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Makoto Kuroda of Goldman Sachs says Japanese banks are trading at levels where the risk of a U.S. recession is “already priced in”.
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Tag: Asia News
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Younger generations of Asians are spending big on art
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Younger, wealthy shoppers in Asia are splashing their cash on art, according to a longtime collector and senior auction house executive.
Nicolas Chow, Sotheby’s chairman for Asia, said more than 40% of its buyers of contemporary art are millennials (born between 1981 and 1996), while Gen X (1965 to 1980) are also likely to be big spenders, he said.
“The buyers are increasingly younger. What we’ve seen actually in 2023 … Gen X is the most important buy-base actually — over a million dollars, they dominate the market,” Chow told CNBC’s “Art of Appreciation.”
Gen Z — the youngest age group for buyers — is “coming in quite strongly,” he said, adding that he recently saw a 20-year-old buyer acquire a piece in Shanghai to celebrate his graduation.
Wealthy millennials in Asia spent a median of $59,785 on art and antiques during the first half of 2023, while for Gen Zers the figure was $56,000, according to the Art Basel & UBS Survey of Global Collecting 2023.
Buying at auction — instead of from a dealer, for example — is popular with millennials and Gen X collectors globally, according to the survey. The trend appears to be playing out in Asia. At Christie’s Hong Kong spring season auction, held between May 25 and June 1, around a quarter of buyers were new to the auction house, and 43% of those were millennials, according to an online release.
A visitor takes a selfie with work by Yoshitomo Nara during Sotheby’s Hong Kong spring sales on April 2, 2024.
Chen Yongnuo | China News Service | Getty Images
And, while the size of the global art market fell 4% last year to around $65 billion, according to the Art Basel & UBS Art Market Report 2024, sales in China rose by 9% in 2023, overtaking the U.K. as the world’s second-largest art market. “Activity surged as post-lockdown buyers snapped up backlogged auction inventories and as Hong Kong’s major fairs and exhibitions returned to full-scale programming,” wrote report author and founder of Arts Economics, Clare McAndrew.
For Sotheby’s, the rise in younger buyers is driven in part by an increase in online activity. “During the pandemic, we really sort of developed our digital abilities with live streaming … And this has really brought in art to the greater communities and allowed us to engage with our buyers across the world,” Chow said.
Younger collectors are keen on newer art forms, with Gen Z collectors having the highest average expenditure on digital art globally — as well as prints — of any generation, according to the Survey of Global Collecting 2023.
Young digital artists
For Angelle Siyang-Le, director of the Art Basel fair in Hong Kong, artists who work in digital media are becoming more prominent. “The definition of digital art nowadays has been expanded from simply photography to video art to NFTs to AI-generated art,” she told CNBC’s “Art of Appreciation.”
An NFT, or non-fungible token, is a unique digital asset stored on the blockchain. Sales of art-related NFTs were $1.2 billion in 2023, less than half the $2.9 billion peak in 2021 — though still significantly higher than 2020 sales, which were $20 million, according to the Art Market Report 2024.
“With the younger generations becoming more and more prominent in the market … digital artists … will be the group of artists getting more attention,” Siyang-Le added.
Hong Kong-based artist Mak2 uses a variety of mediums in her work, including Instagram videos. Her 2017 work, “You Better Watch Out,” an inflatable, transparent “snow globe,” featured floating QR codes that the audience could scan. CCTV cameras filmed people scanning the codes, which linked to a web page that showed the audience looking at the artwork.
“So you are watching yourself being watched,” Mak2 told CNBC’s Art of Appreciation. “You’re not just looking at your phone, you’re becom[ing] data circulat[ing] inside the app and being recorded and analyzed,” she added.
People view work at Art Basel Hong Kong, held in March 2024. An installation by artist Mak2, “Copy of Copy of Copy of Copy,” is just seen at the center.
China News Service | Li Zhihua | Getty Images
Mak2 exhibited at Art Basel Hong Kong in March, with an installation named “Copy of Copy of Copy of Copy,” based on video game The Sims and painted by artists she commissioned via an e-commerce site.
Over the past 10 years, Sotheby’s has “opened up” more to contemporary and modern art, Chow said. “Fifty years ago when we came to Asia … we brought Chinese art … And today, we sort of really opened the market to all sorts of new experiences and new material, from dinosaurs to cars to contemporary art, from all around the world. NFTs, sneakers, you name it,” he said.
Hong Kong’s Art Gallery Association recorded a 27% increase in member galleries between 2021 and 2023, while the Hong Kong Palace Museum opened in 2022, and the M+ last year — both contemporary museums that foster a “greater interest” in the art community in Asia, Chow said.
Sotheby’s has been holding auctions Asia since 1973 and will open a flagship “maison” in Hong Kong in July, which will sell pieces for immediate purchase as well as holding regular auctions. “At our our maison, we’ll be bringing material from across the spectrum of what Sotheby’s has to offer, from the remote prehistory all the way to the digital future,” Chow said.
— CNBC’s Quek Jie Ann contributed to this report.
Watch The Art of Appreciation on CNBC International
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This couple pays $2,236/month to live on a 65-ft houseboat in London—take a look inside
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As a dual citizen of the U.S. and the U.K., Maisy Dewey always dreamed of living in London.
Her mother is American and her father was born and raised in London. Dewey’s parents lived between London and the U.S. before eventually settling in New Jersey, where she grew up. She and her sisters would regularly fly to England’s capital during school breaks and summer vacation to visit their grandmother, who still lives there.
In 2022, the 25-year-old and her fiancé, Harrison Kent, had been living in Philadelphia for two years.
“We wanted to be a little closer to our families but I had always told him, ‘whenever you want to move to London, I’m down,’” the graphic designer tells CNBC Make It. “He had only been once before.”
Around the time of this conversation, Kent began researching schools to get his master’s in furniture design. In November 2022 he was accepted to his dream master’s program, the Kingston University Masters of Product & Furniture Design, in London, and the couple decided to cross the pond.
“It was one of those things that we knew if we don’t do it now we were never going to do it,” Dewey says. “It’s such a privilege to have multiple passports and I didn’t want my 20s to be over and never have actually lived in the U.K. full time.”
Dewey and Kent were living in Philadelphia with their dog, Kipper, when they decided they wanted to move to London.
Maisy Dewey
Preparations for their transatlantic move began soon after.
The two started having yard sales every weekend in the lead up to their August 2023 move and sold almost all of their belongings, bringing in an estimated $3,000 to help fund their move.
“It was nice that we knew so far in advance because we had a lot of time to do it right,” Dewey says.
But finding their perfect London home while still living in Philadelphia was harder than expected. They would send out inquiries before going to bed, and by the time they woke up had already been informed that the spots were taken.
Dewey admits that living on the houseboat has made her even more of a homebody now.
Maisy Dewey
With their move looming, Dewey and Kent decided to do a short-term rental and continue searching for a more permanent living arrangement from London.
After several months of looking, the couple thought they found their perfect home. But just before they went to tour it, the listing agent informed them it had been taken.
The agent then said he had another space by the water to show them. When they told him a waterfront property was likely out of their budget, he clarified that it was in the water, not on it. Soon, they were on their way to tour a moored houseboat.
Dewey and Kent were the first people to live on the boat after it had been renovated.
Maisy Dewey
Though they were skeptical about living on a boat, especially as the owners of a 2-year-old Dalmatian, Kipper, Dewey and Kent kept their minds open.
