Hong Kong shares slip as tech stocks weigh on fears of e-commerce price war
China's blue-chip CSI300 Index rose 0.5 per cent by the lunch break, while the Shanghai Composite Index was up 0.1 per cent. Hong Kong's benchmark Hang Seng was down 1 per cent.
E-commerce giant Alibaba's Hong Kong-listed shares fell nearly 4 per cent after the company announced a 50-billion-yuan (RM29.5 billion) subsidy programme to merchants and customers on Wednesday.
'Alibaba's plan to offer US$7 billion of subsidies for food delivery and online retail implies competition is heating up again among China e-commerce companies,' said UBS analysts.
Shares of on-demand delivery giant Meituan dropped 2.5 per cent, while JD.com fell 1.7 per cent.
Meanwhile, a prominent Chinese Communist Party publication called for a crackdown on competition that fuels price wars and squeezes profits in various industries, criticising large companies and local governments for unfair practices.
China's services activity expanded at the slowest pace in nine months in June, as demand weakened and new export orders declined amid a fragile trade truce with the United States, a private sector survey showed on Thursday.
China's semiconductor shares were little moved after US chip design software developers said they had received notices lifting restrictions on exports to China.
The US cleared the way to resume ethane exports to China on Wednesday, sending letters to producers Enterprise Products Partners and Energy Transfer, rescinding a restrictive licence requirement put in place just weeks ago — a sign that the US-China trade truce was on track.
Healthcare shares led gains onshore, up 1.1 per cent, as Beijing ramped up policy support for the country's innovative drugs.
Biotech stocks also rose in Hong Kong, with Ascentage up 8.4 per cent. — Reuters
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Malay Mail
2 hours ago
- Malay Mail
New Home Sales and Returning Investors Help Drive Hong Kong Residential Market Transactions
Overall Office Leasing Activity Picks Up, but Grade A Office and Prime Retail High-Street Rents Remain Under Pressure Homebuyers and investors were both active in the Hong Kong residential market in Q2 2025, incentivized by a weakening HIBOR and rapid launches of new projects by developers at attractive prices. The total residential transaction number for the Q2 period is expected to rise by 30% q-o-q to reach 15,900 units. The Grade A office new-lease transaction area reached 1.2 million sf, the highest level since the COVID-19 pandemic period. However, the overall Grade A office rental level continued to decline, falling 1% q-o-q, resulting in an overall 3.4% drop for the 1H 2025 period. Retail market sale performance has yet to demonstrate significant improvement despite an increase in visitor arrivals. High street vacancy rates generally trended upwards across core districts in Q2, weighing on overall rental levels. Nevertheless, a notable number of new leasing transactions were recorded, reflecting an ongoing "tenant reshuffling" in the market. Grade A office leasing market: New lease area reached 1.2 million sf, the highest level since the COVID-19 period Chart 1: Rents of Grade A offices in Hong Kong Retail leasing market: Retail sales continued to contract despite improving tourist arrivals, while high street rents remained under pressure Chart 2: High street retail rents in prime districts in Hong Kong Residential market: L ower HIBOR and active new launches drive transactions; home prices stabilize in Q 2 Chart 3: Number of residential sale & purchase agreements HONG KONG SAR - Media OutReach Newswire - 3 July 2025 -Global real estate services firm Cushman & Wakefield today held itspress conference. The one-month Hong Kong Interbank Offered Rate (HIBOR) has been gradually softening since May, resulting in lower mortgage rates. Coupled with developers actively launching new residential projects at competitive prices, momentum in the primary residential market remained strong in the period. Improved rental yields also encouraged investors to re-enter the housing market, supporting monthly transaction volumes that exceeded 5,000 cases in the Grade A office sector, net absorption remained positive in Q2, with Hong Kong Island showing greater resilience. However, high availability and an abundant future supply pipeline continued to weigh on rental performance. In the retail sector, despite a steady rise in visitor arrivals, retail sales have yet to show notable improvement. Vacancy pressures persisted, leading to a general downward trend of high street retail rents during Hong Kong Grade A office market witnessed accelerated leasing momentum in Q2 2025, underpinned by relocation and expansion activities from the banking & finance and insurance sectors, The new leased transaction area for Q2 2025 reached 1.2 million sf, the highest quarterly level since Q3 2019. Several big-ticket deals were recorded, including Jane Street's pre-commitment of more than 207,000 sf at Site 3 at the Central Harbourfront project. The overall office availability rate remained largely stable at 19.3% in Q2, while quarterly positive net absorption slowed, dropping almost 50% to record 71,400 sf. With the new supply pipeline remaining abundant, the overall Grade A office rental level continued to trend down, dropping 1% q-o-q in Q2, contributing to an overall 3.4% drop for the 1H 2025 "In the 1H 2025 period, the Hong Kong Stock Exchange is expected to rank first globally in terms of funds raised through the Initial Public Offering (IPO) market — reclaiming the top spot for the first time since 2019. With more Chinese mainland stocks expected in the