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HONG KONG, July 4 (Reuters) - Hong Kong chief executive John Lee said on Tuesday eight overseas-based Hong Kong activists who were issued with arrest warrants for alleged national security offences, would be "pursued for life". Hong Kong police issued arrest warrants for the eight overseas-based activists on Monday, accusing them of national security offences, including foreign collusion and incitement to secession, and offered rewards for information leading to their arrest. They are wanted under a national security law that Beijing imposed on Hong Kong in 2020. Both these countries have criticised the national security law for being used to suppress Hong Kong's pro-democracy movement. Chinese and Hong Kong authorities say the law has restored the stability necessary for preserving Hong Kong's economic success.

Persons: John Lee, Lee, Nathan Law, Anna Kwok, Finn Lau, Dennis Kwok, Ted Hui, Kevin Yam, Mung Siu, Yuan Gong, James, Hong Kong's, Hong, James Pomfret, Donny Kwok, Muralikumar Anantharaman, Raju Gopalakrishnan Organizations: Hong Kong, HK, U.S . State Department, Hong, Inter, Parliamentary Alliance, Thomson Locations: HONG KONG, Hong Kong, Hong, United States, Britain, Australia, Beijing, China

☆ Hong Kong May retail sales rise 18.4%, sees support from local consumption
▼ + stars: | 2023-07-03 | by ( ) www.reuters.com time to read: +3 min

The government launched a promotional campaign earlier in March called "Hello Hong Kong" to bring back tourists and businesses and also launched a "Happy Hong Kong" campaign in late May to boost local spending and the economy. "Retail sales should continue to improve in the coming months," a government spokesperson said. The city's industry body Hong Kong Retail Management Association launched "Happy Hong Kong Shopping Festival" from July 1 to August 31 with about 6,000 stores participating, offering discounts and other retail promotion to boost consumption. Among the arrivals, mainland Chinese visitors eased slightly to 2.29 million in May from 2.31 million in April, Hong Kong Tourism Board data showed. ($1 = 7.8342 Hong Kong dollars)Reporting by Donny Kwok and Twinnie Siu; Editing by Philippa FletcherOur Standards: The Thomson Reuters Trust Principles.

Persons: Donny Kwok, Twinnie, Philippa Fletcher Organizations: HK, Hong, Hong Kong Retail Management Association, Hong Kong Tourism Board, Thomson Locations: HONG KONG, Hong, Hong Kong, China, COVID

The total tax breaks will amount to 520 billion yuan, Vice Minister of Finance Xu Hongcai said at a press conference. The announcement follows a June 2 Cabinet meeting during which authorities said they would extend and optimise the tax exemption and study policies to promote NEV development. Analysts said the cap on the purchase tax exemption would help drive growth of cheaper models that are mainly produced by domestic firms rather than premium vehicles from foreign makers. NEV sales rose 10.5% in May from a month earlier, showed data from the China Passenger Car Association. The tax break was announced in 2014 and extended in 2017, 2020 and 2022.

Persons: Finance Xu Hongcai, Cui Dongshu, Li Auto, Warren, Berkshire Hathaway, Susan Zou, Qiaoyi Li, Liz Lee, Siyi Liu, Donny Kwok, Miyoung Kim, Christopher Cushing Organizations: China, Auto, Ministry of Finance, Finance, China Passenger Car Association, EV, HK, Reuters, Berkshire, Volkswagen, Analysts, Tesla, Rystad Energy, Thomson Locations: BEIJING, SHANGHAI, China, BYD, Beijing, Hong Kong

The total tax breaks will amount to 520 billion yuan, Vice Minister of Finance Xu Hongcai said at a press conference. The announcement follows a June 2 Cabinet meeting during which authorities said they would extend and optimise the tax exemption and study policies to promote NEV development. The tax break was announced in 2014 and extended in 2017, 2020 and 2022. NEV sales rose 10.5% in May from a month earlier, showed data from the China Passenger Car Association. They jumped 60.9% from a year earlier when COVID-19 curbs still roiled auto production and sales.

