Afp Business Asia

Inflation in Japan slowed to 2.7 percent in August due partly to government energy subsidies, official data showed Friday, with the cost of rice easing following a huge price spike.Inflation continues to be driven by rice prices, which increased by 68.8 percent year-on-year in August after surges of around 100 percent in June and 90.7 percent in July.Voters angry about rising rice costs have deserted the long-dominant ruling Liberal Democratic Party, and this month an under-pressure Prime Minister Shigeru Ishiba announced he would step down after his coalition lost its majority in both chambers.Rice prices have skyrocketed because of supply problems linked to a very hot summer in 2023 and panic-buying after a “megaquake” warning last year, amongst other factors.The core inflation reading from the internal affairs ministry, which excludes volatile fresh food prices, was in line with market expectations, and was down on the 3.1 percent in July.Abhijit Surya of Capital Economics said the main factor behind the fall in inflation was “a deepening of energy price deflation… due to the resumption of electricity and gas subsidies”.But Taro Kimura, an analyst with Bloomberg Economics, said that a pullback in inflation “won’t change the big picture”.”Consumer prices will remain warm enough to keep the Bank of Japan on track to pare stimulus, likely as soon as October,” he added.Ishiba appointed a new farm minister and his government has released emergency stocks in an effort to bring prices down.Last month Japan announced a change in its decades-old policy of encouraging farmers to grow crops other than rice.US President Donald Trump also wants Japan to import more American rice.- Export woes -Last month, data showed that Japan’s economy grew at an annualised pace of 1.0 percent in the second quarter.The reading suggested the economy was suffering less than feared from US tariffs.But other data released this week showed exports to the United States plunged nearly 14 percent in August, with cars down 28.4 percent. The auto industry, which accounts for about a third of Japan’s exports to the United States, has been suffering under a 27.5 percent levy. However, on Tuesday, lower US tariffs on Japanese autos kicked in as Washington implemented a recent trade pact between the two countries. Vehicles will now face a 15 percent toll, the same as many other goods.While the implementation of the trade deal marked a win for Japan, the levies will continue to cause huge pain for the nation’s industries and Japanese business lobbies are hoping Tokyo will push on with fresh negotiations.Japan’s automobile industry, which includes major firms such as Toyota and Honda, accounts for around eight percent of the country’s jobs.

Stock markets advanced Thursday, as tech shares jumped following AI-chips giant Nvidia’s announcement of a $5 billion investment in struggling US rival Intel, and as investors digested the Federal Reserve’s first interest rate cut of 2025.The tech-heavy Nasdaq led gains on Wall Street, with Intel shares soaring nearly 23 percent and Nvidia gaining more than three percent.All three major US indices finished at fresh records.The dollar gained against other major currencies.”Even if Intel needs handouts from its peers in Silicon Valley, investors like it,” said Kathleen Brooks, research director at trading platform XTB.Under the Nvidia-Intel deal, the companies will jointly develop chips for PCs and data centers.The deal comes on the heels of the United States taking a 10-percent stake in Intel, which has fallen behind in recent years after missing key technology shifts.The move propelled shares of other tech firms. In Europe, shares in ASML, a Dutch company that makes the machines used to produce semiconductors, surged more than seven percent.Other US semiconductor names were mixed. Micron jumped 5.6 percent while Advanced Micro Devices dropped 0.8 percent.Investors were also reacting to Wednesday’s US central bank decision to lower rates by 25 basis points.US stocks had finished mixed Wednesday over uncertainty about the path forward following the Fed’s announcement.But the mood changed Thursday, with investors confident that more cuts are coming this year, analysts said.”Markets are betting policymakers will continue to prioritize jobs over inflation, even with headline prices still running hot,” said Fawad Razaqzada, market analyst at City Index and FOREX.com.The decision to cut came even as US inflation runs well above policymakers’ two-percent target, but analysts said the main focus was on the jobs market.Fed policymakers are split between those who expect at least two interest rate cuts later this year and those who anticipate one or fewer.Fed boss Jerome Powell remained cagey, telling reporters decision-makers were approaching it “meeting by meeting.”Paris