What's in this episode:

• TOP BIT: LVMH Boss Shops for Chinese Brands
  • Bernard Arnault purchased items from local Chinese brands during his latest Shanghai trip, a symbolic shift.
  • The Chinese luxury market is slowing (down 20%), prompting consumers to turn to homegrown labels with sharper pricing and stronger local aesthetics.
  • Domestic brands like Songmont, Laopu Gold (1,000%+ online sales surge), and Mao Geping are growing at double and triple-digit rates, challenging Western houses.
• NUMBER OF THE DAY: 313.3 Billion RMB (~$42 Billion USD)
  • The size of China's coffee market in 2024.
  • Consumption has jumped from 6 to 22.24 cups per person in seven years (+15% avg. growth).
  • The market is driven by cheap, convenient brews from Luckin and Cotti, pressuring high-end specialty coffee.
• MARKET BIT: Manner Coffee Starts Billion IPO Run in Hong Kong
  • Shanghai's Manner Coffee, backed by ByteDance and Temasek, is planning a Hong Kong IPO at up to $3 billion USD valuation.
  • Manner serves as ByteDance's "offline behavior lab," using digital tracking for optimization.
  • The IPO reflects Hong Kong's revitalized consumer-focused listing market.
• HEAD OF THE DAY: Kwon Young-soo (권영수)
  • Former LG veteran who guided four affiliates as CEO, known for his "Attitude over intelligence" management style.
  • He emphasizes that CEOs must take risks and execute the vision set by owners, and that investment in AI cannot be delayed.
• Partner Highlights:
  • China pivots its foreign lending to US tech (semiconductors, AI) with over $200 billion USD flowing into US projects.
  • Apple hit 25% smartphone market share in China in October, a temporary high before the Huawei Mate 80 launch.
  • Singapore's transport authority confirmed its Chinese Yutong e-buses lack remote control functions, addressing cybersecurity concerns.
• Country Reads: Strong reforms boost M&A activity; Singapore leads Southeast Asian IPOs; Nvidia's HBM demand hikes chip prices.

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What's in this episode:

• TOP BIT: US Sanctions Turn China’s AI Chip Star into a Billionaire
  • Cambricon's founder Chen Tianshi has seen his fortune surge to $23 billion USD.
  • Stock Surge: Share price up over 765% in 24 months after being pushed onto the US Entity List in 2022.
  • Revenue Boom: Q3 revenue hit $240 million USD and net profit reached $78 million USD (a 500%+ increase year-over-year).
  • The US chip ban and Beijing’s "buy local" policy redirect orders to domestic suppliers like Cambricon, despite a technology gap with Nvidia's ecosystem.
• NUMBER OF THE DAY: 491.000
  • The percentage of China-Japan flight bookings canceled since the start of the diplomatic dispute.
  • This cancellation wave risks shaving up to 0.5 percentage points off Japan’s GDP and is pushing tourism back to Covid-era levels.
• MARKET BIT: L’Oréal Buys into China’s Skincare Boom
  • L’Oréal takes a minority stake in "clean-beauty" label LAN (following an earlier $62 million USD stake in Chando).
  • This shortcut strategy counters the $75 billion USD "C-Beauty Boom," where local brands are rapidly gaining market share against foreign competitors.
  • The goal is to stabilize L’Oréal China's business, which grew 3% in Q3, by tapping into local speed and mass-market access without cannibalizing core brands.
• HEAD OF THE DAY: Chen Tianshi
  • The Cambricon founder whose net worth is now $23 billion USD, a visible leader of the new generation of Chinese chipmakers.
  • His early AI chip vision was once rejected for funding and called "fantasy."
• Highlights:
  • Goldman Sachs is in exclusive talks to buy Burger King Japan for about $452 million USD.
  • European PE firm EQT plans to triple its Asia investments to $110 billion USD over five years, challenging KKR and Blackstone.
  • Luckin Coffee reports Q3 revenue growth of 50% to €1.8 billion and record 110 million monthly active customers, but downplays US relisting plans.
• Country Reads: AirAsia X uses Istanbul to reach Europe; Samsung hikes memory chip prices by up to 60%; Vietnam and Germany deepen high-tech alliance.

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What's in this episode:

• TOP BIT: Travel Warnings, Warships, and Sharp Words
  • Japan's PM Sanae Takaichi states a Chinese attack on Taiwan poses an "existential threat" to Japan, sparking a diplomatic storm.
  • Beijing responds with harsh rhetoric (a diplomat suggesting Japan's "dirty neck" be "severed") and summons ambassadors.
  • China issues travel warnings for Japan, leading to free rebookings/refunds for flights.
  • Increased military presence: China's Coast Guard patrols near disputed islands; Taiwan reports more military aircraft/vessels.
  • Beijing advises Chinese students to "carefully reconsider" studying in Japan, while simultaneously courting Taiwanese travelers with visa-on-arrival.
  • Historical context: Tensions fueled by past disputes (2012 Senkaku crisis), China's military buildup, and Japan's strategic shift in defense policy.
• NUMBER OF THE DAY: $11.2 Billion
  • The amount Chinese tourists spent in Japan in 2024, making them Japan’s strongest spending group (one-fifth of all foreign tourist spending).
  • Early slowdown signs: Hotel cancellations and paused marketing activities in China due to political tensions.
• MARKET BIT: Samsung’s $310 Billion Mega Plan
  • Samsung plans a $310 billion investment in South Korea over five years to lead the global AI race.
  • Key projects include Pyeongtaek Plant 5 (chip fab, 2028 launch) and new AI data centers by Samsung SDS for proprietary AI models and GPU capacity.
  • Part of a national re-industrialization push, with Hyundai also investing $86.5 billion in AI, autonomous tech, and EVs.
  • Samsung creates its first dedicated M&A team for AI, semiconductors, and automotive tech.
• WORD OF THE WEEK: Nunchi (눈치)
  • A crucial Korean soft skill meaning "eye measure"—the ability to read the room and unspoken cues.
  • Essential for navigating strict hierarchies in Korean companies, influencing behavior and feedback.
• Partner Highlights:
  • China approves foreign in-car AI (Tesla, Volvo, Mercedes-Benz) for the first time.
  • Alibaba adopts digital bank tokens (JPMorgan partnership) for faster global payments.
  • Marathon madness in Seoul disrupts daily life, with events jumping from 19 to 254 in four years.
• Country Reads: Japan split on collective self-defense if China attacks Taiwan; Thailand's king visits China; Malaysia's 2025 growth forecast.

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