Daily Buzz: 2 December 2025

China Tightens Grip on Cryptocurrencies

China's central bank has intensified its crackdown on virtual currencies, calling stablecoins illegal for the first time and vowing to step up enforcement against unlawful trading. The People's Bank of China said stablecoins lack adequate customer-identification and anti-money-laundering safeguards, leaving them vulnerable to money laundering, fraud and illicit cross-border transfers. The tougher stance reflects Beijing's long-standing priority of safeguarding monetary sovereignty and capital controls.

Stablecoins, which are pegged to fiat currencies or commodities, have grown into key instruments used in offshore trading, remittances and decentralized finance. But their semi-anonymous, cross-border nature makes them difficult to regulate within China's strict financial security framework. China's tough stance on stablecoins cast a shadow over Hong Kong's ambitions to become a regulated hub for the cryptocurrency, the South China Morning Post reported. The city has announced pilot programs for the use of stablecoins in the city.

In New York trading on Monday, Bitcoin and other cryptocurrencies continued a sell-off that began last month as investors moved away from riskier assets amid uncertainty about the strength of technology share rallies and the US economy. Bitcoin was down 6.5 percent at US$85,616 in late afternoon trading.

HK Arrests 13 in Fire Probe, Search for Missing Continues

Hong Kong investigators probing the fire that raced through an eight-block residential complex last week said it appears the contractor of the renovation project at the site cut corners by swathing the buildings in netting that was not fire retardant. Officials said 13 people, including company directors and subcontractors, have been arrested on charges of suspected manslaughter. The disclosure came as the death toll in the fire rose to 151, with the search for at least 50 missing people hampered by the condition of bodies burned in the 40-hour fire.

China to Welcome French President on State Visit

French President Emmanuel Macron begins a three-day state visit to China on Wednesday, his first in two years. Le Monde newspaper said his talks with Chinese leaders will largely focus on economic issues and a "rebalancing" of sometimes strained Sino-EU relations. The trip comes as Macron faces political troubles back home, where a fractured parliament has stifled many of his initiatives. He also remains deeply unpopular in public opinion polls. In the year ended September 30, China exports to France totaled US$4 billion; imports were valued at US$3.8 billion.

Swiss Voters Reject New Tax on Super Rich

Voters in Switzerland, a country that attracts the wealthy with its benign tax laws, rejected a referendum proposal to impose a 50 percent inheritance tax on multi-millionaires to raise money to fight climate change. The measure was rejected by 78 percent of voters. In a separate ballot, 84 percent of voters rejected a proposal to introduce mandatory military or civic duty for both men and women. Switzerland holds plebiscites four times a year to give citizens a direct say in policymaking.

Top Business

Asian Bonds Slide, Global Markets Slump

Japanese government bond yields climbed to their highest levels in more than 15 years on Monday, triggering a broad sell-off across Asian bond and currency markets and fueling concerns over a reversal of global liquidity that has long supported risk assets, including cryptocurrencies.

Japan's 10-year yield hit 1.86 percent and the two-year yield rose to 1 percent, their highest since 2008. Although the levels remain low by global standards, the rise marks a structural shift for an economy anchored for decades to near-zero rates. Investors say the shift threatens to unwind the yen carry trade, a strategy under which global funds borrow cheap yen to buy higher-yielding assets worldwide.

The yen rose against the US dollar and other global currencies after Bank of Japan Governor Kazuo Ueda gave the strongest indication to date that a December interest rate increase is under consideration to shore up an embattled yen. Yields on government bonds in India, Vietnam, South Korea, Malaysia and Singapore also rose. Despite the volatility, China's A-share markets climbed. The Shanghai Composite gained 0.65 percent, led by consumer electronics led and non-ferrous metals. In New York, the Dow Jones index snapped a five-day rally to close down nearly 1 percent and the Nasdaq lost 0.4 percent as yields on US Treasury bonds rose. European stocks also fell.