and Frankfurt stocks were up around one percent in afternoon deals, with German sentiment buoyed by a central bank statement saying Germany should dodge a technical recession in the immediate future.London rose less enthusiastically as the Bank of England kept its main interest rate at four percent in the face of the UK’s stubbornly high inflation, which stands at 3.8 percent.While Britain’s interest rate was kept unchanged, Norway’s central bank cut borrowing costs on Thursday, after a similar move by Canada on Wednesday.In Asia, investors were in a cautious mood on Thursday.Shanghai stocks retreated overall, and Hong Kong’s session also ended in the red.Tokyo closed in the green as the Fed decision boosted the dollar against the yen, helping Japanese exporters.- Key figures at around 2050 GMT -New York – Dow: UP 0.3 percent at 46,142.42 (close)New York – S&P 500: UP 0.5 percent at 6,631.96 (close)New York – Nasdaq: UP 1.2 percent at 22,470.73 (close)London – FTSE 100: UP 0.2 percent at 9,228.11 (close) Paris – CAC 40: UP 0.9 percent at 7,854.61 (close)Frankfurt – DAX: UP 1.4 percent at 23,674.53 (close)Tokyo – Nikkei 225: UP 1.2 percent at 45,303.43 (close)Shanghai – Composite: DOWN 1.2 percent at 3,831.66 (close)Hong Kong – Hang Seng Index: DOWN 1.4 percent at 26,544.85 (close)Euro/dollar: DOWN at $1.1785 from $1.1813 on WednesdayPound/dollar: DOWN at $1.3550 from $1.3626Dollar/yen: UP at 147.97 yen from 146.99 yenEuro/pound: UP at 86.96  pence from 86.69 penceWest Texas Intermediate: DOWN 0.8 percent at $63.57 per barrelBrent North Sea Crude: DOWN 0.8 at $67.44 per barrel

European stock markets rose while Asia was mixed on Thursday after the US Federal Reserve lowered interest rates but left investors wondering how many more cuts were in the pipeline.Paris and Frankfurt stocks rose more than one percent, with German sentiment buoyed by a central bank statement saying Germany should dodge a technical recession in the immediate future.London rose less enthusiastically as the Bank of England kept its own rate at four percent in the face of stubbornly high inflation, which stands at 3.8 percent in the UK.”Although we expect inflation to return to our two-percent target, we’re not out of the woods yet, so any future cuts will need to be made gradually and carefully,” BoE governor Andrew Bailey said in a statement.While Britain’s interest rate was kept unchanged, Norway’s central bank cut borrowing costs on Thursday, after a similar move by Canada on Wednesday.On the heels of recent economic reports showing weaker US jobs growth, the Fed on Wednesday said it would lower borrowing costs by 25 basis points, its first reduction since December.The decision to cut came even as US inflation runs well above policymakers’ two-percent target, but analysts said the main focus was on the jobs market.Fed policymakers are split between those who expect at least two interest rate cuts later this year and those who anticipate one or fewer.Fed boss Jerome Powell remained cagey, telling reporters decision-makers were approaching it “meeting by meeting”.After Powell’s comments, “markets were left feeling less confident on the extent of the likely easing cycle”, said Jim Reid, managing director at Deutsche Bank.US markets ended on a tepid note, with the Dow up but the broad-based S&P 500 and tech-heavy Nasdaq down.Asian investors were also cautious.Shanghai stocks retreated overall, and Hong Kong’s session also ended in the red.Tokyo closed in the green as the Fed decision boosted the dollar against the yen and other currencies, helping Japanese exporters.Seoul closed at a record high, fuelled by a tech stock surge led by Samsung Electronics and chipmaker SK hynix, which soared nearly six percent, following reports that China banned its tech firms from purchasing Nvidia chips.Chinese chip firms also surged after the Financial Times reported that China’s internet regulator had instructed firms including Alibaba and ByteDance to terminate orders for Nvidia’s RTX Pro 6000D chips.The state-of-the-art processors are made especially for China.- Key figures at around 1115 GMT -London – FTSE 100: UP 0.2 percent at 9,225.85 pointsParis – CAC 40: UP 1.2 percent at 7,878.11Frankfurt – DAX: UP 1.2 percent at 23,649.85Tokyo – Nikkei 225: UP 1.2 percent at 45,303.43 (close)Shanghai – Composite: DOWN 1.2 percent at 3,831.66 (close)Hong Kong – Hang Seng Index: DOWN 1.4 percent at 26,544.85 (close)New York – Dow: UP 0.6 percent at 46,018.32 (close)Euro/dollar: UP at $1.1830 from $1.1811 on WednesdayPound/dollar: UP at $1.3628 from $1.3626Dollar/yen: UP at 147.35 yen from 147.00 yenEuro/pound: UP at 86.81 pence from 86.70 penceWest Texas Intermediate: FLAT at $64.07 per barrelBrent North Sea Crude: FLAT at $67.97 per barrel

