Afleveringen
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If you’re a regular user on Chinese lifestyle sharing app Xiaohongshu, you might be baffled with a flood of English-language content, which only happened overnight.
Thousands of self-proclaimed “TikTok refugees” are flocking to Xiaohongshu, or RedNote by US users, which surged to the top position on Apple’s US App Store on Tuesday, as TikTok faces a potential ban in the US.
Data research firm Sensor Tower showed that Xiaohongshu's US downloads surged more than 200 percent year-on-year this week and 194 percent last week. And the number is growing by the day.
As many US users are feeling that TikTok’s days are numbered and could be deleted from US app stores, they are looking for the next place to go. Hence an intriguing internet spectacle emerges.
Why Xiaohongshu?
Over the weekend, thousands of people began swarming to Xiaohongshu, which is known in China as a platform for travel and lifestyle content.
The newcomers, who refer to the app as the Chinese version of Instagram, are relying on translation tools to navigate Xiaohongshu’s mostly Chinese ecosystem.
Some say they are hoping to rebuild communities they had on TikTok, while others say they joined the app out of spite and to undermine the US government’s decision to ban TikTok over concerns that “the Chinese government could use the app to surveil Americans.”
The US Supreme Court is expected to decide whether the app can continue operating in the country before the January 19 deadline. TikTok plans to shut its app for US users from Sunday, unless the Supreme Court moves to block it, sources familiar with the matter said on Wednesday.
The TikTok ban might have catapulted Xiaohongshu to the center of attention in the US, but the app has been successful for a long time in China.
Originally launched in 2013, the Shanghai-based company has operated one of the most, if not the most, trendy platforms in China over the past few years and boasts over 300 million monthly active users and surpassed US$1 billion in profit in 2024.
To put it simply, it’s the hottest app in China that non-Chinese people might have never heard of before.
It also has a sizable following among Chinese-speakers outside of the country, ranging from Chinese students overseas to Chinese-speaking communities in Malaysia. Restaurants, tourist hot spots, and travel companies around the world have started noticing the app because of how many Chinese tourists heavily rely on it for local information and recommendations shared by fellow Chinese people.
When these American TikTokers started looking for alternatives, Xiaohongshu offered a cozy yet exciting new home. It's like walking into a new coffee shop that has the same warm, inviting smell as your old favorite. The video interface on Xiaohongshu, with those nifty like, save, and comment buttons on the right side, bears a striking resemblance to Douyin, TikTok’s Chinese twin. Plus, the graphic and text-heavy community is somewhat similar to Instagram, another platform they were familiar with. So, it was easy for them to jump right in and start exploring.
Why not going back to Facebook or Instagram, you might wonder. One American user explained in his video that one of the things that they liked about TikTok was the authentic engagement from other users and they felt comfortable to put themselves into the videos they are sharing. They feel the same with RedNote.
“Instagram has always been a place that feels very manufactured, very fake. It’s a very toxic place. And Facebook is just where your grandparents share AI generated images of Jesus,” he said. The post has garnered over 76,500 likes as of today.
The great cross-pacific chatfest: Cat tax, English corner and more
The sudden migration of US users to Xiaohongshu has created an unlikely platform for Chinese and American users to interact with each other.
Many of the newcomers are apologizing for not knowing Putonghua and paying the "cat tax" to stay here. But Chinese Xiaohongshu users are fascinated by the influx of new voices. Most of them, especially those who speak English, are extending a welcoming hand, liking the videos posted by TikTok refugees and following their accounts. Some are taking the time to try to explain how the app works to people who find it hard to navigate due to the language barrier on the comment section.
This has ignited a vibrant and uproarious cross-cultural conversation bonanza on Xiaohongshu. American and Chinese netizens are colliding in the most delightful way, turning the platform into a global playground of ideas, laughter, and shared experiences.
"This could be a historic moment," one Chinese user commented. "It feels like so much has changed in an instant. Ordinary people from our two countries have never really connected before ... I hope everyone can take this brief chance to engage in meaningful exchanges of ideas.”
And vice-versa. An American user posted a cute video of her dog wearing a Chinese-style outfit, captioned “My best attempt at Chinese.” The comments were flooded with Chinese netizens not only complimenting the adorable pooch but also patiently correcting her Chinese.
Some Chinese users even seized the opportunity to ask for help with their English homework in a viral post that garnered over 2,000 likes. Both English and Chinese livestreaming “study groups” have sprung up all over the platform, with natives speakers helping out each other in an unprecedented wave of language learning.
These spontaneous interactions are not just random conversations. They are building bridges between two cultures, one comment at a time, and making Xiaohongshu a truly unique and special place in the social media universe.
Can Xiaohongshu handle this tsunami of traffic?
So far, Xiaohongshu has been riding this wave of new users like a pro surfer catching the biggest wave of the season, as the app has shot to the top of the free chart in the Apple App Store in the US and the keyword “RedNote” has seen a meteoric rise in Google search trends.
Companies that have a stake in Xiaohongshu, like those in the e-commerce and marketing sectors, are probably doing a little happy dance as their stock prices get a healthy boost.
On Wednesday, more than 10 companies that do business directly or indirectly with Xiaohongshu hit their daily limits on multiple stock markets. The standouts included Hangzhou Onechance Tech Corp, an e-commerce service provider in the A-share market, and Sunwave Communications, a wireless communication technology provider.
But let’s not get too exited about what’s going on. Can Xiaohongshu handle this sudden shoot to stardom? Or is the influx of English-speaking users really what the app wants?
First up, content management is like trying to herd cats. With users from different legal and cultural backgrounds, Xiaohongshu has to walk a fine line. What might be acceptable in the US might not fly in China and vice versa. The platform needs to find a balance that respects everyone's values while keeping the content engaging.
Second, it’s still early to tell if Xiaohongshu’s sudden rise to fame is going to fade soon. At least so far, pettiness and revenge appear to be the biggest motivation for people to learn how to navigate Xiaohongshu, which is overwhelmingly used by Chinese-speaking people and was not designed with English-speaking users in mind. “I have no idea what I’m doing here. I can’t even read the rules,” one TikTok refugee who goes by “Elle belle” said in a post on the app.
Indeed, Xiaohongshu isn’t actually designed for English speakers, while TikTok isn’t in China at all. One of the app’s key features is its content algorithm, which focuses on user interests rather than the people they follow. Some users say this fosters more original content and reduces the dominance of powerful influencers.
The company behind the app, Xingin Information Technology, was founded by Charlwin Mao and Miranda Qu and is headquartered in Shanghai. And TikTok is owned by Chinese internet company ByteDance and was tailored for a global audience. TikTok is also not accessible in China, where a sister app, Douyin, serves the domestic market.
But earlier this month, Xiaohongshu revamped its video playback interface, repositioning interaction buttons and making its design increasingly similar to Douyin.
Finally, the business model needs a bit of a tune-up. American users have different consumption habits compared to their Chinese counterparts. In July 2024, Ke Nan, the COO of Xiaohongshu, positioned the app to be a lifestyle e-commerce platform. It needs some time to see whether the newcomers can really integrate into the app’s ecosystem when the initial freshness and excitement have passed before new opportunities emerge.
In the long run, Xiaohongshu still needs to find a way to get along with the newcomers. What's even more critical is how it capitalizes on this opportunity to sustain international users over the long term and reshape the global social media landscape.
The TikTok refugees' journey to Xiaohongshu has been one wild ride. It's a story of unexpected connections, cultural exchanges, and a platform's struggle to keep up with its newfound fame. Whether Xiaohongshu will be able to turn this tidal wave of traffic into a longterm success story remains to be seen.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
Chinese localities roll out 2025 plans, with new quality productive forces in focus to fuel economic growth;
China's trade-in program boosts consumer goods sales by over 1.3 trillion yuan.
Here’s what you need to know about China in the past 24 hours
Chinese provinces and cities, especially economic powerhouses, have rolled out their economic work plans for 2025, with new quality productive forces, as well as scientific and technological innovation, in focus to boost high-quality growth.
South China's Guangdong Province on Wednesday released its 2025 Government Work Plan, focusing on 12 major tasks. These include the consolidation and enhancement of Guangdong's leading position in manufacturing, the building of a modern industrial system and the development of new quality productive forces, in accordance with local conditions.
According to the Government Work Plan, Guangdong will accelerate the development of emerging and future industries, as well as the transformation and upgrading of traditional industries.
Efforts will be put into emerging industries such as ICs, new-energy vehicles (NEVs), AI, the low-altitude economy, new materials and biopharmaceuticals. Guangdong will cultivate future industries such as bio-manufacturing, quantum technology, embodied intelligence and 6G.
The province also vowed to advance the construction of pilot cities for intelligent connected vehicles, while improving the systems for low-altitude smart logistics, urban air transportation and emergency air rescue.
Guangdong's leading position in manufacturing is evident from signs of progress in 2024. The added value of advanced manufacturing and high-tech manufacturing accounted for 56.7 percent and 31.6 percent, respectively, of the industrial output of enterprises above a designated size.
The production of NEVs grew by 43 percent, that of industrial robots by 31.2 percent and that of ICs by 21 percent, according to Guangdong's Government Work Report.
Guangdong's GDP in 2024 is estimated to have surpassed 14 trillion yuan, marking a new milestone as it becomes the first province in China to achieve this.
Shanghai, which delivered its Government Work Report on Wednesday, said it will strengthen scientific and technological innovation capabilities in frontier fields such as cell and gene therapy, brain-computer interfaces, 6G, quantum computing and fusion energy.
Shanghai's Government Work Report revealed that the scale of the municipality's three leading industries - integrated circuits, biomedicine and artificial intelligence - reached 1.8 trillion yuan in 2024. Expenditure on research and development accounted for 4.4 percent of the city's GDP, which hit 5 trillion yuan last year.
Beijing on Tuesday rolled out its 2025 work plan, proposing to focus on developing and expanding high-tech industries. To achieve this goal, Beijing will accelerate the construction of a global benchmark city for the digital economy, promote deep coverage of 5G networks, and establish a comprehensive pilot zone for the market-oriented allocation reform of data elements.
Next on industry and company news
The sales revenue of consumer goods under China's policy-backed trade-in program has surpassed 1.3 trillion yuan, data from China's Ministry of Commerce showed on Wednesday. Green and smart products are in high demand, with retail sales of new energy vehicles increasing more than 40 percent in 2024. The ministry said that the central government had earmarked 81 billion yuan for the consumer goods trade-in programs this year. On Wednesday night, the ministry released an announcement on trade-in programs for home appliances, which detailed 12 types of products, including refrigerators, washing machines, televisions, air conditioners and computers. Each subsidy should not exceed 2,000 yuan.
Tencent dismissed over 100 employees and handed more than 20 to authorities for alleged crimes, including commercial bribery, embezzlement, or other serious illegal acts last year, according to the Chinese tech giant's annual anti-fraud report released today.
Douyin denied rumor that it has opened registration to international users, media reported. Douyin complies with relevant laws and regulations and requires real-name identity verification for registration, according to informed sources. Douyin’s sister app TikTok is expected to be banned in the US from Jan. 19 if its owner ByteDance does not sell the short-video platform. As a result, many users with IP locations overseas recently started turning to Xiaohongshu, a Chinese social media platform known as RedNote overseas.
China's smartphone market rebounded last year after two years of falling shipments. Annual shipments increased 4 percent to 285 million units from 2023, driven by manufacturers' strategic investments and technological innovations, according to analyst firm Canalys today. Domestic brand Vivo led the market with 49.3 million shipments, up 11 percent year-over-year, capturing a 17 percent market share. Huawei ranked second with 46 million shipped units, a 37 percent year-over-year increase, representing a 16 percent market share. Apple secured third place, followed by Oppo and Honor in fourth and fifth positions, each of them holding a 15 percent market share.
Earnings reports express
China Merchants Bank and China Industrial Bank, two of China’s leading commercial banks, posted positive results for 2024 on Wednesday after major Wall Street banks reported second-highest profits in history. CMB expects its annual net profitto be 148.4 billion yuan, representing a year-on-year increase of 1.2 percent, while revenue stood at 337.5 billion yuan, a year-on-year decline of 0.47 percent. Notably, the bank’s fourth quarter revenue was 84.8 billion yuan, a year-on-year growth of 7.6 percent, reversing a five-quarter decline in revenue growth. CIB achieved a total profit of 87.12 billion yuan, a year-on-year increase of 3.31 percent. Its net profit stood at 77.2 billion yuan, up 0.12 percent.
