GMT EIGHT

The British government has requested Apple Inc. to create a backdoor in their data. Apple Inc. retaliates by stating that new iCloud users in the UK will be unable to use the ADP data protection service.

The UK government has ordered Apple Inc. to create backdoors for customer data, leading Apple Inc. (AAPL.US) to respond on Friday by announcing that the company's most advanced end-to-end encryption service, "Advanced Data Protection" (ADP), will no longer be supported for iCloud new users in the UK. It is believed that this move will affect iCloud data storage, device backups, web bookmarks, voice memos, notes, photos, reminders, and message backups for UK users. According to media reports, this change will impact the security of data for UK users. The ADP end-to-end encryption solution ensures that only the user themselves can decrypt the data, even Apple Inc. cannot access it. In a statement, Apple Inc. said, "In light of the increasingly serious data leaks and other threats to customer privacy, we are extremely disappointed that ADP cannot be offered to our customers in the UK. ADP protects iCloud data through end-to-end encryption, meaning that data can only be decrypted by the user who owns it and only on devices they trust." Two weeks ago, there were reports that the UK government had ordered Apple Inc. to create backdoors for customer data globally. In response, Apple Inc. called this move an "unprecedented overreach by the government" and said that "the UK government may be trying to secretly undermine global user protections to prevent us from offering these protections to customers." Currently, UK users who are using ADP will need to manually disable this feature within an unclear grace period to maintain normal access to their iCloud accounts. Apple Inc. stated that it will provide additional guidance to the affected users. Media analysis suggests that, compared to complying with the government's request to create backdoors, Apple Inc.'s direct removal of encryption appears to be an attempt to appease UK regulatory authorities. However, it will be seen as a "clear refutation" of the government's order and may not satisfy the UK regulatory authorities. Apple Inc. said on Friday, "Enhancing the security of cloud storage through end-to-end encryption is more urgent than ever before, and the company remains committed to providing the highest level of personal data security for users and hopes to achieve this goal in the UK in the future." "As we have stated repeatedly, we have never created backdoors or master keys in any product or service, and we never will." Currently, UK users attempting to enable ADP will receive a message on their device stating, "Apple Inc. cannot offer 'Advanced Data Protection' (ADP) to new users in the UK." In accordance with the UK government's order to Apple Inc., the UK authorities not only require access to global user data but also demand that Apple Inc. provide access under the country's Investigatory Powers Act. This law empowers the government to force companies worldwide to disable or bypass encryption measures through Technical Capability Notices. The law also stipulates that companies must not disclose such requests when made by the government. This article is from "Wall Street News," written by Zhao Yuhe, edited by GMTEight: Li Cheng.

37 min ago

Tariffs are about to fall? Trump demands pharmaceutical companies to transfer production to the United States.

According to two sources familiar with the matter, US President Trump warned pharmaceutical companies at a private meeting that tariffs are on the way and suggested that businesses should speed up the transfer of overseas manufacturing operations to the US. Trump also did not promise to push Congress to weaken President Biden's drug pricing plan, which the pharmaceutical industry has been seeking relief from. The President's tone indicated that the pharmaceutical industry may find it more difficult to win allies in the White House than executives hope for. Despite Trump's inclination to support business, his relationship with pharmaceutical companies was not smooth during his first term, at one point accusing them of "getting away with murder" on drug pricing issues. On Thursday, Trump met with executives from Eli Lilly, Merck & Co., Pfizer, and the industry's largest lobbying organization. These executives had hoped to convince Trump to support cutting back on laws that allow the federal government to negotiate certain drug prices and to support policies to control intermediaries which the industry blames for rising out-of-pocket costs. The executives asked Trump to support equalizing the time between when drugs are excluded from price negotiation plans. Currently, schedules differ between complex injectable drugs and pills that can be manufactured at lower costs, with industry insiders believing this could distort the incentive structure for drug development. Sources said Trump did not commit to doing so. Trump expressed concern that changing drug pricing policies could complicate Republican efforts to reform taxes. On Friday, Trump reiterated his complaints from his first term that prescription drug prices in the US are too high compared to other countries. Trump issued a statement from the White House stating that Health and Human Services Secretary Robert Kennedy and his nominee for head of Medicare and Medicaid, Mohammed Oz, are considering lowering drug prices. Trump told Kennedy, "I hope you really focus on the cost issue, because Americans have been ripped off, it's no good, it's not acceptable." He added that Americans pay higher prices for the same prescription drugs as Britons, but did not specify which medications are prescription drugs. Health officials also said on Friday that they are moving forward with the next phase of Biden's drug pricing negotiation plan, indicating that efforts by the industry to change this process have not made progress. The next round of price negotiations includes popular weight loss drugs, Ozempic and Wegovy. Despite Trump's past criticism of the industry and appointing Kennedy, who supports erroneous theories about vaccines and other drugs, as the Health Secretary, industry executives had previously expressed optimism about Trump's second term.