ByteDance Rolls Out AI Voice Control Tool in Tandem with ZTE

Chinese tech giant ByteDance rolled out an artificial intelligence voice control tool that will debut on a smartphone made by ZTE, Reuters reported. the AI assistant, powered by ByteDance's popular Doubao large language model, allows users to voice activate tasks such as finding content and booking tickets. It will compete with similar technologies introduced by Chinese smartphone makers Huawei and Xiaomi. At the same time, Apple said it will partner with Alibaba to develop

AI features for iPhones in the country. ByteDance, owner of the popular TikTok platform, said it has no plans to develop its own smartphones.

China's Zeekr Debuts in German Car Market

Geely-owned Chinese electric carmaker Zeekr began selling cars in Germany on Monday, with three models priced from 37,990 euros (US$44,065), Reuters reported, citing Elektroauto-News. Zeekr's move is part of an expansion by Chinese automakers into the European market amid sagging domestic sales in China. Mainland carmakers are betting that their expertise in electric vehicles will stead them well on an environmentally conscious continent. Zeekr is targeting the middle of the German retail car market and on operators of car fleets. The company plans to expand into Spain, Italy, France and Britain next year.

Economy & Markets

China's New Home Prices Edge Up, Resales Drop

China's new home prices rose in November, but prices in the existing housing market declined, according to property research firm China Index Academy, suggesting the nation's trouble real-estate sector has yet to hit bottom. Prices for new homes in the month rose 0.37 percent from October, notching up from a 0.28 percent gain in the prior month. Resale prices fell 0.94 percent, accelerating from a 0.84 percent decline in October. The market has been hit by a liquidity crunch that began in 2021 with developer defaults. Sentiment was further undermined last week after Vanke, once China's biggest developer, said it is seeking talks with creditors to delay payment on a 2 billion yuan (US$283 million) bond due on December 15.

Global Factory Activity Weak, Except in Southeast Asia

Manufacturing activity was weak across the world in November amid subdued domestic demand and tariff uncertainties, Reuters reported. The only positive spots were Southeast Asia and the UK, where monthly readings showed expansion. US manufacturing activity contracted for the ninth straight month in November, slipping from reading of 48.7 to 48.2. A reading of 50 separates expansion from contraction. Factory activity in the EU slipped into contraction from month-earlier expansion, with marked deterioration in Germany. In Asia, China manufacturing contracted for an eighth month albeit at a slower pace, with contraction also prevailing in South Korea and Taiwan. However, factory activity expanded in Indonesia, Vietnam, Malaysia and India.

OPEC+ Sticks to Pause in Output Increases

Oil cartel OPEC+ reaffirmed its plan to pause production increases in the first quarter of next year at a Sunday meeting that came amid concerns about the prospect of US military action against oil producer Venezuela. Benchmark Brent crude prices rose 1.6 percent to US$63.35 in New York.

Corporate

Canon Closes China Printer Plant

Japan's Canon has closed its printer factory in the southern city of Zhongshan amid increasing market competition. The plant, established in 2001, was a major production site for Canon laser printers, employing about 1,400 workers. The market share of China's domestic laser printers jumped from 16 percent in 2010 to 42 percent in 2024, while that of Canon dropped to 6.4 percent in China last year.

Nvidia Unveils AI Software for Self-Driving Cars

US chip giant Nvidia released new Alpamayo-RI open-source software aimed at speeding up the development of self-driving cars with AI techniques that translate what sensor banks see on the road into a description using natural language. Nvidia on Monday announced a US$2 billion investment in Synopsys, a US company that supplies electronic design automation.

Leapmotor Posts Surge in Deliveries, Li Auto's Drop

Automaker Leapmotor said November vehicle deliveries surged 75 percent from a year earlier to 70.327. It launched its Lafa5 sports coupe last week. The Hangzhou-based company specializes in electric vehicles. Rival electric carmaker Li Auto reported a 32 percent drop in monthly deliveries to 33,181 vehicles.

China Southern Air Unit, Airbus Helicopters Sign Accord

China Southern Airlines general aviation arm signed an agreement with Airbus Helicopters for a global maintenance center in the southern city of Zhuhai. Terms and value of the accord weren't made public. The two companies worked together in the past on acquisition of helicopter fleets for offshore oil operations.