Daily Buzz: 29 October 2025

Japan, US Leaders Sign Rare Earth Pact

Japanese Prime Minister Sanae Takaichi and US President Donald Trump signed a framework agreement in Tokyo for securing supplies of rare earths key to industrial production of smartphones, electric cars, wind turbines, submarines and a host of other technologies. The agreement comes as both countries seek to reduce their reliance on China, which produces about 90 percent of the world's refined rare earth minerals. It calls for both countries to cooperate in the development of a more diversified market for the mined elements, with possible accumulations of complementary stockpiles.

'Skirmishes' Stoke Gaza Ceasefire Tensions

Israeli launched aerial strikes in Gaza on Tuesday after Israel accused Hamas of violating a ceasefire in the Palestinian territory, killing at least nine people and threatening the nearly three-week ceasefire brokered by US President Donald Trump. The assault came after Prime Minister Benjamin Netanyahu ordered immediate "powerful attacks," alleging Hamas had attacked Israel forces. US Vice President JD Vance, who visited Israel last week, said, "The ceasefire is holding. That doesn't mean that there aren't going to be little skirmishes here and there." Netanyahu earlier accused Hamas of returning the wrong remains in its release of the bodies of dead hostages.

HSBC Profit Falls on Madoff-Fraud Provision

UK-based HSBC, which began life in the mid-1800s as Hong Kong & Shanghai Bank, posted an 18.5 percent drop in third-quarter after-tax profit to US$5.5 billion from a year earlier. Net interest income rose 15 percent to US$8.8 billion, and net interest margin increased to 1.57 percent from 1.46 percent. Europe's largest lender set aside one-time provisions of US$1.1 billion related to potential payouts from an ongoing lawsuit related to the infamous Bernard Madoff fraud scandal of 2008, and an additional US$300 million for legal fees related to other historical trading activities. The bank reported total assets of US$3.2 billion. It raised its forecast for 2025 net-interest income to US$43 billion from US$42 billion, citing the outlook for interest rate policies in Hong Kong and the UK.

Top Business

Sany, 3 Other IPOs Enjoy Positive Trading Start

Shares in China's Sany Heavy Industry rose 2.8 percent from their offer price to close at HK$21.90 (US$2.80) on their trading debut in Hong Kong. The world's third-largest heavy equipment manufacturer raised HK$12.4 billion in the share sale, one of the city's largest IPOs this year. Sany, which makes excavators, cranes, road-building equipment and pile drivers, said it will use the proceeds for research and development, and digital upgrading. Shares in three smaller Chinese IPOs also posted gains on their first in trading day in Hong Kong. Deepexi Technology shares jumped 150 percent, data transmission device maker CIG rose 36 percent and Bama Tea was up 87 percent.

Hengrui Posts Profit Surge on New Drugs

Hengrui Pharmaceuticals, a major drug developer in China, said profit in the first nine months of the year surged 25 percent from a year earlier to 23.2 billion yuan (US$3.3 billion) on an increase in overseas licensing agreements. Operating revenue rose 15 percent to 23.2 billion yuan. Upfront payments from foreign pharma giants like UK-based Glaxo SmithKline for rights to its early-stage drug candidates exceeded US$800 million. Hengrui, based in Jiangsu Province, is at the forefront of China's emergence as a major global developer of new therapies. The company said it has established a large team to explore independent development of innovative drugs in overseas markets and is already advancing several international clinical trials for its products.

China Rich List Swells to Record

The latest China Rich List published by the Hurun Research Institute shows a record 1,434 individuals with net worth of 5 billion yuan (US$702 million) or more. Zhong Shanshan, who controls Nongfu Spring, China's largest bottled water producer, ranked top of the list, with wealth of 530 billion yuan. He overtook ByteDance owner Zhang Yiming, who is now ranked second with a fortune of 470 billion.