49 min ago

Market risk aversion is rising as hedge fund giants hold a pessimistic view of the US economic outlook.

The US stock market experienced a significant drop on Friday, primarily due to concerns among investors about economic slowdown and stubborn inflation sparked by the latest economic data, leading to an increase in risk aversion in the market. Investors sold off risky assets and turned to more stable safe-haven assets. The Dow Jones Industrial Average fell 748.63 points, or 1.69%, to close at 43,428.02 points. The S&P 500 Index dropped 1.71% to 6,013.13 points, ending its consecutive upward trend. The Nasdaq Composite Index performed even weaker, dropping by 2.2% to close at 19,524.01 points. As a result, the Dow fell by approximately 1,200 points over two days, the S&P 500 Index had a weekly decline of 1.7%, and both the Dow and Nasdaq fell by 2.5%. The selling frenzy in the stock market intensified towards the end of Friday, as investors worried about potential additional tariff policies or other market-shaking measures by the Trump administration over the weekend. Within just one month of his inauguration, Trump had already introduced a series of trade barrier policies, plunging the market into continued uncertainty. Furthermore, several economic data released on Friday further deepened the market's pessimistic sentiment. The University of Michigan Consumer Sentiment Index dropped to 64.7 in February, a nearly 10% decline from the previous month, exceeding market expectations. This index showed that American consumers were concerned that new tariff measures would exacerbate future inflation, with their five-year inflation expectations rising to 3.5%, the highest level since 1995. Additionally, US existing home sales data fell below expectations, dropping to 4.08 million units last month, indicating a soft housing market. The US Services Purchasing Managers' Index (PMI) also fell into contraction territory, further confirming the trend of slowing economic growth. The outlook for US consumer spending became more cautious, with Walmart Inc.'s stock falling by 2.5% on Friday, marking a second consecutive day of decline. The company's earnings report released earlier had fallen below market expectations, intensifying investors' concerns about weak consumer spending. On Friday, billionaire investor and Chairman and CEO of hedge fund Point72, Steve Cohen, expressed his pessimism. He pointed out that the US economy was facing a series of unfavorable factors, including punitive tariffs, immigration restrictions, and large-scale government cuts in fiscal spending, all of which would put pressure on economic growth. During the FII Priority Summit, Cohen stated that Trump's trade policies could potentially raise inflation while suppressing consumer spending. He believed that tightening immigration policies could lead to a shortage in labor supply, further impacting economic growth. Additionally, Cohen criticized the Department of Government Efficiency (DOGE) led by Musk for its plan to cut $2 trillion in federal spending, believing that this move would have a greater negative impact on the economy. "These funds have been flowing within the economic system for many years, and now they may be cut or even completely stopped, which is absolutely a negative factor for the economy." Cohen predicted that due to the uncertainty in the macroeconomic environment, the stock market could experience a correction. He forecasted that US economic growth in the second half of the year would slow from 2.5% to 1.5%, and speculated that the market could undergo a significant correction. "I think the current economic landscape is undergoing some changes, perhaps this situation will only last for about a year, but either way, we have passed the best period of WINOX, and I would not be surprised to see a significant adjustment in the market." With the increase in market risk aversion sentiment, investors adjusted their positions, moving funds from high-risk assets like technology stocks towards traditional defensive sectors. Market stars like NVIDIA Corporation(NVDA.US) and Palantir(PLTR.US) experienced significant sell-offs on Friday, while Procter & Gamble Company(PG.US) rose by 1.8%, General Mills, Inc.(GIS.US) and Kraft Heinz Company(KHC.US) each rose by over 3%.

1 h ago

Is the largest gold vault in the United States safe? Trump: Will enter Fort Knox to ensure that the gold is still there.