Persons: Finance Xu Hongcai, Cui Dongshu, Li Auto, Susan Zou, Qiaoyi Li, Liz Lee, Siyi Liu, Donny Kwok, Miyoung Kim, Christopher Cushing Organizations: China, Auto, Ministry of Finance, Finance, China Passenger Car Association, EV, HK, Reuters, Tesla, Rystad Energy, Thomson Locations: BEIJING, SHANGHAI, China, BYD, Beijing, Hong Kong

☆ China's Xpeng expands self-driving capability to Beijing, eyes wider expansion
▼ + stars: | 2023-06-16 | by ( ) www.reuters.com time to read: +1 min

HONG KONG, June 16 (Reuters) - Chinese electric vehicle maker Xpeng Inc (9868.HK) on Thursday expanded its self-driving capability to Beijing as part of the automaker's expanded launch of City NGP (Navigation Guided Pilot) across the mainland. City NGP is now available in Guangzhou, Shenzhen, Shanghai and Beijing, with plans to expand it to dozens of cities within this year, Xpeng said in a statement. Xpeng said the latest launch made the company China's first Advanced Driver Assistance System (ADAS) available in the urban areas of Beijing and applicable on the major ring roads and expressways. City NGP can be accessed on some Xpeng models including G9 Max, P7i Max, and the P5 P version, it added. Reporting by Donny Kwok; Editing by Stephen CoatesOur Standards: The Thomson Reuters Trust Principles.

Persons: Xpeng, P7i Max, Tesla, Donny Kwok, Stephen Coates Organizations: Xpeng, HK, Thomson Locations: HONG KONG, Beijing, . City, Guangzhou, Shenzhen, Shanghai, China

☆ Chinese automaker BYD reopens two Hong Kong showrooms after vandalism
▼ + stars: | 2023-06-14 | by ( ) www.reuters.com time to read: +1 min

[1/2] A woman walks past a splattered BYD store while police cordons are visible at the scene in Hong Kong, China June 12, 2023. REUTERS/Joyce Zhou/File PhotoCompanies BYD Co Ltd FollowHONG KONG, June 14 (Reuters) - Chinese automaker BYD Co Ltd has restarted operations at two showrooms and a service centre in Hong Kong after they were vandalised earlier this week, BYD's sole agent said in a notice on its website on Wednesday. Its showrooms in the districts of Wan Chai on Hong Kong island and Tsim Sha Tsui in Kowloon, as well as its service centre in Tin Shui Wai in the New Territories, had resumed normal operations, it added. JC Motor did not immediately respond to Reuters' request for comment on the cause and impact of the vandalism. Two BYD showrooms and a service centre in Hong Kong were daubed with red paint, while a car also rammed into the roller shutter at its Yuen Long showroom in the early hours of Monday, causing damage, police told Reuters.

Persons: Joyce Zhou, BYD's, Yuen Long, JC, Donny Kwok, Jacqueline Wong Organizations: REUTERS, BYD, Motor, JC, Reuters, Thomson Locations: Hong Kong, China, HONG KONG, Yuen, New Territories, Wan Chai, Sha Tsui, Kowloon, Tin Shui

REUTERS/Tyrone SiuHONG KONG, June 5 (Reuters) - The United Nations said on Monday it was "alarmed" by detentions in Hong Kong linked to the 34th anniversary of the Tiananmen Square crackdown, while China said the financial hub was moving from "chaos" to prosperity. China's Foreign Ministry said in a statement late on Sunday that "today's Hong Kong is moving from chaos to stability and prosperity along the right track of "one country, two systems". "External forces" including the United States should uphold international law and stop "futile political manipulation" over Hong Kong to contain China, a ministry spokesperson said. The Canadian consulate said on its Facebook that it joined the people of Hong Kong and others around the world in "remembering the violent crackdown against unarmed and peaceful citizens" on June 4, 1989. Hong Kong public broadcaster RTHK said that all 23 people detained on Sunday for breaching peace and public order offences were not arrested and were later released.

