Hong Kong Stocks Gain as Alibaba, Crypto Plays Rally
The uptick came amid broad-based optimism across Asian markets, driven by encouraging US economic data and upbeat earnings from major American companies. The MSCI Asia-Pacific ex-Japan Index advanced around 0.7%, hitting its highest level since 2021, with Hong Kong equities among the top regional performers.
Tech stocks led the charge, with Alibaba surging nearly 2.9%, supported by China's latest GDP figures and reports of US approval for Nvidia chip sales to China. Investors interpreted the developments as a positive sign for China's tech ecosystem and export-sensitive industries.
Meanwhile, cryptocurrency-related shares also rallied. Names such as Linekong posted gains of up to 7%, following the US House of Representatives' passage of a stablecoin regulatory bill. The move sparked hopes for greater legitimacy and global adoption of digital assets, offering a tailwind for crypto-linked companies in Hong Kong.
Despite ongoing global trade tensions, investor sentiment was buoyed by strong US retail sales and labour market data, which helped ease concerns about broader economic headwinds. The continued rebound in semiconductor demand further added to market confidence, especially among tech-heavy bourses like Hong Kong.
Outlook: Investors will now shift focus to upcoming Chinese economic releases and further US earnings results. With sentiment on firmer footing, market participants are cautiously optimistic about the Hang Seng's ability to sustain its recent upward momentum. Related
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New Straits Times
an hour ago
- New Straits Times
Easing foreign equity caps may boost FDI but raises sovereignty risks, say economists
KUALA LUMPUR: Easing foreign equity limits in strategic sectors may unlock fresh foreign direct investment (FDI) inflows into Malaysia but also pose structural and sovereignty-related risks, economists said. Malaysia has gradually liberalised its foreign equity rules including allowing up to 100 per cent ownership in the manufacturing sector since 2009. The country, however, still imposes significant limits in sectors like telecoms, finance, insurance, agriculture, property and healthcare. Investment, Trade and Industry Ministry last week reportedly said it was in talks with regulators and key industries about relaxing foreign ownership limits as part of efforts to reduce the 25 per cent US tariff on Malaysian goods. UCSI University Malaysia associate professor in finance and research fellow at Centre for Market Education Dr Liew Chee Yoong said the economic and structural impacts would likely be multifaceted. Liew said relaxing equity limits in Malaysia could potentially boost FDI inflows by 15-25 per cent in selected sectors, offering much-needed capital for infrastructure upgrades and technological progress. "This could facilitate valuable knowledge transfer, particularly in areas like 5G deployment, financial technology and cloud infrastructure," he told Business Times. Greater competition from foreign players could spur innovation and may lead to more competitive pricing for consumers, he added. "Strengthening linkages with global corporations might also bolster Malaysia's position within international supply chains," he said. Liew said the push for Malaysia to ease the caps is driven by a combination of interrelated factors. "Primarily, the US seeks enhanced market access for its corporations, particularly large financial institutions, telecommunications providers and technology firms, enabling them to gain controlling stakes and greater operational influence within Malaysia's developing economy. "This push also aims to secure competitive parity for US companies against regional rivals, such as Singaporean or Chinese firms, which may operate under different frameworks or have established significant regional headquarters." He added that these kinds of requests are frequently used as bargaining tools in broader trade talks, such as under the Indo-Pacific Economic Framework, to gain certain advantages. From a geopolitical standpoint, strengthening economic ties through investment is a strategic move to offset China's growing influence in the region, he said. Balancing growth and sovereignty Liew said one of the main advantages from the possible relaxation is the substantial inflow of foreign capital, which plays a crucial role in enhancing national infrastructure and supporting the growth of high-value industries. He added that gaining access to advanced technologies and international best practices could boost productivity and competitiveness, create jobs in higher-value sectors, and deepen economic ties with key partners such as the US. "However, these advantages are counterbalanced by substantial risks. Foremost is the erosion of control over strategic national assets and key industries, raising sovereignty concerns. "Domestic firms, particularly small and medium enterprises and Bumiputera-owned companies, face the risk of marginalisation or acquisition," he added. Liew said the disruption to long-standing socio-economic policies designed to ensure equitable wealth distribution could have significant political and social repercussions. "Furthermore, substantial profit outflows from foreign-controlled entities could negatively impact Malaysia's foreign exchange reserves and current account stability over time," he added. Putra Business School associate professor Dr Ahmed Razman Abdul Latiff said Malaysia imposes equity restrictions to promote greater local participation in industries and to ensure that wealth distribution benefits local investors and, ultimately, the broader population. "Lifting up such restrictions is still doable as long as the initial objectives are maintained or strengthened. "Maybe no longer through equity participation but perhaps with higher technology transfer such as technical know-how and co-sharing of intellectual properties rights," he added. Razman said this approach helps accelerate innovation within local industries and enables the development of competitive homegrown products, which in turn supports the long-term sustainability of local businesses. