Latest news with #HKD
The Sun
6 hours ago
- Business
- The Sun
Easou Technology Holdings Limited Enters into Agreement to Raise Over HKD 180 Million Through Share Placement
HONG KONG SAR - Media OutReach Newswire - 20 June 2025 - Easou Technology Holdings Limited （'Easou' or the 'Company,' together with its subsidiaries, collectively referred to as the 'Group'; HKEX stock code: 2550）a leading AI-powered search and recommendation technology company, is pleased to announce that it has entered into a placing agreement with Growth Value LTD to raise approximately HKD 183.5 million through the placement of 57,330,000 new shares (the 'Placing Shares') at a placing price of HKD 3.2 per share (the 'Placing'). The Company presently intends to use the net proceeds from the Placing to fund: the research and development of its AI recommendation engine and artificial intelligence-generated content (AIGC), enabling new application scenarios across various entertainment verticals. Proceeds will support the expansion of its online gaming and short drama content in overseas markets, as well as the ongoing upgrades and development of its intelligent advertising platforms. This transaction will strengthen Easou's capital base and enhance its financial position and net assets base for long-term development and growth. The funds raised will enhance the Group's research and development capabilities, reinforce its technological edge, support its positioning as a third-party online reading platform, and accelerate the expansion of its digital marketing services and international business. In a demonstration of confidence in the Company's future, Mr. Wang Xi, Executive Director, Chairman, and CEO of Easou, has voluntarily committed not to sell any of his shares for 75 days from the date of the agreement. Mr. Wang Xi commented: 'This fundraising marks a pivotal step in the Group's strategy to build its AI+ content ecosystem. By prioritizing investment in the research and development of AI recommendation engines and AIGC technologies, we are empowering the growth of our digital marketing services while accelerating the rollout of high-potential content formats such as short dramas and online games. At the same time, our overseas expansion strategy is aimed at capturing the vast opportunities presented by the global AI market. This transaction will significantly enhance Easou's capital base and investor foundation, further strengthening our leadership in the rapidly evolving AI era.'
CNBC
10 hours ago
- Business
- CNBC
Labubu-maker Pop Mart's shares extend slide as Morgan Stanley removes it from China focus list
BEIJING — Shares in Pop Mart, the Chinese toy company behind the recent Labubu craze, continued to tumble Friday, after Morgan Stanley removed the stock from a focus list. Pop Mart's Hong Kong-listed shares were last down more than 5%, extending their slide from the previous session when they had slumped 5.3%. That's put the high-flying stock on track for its first negative week since early May — with losses of more than 13% so far. Its year-to-date gains stand at over 160%. Morgan Stanley said in a note late Wednesday it was replacing Pop Mart with insurance company PICC P&C in the firm's China and Hong Kong focus list. The investment bank did not elaborate on why it removed Pop Mart shares. The firm on June 10 had raised its price target on the toy company to 302 Hong Kong dollars ($38.47), up from 224 HKD, on expectations that Pop Mart still had room to grow in the long term. "We think the market has fully factored in Pop Mart's exponential growth in 2025 but may not have strong conviction on the long-term outlook," equity analyst Dustin Wei and a team said in the June 10 report. "That said, in view of its lofty valuation, we do not expect this level of outperformance to continue in the next few quarters," the report said. Pop Mart shares hit a record intra-day high of 283.40 HKD on June 12. The Beijing-based toy company has rapidly expanded overseas with online sales platforms and physical stores, including in the U.S. and U.K. Pop Mart first gained popularity with its "blind box" concept, in which consumers buy unmarked boxes — which can cost from about $5 to $10 each — for a chance at getting a unique figurine and building a collection. In the last few months, the company's "Labubu" series of toys featuring an elf-like character have become a global phenomenon, even drawing the attention of fashion and culture-focused New York Magazine and The New York Times. Pop Mart has also released Labubu stuffed toys, pillows and related merchandise to capture demand. A 4-foot-tall Labubu sold for the equivalent of $170,000 at an auction in Beijing earlier this month. Many of the more affordable versions of the figurine subsequently went out of stock in mainland China. "We've seen certain trends like that before ... There seems to always be some cute thing that people have to have," Jacob Cooke, co-founder and CEO of WPIC Marketing + Technologies, told CNBC on Friday. The company helps foreign brands — such as Vitamix and iS Clinical — sell online in China and other parts of Asia. He pointed to interest last year in capybara stuffed toys. Chinese retailer Miniso, which also has stores in the U.S. and other countries, was one of the main sellers of the stuffed animal. Cooke saw Pop Mart as "more lucky than anything," although he pointed out it reflects growing interest in toys not just for children but also adults. Indicating the soaring popularity of its toys, Pop Mart's overseas sales in 2024 have already surpassed the company's overall sales in 2021. The company reported total sales, primarily domestic, of 4.49 billion yuan ($624.6 million) in 2021. In 2024, overseas sales alone surpassed that to hit 5.1 billion yuan, up 373% from a year ago, while mainland China sales climbed to 7.97 billion yuan.
