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December 1, 2010
HK IPOs roll on, US$2.8b deals launched - Asian initial public offerings had a strong start to the week, with two deals worth US$2.8 billion priced in Hong Kong on Monday, as issuers make a last minute push to raise funds before markets close for year-end holidays in about two weeks. Asian issuers have largely shrugged off the Korean tensions and Ireland’s debt crisis, emboldened by continued strong fund inflows into the region. Chongqing Rural Commercial Bank, which will trade under the listing code 3618, set a price range of HK$4.50-6.00 per share for its Hong Kong IPO, aiming to raise up to HK$12 billion (US$1.5 billion), according to a term sheet seen by Reuters. Huaneng Renewables Corporation priced its’ Hong Kong IPO at HK$2.98-3.98 per share to raise up to US$1.3 billion, according to its term sheet seen by Reuters. Asia has dominated the world IPO market this year, accounting for 62 per cent of the US$241.2 billion raised through globally, according to Thomson Reuters data. Hong Kong’s stock exchange has been an IPO hot bed, raising about US$48 billion so far this year. Chongqing Rural Commercial Bank planned to issue 2 billion shares, the term sheet said. Morgan Stanley and Nomura Holdings are handling the sale. Huaneng Renewables plans to issue 2.486 billion shares, the term sheet said. Morgan Stanley is the sole global coordinator.
More Bank of China (Hong Kong) branches will be authorized to collect subscription monies and process applications for the Bank of China (3988) H-share rights issue. Processing counters at seven more branches will open today, in addition to the 20 that are currently collecting applications, BOCHK corporate banking and financial institutions deputy general manager Chan Man said. "We may add eight to 35 branches to handle rights issue applications when needed," he said. The inquiries and form submission take 15 to 20 minutes on average. BOCHK got 145,000 applications for the rights issue, of which 89,000 are provisional allotment letters and 56,000 excess application forms, as of Saturday. Most mistakes in the application forms related to the payee name, as the payee accounts for provisional allotment letters and excess application forms are different. To help make filling in forms easier, the branches offer seals of the account names to shareholders. In the 10 days between November 17 and 27, the deal's registrar Computershare Hong Kong Investor Services received over 20,000 inquiries about the rights issue, the registrar's managing director Pamela Chung Kong-hung said. About 70 percent of BOC shareholders are expected to take up the rights, and half of them have already submitted applications, Chan said. The subscription closes on Friday. The rights issue of Industrial and Commercial Bank of China (1398) kicks off tomorrow.
Singapore's pro-trade agency International Enterprise (IE) Singapore on Monday opened its 10th Overseas Center (OC) in China's Hubei province. Based in Hubei's capital city Wuhan, the new OC will focus efforts on Central China, in particular Hubei, Hunan and Jiangxi provinces. The center will bring IE Singapore and Singapore Economic Development Board under one roof to facilitate trade and investment activities. It will assist Singapore-based companies to explore business collaborations and opportunities with the Chinese enterprises, help increase in-market knowledge of these companies as well as to build networks with the local governments and businesses. It will assist Chinese companies to explore international operations from Singapore, and help increase the companies' familiarity of the international marketplace. "The establishment of the Singapore Center in Wuhan is timely," said Sam Tan, Singapore's Senior Parliamentary Secretary for Trade & Industry, and Information, Communications & the Arts, "Singapore- based companies have the relevant expertise and experience to share and contribute to the developing needs of Central China in various industries," he added. In 2009, there were a cumulative number of 287 Singapore projects in Hubei with cumulative actual investments reaching 770 million U.S. dollars. Singapore's actual foreign direct investments into Hubei amounted to 138 million U.S. dollars. IE Singapore currently has Overseas Centers located in China's Beijing, Chengdu, Chongqing, Dalian, Guangzhou, Hong Kong, Qingdao, Shanghai and Xi'an.
November 30, 2010
Liberals to back Tien despite rift - The Liberal Party will continue to support Michael Tien Puk-sun despite his break with the organisation almost two weeks ago, party elders said yesterday.
November 29, 2010
Seventeen cooked food stall operators were cleared yesterday of colluding in a stall auction. Five judges at the Court of Final Appeal rejected a plea by the authorities, which won their case at the first trial, but lost at the appeal court, with reasons to be handed down later. Neither the Independent Commission Against Corruption nor the Department of Justice would comment on the decision. The ICAC said it respects the court ruling, while a department spokeswoman said it will await the reasons for the judgment before commenting. Nineteen stall operators were accused of conspiracy to defraud after holding two meetings before a restricted food stall auction at Tai Po in 2004. They were asked by the Food and Environmental Hygiene Department to move from the Old Market to the newly built Tai Po Hui Market, and given priority to take part in the restricted auction. During the meetings, the operators pre-allotted the stalls among themselves, and at the later auction, the stalls were sold at the upset - or minimum - prices, which had been fixed at 75 percent of the market rent. The authorities claimed the operators had dishonestly made the auction appear competitive. Government lawyers said a loss ensued because similar stalls were sold at prices 180 percent higher than the upset price. Also, the operators were warned of possible prosecution if they made bids dishonestly. But the operators' lawyers argued that the agreement not to compete in the auction did not involve dishonesty because it was a commercial agreement in an open market. Oil companies were given as an example of a cartel. Senior counsel Martin Lee Chu-ming said that although the agreement affected public policy, it did not involve misrepresentation and fraud. The operators had been jailed from six months to one year, but an appeal court overturned the convictions of 17 of them. One of the original 19-member group died, while another pleaded guilty. One of the 17, Cheung Chi- keung, said the government should not have required the stall operators to bid in the first place.
November 28, 2010
Brazilian miner Vale SA has received approval to list on the Hong Kong stock exchange; a source told reporters on Thursday, bringing the global miner closer to its biggest customer, China. Hong Kong Stock Exchanges and Clearing approved Vale’s application at a scheduled meeting and gave permission for Vale’s depository receipts to be traded on Hong Kong stock exchange, the source said. Vale, which will become the first depository receipt to trade in Hong Kong, is not raising any money through the listing. Vale’s listing is a coup for the exchange and some bankers expect the approval to pave way for more global companies to issue depository receipts in Hong Kong and access the deep pool of liquidity available in Asia. “The listing is scheduled for early December,” said the source, who was not authorised to speak about the matter as the decision was not public yet. A Vale spokeswoman said the company had received no official confirmation of the listing approval in Hong Kong and could not comment on the issue. A Hong Kong stock exchange spokesman declined to comment. An increasing number of global companies are seeking to list in Hong Kong, which is seen as a gateway to China. A Hong Kong listing would provide Vale direct exposure to Asian capital markets. China, the world’s biggest consumer of iron ore, accounts for more than a third of Vale’s revenues. Hong Kong has been a hotbed for IPOs this year, with US$48.7 billion raised through initial public offerings. Some of the high profile names that were admitted to the Hong Kong stock exchange this year include, Russian aluminium company Rusal and skin care products retailer L’Occitane. J.P. Morgan is the sole sponsor for Vale’s Hong Kong Depository Receipts (HDRs) and the bank will arrange for some Vale shares listed on overseas exchanges to be transferred to Hong Kong in the form of receipts. Vale’s shares and depository receipts are already traded in New York, Sao Paulo, Paris Euronext among others. A Hong Kong listing will enable its shares to be traded across more time zones. Vale’s bigger rivals BHP Billiton and Rio Tinto are listed on Australia stock exchange.
Chinese foreign minister met with ambassador of the DPRK to China, and held phone talks with U.S. Secretary of State and ROK foreign minister Friday on the situation of the Korean Peninsula.
China takes record number of gold medals - Feng Lanlan's karate title on Friday gave China its 184th gold medal at Guangzhou, ensuring the record for most golds at an Asian Games and China on course to reach 200. North Korea said on Friday that impending military exercises by the South and the United States are pushing the region towards war, days after it shelled an island in the South.
Investors snapped up a shopping mall in Beijing for 6 billion yuan (HK$6.99 billion), reflecting strong demand for retail property and setting a new record for commercial real estate in the capital. Le Mall, developed by local company Huaxilemao, had been sold to Changchun-based Hong Kong Charter Group, a spokeswoman for Hong Kong Charter said yesterday. "Our businesses used to focus in the three northeastern provinces [Heilongjiang, Jilin and Liaoning]," she said. "Le Mall is our first project in Beijing." The previous record price for retail property in Beijing was Swire Properties' partnership with property fund Gateway Capital to buy a retail-hotel project in Sanlitun district for 4.8 billion yuan in 2007. The project has a retail floor area of 115,000 square metres and a hotel floor area of about 56,000 sqmetres. Although the project is in a better location, its development scale is 40.7 per cent smaller than that of Le Mall. "Le Mall, located in Haidan district, west of Beijing, is one of the largest shopping malls in the capital ... There is no [other high-end] development in the area," a retail agency in Beijing said. "The buyer is well known in developing luxury shopping malls in the three northeastern provinces. It has developed three shopping malls in Changchun, Shenyang and Harbin. It also has strong connections with global luxury brands. That's why it is willing to pay such a big amount for the mall." Le Mall is a seven-storey retail and office complex with a total gross floor area of 290,000 sqmetres. Tenants include the Jackie Chan Cinema, Pacific Department Store and luxury brand Burberry. Property agents estimate the mall can offer a gross rental yield of about 10 per cent. Gross yields in Hong Kong are 5 to 6 per cent. Alvin Yip, of property consultancy DTZ, said the sale was not a sign of a property bubble, citing strong demand.
November 27, 2010
The Census and Statistics Department of Hong Kong announced Thursday that the values of Hong Kong's total exports and imports of goods in October increased by 13.9 percent and 14 percent respectively year-on-year. In October, the value of total exports of goods increased by 13. 9 percent over a year earlier to 274.2 billion HK dollars (about 35.34 billion U.S. dollars), after a year-on-year increase of 24.1 percent in September. Within this total, the value of re-exports increased by 13.9 percent to 268.2 billion HK dollars in October, while the value of domestic exports increased by 11.2 percent to 6 billion HK dollars. Concurrently, the value of imports of goods increased by 14 percent over a year earlier to 296.4 billion HK dollars in October, after a year-on-year increase of 19.5 percent in September. A visible trade deficit of 22.3 billion HK dollars, equivalent to 7.5 percent of the value of imports of goods, was recorded in October. (one U.S. dollar is equivalent to 7.759 HK dollars)
China's central bank warns of risk of credit card debt - Credit cards debt 180 days past the due repayment date stood at 7.92 billion yuan (1.19 billion U.S. dollars) by the end of the third quarter, up 8.5 percent from the second quarter, according to a statement released Thursday on the website of the People's Bank of China.
China's Dalian Port raised a lower-than-targeted US$857 million after pricing its Shanghai IPO in the middle of its indicated range on Thursday.
November 26, 2010
Public pressure from Hong Kong played a crucial role in yesterday's dramatic twist in the case of jailed melamine milk activist Zhao Lianhai , who will probably be released on medical parole, his supporters say. It is unprecedented for Beijing to release a mainland convict so soon following lobbying from Hong Kong. In an unusual move, Xinhua's Hong Kong branch said yesterday morning that a medical parole application from Zhao was being processed. Zhao, it added, had accepted the court verdict and not appealed. Just two weeks ago, upon hearing the sentence, Zhao was so furious that he took off his prison uniform and slammed it on the judge's desk. Medical parole is applicable to convicts who have served a third of their term. Since Zhao has been detained for a year, he could be released at any time. On Sunday, Xinhua's Hong Kong branch released another report that defended Zhao's controversial jailing on November 10, saying it was specifically addressing "concerns in Hong Kong". Beijing's Daxing District People's Court jailed Zhao for 2-1/2 years for "provoking quarrels and making trouble" by campaigning for the rights of victims of the melamine scandal, which made 300,000 children ill two years ago. Hong Kong politicians from across the spectrum, including pro-Beijing lawmakers and National People's Congress deputies, united in calling for Zhao's release. Li Fangping and Peng Jian , Zhao's former lawyers who were sacked unexpectedly on Monday, said they believed the public pressure from Hong Kong was a decisive factor in Beijing's decision to consider releasing Zhao. "Hong Kong is not only helping one person, but the conscience of China," Peng said. Hong Kong-based journalist Ching Cheong, who was jailed on the mainland for almost three years despite intense public pressure from Hong Kong, said the NPC deputies and members of the Chinese People's Political Consultative Conference (CPPCC) played a vital role. "As a result, Beijing had no choice but to make some concessions," he said. Legal scholar Ong Yew-kim said the decision was a face-saving move by Beijing, which was alarmed by the widespread outrage in Hong Kong but at the same time refused to correct its decision through legal procedures. "The latest development means Beijing has acknowledged that the court ruling was wrong but has no way to reverse it," Ong said. Li said he believed Zhao accepted the deal under immense pressure, but he would respect Zhao's decision. "It's a shame that the verdict cannot be changed through filing an appeal," he said. Xiang Qingyu , whose four-year-old son suffers kidney problems after drinking melamine-laced milk powder, respected Zhao's decision but said the campaign for victims' compensation would be hampered. Zhao's freedom is likely to be restricted after his release and he could easily go back to jail if he refuses to co-operate with the government, Li said. Zhao's wife, Li Xuemei, was under house arrest and denied permission to meet anyone yesterday. Calls to her home went unanswered. But yesterday's twist did manage to defuse the pressure from Hong Kong, with pro-Beijing politicians who had called for Zhao's release softening their stance. Lawmaker Ip Kwok-him of the Democratic Alliance for Betterment and Progress of Hong Kong, whose party joined the signature campaign, said it was "acceptable, although not the best solution". CPPCC delegate Lew Mon-hung, who planned to write to state leaders about Zhao's case, said after a meeting with the central government's liaison office yesterday that "at least the central government still cares about people's sentiments rather than being stubborn until the end". Other Beijing loyalists said medical parole was the most pragmatic solution. Democratic Party chairman Albert Ho Chun-yan said the central government was "masking its rude damage to the legal system with seemingly humane treatment". "Zhao was even deprived of his right to lodge an appeal," he said.
Some 1.2 million mainlanders will visit Taiwan in 2010, a spokesman for the Taiwan Affairs Office of the State Council forecast Wednesday. Spokeswoman Fan Liqing said the mainland-based Cross-Strait Tourism Exchange Association and the Taiwan Strait Tourism Association (TSTA) will meet in the near future to discuss issues concerning mainland tourists' individual visits to the island. "Both sides are researching the possibility of travel to the island by mainland individuals," Fan said at a news conference. Figures from the TSTA show 979,000 mainland tourists had visited Taiwan as of Nov. 4. Concerning the Typhoon Megi-triggered landslides in the island, Fan said the mainland and Taiwan spared no efforts in saving mainland tourists and managing the aftermath. The disaster on Oct. 21 left 20 mainland tourists dead on Taiwan's eastern coastal Suao-Hualien Highway. According to Fan, so far no data show that the tragedy has seriously effected tourism in the island. Fan expressed hope mainland-to-Taiwan tourism develops in a healthy and orderly manner, with related industries providing improved services for mainland tourists. In July 2008, Taiwan began to allow mainland tourists to visit the island on package tours for stays of up to 15 days.
November 25, 2010 Happy Thanksgivings
Family of the 58 victims killed in a high-rise fire last Monday in Jing'an District will receive 960,000 yuan (US$144,546) each in compensation and subsidy, a local official said this afternoon. And the 71 injured and other residents who suffered damages will also be compensated based on injuries and losses. "We will fully pay for their damages according to market prices," said Zhang Renliang, Jing'an District director. Zhang said residents can choose certain products on a list or can ask a third party to evaluate their properties and offer collected evidence for later compensation. Apart from the gutted building, two adjacent buildings whose residents are sheltered in nearby hotels are getting exterior cleaning and repair, but their residents can not move back until experts have finished an assessment, said Zhang.
November 24, 2010
In a dramatic twist, jailed tainted-milk activist Zhao Lianhai will be released on medical parole, Xinhua News Agency announced early today - just hours after he sacked his lawyers and forfeited his appeal.
November 23, 2010
StanChart hopes high for yuan bonds - Over 60 billion worth of yuan bonds could be issued in Hong Kong next year, and may even surpass local currency bonds in three years' time, Standard Chartered (Hong Kong)'s regional head of capital markets for Northeast Asia Tee Choon Hong said.
Global Dairy, a Heilongjiang-based formula milk producer, will invest HK$350.9 million to establish its first dairy farm to ensure stable supply and quality of raw milk. The dairy product manufacturer, which listed on the Hong Kong stock exchange in October, said the farm would be able to supply 45 to 50 per cent of the raw milk consumed by the company after it comes on stream at the end of next year. The company is one of many mainland dairy products makers, including Mengniu and Yili, that have been trying to strengthen the supply chain since a tainted-milk scandal rocked the industry in 2008. Global Dairy said the farm, on the outskirts of Wuchang city in Heilongjiang, will cover 333,000 square metres and be able to carry up to 10,000 cows. It is estimated to generate up to 42,000 tonnes of fresh milk and 20,000 tonnes of bio-organic fertiliser annually. "Building dairy farms is a missed lesson for all Chinese dairy companies," said Zhao Yu, chief executive of the company. In the the past, most dairy companies on the mainland relied heavily on private milk collection stations as their major source of raw milk, investing very little in building their own farms. In 2008, a wide range of dairy products made by local companies were found to contain the banned chemical melamine. At least six babies died and hundreds of thousands of others suffered from kidney stones and other diseases. Investigations revealed that some farmers and milk collection stations added the chemical to raw milk before selling the product to dairy companies. Major companies such as Mengniu, Yili and Bright Dairy vowed to build more self-run farms as well as expand the existing ones following the scandal. Modern Dairy, the largest milk supplier to Mengniu, will list in Hong Kong on Friday. The company, which runs 11 farms and has 72,000 cows, says the demand for high-quality raw milk in China is soaring. Global Dairy plans to acquire more land for dairy farms. It will also seek new ways to collaborate with local dairy farmers by managing their cattle and sharing profits with them. The company has three brands - Daqing, Emilon and C plus and its products are sold in 21 provinces.
Maoye in 405 million yuan expansion - Mainland department store operator Maoye International Holdings (0848) is on the expansion path, with a subsidiary buying into another department store and supermarket chain.
November 22, 2010
Personal bankruptcies fell to an almost 10-year low last month, according to the latest figures from the Official Receiver's Office. Bankruptcy petitions in October fell about 17 per cent to 584 from 704 in September. It was the lowest monthly figure since December 2000, when there were 573 petitions filed. Of the petitions last month, 41 were submitted by creditors - the lowest number since the 39 in June 2007. For the first 10 months of the year, the number of bankruptcy petitions totaled 7,717, down more than 44 per cent compared to the same period last year. There were 13,872 petitions between January and October last year and 15,784 for all of 2009. The Official Receiver's Office did not provide any analysis of the improvement. Government figures seem to suggest the Hong Kong economy has been recovering from the global financial crisis in 2008. During the economic downturn in 2002, the number of monthly personal bankruptcy petitions regularly rose to more than 2,000, compared to 780 for all of 1996 and 829 for all of 1997, when Hong Kong returned to Chinese rule. With the impact of the global financial crisis in late 2008, the number of personal bankruptcies rose again, peaking at 1,872 in March last year. The number fell to around 1,000 later in the year as the economy started picking up. Hong Kong's economy expanded 6.8 per cent in the third quarter from a year earlier. Last week, the government revised up its full-year gross domestic product forecast for 2010 to 6.5 per cent growth from a previous forecast of 5 per cent to 6 per cent.
The Mongolian government stunned the mining industry around the world with an announcement that it will revoke at least 254 mining licenses across the country on environmental grounds. The statement raises concerns over the future of the Mongolian mining sector which has become a hot investment story in Hong Kong due to the landlocked country's vast amount of untapped resources and its proximity to China. It has also highlighted the risks of investing in the immature democracy, which was part of the Soviet Union until 1991, said analysts. Mongolia's Minister of Minerals and Energy, Dashdorj Zorigt, told domestic media on Thursday: "To start with, 254 licences for gold mining will be cancelled." A spokesman for the government's foreign affairs department yesterday confirmed the reported comment was accurate. But he said the government would be unable to announce which miners were affected "until probably next week as the papers are only in draft form at the moment". Asian investors have been keen to buy stakes in Mongolian miners. There are nine companies on the Hong Kong Stock Exchange with major exposure to Mongolian assets and eight of these are in the mining industry. Hong Kong-based Iron Mining International, which owns Mongolia's biggest iron ore exporter and whose private equity backers include mainland sovereign wealth fund CIC and former Goldman Sachs investment banking supremo Fang Fenglei's Hopu Fund, is seeking to raise US$1 billion in a Hong Kong IPO. Graham Hancock, the World Bank's senior mining specialist in Hong Kong, said: "I think these [government] announcements demonstrate that despite all the hype about Mongolia's mineral potential and possible future as a major mining producer, there is significant risk. "Mongolia has a regulatory framework which is rapidly evolving and which has not yet matured. The evolutionary changes are causing disruption to exploration and mining and creating risks for investors." Coal miner Mongolia Mining Corp raised HK$5 billion in a Hong Kong IPO last month. Southgobi Energy, another coal miner, raised HK$2.7 billion in January. Southgobi chief executive Alexander Molyneux said his company's licences would not be revoked. A spokesperson for Mongolia Mining said that company's licences were also safe. Both companies' shares were unaffected by the news. But the announcement caused havoc for Mongolian miners listed outside Hong Kong. Toronto-listed Centerra Gold, which owns two deposits in Mongolia, plunged 7.3pc to C$16. 04 (HK$112.15) on Thursday. Yesterday it was down a further 1 per cent in early trading. Centerra said it could potentially lose four mining permits. But, it said, the deposits these permits covered were "not material" to earnings. Prophecy Resources, another Toronto-traded miner that owns coal deposits in Mongolia, fell 5.7 per cent by market close on Thursday. In early trading yesterday it was down further 6.9 per cent. Prophecy chairman John Lee said in an e-mailed response that his company was not affected by the ban. The Mongolian government spokesman added miners stripped of their licences would receive government compensation. He said licences were being revoked under a law passed in 2009 to protect Mongolia's forests and river basins.
Beijing is stepping up a crackdown on insider trading as rampant hot money flows into the roller-coaster stock market. The State Council expressed late on Thursday the government's determination to deepen its investigation of suspicious trades. The statement is likely to result in a withdrawal of some speculative funds from mainland exchanges. It was the first time the cabinet has publicly addressed the problem of insider trading. Analysts expect regulators now to unearth a series of scandals sooner rather than later. "The statement itself was symbolic rather than substantive," Kingsun Investment Management analyst Dai Ming said. "But it is a clear message to the big players: `Stop the nasty practices and behave yourself.'" The State Council also clarified the roles of the China Securities Regulatory Commission (CSRC) and four other authorities - the State-owned Assets Supervision and Administration Commission, the Ministry of Public Security, the Ministry of Supervision and the National Bureau of Corruption Prevention - in the fight against stock market irregularities. The statement is a sign that law enforcement departments, in addition to the CSRC, are deeply involved in the investigations, analysts said. The Shanghai Composite Index dropped 3.2 per cent this week, following a decline of 4.6 per cent last week. The falls followed a hefty gain of 20 per cent since late September. "Every time the authorities announced they would tighten oversight of market irregularities, bearish sentiment has set in," Dazhong Insurance fund manager Wu Kan said. "The statement could be read as a warning to investors that any wild rally now would be short-lived, since it would be against the government's will." The mainland market experienced a bull run between 1999 and 2001 before getting mired in a four-year bearish trend. In late 2000, a scandal involving the illegal practice of price rigging by fund managers was uncovered by Caijing magazine, resulting in a crisis of confidence. At that time, leading economist Wu Jinglian likened the stock market to a casino, warning retail investors of the risk in playing the market. CSRC chairman Shang Fulin is a strong advocate of weeding out market irregularities. The securities watchdog launched a high-profile national probe into financial institutions last year. The campaign has yet to pay dividends, however, since only a handful of unethical fund managers has been uncovered. Xinhua reported that the regulator was investigating 100 cases of suspicious trades in the first 10 months of this year, with insider trading suspected in 74 of them. Li Youhuan, a professor at the Guangdong Academy of Social Sciences and a researcher into fund flows, said the recent inflow of hot money was "unprecedented", as a strengthening yuan attracted speculative funds to the mainland's volatile stock market and its vulnerable real estate sector. "The bigger the funds are, the more likely they would collude with listed companies' executives and domestic fund managers to engage in insider trading," Dai said. "The money does the talking."
November 21, 2010
Executive Committee member of the Liberal Party Michael Tien Puk-sun said on Friday that after careful consideration he had resigned from the party because of idealogical differences. He said the recent Cafe de Coral (SEHK: 0341) wage dispute had triggered his decision as his views on the issue differed sharply from those of other Liberal Party members. Cafe de Coral - after the minimum wage law was passed in July – offered an hourly wage rise of between HK$2 and HK$3.50 to those on its staff earning between HK$22 and HK$25 per hour. However, to get the pay increase the company required its staff to forfeit their daily 45-minute paid meal break, which would equate to an overall cut in their net pay. After complaints from staff, public outrage and a planned boycott of the fast-food chain by various political, student, labour and religious groups, Café de Coral abandoned its plan to deprive staff of paid meal breaks. “I strongly disagreed with the profit-making [mentality] of Café de Coral – [aimed at] depriving its employees of benefits because of the minimum wage bill. So I supported the boycott.” he said. “But the lawmakers in our party, who represent functional constituencies, had no problem with what Café de Coral was doing. “After discussions with the party, we both agreed it was better for us to go our separate ways,” he said. Tien stressed that he was still enthusiastic about running in Legislative Council direct elections in 2012. Liberal Party chairwoman Miriam Lau Kin-yee said it was a pity Tien had left the party and she thanked him for his contribution. Tien had joined the pro-business party in 2008. He is a Hong Kong deputy of the National People’s Congress and chairman of garment retailer G2000. Tien is also the younger brother of former Liberal Party chairman and Tourism Board chairman James Tien Pei-chun.
Citigroup, along with China Asset Management, launched the "China Select Fund," which invests mainly in Chinese equities listed in China (A-share and B-share markets), Hong Kong, United States, Taiwan, Singapore and other countries. Electronic components distributor AV Concept Holdings (0595) booked a net profit of HK$37 million for the six months ended September 30, a rise of 2.48 percent year on year. But revenue fell 5.4 percent during the six months to HK$1.17 billion, as the firm spun off part of its business to form two joint ventures last year.
Air pollution in Beijing was so bad on Friday that the US embassy, which has been independently monitoring air quality, ran out of conventional adjectives to describe it, at one point saying it was "crazy bad." The embassy later deleted the phrase, saying it was an “incorrect” description and adding that it was working to revise the language to use when the air quality index goes above its highest point of 500, which means the air is considered hazardous for all people by US standards. The hazardous haze has forced schools to stop outdoor exercises, and health experts asked residents, especially those with respiratory problems, the elderly and children, to stay indoors. “We’ve cancelled 10 days worth of games since August,” said David Niven, chief operating officer of China Club Football, which runs extensive youth and adult football leagues in Beijing. “If the air is above 240 [on the air quality index], some of the schools will ask us to move football games indoors or cancel them altogether. Because of the bad air this year, we’ve had to cancel more games than ever before.” Health experts say that breathing polluted air can affect respiratory functions and worsen problems for those with asthma or allergies. Experts say Beijing’s frequently bad air has been even dirtier recently because a growing number of factories and villages on the outskirts of the city are burning coal for the winter and more than 1,200 new cars hit the roads each day. The capital underwent a massive cleanup in 2008 for the Olympic Games, such as planting thousands of acres of trees in and around the city, but has since allowed some factories to reopen and lifted some traffic restrictions, bringing pollution levels back up. “If the city’s planning was better, people from the outskirts wouldn’t have to commute for hours each day,” said Ma Jun, director of the Institute of Public and Environmental Affairs in Beijing. “Beijing needs to place more of a priority on the environment. The health of Beijing residents is no less important than the health of those athletes who were here for a few weeks.” “We can’t just expect wind, snow or rain to wipe out the pollution when it gets bad,” Ma added. “The city must take pollution more seriously and implement preventive measures.” When China’s air pollution index, which measures four major pollutants, is under 100, China considers it a “blue sky day.” According to the China Daily , Beijing experienced 285 blue sky days last year, compared to 274 in 2008. But in the first half of this year, Beijing saw 140 blue sky days, six less than the same period the previous year, it said.
The disgraced head of China's main nuclear energy company was jailed for life on Friday for accepting almost US$1 million in bribes in an anti-corruption crackdown.
November 20, 2010
Schools that receive HK$2.4 billion in government subsidies have been found spending the cash on items such as high- risk financial instruments and staff flats, according to the director of audit.
China's yuan is expected to be fully convertible during the next five years at the earliest, Lawrence Lau Juen-yee, chairman of China Investment Corporation's Hong Kong office, said.
November 19, 2010
The fugitive former managing partner of accountancy firm Grant Thornton Hong Kong, who vanished after allegedly fleecing tens of millions of dollars from people close to him, has been arrested in Spain. Gabriel Ricardo Dias-Azedo - a former president of Club Lusitano, one of the most respected private clubs in Hong Kong - disappeared in September last year along with more than HK$91 million he allegedly stole from friends and business partners. He was arrested in the city of Salamanca, 200 kilometres west of Madrid, people with knowledge of his detention have confirmed.
Macau Chief Executive Dr Fernando Chui Sai-on yesterday delivered a policy address full of crowd-pleasing giveaways worth 500 million patacas. The bumper giveaways - a continuation of past practice by the administration - were announced after Premier Wen Jiabao's call on the government to take care of the people, especially the poor. But critics said Chui failed to address what Wen had said most needed to be done - speeding up public housing construction. There was no mention of political reform. Every Macau resident who is in the central provident fund will receive an injection of 6,000 patacas to their account. Chui said the one-off benefit was needed to help people fight inflation. In his previous policy address, he put 10,000 patacas into residents' provident accounts. In addition, Chui continues to hand out cash bonuses - first instituted by his predecessor, Edmund Ho Hau-wah, in 2008. HSBC Holdings (SEHK: 0005) is raising the basic pay of many senior investment bankers by as much as double, a person familiar with the matter said on Tuesday. The bank follows several European rivals to significantly increase investment bankers' salaries this year as a clampdown on bonuses has put pressure on them to cut variable pay. HSBC, Europe’s biggest bank, will award the pay increases to staff across its global banking and markets (GBM) operations in leading financial centres including London, Hong Kong and New York, the source said. Some other senior staff would also be affected.
Japan said on Wednesday it will send an envoy to attend a Nobel Peace Prize ceremony honouring dissident Liu Xiaobo, a move that could increase tensions between Tokyo and Beijing.
China's share of the world airliner fleet will grow from the current 8 per cent to 14 per cent over the next 20 years. This means the nation will need 4,912 planes by 2029, compared to last year's 1,465, according to the country's leading aircraft maker. In its first global market report, Commercial Aircraft Corporation of China (Comac) said that more than 30,000 new aircraft, costing US$3.4 trillion, would be needed worldwide to cope with increasing air travel and to replace planes over the next 20 years, when the world's commercial passenger fleet would double from more than 17,000 aircraft now. Comac released its forecast an hour after announcing that six companies had signed letters of intent to buy its C919 aircraft. The narrow-bodied C919, which will seat more than 150 passengers, is not expected to make its first flight until 2014. China has sent a helicopter-equipped fisheries vessel to patrol the disputed East China Sea, state media reported yesterday, just as the two sides appeared to be cooling sharp tensions over the area. The fisheries patrol vessel is China's first to be equipped with helicopters, and left the southern city of Guangzhou for the East China Sea for a mission that could last 20 days, Xinhua said. China has sent vessels to the area on previous occasions, state media reported, amid a row with Japan over a shipping collision in September that severely tested what had been a marked thaw in relations between the regional rivals. The latest ship, the 2,580-tonne Yuzheng 310, is not China's largest fisheries patrol vessel but is "the fastest and has the most sophisticated technologies," Xinhua quoted an official as saying. Separately, Li Jianhua, director of the Ministry of Agriculture's fisheries bureau, was quoted calling the ship a milestone for China's marine law enforcement patrol work, as the vessel can combine air and sea surveillance. Li said China planned to build more such vessels, according to Xinhua. Video capturing scenes of a Chinese fishing boat apparently ramming Japanese patrol ships amid wailing sirens and orders from the patrol boats to stop, popped up on YouTube about 10 days ago. The Japanese government confirmed the footage as authentic though has not released any of its own to avoid further inflaming tensions. A Japanese coast guard officer said he leaked the video to YouTube because he wanted to show the world what happened. The 43-year-old officer released a statement yesterday saying he is still convinced he was right to leak footage of the collision that occurred near the disputed Diaoyu Islands in the East China Seat, though he says it may not have been acceptable as a public servant. "I just wanted as many people as possible to see the events that are occurring in Japanese seas so that each person can think about it, make a judgment and take action," he said in a statement released by his lawyer. Police have questioned the coast guard official, and investigators are deciding whether to press charges Investigators reportedly have decided not to arrest him as he is unlikely to try to destroy evidence or escape. The collision sparked a series of protests and snubs from Beijing and Japanese accusations that China was taking retaliatory economic action. On the sidelines of a regional summit in Japan at the weekend, the two sides appeared to take a step past the dispute when President Hu Jintao held a meeting with Japanese Prime Minister Naoto Kan. Hu promised that China was committed to being a good neighbor, as concerns rise over its assertive behavior in the Asia-Pacific.
November 18, 2010
Mainland police asked the Hong Kong government to confiscate more than HK$60 million from a woman whose boyfriend was convicted of manufacturing and trafficking dangerous drugs on the mainland. Acting on the request of mainland authorities, Secretary for Justice Wong Yan-lung yesterday applied in the Court of First Instance for an external confiscation order to seize the sum from Yam Chim-kwan, on the belief that the money was proceeds from drug-related offences for which Yam's boyfriend, Thao Phoumy Chan, was jailed for life on the mainland in 2008. Horace Wong Yuk-lun, SC, for the Department of Justice, said mainland authorities were seeking to confiscate the money under two mainland laws which empowered them to seize the sum as a punitive fine and also as proceeds from criminal activities. Judge Andrew Cheung Kui-nung, however, said he intended to put the application on hold until the conclusion of a 12-day trial scheduled for the District Court next month in which Yam is expected to face five charges of money laundering over the funds in question in the confiscation order, which she allegedly laundered using three bank accounts. Cheung said he wanted to avoid making any prejudgment on the confiscation order in case Yam is acquitted of the five charges. He adjourned the hearing until after the verdict in Yam's case. The hearing is expected to last for four days.
China is confident that Myanmar will continue its peace process and ethnic reconciliation, Beijing said on Tuesday in the first official reaction to the release of Aung San Suu Kyi. China's Ministry of Housing and Urban Rural Development announced Monday that purchases of housing by overseas organizations and individuals in the country would be capped or restricted, a move widely seen as combating speculative money from overseas that might flow into the property market.
November 17, 2010
A 10-year contract to transform the former Police Married Quarters Site on Hollywood Road has been awarded to the Musketeers Education & Culture Charitable Foundation, Secretary for Development Carrie Lam Cheng Yuet-ngor said on Monday. Lam said the project would retain the two quarter blocks and supporting construction, while there would be architectural improvements - such as a proposed multi-purposed hall and extended canopy. She said the project would provide about 2,000 square metres of outdoor space for public leisure purposes and other public facilities, including an exhibition hall, a heritage display hall and a restaurant. About HK$420 million has been earmarked for the project. The Architectural Services Department will be responsible for renovation of the quarters. Musketeers Foundation will bear the cost of remaining renovations and repair work. The work is expected to start in 2012, and the project is expected to be completed in 2014. Commissioned in 1951, the building was the first police quarters to provide accommodation for married junior police officers. It has been vacant since 2000.
November 16, 2010
Chief Executive Donald Tsang Yam-kuen yesterday launched a fresh appeal for justice over the Manila hostage deaths in his first meeting with Philippine President Benigno Aquino since the August tragedy. Officials on both sides said the conversation on the sidelines of the Apec summit in Yokohama, Japan, was cordial but frank. Tsang pushed for results and Aquino tried to find ways of turning the page in his fledgling relations with both Beijing and Hong Kong leaders. "We are anxious to see justice done in the investigation work undertaken by the Philippine authorities and the actions taken against the people involved," Tsang said in a statement after the pair spoke for about 10 minutes. "We hope the Philippine government will fulfil its pledge to be accountable to victims." On August 23, eight Hong Kong tourists were killed and seven others injured aboard a tourist bus hijacked by sacked police officer Rolando Mendoza amid repeatedly bungled rescue attempts - all played out live on international television. Tsang's statement noted Hong Kong's earlier disappointment at Aquino's review of an investigation report and warned that Hong Kong would be watching closely for the results of a further review into emergency procedures for handling any similar incidents. Officials said, however, that Tsang did not repeat specific concerns over Aquino's decision to take only administrative sanctions - not criminal action - against four police officers and two senior administrators whose incompetence and neglect allowed the 11-hour hostage stand-off to spiral out of control. "The time was brief but the conversation was frank ... all key points were made," one Hong Kong official said. Aquino's decision came despite an independent panel demanding criminal investigation or prosecution against 10 government and police officials, two journalists and three broadcasters. Philippine officials said any change to that decision was unlikely. "At least we know action will be taken if it is done administratively ... the problem with criminal action is that what happens if they are found not guilty? No one wants to see that," one official close to Aquino said. While Aquino said after yesterday's meeting that "both sides want to put this behind us", his officials acknowledged that considerable work was still needed. While Aquino and Tsang were speaking, President Hu Jintao approached them and, according to a Filipino official, appeared happy that Tsang and Aquino were mending fences. Aquino "believes it was a big step towards settling lingering issues between the Philippines and Hong Kong", the official said. Aquino sought a formal bilateral session with Hu this weekend. But by yesterday no meeting had been fixed. "It is our intention to fully account for everything that has been done since, from the investigations to the improvements to our tourist police and special forces procedures," the Aquino official said.
FOX television network plans to launch a Hong Kong-based Asian version of its long-running and popular crime-fighting reality show, America's Most Wanted. The program in the United States has helped capture 1,130 fugitives and recover 61 abducted children over the past 22 years. Show host and executive producer John Walsh, whose son was murdered in 1981, told The Standard he plans to assist local and mainland law enforcement bodies by producing Asia's Most Wanted. "Child trafficking has become a global concern. When filming our latest series, I went undercover in Cambodia and saw how terribly easy it is to exploit a child there by paying just a few hundred US dollars," Walsh said. "We have helped capture dangerous fugitives in Britain, Germany and Japan. The next plan is to make the show truly global." Walsh said he has been negotiating with Star- TV, the Asian TV service owned by media tycoon Rupert Murdoch, to produce and distribute the show. No timetable has been set. He said Hong Kong, with its cosmopolitan character and easy access to the mainland, where child smuggling is a serious problem, is the "perfect place" from which to launch the project. The Asian version will follow a format similar to the US show that attracts six million viewers weekly. "Every week, we discuss with the police to pick up five to six cases, including violence, abduction and murder cases, and film a re-enactment," Walsh said. "When it is on air every Saturday night, I appeal to the audience to provide tips through a toll- free line or our website. "TV is a powerful tool to give people ways to do the right things." The show does not involve any investigation, he said, adding the police or Interpol will "go after the bad guys." Walsh recalled Hong Kong played a part in the show's 2007 international manhunt for American sex offender and child pornographer Kenneth John Freeman. After the story was aired, clues flew in hinting that Freeman had fled to Shanghai after being released on bond in 2005. Since America has no extradition treaty with the mainland, US police worked with the airline to direct the flight of his girlfriend - who intended to meet him in the mainland - to Hong Kong. "When Freeman arrived here by bus to pick up his girlfriend, he was caught by local police." Walsh, 64, was honored by four US presidents for his dedication to child protection after his son Adam was abducted and murdered 29 years ago. In 2006, on the 25th anniversary of Adam's murder, legislation entitled the Adam Walsh Child Protection and Safety Act was signed into law by then- president George W Bush.
Bosses cough up $167m in MPF dues -
The Mandatory Provident Fund Schemes Authority has, in the last financial year,
realized HK$167 million in outstanding contributions from employers who failed
to pay to MPF accounts on time.
Data from the SCDRC indicates that China's urbanization rate hit 46 percent by the end of 2009, and will reach 63.6 percent by 2030, with the urban population standing at 930 million.
November 15, 2010
Hong Kong's economy remained robust in the third quarter, with gross domestic product growth stronger than expected at 6.8 per cent, but economists are warning of a rising risk of inflation and an asset-market bubble. The encouraging recovery has prompted the government to revise its full-year GDP growth forecast to 6.5 per cent from between 5 per cent and 6 per cent predicted earlier. On a quarterly basis, GDP rose 0.7 per cent, the sixth consecutive quarter of growth. This was fuelled by a strong rise in exports, which increased 20.8 per cent over a year ago, and a 5.7 per cent rise in private consumption due to improving incomes and job prospects. Thanks to rosy Asian economies, total exports of goods increased by more than one-fifth. "Overall, the GDP figures are encouraging," government economist Helen Chan said yesterday. "But risks are still with us.
Dalian Port has slashed the maximum size of its A-share issue from 2.4 billion A shares to 1.5 billion A shares for its Shanghai initial public offering.
November 14, 2010
No apology, but church regrets Li Ka-shing 'devil' jibe - The Catholic Church yesterday expressed "regret for the displeasure caused to Mr Li Ka-shing" by a priest who likened the tycoon to the devil, but it stopped short of apologizing.
Hong Kong may need to build at least five incinerators to deal with solid waste, Chief Executive Donald Tsang Yam- kuen believes. Speaking in Tokyo yesterday, Tsang said he saw how Japan is able to integrate incinerators into the community. "The one I have just visited is in the middle of a high-class residential area, next to a river and a major transit point where there is an annual throughput of two million people," he said. "But when you go into the facility, you don't see any smoke. No odor, no noise, and it's part of the community." Japanese experts told him the SAR would need at least one plant on Hong Kong Island, two in Kowloon and two in the New Territories. Tsang was speaking after visiting the Tamagawa Incineration Plant, which can handle 300 tonnes of waste a day. Efforts were made to design the buildings and the chimney at the plant to harmonize with the environment. The bunker can store about 1,200 tons of refuse. Using modern technology, the plant is able to reduce the volume of waste it receives by 90 percent. "We should study and learn lots from Japan's experience on solid waste, which will inspire Hong Kong on how garbage can be dealt with in a more effective, cleaner and more sustainable way," Tsang said. Hong Kong generates about 18,000 tonnes of waste a day, half of which will be recycled and another half disposed of in landfills. "We must deal with the problem of overflowing landfills with full consideration." Tsang has said incineration might be preferable to landfill, after vowing not to press ahead with a plan to expand a landfill at the expense of a country park in the New Territories. He made the pledge last month after lawmakers overwhelmingly passed a controversial motion repealing his executive order to expand the Tseung Kwan O landfill into the Clear Water Bay Country Park by five hectares.
Shanghai stocks plunged 5.2 per cent suffered their biggest fall in 14 months as investors scrambled to bank profits before any new monetary tightening measures were introduced.
November 13, 2010
Appliances giant Gome on Thursday said it has a signed a new agreement with a firm controlled by its jailed founder, a move that could end the bitter feud in the company.
Japan's military may form a new unit to monitor Chinese naval operations, a move to counter what many Japanese strategists see as an increasingly aggressive stance by Beijing in the East China Sea. The unit would consist of about 200 troops based on remote Yonaguni Island, which is on Japan’s western fringe near Taiwan, and would primarily be tasked with radar monitoring of Chinese naval operations in the area, according to a report in the Yomiuri newspaper. The report quoted unnamed defence ministry officials as saying a budget for the unit would be formally submitted soon. Ministry officials contacted by The Associated Press on Thursday said they could not comment on specifics because the plan was still under discussion. The ministry has confirmed, however, that it is considering bolstering military monitoring capabilities in the country’s southwestern islands. Tokyo is deeply concerned over the growth of the Chinese navy and its posture in the East China Sea, where the two countries have conflicting territorial claims. Relations between Beijing and Tokyo have soured recently because of an incident in which a Chinese trawler collided with two Japanese coast guard patrol ships in waters near disputed islands called the Diaoyu or Diaoyu in Chinese and Senkaku in Japanese. The islands are controlled by Japan but also claimed by China. Located 190 kilometres east of Taiwan, the islands are surrounded by rich fishing grounds and are regularly occupied by nationalists from both sides. After the September 7 collision, China demanded an apology and compensation, but Tokyo countered by demanding that Beijing pay for damage to the patrol boats. Beijing cut off ministerial-level contacts with Japan, repeatedly called in Tokyo’s ambassador to complain, and postponed talks on the joint development of undersea natural gas fields. China also quietly halted exports to Japan of rare earth elements, which are essential for making high-tech products. Japan’s Prime Minister Naoto Kan said on Monday he will discuss the dispute if he meets with President Hu Jintao at the Asia-Pacific Economic Co-operation summit, which Japan is hosting this weekend. Hu is to attend the summit, but Beijing and Tokyo have yet to confirm that Kan and Hu will hold talks. China has already rejected an offer by US Secretary of State Hillary Rodham Clinton to broker three-way talks with Japan over the islands. Clinton said Washington has no position on which country holds ultimate sovereignty over the islands. A group of 17 Chinese sailors returned home safely after being held hostage more than four months by Somali pirates who gave them only one meal of boiled potatoes per day. The Chinese government has warned that feverish urban expansion is threatening farmland and forcing farmers off their land as local governments raze villages to create new towns and cities. The warning from the State Council, or government cabinet, late on Wednesday showed the difficult balance China faces in pushing urbanisation while saving farmland for food security. It came after a meeting chaired by Premier Wen Jiabao that found “problems demanding urgent correction” as local governments seek to expand towns and small cities, according to the central government website. “Halt mass demolitions and construction that violates farmers’ wishes, as well as the reckless construction of high buildings,” said the official summary of the meeting. China is seeking to speed up urbanisation while preserving arable land above a “red line” of 120 million hectares. The Ministry of Land and Resources has said China is already brushing that limit, with 121.7 million hectares available for farming at the end of last year. Between now and 2040, China’s urban population will expand by up to 400 million, according to Han Jun, a rural policy expert who advises the government. That would mean towns and cities absorbing around 15 million new residents every year. Forced farmland requisition, often for what farmers say is inadequate compensation, is the main source of protest and unrest in the countryside, home to over 700 million people. In many areas, including eastern Jiangsu and Shandong provinces, officials have tried to claim more land for urban growth and industry by encouraging or forcing villagers to move into more concentrated settlements. The cabinet said local governments were abusing pilot schemes intended to promote better co-ordinated urban-rural development and using them to grab land from villagers. “A small number of areas are obsessively pursuing expanded urban building land-use targets,” the official summary said. “Some areas go against the wishes of farmers in carrying out forced demolitions and construction, violating their rights and interests.” The meeting warned local officials to “adhere to the strictest arable land protection and preservation system”.
November 12, 2010
November 11, 2010
The government has slashed its proposed budget for the bid to host the 2023 Asian Games by more than half to less than HK$6 billion. The move, which could scupper Hong Kong's chances of staging the Games, has failed to satisfy critics on both sides. Supporters of the original bid question how such a huge cut was possible and say the new budget is sure to have an effect on Hong Kong's chances of being awarded the event. Others believe that the heavily pared-back bid is still too high. Yesterday, the venue subcommittee of the Asian Games Provisional Bid Committee offered to cut the direct cost of hosting the Games from the original estimate of HK$13.7 billion to HK$14.5 billion, to less than HK$6 billion. That would mean reducing expenditure by about HK$8.5 billion - money meant for expanding and upgrading planned indoor sports centres in Tai Po, Yuen Long and Sha Tin. "The government is keenly aware of the community's concern at the potential costs involved in hosting the Asian Games. We therefore welcome the option ... that would reduce by more than half the direct cost of hosting the games," Secretary for Home Affairs Tsang Tak-sing said. The minister said the option put forward by the sub-committee had given the public "an opportunity to consider from a fresh perspective". The HK$6 billion estimate does not include more than HK$30.17 billion set aside for building sporting facilities that the government said would go ahead whether or not Hong Kong hosts the Games, plus an unknown sum for an athletes' village.
The Executive Council yesterday approved a minimum wage of HK$28 an hour, but an official announcement is not expected for a day or two. The wage level, proposed by the Provisional Minimum Wage Commission, was subjected to in- depth discussions and its impact on the economy was fully scrutinized at the meeting, sources said. Chief Executive Donald Tsang Yam-kuen took into consideration the concerns of unions, the need for better protection of workers as well as calls from the business sector to set a benchmark that was more moderate, before making a final decision. The government is set to unveil the rate this week. The legislative process will be carried out in the coming months before the statutory level is put into effect in the first half of next year. Tsang yesterday refused to say whether a final call on the contentious figure has been made. "We have worked hard on the legislation of a minimum wage to better protect our lower-income working class." The delay in announcing the minimum wage rate has puzzled many in political circles and unionists. "I am very eager to know what has been decided," legislator Wong Kwok-hing of the Hong Kong Federation of Trade Unions said. "I don't think there is a problem with the wage level. They are just not announcing it," said another legislator, Lee Cheuk-yan of the Hong Kong Confederation of Trade Unions. A person close to the chief executive told The Standard: "If there is nothing today. Wait until tomorrow." A source said Tsang was holding back on the official announcement, partly because the administration wanted to make sure all things are in place to ensure the smooth implementation of the landmark policy. In addition, Tsang is keen to know who leaked the proposed wage level during the lobbying process - especially since it is lower than many developed countries with a GDP similar to Hong Kong. He also said "insults and abuse" have been posted on his new Facebook page and admitted they may be signs of the frustration that the government causes on a daily basis. He pledged to make adjustments whenever possible.
Hong Kong Professor Vivian Wing-Wah YAM was announced among five laureates of 2011 L'Oral-UNESCO Women Scientist Awards, for her work on light-emitting materials and innovative ways of capturing solar energy, the Paris-based UNESCO said on Tuesday. Born in Hong Kong, Vivian obtained her PhD at the University of Hong Kong and became professor there in 1997. She is an academician of the Chinese Academy of Sciences and a fellow of the Academy of Sciences for the Developing World. Each year, the L'Oral Foundation and UNESCO select five outstanding women scientists -- one per continent -- to honor their contribution in research and encourage their commitments and effort in pushing forward the social development. "With the Marie Curie Nobel Centenary being celebrated in 2011, this year the For Women in Science Programme has a particularly strong resonance, placing women and chemistry at the heart of science today," the UNESCO said in a statement. Out of 1,000 high-level scientists around the world, five winners on behalf of Africa and Arab States, Asia and Pacific, Europe, Latin America and North Africa will be awarded with 100, 000 U.S. dollars on March 3, 2011 in a ceremony at UNESCO headquarters. Besides Vivian, the other winners are Kuwaiti Professor Faiza al-Kharafi working with Kuwait University on corrosion related to water treatment, Professor Anne l'Huillier specializing in Atomic Physics with Lund University in Sweden, Professor Silvia Torres- Peimbert with Institute of Astronomy in Mexico City University and Professor Jillian Banfield working on Earth and Planetary Science in University of California of the United States. Initiated 13 years ago, the L'Oreal-UNESCO Awards have recognized 67 laureates, two of whom received the Nobel Prize in 2009, and 864 fellowships have been granted to young women scientists from 93 countries.
November 10, 2010
Jingdu Tianhua takes over as Grant Thornton's HK member - Appointment heralds fresh start for united business operation - Grant Thornton International has appointed a new Hong Kong member firm after its existing operation in the city became embroiled in lawsuits related to its former missing boss Gabriel Ricardo Dias-Azedo. The new firm, Jingdu Tianhua Hong Kong, has been set up by Grant Thornton's mainland firm and is headed by Daniel Lin Ching-yee. It has five partners and 60 staff in Hong Kong and will work with the larger Grant Thornton operation in the mainland where it has 65 partners and 1,500 staff. The firm has applied to the Hong Kong Institute of Certified Public Accountants, the city's accountancy regulator, to adopt the Grant Thornton name some time next year. Grant Thornton is one of the world's leading networks of independently owned and managed accounting and consulting firms - The existing Grant Thornton's Hong Kong member firm will cease operation at the end of this year after an exodus of more than 600 accountants to rival BDO. Grant Thornton International global leadership board member Alex MacBeath denied its decision to cut links with the existing Hong Kong member firm was related to the lawsuits involving Azedo, but said it was a result of disagreement with the existing firm's partners on how to expand in the mainland. MacBeath said Grant Thornton International took the mainland market very seriously and wanted the Hong Kong member firm to work with Grant Thornton in China as a single unit. The Hong Kong partners had disagreed with that strategy. As a result, as at the end of September, Grant Thornton International notified the Hong Kong member firm to leave the global organisation by the end of March next year. That triggered the existing Grant Thornton Hong Kong chief executive Patrick Rozario to jump ship with 600 accountants, including 70 partners, to BDO, doubling Hong Kong BDO to 1,100 staff. Rozario also denied the closure of the Hong Kong office was related to the Azedo lawsuits.