Equities wavered in Asia on Thursday after the Federal Reserve lowered interest rates but left investors wondering how many more cuts were in the pipeline despite boss Jerome Powell warning about the struggling jobs market.On the heels of recent economic reports showing weaker job growth, the US central bank said it would lower borrowing costs 25 basis points, its first reduction since December.The 11-1 decision to cut — US President Donald Trump’s appointee Stephen Miran voted for a 50-point cut — came even as inflation runs well above policymakers’ two percent target, but analysts said the main focus was on jobs. The bank’s closely watched forecast for future rates showed some division on the path forward, with a narrow majority of the 19 officials assessing the outlook eyeing two more cuts but seven projecting none.Powell remained cagey, telling reporters decision-makers were approaching it “meeting by meeting”.Michael Pearce of Oxford Economics said the figures showed a “stark divide” that was “unusual” and that the October move could depend on jobs figures.US markets ended on a tepid note, with the Dow up but S&P 500 and Nasdaq down.Asian investors were also cautious.Tokyo closed in the green as the Fed decision boosted the dollar against the yen and other currencies, helping Japanese exporters, while Shanghai retreated by day’s end. Hong Kong’s session ended in the red as well.Seoul closed at a record high, fuelled by a tech stock surge led by Samsung Electronics and chipmaker SK hynix, which soared nearly six percent, following reports that China banned its tech firms from purchasing Nvidia chips.Taipei and Manila rose, while there were losses in Sydney, Wellington, Singapore and Jakarta.London, Paris and Frankfurt were up.”The selloff in rates markets after the presser suggests that investors were looking for Powell to lean more decisively toward the employment mandate,” said economists at Bank of America.”We stick with our view that the Fed will cut only once more this year, in December.”However, after Powell’s comment that (the) rate cut ‘isn’t just one action’, the risk has risen that the second cut will be pulled forward to October (with potentially a third cut in December).”Jack McIntyre at Brandywine Global, part of Franklin Templeton, said the Fed is “putting more emphasis on the softening in the labour market”.”The weakening labour market will have a deleterious impact on inflation, so the Fed is willing to wait out sticky inflation.”The split in the Fed outlook “probably means more volatility in financial markets next year”, he added. Gold prices held losses around $3,660, having spiked on Wednesday at a record above $3,707.In company news, Chinese chip firms surged after the Financial Times reported that China’s internet regulator had instructed firms including Alibaba and ByteDance to terminate orders for Nvidia’s RTX Pro 6000D chips.The state-of-the-art processors are made especially for China.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: UP 1.2 percent at 45,303.43 (close)Shanghai – Composite: DOWN 1.2 percent at 3,831.66 (close)Hong Kong – Hang Seng Index: DOWN 1.4 percent at 26,544.85 (close)London – FTSE 100: UP 0.3 percent at 9,232.14Euro/dollar: UP at $1.1825 from $1.1811 on WednesdayPound/dollar: UP at $1.3632 from $1.3626Dollar/yen: UP at 147.26 yen from 147.00 yenEuro/pound: FLAT at 86.74 pence from 86.70 penceWest Texas Intermediate: DOWN 0.3 percent at $63.87 per barrelBrent North Sea Crude: DOWN 0.2 percent at $67.81 per barrelNew York – Dow: UP 0.6 percent at 46,018.32 (close)

US stocks finished mixed Wednesday while the dollar moved higher as markets digested the Federal Reserve cutting interest rates for the first time in 2025 and signaling it could enact two more cuts this year.The moves largely corresponded to market expectations and follow recent economic reports showing weaker job growth that Fed Chair Jerome Powell said justified a greater focus on the central bank’s labor market mandate compared with inflation.Equities initially strengthened on the decision, but trading was choppy thereafter as markets digested Powell’s press conference while trying to parse whether his message was more dovish or hawkish than expected.The dollar initially retreated but later strengthened, with gains against the euro and other currencies compared with Tuesday.The bounce in the dollar “could reflect the market’s view that the Fed didn’t sound quite as dovish as markets had hoped,” said James Stanley, senior strategist at Forex.com.”That said, it would be difficult to call a rate meeting when the bank cut rates and warned that rate cuts were expected at the final two meetings of this year as anything but dovish.”Fed policymakers walk a tightrope balancing inflation and labor market risks as they mull changes to interest rates.On Wednesday, the Fed said that “downside risks to employment have risen,” even as inflation