pipeline, this should help support office market sentiment and stimulate downstream leasing demand, particularly in the banking & finance and professional services sectors. Despite the improving market sentiment, an ample new supply pipeline and high availability may continue to weigh on rental performance in 2H 2025, and we forecast the overall office rental to decline by 7%–9% throughout 2025."John Siu added, "According to Cushman & Wakefield's new What Occupiers Want 2025 report, the top three priorities shaping occupiers' leasing strategies are cost control, talent retention, and operational excellence. While occupiers remain cost-cautious, they increasingly recognize the importance of a healthy and engaging workplace in attracting and retaining talent. Against this backdrop, other than offering rental incentives, we encourage landlords to collaborate closely with occupiers to create unique and value-driven work environments, so as to stand out in today's highly competitive office market."For the January to May 2025 period, Hong Kong recorded more than 20 million visitor arrivals, growing 12% y-o-y. We believe this growth is supported by the opening of the Kai Tak Sports Park and the recent hosting of a range of mega-events at the venue. However, the rise in visitor numbers has not yet translated into stronger retail sales. From January to May 2025, total retail sales in Hong Kong amounted to HK$ 155.1 billion, reflecting a y-o-y decline of 4.0%. Visitor spending has become more cautious, with a growing preference for cultural experiences and value-for-money retail offerings. As a result, traditionally popular high-end retail categories have been most affected. Sales in the Jewellery & Watches and Apparel & Accessories sectors declined by 8.8% and 5.7% y-o-y, respectively. The Medicines & Cosmetics and Food, Alcoholic Beverages & Tobacco sectors recorded modest growth, rising by 3.4% and 2.7% y-o-y, rates generally trended upwards across core retail districts in Q2 2025. The vacancy rate in Causeway Bay showed the most notable increase to climb to 13.2%, from 5.3% last quarter. Vacancy rates in Mongkok and Central rose slightly q-o-q, to 9.5% and 8.6%, respectively, while Tsimshatsui remained stable at 9.4%. Retail leasing activity was most active in Mongkok in the Q2 period, supported by the district's relatively attractive rental levels and stable tourist street retail rents generally fell in Q2, in response to lifted vacancy pressure. Rents in Causeway Bay fell by 3.6% q-o-q, followed by Tsimshatsui and Mongkok at 3.4% and 1.7% q-o-q, respectively. Rents in Central rose slightly at 0.2% q-o-q, supported by resilient local demand. In the F&B sector, rents across districts recorded a mild decline on a q-o-q basis, within a 1% "The Hong Kong retail market is experiencing a reshuffling of tenants. Retailers and F&B operators that are promoting local culture, offering unique experiences, and offering high-quality services and products, will likely be favored by tourists and will be able to prosper in the market. In contrast, some traditional retailers will be forced out of the market due to their failure to adapt to the shifted consumption patterns. Nevertheless, leasing activity in core districts has remained active. The current attractive rental level is lowering entry costs for new market players, while benefitting more mass-market retailers aiming to enter high-street areas. Looking ahead, with the opening of the Kai Tak Stadium, we expect that the government will continue to promote mega-events and world-class concerts, in turn drawing more international visitors and tourism spending. We expect high street retail rents and F&B rents to remain largely stable in the 2H 2025 period, and to mildly correct in the range of -1% to -3% through 2025."Overall sentiment in Hong Kong's residential market continued to improve in Q2 2025. The decline in the HIBOR during the quarter, which remained at relatively low levels, helped reduce mortgage and entry costs, creating favorable conditions for homebuyers. At the same time, developers actively launched new projects with attractive pricing strategies, fueling strong activity in the primary market and sustaining high overall transaction volumes. According to Cushman & Wakefield estimates, the total number of residential sales and purchase agreements in Q2 is expected to reach approximately 15,900, representing a 30% q-o-q increase, reflecting the continued market purchasing "The positive market response to new launches between March and May supported monthly transaction volumes exceeding 5,000 units, indicating resilient end-user demand and contributing to home price stabilization. Based on data from the Rating and Valuation Department, the overall residential price index edged up by 0.5% between April and May, narrowing the first five months' decline to 0.9%. On the leasing front, the growing number of expats and non-local students, coupled with the traditional leasing peak season in May and June, drove the private residential rental index up by 0.67% m-o-m in May, resulting in a 1.4% increase over the first five months of 2025. Looking ahead, while global uncertainties persist and the sustainability of low HIBOR remains uncertain, a potential interest rate cut by the U.S. later this year could further support lower HIBOR levels, providing a positive narrative for the housing market. We maintain our earlier forecast that overall transaction volume will be similar to last year, with full-year home price fluctuations expected to remain within a ±3% range."concluded, "According to our tracking of popular housing estates, all market segments showed some improvement