Latest news with #ShuliRen
Bloomberg
9 hours ago
- Entertainment
- Bloomberg
Delulu Over Labubu? The Market Has Its Say
Save This is Bloomberg Opinion Today, a dramaturgical dollhouse of Bloomberg Opinion's opinions. Sign up here. I've avoided the global Labubu phenomenon for months, even since I saw the ugly creatures pop up on the social media feeds of addled influencers. But now the ever-astute Shuli Ren has taken note of the toy's enormous popularity and profitability— and how that very success betrays a weakness in the business plan of its Beijing-based manufacturer Pop Mart International Group Ltd. Before it's here, it's on the Bloomberg Terminal
Bloomberg
2 days ago
- Business
- Bloomberg
The Real Threat To the Labubu Economy
Labubu has become a global pop-culture sensation but other Chinese companies are looking to give Pop Mart's famous dolls a run for their money. Bloomberg Opinion columnist Shuli Ren told Insight with Haslinda Amin how the company can hold on to its monstrous market lead. (Source: Bloomberg)
The Star
06-06-2025
- Business
- The Star
Hong Kong has all but abandoned the dollar peg
Borrowing costs in Hong Kong have collapsed despite the dollar peg. — Bloomberg INTEREST rates in Hong Kong have been eerily low, raising the question of whether the city's dollar peg is now in name only. Hong Kong surrendered its monetary autonomy decades ago, thanks to a unique mechanism that restricts its currency fluctuation to a narrow band of 7.75 and 7.85 per dollar. That means the city's borrowing costs move in lockstep with those in the United States, which are dictated by the Federal Reserve's (Fed) rate policies. Currency traders have been staring at an anomaly. The one-month Hong Kong interbank offered rate or Hibor, has collapsed since early May. The gap with the US secured overnight financing rate, or SOFR, is at an unprecedented level of more than three percentage points. Investors are now asking what caused this divergence and whether Hibor will stay lower for longer. Borrowing costs in Hong Kong have collapsed despite the dollar peg. The first part of the story is well understood. Last month, the Hong Kong Monetary Authority (HKMA) purchased the greenback amid a global dollar rout to prevent its currency from strengthening beyond 7.75. HKMA's balance sheet ballooned while a flood of new local money pushed down Hibor. But such glaring bifurcation from SOFR should only be temporary. When local funding costs are significantly lower, traders can borrow Hong Kong dollars and sell them against the higher-yielding US counterpart. This, in turn, will lift the city's currency and rates over time. The fact that this rate gap has not narrowed shows there's little appetite to earn dollar carry trades. Wall Street banks are reinforcing their calls that the dollar will weaken further. In addition, there's talk of an Asian Financial Crisis in reverse, marked by a violent rally in local currencies such as the one Taiwan witnessed in early May. What if HKMA all of a sudden decides to move the currency peg to a stronger range? Gains from the carry trade would be instantly wiped out. Investors are right not to lose sight of the big picture. After all, Taiwan dollar's 8% melt-up last month proved painful for under-hedged insurers and exporters. On an economic level, this trend can be a huge boon for a financial hub that is trying to regain its footing. In recent years, businesses have complained about the dollar peg, saying that Fed rate hikes unnecessarily tightened the city's financial conditions and hamstrung its economic recovery. Hong Kong's anaemic residential real estate, for one, could see a rebound if the current trend continues. The prevailing new mortgage rate would be only 2.1%, versus 3.5% in early May. For a 30-year loan with a 70% loan-to-value ratio, monthly payments could be cut by about 15%, according to Bloomberg Intelligence. The value of underwater mortgages would fall as well. — Bloomberg Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. The views expressed here are the writer's own.
Bloomberg
20-05-2025
- Business
- Bloomberg
Bloomberg Daybreak Asia: APAC Markets Follow S&P Rally; CATL Debut Highlights Hong Kong Revival
Asian shares rose for the first time in four days, mirroring gains in the US that placed the S&P 500 index on the brink of a bull market. A regional stock gauge gained 0.5% after the S&P 500 index climbed for a sixth straight day. Shares in Hong Kong advanced 0.3%, with Contemporary Amperex Technology Co. Ltd. jumping 13% in its local debut. Treasuries were steady after whipsawing on Monday with the downgrading of US debt by Moody's Ratings. US equity-index futures edged down while gold dipped 0.1% as haven demand ebbed. We break down the market reaction with Rob Williams, Managing Partner and Chief Investment Strategist at Sage Advisory Services. Plus - could Hong Kong's status as a global financial hub may be entering a new phase? With major listings like CATL and Hengrui Pharmaceuticals drawing significant foreign inflows, Bloomberg Opinion columnist Shuli Ren joins to discuss how the city is offering Chinese firms a path to global capital while sidestepping geopolitical flashpoints.
Bloomberg
22-04-2025
- Business
- Bloomberg
Big Take Asia: The Chinese Toy Defying Tariffs
Chinese toy company Pop Mart is one of the hottest stocks this year thanks to the wild popularity of its Labubu dolls and other blind box toys. On today's Big Take Asia podcast, host K. Oanh Ha talks to Bloomberg Opinion's Shuli Ren about how the company's business model could help it ride out the trade-war storm.