Persons: Chong Mui, Tyrone Siu, Farah, Stephen Coates Organizations: Police, REUTERS, United Nations, Hong Kong, Human, Twitter, United States Consulate, RTHK, Thomson Locations: Hong Kong, China, Tyrone Siu HONG KONG, Hong, Beijing, United States, Taipei, London , New York, Berlin, Victoria Park, Canadian, Canada

☆ Hong Kong c.bank raises interest rates after Fed hike
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +2 min

The Fed raised interest rates by a quarter of a percentage point and signalled it may pause further increases, giving officials time to assess the fallout from recent bank failures and monitor the course of inflation. HKMA said Hong Kong interbank rates, which have been rising over the past few months, will likely rise further with the Fed latest rate hike. The public should therefore carefully assess the interest rate risk when taking out mortgages or making other borrowing decisions. "After China and Hong Kong markets have returned to normalcy post COVID-19, investment sentiment in the real estate market has improved, consumption power has risen. The Hong Kong property market has rebounded by 5-6% year-to-date," Yue said, adding other economic factors also play a part.

☆ China developer Sunac shares plunge after year-long suspension ends
▼ + stars: | 2023-04-13 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, April 13 (Reuters) - Chinese property developer Sunac China Holdings Ltd's (1918.HK) shares fell 45% on Thursday morning after resuming trade following a suspension of more than a year as it looks to restructure its debt after a default. The share slump comes a day after the company said in a statement to the Hong Kong stock exchange that it was to resume trading and was implementing a debt restructuring plan. Shares were down by nearly 60% in pre-market trading but trimmed losses after the market opened. Sunac is among many Chinese developers that defaulted last year as the property sector reeled under a debt crisis. Earlier this month, the Hong Kong stock exchange cancelled the listing of Chinese developer Cinic Holdings after it failed to meet trading resumption requirements in the time allotted.

☆ Shares of China's SenseTime jump after it unveils new AI products
▼ + stars: | 2023-04-11 | by ( ) www.reuters.com time to read: +1 min

[1/2] The logo of SenseTime is seen at SenseTime office, in Shanghai, China December 13, 2021. REUTERS/Aly Song/File PhotoHONG KONG, April 11 (Reuters) - Shares of Chinese artificial intelligence (AI) company SenseTime (0020.HK) surged as much as 11% on Tuesday, a day after it unveiled a series of new AI-powered products as it joins a global race to dominate the sector. China's Alibaba Group Holdings (9988.HK) and Japan's Softbank Group Corp (9984.T) are both invested in the Chinese AI company. SenseTime's shares rose to as high HK$3.70, up 11.1% from its previous close but below its initial public offering price of HK$3.85 in December 2021. Alibaba's shares rose as much as 3.8%, while Softbank climbed 0.5%.

☆ Alibaba's breakup lifts hopes China's regulatory winter is thawing
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +6 min

The move represented a light at the end of the tunnel for many investors who had seen a wave of regulatory blitzes as a major cloud hanging over China's private sector. Reuters GraphicsAlibaba said on Tuesday it would split into six units - Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media and Entertainment Group. He was spotted on Monday in Hangzhou, home to Alibaba, just one day before the company announced the restructuring. Tencent Holdings Ltd (0700.HK), China's largest gaming company, saw shares rise as much as 5.1%. Alibaba's split may pave the way for other Chinese tech giants to undergo similar restructuring, CMC Markets analyst Tina Teng said.

