AI giant plans HK HQ

CHINA’S artificial intelligence (AI) and intelligent speech giant iFLYTEK and its subsidiary iFLYHEALTH will set up their international headquarters in Hong Kong’s flagship incubator Cyberport, Xinhua reported.

The firm plans to invest 400 million Hong Kong dollars (US$51.22 million) in Hong Kong over the next five years to establish an international headquarters, an international business headquarters, an international R&D center, an international trade and capital management platform, as well as a 150-member team to drive R&D and overseas market expansion. Meanwhile, iFLYHEALTH will set up an international research institute at Cyberport focusing on research that integrates medical services and AI.

Fast Retailing underperforms in China

FAST Retailing said net profit from China tumbled while revenue fell despite growth in global sales, while the chief executive of the Japanese parent company of fast-fashion brand Uniqlo reportedly said the mindset of Chinese consumers has changed.

Fast Retailing’s China sales plunged in the three months from March to May because of strong performance a year earlier, declining consumer demand, unseasonal weather, and unsatisfactory local product lineups, the Yamaguchi-based firm announced July 11. Global net profit jumped 22% to 401.8 billion yen (US$25.5 billion) in the nine months ended May 31 from a year ago, while operating revenue rose 10.4% to 2.4 trillion yen, Fast Retailing said.

China cuts key rates

CHINA on Monday cut the market-based benchmark lending rate and a key short-term rate in a bid to bolster the real economy. The one-year loan prime rate (LPR) came in at 3.35% Monday, down from the previous reading of 3.45%, according to the National Interbank Funding Center.

The over-five-year LPR, on which many lenders base their mortgage rates, was lowered by 10 basis points to 3.85%.

In addition, the People’s Bank of China lowered the interest rate on seven-day reverse repos from 1.8% to 1.7%.