Secretary for Labor and Welfare Matthew Cheung Kin-chung on Monday denied putting pressure on restaurant chain Cafe de Coral to resolve a recent dispute over the minimum wage.
Hundreds of teachers, parents and students took to the streets of Central yesterday to protest against a government policy forcing schools to close because of falling rolls. The 40-year-old customs officer, Simon Hui Sai-man, who donated part of his liver to his fellow colleague Yuen Wai-cheung last Thursday, was recovering well, a surgeon said on Monday. Head of the University of Hong Kong’s liver transplant team at Queen Mary Hospital Dr Lo Chung-mau said Hui could be discharged soon. “He can return to the Customs Department to do office work in about six to eight weeks. “Now, we are discussing whether it would be better for him to stay in hospital or return home to recover,” said Lo. Hui’s elder brother said his family supported his selflessness. “After he is discharged from hospital, he will stay with me. My wife will help take care of him,” he told local media. Hui, an inspector with the department’s airport command, donated part of his liver to 39-year-old customs officer Yuen Wai-cheung after he heard Yuen was in a critical condition after damaging his liver at work. The successful operation lasted 14 hours. Speaking to reporters, a smiling Hui, said he had recovered quickly because of his lifestyle. “I eat regularly and do not drink alcohol or smoke,” he told local media. Hui thanked Dr Lo, hospital staff and his family for their support. Asked why he donated part of his liver, Hui said he had always wanted to help others. “I hope this can send a positive message to Hongkongers about organ donation,” he added. Meanwhile, Lo said Yuen Wai-cheung’s condition was stable, but he was having trouble accepting what happened to him. Lo said the hospital would arrange a psychologist to counsel him. SJM Holdings Ltd, Macau's largest casino operator said on Monday its third-quarter net profit rose six-fold, lifted by its strong position in Asia's biggest gambling centre.
China ratcheted up pressure on Washington over the US Fed's latest moves to lift its economy by printing more money, with a vice finance minister saying resulting hot money in-flows were a shock to global markets. In the run-up to this week’s G20 and APEC meetings, a number of leading economies have warned against the Federal Reserve’s decision last week to inject an extra US$600 billion into the US banking system. “As a major reserve currency issuer, for the United States to launch a second round of quantitative easing at this time, we feel that it did not recognise its responsibility to stabilise global markets and did not think about the impact of excessive liquidity on emerging markets,” Chinese Vice Finance Minister Zhu Guangyao said at a briefing on Monday. Zhu said that China plans “frank discussions” with the United States over its money printing plans. China and the United States had turned down the heat in the acrimonious dispute over currencies and trade imbalances at a meeting of finance ministers from the 21-member Asia-Pacific Economic Co-operation (APEC) forum over the weekend. But Zhu said on Monday that the Fed’s quantitative easing was a poor decision. He said the United States must recognise its role and responsibility in the global economy. A leading Chinese newspaper warned on Monday that Washington’s actions were a form of indirect currency manipulation that could lead to a new round of currency wars and even global economic collapse. For his part, Federal Reserve Chairman Ben Bernanke in recent days has been defending the bond-buying, saying the measures to help restore a strong US economy were critical for global financial stability. Despite the heated rhetoric aimed at US economic policymakers, Zhu predicted on Monday that the G20 meeting would send a positive signal to global markets. “We, including the Federal Reserve, will strengthen coordination of and communication about macroeconomic policies and monetary policies.” He said the current global situation was different from that at the height of the global financial crisis. “Financial markets do not lack capital, but the capital lacks confidence in the real economy,” he said.
The Shanghai government has granted trading licenses to shipbrokers Braemar Shipping, Clarkson, and at least three other foreign firms, allowing them to trade in the local currency for the first time, Braemar's chief executive said on Monday. Shanghai, which surpassed Singapore as the world’s busiest port, invited the global trading firms to form Chinese subsidiaries in an effort to drive out fraudulent shipbrokers and bolster the city’s reputation internationally. With the United States and Europe still in a fragile economic state, China is expected to be the main driver for seaborne trade next year, importing vast amounts of oil, iron ore, coal and grains. “The Shanghai government has approached a limited number of brokers – some international, some local – to grant them a license to create a fully-Chinese company,” Alan Marsh, the head of one of the world’s top 5 shipbrokers, told reporters ahead of an industry conference. “As we understand it, there was a concern in China that there were a lot of bogus brokers.” International shipbrokers Simpson Spence & Young (SSY) and Barry Rogliano Salles (BRS) were also believed to have received licenses, along with three Chinese companies. Foreign shipbrokers have operated in China for years, but only as representatives of domestic companies and could not trade in yuan. Shanghai has provided few details on how the new firms would operate or be regulated. “The initiative has come from the Shanghai government, not from the broking side. We do not know exactly what the implications are,” said the 61-year-old, adding he expected to get a fuller picture in three or four months. China represents more than 10 per cent of Braemar’s worldwide business and was expected to grow by 60 per cent annually. Marsh believed next year profits at the British firm would remain near this year’s level despite a distressed global tanker and dry bulk market that have been plagued by an oversupply of vessels. The British firm last month reported first-half pretax profit of 7.2 million pounds (US$11.3 million) compared with 7 million pounds a year ago. “We expect our income will be the same if not better, but we are going to have to fix more ships to establish that,” he said. Braemar was also “investigating” a dual listing in Singapore, Hong Kong or Shanghai, reflecting its growing business in the region, but a final decision was still far off, Marsh said.
November 9, 2010
The Hong Kong Tourism Board's sacking of 17 people and outsourcing of their work to save HK$2 million has raised questions about future quality control of the outsourced work. The board's Quality Tourism Services, an accreditation scheme that awards shops, restaurants and hotels marks of quality if they pass an assessment, has been outsourced to two other bodies. One of the sacked employees, who refused to disclose his identity, said he wanted to sue the board even though it had given all the employees compensation in accordance with the labour laws. "We all devoted ourselves wholeheartedly to the board, but it just fired us suddenly. It is really cruel," he said. A tourism board spokeswoman said the decision was made as a result of "a regular review of our organisational structure and to maximise resources". By outsourcing the department, the board can save HK$2 million a year for extra marketing work for the city, she added. She said the assessment work was outsourced to the Productivity Council while the work to engage merchants to offer discounts for tourists was outsourced to a company called AQ Communications. Lawmaker Lee Cheuk-yan said it was strange for the board, a government-subvented body founded in 2001, to outsource the assessment work to the Productivity Council, which is also a public sector organisation. "The board's staff members are all experienced in accreditation, but now it is outsourcing the work to somewhere else. I really question about the quality of the assessment now," he said. "It just cannot sacrifice quality for money." But the spokeswoman said there were still five staff members left in the department to monitor the quality of the outsourced work.
Banks running out of cash as economy soars - The mainland's biggest banks will have a massive need to raise funds in the next couple of years, says a top official with Central Huijin Investment, the major shareholder of state banks. As the economy grew and money deposits expanded, banks would have to lend out the money, which would generate a need to replenish capital, Li Jiange , vice-chairman of Central Huijin, told an economic forum yesterday. The company is a subsidiary of the national sovereign wealth fund, China Investment Corp. The five largest mainland banks have announced plans to raise about US$63 billion this year after a lending binge last year weakened their finance sheets and prompted regulators to raise capital adequacy requirement to cushion default risk. The massive fund-raising plans have dampened market sentiment since the start of this year. Many analysts have issued reports saying the banks were undervalued based on the handsome profits they made this year. However, the stocks still lagged behind in the A-share market. "The current size of the fund-raising has not met the level required by the real economy, because of a lending budget control in place," Li said. Mainland banks extended an unprecedented 9.6 trillion yuan (HK$11.2 trillion) in new loans last year to finance the nation's stimulus projects. In an attempt to curb inflation, the central authorities set a lower target of 7.5 trillion yuan this year. "If banks are allowed to extend as many loans as there is demand, banks can expand their assets and thus generate more demand for capital," he said. The combined profits of 16 listed banks totalled 524.8 billion yuan on widened net interest margins in the first three quarters, one-third higher than a year ago. Mainland banks rely on a homogeneous model - making profits mainly from the spread between stipulated deposit and lending rates under the domestic-administered interest rate regime. Hu Huaibang , chairman of the Bank of Communications (SEHK: 3328), said at the forum that mainland banks should focus on the domestic market before expanding overseas. "China's market is so big; if you just focus on the overseas market, foreign banks will come to China, so there needs to be a balance," Hu said. However, it was a good chance for mainland banks to venture overseas to "set up offices, co-operate with strategic investors or make mergers and acquisitions" while their foreign counterparts were de-leveraging after the financial crisis, he said.
November 8, 2010
Retired high-ranking generals from China and the United States held informal talks last month as part of efforts to build greater trust and communication following recent tensions. The discussions touched on stabilising Afghanistan, Pakistan and the Korean Peninsula, security in the South China Sea and nuclear issues relating to North Korea and Iran, according to a statement issued late Thursday by the American side. "Regardless of each side's point of view, both agree there have been misperceptions between the two countries and both governments should take concrete actions to eliminate misunderstandings through confidence-building measures and dialogue to encourage trust," the statement said. The week-long talks, the third round of an ongoing dialogue termed the Sanya Initiative, come amid a push to revive military-to-military contacts that were suspended by China in January over Washington's sale of US$6.5 billion worth of helicopters, PAC-3 air defence missiles and other defence items to Taiwan. Relations further soured over a US declaration it considered as a national interest the peaceful resolution of territorial disputes in the South China Sea. China considered this unwelcome interference in its affairs and was also angered by a US offer to mediate between Beijing and Tokyo over disputed islands in the East China Sea. Participants in the talks, including Admiral William Owens, vice chairman of the US Joint Chiefs of Staff from 1992-96 and former Chinese air force chief General Yu Zhenwu, recognised that "the official military-to-military relationship should not be jeopardised due to political tensions in the relations," the US statement said. They also called for leaders on both sides to define areas of mutually beneficial co-operation between their militaries, the statement said. November 7, 2010
Shirble pitches IPO for HK$1.6b - Shirble Department Store Holdings (China), a Shenzhen-based retail operator, planned to raise up to HK$1.6 billion from an initial public offering in Hong Kong, the company said.
Top mainland carmaker SAIC Motors in October sold 28.8 per cent more vehicles than a year earlier, extending a rebound from August bolstered by the peak car sales season.
November 6, 2010
The government on Thursday said the cost of the MTR Sha Tin to Central Link project would be over HK$60 billion, approximately 57 per cent higher than that estimated in 2007. Speaking to a Legislative Council Panel on Transport, Under-Secretary for Transport and Housing Yau Shing-mu said the rail project had been estimated to cost only HK$38.1 billion in 2007. However, because of the rising costs of construction materials, the addition of a station at Hin Keng just north of the Lion Rock Tunnel, and a revised alignment, the cost would rise. Work on the project will start in 2012. The 17-kilometre Sha Tin to Central Link will have 10 stations. They are Tai Wai, Hin Keng, Diamond Hill, Kai Tak, To Kwa Wan, Ma Tau Wai, Homantin, Hung Hom, Exhibition and Admiralty. The link will provide interchanges with other railway lines. The government has said the link between Tai Wai to Hung Hom could start operating by 2018.
Schools to get funds for voluntary drug tests - Secondary schools will get funds next year to conduct voluntary drug testing of students after a trial in Tai Po was deemed to have fostered an anti-drug culture even though no users were found. New rule puts damper on Kowloon land sale - New rules on floor area resulted in a lacklustre land auction yesterday as a luxury residential site in Kowloon Tong sold for HK$2.17 billion - at the bottom of the forecast range.
President Hu Jintao arrives in France on Thursday for a state visit expected to yield billions of euros' worth of trade deals. Hu is due to touch down with his wife Liu Yongqing at 7.30pm HK time at Paris’s Orly airport where he will meet French President Nicolas Sarkozy and receive military honours before being driven to his Paris hotel. Sarkozy and Hu hold their first round of bilateral talks at the Elysee Palace at midnight HK time and will then sign “lots of contracts, large and small” before a full state dinner, a presidential official said on Wednesday. The deals are expected to include a purchase by China of Airbus aircraft, nuclear energy deals for French company Areva and a contract between French insurance firm Axa and the Industrial and Commercial Bank of China (SEHK: 1398). The value of the deals “will be far greater than during any previous visit by European leaders to Beijing or by Chinese leaders abroad,” the presidential official said, declining to give a precise figure. During Sarkozy’s first state visit to China in November 2007, French companies signed contracts worth 20 billion euros (US$28 billion). Activists complain France is keeping human rights off the menu for the visit, a delicate encounter given the economic stakes and Sarkozy’s preparation for his upcoming presidency of the G20 group of economic powers. The leaders will toast each other at the state dinner on Thursday evening – the only official public statements scheduled by the two. They have not scheduled a joint news conference during the visit – an exceptional departure from state visit procedures, criticised by campaigners who want Hu to be pressed on the issue of human rights. Campaigners criticised Sarkozy for not speaking out in favour of jailed mainland dissident Liu Xiaobo, whose Nobel Peace Prize enraged Beijing when it was announced last month. It is the Chinese leader’s first official foreign trip since the Norwegian Nobel Committee awarded Liu the prize. On Friday, Hu is due to meet business leaders for more contracts, visit a war memorial at Paris’ Arc de Triomphe and meet with French Prime Minister Francois Fillon before flying south to the Riviera city of Nice. There he and Sarkozy are due to hold further bilateral talks and dine at a restaurant on Friday evening. Hu will visit a nearby Schneider Electric factory on Saturday before flying on to Portugal, the Elysee official said. France and China have had tense diplomatic relations in recent years, notably over French meetings with the exiled Tibetan leader the Dalai Lama, but they maintain important economic ties and relations have warmed since last year. On his second state visit to Beijing in April, Sarkozy hailed China as a “strategic partner” and Hu has made warm comments about France in the run-up to this week’s visit.
China Southern, the country's largest airline, announced on Thursday that it had agreed to purchase 36 Airbus planes for $3.78 billion from Airbus SNC, based in French city Toulouse. In a statement filed to the Hong Kong stock exchange, China Southern said it would buy six Airbus A330 aircraft for $1.205 billion and 30 Airbus A320 series aircraft for $2.575 billion. The aggregate consideration will be partly payable by cash and partly by financing arrangements with banking institutions, according to the statement. The six Airbus A330 planes will be delivered in stages to China Southern between 2013 and 2014. While the 30 Airbus A320 series aircraft will be delivered in stages from 2012 to 2015, said the airline. The airline, based in South China's Guangzhou City, said the purchasing was consistent with its development strategy and the aircraft fleet structure plan. The acquisition will facilitate the optimization of the structures of its aircraft fleet and traffic capacity, thus enhancing China Southern's competitiveness and core competence, it said. Delivery of the 36 planes will increase the airline's carrying capacity by nearly 14 percent when compared to the capacity by December 31 last year, according to the statement. China Southern operates domestic, regional and international services. It is a member of the SkyTeam airline alliance. It operates a total fleet of 400 Airbus and Boeing jet aircraft, the company said on its website. In 2009, China Southern carried 66.28 million passengers and was the 3rd largest airline in the world and the largest one in Asia, it said. China Southern has been ranked as the largest airline in China for 31 consecutive years.
China Vanke said on Thursday that preliminary data showed property sales for October jumped 137.3 per cent from a year earlier to 15.51 billion yuan (US$2.32 billion).
November 5, 2010
The government does not intend to make its voluntary drug-testing scheme for secondary students compulsory because of opposition from parents and students.
French President Nicolas Sarkozy will woo his visiting Chinese counterpart this week with his bold agenda for global financial reform, although Hu Jintao may be wary of commitments. President Hu’s visit to France and then Portugal will nonetheless be another opportunity for China to wield its growing economic clout to counter trade tensions with Europe and ensure Hu has Sarkozy’s ear as he takes up the G20 presidency. “China hopes the talks between China and France will advance policy coordination and help stabilise its relationship with the European Union,” Chen Qi, a professor of international relations at Tsinghua University in Beijing, said in an email. “Advancing political relations with France will buffer against co-ordinated pressure from the US, the EU, Japan, South Korea, and other countries at the G20 summit.” Seoul hosts the next G20 summit on Nov. 11-12, after which France assumes the presidency of the group.
SMIC, China's largest chipmaker,
reported its first operating profit in four years, banking on global demand and
more efficient measures under a new management team.
November 4, 2010
China's securities regulator has approved an application from Hong Kong’s central bank for a licence that will allow it to invest in the Shanghai and Shenzhen stock markets, it said in a statement on its website. The China Securities Regulatory Commission gave no other details in the statement. This approval makes the Hong Kong Monetary Authority the third central bank to receive a Qualified Foreign Institutional Investor (QFII) licence after Norway’s Norges Bank and Malaysia’s Bank Negara. The next step for the HKMA is to apply for an investment quota from the State Administration of Foreign Exchange, which regulates how much the HKMA will be allowed to invest in the stock markets. Foreign investors with QFII licences, including Goldman Sachs Group, JP Morgan and smaller players such as Singapore’s DBS Group Holdings, have pumped about US$17.7 billion into China’s stock market under the eight-year-old QFII scheme.
The Exchange Fund reversed a mild deficit in the first half to report investment income of HK$73.1 billion for the first three quarters on all-round growth. The third-quarter income of HK$74.1 billion was of the highest for any three months. This enabled the Hong Kong Monetary Authority to more than recoup the first-half loss of HK$1 billion, caused mainly by a strong US dollar. Despite the highly satisfactory results of the past quarter, chief executive Norman Chan Tak-lam warned that bond returns may fall in this quarter. "In the third quarter, we had pretty good returns in several respects." The fund got HK$20.7 billion from foreign exchange gains, while bond returns brought in HK$19.9 billion. Foreign equities generated HK$18.1 billion and local stocks HK$15 billion. Stocks were helped by the low interest rate environment, reasonable valuations, positive earnings reports as well as more merger and acquisition activities. "In the fourth quarter, there're still many uncertainties," Chan said. "I expect bond income to be so-so, as US bond yields are now at rather low levels." By the end of September, 10-year US government bond yields fell the most, plunging around 130 basis points from January. Yields in Germany and Britain shrank by about 110 basis points. In Japan, where bond yields have been the lowest, the decrease was nearly 40 basis points. Of the HK$74.1 billion quarterly investment income, HK$8.3 billion will go into fiscal reserves and other government funds and statutory bodies will get HK$1.1 billion. The HK$73.1 billion investment income in the first nine months boosted the accumulated surplus of the Exchange Fund by HK$42 billion. As of the end of June, its total assets stood at HK$2.22 trillion.
Some students at the University of Hong Kong may need to go to Shenzhen for their classes in 2013. The university is not the first in Hong Kong to build campuses on the mainland, but is the only one to have plans to use the campus as an integrated part of the Hong Kong facilities. Unlike Hong Kong Baptist University, which uses its mainland campus as a separate school, and the Hong Kong University of Science and Technology's mainland grounds which are used solely for postgraduate programmes, HKU's Shenzhen campus will also host some undergraduate classes. Local and international students will have to travel to Shenzhen for their classes if needed, Professor Roland Chin Tai-hong, deputy vice-chancellor and provost of the university, said yesterday. The campus extension is still in the planning process and no building contracts have been signed for the 100-hectare site. Chin said the School of Engineering is likely to be one of the first faculties to be moved, because "the studies involve some experiments that need a lot of space". "There are a lot of engineering activities going on in the mainland, so, naturally, part of the school will be moved there," he said. The university will also look at the needs of each faculty and decide which ones can be moved, meaning not all the students will have to travel to Shenzhen. Part of the Faculty of Medicine will be moved which may give students a chance to practise in Binhai Hospital in Shenzhen. The hospital is going to be managed by the university and the Shenzhen government. Asked whether he is worried about losing academic freedom in the mainland campus, Chin said he would respect the laws in Shenzhen. "If Falun Gong is not allowed there, then our students should not practise it in Shenzhen," he said. Coaches will be available to transport the students between the two campuses on a journey that lasts about an hour. Jason Ho Chun-yin, a final-year student at the School of Engineering, said he did not mind travelling to Shenzhen for his classes as long as the school arranges the transport. Lam Ki-yin, chairman of the Engineering Society, said he had not heard about moving the school to Shenzhen. "It will be a waste of time to travel from one campus to another. Students will also have to adapt to the cultural differences in Shenzhen, which may in turn slow down their learning," he said.
Macau on a roll toward new highs - Macau's casino revenues rose nearly 50 percent to a record 18.87 billion patacas (HK$18.3 billion) in October from a year earlier, putting it on track to beat full-year expectations.
British Prime Minister David Cameron will visit Beijing next week at the head of the largest official British delegation to travel to the country, China’s Foreign Ministry said Tuesday. Cameron will meet with leading officials including President Hu Jintao and Premier Wen Jiabao during his two-day stay in the Chinese capital, ministry spokesman Hong Lei said. He will be accompanied by his finance, energy, education and commerce ministers during the November 9-10 visit, Hong said. “This has important meaning to the development of China and Britain’s long-term relations,” Hong said. Cameron’s office declined to comment on the trip, saying information might be made available later in the week. The visit would be Cameron’s first to China since taking office in May and comes after his government last month outlined the sharpest cuts to public spending in Britain since the second world war – an austerity plan aimed at clearing record debts that swelled during the global financial crisis. Strengthening business ties will likely top Cameron’s agenda. China last year was Britain’s third-largest source of imports and ninth-largest export market. Chinese-British relations have been relatively smooth in recent months, in contrast to Beijing’s testy relations with other major countries such as Japan and the United States. Their ties have improved since last December, when China ignored personal appeals from then-Prime Minister Gordon Brown not to execute a 53-year-old British man, Akmal Shaikh, for drug smuggling. Shaikh’s family said he was mentally unstable and was lured to China by men playing on his dream to record a pop song for world peace. Brown said he was “appalled” by the execution – China’s first of a European citizen in nearly 60 years – prompting a warning from Beijing that such comments threatened to damage ties. Before that, the two sides had clashed over who was to blame for the failure to reach a binding agreement on carbon emissions cuts at December’s UN-sponsored Copenhagen climate talks. Besides trade, other issues Cameron may discuss include Iran. Britain has pushed for stronger moves to punish Iran for its disputed nuclear program. China’s dependence on Iranian oil for its rapidly industrialising economy makes it crucial to the success of UN sanctions aimed at forcing Iran to negotiate over its nuclear program. Iran insists its nuclear program is entirely peaceful. The US and some other countries think Iran is seeking the ability to build nuclear weapons. Hong on Tuesday repeated China’s support for a resolution of the nuclear issue through dialogue.
China may shift monetary policy stance - China must be ready to shift to a "prudent" monetary policy from its "moderately loose" stance at present as the economy stabilizes, an adviser to the central bank said on Tuesday. Chinese companies' overseas investment rose 10.4 percent year on year in the first nine months even as global investment as a whole dropped sharply over the period, a senior Chinese official said Tuesday.
November 3, 2010
The Li Ka Shing Foundation said about HK$28 million will be made available for projects that gets the most votes from the public in the first round of its charity initiative "Love Ideas, Love HK." The foundation is set to launch the second round of the HK$300-million philanthropic program, with details to come next month. It received more than 1,000 proposals, with about 700 of them listed for online voting from today. The top 25 percent of the listed projects will share the HK$28 million allocation, with student individual projects getting up to HK$25,000 and charitable organizations HK$300,000. Ten percent of those listed will be randomly selected to promote their messages on Metro Radio and Commercial Radio from today. "I am very moved by the dedication and passion of the members of our community, who are caring and committed to our society," chairman Li Ka-shing said. The proposals received were wide- ranging and not confined to community services, a spokesman said. In particular, the foundation's fears of entries dedicated to cause nothing more than mischief proved groundless. Some suggestions were rejected for being "too imaginative" or "too green." More than 300 applications were eliminated for being profit-oriented, impractical or just too time-consuming. One such proposal, regarded as "well-intentioned" but "inexperienced," suggested the Tsuen Wan MTR station be extended so people living at a nearby development would not get wet in inclement weather. Another suggested giving money to patients waiting for treatment at public clinics so that they can go to private clinics. It was ruled out on the grounds that assessments would be too difficult. Three students were also disqualified for submitting three applications for their shared proposal.
Mainland kicks off population census - China launched a once-in-a-decade census on Monday in an exercise that will form a basis for policy-making but is likely to face resistance from residents wary of officials.
An intensifying "currency war" will cast a shadow over the global economy next year, but it is unlikely to escalate into a full-blown trade war, China's commerce ministry said on Monday. The ministry said China would try to play its part to balance global trade flows by boosting imports of advanced technology and resources. The country’s yawning trade surplus is a key source of international tension, with critics accusing Beijing of keeping its currency undervalued to support its exporters. “The currency war is intensifying,” the ministry said in a report published on its website (www.mofcom.gov.cn). “In the mid-term, the US dollar will continue to weaken and gaming between major currencies will escalate, increasing risks for businesses and affecting global trade development.” But it said tensions would be held in check while nations look to increase exports to boost their economies and global bodies such as the World Trade Organisation contain disputes. “Generally speaking, there is no one country that is willing to or will dare to stoke trade conflicts,” it added. The ministry also pledged to maintain its current policy stance to achieve the goal of stabilising exports while expanding imports next year. The total volume of exports and imports this year was expected to reach US$2.8 trillion, up about 25 per cent from a year earlier, it said. November 2, 2010
Taikoo Shing flat prices pass 1997 record - The average price of a flat in Taikoo Shing last month surpassed the previous peak set in 1997, making it the first housing estate in the city to set new record prices.
Donors plea amid blood shortage - China's Red Cross yesterday asked citizens to donate blood urgently because of an acute shortage that has forced surgeons to delay operations.
The mainland has launched draft legislation proposing to increase vehicle taxes up to eightfold on big-engine passenger cars in a move to curb soaring demand for gas-guzzling luxury cars and SUVs. The flat vehicle taxes for cars with engines of 4.0 litres and above will range from 3,600 yuan (HK$4,170) to 5,400 yuan, up from 360 yuan to 660 yuan at present, according to a copy of the proposal posted on the National People's Congress website and open to public comment until the end of next month. Implementation of the proposed tax increase "will greatly impact short term luxury car sales", analysts at auto consultancy JD Power & Associates wrote this month in a research report. However, the impact is expected to be short-lived and sales are tipped to rebound quickly - partly because of the soaring demand for big-engine Audis, BMWs and Mercedes-Benzes on the mainland, and partly because the new tax rates will represent a relatively minor increase to the price of most luxury cars. The three fastest-growing passenger car segments on the mainland are SUVs, minivans and luxury cars - all of which have bigger than average engines. SUV sales have led the pack, rising 107 per cent in the first nine months to 1.19 million units, while luxury car sales have surged 51 per cent to 325,000 units. Big, bulky SUVs and minivans are gaining popularity for their safety aspects and among the growing middle-class, while soaring ranks of the newly rich and government procurement are fuelling demand for luxury cars. Relative to the purchase price of most luxury car brands, the increase in vehicle taxes is modest. For example, Volkswagen's locally made Audi A6L with an extended wheelbase is the best-selling luxury car on the mainland this year and is available in engine sizes ranging from 2.0-3.0 litres. The A6L retails from 355,000-696,000 yuan, meaning the new tax represents less than 1 per cent of the car's sale price. Moreover, five of the top ten best selling luxury car models on the mainland are imported, meaning they are subject to import taxes and duties that can exceed 100 per cent of their assessed value - an extra 5,000 yuan vehicle tax is unlikely to deter buyers of these vehicles. Current legislation assesses a 360-660 yuan across-the-board tax on all vehicles. This is on top of consumption taxes and, where applicable, import taxes, which already take into account engine size. The proposed law would eliminate vehicle taxes on passenger cars with engines smaller than 1 litre. The rate would remain unchanged for cars with 1.0-1.6 litre engines. These first two categories account for about 58 per cent of the cars currently on the road in China, according to the NPC proposal. Cars with engines of 1.6-2.5 litres account for another 39 per cent of passenger cars on the road and would see their tax rise to between 660 yuan and 1,620 yuan. Taxes would rise to a maximum 5,400 yuan for engines bigger than 2.5 litres, which account for only 3 per cent of cars on the road.
November 1, 2010
Many parents resist lure to declare second child - and head for Hong Kong - Shenzhen residents having second children in violation of the mainland's one-child policy now face substantially reduced fines. But some young residents say it is still more cost-effective to give birth to a second child in Hong Kong and have questioned the Shenzhen authorities' motives. The authorities amended local family planning regulations on October 11, cutting the standard fine from three times the offenders' annual incomes to two times. And poorer parents will even be allowed to pay off the fine over three years. Local family planning authorities have said the amendments are designed to encourage more families to register faithfully for the national census and confess the actual number of family members. Guangdong pioneered strict penalties in 2002 to control the high birth rate, with both parents having to pay a fine of between three and six times the local average annual income for each unauthorised birth. Richer offenders, who earn more than ordinary people, face higher fines - ranging between one and two times the amount their income exceeds the local average. For example, the average annual income in Shenzhen last year was about 30,000 yuan (HK$34,750). Under the old rules, a poor person would pay a fine of three times that - 90,000 yuan. Now they will only pay 60,000 yuan. But if a white-collar employee earned 200,000 yuan last year, they used to pay a maximum fine of 520,000 yuan and a minimum of 260,000 yuan. Now, under the latest rule, the minimum fine would be 230,000 yuan. The amended regulations still stipulate that offenders working for government departments will be sacked and those working for government-linked organisations and state-owned businesses will be barred from promotion. The fine is known as a "social upbringing fee" and is designed to cover the cost to the state of a second child. But many couples say they have no reason to pay.
October 31, 2010
AIA Group Ltd surged 17 per cent in its Hong Kong debut on Friday as investors, chasing exposure to Asia's fast-growing life insurance business, piled into the record offering.
China on Friday refuted the report that said it agreed to resume negotiation with Japan on the exploration of oil and gas fields in East China Sea, during a meeting between the two countries' foreign ministers. A spokesman from the Chinese delegation said the report was totally inconsistent with the fact. In the meeting between Chinese Foreign Minister Yang Jiechi and his Japanese counterpart Seiji Maehara Friday morning, Yang urged the Japanese side to go in the same direction with the Chinese side, and create sound atmosphere and condition for the two sides to implement the principles on the issue concerning East China Sea. Yang and Maehara held a half-hour meeting on the sidelines of a series of summits between the Association of Southeast Asian Nations (ASEAN) and its partners in the capital of Vietnam.
Premier Wen Jiabao told Indian Prime Minister Manmohan Singh on Friday the world was big enough for their two countries to develop and co-operate.
*News information are obtained via various sources deemed reliable, but not guaranteed
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Gold medalist urges support for Asian
Games bid - Asian Games 2010 cycling gold medalist Wong Kam-po speaks at the
Legislative Council’s Home Affairs Panel meeting on Wednesday where he urged
lawmakers to support the city's bid to host the 2023 Asian Games.
Lack of projects darkens
outlook - Only 700 new homes were sold in the first 25 days of this month, a 60
percent decrease from the 1,651 deals in October. "Deals for new homes will fail
to reach 800 for the month," said Jeffrey Ng Chong-yip of Hong Kong Property,
who also expects fewer than 1,000 deals in each of the coming months. As for the
past seven days, the impact of new stamp duties of up to 15 percent on homes
purchased and sold within six months could be felt in transactions for new
homes, which declined for the second straight week. Fewer buyers also showed
interest in checking out open houses at the weekend. "Fewer than 10 new homes
were sold through us on Saturday and Sunday, compared to a usual range of 20 to
30," said Patrick Chow Moon-kit, head of research of Ricacorp Properties. Of
these, four were at Festival City II in Tai Wai. Chow said new home sales will
dip further as no new projects are scheduled to be launched next month. The
value of transactions this month declined only 12 percent to HK$13.5 billion so
far. An average of HK$19.4 million was booked for each transaction, more than
double the HK$9.3 million in October. "Many of those new homes sold in November
were worth more than HK$10 million," added Ng. Meanwhile, most buyers stayed
away at the weekend. "Most buyers are expecting a further cut in home prices,
while a few sellers are willing to give discounts," said Midland Reality sales
director Gary Yeung Wing-kin. There were only 1,550 groups visiting 15 major
estates of preowned homes at the weekend, the largest weekly fall since 2008 at
26.7 percent. It also marked the fourth straight weekly decline. Sentiment in
the secondary market is also declining, with transactions down by half from a
week ago, said Chow. About 20 percent of homeowners have pulled out of the
market, with many switching to letting instead. Deals in the coming month will
continue to come under pressure, especially for units with prices ranging from
HK$5 million to HK$10 million. "With the impact from the new cooling measures,
fewer than 1,000 pre- owned homes will change hands in December," said Ng.
Flexible hours are being pushed so
working parents have more time with their kids - a call that follows a survey
showing about a third of Hong Kong's people spend only an hour a day with
families. Yet more than half of the 1,930 respondents to the survey by the Hong
Kong Young Women's Christian Association are generally satisfied with their
personal lives, and almost all gave a "pass" mark to their family relationships.
The respondents - most of them in two-parent, two-children "nuclear families" -
were interviewed from July to October and asked to grade personal and family
life satisfaction on a scale of one to seven, with three a "pass" level. The
study found 32.8 percent spend less than seven hours a week at dinner, talking
or in leisure activities with the family. They rated their personal and family
lives at 4.32 and 2.9 respectively. Those who spend more than 21 hours a week
involved in family activities recorded personal and family satisfaction at 5.48
and 3.52 respectively. "Mutual understanding and mutual respect can be
cultivated through daily communication, which are the keys to a harmonious
family," said YWCA social work supervisor Emily Lee Man-shan. Shared
responsibilities go a long way to making a happy family, Lee added. So the
government should introduce more family-friendly policies such as flexible
working hours to achieve a balance between work and the family. A couple with a
baby under three years of age should be able to get some extra leave and
subsidies, Lee said. Despite perceived needs, 53 percent of all respondents are
generally satisfied with life, with an average 4.94 points, while 93.2 percent
grade family life at 3.2 - just above the "pass" level. Those aged 19 to 39 are
less happy both in personal and family lives, possibly because of emotional,
employment, and marriage problems. Ms Ho, with a 10-year-old son and an
eight-year-old daughter, said she felt strain when the latter was diagnosed with
dyslexia two years ago. But her husband, a civil engineer, shares chores. They
take turns to pick up the children from school, and their son helps tutor his
sister. "We sit down and reach major decisions together," she said. "My
daughter's studies have improved and we are more united than before."
China*:
A set of data published by the People's Bank of China shows capital inflows
jumped in October, reinforcing the government’s rationale for a slew of monetary
tightening steps.
Seoul considers Beijing's call for talks - China's Vice Foreign Minister Wu
Dawei called for emergency talks on Sunday to diffuse tensions on the Korean
Peninsula. South Korean and US forces pressed on with massive military drills on
Monday as regional powers considered a call by China for emergency talks
following North Korea's attack on a southern island. China’s proposed emergency
consultations come amid global pressure on Beijing to take a more aggressive
role in the stand-off between the rival Koreas and try to rein in ally Pyongyang
using its leverage as its largest source of aid. Washington and Tokyo were
non-committal, saying they would consult with Seoul, which was sceptical of the
proposal to sit down with North Korea around a table, effectively rewarding the
North for bad behavior. The reclusive North was previously offered massive aid
in return for disarmament pledges that went unmet. “The six-party talks cannot
substitute for action by North Korea to comply with its obligations,” a State
Department spokesman said, referring to disarmament talks which North Korea
abandoned two years ago. “We have called on China to urge the DPRK (North Korea)
to restrain its provocations and responsibly act in the interests of peace and
stability.” The call for two Koreas, the United States, Japan, and Russia to
meet at a forum hosted by China must be reviewed “very cautiously” in view of
North Korea’s provocations, Seoul said. Both Beijing and Pyongyang have been
pressing regional powers to return to talks in some form or other for the past
few months in a move analysts say is aimed at extracting concessions. China,
which agreed with South Korea that the situation was “worrisome,” suggested the
emergency talks for December. It did not say whether Pyongyang had agreed to
join. South Korean President Lee Myung-bak was scheduled to address the country
to speak about the country’s response to the North’s shelling on Tuesday of its
western island of Yeonpyeong. Four people were killed in the attack. The island
lies 3 kilometres (2 miles) from the disputed sea border. Yang Moo-jin, of the
University of North Korean Studies, said the possibility of immediate additional
provocations by the North was low, citing the massive drills by the South and US
forces and the start of Chinese diplomacy to defuse tension. The nuclear-powered
USS George Washington, which has 75 warplanes and a crew of more than 6,000, is
taking part in around-the-clock drills in waters west of the Korean Peninsula
but well south of the sea border disputed by the North. North Korea kept up the
tension at the weekend by reportedly moving missiles to frontline areas and
warning of retaliation if its territory is violated. South Korea’s financial
authorities expect jitters to remain in the markets for some time but without
long-lasting effects but were braced for possible volatile swings in capital
flows. The South Korean won posted the largest weekly drop in over five months
on Friday and was expected to stay weak, analysts and dealers said. The few
remaining residents of Yeonpyeong about 80 kilometres (50 miles) from the
mainland South had to evacuate to air raid shelters temporarily on Sunday when
the military issued a warning for a possible renewed artillery attack by the
North. But in Seoul, life carried on normally for the city’s more than 10
million residents, with downtown shopping districts jammed with people despite
the freezing temperatures, and cafes decked with Christmas decorations doing
brisk business. “I am worried, but not that worried that I need to stay at
home,” said Eunhye Kim, an usher showing people from a packed theatre. “They
don’t really want to make war ... there’s no gain for either side.”
Golden decoration of rabbit at a shop in
Suzhou City of east China's Jiangsu Province. According to the Chinese
traditional lunar calendar, it is still two months to go to embrace the Year of
Rabbit, however, business operators in China have been busily engaged in
promoting rabbit-related products in a hope to boost sales.
China's 840KM
Shijiazhuang-Wuhan high speed rail work begins to be completed end of 2011 -
Workers lay down tracks for the Shijiazhuang-Wuhan high speed rail in Xuchang,
Central China’s Henan province, Nov 29, 2010. Construction work on the Xuchang
section of the 840 km railway began on Monday. The whole line will be finished
at the end of 2011, connecting two capital cities - Shijiazhuang of North
China’s Hebei province and Wuhan of Central China’s Hubei province. It is
designed to reach a speed of 350 kilometers per hour, cutting the running time
between Xuchang and its neighboring city Zhengzhou, more than 80 kilometers in
distance, to a few minutes. 
Super Girl death during surgery probed - China authorities have launched a probe
into the death of an aspiring pop singer during plastic surgery - an incident
that has sparked concerns about the dangers of going under the knife. Wang Bei,
24, a former contestant on Super Girl - China's smash-hit answer to American
Idol - died on November 15 during "facial bone-grinding surgery" in Wuhan. "The
Ministry of Health has tasked the Hubei health department to investigate and
verify the situation ... and to announce results of the probe to the public
without delay," an official said. Wang, whose good looks made her a popular
contestant on Super Girl, died in an "anesthetic accident" as she was having
surgery, Xinhua News Agency reported earlier. Her "jaw suddenly started bleeding
during the procedure, blocking her windpipe and causing her to suffocate."
Wang's mother was having the same procedure at the clinic when her daughter
died. News of her death and commentaries about it plastic surgery have been
followed avidly across China, where three million people go under the knife each
year, according to figures published by state media. Surging demand has led to
untrained doctors operating, "which is risky and irresponsible," said Zhang
Huabin, a professor of plastic surgery at Guangdong Medical College. The health
ministry has also ordered increased supervision in the industry.
Kuk chief's land to take waste from rail
project - A massive area in Lung Kwu Tan, the ancestral home of Heung Yee Kuk
chief Lau Wong-fat, was cleared and leveled for future dumping of waste soil
from construction of the Hong Kong-Guangzhou high-speed rail line. The
85,000-square metre site in Lung Tsai, south of Lung Kwu Tan village in Tuen Mun,
looks like barren land with trees chopped down and the site bulldozed. But in
months, it is likely to be heaped with piles of soil. The site, partly owned by
Lau, an executive councillor and chairman of the kuk, which represents
indigenous inhabitants, was rented by village chief Lau Wai-ping two months ago.
"There is no planning [control] on this site and this makes it possible to
receive the earth from the ongoing cross-border express rail construction," Lau
Wai-ping said. "This is good for everybody, as these materials are clean and
they can be reused in other construction projects. Keeping them here is better
and much cheaper than moving them to a landfill or the mainland." Lau disclosed
his plan when asked about the clearance at a site which green activists say was
a butterfly hot spot. Over the past decade, the site has degenerated due to
gradual man-made destruction such as dumping and tree-cutting. Lau did not say
how he could get the soil from the HK$60 billion rail project contractors and
how much he would earn from the earth storage. Under the construction waste
charging law in Hong Kong, it costs HK$125 to dump a ton of such waste in a
landfill. According to the environmental impact assessment report for the rail
link, at least 9 million cubic metres of unwanted construction waste generated
from building 26 kilometres of tunnels will require disposal. Some of it might
be used for construction of an artificial island for the proposed Hong Kong-Zhuhai-Macau
bridge, cement plants and an ongoing reclamation project in Taishan in the
western Pearl River Delta. Lau said waste would be stored at the Lung Tsai site
for about two years and then handed back to Lau Wong-fat, who he understood had
always wanted to develop it for housing. The area could have 100 villas but Lau
Wong-fat declined to comment. The village chief also recently commissioned
workers to remove more vegetation on the site, which used to house a golf
driving range and a kart course. Trying to diffuse his fellow villagers' worries
about possible environmental nuisance from the storage operation, which is just
50 metres from the nearest village houses, Lau Wai-ping pledged that any
material would not be stacked too high and surface run-offs would be properly
controlled. But the land clearance has sparked concern from green activists who
have monitored changes at the site, known for rare butterfly sightings - such as
the Redlace Wing - over the past decade. Dr Cheng Luk-ki, the research head of
Green Power, said the site had been damaged at different stages over the past
decade. Photographs taken by the group since 1997 show how it was turned from a
once-green field into concrete and then a dumping site. Cheng suspected that
damage was deliberately done to pre-empt any attempt by the government to impose
a zoning control. "By trashing the site before any future zoning is imposed, all
existing uses on the site can be kept and therefore allow more room for the
landowner to develop in the future," he said. Cheng said there were well known
examples of damage being inflicted on ecologically sensitive sites before a
zoning plan came into force. He cited Sham Chung, one of the largest freshwater
wetlands in Hong Kong. The group wrote to the Lands Department, Environmental
Protection Department, Planning Department and the Drainage Services Department
to inquire if the work at Lung Tsai was authorised, and if they had received any
development proposal. The Planning Department said since the site has no zoning
cover, any land-use change had to be scrutinised by the Lands Department. It
also refused to disclose if a zoning plan was being drawn up for the site, as it
said this was sensitive information. Lands officials did not reply to inquiries
made on Friday. The Environmental Protection Department said it found no illegal
dumping activities at the site or breaches of environmental ordinances in an
inspection on Friday. "We will maintain liaison with the department concerned
and continue to monitor the situation," a spokesman said.
HK blooms as back door for books likely
to ruffle mainland feathers - Wang Shaoguang says many books about the Cultural
Revolution were published in Hong Kong. When Shen Zhihua wrote a book in the
1990s about Mao and Stalin's connection to the Korean war, based on declassified
files from Russia, the mainland's censors blocked his attempts to have it
published. But come Hong Kong's handover in 1997, the history professor at
Shanghai's East China Normal University hit upon the idea of taking advantage of
the "one country, two systems" policy and had the book published in Hong Kong in
1998. Freedom of publication in the city allowed it to become a back door for
the publication of books on sensitive topics of modern Chinese history that were
banned on the mainland. Demand for them rose especially after 2003, when Beijing
allowed individual travel to Hong Kong. Since then, more than 46 million
mainlanders have visited Hong Kong without joining tour groups. Customers from
the mainland zero in on books depicting details of power struggles within the
Communist Party and party bosses' private lives - big sellers for small
bookshops and news-stands around the city. But mainlanders also seek out
intellectual titles based on serious academic research. Chinese University
Press, one of Hong Kong's major publishers specialising in books on modern
Chinese history and politics, has brought out 30 books in this area since the
handover, 28 of them in Chinese. It published fewer than 10 titles before 1997.
How Did the Sun Rise Over Yan'an? - a critical account of the ideological mass
movement initiated by the Communist Party in 1942 - has sold nearly 20,000
copies and been reprinted nine times since its publication in 2000. "The book is
one of the most popular titles we published in recent years. Its sales volume is
really impressive, as it is not easy to sell 2,000 copies of a serious title in
Hong Kong," Angelina Wong Lai-fun, the business manager of Chinese University
Press, said. Even the hefty series The History of the People's Republic of China
- distributed by Chinese University Press - has fared reasonably well. Seven of
the 10 volumes planned have hit bookshelves since 2008. Buyers have snatched up
more than 1,000 copies of each one. Cosmos Books, which published Shen's book on
the Korean war, has produced nearly 80 books on contemporary Chinese history and
politics since 1998. Much of the vitality of this industry can be attributed to
readers from the mainland anxious to read what they cannot back home.
"Individual travellers from the mainland have emerged as the major buyers of
those books," Wong said. "One of their major activities during their visits to
Hong Kong is shopping at bookshops." Shen, a frequent traveller to Hong Kong for
academic exchanges, estimated that mainlanders account for 70 per cent of buyers
of intellectual books on modern Chinese history - although a large proportion of
the books, like his own, are in traditional Chinese script only, not the
simplified script used on the mainland. Terri Chan Kim-man, deputy general
manager of Cosmos Books, said mainlanders bought many of her company's books on
modern Chinese history, which sell in the range of several hundred to nearly
20,000 copies. Shen said Hong Kong's advantage in publishing works on
contemporary Chinese history was aided by a trend in Taiwan in the past decade
of "desinification", which aims at severing the cultural kinship between the
mainland and the island. He is one of the academics who spearheaded the
publication of The History of the People's Republic of China, which was funded
by Chinese University's Research Centre for Contemporary Chinese Culture. The
aim, he said, was to publish a series of books on the country's post-1949
history that would be objective and grounded in evidence-based academic
research. "When I discussed the idea with Chinese University academics, we
immediately came up with the idea of publishing them in Hong Kong. Where else
can we do the project except in Hong Kong?" Shen said. Professor Chen Fong-ching,
an honorary senior research fellow of Chinese University's Institute of Chinese
Studies, who backed the publishing project, said the series could break even
although the number of target readers was rather small. Wang Shaoguang ,
director of the Universities Service Centre for China Studies at the university,
said the mainland had imposed restrictions since the 1980s on books relating to
the Cultural Revolution. "That's why many books about the Cultural Revolution
were published in Hong Kong," he said. Shen's book Mao Zedong, Joseph Stalin and
the Korean War was eventually published on the mainland in 2003.
Beijing
makes offer to host emergency talks - State Councillor Dai Bingguo (left) with
South Korean President Lee Myung-bak during talks in Seoul yesterday. China
seeks six-nation meeting on Korean crisis - China offered to host emergency
talks between the six nations involved in the stalled nuclear disarmament
negotiations over North Korea - Beijing's first concrete move in the crisis
sparked by the North's fatal bombardment of a frontline island held by the South
last week. The proposal was announced by Wu Dawei , China's top North Korea
envoy, in a hastily-arranged briefing yesterday afternoon. It came a few hours
after the nuclear-powered USS George Washington sailed into the Yellow Sea to
take part in a US-South Korean naval drill opposed by Beijing. "The Chinese
side, after careful study, proposes to have emergency consultations among the
heads of delegations to the six-party talks in early December in Beijing to
exchange views on major issues of concern to the parties," Wu said. He
emphasized that the consultations did not amount to a formal restart of the
stalled six-party negotiations, which aim to end North Korea's nuclear programs,
but "we do hope they will create conditions for their relaunch". The proposal
met with a cautious reaction from countries involved in the talks - the two
Koreas, Japan, the US, China and Russia. South Korea's Foreign Ministry said
Seoul would "very carefully" consider China's suggestion of talks. Japan was
likewise. "We want to respond cautiously, while co-operating closely with South
Korea and the United States," Kyodo quoted Deputy Chief Cabinet Secretary
Tetsuro Fukuyama as saying.
An official
signboard reading "Environment-friendly architecture, environment-friendly
future" at a subway station in the capital. It appears Beijing may have softened
its stance on the issue of verification of developing countries' emissions
reductions. Climate talks a stepping stone to new deal - Delegates meet for UN's
Cancun conference without much hope of progress on big issues. As delegates from
nearly 200 countries gather today in Cancun, Mexico, for the year's biggest UN
conference tackling global warming, international climate negotiations appear to
be at one of the lowest points in their 20-year history. The discord and
widespread pessimism that have shrouded the climate talks over the past year
continue to hover over the Caribbean beach resort, with a new, legally binding
pact on carbon emission cuts - something negotiators have been working towards
for the past five years - remaining far out of sight.
CR Cement embarks on
expansion course - Lending curbs not stopping mainland company from doubling
production capacity - The river cargo terminal which is used by China Resources
Cement to transport its product. Calls to curb the massive loan growth on the
mainland are not stopping China Resources (SEHK: 0291) Cement Holdings from
building what will become possibly the world's biggest cement plant and doubling
production capacity. "By 2012, we will have the world's biggest cement plant in
Fengkai," said the company's strategic development director, Max Yu Zhongliang.
The state-owned firm's plant in Fengkai, Guangdong, started operation last year.
Its annual production capacity is four million tonnes, which would double to
eight million tonnes in January, Yu said. By 2012, the plant would have an
annual production capacity of 12 million tonnes of cement, 9.3 million tonnes of
clinker and 4 million tonnes of concrete, he said. Currently, the largest cement
plants in the world have annual production capacity of 10 million tonnes, and
there are four plants, all on the mainland. Three are owned by Anhui Conch
Cement (SEHK: 0914). The fourth, in Pingnan, Guangxi, is owned by China
Resources. The total investment in the Fengkai plant is 5.5 billion yuan (HK$6.4
billion), with 1.4 billion yuan yet to be invested, Yu said. "We have no problem
obtaining bank financing," he said. People's Bank of China adviser Xia Bin has
called for a slowing of the nation's loan growth to reduce the excessive
liquidity fuelling inflation. New loans totalled 9.5 trillion yuan last year,
which would fall to 7.5 trillion yuan this year and 6.5 trillion yuan next year,
Yu said. "There will still be loan growth, but slower growth." From June to
2012, China Resources would almost double its annual production capacity from
36.7 million tonnes of cement to 70 million tonnes, 20.2 million tons of
concrete to 42 million tonnes and 25.2 million tonnes of clinker to 55 million
tonnes, Yu said. "In future, mergers and acquisitions are definitely the way to
expand our production capacity. In three to five years, revenue from acquired
plants will equal revenue from plants built by us," he said. He said it would be
impossible to build new plants following the government move to curb
overcapacity in September last year, he said. The cost of acquiring one tonne of
annual cement production capacity was 400 to 450 yuan, he said. This year, China
would have 200 million tonnes of new cement production capacity while 110
million tonnes of obsolete capacity would be eliminated, giving a net addition
of 900 million tonnes, Yu said. Next year, there would be 150 million tonnes of
new capacity while 150 million tonnes of obsolete capacity would be removed.
More than half of China Resources' output is for the booming domestic
infrastructure sector. "The pace of infrastructure construction in China will
triple in the coming decade," Yu said. In the railways sector, 1,800 kilometres
of tracks were built in the past five years. This will rise to 4,000 kilometres
of high-speed and 4,000 kilometres of ordinary tracks each year in the next five
years, Yu said. One kilometre of high-speed railway would need 20,000 tonnes of
cement, said Hu Song, a business director of China Resources (Holdings), the
state-owned parent of China Resources Cement. The Fengkai plant boasts another
world record - the world's longest conveyor belt at 39.8 kilometres. It carries
gravel from a quarry to the plant. The two billion yuan belt would be lengthened
to 48 kilometres in the first quarter of next year, Yu said. He said it cost 25
yuan per tonne for trucks to transport gravel, but the conveyor belt would cost
only eight yuan per tonne, which would drop to five yuan when it was lengthened.