Bloomberg
3 days ago
- Business
- Bloomberg
New World Bondholders Receive Interest Payment on Dollar Note
New World Development Co. has paid interest due Monday on a dollar note, according to several bondholders, giving the indebted Hong Kong builder some breathing room as it works to complete an HK$87.5 billion ($11.1 billion) loan refinancing deal. The company faced $5.05 million in interest payments due Monday on the 5.875% bond, according to Bloomberg calculations. Investors were closely monitoring the deadline after the builder recently decided to defer coupon payments on four perpetual notes.
Business Times
7 days ago
- Business
- Business Times
Hong Kong – Canary in a goldmine
THE perception of Hong Kong's decline as a financial hub and desirable place to live is both understandable yet overstated. During a recent business trip to Europe, one consistent reaction stood out: Clients' faces flashed with concern and sympathy when I mentioned I was based in Hong Kong. I get it. For years, the narrative around Hong Kong has been relentlessly downbeat: falling property prices; the 2019 protests; Covid lockdowns; expat departures; strained US-China relations; and renewed worries about the stability of the HKD-USD peg. The concerns are valid but, as I argue below, also misplaced. Which major equity market has outperformed most others in 2025? Which market ranks fourth globally by capitalisation, trailing only the United States, mainland China, and Japan? Which market raised more in IPOs than Europe's exchanges combined this year? And which economy welcomed more tourists than Japan from January to May 2025? If you answered Hong Kong to all, you're absolutely correct. Surprised? Let me explain. Golden goose My optimism about Hong Kong's future hinges on its currency: the Hong Kong dollar (HKD). Within the Greater China region, no other city matches its currency's liquidity and convertibility (with apologies to Macau's pataca). Corporate China's unquenchable demand to recycle hard currency is well known, and until the renminbi becomes convertible – likely a distant prospect – Hong Kong's role as China's premier funding conduit remains secure. But what about the HKD-USD peg's vulnerabilities? Recent media reports have highlighted pressures on the peg, and these concerns are reasonable. Yet, the strain isn't from capital flight; it's the opposite. Inflows from IPOs, dividends, and investment opportunities are so robust that the Hong Kong Monetary Authority (HKMA) had to sell some HK$47 billion (S$7.6 billion) in May 2025 to temper HKD appreciation. Of course, an appreciating currency is a nice problem to have, as are interest rates at – or close to – record lows. But, either way, both are still problems if allowed to endure, potentially distorting the allocation of capital. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up To be fair, the allure of a USD carry trade (selling HKD and investing in US money market funds for example) has seen the HKD's value normalise. But even two weeks on from the last mega-IPO, the monetary system remains awash with liquidity, allowing banks to reset mortgages rate lower and allowing refinancing opportunities for the beleaguered commercial real estate sector. Local hero With roughly comparable populations, land mass, and economic size, the friendly competition between Hong Kong and Singapore as rival business centres is as storied as it is long-running. Anyone who has recently visited Singapore will have been mightily impressed by the energy, opportunity, and confidence that the city state currently exudes; and might conclude – reasonably – that Hong Kong has (temporarily) lost its mojo to its ascendent challenger. Yet, Hong Kong's role as China's financial gateway also gives it both a role and an edge, certainly in the ability to offer local companies liquidity for financing purposes. For example, Hong Kong's stock market has a total market capitalisation of US$6.3 trillion, entirely dwarfing Singapore's at merely US$0.5 trillion, a 13-fold difference. As China corporates consider delisting from the US or dual list in Hong Kong, one can assume Hong Kong's market capitalisation may likely increase. Admittedly something of a stealth rally, the Hang Seng Index (HSI)'s year-to-date performance – largely complementing and reflecting renewed interest in China – may also have attracted international investors. At time of writing, the HSI was up 21 per cent on the year, outperforming the majority of competitor markets. My sense is as investors rotate thematically from US exceptionalism