Recently, the price of gold has been nearing historical highs, and the US government is currently sitting on a gold mine. However, even selling this gold would not effectively help the federal government repay its debts. Various speculations and rumors about the US gold reserves have been circulating. Tesla, Inc. CEO Elon Musk posted a provocative post on his social platform X this week: "Who can confirm that the gold at Fort Knox has not been stolen? Maybe it's still there, maybe it's not." Musk emphasized that this gold belongs to the American public, so everyone should know whether it is still safely stored. Trump responded to this. In an interview on Air Force One, he said, "We will enter the legendary Fort Knox and ensure that the gold is still there." He added, "If the gold is missing, we will be very angry." He then announced plans to visit Fort Knox for an inspection. Musk posted a video of Trump's interview on X and joked that if the situation at Fort Knox could be broadcast live, it would be a "hot" scene. US Treasury Secretary Benson said in an interview this week, "We audit Fort Knox every year, and all the gold is intact." So, how much gold does the US actually have? Data shows that the US government stores 147.3 million ounces of gold at Fort Knox in Kentucky. At the current price of about $2950 per ounce, the total value of this gold is approximately $435 billion. However, this is only part of the US government's gold reserves. According to Federal Reserve statistics, the US currently holds a total of about 261.5 million ounces of gold, some of which are stored in the vaults of Denver, West Point Military Academy, and the underground vaults of the New York Federal Reserve Bank. Based on current market prices, the total value of this gold exceeds $770 billion. Despite the market price approaching $3000 per ounce, the US government's gold value is still calculated at $42.22 per ounce. This price dates back to the Nixon administration in the 1970s, when the government set this price to weaken the dollar, suppress inflation, and end the gold standard. Treasury Secretary Benson said in an interview that there are currently no plans to revalue the US gold reserves. In fact, the US government cannot adjust the gold's book value to market prices unless Congress passes legislation. Assuming Congress allows gold to be revalued at current market prices, the Fed's gold assets could jump from the current $11 million to $750 billion. This "book wealth" doesn't mean the government needs to sell gold, but it could give the White House and Congress more flexibility in fiscal budget negotiations, even helping to extend the debt ceiling negotiation period. Strategists at Deutsche Bank pointed out, "Revaluing gold technically can provide Treasury with additional funding and could have a significant impact on the markets, depending on whether Congress is willing to push this policy." This approach is similar to homeowners increasing their home equity line of credit because their property has appreciated, freeing up more cash. However, David Miller, Chief Investment Officer and Senior Portfolio Manager at Catalyst Funds, believes that instead of just revaluing, it would be better to sell gold directly. He said, "The only reason to hold this gold is because of the historical legacy of the gold standard. If the government sells this gold, the proceeds could be used to reduce interest payments on the debt." Deutsche Bank's strategists predict that if the US government adjusts the gold's book value, it could push back the "X date" (the date when the Treasury runs out of cash) from August 2025 to early 2026. This could help give Congress more time in the negotiations for renewing the tax cuts in 2017 and advancing Trump's fiscal priorities. But is this enough to solve the US government's debt problem? Currently, US federal debt has risen to $36.22 trillion. In comparison, the $770 billion from US gold reserves is "just a drop in the bucket." George Milling-Stanley, Chief Gold Strategist at State Street Global Advisors, bluntly said, "We discuss every so often whether we should revalue or sell gold to repay debt. But the fact is, our gold reserves are far from sufficient." Furthermore, according to data from the World Gold Council, the total value of all gold globally is approximately $205 trillion. Even if the US government were to sell all its gold, the proceeds would still be far from enough to fill the debt gap.

1 h ago

Unexpected decline in U.S. existing home sales in January ends three-month growth trend.