The Fengkai plant is next to the Xijiang or Western River. China Resources
invested 1.2 billion yuan in a cargo terminal to transport cement from the plant
by river. It was seven times cheaper to transport cement by river compared to
trucks, Hu said. Next year, the river terminal would start shipping fine stones,
or aggregate as it is known in the industry, to Hong Kong as a raw material for
construction projects, Yu said.
CNOOC (SEHK: 0883) is
to bolster its presence in South America by agreeing to pay US$3.53 billion for
a 30 per cent stake in some assets that beleaguered oil major BP is selling to
help pay for the damage caused by the oil spill in the Gulf of Mexico. China's
dominant offshore oil and gas producer, through its 50 per cent-held Argentinian
unit Bridas Corp, has agreed to join partner Bridas Energy Holdings to buy 60
per cent of Pan American Energy from BP for US$7.06 billion. CNOOC gained its
first foothold in South America in March by buying the half stake in Bridas Corp
for US$3.1 billion. The remaining stake is held by the founding Bulgheroni
family through Bridas Energy. Bridas Corp already owns 40 per cent of Pan
American, which has assets in Argentina, Chile and Bolivia. CNOOC said in a
statement the latest acquisition would raise its oil and gas output by 10.1 per
cent to 738,000 barrels of oil equivalent (boe) per day, and proven reserves by
14.4 per cent to 3.41 billion boe. The deal, expected to be completed by June
next year, will be 70 per cent financed by cash and 30 per cent by bank loans.
CNOOC last month raised its annual output target for this year to 319 million to
329 million boe, 14.7 per cent higher than the previous target of 275 million to
290 million boe, if mid-points are compared. After its failed attempt to acquire
United States oil firm Unocal Corp in 2005 for US$18.5 billion because of stiff
opposition from politicians in Washington on national security concerns, CNOOC
has changed strategy by buying non-controlling stakes in overseas assets. Unocal
was taken over by rival bidder Chevron Corp. CNOOC bought a 45 per cent interest
in an offshore oil project in Nigeria for US$2.26 billion. Last month, it struck
a deal to buy one-third of a shale oil and gas field in the US for US$1.1
billion. Pan American booked a net profit of US$630.2 million last year. At
US$7.06 billion, the 60 per cent stake acquisition represents a price-historical
earnings ratio of 18.7 times. This compares with CNOOC's own ratio of 15.1.
CNOOC said Pan American is a fast-growing company, with oil output rising 47 per
cent and gas production climbing 101 per cent in the past eight years. Citing
data collected from research firm Herold, CNOOC said its latest purchase price
represents 9.1 times the value of its reserve on a per boe basis, lower than
10.7 times of the median price of 19 transactions recorded in Latin America.
Coffee revolution hits the home of
China's finest tea - Customers drink coffee at a Beijing outlet as Starbucks and
other large players in the global coffee market jockey for position in China. An
agrarian revolution of sorts is under way in the prefecture of Pu'er, source of
the world famous Pu'er tea, located in the southwestern part of Yunnan province,
bordering Laos, Vietnam, and Myanmar. In the hilly and misty terrain for which
the area is known, farmers have, until now, mainly cultivated tea and oranges.
But times are changing and Kui Wenshu is among a pioneering group of farmers who
have chopped down the orange trees in their orchards to plant coffee. Though she
does not personally like the bitter taste of coffee, Kui is happy with her brave
decision, since the green beans she now cultivates will earn her more than
50,000 yuan (HK$58,124) this year - much more profitable than cultivating
oranges or tea. Earlier this month, she and about a dozen other coffee farmers
in the village were introduced to Howard Schultz, founding president and chief
executive of the US-based coffee chain Starbucks, during his trip to the
province. The company plans to build a farm in Pu'er and will hire and train
local farmers to grow coffee. "To be honest, we never heard of Starbucks before,
but everyone feels this is a big opportunity," said 30-year-old Kui. She is
probably right. Coffee production in Yunnan, which amounts to 90 per cent of the
total output in China, is set to boom as the local government and Starbucks
signed agreements early this month to jointly develop the industry. According to
the agreement, the coffee acreage in the province will be increased to 100,000
hectares from the current 26,700 hectares by 2020, while the annual output of
green beans will reach 200,000 tons by then, more than five times the current
38,000 tons. With its warm, wet and mild weather, Yunnan is one of the few ideal
places in the country to grow coffee, especially Arabica, a bitter, earthy
variety. "We believe Yunnan has the potential to provide the finest quality of
coffee," said Schultz, vowing to bring the relatively unknown China-made coffee
onto the shelves in the 17,000 Starbucks shops across the world. Aside from the
climate factor, the country's growing appetite for coffee is another important
reason that persuaded the coffee giant to set foot in China. Despite a
centuries-old tea-drinking tradition, the country's thirst for coffee is
surging. According to the China Coffee Association Beijing, consumption of
instant coffee has grown 30 per cent annually in recent years, while that for
brewed coffee has grown 15 to 20 per cent a year. Last year, Chinese people
drank nearly 50,000 tons of coffee, compared with 200,000 tons of tea. Coffee
was introduced into modern China by Swiss-based coffee maker Nestle in the
1980s. For many years, it was seen by most Chinese as a high-class gift for
friends rather than a daily beverage of personal choice. "There were cases in
which people who did not like coffee dumped the contents of the glass jars in
which it was sold but kept the jars to drink tea," said Ji Ning, president of
the Beijing-based Coffee Association. In the 1990s, coffee shops started to
emerge in big cities, playing an important role in promoting a coffee culture
and appealing especially to white-collar workers and expatriates. But today the
circle of coffee lovers is expanding to embrace well-off middle-aged people as
well as a much younger group of people born in the 80s and 90s. Ji said instant
coffee is still the dominant product in the China market. Unlike their parents,
who often make tea themselves, young people prefer something more convenient
because of their faster pace of life. The increasing influence of Western
culture is also a reason for the fast spread of the coffee-drinking habit among
younger Chinese. Every Chinese consumes an average of four cups of coffee
annually compared with more than 500 cups a year consumed per person in Europe
and the United States - which means growth potential in China is huge. Eyeing
that vast market, foreign and local companies are bidding against one another
for a bigger share of the developing pie. Starbucks said earlier this year that
China will become the second-biggest market behind the US for the company and
pledged to raise the number of mainland stores from 400 to 1,000 in coming
years. Hong Kong-based China Resources (SEHK: 0291) has also rolled out a plan
to open 1,000 more outlets in the country. Fast-food operator McDonald's
announced it would add McCafes to the existing outlets in the country. And
Swiss-based food giant Nestle plans to increase production lines in its roasting
plant in Dongguan to offer more products domestically.
SM Group, the Philippines largest retailer
plan: Be 'shark in pond' with malls in smaller cities in China - SM Group will
invest 3 billion yuan ($451 million) to build the world's largest free-standing
shopping mall in Tianjin Binhai New Area. Philippine group to put $1 billion
into building five shopping centers. SM Group, the Philippines largest retailer,
will invest more than $1 billion in the Chinese market to open one shopping mall
a year for five years to cash in on growing consumer power in the emerging
market. "We will start one mall every year in the next five years, including the
one in Tianjin this year, all of them in second- or third-tier cities," SM Group
President Hans T. Sy told China Daily on Friday at the groundbreaking ceremony
for its planned shopping mall in Tianjin. The company will invest 3 billion yuan
($451 million) to establish the world's largest free-standing shopping mall in
Tianjin Binhai New Area, the Philippine group's biggest investment in China. The
mall, to be completed by 2013, will have 530,000 square meters of floor space -
larger than 64 international standard football fields - and is meant to serve as
a one-stop destination in keeping with SM's philosophy of providing shopping,
entertainment, food and leisure. Within five years, SM Group plans to open new
malls in second- and third-tier cities such as Suzhou, Chongqing, Zibo, and the
Xinjiang Uygur autonomous region. "Since Beijing and Shanghai have already been
very competitive in the shopping-mall sector and these cities don't offer enough
property for us to open large-scale shopping malls demonstrating our philosophy,
we want to increase our presence in China by expanding in second-tier cities, "
said Sy. "Why be a fish in the sea, when you can be a shark in a pond," he
added. The company said it expects sales in China will equal 10 percent of its
net sales in the Philippines by 2015, up from 5 percent this year. SM Group,
founded by the Philippine's wealthiest man, Henry Sy Sr, in 1958, has holdings
in its core business shopping centers and other sectors including supermarkets,
department stores, banking, real estate development, and tourism. It has 44
large-scale shopping centers in Asia and has set up shopping centers in Xiamen,
Jinjiang, and Chengdu since it entered the Chinese market in 2000. Other mall
developers also see potential in the Chinese market. Star Mall Group, a real
estate and investment company in Turkey, announced a plan in August to open 10
shopping malls in China over the next 10 years. Bulent Ulusoy, the chief
executive officer of Star Mall Group, said the 10 projects are expected to
involve a total investment of $2 billion and will include new shopping malls in
Shanghai and Wuxi.
A sight
that's no longer for sore eyes - For years all you could do was look at it. Now
you can swim there as well - For years, the seven beaches along the Rambler
Channel west of Tsuen Wan have embodied a contradiction: stunning views but
filthy water. Pollution was so bad in the 1990s that the government withdrew
lifeguards and put up banners warning people not to enter the water. Now, more
than a decade after the beaches were closed, new sewage and water treatment
facilities have improved the water quality to such an extent that the government
has deemed it clean enough for swimming. Lifeguards will return to four of the
beaches next summer and the rest will be reopened by 2013, when changing rooms
and other facilities are built. Water quality at Anglers', Approach, Casam,
Gemini, Hoi Mei Wan, Lido and Ting Kau beaches has improved by 70 per cent since
2005, according to figures released earlier this month by the Environmental
Protection Department (EPD). That improvement comes thanks to a new water
treatment plant in Sham Tseng and the opening last year of a sewage system in
the villages along Castle Peak Road, which had previously relied on leaky septic
tanks. So far, 210 of the area's 400 village houses have been connected. "These
seven beaches have been subjected to different sources of pollution from every
direction since the 1990s," said Elvis Au Wai-kwong, the EPD's assistant
director of water policy. Raw sewage flowed directly into the sea from
restaurants and houses, a problem that intensified as the population near the
beaches increased from 26,000 in 1996 to 37,000 today. The improvement in water
quality has been dramatic. In 1997, more than 1,500 Escherichia coli (E coli)
bacteria were found in 100 millilitres of water gathered at Ting Kau Beach.
Today, the count has dropped to 141. Lido and Hoi Mei Wan beaches are even
cleaner, with E coli counts of 87. Water at a beach must have an E coli count
lower than 180 for the EPD consider it suitable for swimmers. Hong Kong's most
popular beach, Repulse Bay, has an E coli count of 11, and the city's cleanest
beach, Hap Mun Bay in Sai Kung, has an E coli level of 3 - a reminder that,
despite recent improvements, the Rambler Channel beaches remain the most
polluted in Hong Kong. The problem is that, even though most local sources of
pollution have been eliminated, the harbour's currents take dirty water from
other parts of the city and send it towards the Rambler Channel, according to Dr
Paul Shin Kam-shing, a marine pollution expert at City University. For that
reason, pollution levels will remain steady at the Rambler Channel beaches until
levels are reduced in Victoria Harbour. That won't happen until 2014, when the
last outflow of raw sewage from Hong Kong Island - about 450,000 cubic metres a
day - is finally treated. That hasn't stopped swimmers from taking a plunge at
the closed beaches, which already attract several hundred people on summer
weekends. One 61-year-old swimmer has visited Lido Beach every day for two
years. "I live in Tuen Mun but I don't like the beaches there - they're too
dirty," he said. "I can see for myself that the water here is good. Besides, the
scenery is great and there's never too many people."
Standard Chartered (2888) is not
joining a possible pact among three other big British banks to cut bonuses, a
spokesman told Bloomberg yesterday. The London-based lender said the deal would
be unfair to its staff as 97 percent are working outside Britain, said spokesman
Jon Tracey. The lender employs more than 5,000 people in Hong Kong. Senior
executives from StanChart, HSBC (0005), Barclays and Royal Bank of Scotland last
week discussed a possible agreement to cut bonuses, according to The Times.
Britain's Financial Services Authority was also in the deal, which offers to cut
the overall level of bonus payments without putting a cap on individual bonuses.
All four banks would commit to a fixed total amount for small business loans
next year, according to The Times. The British government has been seeking to
force banks to disclose the number of staff with big paychecks. New European
Union rules call for top managers in financial firms to defer up to 60 percent
of their bonuses for three to five years and stipulate that half of the bonuses
must be paid in shares instead of cash.
Heung Yee Kuk chairman Lau Wong-fat -
embroiled in a scandal in September over reports that he failed to declare a
series of property transactions - will seek re-election as a village
representative of Lung Kwu Tan in Tuen Mun after all. The kuk chief made the
decision to defend the leadership post of his home village, which he has held
for five decades, despite earlier indications he was considering retirement.
Lau, also an executive councillor, filed as a candidate yesterday as the
two-week nomination period ended for village-representative elections in the New
Territories. Kent Lau Tung-hoi and Lau Kwok-ming, both merchants, filed
candidacy on November 13 for the two positions as indigenous-inhabitant
representatives in the village, which has 503 registered voters. The seats are
currently held by Lau Wong-fat and Lau Wai-ping, who also filed candidacy
yesterday. Lau Wong-fat said he decided to seek re-election because of
encouragement by fellow villagers.
Arts and humanities academics fear
changes to the way university funds are allocated could see their disciplines
lose out as yet greater emphasis is placed on science and medicine. The changes
are planned for the 2012-13 academic year and will see HK$750 million per year
taken out of a total block grant of HK$10.8 billion for the city's eight
publicly-funded universities. At present, each university receives a fixed block
grant for their operational costs, and has total discretion in deciding how the
grant is allocated between faculties. The HK$750 million in funding taken out
will be put into a central bidding pool and the Research Grants Council will
decide on the final allocation. The dean of the Faculty of Arts at Baptist
University, Professor Chung Ling, said the proposed change would weaken
universities that thrived on the arts. "It's totally unreasonable. A big chunk
of money that we use to pay for overhead costs like staff salaries and utilities
would be withdrawn. It's reasonable for universities to bid for grants to
conduct research due to scarcity of resources. But the block grant is mostly
used to sustain the operations of a university. "Arts and humanities disciplines
will lose out, as science and medical subjects have concrete research outputs
that give them an edge in the bidding process," she said. The Research Grants
Council (RGC) set aside HK$324 million in general research funds in the last
academic year for bidding by the city's eight institutions. Arts and humanities
projects have the lowest bidding success rate. Physical sciences came first with
57.3 per cent or 160 out of the 279 applications securing grants. Second came
business projects, with 91 out of 256 applications succeeding. At the bottom was
the arts and humanities, with 26.5 per cent or 57 out of 215 applications
getting the green light. The proposed funding change came on the heels of
another new funding scheme, which was amended after vehement opposition. Under
that scheme, up to 8 per cent of first-year arts-degree student places would
have been put up for competitive bidding among all tertiary institutions. It
prompted the most strident complaints from arts and humanities departments
worried that they would be phased out due to their lower bidding power. "Among
all the universities, only we have an anthropology department," said Chinese
University arts dean Professor Hsiung Ping-chen. "We only have around 20
students now; taking away several of our places will have a big impact on us.''
According to figures from the University Grants Committee (UGC), there was a
25.5 per cent drop in first-year student enrolment in the arts and humanities
from 3,729 in 1999 to 2,791 last year. Arts deans and university researchers
have long lamented that even before changes in how government funds are
allocated, there has been a decline in institutional support to arts and
humanities subjects. A case in point was the launch of the area-of-excellence
scheme by the UGC in 1998, which academics said favoured scientists and medical
researchers. Professor Kam Louie, arts dean at the University of Hong Kong, said
some research funding open for bidding was not available to arts and humanities
researchers. "Croucher fellowships, which give out quite a lot of money, are
just for science people," he said. Launched in 1996, the Croucher fellowship
offers full financial support for senior researchers to devote a year to
full-time research and get a break from teaching and administrative
responsibilities. "Humanities researchers don't need laboratories or a big team
of research assistants. What they need most is time. It's ironic that this
fellowship is not available to those who need it most," Louie said. The General
Research Fund under the RGC does allow researchers to bid for projects. Gordon
Mathews, an anthropology professor at Chinese University, said waning
institutional support for the arts was not conducive to the morale of its
academics. Mathews said the standing of an academic in Hong Kong was mostly
measured by the number of papers published and grants secured. "I might take
five years to write a book. But I might have to set it aside and write more
papers, with lesser scope, to satisfy the system. I love my students enormously,
but I am frustrated by the overall management of universities and the
shortsightedness of the UGC." A UGC spokesman said: "There is general consensus
among institutions that the system should change, and genuine competition will
help to ensure effective allocation of research resources."
Out with a bang - Let
there be no doubt. China knows how to stage a sports event - and wrap it up in
style, as these performers showed in Guangzhou yesterday at the closing ceremony
of the 16th Asian Games. The Beijing Olympics dazzled the world and this was the
biggest Asian Games ever.
Chinese delegation take part
in closing ceremony of Asian Games - Chinese basketball player Wang Zhizhi holds
the national flag at the closing ceremony of the 16th Asian Games held at the
Haixinsha Island in Guangzhou.
"Best ever" Asian Games
close with China dominant as never before - Sheikh Ahmad Al-Fahad Al-Sabah,
president of the Olympic Council of Asia, hailed the Guangzhou Asiad "a huge
success" and "the best ever" in history.
Splendid performances
during closing ceremony of Asian Games - Actors performed at the closing
ceremony of the 16th Asian Games held at the Haixinsha Island in Guangzhou,
south China's Guangdong Province, on Nov. 27, 2010.
Fireworks displayed during
closing ceremony of Asian Games - Fireworks are seen during the closing ceremony
at the 16th Asian Games at the Haixinsha Island in Guangzhou, China, Nov. 27,
2010.
China beats South Korea
to win women's volleyball gold - The Chinese women's volleyball team came from
two sets down to win the women's volleyball gold medal, the last gold at the
Asian Games Saturday.
Chinese national flag
raised at closing ceremony of 16th Asian Games - Chinese national flag is raised
at the closing ceremony of the 16th Asian Games held at the Haixinsha Island in
Guangzhou, south China's Guangdong Province.
China's southern Hainan
island's development as an international tourist destination, InterContinental
Sanya Resort is set to grab a big slice of the travel pie - Overlooking Sanya's
sparkling coastline, every room of the InterContinental Sanya Resort offers a
stunning view of the sea. Ever since the Chinese government announced on Dec 31,
2009, that it planned to build the southern island province of Hainan into an
international tourist destination, sharp-nosed hoteliers have been gearing up to
expand their footprint in this region. Atlanta-based InterContinental Hotels
Group launched the InterContinental Sanya Resort in July on Serenity Coast,
located on Luhuitou Peninsula in Sanya, raising the number of hotels operated by
the hospitality giant in Hainan to four. Swathed in pristine white sands and
surrounded by majestic mountains, the resort has seen an encouraging upturn in
business, says Tony Marrinan, general manager of InterContinental Sanya Resort.
"In Sanya, the high season for tourism is between November and April, but we
have seen a good season right after opening," Marrinan says. Dai Zheng,
vice-president of Qunar.com, an online travel search engine, expects that in
addition to the crowds of the upcoming festival season, many business events
will also be held here. All this is good news for InterContinental. However, as
international hospitability giants, including Hilton and Riz-Carlton, already
own addresses in the city, and more are expected soon on the market, the
competition will heat up. Ma Nan, marketing manager of Beijing UTS International
Travel Service Co Ltd, says the travel profile of Chinese tourists has changed
dramatically. Not only are they more demanding but also they spend more time at
their destinations. According to Daodao.com under TripAdvisor, about 34 percent
of Chinese travelers choose budget hotels, while 26 percent prefer four-star
hotels and 16 percent, five-star accommodation. InterContinental is a prestige
brand, but, "We are not in the business of selling rooms with golden faucets or
Hermes soaps", Marrinan says. "Of course, every high-end hotels can provide
comfortable beds and beautiful rooms. But the major selling point of this resort
is that we are the only hotel in Sanya who can say every room, no matter regular
or luxury, faces the ocean. This is something money cannot buy." Located close
to Sanya's sparkling coastline, every room offers a stunning view. Some villas
even offer garden-like bathrooms where guests can shower while surrounded by
plants under a crystal clear sky. But such glamour is not restricted to the
gorgeous villas and can also be found in the ordinary rooms. Guests can dream,
read or enjoy music and movies while soaking in their bathtubs and at the same
time feast their eyes on magnificent views of the ocean, twinkling stars and
dazzling fireworks. The resort's Chinese restaurant stands about 100 meters from
the shore. The resort offers 343 rooms, including 24 beachside villas, a
presidential suite and 12 executive suites, besides five swimming pools, eight
restaurants and bars, and the soothing SPA InterContinental. Marrinan says:
"When people come to visit our resort, we want to send them back with great
memories and experiences." As most of their guests are families, Marrinan says
the resort also offers professional childcare services to allow the adults some
time of their own. "Family-oriented activities include swimming, fishing or
catching crabs on the beach," he says. "Cooking classes that teach how to make
the famous Hainan chicken are also popular with families." Sanya is also a
popular conference destination, and the InterContinental is positioning itself
in this segment, too. The resort has a pillar-less ballroom and seven meeting
rooms. The ballroom can accommodate up to 450 guests for cocktails or 300 for a
banquet. And all meeting rooms are equipped with soothing natural light to
provide the right inspiration for breakthrough ideas. "We are also trying to
encourage more companies to launch their luxury products, for which our hotel's
dcor and ambience offer the perfect backdrop," Marrinan says. Chinese,
especially from Beijing, Shanghai and Guangdong province, dominate the guest
list, accounting for about 80 percent of the total. "(The) International market
for Sanya's tourism is still small," Marrinan says. "Now, some resorts in Sanya
are seeing more Russian visitors, thanks to their country's long cold season."
He says that while US and European visitors are also quite significant to
Sanya's tourism, the popularity of Hainan as an international beach travel
destination has still not caught on. He adds that the key to the expansion of
their business is an improvement of airline capacity and the service quality of
both domestic and international airways.
Fireworks company - Panda Fireworks
Group, the only market-listed Chinese fireworks firm aims to sparkle - Panda
Fireworks Group seeks more mergers and acquisitions for domestic and global
expansion - Panda Fireworks Group, the only market-listed Chinese fireworks
firm, and the one responsible for the displays at the Beijing Olympic Games,
Shanghai World Expo and Guangzhou Asian Games, will seek more mergers and
acquisitions (M&As) for domestic expansion, and will bid for contracts at all
major international sporting events. M&A is a shortcut to gain permits for
selling fireworks, which are listed as hazardous goods, at various locations in
the country, said chairman Zhao Weiping. The company, which started as an export
business in 1989, has seen domestic sales quadruple during the past two years.
Having entered the domestic market in 2007, after the gradual lifting of a ban
on fireworks in major cities in 2006, Panda has obtained permits to sell its
goods in seven cities. It usually takes about three years to build a warehouse
and logistics chain, due to strict standards for hazardous goods, and a market
presence, Zhao said, predicting stronger domestic growth in 2011 after racking
up growth of around 20 percent this year. Revenue will also be stronger after a
merger with the Hunan-based fireworks company Bongxi, which it acquired for 62.7
million yuan ($9.5 million) in April. Birthday celebrations and corporate events
may create a huge market for fireworks, once the market matures and more
products become available, Zhao said, adding that Panda is considering
commercial fireworks shows as another source of revenue. The company has been
responsible for government-funded Chinese New Year firework displays in
Guangzhou during the past decade. The company's participation in the Beijing
Olympic Games, Shanghai World Expo and Guangzhou Asian Games, has brought
benefits in the form of brand building and an enhancement of its innovation
strength, Zhou said, adding that "the Beijing Olympic Games turned fireworks
into value-added cultural products". At a display at the Great Wall during the
Beijing Olympics, Panda used chip technology to guide the fireworks and ensure
more accurate positioning and lower smoke levels. Panda will also invest in its
research institute for new technology and environmental applications, Zhao said.
Zhao and the company's design director are part of the design team for a display
at the Guangzhou Asian Games. The company is spending about 2 million yuan on
its creativity workshop every year. The Chinese fireworks market, estimated at
23 billion yuan a year, is bigger than all combined overseas markets, which
stand at 3 billion yuan on a Free On Board basis, and are almost exclusively
served by Chinese exports, Zhao said. The company's export business had been in
decline since 2007 due to the global economic recession, and only started to
recover last year. However, it will take a long time for it to return to the
pre-crisis level, Zhao said. After winning a bid to provide fireworks for events
in Macao and Dubai last year, Panda is now focusing on the Shenzhen Universiade
(also known as the World Student Games) next year, and all other major
international sports events, he said.
Third of Chinese medicine
products in Hong Kong may have to go - As a deadline looms, non-licensed
products will be pulled - Traders and producers say they need more time to
comply with the registration process for Chinese medicine products. Small
operators say they cannot afford laboratory tests. A third of Chinese medicine
products on sale may disappear from shelves on Wednesday when a compulsory
registration law takes effect. Eleven years after the Chinese Medicine Ordinance
was passed, new rules will apply from Wednesday when all non-licensed products
must be withdrawn from sale. With the deadline looming, just two-thirds, or
11,280 of 16,730 products have temporary licences needed to stay on sale, the
Health Department said. Of these, just 15 per cent are covered by permanent
licences - the eventual goal for all products. While the registration process
began in 2003, traders and producers say they still need more time to comply.
Smaller operators say they cannot afford the expensive laboratory tests required
to ensure the medicines are safe and work as stated. Practitioners complain that
the department is slow processing applications, and does not understand details
of the Chinese medicines. Hong Kong and Kowloon Chinese Medicine Merchants'
Association chairman Jack Pang Cheung-hi said that of 100 applications he
submitted, only about 60 were approved. "The department is still working on the
remaining 40 per cent. What should I do on December 1? Throw everything into the
sea?" Lam Ching, chairman of the Society of Hong Kong Professional Registered
Chinese Medicine Practitioners, said the government was bureaucratic. "Even if
we use the same herbs, but change the supplier, we have to submit an application
all over again," he said. Temporary licences can only be granted after products
are proved safe in three tests covering heavy metals and toxicity, pesticide
residue and microbial limit. To get full registration, producers or importers
must also prove the products' quality and efficacy. Smaller traders complain
that the new rules could lead to large manufacturers dominating the market,
limiting the choice for consumers. Hong Kong Medicine Dealers' Guild chairman
Wong Ping-ming said: "A laboratory test costs HK$100,000. If I have 10 products,
it will cost me HK$1 million." He said Chinese herbal products, which were made
from natural plants, were not as stable as Western drugs that were created from
chemical formulas. "Even two tomatoes can look very different from each other.
They can have a slight variation in vitamin content, but we cannot say that one
is of a poorer quality." Hong Kong Chinese Medicine Practitioners' Rights
General Union chairman Yu Kwok-wai is concerned about efficacy tests. He said
most Western drugs were developed by big pharmaceutical companies that could
afford to commission large-scale scientific studies. "But a lot of Chinese
medicinal recipes are just passed down from our grandfathers, and we simply do
not have the resources to do any systematic efficacy studies." The groups urged
the government to provide subsidies for those who could not afford the
laboratory tests, and to be more flexible over rules in order to preserve the
Chinese medicine industry. Wong said Hong Kong was one of the first places in
the world to attempt to control Chinese medicine. "There are no precedents and
no universally agreed standards. The government should allow more buffer time
for us," he said. But Society of Hospital Pharmacists of Hong Kong
vice-president William Chui Chun-ming said the Chinese medicine traders had had
plenty of time. If some could not make the deadlines, it might be because these
companies were on such a small scale that they were "unable to produce drugs
that can satisfy the current safety needs". "We can't show mercy, because nobody
wants adverse events to happen," he said. Chinese medicine had to keep pace with
the times, and "it is time to eliminate companies that are not up to standard",
he said. From December 1 next year, all Chinese medicine products will need to
carry labels that specify, among other things, their ingredients, country of
origin, registration number and expiry date. They will also need to include a
detailed package insert that lays out dosage, methods of use, functions and side
effects.
Maritime industry calls for a boost
- Hong Kong slipping as competition increases - A coalition of maritime industry
groups, including Hong Kong shipowners and seafarers, is calling for the
government to establish a policy bureau to strengthen Hong Kong's position as an
international maritime centre. The call is among a package of nine proposals
made by the alliance of four organisations to stave off growing competition from
Singapore and Shanghai. The alliance, comprising the Hong Kong Shipowners'
Association, Hong Kong Seamen's Union, the Institute of Seatransport and the
Hong Kong Logistics Management Staff Association, says Hong Kong's status as a
maritime centre is declining. "If the situation does not change, the development
of Hong Kong's maritime industry, as well as its economic development and
prosperity (SEHK: 0803, announcements, news) , will be hampered," the members
warn in their proposal. The measures also include a call for joint government
and maritime sector action to "formulate a comprehensive strategy" to develop
the maritime sector and further concessions from the mainland government for
vessels flying the Hong Kong flag. Ships registered in Hong Kong already enjoy
concessionary charges when calling at mainland ports as well as favourable terms
when employing mainland crew. The alliance also wants more money allocated for
maritime-related education, saying that Singapore already fully subsidises
tuition fees for students taking maritime courses. "More resources should be
allocated to local educational institutions to organise more maritime courses
within a shorter time frame to nurture high-quality nautical graduates and
maritime professionals for the various maritime service industries." Doing this
may help recruit a younger generation of local maritime professionals, the four
alliance members said. The coalition has invited a further 21 organisations to a
meeting on December 7 for discussions to find further ways of developing Hong
Kong's maritime sector. The meeting will be one of the largest involving
shipping and related organisations for years. Proposals drawn up by the meeting
will then be submitted to the government, while the coalition will also seek a
meeting with the Transport and Housing Bureau which oversees the maritime
industry. The event will be the latest attempt to pressure the government to
take action to help support Hong Kong's maritime sector since June, when
shipping magnate George Chao Sze-kwong made several proposals for government
action. These included the creation of a dedicated shipping minister or the
upgrading of the Marine Department into a policy bureau. Lee Kwok-keung, head of
the Amalgamated Union of Seafarers, said the planned meeting had been inspired
by two things. First, 2010 was the International Maritime Organisation's Year of
the Seafarer, with both maritime unions and the government organising events to
increase public awareness of the importance of the maritime industry. Also, the
central government in Beijing had repeatedly stressed its support for Hong Kong
developing its role as an international maritime centre, he said. Pointing to
the threat posed by other maritime centres, a discussion paper produced by the
alliance said Hong Kong has already dropped to fourth place among the world's
busiest container ports behind Shanghai, Singapore and Shenzhen. "This ranking
may drop even further. The issue of finding ways of maintaining and upgrading
the status of Hong Kong as an international maritime centre is of the utmost
urgency," the paper said. As a result the four think Hong Kong should find ways
to develop maritime-related services such as shipbroking, chartering, ship
finance, arbitration and legal services rather than relying on trying to boost
cargo and container throughput. Turning to shipbroking specifically, they said
while Hong Kong had a healthy shipbroking community, Shanghai relaxed controls
in July, which allowed nine foreign shipbroking houses to register their braches
in the city. Singapore introduced a 10 per cent preferential tax rate for
shipbrokers from April, down from 17 per cent. An indication of the industry's
scale is that in London net income from shipbroking topped £948 million
(HK$11.59 billion) in 2008. Consequently, while both Singapore and Shanghai were
aggressively expanding their positions as international maritime hubs, if Hong
Kong continued to do nothing, ultimately it would lose its status as a global
maritime centre, the four warned. Vicky Yip Yan-pik from the Hong Kong Seamen's
Union, thought it was "most important" the government created a "policy bureau
to take charge of maritime matters". She said people with expert knowledge of
the maritime sector are needed to oversee its development, rather than the
current situation where administrative officers at the Transport and Housing
Bureau are responsible.
Memorial trail considered for Bruce
Lee - Designer Jimmy Yuen Gi-tsun (left) and Bruce Lee Club chairman Wong
Yiu-keung with a route for a Bruce Lee memorial path. Fans are getting their
nunchakus ready to celebrate the 70th anniversary today of the birth of
legendary kung fu star Bruce Lee. But it will take more than a few swings of the
deadly hinged weapons wielded by the star in his movies to break a deadlock over
plans for a museum at his final home in Kowloon Tong. Enthusiasts do, however,
have something to look forward to, as the government is planning an exhibition
featuring memorabilia of the star at the Heritage Museum, and is considering a
Bruce Lee memorial trail. Commissioner for Tourism Philip Yung Wai-hung said a
Bruce Lee memorial path linking the star's former homes, schools and film
locations was being discussed. The authority had exchanged views with the Bruce
Lee Club and the two had similar ideas about the trail, he said. Club chairman
Wong Yiu-keung said the fan club proposed 10 locations for the memorial path. "I
hope it will become a new tourist attraction ... it'll also be a birthday
present for Bruce Lee," he said. Starting from the Bruce Lee sculpture at the
Avenue of Stars, the trail would run to the car park at Ocean Terminal where the
star had a well known set of photographs taken. It would continue along Nathan
Road and Waterloo Road, including stops at schools he attended: Tak Sun School,
the former site of La Salle College and St Francis Xavier's College. Locations
of his former homes are also included, but new buildings have already replaced
the ones Lee lived in. The last stop would be at Tuen Mun's Tsing Shan Monastery
where Lee filmed scenes for Enter the Dragon in 1972. It may take fans half a
day to travel along the Kowloon part of the path, and another half a day to
reach Tuen Mun. Yung said yesterday the government had yet to reach agreement on
the design of the Kowloon Tong home with billionaire philanthropist Yu Panglin,
who offered to donate the 5,000 square foot villa. Yu wants three basement
levels, but only one such floor is possible under the current plot ratio, the
formula that determines building density. "Due to city planning concerns, the
possibility of fulfilling Yu's requirements is very low ... Kowloon Tong is a
low density area and any big development needs to be approved," Yung said. The
commission has collected about 100 items related to the star and they could be
exhibited in the Heritage Museum by 2012, he said. "The exhibition may feature
duplicates of movie scenes." Born in San Francisco, Lee was educated in Hong
Kong before he moved to the United States. He returned to the city and filmed
trademark works Fist of Fury, Game of Death and Enter the Dragon. Lee died in
1973 aged 32. A cinema at the Hong Kong Film Archive today will show four of his
early films: The Kid (1950), A Son is Born (1953), Thunderstorm (1957) and The
Orphan (1960).
Direct subsidy schools launched a counterattack after criticism of financial
malpractice ahead of Monday's showdown before the Legislative Council. Direct
Subsidy Scheme Schools Council chairman Lam Kin-wah called the attacks "unfair"
and blamed some of the anomalies on the Education Bureau's unclear guidelines.
Lam said after an urgent meeting with school representatives that most do not
agree with the allegations of misuse of government funding and school fees. The
schools should have flexibility in management and allocation of resources.
Earlier in the day, Lam told a radio program: "No standards are set for many
things. While it [the bureau] didn't mention them before, it now says we have
omitted this and that. So I found that the Education Bureau - as lawmaker Cheung
Man-kwong said - is shirking its responsibilities." He called for better
communication with the bureau. His remarks come a day after the bureau released
the names of schools found with varying degrees of irregularities in an audit
report last week. Nearly all of the city's 72 direct- subsidy schools audited
over the last school year were on the list. Secretary for Education Michael Suen
Ming- yeung said he will wait until the meeting of Legco's Public Accounts
Committee to answer questions. The director of audit's report said that,
contrary to the bureau's guidelines, one school used surplus funds to speculate
in the market. The bureau later identified it as Good Hope School. However,
discrepancies have been found in the Chinese and English versions of the
guidelines. The Chinese version states that speculative investments such as
buying local equities are banned while the English version says they are "not
recommended." The bureau said last night it will follow up on the discrepancies
found. It said schools will comply with guidelines if they do not use funds,
which are not immediately required, to speculate in the market. The report also
criticized five schools for not informing parents of financial data, including
major items of income and expenditure, when seeking their consent to increase
school fees. One school - which a source named as St Paul's Co-educational
College Primary School - proposed to increase fees by 25 percent for 2009-10
without telling the parents of its estimated accumulated operating reserve up to
2008-09 of about HK$15 million. The amount was sufficient to cover 27 percent of
the school's estimated operating expenses for 2009-10, the report said. Lam said
the bureau told schools to keep reserves worth at least two to three months of
operating expenses and it did not ask them to inform parents of their reserves.
He said reserves are needed for urgent repairs and maintenance, pay rises, in
case income slumps with a fall in student enrollments and for development plans.
St Paul's Co-educational College in MacDonnell Road and its primary school in
Wong Chuk Hang said in a joint statement they have taken steps to enhance
transparency in financial reporting and will continue to uphold prudent
financial management.
Top French diplomat in HK suspended -
The top French diplomat in Hong Kong and Macau has been suspended and recalled
to Paris, a consulate spokeswoman said on Friday. “He left Hong Kong on Monday,”
the spokeswoman said. Marc Fonbaustier, 46, France’s consul-general for Hong
Kong and Macau, was recalled over conduct that would “likely not meet the
requirements of professional conduct for a French diplomat”, foreign ministry
spokesman Bernard Valero said in Paris. Fonbaustier, who is married and has
three children, was appointed to the post last year. “The Consul-general of
France for Hong Kong and Macau was recalled and immediately left his post,” the
ministry spokesperson said. “He is suspended from duty. An administrative
investigation has been started based on the circumstances behind the decision."
The ministry did not elaborate on the reasons for his suspension.
Cheung Kong executive may face inquiry over 'misleading' remarks - A Cheung Kong
(SEHK: 0001) director has run into trouble after making what he claims were
casual remarks online that could have led readers to believe a project his firm
was selling had immunity from the government's measures to combat speculation.
The government has asked the Real Estate Developers Association to look into the
issue, while a legislator wants the government to freeze the second phase of
sales at of the project, Festival City in Tai Wai. At issue are threads posted
by Cheung Kong Real Estate director William Kwok Tze-wa on Sina Weibo last
Friday, hours after the government measures were announced. "Buying Festival
City II will not be affected by the new government measures. 12 o'clock is
coming soon. Quick quick quick ... The world of speculation is welcoming you,"
the posts said. Kwok also wrote: "If Hong Kong people do not buy, those rich
people from the mainland should buy. And they should buy those of high quality.
Merely by the appreciation of yuan, one can make big money. Hong Kong's real
estate [prices] can soar by 40 per cent in the future."
Art sales highlight flourishing
Asian market - Pablo Picasso's Mere Tebant un Enfant is unveiled yesterday as
one of the 21 paintings in Sotheby's inaugural selling exhibition of
Impressionist and Modern art. Another month, another busy week in Asia's
increasingly hectic art calendar. At least six art auctions and sales are set to
hit Hong Kong and this time it is Western works of art that are grabbing the
attention of the region's buyers. At Christie's week-long autumn sale at the
Convention and Exhibition Centre which runs until next Thursday, two Western
paintings due to be offered in the Old Master and 19th Century art sale in New
York in January are on display - the first time the auction house has shown
paintings in this category in Hong Kong. The two works - View of Mestre by
Italian master Canaletto, with a presale estimate of between US$2.5 million and
US$3.5 million, and Master of Hounds by French painter Jean-Leon Gerome, which
is expected to fetch between US$700,000 and US$1 million - are on exhibit during
the auction period. Simultaneously, Sotheby's is to hold its inaugural selling
exhibition of Impressionist and Modern art in Hong Kong at the Grand Hyatt from
today till Sunday. The 21 paintings on show, priced between HK$15.6 million and
HK$196 million, include works by Claude Monet, Pierre-Auguste Renoir and Pablo
Picasso as well as Marc Chagall. Korean auction house Seoul Auction will also
stage a selling exhibition of Impressionist and Modern art from tomorrow till
Monday at Pacific Conference Centre, while Est-Ouest Auctions of Japan is
offering some Picasso works alongside some Modern pieces at its fine art sale
today at JW Marriot. United Asian Auctioneers, a consortium formed by Beijing
Hanhai Auction, One East Larasati from Singapore, K Auction from Korea and Asian
Art Auction Alliance based in Hong Kong, will offer works by Andy Warhol and
British artist Julian Opie, alongside many other Asian contemporary art pieces
at tomorrow's sale at the Hong Kong Exhibition Centre. The influx of Western art
to the Hong Kong market is a response to Asian buyers' increasing interest in
expanding their art collections. Christie's Asia chairman Ken Yeh said he had
observed a significant increase in the number of mainland buyers participating
in New York and London sales, bidding for Impressionist and Modern paintings
priced from US$10 million to US$20 million. He said most mainland buyers bought
Impressionist and Modern art as investors and collectors.
CSL, which launched Asia's first 4G
network yesterday to cope with growing mobile broadband demand, will provide its
new super-fast service to Hong Kong consumers early next year. The city's
largest wireless network operator has started offering 4G connection, with
internet download speeds of up to 100 megabits per second, to its enterprise
customers. Based on the mobile broadband technology called Long-Term Evolution (LTE),
the network was introduced by CSL ahead of early 4G frontrunners in the region,
NTT DoCoMo of Japan and South Korea's SK Telecom. Joseph O'Konek, the chief
executive at CSL, said over the past three years, the carrier had "spent several
hundred million dollars, including for the spectrum", to set up its LTE
infrastructure with the help of mainland telecommunications equipment maker ZTE
Corp (SEHK: 0763). CSL, a unit of Australian telecommunications giant Telstra
Corp, invested HK$523 million to acquire its 4G spectrum on the 2,600-megahertz
band in January last year. Tarek Robbiati, group managing director of Telstra
International, said CSL managed to fulfil the Hong Kong government's spectrum
licence requirement on network coverage four years ahead of schedule since its
4G system now reached about 50 per cent of the city's population. LTE network
users will be able to complete the download of a full high-definition movie at
26 minutes, compared with 132 minutes for an advanced 3G network based on the
Evolved High-Speed Packet Access (HSPA+) technology. Downloading a DVD-quality
video on an LTE network will take four minutes to complete, faster than the 18
minutes it would take on an HSPA+ network. The speed difference is not as
discernible when downloading a 10-song MP3 file. That job would take 0.1 second
on 4G and 0.7 second on the HSPA+ service's 42Mbps connection. O'Konek said the
wide use of mobile internet devices and more rich online content being
downloaded led CSL, which had 2.6 million subscribers as of June this year, to
bet big on an infrastructure that combines LTE and HSPA+ networks. CSL estimated
that its data traffic had increased by 65 times since March last year. ZTE and
Samsung Electronics will provide the first LTE-ready devices on CSL's 4G network
in the form of USB modems, or dongles, attached to laptop computers to get
high-speed data access. CSL chief marketing officer Mark Liversidge said more 4G
devices were expected to become available within the first half of next year,
including a range of smartphones and media tablets. O'Konek said CSL had started
discussions with Samsung, which has delivered the world's first LTE handset to
United States-based 4G network operator MetroPCS. Wireless Intelligence
forecasts Hong Kong to have 1.4 million 4G connections by 2015, while the
mainland will have 57.9 million. It predicts CSL will have a dominant 40 per
cent 4G market share that year.
Fast-food chain Fairwood Holdings (SEHK:
0052) says it will raise prices and step up automation to offset higher costs
caused by inflation and the minimum wage legislation. The company saw its shares
surge as much as 22 per cent yesterday after it reported net profit growth of
43.4 per cent to HK$70.7 million for the six months to September. Turnover was
HK$811.1 million, up 4.4 per cent compared with the same period last year,
thanks to higher average spending and better customer traffic. Despite
expressing optimism about the outlook for next year, the fast-food chain
admitted it was under mounting pressure from surging food costs, rising rent and
the minimum wage legislation. Chief executive Raymond Chan Chee-shing said food
and rent costs increased nearly 10 per cent over the past six months and might
jump another 20 per cent to 30 per cent over the next half-year. The company
also faced a sharp rise in labour costs as a result of the introduction of a
wage floor rate of HK$28 per hour from next May. Chan expected labour costs to
climb to 23 per cent of total costs next year from the current 21 per cent and
profit margins to be dragged down to 4.8 per cent from 6.8 per cent currently.
"We will raise the menu price by another 2 per cent to 3 per cent," he said.
Rival Cafe de Coral (SEHK: 0341), the largest fast-food chain in the city,
recently came in for criticism for cancelling the paid lunch break enjoyed by
its staff after offering them a pay increase to meet the wage requirement.
Fairwood said around 4 per cent of its 1,000-plus employees would receive a pay
increase in accordance with the wage requirement. "For this moment, we do not
have any plan to change our staff's working hours and lunch break arrangements,"
Chan said. The company offered a 3 per cent to 5 per cent pay increase to
employees in the first half of this financial year and a similar percentage pay
rise is expected in the second half, Chan added. Aside from raising menu prices,
Fairwood will also step up automation and streamline processes in its
restaurants and central food processing plant to cut costs and enhance
productivity. The chain will also offer international cuisine to attract more
affluent consumers. Fairwood operates 95 fast-food outlets in Hong Kong and 16
on the mainland. The profit from its Hong Kong restaurants reached HK$54.47
million while the mainland outlets contributed HK$9.82 million for the reported
period. It plans to open eight to 10 restaurants in Hong Kong and five to six
restaurants across the border during this financial year. The company proposed
an interim dividend of 20 HK cents and a special dividend of 8 HK cents per
share for the period. Its share price closed yesterday at HK$11.26, up 11.49 per
cent.
Son of KMT chief gunned down on
campaign trail - Lien Sheng-wen survives being shot in face, supporter killed -
Lien Sheng-wen speaks on the campaign trail just hours before he was shot last
night. The son of Kuomintang honorary chairman Lien Chan was shot in the head
during a campaign rally outside Taipei last night, just hours before voters
elect mayors of five municipalities in Taiwan today. The shooting of Lien
Sheng-wen, 40, seen as one of the new generation of KMT leaders, marked the
first bloodshed in what had been a relatively peaceful election, prompting an
indignant Taiwanese President Ma Ying-jeou to order all-out efforts to protect
candidates. Lien Sheng-wen, deputy campaign manager for Taipei Mayor Hau
Lung-bin, who is running for a second four-year term, was about to make a speech
at a rally in Yungho when the gunman leapt onto the stage. A spokeswoman for
National Taiwan University Hospital, where Lien Sheng-wen was taken for
emergency treatment, said he was shot in the left side of his face but his life
was not in danger. "The bullet did not go through his brain and the patient
remains clear in all senses and shows steady life signs," the spokeswoman said.
Police said the gunman, identified as Lin Cheng-wei, 48, was arrested
immediately. "He pressed the gun against the head of Lien and shot him," a
police officer said.
China wins men's
basketball gold at Asiad - China's Wang Zhizhi (L2) and Zhu Fangyu hug following
their victory over South Korea in the men's gold medal basketball game at the
16th Asian Games in Guangzhou, Guangdong province, November 26, 2010. 
Members of China's men's
basketball team throw Wang Zhizhi into the air following their victory over
South Korea in the gold medal game at the 16th Asian Games in Guangzhou,
Guangdong province, November 26, 2010.
Beijing warns US
and S Korea over drills - China says it will protect its coastline as US battle
group heads for the Yellow Sea - US General Walter Sharp talks to South Korean
General Yun Kong-yong during a tour of houses destroyed in a barrage of North
Korean shells that hit Yeonpyeong island on Tuesday. China warned yesterday
against military acts near its coastline ahead of US-South Korean naval
exercises that North Korea said would put the peninsula on the brink of war.
Beijing's warning came as Seoul named a career soldier as its new defence
minister and Pyongyang appeared to launch its own artillery drills within sight
of an island that it showered with a deadly missile barrage on Tuesday. Beijing
also held phone talks with US Secretary of State Hillary Rodham Clinton on the
tense situation, the Chinese foreign ministry said. Foreign Minister Yang Jiechi
also spoke to his South Korean counterpart and met Pyongyang's ambassador to
Beijing to discuss the situation. Yang urged Seoul and Pyongyang to exercise
calm and restraint and solve problems through dialogue, the ministry said,
according to Xinhua. Earlier, Beijing warned against military activity in its
exclusive economic zone, echoing remarks it made a day earlier opposing the
US-South Korean war games. "We hold a consistent and clear-cut stance on the
issue. We oppose any party to take any military actions in our exclusive
economic zone without permission," Foreign Ministry spokesman Hong Lei said in
reply to a question regarding China's position on the US aircraft carrier George
Washington participating in the joint naval exercises. The aircraft carrier's
battle group was heading for the Yellow Sea for the four-day drill, which starts
tomorrow - a show of force designed to deter North Korea. China strongly
protested over an earlier round of drills in the region but had been largely
mute over the latest exercises. Beijing could be withholding direct criticism to
avoid roiling ties with South Korea and the United States, and to register its
displeasure with ally North Korea. Pyongyang, unrepentant over its barrage that
hit the island of Yeonpyeong, criticised "the US imperialists and South Korean
puppet war-like forces" for what it called an exercise in "sabre-rattling". "The
situation on the Korean peninsula is inching closer to the brink of war due to
the reckless plan of those trigger-happy elements to stage again war exercises
targeted against the [North]," its official Korea Central News Agency said. The
aggressive language is typical of North Korean state media, but the heightened
tension was enough to depress South Korea's won currency as much as 2.2 per
cent. The stock market closed 1.3 per cent down, in line with the wider region.
There was brief panic in Seoul in the afternoon when television reported sounds
of artillery fire near Yeonpyeong. But the military said the artillery fire was
distant and no shells landed in South Korea. The fresh artillery blasts from the
North were especially defiant because they came as the US commander in South
Korea, General Walter Sharp, toured the island to survey damage from Tuesday's
attacks. US military officials said Sharp did not hear the blasts, though
residents on other parts of the island panicked and ran to the air-raid shelters
where they huddled earlier in the week. Tensions have soared between the Koreas
since the North's strike on Tuesday destroyed large parts of the island, killing
two civilians as well as two marines. The attack - eight months after a torpedo
sank a South Korean warship further west, killing 46 sailors - has also laid
bare weaknesses in South Korea's defence 60 years after the Korean war.
Tuesday's skirmish forced South Korea's beleaguered defence minister to resign
on Thursday, and President Lee Myung-bak yesterday named General Kim Kwan-jin, a
former chairman of the Joint Chiefs of Staff, to the post. "[We] think nominee
Kim, well respected for professionalism and conviction, is the right person for
the post in order to restore trust from people and boost morale in the entire
military," presidential-secretary Hong Sang-pyo said. The heightened animosity
between the Koreas is taking place as the North undergoes a delicate transition
of power from leader Kim Jong-il to his inexperienced son Kim Jong-un, who is in
his late 20s. Parts of Yeonpyeong resembled a war zone yesterday and some
residents fled the island for fear of more shelling from the North when the
joint naval exercise starts, policeman Kang Sang-beom said. Fears spread to
other frontline islands. Residents were on a knife edge on Baengnyeong Island -
near the spot where, according to a multinational expert panel, a North Korean
submarine torpedoed the South Korean warship in March. "It feels like the calm
before the storm, ahead of the US-South Korea joint exercise that will begin on
Sunday," a 37-year-old local government official said.
Modern Dairy suffers from sector's
troubles - China Modern Dairy was one of the worst-performing stocks in the Hong
Kong market yesterday as its trading debut was spoiled by concerns about
mainland food safety and overall market malaise. The raw milk producer tumbled
as much as 16.6 per cent in the afternoon before finishing down 13.2 per cent at
HK$2.51. More than HK$750 million worth of its shares changed hands on the day.
China Modern Dairy raised about HK$2.2 billion by selling 800 million new shares
at HK$2.89 apiece. The offering price was at the low-end of an indicated range.
"People usually avoid this sector," said Patrick Yiu Ho-yin, managing director
at CASH Asset Management. "Investors are worried that there may be some negative
impact from so many of the issues coming out from the dairy industry." Other
mainland-based dairy companies have not fared well either with their new
listings recently. Yashili International Holdings, a milk formula maker, listed
on November 1 and is down 22.4 per cent from its offering price. Global Dairy
Holdings came to market at the end of last month and is down 33.7 per cent from
its IPO price. The mainland dairy market came under intense scrutiny in 2008
when half a dozen children died and a reported 300,000 became ill after
consuming milk and formula later found to be contaminated with an added chemical
called melamine. Dairy product makers have since taken steps to improve
oversight of the milk they are using by consolidating procurement around
large-scale farms. This trend stands to benefit China Modern Dairy, which sold
over 95 per cent of its milk in the latest fiscal year to leading mainland dairy
products maker Mengniu Group. China Modern Dairy said in a prelisting document
that since its commencement of business it has produced high-quality raw milk
which has never contained melamine. The dairy farmer has earmarked proceeds from
its IPO to improve its production scale. It set aside about HK$882 million for
importing dairy heifers from Australia or New Zealand and over HK$1 billion for
building new farms and production facilities. China Modern Dairy was the 12th
new listing this month on Hong Kong's main board and 85th so far this year.