☆ Alibaba's breakup plan lifts hopes China's tech crackdown is ending
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +4 min

The group's Hong Kong-listed shares jumped as much as 16.3%, tracking a 14.3% rally in its U.S.-listed shares overnight . Its e-commerce rival JD.com Inc (9618.HK) rose 7% and gaming giant Tencent Holdings Ltd (0700.HK) gained 5%. That compared with a 2.3% jump in benchmark Hang Seng Index (.HSI) and a 3.2% gain for the Hang Seng Tech Index (.HSTECH). Brian Tycango, who tracks China's tech sector at Stansberry Research, says that in addition to enabling higher valuations, the restructuring better protects individual divisions from future government regulation. "Any new regulations will likely not affect the whole company now - just the particular division that that regulation covers," Tycango told Reuters.

☆ Alibaba's Hong Kong shares surge 16% on split-up plans
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +1 min

March 29 (Reuters) - Hong Kong shares of Alibaba Group (9988.HK) soared on Wednesday, marking a vote of confidence from investors after the company announced a major restructuring plan. Shares of Alibaba's e-commerce rival JD.com Inc (9618.HK) were up 7%, and gaming giant Tencent Holdings Ltd (0700.HK) jumped 5% on Wednesday morning. That compared with a 2.3% jump in benchmark Hang Seng Index (.HSI) and a 3.2% gain for the Hang Seng Tech Index (.HSTECH). One day before the re-organization was announced, Alibaba founder Jack Ma, who had been out of mainland China since late 2021, was spotted visiting a primary school in Hangzhou, the city where Alibaba is headquartered. Reporting by Josh Horwitz in Shanghai and Donny Kwok in Hong Kong; Editing by Muralikumar Anantharaman and Sam HolmesOur Standards: The Thomson Reuters Trust Principles.

☆ Hong Kong on watch for any 'spillover' from US regional banks
▼ + stars: | 2023-03-24 | by ( ) www.reuters.com time to read: +1 min

HONG KONG, March 24 (Reuters) - Hong Kong needs to watch carefully for any further "spillover" from U.S. regional banks, although the city has very little exposure to the situation in European and U.S. financial institutions, the Hong Kong Monetary Authority said on Friday. "The recent events in the U.S. and Europe have very little impact on Hong Kong," Yue said. "The situation is largely stabilised, but we still need to watch whether there will be further spillover, especially to the other U.S. regional banks." Hong Kong and global banks needed to be prepared for any further volatility in the market, he added. Reporting by Donny Kwok and Anne Marie Roantree; Editing by Jacqueline Wong and Christopher CushingOur Standards: The Thomson Reuters Trust Principles.

☆ Hong Kong central bank raises policy rate after Fed hike
▼ + stars: | 2023-03-23 | by ( ) www.reuters.com time to read: +1 min

HONG KONG, March 23 (Reuters) - The Hong Kong Monetary Authority (HKMA) on Thursday lifted its base rate charged through the overnight discount window by 25 basis points to 5.25%, hours after the U.S. Federal Reserve delivered a rate rise of the same margin. Hong Kong's monetary policy moves in lock-step with the U.S. as the city's currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar. The Federal Open Market Committee policy statement also said the U.S. banking system was "sound and resilient". "It is too soon to assess how much this will further affect economic activities and influence monetary policy." The financial and monetary markets of Hong Kong continued to operate in a smooth and orderly manner, despite the volatility of overseas markets, and Hong Kong dollar interbank rates might remain at elevated levels for some time, the HKMA added.

☆ China Evergrande's EV unit warns it may halt production amid funds shortage
▼ + stars: | 2023-03-23 | by ( ) www.reuters.com time to read: +2 min

The EV manufacturing unit of the embattled developer China Evergrande Group (3333.HK) said it was aiming to cut costs through measures such as reducing staff numbers and improving management efficiency. "In face of the inability to obtain additional liquidity, the Group is at risk of discontinuing production," it said. Under that plan, the cumulative unleveraged cash flow from 2023 to 2026 was expected to reach negative 7 billion yuan to a negative 5 billion yuan. The news comes after its parent, China Evergrande Group, on Wednesday announced plans for the restructuring of its $22.7 billion in offshore debt, which could set a template for distressed rivals in the country's property sector. The EV unit is key for the transformation plans of Evergrande, once China's top-selling property developer and now at the center of a deepening debt crisis.