“Immediately we both realized that it was nicer than we expected. It has recently been redone, so we were going to be the first people to live in it,” Dewey says. “[It was] a total stroke of luck.”
The 65-ft long widebeam boat features a living room, two bedrooms, full bathroom and a kitchen.
The houseboat has two bedrooms, a kitchen, and living room area.
Maisy Dewey
The couple signed a two-year lease in November 2023 at a rate of roughly $2,200 per month. Their upfront costs included a security deposit just over $2,500, according to documents reviewed by CNBC Make It.
“We feel like we’re living in a children’s picture book,” Dewey says. “It adds such a fun element to life. I’m already such a huge homebody and I feel like living on the boat has really done me in.”
Living on a boat comes with some unique responsibilities as well, including needing to refill its water tank every few days with tap water supplied by the dock. It’s a trade-off they’re happy to accept in exchange for living somewhere with as much outdoor space as indoor space.
“After work, I’ll bring a little beach chair out on top of the boat and just sit on top of the boat and read,” she says. “Sometimes we’ll have dinner up there.”
Dewey uses the second bedroom as an at-home office.
Maisy Dewey
Another perk of living in the houseboat is the sense of community and camaraderie amongst residents of the other boats in the area.
“I think the most friendly people in all of London live right on our dock,” she says. “We’re always chatting with our neighbors and everybody is always looking out for each other.”
Although the couple lived in a house in Philadelphia before they moved to London, Dewey says the houseboat feels more spacious and safer than any other place she’s lived in before.
“I have definitely had my share of apartments that I’ve rented where it just wasn’t quite right,” she says. “Here, it feels like home for me, Harry and Kipper.”
The houseboat also has a full bathroom.
Maisy Dewey
The couple has been living aboard their houseboat for over six months. They don’t see themselves leaving anytime soon.
“I think we’re definitely going to try and stay here as long as we can,” she says. “We would leave the boat kicking and screaming if we had to!”
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Asia’s top 4 up-and-coming rental markets that may be challenging traditional property hubs
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Bangkok, Thailand has seen an 18.1% growth in residential rental prices on a year-on-year basis, according to JLL.
Alexander Spatari | Moment | Getty Images
Singapore and Hong Kong are generally considered Asia’s more vibrant real estate markets. But some up-and-coming cities are giving these traditional hubs a run for their money, with some even beating them on rental yields.
Among the known, established property markets, Hong Kong was the only one to make it to the top five in a list dominated by lesser-known cities, according to a recent report by realty services firm JLL.
“We remain bullish longer-term on more established markets like Hong Kong, but primarily we see more conspicuous rental growth in some of the region’s more developing markets including Ho Chi Minh City, Jakarta, Bangkok and Manila,” JLL Asia-Pacific Chief Research Officer Roddy Allan told CNBC Make It.
While rents in Asia-Pacific were largely stable in the first quarter of 2024, “supported by resilient leasing demand for high-quality properties and as return-to office rates and expatriate arrivals improved,” certain cities saw sharp growth, according to the JLL report.
The following four cities have led the recovery in rental growth in Asia so far this year:
Bangkok, Thailand
Residential rental growth in Q1 2024 (y/y): +18.1%
Average price to rent: THB 8,292 (about $226) per square meter annually
“Rental demand has been surging in Bangkok,” Allan said. “Much of the rental gains have been led by the luxury condo sector, but more broadly, rental demand for apartments has skyrocketed due to the prevailing rates environment and the return of tourism and expats to Bangkok,” he told CNBC.
“Inflated” selling prices, household debts and strong interest rates, have stoked the demand for rentals, according to the report.
By the end of 2024, a total of 2,800 units from 12 projects are set to be added to Bangkok’s market, which is expected to fuel rent growth even further, the report said.
Ho Chi Minh City, Vietnam
Residential rental growth in Q1 2024 (y/y): +5.9%
Average price to rent: $120 psm annually
“Vietnam’s largest city, Ho Chi Minh City, was also one of the region’s [best] performing markets from a residential perspective,” according to Allan. Rents in the city grew 5.9% on a year-on-year basis in the first quarter of 2024.
This rental growth has been influenced by the stronger rent prices recorded in new high-quality offerings in the city, according to the report.
“We also see new supply coming online in the lower-price segment and ongoing rates pressures will help demand,” said Allan.
Jakarta, Indonesia
Residential rental growth in Q1 2024 (y/y): +4.8%
Average price to rent: IDR 3,214,555 (about $200) psm annually
In Jakarta, sales of condominiums have been quite slow for the past three years and, in 2024, the presidential election has been a contributing factor to the limited sales, according to the report.
Despite the sales slowdown, demand for renting “remains robust” in the city, particularly at the upper end of the market, Allan told CNBC Make It.
“We expect new launches to remain muted in Jakarta throughout 2024 which will drive demand for high quality spaces across the city,” he said.
Manila, Philippines
Residential rental growth in Q1 2024 (y/y): +0.8%
Average price to rent: PHP 9,984 (about $172) psm annually
Manila’s residential rental market grew in Q1, as demand from executives and foreigners kept its steady rise amid a recovery in return-to-office rates, according to the report.
Leasing demand is expected to remain stable as return-to-office policies improve further into 2024, the report said.
While these lesser know markets have been on an upswing in terms of rentals, Asia’s more mature markets have declined. Singapore’s residential rental market has dropped sharply, down 15.7% on a year-on-year basis. Shanghai has fallen 3% from the previous year.
“Rents in Mainland China remain a little subdued due to the number of high-end apartments available for lease,” Allan told CNBC Make It. “Singapore has a similar situation of ample new stock,” he said.
“Over the longer term, we expect to see rents recover in Mainland China and Singapore due to more muted supply and a recovery in expatriate and wider demand for leasing of luxury residential.”
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Here’s how much it costs to rent a 1-bedroom apartment across 10 major cities in Asia
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Here’s the median price to rent a 1-bedroom across 10 cities in Asia.
Fraser Hall | The Image Bank | Getty Images
Renting a place is a big financial decision, especially when choosing to live in a major city where price tags are particularly hefty.
The general rule of thumb is to spend no more than approximately 30% of your pre-tax income on rent, according to financial experts.
Based on data gathered in April from various government websites and large real estate marketplaces in each country, researchers at the Global Property Guide compiled a list of median rental prices across several major cities in Asia.
The numbers listed below are based on the median buying price per square meter and the median monthly rental price for a 1-bedroom apartment in the most expensive region within each respective city:
Mumbai, India
Median rent for a 1-bedroom: $481
Buying price per square meter: $3,882
Hanoi, Vietnam
Median rent for a 1-bedroom: $688
Buying price per square meter: $2,280
Jakarta, Indonesia
Median rent for a 1-bedroom: $698
Buying price per square meter: $1,726
Kuala Lumpur, Malaysia
Median rent for a 1-bedroom: $735
Buying price per square meter: $3,903
Manila, Philippines
Median rent for a 1-bedroom: $805
Buying price per square meter: $3,813
Taipei, Taiwan
Median rent for a 1-bedroom: $816
Buying price per square meter: $17,551
Bangkok, Thailand
Median rent for a 1-bedroom: $1,080
Buying price per square meter: $6,485
Tokyo, Japan
Median rent for a 1-bedroom: $1,216
Buying price per square meter: $8,837
Hong Kong
Median rent for a 1-bedroom: $2,173
Buying price per square meter: $25,802
Singapore
Median rent for a 1-bedroom: $4,590
Buying price per square meter: $16,619
In 2023, Asia’s housing market faced a downturn amid weakening economic growth and the inflationary environment, according to a report by Global Property Guide.
