONYX Hospitality Group, a reputable force in Southeast Asia’s hospitality industry, operates a collection of comprehensive yet complementary brands – Amari, OZO, Shama and Oriental Residence – catering to the distinctive needs of discerning business and leisure travellers in Southeast Asia where their expertise lies. In addition to its brand portfolio, ONYX Hospitality Group also operates additional hospitality services across spa and food and beverage. With over five decades of management experience, the company extends its innovative solutions throughout the region, upholding internationally recognised standards and ensuring optimal operational manoeuvrability. By fostering enduring relationships with like-minded business partners, ONYX Hospitality Group delivers unparalleled experiences in a dynamic and competitive market, meeting the ever-evolving demands of travellers.
Dubai has rolled out a pilot shared school transport service that aims to reshape the daily school run by combining technology-enabled operations with shared mobility, as the emirate seeks to ease congestion, improve safety standards and cut the cost burden on families. The initiative is being led by Dubai Roads and Transport Authority in partnership with Yango Group, a global technology firm with experience in mobility platforms […]
Arabian Post Staff -Dubai Abu Dhabi National Oil Company, the United Arab Emirates’s flagship petroleum producer, is evaluating options to enter Venezuela’s energy industry with a focus on gas projects, signalling a potential strategic pivot that could reshape international investment patterns in one of the world’s most under-utilised hydrocarbon reserves. This deliberation forms part of Adnoc’s broader international expansion plans via its overseas investment arm, XRG, and […]
By Ashok Nilakantan Ayers When India’s finance minister Ms Nirmala Sitharaman rises to present the 7th Union Budget on February 1, a record of sorts, the moment will carry an uncommon weight. This is no routine fiscal exercise, no mere balancing of columns and commas. Instead, the budget is being cast — by industry leaders, […]
Dubai has delivered its strongest residential performance on record in 2025, with total home sales valued at AED 547 billion, or about $149 billion, reflecting a 28% year-on-year rise and underscoring the emirate’s sustained appeal to investors and end users. Transaction volumes climbed to roughly 203,000 deals, marking a 20% increase and setting a new benchmark for market activity across the city. Data compiled by Betterhomes show […]
HONG KONG SAR – Media OutReach Newswire – 15 January 2026 – HKU Business School unveiled the “Hong Kong Economic Policy Green Paper 2026” (“Green Paper”). This comprehensive document delves into various facets of Hong Kong’s economic domain, covering everything from trade finance and Hong Kong’s role in the Greater Bay Area (GBA) startup ecosystem to green finance, the IP economy, social and shareholder value for Hong Kong-listed companies, and pressing social issues such as housing affordability and overcrowding in emergency departments. Moreover, with the emergence of AI, the Green Paper examines the impact of AI on the labour market, cybersecurity, and the development of a Web 3.0 ecosystem.
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 11th 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).
SINGAPORE – Media OutReach Newswire – 12 January 2026 – SL Aesthetic Group celebrates its 22nd anniversary, marking its growth from a single clinic into a multi-brand medical aesthetics and healthcare group.
Founded in Singapore in 2003, the Group has grown to encompass five specialised brands operating more than twenty outlets across Singapore and the region.
SL Aesthetic Clinicoffers doctor-led skin, face and body treatments, and is one of Singapore’s longest-running medical aesthetics clinic.
SkinLab The Medical Spa, a dermatology-focused medical spa, specialises in medical-grade facials and skincare products for sensitive skin.
TrichoLab, a dedicated hair and scalp health brand specialising in medical hair loss solutions.
Euphie (Malaysia) is the Group’s Malaysia-based extension comprising Euphie Skin Solutions and Euphie Clinic, delivering medically supervised aesthetic care.
The Group has served more than 100,000 patients, with care provided by a team of 12 doctors and more than 100 trained specialists.
Over the past two decades, the concept of beauty and wellness has broadened into a more holistic approach to personal care—one that goes beyond aesthetics to support overall wellbeing. People are placing greater emphasis on long-term health, from their mental health and nutrition to their physical appearance. This shift has driven growing demand for preventive, medically supervised services that integrate aesthetics with broader health concerns.