Wrapping up with a quick look at the stock market
Chinese stocks rose on Thursday. The benchmark Shanghai Composite added 0.3 percent and the Shenzhen Component gained 0.4 percent. Hong Kong’s Hang Seng index and the TECH index both climbed 1.2 percent.
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Zijn er afleveringen die ontbreken?
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
China’s new bank loans in December beat forecasts as government support kicks in;
Guangdong targets 2025 GDP growth of around 5%.
Here’s what you need to know about China in the past 24 hours
Chinese banks extended 990 billion yuan in new yuan loans in December, up from November and outpacing analysts’ forecasts as government stimulus measures slowly spur credit demand.
Financial institutions offered 18.09 trillion yuan of new loans in 2024, according to data released by the People’s Bank of China on Tuesday. It was lower than the previous year’s volume of 22.75 trillion yuan, representing the first annual drop in 13 years.
Aggregate financing, a broad measure of credit, rose 32.26 trillion yuan, less than the 35.59 trillion yuan recorded in 2023, PBOC figures showed.
Broad M2 money supply grew 7.3 percent from a year earlier in December, faster than the 7.1 percent growth the month prior.
The narrower M1 money supply fell 1.4 percent in December from a year earlier, from a 3.7 percent drop in November.
Outstanding yuan loans grew 7.6 percent in December from a year earlier, slightly slower than 7.7 percent in November.
The data also showed that outstanding social financing stood at 408.34 trillion yuan at the end of last month, up 8 percent year on year.
Xuan Changneng, deputy governor of the PBOC, said at a press conference on Tuesday that China's overall monetary policy has yielded positive results in 2024. He highlighted that the year-on-year growth of social financing, the M2 and yuan loans surpassed the nominal economic growth rate.
Xuan also indicated that the PBOC will implement a moderately loose monetary policy this year. A comprehensive use of monetary policy tools, such as interest rates and the reserve requirement ratio, will be employed to ensure ample liquidity and an accommodative financing environment, he said.
Greater Bay Area, Greater future
China's manufacturing heartland Guangdong province has set a GDP growth target of about 5 percent for 2025, Guangdong Governor Wang Weizhong said Wednesday. Despite mounting external pressures and internal challenges, the GDP of the southern province was estimated to surpass 14 trillion yuan in 2024, topping the country for 36 consecutive years, said Wang as he delivered a government work report at the annual session of the Guangdong Provincial People's Congress. Total import and export volume has exceeded 9 trillion yuan, an increase of 9.8 percent, contributing 38.7 percent to the national increase. Shenzhen-Zhongshan Link opened to traffic in 2024, with average daily traffic volume over 80,000 vehicles. Traffic volume of Hong Kong-Zhuhai-Macao Bridge increased by 90 percent, with more than 4.5 million Hong Kong and Macao vehicles heading north. Guangdong's regional innovation capacity has ranked first in China for 8 consecutive years. The R&D expenditure of Guangdong reached about 510 billion yuan in 2024, accounting for 3.6 percent of its GDP.
Hong Kong recorded steady growth in visitor arrivals in 2024, the city’s tourism chief said on Wednesday, putting the number of whole-year visitor arrivals at close to 45 million. After the resumption of the multiple-entry Individual Visit Scheme (IVS), the number of mainland visitor arrivals in December exceeded 3.1 million, averaging over 100,000 people per day, which is 17 percent higher than the daily average in the previous month.
Next on industry and company news
China's second domestically-built large cruise ship completed hull assembly on Tuesday, marking the start of its rapid construction phase. The cruise is slated for delivery in 2026. From dock assembly to hull integration, the process took just nine months — two months faster than its predecessor, Adora Magic City. The hull of the ship measures 341 meters in length and 37.2 meters in width and it has been named Adora Flora City.
Moutai’s net profit rose 10.2 percent to 120.7 billion yuan last year from the prior one, while revenue jumped 13.3 percent to 187 billion yuan, the Chinese liquor giant said today. Investment in R&D climbed 11 percent, it added.
Jensen Huang has reportedly arrived in Shenzhen for employees’ annual Lunar New Year celebrations held at Nvidia’s Shenzhen base on Wednesday. Huang also planned to visit Shanghai and Beijing, media reported, citing people familiar with the matter. The chief of the US chip giant has embarked on a trip to China this week at a time when Beijing is investigating the company’s domestic presence and Washington is slapping new curbs on the sale of its AI chips abroad.
Manufacturing giant Foxconn and Shenzhen-based humanoid robot company UBTECH announced on Wednesday that the two companies will establish a strategic partnership to advance the integration of UBTECH's humanoid robots into Foxconn's intelligent manufacturing processes.
Chinese carmaker SAIC Motor launched three new electric models under its Maxus brand, the Dana V1, the V70, and the V90, in Israel yesterday. The Maxus brand debuted in the Israeli market in 2021.
Shanghai authorities had preliminary talks with Taylor Swift’s team about the possibility of her holding a concert in the city, Zhang Qi, deputy director of the Shanghai Municipal Bureau of Culture and Tourism, told media yesterday. “We are optimistic, there may be hope for this year,” he added.
Switching gears to financial news
The PBOC on Wednesday injected a net 958.4 billion yuan of cash via seven-day reverse repurchase agreements in daily open market operations, a near-historic amount of short-term funds into its financial system, dialing up liquidity support amid a cash squeeze with the new year holiday looming.
China's cross-border receipts and payments by non-banking sectors, including firms and individuals, rose 14.6 percent to a record high of USD14.3 trillion last year from the prior one, according to the State Administration of Foreign Exchange yesterday. China's commercial banks saw a forex settlement deficit of USD110.3 billion in 2024.
Wrapping up with a quick look at the stock market
Chinese stocks fell on Wednesday with the benchmark Shanghai Composite down 0.4 percent and the Shenzhen Component closing 1 percent lower, while Hong Kong’s Hang Seng index and the TECH index each added 0.3 percent.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
Spring Festival travel rush begins with record 9 billion trips expected;
China's NEV production and sales surpass 12 million each, leading globally in 2024 for the 10th year.
Here’s what you need to know about China in the past 24 hours
As the Spring Festival draws near, Chinese travelers packed into cars, trains and planes on Tuesday, kicking off the landmark chunyun, the world's largest annual human migration.
Chinese authorities expect an unprecedented 9 billion inter-regional trips during this year's chunyun, or Spring Festival travel rush. The 40-day travel period began on Tuesday and will continue through Feb. 22.
Over 510 million passenger trips will be handled by the country's railways during the period, with an average of 12.75 million trips daily, an increase of 5.5 percent compared with the previous year. About 10.3 million train trips are expected to be made on Tuesday.
A total of 75.74 million railway tickets had been sold as of 4pm on Sunday since the start of Spring Festival travel ticket sales on December 31, 2024, media reported.
China State Railway Group plans to operate more than 14,000 passenger trains daily, providing an additional 500,000 seats per day. Ahead of the Spring Festival travel rush, a total of 185 new Fuxing bullet trains had been put into service nationwide, capable of reaching speeds of up to 350 kilometers per hour.
Meanwhile, China's civil aviation sector is set to handle a record of 90 million passenger trips during the holiday travel season. The sector will operate an average of 18,500 flights per day, an 8.4 percent increase from 2024.
This year, road trips are also expected to dominate the annual travel rush, accounting for about 80 percent of all inter-regional journeys. An estimated 7.2 billion road trips are projected, with highways likely to experience record-breaking single-day traffic peaks.
As passengers have been packing their bags to embark on reunion trips filled with joy, observers predict that the upcoming holidays will see a consumption spree, which is set to provide a vivid display of the vitality and dynamism of "an economy on the move."
Bookings for domestic and overseas tours have also doubled year-on-year during the Spring Festival holidays, data from trip.com showed. In particular, bookings for trips to Hong Kong soared 73 percent year-on-year, while those to the UK, Spain, Italy, France and Iceland jumped 56 percent, 74 percent, 50 percent, 49 percent and 108 percent, respectively.
China recorded a total of 610 million entries and exits in 2024, marking a 43.9 percent year-on-year increase, according to the National Immigration Administration on Tuesday. The number of foreign nationals entering the country without a visa reached 20.115 million, presenting a year-on-year increase of 112.3 percent.
Greater Bay Area, Greater future
Hong Kong passport-holders visiting Saudi Arabia will be eligible for visa-on-arrival at designated ports, starting this Wednesday, Hong Kong Chief Executive John Lee Ka-chiu has announced. The new arrangement includes multiple entry visas with a maximum stay of 90 days. Meanwhile, visa-free stays for Saudi passport holders in Hong Kong will be extended from 30 to 90 days.
Next on industry and company news
China's new-energy vehicle (NEV) output and sales in 2024 each exceeded 12 million, topping global rankings for the 10th consecutive year, according to data released by the China Association of Automobile Manufacturers (CAAM) on Monday. In 2024, NEV production and sales reached 12.89 million and 12.87 million units, up 34.4 percent and 35.5 percent year-on-year, with sales accounting for 40.9 percent of total new car sales, up 9.3 percentage points from the previous year. NEV exports rose 6.7 percent to 1.28 million, maintaining global leadership.
China’s instagram-like app Xiaohongshu topped the most downloaded apps in the US as the TikTok ban closes. The social media platform, also called Red Note by US users, becomes the most downloaded free mobile applications in the United States in Apple’s App Store, according to the latest ranking. Shares in several marketing agencies related to Xiaohongshu, including BlueFocus, KAISA Jiayun Technology, Shunya International, and Insight Brand Marketing Group, surged over 10 percent today.
Leapmotor expects to have turned a profit in Q4 last year, achieving its single-quarter profit goal a year ahead of schedule, it said in an earnings forecast yesterday. If it hits the milestone, Leapmotor will be only the second Chinese NEV startup in the black after Li Auto.
Switching gears to financial news
China’s financial institutions offered 18.09 trillion yuan of new loans in 2024, according to data released by the People’s Bank of China on Tuesday. It was lower than the previous year’s volume of 22.75 trillion yuan, representing the first annual drop in 13 years.
Wrapping up with a quick look at the stock market
Chinese stocks surged on Tuesday, with the benchmark Shanghai Composite jumping 2.5 percent and the Shenzhen Component rising 3.8 percent. Hong Kong’s Hang Seng index also closed 1.8 percent higher, and the TECH index rallied 3.1 percent.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
China will allocate more forex to assets in Hong Kong, PBOC chief says at the Asian Financial Forum;
China's foreign trade hits new high in 2024.
Here’s what you need to know about China in the past 24 hours
China will significantly increase the proportion of the its foreign exchange reserves allocated to assets in Hong Kong, said People's Bank of China Governor Pan Gongsheng on Monday.
Speaking at the Asian Financial Forum, Pan outlined four key priorities to support Hong Kong's role as an international financial center, including enhancing financial market connectivity between the mainland and Hong Kong.
He also highlighted the importance of a thriving capital market for Hong Kong's financial ecosystem, with plans to collaborate on macro-prudential and financial stability measures. The central bank aims to facilitate more high-quality companies listing and issuing bonds in Hong Kong while deepening financial cooperation in the Greater Bay Area.
Hong Kong will launch a new yuan-denominated trade finance scheme and expand the hours and scope of its Bond Connect program for Chinese mainland investors, Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, said at the forum.
Beijing will support Hong Kong in the launch of the trade finance scheme using 100 billion yuan in currency swaps for one, three and six months, Yue told reporters on the sidelines of the forum.
The PBOC and the HKMA have a currency swap arrangement for a total 800 billion yuan.
Under the new facility, banks can exchange their Hong Kong dollars for yuan funding with the HKMA at interest rates linked to onshore rates, providing banks in the SAR with a stable source of relatively lower-cost yuan funds, Yue said.
The HKMA and the PBOC are also working to implement the linkage of the mainland’s Internet Banking Payment System and the SAR’s Faster Payment System.
This linkage can support residents in both places in making real-time, small-value, cross-boundary remittances, by entering the recipient’s mobile number or account number, the HKMA said, adding that some services are expected to be launched around mid-2025.