There were 68 new listings last year and 47 in 2008, according to data from Hong
Kong Exchanges and Clearing (SEHK: 0388). The IPO pipeline has showed signs of a
slowdown, however, amid waning investor sentiment. China Datang Corp Renewable
Power and two other listing candidates aiming to take in over a combined US$3
billion through separate deals pushed back their fund raising plans because of
poor market conditions, according to people familiar with the deals. The Hang
Seng Index is down 0.95 per cent so far this month, headed for just its second
monthly decline since June. "If the overall market is not so good and the
current market still has attractive stocks to buy, it will drive out some of the
capital from the IPO market," Yiu said.
Islanders dream of a taiga economy
taking off - The return of land seized by the Soviets in 1929 points to a new
spirit of co-operation in a corner of the far northeast. A novel "one island,
two countries" solution to a territorial dispute in Heilongjiang on China's
northern border could be about to pay dividends. The deal with Russia,
consummated two years ago, sees the two nations sharing Heixiazi Island , long
deemed undisputed Chinese territory. Such pragmatism is rare. The 327 square
kilometre sedimentary island, where the Heilong and Wusuli rivers (known as the
Amur and Ussuri in Russian) meet, was spoken of for decades as the reason that
the Russian bear and the Chinese dragon could not get along. Since Russia handed
back about half the island, Heixiazi has been seen as a symbol of a new spirit
of economic co-operation. Officials are scrambling to draw up plans to develop
the Chinese side of the island. Among their ideas are a free-trade zone, tourist
resort, hotels and a shopping centre. They say the island is poised to become
another investment hot spot, attracting capital from Japan, South Korea, Taiwan,
Hong Kong and Macau, as well as from wealthy people on the mainland. "Heixiazi
Island will become another large tourist resort like Hainan and a large border
town like Shenzhen," said Fuyuan county chief Wang Jutang. The island, called
Bolshoi Ussuriysky in Russian, was seized by the Soviet Red Army in 1929. For
the past two years, the part of the island handed back to China has been under
military control, with garrison stations the only structures and patrolling
soldiers the only sign of activity on the wild landscape. Signs warn that it is
a "prohibited military zone, not accessible to visitors". But officials are
proceeding with ambitious development plans for the Chinese sector, even though
talks with Russia on a joint development plan for the island are continuing.
Under a plan worked out by the provincial planning agency and approved by the
National Development and Reform Commission, the island will become a business
and leisure hub in five years. The local government plans to invest 10 billion
yuan (HK$11.6 billion) in development projects on the island and has earmarked
more for infrastructure. Although Fuyuan county has a population of only
200,000, the partial return of the island triggered the building of an airport
and 169 kilometres of railways. New roads and a deep-water harbour on the
Heilong are also being built. An industrial park of about 13 square kilometres
is planned, which the authorities hope will become home to factories making
products for the Russian market. Local businesses are focusing on the
opportunities that will be unleashed when a road across the island connects it
to Khabarovsk, one of the largest cities in the Russian far east. Under an
agreement to further co-operation, both countries agreed to joint development of
boundary rivers, bridges, ports and connecting highways, rail lines and other
infrastructure. Heilongjiang officials say Russia also plans to build more
infrastructure in Khabarovsk. Hou Wei , deputy director of the Heilongjiang
Tourism Administration, said both governments supported the plan and had agreed
to speed up talks which resumed in late September. While China has seen
territorial disputes in eastern and southern waters flare up this year, there
are growing signs of goodwill across its northern border, with officials and
soldiers saying people on both sides have become friends in recent years. "We
often exchange greetings and gifts when we come across the border, where we are
separated by two-metre-tall wire netting," said one soldier who drove Hong Kong
journalists on a tour of the island earlier. But some can't erase memories of
the fierce border war in 1968, when Mao Zedong mobilised the whole nation to
prepare for nuclear war with the "Arctic polar bear". "We cannot celebrate until
we get all the territory back," said one tourist. The island, under de facto
Russian control but claimed by China, was the major point of the dispute between
China and Russia in border negotiations. Talks began in 1964 and were suspended
a few years later when the border war broke out. They resumed in 1987 when both
nations were eager to forge closer ties in the face of growing assertiveness by
the United States-led Western alliance. In 1999, then-president Jiang Zemin and
his Russian counterpart, Boris Yeltsin, signed a border treaty in Moscow
acknowledging all the treaties signed between the Qing dynasty and Russia. Jiang
ceded more than a million square kilometres of land. Up to that point, Chinese
communist leaders had denounced those treaties as unfair and declared them
invalid. In October 2004, President Hu Jintao and the then Russian president,
Vladimir Putin, signed a supplemental agreement to return half of Heixiazi
Island to China. In autumn 2008, Russia turned over part of Heixiazi to China
along with the whole of Yinlong Island, known in Russian as Tarabarov Island.
The ceremony was low-profile, with only junior diplomats, local officials and
border officers from both countries in attendance. "Why was it such a stark
contrast between the ceremonies for the return of Hong Kong, Macau and Heixiazi
Island?" the tourist asked. "The communist government was glorified over the
return of the British and Portuguese colonies, and thus staged high-profile
ceremonies. "Here, they feared they would be denounced and shamed as being as
weak and incompetent as the Qing dynasty for accepting equally humiliating
treaties and thus were very low-key in an effort to keep the event from having
widespread exposure." Some overseas Chinese were furious at the signing of the
two border treaties. Critics said they ended any hope of China reclaiming the
lost land and condemned Beijing for selling out their homeland. But officials
see the new spirit of co-operation as ushering in a new era of development for
the northeast. "We have lagged far behind Guangdong in the past three decades
because of the southern province's openness to trade and investment from Hong
Kong and newly emerging economies in nearby Southeast Asia. Now we will catch up
because of our link with Russia," said Sun Yao , the Heilongjiang vice-governor
in charge of foreign trade. Sun said Heilongjiang's economy was larger than
Guangdong's three decades ago but was now less than a fifth the size. "I can
assure you that Heilongjiang will catch up with Guangdong in the next three
decades because of the great potential of this region and Russia's far east
thanks to both regions' rich resources and complementary economies," Sun said.
Wen, Central Asian peers push
for co-operation - Premier Wen Jiabao met Russian and Central Asian prime
ministers in the Tajik capital Dushanbe yesterday for talks on security and
economic co-operation. The ninth prime ministers' meeting of the Shanghai
Co-operation Organisation (SCO) - a security grouping consisting of China,
Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan - agreed to press
ahead with further regional co-operation, Xinhua reported. Assistant Foreign
Minister Cheng Guoping said terrorism, separatism and extremism, together with
drug smuggling and cross- border crime, posed serious threats to the region,
China News Service reported. Tajik President Emomali Rahmon also called for
further co-operation to fight terrorism and separatism, and promote regional and
global development. SCO secretary general Muratbek Imanaliev said earlier that
SCO military activities were mainly aimed at fighting terrorism and did not
target any specific country. He said the SCO was not a military organisation and
was focused on maintaining regional and global security and development. The SCO
would continue to combat terrorism, separatism and extremism to maintain
regional security in Eurasia, and especially in Central Asia, Imanaliev said.
China blames terrorism, separatism and extremism - the so-called "three evil
forces" - on the East Turkestan Islamic Movement, which seeks independence for
Uygur-populated Xinjiang. In a meeting with Rahmon, Wen said China would expand
co-operation with Tajikistan in economic issues and trade, electricity,
transportation, minerals and border control. He pushed for the implementation of
a co-operation agreement between Tajikistan and Xinjiang. Wen also met his
Kazakh counterpart, Karim Masimov.
Splendid Rhythmic Gymnastics finals
at 16th Asiad - Anna Alyabyeva of Kazakhstan grabbed gold medal of the
individual all-around event of Rhythmic Gymnastics at the 16th Asian Games in
Guangzhou, Nov. 26.
Huang Hua, pivotal in diplomacy, dies - Mao Zedong's former translator and
longtime diplomat Huang Hua died, aged 98, of an undisclosed illness yesterday,
Xinhua reported. Huang translated English for Mao in the years before the 1949
communist seizure of power and was later pivotal in China's foreign relations.
Huang held the positions of vice-premier and foreign minister concurrently from
1976 to 1982. When Beijing returned to the United Nations General Assembly after
two decades of absence in 1971, Huang was part of the Chinese delegation
together with then foreign minister Qiao Guanhua. He was part of China's
delegations to the Korean war armistice talks and the tentative initial contacts
with the United States in Warsaw, Poland, in 1958. He was responsible for
talking with former US national security adviser Henry Kissinger and drafting
the announcement of the invitation of US president Richard Nixon to China in
1972. As foreign minister, he oversaw the formation of diplomatic ties with
Washington in 1979 and toured the US with paramount leader Deng Xiaoping that
year. He was also the first mainland foreign minister to set foot in Hong Kong
in 1980. But he is most remembered in Hong Kong when he reportedly made a
remark, together with former defence minister Geng Biao , that there was no need
for the People's Liberation Army to be stationed in Hong Kong. After their
remarks, the two were later given a public scolding by Deng for "mouthing
nonsense".
HP has big plans for China - Ruey-bin Kao,
Hewlett-Packard Co's managing director for China, speaks at an event in Beijing
celebrating Hewlett-Packard's 25th anniversary in China. Firm eyes rural market,
to build major service center in nation - Hewlett-Packard Co Ltd will build one
of its biggest service centers and continue investing in the Chinese market,
Ruey-bin Kao, the company's new chief in China, said on Wednesday in Beijing.
Kao, former president of Motorola China, said he was very ambitious about HP's
development in China. "The very first thing I will do after joining HP is to
find two offices which are larger than 10,000 square meters for HP's expansion
in China," said Kao. About 64 percent of HP's business is outside the United
States in more than 170 countries and regions. According to Kao, China plays an
important role in HP's global market, where it will build its largest and most
vital outsourcing center out of a total of six global centers next year.
"China's outsourcing and software service is only half of the world average,"
said Wang Jiping, manager of research firm IDC China. He said 70 percent of
sales revenue in China's IT industry comes from hardware. "HP is following the
general trend in which hardware PC companies are providing more software and
outsourcing services in China," Wang said. "In this industry, China has a huge
potential." Besides the service centers, HP will widen its PC portfolio and
enhance distribution channels in China next year. According to earlier data
released by IDC, due to quality scandals, HP's market share dropped from second
to third place in China during the second quarter. "Next year, we will rebuild
our brand and provide better PC services in China to win our customers back,"
said Kao. "We will launch our Palm handset and tablet PC products in China next
year," Isaiah Cheung, vice-president of HP, said. Kao also said the company is
cooperating with two major telecom companies in China to develop cloud
computing. The company is going to combine its commercial and personal PC supply
chain, which will share the same distribution channel. According to IDC, PC
sales in China will reach 65.14 million units in 2010, with an estimated growth
rate of 14 percent next year. "After a surge in sales during the economic
rebound in 2009 and 2010, the growth rate will be lower than past years," said
Wang from IDC. Wang also pointed out that the rural market will play a
significant role for PC makers next year. HP will expand its distribution
channels to 2,000 counties and 10,000 villages, according to Cheung.
Pretty models at 2010 Southwestern
China Int'l Auto Show - The five-day auto exhibition, which kicked off here
Friday, showcased more than 500 vehicles from over 100 motor manufacturers.
Scenery of Wanfohu Lake in E China's
Anhui - Wanfohu Lake is located in Shucheng County, about 40 kilometers away
from Hefei, capital of east China's Anhui Province.
Pay workers for their meal breaks -
Matthew Cheung Kin-chung, secretary for labor and welfare - Workers required to
have lunch in their workplaces should be paid for the time taken regardless of
whether they have to do any work, the labor minister says. But Matthew Cheung
Kin-chung said it was not appropriate to regulate paid meal breaks across the
board by legislation, and employers and workers should agree on terms of their
own. Speaking in the Legislative Council about the Minimum Wage Ordinance
yesterday, Cheung said that if an employee had to remain at a place of
employment during his meal break, such time should be included in his hourly
wage, irrespective of whether he was given anything to do. "Moreover, if meal
breaks are regarded as working hours of the employee according to his employment
contract or agreement with his employer, such hours must also be taken into
account in computing the statutory minimum wage," he said. While the first
statutory minimum wage of HK$28 an hour will be implemented in the middle of
next year, Cheung urged employers to pay attention to their workers' morale.
"All along, employers and employees have been able to agree on their employment
terms having regard to the circumstances of individual enterprises and personal
needs of employees, including whether meal breaks constitute hours worked by
employees, and whether they are remunerated or not," Cheung said. He said
employers should not alter anything in a contract without thoroughly consulting
the workers. "If workers feel that their rights are infringed, they should
contact the Labour Department without hesitation. We will definitely intervene
and will ensure that workers' rights and benefits will not be harmed," he said.
Cheung said the department would issue guidelines and samples of employment
contracts to help employers and workers prepare for implementation of the
minimum wage. He said there would be some adjustments under the new legislation,
as wages would be calculated on an hourly rate, while at present most employment
contracts calculate wages monthly. The government announced earlier that, with
the minimum wage taking effect, it would begin to study the possibility of
introducing standard working hours. Commissioner for Labor Cherry Tse Ling Kit-ching
said yesterday it was a complicated matter requiring in-depth study, Tse, who
will soon leave her post to become permanent secretary for education, said the
relationship between employers and workers was good overall, despite sporadic
disputes.
It wouldn't matter who
won Marine Police site, says legislator - A luxury hotel, shops, restaurants and
bars stand at the former Marine Police headquarters. 1881 Heritage never lacked
controversy. Had Cheung Kong (SEHK: 0001)'s rival to the bid won in 2003, it too
would have been caught up in the latest public storm, courtesy of the
government's bungled attempt to get an accurate estimate of the exact size of
the former Marine Police headquarters in Tsim Sha Tsui. "Had Sino Land won the
site because it had the best heritage conservation scheme, it might also have
been embroiled in this latest row on bonus gross floor space," said lawmaker Dr
Patrick Lau Sau-shing, of the surveying and planning sector and a member of the
Professional Forum. Since Li Ka-shing's flagship company won the government
tender, the project has become the most frequently cited example of the
government's failure in heritage conservation. The abandoned Grade 1 monument is
now a network of a luxury hotel, shops, restaurants and bars serving high-end
customers. When the government first offered the tender, five companies joined
the bid in 2002. The winner would receive a 50-year land grant. The planning
brief required the successful bidder to preserve the integrity of the historic
compound, including the historic buildings and setting, the greenery and the
slopes. But in the end, the hill and most of the mature trees disappeared. The
heritage value of the site would have been better preserved if Sino Land had won
the bid, based on the plan it had presented for the site, a government source
knowledgeable about the project said. But a close examination of the information
the then Tourism Commission released back in March 2003 shows Sino's development
scheme, artist impression and master landscape plan were similar to the 1881
Heritage after completion. Sino did promise to keep the hill and trees in their
original state. Cheung Kong won the project because it offered a bigger lump sum
to the government - HK$352.8 million. In an effort to strengthen its bid, Sino
also submitted its award-winning designs of the Fullerton Hotel and Far East
Square in Singapore aimed at demonstrating its expertise at preserving and
reusing heritage buildings. The other bidders did not show relevant experience,
the government source said. But Lau thinks the government's failure in getting
an accurate estimate of the gross floor area of the project would have made no
impact on tendering prices.
Foreign ministry given Mid-Levels site,
to grow - The Ministry of Foreign Affairs has been granted a 2,100 square metre
site in western Mid-Levels for expansion. The government said yesterday that the
site in Borrett Road would be granted to the ministry for a nominal sum of
HK$1,000 to meet its need for more space. The site is zoned for government use.
A proposed building on the site will include a new official residence for the
commissioner, who will move from the top floor of the ministry's current home in
Kennedy Road. "The additional premises ... will further enhance the capacity of
the office in discharging its functions and responsibilities under the Basic
Law," it said. The office already has two blocks in Borrett Road. According to
the proposal, the new development will have only four stories above basements.
The land lease runs to June 30, 2047 when the transition phase of Hong Kong's
change of sovereignty ends.
Caterpillar, the world's
biggest maker of construction equipment, hired Goldman Sachs to help it sell
yuan-denominated bonds in Hong Kong, according to a person familiar with the
matter. 
China's current account surplus in the third quarter doubled from a year earlier
to US$102.3 billion, leaving it adrift of the cap of four per cent of GDP
floated by US Treasury Secretary Timothy Geithner. The surplus for the first
three quarters, largely made up of China’s merchandise trade surplus, reached
US$204 billion, the State Administration of Foreign Exchange said on Thursday.
That equates to 5.1 per cent of Gross Domestic Product, based on GDP of 26.866
trillion yuan in the first nine months as reported by the National Bureau of
Statistics and assuming an average exchange rate of 6.75 yuan per dollar. China
chalked up a current account surplus of 6.0 per cent of GDP last year, down from
a peak of 10.6 per cent in 2007. Yi Gang, a deputy governor of the People’s Bank
of China, has expressed confidence that the surplus is on track to shrink to
four per cent of GDP – a benchmark suggested by Geithner to indicate an economy
is out of balance. But International Monetary Fund staff economists have said
they see potential for significant surpluses to reappear over the medium term,
albeit not on the scale of 2007. In the third quarter alone, China’s surplus was
more than 7 per cent of GDP, calculated at a dollar/yuan rate of 6.7. The United
States failed to win support for a numerical target for maximum current account
surpluses and deficits at a summit of the Group of 20 major economies in Seoul
this month. G20 leaders instead asked the IMF to carry out more work on
indicative guidelines that would show an economy was unbalanced. SAFE calculated
that China’s official currency reserves rose US$107.3 billion in the third
quarter after exchange rate and valuation adjustments. Before adjustments, the
reserves rose US$194 billion to a record US$2.648 trillion, by far the largest
stockpile in the world, the People’s Bank of China reported last month.
Shanghai Expo's China Pavilion to
reopen - Workers clean the plaza of Shanghai Expo's China Pavilion in Shanghai,
east China, Nov. 25, 2010. Shanghai Expo's China Pavilion will reopen to the
public on Dec. 1 and remain open for half a year, the Expo Bureau said. Shanghai
Expo's China pavilion will reopen to the public on Dec. 1 and remain open for
half a year, the Expo Bureau said Thursday. Exhibitions in pavilion will mostly
remain the same as they were during the Shanghai World Expo which ran from May 1
to Oct. 31. Only an exhibition featuring stories behind China Pavilion's
construction and operation has been added in the waiting hall, according to a
statement from the bureau. Tickets for the pavilion are priced 20 yuan for
adults, 15 yuan for students, disabled people, military servicemen and aged
people. Children less than 1.2 meters tall will not need tickets, according to
the statement. The pavilion will be open from 9 a.m. to 5 p.m. seven days a
week. China Pavilion, one of the most popular pavilions of the Shanghai World
Expo, received more than 10 million visitors during the six-month event.
The world in a port - cruise along
the Pearl River - Take a cruise along the Pearl River to take in the abundance
of neon light and feel the pulse of the bustling nightlife of Guangzhou. A visit
to ready-for-the Asian Games Guangzhou throws up delightful surprises, from a
laid-back colonial past to frenzied contemporary trade. Mu Qian reports. One
week before the Asian Games seemed like a perfect time to tour Guangzhou, with
the city getting ready to welcome guests but the frenzy yet to begin. The first
advantage of the games for tourists, I noticed, was that whenever you were not
sure of the way, there would be some volunteers nearby to help you. This
happened to me from the moment I arrived at the Guangzhou Baiyun International
Airport, where volunteers readily showed me the way to the Airport South subway
station. This station, which had been put into use only a week earlier, was
another positive outcome of the Asian Games. From here you can connect to almost
any corner in the city. My destination was Shamian, a sandbank island in the
Pearl River that used to be a foreign concession and is now famous for its
colonial buildings. From the Huangsha subway station, it is a mere three-minute
walk. I checked into the Guangdong Victory Hotel, a neo-classical building that
used to be an HSBC bank in the mid-19th century. Located on the northern bank of
the island, it is separated from the mainland by a canal. Walk around Shamian
and you will see various Western-style buildings, including the Our Lady of
Lourdes Chapel built by the French, and the former Czech Consulate. They were
mostly built in the 19th century, but Shamian's history of foreign contacts
dates back to the Song Dynasty (960-1279), when it began to serve as an
important port for Guangzhou's international trade.
Giant gold nugget found in Xinjiang China - Weighing 1,840 grams, a nugget is
measured 19cm long and 13cm wide in Altay, Xinjiang Uygur autonomous region, Nov
25, 2010. Australia is the home for nuggets, accouring for 80 percent of nuggets
found around the world and owning the world's biggest rough gold weighing
235.87kg.
New HK$1,000 banknote raises the
'bar' on security - The new banknote features a horizontal bar that glows and
appears to move when the note is tilted to make it more difficult to copy. For
money-mad Hong Kong, it seems a simple banknote just isn't enough. The next
batch of new notes will feature an eye-catching, moving horizontal bar feature
in the top right-hand corner. When users tilt the banknote, the glowing bar
appears to roll up and down. Officials say it will be inserted at a cost, but
will make the bills more difficult to copy. The device has been used for the
first time this year in some Pacific Ocean islands and African countries. The
mainland has also used it on commemorative notes, but no Western countries have
so far used the technology. Hong Kong Note Printing Limited general manager
Francis Lau said: "Not many have adopted this feature because it's new. Special
machines and inks are required and that can add to costs." Nevertheless, Hong
Kong will press ahead with the more expensive option. "It's harder for people to
make a counterfeit," Lau said. "It is also more user-friendly for Hongkongers
because they can see the moving bar with their bare eyes." The bill issue will
start with a new $1,000 note on December 7, followed by the $500 notes next
year. Lau hoped they would be ready before the Lunar New Year, but the exact
release date has yet to be confirmed. The issue will pump 100 million HK$500
bills and 70 million HK$1,000 bills into the economy. It is the first major
revamp of the notes since 2003. There will also be new $20, $50 and $100 notes
in the next two years, but the plastic $10 note will stay as is. Lau said the
latest printing technologies will be used and the new banknotes will have the
same colors and similar graphic themes as those currently in circulation. But
they will be armed with more advanced security features. Each note will cost 60
HK cents to print, or an additional 10 HK cents, he said. Other features include
a standardised enhanced watermark of a bauhinia on all notes printed by the
three issuers - Standard Chartered Bank, HSBC (SEHK: 0005) and Bank of China. A
windowed metallic thread on the back of the notes will also change its color
from magenta to green when the bill is tilted. Thicker paper will be used and
while current ones have a life span of three to five years, circulation time for
the new ones could be a third longer, Lau said. Some Hongkongers will be
disappointed there will be no new $20 or $50 notes ready to put into red packets
next Lunar New Year. But Lau said the issuers have a stock of "old" notes ready
for red packets that were printed previously but have not yet been circulated.
Ocean Park sees record
attendance and revenues - Tourists queue up inside the park. Chairman Allan
Zeman and park mascot Whiskers the sea lion must be sharing a smile after seeing
Ocean Park hit a record 5.1 million visitors and HK$986 million in revenue in
the past year. The aggressive home-grown theme park also planned to stretch its
closing time from 6pm to 7.30pm early next year, following the opening of its
Aqua City with music and firework shows after dark, its spokeswoman said. The
extended hours will compete with those of rival Disneyland, which closes at 8pm.
Through June 30, Ocean Park generated a yearly profit of HK$82 million, after
deducting HK$33.8 million in interest payments to its commercial lenders and
HK$137.6 million in depreciation and write-offs, according to its latest annual
report released yesterday. Its total annual income was HK$986 million through
June of this year. Last year's profit was HK$98.6 million, as Ocean Park
shouldered only HK$8.3 million in financial costs, the spokeswoman explained.
Ocean Park has set new attendance records six times in seven years, with
mainland visitors accounting for almost 53 per cent of all attendance. The
latest figure was a jump of 6 per cent from around 4.8 million visitors for last
year. The spokeswoman attributed the rise in revenue to the increase in
visitors, which boosted ticket sales as well as food, beverage and souvenir
purchases. She said staff had grown by 60 per cent, to 1,300, compared with 800
back in 2006. The still-expanding park will hire an extra 650 people in the next
couple of years. Legislator Professor Patrick Lau Sau-shing, who is also a
member of Ocean Park's board, told the Legislative Council yesterday that the
Hotel Development Project was proceeding smoothly. Tenders for the Ocean Hotel
and Fisherman's Wharf Hotel were under review and details would be shared with
the public once an award had been made, he said. Ocean Park took note of its
strong reliance on customers from the mainland, saying in a statement yesterday
that it had "strengthened its presence on the mainland by opening an office in
Beijing, its third representative office on the mainland, and by conducting
trade and media visits to key cities, such as Shenzhen, Guangzhou, Shanghai and
Changsha . Other major source markets that the park visited last year include
Korea, Taiwan, Malaysia, Singapore, the Philippines and India." The park also
launched "the world's first-ever reciprocal admission discount programme for
theme parks, zoos and aquariums", known as the World Attraction Fun Deal, the
statement said. Regarding Hong Kong Disneyland, the South China Morning Post (SEHK:
0583, announcements, news) reported earlier that the rising yuan was not a big
problem for Disney, but the city's many infrastructure projects were pushing up
demand - and cost - for construction materials, including cement and steel.
Costs in other areas would be cut so that Disney's expansion budget would not be
exceeded, but the park had no plans to raise entry fees, a Disneyland insider
said. Profitability - as measured by earnings before interest, taxes,
depreciation and amortisation - was expected to return this year after a HK$70
million loss a year ago, according to the insider.
Gold medal-winning veteran cyclist Wong Kam-po passionately appealed yesterday
to the public to support Hong Kong's bid to host the 2023 Asian Games. Wong told
Chief Executive Donald Tsang Yam- kuen and local sports supremo Timothy Fok Tsun-ting
that the SAR should set its sights on the event. "Even if you don't bid for the
hosting rights, it doesn't matter. Please tell people the reasons why you don't
bid for it," Wong said in Guangzhou. "Some may point out livelihood or [other]
tentative issues. But we should set the direction [to host the Games]. What I
don't want to see is that when Singapore and Macau bid for it, we then opt to
join in the race to save face." Wong, again swarmed by the media, defended his
men's road race title at the 2010 Games in Guangzhou on Monday. Earlier this
month, a planning sub-committee chaired by Fok slashed its proposed budget for
the 2023 bid by more than half to less than HK$6 billion, from the original
estimate of HK$13.7 billion to HK$14.5 billion. Public consultation on the bid
closes next Wednesday. Meanwhile, Tsang asked Wong to pass on his regards and
support to cyclists Jamie Wong Wan- yiu and Diao Xiaojuan, who were both injured
in last week's women's points race although plucky Wong went on to take silver
in the event. Jamie Wong finished 15th in the women's 100-kilometer individual
road race yesterday, while teammate Diao withdrew in mid-competition. "I am
relieved to have safely finished the race ... but I regret failing to finish in
the top eight," Wong said. The pair took heavy tumbles when several riders
smashed into one another last Tuesday. Wong managed to get back on her bike and
complete the race, but it later emerged she had fractured a rib in the pile-up.
Diao, who dislocated her left shoulder, was immediately taken to hospital. After
cheering for Wong and Diao in the women's road race yesterday, Tsang went to the
rugby field to watch the SAR team claim silver before returning to Hong Kong in
the afternoon.
Cheung Kong Holdings (0001), one of Hong
Kong's largest developers, said it will help homebuyers acquire second mortgages
from designated banks. The move is aimed at easing the burden on buyers who,
after fresh government rules revealed last Friday, have to make a 40 percent
downpayment for flats priced at HK$8 million and above. Prior to the new
measures, only a 30 percent downpayment was required for the same flats. "The
banks have already agreed on the terms to provide such loans for buyers for
Festival City II," said real estate director William Kwok Chi-wai. Most units at
the firm's Tai Wai project are priced above HK$8 million. Cheung Kong (0001) is
now seeking permission from authorities to raise the size of secondary mortgages
to 20 percent of a unit's value, up from 10 percent at present. Thus, the actual
downpayment for a HK$8 million flat would be 20 percent, as opposed to 40
percent required under the new rules. If permission is granted, the developer's
designated banks will offer second mortgages at prime minus 2-3 percent, Kwok
said. "As a developer, we just wish to help those potential buyers who are
suddenly short on their downpayment owing to the new measures," he said. "We are
not a rebelling against the [government's] measures." Kwok said 91 percent of
buyers at Festival City II needed a mortgage, but only 5 percent also required a
second one. Property agents, however, were aghast. "It is completely goes
against the government's property price curbs," said Hendrick Leung Lee-chung, a
director and general manager of Centaline Finance. "The government has to
clarify [what the purpose of its measures are] before secondary mortgages
becomes a trend," Leung added. If the government really wants to help end users,
it should beef up supply, such as building more public housing, said Henry Cheng
Kar-shun, managing director of New World Development (0017).
E-mails to ministers? They will just
ignore you - You know those e-mail addresses of our top bureaucrats? You can
find them in the online phone directory of government officials. They're there
to make you think our officials are close to the people who pay their exorbitant
salaries. They want you to think you can reach them if you want to. But don't
waste your time. It's all bull poop. Public Eye sent an e-mail to Secretary for
Development Carrie Lam Cheng Yuet-ngor. Within minutes came this auto reply:
"This message is to acknowledge receipt of your e-mail message. Thank you." We
got two of those, one from her personal e-mail and the other from her bureau's
e-mail. So we waited for a proper response ... and we waited ... and waited.
We're still waiting, nine days later. The same thing happened when we e-mailed
Secretary for Security Ambrose Lee Siu-kwong. That was many months ago. We're
still waiting. Well, at least we got auto replies. One reader told us he didn't
even get that when he wrote a letter to Lam. But let's give her the benefit of
the doubt. Maybe she was away in cloud cuckoo land at the time. Or maybe she was
simply too exhausted peering at the people from inside her chauffeured car.
President Hu Jintao has told our leaders more than once to listen to the voices
of the people. Hu may not understand that when you live in cloud cuckoo land the
only voices you hear are your own. And those of the cuckoos, of course.
Volvo drives ahead in China - A
Chinese construction worker in a Volvo AB front-end loader digs in preparation
for the construction of a highway near Khunjerab, Pakistan. Volvo's investments
in China will expand its production and technology centers in the country.
Construction equipment firm hopes to tap into emerging Asian economies - Swedish
construction equipment provider Volvo Group is planning to invest more than $100
million in the expansion of products for emerging markets, most of it going to
China, said the company's chief executive. "Volvo is committed to supporting our
capacity and product offering in China and throughout Asia," said Olof Persson,
president and chief executive of Volvo Construction Equipment, on Tuesday. "We
will achieve this by a comprehensive program of investments in our Asian
industrial operations, a strengthening of our dealer network, and an expansion
of our products that are more closely tailored to the specific needs of
customers in this region," said Persson at Bauma China, the biennial Asian
construction equipment exhibition held in Shanghai. The company will set up a
$30 million Volvo Technology Center in Jinan, Shandong province, and invest $50
million into expanding its joint venture production facilities in Linyi,
Shandong province, by the end of 2012. The spending comes on top of the $30
million in investment made in the Volvo excavator facility in Shanghai since
2003. "Our business in Asia has doubled this year alone, with China as the
pillar contributor," said Persson. The company's excavator business has
increased by 135 percent this year. "We must recognize the needs of emerging
markets led by China, which requires premium global products offering increased
performance and productivity. There is a large proportion of customers who
require reliable competitive equipment," he said. The Chinese government
announced an investment of 4 trillion yuan ($602 billion) to stimulate the
domestic economy in late 2008, with 83 percent of the package going to
infrastructure construction. Booming demand led to a boost in the production of
construction equipment in China to more than 234,000 units in 2010, accounting
for more than half of the world's total. Statistics show that public
infrastructure spending in China will grow by nearly 160 percent in the next
five years, from the current 2.6 trillion yuan a year to 6.7 trillion yuan in
2015. Persson told China Daily that Volvo Group will continue to support the
local premium customer segment with its established Volvo brand. The company's
Shandong Lingong brand, a joint venture in which Volvo holds a 70 percent stake,
will serve the larger mass market. "Volvo is well positioned in China to
capitalize on the huge market opportunity and growth potential," said Persson.
"Our dual brand approach offers a unique advantage to meet the needs of a much
wider customer base. We will support this approach with products dedicated to
this market, using local Chinese knowledge and leveraging an expanded Asian
manufacturing footprint," he said.
US, China at odds over North Korea
talks - US special envoy for North Korea Stephen Bosworth reads a statement to
reporters before leaving his hotel in Beijing on Wednesday. A US envoy called on
Wednesday for international condemnation of North Korea over its shelling of a
South Korean island, a day after he ruled out resuming six-nation nuclear
disarmament talks with the North while it works on a new uranium facility.
Washington’s reluctance to resume the talks is at odds with China’s position,
which is keen to get back to discussions as soon as possible. Stephen Bosworth
has been conducting hurried consultations with North Korea’s neighbours,
including China, after a US nuclear scientist reported visiting a new
sophisticated uranium enrichment plant that could improve North Korea’s ability
to make and deliver nuclear weapons. The situation was made more critical after
North Korea on Tuesday shelled a populated South Korean island and the South
returned fire.
Liu Xiang wins men's 110m hurdles gold at
Asian Games - Liu Xiang of China won the gold medal of men's 110m hurdles in a
season best of 13.09 at the Asian Games on Wednesday.
A resident harvests vegetables
grown on her rooftop balcony in Hefei, the capital of East China's Anhui
province on Nov 23, 2010. City residents are joining the increasing number of
people who are growing vegetables on their balcony to cut spending and enjoy
pollution-free vegetables.
Property measures
inspection launched - Implementation of real estate policy to be checked in
nationwide blitz - China's two major ministries in charge of housing development
are organizing a large-scale inspection across the country to check the
implementation of existing real estate policies, paving the way for a proper
adjustment for the next stage. The joint inspection, carried out by the Ministry
of Housing and Urban-Rural Development and the Ministry of Land and Resources,
will focus on local government's efforts in ensuring land supply, the
construction of economically affordable housing and the cleaning-up of idle land
parcels, according to industry sources. "Such an extensive inspection will also
lay the ground for an accountability system for local government," said Lin Lei,
marketing chief of the United States-based real estate brokerage firm Century
21st. According to the latest round of policy tightening, launched in September,
local governments will be held responsible for any negligence in the
implementation of the central government's real estate policies. The recent plan
from the Ministry of Land and Resources show that the country's land supply will
reach 180,000 hectares this year, an increase of 135 percent on the 2009
figures. For Liao Yonglin, director of the land-usage department at the Ministry
of Land and Resources, the nationwide check will help the ministry decide
whether to further increase land supply for 2011. "So far, the land supply plan
is going forward as expected," Liao was quoted as saying by China Business News.
Meanwhile, the China Banking Regulatory Commission has set up a special team to
inspect the implementation of new mortgage policies in different cities.
According to Nie Meisheng, director of the Chamber of Real Estate Developers in
the All-China Federation of Industry and Commerce, the country's real estate
tightening policy will continue into next year. "Property developers should not
expect the tightening to end in the short term. In fact, it will probably remain
a constant factor as the strengthening and improvement of policy will be a
keynote in China's 12th Five-Year Plan (2011-2015)," Nie said. As a result of
the continuous tightening, the property market in some cities has shown signs of
cooling. According to the Beijing Property Transaction website, the average
price of new projects opened in November fell 20 percent month-on-month to
16,662 yuan ($2,486) a square meter, hitting a six-month low. But in Shanghai,
the trading price of property reversed a five-week drop and rose as high as
21,283 yuan a sq m during the week of Nov 15 to 21, according to report released
by the Shanghai-based Uwin Real Estate Research Center. Compared with first-tier
cities, property sales in second- and third-tier cities remain firm. Han Fei,
marketing manger of Shimao Group, said that among four residential projects the
company launched in Beijing, Tianjin, Yantai and Shenyang, the sales performance
in the latter three cities was better than Beijing. "The tightening policies'
impact on second- and third-tier cities is comparatively smaller, and more
investors are now turning their eyes to smaller cities," said Han.
Ancient merchant ship
unearthed in E China - Relics experts inspect an excavation site in Heze, East
China's Shandong province on Nov 23, 2010. An ancient merchant ship built during
the Yuan Dynasty (1271-1368), with a height of 1.8 meters, length of 21 meters
and breadth of 5 meters, was unearthed and dug out from a construction site, and
about 110 other relics were discovered nearby on Sept 20, 2010.
A piece of traditional porcelain
unearthed from an ancient ship is displayed in Heze, East China's Shandong
province on Nov 23, 2010.
US carrier sets off for Korean
war drill - Ships on a collision course with Beijing - A US aircraft carrier is
leading an armada of warships into the Yellow Sea after Tuesday's fatal North
Korean artillery barrage. Chinese analysts and regional diplomats are expecting
Beijing to protest at the presence of the USS George Washington for four days of
US-South Korean war games starting from Sunday. They warn China is unlikely to
condemn North Korea for the attack that killed two Marines and two civilians,
pointing to lingering territorial disputes. Beijing yesterday urged North and
South Korea to show "calm and restraint" and engage in talks as quickly as
possible to avoid an escalation of tensions. "China takes this incident very
seriously, and expresses pain and regret at the loss of life and property, and
we feel anxious about developments," Foreign Ministry spokesman Hong Lei said.
"China strongly urges both North and South Korea to exercise calm and restraint,
and as quickly as possible engage in dialogue and contacts." He said China
"opposes any actions harmful to the peace and stability" of the Korean
Peninsula.
Li & Fung expands in US with takeover
of Oxford Apparel - Trading firm Li & Fung has agreed to take over American
branded goods producer Oxford Apparel in a US$121.7 million deal, which will
enlarge the group's portfolio in the United States. Li & Fung executive director
Bruce Rockowitz said yesterday the deal would fill the missing piece of the
jigsaw of the portfolio, which at present consists only of women's and
children's wear. It is one of the group's biggest acquisitions in the US. "The
Oxford deal opens a whole new area for us," Rockowitz said in an interview
yesterday. "It is a higher-margin business than the sourcing ones." The deal
will see Li & Fung take charge of designing, distributing and branding Oxford
Apparel's branded and private label products including men's dress shirts,
sports shirts, casual slacks, outerwear, sweaters, jeans and swimwear and
western wear. The products are sold in department stores and through catalogue
and online retailers in the US. Li & Fung, which faces higher sourcing costs and
slow economic recovery in its core US market, is drumming up acquisitions to
meet its target of having US$20 billion in turnover and US$1 billion in core
operating profit by the end of next month. In the first six months of this year,
the group's turnover stood at US$6.64 billion and the core operating profit was
US$337.82 million. To add value to its services and fend off competition, Li &
Fung said it would launch contemporary lifestyle collections with celebrities
Jennifer Lopez and Marc Anthony by sub-licensing the products exclusively to
Kohl's Department Store. The collections contain women's and men's fashion,
accessories and will be extended into home products eventually. Li & Fung shares
dropped HK$1, or 2.3 per cent, to HK$43 yesterday. The Hang Seng Index tumbled
627.88 points, or 2.7 per cent, to 22,896.14.
DFS Group, a leading duty-free
retailer, has leased 45,000 square feet of retail space at Hysan Place, formerly
the Hennessy Centre, in Causeway Bay. The company yesterday said it had reached
agreement with Hysan Development (SEHK: 0014) to open a concept store at Hysan
Place, which was expected to be ready in the second quarter of 2012. DFS will be
one of the anchor tenants of the centre. The shop will be designed and stocked
to appeal to younger shoppers, with the ground floor featuring an 18,000 sq ft
beauty store. Explaining the reasons for picking the location, Ed Brennan, the
chairman of DFS, said: "Causeway Bay is the leading shopping district for local
residents in Hong Kong, and a major attraction for tourists." DFS operates two
outlets in Tsim Sha Tsui and a shop at Hong Kong International Airport. The
store at Hysan Place will be its first on Hong Kong Island. Hennessy Centre
previously was one of the flagship properties in Hysan Development's portfolio.
Japanese department store Mitsukoshi was the anchor tenant at the shopping
centre for 25 years until Hysan Development demolished the building in 2006 and
redeveloped it into Hysan Place. The project, located at 500 Hennessy Road, will
be a 40-storey office and retail building, with a gross floor area of 710,000 sq
ft. It will provide at least 15 retail floors, which are also scheduled to open
in the second quarter of 2012. Helen Mak Hoi-lun, the director of retail
services at property consultant Colliers International, said: "DFS Group has not
had stores in Hong Kong for many years." She said the company's latest expansion
in Causeway Bay showed that retailers were optimistic. With the increase in
mainland visitors, she said, retail rents had grown every month so far this
year. "Retail rents in the four shopping districts - Tsim Sha Tsui, Causeway
Bay, Central and Mong Kok - have risen 15 to 20 per cent so far this year. Shop
rents in prime locations have all increased more than 20 per cent, better than
our previous forecast," she said. Mak expects the growth in retail rents in core
shopping areas to continue next year.
Speculators may switch to office
sector - As curbs on flats hit home, analysts say capital will be pumped into
commercial market - New measures to curb residential property speculation have
raised concerns about the risk of price inflation in the commercial sector. Hit
by higher stamp duties levied on housing gains, some speculators may now decide
to focus on short-term trades in the office and commercial markets - a response
that could throw into doubt the government's strategy to cool property prices.
While accepting that the stamp duties on quick resales introduced last week will
slow the residential sector in the near term, investors and analysts believe
capital will continue to flow into Hong Kong and property will remain a desired
asset class. "Liquidity is the fundamental that the government cannot change,"
said Goodwin Gaw, the founder of Gaw Capital, which oversees private equity
funds of more than US$1 billion. Given the ongoing strong liquidity,
strata-title grade A office properties would be in favour in the short term
since gains made on these investments will not be subjected to the additional
stamp duty imposed on housing, Gaw said. The government on Friday announced it
would levy an additional stamp duty on resale properties held for less than two
years, with rates varying from 5 to 15 per cent of property values, depending on
the holding period. This is in addition to the current stamp duty, capped at
4.25 per cent. The Hong Kong Monetary Authority also lowered maximum
loan-to-valuation ratios for residential, non-residential and property under
company names. The measures have had an immediate impact on demand, with
transactions of secondary-market homes in 10 major housing estates falling
nearly 80 per cent to just 14 completed deals at the weekend. In some popular
estates, such as Taikoo Shing, Kornhill and South Horizons, there were no deals
done at all.
Trial of TVB executives set
for next June - TVB general manager Stephen Chan Chi-wan leaves the District
Court in Wan Chai on Tuesday. Television Broadcasts (SEHK: 0511) Limited (TVB)
general manager Stephen Chan Chi-wan and two other defendants on Tuesday pleaded
not guilty in the District Court to accepting or offering advantages, and
conspiring to defraud TVB and its celebrities. A trial date for Chan, his former
assistant Edthancy Tseng Pei-kun, and TVB’s head of business development Wilson
Chan Wing-suen, has been set for June 21 next year, local media reported. The
three are each on bail of HK$100,000. The accused now face a total of five
charges brought by the Independent Commission Against Corruption (ICAC) after
prosecutors earlier this month decided to withdraw three further charges. The
withdrawn charges related to the acceptances of advantages of about HK$15,111 in
July 2009 and alternative counts of accepting or offering a bribe. Prosecutors
made the decision after reviewing evidence against Stephen Chan and Tseng, now
director of the Idea Empire Advertising and Production Company. The defendants
are prevented from talking to witnesses - who include celebrities Charmaine Sheh
Sze-man, Sharon Chan Man-chi, Skye Chan Sin-yeung - and TVB executives. The
trial is expected to last 20 days. A total of 30 witnesses will testify and 100
pages of documents will also be submitted to the court. Last Tuesday, Stephen
Chan was allowed to resume work at the television station - several months after
he and his two co-defendants were charged in a bribery and fraud case. TVB said
in a statement Stephen Chan would not be involved in managing or casting any
celebrities employed by the television station because the charges brought
against him by the ICAC relate to these activities.
Hong Kong's Mandarin Hotel to host
dinner costing nearly HK$7,000 (US$900) per head - The Mandarin Oriental said on
Tuesday it was planning to host a dinner costing nearly HK$7,000 per head.
US-born chef Thomas Keller is being flown in by the Mandarin Oriental to cook
for 450 diners – in what the hotel said would be Hong Kong’s most expensive meal
this year. A top-priced, 11-course dinner during Keller’s November 29 to
December 2 stay will set gourmands back HK6,888 each, excluding service.
Slightly more frugal diners can enjoy lunch for just over HK$2,000. The hotel
said it was flying over the three Michelin-starred chef, his seven-strong team
and crate loads of ingredients for the four days. Tables have been booked for
weeks, according to the hotel, which, in a statement, hails Keller’s food as “a
work of art,” adding that “diners can expect to enjoy an exceptional menu full
of flavour and life.” Keller, who runs the exclusive French Laundry and Per Se
in the US, is laying on a French-American menu that ranges from oysters, caviar
and truffles to chocolate brownies with wine to match. The cost of the
Mandarin’s Keller dinner is far from Asia’s most expensive. According to Forbes
Asia, which publishes an annual rich list, Bangkok’s Mezzaluna sold a 10-course
meal in 2007 for US$30,000 (HK$233,400) a head. Singapore’s Les Amis charges an
average of US$182 a head, while Tokyo’s Aragawa dishes up Kobe beef at US$800 a
pound, Forbes said on its website.
Wen, Putin seek to break deadlock over
gas prices - Premier Wen Jiabao leads his delegation prior to talks with Prime
Minister Vladimir Putin. The two leaders will also attend a 13-state summit that
aims to double the tiger population. Premier Wen Jiabao met Russian Prime
Minister Vladimir Putin in St Petersburg yesterday to try to settle a
long-running disagreement over gas pricing. Russia, the world's biggest energy
producer, is eager to increase sales of oil, gas and metals to the world's
fastest-growing big economy. But wrangling over gas prices has delayed
construction of a key gas pipeline to China. Wen and Putin, who also talked
briefly on Monday, met on the heels of Russian President Dmitry Medvedev's
three-day visit to China in September, when he and President Hu Jintao launched
a cross-border pipeline linking the world's biggest energy producer with the
world's largest energy consumer. According to the Kremlin, the oil that Russia
will send to its neighbour for 20 years starting from next year could be worth
US$150 billion. Russia says that China should pay prices similar to those that
Gazprom charges European customers, but Beijing wants a discount. The sides were
about US$100 per 1,000 cubic meters apart, according to Chinese officials last
week. "This topic will figure in the negotiations, but it is too early to speak
of any possible results," Putin spokesman Dmitry Peskov said. Russia is due to
start exporting crude oil to China next year via the new East Siberian-Pacific
Ocean pipeline. Gazprom will sell 30 billion cubic metres of gas per year to
China from 2015 via this route. Wen and Putin will also attend a 13-state summit
that aims to save the tiger and double the big cat's population by 2022. Peskov
said that 11 agreements, ranging from oil supplies and refining to intellectual
property and border issues, would be signed during Wen's visit. "A large package
of intergovernmental, interministerial and commercial agreements is being
prepared for signing," the Russian government said, adding that the leaders
would discuss joint work in trade, science and the environment. Putin said after
yesterday's meeting that the Chinese yuan would start trading on Russian
exchanges at the start of next month after China allowed the yuan to trade
against the rouble in the interbank market from Monday. "This is a serious step
towards creating better conditions for trade and economic relations," Putin
said. In the wake of the global financial crisis, China and Russia have called
for the US dollar's role in the financial system to be diluted. OAO Sberbank,
Russia's largest lender, had reached an agreement with Export-Import Bank of
China on opening a US$2 billion credit line, Putin said. The money would be used
to finance "major joint economic projects," he said. Russia's Atomstroyexport
nuclear reactor builder also signed a contract to build two more reactors at
China's Tianwan nuclear power plant. Russia's first 1,000MW nuclear reactor at
Tianwan in Lianyungang , Jiangsu , began operation in June 2007 after numerous
delays, while a second went into operation in September that year. Russia has
been competing for a slice of China's nuclear power market as Beijing plans an
increase in the number of its nuclear power stations to reduce its dependence on
coal. China overtook Germany as Russia's second-largest trading partner in the
first six months.
Chinese travelers arrive in Los
Angels on explore-the-world trip by driving China-made Dongfeng Passenger
Vehicle - A group of Chinese travelers have arrived in Los Angeles in their
effort to "explore the world" by driving through more than 20 countries from
China. The "explore the world" event is sponsored by Dongfeng Passenger Vehicle
Company in China. "I feel proud to be a Chinese driving a China made car to
explore the world," said Yu Xiaofeng who drove a Dongfe ng S30 all the way to
Los Angeles from Mexico City. Before Yu and his group, no other China made cars
have ever been driven on the freeways in the United States. "I am proud of the
Chinese made Dongfeng car," Yu told a group of reporters in a hotel close to the
Los Angeles International Airport (LAX) Monday, adding that he has experienced
no mechanical problems from Mexico City to the U.S. With the English sign of
"Explore the World", two Dongfeng cars have met no trouble all the way from
Texas to Phoenix, from Salt Lake City to Las Vegas and from San Francisco to Los
Angeles. "Those cars have proved to be as good as other cars running on the
freeways in the U.S. and other countries," said Yu, adding that some times he
has to drive over 1,000 kilometers a day under poor weather conditions, and
sometimes on very bad road conditions in countries such as Kazakhstan. The only
trouble he had was in Kazakhstan when he had flat tires on both sides at night
because of the poor road condition.
Chinese 100m sprinter makes history at Asiad -
Hosts China claimed a historic gold medal at Asiad on Monday as sprinter Lao Yi
became the first Chinese to lift the men's 100 meters title at Asian Games. With
the absence of Qatar's Samuel Francis, who set an Asian record of 9.99 seconds
in 2007, Lao was the favorite of the race and clocked 10.24 seconds to win the
title. Francis was disqualified in the semifinals due to false start earlier
Monday. "I am very excited," said the winner. "I did a lot of preparation before
the Asian games. I had expected to break the national record, but I failed this
time."
NATO chief Secretary General
Anders Fogh Rasmussen eyes closer ties with China - NATO Secretary General
Anders Fogh Rasmussen (R) speaks during an exclusive interview with Xinhua News
Agency at the NATO headquarters in Brussels, capital of Belgium, on Nov. 22,
2010. Though NATO does not mention China in its new Strategic Concept approved
just days ago, NATO's chief says he looks forward to strengthening ties between
China and the Western military alliance. In an exclusive interview with Xinhua
on Monday, NATO Secretary General Anders Fogh Rasmussen said NATO and China
should talk and consult with each other in a number of areas as China becomes an
emerging force. As NATO reaffirms its commitment to the principles of the U.N.
Charter and China is one of the permanent members of the U.N. Security Council,
"more regular contacts" should be conducted between NATO and China in the
future, he said. NATO has gradually stepped up its ties with China in recent
years and NATO Deputy Secretary General Claudio Bisogniero visited China last
year, he said. "I would very much like to further operate these political
consultations. And I think that could be the next step," the NATO chief said. On
the Strategic Concept which was unveiled at the Lisbon summit three days ago and
is to guide NATO for the next decade, he said that compared with the concept
unveiled in 1999, NATO members pledged to improve their capacities to counter
emerging threats coming from missiles, cyber and terrorism. Realizing that there
is no military solutions solely to conflicts, NATO needs to enhance partnerships
and engage with major players around the globe, Fogh Rasmussen said.
China order eases Rolls-Royce woes -
A visitor attends an aviation exhibition during the Airshow China 2010 in Zhuhai
on November 17. British engine maker Rolls-Royce won a US$1.8 billion order from
Air China (SEHK: 0753), offering some respite to the company which had been hit
by safety fears over another of its engines. The world’s second-largest maker of
aircraft engines said on Monday it had received an order from Air China to
provide Trent XWB engines for 10 Airbus A350 XWB aircraft and Trent 700 engines
for 10 Airbus A330 planes. Those are different engines to the Trent 900, one of
which failed on a Qantas Airbus A380 flight this month, forcing the aircraft to
make an emergency landing. The Trent XWB is the only engine that can power the
Airbus A350 XWB planes, making the order an inevitable follow-on from the
purchase of such an aircraft. Still, the company will hope today’s order will
ease some of the negative publicity surrounding it following criticism by Qantas
and others over its handling of the QF32 flight. It is under pressure to clarify
how many Airbus A380 planes must have their engines replaced and how long that
will take. “Bearing in mind confidence is at a low then any good news has to be
positive for the price. We should welcome it for what it is, a very large order
for a well-proven set of engines,” said BGC analyst Howard Wheeldon. “In
troubled times such as this, it’s super news and it’s great news for the UK in
terms of exports as well,” he added. Earlier in November, Rolls-Royce won a
US$1.2 billion order from China Eastern Airlines (SEHK: 0670). That deal
coincided with a trip to Beijing by British Prime Minister David Cameron, who is
looking to double Britain’s trade with China by 2015. Rolls-Royce is already
well established in China, where it has a 56 per cent share of the market for
large civil aero-engines. The company has had more than US$4.5 billion worth of
orders for Trent 700 engines since the start of July.