In response to these changing needs, SL Aesthetic Group has expanded its medical services beyond skin and hair treatments, introducing more than 40 new offerings across its five specialised brand portfolios, including women’s health services.
Dr Kelvin Chua, Founder and Senior Medical Director of SL Aesthetic Group, said: “Reaching 22 years reflects the continuity of care we have built over time. As patient expectations change, our focus remains on delivering medically supervised services that support long-term health and well-being.”
As part of this expansion, the Group launched Prologue The Lifestyle Medical Clinic and Prologue Centre for Women’s Wellness in 2025. Prologue The Lifestyle Medical Clinic focuses on preventive care for chronic conditions, supported by artificial intelligence–enabled health screenings for early detection of conditions such as dementia and cancer. Meanwhile, Prologue Centre for Women’s Wellness addresses women’s health needs across different life stages, including perimenopause, menopause, and postpartum recovery.
Within Singapore, the group strengthened its physical presence with the opening of its tenth SL Aesthetic Clinic and SkinLab The Medical Spa outlet at iMall in Marine Parade, as a response to strong and sustained demand from patients in the eastern region.
Regionally, SL Aesthetic Group marked a milestone as its Malaysia-based brand, Euphie — comprising Euphie Skin Solutions and Euphie Clinic — celebrated its first anniversary. Building on this foundation, the Group plans to open an additional outlet in Malaysia, extending its medically supervised services to a wider patient base.
Looking ahead, SL Aesthetic Group plans to continue expanding its clinical footprint while maintaining regulatory compliance, clinical standards, and patient safety.
The issuer is solely responsible for the content of this announcement.
About SL Aesthetic Group
SL Aesthetic Group is one of Singapore’s longest-established medical aesthetic groups, with a presence in Singapore and Malaysia. The Group houses a diverse portfolio of brands, including SL Aesthetic Clinic, SkinLab The Medical Spa, TrichoLab, PROLOGUE, and Euphie (Malaysia).
Founded in the 2000s, SL Aesthetic Group specialises in skin and hair health, women’s wellness, and holistic medicine. Across its clinics and outlets, the Group offers a comprehensive range of FDA-approved aesthetic and medical treatments, all supervised by trained and certified healthcare professionals holding Certificates of Competency (COC) recognised by the Singapore Medical Council’s Aesthetic Practice Oversight Committee (APOC).
By K Raveendran Oil prices have jumped roughly six percent in the span of a week, pushing benchmarks to around $63 a barrel and jolting a market that had grown accustomed to softer expectations closer to $50. The move has been swift enough to prompt talk of an over-reaction, not least because traders have already […]
Apple will pay an estimated $1 billion a year for access to Gemini’s large language models, instantly extending Google’s AI reach across one of the most powerful consumer ecosystems on the planet. I believe the Apple-Google AI alliance marks the moment artificial intelligence stops being a story about potential and starts becoming a story about profits. For more than a decade, investors rewarded ambition, vision and experimentation. […]
MoU signing and Malaysia Book of Records recognition underscore sustained consumer trust for ELDON, at a time when Malaysians are paying closer attention to sleep, stress and lifestyle balance
KUALA LUMPUR, MALAYSIA – Media OutReach Newswire – 14 January 2026 – Malaysian media personality Chan Fong and singer-actor Henley Hii have been appointed brand ambassadors for Malaysian health and wellness brand Eldon Healthcare, also known as ELDON, reflecting the brand’s mission to provide relatable, real-life health advocacy for modern Malaysians.
Eldon formalises brand ambassador partnership with Malaysian media personalities Chan Fong and Henley Hii
The appointment comes at a meaningful milestone for ELDON, a consumer health and wellness brand of thePharm-D Health Sciencegroup, following Malaysia Book of Records’ recognition for one of its flagship products, ELDON DX MAGELAX, as the most magnesium glycinate capsules sold in Malaysia.