At the same forum, Hong Kong Chief Executive John Lee said the city plans to further boost competitiveness as an international asset and wealth management center, as well as exploring new opportunities including setting an international gold trading center.
The government is set to relax the requirements of the invest entrant scheme this March to attract more top-tier global businesses and talent and to expand joint asset projects with mainland financial markets, including strengthening Bond Connect trading, said Lee.
The Asian Financial Forum, organized by the Trade Development Council, drew about 3,600 business leaders, policymakers and specialists from more than 50 countries and regions to discuss ways for empowering the next growth engines of the world.
China's exports surged to a record high in 2024, providing a much-needed boost for the economy as the prospect of biting tariffs imposed by US President-elect Donald Trump looms. The total value of China's foreign trade reached a record high of 43.85 trillion yuan in 2024, marking a 5 percent year-on-year growth, statistics from the General Administration of Customs showed. China's exports amounted to 25.45 trillion yuan last year, reflecting a 7.1 percent year-on-year increase, while imports totaled 18.39 trillion yuan, marking a 2.3 percent rise compared to the previous year.
China will further implement the special campaign to stimulate consumption, actively expand imports and attract foreign investment this year, according to a national commerce work conference held in Beijing from Saturday to Sunday. The country will step up efforts to implement the consumer goods trade-in program. More diversified consumption scenarios will be created, and service and digital consumption will be promoted. In terms of foreign trade, China will actively expand imports, develop cross-border e-commerce and green trade, and promote trade digitalization. To attract foreign investment, China will expand voluntary and unilateral opening up in an orderly manner, give full play to the role of national economic development zones in attracting foreign investment, and improve services for foreign enterprises.
Next on industry and company news
BYD will release the Sealion 07 in Japan, its fourth model in the country after launching the ATTO3, the Dolphin, and the Seal since January 2023. The Chinese carmaker's sales in the Japanese market surged 54 percent to 2,223 units last year from the prior one.
The transaction volume of China's data market likely topped 160 billion yuan last year, up 30 percent from the year before, according to the National Data Administration. The number of data center racks in use exceeded 2.11 million by Sept. 30.
China’s Ministry of Education today said it plans to approve 14 new undergraduate colleges, including Fuyao University of Science and Technology. Established by Cao Dewang, chairman of Chinese glass firm Fuyao Group, the university is a non-profit, public welfare institution, with an initial investment of 10 billion yuan.
Air Serbia and Trip.com Group are expected to sign a memorandum of understanding (MoU) on Monday after a new route was launched. According to the MoU, besides cooperation in ticket distribution, other areas of collaboration will include jointly developing tourism routes and products, and promoting Serbian tourism resources and culture through the Trip.com platform to attract more Chinese tourists.
Switching gears to financial news
China today raised the macro-prudential adjustment parameter, a multiplier that decides the upper limit of outstanding cross-border financing available to an institution, from 1.5 to 1.75, effective immediately, according to the People's Bank of China and the State Administration of Foreign Exchange.
Wrapping up with a quick look at the stock market
Chinese stocks closed down on Monday with total turnover dropping below the 1-trillion-yuan mark since Sep 25. The benchmark Shanghai Composite dipped 0.2 percent while the Shenzhen Component ended flat. Hong Kong’s Hang Seng index also closed 1 percent lower, and the TECH index fell 0.9 percent.
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China's film industry closed 2024 with a total box office revenue of 42.5 billion yuan, according to data from the National Film Administration.
Compared with 2023's 54.9 billion yuan, box office revenue has slumped by almost a quarter. Of that, box office revenue of domestic films totaled 33.44 billion yuan, plunging 27.3% from 46 billion yuan in 2023.
The year was a roller-coaster ride, starting with an upbeat Spring Festival peak that reaped 8 billion yuan in takings, topping previous periods and accounting for nearly one-fifth of ticket revenue for 2024.
However, the May Day, summer vacation and National Day holiday periods, only slightly surpassed, or even fell below, earnings for 2023.
But it wasn't just about the money: 1.01 billion moviegoers flocked to the theaters, creating a wave of enthusiasm that swept across the nation.
Despite the revenue decline, the Chinese film market staged a vibrant show in 2024, bustling with activity and brimming with surprises.
Domestic films were the clear champions, gobbling up 78.68% of the total box office pie, which translated to a staggering 33.44 billion yuan. Among the over 70 films that breached the 100-million-yuan revenue mark, a whopping 55 were homegrown productions.
Comedy emerged as the darling of the 2024 film scene. The top three highest-grossing films, Yolo, Pegasus 2 and Successor, were all laced with comedic charm. Each of these films pocketed over 2.4 billion yuan, and together, they led the charge in a comedy-dominated year. The total box office of comedy films in 2024 was over 20 billion yuan, almost half of the entire market share.
Unlike 2023, where all 10 of the highest-earning films were Chinese titles, two imported blockbusters secured spots in the top 10 list. Godzilla X Kong: The New Empire took ninth position, while Japanese animation legend Hayao Miyazaki's The Boy and the Heron, which won an Oscar winner for Best Animated Feature Film, claimed the 10th spot.
Overall, imported films experienced a resurgence in China. Their box office revenue accounted for 21.3% of total earnings, and was the highest share by foreign films in five years. Hollywood scored commercial success with space thriller Alien: Romulus, superhero film Venom: The Last Dance, the Marvel action-comedy Deadpool & Wolverine, and the sci-fi epic Dune: Part Two.
New Tricks in the Cinema Bag
The integration of other forms of entertainment into cinemas emerged as a key trend in 2024. Events such as "cinema + sports" and "cinema + concerts" gained traction, transforming theaters into multi-function venues.
During the Paris Olympic Games in the summer of 2024, over 800 theaters hosted 2,300 viewing events, drawing 56,000 attendees and generating 2.4 million yuan in ticket sales, with the single day box office for the table tennis mixed doubles final hitting 1.12 million yuan.
Similarly, concert films like Taylor Swift: The Eras Tour brought fans together for immersive experiences. For many, the cinema's high-definition screens and powerful audio systems offered a compelling alternative to live concerts, combining convenience with emotional resonance.
Wanda Cinema, not to be left behind, ventured into uncharted territory by collaborating with game IPs like "League of Legends" and "Genshin Impact" to livestream game competitions, concerts, and even New Year's Eve countdowns. These innovative moves were like a breath of fresh air, redefining what a trip to the cinema could be.
Yet another highlight of 2024 was the growing "film + tourism" trend, which bridged the gap between cinematic storytelling and real-world exploration. Iconic filming locations such as Shanghai, Chongqing, Hunan and Sichuan became popular tourist destinations, blending the charm of cinema with local culture.
For instance, White Snake: Afloat brought fresh perspectives to summer tourism in Hangzhou, Zhejiang Province while That Untold Story attracted honeymooners to the picturesque Yulong Snow Mountain in Yunnan Province. Meanwhile, Shanghai's "city walks" saw increased popularity following the release of Her Story.
This synergy between film and tourism not only enriched visitor experience but also boosted local economies and cultural heritage preservation.
A Challenging but Promising 2025
The decline in box office in 2024 was driven by multiple factors. These include insufficient supply of high-quality films, the absence of blockbusters, and the diversification of entertainment options such as short videos and the summer Olympic Games.
A total of 612 feature films were produced last year, down from 792 in 2023. The fall in offerings reflects ebbing investment and output capacity in the industry.
China’s drop in box office revenue is not a global anomaly, as in the United States, the world’s largest movie market, receipts were down 5.6% year-over-year. According to ProdPro, which tracks production data, the number of projects actively filming fell by 17% globally in July to September 2024, compared to the same period in 2022, as the industry continues to reel from the impact of 2023’s disruptive Hollywood strikes.
Theaters are struggling around the world as people opt to watch more movies at home and new phenomena, like so-called microdramas — minute-length vertical shows released episodically— gain popularity.
In a year filled with challenges for the film industry, China once again underscored its crucial role by contributing over 20% of global box office in 2024, enhancing its status as the second-largest international movie market.
Construction of cinema facilities also surged ahead. A total of 4,658 new screens were installed in 2024, catapulting the country's total to 90,968, the highest amount in the world.
The box office would probably still continue to grow over the next few years “due to the enormous size of China’s population”, according to USC’s Fenton.
As the curtains closed on 2024, all eyes were on the 2025 Spring Festival film schedule. Six exciting films were already lined up for release, creating a palpable sense of anticipation. The fantasy epic Creation of the Gods II: Demonic Confrontation and martial arts fare The Legend of the Condor Heroes: The Great Hero, both set to be released during the peak Lunar New Year season at the end of January, could revive box office sales.
Box office growth in 2025 will depend on boosting high-quality content and attracting more audiences back to theaters. The market is confronted with a generation of young audiences who are more accustomed to consuming video content on the internet. Chinese filmmakers should refine their storytelling skills and elevate their artistic creations to produce higher-quality work, film critics noted.
As the world film industry celebrated its 130th anniversary and the Chinese film industry its 120th anniversary in 2025, the stage was set for more cinematic magic, innovation, and record-breaking moments in the Chinese film landscape.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
China’s December CPI rises 0.1% year-on-year, while PPI down 2.3%;
PBOC will issue bills worth 60 billion yuan in Hong Kong on Jan 15.
Here’s what you need to know about China in the past 24 hours
China's consumer prices increased modestly in December while factory-gate prices saw a slowdown in annual declines, official data showed on Thursday.
The country's consumer price index, a main gauge of inflation, rose by 0.1 percent year-on-year in December after a 0.2 percent rise in November, the National Bureau of Statistics said. China's full-year inflation rises 0.2 percent in 2024, in line with the previous year's pace.
Within the CPI, food prices dropped 0.5 percent year-on-year in December versus a 1 percent annual growth in November. Meanwhile, non-food prices posted a 0.2 percent rise compared with a year earlier in December.
On a month-on-month basis, the CPI remained unchanged, following a 0.6 percent decline in November.
China's producer price index, which gauges factory-gate prices, dropped by 2.3 percent from a year ago in December, narrowing from a 2.5 percent fall in November.
On a month-on-month basis, the PPI dropped 0.1 percent in December after a 0.1 percent rise in November.
Dong Lijuan, an NBS statistician, attributed the year-on-year CPI growth to the smooth functioning of the consumer market, while the factory-gate prices declined due to factors including December being the traditional offseason for production for some industries and the international commodity price fluctuations.
Meanwhile, Zheng Shanjie, head of the National Development and Reform Commission(NDRC), China’s state economic planner, vows to expand domestic demand on all fronts this year.
In an article he published in the state-backed newspaper People’s Daily today, Zheng wrote that the NDRC would push the implementation of major national strategies and the construction of security capacity in key areas faster and step up efforts on the replacement of existing equipment and devices.
The NDRC would also implement special schemes to boost consumption to integrate consumption promotion with livelihood benefits closely. The goal is to maintain stable economic growth and stabilize employment and prices in general, said Zheng.
To achieve the target, the NDRC would strengthen counter-cyclical policies, put outstanding policies in place, and introduce timely and practical measures, Zheng added.
Greater Bay Area, Greater future
China plans to issue the biggest ever central bank bills in Hong Kong on Jan. 15. The People's Bank of China said Thursday it will issue 60 billion yuan worth of bills with maturity of six months. The move aims to enrich yuan-investment products with high credit ratings in Hong Kong and improve the yield curve of yuan in the region, the central bank said.
Hong Kong will send its largest-ever delegation of 74 athletes to the 2025 Asian Winter Games, which will be held in Harbin, Heilongjiang province, from Feb 7 to 14. They will compete in figure skating, short track speed skating, alpine skiing, speed skating, ice hockey, and for the first time, curling — a sort of bowls on ice.
Next on industry and company news
Tencent's instant messaging and social media app WeChat was removed from the United States Trade Representative's 2024 "notorious markets" list for the first time after being included twice in 2022 and 2023, according to the latest list released today.
The loss of China's civil aviation industry shrank 20.6 billion yuan last year from the one before, achieving an overall turnaround to profitability, according to official data. The number of international passenger flights increased to 6,400 per week in 2024, recovering to 84 percent of the pre-pandemic levels.
Alibaba Cloud launched its upgraded AI programming assistant Tongyi Lingma yesterday, aiding human programmers in completing multi-file coding tasks through conversational collaboration with the support of VS Code and JetBrains IDEs development tools.