Liu maintains gold medal monopoly in
women's walk - China's Liu Hong, left, celebrates with bronze medal winner Li
Yanfei after clinching the gold medal in the women's 20km walk in Guangzhou on
Tuesday. Liu Hong defended her 20-kilometre walking title in style on Tuesday to
maintain China's gold medal monopoly in women's race since it was introduced to
the Asian Games in 1986. Local athlete Liu, who took bronze at the last year
Berlin World Championships a year after finishing fourth at the Beijing
Olympics, clocked a season’s best of 1 hour 30 minutes and 6 seconds (1:30.06)
on the course outside the Aota Main Stadium to win gold. Japan’s Masumi Fuchise
took silver in 1:30.34, with Li Yanfei, also of China, claiming bronze in
1:32.34 in a race which featured just six competitors. “We were well prepared,”
said Liu, who with her teammates have been training under the watchful eye of
legendary Italian coach Sandro Damilano in northern Italy. “We can predict all
the conditions that might happen in the competition so I’m not surprised to get
two red cards,” she said of the warnings she received for failing to keep
minimum contact with the track. “It’s quite normal in race walking competition.
We have a full plan and I was confident.” The mainland pair, Fuchise and the
second Japanese competitor Mayumi Kawasaki quickly built up a lead on the two
other competitors in the race, South Korean Jeon Yeong-eun and Tun Kay Khing Myo
Tun of Myanmar. The quartet went through the 6-kilometre mark neck-and-neck, but
by the halfway mark Kawasaki had fallen half a minute off the lead pace of 45
minutes 12 seconds. Two kilometres further on and it was Li, the East Asian
Games champion, fifth this year’s world race walking cup in Chihauhau, who fell
out of gold medal contention, slipping 17 seconds back from the lead duo of Liu
and Fuchise. Fuchise, who was seventh at the Berlin worlds, stuck with the local
favourite until the 16-kilometre mark. But the 23-year-old Liu then moved up a
gear and motored away from the Japanese walker, putting 15 seconds between the
two of them in the space of 2 kilometres. “In the first half, I closely followed
Fuchise and in the last four kilometres I began to go at my own pace,” Liu said.
Liu’s tactics mirrored exactly those of her teammate Wang Hao, whose spurt with
4 kilometres to go ensured him gold in the men’s 20-kilometre race walking event
on Sunday. Inside the Aota stadium, Uzbek Yuliya Tarasova remained in pole
position in the heptathlon standings with just one of the seven events left, the
800 metres, which will be raced in the evening session. The 24-year-old Asian
champion picked up from where she left off on Monday after top-scoring in the
first four events, dominating the opening long jump with best of 6.24 metres.
Tarasova, whose overnight total of 3,570 points was 353 clear of Japan’s Yuki
Nakata, then managed a best of 39.18 metres in the javelin to take her points
tally to 5,146. Nakata threw furthest in the javelin, her effort of 44.67 metres
consolidating her second place on 4,814 points, now 332 off Tarasova. India’s
Pramila Gudandda sat in third spot on 4,745 after throwing 41.61 metres in the
javelin. On the opening day of competition, Tarasova upstaged all her rivals by
clocking 14.02 seconds for the 100 metres hurdles, managing 1.74 metres in the
high jump and 12.92 metres in the shot put, and timing an impressive 24.12
seconds in the 200 metres.
High-end house prices in Shanghai and
Beijing are forecast to overtake values in Hong Kong in five to 10 years time,
according to UBS. Shanghai and Beijing's luxury home prices may increase 15 per
cent each year to overtake Hong Kong in the next five to 10 years, Joe Zhang,
deputy head of China investment banking at UBS, said. The mainland's tightening
measures would not stop prices from rising and might only delay the gains, he
said. Monetary policies might also be eased over time to avoid a rise in
unemployment, Zhang said. "It doesn't matter what the government is doing,
whether we have 100 new measures or 10,000 new measures," he said. "In the long
term, all these are noises and will disappear, and only one variable matters -
money supply." The mainland, which last month raised interest rates for the
first time in three years, suspended mortgages for third-home purchases and
pledged to speed up trials of property taxes to restrain foreign capital and
cool property prices. The central bank also ordered lenders on Friday to set
aside larger reserves for the second time in two weeks, draining cash from the
financial system to limit inflation. The country's M2, the broadest money supply
measure, rose 19.3 per cent last month from a year earlier, the most since May.
Prices of luxury homes in Beijing and Shanghai, or the top 5 per cent to 10 per
cent of each market, will continue to climb as values of mid- and low-end real
estate were also rising, Zhang said. Home prices rose for a 17th month in
October gaining 8.6 per cent from a year earlier, the government said. Hong Kong
announced more measures on Friday to curb speculation after prices surged more
than 50 per cent since the start of last year. The city imposed extra stamp
duties and increased deposits for home purchases, a day after the International
Monetary Fund warned that asset inflation could derail the city's economy.
Residential home values in Hong Kong have jumped 52 per cent since the beginning
of 2009 and surpassed a 1997 peak, according to an index compiled by Centaline
Property Agency. The mainland is unlikely to introduce further property-specific
measures as the government shifts its policy focus to controlling inflation,
Citigroup said in a report last week. More than 1 trillion yuan (HK$1.17
trillion) would likely go into other areas if the government screened out
property investment and speculation demand, Citigroup forecast. There are signs
the government measures are starting to have an effect. The increase in October
home prices was the slowest in 10 months, official data showed, while sales
volume dropped 11 per cent.
Chinese premier holds talks
with Russian counterpart - Chinese Premier Wen Jiabao and his Russian
counterpart Vladmir Putin exchanged views on further expanding and deepening
bilateral ties.
A banner ad for switching
mobile carriers without changing numbers is seen at a China Unicom outlet in
Haikou, south China's Hainan Province. Hainan and Tianjin Municipality yesterday
launched the service that allows mobile phone users to switch among different
carriers with numbers remaining unchanged. The move, expected to encourage
competition in the telecommunications market, is the first time Chinese users
have access to "portable" numbers among different carriers. However, to protect
China's own 3G technology and industry, China Mobile's 3G users are not allowed
to switch, according to the Ministry of Industry and Information Technology.
Swan paradise in E China's Shandong - The lake, which is an ideal habitat for
swans in winter, attracts thousands of swans from Siberia every year to spend
winter.
A to-be-retired soldier pats his patrol dog at a farewell ceremony held at
Ningxia Paramilitary Police Corps in Yinchuan, Ningxia Hui autonomous region,
Nov 23, 2010. More than 160 soldiers of the corps are to be retired from
military service.
The
Ministry of Finance will sell 8 billon yuan (HK$9.33 billion) worth of sovereign
bonds in Hong Kong next Tuesday, starting with a tendering process by
institutional investors. p to 5 billion yuan will be allocated for institutional
investors in tenors of three, five and 10 years, with bidding carried out
through a coupon-based tender system for price discovery. The coupon yield for
each series of bonds will accordingly be set to the highest bid for interest
rates accepted during the competitive process, a Hong Kong Monetary Authority
spokesman said. The other 3 billion yuan will be allocated to retail investors
in two-year tenors through bank sales, the ministry said, without disclosing
details. This is the second yuan-denominated sovereign bond sale by the Ministry
of Finance in the local market, but the first time that a tender system will be
used for price discovery. Last time, in September 2009, all prices were set
through bookbuilding. The tender arrangement is a way to help set up a
transparent bidding system as well as create a better yield curve for the bond
market, the HKMA said. Institutional bidders need to send their bids through the
authority's Central Money markets Unit between 9.30am and 10.30 am next Tuesday.
Results and the final interest rate will be announced before 5pm the same day.
For the retail portion, the HKMA said it has not decided if the institutional
yield offered will be used as the sole reference. "Details would depend on the
Ministry of Finance's decision, which will be out soon," said Shou Fugang, chief
executive of the Bank of Communications Hong Kong - arranger of the bond sales.
Hong Kong's Secretary for Financial Services and the Treasury Ceajer Chan Ka-keung
said the government will hold further talks with the ministry to have it issue
bonds regularly in the territory. Analysts were cautious on the bonds. "Whether
the second sales of sovereign bonds in Hong Kong could activate the bond market
is too soon to tell," said Marshall Mays, founder of Emerging Alpha Advisors, a
fund management company covering 15 Asian markets. Bank of China Hong Kong
(2388), BoCom Hong Kong and the Industrial and Commercial Bank of China (Asia)
are joint lead managers and bookrunners for the retail portion of the bond
issue.
Error nets HK$1.5b bonus
for developer - Cheung Kong gets extra space, cheaper premium - Cheung Kong
(Holdings) (SEHK: 0001) gained an unexpected bonus in its redevelopment of the
historic Marine Police headquarters in Tsim Sha Tsui: an additional 1,310 square
meters of valuable floor space not counted in the original survey. And when the
government negotiated a deal with the company last year for it to pay a premium
for exceeding a limit on new construction during the site's makeover, it got
another bonus: a charge of HK$63,100 per square meter instead of the market
price of HK$1 million. In all, the property giant apparently netted a windfall
of HK$1.5 billion, a review of the project shows. In response to inquiries, the
Lands Department gave no details of how the premium was assessed. Neither did it
say why and how officials incorrectly measured the size of the historical
buildings in the first place. When Cheung Kong subsidiary Flying Snow won the
tender in May 2003 to revitalize the abandoned Grade 1 monument, the floor space
in the existing buildings was estimated at 4,300 square meters. But building
plans displayed for public inspection after completion of the project, now
dubbed 1881 Heritage, show the existing buildings contain 5,610 square meters -
almost a third more space than the original estimate. This astonished a leading
surveyor, who said these days mistakes of such magnitude are almost unheard of.
"If you're talking about surveys conducted decades ago, I can understand it
because the equipment used in those days was not as advanced as what we are
using today. But when the case is only a few years ago, I don't understand how
it happened," Charles Chan Chiu-kwok said. Chan, managing director at Savills
Valuation and Professional Services for Greater China, said the average price of
retail properties at Canton Road last year was HK$1 million per square metre,
making the extra space in the historical buildings worth more than HK$1.3
billion.
Controversy as Wong makes history - Korean
team cry foul as veteran HK cyclist claims third straight road-race gold - Wong
Kam-po became the most successful road cyclist in Asian Games history when he
won his third individual road-race title in controversial fashion yesterday,
becoming the only rider to successfully defend the title. South Korea's Park
Sung-baek, who was third at the Doha Games four years ago, was first across the
line in the 180-kilometre, nine-lap contest in Guangzhou, clocking four hours,
14 minutes and 54 seconds, and beating Wong in a photo-finish. But Wong
immediately raised his right hand to register a protest. A judges' review found
Park had interfered with Wong's sprint finish and the Korean was relegated to
19th place. Park's coach, Cho Keon-haeng, said the judges' committee was stacked
against his rider. "There are three to four referees from Hong Kong, and one or
two from China, which makes Chinese referees the largest proportion of the whole
officials' team," Cho said. "Even if Wong was not from Hong Kong, let's say he
was a Japanese rider, their final decision would still go against Korean riders,
as the chief judge is Japanese." Cho said his rider was innocent. "Park crossed
the finish line first He was just a bit off his original line and did not do it
on purpose. And why should a sprinter keep straight in the final moment anyway?
The wind was quite strong and changing direction. "They gave the medal to Wong
because he's from Hong Kong." Wong disagreed. "I knew that I had a good chance
to win because I have a fast enough sprint. Park was obviously swerving at the
end of the sprint, and I was sure he broke the rules." Wong said he was "a
little worried but confident" while waiting for the judges to consider the case.
"I didn't think too much during the wait," he said. "No matter what the result
was, even if I only got second place, I would have been pleased and would have
respected the judgment. I feel very happy in all." Takashi Miyazawa of Japan was
promoted to second place while the bronze went to China's Zou Rongxi. Wong, 37,
won the same event at the 1998 Bangkok Games and in 2006 in Doha. With a bronze
at the 2002 Pusan Games, he has now clinched four road-race medals in four
consecutive Asiads. No one else has won more than two medals in the event.
Wong's victory gave the Hong Kong delegation their eighth gold medal and their
fourth in cycling. While the victory was a perfect ending to Wong's fifth Asian
Games campaign - as a 24-year-old he took part in the 1994 Games in Hiroshima,
where he came fourth behind three riders from Kazakhstan - he was undecided on
whether he would take part in the same event at the Incheon Games in 2014. "I
will continue to ride if I am capable of doing so," he said. "I don't think age
is a big problem if I enjoy riding. But I would also like to say the youngsters
are coming up very strongly in the Hong Kong team and many of them are ready to
take over the baton from me." Hong Kong coach Shen Jinkang said he considered
Wong to be a true hero after watching the veteran lift his third Asian Games
title. "He is 37 years old and I don't know how many cyclists here today are
this age," Shen said. "When Wong won his first title in 1998, he was referred to
by the media as the `Asian Cycling King'. Honestly speaking, he did not live up
to that reputation until he won his third title here today. It is an
unbelievable victory for a cyclist at such an age. "I was a bit worried about
his fitness as he made at least five attacks throughout the race, but though all
these efforts were in vain, he was able to make a strong sprint to the finish.
"This was the most difficult race of his three victories, and he once again
provides a great role model as a true sportsman for many Hong Kong people."
Wong's next target will be qualification for the London Olympics in 2012, and
with the points race - in which he won silver in Guangzhou - being dropped from
the Olympic program, he intends to focus on the individual road race.
Directors win for good governance -
Justin Chiu Kwok-hung won as a non-executive director of a non-Hang Seng Index
company at the Institute of Directors awards yesterday. The Hong Kong Institute
of Directors unveiled the winners of its directors of the year awards yesterday,
highlighting the positive relationship between a company's good governance and
its performance. "Companies with a good corporate governance standard are among
the first to stand out and reap the fruit of prosperous times," said Kelvin
Wong, the institute's chairman. "The awards wish to honor those who achieve
sustainable growth adhering to an extremely high standard of corporate
governance in today's vastly competitive business environment." Among companies
listed on the Hang Seng Index, China Resources Enterprise (SEHK: 0291) and
Esprit Holdings (SEHK: 0330) won in the corporate boards category. Edward Chow
Kwong-fai of Cosco Pacific (SEHK: 1199) was named a winner in the non-executive
director category. Thomas Jefferson Wu, managing director of Hopewell Holdings (SEHK:
0054), and Lu Dongshang, chairman of Zhaojin Mining Industry, were among the
winners in the executive director category for non-Hang Seng Index constituents.
Justin Chiu Kwok-hung, chairman of ARA Asset Management (Fortune), won as a
non-executive director. It was the 10th year the awards were held, and 12
winners were announced overall. The theme for this year was "Better Corporate
Performance Through Strengthened Corporate Governance". Next year's theme will
be "Enhance Director Professionalism through Board Self-Appraisal System".
Professor Chan Ka-keung, the secretary for financial services and the treasury,
said effective corporate governance by Hong Kong's boards and directors plays a
crucial role in the city's development as a financial hub. "Thanks to our robust
regulatory regime, Hong Kong's local financial system has emerged from this
global financial crisis without any systemic problem," he said. "We will
continue to improve our regulatory framework to enhance Hong Kong's status as a
first-class international market."
Brokers will have to get used to
taking shorter lunch breaks and going to work earlier after the Hong Kong stock
exchange yesterday announced it would extend trading hours from March next year.
Securities dealers will take an hour-and-a-half lunch break from March 7 next
year and around a year after will just have an hour to finish their lunch. They
currently have a two-hour break from 12.30pm. They will also have to start work
earlier because trading hours will begin at 9.30am instead of 10am. Extending
the trading hours will help the exchange stay competitive, Hong Kong Exchanges
and Clearing (SEHK: 0388, announcements, news) chairman Ronald Arculli told
reporters, adding that the decision to introduce longer trading hours had been
well received following consultation with the financial industry. Rather than
cutting the lunch break to just one hour next year straight away, Arculli said
it will be easier for everyone if it was reduced by half-hour next year and
another half-hour the year after. From March 7, 2011, trading will be from
9.30am to noon and then from 1.30pm until 4pm. And from 2012, trading begins at
9.30am until noon, starts again at 1pm and finishes at 4pm. If turnover goes up
significantly, the shareholders of the exchange including the government are
likely to be impressed with Charles Li Xiaojia, who has taken up the baton from
Paul Chow Man-yiu as chief executive since late last year and has been pushing
for reform of trading hours. Major markets such as the New York Stock Exchange
and Nasdaq trade for 6-1/2 hours a day. The Irish and Frankfurt exchanges, which
trade for 8-1/2 hours, have the longest opening hours. After the changes to
opening hours in Hong Kong are completed in 2012, the bourse will trade for
5-1/2 hours from the current four hours. Li wants Hong Kong markets to be more
closely aligned with the trading hours of Shanghai and Shenzhen bourses. Most
brokers have anticipated the change. There have been some protests over the
shorter lunch breaks and concern that longer trading hours may not really result
in higher stock turnover, however. Many fund managers and brokers use the long
midday break to discuss business with clients and opponents of the plan to
change trading hours worry it may disrupt opportunities to hold these meetings.
Christopher Cheung Wah-fung, chairman of the Hong Kong Securities Professionals
Association, said he supported the decision to have longer trading hours and
shorter lunch breaks. "I do think that introducing a one-hour lunch break
straight away would be pushing it a bit for many brokers," said Cheung. "It's
better to do it one step at a time and this would allow them to get used to it
and also we can see if turnover really changes as a result of longer trading
hours." Ricky Tam Siu-hing, the chairman of the Hong Kong Institute of
Investors, supported the decision to cut the lunch hour break because he said it
would bring the local market more in line with the trading hours of its regional
peers. "It can reduce volatility and make the [transition] from the morning
session to afternoon session smoother," Tam said. The Hong Kong market currently
lags the mainland and Japanese stock markets in reopening following the lunch
break. That has led to some knee-jerk trades by investors taking stock of
regional trade movements. "Brokerage houses welcome [the change] because they
can have more business but for the stock brokers they may have to work more,"
Tam said. "They may have to change their working pattern."
Tesco to flood China with hypermarkets - Shoppers visit a Tesco store in
Beijing. Tesco, the world's No 3 retailer, plans to quadruple revenue in China
to about £4 billion (HK$49.54 billion) over the next five years by more than
doubling its number of hypermarkets to more than 200. The British group said on
the second day of a trip with analysts to Asia that its expansion in China would
deliver significant levels of profitability and returns, though it did not
provide figures or target dates. Tesco runs 82 hypermarkets and four "Lifespace"
shopping malls stretching along eastern China. A business of more than 200
hypermarkets would be similar in size to Tesco's operation of its largest
"Extra" stores in its main British market. China offered an "unrivalled
opportunity in a large, rapidly growing market", Tesco said in slides published
on its website, noting the country will have 221 cities of more than 1 million
people by 2025, compared with 35 in Europe now. But some analysts warn about the
cost and risk, as rivals such as Walmart and Carrefour are also expanding in
China and Tesco's returns on overseas investments have fallen. Yesterday, the
group said overseas returns were starting to improve and would build as economic
recovery grows and its assets mature. Tesco said it aimed to have more than 150
leasehold hypermarkets by 2014-15, as well as around 50 freehold "Lifespace"
shopping malls, each with a hypermarket, and to have a further 30 malls under
development. It confirmed plans to invest about £2 billion in "Lifespace" malls,
which are mainly aimed at second- and third-tier cities, over five years, with
development partners providing a further £3 billion to £4 billion. The malls,
whose Chinese name Le Du Hui means "Happy Fun Shopping Place", typically occupy
75,000 square metres spread over four floors, with a Tesco hypermarket at the
bottom and other shops, restaurants and a cinema on upper levels. Tesco said
around 600,000 customers a week were visiting its existing four "Lifespace"
shopping malls and the average occupancy rate was 89 per cent.
World's largest pearl shines for $301m - The world's largest luminous pearl is
displayed in Wenchang, South China's Hainan province, Nov 21, 2010. Weighing six
tons and 1.6 meters in diameter, the pearl is the largest ever discovered and
estimated to be worth two billion yuan ($301.197 million). 
Maple leaves are seen at Quancheng Park
in Jinan, capital of east China's Shandong Province, Nov. 21, 2010.
China's former Olympic and world champion
Liu Xiang finished first in heat one to reach the men's 110 meters hurdles final
at the Asian Games Monday. The 27-year-old, who was definitely the focus of all
media and spectators on the track, clocked 13.48 seconds with ease. The time
topped the total ranking of the two heats. "I feel really good," said Liu, the
Asian record holder whose personal best was 12.88. "I wanted to say thank you to
the fans, and I hope I can do better in the final." Liu said before the Asian
Games that he was still bothered by the foot injury but he was in a stable form
now. He also said he expected to run within 13.40 at the Asian Games. Liu limped
off the field of the national stadium Bird's Nest in the Beijing Olympic Games
even before he started running in the first heat to defend his glory, leaving
millions of Chinese fans dumbfounded with the blow. He was later treated in the
United States, accepting surgery on his right Achilles' tendon. Another famous
Chinese hurdler Shi Dongpeng also qualified for the final by finishing second in
heat two in 13.89, but the result could only ranked fifth. South Korean Park
Taekyong finished in 13.68 to rank second, while the third was Saudi Arabia's
Ahmed Khader A Almuwallad, who clocked a personal best of 13.69. The men's 110m
hurdles final will be held on Wednesday.
Youku seeks $169 million from
IPO - Youku.com Inc, China's biggest online video company, said it plans to
raise $169 million in an initial public offering in the United States, one week
after its competitor Tudou Holdings Ltd filed for its own initial public
offering (IPO). Youku.com will offer 15.4 million American depositary receipts (ADR)
at $9 to $11 each, the Beijing-based company said in a filing with the
Securities and Exchange Commission. Proceeds will be used to upgrade technology,
buy videos and expand sales and marketing, the prospectus said. Shanghai-based
Tudou, China's second-largest provider of online videos, filed on Nov 9 to sell
$120 million of shares in the US. The two companies are raising money after the
number of Internet users in China surpassed the entire US population. Four of
this year's 10 best-performing IPOs on New York exchanges are from companies
based in China, where the economy is forecast to expand more than four times as
fast as the US in 2011, according to the International Monetary Fund. Sales at
Youku.com and Tudou have each more than doubled this year. "It provides another
opportunity for investors seeking high-growth exposure to the Chinese
marketplace," said Josef Schuster, the Chicago-based founder of IPOX Capital
Management LLC, which oversees $3 billion. "The story is driven by the growth
prospects and the underlying economy." Goldman Sachs Group Inc of New York is
leading Youku.com's offering, the prospectus said. China had an estimated 420
million Internet users at the end of June, according to data from the
government-sponsored China Internet Network Information Center. The US
population is about 311 million, according to the Census Bureau's website.
China's online video market more than doubled to 621 million yuan ($94 million)
in the third quarter, according to Beijing-based research company Analysys
International. Youku.com had the largest share at 23 percent, followed by 19
percent for Tudou. Google Inc's YouTube, the world's most popular video site, is
inaccessible in China. Youku means "excellent and cool" in Chinese. The company
had previously raised $110 million from investors, including Chengwei Ventures,
Brookside Capital, Maverick Capital and Sutter Hill Ventures. Its last round of
private equity funding from existing investors raised $40 million in December.
Revenue at Youku.com increased 135 percent to 234.6 million yuan in the first
nine months of 2010, according to its filing, while Tudou's sales more than
tripled. Neither company has been profitable in the past three years.
Financial Secretary John Tsang Chun- wah
has warned that the government has a few more measures up its sleeve to fight
against property speculation. His warning came hot on the heels of his
announcement on Friday that an additional stamp duty of between 5 to 15 percent
is to be levied on residential properties purchased and resold within 24 months.
This is on top of the current stamp duty, capped at 4.25 per cent. The Hong Kong
Monetary Authority also reduced the amount banks could lend to buyers of homes
worth HK$12 million or more, from 60 percent to 50 percent of the price. Writing
in his blog yesterday, Tsang said society as a whole could suffer a big blow if
the government does not deflate the property bubble in time. "Doubtless to say,
we will definitely not sit back and do nothing against the risk that might
affect our economy and financial stability. "We will closely monitor the market
and roll out more measures again if needed." The new levy, which requires
Legislative Council approval, will be imposed at a rate of 15 percent for flats
sold within six months or less of purchase, 10 percent for those sold more than
six months but 12 months or less after purchase, and 5 percent for those sold
more than 12 months but 24 months or less after a deal is struck. The extra duty
would be levied on flats acquired on or after last Saturday. In response to
worries that the proposed measures might affect owner- occupiers who have to
sell their flats due to urgent financial necessity, Tsang said: "I have been
skating on thin ice in dealing with the risk of a property bubble. "On the one
hand, I have to consider home owners' interests, but on the other hand, I have
to manage the risk." He said safeguarding the welfare of the public mattered
most. "If a nest overturns, no egg will be left intact," he wrote. "We have to
actively reduce the risk of a bubble and put forward preventive measures in
unusual times." Executive Council convener Leung Chun-ying said he found the
measures effective, but it would take some time to gauge their long-term effect.
While market watchers expect property prices to drop due to the government's
measures, Leung believes prices may also be affected by external factors,
including low interest rates overseas and the second round of quantitative
easing policy in the United States. Democratic Party lawmaker James To Kun-sun
said he will urge the government, at today's Legco's joint meeting of the
financial affairs and housing panels, to only require sellers, but not buyers,
to pay the extra stamp duty as sellers are the ones who might gain from
speculation. The government can consider either adding a sunset clause for the
levy or scrap it later when necessary, he said.
The long-awaited competition law is not expected to take full effect until 2014
at the earliest, Undersecretary for Commerce and Economic Development Greg So
Kam-leung says. Before that a string of procedures needs to be completed,
including establishing a commission to investigate anti-competitive activities
and a tribunal to act on the commission's findings, and drawing up guidelines on
how the law should operate. Despite worries from business, the bill has general
support. It is expected to be passed by the Legislative Council before July
2012. So said a phased approach would be adopted to get the law working. "The
first phase is primarily about building the institutional framework. We envisage
that the first phase will take a year or more to implement subject to progress
of the setting up of the commission and the tribunal as well as their respective
work on the preparation for the various guidelines and court rules." A
competition commission would be set up to investigate anti-competitive conduct
and a competition tribunal with jurisdiction to hear and determine applications
filed by the commission. In the second phase, guidelines will be established,
after a consultation. "This will pave the way for decisions on what can and
cannot be done and exceptions and exclusions on business agreements under a
competition law," So said. He said other countries' guidelines would be
consulted. The final phase will see the new bodies delivering judgments and
imposing penalties. Some business leaders and legislators are worried about
"steep and unreasonable" penalties, but So said the proposed maximum - 10 per
cent of the global turnover of the business unit in the year of contravention -
was in line with international standards. "Penalties rarely reach 10 per cent in
the European Union, for example," he said. "For a fine to have any deterrent
effect on businesses at all, the court must be free to hand down an appropriate
amount." Multinational corporations were accustomed to this approach, he added.
The bill would tackle two major types of anti-competitive behaviour. The first
rule covers practices including price-fixing and market-sharing. The second
combats abuse of market power, such as predatory behaviour by competitors. So
said that while penalties would be imposed only on the business unit breaching
the law, the court would be looking at the involvement of a parent company in
the anti-competitive conduct in question, including whether the parent company
had sufficient control over subsidiaries. Other than public enforcement through
the tribunal, alternatives would exist to resolve small-scale contraventions.
Individuals could make commitments to the commission to stop anti-competitive
conduct. The commission may issue an infringement notice before a case is
brought. Highlighting worries expressed by small and medium enterprises, So said
de minimis approach and other measures, including allowing a transitional period
for businesses to make necessary adjustments, would provide protection. People
with experience of small and medium enterprises would also be appointed as
commission members. Some companies fear the complaints mechanism could be
abused, but the commission will be able to refuse to investigate complaints it
considers trivial, misconceived or lacking in substance. So said the new law
would not apply retrospectively. As with the introduction of other new laws,
observers expect the first few cases after the bill has come into effect to have
a substantial impact. So said it "would be a great pity" if the business sector
hindered the progress of the bill. "The bill will bring economic benefits to
consumers and the business sector in the long run by preserving the competitive
nature of our economy," he said. "This bill has been prepared with the benefits
of the implementation experiences of other competition law jurisdictions. We
believe that it presents good and balanced measures while catering to the
environment in Hong Kong." The Legco bills committee has scheduled 37 meetings
for scrutiny of the terms. Committee chairman Andrew Leung Kwan-yuen said extra
meetings would be inserted during the Legco's summer recess next July if
progress was too slow.
Top athletes back bid to host Asian Games
- Children with T-shirts showing the number 2023 back the Hong Kong bid. Leading
athletes including Olympic windsurfing champion Lee Lai-shan voiced their
support for the city's bid to host the 2023 Asian Games amid apparently growing
public support. The good performances of Hong Kong athletes at the current Games
in Guangzhou was probably due to the high level of competition and experience
gained during the East Asian Games in the city last year, said Malina Ngai Man-lin,
chairwoman of the Elite Athletes Association. Ngai won a bronze medal in rowing
at the 2004 Games in Hiroshima. "If the Asian Games can be held in Hong Kong, we
can provide a goal for young athletes who otherwise would not have the
opportunity to attend the Games," she said. "No amount of training can
substitute for the experience of top-class competition in a major event." She
said hosting the event would also encourage the sedentary population to be more
active and inspire youngsters who might otherwise be led astray by temptations
such as drugs. Thousands of Hongkongers would be mobilised to help out, which
would instil the importance of volunteerism, she said. "The level of sports
participation will not dramatically increase just by hosting the Games, but it
is definitely one good way of stimulating interest in the next decade." Lee, who
clinched gold at the 1996 Olympic Games in Atlanta, said: "Hosting the Games can
encourage a lot of young people to do more sports. I'm now a mother of two and I
also hope my children can have better health and build up good personalities
through sports training." Retired swimmer Sherry Tsai Hiu-wai, who has taken
part in three Olympic Games and holds several Hong Kong records, said that
looking back on her 16-year career, the most memorable and meaningful moment was
when she competed for Hong Kong in the East Asian Games last year. "It was
really touching when Hongkongers cheered for me." Current sports stars offering
their support include footballer Lee Kin-wo, sprinter So Wa-wai and badminton
player Amy Chan Lim-chee. The association surveyed about 280 elite and student
athletes last month, and about 75 per cent of them said hosting the Games would
raise the standards of athletes, and promote sports development. Public
sentiment for a Games bid was negative in September when the government
announced the idea. On November 9, the administration announced it had slashed
its proposed budget from the original estimate of between HK$13.7 billion and
HK$14.5 billion, to less than HK$6 billion. Last week, the home affairs chief,
Tsang Tak-sing, said the brave and outstanding performances of Hong Kong's
athletes, as well as Guangzhou's success in hosting the Games, had prompted a
positive change among Hongkongers. The observation was in line with a poll of
500 adults last week by the YMCA of Hong Kong. It said about half of them
supported a bid now that the government had lowered the cost. This was 12
percentage points more than a survey it conducted a month ago. The association
said the success of the Hong Kong athletes may have been a factor. The city's
athletes have won seven gold medals so far in Guangzhou. The 10-week public
consultation for a Hong Kong bid to host the Games ends on December 1.
United States Insurers missing
out on the benefits of technology - Most insurers in the United States are
letting consumer technology such as smartphones and social media networks get
ahead of them, creating a challenge to attract a new generation of customers who
are not interested in doing business with agents the way their parents did.
However, it has also created an opportunity for companies such as Allstate and
State Farm which have embraced interactive technologies as a way to extend their
brand's reach to children of the 1980s and 1990s. "You're not going to get any
more mortality (business) with the things you're doing now" among the younger
generation, said Douglas French, managing principal of Ernst & Young's insurance
advisory practice, told reporters recently. While the insurance industry is
known for many things, a focus towards the young and/or hip customer is not one
of them. In some ways this contrasts strongly with what banks are doing which
includes offering cheque deposit via mobile phones and pushing the internet to
replace branches for much of their business. Underwriters usually aim their
pitches at a middle-aged customer seeking an aura of confident authority about
matters like health and property. While that has continued to work among a
segment of the market, branding experts say there is a missed opportunity. "It's
a buggy whip mentality. Everything is moving more and more to high-tech
electronic online interface and particularly with this generation," said Robert
Passikoff, president of brand loyalty and customer researcher Brand Keys.
"They're still looking at this as a commodity ... if we can get the price down
low enough, people will come to us and I don't need a lot of friends on Twitter
and Facebook." There are some companies in the industry that have been more
aggressive with their push into new media, though mostly in vehicle insurance.
Executives say car insurance lends itself to new media because the transactions
are in some ways simpler than other insurance lines. Allstate has a suite of
mobile applications for smartphones that offer services such as home inventory
lists and roadside assistance requests. "A very significant number, up to a
majority, of wireless users will have these devices with them and they expect to
be able to interact with companies through these devices where they are," said
Bob Wasserman, vice president of e-business for Allstate. "You start to think
about what this device can do and you build other capabilities." State Farm is
just as active, with prominent links from its home page to Twitter, Facebook and
Flickr feeds and a suite of mobile applications for customers, though they are
still just a supplement to the company's traditional network of agents in
storefronts across the country. Berkshire Hathaway's Geico is also aggressive in
mobile, and offers an application that lets people obtain rate quotes by taking
a picture of their driver's licence among its lineup of phone applications. No
matter what channel they are using, the car insurers seem to have picked up on
an idea that other insurers have missed: younger customers don't want to go to
an agent's office and don't want to be sold products where they already know
they can get a better price elsewhere. Passikoff said that shift in thinking
could take a decade for insurers to really make, but some say that may not be
sufficiently aggressive. "I don't see the industry moving fast enough," said
Bill Chrnelich, a partner in PricewaterhouseCoopers' insurance practice, in a
recent interview. "This industry isn't focused enough on that change in their
sales and distribution."
Equities brace for tumble - The
latest tightening measures by Hong Kong and China will weigh on local stocks
this week, and the correction may last longer if further curbs are imposed,
analysts said. "The negative news in the past couple of days has set the stage
for a retreat this week," said Kenny Tang Sing- hing at Redford Securities. "The
correction may come to an end after that if there is no more uncertainty from
curbing measures." Kingston Lin King-ham, director of OSK Securities, expects
Hong Kong stocks to open lower to absorb the shock from the Friday
announcements, before gradually recovering. "It would not be surprising to see a
300-point plunge in the Hang Seng Index today," Lin said. Although Beijing and
Hong Kong have set up defenses to curb "hot money," capital inflows from the US
quantitative easing remain overwhelming, Tang said. "Speculation may become less
active for the moment, but excessive money continues to be the backdrop for the
market," he added. Insurance and mainland banks will see a strong rebound after
consolidation, noted Tang, who expects the HSI to move between 23,000 and
24,000. In the runup to the end of the year, the benchmark may repeatedly test
the resistance level of 25,000, said Ricky Tam Siu-hing at Champlus Asset
Management. "The consolidation may last longer, to January 2011, after a huge
20-percent rally between August and early October," Tam said. "Any other
possible restraining policies, like a rate hike, can prolong the period of
corrections." After the frequent public listings, share placements and rights
issues absorbed some of the abundant capital recently, another wave of "hot
money" will shift to equities from the property market due to the local curbing
measures, Tam added. Shares of local developers and lenders will see immediate
pressure if property transactions and mortgage applications weaken. He said the
shopping spree up to the end of the year will give a lift to retailers and
consumer-related sectors. The People's Bank of China also said on Friday it will
raise the required reserve ratio for financial institutions by half a percentage
point. "The increase in RRR indicates that another hike in interest rates is
unlikely," Lin said. "That would clear the cloud and give the stock market
strong support."
Bright future poses threat to giant
telescope - Light pollution could hamper research at showpiece space-watching
centre, scientists warn - The LAMOST telescope in Xinglong county took more than
a decade to complete. Now scientists say they are worried light pollution from
Beijing could ruin their research. On top of a mountain close to Beijing sits
LAMOST, a monster of a telescope capable of peering deep into space. Scientists
using it say they will be able to make major contributions to our understanding
of the universe. They could discover the structure of the Milky Way and even
measure the echoes of sound waves from the Big Bang. The telescope is the result
of a 300 million yuan (HK$350 million) project that took more than a decade to
complete. It is not only the best of its kind in the world, it is also a symbol
of China's emergence on the international stage as a globally competitive space
superpower. "It certainly is a major project for China on the international
scene," said David Silva, director of the Arizona-based National Optical
Astronomy Observatory in the US.
Rise in spending power is luring
major developers - Booming trade at a Beijing mall. Mainland retail sales in the
year to October rose 18.6 per cent as a growing economy spurred spending. Policy
risk is driving both developers and foreign investment funds away from the
mainland residential market and towards commercial property, say analysts. And
it is a trend that, once under way, could continue for several years. In
addition to the "push" factor of increased risk caused by the introduction of
measures aimed at curbing the growth in home prices, the shift in focus has
arisen because of the rise in consumer spending power. Beginning in April this
year, the government in Beijing has announced a series of measures to take the
speculative heat out of the residential market, included the tightening of
residential development loans to developers, increasing mortgage rates and
cutting mortgage loans to individuals. Norman Krone, president of NK Real Estate
Advisors, a Florida-based property consultant with an office in Shanghai, says
this is leading developers and investors to put greater emphasis on retail real
estate. He believes the trend will last for many years. A number of big
developers are currently raising their investments in retail properties in
Beijing.
WorldHotels, the global hotel
branding and services company, plans to double its portfolio of member hotels on
the mainland by 2014, by exploring the potential in the country's second-tier
cities. Roland Jegge, vice-president of WorldHotels Asia Pacific, said he
expected the number of affiliated properties on the mainland to reach 50, with
an aggressive expansion into cities such as Kunming and Ningbo. "The plan is to
develop fast in secondary cities," Jegge said. "When we sign a new hotel, we
always ensure that it doesn't cannibalise or eat into business of the existing
partners." The buoyant tourism sector on the mainland encouraged WorldHotels to
rev up its expansion, and it sought an annualised growth of 20 to 30 per cent in
the coming years, Jegge said. This year it saw sales growth of 52 per cent in
its mainland business. The Frankfurt-based company has a collection of 450
independent hotels and offers business and leisure travellers access to the
affiliated properties through the SRS - a global hotel reservation and sales
network. It has also embarked on a new strategy that allows affiliated hotels to
use the WorldHotels brand. The affiliated properties are normally independent
from international brands such as Marriott or Hilton, and are self-managed.
Jegge expected by 2011 five mainland hotels would use the WorldHotels name. "We
are talking to them," he said. "In future, I hope half of our partners will use
the brand." Under the new model, the affiliated partners would retain their
independence while being able to use WorldHotels in their signage.
Calligraphy scroll goes for 308 mln
yuan at auction - A rare hand scroll copy of ancient Chinese calligrapher Wang
Xizhi's work fetched a staggering 308 million yuan ($46.40 million) at the China
Guardian autumn auction in Beijing on Saturday. The high auction price is only
second in the history of Chinese mainland art market to calligrapher Huang
Tingjian's hand scroll, Dizhu Ming, which was purchased for 436.8 million yuan
in June. Wang, who lived in the Jin Dynasty around the 4th century, is
traditionally acclaimed as the Sage of Calligraphy. However, none of his
original works exist, making this cursive script, named Ping'an Tie (Safety Wish
Script), especially rare for its high quality copy and the clear history of the
succession of its collectors, which date back to the Yuan Dynasty (1271-1368).
The script copy formerly constituted nine lines of characters. But it was torn
into two parts, and the 24.5-cm-long, 13.8-cm-wide piece that was sold on
Saturday is the first part with four lines composing 41 characters. Although it
was impossible to find out the exact year it was created, archaeologists believe
the scroll came out in the 7th century, or even earlier. One of the earliest
records of this script dated back to a book named Jiang Tie, which was compiled
between 1049 and 1063. Later the cursive script was passed on and on by
distinguished collectors of the Yuan, Ming and Qing dynasties, with all the
seals of the collectors' names printed on it. "The exact record of who passed on
the artwork to whom is a decisive factor for its price," said Li Feng, assistant
to the director of the Shanghai-based Minsheng Art Museum.
61 models contend for Miss Model
of World in S China - A total of 61 models coming from 61 countries and regions
took part in the final competition Saturday.
Thousands of people mourn
victims in Shanghai high-rise blaze - Sunday is the seventh day since the
disaster, a day the Chinese believe the dead would revisit their families before
leaving for good.
Chief Executive Donald
Tsang applauds casino mogul Stanley Ho Hung-sun after pinning a Grand Bauhinia
Medal to his lapel. Nobel laureate Professor Charles Kao Kuen was also among the
seven winners of the city’s highest honour. In all, Tsang presented 286 medals,
some posthumous, to city heroes, public servants, the great and the good
yesterday.
Arts hub does not need a forest, say
local architects - Hong Kong does not need a forest on the waterfront, say top
local architects who looked at the merits of three entries to design the West
Kowloon Cultural District. The architects gave their lowest score to renowned UK
architect Norman Foster, who vowed to give Hong Kong its own version of New
York's Central Park with 5,000 trees. They dubbed a plan by Dutch entrant Rem
Koolhaas the most creative but said it might run foul of government bureaucracy,
leaving the design of local architect Rocco Yim Sen-kee as the safest option.
The remarks were made by members of the Hong Kong Institute of Urban Design,
which was set up by outspoken and influential architects, planners and engineers
in June. After meeting the three design teams, they broke their silence as a
three-month public consultation winds up. Foster likened his plan to include
over 5,000 trees to Central Park in New York. His team also designed a flexible
arrangement of art facilities, expressed in rectangle boxes that can be
relocated easily. Institute president Professor Bernard Lim Wan-fung, an
experienced Town Planning Board member, said the plan looked pleasing to the
public and the government but he had reservations. "A central park is located at
the heart of the city, surrounded by residential developments and it should be
very accessible," Lim said, "Is the one designed by Foster a real central park?
"We see no passion. If we have to oust one from the competition, it would be
Foster's." He said it was always tempting to opt for an easy way out. "But let's
think twice. Do we still want a city without character? We have already lived
with it for the past few decades." Institute council member Ivan Ho Man-yiu said
the site did not need a forest to function as an urban lung, as it was on the
waterfront. "The most important thing is we don't see a cultural identity. We
only see a commercial site plus a park, things that are already built in London,
Manhattan and Chicago," he said. Instead of setting a zero carbon emission
target for the art hub like Foster, Koolhaas reserves two ventilation corridors
onsite to allow the summer breeze to blow in from the harbor. The plan drawn up
by Koolhaas conforms least to planning requirements set by the art hub
authority. He proposes a suspension bridge outside the hub and hovering above
the Yau Ma Tei typhoon shelter to solve traffic congestion, parks with free
management, fewer developments and much smaller development sites. Institute
vice-president Vincent Ng Wing-shun said: "You may think it's unrealistic but it
brings us imagination and the extrapolation of the city's character, including
the old markets and the low buildings in Jordan. We appreciate his spirit in
challenging the government's framework." Ng said Koolhaas' design would take
longer to implement and would spark controversy. He said the team would have to
demonstrate that the bridge would not contravene the Protection of the Harbour
Ordinance. He noted that old markets could not be created instantly but had to
grow over time. Developers would also argue against the small development sites.
The group of architects saw Yim's design as much safer. Although he proposed art
pontoons on the harbor, which could draw opposition for reducing the harbor
surface area, his plan followed the development density set by the authority.
"His design is the most cosmopolitan," Lim said. The public space, including
parks, squares and stone staircases, is shaped by cultural venues and
interconnected with main streets and small avenues. There are alternate spaces
for performance, for rest and for accommodating crowds. They are also specially
located to take in the city's landscape such as the Peak and the Convention and
Exhibition Centre. Yim is the only designer to put the planned Xiqu Centre for
Cantonese opera near Kowloon Park, being convenient for the elderly coming from
old neighborhoods. Institute member Franklin Yu said: "He [Yim] knows the place
and he has included delicate details. The drawback is, the details will be lost
if the plan is coarsely merged with other plans or it is not materialized with
care." Spencer de Grey, leader of Foster's design team, rejected the comments.
He said their park concept, integrated with the existing neighbourhood, would be
a venue for outdoor cultural activities and a response to the city's climate by
offering extensive shade. "We've been here for over 30 years. We know Hong Kong
well," he said. Koolhaas said his bridge design was an additional idea to
enhance the hub and would not delay the project. Small development sites were
intended to avoid massive and homogenous developments like the nearby Elements
and to allow diverse developments that addressed the needs of people.
Hongkongers were becoming more vocal and his design provided public space for
them, he said. Yim could not be reached for comment yesterday.
Property speculators slapped with
up to 15pc extra stamp duty - Buyer numbers for a Cheung Kong property project
in Tai Wai were 70 per cent down. The government slapped additional stamp duty
on property speculation yesterday in a desperate move to rein in rampant
home-price inflation. The monetary authority lowered the mortgage ratio for
costlier flats. Properties purchased from today onwards and sold within six
months will incur a 15 per cent stamp duty. This is in addition to the current
stamp duty, capped at 4.25 per cent. The new levy will come down to 10 per cent
for transactions between six and 12 months after purchase. It will be levied at
a rate of 5 per cent on sales after that, Financial Secretary John Tsang Chun-wah
announced. "The seller and the buyer are jointly liable for paying the special
stamp duty," Tsang said. The new levy will only affect properties bought from
today onwards. At the same time, the Hong Kong Monetary Authority reduced the
amount banks could lend to buyers of homes worth HK$12 million or more from 60
per cent to 50 per cent of the price. The maximum mortgage ratio for properties
priced between HK$8 million and HK$12 million was cut from 70 to 60 per cent. It
remains unchanged, at 70 per cent, for less expensive homes - which are
generally bought by end-users.
Police raid ICAC, arrest three graft-busters - Force's unprecedented action
against anti-corruption body may deepen rift between the two. Police arrested
three graft-busters on suspicion of perverting the course of justice during an
unprecedented raid on the headquarters of the city's anti-corruption body
yesterday. The raid - the first of its kind since the Independent Commission
Against Corruption was established in 1974 to root out rampant corruption in the
police force - will deepen the long-standing tension between the two forces,
with many veteran anti-graft officers expressing concerns over the high-profile
nature of the arrests. A large crowd of journalists and onlookers gathered as
about 40 police stood guard outside the North Point headquarters while other
officers conducted the raid. "By making such a high-profile arrest, it is like
the trial for the arrested investigators has started with everyone knowing about
the case already," a high-ranking anti-graft officer said, adding that it might
have an impact on future co-operation between the two bodies. The arrests came
after a trial was stopped in June when lawyers for the defendant presented a
secret recording of six hours of conversations between him and ICAC officers.
Cheung Ching-ho, who had earlier been offered immunity in return for testifying
against a warrants trader and three others accused of market manipulation and
money laundering involving HK$100 million, was himself charged in the case when
he refused to give evidence. When Cheung appeared in the District Court in June,
charged with conspiracy to defraud in manipulation, his lawyers argued that the
tape showed the officers had been coaching him on his evidence. The trial is on
hold pending the result of an application for a permanent stay of proceedings.
The tape was turned over to the police and the commercial crime bureau launched
an investigation. The recording was also sent to the bureau's technology crime
division for examination. Police in four unmarked vehicles arrived at the ICAC
headquarters in Java Road at about 10am yesterday. The vehicles left at about
5pm after officers had spent seven hours conducting an investigation in the
building. Without naming the ICAC, police said in a statement that they "have
arrested three Chinese males aged from 37 to 45 in the North Point area for the
offence of perverting the course of public justice". "As active inquiries are
ongoing at this stage, it is not appropriate to make further comments in
relation to the case," the police statement said. The ICAC later confirmed it
was assisting the police in investigating a suspected case of perverting the
course of public justice, and would render full co-operation. A person familiar
with the investigation said the three men were all graft-busters, but no
high-ranking ICAC officer was involved. Not identifying the ICAC was an apparent
effort by police to avoid deepening tension between the two forces. In response
to complaints about the size of the team sent for the raid, a police spokeswoman
said "appropriate manpower was deployed to perform crowd management duties" to
ensure the order and safety of the crowd gathered there. But ICAC officers did
not accept this. "There were also hundreds of reporters waiting outside ICAC
headquarters early this year for TVB (SEHK: 0511) executive director Stephen
Chan Chi-wan and only a few police were sent there. Why was there such an
inappropriate scale of police manpower deployed outside the ICAC yesterday?" one
officer asked. "The police raid yesterday was similar to the scale of a
nightclub raid in which triad members are arrested," a veteran ICAC officer
said. Tension between the two forces dates back to the establishment of the ICAC
in the 1970s, when its actions against police led to thousands of police
officers protesting outside ICAC headquarters over alleged persecution. The rift
between police and the ICAC widened in 2002, when anti-graft officers arrested
Senior Superintendent Sin Kam-wah, deputy head of the narcotics bureau, on
suspicion of accepting free sex from prostitutes. Cheung Ching-ho, whose case is
linked to yesterday's raid, was among five people arrested by the ICAC in 2008
for trying to manipulate the derivatives market. He was originally offered
immunity from prosecution but later refused to testify and was charged with
conspiracy to defraud. If his application for a stay of proceedings fails, he
will come to court on March 28 for a trial expected to last three weeks. The
four others included warrants trader Raymond Ng Chun-to and his wife, a
solicitor. In April this year, they were jailed for between two years and four
years. Ng, 42, was convicted on four counts of conspiracy to defraud and one of
trying to pervert the course of justice, and jailed for four years. His wife,
Cheng Yuen-yi, was convicted on 17 counts of laundering proceeds of the scheme
totalling HK$103.86 million, and sentenced to three years in jail. Leo Lam Sze-hang
and Polly Sun Chor-fun, who acted under the instructions of Ng and his wife,
were jailed for 28 months and two years, respectively.
Michael Tien splits from Liberals,
citing principles - The Liberal Party is going through its second major split in
as many years after senior member Michael Tien Puk-sun quit because of
differences over issues of principle. The split shows the weakness of the party,
which is torn between a wish to woo broader popular support and a struggle to
retain the backing of the business sector whose views it is meant to represent.
Richard Suen's claim for helping
Sands in Macau to be retried - The case is to go for retrial after Las Vegas
Sands and its chairman Sheldon Adelson appealed. The Nevada State Supreme Court
overturned a US$58.6 million judgment in favour of Hong Kong businessman Richard
Suen Chi-tat for helping casino developer Las Vegas Sands win a Macau gambling
licence. In an 18-page order released on Thursday in the US, the court partly
affirmed and partly reversed decisions made by a district court judge in Las
Vegas in the lead-up to the 2008 jury trial of Suen's lawsuit against Las Vegas
Sands. The higher court handed the case back down to the district court for a
retrial. The decision marks a partial victory for Las Vegas Sands, which last
year paid US$42.5 million in a separate case to settle out of court with another
group of Macau businessmen claiming to have helped it secure a gaming licence in
2002. In the company's appeal against the Suen judgment, the state supreme court
ruled the lower court had improperly admitted hearsay statements from former Las
Vegas Sands president William Weidner. It also said the district court had
failed to instruct the jury on presumptions of "governmental regularity". In a
victory for Suen, the high court said his charge of breach of contract by Las
Vegas Sands, originally dismissed by the district court, could proceed at the
new trial. Las Vegas Sands and its chairman Sheldon Adelson were contesting the
May 2008 decision of a jury to award US$43.8 million to Suen and his Round
Square Co as compensation for consulting services he provided, including
arranging a meeting in Beijing in July 2001 between Adelson and then
vice-premier Qian Qichen. The court later added US$14.8 million in interest
payments to the jury's award. The New York-listed firm, parent of locally listed
Sands China, had made no provisions for paying the hefty sum to Suen. "The
company believes that it has valid bases in law and fact to overturn the
verdict," Las Vegas Sands said earlier this month. Suen launched his suit in
2004 on behalf of business associates including Zhu Zhensheng, George Chang,
Steven Siu and Choi Yuen Yuen. Choi arranged the meeting in Beijing between
Adelson and Qian, according to court filings. Suen testified that Zhu and Choi
were high-ranking People's Liberation Army members. Suen contended he and his
partners were promised a success fee equal to US$5 million plus 2 per cent of
Sands' net profit in Macau. Adelson agreed that Suen should be compensated but
said he could not pay him the alleged agreed success fee due to issues with the
Nevada Gaming Commission and the Foreign Corrupt Practices Act, the court
documents said. Adelson offered alternative compensation that was rejected by
Suen, who then sued. No date has been set for the retrial.
