Hong Kong Daily Briefing

US prosecutors filed to dismiss all criminal fraud and bribery charges against Gautam Adani, seeking an end to the high-profile solar bribery case filed in 2024. For Asia investors, this removes a major cloud over Adani Group equities — Adani Green Energy, Adani Ports, and Adani Enterprises are all expected to gap up sharply at NSE/BSE open. SCMP broke the story. GQG Partners, which aggressively bought Adani Group stocks after the Hindenburg report, stands to materialize significant unrealized gains on this development.

The 30-year US Treasury yield touched its highest level since 2007 on Tuesday, driven by inflation fears, Middle East war risk premium, and fiscal deficit concerns. For HK markets, higher US long-duration yields tighten effective monetary conditions via the AED-style peg mechanism — HKMA must maintain the USD/HKD peg, so HK monetary policy follows the Fed. LINK REIT and Wharf REIC face cap rate compression; watch USD/HKD — if it moves toward the 7.85 weak-side convertibility undertaking, HKMA will need to absorb pressure.

Argentina's Milei government moved to settle and wind down its currency swap with the PBOC under Trump's ultimatum on financial ties with China, SCMP reported. For HK-listed Chinese banks with LatAm exposure (ICBC, Bank of China), the signal is that USD dominance is being actively reinforced in new geographies. This is a small but meaningful indicator of how US-China financial decoupling is progressing beyond trade policy, and worth monitoring for its implications on RMB internationalization ambitions.