Invest Insight

On March 4, the Third Session of the 14th National People's Congress (NPC) held a press conference in the Press Conference Hall of the Great Hall of the People. Lou Qinjian, spokesperson for the third session of the 14th NPC, answered questions from Chinese and foreign journalists on issues related to the conference agenda and the work of the NPC.

IEC Released Robots Criteria Led by China The International Electrotechnical Commission (IEC) recently released the international standard for elderly care robots led by China, which is based on the physiological and behavioral characteristics of the elderly. It provides benchmarks for the product design, manufacturing, testing, and certification of various types of elderly care robots, aiming to support the sustainable growth of the global elderly care robotics industry. As described on its website, the IEC brings together nearly170 countries, and about 30 000 experts cooperate on the global IEC platform to ensure that products work everywhere safely with each other. As described on its website, the IEC brings together nearly170 countries, and about 30 000 experts cooperate on the global IEC platform to ensure that products work everywhere safely with each other. In addition to general requirements such as usability, reliability, accessibility, energy consumption, and noise levels, the standard also specifies technical requirements for various services provided by elderly care robots. These services include monitoring health status and emergency situations, facilitating communication with family and medical professionals, assisting with household tasks, entertainment, home management, and caregiving, providing mobility assistance for outdoor activities and walking, as well as information and data management.

NFRA Eases Rules for HK and Macau Financial Institution Investment in the Chinese Mainland Insurer On February 26th, China’s top regulator over Banking and Insurance Companies, the National Financial Regulatory Administration, announced that, effective March 1st, 2025, Hong Kong and Macau financial institutions investing in the Chinese Mainland’s insurance companies will no longer be subject to the requirement of having "total assets of no less than US$2 billion at the end of the most recent year." The "Notice" is an important measure by the National Financial Regulatory Administration to expand financial opening-up in an orderly manner, NFRA added. It will help the Chinese Mainland insurance companies attract investments from high-quality Hong Kong and Macau financial institutions, further enhance their capital strength, optimize their equity structure, and deepen open cooperation with Hong Kong and Macau, promoting the long-term prosperity and stability of Hong Kong and Macau.

Hong Kong Launches First "New Industrial Acceleration Program" On February 24, the Hong Kong Science and Technology Parks Corporation (HKSTP) and Jean-Maire Pharmacal co-hosted the launch ceremony of the first "New Industrial Acceleration Program" project under the theme "A New Milestone for Hong Kong's New Industrialization" at Tai Po InnoPark in Hong Kong. Professor Sun Dong, Secretary for Innovation, Technology and Industry of the Hong Kong Special Administrative Region, stated in his speech that Jean-Maire Pharmacal is the first project to receive support from the New Industrialization Review Committee under the acceleration program. The company plans to establish a new facility and set up an advanced intelligent pharmaceutical production line at Tai Po InnoPark, showcasing confidence in Hong Kong's new industrialization with products developed and manufactured locally. Professor Sun highlighted that in 2022, the Hong Kong SAR Government released the "Hong Kong Innovation and Technology Development Blueprint," which explicitly focuses on developing strategic industries such as life and health technology, artificial intelligence and robotics, advanced manufacturing, and new energy technologies. The goal is to comprehensively accelerate Hong Kong's new industrialization and enhance new growth drivers. Building on this, early last year, Hong Kong optimized the "Re-industrialization Funding Scheme" to encourage traditional manufacturing industries to upgrade and transform using innovative technologies. To date, over 100 new intelligent production lines have been funded. In September last year, the Hong Kong SAR Government further advanced these efforts by launching the HKD 10 billion "New Industrial Acceleration Program," providing matching funds of up to HKD 200 million for enterprises in strategic industries to establish new intelligent production facilities in Hong Kong. Professor Sun emphasized that the Hong Kong SAR Government will continue to implement reforms, removing barriers and adopting innovative approaches in areas such as funding and land use to meet industrial development needs. The government aims to assist more enterprises in setting up new intelligent production facilities in Hong Kong, supporting the robust development of Hong Kong's innovation and technology industries. He looks forward to more successful cases in the future, strengthening the "Developed in Hong Kong, Manufactured in Hong Kong" brand, and accelerating the development of Hong Kong's new industrialization. 

SPP: The Annual Number of Securities Crime Prosecutions Nationwide Increased by 30.5% from 2022 to 2024 On February 21, at a press conference jointly held by the Supreme People's Procuratorate (SPP) and the China Securities Regulatory Commission (CSRC), Deputy Procurator General Ge Xiaoyan of the SPP stated that from 2022 to 2024, prosecutors nationwide filed 366 securities-related criminal cases involving 1,011 individuals, with the number of cases and individuals increasing annually by 30.5% and 16%, respectively. Ge Xiaoyan further emphasized that efforts to hold the "key minority" accountable, including major shareholders, actual controllers, and senior executives of listed companies, will continue to be intensified. She noted that between 2022 and 2024, prosecutors across the country filed 284 cases involving insider trading, market manipulation, and trading based on non-public information, involving 790 individuals. Efforts to hold the "key minority" within listed companies, financial institution personnel, and professional manipulation gangs—part of the black and grey industrial chains—accountable will be further strengthened. A number of cases with significant market impact have been handled, focusing on recovering illegal profits, eradicating the economic foundation for recidivism, and maintaining market trading order. Li Ming, Vice Chairman of the CSRC, stressed that the Commission will continue to take strong action to protect the fundamental interests of investors. He highlighted that the capital market is an important investment channel for hundreds of millions of ordinary citizens, and safeguarding investors' legal rights is a top priority for the CSRC.