47th Golden Horse Film Awards
staged in Taiwan.
Advanced Chinese ship near Diaoyus - The
Yuzheng 201 sails near the islands yesterday. - Two Chinese fishery patrol
vessels, including a new one that China says is its fastest to date and is
equipped with a helicopter, were spotted in the East China Sea near the disputed
Diaoyu Islands, Japan said. The discovery came just days after Beijing and Tokyo
tried to mend ties. A Japanese coastguard spokeswoman said one of their patrol
aircraft saw an advanced Chinese fishery patrol ship near the island chain at
about 8.25am yesterday and discovered another small Chinese fishery vessel 20
minutes later. She said Japanese patrol ships repeatedly warned the two vessels
not to enter Japan's territorial waters, but the ships, which were identified as
Yuzheng 310 and Yuzheng 201, repeated responses such as "we are conducting a
justifiable mission". "The two vessels came as close as 23 kilometres to the [Diaoyu]
islands," the spokeswoman said, adding that the Chinese ships had not entered
what Japan considered its waters. China and Japan both claim the uninhabited,
potentially resource-rich islets, known to the Japanese as the Senkaku Islands,
along with the nearby seas. Yesterday's maritime encounter came after Xinhua
reported that China's first helicopter-equipped advanced fishery vessel, the
Yuzheng 310, left Guangzhou on Tuesday for the East China Sea on a 20-day
mission. The 2,580-tonne ship, with a crew of 60, was not China's largest
fishery patrol vessel but was "the fastest and has the most sophisticated
technologies", Xinhua said. It had earlier said Beijing planned to build more of
such advanced fishery patrol vessels to protect its sea territories and fishing
fleets working overseas. Niu Zhongjun , associate professor of international
relations at the China Foreign Affairs University, said neighbouring countries
should be prepared for a rising China equipped with advanced fishery patrol
fleets. "I don't know whether the Yuzheng 310 has a special mission during its
20-day trip ... but I believe such operations will continue in the future as
China would definitely send more advanced fishery vessels to the East and South
China seas," Niu said. "All China has done is reasonable as it is rising and
needs to perfect both its military and civilian defences." But he said Beijing
also needed to increase transparency and enhance communication with neighbours
to ease suspicions. "The role of fishery patrol ships is like the maritime
police, protecting fishing fleets overseas and carrying out hydrologic
monitoring, maritime search and rescue as well as other civilian missions," he
said. The 954-tonne Yuzheng 201 was sent to the East China Sea after the
Japanese coastguard arrested a Chinese trawler captain in September.
Japan may put troops closer to China - Tokyo defence focus on East China Sea
islands - Japan may station troops on islands near China and boost defense
co-operation with the US and other allies by lifting a ban on military exports.
Both options are being considered for inclusion in a strategic defense review to
be published next month - a fact that will stoke China's concerns about being
contained by US and Japanese forces. Japanese officials say China's handling of
recent tensions over the disputed Diaoyu Islands has hardened positions within
the cabinet of Prime Minister Naoto Kan. Those tensions flared again yesterday
when a Japanese surveillance plane spotted two Chinese fisheries patrol vessels
off the Diaoyus, which Japan calls the Senkakus, and anti-China protests were
staged in Osaka. The long-delayed review - the first for six years - will
promote stronger and more flexible security co-operation with the US and other
countries, particularly South Korea, India and Australia within the framework of
Japan's pacifist constitution that limits the military to acting in
self-defense. "I believe the outline will mark a turning point in our strategic
and defense planning," said Professor Satoshi Morimoto, a well-connected former
diplomat who is now director of world studies at Tokyo's Takushoku University.
"There is a strong sense now that Japan has to react to an aggressive change in
China's foreign policies. What is Japan's leverage to deal with China? That is
what we are talking about now. "As China grows and becomes stronger, we can see
that the main leverage we will have left is military."
Chinese vice president visits
housing project in Angola - Chinese Vice President Xi Jinping visits a social
housing project constructed by China's Citic Construction Company in Kilamba
Kiaxi, Angola, Nov. 20, 2010.
China
Petroleum and Chemical Corporation (Sinopec), China's largest oil refiner, said
Friday it has suspended diesel exports to relieve shortages in the domestic
market. Sinopec also said it is seeking to import 200,000 tonnes of diesel.
PetroChina Co., China's largest oil producer, plans to import 200,000 tonnes of
diesel. Some 35,000 tonnes of it has already arrived. Insiders said China's
diesel output in the first nine months soared, prompting the two oil giants to
expand exports. Sinopec attributed recent hikes in the domestic price of diesel
to hoarding, seasonal factors, transport factors and energy-saving measures.
"The fundamental reason for the diesel shortage is the industry monopoly. Oil
refiners are not keen to increase production because profit margins in the
sector are relatively low," said Qi Fang, director of the Hebei Provincial
Petroleum Industry Chamber of Commerce. "The two oil giants operate on a
planned-economy basis, resulting in an unbalanced supply-and-demand situation.
Supply and demand can easily outstrip each other as government planning cannot
keep pace with changes in the market," Qi said. Statistics from the General
Administration of Customs show China exported 360,000 tonnes of diesel in
October - only slightly lower than the 368,100 tonnes it exported in September -
even as diesel shortages worsened. Diesel imports in October rose to 400,000
tonnes, up from 250,000 tonnes in September.
Google hiring more engineers in China
- E-commerce war on the cards - Google China's headquarters in Beijing. Google
has been on a hiring spree this year after losing many top engineers and
executives. Search giant recruiting more engineers for challenges ahead -
Internet search giant Google Inc has recruited its highest annual number of
engineers in China this year, after the recent departures of many top engineers
and executives. Many Chinese engineers still hope to work for Google, said
Boon-Lock Yeo, head of engineering and research at Google China, whose public
appearances in Shanghai have been rare since Google began redirecting traffic
from the mainland to its Hong Kong site in March. "This year is the best year
ever in hiring since we entered the mainland five years ago," said Yeo. He added
that employment numbers are increasing every year, and the company has received
a record amount of resumes from Chinese applicants since the start of 2010.
Although he declined to reveal the exact number of people Google China has
recruited, Yeo said "several hundreds of engineers" are currently working for
the company. On Tuesday, Chinese media reported that Lin Bin, deputy head of
engineering and research at Google China, had left the company to start his own
business. Lin's departure demonstrates that the Internet search engine still
faces staff turnover challenges, especially as five out of six deputy heads of
the company's research and development (R&D) section have moved on. Yeo denied
that Google China is facing a brain drain, stating that the younger generation
of engineers are proving their abilities and doing a good job. "Compared with
the average employee turnover rate of 20 percent in Chinese IT companies, Google
experiences a far lower figure," he said. According to Yeo, Google's Beijing R&D
facility, established in 2005, is the biggest of eight such centers in Asia. Its
major task is to research and develop search innovations for both the local and
international markets. The company established its Shanghai R&D center in 2007,
with a focus on innovation in advertising. "Our commitment to China stays
unchanged," Yeo said. He pointed out that search and advertising are still the
two main R&D fields for the company. We also want to expand into mobile
Internet, since it is a major sector," said Yeo, adding that almost all of the
projects under development are related to mobile Internet use. Meanwhile, Google
Shopping, a product-searching function, is another major research priority. The
company launched its Chinese version of Google Shopping in 2009. Gu Xuemei,
e-commerce director of Google China, said the company aspires to further develop
product searching because "it is quite a cash cow". "We know many e-commerce
websites provide product searching, such as Amazon in the United States and
Taobao in China. Google may become marginalized in this area if people simply
look to e-commerce sites when they search for goods," Gu said. "Google doesn't
sell products, so we are quite neutral," said Gu, who added that, compared with
some e-commerce websites which may give undue prominence to certain goods or
companies, Google may make customers more comfortable. Advertisements contribute
the biggest portion of revenue for Google, both in China and overseas, and the
company said on Thursday it has more than one million AdWords advertisers
worldwide and another million AdSense publishers globally.
Mild earthquake sets Shenzhen, HK
trembling - A 2.8-magnitude earthquake with its epicenter in Deep Bay rattled
Shenzhen and Hong Kong at 2.42pm yesterday. The Hong Kong Observatory received
more than 100 reports from members of the public, jamming its hotline briefly.
Most of the calls were from people living or working in Tuen Mun, Tai Po and
Sheung Shui in the New Territories, near Shenzhen. Observatory scientific
officer Woo Wang-chun said the tremor was a minor one that lasted a few seconds
with at least one aftershock. The epicentre was about 30 kilometers northwest of
the Tsim Sha Tsui-based Observatory. One woman working in a Kwai Chung office
when the quake hit, said: "My colleagues and I were petrified for a brief moment
before we recovered our composure and realised it was an earthquake." A Tuen Mun
resident said: "The shake lasted for about two seconds. I thought a train had
just passed by but the shake was less intense so I knew it was a quake." At the
Hong Kong Open golf tournament in Fanling, some of the world's top players also
felt the tremor. "I felt it on the 14th tee box and, to be honest, my legs were
like jelly over the tee shot," world No10 Rory McIlroy told Agence France-Presse.
"(I've) never felt one of those before." World No14 Ian Poulter, the clubhouse
leader after the second round, said: "I bent over on the 14th tee and wondered
what it was. I was just about to peg my ball up so I did feel a little tremor.
"It just felt tiny. It was a bit strange but it didn't put me off." Lawmaker
Miriam Lau Kin-yee s aid she felt the tremor when chairing a meeting at the
Legislative Council Building. At first she felt dizzy, thinking she may have
been ill but later learned that it was a quake. Woo said the quake was the
second tremor to hit Hong Kong this year, following one in March. He said Hong
Kong had recorded six tremors with epicentres within Hong Kong since 1979 and 57
quakes centred elsewhere that were felt locally. A spokeswoman for Guangdong's
Seismological Station said the epicentre originated from a depth of about 23km.
Shenzhen authorities released a press release an hour after the quake saying
that it had not caused any damage and asked the public to stay calm. In central
Shenzhen, thousands of students and white collar workers were evacuated from
school and office buildings, fearing a stronger earthquake might follow. An
office worker at the Great China International Exchange Square in Futian
district said many of his colleagues left the building after the quake, and
stayed outdoors for more than half an hour. "The building shook for about two to
three seconds and we left our seats to go downstairs immediately," he said.
Playboy looks to cleaner image in Asia
with brand apparel - Scott Flanders, chief executive officer of Playboy
Enterprises, says the brand is strong in Asia. Hugh Hefner's iconic Playboy
bunny is gearing up for a major hop into the mainland market, but instead of
adult media the focus will be on marketing Playboy "with Chinese
characteristics" as an apparel brand. "In America, Playboy makes people think
about sex and Playboy Bunnies," said Alex Wang Chengjin, a Wenzhou businessman
whose company Glory Rabbit International Investment recently acquired the rights
to manufacture and sell Playboy-branded apparel and household goods across the
mainland. "While Chinese people recognize Playboy as an international brand,
they don't really understand what it is all about," Wang said. "So we have a lot
of space to work with in terms of how ... we introduce the culture of the brand
in the mainland," he said. Faced with declining publishing revenues in the
United States, Playboy Enterprises is banking on non-media licensing ventures in
China for future growth. A small litter of recent brand licensing deals - for
mainland apparel with Glory Rabbit, for a pair of casino nightclubs in Macau
with Sands China, and for a retail outlet in Taipei - are part of a broad
repositioning of Playboy's business beyond the original men's magazine founded
by Hefner in 1953. Asia, led by the mainland market, accounted for a third of
Playboy's licensing revenue last year and that figure is expected to exceed 40
per cent this year, Playboy Enterprises chief executive Scott Flanders said. "We
think there's still a lot of growth left, not only in China but in the rest of
the countries in the region," Flanders said. "Our brand has a lot of resonance
here." Playboy today opens its first casino nightclub outside the US, a
12,000-square-foot space on the top floor of the hotel tower at the Sands Macao
that is "couples friendly" and offers "sophisticated fun adult entertainment",
Flanders said. A larger Playboy Mansion facility is scheduled to open in the
fall of 2012 inside a US$4 billion Sheraton/Shangri-La casino resort complex
that Sands China is building on the Cotai Strip across from its Venetian Macao.
Playboy's deal with Wang's Glory Rabbit represents a minimum US$50 million in
licensing revenue over five years starting from January 1, according to
Flanders. Glory Rabbit plans to open 2,000 to 3,000 Playboy-branded retail
outlets in coming years, starting with major hubs like Shanghai and Hangzhou and
branching out to second- and third-tier cities, Wang said. Acquiring mainland
rights to the bunny logo and related trademarks from Playboy are part of the
apparel firm's plan to "move up the value chain" from manufacturing to branded
retailing, he said. Flanders said Playboy currently has "hundreds" of licensing
agreements in place around Asia. "I would argue the brand is stronger in Asia
than in the US," he said. "People know what the bunny ears are even where we
have never published a single magazine. I think we have a cleaner image in the
mind of the consumer in Asia as a result."
Trainee pilots to pay
own way at China Southern Airlines - Asia's largest airline - China Southern
Airlines, Asia's largest airline, plans to fast-track its pilot certification
program by hiring high school and university graduates willing to pay their own
730,000 yuan (HK$852,000) tuition fees. The benefit to the cadet pilots is that
they can enter a shorter training program, which lasts for two-and-a-half years
versus the four-year program at traditional aviation colleges on mainland.
Mainland carriers, which are set to double their fleet size to 5,000 aircraft by
2015, are struggling to fill the gap between their growing demand for pilots and
the projected supply of aviators from existing training programs. Some 18,000
new pilots will be needed to fill the cockpits of the new planes nationwide by
2015, translating into a delivery schedule of 3,600 new pilots on average per
year over the next five years. Of the eight aviation colleges on the mainland,
only one institution provides flight training - the Civil Aviation Flight
University of China - and it turns out only 1,500 pilots a year. The other seven
teach only theory and need to send their students overseas to accumulate the
flying hours required for a commercial pilot license - 250 flight hours.
Industry veterans estimate that approximately 1,000 pilot cadets are sent
overseas for flight training from the mainland every year. The existing training
programs fall far short of meeting the demand from airlines, which sometimes tap
the ranks of pilots retired from the air force or hire foreign pilots. The pay
for pilots, from a new second officer to a captain, ranges from 200,000 yuan to
500,000 yuan a year, compared with HK$500,000 to more than HK$2 million for the
pilots of top-tier international carriers. China Southern, the only mainland
airline with a dedicated flight training school, has attempted to address the
problem of pilot shortages. The Guangzhou-based airline company set up a flight
training school in Perth, Australia in 1993 and joined forces with Beihang
University in Beijing to run the Flying College of Beihang University in the
same year. Some 180 are trained in Perth each year; others will be sent to
Montreal and Toronto for flight training. China Southern needs to recruit 500
pilots a year over the next three years. A quarter of the pilots-to-be will be
hired from the Civil Aviation Flight University in Sichuan, while the balance
will be trained in Montreal, Toronto or Perth. It began recruiting self-paying
pilot trainees in 11 provinces last month and will officially enrol them in July
of next year. By doing so, it could increase the scope of pilot enrolment beyond
its base and branch offices, and shorten the time it takes to train pilots.
"Self-paid cadets are more motivated in their study, so that their pass rates
are generally higher," said Hu Tao, director general of the pilot recruitment
centre for China Southern. The drop-out rate was around 10 per cent among paid
and sponsored students, he said. Training for the self-paying trainees lasts for
three years at most, compared with the four-year program for the sponsored
students, as the latter are required to finish the undergraduate programme in
parallel with the pilot training program. In order to reduce the turnover rate
of pilots, self-paying trainees have to enter a 15-year service contract with
the company upon graduation. The condition aims to prevent pilots hopping to
other carriers. The recruitment of self-paying pilot trainees has its
limitations. For many, the 730,000 yuan tuition fee is not affordable and China
Southern has to loan them the money. On the other hand, the entry requirements -
mainly related to academic performance - are lower for self-paying trainees,
which means the airline has to provide extra training in language skills,
especially in English. In a bid to sustain the quality of self-paying trainee
intakes, China Southern cut the entry number to 100 this year, compared to 300
in 2009, and 200 in 2008, Hu said. "We are the fourth-largest carrier in the
world in terms of aircraft and passenger volume and are set to be the third in
terms of passenger and volume traffic," Hu said. "We need to draw up
comprehensive pilot training programs well in advance to make sure that we have
sufficient pilots to fuel our expansion," he added. This month, China Southern
agreed to buy six Airbus 330s and 30 Airbus A320s, at an estimated cost of
US$3.77 billion. The sum is additional to the 57 billion yuan it had committed
for aircraft acquisitions at the end of June this year, according to the
company's financial report. "I am proud to say that our pilots' English-language
skills are better than those of other mainland carriers," Hu said. In contrast
to many of its rivals, China Southern does not employ interpreters on board, he
said. Moreover, the pilot structure of China Southern is relatively young, with
over 65 per cent of its pilots in their 40s. Only one in 20 of its pilots are
retired air-force fliers. The idea of self-paying trainee pilots is unlikely to
work in Hong Kong. The only institution that offers flight training in the city,
the Hong Kong Aviation Club, only trains people to obtain private pilot licences
allowing them to fly light aircraft. Someone holding such a licence would need
extra training and a commercial pilot's licence before they could fly for
airlines. That involves more written exams and 250 hours flying, compared with
40 hours for a private licence. Most private candidates go to Australia to
accumulate the required flying hours. When Cathay Pacific Airways (SEHK: 0293)
or Dragonair hires trainee pilots, the airline pays their rent and fees for
instruction. The airlines also accept individual candidates who pay their own
way.
The central bank yesterday raised the amount of funds mainland banks must keep
on reserve for the second time this month, reflecting Beijing's desperation to
contain soaring inflation. The People's Bank of China announced last night that
all banks were required to set aside an additional 0.5 per cent of total
deposits. They would be locked up from November 29, just two weeks after the
central bank increased the reserve ratio by 0.5 percentage points. The surprise
announcement yesterday was in line with speculation that consumer prices this
month will be 5 per cent higher than a year ago. "The PBOC is under pressure,
and it needs to do something to show its determination to tame inflation," said
Lu Ting, a Bank of America Merrill Lynch economist. "However, it has no
intention of killing growth by aggressively hiking interest rates, or imposing a
lending squeeze. Raising the reserve ratio is the natural choice of the PBOC."
The reserve requirement ratio is the percentage of total deposits that a bank
locks up and cannot lend. A higher reserve ratio helps soak up capital to stop
it from sloshing around the economy. It is the fifth time this year that the
central bank has raised the reserve ratio. Lu estimates that the 50-basis-point
reserve increase may drain about 350 billion yuan (HK$408.5 billion) from the
banking system. After the latest increase, the mainland's biggest banks are
obliged to hold 18.5 per cent of their funds in reserve. The latest move
cemented economists' belief that the central bank would soon raise interest
rates again to tame inflation. Beijing started a new round of monetary
tightening in October when it increased lending and deposit rates by a quarter
of a percentage point. The US Federal Reserve's second round of quantitative
easing, or QE2, prompted the central government to take drastic action. High
consumer prices risk becoming a festering political and social problem, rather
than an economic topic. Consumer prices in October were up 4.4 per cent year on
year, higher than economists' forecast of 4 per cent. "All signs are showing
consumer prices would have grown even faster in November," China International
Fund Management said in a report yesterday. "Price controls and taming inflation
have emerged as buzzwords for the authorities and the media." The increase in
banks' reserve ratio was also aimed at fighting the rampant inflow of hot money
amid a strengthening of the yuan. Central bank governor Zhou Xiaochuan said
earlier this month that China would create a "pool" to offset the negative
impact from an influx of hot money.
Cultural & Creative Industry Expo held
in Beijing - People stands in front of a fitting equipment during the 5th China
International Cultural and Creative Industry Expo (ICCIE) in Beijing, capital of
China, Nov. 19, 2010. The expo, displaying a large number of cultural and
creative exhibits, was opened to the public for free.
Hong Kong should impose further
credit policies and fiscal measures to curb rising property prices instead of
changing the territory's dollar peg, the International Monetary Fund said
yesterday. "Our solution is to tackle the property market directly ... and not
change the peg," said Nigel Chalk, IMF head for Hong Kong. The global body
warned that Hong Kong's accelerating asset inflation risks causing deflation and
an extended economic downturn if the bubble bursts. The Hong Kong government is
expected to outline fresh cooling measures - perhaps as early as today -
concerning the property market, sources told The Standard. Contrary to many
market commentators, the IMF said Hong Kong is not facing a property bubble for
now. "We don't see a bubble in the property market, we don't see prices are
deviating from fundamentals," Chalk said. But some economists and analysts
believe there is a bubble, even if its impact is relatively small. Depending on
the extent of the upswing, the resulting downturn could prove both protracted
and painful, the IMF said in a report. The government should consider increasing
stamp duty on housing and raising rates for higher- end properties if prices
continue to rise, it said. Hong Kong home prices have climbed about 50 percent
since the start of last year, surpassing a 1997 peak that was followed by a
six-year deflationary slump. "We are fully aware of the risks of an acceleration
of the credit-fueled asset cycle," Norman Chan Tak-lam, head of the Hong Kong
Monetary Authority, said yesterday after the release of the IMF report. The
de-facto central bank will introduce appropriate and timely prudential
supervisory measures to ensure banking stability, he said. Since April, the
government has raised stamp duty on some home sales, increased downpayment
ratios, stopped offering residency to foreigners who buy property in the city
and increased land auctions to boost supply. More fiscal support aimed at
targeted groups may also help temper surging house prices, economists claim. The
IMF also asked local regulators to ensure underwriting standards are rigorously
complied with. Meanwhile, the IMF expects Hong Kong's economy to grow 6.75
percent for this year, before dropping to 5-5.5 percent growth in 2011.
Inflation will hit 5 percent by the end of 2011, as higher property prices feed
into higher consumer prices. As the local economy remains robust, the IMF urged
the government to veer away from tax cuts and not to cut any government rents.
William Hench, portfolio manager at US investment house Legg Mason, urged
flexibility. Hench said the global monetary outlook could vastly change next
year when the US housing and employment improves and the US Federal Reserve
considers hiking interest rates.
The future looks a little rosier for staff
at Sa Sa International Holdings (0178) - they are in line for likely pay rises
of at least 3 percent next year. The move comes after the cosmetic retailer's
net income surged 42.3 percent in the first half to HK$176 million, boosted by a
robust retail market and the strong yuan. Sa Sa is also on a hiring spree, with
more retail stores in the works. The company aims to add 25 stores in Hong Kong
by the end of 2012. It already has 75 stores in the SAR with six more to open by
March. Sa Sa is optimistic about prospects for continued growth in retail sales
amid stable economic growth in the mainland and the rest of Southeast Asia, said
chairman Simon Kwok Siu-ming. "We are confident of seeing double-digit sales
growth in Hong Kong this Christmas," he said. But profit margin may be affected
by inflation, as lease-renewal rents rose 14.5 percent in the first half, Kwok
said. Net profit margin rose 1.4 percent to 8.4 percent in the first half.
Retail sales increased 16.8 percent while same- store sales climbed 9.3 percent
in the same period. Average sales per customer rose 10.2 percent to HK$268 in
Hong Kong. Shares of Sa Sa rose as much as 23 percent during the day before
closing up 19.55 percent at HK$8.56 yesterday. The surge came after the rosy
results announcement and a one-for-one bonus share issue to existing
shareholders, on top of an interim dividend maintained at 9 HK cents since the
first half of 2009. Earnings per share jumped to 12.7 HK cents in the period,
from 9 HK cents. Net profit reached HK$176.3 million for the six months ended
September 30, compared with HK$123.9 million a year ago. Turnover rose 19
percent to HK$2.1 billion on improved sales in all markets. Sales in Hong Kong
and Macau rose 17.5 percent, while mainland sales surged 40.7 percent. Singapore
sales were up 16.7 percent, while those in Malaysia and Taiwan increased 14.9
percent and 8.8 percent, respectively. E-commerce revenue also rose 22.2 percent
to HK$136.7 million on the back of a weaker US dollar. Sa Sa plans to have 100
stores in the mainland by the end of 2013, up from the current 20. The retailer
has earmarked HK$130 million for store network expansion for the financial year
ending March 31, and HK$170 million for the following year, Kwok said.
HK BMX star Wong makes off with gold -
Hong Kong's Steven Wong reacts after winning the gold medal in the Men's BMX
race at the Asian Games in Guangzhou on Friday. Hong Kong's Steven Wong won BMX
racing gold at the Asian Games on Friday before setting his sights on the London
Olympics as China's Ma Liyun took the women's crown. Wong clocked 30.337 seconds
in his race, beating silver medallist Akifumi Sakamoto of Japan by 1.042sec with
Japan’s Masahiro Sampei grabbing the bronze in 31.466. In the women’s event,
China’s Ma Liyun timed 36.662 to finish 1.140sec ahead of Japan’s Ayaka Miwa,
with China’s Yue Cong third in 37.916. “It has been a hard week. I’ve done
pretty good and I’m happy,” said Wong, the five-time Asian championships winner.
“It’s not an easy track. I just kept moving on, thinking nothing of the rank.
It’s lucky to finish the laps safely. When I sprinted in the last section of the
lap, I almost fell down,” he added. Wong confirmed he would be taking part in
the Olympics in two years’ time. “Since I won many big events... it’s time for
me to move on, so I’ll get ready for the London Olympics.” The 22-year-old, born
in Belgium to a Chinese restaurant owner father and Belgian mother and raised in
the European country, is the five-time Asian championships winner. He clinched
his first All-China Games gold medal for Hong Kong back in 2005, having turned
down an invitation from the Belgian national team seeking his services. Women’s
winner Ma said she had a tough task despite a total of only three riders in the
women’s final. “Although there were not so many riders in the race, the
competition was fierce. It required a lot of skill and I’m satisfied with my
performance. “My family and teammates were all cheering for me in the stands.
They encouraged and supported me a lot.” But Ma, 22, who won the Asian
championships this year, admitted there was still a gap to the top riders in the
world. “China is one of the top teams in Asia but compared with the top riders
in the world, we still have a long way to go. I have a lot of pressure.”
HK buyers pay top dollar for
high-price clubs - Exclusive and expensive, but private memberships are still a
hot ticket - Joining a club in Hong Kong isn't so much an exercise in social
networking as a crash course in financial and investment planning. A quick
glance at the fluctuating cost of entry to some of the city's most prestigious
clubs tells you why. Two years ago, in the middle of the global economic
downturn, a second-hand individual membership at the Aberdeen Marina Club was
worth about HK$1.2 million. Today, it would set you back somewhere closer to
HK$2.15 million. At the Clearwater Bay Golf & Country Club, the price of
admission has jumped to HK$4.5 million from HK$2.8 million two years ago. In
fact, the going rate for a membership at Clearwater Bay on the secondary market
has topped even pre-financial crisis highs , according to Athena Wong, director
of Everfine Membership Services, which acts as a middleman between club members
and potential buyers. One long-time member of Clearwater Bay Golf & Country Club
said that five years ago it cost about HK$200,000 for a basic membership, which
did not confer access to the golf and marina facilities. The price had now
doubled to between HK$400,000 and HK$500,000. The club also offers marina and
golf memberships, with the latter being the most expensive as there is a long
waiting list for access to the 18-hole golf course. The club mainly appeals to
locals and expatriates living in the nearby Sai Kung community, including
mainlanders who have bought homes there and have business dealings in Hong Kong.
"You do hear putonghua spoken more and more at the club," the member, who did
not want to be identified, said. Wong described the secondary market for club
memberships as active, with memberships snapped up whenever one became
available. Buying a transferable membership traded on the second-hand market is
the only way to avoid long waiting times to get into a private club. But not all
clubs allow memberships to be bought and sold on the secondary market, such as
the Hong Kong Jockey Club, the Hong Kong Country Club and the exclusive Hong
Kong Club. Applicants often have to wait years, if not decades, to be accepted
by these clubs. One Hong Kong Country Club member, who belongs to two other
clubs, likened memberships to private schooling, saying the high prices
reflected the lack of new land to erect additional club facilities. Louis Tam,
general manager of Garway Membership Services, a go-between for buyers and
sellers of club memberships, said improving incomes and a lack of new
members-only clubs were keeping demand strong and prices high. "In the past 15
to 20 years, there have been no new private clubs, so membership prices should
keep going up," Tam said. Everfine records show that the Hong Kong Golf Club,
which has golf courses in Fanling and Deep Water Bay, is the most expensive,
with the going rate for a corporate membership at HK$10 million. Aberdeen Marina
Club and the American Club are among the most popular with the price of an
individual Aberdeen Marina Club membership at about HK$2 million. A corporate
membership at the American Club will cost you HK$1.85 million. Corporate
memberships tend not to come on the market very often because they are used by
companies to attract and retain senior executives and are usually only sold when
a business is dissolved.
JP Morgan aims to be biggest player in Hong Kong fund management market - JP
Morgan Asset Management has carved a niche for itself as one of the leading
overseas fund houses in town, but chairman Paul Bateman has his sights set on
the firm becoming one of Hong Kong's largest houses overall. The firm has been
beefing up its presence over the past several years, expanding headcount from
about 330 in 2005 to more than 500 this year and growing by 50 per cent in the
Asia-Pacific region to an overall employee figure of 1,500. And it plans to
continue adding staff throughout the region. "When you look forward 20 years, JP
Morgan in Asia has to be as big relative to all the Asian houses as it is
relative to the European houses and US houses today," Bateman (pictured) said in
an exclusive interview with the South China Morning Post (SEHK: 0583). "That's a
very, very big thing we have to achieve." Overseas fund managers have
traditionally focused their attention on developed markets like the United
States and Europe where the most demand exists for long-term investment
planning. Many have since shifted resources to Asia, however, where economic
growth looks brightest in an otherwise dreary global economy. The influx of new
players and increased scale of old ones has ramped up competition in Hong Kong.
The number of unit trusts and mutual funds authorised by the Securities and
Futures Commission has increased over the past decade by 22 per cent to 1,968.
JP Morgan Asset Management is no stranger to vying for market share in Hong
Kong, having officially set up shop in 1974. Since then, it has tried to stand
out from the crowd by growing from within the region and forging local
connections. "We don't seek to run the business from London or New York,"
Bateman (pictured) said. "We seek to run the business with power and authority
delegated to people in the region who are career-committed to the region." For
example, he noted that the firm had seeded its mainland business with Chinese
speakers from its Taiwan operations. They were tasked with co-ordinating with
regulators and businesses to lay the groundwork for the firm's joint venture
with Shanghai International Trust and Investment. Bateman said growth in the
mainland market had come in ahead of schedule and the joint venture had already
made a significant contribution to the firm's overall revenue, without
specifying how much. It had US$8.6 billion assets under management in October
this year, compared with just US$300 million at the end of 2005. "What was
always a possibility became a reality," Bateman said. "And you have to believe
that over a period of time the mutual fund business in China will be as big as
the business in America and in Europe." He expected there would still be growing
pains, however, given the rapid pace of wealth creation across the border. "It's
a market that has a very short-term mindset," Bateman said. "Providing investor
education in a way which informs people about the risks they are taking and
encourages them to take the longer term view, when that is not their natural
inclination, is a huge challenge." Mainland investors have struggled to adapt to
long-term investing in part because of the up-and-down nature of domestic
markets. The Shanghai Composite Index has been one of the world's most volatile
equity benchmarks, with fluctuations of at least 60 per cent each year since
2006. It is the Asia-Pacific's second-worst performing benchmark so far this
year.
Mercedes-Benz A-Class joins luxury
product lineup in China auto market - MERCEDES-BENZ yesterday officially
launched the newest young model, the A-Class, in Shanghai to further expand its
customer base in China and ride on the growing demand for luxury compact cars.
The A160 and A180 boast a perfect combination of Mercedes-Benz's innovative
technology, pioneering expertise and youthful passion - as well as their
exceptional values at 238,000 yuan (US$35,843) and 278,000 yuan respectively.
With the highest standards of safety, practicality, and comfort offered by the
youthful and dynamic A-Class, Mercedes-Benz aims to enable young elites to not
only achieve, but also enjoy, their dreams under the three-pointed star. "In
response to increased customer demand for luxury compact vehicles, we are now
excited to launch the A-Class to the Chinese market, which will make the
Mercedes-Benz brand even more attainable for Chinese customers," said Klaus
Maier, president and CEO of Mercedes-Benz (China) Ltd. Mercedes-Benz introduced
the A-Class in 1997, a pioneer in creating a brand-new luxury compact segment.
And the A-Class has been leading the rapid development of the segment ever
since. The A-Class has achieved accumulated sales of 2 million units worldwide,
underlining its acceptance and popularity as the premium compact vehicle. Now
the A-Class is brought to China to cater to more young elite customers who
pursue the highest quality of life. "Mercedes-Benz has rejuvenated its brand
image for the past few years, especially in China," said Bjorn Hauber, executive
vice president for sales and marketing of Mercedes-Benz (China). "Mercedes-Benz
is more than the S-Class. It has the high performance AMG, the very luxurious
Maybach and the younger smart brand." With the newly launched A-Class as well as
B-Class and GLK, Mercedes-Benz wants to make it achievable to younger people,
who can grow with Mercedes-Benz. "These consumers can develop from A-Class, from
B-Class to C-Class, E-Class and S-Class. When they grow more successful in their
career, we want to be their partners. We want to enable our customers to stay
with Mercedes-Benz," Hauber said. He noticed that four or five years ago, the
customer base was mainly S-Class driven. Today, the customer base is much
broader in terms of age group, personal wealth and why they want to use the car.
The average age has dropped to below 40 in China, and you don't have to be an
entrepreneur to dream of driving a Mercedes-Benz. At the "Are You Ready" themed
A-Class launch event in the South Pier in Pudong New Area, the three-pointed
star shone brightly in Shanghai amidst a dazzling state-of-the-art multimedia
event. "Shanghai, as a modern city with a lot of activities, provides an ideal
setting to launch the A-Class. It has a huge advantage in city driving because
of its size and mobility in a metropolis like Shanghai," Hauber said. As
Mercedes-Benz always believed that a Mercedes-Benz must be the best vehicle in
its respective segment, the luxury car maker wants to offer premium vehicles
also in the A-Class. Thanks to the customer-oriented design concept of
Mercedes-Benz, the A-Class is the embodiment of sheer practicality. This
spacious interior makes the vehicle flexible and large enough to meet a variety
of daily needs. "Now, with the launch of the A-Class in China, Mercedes-Benz has
become the brand with the most comprehensive young product lineup in the luxury
auto market," Hauber said. Mercedes-Benz earlier introduced the smart brand to
target younger elites with its sporty and stylish models. And the smart brand
has been applauded by Chinese consumers and continued its upward flight in China
in the first 10 months of this year. Through unique marketing initiatives and
governmental support towards achieving zero-emission mobility, the
lifestyle-oriented smart again witnessed its best performing month ever in China
since its entrance into the market. 
US companies still want to do
business in China - A Minnie Mouse doll is seen at a field in Shanghai, where
Shanghai Disneyland will be built. Many US companies have expressed their
intention to invest or expand in China, according to a survey by the US-China
Business Council. Many US companies said in a survey that they are committed to
doing business in China, despite a federal commission report that criticizes
China for its "highly discriminatory" economic practices. But the same survey,
released by the US-China Business Council (USCBC) on Wednesday, echoed the tone
of the report by the US-China Economic and Security Review Commission. In the
survey, the US companies said they are increasingly concerned with barriers to
accessing the Chinese market. The nonprofit organization based in Washington
represents about 220 US companies selling goods and services in the Chinese
market. According to the survey, 87 percent of respondents said that their
operations in China posted revenue growth in 2009. Nearly 90 percent said that
profit margin rates in China equaled or exceeded their companies' global
margins. Their greatest worries do not only pivot around human resources, such
as talent recruitment and retention, but also around administrative licensing
and competition with State-owned enterprises. Council President John Frisbie
said in a statement that for "many USCBC members, these concerns are less about
real impact on current operations than they are about policy and regulatory
trends that could seriously hinder foreign companies and discourage future
investments, if the trends continue and the policies are fully implemented".
Despite the complaints with China's trade policies, the frustration on Wednesday
was also aimed at the United States. Jagdish Bhagwati, professor of economics
and law at Columbia University, said the US has been continuously bashing China
unnecessarily because China is moving toward an economy more focused on domestic
consumption. Charlene Barshefsky, who was US trade representative during the
Clinton administration, pointed out that the US does not have a strategy with
regard to China. She said that if the US wants "to make progress with China,
sometimes being quiet is better. Sometimes a discussion of a reasonable sort is
better than overheated rhetoric. The (Obama) administration needs to sort out
how it wants to deal with China". Beryck Maughan, a partner at Kohlberg, Kravis
Roberts & Co, an alternative asset management company, disagreed with the strong
China-bashing in the US. Is it China's fault to have a current account surplus
once in the last 30 years? Is it China's fault that we (the US) have deficits
with more than 60 countries, not just one? Is it China's fault that we are on a
fiscally unsustained path, critically dependent on capital inflow to keep the
economy going?" he asked. China recently has relaxed aspects of its trade
policies. Last year, China removed a requirement that most of the components of
wind power-related equipment be made within its borders. The move was made in
the hopes of allowing foreign companies to compete in China's wind power market.
The regulation had stated that all local governments use more than 70 percent
locally made technologies and products in their wind power facilities. Premier
Wen Jiabao has repeatedly said that foreign companies will not face
discrimination in the country. He said the Chinese government will
"unswervingly" continue its course of openness that will facilitate foreign
investment in China. Wen said recently that the policy of encouraging innovation
treats all businesses in China the same. It will not exclude foreign companies.
He reassured foreign companies in September at the World Economic Forum in
Tianjin that "China is committed to creating an open and fair environment for
foreign-invested enterprises."
Dow Corning's $1.8b silicone production
facility became operational in Zhangjiagang China - China's largest silicone
production base became operational in Zhangjiagang on Thursday to serve
fast-growing demand for the material in the country and throughout Asia. The
integrated manufacturing site, operated by Dow Corning Corp of the United States
and Germany's Wacker Chemie AG, involves a total investment of $1.8 billion and
includes a siloxane plant and a pyrogenic silica plant. Siloxane and pyrogenic
silica are key ingredients in the manufacture of finished silicone products.
Silicone-based materials are used in nearly all sectors of China's economy,
including automobiles, construction, electronics, power generation and
distribution, solar energy, cosmetics and personal care products, and textiles.
The Zhangjiagang joint facility is Dow Corning's third pillar after
manufacturing sites in the United States and the United Kingdom, and will serve
Asia-based customers, said Stephanie Burns, chairman of Dow Corning Corp. China
is now the second-largest silicon market and will soon become the largest, Burns
said. The total annual output of the production base is expected to reach
210,000 tons. "We are ramping up production over the next six to 18 months and
the facility will be at maximum operation," said Dow Corning President Robert
Hansen. China represents over 50 percent of Dow Corning's global sales and has
been experiencing a double-digit growth rate, according to the company. For
Wacker, one-third of its sales are generated from Asia where China accounts for
60 percent of revenue. Its sales in China reached 730 million euros ($996
million) last year, representing 20 percent of its global sales. Wacker also
announced its plan to invest a total of 400 million euros in China by 2013.
Burns predicted that high-tech industries, including advanced construction, such
as green buildings, electronics, automobiles and renewable energy would be the
growth points for silicone products. "We will work closely with local car
producers who are gaining more momentum as China becomes the world's largest
automobile market," said Jeremy Burks, president of Dow Corning in China.
Despite global economic woes, the polysilicon business has continued to grow
thanks to the development of the solar energy sector, according to the two
companies. Dow Corning said it currently has no plan to build a manufacturing
site in China, which will center on providing the material for the booming solar
industry. Dow Corning said it is now investing $5 billion in the US, Europe and
some parts of Asia to develop its solar-related business.
Air China (SEHK: 0753) is to buy 20
passenger planes from Airbus in deal worth US$4.49 billion, the airline said in
a statement filed with the Hong Kong stock exchange on Thursday. China’s leading
carrier said it would acquire 10 Airbus A330 and 10 Airbus A350 series aircraft
from the France-based aviation consortium, for which it would pay in cash
installments. The A330s will be delivered in stages from 2013 to 2015 and the
A350s from 2018 to 2020, Air China said in its statement. Airbus had granted Air
China “significant price concessions” for the aircraft and the purchase will be
funded by business operations, bank loans, and “other financing instruments,”
the airline said. Air China estimated the acquisition would increase the
capacity of its fleet by 18.6 per cent. The acquisition will “optimise the fleet
structure of the Company and is in line with the market requirements [and] will
deliver more cost-efficient performance and provide comfortable services to
passengers.” Air China serves more than 120 domestic and international
destinations with its fleet of more than 260 Airbus and Boeing jet aircraft,
according to state media. “Air China has ordered more than 200 Airbus and Boeing
planes so far. In last year, Air China carried 41.28 million passengers,” Xinhua
news agency reported, quoting the airline’s website. The statement follows
several major acquisitions by mainland carriers in recent weeks, including China
Southern Airlines’ US$3.78 billion deal for 36 Airbus planes. The China Southern
deal, for A320s and A330s between 2012 and 2015, was announced as President Hu
Jintao arrived in France for three-day state visit. This week, Air China, China
Southern and China Eastern (SEHK: 0670) – China’s three largest airlines – were
among the reported buyers of 100 C919 airliners, the 190-seat jet built by the
Commercial Aircraft Corporation of China (Comac). COMAC announced the deals at
the Zhuhai air show, challenging industry giants Airbus and Boeing in what is
expected to become the world’s largest aviation market. Airbus rival Boeing said
earlier this month it expected China’s civil aircraft fleet to triple over the
next 20 years. “China is one of the world’s fastest growing and dynamic aviation
markets, driven by the urbanisation of China, the growth of its economy and an
ever increasing personal wealth,” Randy Tinseth, vice president of marketing for
the US aerospace giant, told a briefing in Beijing on Tuesday. Chinese airlines
will need 4,330 new jets valued at US$480 billion over the next two decades,
compared with global demand of 30,900 units during the period, he said. Last
week, the head of China’s civil aviation administration offered an even more
bullish forecast, saying the country would have up to 5,000 aircraft to
transport passengers and cargo by 2015, according to state media. In September,
Cathay Pacific (SEHK: 0293) said it had confirmed an order for 30 long-range
A350 Airbus aircraft with a book price of US$7.82 billion – the biggest single
order in the carrier’s history.
Beijing in talks with at least six buyers
for JF-17s - Low-cost fighter jets spur interest from developing nations at show
- At least half a dozen potential buyers are negotiating with Beijing to
purchase JF-17 Thunders, fighter jets jointly manufactured by the mainland and
neighbouring Pakistan, during the ongoing week-long air show in Zhuhai. Without
specifying which countries were considering the aircraft, Zeng Wen ,
vice-president of the China National Aero-Technology Import and Export Corp (CATIC),
was quoted by Flightglobal.com, the website of British aerospace weekly Flight
International, as saying: "We're talking with six to eight countries about the
JF-17. It is a low-cost solution for developing countries." CATIC is the sole
company authorised to sell military aircraft overseas on behalf of the country's
manufacturers. Asked to give more details about the would-be customers, CATIC
president Ma Zhiping said: "It is too early and not appropriate to disclose the
identity of potential buyers for the time being. I can only say at this stage
that they come from countries ranging from Africa and South America to Asia and
the Middle East." Zambia is known to be one of the potential buyers. "We
consider the quality of the aircraft we are interested in first, before talking
about their price," said Brigadier General Andrew Sakala, the country's air
force commander. "The price of Chinese military aircraft is competitive. We have
already bought six Z-9 helicopters from China, but for the moment, we are
focusing on the JF-17." Sakala stressed that, as was the case with the Z-9s, his
country would test several aspects of the JF-17 before closing the deal. Ma, who
introduced the JF-17's functions to a handful of attaches with the Jordanian air
force in front of CATIC's booth on Tuesday morning, said most foreign enquiries
were about the general combat capability of the aircraft and its sale price.
Attaches at the show from Bangladesh and Zimbabwe said they were keenly
interested in Chinese military products, especially the JF-17. With a price as
low as US$15 million each, the JF-17 is one of the fighter jets being considered
to replace outgoing and obsolete military aircraft such as the MiG-21, Jian-7
and Northrop F-5, especially for developing countries such as Egypt, Ghana, Sri
Lanka and Venezuela. But according to Antony Wong Dong, president of the
International Military Association based in Macau, there are more potential
buyers of the JF-17 than six or eight. He estimated at least 15 countries had
representatives at the show. He added that the JF-17 Thunder could be the most
popular fighter jet among developing countries at a time when their spending
power and threat of conflict grows. The military representatives also seized the
chance to visit a booth showcasing the L-15, an advanced trainer made by China.
Representatives from more than 10 countries had already visited the L-15 booth
by noon on opening day, one member of staff said. Air force commanders from at
least four countries had taken a closer look at the simulated pilot cabin.
China, apart from its huge economic development over the past three decades, has
also been putting greater effort into researching and manufacturing military
products for export. Zhang Hong , chief engineer of the L-15 trainer, said the
aircraft was the best of its type in the world. It can serve as both a trainer
and a fighter, which makes it particularly competitive given that its price tag
is about one-tenth that of competing products. "As a result of showing more
respect to talent, pouring in huge funding and more communication and
co-operation with foreign countries on technology, China has made significant
progress on the research and development of both military and civilian aircraft
in the past few years," Zhang said. He said China should have long ago stopped
trying to make money through blood and sweat in factories. "Instead, China
should focus on the export of its strategic products," Zhang said. "After all,
the sale of one aircraft is the equivalent of exporting a hundred million
shirts."
US Energy Secretary Steven Chu announced the launch of a clean- energy
initiative by China and the United States - one of the largest- ever research
collaborations of two nations. 
Chinese VP arrives in Luanda to visit
Angola - Chinese Vice President Xi Jinping arrived in Luanda on Friday, kicking
off his official visit to Angola.
Airbus A380 visits Tianjin - People
perform lion dance in front of an Airbus A380 landed in the airport of Tianjin,
north China, Nov. 19, 2010. It was the first time an A380 visited Tianjin.
Charming landscapes at Three Gorges
scenery area - The Three Gorges scenery area of the Yellow River, which is
located 20 km away from the Xiaolangdi Dam, has gained fame from tourists for
its charming landscapes.
Sixty Group plans US$75m listing -
Italian retailer hopes IPO in Hong Kong will power mainland expansion - Sixty
Group is the second Italian clothier in the past month to flag plans to list in
the city, after Prada. Italian fashion retailer Sixty Group, the owner of the
high-end casual wear brand Miss Sixty, plans to raise about US$75 million
through an initial public offering in Hong Kong to expand its presence in China.
Paolo Bodo, chief executive of Sixty Far East, said the group's China operation,
Sixty China, would go public in the city either at the end of next year or in a
couple of years when the company grew bigger. "We will do it," said Bodo, who is
in charge of the group's businesses on the mainland, Hong Kong, Japan, South
Korea and Taiwan. The company is discussing the listing timing with sponsors and
investment banks and will make the final decision by next month. Sixty Group is
the second Italian fashion company in the past month to flag plans to list in
Hong Kong. Milan-based luxury brand Prada said last month that it was
considering an IPO in the city next year, through which it hoped to raise up to
€1.5 billion (HK$15.72 billion). European companies are drawn to the Hong Kong
capital market because of the attractive prices they can obtain for their
shares. "If we were listed in Europe, the price-earnings ratio we can expect is
only something like eight or 10," Bodo said. "But in Hong Kong, the PE ratio
could be as much as 20 to 25, which will provide more capital for our long-term
development." In addition, the city is seen as the portal into the mainland, one
of the fastest-growing and most sought-after markets for international fashion
brands. "As far as I know, there are a number of fashion companies in Italy that
are also interested in doing listings in Hong Kong. If we can make it, we will
show them that it really works," he said. Founded by Wicky Hassan in 1989, Sixty
Group operates several brands including Miss Sixty, Energie and Killah. Known
for its fashionable denim collections, the group runs about 10,000 flagship
stores, boutiques and selling points in department stores worldwide, including
more than 200 on the mainland. It has eight stores in Hong Kong. The company
said the sales revenue on the mainland would hit 350 million yuan (HK$408
million) this year, up 37 per cent from a year earlier. The revenue for next
year is expected to reach 450 million yuan. Over the next two years, it plans to
use the funds raised from the IPO to open 200 more shops in the country. About
70 per cent of them will be located in second- to fourth-tier cities, where the
growth momentum is strong. While running most of its shops directly, it also
plans to seek more partners and increase the number of franchised stores on the
mainland to 30 per cent from the current 20 per cent. "We want to be more
independent and more efficient in making decisions because everything is
changing so fast in this market," Bodo said. "By going public, we will become a
self-financed company and gain more independence to run our China business."
Hong Kong vital for Sino-US ties, US
Consul General Stephen Young says - US Consul General Stephen Young says there
are many former officials, academics or journalists who can help bolster Sino-US
ties. There are many people in Hong Kong such as former chief executive Tung
Chee-hwa who can play a part in helping to improve Sino-US relations, according
to the top American envoy to the city. In a speech to the Asia Society which
declared that the US "is back" in Asia, Consul General Stephen Young said US
relations with Hong Kong were a model his government would like to see emulated
around the region. Young, responding to a question on Tung's role as a
semi-official diplomat, said it benefited both sides, adding that others - be
they academics, journalists, non-governmental organisation members or former
officials - could also help. "China doesn't have much of the concept of former
officials because they kind of stay on the payroll forever. [Tung] is a former
official. Over the years he has spent a lot of time in the US, he knows lots of
people," Young said. "I think there are a lot of people who play this sort of
role." Tung's long-standing diplomatic work with the US behind the scenes hit
the headlines in September when he warned a senior US military visitor against
attempting to contain China. At a dinner hosted by Young in August, Tung warned
Admiral Robert Willard, head of the US Pacific Command, against missions by US
aircraft carriers in the Yellow Sea amid heightened tension in the region. Since
stepping down as chief executive in 2005 and being appointed vice-chairman of
the Chinese People's Political Consultative Conference, Tung has been active in
patching up Sino-US ties as head of his Chinese-US Exchange Foundation. In his
speech, Young reiterated the wishes of President Barack Obama and Secretary of
State Hillary Rodham Clinton to invigorate engagement with China. He also
highlighted his country's connections to Hong Kong. And he reiterated
Washington's stance of supporting Hong Kong people's "expressed desire" to
introduce "true universal suffrage at the earliest possible date". Meanwhile,
the Hong Kong government rejected a report by the US-China Economic and Security
Review Commission published on Wednesday, which criticized Hong Kong's "delay"
in introducing universal suffrage. "The USCC report on Hong Kong is based on an
incorrect understanding of Hong Kong's constitutional position and history," the
statement said. "We strongly disagree with the USCC's recommendation, which is
made based on misguided and unfounded speculations."
Hong Kong's Independent Commission
Against Corruption (ICAC) targets veteran Jockey Club members - The arrest of
several long-standing voting members of the Hong Kong Jockey Club makes the
scope of the ICAC investigation into alleged vote-buying for membership clearer.