TCL Technology Group is expecting its sales in North America to soar 30 percent in 2025 from last year, thanks to the recent restructuring of the firm’s supply chain and the optimization of its product portfolio, the chairman of the Chinese television manufacturer said. Last year, the firm’s US business should have grown by 20 percent, Li Dongsheng told media at the recent Consumer Electronics Show in Las Vegas.
BYD unveiled the Xia yesterday, its new multi-purpose vehicle part of its Dynasty series. Priced from 249,800 to 309,800 yuan, the auto comes with the DiPilot 100 intelligent driving assistance system as standard.
Merck Sharp & Dohme’s quadrivalent human papillomavirus vaccine has become the first jab against HPV that has been approved for use on men in China, the US pharmaceutical giant said yesterday.
Switching gears to financial news
Alibaba's Tmall has allied with UnionPay to ease users receiving government subsidies through the latter's Cloud QuickPass, becoming the first e-commerce platform providing such a service. This will be first tested in China's Sichuan province before expanding nationwide.
Bridgewater Associates widened its lead over global peers in China by around 40 percent last year, after its multi-asset strategy’s stable returns attracted more wealthy local clients in a volatile market. The US giant’s Shanghai-based private fund management arm boosted assets under management to more than 55 billion yuan as of Dec. 31, media reported today.
Wrapping up with a quick look at the stock market
Chinese stocks closed mixed on Thursday. The benchmark Shanghai Composite slid 0.6 percent while the Shenzhen Component gained 0.3 percent. Hong Kong’s Hang Seng index dipped 0.2 percent while the TECH index edged up 0.1 percent.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
China will boost funds from treasury bonds to support trade-in program;
More than 3,600 global business leaders are attending Asian Financial Forum in HK next week.
Here’s what you need to know about China in the past 24 hours
China will expand the scope of consumer goods trade-in program, and increase funding support for equipment upgrades through loan interest discounts, the country's economic planner said on Wednesday, as the world’s second-largest economy is deepening efforts to boost domestic demand.
The total scale of the ultra-long-term special treasury bonds to support the replacement of existing equipment and devices will “increase significantly” compared to last year, the National Development and Reform Commission said on Wednesday.
Support will be expanded to cover more areas including electronic information and protected agriculture, with focuses on high-end, intelligent and green equipment, it said.
In 2024, China allocated 300 billion yuan out of the proceeds from the ultra-long-term special treasury bonds to subsidize the trade-ins.
To ensure the delivery of subsidies, the central government has recently earmarked 81 billion yuan for the consumer goods trade-in program this year, said the Ministry of Finance.
Meanwhile, in response to actual needs, the number of air conditioners eligible for subsidies per consumer will be increased from one to three.
The state economic planner also introduced that home appliances enjoying subsidies for trade-in, increased from 8 categories last year to 12 categories, with a maximum subsidy of 20 percent of the sales price for a single piece.
The NDRC also repeated that the subsidies for new digital products such as smartphones will be rolled out again, to “especially meet the public demand”.
Each consumer will be offered a subsidy of 15 percent of the selling prices when buying smartphones, tablets and smart bracelets, while the eligible products should not be sold higher than 6,000 yuan per piece. Each consumer is allowed to only one piece of each eligible product type, with the subsidy of up to 500 yuan per device.
Greater Bay Area, Greater future
More than 3,600 financial and business heavyweights from around the world will gather in Hong Kong to attend the 18th Asian Financial Forum (AFF) on Jan 13 to14 to explore global investment trends, challenges and opportunities. Themed “Powering the Next Growth Engine”, the region’s first major international business gathering in 2025 will focus on analyzing business growth points, artificial intelligence (AI), the establishment of family offices, green and sustainable development, and Islamic finance, with the aims of stimulating growth momentum and promoting global cooperation amid a shifting global economic landscape.
China’s State Council has given the all-clear for a new international airport in Guangdong to ease congestion and help the region become an international cargo hub. The new facility will serve cities west of the provincial capital Guangzhou, diverting flights from three other airports in the Pearl River Delta area. The Pearl River Delta Hub (Guangzhou New) Airport, slated to start operations in 2028, plans for a yearly throughput of 30 million trips in 2035 and twice that flow by 2050, according to the province’s official website.
The Airport Authority of Hong Kong sold HKD18.5 billion of bonds in the largest-ever issuance in the financial hub’s local currency. The 3-year, 5-year, 10-year and 30-year notes are priced with yieldings of 4.05 percent, 4.1 percent, 4.25 percent and 4.5 percent, respectively, late Tuesday. The notes received HKD25.3 billion of bids, all from Asia, according to a person familiar with the matter.
Next on industry and company news
The Ministry of Natural Resources said Wednesday that China's lithium reserves have increased from 6 percent to 16.5 percent of the global total, propelling it from sixth to second place in the world rankings, after a world-class spodumene-type lithium belt spanning 2,800 kilometers in west China has been discovered.
China's parcel delivery shipments surged 21 percent to 174.5 billion last year from a year earlier, with revenue rising 13 percent to 1.4 trillion yuan, the State Post Bureau said today.
Xpeng AeroHT showcased a modular land aircraft carrier at the CES 2025. The flying car subsidiary of Chinese NEV startup Xpeng Motors is building a manufacturing base, with plans to begin mass production and delivery of its flying car next year.
The BYD Hefei, the firm's third car carrier, was delivered and set sail yesterday. The 199.9-meter-long and 38-meter-wide clean energy ro-ro ship features 7,000 standard parking spots and utilizes advanced LNG dual-fuel tech, cutting carbon emissions by 30 percent to support diverse shipping routes.
Alibaba’s e-commerce platform Taobao launched a “send gift” feature, following WeChat’s lead, allowing users to buy eligible products and gift them to others by sending a QR code. Recipients will have 24 hours to accept the gift before it expires.
Switching gears to financial news
China's foreign exchange reserves totaled 3.2024 trillion U.S. dollars at the end of December 2024, down by 63.5 billion dollars, or 1.94 percent, compared to the end of November last year, as the U.S. dollar index climbed while global financial asset prices declined last month.
Wrapping up with a quick look at the stock market
Chinese stocks ended mixed on Wednesday. The benchmark Shanghai Composite edged up 0.02 percent while the Shenzhen Component slid 0.5 percent. Hong Kong’s Hang Seng index dipped 0.9 percent and the TECH index lost 1.1 percent.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
The NDRC urges local governments to increase cross-regional market connectivity;
Chinese tech giants refute US “Section 1260H” list inclusion.
Here’s what you need to know about China in the past 24 hours
China’s state economic planner asked all local governments to act under the same standards to eliminate cross-regional restrictions in market entry, aiming to accelerate their integration into the unified national market and actively support its development.
The National Development and Reform Commission (NDRC) released a trial about “Guidelines for the Construction of a National Unified Market” in a briefing on Tuesday.
The move is part of the efforts to implement the key tasks outlined at the tone-setting Central Economic Work Conference held in December 2024, which emphasized the importance of formulating a guideline for building a unified national market.
The guideline outlined key measures including unifying the underlying institutions and rules of the market, improving the high-standard market infrastructure connectivity, building a unified market for factors and resources, advancing the high-standard integration of goods and services markets, enhancing fair and unified regulation, and curbing unfair market competition and improper intervention.
Among the proposed measures, the NDRC urged all regional governments not to use administrative and criminal means to intervene in economic disputes and shall not carry out law enforcement or exercise jurisdiction outside of their administrations, which would violate the law.
The NDRC has also requested that local governments should not restrict the free flow of commodities and production factors across regions, and should not set unreasonable limitations to exclude, restrict or prohibit local business entities from supplying commodities and services to other regions.
The local governments should also refrain from strengthening the protection of local products or specific products in the form of targeted subsidies, local recommendation catalogs, etc., as well as restricting the entry of products from other areas into the local market.
The NDRC also proposed to accelerate the development of a unified capital market and to strengthen information sharing with capital market-related institutions and interconnection with bank credit information.
Rescuers are braving freezing temperatures in combing through rubble in their search and rescue of survivors after a 6.8-magnitude earthquake jolted a county in southwest China's Xizang Autonomous Region on Tuesday morning. Ninety-five people have been killed and 130 others injured as of 4 pm today. The Finance Ministry has allocated 100 million yuan to support rescue, relief and rebuilding work in quake-stricken areas.
Greater Bay Area, Greater future
Hong Kong eased some requirements of its revived investor visa schemes to attract more millionaires, with measures effective from March 1. The government will allow the investment made by an applicant through a wholly-owned eligible private vehicle to be calculated into the amount of the required investment, the Financial Services and the Treasury Bureau and Invest Hong Kong announced on Tuesday. Officially launched in March 2024, the New Capital Investment Entrant Scheme raised the investment threshold to HKD30 million from HKD10 million before being suspended.
Shenzhen Airport’s passenger throughput reached 20,400 people on Dec. 22, setting a new single-day record high since the full resumption of border crossings after the Covid-19 pandemic, according to the city’s border inspection authorities yesterday. The passenger throughput at the airport doubled to a five-year high of 5.5 million last year from the previous one, ranking among China’s top airports.
Next on industry and company news
Chinese tech company Tencent Holdings on Tuesday refuted its inclusion on a US blacklist over allegations of aiding Chinese military, stating that the “inclusion on this list is clearly a mistake.” According to a document published by the US Department of Defense, it added Tencent Holdings, leading battery maker CATL and artificial intelligence software company SenseTime, among a number of other Chinese companies, to its “Section 1260H” list of firms allegedly linked to China’s military. SenseTime also expressed its strong opposition to the decision, saying that it is entirely unfounded and will not have a substantial effect on the company’s business. CATL also called the designation a mistake, saying it "is not engaged in any military related activities.” Chinese Foreign Ministry spokesperson Guo Jiakun today urged the US “to immediately lift its illegal unilateral sanctions and long-arm jurisdiction against Chinese companies” during a routine press conference.
Xiaomi raised the cash prize of its annual Million Dollar Technology Award to 10 million yuan and awarded it to the engineer team that developed HyperEngine V8s for the SU7 electric car, Chairman Lei Jun said today.
JD.Com launched a housekeeping business recruitment plan for 100,000 cleaning staff from hundreds of counties and thousands of towns in China, with plans to expand its housekeeping services to 100 cities and invest 1 billion yuan to improve workers' earnings and experience by the end of this year, the Chinese e-commerce giant said today.
Switzerland's Roche and other pharmaceutical companies are churning out their influenza drugs in China as a massive flu outbreak sweeps across the country during the cold winter months. Sales of flu drugs have soared more than two-and-a-half times in the last month on certain drug purchasing platform.
China's southeastern province of Fujian will reward its top travel agencies with up to 600,000 yuan each to boost tourist arrivals from areas such as the Hong Kong SAR and Taiwan province, as well as foreign countries. Local travel agencies that are among the top 10 in terms of inbound group tourists and show the fastest growth rates, can receive between 400,000 and 600,000 yuan in rewards, the provincial department of culture and tourism announced yesterday. Eligible agencies must also host at least 3,000 tourists annually and provide tours in foreign languages.
Wrapping up with a quick look at the stock market
Chinese stocks rebounded on Tuesday after losing for four straight sessions. The benchmark Shanghai Composite added 0.7 percent and the Shenzhen Component jumped 1.1 percent. While Hong Kong’s Hang Seng index closed 1.35 percent lower and the TECH index dipped 0.9 percent.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
Record-breaking travel reveals China's strengthened economic vitality;
China's central bank will issue the biggest batch of offshore yuan bills to defend exchange rate.
Here’s what you need to know about China in the past 24 hours
China witnessed a remarkable surge in both rail and air travel in 2024, fueled by vigorous economic activities and robust consumer spending.
The country's railway network handled a record 4.08 billion passenger trips in 2024, a 10.8 percent year-on-year increase, according to China State Railway Group.
Similarly, the latest data from the Civil Aviation Administration of China shows that air passenger trips are estimated to have hit a record 730 million in 2024, an 18 percent year-on-year increase.
This surge was partly driven by a growing thirst for leisure travel, with the tourism sector standing out as a bright spot of China's consumption in 2024, experts noted.
In the first three quarters of last year, China reported 4.24 billion domestic trips, representing a year-on-year increase of 15.3 percent. The total expenditure of domestic tourists amounted to 4.35 trillion yuan, up 17.9 percent year on year.
