Daily Buzz: 31 December 2025

China-Founded AI Startup to Be Acquired by Meta

US technology giant Meta, which operates platforms like Facebook, Instagram and WhatsApp, and has been on an AI spending spree this year, said it will acquire AI startup Manus, which was founded in 2022 in Beijing but has since relocated to Singapore. No financial details were disclosed, but the Wall Street Journal reported the deal is valued at over US$2 billion, ranking among Meta's larger AI-related acquisitions. The company, once hailed as China's next DeepSeek, gained attention earlier this year with the release of what it claimed was the world's first general AI agent capable of making decisions and executing tasks autonomously, requiring much less prompting than other chatbots. Meta said it will operate and sell the Manus service, and integrate it into its consumer and business products.

Manus began as a product of Beijing-based startup Butterfly Effect before evolving into a separate entity. Earlier this year, the company raised US$75 million in a fundraising backed by venture capital firm Benchmark, China tech giant Tencent and private equity firm HongShan Capital.

Manus said the Metal deal validates its pioneering work with general AI agents, helping users tackle research, automation and complex tasks. "Joining Meta allows us to build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made," said Manus Chief Executive Xiao Hong.

CIA Strike at Venezuelan Port Revealed

The US Central Intelligence Agency carried out a drone attack recently on a port facility in Venezuela, the first know onshore strike, the New York Times reported, after President Donald Trump alluded to the incident. The attack, not previously made public, hit a remote dock on the Venezuelan coast that the US claims was a base for gangs storing illegal drugs and loading them onto ships. There were no casualties reported. Washington's military campaign against drug trafficking has been otherwise confined to attacking vessels on the high seas. The Trump administration is also trying to force Venezuelan President Nicolas Maduro out of office.

Israel Bans Aid Organizations, Citing Technicality

Israel announced a ban on dozens of aid organizations working in Gaza, including high-profile groups such as Doctors Without Borders, the International Rescue Committee and ActionAid. Israel claims the groups failed to meet stringent new requirements to hand over personal details of Palestinian and international staff deployed Gaza. The announcement came days after the UN said Israel has violated its ceasefire obligations by continuing to restrict aid to the war-ravaged territory, where recent winter storms destroyed thousands of tents in refugee camps and the collapse of sanitation facilities leaves 740,000 people exposed to toxic flooding.

Separately, US President Donald Trump said this week that Israeli President Isaac Herzog told him a pardon for Prime Minister Benjamin Netanyahu is "on its way." Herzog's office denied the claim, saying it has had no conversations with Trump since Netanyahu requested a pardon in late November. He was indicted on charge of bribery, fraud and breach of trust in 2019, but his trial is suspended as long as he remains in office.

SK President to Visit China

South Korean President Lee Jae-myung will make a state visit to China from January 4-7 at the invitation of Chinese President Xi Jinping, according to China's Ministry of Foreign Affairs. A delegation of 200 businessmen, including the heads of Samsung, SK Hynix, Hyundai and LG, will accompany Lee.

Top Business

Hong Kong Caps Stellar IPO Year With Flurry of New Listings

The Hong Kong stock exchange capped its status as this year's biggest global IPO market on Tuesday, with the start of trading by six companies that raised an aggregate HK$7 billion (US$900 million) in new share sales. Five of the six companies are Chinese mainland-based, and the sixth has close ties with China; all the debuts ended with gains. The biggest IPO of the day was US-based Insilico Medicine, which uses AI to develop new drugs. The company, which says it is building a "digital Einstein" in biotechnology and is backed by the Hong Kong Investment Corp, Shanghai-based drugmaker Fosun and Chinese tech giant Tencent, raised HK$2.3 billion. Its shares closed up 25 percent from their offer price.

In the other trading debuts, Shenzhen-based OneRobotics, a maker of smart home robotic systems, closed up 0.07 percent from its offer price after a HK$1.6 billion IPO. Beijing-based software company 51World Digital Twin Technology shares rose 30 percent, and Shanghai-based Forest Cabin Cosmetics Group gained 9.3 percent. Shenzhen-based Xunce Technology, which provides real-time data infrastructure and analytics, increased 1.04 percent, while Shanghai-based USAS Building System, which markets pre-engineered metal buildings, added 7.6 percent.

Looking to the new year, Shanghai-based Biren Technology's HK$4.85 billion IPO is scheduled to begin trading on January 2. Beijing-based Zhipu AI, aiming for a January 8 debut, set its offer price at HK$116.20, seeking to raise HK$4.35 billion in what will be the first Chinese mainland AI large-language developer to go public in the city. Also in the pipeline for January debuts are Shanghai-based AI company MiniMax, chipmaker Iluvatar CoreX Semiconductor and Shenzhen-based Edge Medical.