☆ Hong Kong central bank raises rate after Fed hike
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: 1 min

HONG KONG, March 23 (Reuters) - The Hong Kong Monetary Authority (HKMA) on Thursday raised its base rate charged through the overnight discount window by 25 basis points to 5.25%, hours after the U.S. Federal Reserve delivered a rate hike of the same margin. Hong Kong's monetary policy moves in lock-step with the U.S. as the city's currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar. The Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point, but indicated it was on the verge of pausing further increases in borrowing costs after the recent collapse of two U.S. banks. The Federal Open Market Committee policy statement also said the U.S. banking system is "sound and resilient". Reporting by Donny Kwok; Editing by Himani SarkarOur Standards: The Thomson Reuters Trust Principles.

HONG KONG, March 13 (Reuters) - Top Chinese property developer Country Garden Holdings (2007.HK) said on Monday it expected to post its first net loss since listing in 2007 due to a sluggish property market and flagged a worse-than-feared drop in core profit. Country Garden said in a filing its estimated net loss would be between 5.5 billion yuan to 7.5 billion yuan ($799 million to $1.09 billion), down from a 26.8 billion yuan profit in 2021. It said core net profit was expected to be in the range of 1 billion yuan to 3 billion yuan, still positive but down sharply from 26.9 billion yuan in 2021 and well below analysts' forecasts for core profit around 9.3 billion yuan, according to SmartEstimate. Smaller developer Logan Group Co Ltd 3380.HK also said it expected to record a net loss of 7 billion yuan to 9 billion yuan for 2022. "We expect to see more profit warnings for both China property and property management ahead," said Raymond Cheng, head of China research at CGS-CIMB Securities Ltd.

☆ Cathay Pacific posts wider $834 mln loss in 2022, upbeat on outlook
▼ + stars: | 2023-03-08 | by ( ) www.reuters.com time to read: 1 min

HONG KONG, March 8 (Reuters) - Hong Kong's Cathay Pacific Airways Ltd (0293.HK) reported on Wednesday a loss of HK$6.55 billion ($834.42 million) for 2022, wider than the previous year's HK$5.53 billion loss, but was positive about the outlook, now that quarantining is no longer required. In January, the airline forecast a loss of between HK$6.4 billion and HK$7 billion ($815 million to $892 million) for the 12 months ended Dec. 31 after facing tough pandemic-related rules during the period. ($1 = 7.8498 Hong Kong dollars)Reporting By Anne Marie Roantree and Donny Kwok; Editing by Muralikumar AnantharamanOur Standards: The Thomson Reuters Trust Principles.

☆ Cathay looks to 'rebuild' after brutal pandemic losses
▼ + stars: | 2023-03-08 | by ( ) www.reuters.com time to read: +2 min

Cathay shares rose as much as 1.4% to HK$7.95 after the results were released, reversing morning losses and beating a 2.4% drop in the broader market (.HSI) as investors bet on a turnaround following heavy losses during the pandemic. "After three brutal years of the COVID-19 pandemic, we have finally entered into a new exciting phase, in which we will rebuild Cathay Pacific for Hong Kong." Cathay said it was operating about one-third of pre-pandemic passenger flight capacity by December and ended the year operating passenger flights to 58 destinations, double the 29 destinations the airline flew to in January 2022. It would operate at about 70% of its prepandemic passenger flight capacity by the end of 2023, with an aim to return to pre-pandemic levels by the end of 2024. It was operating about two-thirds of pre-pandemic cargo flight capacity levels by the end of 2022.