Introduced to the Malaysian market in 2020,ELDON DX MAGELAXwas among the earliest magnesium glycinate supplements registered with the National Pharmaceutical Regulatory Agency (NPRA). At a time when awareness of magnesium was still limited, ELDON played an early role in familiarising consumers with magnesium glycinate, now widely recognised for its absorption profile and gentle tolerability, and and known for supporting muscle relaxation, migraines and sleep-related concerns such as insomnia. This Malaysia Book of Records recognition reflects not only strong sales performance, but also growing accessibility and consumer trust.
According to Wong Chin Cheang, Group Managing Director of Pharm-D Health Science, the appointment of the brand ambassadors, alongside the Malaysia Book of Records recognition for ELDON DX Magelax, reflects a broader milestone in the group’s long-term journey.
“ELDON’s growth reflects what we stand for as a group: building Malaysian health brands that are grounded in science, scaled responsibly, and trusted by the public over time,” he said. “Achievements like these are not only about the scale or numbers alone, but also consistency, credibility, and serving real needs in the community.”
Brand Ambassadors grounded in the real Malaysian health and lifestyle
Malaysian media personalities Chan Fong and Henley Hii are well-known Malaysian public figures with strong audience connections across lifestyle and entertainment circles. Grounded, busy and active in ways many Malaysians relate to, they were chosen for their strong alignment with ELDON’s brand philosophy, which inspires practical wellness habits, including prioritising better rest, sleep quality and a balanced lifestyle.
This partnership taps into post-COVID trends where three in four Malaysians prioritise holistic health, as national conversations continue to encourage prevention and healthier routines.
“This partnership feels personal because it is based on real routines,” said Chan Fong. “Whether you are working late, juggling responsibilities, or simply trying to keep up with life, your daily habits matter. I appreciate that ELDON’s approach is practical and grounded.”
Henley Hii added, “A lot of people think wellness has to look perfect, but most of us are just trying to be consistent. I am excited that this is a long-term partnership because real habits take time, and it is about showing up repeatedly.”
ELDON: a Malaysian consumer health brand shaped by purpose and scale
Fully homegrown in Malaysia, Eldon Healthcare is a wholly owned subsidiary of Pharm-D Health Science, an integrated Malaysian pharmaceutical and consumer health group of companies committed to advancing evidence-based health solutions across different life stages. ELDON represents the group’s consumer health pillar, which focuses on translating scientific expertise into accessible, everyday health and wellness solutions.
For ELDON, the focus has always been on building credibility steadily through quality formulation, transparent sourcing, and wide accessibility through pharmacies, clinics, and healthcare partners across Malaysia and Singapore.
“ELDON was never built to chase hype,” said Kenn Siaw, Chief Executive Officer of Eldon Healthcare. “Our responsibility is to create sustainable health solutions that people can rely on. The Malaysia Book of Records recognition is meaningful to ELDON because it reflects a strong trust from consumers, pharmacists, and healthcare partners.”
He added that the appointment of Chan Fong and Henley Hii represents the next phase of the brand’s journey: “They represent the realities of modern Malaysian life, demanding schedules, family responsibilities, and the need to stay healthy without overcomplicating things. That’s exactly who ELDON exists for.”
Looking ahead
With its growing footprint and renewed focus on public engagement, ELDON aims to continue supporting Malaysians who see health not as a luxury but as an essential foundation for everyday living.
Together, the appointment of brand ambassadors and Malaysia Book of Records recognition mark not just a celebration but a stronger commitment from both the company and the brand to continue delivering consistent, trustworthy health solutions.
This milestone adds to Pharm-D Health Science’s growing track record of national recognitions, as its probiotic brand Lang Bragman, was recently also being recognised by the Malaysia Book of Records as the Largest Range of Homegrown Probiotic Products in Malaysia. Hashtag: #EldonHealthcare #Eldon #EldonMagelax #MalaysiaBookofRecord #MostMagnesiumGlycinateCapsulesSoldInMalaysia #MagnesiumGlycinate #Migrane #Insomia #magnesium #albion #BetterRest #BetterSleepQuality #glycinate #activelifestyle #Ambassador #ChanFong #HenleyHii #PharmDHealthScience
The issuer is solely responsible for the content of this announcement.