HKSAR Appoints Directors to HKEX Board for a Term of around Two Years On February 20, the government of HKSAR announced that the Financial Secretary had reappointed Mr Carlson Tong Ka-shing and Mr Joseph Yam Chi-kwong as members of the Board of Directors of the Hong Kong Exchanges and Clearing Limited (HKEX), and appointed Ms Ding Chen as a member of the Board of Directors of the HKEX. The reappointments and appointment will take effect from the conclusion of the Annual General Meeting (AGM) of the HKEX in 2025 until the conclusion of its AGM in 2027, a term of around two years. Mr Paul Chan, the Financial Secretary, said, "Ms Ding has extensive experience in the financial services industry, in particular the asset and wealth management sector. She has a deep understanding of the securities market and wide connections with market participants, which are conducive to the diverse development of the HKEX in meeting the needs of different issuers and investors, as well as enhancing Hong Kong's status and function as a global financing hub." Mr Chan also expressed his sincere gratitude to the retiring director, Ms Nisa Leung, for her contributions to the development of the HKEX over the years. The above appointments are made in accordance with Section 77 of the Securities and Futures Ordinance. The Board of Directors of the HKEX comprises a maximum of six directors appointed by the Financial Secretary, a maximum of six directors elected by shareholders, and the Chief Executive of the HKEX. Other incumbent directors appointed by the Financial Secretary are Mr Chan Kin-por, Mr Herbert Chia Pun-kok and Mrs Susan Chow Woo Mo-fong.

HK's 3-year HKD Institutional Government Bonds Over-Subscribed. A total of HK$2.0 billion 3-year HKD institutional Government Bonds were offered today, with a total of HK$9.320 billion tender applications received. The bid-to-cover ratio, i.e. the ratio of bonds applied for to bonds issued, is 4.66, with the average price accepted is 98.80, implying an annualized yield of 3.391%. The Hong Kong Monetary Authority (HKMA) announced on its website, that a tender of 3-year HKD institutional Government Bonds through the re-opening of existing Government Bond under the Infrastructure Bond Programme was held today.

PBOC: Q4 2024 Loans to Tech SMEs Grew 21.2% Year-on-Year The outstanding balance of RMB loans at financial institutions reached a substantial 255.68 trillion yuan at the end of the fourth quarter of 2024， a year-on-year increase of 7.6%, with RMB loans growing by 18.09 trillion yuan throughout the entire year，as disclosed by PBOC on its official Wechat account today. The PBOC report highlighted the sustained high growth in medium and long-term loans to key sectors including industry, services, and infrastructure. As of the end of Q4 2024, medium and long-term loans in both local and foreign currencies to the industrial sector amounted to 24.58 trillion yuan, marking a 12.6% year-on-year increase. The report further emphasized the rapid expansion of green loans. By the end of Q4 2024, outstanding green loans in both local and foreign currencies stood at 36.6 trillion yuan, soaring by 21.7% year-on-year. Furthermore, the PBOC highlighted its continued support for technology and innovation. As of the end of Q4 2024, loans in both local and foreign currencies to technology-based small and medium-sized enterprises (SMEs) reached 3.27 trillion yuan, demonstrating a substantial 21.2% year-on-year increase.

DeepSeek Ignites Hong Kong Stock Rally The rise of DeepSeek has drawn market attention, driving the Hang Seng Tech Index up more than 20% from its low, officially entering a technical bull market and boosting overall Hong Kong stock sentiment. Analysts believe that AI advancements are shifting investor focus from market risks to growth potential. While Hong Kong stocks had been under pressure due to economic uncertainty and foreign capital outflows, DeepSeek’s success has fueled optimism about technological innovation and helped narrow the valuation gap between Hong Kong and U.S. stocks. The AI boom is boosting technology, healthcare, and cloud computing sectors, drawing increased investor interest. Following DeepSeek’s launch, major tech firms introduced new AI models, while healthcare companies accelerated AI adoption in medical applications. Meanwhile, the cloud computing industry is benefiting from rising AI computing demand, with key providers expected to expand their market share. Market sentiment has improved significantly, with increased trading activity in Hong Kong stocks. The Hang Seng Tech Index saw bullish options contracts nearly double bearish ones. Alibaba’s stock continues to rise amid speculation about a potential investment in DeepSeek, though company executives have denied the rumors. Meanwhile, Alibaba has brought in renowned AI scientist Steven Hoi to lead its AI To C business, strengthening its AI application strategy.