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99.150

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Risk Warning on Trading HK Stocks

Despite Hong Kong's robust legal and regulatory framework, its stock market still faces unique risks and challenges, such as currency fluctuations due to the Hong Kong dollar's peg to the US dollar and the impact of mainland China's policy changes and economic conditions on Hong Kong stocks.

HK Stock Trading Fees and Taxation

Trading costs in the Hong Kong stock market include transaction fees, stamp duty, settlement charges, and currency conversion fees for foreign investors. Additionally, taxes may apply based on local regulations.

HK Non-Essential Consumer Goods Industry

The Hong Kong stock market encompasses non-essential consumption sectors like automotive, education, tourism, catering, and apparel. Of the 643 listed companies, 35% are mainland Chinese, making up 65% of the total market capitalization. Thus, it's heavily influenced by the Chinese economy.

HK Real Estate Industry

In recent years, the real estate and construction sector's share in the Hong Kong stock index has notably decreased. Nevertheless, as of 2022, it retains around 10% market share, covering real estate development, construction engineering, investment, and property management.

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      EU Imposes Steep Duties On Strategic Raw Material Imports From China

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      Economic
      Summary:

      The European Union has introduced sharply elevated anti-dumping tariffs on fused corundum imports from China to curb market distortion and reduce strategic dependency...

      High Anti-Dumping Tariffs Target Strategic Input

      On January 16 in Brussels, the European Commission announced the imposition of anti-dumping duties ranging from 88.7% to 110.6% on fused corundum imported from China. Alongside these tariffs, the EU introduced a limited duty-free import quota, allowing a capped volume of Chinese fused corundum to enter the bloc without additional levies.
      The decision follows an assessment that imports of the material were being sold at unfairly low prices, placing sustained pressure on European producers. By setting tariffs at such elevated levels, the Commission signaled an intention to materially alter trade incentives rather than merely adjust market behavior at the margin.

      Why Fused Corundum Matters To Europe

      Fused corundum, also known as fused alumina, is a critical industrial input used in steelmaking, glass production, ceramics, and advanced abrasives. Its importance extends beyond civilian manufacturing into defense-related applications, where material performance and supply reliability are essential.
      The Commission emphasized that disruption or overconcentration in the supply of this material could generate systemic risks for Europe’s industrial ecosystem. In this context, trade measures are framed as a tool to stabilize downstream industries rather than a reaction to isolated pricing practices.

      Industrial Independence And Supply Security

      In its statement, the Commission stressed that the measures aim to counter injurious dumping while preventing structural vulnerabilities from forming across strategic value chains. European Commission President Ursula von der Leyen underlined that the policy is designed not only to protect domestic producers, but also to ensure secure access to inputs for downstream manufacturers.
      The logic linking tariffs to industrial resilience is based on reducing exposure to single-country supply dominance. By raising the effective cost of Chinese imports while maintaining a limited duty-free quota, the EU seeks to rebalance sourcing patterns without triggering an abrupt supply shock.

      A Shift In EU Trade Strategy

      The decision reflects a wider evolution in EU trade policy, where strategic autonomy and supply chain security increasingly guide intervention. Rather than focusing solely on price competition, Brussels is treating certain raw materials as foundational assets for industrial and defense capacity.
      This approach suggests a correlation between heightened geopolitical risk and the EU’s willingness to deploy aggressive trade instruments. As materials with dual-use or defense relevance gain prominence, similar measures could become more frequent, reshaping Europe’s trade relationship with key suppliers such as China over the medium term.
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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