“Hong Kong’s housing market woes continue, amidst [a] struggling economy,” as residential construction activity in the region fell by more than 34% year-over-year and inflation-adjusted residential property prices plunged by more than 9% in 2023, according to the report.
Prices for housing in regions of Southeast Asia such as Ho Chi Minh City, Vietnam (-1.18%) and Malaysia (-1.06%) have also fallen.
On the other hand, cities like Taipei and Singapore remain resilient despite the overall market environment — with housing prices up 5.17% and 2.74% in 2023, respectively.
Overall, the global housing market seems to be stabilizing as inflationary pressures ease in many countries and central banks pause their rate hikes, according to the report.
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This 31-year-old spent $20,000 to travel after he was laid off
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Peter Lancaster in Argentina.
Courtesy of Peter Lancaster
Forget the “quarter-life crisis.” These days, millennials are turning to the “quarter-life sabbatical.”
Amid the waves of mass layoffs, people are choosing to repurpose their unemployment into soul-searching, and many are extending their time away from the cubicle to travel the world.
Peter Lancaster, 31, was laid off from his technology job in California in May last year. Although he was sad to leave a job he loved, it was finally an opportunity for him to take a real break and enjoy life a little.
By the end of June, he sold most of his belongings, put the rest in storage, handed his cat to a friend and left for his first destination — Mexico City.
For the next eight months, Peter traveled to eight different countries: Mexico, Colombia, Peru, Argentina, Guatemala, Japan, Ecuador and Brazil. He said he spent about $20,000 during that time.
His plane tickets and transportation ended up being his highest expenses.
While Colombia and Guatemala were the most affordable destinations, Argentina and the Galapagos Islands were the most expensive, he added.
Here are six things he learned during his adventure abroad.
Be flexible
The biggest principle Peter stuck to while traveling overseas was staying flexible and knowing that plans can change along the way.
About six months into his travels, Peter met and fell in love with his girlfriend Alejandra, or as he likes to call, his “pp” (short for “Peruvian Princess”).
His initial plan was to stay in Peru for four days, but after meeting Alejandra, he extended it to six weeks.
“I met her in Peru — in Cusco. I was doing laundry and she saw that I was struggling, so she helped me out and then we decided to get drinks,” he told CNBC Make It.
Peter and Alejandra taking a stroll in Argentina.
Courtesy of Peter Lancaster
“You think you would want to make an itinerary, but truthfully, your plan changes so much with who you meet,” he said. “Be open minded to change your motive from seeing as much as possible to maybe just spending time with somebody for a bit.”
“It’s a lot easier to be flexible when you have a ‘to be determined’ timeline,” he added.
Pack lightly
“I never had more than a week’s worth of clothes,” he said. “Downside is that I had to find a laundry place, but upside is that you can move around so easily.”
For the first three weeks, he only traveled with a small backpack. Along the way, he was able to purchase items he needed.
Carrying less allowed him to be more agile when plans inevitably changed.
Be friendly
After first landing in Mexico City, Peter began to be homesick. “I wanted to go home because I was like: ‘oh, it’s going to be a long journey,’” he said. “But then then I started making friends and got comfortable real quick.”
Peter Lancaster with his tour group in Guatemala.
Courtesy of Peter Lancaster
For most of the trip, he chose to stay in hostels as a way to save money, as well as to meet fellow travelers.
“Just start talking to people,” he said. “Everyone’s really approachable and thinking the same thing.”
Travel smart
When traveling around foreign countries, it is important to maintain a level of caution.
“I think it’s always good to just have a mentality that a lot of people might be trying to rip you off,” Peter said. When making purchases or decisions, he suggests: “Take your time.”
If something is too good to be true, it probably is too good to be true.
“Especially in a foreign country, use the buddy system,” he said.
Locals can usually tell if you are a foreigner, which can put you in a compromised position. So it’s important to be always aware of your surroundings and the situation.
Enjoy local cuisine
“I don’t understand people that like go travel and eat burgers and pizza,” he said. “Going to McDonald’s is more expensive than some of these local places.”
During his time abroad, Peter made it a point to enjoy the local cuisine, which added to his travel experience.
More to life than work
On Feb. 29, Peter returned to the United States feeling happy with everything he had experienced.
“If I had an unlimited budget, I’d probably keep going, but I felt like I just I saw everything and I was ready to work,” he said.
“I feel content… it’s just nice to have time off and have like a different routine than going to work,” he said.
Peter Lancaster at the
Courtesy of Peter Lancaster
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India set to be world’s third largest economy by 2027, finance ministry says
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A pedestrian speaks on a mobile phone as he watches a digital screen relaying the budget speech by Indian Finance Minister Nirmala Sitharaman on the facade of the Bombay Stock Exchange (BSE) in Mumbai on February 1, 2021.
PUNIT PARANJPE | AFP via Getty Images
India could become the world’s third-largest economy by 2027 with a gross domestic product of $5 trillion, the finance ministry has said.
The projections come ahead of an interim budget due to be released later this week.
In a report released Monday, the finance ministry said the economy is poised to grow at or above 7% in the fiscal year 2024. India’s fiscal year starts on April 1 and ends on March 31.
If it meets this year’s target, it will be the third straight year of 7% GDP growth for India.
The country’s GDP currently stands at $3.7 trillion.
India’s chief economic advisor, V Anantha Nageswaran, said the government’s goal is to become a developed country by 2047.
“The robustness seen in domestic demand, namely, private consumption and investment, traces its origin to the reforms and measures implemented by the government over the last ten years,” Nageswaran said in the report, explaining the key drivers of India’s growth.
He said investment in both physical and digital infrastructure helped boost the supply side and manufacturing. As a result, “real GDP growth will likely be closer to 7 per cent” in fiscal year 2025, he added.
The document released Monday was not the Economic Survey of India, which is prepared by the Department of Economic Affairs ahead of the Union Budget.
The Union Budget will only be released after the general election between April and May this year — the interim budget will be presented by Finance Minister Nirmala Sitharaman on Thursday, and is not likely to include any major changes to spending or tax policies.
According to Goldman Sachs, India is poised to become the world’s second-largest economy by 2075, leapfrogging not just Japan and Germany, but the U.S. too.
Currently, India is the world’s fifth-largest economy, behind U.S., China, Japan and Germany.
Stock market optimism
India stocks are off to a positive start this year.
The Nifty 50 index rose more than 20% in 2023 after staging record-breaking rallies last year. This month, the index breached 22,000 for the first time.
Growing optimism around the world’s most populous country’s growth prospects as well as higher liquidity and more domestic participation have been key factors in boosting the rally.
Hopes of further policy continuity have also been a driver in the rally, as India gears up for its general election between April and May.
Investors are betting that the Reserve Bank of India will cut interest rates this year, most likely in the second half — which will likely lift stock markets as well as spur higher spending in the economy.
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China is weighing measures to prop up its stock markets, could reportedly mobilize $278 billion
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A securities business hall in Fuyang, China, in December 2023.
Costfoto | Nurphoto | Getty Images
China is considering a rescue package backed by offshore money to stave off a slump in its struggling stock markets, according to Bloomberg News.