In January, the sale of existing homes in the United States unexpectedly declined, ending a three-month growth trend mainly due to high mortgage rates and rising house prices, which suppressed housing demand. According to data released by the National Association of Realtors (NAR) on Friday, existing home sales in January fell by 4.9% compared to the previous month, with the seasonally adjusted annual sales volume dropping to 4.08 million units. This data was below market expectations, as economists surveyed by the media had predicted sales to fall to 4.12 million units. The sales data for January mostly reflected home contracts signed in November and December of 2023. According to data from the mortgage finance company Mortgage Bankers Association, the 30-year fixed mortgage rate increased from 6.72% at the end of October to 6.85% at the end of December, which may further suppress the purchasing power of home buyers. However, compared to the same period last year, existing home sales in January still increased by 2.0%. NAR Chief Economist Lawrence Yun stated, "Despite the Federal Reserve lowering short-term interest rates multiple times, mortgage rates have remained high in the past few months. Coupled with high house prices, housing affordability remains a major challenge for the market." Despite the Federal Reserve cutting rates by 100 basis points since September of last year, mortgage rates remain high. This is partly due to the rise in the yield of the 10-year U.S. Treasury note, which has increased due to strong economic resilience and stubborn inflation. Although the market expects rate cuts, most economists believe the Federal Reserve will at most cut rates once this year, or even not at all. In addition, the market is also watching for potential policies that President Trump may push, including tariffs, tax cuts, and large-scale expulsion of illegal immigrants, which are seen as likely to exacerbate inflation pressure and further influence interest rate trends. The supply situation in the second-hand housing market improved in January, with housing inventory increasing by 3.5% month-on-month to reach 1.18 million units, a 16.8% year-on-year increase. At the same time, house prices continued to rise, with the median price of existing homes reaching $396,900 in January, a 4.8% year-on-year increase. At the current sales pace, it would take 3.5 months for the market to absorb the existing inventory, higher than the 3 months at this time last year, but still lower than the 4-7 months level considered to indicate supply-demand balance. The average listing time for homes in January was 41 days, higher than the 36 days at this time last year, reaching the highest level since January 2020. First-time buyers accounted for 28% of total sales, unchanged from the same period last year. Economists and real estate agents believe that the market share of first-time buyers needs to reach 40% to support a healthy housing market. Cash transactions accounted for 29% of home sales in January, down from 32% at the same time last year. In addition, distressed properties (including foreclosures and short sales) accounted for 3%, up from around 2% in the past few years, indicating some signs of financial pressure in the market. Overall, the cooling of the existing home market in January reflects the continued suppression of housing demand in a high-rate environment. The future market trend still depends on the Federal Reserve's monetary policy adjustments, and whether a rate cut can stimulate more home buyers to enter the market.

21/02/2025

The optimistic mood has disappeared! The US S&P Global Composite Purchasing Managers' Index fell to 50.4 in February.

The latest data shows that the U.S. S&P Global Composite Purchasing Managers Index (PMI) fell to 50.4 in February, lower than January's 52.7, indicating a slowdown in overall economic activity in the U.S. private sector. Meanwhile, the manufacturing PMI rose slightly from 51.2 to 51.6, still indicating expansion in the manufacturing sector. However, the services PMI fell from 52.9 to 49.7, reflecting a weakening momentum in the industry, entering contraction territory. Following the release of the data, Chris Williamson, Chief Business Economist at S&P Global Markets, stated that market optimism for the next year has rapidly declined from near three-year highs at the beginning of the year to one of the most pessimistic expectations since the COVID-19 pandemic. He pointed out that businesses are generally concerned about the impact of federal government policies, including cutbacks in fiscal spending, tariff adjustments, and geopolitical factors. As a result of this data, the U.S. dollar index narrowed its gains during the day, falling to the 106.4 range, despite a slight increase on that day. The market made a cautious response to the complex signals of U.S. business activity data for February. S&P Global's previous February PMI forecast showed limited changes compared to the final value in January. The market is paying attention to future adjustments to the Federal Reserve's monetary policy, with most expecting a possible restart of rate cuts as early as July. In addition, influenced by PMI data expectations, the Euro against the U.S. Dollar still faces downward pressure in the short term. S&P Global's monthly PMI data, based on surveys of private sector executives, provides a forward-looking perspective on the overall health of the economy, covering key indicators such as GDP, inflation, exports, capacity utilization, employment, and inventories. Manufacturing PMI, services PMI, and composite PMI are the focus of investors, where an index above 50 represents expansion, while below 50 shows contraction. Due to the early release of PMI data compared to many official economic statistics, it is often seen as a leading indicator of economic performance. The January PMI data showed a decrease to 52.7, hitting the lowest level since April 2024, but still indicating robust business activity. S&P Global pointed out that the recovery in manufacturing production was offset by slowing service sector growth, while the speed of new orders growth slowed in January. However, employment growth accelerated to the fastest pace since June 2022, and input costs and product prices both rose at a faster pace. The market generally expected no significant fluctuation in February PMI data, with manufacturing PMI expected to rise slightly from 51.2 to 51.5, and services PMI expected to rise slightly from 52.9 to 53. As long as the service sector remains in strong growth, market confidence may remain stable. Investors will closely monitor the details of the PMI report on inflation and the job market. Federal Reserve Chairman Powell expressed caution on rate cuts in a recent semi-annual congressional hearing, with the market currently expecting the earliest possible rate cut in July. He emphasized that given stable economic growth, a strong job market, and inflation still above the 2% target, the Federal Reserve is not in a rush to adjust policy. If the services PMI unexpectedly falls below 50, the market may see a rapid sell-off of the U.S. dollar. But if the PMI data shows ongoing expansion in manufacturing and services remaining in the growth range, the dollar may strengthen against major currencies. If future PMI data shows rising input costs in the service industry and the job market remains solid, the Federal Reserve may maintain a tighter policy for a longer period. However, if price pressures ease and private sector job growth weakens, expectations for further rate cuts may increase, putting downward pressure on the dollar.

