☕️ Good morning friends, 

Because life and business in Asia are far too exciting to leave to AI bots, we are now taking things one step further:

Starting now, we are also available as a podcast! In the first episode, Michael explains why he decided to move from Germany to China.

👀 Watch it on YouTube in 4K.

🎧 Or listen on your favorite podcast app. All links can be found here.

We look forward to your feedback and are excited about this new chapter! 🧡

Asian markets are extending their rally across the board, with capital continuing to rotate out of the U.S. and into Asia.

The MSCI Asia Pacific keeps rising, and UBS expects around 10% earnings growth for the MSCI China in 2026, driven by AI, semiconductor equipment, and internet platforms.

🇯🇵 Snap election fuels the market: The Nikkei is hitting new records as investors speculate about an early election in February. A clear win for Takaichi would give her room to push her growth agenda: more fiscal spending, more high-tech, more defense.

👉 Stocks up, yen down.

TOP BIT

🧠 Fight against forgetting: Novartis bets $1.7 billion on China biotech

The Swiss pharma giant Novartis has struck a major deal: for up to $1.67 billion, the group is securing the global rights to a new Alzheimer’s drug from the Chinese startup SciNeuro Pharmaceuticals.

Why this is important

Alzheimer’s currently affects 55 million people worldwide and will cost the global economy $2.8 trillion by 2030.

Details

💉 Cracking the "blood-brain" barrier: The main problem with Alzheimer’s medications is that the active ingredient often does not reach the brain in sufficient quantities.

• SciNeuro uses a "blood-brain barrier shuttle" technology that transports more active ingredients to where Alzheimer’s damage occurs.

💰 Cash injection for SciNeuro: The Shanghai and Maryland-based startup will receive $165 million in cash immediately. A further $1.5 billion will follow upon reaching clinical and commercial milestones.

📊 A gigantic market: By 2050, according to the WHO, there will be 139 million Alzheimer’s patients. Japan has the highest Alzheimer’s rate worldwide with 3,080 cases per 100,000 inhabitants, followed by Italy, Slovenia, and Monaco.

Background

The deal is a mark of distinction for the Chinese biotech scene. In 2025, the industry closed deals worth a record $136 billion. The SciNeuro deal is part of a wave of Chinese innovations in areas such as weight-loss drugs and radioligand therapies.

For investors, it is clear: in 2026, the path to curing widespread diseases like Alzheimer’s inevitably leads through laboratories in Shanghai and Suzhou.

📊 All details & data: Press Release, SCMP, BioSpace

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NUMBER OF THE DAY

That’s how sharply Morgan Stanley is lifting bonuses for bankers in Asia.

💰 Bonus boost on record revenue: After a strong year with nearly USD 10bn in regional revenue, Morgan Stanley is significantly expanding its bonus pool. Driven by equity trading, prime brokerage, wealth management and strong M&A momentum.

🍳 Lunch is back on the table: Top managing directors in tech and country banking are again earning total compensation of USD 2–2.5m. In 2024, roughly one in five Asia MDs walked away with no bonus at all.

Watch: Asia revenue stood at USD 7.64bn in 2024, with USD 10bn seen as a five-year target. Hitting it barely a year later shows how fast capital is rotating into Asia. US investors, Middle Eastern capital and financial sponsors are building exposure at record speed.

MARKET BIT

🧠 Memory-Chip Boom: China’s GigaDevice jumps 40% in Hong Kong IPO

📈 Chip Chip Hooray: GigaDevice jumped as much as +54% intraday in its Hong Kong debut and closed about +37% above its offer price. The company raised roughly $600 million.

💾 Scarcity lifts profits: The rally reflects the global memory-chip shortage. Rising prices for NOR flash and other memory chips are boosting margins. GigaDevice’s profit surged nearly sevenfold in 2024 to about $150 million.

🥈 Global No. 2: GigaDevice is now the world’s second-largest NOR flash supplier with an 18.5% market share. Its chips power cars, industrial equipment, consumer electronics and energy storage—areas where demand remains strong despite macro worries.

🌏 Asia-wide boom: This is not a China-only story. SK hynix and Samsung are benefiting from the same cycle, posting strong earnings, investing aggressively in new capacity, and cashing in on higher memory prices.

🏦 Hong Kong as capital gateway: In 2025, Hong Kong led the world in IPO proceeds, with mainland tech listings in particular benefiting from global AI demand.

Background

Rising demand for memory chips from AI, automotive and industrial applications is colliding with limited capacity. Established Asian players are benefiting most. While Samsung and SK hynix are posting record profits, Chinese chip designers like GigaDevice are using Hong Kong’s capital markets to strengthen their position in the global competition.

👉🏻 Full Story: Reuters, SCMP, DealStreet Asia

HEAD OF THE DAY

 🇹🇼 Khloe Ma

🍵 Asia’s Bubble Tea Visionary

Khloe Ma, Taiwanese entrepreneur and founder of KOI Thé, turned a local bubble tea shop into a global beverage brand. Today, KOI has over 600 outlets in 15 countries, serving signature drinks that blend tradition with modern flair.

• Her focus: Creating premium, authentic experiences while bridging cultures and inspiring global growth through tea.

Her influence goes beyond beverages: She modernised tea culture, built a global following, and inspired a new wave of premium Asian F&B brands. In 2025, she was named one of Forbes China’s Top 100 Most Influential Chinese for her impact on the industry.

THE ASIABITS PODCAST

HIGHLIGHTS 

🥃 Diageo weighs China asset options: Diageo is reviewing its China operations, including a possible sale of its majority stake in Sichuan Swellfun, as it streamlines its portfolio amid weaker demand. Working with Goldman Sachs and UBS, the review reflects rising competition from local players and weaker alcohol consumption in China. Any decision remains preliminary, but the move follows Diageo’s broader pullback, including its agreed sale of East African Breweries to Japan’s Asahi.

👕 Fast Retailing tops ¥20 trillion market cap milestone: Fast Retailing became the first Japanese retailer to surpass a ¥20 trillion ($126bn) market capitalisation, driven by stronger-than-expected overseas growth at its Uniqlo brand. Sales surged in Europe and North America, while China returned to growth, prompting the group to raise its profit forecast. Analysts say Uniqlo’s global brand momentum is exceeding expectations, though some warn the stock’s valuation is looking stretched.

💾 SK Hynix invests $16.6bn to expand AI chip capacity: The Korean memory giant will spend 19 trillion won on a new advanced chip packaging facility in Cheongju, as booming AI demand tightens global memory supply. The plant, due for completion in 2027, will expand production of high-bandwidth memory used in Nvidia’s AI processors, reinforcing SK Hynix’s lead as memory becomes a key bottleneck in AI infrastructure.

COUNTRY READS

🇯🇵 Japan’s chocolate makers seek new cocoa sources and alternative recipes as supplies tighten and prices rise. More on this.

🇰🇷 Korea Zinc expands in the U.S., recycling magnets to produce rare earths and secure supply chains. More on this.

🇻🇳 Vietnam establishes a new international financial center and seeks Singapore’s guidance to boost cooperation. More on this.

✅ Transform rice paper into delicious rice noodles.
✅ Watch what life on a Japanese island with only 11 people is like.
✅ Find out who’s your Mr./Mrs. Right based on your Chinese zodiac.
✅ Feel inspired and listen to why Michael moved to China.  
✅ Get ready for your next China trip with our asiabits China Guide.*

^{*Buy now and receive 30% with the code: Asiabits88. Thank you :)}

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Have a sweet day! 🍰

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