Among those picked up in a series of dawn raids by Independent Commission
Against Corruption investigators earlier this week were a well-known member of
the city's Indian community, Dipo Sani, and John Mackie, a long-time resident of
Hong Kong and businessman. The two, in addition to 82-year-old American Stanley
Freedman, were among 29 people arrested in an operation codenamed "Pilot" which
began on Tuesday into suspected bribery connected with applications for Jockey
Club membership. By last night, all 29 had been released on bail and no charges
had been laid. A person familiar with the investigation also said that one of
the so-called middlemen arrested on Tuesday, a local Chinese man, was caught up
in the membership bribery case of former voting member John Hung. In the Hung
case, the middleman was invited to assist the ICAC with its investigations but
was not formally arrested. However, the person familiar with this week's arrests
said Operation Pilot was not directly connected to the John Hung investigation,
at the end of which Hung was jailed. The most recent investigation stemmed from
a complaint alleging corruption in applications for Jockey Club membership, the
person said. Former voting member Hung, an ex-chairman of Wheelock (SEHK: 0020),
was jailed for two years in June last year for soliciting and accepting an
advantage for taking HK$450,000 in exchange for helping a racing member gain
full membership. The 29 people arrested this week were detained on suspicion of
involvement in bribery related to Jockey Club membership in which applicants
were asked for sums ranging from hundreds of thousands of dollars to nearly HK$1
million by middlemen for help with their applications. Among them, voting member
Dipo Sani comes from a prominent local Indian family. Sani was involved in
Rotary Club activities in the 1990s and became governor of the Hong Kong and
Macau Rotary Clubs in 2000, taking a keen interest in encouraging young people
to take up charity work during his term. Sani was also a member of the Americas
Committee of the Hong Kong General Chamber of Commerce in 2005. A Jockey Club
member who knows both Sani and John Mackie said: "The Sanis are a rich Indian
family in Hong Kong. Dipo is well-known in the Indian community here. Dipo is a
Hong Kong-born boy. He went to St Joseph's College. He also spent some time in
Miami." Mackie, who is believed to be in his 70s, has been involved in the
merchandising business, mainly importing golf clubs. "He handles a lot of horses
as well," the member said. The ICAC investigation has re-ignited long-standing
misgivings about the Jockey Club's membership application system. The club's 200
voting members get five racing application forms each season and two
full-membership forms. It has 13,640 full and 7,7670 racing members. A
spokeswoman for the club said yesterday that when the identities of the arrested
voting members had been confirmed it would stop processing any membership
applications connected to them. "The club will co-operate with the ICAC. In
fact, the membership committee has reviewed relevant policies on a regular basis
and will continue to do so," the spokeswoman said. People with a knowledge of
the investigation say the problem of people attempting to buy memberships of the
Jockey Club has been the focus of the club's security department for a number of
years. Information has been passing between the Jockey Club and the ICAC on this
for a long time. An experienced racing insider said authorities had been keeping
tabs on several of those arrested for some time. He said Mackie was involved in
merchandising in China. On the membership scheme in general, the insider said
that the ICAC's corruption prevention department had looked at the Jockey Club's
system for gaining membership and found there was not much transparency. "It
[the system] is archaic and doesn't stand up to much scrutiny. It is strongly
arguable that they should devise a whole new system of allowing members in. This
one is asking for corruption," the insider said.
IMF
backs HK peg, urges property curbs - Hong Kong should impose further credit
policies and fiscal measures to curb rising property prices instead of changing
the territory's dollar peg, the International Monetary Fund (IMF) said on
Thursday. A surge in hot money inflows has fanned market speculation that Hong
Kong might change its currency peg to the US dollar to damp inflation and avert
a property bubble. “This is not a unique problem to Hong Kong. You see this kind
of property price inflation in many of the economies in the region. You see this
in Singapore, you see this in Australia, you see this in Taipei. All these
economies have very different exchange rate regimes than Hong Kong has and they
still have this property inflation,” said Nigel Chalk, IMF head for Hong Kong,
via a video conference for the media. The IMF has projected Hong Kong’s economy
will expand by 6.75 per cent this year before moderating to 5-5.5 per cent next
year as consumption bounces back. “We will remain vigilant and continue to deal
with the challenges created by the exceptionally accommodative monetary policies
in developed economies,” Financial Secretary John Tsang Chun-wah aid in a
statement on Thursday after the IMF’s comments. Hong Kong’s housing prices have
risen about 50 per cent since the start of last year, while its Central business
district is fast catching up with London’s West End in offering the world’s most
expensive office space. Contrary to many market commentators, the IMF said Hong
Kong did not face a property bubble for the time being. “We don’t see a bubble
in the property market, we don’t see prices are deviating from fundamentals,”
Chalk said. The IMF said it expected an inflation rate of 5 per cent by the end
of next year as higher property prices feed into higher consumer prices. “Our
solution is to tackle the property market directly... and not change the peg,”
said Chalk. With prices in the luxury segment of Hong Kong’s property market at
10 per cent above levels seen in 1997, the IMF suggested further lowering of
loan-to-value ratios for a wider share of the property market and proactively
tightening further the limits on debt service ratios. The government should
consider further increases in stamp duties on housing, especially for higher-end
properties, if price inflation continues, he said.
HK's Chan Chun-hing wins mountain bike gold - Hong Kong's Chan Chun-hing
celebrates on the podium after winning gold in the men's mountain bike race
cycling final on Dafushan mountain at the 16th Asian Games near Guangzhou on
Thursday.
Fast food chain McDonald's Corp yesterday raised the prices for its burgers,
drinks and other snacks on the mainland by between 50 fen (58 HK cents) and one
yuan to offset the higher costs of raw materials. It joins many other
restaurants and food product manufacturers that have already increased prices or
plan to do so as inflation picks up. In a McDonald's outlet in Beijing, the
price for a double cheeseburger was raised to 12 yuan from 11 yuan yesterday.
Fries were also a yuan more expensive than before. In another restaurant, the
prices of McChicken and Filet-O-Fish sandwiches also went up by one yuan. A
McDonald's hotline staff said the price increase varied from location to
location, depending on their sourcing costs. Sophia Luan, a spokeswoman for
McDonald's China, told Bloomberg the price increase was aimed at covering the
higher cost of raw materials such as flour, sugar and oil. Other fast food
operators, including KFC, Pizza Hut and Burger King, said their prices had
remained unchanged over the past few months but many operators in the industry
have increased their prices or considering doing so as costs mount. Wang Yong,
who owns a Cantonese-cuisine restaurant chain in Beijing, said sourcing costs
had increased by 10 to 12 per cent in the past six months. The rise in flour and
sugar costs was sharper than other ingredients. "It's getting harder to run the
business," Wang said. "Increasing prices is the last thing we would like to do
but I'm afraid we have to do it if inflation stays high." The government has
vowed to curb food inflation. Xinhua reported Premier Wen Jiabao as saying that
the government was taking steps to cope with the problem. Interest rate
increases, higher bank reserve requirements and more curbs on bank lending are
among the possible measures, analysts say. The consumer confidence index
released yesterday by the National Bureau of Statistics fell to 104 from 109 in
the third quarter after climbing for five consecutive quarters. The main reason
for the drop was that consumers were less willing to spend, according to a
survey conducted by the bureau and Nielsen. The survey also found that an
increasing number of consumers were concerned about rising prices, with people
in rural areas and first-tier cities the most worried. Food prices, which
account for a third of the consumer price index, have been the main driver
behind the recent inflation. Almost 80 per cent of respondents in the survey
said they expected food prices to accelerate next year.
Bluestar targets HK$12b in share offering - Robert Lu, the chairman of Bluestar
Adisseo, talks via a video link from London at yesterday's press conference to
announce the initial public offering of the company. Bluestar Adisseo Nutrition
Group, an animal nutrition company majority owned by China National Chemical
Corp, is tapping Hong Kong's equity market for HK$12.08 billion. According to
the listing prospectus, state-owned ChemChina and private equity firm Blackstone
Group own 80 per cent and 20 per cent of the company, respectively. Bluestar
Adisseo's offering has been priced at an indicative range of HK$3.50 to HK$5.25
per share. At a video press conference from London at the JW Marriott in Pacific
Place, the company said 40 per cent of the net proceeds from the share sale
would be used to boost production capacity and upgrade its plants in Europe.
Another 40 per cent would be used to develop its feed business, including
potential acquisitions. The company, headed by Robert Lu, also said it would
allocate 5 per cent of the net proceeds to repay short-term bank borrowings,
including from Standard Chartered. According to reports by Bloomberg, China
National Bluestar bought France's Adisseo Group for US$480 million in 2006. In
October 2008, ChemChina completed its stake transfer deal with Blackstone, which
saw the US private equity company pay US$600 million for a 20 per cent share in
its subsidiary BlueStar. The company, which claims to be among the top three
producers of methionine by capacity globally, also makes vitamins, enzymes and
sulphur products primarily for feeding poultry, which it said was the fastest
growing segment of the livestock industry. Methionine is a protein used in
poultry feed. Bluestar Adisseo has 1,165 employees and five production sites in
France, Spain and the United States. The company said it wanted to increase
sales on the mainland and planned to build a production plant to make methionine
in Nanjing. Trading of Bluestar Adisseo shares is expected to start on November
30. Although Hong Kong's initial public offering market is still sizzling, not
all of the performances from newly listed companies have been impressive.
Shirble Department Store Holdings fell 17.7 per cent below its offer price of
HK$2.20, closing at HK1.81 on its trading debut. Citic Dameng Holdings - Citic
Resources Holdings' manganese mining and smelting unit - is also not expected to
perform well. According to Phillip Securities, which operates the only
pre-listing trading platform in Hong Kong, Citic Dameng shares closed at HK$2.61
- 5.1 per cent lower than the offer price of HK$2.75.
Tai Wai launch is test of market's
mood - Discounted prices ensure buyers show keen interest in Festival City's
phase two - Festival City in Tai Wai. Phase two seems popular with would-be
buyers, with prices below those in the first phase of sales in March. The
upcoming launch of the second phase of flat sales at Cheung Kong (SEHK: 0001)'s
Festival City project above the Tai Wai MTR station will provide the first test
of market sentiment since last month's annual policy address by Chief Executive
Donald Tsang Yam-kuen. Early signs are that since the release of a list of
slightly discounted prices, enthusiastic would-be buyers are already queuing up.
"It's conveniently located on the top of the Tai Wai MTR station, so I think it
has potential," said Mary Wong after viewing the show flats. Wong and her
husband, who live in Taikoo Shing, are considering spending at least HK$8.4
million for a flat in the development, which is expected to be completed in
October. "The prices are reasonable and have potential to grow," said Wong.
Health chiefs order bird flu tests at
hospitals as city goes on high alert - Onlookers stare up at a parrot in the
bird market at Mong Kok, where samples were taken for testing yesterday as the
city reacted to its first case of bird flu for seven years. Patients who turn up
at Hong Kong's public hospitals with a high fever will have to be tested for
bird flu, health chiefs ordered yesterday. The move comes after a local woman
infected with the H5N1 virus was moved into intensive care as the city's health
minister Dr York Chow Yat-ngok denied there had been a delay in her diagnosis.
Child
campaigner ends a 30-year crusade - Priscilla Lui joined Against Child Abuse in
1979, became director at 32 and spent decades furthering the cause of children's
rights. When Priscilla Lui Tsang Sun-kai joined Against Child Abuse at the age
of 28, she never imagined she would still be there at 60. But Lui, who will
retire soon as director of the non-governmental organisation, said she got
caught up in the meaningful nature of the work. "I love children. I really love
children. They invigorate me, make me feel young, and instil in me a great sense
of living," she said. "It breaks my heart when I hear news about children who
had accidents while left alone at home, and being seriously injured from
corporal punishment." Those sentiments led her into the role of a motherly
figure to whom Hong Kong people have turned in the past 30 years when they
needed advice on child protection. Those days will soon be over. Her contract
ended when she was 55, four years ago, but it was renewed for five years. Now
she thinks it is time she stepped aside.
As soaring food costs grip the
nation, Beijing yesterday moved to tackle inflation with a round of new measures
- and a vow to impose price controls if necessary. Hong Kong and Shanghai stocks
earlier plunged over fears of such a move - the measures were announced after
the markets closed - in addition to concerns that further tightening steps loom
on the horizon. The moves come after Premier Wen Jiabao reportedly made tackling
price surges a top priority following his visit to a Guangzhou supermarket last
week. Announcing the four measures yesterday, the Cabinet said it aims to boost
the supply of food and commodities as well as facilitate transportation. It will
also try to curb speculative demand. In addition, local authorities will provide
food subsidies for poor families as it tries to cool a double-digit surge in
prices that Beijing worries could spark unrest. "We have to understand the
importance and urgency of stabilizing market prices and take forceful measures,"
the State Council said after a meeting chaired by Wen. "When necessary, more
temporary intervention measures will be implemented on prices of some important
daily necessities and production materials." Those who hoard commodities and
push up prices by illegal means will be punished harshly, the State Council
warned. Bank of America Merrill Lynch China economist Lu Ting said Beijing
clearly has price controls in mind. "The State Council says that it could
temporarily intervene over the prices of some important consumer staples when
necessary," he said. But this is not the right time to control prices of
consumer staples as such measures will only infuse more fear and uncertainty, Lu
warned. Societe Generale global strategist Dylan Grice described possible price
controls in the mainland as "the worst thing you can possibly do. Price controls
prevent rationing, price controls prevent the reduction in demand." Meanwhile,
stocks of resource firms bore the brunt of yesterday's sell-off with the Hang
Seng Index giving up 2 percent to close at 23,214.46 - the lowest since October
29, while Shanghai stocks fell 1.9 percent to 2,838.86. Analysts said it was a
major correction. Linus Yip Sheung-chi at First Shanghai Securities expects the
HSI to consolidate between 23,000 points and 24,000 before staging another
rally. Adding to the uncertainty is widespread speculation that the People's
Bank of China will raise interest rates as early as tomorrow. "It would be
easier for banks [if rates were raised tomorrow], as they settle interest on the
20th day in the last month of a quarter, to make adjustments," an analyst told
China Securities Journal. Daiwa Capital Markets chief Greater China economist
Sun Mingchun concurred, adding that there could be three to four hikes from now
till the end of 2011. "Beijing's attitude to inflation control is serious," Sun
said, adding the decision will depend on the November data, with inflation
unlikely to stay below October's level. But Wu Xiaoqiu, dean of the Finance and
Securities Institute at the People's University of China, said a rate hike
within this year is unlikely. "It usually takes six months to see if the policy
is effective," he said. Some large corporations already have an answer to
soaring costs. McDonald's Corp said it raised menu prices in the mainland.
Rising material costs have prompted the fast-food chain to increase prices for
some items by 50 fen to 1 yuan. A Big Mac now costs 15 yuan, which is around
HK$17.50 - just marginally higher than its Hong Kong price tag of HK$17.30.
Hong Kong International Airport, which had been crowned the world's best airport
for more than 30 times, has once again been recognized with the bestowal of the
" Best Airport in China" award in Shanghai, the airport authority said in a
statement on Thursday. Reaffirming the excellence of Hong Kong International
Airport's services and facilities, this was the fourth time in six years that
the airport has received this accolade from leading travel publication Business
Traveler China. Since the annual survey was launched in 2005, Hong Kong
International Airport has also taken home the same award in 2006, 2007 and 2008,
according to the statement. Hong Kong Airport Authority Chief Executive Officer
Stanley Hui said the award "is a strong feedback on the ceaseless efforts made
by our entire 60,000 airport workforce, including our business partners and
government departments". "Winning this award has also reaffirmed our status as a
preferred gateway to the Chinese Mainland, as well as an international and
regional aviation center. We will continue to upgrade our facilities to ensure
pleasant and seamless journeys for all travelers at the Hong Kong International
Airport," he added. In addition to this recognition, the Hong Kong International
Airport has received more than 10 other local and international awards related
to airport facilities and services this year. These include being named "Best
Airport" at the 21st TTG Travel Awards 2010, as well as being selected as
"World's Best Airport" by the Airports Council International among airports with
an annual passenger throughput of over 40 million.
China Gold looks
overseas - China National Gold Group Corporation (CNGGC), the country's largest
gold producer, will increase its annual capacity to 50 tons in five years, out
of which 30 to 40 percent will be produced overseas, a company official said on
Wednesday. The company is looking for overseas resources and aims to expand its
foreign output to 20 tons by the end of 2015, Du Haiqing, vice-president of
CNGGC, told China Daily at a mining conference in Tianjin. "We are looking for
gold resources in Congo, Brazil, Russia, Venezuela, and Mongolia, and most of
them are in the early stage of geological exploration," Du said. He said the
company is fairly cautious about overseas investment but is also "active and
steady". China Gold International Resources Corp, the overseas-listed arm of
CNGGC formerly known as Jinshan Gold Mine, started the subscription for its IPO
in Hong Kong on Wednesday, aiming to raise up to HK$2.4 billion ($309 million).
Proceeds from the offering will be used to boost production capacity, acquire
overseas gold and nonferrous metal resources, and replenish working capital. As
much as 30 percent of the offering will be used in overseas investment, the
company said. Du said the company's bullion output will reach a record 32 tons
this year, up from 28 tons in 2009, to cash in on growing demand for the yellow
metal in China. With around 70 mines across China, the company produces 10
percent of the country's gold, and its deposits will reach 1,300 tons this year,
up from 275 tons in 2006. Bullion investments have risen sharply in the past few
months as the realty market turned bearish. China, the biggest gold producer and
third-largest gold consumer in the world, is expected to report higher output
this year, Du said, adding that the country's gold output has already surpassed
320 tons this year. The nation's gold output in 2009 increased 11.3 percent year
on year to 313.9 tons, and accounted for 13 percent of global gold production.
Global demand for gold surged 12 percent year-on-year to 922 tons in the third
quarter, driven by higher demand from India, China, Russia and Turkey, according
to a report by the World Gold Council (WGC) released on Wednesday. Total demand
will be driven by Indian and Chinese consumption, as well as higher demand for
gold jewelry in the key Indian market. Additionally, ongoing concerns over
fiscal imbalances allied to currency tensions will continue to support
investment demand for gold, the WGC said.
Foxconn aims to spark
electronics sales war - Company teams up with European giant to take on Suning,
Gome - An employee looks at a laptop during a media event at the inauguration of
the first Media Markt store in Shanghai. Metro AG, the world's third-largest
retailer, aims to expand rapidly to win a share of China's consumer electronics
market. Leading European electronics retailer Media-Saturn and Foxconn
Technology Group, the world's largest contract manufacturer of electronics, on
Wednesday fired the opening shots of the latest battle in the mainland's highly
competitive electronics retail market. The two, who are aiming to shatter the
dominance of local giants Suning and Gome, opened their first outlet in the
mainland on Shanghai's iconic Huaihai Road. The store, Media Markt China, is a
joint venture, with Metro Group and Media Markt's two founding families, the
Kellerhals and the Stiefels, holding 75 percent of the shares, and Foxconn
Technology Group holding the remaining 25 percent stake. Jiang Peifeng, a
consumer electronics industry researcher from Digital China (Beijing) Brand
Communication Institute, said that the opening of the Shanghai store showed that
the two giants' were testing the waters before making a massive foray into the
mainland market. "Both of the companies are industry leaders, but the mainland
electronics retail market is new to both of them," said Jiang. Seeing thinner
profit margins from outsourcing manufacturing, Foxconn has been on the lookout
recently for opportunities to develop its own brand and to open its own retail
outlets. In March, Terry Gou, president of Taiwan-based Foxconn, announced an
ambitious plan to open 1,000 electronics retail stores in three years, but, in
the meantime, no concrete developments had taken place, Jiang said. Media-Saturn
Chief Executive Officer Roland Weise said the joint venture will open 10 stores
in Shanghai over the next two years. After that, the partnership will "ramp up
its presence" on the mainland by opening more than 100 outlets throughout the
country, he said. But Weise is aware of the fierce competition in a market
currently dominated by local players Suning and Gome. "As a leading innovator in
the market for consumer and home electronics and working with a strong partner
like Foxconn, we are in the best possible position to pursue our growth strategy
- which has already proved successful in Europe - in Asia to tap this huge
growth potential," Weise said. China's retail electronics market, growing at an
annual rate of 8 percent, is expected to have a total volume of 150 billion
euros ($203 billion) in 2013, and the Shanghai market alone will exceed 5.5
billion euros, according to Media Market. Louis Woo, head of the channel
business group of Foxconn, said that Media-Saturn's track record in Europe
clearly demonstrates that it is capable of becoming a regional market leader
within a short period of time. "As a Media Markt China shareholder, we will be
working with Media-Saturn to successfully serve this market that we know so
well. "This cooperation between the world's leading electronics manufacturer and
one of the world's leading electrical goods retail companies offers countless
other opportunities which we will be seeking to develop for the benefit of
consumers in China and all of our shareholders," Woo said. The first Media Markt
store on Huaihai Road of Shanghai has a sales area of 9,500 square meters and
offers more than 45,000 products. 
Cathay Pacific Air cargo
venture set to take off - Chief Executive Donald Tsang Yam-kuen receives a
souvenir from Haeco chairman Christopher Pratt yesterday. An air-cargo venture
expected to increase Cathay Pacific Airways (SEHK: 0293)' presence on the
mainland could take off as early as next month, chairman Christopher Pratt said
yesterday. The venture between Cathay and Air China (SEHK: 0753, announcements,
news) finally won approval from the Beijing government after months of delay,
Pratt confirmed yesterday while attending Haeco (SEHK: 0044)'s 60th anniversary
celebration. Operations could start on January 1, if not next month. Pratt
stopped short of predicting the deal's impact on the earnings of Hong Kong's
largest carrier - expected to hit a record HK$12.5 billion this year - but said
he was optimistic about both cargo and passenger growth in the first quarter of
next year. Cathay Pacific sealed an agreement with its subsidiary Air China back
in February to invest 1.7 billion yuan (HK$1.98 billion) in the latter's cargo
unit. Cathay will control 49 per cent of Air China Cargo, including a stake to
be held by an offshore trust. It will inject four Boeing 747-400 freighters and
two spare engines into the unit to pay for the transaction. The airline said the
joint venture would help it gain cargo traffic in the Yangtze River Delta, where
cargo throughput has grown neck and neck with that in the Pearl River Delta.
Kelvin Lau Wai-kin, transport analyst of Daiwa Capital Market, said the deal may
be more beneficial to Air China than Cathay. "Obviously Cathay's major cargo
business would still come from Hong Kong. It does not rely solely on the venture
for its mainland cargo business as it has its own freighter routes there," Lau
said. "Air China, on the other hand, could learn a lot from Cathay about the
management and operation of the trade as few existing mainland airlines can
handle the competition from experienced market players like UPS." Cargo business
accounts for about a fifth of Cathay's total sales but the proportion may grow
when the first batch of 10 freighters ordered by the airline are delivered in
the second half of next year. Hong Kong International Airport, the busiest
international air-cargo hub in the world, continues to make records with its
cargo tonnage and aircraft movements. Last month it handled 373,000 tonnes of
cargo, up 15.5 per cent over the previous year, while passenger traffic jumped
11.9 per cent to 4.4 million. Norman Lo Shung-man, the director-general of civil
aviation, said daily aircraft movement was closing in on 1,000 trips. The
capacity, he said, could be pushed to 1,200 to 1,300 trips per day through
system and manpower enhancement.
For city's elite, it's the only club in
town - As with most prestigious members-only clubs, admission to the Hong Kong
Jockey Club is highly coveted. With exclusive clubhouse facilities throughout
Hong Kong and in Beijing, the club is an obvious magnet for bankers, socialites,
lawyers, doctors and the business elite, meaning long waiting lists are
inevitable. The club's roughly 200 voting members, who tend to be major movers
and shakers around town, technically control who gets in because all application
forms are distributed through them. Every year, each voting member has only two
full member and five racing member application forms available to give out. High
demand, especially for full memberships that offer unrestricted access to all
club facilities, means voting members are constantly inundated with requests for
those application forms. But with only about 400 up for grabs each year,
full-member application forms are almost never available on request and
applicants usually have to queue for several years to get one. Racing member
application forms are generally readily available but are less desirable,
because they offer limited benefits. Racing members, for instance, are not
allowed to use the Happy Valley clubhouse in Shan Kwong Road. There is also no
secondary market for these club memberships because they cannot be transferred,
meaning access to voting members is key to becoming a member. For racing member
applications, two voting members are needed - one to propose and another to
second the applicant. Another three ordinary members, such as existing racing or
full members, must also vouch for the applicant. For full-member applications
from racing members, only the proposing voting member need fill out the form.
But outside applicants wishing to join the club as full members must
simultaneously apply for racing membership. In 2007, the Racing Club was
established as a way to help attract a new and younger generation of horse
racing fans without compromising the existing application process. Billed as a
stepping stone to racing and full membership, the Racing Club does not require
applicants to seek the support of voting members. Louis Tam, general manager of
Garway Membership Services, which acts as a middleman between various clubs and
potential members, said improving incomes and a lack of new members-only clubs
were keeping demand strong and prices high for memberships.
USS Essex arrives in HK in sign of easing tension - US naval officers line up on
the deck of the USS Essex, which began a four-day port call in Hong Kong
yesterday. American warship the USS Essex began a four-day port call in Hong
Kong yesterday with a high-profile invitation to the city's media to tour the
vessel, a signal that suggests Sino-US military relations might be warming up
after nearly a year of turmoil. Beijing has severed military contacts with the
United States since February following Washington's decision to sell US$6.4
billion worth of arms to Taiwan. The relationship has been further strained as
the US tries to boost its presence in Asia, commenting on disputed waters and
holding joint military drills with South Korea off China's eastern shore. A
meeting between US Defence Secretary Dr Robert Gates and Chinese counterpart
general Liang Guanglie in Vietnam last month was the first step to putting ties
back on track. Gates accepted an invitation to visit China early next year - he
originally expected to visit this June. However, patching up will take time:
even though the US navy extended an invitation to media to tour the vessel, US
officers said there would be no contact with the People's Liberation Army
garrison during the stay. "This is a purely regulation port visit for us ... We
do have a reception tomorrow on board for the embassy on the behalf of the
American ambassador and myself," USS Essex fighting group captain Mark Weber
said. No PLA or Hong Kong officials had been invited. Hong Kong has for decades
been a popular port for the US navy both for maintenance and recreation. Since
the handover, applications for port calls have had to be made to the Ministry of
Foreign Affairs. However, although such port calls remain routine, they have
encountered problems on several occasions during times of tension. Just last
month prior to the Gates-Liang meeting, US naval officers cancelled a visit by
aircraft carrier the USS George Washington to Hong Kong for what they said were
operational reasons. The USS Essex resembles a small aircraft carrier, and is
the only permanently forward-deployed US amphibious assault ship, serving as the
flagship of the Essex Amphibious Ready Group. It carries transport and attack
helicopters, jets, trucks, Humvees, amphibious assault craft, and over 2,200
sailors and marines. Although the warship has visited Hong Kong before,
yesterday was the first time it invited media aboard. The US navy arranged for
two American-Chinese sailors to brief the press. Eric Tan, 26, a Guangzhou
native and American sailor who moved to the US with his family when he was 12,
said he was happy to come to Hong Kong: "I am very happy because it's my last
time working for the USS Essex. I will miss my days on board and my visits to
Hong Kong." Mainland scholars on Sino-US relations said the unusual arrangement
could be interpreted as the US trying to send friendly signals amid warming
military ties and a scheduled visit by President Hu Jintao to the United States
in January. "Sino-US relations rarely affect the US navy making port calls in
China," Professor Shi Yinhong of Renmin University said. "But under the
circumstances both sides might want to be more proactive to create a good
atmosphere."
Lunar New Year fair stalls auction sees record-high HK$63,000 bid - The prices
of winning bids for stalls are marked on a layout plan during the auction. A
dry-goods stall for the Lunar New Year fair at Victoria Park next year fetched a
record HK$63,000 at auction yesterday - more than six times the cheapest stall
which went for HK$10,490. A total of 284 dry-goods stalls were up for grabs on
the second day of the Lunar New Year fair auction yesterday at Queen Elizabeth
Stadium. May Chung Mei-wai, who made the top bid, said she would sell
traditional Cantonese desserts at the stall, such as rice puddings and white
sugar cakes. "I do not know why the competition is so intense this time. The
stall is unexpectedly expensive. Our budget was only HK$50,000." But she was
confident the stall would not lose money, as people were more willing to spend
money in recent months, she said. Shoppers at the fair will likely need to fork
out more for a cake at Chung's stall, as the price of ingredients were up 20 per
cent, she said. Meanwhile, veteran democrat politician Szeto Wah might not be
able to write the "fai chun" - the traditional good luck posters for the new
year - at this year's fair. Szeto, who is battling cancer, wanted to attend but
it was uncertain whether he would be fit to write fai chun, said Lee Cheuk-yan
of the Hong Kong Alliance in Support of Patriotic Democratic Movements in China.
"It depends on the advice from the doctor," he said. Lee, who represented the
alliance to secure two stalls for HK$42,000, expected revenue to fall if Szeto
could not write the fai chun, but said their souvenirs for sale on Nobel Peace
Prize winner Liu Xiaobo would make up for it. Most bidders were young people,
with many students trying to gain real-world business experience. Polytechnic
University finance student Owen Chow, who secured a stall with HK$22,500, said
he would sell rabbit toys with a dozen friends. He said he hoped to make at
least HK$30,000 from the venture. "I hope to get some business experience before
I graduate," he said.
TVB board reinstates manager in ICAC probe - TVB's Stephen Chan (centre) faces
the media yesterday. Television Broadcasts (SEHK: 0511) executive Stephen Chan
Chi-wan resumed his duties as general manager yesterday, eight months after
being suspended following his arrest by the ICAC. "I want to thank God," were
Chan's first words to journalists who waited at TVB's headquarters in Tseung
Kwan O after a Hong Kong Exchange announcement yesterday morning. His Christian
comment contrasted with a Zen Buddhist remark Chan made in March after his
arrest. Then he said: "What is false cannot be true. What is true cannot be
false." Three bribery charges against Chan were dropped early this month but he
and others still face a District Court case on other charges. Chan thanked the
company for having him back. He said he would dedicate himself to work and
strive to produce high-quality programs. "I'm most concerned about how my
colleagues [and I] can do a better job," he said.
Brave Hong Kong cyclist Wong Wan- yiu took a heavy tumble at speed yesterday but
picked herself up to ride to silver at the Asian Games on a day that saw Hong
Kong also claim gold in wushu, another silver in men's cycling and bronze in
snooker. Geng Xiaoling won Hong Kong's first wushu gold medal of the Guangzhou
Asian Games, overcoming injury to capture the Changquan title. The men cyclists,
led by Cheung King-lok, took silver in the team pursuit behind South Korea. And
capping a good day, Ng On- yee won bronze in the women's six-red snooker singles
as the SAR improved its medal haul to 11, including three golds. But the big
talking point of Games day four was the women's cycling points race, which saw
two spectacular pile- ups. A first crash that saw all the riders back on their
bikes was followed by a huge smash that left several dazed and strewn across the
track - with some unable to continue - as coaches and medics rushed to their
aid. Wong, 24, gingerly got back on her bike and completed the race to take
silver in what coach Shen Jinkang called "a miracle." Fellow SAR rider Diao
Xiaojuan, 26, was not so fortunate and had to be stretchered off the track at
the Guangzhou Velodrome. "She dislocated her shoulder in the crash," Shen said.
Wong had to be helped up to the podium to collect her medal and sobbed
uncontrollably as she shakily stood for the national anthem, clutching her arm
and her knees clearly badly bruised and grazed. Wong was taken from the
velodrome in a wheelchair. China's Liu Xin won gold and Thailand's Chanpeng
Nontasin bronze in the event. "I've had similar injuries before and believe I
have fractured ribs this time. Yet, I never thought of giving up during the
competition. This match is particularly important to me as the points race in
the Olympics Games has been canceled. I believe this is my last participation in
such a large sports competition," said a tearful Wong as she was being pushed
away in a wheelchair.
Hong Kong Pet owners find options are
opening up in serviced flats - Flats at Chi Residences, Connaught Road West, are
big enough for families with a large dog. Serviced apartments allow tenants to
keep pets, whereas rented flats often bar them. Last year Jessie Yip Wai-lun
found herself and her family in a bit of a bind. Yip and her husband sold their
apartment in Pok Fu Lam to buy a village house in Tai Po that would give them
the 2,100 square feet they needed for themselves and their two young children.
But they wanted to renovate before moving into their new house, and while the
work was under way the family and pets - a Jack Russell terrier and two turtles
- needed somewhere to stay for two months. "Finding somewhere that was `pet
friendly' was important, otherwise our dog would have had to go into kennels,"
recalled Jessie Yip. "That's torture because I don't think kennels treat the
dogs very well. Also it would cost a fair amount." A serviced apartment was the
obvious solution. So Yip found a list of operators and started calling around.
Each call grew more and more dispiriting as she found out for herself that Hong
Kong lived up to its reputation as one of the most pet-unfriendly major cities
in the world. Only two landlords said they accepted pets. "Most said no," she
remembers. "I even asked if they allow small pets. But they said they are very
strict. Pets of any size are not allowed." A year on, and there are signs that
this attitude is beginning to change, albeit slowly. Faced with a competitive
environment, serviced apartment operators are searching for ways to set
themselves apart, and a handful have explicitly outlined policies under which
the furrier members of the family are welcome. Five now allow pets. Yip ended up
staying in Kennedy Town at S-Residence, a block of 14 serviced apartments on
Catchick Street. The operator allows small dogs as well as cats, birds, turtles
and others. "We are happy to offer the service," manager Shing Dai-kung said. "I
think there is a need in this market. Not everybody has a pet but those that do
really do care for their pets." Several other chains of serviced apartments
allow pets, normally at just one of their locations. The Ovolo at 111 High
Street, the Shama in Wan Chai, and the Apartment O block run by Eton Properties
in Causeway Bay all also accept animals. Some even champion the fact. The Chi
Residences serviced apartment block at 120 Connaught Road West in Sheung Wan
welcomes cats and dogs, and the operator recently put out a small guide for pet
owners that acts as a primer on how to navigate the city with their charges. Chi
charges HK$1,500 per pet per month. Still, it's a short list of five, perhaps
because the companies that run serviced apartments are worried they will get
complaints from other tenants. With occupancy rates above 90 per cent, there's
not huge pressure on them to make concessions. "There are very few that allow
pets," Anne-Marie Sage, the regional director for residential at Jones Lang
LaSalle, conceded. "You can understand why when you have the turnover that you
have in serviced apartments. The inconvenience that it causes to other people is
a problem, and then there's the wear and tear." At Chi, the 12-page pamphlet is
basic but gives listings for all the most important contacts families are likely
to need as they settle in with pets - vets, grooming salons and pet-food shops.
Chi Residences chief executive Pilar Morais says its generation stemmed from the
legwork she herself has done both literally, in a family that has 13 pets, and
figuratively while caring for what the Morais family call their "fur kids".
There are handy tips on which restaurants welcome dogs, as well as which beaches
you can get away with walking a dog - at Shek O back beach and the side of
Stanley main beach (although of course it's still against the rules). Five to 10
per cent of the queries Chi fields are related to families looking to house
themselves with their pets. "So there is definitely a niche market, particularly
for people relocating from overseas, as well as those renovating their homes and
in need of temporary accommodation for themselves and their pets," she says.
Yip, who falls in the second camp, believes Hong Kong is very unfriendly towards
pet owners. Public housing estates don't allow dogs, and they're chased off any
of the beaches that have lifeguards. "Even the public parks don't allow dogs,"
Yip notes. "There are some dog parks in Hong Kong but the number is limited and
you can never find a dog park near where you live." But more flexible attitudes
are emerging. While Chi Residences charges tenants to house their pets on
Connaught Road, there's no charge at S-Residence. But the operator only accepts
smaller pets. "If we have to do extra cleaning or there is damage, we claim more
from the deposit," Shing says. "In general our experience hasn't been bad. But
we've also been a little bit picky." Some 10 to 20 per cent of the tenants keep
pets. The apartments are reasonably small, at 550 sq ft, so bigger animals can't
be accommodated. But Yip, who was also moving with her amah and so needed the
two bedroom units at S-Residence, found they fit the bill.
Vice President Xi Jinping
began a trip to mineral-rich South Africa on Tuesday aimed at securing resources
for the Asian economic power, looking to extend its influence in the African
continent. Vice President Xi Jinping is welcomed by South Africa's Deputy
President Kgalema Motlanthe at the South African Parliament in Cape Town on
Tuesday. Beijing sees global mining power and regional financial services leader
South Africa as a vital source of commodities to fuel its rapidly expanding
economy and industries and as a stepping stone to access other African states.
Xi, pegged as China’s next president, is on a three-day official visit to
Africa’s largest economy, which exports about US$5.5 billion a year in minerals
to the state and has been increasingly a destination of Chinese foreign direct
investment. “As the international landscape evolves and China-South Africa
co-operation deepens, the need for our bilateral co-operation is growing, the
areas of co-operation are expanding and a confluence of our interests is
increasing,” Xi said on Tuesday. The Chinese delegation and South Africa are
expected on Wednesday to sign a bilateral memorandum of understanding for
co-operation in geology and mining, and a letter of intent related to South
Africa’s energy sector, among others.
China's Guo Shuang made history at the Asian Games on Wednesday as she powered
to the women's sprint title to become the first female track cyclist to win
three Asiad golds. China's gold medal winner Guo Shuang (left) and silver
medallist Lin Junhong ride with the Chinese flag to celebrate winning the
women's sprint cycling event at the Asian Games on Wednesday. On the last day of
track action, Asia’s finest female sprinter was simply too good for fellow
Chinese Lin Junhong, adding to the sprint and 500m time trial golds she picked
up in Qatar four years ago. It was China’s seventh consecutive gold medal in the
event.
Situated in China's Guangxi Region, Guilin is a scenic town and one of the
best-known tourist destinations in China. There are many scenic places within
short traveling distance of Guilin. These include Longsheng with its famous
Longji rice terraces; The Li jiang river, a scene of which is printed on the
back of ?20 bank notes; Yangshuo, a small city downstream form Guilin; and much
more. This makes Guilin an excellent base for exploring the northern end of
Guangxi region. Guilin is a beautiful city. The town center is surrounded by two
rivers and four lakes and studded with shear sided karst mountains. Outside the
city center, the buildings are less well kept. The main industry in the city is
tourism. Guilin itself is like most other medium size Chinese cities, other than
that it has a large number of western-style hotels, tourists and is relatively
free of air pollution. Many Chinese domestic tourists also flock to this area.
What makes it special is its proximity to many picturesque limestone mountains
and formations. Guangxi and Guilin are home to 12 different ethnic minorities
besides the Han Chinese. Guangxi is an autonomous region for the Zhuang ethnic
group, rather than a province.
Green is the China's theme at
high-tech fair - The opening ceremony of the China Hi-Tech Fair 2010 is held at
the Shenzhen Convention & Exhibition Center on Nov 16. The event will go until
Nov 21. This year's China Hi-Tech Fair (CHTF), which kicked off on Nov 16 and
will go until Nov 21, is seeing companies focus more on exhibiting
environment-friendly technologies as China steps up efforts to promote a
"low-carbon" economy and encourage green innovations. This year's fair, held in
Shenzhen, is China's largest platform for international technological and
economic exchange, highlighting emerging industries of strategic importance,
low-carbon economy and environment-friendly technologies, according to the
event's organizing committee. Companies that specialize in new energy and green
technologies, such as electric carmaker BYD and photovoltaic industry leader
DuPont, attracted a great deal of attention, thanks to the prospect of business
opportunities. One of the participating companies, the Shenzhen Institute of
Building Research Co Ltd, said its business in green building consultation has
grown by a large margin in recent years, according to Wei Xinqi, an architect at
the institute. Wei told chinadaily.com.cn that the consultation business on
green building, which includes technological tips, planning, standard drafting
and other aspects in construction, accounts for 30 to 40 percent of their
business, as more local governments and developers become aware of environment
protection and energy conservation. The State-owned institute began its research
and business on green building in 2000 and now is a leading enterprise of its
kind in southern China, and its clients include major developers such as Vanke
and China Merchants Property, said Wei. He added that this is the third year the
institute has taken part in the event. Lenovo, China's leading PC maker, has
attended the fair every year since its launch in 1999, and this year it put the
emphasis on its energy saving products: an all-in-one desktop and cloud
computing solutions, according to a staff member at Lenovo. The all-in-one
desktop can save electricity by 30 percent, the staff member told
Aerospace reaches for the stars -
Models of Long March rockets displayed at Airshow China in Zhuhai, Guangdong
province. China's commercial aerospace sector took a further step toward
major-player status in the global market on Tuesday. That came as China Great
Wall Industry Corporation (CGWIC), the country's only satellite exporter and
launcher for overseas customers, agreed to buy 20 carrier rockets and eight
satellites in the next five years. CGWIC will buy 20 Long March 3A rockets and
services from the China Academy of Launch Vehicle Technology. The company will
also purchase eight telecommunications satellites, including the Dongfanghong-4
model, from the China Academy of Space Technology (CAST). The contracts have a
combined value of 15 billion yuan ($2.26 billion). "It shows our confidence and
our determination in competing in the global market," said Yin Liming, the
president of CGWIC. The deal is expected to boost exports of Chinese-made
satellites to as much as 10 percent of the international market, and might help
the country secure 15 percent of the international commercial launching market
within five years, according to Yin. Each year between 20 and 30 geostationary
communications satellites are sent into orbit by commercial providers around the
world, according to the company - making feasible the nation's goal of taking 10
percent of the global market by selling at least eight satellites over a
five-year period. The president of CGWIC elaborated that the pre-order could
also "bring forward research and development of rockets and satellites ahead of
schedule, shorten the delivery period, and improve the company's sensitivity to
the market trend". CGWIC is not the only enterprise to grasp the momentum of
rising international demand for Chinese aerospace products. Hao Zhaoping, deputy
director of the China Academy of Launch Vehicle Technology (CALT), whose rockets
are used by tens of countries and regions, said global demand for Chinese
rockets and services continues to grow. "We now produce 12 to 15 Long March 3A
rockets each year; and that supply is almost equal to the market demand," he
said. The contracts were signed at the Eighth China International Aviation and
Aerospace Exhibition, also known as Airshow China, which began Tuesday in Zhuhai
in Guangdong province. CGWIC, CALT and CAST are all subsidiaries of the China
Aerospace Science and Technology Corporation.
Mainland customs authorities defended a new rule that means they can tax people
taking in iPads. Despite widespread criticism that the rule is a violation of
Beijing's promise to the World Trade Organisation, officials said it was
"helpful". Huang Yi , head of the General Administration of Customs' Department
of Supervision, said that people have to pay extra tax on their iPads as they
are now categorised as laptop computers. It is the first time customs have
confirmed iPads are taxable, although stories of people being penalised for
taking the devices to the mainland were reported before. The new rule has
already had a big impact on shops in Hong Kong, which offer the cheapest price
for iPads in the world and attract busloads of customers from the mainland every
day. A shop owner at Wan Chai Computer Centre said business had fallen 30 per
cent since mainland customs started to enforce the rule. The regulation took
effect in August but did not attract public attention until last month, when an
increasing number of travellers reported having to pay 1,000 yuan (HK$1,165), or
a fifth of the retail value, to take their iPads home. Many users complained
they had bought their iPads for less than 5,000 yuan - the threshold for a
taxable electronic product in Hong Kong. Most iPads, except the top model, are
sold below that price. But Huang said they fixed the valuation of the iPad at
5,000 yuan because "most laptops" cost that much and they had to take into
consideration " travellers' convenience and officer's work efficiency", the
Beijing Evening News reported yesterday. Huang made the remark after the
Ministry of Commerce raised the question with customs last month. The ministry
issued a letter to China customs, pointing out that one of the mainland's major
promises to the WTO was to entitle all information technology products to
zero-tariff treatment once the country joined the organisation. The report also
quoted the ministry as saying both the iPod value set by customs and the 20 per
cent tax rate were too high. Meanwhile, consumers complained about having to pay
up. Zhu Lieyu , a senior lawyer with Guangdong Guoding Law Firm, said the
regulations violated China's promise to eliminate duty on IT products covered by
the WTO's Information Technology Agreement. They also seemed to ignore the basic
fact that people always take portable electronic devices with them on
cross-border trips. "It does cause a lot of trouble to ordinary travellers
entering the mainland, so how can they call it convenient?" he asked. "The
purpose of joining the WTO is to open the market to other countries and mutually
benefit from the openness," he added. "A shutdown or monopoly hurts only our
people, who have to put up with more expensive products."
Watchdog warns on baby bath products
- Recalls made after Consumer Council finds excessive bacteria in high-end
brands - Philip Leung (left) and chief executive Connie Lau Yin-hing talk about
the hygiene dangers, at the council's office in North Point yesterday. Two
high-end baby bath products have been recalled because they contain excessive
bacteria, which can cause infection. The contamination of Balma-Baby Swiss
Natural Baby Bath from Switzerland and NUK Hypoallergenic Mild Baby Shampoo with
camomile and panthenol from Australia was found during tests by the Consumer
Council. The watchdog said yesterday that the Swiss product had 7,300
colony-forming units per gram and the Australian one had 30,000, which were
respectively about 14 and 59 times higher than the hygiene limit for children's
cosmetics of 500 CFU/g. The limit was set by the mainland and is followed in
Hong Kong. The two products were among 50 shower gels and shampoos for babies
tested by the council. The hygiene problem might have stemmed from the raw
materials or from the manufacturing, storage and transport process, Philip Leung
Kwong-hon, a member of the council's publicity and community relations
committee, said. Using the products on open wounds, near the eyes or genital
areas could result in infection, especially for those suffering from eczema or
other skin diseases. The more bacteria a product had, the more likely the baby
would be infected, Leung said. The council reported the cases to the Customs and
Excise Department, which ordered the recall. The Balma product costs HK$110 for
300 millilitres and the NUK product HK$69 for 110ml. Leung was also critical of
a lack of labeling information on some samples. Among the samples, only six
clearly carried expiry dates and stated how long they could be used after
opening, and only three carried information on dates of manufacture and on shelf
life. Twelve out of 50 used code indecipherable to the public. Leung urged
manufacturers to show expiry dates and ingredients on products voluntarily, to
safeguard the consumers' interests. The council called on parents to avoid
letting children eat too much artificially coloured food, after a recent British
study indicated six colorings could result in increased hyperactivity in some
children. The six colorings are tartrazine, quinoline yellow, sunset yellow,
carmoisine, ponceau 4R and allura red AC. The council sampled 84 locally
available biscuits, sweets, jellies and beverages, and found that nearly half
contained one or more of the potentially harmful colours. Some of them were
popular products, including Garden Lemon Puff, Arnott's Strawberry Tartlets, EDO
Pack Strawberry Vanilla Wafer, soft drink Fanta Orange, Schweppes Cream Soda,
Gatorade Orange Flavor, and Robertsons Jelly Powder - Strawberry. The European
Union had dictated that food items containing the colors must bear the
additional information that they may cause harm, and Hong Kong would closely
follow the development and take suitable regulatory action, Leung said. The
council also called on the food industry to keep a close eye on the development
in international food studies on food colours, and make an effort to meet
consumers' expectations on food safety.
The Hong Kong Mortgage Corporation is
becoming the guaranteed loan platform for small and medium-sized firms with a
program to replace the expiring government financing scheme. Under the new plan,
HKMC will guarantee 50 to 70 percent of bank loans for eligible companies - up
to HK$12 million for an individual firm, for a maximum of five years. This is
the same amount covered under the existing Special Loan Guarantee Scheme that
expires on December 31, as the government exits from a loose monetary policy.
The new platform will offer a firm up to HK$12 million as a revolving credit
facility - double the HK$6 million cap under the old scheme. In return, SMEs
will have to pay a guarantee fee - 0.5 to 2.5 percent of the bank loan. "SMEs
usually face immediate hardship during a financial crisis as banks tighten
loans," HKMC executive director Peter Pang Sing-tong said. "The loan can also be
used to buy assets related to business," Pang added. "This is in addition to the
required use of loans for general capital, or buying equipment." Eligible SMEs
must be operational for a year and have a good repayment record. But if the
interest rate for the original loan exceeds 10 percent, the corporation will
reject the application. "If the rate stays between 8 and 10 percent, HKMC will
take a deep look at the application," chief executive James Lau said. Financial
Secretary John Tsang Chun-wah said the new program will help SMEs lift both
productivity and competitiveness. "Although the loan scheme may not be necessary
amid abundant capital and a recovering economy, it makes SMEs more confident,"
said Alan Ng Wai-lun, who owns a firm supplying office furniture. Lawmaker Tanya
Chan Suk-chong cautioned that banks may offer too many loans, leading to a
possible credit crunch.
Top TVB (SEHK: 0511) executive and
showbiz personality Stephen Chan Chi-wan returned to work on Tuesday – several
months after Chan and two other executives with the television station were
charged in a bribery and fraud case. TVB said in a statement that Chan would not
be involved in managing or casting any celebrities employed by the television
station. This is because the charges brought against him by the Independent
Commission Against Corruption are related to these activities. The television
station said the decision was made after considering the allegations against
Chan, as well as the interests of the company and its shareholders. On Tuesday
afternoon, a smiling Chan appeared at the lobby of TVB City in Tseung Kwan O. He
told local media he was having an enjoyable day at work and he was grateful to
TVB. The 51-year-old was arrested by the ICAC for alleged corruption in March
and his duties were immediately suspended after he was arrested. In September,
Stephen Chan, Edthancy Tseng Pei-kun - Chan’s former assistant and a company
director at Idea Empire Advertising and Production (IEAP) - and Wilson Chan
Wing-suen - TVB’s head of business development - were formally charged by the
ICAC. They were accused of eight charges of accepting or offering a bribe, and
conspiring to defraud TVB and its celebrities. In early November, the
prosecution said they had decided to withdraw three charges, relating to
acceptances of advantages of about HK$10,000, after reviewing evidence against
Chan and Tseng. Their cases have been transferred to the District Court. They
will make a plea next Tuesday. The accused are on bail of HK$100,000 each.
China's aviation industry set to take off
after lifting of airspace ban - Lin Zuoming, general manager of the Aviation
Industry Corporation of China (AVIC), briefs to press about AVIC's exhibits in
Zhuhai City, south China's Guangdong Province, Nov. 15, 2010. The 8th China
International Aviation and Aerospace Exhibition will kick off on Tuesday. The
news that China is to open its low-altitude airspace to private aircraft -- on
the eve of the 2010 Airshow China -- is expected to set off a boom in the
aviation market. Part of the low-altitude airspace will be opened to promote the
country's general aviation sector, including the purchase and use of private
planes, said a document jointly issued by the State Council and the Central
Military Commission on Sunday. "The open airspace reform will definitely inject
energy into the general aviation industry, and of course, some Chinese are
hoping to realize their long-expected dreams of flying," said Lin Zuoming,
general manager of Aviation Industry Corporation of China (AVIC), on Monday. The
reform will be piloted in some areas next year and gradually extended to other
parts of the country, according to the document. This news is set to be the
hottest topic at the eighth China International Aviation and Aerospace
Exhibition (Airshow China), which opens on Nov. 16 in Zhuhai, east China's
Guangdong Province. About 600 exhibitors and 70 different models of aircraft
from around the world will be on show. Stocks in aviation maintainance,
management and pilot training industries were buoyed by the news Monday. Shares
in China Ocean Helicopter Company (COHC), which has China's largest civil
helicopter squadron, jumped by 6.87 percent, while shares in Sichuan Haite
High-Tech Co.,Ltd, a maintenance and aviation equipment specialist, were up 3.69
percent. Both companies are listed on the Shenzhen Stock Exchange.
China announced a 100-plane order for
its first commercial jetliner, a first step in its ambitions to challenge Airbus
and Boeing for a slice of a global market worth US$1.7 trillion - State-owned
COMAC, or Commercial Aircraft Corporation of China, unveiled the orders at the
country’s largest air show on Tuesday, ending a dearth of orders in the two
years since it launched designs for the 150-seat C919. As air travel expands
with a billion Chinese predicted to be flying for business and leisure early
next decade, China wants to reduce its reliance on foreign planes and foster a
domestic industry worthy of a country capable of putting a man in space. COMAC
said the orders came from four Chinese airlines, which was no surprise given
government encouragement for the project, but also the leasing arm of General
Electric, which will supply the C919 engines together with France’s Safran. It
is the first time buyers have committed to the aircraft, which COMAC expects to
start building next year, followed by a maiden flight in 2014 and first delivery
in 2016. “The customer signing lays a market foundation for the C919, which has
smoothly entered the engineering development phase,” COMAC Chairman Zhang
Qingwei said in a statement. Officials did not give a value for the deal or
break down the orders by airline.
A picture taken on Nov 16, 2010 shows
the C919 aircraft launch customer signing ceremony in Zhuhai, South China's
Guangdong province. COMAC struck deals on Tuesday to build 100 of its
self-developed C919 jumbo jets for sale to Air China and five other domestic and
overseas airline companies.