The report, citing people familiar with the matter, said Chinese authorities are aiming to get about 2 trillion yuan ($278 billion), primarily through offshore accounts of Chinese state-owned companies to help stabilize the market by purchasing stocks onshore through Hong Kong markets.
According to Bloomberg, Chinese policymakers have also put aside 300 billion yuan of local funds that would be used to invest into onshore shares through state-owned financial firms China Securities Finance Corp. or Central Huijin Investment Ltd.
Mainland China’s CSI 300 index slid 11.4% last year, clocking its third straight year of falls. Hong Kong’s Hang Seng index fell nearly 14% in 2023, making it the worst performing major Asian stock market.
The Bloomberg report comes a day after Chinese Premier Li Qiang said during a state council meeting the country will be rolling out measures to stabilize its stock markets.
“We must take more powerful and effective measures to stabilize the market and confidence,” Li said, according to state media.
“It is necessary to enhance the consistency of macro policy orientations, strengthen innovation and coordination of policy tools, consolidate and enhance the positive economic recovery, and promote the stable and healthy development of the capital market.”
No further details were released at the Monday meeting, and there was no indication about how much money will be mobilized or when the measures will kick in.
China previously pointed that it has not relied on to stimulus so far.
“In promoting economic development, we did not resort to massive stimulus. We did not seek short-term growth while accumulating long-term risks,” Li said in a speech last week at the World Economic Forum in Davos, Switzerland. “Rather, we focused on strengthening the internal drivers.”
Li referenced this while noting that China’s economy grew by around 5.2% in 2023. Official figures also showed 5.2% GDP growth in China last year.
Read more on Bloomberg’s report that China is considering a rescue package for its stock markets.
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SEC's account compromise was 'not due to any breach of X's systems,' company says
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INDIA – 2021/10/16: In this Photo illustration a Bitcoin logo seen displayed on a smartphone with an ETF(exchange traded fund) logo in the background. (Photo Illustration by Avishek Das/SOPA Images/LightRocket via Getty Images)
Sopa Images | Lightrocket | Getty Images
Social media company X said late Tuesday it has completed a preliminary probe into the compromised account of the U.S. Securities and Exchange Commission that displayed a false post claiming the SEC had approved bitcoin ETFs for trading.
“Based on our investigation, the compromise was not due to any breach of X’s systems, but rather due to an unidentified individual obtaining control over a phone number associated with the @SECGov account through a third party,” said X, formerly Twitter, in the post, confirming that the SEC’s account was compromised.
“We can also confirm that the account did not have two-factor authentication enabled at the time the account was compromised,” said X in the post.
Bitcoin prices shot up following the unauthorized post, but soon fell below $46,000 after the SEC clarified that it had not yet approved the bitcoin ETF. It was trading at nearly $45,958 at about 12:20 a.m. ET.
“The SEC’s @SECGov X/Twitter account has been compromised. The unauthorized tweet regarding bitcoin ETFs was not made by the SEC or its staff,” an SEC spokesperson told CNBC on Tuesday afternoon.
The false social media post said the regulator had approved bitcoin ETFs for trading, which was denied by SEC Chair Gary Gensler.
The market anticipates the regulator to greenlight the bitcoin ETF. The SEC is expected to make a decision on it this week after opposing the idea for years.
Gensler has gone after crypto during his tenure, with the SEC taking legal action against exchanges such as Coinbase, Binance and Kraken, as well as blockchain-based payments firm Ripple, accusing each of selling unregistered securities.
– CNBC’s Jesse Pound contributed to this report.
Correction: This article has been updated to accurately characterize Ripple as a blockchain-based payments firm. An earlier version of the story mischaracterized it.
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2024 is the ‘year of globetrotting,’ travel expert says. Here are some of the hot spots
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Tokyo, Japan.
Matteo Colombo | DigitalVision | Getty Images
When it comes to travel abroad, popular destinations like London, Paris and Rome always seem to top the wish list for Americans.
But many travelers are looking beyond those mainstay cities for trips in 2024. Interest in major Asian hubs, off-the-beaten-path locales in Europe and other areas has surged, experts said.
“It’s clear that 2024 is shaping up to be the year of globetrotting,” Airbnb wrote last month.
More from Personal Finance:
U.S. passport delays have eased — but aren’t yet back to normal
New Europe travel requirement delayed again, to 2025
A controversial hack to save on plane tickets carries a ‘super big risk’Broadly, overseas travel is hot: Searches for international flights are up 13% year-over-year, even though prices are about 10% higher, according to Steve Hafner, CEO of Kayak, a travel website.
“Americans are looking to go abroad,” Hafner said. “They’ve done the domestic stuff the last couple years.”
Here are the trending destinations for Americans in 2024.
1. Asia takes the crown again
Hong Kong
Kanchisa Thitisukthanapong | Moment | Getty Images
Americans flocked to the Asia-Pacific region in 2023 — and that love affair is poised to continue in the new year.
Tokyo and Seoul, South Korea, respectively rank as the No. 1 and 2 trending international hot spots next year among U.S.-based travelers, according to travel app Hopper.
Kayak data shows a similar trend. Its top five hot spots are in Asia: Hong Kong; Shanghai; Taipei City, the capital of Taiwan; Tokyo; and Osaka, Japan, respectively.
For example, searches for Hong Kong and Shanghai are up 355% and 216%, respectively, year-over-year, according to Kayak. (The travel site analyzed search traffic among Americans from March 16 to Sept. 15 this year, for travel planned in 2024, and compared it to the same period last year.)
Kyoto, Japan
Sw Photography | Stone | Getty Images
Japan also ranks highly among non-U.S. travelers: Osaka, Kyoto and Tokyo are among the top 24 worldwide destinations next year, according to Airbnb data.
Asian nations were among the slowest to ease border closures related to the Covid-19 pandemic. Now that they’re open again, tourists are unleashing a pent-up wanderlust, experts said.
“People couldn’t travel there, and now they are making it up,” said Sofia Markovich, a travel advisor and founder of Sofia’s Travel.
China reopened its borders in January 2023, “one of the last places” to do so, Hafner said.
Japan reopened to tourists starting in June 2022. There are other factors driving increased interest to that nation, like a historically strong U.S. dollar relative to the Japanese yen (and other currencies), which gives Americans additional buying power, and more flights from budget airlines, Hafner said.
Search traffic for Japan has more than tripled for trips during the first nine months of 2024 relative to the same period in 2023 — a larger increase than any other nation, Airbnb said.
Americans are looking to go abroad. They’ve done the domestic stuff the last couple years.
Historically, Tokyo has “hands down” been the most popular city for Americans to visit in Asia, said Hayley Berg, lead economist at Hopper. Now, demand is “even greater” than usual, she said.
Tourists may also pay a hefty premium to fly to Asia next year: “Good deal” prices for airfare to the continent is $1,204 for 2024, on average — 45% more than 2019, a much larger increase relative to other continents, according to Hopper.
2. Going off the beaten path in Europe
Stockholm, Sweden.
Leonardo Patrizi | E+ | Getty Images
Overcrowding in the traditional European hubs is driving an influx of tourists to generally less-frequented areas, experts said.
For example, Stockholm, Sweden; Budapest, Hungary; Helsinki, Finland; and Prague, Czech Republic, respectively rank seventh to 10th on Kayak’s list of trending destinations abroad.
Copenhagen, Denmark, is No. 4 on Hopper’s 2024 hot spot ranking. Prague and Edinburgh, Scotland, are No. 7 and No. 8, respectively.