US Grants Samsung, SK Hynix Licenses for China Shipments

The Trump administration has granted annual licenses to South Korea's Samsung Electronics and SK Hynix to ship chipmaking equipment to their factories in China, Reuters reported. The approval eases fears after the US earlier revoked license waivers for the companies amid a crackdown on suppliers of chips and related equipment to China. US approval is required under "validated end user status" for companies that also do business with the US.

Economy & Markets

China Set to Overtake Japan in Auto Sales

Chinese automakers are on track to surpass Japan in global vehicle sales in 2025, ending Japan's more than two-decade reign as the world's top-selling auto producer, based on data from automakers and S&P Global Mobility. China's global vehicle sales this year are expected to show a 17 percent rise from 2024 to about 27 million units, while sales by Japanese carmakers are expected to remain flat at around 25 million units. Data from the China Association of Automobile Manufacturers show that China's vehicle output and sales hit record highs in November. New-energy vehicles and overseas expansion by firms such as BYD have been key drivers of growth.

China Pares VAT on Home Resales

China will cut or waive the value-added tax on resale of homes, effective January 1, in its latest move to shore up a property market mired in a prolonged slump, the South China Morning Post reported. Under the new rules, individuals who sell a residential property within two years of buying it will pay a tax of 3 percent, down from 5 percent, according to a joint statement released on Tuesday by the Ministry of Finance and the State Taxation Administration. Sellers who have held their homes for two years or longer would continue to enjoy a VAT exemption, the statement said. The policy does not apply to corporate sellers. The resale market is seen as a more promising segment than new home sales, which fell 11 percent in the first 11 months of the year. The home resale provisions were part of an administrative announcement clarifying how VAT will be applied in the new year to transactions of goods, services and real estate, and will be implemented on exports and some cross-border sales.

Is the AI Boom a Bubble? Hear What a Robot Says

Unitree G1 humanoid robot Koid was asked by CNBC if the AI boom is actually a bubble. "Only time will tell," the AI-powered robot replied, adding that the technology will become more integrated into daily life in the future. What is certain is that prices of robots will have to drop significantly to become common household commodities. Koid robots are marketed in the US at prices ranging from US$8,900 to US$128,900. Beijing-based Unitree, a leader in Chinese robotics, opened its first offline store in Chinese mainland at the JD Mall in the capital this week. The shop will showcase flagship products such as the Go2 robot dog and the G1 robot.

New Year's Day Market Closures

Major Asian stock markets, with the exception of India, will be closed for the New Year holiday tomorrow. That includes China, Japan, Singapore and South Korea. Markets will also close in Australia, Europe, the US and Canada. Normal trading resumes in most markets on January 2. Many global markets this year touched record highs despite trade tensions, geopolitical conflicts, slowing economies and concerns about risks associated with massive corporate investments in artificial intelligence.

Corporate

Two Chinese Airlines Announce Airbus Orders

Juneyao Airlines and Spring Airlines, two regional Shanghai-based carriers, announced a combined order for 55 Airbus single-aisle aircraft valued at US$8.2 billion, according to catalogue prices. Juneyao said it will buy 25 A320 series aircraft, while Spring will purchase 30 A320neo aircraft. Final prices for the aircraft are yet to be negotiated. Airbus opened its first assembly line in China in 2008 and a second line in October.

Guangzhou Pharma Plans Big Investments as Growth Slows

Guangzhou Pharmaceutical Holdings, a maker of traditional Chinese medicine, said it plans to invest up to 15 billion yuan (US$2 billion) in research and development, and up to 30 billion in mergers and acquisitions in the next five years, Yicai reported, citing company Chairman Li Xiaojun. The state-owned medicine maker has been under pressure to become more innovative to address sluggish revenue growth and rising competition. The company's listed subsidiary Baiyunshan Pharmaceutical derives most of its sales from manufacture of Chinese and Western medicines, from food, beverage and health products and from wholesaling and exports.

Foreign Pharma Makers Reduce Obesity Drug Prices

Denmark's Novo Nordisk and US-based Eli Lilly are lowering prices for their top-selling obesity drugs in China, Yicai reported. List prices for the two highest doses of Novo Nordisk's Wegovy have been nearly halved, and Eli Lilly is reducing the cost of its Mounjaro therapy according to a Nanjing hospital online posting, though the amount of the reduction wasn't disclosed.

Tesla Sales Forecast to Drop

Tesla analysts are forecasting a 15 percent drop in the company's global electric vehicle sales for the fourth quarter, to 422,850 units, Bloomberg reported, citing a post on the company's website. The company is on course for its second consecutive decline in annual sales, amid the expiry of US tax credits on electric cars and rising global competition. Tesla has rolled out cheaper models this year to try to drive up sales. The company operates a mega-factory in Shanghai.

Geely Unit Receives Investment

Lotus Technology, the luxury electric-car unit of automaker Geely, said it received a US$23 million investment from Nasdaq-listed, global mobility technology supplier ECARX through a private placement of about 17 million of newly issued shares. The deal is expected to close within 30 days.