Global Markets Brace as China’s Economy Slows, Coupang Faces Massive Data Breach, and Geopolitical Tensions Escalate

Economic Developments - China's economy is showing further signs of weakness, with the official manufacturing PMI at 49.2, indicating eight consecutive months of contraction, while the non-manufacturing PMI fell to 49.5, marking its first contraction in nearly three years [3][7] - The persistent economic slump in China is attributed to a prolonged real estate crisis, domestic price competition, and global trade turbulence, which may impact global supply chains and commodity markets [3][7] Cybersecurity Incident - Coupang, South Korea's e-commerce leader, confirmed a data breach affecting approximately 33.7 million customer accounts, marking it as potentially the largest hack in South Korea's history [4][7] - The compromised data includes personal information such as names, email addresses, and shipping addresses, while payment details remain secure [4] Geopolitical Tensions - Rising tensions between Japan and China have led to the cancellation of the only direct flight from Ibaraki Airport to China, affecting tourism and local businesses [5][7] - Chinese airlines are reducing services to Japan, and travel warnings have been issued, resulting in a significant drop in Chinese tourist bookings [5] Banking Sector Scrutiny - Italy's Treasury is defending its actions regarding Monte dei Paschi di Siena amid a judicial probe concerning the legality and transparency of share placements with key investors [6][8] - The ongoing inquiry could impact investor confidence in the Italian banking sector [8] Market Activity - Despite regional uncertainties, Hong Kong's equity capital markets are showing robust activity, with Morgan Stanley and Goldman Sachs playing key roles in the IPO market [9] - Hong Kong ranked first globally in IPO funds raised for the first half of 2025, with proceeds reaching US$14.1 billion, reflecting improved investor sentiment and supportive policies [9]