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According to a survey by Bank of America Corp., concerns about a systemic credit event are increasing among fund managers due to issues in global property markets. About one in six respondents consider this to be the biggest risk facing markets, up from one in eleven in December. The disquiet is particularly focused on US commercial real estate and Chinese property markets. The Federal Reserve's potential interest rate cuts to alleviate pressure on real estate have been hindered by higher-than-expected inflation numbers. Smaller banks are at risk of default rates in their commercial real estate loan books, while larger banks are considered more stable. A 10% default rate on commercial real estate loans could result in $80 billion in additional bank losses, leaving over 300 smaller regional banks at risk of solvency runs. The Federal Reserve is working with lenders to address expected losses, and regulators are ensuring that loan-loss reserves and liquidity levels are sufficient. The survey found that nearly 40% of fund managers see US commercial real estate as the most likely source of a credit event, while 22% see Chinese real estate as the biggest threat. The turmoil has also affected German lenders with exposure to US commercial real estate. [Extracted from the article]

Hong Kong has released plans to regulate ride-hailing services like Uber, which has been operating unregulated in the city for the past decade. The proposal includes licensing platforms such as Uber and implementing stricter penalties for rule-breaking. However, the plan lacks clarity, and there are no plans to increase the number of hire-car permits available, which could leave many Uber drivers operating illegally. The government aims to improve taxi services by introducing premium fleets. The outcome of this dispute may have implications for how Uber is regulated in other locations. [Extracted from the article]

Hong Kong has announced plans to regulate ride-hailing services, including Uber, in an effort to improve taxi services in the city. The government intends to license platforms like Uber and impose stricter penalties for rule violations. However, the number of hire-car permits available for ride-hailing services will not be increased, potentially limiting Uber's operations. The move to regulate ride-hailing services comes in response to complaints about rude service, overcharging, and dangerous driving in the taxi industry. The Transport Department will conduct a study on commuter needs to shape the new regulatory regime. [Extracted from the article]

Hong Kong's proposed rules for "market soundings" have been criticized by one of the world's largest hedge-fund associations. The draft guidelines aim to increase oversight on non-public information sharing practices between brokers and potential investors ahead of deals. However, the association argues that these rules would put Hong Kong at a disadvantage compared to other major jurisdictions and could lead to international market participants conducting business outside of Hong Kong. The Securities and Futures Commission is currently considering the feedback received during the consultation period. [Extracted from the article]

Economist Stephen Roach has returned to Hong Kong to address the backlash he received after making negative comments about the city's future. Roach maintains his grim outlook on Hong Kong and China's economy, emphasizing that the city's economic prospects are closely tied to the mainland. He also warns of a growing intolerance of debate in China and describes being "muzzled" at a prominent event in Beijing. Roach's return to Hong Kong has sparked further discussions and debates on the city's future as a global finance hub. [Extracted from the article]

Hong Kong's government is considering new tax rules to attract more private credit and infrastructure investments. The proposed rules would offer tax exemptions on interest income to special purpose vehicles for alternative investments, including private credit, hybrid securities, real estate, and infrastructure. Hong Kong is facing competition from Dubai and Singapore in attracting asset management businesses, and the city hopes that these tax rule changes will help increase its jurisdiction and legal infrastructure. The global alternative funds sector is expected to grow significantly, and Hong Kong wants to position itself as an attractive location for these funds. However, the city currently faces economic challenges and geopolitical tensions. Singapore already has a broader scope for fund exemptions, giving it an advantage in attracting private credit funds. Hong Kong's tax exemption regime for funds is self-assessed, which can create confusion for managers. The government is seeking feedback from the industry on the proposed tax rule changes. [Extracted from the article]

Hong Kong's Chief Executive, John Lee, has proposed new legislation called the Safeguarding National Security Ordinance, which aims to protect the Chinese state. The legislation, known as Article 23, seeks to create new offenses such as insurrection and external interference, and update colonial-era laws concerning state security. Lee justifies the need for this law by citing complex geopolitics and rising threats of foreign spying. The proposed law will work in tandem with the existing national security law imposed by Beijing in 2020. The consultation process for the new law will last until the end of February, and the government aims to complete the legislative process by 2024. [Extracted from the article]