With improved infrastructure making various regions and lesser-known destinations more accessible, the shift toward off-the-beaten-path travel has gained momentum, drawing travelers in search of niche experiences.
Beyond the hustle and bustle of the domestic travel market, international travel also flourished last year, with a boom in both inbound and outbound tourism.
In early December, the Chinese leadership positioned "boosting consumption" as a key policy task for 2025 at a tone-setting conference, and called for the implementation of a special action plan to that end.
Looking ahead, this strong travel momentum is expected to carry through to the Spring Festival travel rush, a traditional peak period for China's transportation network. This year's travel rush will run from January 14 to February 22, which is poised to see a record-breaking 9 billion trips. Rail journeys and civil aviation passenger trips are projected to hit record highs of 510 million and 90 million, respectively.
To accommodate the mass movement of travelers, China's railway system announced a new operating plan on Sunday, adding 230 passenger trains to schedules across the country to bring the total to 13,028. Meanwhile, the civil aviation sector is set to handle an average of 18,500 flights per day during the Spring Festival travel rush, an 8.4 percent increase from 2024 levels.
Greater Bay Area, Greater future
New high-speed rail services linking Hong Kong with Xi'an and Wuhan, two major cities in the Chinese mainland, were officially launched on Sunday. A single trip in either direction takes under 11 hours, with other stations located in the provinces of Shaanxi, Henan, Hubei, Hunan and Guangdong. Trains departing from Wuhan take no more than five hours to reach Hong Kong.
More than 27 million inbound and outbound passenger trips were recorded through the Zhuhai port of the Hong Kong-Zhuhai-Macao Bridge in 2024, an increase of 72 percent year on year and a record high. The bridge handled more than 5.55 million inbound and outbound vehicle trips last year, up 71 percent and exceeding the 5-million mark for the first time.
Guangdong is expected to rank first in China in terms of foreign-invested enterprises. There are 215,100 registered foreign firms in the province by the end of 2024, a year-on-year increase of 8 percent, accounting for a quarter of the country’s total.
Next on industry and company news
Apple dropped the price of nearly all of its products, including the iPhone, iPad, and AirPods, for the first time this year after launching a New Year shopping event on its Tmall flagship store from Jan. 4 through Jan. 20. The iPhone 16 series was discounted by up to 1,000 yuan and its new price starts from 4,999 yuan.
Volkswagen China announced on Monday forging a partnership with Chinese electric vehicle (EV) manufacturer Xpeng to jointly build a fast charging network for running EVs in China. The project will feature more than 20,000 self-operated charging piles, covering 420 cities and regions across China, according to Volkswagen.
The Luxeed R7 has received 58,000 lock-in orders in the 100 days since its launch, Richard Yu, head of Huawei’s smart auto solutions unit, said on Weibo yesterday, adding the NEV model the Chinese telecoms giant co-developed with Chery Automobile "exceeded expectations.”
Foxconn, the Chinese supplier of Apple, will become the first non-US company to rank as the world's largest server vendor since 2018, a report by market research firm Omdia said yesterday. Foxconn's original design manufacturing direct-to-user business had "astronomical growth" last year thanks to surging demand for AI-optimized servers from major US cloud providers, it said.
Switching gears to financial news
The central bank will issue offshore Chinese yuan bills in Hong Kong this month, whose amount is estimated to be the largest-ever, to defend the falling exchange rate, media reported today, citing a source at the central bank. The new note issuance is in response to strong demand for high-grade yuan-denominated bonds by overseas investors, the person said. They will be newly issued this time to drain yuan liquidity from the market and will not be bills that are rolled over upon maturity. If there continues to be strong pressure on the yuan exchange rate, the central bank may issue even more offshore bills. The onshore yuan tumbled past 7.3 against the US dollar for the first time since November 2023 on Jan. 3 to 7.36 due to a new high set by the US dollar index the day before.
The Shanghai and Shenzhen stock exchanges recently held meetings with foreign institutions, both bourses said, assuring investors that they would continue to open up China's capital markets after fresh volatility in Chinese stocks in the first trading days of 2025.
Wrapping up with a quick look at the stock market
Chinese stocks closed mixed on Monday with the benchmark Shanghai Composite down 0.15 percent, while the Shenzhen Component gained 0.2 percent. Hong Kong’s Hang Seng index slipped 0.4 percent, and the TECH index ended 0.2 percentlower.
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Do you remember the heartwarming story of the “Little Clementines” from Guangxi who ventured into the snowy realms of Harbin, Heilongjiang earlier this year?
Dressed in their vibrant orange jackets, these southern children, known for their region’s famous citrus fruit, captured the hearts of the internet as they experienced the magic of snow and the warmth of the Northeastern hospitality.
Well, the “Little Clementines” are back, and this time, they’re ready to dive deeper into the winter wonderland that is China’s burgeoning ice and snow economy.
As the winter season arrives, 23 of these Guangxi cuties have embarked on another adventure to the Northeast, donning their signature bright orange puffer jackets. They’ve affectionately been dubbed “Little Clementines” by netizens, a nod to the common fruit from Guangxi, and their return has once again captured the internet’s attention.
From snow disco to ice slides, the children played in the Harbin Ice and Snow World, and their contagious laughers melt the hearts of netizens across the country who affectionately referred to them as “too cute to be true”.
According to data from the Harbin Sports Bureau, as of December 22, the number of visitors to Harbin Ice and Snow World has reached 106,000 in two days, showing a continuous booming trend.
As enthusiasm for winter sports surges, the knock-on effects for tourism, culture and equipment manufacturing are profound.
China recorded over 385 million winter leisure visits nationwide, a year-on-year increase of 38 percent, with related revenue up 50 percent.
Harbin, a traditional winter tourism hot spot, saw a 300% increase in visitors and a 500% increase in tourism revenue. The city is set to host the Asian Winter Games in 2025, promising another explosive season for the local ice-and-snow economy.
In addition, Harbin and other snow season tourist cities, known for being good at making guests feel at home, have tapped into the trend of “service-oriented consumption,” attracting spontaneous promotion from young people while increasing Harbin’s popularity on social media.
The heat and appeal brought by Harbin are radiating and spreading throughout the province. Data from Qunar show that Harbin’s hotel bookings have increased by more than 50% year-on-year, driving the booking volume in the province’s Daxing’anling to grow by 140% year-on-year.
Compared with Heilongjiang Province, which is rich in ice and snow sightseeing tourism products, Jilin Province has rich skiing resort resources. Meituan data show that since December, searches for “skiing” in Jilin has increased by 48% month-on-month.
To accelerate growth in the north-eastern region’s winter economy, the Chinese government has unveiled initiatives including establishing dedicated ice-and-snow holidays, increasing flight routes and optimizing visa-free policies, all aimed at attracting more domestic and international visitors.
Snow starts a gold rush
China’s winter economy is on a meteoric rise, transforming the country’s frosty frontiers into a playground for enthusiasts and a goldmine for investors.
According to a recent industry report, this ice-and-snow economy is expected to reach a staggering 970 billion yuan by 2024 and is projected to surpass the 1 trillion yuan mark in 2025. By 2030, the sector is forecast to balloon to 1.5 trillion yuan, as stated in China’s ambitious plan to boost its ice and snow economy.
Driven by the successful hosting of the Beijing 2022 Winter Olympics, China has unveiled an ambitious plan to grow its ice and snow economy, targeting winter sports, tourism, and equipment manufacturing as key drivers of economic growth.
The plan focuses particularly on the northern regions, including Beijing, Inner Mongolia, Heilongjiang, and Xinjiang, which are poised to become winter sports hubs. These areas will benefit from expanded training facilities, the establishment of elite winter sports centers, and the hosting of international winter events.
By investing in these locations, China aims to establish three to five globally recognized winter tourism destinations, positioning itself as a prominent player in the international winter tourism market.
China’s push for a winter economy is driven by several factors. For one thing, it’s about leveraging the country’s natural “cold resources” into a burgeoning “hot economy”. For anther, the winter sports industry saw a 16.3 percent increase in skier visits during the fiscal year ending on April 30, 2024, with 23.08 million visits recorded compared to 19.83 million in the previous year. This surge in interest reflects a broader trend and the potential for economic growth.
The proliferation of facilities has made winter sports more accessible than ever. Data from China’s General Administration of Sport show that the number of winter sports venues nationwide reached 2,847 by the end of 2023, marking a 16.11% increase year on year. Many of these facilities are nestled in southern regions, like Jiangsu, which hosts about 50 ice-and-snow venues covering over 640,000 square meters.
China’s winter sports equipment industry is also snowballing, driven by advancements in 5G, artificial intelligence, and virtual reality. The country now boasts a comprehensive suite of 15 categories of ice-and-snow equipment across the supply chain, from individual gear to venue equipment.
China’s winter economy is not just about sports; it’s a complete transformation of consumption patterns. This is more than just an economic boom; it’s a story of how a nation is turning the chill of winter into the heat of economic prosperity. And for millions “Little Clementines” or “Southern Potatoes”, it’s a story of how a simple love for snow is becoming a part of China’s economic narrative.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
Hotel searches for Japan soar after introducing 10-year visas for Chinese tourists;
China revises up 2023 GDP to 129.4 trillion yuan.
Here’s what you need to know about China in the past 24 hours
Chinese tourists' searches for Japanese accommodations have tripled following an agreement between the two nations to strengthen bilateral ties, including Japan's introduction of 10-year tourist visas.
Hotel searches for Japanese destinations grew threefold over the past week, according to data from online travel platforms.
The foreign ministers of China and Japan reached 10 key agreements yesterday, including enhanced tourism cooperation and new measures to promote bilateral travel.
Japan will extend the maximum length of multiple-entry visas from five years to 10 years, while the maximum stay for groups of tourists will also be increased from 15 days to 30 days. It follows China's decision to add Japan to its visa-free entry scheme last month, allowing visitors to stay for up to 30 days.
Visa experts at Ctrip predict increased Chinese tourism to Japan following the relaxed visa requirements and extended group visa durations. The new 10-year visa is expected to particularly benefit high-income travelers.
Flight searches on Qunar for Tokyo and Osaka rose 20 percent as of yesterday week-on-week, with the two cities ranking second and third among outbound destinations. Lesser-known destinations such as Hakodate, Otaru, and Izu saw hotel searches more than triple from the previous week.
Based on Qunar's hotel booking data, Japan leads all outbound destinations for Chinese tourists during the upcoming Lunar New Year holiday. Within Japan, Chinese tourists are primarily interested in Tokyo, Osaka, and Nagoya. Airfares remain competitive, with Beijing-Osaka flights in late February priced at 600 yuan, down from around 2,000 yuan in January.
Ctrip reports Japan as Chinese tourists' top outbound destination this year. Despite flight capacity between China and Japan reaching only 75 percent of 2019 levels, Chinese bookings to Japan have surpassed pre-pandemic figures.
Japan particularly appeals to younger Chinese travelers. According to Ctrip, tourists born after 1980 account for 41 percent of bookings. Travelers from major cities including Shanghai, Beijing, Shenzhen, Guangzhou, and Hangzhou show the strongest interest in Japanese destinations.
China on Thursday revised up its 2023 gross domestic product (GDP) by 2.7 percent to 129.4 trillion yuan, or 3.4 trillion yuan more than the preliminary figure, the National Bureau of Statistics said Thursday.
The World Bank has revised up China's real GDP growth for this year and next to 4.9 percent and 4.5 percent, respectively, while underlining the necessity of ramping up structural reforms alongside stimulus measures to reinvigorate growth. In its latest China Economic Update released on Thursday, the World Bank said the projections were revised up by 0.1 and 0.4 percentage points, respectively, compared to the June publication.
China's Ministry of Housing and Urban-Rural Development has pledged to continue efforts to stabilize the real estate market and reverse its downturn in 2025. China will focus on unlocking housing demand by fully implementing a mix of policies to support people's needs for buying their first homes or improving their housing conditions, said a ministry official during a two-day work conference that ended Wednesday.
Greater Bay Area, Greater future
Shenzhen is making significant strides towards its goal of becoming a "City of Superchargers," with a total of 1,002 supercharging stations having been built to date, according to the Shenzhen Municipal Development and Reform Commission yesterday. This achievement marks a breakthrough, particularly following an April milestone when the number of supercharging stations surpassed that of traditional gas stations in the city.