has picked up and “remains somewhat elevated.”It noted that job gains have slowed while the unemployment rate — despite being low — also inched up.Based on the projections released Wednesday, policymakers appeared to be close to evenly split between those who expect at least two interest rate cuts later this year and those who anticipate one or fewer.Powell himself reiterated that additional interest rate actions would depend on upcoming economic data.A note from EY-Parthenon economist Gregory Daco said the Fed may proceed “more gradually” and make fewer than two additional cuts in 2025.”An October cut remains possible but would likely require a negative” September jobs report, said Daco, who currently anticipates a second 25-basis-point interest rate cut in December.In Europe, London and Frankfurt stocks ended the day higher while Paris dipped.In Britain, data showing UK inflation held at 3.8 percent in August reinforced expectations that the Bank of England will maintain its key rate on Thursday and for the remainder of 2025.The Bank of Canada cut its key lending rate as expected on Wednesday. Asian stocks traded mixed, after Tuesday’s tepid showing on Wall Street. – Key figures at around 2100 GMT -New York – Dow: UP 0.6 percent at 46,018.32 (close)New York – S&P 500: DOWN 0.1 percent at 6,600.35 (close)New York – Nasdaq: DOWN 0.3 percent at 22,261.33 (close)London – FTSE 100: UP 0.1 percent at 9,208.37 (close)Paris – CAC 40: DOWN 0.4 percent at 7,786.98 (close)Frankfurt – DAX: UP 0.1 percent at 23,359.18 (close)Tokyo – Nikkei 225: DOWN 0.3 percent at 44,790.38 (close)Shanghai – Composite: UP 0.4 percent at 3,876.34 (close)Hong Kong – Hang Seng Index: UP 1.8 percent at 26,908.39 (close)Euro/dollar: DOWN at $1.1811 from $1.1867 on TuesdayPound/dollar: DOWN at $1.3626 from $1.3647Dollar/yen: UP at 147.00 yen from 146.48 yenEuro/pound: DOWN at 86.70 pence from 86.95 penceWest Texas Intermediate: DOWN 0.7 percent at $64.05 per barrelBrent North Sea Crude: DOWN 0.8 percent at $67.95 per barrelburs-jmb/mlm

Stock markets diverged and the dollar steadied as investors expected the US Federal Reserve to cut interest rates Wednesday to shore up the world’s biggest economy.Traders took a breather from the global rally that lifted several indexes to record highs over recent weeks, as they anticipated the Fed decision and post-meeting comments by bank boss Jerome Powell.Wall Street stocks were mixed in late morning trading, with the blue-chip Dow rising while the tech-heavy Nasdaq Composite slipped.In Europe, London and Frankfurt stocks ended the day higher while Paris dipped.”The Fed meeting… is one of the most hotly anticipated for the year so far,” said Kathleen Brooks, research director at XTB trading group.While a 25-basis-point reduction — the first of 2025 — has been baked into valuations for some time, the main debate has revolved around how many more cuts are in the pipeline and how big they will be.”(Donald) Trump will be central to this meeting,” Brooks said, citing the pressure the US president has put on the Powell and the Fed to cut rates.Expectations for an extended period of easing have grown out of a string of data showing the US labour market is not as healthy as first thought. That comes even as inflation remains stubbornly above the Fed’s two-percent target, though the feared spike in prices caused by Trump’s tariff war has not fully materialised.Economists expect to see divisions among decision-makers as they try to walk the line between tempering inflation and supporting jobs.Investors will be looking to the Fed’s updated Summary of Economic Projections (SEP), released after the meeting, to get an idea whether the voting members on the Fed’s monetary policy committee see a similar pace of interest rate cuts.The Fed Funds futures market predicts two more rate cuts this year and three in 2026.Investors will also be listening to what message Fed Chair Jerome Powell delivers after the meeting.”The market wants some tacit assurances that this is not a one-and-done rate cut,” said Briefing.com analyst Patrick O’Hare.In particular, investors will be listening to whether the Fed is currently worried more about employment or price stability, and more about labour market concerns, said O’Hare. “Failing that, and a projected pathway for two more rate cuts this year and at least three cuts next year, there will be room for disappointment in the price action,” he said.In Britain, data showing UK inflation held at 3.8 percent in August reinforced expectations that the Bank of England will maintain its key rate on Thursday and for the remainder of 2025.The Bank of Canada cut its key lending rate as expected on Wednesday. Asian stocks traded mixed, after Tuesday’s tepid showing on Wall Street. Gold prices retreated from their record above $3,700 an ounce reached Tuesday, as the likelihood of lower US interest rates makes the precious metal more attractive to investors.Shares in Nvidia fell 2.8 percent following a report that Beijing had barred major Chinese tech companies from buying the company’s world-leading AI chips.