Key Takeaways:

• Alibaba plans to spin off its T-Head unit for a separate listing amid high market valuations for AI chip makers
• LVMH is handing over its Greater China duty-free operations to a state-owned enterprise as the sector struggles with declining financials

Today we examine two major strategic shifts involving global giants navigating the complex Chinese market. On one hand, we have a push by Alibaba (BABA.US) into the overheated semiconductor sector. Will it be valued as high as China's other AI chip makers? And on the other, a strategic retreat by LVMH (MC.PA) from the Chinese retail travel space. Is this a retreat for LVMH, or is it a strategic reshuffling?

TCL is taking over Sony's home entertainment brand, while Anta has become Puma's largest shareholder. Is this the start of a new wave of Chinese acquisitions of foreign brands? And China Merchants Bank has reported near-zero profit growth for 2025. What does this leading commercial bank's lack of growth say about the Chinese economy?

China's office market is hugely overbuilt, and yet developers keep buildling. What's ahead for this market? And China's dumpling king, Yuen Kee, is gearing up to list in Hong Kong. Will investor bite, especially in the current slowing consumer market?

China has reduced or killed tax rebates for solar product and EV battery makers. What's driving the decision? And BYD takes the global NEV crown from Tesla. What's behind BYD's success?

Domestic investors holding about $500 worth of Vanke bonds have agreed to extend their Dec. 28 maturity date by a month. Why are Vanke and its peers continually turning to this kind of delaying tactic rather than doing bankruptcy reorganizations? And pet hospital operator Ringpai has applied for a Hong Kong IPO, hoping to charm investors on the big growth potential of China's pet market. Why is the company still struggling to make money despite that potential? And

In a landmark validation for Chinese AI, Facebook parent Meta has agreed to buy general AI agent maker Manus. But why is Meta also quite vehement about cutting all of Manus' China ties, both in terms of investors and business activity? And regional Chinese lender Weihai Bank has just received a major cash infusion from its local government in Shandong province. Is this a worrisome sign for investors?

Hong Kong has completed just its third listing using a special purpose acquisition company (SPAC) since the program's launch four years ago. Why has uptake been so anemic? And Hong Kong's popular Mannings health and beauty chain is pulling out of Mainland China after more than two decades in the market. Why is it calling it quits?

Hong Kong's stock regulator has warned IPO underwriters over the declining quality of new listing applications. Is this a red flag for the city's booming IPO market, or just the usual regulatory caution? And the U.S. could fine telecoms equipment maker ZTE $1 billion for bribery in Brazil. Why does Washington think it can force ZTE to pay such a large amount?