About ELDON
ELDON is a Pharm-D Health Science consumer health and wellness brand offering a wide range of science-based health solutions across nutritional supplements, functional food, skincare, personal care, and medical-adjacent products.
With partnerships and distribution spanning 2,000+ retail pharmacies and 100+ clinics across Malaysia and Singapore including digital health platform Pharm-Dx, ELDON is committed to quality, relevance, and accessible care for everyday health and wellness needs.
Founded in 2001, Pharm-D Health Science (PDHS) is an integrated Malaysian pharmaceutical and consumer health group of companies specialising in pharmaceuticals and consumer health products. Its portfolio includes trusted, high-quality brands such as ELDON, VALENS, CMD, Lang Bragman, Reflux-G, Retane, and more.
Guided by its mission to make health and wellbeing accessible through science, the Group operates across research, development, manufacturing, and commercialisation to deliver science-based health solutions spanning across rare diseases, pharmaceuticals, medical nutrition, nutraceuticals, skincare and microbiome research.
Apple has rolled out a new subscription package aimed at video producers, podcasters and social media professionals, launching a “Creator Studio” bundle priced at $12.99 per month as the company deepens its push into the creator economy and recurring services revenue. The bundle brings together a suite of Apple-developed applications focused on video editing, audio production and graphics, integrating tools that were previously sold separately or bundled […]
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.
(From left) James Chu, Chairman at KGI Securities Investment Advisory; James Wey, Head of International Wealth Management at KGI; Cusson Leung, Chief Investment Officer at KGI
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:
Liquidity Shift
Earnings Focused
Adding Credit
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
The issuer is solely responsible for the content of this announcement.
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.
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All the information contained in this document is not intended for use by persons or entities located in or residing in jurisdictions which restrict the distribution of this document by KGI Asia Limited (“KGI”), or any other affiliates of KGI. Such information shall not constitute investment advice, or an offer to sell, or an invitation, solicitation or recommendation to subscribe for or invest in any securities, insurance or other investment products or services nor a distribution of information for any such purpose in any jurisdiction. In particular, the information herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States of America, or to or for the benefit of United States persons (being residents of the United States of America or partnerships or corporations organised under the laws of the United States of America or any state, territory or possession thereof). All the information contained in this document is for general information and reference purpose only without taking into account of any particular investor’s objectives, financial situation or needs and may not be redistributed, reproduced or published (in whole or in part) by any means or for any purpose without the prior written consent of KGI. Such information is not intended to provide any legal, financial, tax or other professional advice and should not be relied upon in that regard.
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Bond investment is NOT equivalent to a time deposit. It is NOT protected under the Hong Kong Deposit Protection Scheme. Bondholders are exposed to a variety of risks, including but not limited to: (i) Credit risk – The issuer is responsible for payment of interest and repayment of principal of bonds. If the issuer defaults, the holder of bonds may not be able to receive interest and get back the principal. It should also be noted that credit ratings assigned by credit rating agencies do not guarantee the creditworthiness of the issuer; (ii) Liquidity risk – some bonds may not have active secondary markets and it would be difficult or impossible for investors to sell the bond before its maturity; (iii) Interest rate risk – When the interest rate rises, the price of a fixed rate bond will normally drop, and vice versa. If you want to sell your bond before it matures, you may get less than your purchase price. Do not invest in bond unless you fully understand and are willing to assume the risks associated with it. Please seek independent advice if you are unsure.
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Average petrol prices across the United States have dropped to about $2.79 a gallon, marking the lowest national level in roughly five years and delivering tangible relief to households after a prolonged period of volatility at the pump. Data compiled from nationwide fuel surveys show the decline has been broad-based, with most states reporting steady week-on-week falls as winter demand ebbs and supply conditions improve. The slide […]
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.
African carriers outperformed global peers as air travel demand climbed to a November peak, underscoring a broad-based recovery in cross-border movement and a steady recalibration of airline capacity. International travel drove the expansion, with revenue passenger kilometres rising 7.7% year on year, while total international capacity increased 7.1%, lifting the load factor to 84.0%, the highest recorded for the month. The data point to a market where […]