“People are really discovering the off-the-beaten path places,” Markovich said. “Because your Paris and your Rome and London and Barcelona are just too crowded. And experienced travelers want to get away from that.”
She recommends “a lot” of Scandinavian travel since it’s “so unspoiled by overtourism.”
The Salisbury Crags in Holyrood Park, Edinburgh, Scotland.
Andrew Merry | Moment | Getty Images
Additionally, Finland became a member of the NATO military alliance in 2023, driving more awareness of the nation among Americans, Kayak’s Hafner said.
Cities like Budapest and Prague have always been popular but not to the extent of some European tourist magnets, Markovich said.
One of those typical magnets — Paris — is poised for an additional burst this year: The City of Light is hosting the 2024 Summer Olympics.
Demand for flights to Paris — and for nearby cities — during the Olympics has more than doubled versus this time last year, according to Hopper data.
Lower relative prices for some lesser-known spots in Europe are also likely attracting people, Berg said, especially since average flights to Europe overall are 5% more expensive in 2024 versus 2023, at $717, Hopper data shows.
3. The Atlantic tropics over the Caribbean
Tenerife, the largest of Spain’s Canary Islands.
Faba-photograhpy | Moment | Getty Images
Although places like Cancun, Mexico, remain popular as warm-weather beach destinations, Americans are increasingly turning to Atlantic tropical vacations over the Caribbean, said Hopper’s Berg.
“This is something new this year that we started seeing emerge” and the trend “will definitely continue” in 2024, she said.
For example, Tenerife, the largest of Spain’s Canary Islands, and Funchal, the capital of Portugal’s Madeira archipelago, ranked No. 9 and 10, respectively, on Hopper’s international trend list. Both are located off the West African coast.
People are really discovering the off-the-beaten path places.
Sofia Markovich
travel advisor
Though not on the Atlantic, Málaga, a Mediterranean port city on the Costa del Sol in southern Spain, ranked sixth on Kayak’s list. The Andalusian city gets about 300 days of sunshine a year, on average, and, according to one recent report, is the No. 1 city in the world for expats.
Search interest there is up 60% year-over-year, Kayak data shows. And that’s following a year in which Málaga was already “overrun,” Hafner said.
“I think that word has gotten out,” he said.
4. Canada’s ski mountains are having a ‘renaissance’
A ski slope at Grouse Mountain in Vancouver, Canada.
Daisuke Kishi | Moment Open | Getty Images
Vancouver, Calgary and Montreal in Canada ranked third, fifth and sixth, respectively, on Hopper’s international trend list for 2024.
Winter tourism likely plays a big role, Berg said.
“We’ve seen a real renaissance of Canadian ski destinations,” she said. “They’re rivaling a lot of European ski destinations.”
Plus, air travel to Canada is generally about a third of the price of a trip to Europe, Berg added.
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Generative AI will have four major effects on banks, McKinsey & Company says
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Violet Chung of McKinsey & Company discusses how prepared Asian banks are to adopt generative artificial intelligence.
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Five reasons why India stocks are rallying and could keep going
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Beautiful and colorful aerial view of Mumbai skyline during twilight seen from Currey Road, on February 16, 2022 in Mumbai, India.
Pratik Chorge | Hindustan Times | Getty Images
India’s stock markets have staged record-breaking rallies this year, making the country a favorite among its Asia-Pacific counterparts.
The Nifty 50 index has repeatedly notched fresh all-time highs, reaching yet another peak on Tuesday. The index is set for an eighth year of gains, up more than 15% year-to-date.
Optimism about India’s growth prospects, increased liquidity and greater domestic participation have all contributed to the surge in stock markets. In fact, India’s stock market value has overtaken Hong Kong’s to become the seventh largest in the world.
As of the end of November, the total market capitalization of the National Stock Exchange of India was $3.989 trillion versus Hong Kong’s $3.984 trillion, according to data from the World Federation of Exchanges.
Numbers from the WFE also showed that India’s NSE saw more new stock listings than the HKEX. India’s stock market had 22 new listings vs. Hong Kong’s seven, as of November.
Here are the five reasons why India’s stock markets have reached new highs this year;
Growth prospects
India has been one of South Asia’s fastest growing economies, with expectations only building up for next year.
The world’s most populous country has grown at a consistently strong pace this year, with the most recent reading on third-quarter GDP showing a much higher-than-expected growth rate of 7.6%.
Bets on India driving growth in Asia have also been rising. S&P Global predicted India’s GDP for the fiscal year ending March 2024 hit 6.4%, more than its earlier forecast of 6%.
Strong earnings
The Indian stock market has also shown sound fundamentals and robust earnings, which are expected to grow through 2024.
HSBC forecasts earnings growth of 17.8% for India in 2024 — among the fastest rates in Asia. Sectors such as banks, health care and energy, which have already done well this year are best positioned for 2024, according to HSBC.
Sectors such as autos, retailers, real estate and telecoms were also relatively well positioned for 2024, while fast-moving consumer goods, utilities and chemicals are among those HSBC said were unfavorable.
Domestic participation
There has also been an uptick in domestic participation in Indian stock markets this year, especially in high-growth areas, according to research by HSBC.
“While foreign investors tend to be active in large caps, it is local investors that dominate the small and mid-cap space, which partly explains the outperformance – fund flows into midcap-small schemes of domestic MFs (i.e. mutual funds with a mandate to invest in small/midcaps) have been disproportionately high,” HSBC noted.
It also expects this trend to continue into the next year.
Rate cuts are coming
The Reserve Bank of India held its main lending rate steady at 6.5% last Friday and said its expects the country to grow at a pace of 7% this year. The central bank did warn that inflation, even as it continues to cool, still remains above its target as underlying price pressures were stubborn.
That, however, does not mean market players aren’t expecting rate cuts next year.
“We expect the policy pause to be extended for now and expect 100bp (basis points) of cumulative rate cuts starting from August 2024,” analysts at Nomura wrote in a client note.
Lower lending rates often boost liquidity and boost more risk-taking sentiment in stock markets.
Policy continuity
As India gears up for a big election year in 2024, markets remain optimistic on further policy continuity.
Analysts predict it could be another victory for the ruling nationalist Bharatiya Janata Party, with recent polls and recent state elections showing the right-wing BJP could retain power.
“The ruling Bharatiya Janata Party (BJP) outdid its national and regional rivals at the recently held state elections. This strong run fed expectations of political stability at the upcoming general elections in April/May24, addressing earlier concerns that a weak showing at the state polls might have stoked a fiscally populist agenda in the coming months,” DBS senior economist Radhika Rao said in a client note.
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India overtakes Hong Kong to become the world's seventh largest stock market
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Pedestrians walk towards the Chhatrapati Shivaji Terminus train station at dusk in Mumbai, India, on Wednesday, Oct. 4, 2023.
Bloomberg | Bloomberg | Getty Images
India’s stock market value has overtaken Hong Kong’s to become the seventh largest in the world as optimism about the country’s economic prospects grow.
As of the end of November, the total market capitalization of the National Stock Exchange of India was $3.989 trillion versus Hong Kong’s $3.984 trillion, according to data from the World Federation of Exchanges.
India’s Nifty 50 index reached another record high on Monday. It has jumped nearly 16% so far this year and is headed for its eighth straight year of gains. In contrast, Hong Kong’s benchmark Hang Seng index has plunged 18% year to date.
