🇭🇰 Take that, USA

What’s going on here?

Battery maker CATL filed for a secondary listing in Hong Kong that’s predicted to raise at least $5 billion – and the region’s drained stock market sure needs that power supply.

What does this mean?

When a business is ready to go public, it tends to list in a country that promises high valuations, interested investors, and complementary tax, compliance, and regulatory standards. For many, that’s the so-called Land of Opportunity: the US of A. But CATL – a Chinese firm that supplies the batteries for one in three EVs worldwide – has chosen to stay closer to home. Makes sense: the US has been tightening restrictions on Chinese tech lately, making it increasingly difficult for those foreign firms to compete on stateside soil.

Why should I care?

For markets: Watch your rear, Tesla.

China’s EV supply chain is giving the world plenty to watch. Just look at BYD. The carmaker has joined forces with DeepSeek – the AI lab with tech supposedly smart enough to rival OpenAI’s, at a fraction of the price. Together, the two have rolled out a self-driving system across BYD’s entire lineup of cars, including its budget-friendly models. This duo could threaten Tesla’s market share in China – not least because the American firm is still tangled in the country’s regulatory red tape. And for drivers, cash-strapped or otherwise, smarter tech at cheaper prices is one tempting proposition.

The bigger picture: China’s back – maybe.

Investors have steered clear of China’s stock market over the last few years, spooked by the country’s languishing economy and lackluster efforts to prop up its flailing property market. But not this year. The Hang Seng Tech Index is up 21% so far, while e-commerce firms Alibaba and JD.com are basking in a fresh wave of investor attention. This seems to be a “Sputnik moment” for China’s tech industry – and clearly, it hasn’t gone unnoticed.

What’s going on here?

SoftBank surprised analysts on Wednesday by revealing a $2.4 billion loss in the latest quarter, but the firm still stands by its long-term Vision… Fund.

What does this mean?

Losing $2.4 billion sounds pretty dramatic – especially when analysts had predicted a $1.5 billion profit. But it’s just part and parcel for SoftBank. See, one of the firm’s top priorities is to secure long-term bets through its Vision Fund – as opposed to delivering consistent wins every quarter. Some of the fund’s investments took quite heavy hits last quarter, it’s true – and with some investors doubting the strategy, SoftBank’s stock is trading at a discount. But the fund’s core holdings are holding steady, it’s sitting on some serious AI bets, and British chip designer Arm – SoftBank’s crown jewel – is up 200% since it first went public.

Why should I care?

For markets: SoftBank’s starry-eyed.

SoftBank’s investors should know they’re making a high-stakes gamble: the fund has a track record full of transformational bets like Alibaba and woeful ones like WeWork. Now, the current moonshot is AI. SoftBank’s backing OpenAI to the tune of $25 billion and funneling $20 billion into the Stargate Project. Last quarter’s loss won’t calm the nerves of investors who are already skeptical of those sums, but it probably won’t deter those who think AI’s the next Industrial Revolution either. If the latter are right, SoftBank could be sitting on a goldmine.

The bigger picture: SoftBank isn’t the only big spender.

AI isn’t just reserved for high-tech chatbots and fancy-schmancy cars anymore. The tech is cropping up in the defense industry – and investors aren’t being picky. They’re backing everything from AI-powered battlefield tools to quantum computing and nuclear power. Case in point: defense and security startups bagged 24% more funding from European venture capitalists last year than the one before, while the rest of the funding scene was in a lull.