- Key figures at around 1530 GMT -New York – Dow: UP 0.6 percent at 46,049.07 pointsNew York – S&P 500: DOWN 0.1 percent at 6,597.42 New York – Nasdaq: DOWN 0.5 percent at 22,215.31 London – FTSE 100: UP 0.1 percent at 9,208.37 (close)Paris – CAC 40: DOWN 0.4 percent at 7,786.98 (close)Frankfurt – DAX: UP 0.1 percent at 23,359.18 (close)Tokyo – Nikkei 225: DOWN 0.3 percent at 44,790.38 (close)Shanghai – Composite: UP 0.4 percent at 3,876.34 (close)Hong Kong – Hang Seng Index: UP 1.8 percent at 26,908.39 (close)Euro/dollar: DOWN at $1.1850 from $1.1868 on TuesdayPound/dollar: UP at $1.3662 from $1.3657Dollar/yen: DOWN at 146.34 yen from 146.49 yenEuro/pound: DOWN at 86.73 pence from 86.87 penceWest Texas Intermediate: DOWN 0.6 percent at $64.11 per barrelBrent North Sea Crude: DOWN 0.6 percent at $68.04 per barrelburs-rl/jxb

Nvidia chief executive Jensen Huang on Wednesday said he was disappointed by a report that Beijing has barred major Chinese tech companies from buying his company’s world-leading chips, a crucial component in the generative AI revolution.California-based Nvidia’s specially designed chips have catapulted the company to become the world’s biggest by market capitalisation, with China seen as a crucial market.But geopolitical tensions between the United States and China have seen Nvidia caught up in relations between the superpowers.Washington restricts Nvidia from exporting its most advanced products to China and last month confirmed the company would pay the US government 15 percent of revenue from certain AI chip sales in the country.Beijing has responded by expressing national security concerns about Nvidia chips and urging Chinese businesses to rely on local semiconductor suppliers instead.In the latest development, the Financial Times reported on Wednesday that China’s internet regulator has instructed companies including Alibaba and ByteDance to terminate orders for Nvidia’s RTX Pro 6000D chips, state-of-the-art processors made especially for the country.”We can only be in service of a market if a country wants us to be,” Huang said at a press briefing in London, responding to a question about the FT report.”I’m disappointed with what I see, but they have larger agendas to work out between China and the United States. And I’m patient about it. We’ll continue to be supportive of the Chinese government and Chinese companies as they wish.”According to the FT, citing unnamed sources, the Cyberspace Administration of China ordered companies to end all testing and purchase plans for Nvidia’s restricted chips.The ban would follow a decision by Chinese regulators on Monday finding that Nvidia had run afoul of the country’s antitrust rules.Observers believe that Beijing’s moves to wean Chinese tech companies off Nvidia’s offerings are part of its effort to accelerate domestic production from companies like Huawei.

India’s participation in military exercises with Moscow and its  purchases of Russian oil “stand in the way of closer ties” with the EU, the bloc’s top diplomat Kaja Kallas said on Wednesday.”Ultimately, our partnership is not only about trade, but also about defending the rules-based international order,” Kallas said, as she announced the bloc’s strategy to strengthen EU-India ties.Alongside other Moscow allies including Iran, India has taken part in Russia’s Zapad (West) joint drills with Belarus this month, part of which took place close to NATO borders.”Participating in military exercises, purchases of oil — all these are obstacles to our cooperation when it comes to deepening the ties,” Kallas said.Despite a lack of alignment over Russia, the European Union and India are working to conclude talks on a free trade agreement by the end of 2025, amid New Delhi’s own tensions with Washington.US-India ties have been strained since President Donald Trump raised tariffs on most Indian exports to 50 percent last month in retaliation for New Delhi’s continued purchases of Russian oil.The EU is India’s largest trading partner, with trade between the two economic giants up 90 percent over the past decade, EU trade chief Maros Sefcovic said alongside Kallas in Brussels.Senior figures from India and the European Union hope to meet for a high-level summit early next year.”Now is the time to double down on partnerships rooted in shared interests and guided by common values. With our new EU–India strategy, we are taking our relationship to the next level,” EU chief Ursula von der Leyen said on X.The strategy also includes a bid to build stronger ties on defence and security as well as technology and climate issues.