India has been a standout market this year in the Asia-Pacific region. Increased liquidity, more domestic participation and improving dynamics in the global macro environment in the form of falling U.S. Treasury yields have all boosted the country’s stock markets.
The world’s most populous country also heads into general elections next year, which analysts predict could be another victory for the ruling nationalist Bharatiya Janata Party.
“For the general election, opinion polls and recent state elections indicate that the incumbent BJP-led government may secure a decisive win, which could trigger a bull run in the first three to four months of the year on expectations of policy continuity,” HSBC strategists said in a client note.
HSBC said banks, health care and energy are the best positioned sectors for next year.
Sectors such as autos, retailers, real estate and telecoms are also relatively well positioned for 2024, while fast-moving consumer goods, utilities and chemicals are among those HSBC categorized as unfavorable.
Hong Kong lags
In early November, the Hong Kong government said it expects the economy to grow 3.2% in 2023, trimming its GDP growth outlook from the 4% to 5% forecast in August.
The city’s government has warned that increasing geopolitical tensions and tight financial conditions continue to weigh on investments, exports of goods and consumption sentiment. Consumer confidence has also suffered in Hong Kong.
“Hong Kong’s economy is poised for a soft landing in 2024 as annual real GDP growth moderates to around 2% from 2023’s 3.5%,” said economists at DBS.
“Central to this recovery is mainland tourism revival, fortifying retail and catering sectors.”
China has set a growth target of 5% for 2023. Its third quarter-GDP came in at 4.9%, lifting hopes that the world’s second-largest economy will meet or even exceed expectations.
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Hong Kong's soccer fans will get to see Lionel Messi in action in February
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Lionel Messi of Inter Miami CF celebrates after scoring a goal in the first half during the Leagues Cup 2023 semifinals match between Inter Miami CF and Philadelphia Union at Subaru Park on Aug. 15, 2023 in Chester, Pennsylvania.
Tim Nwachukwu | Getty Images Sport | Getty Images
HONG KONG — Soccer fans in Hong Kong will be able to see the world’s best player Lionel Messi in action next year when David Beckham’s Inter Miami play the Hong Kong team in February.
The highly anticipated match has been scheduled for Feb. 4 at the Hong Kong Stadium.
During their visit, the team will have an open training session — and half of those tickets will be reserved for community outreach. This is the team’s first international tour.
Beckham, the American club’s co-owner and president, sealed the deal to bring the team to Hong Kong when he visited the city last week.
Messi, widely regarded as one of the greatest soccer players of all time, was last in Hong Kong in 2014 when Argentina played against the city’s national team.
The Argentina captain completed the set of major soccer honors after leading his country to clinch the World Cup title last year, which was promptly followed by his U.S. club winning the Leagues Cup in August.
Luxury and lifestyle media company Tatler Asia will host Inter Miami in Hong Kong, after having secured a 3-year contract with the team. There are plans to hold a sporting and lifestyle event that rivals the Formula One Singapore Grand Prix.
Tickets for the friendly match will go on sale from Dec. 15, priced between $880 Hong Kong dollars to HK$4,880 (about $112 to $624). They will be sold exclusively through Hong Kong based e-commerce travel app Klook.
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Moody's downgrading of Hong Kong's credit outlook may be a 'temporary crisis': FII Institute
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Richard Attias, CEO of FII Institute, says the city's "fundamentals are good."
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Ahead of Indonesia’s elections, critics slam Jokowi for nepotism and ‘dynastic politics’
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Indonesian President Joko Widodo waving to the crowd while on his journey to Presidential Palace by carriage during the ceremonial parade on October 20, 2014 in Jakarta, Indonesia when he was sworn in.
Ulet Ifansasti | Getty Images News | Getty Images
A year before stepping down as Indonesia’s president, Joko Widodo is facing serious allegations of establishing a political dynasty through nepotism.
The 61-year-old, known at home as Jokowi, is due to leave office in October 2024 after completing the maximum two terms as president.
But critics and analysts say the leader, who has enjoyed consistently high approval ratings throughout his near decade-long tenure, is attempting to retain power through members of his close family.
1. Eldest son, Gibran Rakabuming Raka
Last month, his eldest son, Gibran Rakabuming Raka, 36, was officially named the vice presidential running mate of Defence Minister Prabowo Subianto for the Feb. 14 general election race under the right-wing Gerindra Party.
That came just days before the country changed the eligibility criteria for presidential or vice-presidential candidates, allowing individuals under the age of 40 to register for either role if they previously held regional posts. Gibran is the mayor of Solo.
The constitutional court, which was helmed by the president’s brother-in-law Anwar Usman at that time, was widely criticized for changing the law, which enabled Jokowi’s son to contest the election. The court’s ethics council has since ordered Anwar to be removed from his post as chief justice after finding him guilty of ethics violations.
Most respondents see this kind of politics as tending to prioritize family interests over the interests of society.
Kompas Research and Development
According to a poll in mid-October by Kompas Research and Development, 60.7% of respondents consider the participation of Jokowi’s eldest son Gibran in the election as a form of dynastic politics.
“Most respondents see this kind of politics as tending to prioritize family interests over the interests of society,” Kompas said in a report. “It is no wonder then that more than half of respondents in this poll stated their disagreement with the practice of dynastic politics.”
2. Youngest son, Kaesang Pangarep
Separately, Jokowi’s youngest son, Kaesang Pangarep, was appointed chairman of the Indonesia Solidarity Party (PSI) in September, a few days after he officially became a party member.
PSI, which launched in 2018, focuses on young voters through issues like women’s rights, pluralism and corruption. It hopes to secure seats in the House of Representatives for the first time in the upcoming election.
3. Son-in-law, Bobby Nasution
Adding to Jokowi’s political chessboard is also his son-in-law Bobby Nasution, the current mayor of Medan.
Jokowi is “trying to retain political influence through his sons and son-in-law, Medan mayor Bobby Nasution,” said Julia Lau, senior fellow and co-coordinator of the Indonesia Studies Programme at Singapore’s ISEAS–Yusof Ishak Institute.
Back home, Jokowi’s loyalists are reportedly outraged, Reuters reported, saying that cabinet ministers within his inner circle have accused him of seeking to hang on to power through judicial interference and nepotism.
According to Reuters, Andi Widjajanto, once Jokowi’s right-hand man, resigned from his post as governor of the National Resilience Agency after the constitutional court ruling. Andi, who called the timing of his resignation deliberate, said: “As someone that worked with Jokowi for a long time I am very, very disappointed in him.”
A political dynasty?
These are “nepotistic strategies,” said Vedi Hadiz, director and professor at the Asia Institute at the University of Melbourne.
Jokowi’s sons are “part of the broader plan” to form a political dynasty before he leaves office, he continued.
“Kaesang Pangarep’s ascent into the leadership of the PSI is geared to help achieve the aim of gaining victory for the Prabowo-Gibran pairing, as the PSI has moved, also controversially, into the Prabowo orbit lately.”
Indonesia’s President Joko Widodo, second from the right, with his wife Iriana Widodo and sons Gibran Rakbuming Raka, far left, and Kaesang Pangarep, far right, taking part in the traditional wedding ceremony in preparation for the wedding of Jokowi’s daughter in Solo, Central Java on Nov. 7, 2017.
Afp Contributor | Afp | Getty Images
Lau echoed the same sentiments.