21/02/2025

OpenAI has launched an AI agent, Operator, for ChatGPT Pro users in multiple countries.

Microsoft Corporation (MSFT.US)-backed OpenAI has launched its artificial intelligence agent - Operator for ChatGPT Pro users in Australia, Brazil, Canada, India, Japan, Singapore, South Korea, the UK, and many other countries. Except for the EU, Switzerland, Norway, Liechtenstein, and Iceland, users in most regions where ChatGPT is available can use Operator. Operator is designed to automate various web-based tasks for users, including booking flights, restaurant reservations, filling out online forms, and shopping on e-commerce platforms. The tool runs through a dedicated web browser interface, allowing users to control it at any time. It utilizes an intelligent agent model that simulates human computer usage, enabling it to interact with graphical user interfaces on websites like a human would. This AI agent is only available to users who pay a monthly subscription of $200 for the ChatGPT Pro plan. This promotion follows the initial launch in the US in January this year. OpenAI claims that Operator outperforms similar competitive tools such as Anthropic's ComputerUse and Mariner from DeepMind under Alphabet Inc. Class C (GOOGL.US). OpenAI also stated that they are working to make this tool available to users in more regions, including the EU.

21/02/2025

Trump team emphasizes that tariffs will become a revenue-generating tool! Trade war fears may sweep the globe.