Next on industry and company news
Xiaomi Auto announced a charging network alliance with Nio, Xpeng, and Li Auto yesterday, integrating over 14,000 Nio, 9,000 Xpeng, and 6,000 Li Auto charging piles into its charging map, allowing users to view real-time station data and pay seamlessly via the Xiaomi Auto app.
JD.Com yesterday announced another upgrade to its customer service staff’s salary and benefits, granting over 20,000 workers an average pay increase of two months’ salary, after a 30 percent raise in February. Founder Richard Liu personally purchased 80,000 boxes of chocolates as New Year’s gifts to employees.
China Eastern plans to begin operating round-trip flights between Shanghai and Hong Kong using the homegrown C919 passenger plane starting Jan. 1. The airline will become the first to run regular commercial flights to the SAR using this aircraft.
The Shanghai-Suzhou-Huzhou High-Speed Railway officially opened today, connecting the three cities with a seamless 164 km route. The journey from Shanghai Hongqiao to Huzhou now takes only 55 minutes.
Wrapping up with a quick look at the stock market
Chinese stocks gained on Thursday. The benchmark Shanghai Composite added 0.1 percent and the Shenzhen Component rose 0.7 percent.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
China will implement a more proactive fiscal policy to boost demand and living standards next year;
Central SOEs invest 2 trillion yuan in emerging industries in first 11 months.
Here’s what you need to know about China in the past 24 hours
China's Ministry of Finance unveiled plans to implement a more proactive fiscal policy in 2025, including increasing the fiscal deficit-to-GDP ratio and issuing larger-scale government bonds, as outlined in an official statement after the ministry's two-day national financial work conference held from Monday to Tuesday.
China will implement a more proactive fiscal policy next year, with sustained and intensified efforts to deliver a well-coordinated package of measures aimed at ensuring economic stability and driving growth, said Finance Minister Lan Fo’an at the meeting.
"First, we will increase the fiscal deficit ratio, increase spending, and accelerate expenditure progress," said Lan.
China set its deficit-to-GDP ratio at 3 percent for 2024 and the government deficit at 4.06 trillion yuan, an increase of 180 billion yuan from the 2023 budget figure. In 2024, 3.9 trillion yuan of special-purpose bonds for local governments would be issued, an increase of 100 billion yuan over 2023. In addition, 1 trillion yuan of ultra-long special treasury bonds was issued in 2024, according to this year's government work report released in March.
In the Central Economic Work Conference, which was held earlier this month, Chinese leaders decided priorities for the economic work in 2025, including setting a higher deficit-to-GDP ratio and ensuring that its fiscal policy is continuously forceful and more impactful. Also, it said China will increase the issuance of ultra-long special treasury bonds and continue to support projects for implementing major national strategies and building security capacity in key areas.
The ministry’s conference also highlighted boosting domestic demand as a key focus for 2025, aligned with the strategic objectives outlined at the Central Economic Work Conference.
Key fiscal priorities for next year also include prioritizing people-centered policies, encouraging consumption and driving economic growth, as well as increasing transfers to local governments.
China will also strive to prevent and resolve risks in key areas, and promote stable fiscal operations and sustainable development. Fiscal payments transfers to local governments will also be further increased to help strengthen local fiscal resources, the statement said.
This meeting also called for the effective implementation of existing and new fiscal policies, promoting the development of science and technology leadership, and taking proactive measures to mitigate major risks in critical areas to achieve new progress and effectiveness in fiscal work.
Greater Bay Area, Greater future
Macao is set to present a fireworks show in celebration of the 25th Anniversary of the Establishment of the Macao SAR at 9 pm on Wednesday. The event will unfold over the Macao Tower seafront, lasting approximately 15 minutes, and spectators will be able to watch at several prime locations in Zhuhai, Hengqin, and Macao.
Shenzhen Futian Station and Hong Kong's West Kowloon Station will add 144 high-speed rail trips from Dec. 24 to Dec. 29 to meet the demand for public travel between the two places during the Christmas holidays travel rush, according to the China Railway Guangzhou Group on Tuesday.
Next on industry and company news
China's centrally administered state-owned enterprises (SOEs) invested 2 trillion yuan in strategic emerging industries in the first 11 months of 2024, marking an 18.7 percent year-on-year increase, data from the State-owned Assets Supervision and Administration Commission (SASAC) showed.
CATL yesterday unveiled the Bedrock Chassis, the world’s first ultra-safe skateboard chassis. Engineered to endure 120 km/h frontal impacts without catching fire or exploding, it sets new standards for intelligent chassis safety, ensuring protection across all scenarios and speeds, the Chinese battery giant said.
China Post set up a drone firm in Beijing with a registered capital of 100 million yuan, according to corporate info tracker Aiqicha. The new business will focus on R&D, manufacturing, and sales of drones, robots, and AI products.
Shanghai has become a popular destination for South Korean citizens among other overseas tourists after China extended its visa-free policy to more countries last month. The number of travel bookings from South Korea to Shanghai has surged 180 percent since the visa exemption policy kicked in on Nov. 8, according to data from Chinese travel agency Ctrip.
Wrapping up with a quick look at the stock market
Chinese stocks dipped on Wednesday. The benchmark Shanghai Composite ended flat while the Shenzhen Component slid 0.6 percent.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
GBA’s economic scale surpassed those of New York and San Francisco Bay areas;
China is set to raise deficit-to-GDP ratio and expand government bond issuance in 2025.
Here’s what you need to know about China in the past 24 hours
A blue book on the development of the Guangdong-Hong Kong-Macao Greater Area (GBA) released on Monday indicates that the region's economic scale ranked top among global peers at the end of 2023, surpassing New York and San Francisco Bay areas.
The comprehensive think tank report, published annually since 2018, was jointly released by the Guangdong Academy of Social Sciences and China's Social Sciences Academic Press in Guangzhou.
Since the Chinese government issued a pivotal development plan for the GBA more than five years ago, the region's GDP soared from 10.8 trillion yuan in 2018 to 14 trillion yuan in 2023. This growth is nearly equivalent to Shenzhen's GDP in 2023, according to the report, citing Wan Lu, an official from the Guangdong Academy of Social Sciences.
The report revealed that the economic scale of the GBA by the end of 2023 far outpaced the USD1.8 trillion of the New York Bay Area and the USD1.38 trillion of the San Francisco Bay Area. Its size was on par with that of the Tokyo Bay Area.
The report underscores that the GBA has consistently prioritized the development of manufacturing and the real economy, improved urban functions and encouraged cooperation among industries.
On December 11, the Huangmaohai Link, a cross-sea passage in the GBA, opened to traffic, serving as another major cross-sea passage following the Hong Kong-Zhuhai-Macao bridge and the Shenzhen-Zhongshan Link in the region.
With the completion of the cross-river and cross-sea channels, the region is building a world-class industrial corridor anchored by trillion-yuan-level clusters in sectors like advanced equipment manufacturing on the west bank of the Pearl River and high-end electronics on the east bank, according to the report.
In addition, the GBA has constructed a world-class regional transportation corridor with rail and aviation infrastructure. By the end of 2023, the region's railway network surpassed 2,700 kilometers, while urban rail systems reached 1,373 kilometers. The GBA also boasts a world-class aviation network, featuring seven airports and 11 runways. Key hubs in Guangzhou, Hong Kong and Shenzhen have collectively emerged as a leading global airport cluster, achieving passenger throughput surpassing that of Tokyo, New York and San Francisco, the report said.
Greater Bay Area, Greater future
The total number of enterprises in the core industries of China's digital economy has topped 4.57 million as of the end of November, marking an increase of 18 percent from the end of 2023, official data showed Monday. The number of core industrial enterprises in Guangdong, Zhejiang and Shandong provinces ranked the top three in the country.
Next on industry and company news
China exported 5.84 million cars in the first 11 months, up 23 percent, with 1.86 million new energy vehicles, an increase of 13 percent, according to Cui Dongshu, secretary general of the China Passenger Car Association on Tuesday. In November alone, the export volume of NEVs was 140,000 units, down 14 percent on a yearly basis and 32 percent monthly.
JD.Com’s employees with an A rating will get a year-end bonus equivalent to eight salaries, while those with B rating will receive five months extra this year. Procurement and sales staff will get three and six months bonuses by 2026, the e-commerce giant announced late yesterday. Meanwhile, JD.Com announced plans to spend nearly 3.3 billion yuan to buy a majority stake in Home Credit Consumer Finance, the first wholly foreign-owned consumer finance firm in China.
Chinese EV maker Xpeng said on Monday that it has delivered its 10,000th smart EV in the European market, and ranks as the top seller for models priced above 40,000 euros among all Chinese carmakers this year, according to He Xiaopeng, chairman and CEO of Xpeng.
Shenzhen Dobot raised HKD681 million in its debut on the Hong Kong Stock Exchange on Monday, becoming China's first manufacturer of collaborative robots, which are robots with an operable mechanical arm, to go public.
Switching gears to financial news
China's Ministry of Finance on Tuesday unveiled plans to implement a more proactive fiscal policy in 2025. These plans include increasing the fiscal deficit-to-GDP ratio and issuing larger-scale government bonds, as outlined in an official statement.
The panda bond market, in which overseas institutions issue renminbi bonds in China's onshore market, posted record-high issuances by value this year. The panda bond market saw 109 issuances this year worth 194.8 billion yuan as of Friday. The issuance total, according to market tracker Wind Info, was up 26 percent year-on-year.
Wrapping up with a quick look at the stock market
China’s A-share market rebounded sharply on Tuesday, with the benchmark Shanghai Composite and the Shenzhen Component each jumping 1.3 percent. Hong Kong stocks rose by the most in nearly two weeks, driving the benchmark above the 20,000 level before it closed at noon up to Thursday for Christmas. Both the Hang Seng index and the TECH index added 1.1 percent.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
China mulls first law to protect the private sector;
CSRC lifts Hong Kong MRFs quota to 80%.
Here’s what you need to know about China in the past 24 hours
Chinese lawmakers are deliberating a draft of the country's first law specifically focusing on the private sector's development and protection, aiming to bolster the private economy through legal norms amid strategic reforms to optimize the business environment.
The draft, which comprises nine chapters and 78 articles, covers eight main aspects, including fair competition, improving the investment and financing environment, and scientific and technological innovation. It was submitted to an ongoing session of the Standing Committee of the National People's Congress, the country's top legislature, for deliberation on Saturday.
The issuance of the private economy promotion law was also mentioned as a key task for 2025 during the Central Economic Work Conference held earlier this month.
China has consistently been refining its legal frameworks to boost private economic development since the start of the year, with a focus on attracting investment, promoting equitable market access, and strengthening financial support across various regions and departments.
Data from the State Administration for Market Regulation shows that as of the end of September, the total number of registered private enterprises nationwide surpassed 55 million, accounting for 92.3 percent of all enterprises. In the first three quarters of this year, 6.19 million private enterprises were newly registered across the country, according to the administration.
The draft law emphasizes the implementation of a nationwide unified market access negative list system, saying that aside from areas on the negative list, various economic organizations, including private entities, will have equal access in accordance with the law.
Meanwhile, it also supports empowering capable private entities to spearhead major technological advancements, as well as advocates including private economic entities in major national scientific research infrastructure.
Greater Bay Area, Greater future
The China Securities Regulatory Commission has raised the sales cap of northbound Mutual Recognition of Funds, or Hong Kong-registered investment funds that can be sold in the Chinese mainland upon meeting certain requirements, to 80 percent from 50 percent. Hong Kong MRFs can be trusts, mutual funds, and other investment programs set up, operated, and publicly sold in the city under its laws and approved for sale in the Chinese mainland by the CSRC. The new circular will take effect from Jan. 1, the watchdog noted.
Guangzhou in China's southern Guangdong province said it has received the green light from the country's cabinet to start constructing its new airport project, which will be located in Guangzhou's neighboring city of Foshan. The plan is to achieve an annual passenger throughput of 30 million and cargo and mail throughput of 500,000 tons by 2035. The Greater Bay Area has had five major airports in a radius of less than 200 km, including the Hong Kong, Guangzhou, and Shenzhen international airports, with their respective annual passenger throughput of over 10 million.