in Q2. Notably, City One Shatin, representing the mass market, recorded a 2.3% q-o-q sale price increase. Taikoo Shing, representing the mid-market, saw a modest 0.4% q-o-q rise, while Bel-Air, representing the luxury segment, saw sale prices decline narrowly by 2.5% q-o-q. Recently, some banks have relaunched mortgage cash rebate programs, effectively lowering the entry threshold and stimulating buying interest among prospective purchasers. Over the past one to two months, we observed an approximately 5% increase in mortgage inquiries compared to April. Among the newly signed provisional sale and purchase agreements, 60%–70% of transaction prices were 3% to 5% higher than their online valuations. These changes were most concentrated in properties priced at around the HK$10 million mark, and particularly in the HK$3– 4 million range, indicating a recovery in demand for small- to mid-sized units."Please click here to download 1: (From left to right), Senior Director, Valuation and Consultancy Services, Hong Kong, Cushman & Wakefield;, Managing Director, Head of Project and Occupier Services, Hong Kong, Cushman & Wakefield and, Executive Director, Head of Research, Hong Kong, Cushman & #Cushman&Wakefield The issuer is solely responsible for the content of this announcement. About Cushman & Wakefield Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In Greater China, a network of 23 offices serves local markets across the region. In 2024, the firm reported revenue of $9.4 billion across its core services of Valuation, Consulting, Project & Development Services, Capital Markets, Project & Occupier Services, Industrial & Logistics, Retail, and others. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit or follow us on LinkedIn (
Free Malaysia Today
2 hours ago
- Free Malaysia Today
Siemens says US has lifted chip software curbs on China
Siemens has received a notice from the US government saying restrictions on the export of chip design software to China have been lifted. (Siemens pic) BERLIN : Germany's Siemens has received a notice from the US government saying restrictions on the export of chip design software to China have been lifted, Bloomberg News reported, citing a statement from the tech company. Siemens has restored complete access to its software and technology for Chinese customers, Bloomberg reported yesterday. The German company and the US department of commerce did not immediately respond to Reuters' requests for comment. Earlier yesterday, the US sent letters to ethane producers to rescind a restrictive licensing requirement on exports to China imposed last month. Last week, the US and China resolved issues over rare earth mineral and magnet shipments to the US, settling a dispute that had undermined a trade deal reached in May. While the pair disputed rare earth trade issues, the US curbed aviation exports, including suspending licenses for GE Aerospace to ship jet engines for the C919 of Chinese airplane maker Comac. The US also suspended licenses for nuclear equipment suppliers to sell to Chinese power plants and restricted exports including from electronic design automation software makers Cadence Design Systems, Synopsys and Siemens EDA. China's commerce ministry said on Friday that following talks with the US, the countries have confirmed a framework under which China will review export applications for controlled items while the US will cancel corresponding restrictive measures. Last month, Synopsys resumed offering some services in China, easing a suspension it had implemented to comply with US export controls.
Free Malaysia Today
2 hours ago
- Free Malaysia Today
China leads a BRICS nations shift into solar power
China, India and Brazil have emerged as clean energy powerhouses. (Freepik pic) LONDON : China's vast clean-energy industry has spearheaded a BRICS solar-power boom, with the bloc accounting for more than half of global generation last year, according to a new report. Most BRICS countries remain major fossil fuel producers, but the group together produced 51% of the world's solar energy in 2024, up from 15% a decade earlier, energy research firm Ember said in the report. China accounted for the lion's share, and alone produced 39%, but India made up 6.3% and Brazil totalled 3.5%. The bloc – which emerged from a term coined to capture the economic potential of Brazil, Russia, India, China and later South Africa, has grown into a political forum to rival the G7 and others. Iran, Egypt, Ethiopia, the UAE and Indonesia are now members, with several partner states. (Saudi Arabia has been invited, but has yet to make a final decision.) China, India and Brazil have emerged as clean energy powerhouses, each claiming a top-five rank globally in solar generation last year, according to Ember. That growth is continuing. China's solar output increased 42% over the first four months of the year, while India and Brazil both notched up rises of more than 30%. China is also making the most of the combination between its technological expertise and tighter ties with the group, exporting US$9.4 billion worth of solar cells and panels to other BRICS members since the start of 2024, according to BloombergNEF data. Still, clean-energy leadership from founding members isn't trickling down to everyone – even with China's overseas investment clout. Indonesia and newest partner countries including Kazakhstan, Nigeria and Malaysia are currently building 25GW of new fossil fuel capacity, compared to only 10GW of clean power, researchers at Global Energy Monitor said in a report in April. More than 60% of that total under construction involved Chinese companies, as either developers or financiers.