As U.S. President Trump attempts to push through tax cuts in Congress, Trump and his economic team are increasingly focusing on the revenue that tariffs policy could bring, which has raised alarm bells for countries trying to avoid a trade war. Republicans in Congress are working on a plan to extend the 2017 tax cuts policy which is set to expire later this year and implement additional tax cuts. These tax cuts are expected to create a fiscal deficit of $4.5 trillion over the next decade. Therefore, the Trump administration urgently needs as much revenue as possible, and tariff revenue has become an important tool in their policy toolbox. The Trump administration is touting tariffs as a "magic tool" and advocating for the use of tariffs in various aspects including reducing trade imbalances and increasing bargaining power over other countries. Economists have questioned Trump's logic and warned that tariffs could slow down economic growth, decrease government revenue, and provoke trade retaliation from other countries. However, Trump and his senior economic advisors' latest comments on Thursday indicate that they are increasingly emphasizing tariffs as a source of government revenue. Trump stated on social media that "a lot of tariff money will flow in" to help balance the federal budget. According to the Trump administration, part of the answer to the government revenue issue is the Department of Government Efficiency (DOGE) led by Elon Musk, which has implemented spending reduction plans. Trump stated that the government efficiency department led by Musk has saved over $55 billion in just the past month - although some have questioned this total. Meanwhile, the White House has recently been mentioning the tariffs list that Trump has implemented or threatened to impose more frequently. Chairman of the U.S. National Economic Council, Kevin Hassett, said on Thursday that the 10% tariffs policy on Chinese imports implemented earlier this month will bring in "$500 billion to $1 trillion in revenue over the next ten years." U.S. Commerce Secretary Howard Lutnick stated that the "equivalent" tariffs imposed by Trump on foreign tax systems and regulatory barriers could generate $700 billion in revenue annually. This trade emperor claimed that these funds would help eliminate budget deficits, cause interest rates to "plummet down", and ultimately drive economic growth. Echoes of history Indeed, the United States primarily relied on tariffs as a source of government revenue in the 19th century, which has become the historical basis of Trump's tariff concept. However, it should be noted that at that time, the size of the U.S. federal government was much smaller than it is today, and the situation changed dramatically after the income tax system was implemented in 1913. A report released by the U.S. Congressional Research Service in January showed that since World War II, tariffs' contribution to federal total revenue has never exceeded 2%. Official data shows that the total value of imported goods in the United States last year was $3.3 trillion, with an average tariff rate of about 3% currently applied. In order to achieve the $700 billion revenue predicted by Howard Lutnick, new tariff rates would need to be significantly increased. Economists at the Peterson Institute for International Economics calculated last year that if the goal is to maximize revenue, the U.S. would need to implement an almost 50% tariff rate, which could generate $780 billion in revenue. However, economists Kim Clausing and Maurice Obstfeld warned that as the trade landscape changes and the economy slows down, this number will gradually decrease. They stated that in the long term, implementing such policies "would actually lead to reduced revenue due to the tightening effect of such high tariffs." Since the 1930s, U.S. trade policy has always focused on reducing tariffs to persuade other countries to do the same, while opening up new markets for American goods. However, Trump and his supporters believe that this strategy has failed, citing China's rise as evidence of a global manufacturing power. Mary Lovely, an economist at the Peterson Institute, pointed out that this policy shift "completely breaks with decades of U.S. trade tradition" and could lead to price increases and slower growth. Mary Lovely added that this could backfire politically. She noted that the 25th U.S. President William McKinley once changed his tariff stance due to working-class opposition to high prices, laying the groundwork for a shift to income tax. Although the Trump team claims that tariffs are paid by other countries, research shows that these tariff costs are usually borne by U.S. importers and ultimately passed on to consumers. Mary Lovely stated that inflation would be a key factor in Trump's reelection in 2024, as "the reasons people don't like tariffs still exist." A recent poll released on Wednesday showed that Trump's approval ratings have slightly declined since he took office in January, mainly due to concerns about the economy. The survey found that 54% of respondents oppose Trump's new tariffs on imported goods from other countries, while 41% support them. Fiscal considerations Republicans in Congress are open to increasing tariff revenue in the short term. Chairman of the House Ways and Means Committee, Jason Smith, stated earlier this month, "When you consider the fiscal health of the whole country, you must take into account the potential future revenue from President Trump's trade proposals." However, this domestic priority consideration may weaken Trump's idea of using tariffs as an economic diplomatic tool. Furthermore, former U.S. trade negotiator and current researcher at the Atlantic China Welding Consumables, Inc. Council, Daniel Mullaney, said that focusing on tariff revenue may pose new challenges for U.S. trade officials who are accustomed to eliminating trade barriers rather than creating revenue. He stated, "This is a new change. Now, we view low tariffs as revenue loss and high tariffs as revenue increase." Former EU trade negotiator and current consultant at Bruegel think tank, Ignacio Garcia Bercero, warned that if increasing government revenue becomes the primary goal of Trump's tariff policy, it may be difficult to avoid a trade war between the U.S. and Europe in the coming months. He said, "From a European perspective, this is not a good thing, and it is clear that all this indicates that actual negotiation space has become very limited."

21/02/2025

The Securities and Futures Commission of Hong Kong and its counterparts in Asia have reached a consensus on the regulatory direction of sustainable development, technology, and investor protection.

On February 21, during the regional committee meeting organized by the International Organization of Securities Commissions (IOSCO), the Securities and Futures Commission of Hong Kong (SFC) hosted discussions among securities regulatory agencies in the Asia-Pacific region to promote consensus on a wide range of capital market issues. Ms. Ashley Alder, the Chief Executive Officer of the SFC, and Ms. Nathalie De Basaldua, Director General of the Directorate-General for Financial Stability, Financial Services, and Capital Markets Union, co-chaired the EU-Asia-Pacific Financial Regulatory Forum. Financial regulators and senior officials from Europe and the Asia-Pacific region discussed the latest developments in financial supervision and regulation in the digitalization, fintech, and sustainable finance areas. The Asia-Pacific Regional Committee of IOSCO, chaired by Ms. Alder, held a three-day meeting in Vietnam from February 19 to 21, 2025, to facilitate collaboration on shared topics of interest. Members agreed to adopt coordinated regional policies to address fraud and cyber threats, and to share experiences and technologies related to detecting and investigating investment fraud, as well as leveraging technological innovations to address emerging issues. During her visit, Ms. Alder met with Ms. Vu Thi Chan Phuong, Chairman of the State Securities Commission of Vietnam, to discuss regulatory cooperation, cryptocurrency regulation, and common concerns related to capital markets. She welcomed the State Securities Commission of Vietnam as the 14th and latest signatory of the Multilateral Memorandum of Understanding of the Asia-Pacific Committee on Multilateral Supervisory Cooperation. The signing ceremony of the Memorandum of Understanding was witnessed by the Minister of Finance of Vietnam, Mr. Nguyen Van Thang. In her keynote address at the seminar organized by the State Securities Commission of Vietnam, Ms. Alder stated, "The Asia-Pacific Committee provides a valuable platform for securities regulatory agencies in the region to establish consensus and cooperation on cross-border issues, which is crucial for enhancing global trust in the growing capital markets of the Asia-Pacific region. By sharing insights and promoting cooperation, every one of us present here today can learn about emerging trends, evaluate risks, and identify key actions to better address the current complex landscape." Prior to this, senior executives from the SFC participated in the meetings of the Enforcement Directors and Inspection Directors of the Asia-Pacific Committee, exchanging experiences and sharing views on a range of topics. These topics included priorities and trends in enforcement work, the use of technology for regulatory duties, the rise and use of generative artificial intelligence in the financial industry, and regulatory policies regarding custody of virtual assets.