From January to November this year, Guangzhou's foreign trade volume has already exceeded one trillion yuan, a year-on-year increase of 2.4 percent, according to the municipal commerce bureau. In terms of actual use of foreign investment, the Guangzhou Economic and Technological Development Zone has ranked top in the nation for five consecutive years, with a cumulative total of 362 Fortune Global 500 companies investing in Guangzhou. In the first 11 months, 7,558 new foreign-invested enterprises were established, a year-on-year increase of 26.9 percent.
Next on industry and company news
Shanghai Port became the world's first to see an annual container throughput of over 50 million 20-foot equivalent units yesterday, the Shanghai International Port Group said. The port has ranked first globally in annual container throughput for 14 consecutive years.
Nio’s third brand, Firefly, launched presales for its first EV priced from 148,800 yuan, with deliveries starting in April. The Chinese EV startup wants the brand to rival BMW’s Mini and Mercedes-Benz Smart, according to founder William Li.
EHang and Changan Auto inked a deal on Saturday to ally on flying car R&D, manufacturing, sales, and operations. The partnership will leverage EHang’s eVTOLs and flight tech expertise and Changan Auto’s manufacturing strength for future mobility ecosystem innovations.
Shanghai Fosun Pharmaceutical is proceeding with its proposal to merge and privatize innovative drug-maker Shanghai Henlius Biotech at a cost of HKD5.4 billion. The company proposes to pay HKD24.6 for each Henlius' share listed in Hong Kong, 36.67 percent higher than the closing price of HKD18 on May 21.
Switching gears to financial news
Guotai Junan Securities is set to merge with Haitong Securities creating China's largest brokerage. The merger will be conducted through a swap deal where Guotai Junan issues A-shares and H-shares to all A-share and H-share exchange shareholders of Haitong Securities. Hong Kong's securities watchdog has approved Guotai Junan Securities to become the major shareholder of certain subsidiaries of Haitong Securities which are licensed corporations.
Tencent’s cross-border payment platform Tenpay Global recently partnered with Euronet Worldwide’s subsidiary Ria Money Transfer to allow users to transfer funds from Ria’s channels directly to digital wallet balances or linked bank accounts on Tencent’s WeChat Pay.
Wrapping up with a quick look at the stock market
China's benchmark Shanghai Composite fell 0.5 percent on Monday while the Shenzhen Component dropped 1 percent. Hong Kong’s Hang Seng index closed 0.8 percent higher, and the TECH index gained 0.3 percent.
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Today marks the 25th anniversary of Macao’s return to the motherland. The city is brimming with cheerful vibes, with anniversary-themed posters and floral decorations adorning popular sites such as the Ruins of St. Paul's, while national flags and Macao SAR flags flutter along the streets.
On December 20th, 1999, after more than 400 years of storms, Macao finally returned to the embrace of its motherland. These 25 years have been a period of hard work and prosperous development for Macao, as well as a successful implementation of the “One Country, Two Systems” policy.
Over the past 25 years, Macao’s economy has achieved a leapfrog development. With strong support from the government, Macao has fully leveraged its unique advantages, resulting in a staggering leap in GDP from 51.9 billion Macao patacas to an impressive 379.5 billion patacas in 2023—approximately $47 billion based on the 2023 average exchange rate.
This economic surge has catapulted Macao into the ranks of the world’s most developed economies. In a remarkable post-pandemic recovery, Macao’s GDP soared by 80.5% in 2023 compared to the previous year. The per capita GDP tells a similar success story, climbing from 15,000 patacas in 1999 to a noteworthy 69,000 patacas in 2023. Forbes Magazine listed Macao as the second-richest place in the world this year, behind Luxembourg.
Over these years, a social security system covering the entire life cycle of local residents has been established in the SAR, and the average life expectancy of Macao residents has increased to 83.1 years.
Since returning to the motherland in 1999, Macao’s economic structure has changed significantly. The city’s gaming industry has thrived, surpassing Las Vegas as the world’s leading gaming hub. The sector was opened up to international operators in 2002, creating new opportunities for tourism and foreign investment.
Macao has the international reputation of being the Las Vegas of the Far East, which, while being true, does not reflect the complete story. Macao has transformed into a modern, international metropolis with strong support from the central government, achieving remarkable progress in both economic development and residents' livelihoods.
A key driver of Macao's economic diversification, the Guangdong-Macao In-Depth Cooperation Zone on Hengqin Island, located near Macao, was established in 2021 to expand living options and work opportunities for Macao residents.
Over the past three years, Hengqin has endeavored to aid in Macao’s moderately diversified industrial development while constructing a livable and workable space for its residents. To this end, the integration of Hengqin and Macao is setting the course for a new era of close collaboration between the two regions.
In terms of industrial planning, Hengqin’s “four new” sectors blend with Macao’s “1+4” industry diversification strategy, which involves promoting the growth of one key sector — tourism and leisure — alongside the advancement of the big health, modern finance and high-tech industries, as well as conventions, exhibitions, culture and sports.
According to official data, as of the end of October, there were 6,521 Macao-funded businesses in the cooperation zone. In the first three quarters of this year, the added value of Macao-funded industries reached 2.63 billion yuan, representing a year-on-year increase of 111.2 percent.
As of the end of November, the number of “four new” industry enterprises had grown to 31,506, up 6.3 percent from the end of 2021. As well, in the first three quarters, the added value of “four new” industries reached 21.6 billion yuan, accounting for 57.8 percent of the cooperation zone’s GDP.
In addition, Macao’s economic diversification efforts have yielded notable results. In 2023, the added value of key sectors such as TCM and modern financial services surged to 39.05 billion Macao patacas, marking a 6.9 percent increase from 2019. Meanwhile, the gaming industry’s contribution to the local GDP saw a significant 14-percentage-point decline compared to 2019.
Hengqin has been steadfast in its commitment to establishing a destination that enhances the quality of life and employment opportunities for Macao residents. In a groundbreaking collaboration between the governments of Guangdong and Macao, the Macau New Neighborhood project was officially introduced in 2023 to satisfy the needs of Macao residents — many of whom have since relocated to Hengqin, benefiting from essential amenities such as Macao-centric schools, community services, and household assistance. As a result, the cooperation zone is progressively evolving into a distinctive enclave, embodying the essence of a fresh beginning for Macao residents.
This small place has also become well-connected because of the recent major and impressive infrastructure projects in and around Macao: the Hong Kong-Zhuhai-Macao Bridge, the Guangzhou-Zhuhai Intercity Railway, and Hengqin Port.
Standing at a new starting point of the silver jubilee of Macao’s return, this brilliant pearl of Macao will surely shine even brighter in the embrace of the motherland, as the next 25 years promise even more opportunities for growth and development, solidifying its place on the world stage.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
Trade between Chinese mainland and Macao SAR increases 4.3 times in 24 years from 1999;
GBA spearheads China’s “unicorn" growth.
Greater Bay Area, Greater future
Economic and trade relations between the Chinese mainland and Macao SAR are growing stronger, the Ministry of Commerce said on Thursday just before the 25th anniversary of Macao’s return to the motherland.
Among the significant achievements in economic cooperation, trade between the mainland and Macao reached $3.84 billion in 2023, marking a 4.3-fold increase from 1999.
The service trade has also seen substantial growth, as marked by the influx of mainland tourists to visit Macao. From 2004 to 2023, approximately 310 million mainland visitors traveled to Macao. The surge in tourism has boosted local retail, hospitality, and dining sectors in Macao, according to ministry.
In a move to enhance tourism, the mainland increased the duty-free allowance for travelers entering the mainland from Macao from 5,000 yuan to 12,000 yuan in July, to boost tourism spending in the Macao SAR.
Investment flows have also been robust. As of October, the mainland has attracted $23.93 billion in direct investment from Macao while investing $14.19 billion into the Macao SAR.
Since the release of the outline development plan for the Guangdong-Hong Kong-Macao Greater Bay Area in 2019, the ministry has released supportive policies covering key areas such as consumption, circulation, trade, investment, and economic cooperation to back up Macao's integration into the country’s national development plans.
The ministry also introduced special measures to support the relaxation of market access to Hengqin, home to the Guangdong-Macao In-depth Cooperation Zone, expanding the development space for diversified industries in Macao SAR.
As of September, more than 6,400 Macao enterprises have established operations in Hengqin, marking a growth of nearly 40 percent in the past three years. Growth has been particularly prominent in high-tech industries and traditional Chinese medicine sectors.
Sixty-eight companies in the Greater Bay Area have been ranked among the world’s most promising enterprises with a strong potential of growing into “unicorns” within five years, surpassing the combined total of the United Kingdom and France, according to the latest Hurun Global Cheetahs Index 2024. Shenzhen ranked fifth among global cities with 35 “cheetahs”, while Guangzhou contributed 26, an increase of six from last year, placing it eighth. The remaining seven are based in other GBA cities. China had 304 such companies in 2024, ranking second worldwide. The GBA accounted for 22 percent of the nation’s total.
Corporate confidence in Hong Kong as a preferred international hub is picking up with the number of startups and multinationals based in the city both hitting record highs. The number of companies in Hong Kong with overseas or Chinese mainland parent companies climbed to a historic 9,960 in 2024, while that of start-ups jumped to a record 4,694, both up 10 percent from last year, showed two surveys released by the Hong Kong SAR government.
China welcomed this year's first shipment with around 14,000 tons of Chilean cherries in Guangzhou, cutting price over 20 percent in some sales channels. At Alibaba's Freshippo grocery chain, cherry sales have surged 90 percent month-on-month, with prices declining by 23 percent. Five-kilogram packages of jumbo-sized cherries now cost 199 yuan, down from 259 yuan, while extra jumbo varieties are priced at 299 yuan, reduced from 399 yuan.
Next on industry and company news
Chinese travel giant Trip.com is considering a more flexible four-day workweek to boost employee satisfaction, support a greener office environment, and give workers more time for travel and family, co-founder James Liang shared at its Global Partner Summit yesterday. Liang also predicted that China’s inbound tourism market to grow by an additional $100 billion to 200 billion.
Apple is in talks with Chinese tech giants Tencent and ByteDance to integrate their AI models into iPhones sold in China, media reported today, citing three sources familiar with the matter. The discussions are in the initial stages, with no details made public yet.
Chinese auto giant GAC Group launched yesterday its new flying car brand, Govy, and its second flying car, Govy AirJet, aiming for a flight range of 200 km and supporting a quick recharging of 30 minutes. The firm will equip such vehicles with its self-developed all-solid-state batteries in the future, with an expected flight range of 400 km.
Alibaba Group Holding has divided its Tongyi Qianwen large language model team to accelerate the integration of artificial intelligence across consumer-facing products, media reported today citing sources familiar with the matter. Tongyi Laboratory's technology development team will remain within Alibaba Cloud, while the application team will shift to Alibaba's Intelligent Information Business Group.
The "Xin Shanghai," a vessel operated by China COSCO Shipping Corporation Limited, arrived in Shanghai's Yangshan Port at around 3:30 p.m. on Wednesday after a 23-day journey from Peru's Chancay Port, becoming the first vessel to arrive in Shanghai from Chancay after the Peruvian port officially opened in November.
Switching gears to financial news
A pilot cash-pooling service integrating domestic and foreign currency management for multinational companies in China will be further optimized, the country's monetary authorities said Wednesday. The move, which involves 10 pilot regions including Beijing, Shanghai, Jiangsu and Zhejiang, will focus on reducing corporate financing costs, enhancing cross-border payment and receipt facilitation, streamlining cross-border fund management, and further improving capital utilization efficiency for multinational companies.
Wrapping up with a quick look at the stock market
Chinese stocks closed mixed on Thursday. The benchmark Shanghai Composite slid 0.4 percent while the Shenzhen Component gained 0.6 percent. Hong Kong’s Hang Seng index edged 0.6 percent lower, and the TECH index dipped 0.7 percent.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
China extends visa-free transit stays to 10 days;
China's air-passenger transport hits record high in 2024.
Here’s what you need to know about China in the past 24 hours
China has tripled the amount of time visitors can spend in the country without a visa in yet another move to entice more foreign tourists.
The National Administration of Immigration announced the country will expand its visa-free layover period to 240 hours across the board.
Effective immediately, 21 additional ports have been designated for visa-free entry and exit.
Under the updated policy, eligible citizens from 54 countries, including Russia, Brazil, Britain, the United States and Canada, can enter China visa-free when transiting to a third country or region.