Hong Kong’s leader outlined plans Wednesday to diversify the city’s economy and accelerate growth, including fast-tracking an ambitious border development project and establishing the artificial intelligence sector as a “core industry”.In his annual policy speech, Chief Executive John Lee reaffirmed a growth forecast of two to three percent for the year.His announcements come as the global financial hub — which beat estimates to grow by 3.1 percent in the second quarter — navigates volatile trade tensions between Washington and Beijing and a dampened economic climate in mainland China.Hong Kong was “moving through an irreversible economic transition, but it is an essential process for a stronger and more robust economy in the future”, Lee said in a nearly three-hour address, stating his “ultimate objective” was to improve citizens’ livelihoods.Central to his plan is accelerating the development of the Northern Metropolis, a mega-project aimed at urbanising land near the border with tech hub Shenzhen in mainland China.Lee said he would personally lead a new task force and introduce dedicated legislation to “fast-track” the initiative.To reduce costs and construction time, Lee pledged to adopt building technologies from China and overseas. The Northern Metropolis, first proposed in 2021, is envisioned to eventually cover a third of Hong Kong’s total land area. Activists and locals have raised concerns over its potential environmental impact as well as the strain it will put on the city’s public finances.- AI as ‘core industry’ -Hong Kong’s capital market has rebounded strongly this year, with dozens of companies from China piling into the city to raise overseas capital due to policy support from the Chinese government and optimised listing rules by Hong Kong regulators.On Wednesday, Lee said the city’s authorities would set up a task group to attract more Chinese enterprises to use the city for expanding their overseas businesses.Lee also vowed to promote artificial intelligence as a “core industry”, and to use the technology to improve governance efficiency.His administration has earmarked HK$1 billion to establish an AI research hub, he said, and will tender a 10-hectare site for a data centre cluster. Other measures announced Wednesday included plans to increase quotas for non-local students at the city’s public universities, and the establishment of gold storage facilities to solidify the city’s role as a “regional gold reserve hub”.

Hong Kong’s leader outlined plans Wednesday to diversify the city’s economy and accelerate growth, including fast-tracking an ambitious border development project and establishing the artificial intelligence sector as a “core industry”.In his annual policy speech, Chief Executive John Lee reaffirmed a growth forecast of two to three percent for the year.His announcements come as the global financial hub — which beat estimates to grow by 3.1 percent in the second quarter — navigates volatile trade tensions between Washington and Beijing and a dampened economic climate in mainland China.Hong Kong was “moving through an irreversible economic transition, but it is an essential process for a stronger and more robust economy in the future”, Lee said in a nearly three-hour address, stating his “ultimate objective” was to improve citizens’ livelihoods.Central to his plan is accelerating the development of the Northern Metropolis, a mega-project aimed at urbanising land near the border with tech hub Shenzhen in mainland China.Lee said he would personally lead a new task force and introduce dedicated legislation to “fast-track” the initiative.To reduce costs and construction time, Lee pledged to adopt building technologies from China and overseas. The Northern Metropolis, first proposed in 2021, is envisioned to eventually cover a third of Hong Kong’s total land area. Activists and locals have raised concerns over its potential environmental impact as well as the strain it will put on the city’s public finances.- AI as ‘core industry’ -Hong Kong’s capital market has rebounded strongly this year, with dozens of companies from China piling into the city to raise overseas capital due to policy support from the Chinese government and optimised listing rules by Hong Kong regulators.On Wednesday, Lee said the city’s authorities would set up a task group to attract more Chinese enterprises to use the city for expanding their overseas businesses.Lee also vowed to promote AI as a “core industry”, saying the government would also use the technology to improve governance efficiency. The government plans to establish an AI research hub, tender a 10-hectare site for a data centre cluster, and use AI to improve its own governance efficiency.Hong Kong will also establish gold storage facilities to solidify the city’s role as a “regional gold reserve hub”, he added.