to – among other things – (China-centric) emerging market opportunities, local equities may further benefit in the months and quarters to come. Canary's fragility Yet for all Hong Kong's recent positives, as a financial entrepot it is both sensitive and vulnerable to the volatilities of global trade. And that is unlikely to change anytime soon. Thus, strained trade relations between the US and China – and the risk of high tariffs being imposed by the former on the latter – will negatively impact the city's fortunes. Inevitably, Hong Kong reliance on mainland inflows – with some 80 per cent of Hong Kong Exchanges and Clearing's market cap tied to Chinese firms – exposes it to China's economic slowdown risks. Escalating geopolitical tensions or a faltering Chinese economy could trigger occasional liquidity shocks, potentially derailing Hong Kong's markets for a while. At Lombard Odier, we are overweight equities, including those in emerging markets. Our preferred way to access China risk is via Hong Kong's H Share market. Thus far, it has been a satisfactory trade. But Hong Kong's East-West history positions it – somewhat uniquely – in the crosshairs of tensions between the world's two great superpowers. Hong Kong's resilience is well known and well regarded; but shouldn't be taken for granted. The writer is chief investment officer, Asia, at Lombard Odier
Business Times
13-06-2025
- Business
- Business Times
Alibaba movie unit's pivot, rebrand bring US$2 billion value gain
DAMAI Entertainment Holdings, formerly Alibaba Pictures Group, is shifting its focus from movies production to faster-growing entertainment segments targeting younger consumers – and investors are taking notice. Since its May 19 earnings report, which highlighted a pivot towards intellectual property (IP) licensing and live events, the company's shares have roughly doubled, making it the top performer on Hong Kong's Hang Seng Composite Index and adding US$2 billion in market valuation. Several analysts have since upgraded their outlooks. The rebrand to Damai Entertainment, effective this month, reflects this broader focus. While its core film production business shrank, Damai still posted double-digit growth in both sales and profit for the fiscal year ended Mar 31 – driven by its IP merchandising and live entertainment arms. The Damai name, originally tied to its concert and event unit, now represents the company's alignment with China's 'new consumption' trend. Young consumers are increasingly drawn to tech-driven, emotionally engaging experiences, and Beijing is encouraging more spending to boost the economy. The name change and strategic shift are a 'turning point', signalling Damai's ambition to become a more well-rounded offline entertainment provider, Citigroup analysts said in a note. The stock has already surpassed Citi's HKD$0.92 target and China International Capital's revised HKD$0.98 target. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Still, Damai remains a penny stock with notable risks. Its film and TV segment shrank 9.6 per cent last year, and content investment remains volatile. Citi maintains a 'Buy/High Risk' rating, citing margin uncertainties. Its valuation has also become high, according to Shen Meng, a director at Beijing-based Chanson & Co. 'Short-term stock price fluctuations increase valuation risks,' he said. The stock is trading at nearly 29 times its forward earnings estimates, far above a ratio of around 10 for the Hang Seng Index, data compiled by Bloomberg showed. But he believes the pivot towards younger consumers is smart: 'Young people have a longer consumption cycle.' Pokemon and Sanrio The move is already playing out. Gen Z's spending on hobby goods and celebrity merch has fuelled stock surges for companies such as Pop Mart International Group and Bloks Group – and now Damai. The IP merchandising unit, including the sub-licensing business AliFish, partners with brands such as Pokemon, Sanrio, and Chiikawa, and sub-licenses them to merchants. The unit's revenue grew 73 per cent last year. The Citigroup analysts call AliFish 'the nation's largest IP licensing agent' and the 'young people's underlying supplier for IP merchandising'. Meanwhile, Damai's live entertainment business – concerts, festivals, exhibitions – saw a 236 per cent revenue jump. It also runs a major ticketing platform and expects more growth from international concert sales. 'Entertainment in China has strong, diverse demand,' Shen said. 'If one has liked something since childhood, they will basically always like it.' BLOOMBERG