These travelers may now enter through any of the 60 ports across 24 provinces, regions and municipalities and stay within the designated areas for up to 10 days.
On December 1, 2023, China began implementing unilateral visa-free entry trials for ordinary passport holders from France, Germany, Italy, the Netherlands, Spain and Malaysia. The policies were later expanded several times to more countries, as a part of China’s continuous effort to revitalize international tourism and strengthen global connections. Passport holders from 38 countries now can enter China visa-free for up to 30 days, including most European countries, east and southeast Asian countries, Australia and New Zealand.
According to the latest statistics cited by state media, from January to November 2024, more than 29 million foreigners entered the country, a year-on-year increase of 86.2 percent. Of these, 17 million entered under the visa-free program, a year-on-year increase of 123.3 percent.
The number of foreigners entering China in the third quarter of the year reached a record high, according to data from the NIA.
Visa simplification isn’t the only change China has made to entice foreign tourists.
Its two biggest e-payment apps, WeChat and AliPay, now accept non-Chinese credit cards, have built-in translation software and streamlined identity verification processes.
Next on industry and company news
Chinese airlines have recorded over 700 million passenger trips so far this year, marking a record high in the history of China's civil aviation development, according to the Civil Aviation Administration of China (CAAC) on Monday. As of Sunday, the country's airlines reported a total of 700.48 million passenger trips since the start of the year. The total number of air-passenger trips for 2023 was 620 million.
China on Monday announced plans for 12 winter tourism-themed travel routes across the country, aiming to further activate the ice and snow economy during the 2024-25 winter season. The 12 travel routes are set in Beijing, Southwest China's Chongqing Municipality and Sichuan Province, the three provinces in Northeast China, North China's Shanxi Province, Inner Mongolia Autonomous Region, Central China's Henan Province and Hubei Province, as well as Northwest China's Shaanxi Province and Xinjiang Uygur Autonomous Region.
Alibaba plans to sell its 99 percent stake in its department store chain Intime to a buyer consortium consisting of Chinese clothing and property firm Youngor, and members of Intime's management team, with deal will be worth about 7.4 billion yuan, the Chinese e-commerce giant said today.
Walmart China and Meituan announced a tie-up in instant delivery, product diversity, product operations, digital customer capabilities, and digital marketing today. The US retail giant's stores in China integrate Meituan's food delivery services.
Switching gears to financial news
China's Shanghai Stock Exchange (SSE) announced on Monday that it has signed a Memorandum of Understanding (MoU) with the Qatar Stock Exchange. Under the agreement, the two exchanges will explore collaborative opportunities in areas such as exchange-traded fund (ETF) products, data and index products.
China's fiscal income rose at the fastest pace of this year in November, mainly because the latest incremental policy package promoted economic recovery. General public budget revenue soared 11 percent to 1.4 trillion yuan last month from a year earlier, compared to 5.5 percent in October, according to data released by the Ministry of Finance yesterday.
Wrapping up with a quick look at the stock market
Chinese stocks fell on Tuesday with the benchmark Shanghai Composite down 0.7 percent and the Shenzhen Component down 0.35 percent. Hong Kong’s Hang Seng index dipped 0.5 percent and the TECH index inched down 0.6 percent.
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Hi everyone. I’m Stephanie LI.
Coming up on today’s program
China’s economy remains on trajectory of steady recovery in November;
Home prices decline narrows in China’s major cities.
Here’s what you need to know about China in the past 24 hours
China's economy continued to recover steadily in November thanks to the synergy created by existing supportive policies and the incremental roll-out of new stimulus, with manufacturing and service sectors witnessing accelerated growth, together with an improvement in public expectations, the National Bureau of Statistics (NBS) said on Monday.
Output of industries above a designated level grew by 5.4 percent year-on-year in November, a 0.1 percentage point higher than last month. Output of high-tech manufacturing sector increased 7.8 percent year-on-year, 2.4 percentage points higher than the output growth of all industries.
Productions of new energy vehicles, industrial robots, integrated circuits grew 51.1 percent, 29.3 percent, 8.7 percent year-on-year in November, respectively.
Retail sales, a key measurement of consumer spending, grew 3 percent year-on-year to nearly 4.38 trillion yuan in November, among which products eligible for "trade-in" policy saw good sales performance.
In the first 11 months, fixed-asset investment, a gauge of expenditures on items including infrastructure, property, machinery and equipment, saw a 3.3 percent yearly growth to 46.6 trillion yuan.
In the January-November period, average surveyed urban jobless rate stood at 5.1 percent, down 0.1 percentage point compared with same period last year.
Officials expect China to achieve its 2024 economic goals, given major economic indicators have rebounded significantly in the fourth quarter, according to Fu Linghui, the spokesperson of the statistics bureau said on Monday. More efforts are needed to promote China's economic recovery in 2025 to boost household income and defuse risk, as a rising tide of trade protectionism renders the external environment more complex, he added.
Meanwhile, the decline in the prices of commercial residential homes in China's 70 large and medium-sized cities narrowed on a year-on-year basis in November, NBS data showed on Monday.
In the four first-tier cities, new home prices dropped 4.3 percent year on year, a decline narrowing 0.3 percentage points from October. However, Shanghai, China's economic hub, saw a 5 percent increase in new home prices last month.
Second-hand home prices in the first-tier cities went down 8 percent last month, 1.6 percentage points narrower than the decline in October.
For the 31 second-tier and 35 third-tier cities across the country, data also showed narrower drops in both new and second-hand home prices in November, according to the NBS.
The Chinese government issued a document on Monday that outlines measures to modernize the nation's retail industry over the next five years. According to the document, the country seeks to initially form a modern retail system that features enriched supplies and high-quality services, and that is smart, convenient and green by 2029. To modernize the industry, upgrade and transformation efforts targeting department stores, shopping centers, supermarkets, and community business hubs will be made, according to the document jointly issued by seven government departments including the Ministry of Commerce.
Greater Bay Area, Greater future
The Guangzhou Futures Exchange will introduce polysilicon futures and options to provide more risk management tools for price fluctuations to the Chinese photovoltaic industry. Polysilicon futures and options will be listed on Dec. 26 and Dec. 27, respectively, becoming the third product after industrial silicon and lithium carbonate to join the GFEX.
Next on industry and company news
The tech giant Huawei Technologies is to complete the spinoff of its intelligent automotive business unit to become an independent company, Shenzhen Yinwang Intelligent Technology Co. Ltd., by Jan. 1, media reported, citing sources close to the auto BU.
The BYD Seal has made history as the first Chinese car to be among the 10 nominees for the 2024-2025 Japan Car of the Year. Launched in Japan this year, the Seal has gained significant attention and was praised for its sleek design, powerful performance, and advanced smart features.
The box office sales of China's moviegoing season ringing in the New Year have reached about 1.63 billion yuan, with pre-sales included, as of Sunday, according to the film data platform Beacon. The top three of the movies are Her Story, Crayon Shin-chan the Movie: Our Dinosaur Diary, and Brave New World.
Switching gears to financial news
Foreign direct investment in the Chinese mainland in actual use climbed 6 percent in November from the same period last year, the Ministry of Commerce said Saturday. From January to November, the actual use of FDI stood at 749.7 billion yuan, down 27.9 percent year on year, which narrowed by 1.9 percentage points compared to January to October.
Wrapping up with a quick look at the stock market
Chinese stocks fell on Monday with the benchmark Shanghai Composite down 0.2 percent and the Shenzhen Component shedding 1.3 percent. Hong Kong’s Hang Seng index also closed 0.9 percent lower, and the TECH index dropped 1.45 percent.
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In setting priorities for its economic policy for 2025, China is emphasizing the need to adopt a moderately loose monetary policy next year, including the rollout of rate cuts and cuts in the reserve requirement ratio at an appropriate time to ensure ample liquidity
The nation's policymakers set the policy agenda for the world's second-largest economy at the annual Central Economic Work Conference in Beijing on Wednesday and Thursday.
While noting heightened negative factors from the outside environment and challenges now facing the economy, policymakers reaffirmed the need to forge ahead with high-quality development, comprehensively deepen reform, expand high-level opening-up and develop a modern industrial system.
They pledged to implement more proactive and effective macroeconomic policies, boost domestic demand, drive the integration of sci-tech innovation and industrial innovation, and stabilize the real estate sector and stock markets.
The meeting also signaled a rare increase in its deficit-to-GDP ratios, through fiscal expenditures and issuance of ultra-long special treasury bonds and local government special-purpose bonds.
The policy stance is aligned with signals from a tone-setting meeting on Monday of the Political Bureau of the CPC Central Committee.
Among a series of positive signals regarding China's economy conveyed at the two key meetings, the most notable is that the meetings urged the implementation of a more proactive fiscal policy and a moderately loose monetary policy.
The announcement of a moderately loose monetary policy in particular has drawn widespread attention. The last time monetary policy was moderately loose was in the 2008 to 2010 period after the global financial crisis. The change in stance will further open up the space for policy easing, according to analysts.
Monday’s meeting said the policy toolkit will be beefed up, unconventional counter-cyclical adjustments will be strengthened, policy coordination will be stepped up, and macro regulation will be more forward-looking, targeted, and effective.
Policy researchers and economists predict that China may take unconventional monetary steps to finance bolder fiscal expansion next year, possibly including a sizable central bank purchase of government bonds, coupled with more aggressive cuts in interest rates and reductions in banks' required reserves.
This shift in monetary policy provides a much needed boost to the stock market. China’s A-share market reacted positively at the news, having climbed for 3 consecutive days since Tuesday.
As domestic and international economic environments continue to evolve, the transition to a moderately loose policy is a timely and responsive measure to current economic challenges, and also a strategic approach to ensure stable growth and long-term development, particularly during crucial periods of economic transformation.
Moreover, moderate monetary easing can stimulate market vitality and drive industrial upgrading and innovative development. In addition, a moderate approach to monetary easing can provide clearer and more explicit signals to the market, bolstering confidence in China's economic recovery.
In fact, since the beginning of this year, China's monetary policy has exhibited a trend of moderate loosening while maintaining a prudent approach.
Over the past year, the central bank has made several precise and considerable adjustments, including cuts to the reserve requirement ratio (RRR) and interest rates. The one-year loan prime rate (LPR) has decreased from 3.45 percent to 3.10 percent, while the LPR for loans with a term of five years or more has fallen from 4.20 percent to 3.60 percent, marking the largest reductions within a year in history.
Next year, the PBOC will likely cut the policy rates by 40 bps to 60 bps, trim the five-year LPR by 60 bps to 100 bps, and lower the RRR by 150 bps to 250 bps, according to Zhang Jun, chief economist of China Galaxy Securities.
The PBOC will go on paring the RRR and interest rates next year while stepping up its unconventional easing policies, such as purchasing government bonds and conducting outright reverse repurchase operations, said Ming Ming, chief economist at Citic Securities.
Shifting the policy tone from "prudent" to "moderately loose" not only responds positively to the current economic situation but also serves as a crucial measure for strengthening expectation management.
In addition, changes in the external environment have created a unique opportunity for China to adjust its monetary policy stance. In September, the US Federal Reserve announced a 50-bp cut to its benchmark interest rate, the first reduction in borrowing costs since March 2020. Wall Street investors now expect the Fed to implement another rate cut this month.
In its latest Asian Development Outlook released on Wednesday, the Asian Development Bank (ADB) maintained its previous growth forecasts for China at 4.8 percent for 2024 and 4.5 percent for 2025. Notably, the bank lowered the growth forecast for developing Asia to 4.9 percent for 2024 and 4.8 percent for 2025.
On Wednesday, a report on the Oxford Economics also said that the new US administration's tariffs will likely exacerbate the "slowbalisation" globally.
In contrast to uncertainty from the US, China's positive role for the global economy has been highlighted by major international economic organizations.
During a meeting with China's top leader on Tuesday, the heads of major international economic organizations, including President of the New Development Bank Dilma Rousseff, Managing Director of the International Monetary Fund Kristalina Georgieva, President of the World Bank Group Ajay Banga and Director-General of the World Trade Organization Ngozi Okonjo-Iweala, hailed China's remarkable achievements.
Amid global economic challenges and the rise of unilateralism and protectionism, countries around the world are looking to China with hope and belief that it will remain a key engine of global economic growth. - Laat meer zien