“Kaesang, 28, is a political neophyte and running on his father’s coattails,” she added, noting how the PSI has now become “a vehicle to channel the Widodo clan’s aspirations.”
CNBC reached out to Indonesia’s presidential palace for comment but did not hear back.
These developments don’t bode well for the country’s already fragile state of democracy, which only emerged 25 years ago after decades of authoritarian rule.
What is sure is that Widodo is playing a risky game in the last phase of his presidency.
Julia Lau
ISEAS–Yusof Ishak Institute
It also weighs heavily on Jokowi’s reputation. The former furniture salesman captured national hearts when he became the country’s first leader who didn’t come from a political or military background, raising hopes of a pushback against elitist-led systems.
But as his sons climb up the political ladder, critics are now drawing comparisons with existing political dynasties around Southeast Asia.
“Many liberals and intellectuals in Indonesia are now calling for a deeper look into the corruption and weakening of several democratic institutions in the country, their constitutional court, the anti-corruption commission, etcetera, that has occurred on Widodo’s watch,” said Lau from ISEAS–Yusof Ishak Institute.
Following failed attempts by his team to extend Jokowi’s tenure, she said, “this latest series of moves seems to be their way of trying to claw a permanent hold for themselves but may well backfire.”
“What is sure is that Widodo is playing a risky game in the last phase of his presidency,” Lau added.
The ‘Jokowi effect’
Analysts are now expecting what they call “a Jokowi effect” for the PSI and Gerindra parties.
Choosing Gibran, Jokowi’s eldest son, “is a clear signal by Prabowo’s camp to associate its presidential bid with the successes of Jokowi-era programmes and policies,” global research firm Asia House said in a report.
“The nomination of Gibran as his vice-presidential candidate is likely to win Prabowo votes from Central Java — where Jokowi’s family is originally from — and shift the support of Jokowi’s supporters from Ganjar and PDIP to the Prabowo camp.”
The PDIP, or Indonesian Democratic Party of Struggle, is the country’s ruling party.
The PSI is also seeking to capitalize on the popularity of Jokowi, who has unusually high approval ratings for a two-term president.
“The idea is that the popularity would rub off on Kaesang Pangarep and improve the electoral performance of the PSI,” explained Hadiz from the University of Melbourne.
“If that is accomplished convincingly, the Jokowi family can effectively take complete control of a political party. It never had such control before given the Soekarno family’s grip on the PDIP,” she said, referring to referring to Indonesia’s first president.
Meanwhile, the PDIP is increasingly distancing itself from Jokowi. His relationship with PDIP chair Megawati Sukarnoputri is now under pressure following his sons’ pivot to other parties.
“While some interpret Gibran’s candidacy as evidence of Jokowi’s involvement in dynastic politics, it’s also perceived as a snub to PDIP, the party that both supported Jokowi’s presidential bids and backed Gibran when he ran for mayor,” Asia House said.
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China’s consumer prices swing to declines in October
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An employee works on the assembly line of LED lighting products in China.
Vcg | Visual China Group | Getty Images
China’s consumer prices fell in October, as the world’s second-largest economy struggled with an uneven post-Covid recovery.
Data from China’s National Bureau of Statistics on Thursday showed October consumer price index shrank 0.2% year-on-year, more than the 0.1% decline expected by economists polled by Reuters.
This comes after China’s CPI was unexpectedly flat in September, highlighting the need for further policy support.
Producer prices declined 2.6%, slightly smaller than an expected decline of 2.7% and has been in negative territory for the 13th straight month. China’s PPI was at 2.5% in September, showing factory deflationary pressures remained.
“China is still in a deflationary environment. The domestic demand remains sluggish,” said Zhiwei Zhang, president and chief economist of Pinpoint Asset Management.
Beijing has provided targeted policy support even as recent data suggested growth has remained sluggish. Further hurting consumer confidence is an ongoing debt crisis in two of China’s largest real estate developers. China’s property sector makes up about 30% of its economy.
“With the budget deficit rising and the property developers potentially gaining support from the government, domestic demand will likely improve next year,” Zhang said.
Investors will now be tracking this year’s Singles Day shopping festival, which ends on Nov. 11, to gauge the strength of Chinese consumption.
But excitement about the shopping festival has waned.
“I think this year’s Singles Day sale has not been living up to expectations,” Hao Hong, partner and chief economist at Grow Investment Group told CNBC’s “Squawk Box Asia.”
“Ever since last year, people have stopped spending a lot of money on the Singles Day sale, so it is going to be a muted sales year,” Hong said.
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Hong Kong’s property prices won’t pop any time soon. Here’s why
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Residential buildings in Hong Kong, China on October 23, 2023.
Vernon Yuen | Nurphoto | Getty Images
Hong Kong’s leader John Lee this week eased the city’s decade-old residential property cooling measures — but questions remain on whether it’s enough to boost market sentiment and low transaction volumes for the private housing sector.
“Although relaxation of property restrictions was highly anticipated, the BSD [buyers’ stamp duty] cut from 15.0% to 7.5% surprised us; the other relaxations were in-line,” Citi’s Ken Yeung wrote in a note.
He doesn’t expect the move to reverse downward trend in Hong Kong’s property prices as interest rates remain high.
According to data from real estate agency Midland Realty, the second-hand property market average turnover ratio between 2017 and 2023 stands at 3.7%. That’s compared with 8.7% before the cooling measures took effect in 2010.
Buggle Lau, chief analyst at Midland Realty told CNBC the average turnover ratio in 2022 to 2023 are at historic lows, as property prices have corrected down by nearly 20% since their peak in August 2021.
He expects the policy address will give property prices “a chance to stabilize” and for volumes to pick up.
For the market to fully recover, both in terms of price and volume, interest rates will have to come down next year, the property analyst said.
He expects a further 5% downside on prices in the first half of next year should there be a rate cut.
Homeowners’ struggles
Hong Kong homeowner KC Mok has been trying to sell his apartment before his family immigrates at the end of the year — a popular reason for people selling their property in recent years.
The 41-year-old told CNBC that his 707 sq. ft. 3-bedroom apartment is currently listing at $9.5 million Hong Kong dollars ($1.21million), 20% lower than his purchase price in 2019.
He said many people have been viewing his place, but the only offer he received so far is a mismatch.
“Now when we come to selling the apartment, we found that the value of the apartment [is] already like $2 million dollars less, so a little bit depressed but we have to leave so it’s the timing maybe,” Mok said, acknowledging that the latest cooling measures “will help a little bit” for his situation.
Meanwhile, 33-year-old Kitty Yiu considers herself “lucky” as she sold her apartment and started renting in February, just before property prices fell and interest rates rose.
Yiu gave birth to her firstborn earlier this year and needed a bigger home to accommodate her growing family.
“To be honest, we are still in a struggle to see whether we should buy a new flat, like to buy a flat again,” she said.
“I think the price at this moment is still high, even if it’s having a downward trend, but for me I think it’s still overpriced,” said Yiu who doesn’t think the latest policy relief would increase her appetite to purchase a house.
Unlike Mok and Yiu, Eugene Law faces the struggle of rising mortgage rates as a new homeowner.
Together with his mother, Law, who is 30, purchased a flat at pre-construction in 2021 and moved in last year. His mortgage rate started at 1.9% and is currently at 3.375%. That means he needs to pay an additional HKD $6,000 ($767.09) per month for the interest, which he says makes him feel “so bad.”