21/02/2025

State Council Meeting Issues Major Deployment, New Opportunities for the Electric Vehicle Battery Recycling Industry

On February 21, the State Council executive meeting reviewed and approved the "Action Plan for Improving the Recycling and Utilization System of New Energy Vehicle Power Batteries." The meeting pointed out that currently, the phase of mass retirement of automotive power batteries has begun in China, and it is particularly important to enhance the level of recycling and utilization of power batteries. Industry insiders believe that this move is a significant boon for the new energy vehicle and battery recycling industries, indicating that companies such as Contemporary Amperex Technology (300750.SZ), Gotion High-tech (002074.SZ), ENVISION GREEN (01783), which are expanding into the recycling business, are expected to seize new growth opportunities in the huge market. The State Council executive meeting emphasized the need to strengthen full-chain management, focus on clearing obstacles, and establish a standardized, safe, and efficient recycling and utilization system. It also called for the use of digital technology to monitor the entire life cycle of power batteries, from production, sales, dismantling, to utilization, making the process traceable. The meeting stressed the importance of regulating recycling and utilization through legal means, developing and improving relevant administrative regulations, and enhancing supervision and management. It also urged the acceleration of the formulation and revision of standards related to green design of power batteries and carbon footprint accounting of products to promote recycling and utilization through standards. According to the forecast of the China Shipbuilding Industry Group Power Battery Industry Innovation Alliance, China's power battery installed capacity will exceed 1300GW by 2030. In the future, China will face a large-scale retirement of power batteries, with enormous potential in the power battery recycling market. The market for phased utilization is expected to achieve rapid growth after 2025. Wang Xiaokang, President of the China Industrial Energy Conservation and Clean Production Association, stated that by 2030, China's accumulated retirement volume of power and energy storage batteries will exceed 3 million tons. The market size of China's power battery recycling is estimated to exceed 140 billion, a growth of over 9 times compared to the actual market size in 2022, possibly even reaching 10 times. With the strong support of various relevant departments of the state, the energy battery recycling industry has made significant progress in recent years. For example, Contemporary Amperex Technology acquired Bampu Circulation in 2013, officially entering the battery recycling industry by manufacturing ternary cathode precursor materials using metal elements from recycled batteries. Its wholly-owned subsidiary Ningde Jiaocheng also includes a battery recycling system in its business operations. On September 28, 2024, under the leadership of Guoxuan Group, Tongling DeLi New Energy Technology Co., Ltd., invested a total of 5.2 billion yuan in the construction of a lithium battery comprehensive utilization and PACK industrialization project, planning to do it in two phases. Official data from Gotion High-tech shows that the company can process 50,000 tons of waste batteries and 10,000 tons of discarded pole pieces annually, reaching battery-grade phosphoric acid and lithium carbonate products. ENVISION GREEN recently announced a battery recycling cooperation agreement with Zhejiang Huayou Cobalt's subsidiary, Huayou Green Energy. According to the agreement, the two parties agreed to provide end customers with one-stop battery collection and disposal services based on the existing 31 service points in Europe. According to public information, ENVISION GREEN Group is currently building the first power battery processing facility in Hong Kong, and the project is expected to begin trial operation at the end of this year or early next year.

21/02/2025

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