Cathay shares rose as much as 1.4% to HK$7.95 after the results were released, reversing the morning's declines as investors bet on a turnaround following heavy losses during the pandemic. "After three brutal years of the COVID-19 pandemic, we have finally entered into a new exciting phase, in which we will rebuild Cathay Pacific for Hong Kong." [1/5] A Cathay Pacific Airways Airbus A350-900 airplane approaches to land at Changi International Airport in Singapore June 10, 2018. Cathay said it was operating about one-third of pre-pandemic passenger flight capacity by December and ended the year operating passenger flights to 58 destinations, double the 29 destinations the airline flew to in January 2022. It would operate at about 70% of its pre-pandemic passenger flight capacity by the end of 2023, with an aim to return to pre-pandemic levels by the end of 2024.

"Most luxury retailers don't think Hong Kong will return to the dizzy levels of 2014 when the market here peaked," said Simon Smith, Savills' senior director of research and consultancy in Hong Kong. Morgan Stanley (MS.N) forecast Hong Kong visitor numbers this year will reach just 70% of 2018 arrivals. It estimates retail sales will grow 15%, holding at around 80% of retail trade from the pre-COVID year. That outstripped total Hong Kong retail sales from a peak hit in 2013 at HK$494.5 billion ($63.0 billion), according to the city's statistics department. ($1 = 6.8510 yuan)($1 = 7.8498 Hong Kong dollars)Reporting by Farah Master, Jessie Pang, Anne Marie Roantree, Angel Woo and Donny Kwok in Hong Kong, Sophie Yu in Beijing, and Mimosa Spencer in Paris; Writing by Miyoung Kim; Editing by Tom HogueOur Standards: The Thomson Reuters Trust Principles.

HONG KONG, Feb 22 (Reuters) - Hong Kong will give more handouts to consumers to support the city's recovery from a prolonged economic downturn induced by COVID-19 restrictions, Financial Secretary Paul Chan announced in the 2023/24 budget on Wednesday. "However, the economic recovery is still in its initial stage, and there is a need for our people and businesses to regain vigour." Hong Kong counts on increased cross-border business with mainland China, which has also given up enforcing COVID rules. Hong Kong usually runs balanced budgets or surpluses, since its pegged currency system commits it to fiscal prudence, but still has ample reserves. ($1 = 7.8488 Hong Kong dollars)Additional reporting by Jessie Pang and Donny Kwok; Writing by Marius Zaharia; Editing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.

Hong Kong will issue vouchers worth HK$5,000 ($637) per person to all adults this year, half the amount issued in 2022. Hong Kong usually runs balanced budgets or surpluses, since its pegged currency system commits it to fiscal prudence. "HAPPY" HONG KONG? He also said a "Happy Hong Kong" campaign would be launched for the general public, including gourmet food fairs and harbourfront carnivals that would help stimulate consumption. ($1 = 7.8488 Hong Kong dollars)Additional reporting by Jessie Pang; Writing by Marius Zaharia and James Pomfret; Editing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.

☆ Nike, Adidas shoe supplier Pou Chen to slash 6,000 jobs in Vietnam -sources
▼ + stars: | 2023-02-21 | by ( ) www.reuters.com time to read: +2 min

The firm's Pouyuen Vietnam factory will cut 3,000 jobs this month and not extend labour contracts for another 3,000 workers later this year, the officials said, declining to be identified because they were not authorised to speak to media. The Pouyen Vietnam factory supplies global companies such as Nike Inc. (NKE.N) and Adidas AG (ADSGn.DE) and is one the biggest employers in Ho Chi Minh City, with 50,500 workers. Pou Chen shares fell 1.2% in early afternoon trade in Taiwan in a broader market (.TWII) that was down just 0.1%. Telephone calls to a factory labour union official were not answered. The plan to cut jobs marks a reversal for the company that in 2021 faced a labour shortage and manufacturing disruption in Vietnam due to the coronavirus pandemic.

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