“[It was] unexpected … because I expected the HIBOR may rise but I didn’t expect the prime rate will also rise, and also in a very high percentage.”
Prospective homebuyers in Hong Kong can choose to peg their mortgage rate with HIBOR or prime rate – known as the “H Plan” and “P Plan.” HIBOR refers to the interest rate for interbank borrowing, while prime rate is determined by individual banks.
In a low interest rate environment, the prime rate is usually the more popular choice as it is considered more stable, and easier for the mortgagor to make financial plans.
Despite regretting the timing of his purchase, Law said the latest easing of policy would not have affected the decision.
Risks for Hong Kong property
A recent report from UBS showed Hong Kong is the 6th overvalued city on their Global Real Estate Bubble Index. Zurich, Tokyo and Miami are the top three.
“Biggest risk [to Hong Kong’s property market] will be [a] pro-longed high-rate environment, and hence further mortgage cost increase. Longer run will be geopolitical risk,” said UBS’s china property market Mark Leung in an email to CNBC.
While describing the current sentiment as “a bit weak,” he expects the policy address would release sizable purchasing power from non-local expats who are waiting to become permanent residents.
With the second-hand market bid-ask spread remaining high and many homeowners not willing to sell their properties at a discount, Leung said he expects little room for property prices to reverse the downward trend.
For the primary market, he expects developers will now be more willing to cut prices in order to boost sales and “recycle cash, given higher interest rate environment.”
“Price-wise should be muted, as we think developers may be aggressive in price setting, hence cap the price rebound potential,” he added.
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U.S. chip export ban is ‘great news,’ says partner at Chinese tech investment fund
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A partner at a Chinese semiconductor investment fund has welcomed the U.S. government’s ban of certain advanced chip types to be exported to China, describing the move as “great news” which may stimulate a domestic ecosystem.
Chloe Wang, a partner and vice-president at the Guangzhou-headquartered Yang Cheng Fund, said: “We received the very great news this morning, and I didn’t feel surprised about the U.S. [which] continued to ban the H100 and 800 exports to China,” Wang told CNBC’s East Tech West conference in the Nansha district of Guangzhou, China, on Wednesday.
The U.S. Department of Commerce is set to prevent the sale of some advanced artificial intelligence (AI) chips to China, it announced on Tuesday, over concerns they could be used for military development purposes. This will restrict the export of chipmaker Nvidia‘s A800 and H800 chips, officials said.
Nvidia’s H100 chip, used by AI firms in the U.S., was banned for sale in earlier U.S. government restrictions.
Wang said the fund invests in semiconductor companies, including those in the AI training and autonomous vehicle sectors. One AI chip company Yang Cheng has invested in will launch its initial public offering this year, while a Shanghai-based AI chip firm is valued at more than $3 billion, Wang added, though she didn’t name the firms.
“We believe those kind of upstream chipmakers — they will drive, or they will play the leading role in China, and they will create their own ecosystem,” Wang added. “And maybe we can, not too much rely on the Cuda system,” she said, referencing Nvidia’s AI software.
“I still feel quite confident about the Chinese entrepreneurs as well as the consumer base market,” she added.
A worker holds a circuit board.
Owngarden | Moment | Getty Images
Wang said there are around 1,500 companies in China that are involved in the design of integrated circuits (IC) and a “shortage” of companies in the AI chip training sector, with around 20 start-ups in the space.
China wants to increase its computing power by 50% by 2025, according to a plan by several Chinese ministries announced in October. Doing so is seen as a key way of developing AI, which needs advanced semiconductors to process vast amounts of data.
The U.S. government ban is designed to prevent China’s access to advanced semiconductors “because they could be used for military uses and modernization,” U.S. Commerce Secretary Gina Raimondo said on a call with reporters Tuesday. They’re not intended to hurt Chinese economic growth, U.S. officials added.
In recent months attention has turned back onto Chinese tech giant Huawei. Its latest smartphone, the Mate 60 Pro, has a chip that appears to support 5G, despite U.S. sanctions that have sought to cut the company off from the technology.
The chip, made by China’s SMIC, has sparked concern in Washington and raised questions about how it was possible. There’s also scrutiny on whether the process being used to make these new chips is efficient enough on a large scale to sustain a Huawei comeback.
CNBC’s Kif Leswing and Arjun Kharpal contributed to this report.
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Minnesotans are the least stressed out people in America
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From the rollercoaster housing market or to the rising costs of groceries, it seems like everyone has reason to be a little stressed out. But, according to a new report, the level of stress you experience can also be influenced by where you live.
Earlier this year, WalletHub ranked America’s “most and least stressed” states. The report compared the 50 states across 41 metrics, including: unemployment rate, income growth, rate of separation and divorce, mental health, and unaffordability of visits to the doctor.
For the final ranking, the cities were scored across four key dimensions:
- Work-related stress
- Money-related stress
- Family-related stress
- Health and safety-related stress
WalletHub used data from the U.S. Census Bureau, Bureau of Labor Statistics, Centers for Disease Control and Prevention, and more agencies to determine the results.
The study also ranked the highest and lowest states in individual categories like average hours of sleep per night, psychologists per capita and average hours worked per week.
Mississippi ranked as the most stressed out state in the U.S. It had the highest rate of money-related stress. While the state offers the lowest cost of living in the nation, it also has one of America’s least educated and least productive workforces, as well as one of the worst rates of worker migration, according to CNBC.
On the opposite end of the spectrum, are the least stressed states which include Utah, Connecticut and South Dakota. Places like Hawaii and Florida, which both have been previously named some of the happiest states in the country didn’t make this top 10 list.
Minnesota ranked as the least stressed state in the U.S., according to WalletHub.
Walter Bibikow | Stone | Getty Images
The least stressed out state in America: Minnesota
Minnesota is the least stressed state in the United States, according to the report. Residents of the state say they experience the least amount of money- and family-related stress.
Minnesota also has the second highest average hours of sleep per night, right behind Colorado.
Known as the “Land of 10,000 Lakes,” Minnesota was named one of the top states to live and work in CNBC’s annual study.
The 10 least stressed out states in America
- Minnesota
- Utah
- New Hampshire
- South Dakota
- Massachusetts
- Iowa
- New Jersey
- Connecticut
- North Dakota
- Virginia
Utah took the No. 2 spot on the list.
The state had the fewest average hours worked per week. It also has one of the lowest percentages of the population living in poverty and has the lowest divorce rate in the U.S.
In a separate WalletHub study from September, Utah was named the happiest state in America. It had the highest volunteer rate, with 40.7%, 2.6 times higher than Florida, with the lowest volunteer rate.
Utah ranked as the second least stressed in the U.S., according to WalletHub.
Darwin Fan | Moment | Getty Images
And rounding out the top three is New Hampshire.
The state has the lowest percentage of adults in fair/poor health. It also has one of the highest credit scores, with an average of 729, according to CNBC Select.
New Hampshire has the lowest percentage of the population living in poverty and one of the lowest crime rates per capita.
Nashua, a city in in Hillsborough County, New Hampshire was named the safest city in America. It is considered one of the best places to live in the state, according to Niche.
New Hampshire ranked as the third least stressed state in the U.S., according to WalletHub.
Thomas H. Mitchell / 500Px | 500Px | Getty Images
According to data from the Census Bureau, New Hampshire is among the wealthiest and most educated states in the U.S.
New Hampshire is also one of the few states with no income tax on wages and salaries and no sales tax.
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