Economy & Markets

WeRide, Pony.ai Unveil HK Share Offers

Chinese autonomous driving and robotaxi company WeRide said it will seek to raise HK$3.1 billion (US$437 million) in an initial public offering in Hong Kong, with the issue of 88 million shares. Five percent of the shares are earmarked for individual investors, with the remainder for institutional placement. A year ago this month, WeRide became the world's first listed autonomous driving company when its shares debuted on the Nasdaq in New York, raising about US$458 million.

Pony.ai, another Chinese robotaxi company, said it plans to raise up to US$10 billion in an IPO in Hong Kong, with an offer of 42 million shares. The maximum offer price has been set at HK$180 a share. The company, already listed on the Nasdaq, is expected to begin trading in Hong Kong on November 6.

China Tightens IPO Rules to Protect Small Investors

China's securities regulator is tightening rules on initial public offerings to protect the interests of smaller investors and curb price manipulation. The China Securities Regulatory Commission on Monday issued new guidelines that tie institutional allocations of shares more closely to investor lock-up periods, rewarding those willing to hold shares longer with higher allotments of stock. The move reflects pilot reforms already implemented on the Shanghai STAR Market. The guidelines also call for stricter oversight of institutional bidding, targeting those who intentionally inflate or suppress prices, and require more transparent valuation reports from underwriters.

Tech Industry Jobs Disappearing. Is AI to Blame?

Amazon is preparing to cut 10 percent of its global staff, targeting 30,000 jobs, Reuters reported. Company Chief Executive Andy Jassy earlier this year said increased use of artificial intelligence would likely lead to job cuts. Separately, US online education company Chegg said it will lay off about 45 percent of its work force, citing the impact of AI-generated tools on its Internet searches. The layoffs.fyi website estimates that about 98,000 tech-related jobs have been lost this year, after 153,000 were eliminated last year. Intel has slashed 22,000 jobs this year, and Microsoft has laid off about 15,000. Meta recently cut about 600 jobs within its artificial intelligence unit, and Google axed 100 design-related jobs in its cloud computing unit and 4,000 support staff, citing AI adoption as the catalyst.

Corporate

Ping An Insurance Post Higher Profit

China's Ping An Insurance said profit in the first nine of the year rose 11.5 percent on investment returns from the nation's stock market rally and policy premiums. The Hong Kong-listed insurer said net income climbed to 132.9 billion yuan (US$18.7 billion), with revenue rising 4.6 percent from a year earlier to 901.7 billion yuan. Investment income was up 26 percent to 158 billion yuan, and insurance premium income totaled 127 billion yuan. The insurer said it has nearly 250 million customers.

Insta360 Camera Maker Post Profit Fall

Shanghai-listed Arashi Vision, the Chinese maker of Insta360 cameras, reported a 16 percent third-quarter drop in net profit to 272 million yuan (US$38 million) from a year earlier, despite a 93 percent increase in revenue to 2.9 billion yuan. The company attributed the profit decline to big investment in customized AI chips. For the first nine months of the year, revenue increased 67 percent to 6.6 billion yuan. Insta360's Antigravity drone brand recently released its initial product, which includes goggles giving users full 360-degree visibility.

Foxconn to Step Up Investment in AI

Taiwan-based Foxconn, the world's largest contract electronics maker, said it will spend NT$42 billion (US$1.3 billion) to procure equipment for an AI computing cluster and supercomputing center, Reuters reported. The company said it plans to expand its cloud computing service platform and accelerate the development of three smart platforms. The company, also known as Hon Hai Precision Industry, has been stepping up investment in AI and cloud technologies to expand beyond its traditional manufacture of smartphones and other consumer electronics.

Air China Cargo to Buy Airbus Jets

Air China Cargo said it plans to buy up to 10 of the new Airbus 350F freighters in a deal valued at about US$4.65 billion. The purchase will involve a six initial aircraft, with an option to buy four more. Each jetliner has a load capacity of 111 tons and a range of 8,700 kilometers.