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said opening up Malaysia's economic sectors to foreign investors must be done thoughtfully to safeguard local interests. "At the same time, we would also want our local companies to be able to compete effectively and be able to penetrate the overseas market," he said. Current landscape of foreign equity in Malaysia Afzanizam said as of June 2025, foreign ownership in Malaysian equities stood at 19 per cent, down from the historical peak of 25.1 per cent recorded in June 2013. This comes despite the market's appealing valuation, with the FTSE Bursa Malaysia KLCI trading at a price-to-earnings ratio of around 14 times, compared to the historical average of 17 times. "Among the criticisms is the liquidity of the stocks as the large companies, especially the government linked companies are being held by domestic institutions such as the government linked investment companies. "This has led to the amount of available stocks to invest is not economically viable for the foreign institution to invest from the liquidity stand point," Afzanizam told Business Times. Meanwhile, Liew said many service industries in Malaysia still face strict foreign ownership limits. For example, the telecommunications sector generally allows up to 49 per cent foreign ownership, while commercial banks are subject to a lower cap of 30 per cent. Investment and Islamic banking are typically limited to 49 per cent as well. "The insurance sector allows up to 70 per cent foreign ownership. Further limitations apply to agriculture and property, such as thresholds between 30 per cent and 50 per cent for agricultural land. "Crucially, the long-standing Bumiputera policy, mandating a 30 per cent equity share for Bumiputera interests, continues to influence ownership structures across various sectors," he shared. Key industries likely under review Afzanizam said Tengku Zafrul may have been referring to key sectors such as telecommunications and banking, given their significant role in Malaysia's economy. Sharing a similar view, Liew noted that the telecommunications sector is currently subject to a 49 per cent foreign ownership cap, which impacts major companies like Maxis Bhd and Axiata Group Bhd. He added that banking restrictions are even more pronounced, with commercial banking limited to 30 per cent foreign ownership and investment banking to 49 per cent. "Other sectors likely under discussion include professional services such as legal, accounting, and engineering firms, which often face limits between 30 per cent and 49 per cent; private healthcare, capped at 30 per cent; and potentially defence-related industries or critical transport infrastructure like ports and airports, deemed vital for national security and sovereignty," Liew said.
The Sun
2 hours ago
- The Sun
Trump and Xi may meet before or during October APEC summit in South Korea
SEOUL: U.S. President Donald Trump may visit China before attending the Asia-Pacific Economic Cooperation (APEC) summit in October or meet Chinese leader Xi Jinping on the sidelines of the event in South Korea, according to a report by the South China Morning Post. The two leaders could discuss ongoing trade disputes, as both nations attempt to negotiate an end to escalating tariffs that have disrupted global supply chains. Trump has pushed for higher tariffs on imports, including a 55% rate on Chinese goods, arguing it will boost domestic manufacturing. Critics, however, warn this could raise prices for American consumers. A deadline of August 12 has been set for the U.S. and China to reach a long-term trade agreement. A Trump spokesperson did not comment on the reported meeting plans. The most recent high-level talks between the two countries occurred on July 11, when U.S. Secretary of State Marco Rubio and Chinese Foreign Minister Wang Yi held discussions in Malaysia. Rubio confirmed that Trump had received an invitation to visit China, stating both leaders 'want it to happen.' Meanwhile, China's Commerce Minister Wang Wentao emphasized the need to stabilize trade relations, suggesting recent talks in Europe indicated a tariff war was unnecessary. - Reuters
The Star
2 hours ago
- The Star
40-year crunch with a cult following
Recipe for success: A worker preparing an order of muruku in Guar Perahu, Bukit Mertajam — Bernama BUKIT MERTAJAM: A proudly Malaysian-made snack has stood the test of time since 1984, gaining loyal customers locally and abroad thanks to its unique recipe passed down through the generations. The homegrown brand, run by a husband and wife team from Guar Perahu, here, continues to thrive with its authentic flavours and commitment to natural ingredients. Idris Alias, 67, and Fatimah Ishak, 63, started their muruku business from home after Fatimah inherited the recipe from her mother-in-law. Fatimah said the uniqueness of their product lies in its use of natural ingredients without any colouring and it contains no eggs, anchovies or other animal-based products. 'Because of that, our muruku is suitable for those on a vegetarian diet,' she told Bernama. She said that when they first started the business, she was seven months pregnant. 'As a result, we only made small batches. We had little capital, but I still gave it a try by taking orders from friends. 'We started at home and gradually expanded our business. Nine years ago, we opened a shop in Kubang Semang. 'We reinvested our profits and the business gradually grew,' she said. Fatimah said over 85% of their customers are from the Chinese community, with Chinese New Year being the peak season every year. 'We once received an order from Taiwan but had to turn it down due to high shipping costs. However, the customer came here personally and bought a large quantity to bring back,' she said. Fatimah said they currently use two frying machines, although only one operates on normal days with a production capacity of 150kg per day. During festive seasons, output can reach up to 200kg daily. Meanwhile, Idris shared that their family business is now supported by their son and daughter-in-law. Speaking about the challenges faced as entrepreneurs, he said limited operating space remains the main issue in meeting high demand, which has even led them to decline offers to place their product in a convenience store chain. Nevertheless, the couple is determined to expand the business in the future, with hopes of passing it on to their only child. 'My advice to young entrepreneurs is to first identify your product and your target customers. Patience is essential in the business world. 'Most importantly, as Muslims, we must always give charity and pay zakat. That is the key to sustained blessings, not just in terms of income, but also health,' Idris said.