Maersk wants more market share on imports to
China - A Maersk container ship passes another ship as it leaves Hong Kong. The
shipping company expects to see a continuous rise in freight demand in Asia,
Latin America and Africa for next year. Shipments are expected to pick up due to
rising demand in Asia - Maersk Line, the world's largest container carrier,
wants a larger share of shipments generated from imports to China as the
country's economic growth pattern translates to stronger domestic demand. "We
will put more sales and customer service staff in the import market," Tim Smith,
chief executive officer for the Copenhagen-based shipping line's North Asia
region, said in an exclusive interview in Beijing on Monday. "This is very much
linked to the intra-Asia market because a lot of China's imports come from
different parts of Asia. China imports raw materials or partly processed goods,
assembles them and sends them for export. So we are trying to combine the
intra-Asia imports with exports." Tim Smith,chief executive officer of Maersk
Line North Asia - The transported volume related to China increased by more than
10 percent, 3 percentage points higher than the global gain, contributing 25
percent of the company's global volume and 35 percent of its total export
volume. "We've seen a development in the import market in China that will help
the overall demand. We are looking at that very closely," he said. In the first
nine months this year, Maersk Line witnessed a dramatic upturn from its 2009
historic loss of $2.1 million to a profit of nearly $2.3 million, thanks to a 34
percent year-on-year increase in average freight rates, 7 percent increase in
transported volume and substantial savings per unit. Smith, a 25-year veteran of
the shipping industry, describes the business situation in 2010 as "strange"
following unpredictable growth patterns quarter-on-quarter. The second quarter
this year saw strong growth followed by unexpected average growth in the third
quarter, and a slight decrease in the fourth quarter, which is unusual due to
the annual expected year-end seasonal demand. "We've been surprised how quickly
it has improved. The situation in 2010 is a little bit better than the normal
level. 2011 is not necessarily as good as this year as demand may slow, and we
have to carefully monitor the demand and supply situation," he said. Although
the recovery of mature markets such as Europe and US is still not strong enough,
robust economic growth in emerging markets will spur further grounds for
optimism, said Smith, estimating a global demand growth of 8 percent next year
compared to 2010. "It won't necessarily be a consistent growth month-by-month,
but may go up and down a little bit," he said. Volume on transatlantic routes
increased by 3 percent year-on-year in the first nine months this year, while
volumes rose by 7 percent on transpacific routes and 16 percent on Latin America
and Oceania routes.
Pu'er may help
diabetics: Research - Research shows Pu'er tea may help prevent certain cancers
and diseases of aging, thus helping to prolong life. It’s well known that dark,
mellow Pu'er tea reduces blood fat, lowers cholesterol, aids in weight loss and
assists digestion. Research shows that regularly drinking Pu'er, made from broad
leaf tea in southwest China, has additional health benefits. Experts at the
recent China Pu'er Tea Festival in Shanghai reported that to some extent, Pu'er
can work as secondary therapy for certain disease conditions caused by diabetes.
It also indicates that Pu'er may help prevent certain cancers and diseases of
aging, thus helping to prolong life. To find out more about Pu'er's
effectiveness, research was carried out in Pu'er city in Yunnan Province, where
virtually all China's Pu'er tea is grown. Professor Sheng Jun, vice president of
Yunnan Agriculture University, said at the festival in Shanghai that for one
year 520 patients drank 1g "instant" Pu'er with 200ml water three times a day,
half an hour before meals. Results showed drinking the tea helped relieve
symptoms of more than 70 percent of patients with dyslipidemia, an abnormal
amount of lipids (cholesterol and/or fat) in the blood, which usually leads to
diabetes.
China, Singapore reaffirm
cooperative relationship - Chinese Vice President Xi Jinping (L) shakes hands
with Singaporean Prime Minister Lee Hsien Loong during their meeting in
Singapore, on Nov. 15, 2010. Visiting Chinese Vice President Xi Jinping met here
on Monday with Singapore Prime Minister Lee Hsien Loong. Both leaders reaffirmed
the close and cooperative relationship shared by Singapore and China. Xi's visit
caps a series of high level exchanges as the two countries celebrate the 20th
anniversary of diplomatic ties. During the meeting, Xi said China and Singapore
have increased mutual understanding and expanded cooperation since the
establishment of diplomatic relations. China has drawn useful experience from
Singapore's development as it undertakes reform, opening-up and the
modernization drive. At the same time, China's increasing national power has
provided broad market and huge potential for Singapore's continuous development.
The good neighborly and mutually beneficial cooperation contributes to the
interests of both people, and to the peace and prosperity of Asia as a whole, he
said. Xi said China highly values the Sino-Singapore relationship and is willing
to join hands with Singapore to bring the bilateral relations to a new level. He
noted that the two countries should maintain high level exchanges, make full use
of the existing bilateral cooperative mechanisms and projects, increase sharing
of governing experiences and people-to-people and cultural exchanges, strengthen
cooperation in regional and international affairs. Lee agreed with Xi on his
suggestions to develop bilateral relations. He said the two countries have
forged close cooperation in various areas, adding that Singapore is willing to
further enhance cooperation with China in bilateral and multi-lateral areas.
After the meeting, Lee and Xi witnessed the signing of the following three
agreements: the Memorandum of Understanding (MOU) between the National Heritage
Board of the Republic of Singapore and the State Administration of Cultural
Heritage of the People's Republic of China on Museum Cooperation; the Agreement
on the Details of Implementation between the National University of Singapore
and Suzhou Municipal Government (Suzhou Industrial Park Administrative
Committee) on the Joint Establishment of the National University of Singapore (Suzhou)
Research Institute; and the MOU on the Establishment of a Cooperative College by
the Nanyang Technological University (NTU) in Sino-Singapore Tianjin Eco-city.
At the invitation of Singapore Prime Minister Lee Hsien Loong, Xi arrived in
Singapore on Sunday for a three-day official visit.
At least 42 people died yesterday
in a massive blaze in a downtown Shanghai apartment block that took off "like a
firework". Firefighters battled from mid-afternoon until early evening at the
28-storey building while thousands of onlookers crowded the surrounding streets.
The inferno engulfed the entire structure with intense flames billowing out of
windows from ground to roof, sending a giant column of ink-black smoke into the
sky. The wail of sirens echoed around Jingan district in the heart of the city
as more than 100 fire engines, plus police cars and ambulances raced to and from
the scene. Police cordoned off streets for several blocks in all directions,
causing major traffic disruptions in the bustling district. The traffic chaos
also appeared to hamper efforts to fight the blaze as an hour after the fire
started, fire engines and ambulances were seen struggling to weave their way
through narrow, winding streets, as gridlocked drivers largely ignored the
sirens. Xinhua cited a witness saying the fire began when building materials had
caught alight. The blaze spread to scaffolding and then to the apartment block
itself, which houses a number of retired teachers. One sweet-potato hawker said
he had been at the site shortly after the fire had started. "At first there
weren't many flames, but I could see some smoke coming out," he said. "But then
the scaffolding started burning, and when the wind caught it, the whole building
went up like a firework. The scaffolding was all bamboo planking and plastic
netting, so it caught fire immediately." Around 10 to 15 people, many of them
construction workers, were seen in mid-afternoon huddling on the windward side
of the building's roof in an effort to stay out of the smoke. Emergency services
attempted to rescue them by helicopter but were forced to abandon the effort.
The fire was largely put out after about four hours, the Shanghai government
said. Firefighters could be seen taking bodies from the building. Earlier
reports had put the toll at least eight dead and more than 90 injured. But by
the evening the death toll had risen to 42, the Shanghai government said in a
statement, which did not give an updated figure for the number of injured. One
resident told Hong Kong broadcaster Phoenix TV that he and his wife were
sleeping in their 23rd-floor apartment when they smelled smoke. He said they
climbed down the scaffolding for four storeys before being rescued by
firefighters.
Wholesale vegetable prices surge - A man arranges cabbages at a market in
Beijing. Surges in the price of solanaceous vegetables, including tomatoes,
eggplants, chilies and bell peppers, have been more conspicuous in the first 10
days of November than those in leaf vegetables.
Unsung charity to run
hub for designers - Little-known group wins Hollywood Road site - An artist's
impression of how the new designers' centre will look in Hollywood Road. Three
businessmen running a little-known charity won the right to develop the former
police married quarters in Hollywood Road into a designers' hub, offering a
HK$110 million donation as a seed fund for the project. The Musketeers Education
and Culture Charitable Foundation has no track record in the design field, but
the founders say their networks and experience will provide support for their
partners, the Design Centre, the Polytechnic University, the Design Institute
and the Vocational Training Council. "There is no other business or real estate
interest behind it. We just want to help local designers and small and
medium-sized enterprises to build their own brands," founder Lawrence Fung
Siu-por, who is also chairman of Hong Kong Economic Times Holdings, said
yesterday. Fung said he, Stanley Chu Yu-lun, former chairman of the Exhibition
and Convention Industry Association, and Leong Ka-chai, a former chairman of the
Futures Exchange, together donated HK$100 million while HK$10 million came from
an unnamed person. Formed in 2008, the foundation has had little publicity. It
is not known to have organised any activities, nor does it have a website. It
beat the Hong Kong Heritage Conservation Foundation, set up by Sino Land
executive director Daryl Ng Win-kong, and an all-star group of artists and
designers in the bidding. Under its proposal, the two 59-year-old blocks will
yield 130 studios with several galleries, shops and restaurants. The studios,
open to the public, will be rented to individual designers and SMEs at close to
market rents, and some will be reserved for budding players at a discount. About
six flats will be used for artists-in-residence accommodation. A bridge will
link the two blocks and be wide enough to stage exhibitions. The underground
foundation stones of the historic Central School will be preserved as a museum,
where visitors will be able to walk along a corridor between the stones. The
site will come with public open space of 2,000 square metres. The foundation
estimates that each year, the hub will attract 5,000 local and overseas creative
professionals to attend activities and 500,000 visits by members of the public.
The Design Centre and the Polytechnic University, as joint applicants, will
stage their flagship programmes, such as the Business of Design Week workshops,
the annual show by graduates, and post-graduates classes at the site. The group
has yet to announce details of tenant selection criteria and programs. Bernard
Chan, head of the vetting committee, said the foundation was selected as its
proposal was more all-round. "It's difficult to bring all these design bodies
together and they did it. The donation shows their sincerity and willingness to
take up a 10-year challenge," Chan said. The government, financing a HK$420
million construction cost, will lease the site to the operator at a nominal rent
for 10 years, renewable for another five years. The hub will open in 2014. Chan
said the group's income projections were prudently conservative, assuming an
80-per-cent occupancy rate that would lead to a surplus in the fifth year. The
government, sharing half the surplus, would garner HK$30 million during the
15-year lease. Secretary for Development Carrie Lam Cheng Yuet-ngor said the
operator would be bound by an agreement to run the cluster as a social
enterprise that sought not to maximise profits but to generate benefits to
society. "This is a multi-purpose project intended for the community. There
won't be luxury shops or restaurants," Lam said, responding to concerns that the
site could become like other revitalised heritage sites that are occupied by
posh shops. Democratic Party lawmaker and Central and Western District
councillor Kam Nai-wai said he had not heard of the foundation. "It has never
consulted the district," Kam said. "I am not sure if the situation is like
laymen leading the designers. Officials need to explain in detail why the team
was chosen, and to what extent its partners and advisers are devoted to the
project." Katty Law Ngar-ning, of the Central and Western Concern Group, said
the community should be able to monitor the operation. The Hollywood Road site
was removed from the land sale list in 2007 after archaeological excavations
uncovered foundations of the Central School. The old police quarters were given
a grade three historic rating earlier this year.
The foundation stones of the historic
Central School will be preserved as a museum.
A bridge
will link the designers' hub in Hollywood Road.
People power is leading the
war on land rogues - Trail walker Law Kwong-keung never expected the scene he
witnessed when he approached picturesque Sai Wan beach with his friends one
April morning - a barge carrying two diggers landing on the sand. "We heard a
lot of noise as we headed down to the beach. "But when we got there, there were
at least 20 villagers staring at the landing operation," he said. Law, also a
district councillor, did not take it seriously at the time and thought it might
be government work. So he and his team just carried on with their walk. But a
few months later, he was shocked to discover the barge and the diggers were sent
to the beach for a private development by a businessman. And now, as he moves
around the countryside, he keeps his eyes open for any such abuses. Law said: "I
always stay alert to what is happening around me when we are hiking, looking out
for any places where vegetation cover is being removed or areas that developers
might be looking at." Law is part of a hikers' network in Hong Kong. The walkers
exchange information about suspect activities in the countryside and report them
to the authorities when necessary.
The most expensive food stall for
the upcoming Victoria Park Lunar New Year fair sold at an auction on Monday for
HK$380,000, 20 per cent less than last year. The auction of the fair’s stalls is
traditionally seen as an economic indicator. Bidder Lam Wai-tat, who won the
right to the stall, which will sell fishballs and other snacks during the
seven-day event, said the price was lower than he had expected. “Maybe it’s
because it rained during last year’s Lunar New Year [and] some bidders couldn’t
bear the risk,” Lam told local media. The second and third most expensive
fast-food stalls were won by a bidder surnamed Tam for HK$350,000 and
HK$280,000. He said the prices were reasonable. Today and tomorrow more than 400
dry and wet goods stalls for the fair will be auctioned at Queen Elizabeth
Stadium in Wan Chai. The Lunar New Year fair will last from January 28 to
February 3, 2011.
Asia now competes with America for top
business students - Asian MBA programs have emerged as challengers to their more
established United States peers in global academic rankings, but their pulling
power may still be limited to students willing to put down roots in this region.
Top students have traditionally completed their Master of Business
Administration degrees in the US or Europe, where opportunities for high-level
jobs are most abundant. But global growth has since shifted to Asia and business
schools in the region have capitalized on the trend, drawing candidates from
both home and abroad. The rising profile of Asian MBA programs is expected to
come at the expense of overseas universities by taking a bite out of their
application intakes. But so far the face-off between East and West has been kept
in check by a lack of overlap between the two markets, said Richard Lyons, dean
of the Haas School of Business at the University of California, Berkeley. "There
is still such a strong segmentation that we don't see ourselves going
head-to-head against those schools very often," Lyons said. "People either
decide they want to do [the MBA] here or they want to do it over there." He said
only a "tiny" number of Haas's roughly 240 full-time MBA students in last year's
class had also been admitted to the Hong Kong University of Science and
Technology (HKUST) Business School. The head-to-head numbers between Haas and
Hong Kong-based business schools have generally been five or less, Lyons added.
That comes as no surprise to Hong Kong's leading business schools, which have
positioned themselves as distinct alternatives to the traditional western MBA
programs. "There is no single school that we are battling it out with because we
are unique," said Steven DeKrey, a senior associate dean at HKUST. "If people
want a top school and want Asia, is there a better choice?" The Chinese
University of Hong Kong (CUHK) has also made efforts to differentiate its MBA
program from other overseas ones. The curriculum covers themes unique to this
region, including family business ownership, supply chain management in the
Pearl River Delta and corporate governance in the mainland. "Asian business
schools should start to have confidence in ourselves and not copy from the US,"
said T.J. Wong, dean at the faculty of business administration of CUHK.
Attending an Asian business school has become a more viable option in the past
few years after several MBA programs around the region have charted a rise up
global academic rankings. HKUST was ranked ninth in the Financial Times Global
MBA Rankings 2010, tied with University of Chicago Booth School of Business. And
CUHK was tied with Haas at 28th overall. In total, six schools from the region
cracked the top 30, including France's Insead, which has a full-time campus in
Singapore. That is up from just two in the 2007 rankings. Academic rankings are
usually taken with a grain of salt because of all the variables involved in
calculating them. But they can still serve as a useful starting point for
prospective students when they are deciding where to apply, DeKrey said. "[And
then] the more sophisticated reader will analyse the criteria and match it
against what they care about," he said. Many students seem to be zeroing in on
the better job placement data from Asian business schools. The FT survey showed
that nine out of 10 students from both HKUST and CUHK had secured work within
three months after graduation, for example, compared with just three in four
students from University of Pennsylvania's Wharton School of Business. Data from
the Graduate Management Admission Council, which offers the GMAT exam required
by most MBA programs, reflected this trend, reporting the percentage of test
scores sent to US-based business schools decreased from 83.9 per cent of the
world total to 78.4 per cent between 2005 and 2009. The combined percentage of
scores sent to India, Singapore, and Hong Kong more than doubled to 5.3 per cent
in that time. That signals competition for students could increase over time
between East and West, even though top-tier US business schools have been
relatively insulated so far. "There will be some shake-up among US business
schools," Lyons said. "[In] that middle-tier of US business schools there is
going to be a lot of competition and increasingly the top 10 schools are [even]
feeling it."
Fast trains, integrated hubs
point to future of transport in HK and mainland China - Three days after the
Shanghai-Hangzhou high-speed train service started service on October 26, I took
the train from Shanghai to Hangzhou and back again. The terminus in Shanghai is
at the Hongqiao transport hub on the outskirts of the city. This is a multimodal
transport centre that seamlessly links the new high-speed service with the
Hongqiao airport and metro service. The hub opened in April, in time for the
Shanghai World Expo, which started in May. Passengers can get off a plane, then
take a short walk to access the high-speed rail network. The train station at
Hongqiao felt more like the airport terminal to which it is linked, being
cleaner and with better facilities than a standard mainland station. Though it
was not as crowded as many mainland train stations, there was still a
significant number of passengers waiting to board the trains. Judging by their
dress, the passengers at the train station looked like the middle class
mainlanders typically seen at Chinese airports, economically a cut above the
migrant workers that normally pack ordinary mainland railway stations. The
service offered frequent departures, with about four high-speed train journeys
leaving Shanghai for Hangzhou every hour. I bought an economy ticket for the
3.40pm train for Hangzhou at one of the many automatic ticketing machines.
Although some were out of order, the vending machines made buying tickets
easier. Along the journey, most of the landscape was urban with many buildings
or factories. In the sparse rural areas, pockets of construction activity were
visible. This suggests that in coming years, the corridor between Shanghai and
Hangzhou will become a common urban zone merging both cities into one huge
megacity in the Yangtze River Delta. The 200 kilometre trip took about 50
minutes and cost 82 yuan (HK$95.60). In comparison a standard train journey
would take 80 minutes and cost 54 yuan in economy class. But despite the higher
ticket price, the train was nearly full. At Hangzhou railway station, where I
looked for a taxi, traffic was congested, indicating how heavily used the
station is. The construction of a new metro train station in the area was a sign
of the intensive infrastructure building under way in the city - activity that
is to be found throughout China as the nation undergoes a massive infrastructure
investment program. I took a taxi to Hangzhou's famous West Lake, celebrated in
ancient Chinese poems like Su Dongpo and patronised by tourists today. I reached
the lake around 6pm, just in time to see the sunset. I then took a taxi back to
Hangzhou train station, where I caught the high-speed train back to Shanghai.
Some of the earlier trains from Hangzhou to Shanghai were fully booked, which
shows how popular the services have become on the mainland. My train was almost
full, although a passenger sitting next to me complained: "At 82 yuan per
ticket, this is highway robbery." When the train reached the countryside, its
speed rose to 350km/h per hour, one of the fastest operational train speeds in
the world. The journey took one hour. On reaching Shanghai's Hongqiao hub, I
took the metro train to Jingan Temple station in downtown Shanghai. From Jingan
Temple metro station, I walked to the Portman Ritz-Carlton Hotel for my next
appointment, arriving around 8pm. Between 3pm and 8pm, I had, therefore, left
Shanghai to enjoy the sunset on the West Lake in Hangzhou and returned again to
my hotel in Shanghai. This indicates the speed and convenience of high-speed
train travel, as well as the seamless interconnection between different
transport modes in the Hongqiao hub. Based on my experience and observations,
several trends seemed clear to me. First, contrary to concerns about cost and
scheduling, high-speed train travel has become widely accepted by ordinary
mainlanders. Second, the shortening of travel time will speed up integration
between mainland cities, causing adjacent cities to combine into one megacity.
Thus, high speed railway will accelerate urbanisation. And third, the flow of
business and tourists between mainland cities will expand. It also seemed to me
that what was on view in Shanghai was a foretaste of what we might expect when
Hong Kong's high-speed railway begins operating in 2016. A high-speed train
journey from Hong Kong to Guangzhou will then be similar to an MTR train ride
from Hong Kong Island to Kowloon. This will increase the integration between
Hong Kong and the Pearl River Delta. However, Shanghai has a six-year headstart
over Hong Kong in this integration process.
Race is on for
David Chiu to be San Francisco's first Chinese mayor - San Francisco could soon
have its first Chinese mayor. David Chiu, a Harvard-educated son of Taiwanese
immigrants, and state senator Leland Yee, originally from Guangdong, are both
likely to be in the running for the post. Current mayor Gavin Newsom is quitting
early after being elected to serve as California's next lieutenant governor. His
victory cut short his second term and opened a vacancy for an interim mayor and
an opportunity for someone to seek a full term in November next year. Board of
Supervisors president Chiu, who represents Chinatown, will automatically become
interim mayor if Newsom resigns before January 8 and the board does not pick a
successor. He would therefore, by default, become the city's first Chinese and
Asian-American mayor. Yee, who won re-election to Sacramento's position on the
board with nearly 80 per cent of the vote, announced last week his intention to
campaign for the full-term mayoral job next November. But he declined to say if
he would accept the interim appointment. San Francisco, with an ethnic Chinese
population of about 20 per cent, has by far the highest proportion of Chinese
residents among the major American cities. Yet Chinese Americans aren't the only
minority group hoping to claim Newsom's job. Openly gay politicians Tom Ammiano
and Mark Leno are also among the top contenders to be the first gay mayor of a
city regarded as America's homosexual capital. The next mayor will have to deal
with a massive budget deficit and the effects of the recession while leading the
city's bid to host the lucrative America's Cup sailing contest. The new mayor
will also serve as the face of a city in the habit of grabbing the nation's
attention. Newsom touched off the gay marriage debate in California when he
defied state law and opened City Hall to same-sex marriages two days before
Valentine's Day in February 2004. He now finds himself in the middle of a stormy
debate over whether toys in McDonald's Happy Meals should be banned in the city
in an effort to promote better nutrition for children. The Board of Supervisors,
a diverse group of 11 politicians elected from their respective neighbourhoods,
has the task of appointing an interim mayor to serve until the November 2011
election. If Newsom resigns after January 8, a newly-constituted board with four
newly-elected supervisors will end up picking the interim mayor. But so far, the
only thing the current board seems to agree on is that no willing candidate has
emerged who can garner the necessary six votes on the 11-member body. The day
after his election victory, Newsom floated his own proposal at a celebration
before thousands of Giants fans at a World Series victory celebration in front
of City Hall. Newsom joked about appointing Giants pitcher Brian Wilson to the
vacancy. Wilson's beard, personality and post-season performance have made him
extremely popular in San Francisco. "This town is going to need another mayor
soon," Newsom said. "I have just three words: fear the beard'." Wilson's
response later to the cheering crowd - "I don't think I'm up for that job" -
drew a gasp of mock disappointment.
Nestle added Nescafe Yunnan (China) Arabica coffee to its beverage portfolio -
Choosing Nescafe, produced by Nestle, at a grocery store in Zurich. Swiss-based
Nestle SA, the world's largest food company by sales, recently added Nescafe
Yunnan Arabica coffee to its beverage portfolio, pinning much hope on its
success. Yunnan, traditionally home to tea producers, becomes a hot bed of
competition for rival drink. When Chinese people saw their first Nescafe
commercial in the early 1980s with its slogan "The Taste is Good" on their old
black-and-white television sets, it was thought unlikely they would take to the
foreign drink made so far away from their own country with its deep-seated
tradition of drinking tea. However, it seems to have won people over and has led
to the world's leading coffee makers growing the beans in Yunnan, the province
regarded as the cradle of Pu'er tea. China's southwestern Yunnan province is
about the same latitude as some of the world's top coffee-producing regions and
now accounts for 99 percent of China's total production of the energizing drink.
The region is now a key front in the war between international coffee giants.
Recently, Swiss-based Nestle SA, the world's largest food company by sales,
added Nescafe Yunnan Arabica coffee to its beverage portfolio, pinning much hope
on its success. The world's largest coffeehouse chain, Starbucks Corp, launched
Yunnan-originated coffee products in January 2009. The exotically named South of
the Clouds Blend is a mixture of whole beans grown in Yunnan and other
Asia-Pacific regions. During the first three quarters of 2010, coffee exports in
Yunnan were worth about $85.9 million, an increase of $26.6 million compared
with the same period in 2009, according to figures from Yunnan provincial
government. In addition, the plantation area was increased to more than 30,000
hectares in 2009 from 18,000 hectares in 2005. Huang Jiaxiong, a researcher from
Yunnan Academy of Agricultural Sciences, said: "The viable coffee-growing area
in Yunnan is about 80,000 hectares. Only 30 percent of them have been
exploited." Coffee has become second only to oil as the world's second largest
traded commodity. "There is still much room for development as the coffee
industry in Yunnan is expected to become a new pillar industry creating more
than 10 billion yuan of output value," Huang added. Huang said the advantage of
Yunnan coffee lay in its unique flavor and aroma of fruit, herbal spiciness and
strong but not very bitter coffee taste. Adrian Ho, head of the coffee and
beverages business unit at Nestle (China) Ltd, told China Daily that currently
Nestle controls close to 80 percent of China's coffee market after coming to the
market more than 20 years ago and gradually developing the business. The company
pioneered the making of Yunnan into a viable coffee-growing region in the late
1980s. Wouter De Smet, manager of Nestle Coffee Agriculture Service (NAS), said
the company in 1994 started a coffee development program based in Pu'er, in
Yunnan, that focused on training and technical assistance. So far, Nestle has
invested about 50 million yuan into training local people free of charge,
helping jump-start the Arabica coffee bean development in Yunnan and supporting
farmers in improving the quality and yield of their plantations. "We teach local
farmers to check the price of coffee on the international market on the Internet
so they can sell their coffee beans at an appropriate time at a fair price,"
said De Smet. The company established a Nestle experimental and demonstration
farm in 1997 covering an area of 60 hectares and started direct large-scale
procurement of Arabica coffee from local farmers from 2002. "Now, Nestle
annually purchases around 3,000 to 5,000 tons of coffee in Yunnan," said Ho.
"And, Nestle promises to make constant investments in the coffee sector in
Yunnan." In urban areas of the Chinese mainland, average annual per capita
consumption is around 0.76 kilograms (kg) against Taiwan's annual per capita
consumption of 0.95 kg, according to statistics by the International Coffee
Organization (ICO). Finland ranked first in terms of annual per capita coffee
consumption with 11.98 kg, followed by Norway with 9 kg, Denmark 7.90 kg and
Switzerland at 7.68 kg, according to the ICO. "China has still much potential
and we welcome more companies who have a long-term interest and commitment in
developing the Chinese coffee market," said Ho. "I'm not concerned about
maintaining market leadership - because Nestle does not only sell coffee
products in China - but in developing Chinese coffee culture and also
encouraging the habit of drinking coffee among Chinese consumers." Many Chinese
people have known of the Nestle brand since their childhoods and recall it
nostalgically, Ho added. According to Euromonitor International, coffee sales in
China could reach $3.6 billon by 2011 from $ 2.4 billion in 2006.
China-made regional jet undergoes
high-intensity tests - Regional aircraft ARJ21-700 made in China arrives in
Zhuhai, south China's Guangdong Province, Nov. 9, 2010. ARJ21-700, designed and
manufactured in China, will take part in the 8th China International Aviation
and Aerospace Exhibition, slated to open on Nov. 16. China's
independently-developed regional ARJ21-700 jet has begun high-intensity test
flights in order to get its airworthiness certificates, according to its
producer, the Commercial Aircraft Corporation of China (COMAC). Tian Min, chief
accountant of the COMAC, said Monday at the China International Aviation and
Aerospace Forum in Zhuhai that the China-made jet was preparing for a series of
difficult and high-risk trials, including tests of the engine and the avionics
system. Four aircraft were undergoing test flights while another two were being
tested on the ground in order to earn airworthiness certificates from the
Federal Aviation Administration (FAA) of the United States and the Civil
Aviation Administration of China (CAAC). Since the first trial flights in
November 2008, ARJ21-700 jets have completed more than 900 hours of tests in
more than 400 trial flights, including high-temperature and high-humidity tests,
Tian said. Tian said the COMAC planned to deliver the first ARJ21-700 plane to
buyers in 2011. The company had received 240 orders from home and abroad.
A look inside China's C919 passenger
jet - A model of the China-made C919 passenger airliner is seen at the 8th China
International Aviation and Aerospace Exhibition in Zhuhai, South China's
Guangdong province, Nov 15, 2010. The model, which comprises the cockpit and the
front part of the passenger cabin, is the same size as an actual C919 plane --
17 meters long, 5.6 meters high and 3.96 meters wide.
A woman shows a square-shaped
watermelon newly developed by a Chinese company at the recent China-ASEAN Expo
in Nanning, Guangxi Zhuang autonomous region. A lot of Chinese companies are
considering overseas investment in ASEAN economies with their latest technology.
Listings boom spurs demand for lawyers -
Hong Kong is in the middle of a recruitment drive for more lawyers, as new stock
market listings and tougher compliance and regulatory requirements boost demand
for legal professionals. The number of overseas lawyers admitted this year has
risen more than 40 per cent. Caroline Lim, executive vice-president in Asia of
the legal and compliance division at headhunting firm DHR International, said
the significant number of initial public offerings, mergers and acquisitions and
stiffer regulatory requirements had led to big demand for legal professionals.
"More of our clients - both law firms and corporations, particularly in the
health care, manufacturing and renewable energy industries, are hiring lawyers,"
Lim said. Growth on the mainland was a key factor in the need for lawyers, with
overseas investors requiring legal advisers on mainland deals and Chinese
companies wanting legal advice when they invested overseas. Last year, 420 new
solicitors were admitted to practise in Hong Kong. Among them, 105 were overseas
qualified lawyers allowed to practise locally. In addition, there were 261 new
applications to register as foreign lawyers in Hong Kong. This year, initial
figures from the Hong Kong Law Society estimate that 148 overseas qualified
lawyers were admitted to practice in the first 10 months of the year, a 41 per
cent increase from last year. Overseas qualified lawyers admitted in Hong Kong
are allowed to advise on Hong Kong laws if they have at least two years'
experience in a common law jurisdiction and have passed a local examination, but
foreign registered lawyers are only allowed to advise on laws of their own
jurisdiction. Lim said companies needed lawyers with international networks and
experience to provide legal advice on cross-border transactions and disputes.
Premier Wen Jiabao yesterday told
Hong Kong and Macau to be prepared for fallout from America's latest round of
financial engineering. What is known as quantitative easing threatens an
oversupply of money in the world, Wen said. So the two SARs, he warned, could be
confronted by currency volatility - Macau's pataca is on a fixed exchange rate
to the Hong Kong dollar and so is also effectively pegged to the US dollar - as
well as inflation and the risk of property bubbles. But while taking Washington
to task for increasing money supply and affecting the world economy, Wen also
said before he left Macau yesterday that the SARs have the means to meet the
challenges. Testing times have been forecast after the US Federal Reserve
announced last week it would buy US$600 billion (HK$4.66 trillion) in long-term
Treasuries over the next eight months to try to revitalize the United States. A
major concern around the world is the likelihood of increased liquidity flooding
emerging markets, including the mainland. Wen, making his first visit to Macau
as premier, admitted it was already difficult to control property prices in the
mainland and said the central government was concerned about the high cost of
living overall. The central government had rolled out stringent measures to cool
the property boom, he noted, but the result has so far been unsatisfactory.
"This matter is indeed difficult ... [mainland] property prices have just not
been pushed down," he said after a Macau youngster asked him to control property
prices in the SAR to help make it easier to buy a home. In a speech to Macau's
leaders, including Chief Executive Fernando Chui Sai-on, Wen pledged the central
government would assist the SAR in stabilizing prices of property and
agricultural and consumer products in the face of fears about inflation. He also
said that the strength of the financial systems in Hong Kong and the mainland
can help Macau - which has a limited financial capacity - to maintain stability.
In a speech that was also heard as taking local leaders to task, Wen then laid
out four wishes for gambling- dependent Macau: scientific governance, economic
diversification, improving people's livelihoods and developing a harmonious
society. Macau needed a diverse set of industries to sustain growth, Wen said.
The government in Macau had benefited from an economic boom, he went on, but
wealth had to trickle down to ordinary citizens. He also said that Macau
officials should be clean and responsive to people's needs while putting more
resources into raising living standards. For example, more public housing units
could be built. Wen was in Macau for an economic forum of Portuguese-speaking
nations. He held meetings with Portugal's premier, Jose Socrates, and officials
from Angola, Brazil, Cape Verde, Guinea-Bissau, Mozambique, and East Timor. Wen
left Macau last night.
Local
snooker fans were celebrating last night after the women's six-red team potted
their way to gold against the China team. Hong Kong won their second gold medal
of the Asian Games 2010 with the team winning 3-1 in the final in Guangzhou. And
there was more good news for sports fans after cyclist Cheung King- lok and
wushu's Zheng Tianhui also grabbed silver. Women swimmers also took bronze in
the 4x100-meter freestyle relay, bringing Hong Kong's medal tally to six and
putting them fourth in the medals table. The victorious snooker team, who
reached the final after defeating Taiwan 3-0 in the last four, comprised Jaique
Ip Wan-in, So Man-yan and Ng On-yee. For the event, there are only six reds on
the table compared with 15 in regular snooker. The other rules are unchanged.
Meanwhile, one day after fellow cyclist Lee Wai-sze won the SAR's first gold
with victory in the women's 500-meter time trial event, Cheung battled hard
before losing to South Korea's Jang Sun Jae in the men's individual pursuit.
Jang clocked four minutes 30.298 seconds against Cheung's 4:37.543, with Cheung,
19, saying Lee's record win had inspired him. "She got a gold medal yesterday
and I heard the result when I was preparing for the individual pursuit
qualification - that encouraged me a lot," he said. Zheng scored 9.72 points in
the women's jianshu/qiangshu all-round behind Chinese winner Kan Wencong, who
tallied 9.8. Swimmers Sze Hang-yu, Yu Wai- ting, Stephanie Au and Hannah Wilson
clocked 3:43.17 to finish third in the 4x100m freestyle relay behind China and
Japan. It was the second medal for both Sze and Wilson, who led another team to
bronze in the 4x100m medley relay on Saturday.
Gold-medal joy for HK cycling star - Lee Wai-sze defeats defending champion on
her way to a new Asian record - Track cyclist Lee Wai-sze gave Hong Kong a
perfect start to the 16th Asian Games, breaking the Asian record and beating
defending champion Guo Shuang of China to win the women's 500-metres time trial
at the Guangzhou velodrome yesterday. The 23-year-old completed the two-lap race
in 33.945 seconds, bettering an eight-year-old Asian record of 34 seconds set by
mainlander Jiang Yonghua. "I could not believe I had achieved such a time when I
came down from the bike," said Lee, who has been training full-time for six
years in track sprinting events. "It was an excellent time, as I thought I
managed only 34 to 35 seconds. But still, I thought I might lose the race as Guo
was the last one to start behind me. "In the end, she managed a time that fell
short of mine, and everything felt like a dream come true." Hong Kong coach Shen
Jinkang and other backroom staff surrounded Lee, showering her with
congratulations for her brilliant performance after it became clear she had
beaten Guo. "The training leading to the Asian Games was very tough, and I once
even considered quitting," said Lee, who suffered a broken wrist during training
in 2006 that stopped her from competing for almost a year. "But all my hard work
and effort paid off today."
Wine frenzy grips Hong Kong - Vintage
bottles 'better than stocks' as city leads the world in auction sales - He Weiqi,
a businessman from Zhejiang province , says he routinely pays more than 30,000
yuan (HK$35,000) for a bottle of wine to entertain guests. "A price tag of more
than a million yuan a bottle does more than show off your wealth. It shows you
have good taste," He, 38, said at the Hong Kong International Wine and Spirits
Fair, which drew 700 companies from 29 countries and regions. "We don't care how
outrageously expensive the wines are." Wine sales in the city by auction houses
Sotheby's and Christie's International will raise more than in New York and
London combined this year, with vintage Chateau Lafite selling at more than
US$200,000 a bottle. Sales at Hong Kong's auctions have more than quadrupled
since the city cut duties to zero two years ago. David Elswood, the London-based
head of wine for Christie's, said: "What we've seen emerging in the last year
are people paying virtually any price for wine. "That's not investment. That is
just uncontrolled spending." Mainland buyers may double auction sales in Hong
Kong next year, he said. Meanwhile, merchant Alex Yu, touting a HK$80,000, five-litre
bottle of Chateau Mouton Rothschild, said: "Red wine is better than stocks.
Chinese wine lovers are pushing up prices." Three bottles of Chateau Lafite's
1869 vintage sold for a record US$230,000 each last month, 28 times Sotheby's
top estimate. And collectors in Hong Kong, China and Taiwan now hold about a
quarter of the world's fine or rare vintage wine, according to Crown Wine
Cellars, which stores about HK$1 billion of wine in a network of converted
ammunition bunkers in Hong Kong. Total consumption has doubled in China in the
past five years, with red wine accounting for 75 per cent of demand, according
to a report by Citigroup Inc. And wine isn't the only product buyers are mopping
up. The fastest growth of any major economy and an appreciating currency have
seen them picking up properties in London and artwork in New York. In Hong Kong,
demand from the mainland drove luxury property prices past the 1997 peak,
spurring the government to warn of an asset bubble. Robert Beynat, chief
executive of wine exhibition organiser Vinexpo Asia-Pacific, said Asia's wine
market will expand four times faster than in the rest of the world. Much of the
growth will come from the mainland, which is the final destination of a "large
part" of the wine imported into Hong Kong. Liu Xuebiao, a merchant from
Shenzhen, said wine he buys in Hong Kong for about US$3 a bottle can be sold on
the mainland for 300 yuan, more than 15 times what he paid. "They are willing to
pay just about any price," said Liu. Imports by Hong Kong merchants jumped to
US$600 million in the first nine months, more than the whole of last year. And
the value of auctions reached US$120 million this year, almost double the US$64
million of 2009, according to the government. Sotheby's had to issue tickets for
the first time for its wine auction at the Mandarin Oriental Hotel last month,
when it offered almost 2,000 bottles of Lafite shipped directly from the
Bordeaux chateau's cellars. The sale beat the auction record for a single bottle
set in 1985 in London, when the late US publisher Malcolm Forbes paid £105,000
(HK$1.3 million) for a 1787 vintage. "New York and London aren't going to catch
up," said Robert Sleigh, who moved to Hong Kong from New York in August to run
Sotheby's Asia wine business. "People like the fact that the wine is here in
Hong Kong. You just go and pick it up." Sotheby's next wine auctions in Hong
Kong will be in January, where it will put on sale the Bordeaux Winebank
Collection. The highlights include bottles of Chateau Petrus 2000 and Chateau
Lafite Rothschild 2000. Sotheby's has sold US$52 million of wine in eight
auctions this year in Hong Kong compared with a combined US$24 million so far in
New York and London, previously the world's biggest markets. And 11 consecutive
wine auctions it has held in Hong Kong have been sold out. Gregory De'eb,
general manager of Crown Wine Cellars, said the Hong Kong sales are an
indication of how far mainland Chinese buyers have come since the 1990s, when
they would drink Coca-Cola with wine and merchants hawked unwanted vintages to
them. "Through their own aggressive tasting, they have built a better knowledge
of what suits their palates," De'eb said. While the Chinese are the
ninth-largest consumers of wine globally, it accounts for only 2 per cent of the
alcohol drunk in the country, according to Citigroup analysts. That's changing
as wine starts to win favour compared with baijiu and Maotai liquor. In 2008,
Domaines Barons de Rothschild (Lafite) agreed to develop more than 25 hectares
of vines in Shandong province with Citic Group, China's biggest state-owned
investment company. Elswood, of Christie's, said the burgeoning wealth is
"inflating a bubble" in wine. "When you're paying four, five times or even more
than the reference price, then you have to seriously question the market
knowledge of that buyer." At Sotheby's April auction in Hong Kong, a 12-bottle
lot of Chateau Latour 1982 fetched HK$338,800 or US$43,707. About two weeks
later, New York-based Tribeca Wine Merchants ran a newspaper advertisement
offering the same wine for US$2,250 a bottle. He, strolling around the Hong Kong
fair with a glass of wine, said: "Westerners drink wine slowly as a way of
enjoying life. Just look around you. Mainland Chinese tilt the glass and pour it
straight down the throat."
The government yesterday announced it would exempt all taxis queuing at taxi
stands from a proposed ban on idling engines. The exemption will also apply to
16-seater school minibuses, not just bigger school buses as proposed earlier.
However, the full exemption will not be extended to public light buses. The new
concessions, which the Legislative Council must approve, come on top of several
others already granted - most of them in response to pressure from drivers'
groups, who said they wanted to run air-conditioning while stationary. The death
in July of an 81-year-old minibus driver from heatstroke after he turned off his
engine to avoid idling, and the hospital treatment a bus driver required for
suspected heatstroke the same month, added to the pressure on the government to
respond to demands for concessions. Friends of the Earth said it was
disappointed by the latest move and said the exemptions meant the ban on idling
engines had lost all meaning. When the ban was first proposed three years ago as
part of measures to reduce street-level air pollution, the administration said
any driver who left a vehicle parked with an idling engine for what a law
enforcer deemed an unnecessary length of time would face a fixed penalty of
HK$320. The first concession came when the government agreed to exempt the first
two taxis queuing at a stand. Then it said the exemption would apply to the
first five. Then the drivers of the first two public light buses waiting in a
line for passengers were allowed to idle their engines. The government also said
all vehicles would be exempt on any day when one of the three rainstorm signals,
or the very hot weather warning, were put up. Last month the government said the
exemption would also apply to school and tour buses with 17 or more seats. With
the latest exemptions, drivers of all taxis queueing at any of the city's 278
taxi stands will be allowed to idle their engines, as will drivers of school
minibuses with 16 seats or fewer - providing they have passengers on board. The
government had indicated an exemption for all taxis on stands was being
considered two months ago.
Asian Pacific Region looks to China for profit, and to get a free ride from USA
on security - Apec leaders in Yokohama welcomed the continued military presence
of the United States in the region even as they looked to China for trade. Two
summits in East Asia reveal how countries in the region are increasingly torn
between their reliance on China's surging economy and their desire for an
assurance of their security from the United States. The contradictions between
the conflicting priorities of security and economics across the region are all
too clear after four furious days of international summits in Seoul and
Yokohama, Japan. On one hand, China's growing economic clout was boldly on show
as the US struggled to set the agenda when the leaders of the G20 nations met in
South Korea. US President Barack Obama, wounded from domestic political defeats,
is limping home after a rare regional tour in which he was unable to seal
specific agreements on trade surpluses and currency manipulation. Even a
once-vaunted trade deal with South Korea could not be completed. And even though
President Hu Jintao acknowledged the need to drive Chinese domestic consumption
to ease imbalances, he spoke for many when he voiced concern over the Federal
Reserve's decision to effectively print an extra US$600 billion in cash,
accusing Washington of its own currency manipulation. Still, at the Asia-Pacific
Economic Co-operation gathering of leaders in Japan and on his visits to
Indonesia and India, Obama entrenched Washington's push to court Asian nations
eager to snuggle more closely under the traditional US security umbrella. That
trend was highlighted in Yokohama as Japanese Prime Minister Naoto Kan spoke of
the increasing importance of the US role after 50 years of Washington's security
alliance with Tokyo. And he did it with a warmth hard to conceive of just two
years ago - hardly music to the ears of a Beijing fearful of being contained. "I
expressed my appreciation for the consistent support of the US amid Japan's
various problems with China and Russia," Kan said after a lengthy meeting with
Obama. "I also said that I myself and many Japanese people as well as
neighbouring countries recognised the further importance of the US military
presence for the peace and security of the region." As Kan spoke, former US
president Bill Clinton arrived in Vietnam to hail the rapidly emerging economic
and security relationship with a former bitter foe of the US - an emerging
strategic relationship that reflects regional concerns over the harder edges of
China's rise. Of course, few are pretending the challenge of China's rise is
"zero sum" - diplomatic code for a fight in which there can be only one winner.
Even, for example, as Washington weighs tougher action over a yuan believed to
be as much as 20 per cent undervalued, its officials happily note soaring US
exports to China. Obama attempted to address the contradictions in an interview
at the weekend with the Yomiuri, Japan's largest newspaper. He spoke of the need
for the region to "shape" China's rise as well as its economic and global
leadership potential. He spoke of the US welcoming a strong and prosperous China
that assumed responsibility for tackling global and regional problems. But Obama
added: "We will work with our allies and partners to shape the context in which
China's rise is occurring ... We want to ensure that China's rise is a source of
security and prosperity (SEHK: 0803, announcements, news) for all. The United
States and our regional allies and partners share a fundamental interest in
ensuring security, stability and prosperity in Asia." He went on to talk about
the need to peacefully resolve outstanding differences and respect international
"norms". Even for a politician who has defined himself by nuance, it is a
complex equation, riddled with both opportunity and suspicion. And Obama leaves
the region with a clearer view of the importance of getting the balance right.
As the US president wallowed in adulation in Jakarta on his first visit to his
boyhood home, his Indonesian counterpart warned of the regional dangers if
Sino-US relations worsen. "If something happens between those two states, it
will have a severe impact on not only countries in the region ... but also the
world," President Susilo Bambang Yudhoyono said he had told Obama. Beijing is
already anxiously eyeing Obama's security posture. "There are serious concerns
in China that the US is pursuing a containment policy towards China," Zhang
Yebai, a retired analyst of Sino-US relations at the Chinese Academy of Social
Sciences, told the McClatchy-Tribune news agency. "China hopes to further
develop its economic relationship with the United States, but it keeps alert
about US security issues." Washington analysts, meanwhile, are pondering the
sustainability of a region that looks to China for wealth and to the US for
security. "One thing you can be pretty confident about in the future of Asia is
that China's economic role is going to be pretty large throughout the region,"
said Kenneth Lieberthal, director of the John L. Thornton China Centre at the
Brookings Institution. "Everyone is coming to us and saying, `Please increase
your presence and be more robust' - everyone except China," Lieberthal told
McClatchy-Tribune. "But, frankly, if China ends up being the one to really
capture the economic upside of the region and we capture the security needs of
the region, then China captures the region as a profit centre, and we capture
the region as a cost centre. "And that's not where we ought to want to be."
Remember the poor, Wen tells Macau's
elite - Premier Wen Jiabao shows off his tai chi skills as he practises with
local residents at Mount Fortress in Macau yesterday morning. He later delivered
a stern lecture to Macau's ruling elite on their responsibility to the public,
especially the poor.
APEC meeting concludes with
joint declarations - In the declaration called "The Yokohama Vision -- Bogor and
Beyond," the leaders pledged to build an APEC community in which " trade and
investment are freer and more open." APEC leaders also vowed to "take concrete
steps" toward realization of a Free Trade Area of the Asia-Pacific (FTAAP),
which "should be pursued as a comprehensive free trade agreement by developing
and building on ongoing regional undertakings, such as ASEAN+3, ASEAN+6, and the
Trans-Pacific Partnership, among others." APEC champions a collective growth
strategy that emphasizes high-quality development at a time the region is
recovering from the financial crisis but facing uncertainty. APEC member
economies "will implement the Growth Strategy out to 2015, focusing on the five
desired attributes of balanced, inclusive, sustainable, innovative and secure
growth." Separate statements were adopted at the end of the meeting in the
Japanese port city of Yokohama on the growth strategy, FTAAP and the Bogor Goals
of free and open trade and investment.
Jia Rui, from Macao, China celebrates his gold medal in the men's Daoshu and
Gunshu at the Guangzhou Asian Games in Guangzhou, South China's Guangdong
province, November 14, 2010. Jia won the first gold medal for Macao in the
history of Asiad.
Cast members of the film "If You
Are the One II" attend a news conference in Beijing, capital of China, Nov. 14,
2010. Some interesting moments of the film were released during the news
conference on Sunday.
Zhao Jing of China celebrates after women's 200m backstroke swimming final at
the 16th Asian Games in Guangzhou, south China's Guangdong Province, Nov. 14,
2010. Zhao Jing set a new Asian record and claimed the title with 2 minutes and
6.46 seconds.
Beijing, as it develops, is
gradually defined by lots of tall buildings, large mansions and shopping
streets. The modern Chang'an Avenue, Qianmen pedestrian malls and Wangfujing
Street present to the world a prosperous and bustling capital. However, none of
them can speak for the historical culture of Beijing. The old streets in
Beijing, such as Yandaixie Jie (Skewed Tobacco Pouch Street), Guozijian Street
and Nanluoguxiang Street, can best interpret the history, culture and
architectural heritage of Beijing. Yandaixie Jie means "Skewed Tobacco Pouch
Street" in English. It starts from Di'anmen Street in the East and ends at
Qianhai in the West. Measuring almost 300 meters long, the street resembles a
huge tobacco pouch. Also as it runs from the northeast to southwest, hence the
name "Skewed Tobacco Pouch Street". Another reason for its name's origin is
reflected to the people who lived there in the Qing Dynasty (1644-1911), and
that they adored smoking pipes. Due to the large demand for pipes, many tobacco
pouch stores were opened, thus giving the street the name "Tobacco Pouch".
Today, the old street has become a popular destination for visitors. Wandering
along the street, visitors will find many stores selling pipes, tobacco pouches,
antiques and all kinds of souvenirs. The trendy bars, old-style shops and
featured inns are all attractive to the eyes. In November, 2010, Yandaixie Jie
was named "Chinese historical and cultural street", after Guozijian Street in
2009.
Deng Xiaoping should have been first
Chinese to get Nobel Peace Prize: Exco chief - Leung Chun-ying delivers a
lecture on the theme "Establish vision, narrow differences, seek consensus - the
responsibility of political leaders" at Chinese University. Deng Xiaoping was
the "most recognized peacemaker" and should have been the first Chinese to win
the Nobel Peace Prize instead of dissident Liu Xiaobo, Executive Council
convenor Leung Chun-ying says. The remark by Leung - widely tipped as a hopeful
to be the next chief executive - stirred immediate controversy because of Deng's
role in the 1989 Tiananmen Square military crackdown and bloodshed. He made it
after delivering a speech themed "Establish vision, narrow differences, seek
consensus - the responsibility of political leaders" to 1,400 students at
Chinese University yesterday. Asked by a social work student for his view of Liu
being awarded the Nobel Peace Prize, Leung said: "I know more about Mr Deng
Xiaoping than Liu Xiaobo. I also know a bit more about President [Barack] Obama
than Liu Xiaobo. When Obama won the prize last year, many people in and outside
his country thought the award should not go to him." He continued: "There is one
thing I don't understand. If a Chinese was to take the Nobel Peace Prize, why
was the first one not Mr Deng Xiaoping?" He stopped short of commenting on
whether Liu - who was jailed for two years for supporting the 1989 Tiananmen
Square protests and is currently serving an 11-year sentence for subversion
after drafting the Charter 08 democracy manifesto - deserved the award. During
his 40-minute speech, Leung mentioned the name of the late paramount leader
eight times. He also extensively cited Deng's speeches and his design of the
"one country, two systems" principle to illustrate the qualities of a political
leader. Expounding on his ideas of leadership, he also stressed that political
leaders were "not ballot boxes", "not vote-counting officers", "not just
executors" and should stand firm on their beliefs even when these were contrary
to the voters' will. "Political leaders cannot just drift with the tide. They
must have their own ideas, thinking and clear values on issues." He explained
after the event why he thought Deng should have been awarded the peace prize. "Mr
Deng Xiaoping was a great man. He lifted hundreds of millions of Chinese people
out of poverty. He contributed directly and indirectly to the peace and
prosperity (SEHK: 0803, announcements, news) of the people of China and also
people living in neighboring countries, and by extension to the world as a
whole. He's the most recognized peacemaker and also contributor to the
development of the country in a prosperous and stable manner." Deng, chairman of
the Central Military Commission at the time of the 1989 bloodshed, was a key
figure in the crackdown, according to various accounts. While hailing him as a
great peacemaker, Leung said he would leave history to decide Deng's role in the
military suppression. "June 4 [1989] was certainly a tragedy for Chinese people.
The truth of June 4 has not yet been completely made clear. We can still discuss
the issue." When taking a separate question on the imprisonment of Zhao Lianhai
, a mainland father who organised a support group for parents with children
affected by melamine-tainted milk, Leung said he thought the sentence should be
reviewed. "I sympathise with any parent with young children whose health had
been affected by tainted milk," he said. "Under such circumstances, any parent
might act too emotionally." The moderator of the session, Ivan Choy Chi-keung, a
senior instructor in politics at the university, said he was surprised to hear
Leung link Deng with the peace prize. "I believe most Hongkongers would not
agree with him. Deng was the man in control of the military forces who ordered a
crackdown which resulted in such massive bloodshed. "I can't see how Leung could
convince people Deng deserved the Nobel Peace Prize."
The latest Medical Council election
has become a fight between public and private doctors, as the biggest public
doctors' union tries to get its first seat on the watchdog. The 2,500-strong
Public Doctors' Association (PDA) has nominated its immediate past president, Dr
Ho Pak-leung, and serving president, Dr Loletta So Kit-ying, to run for two
seats in an effort to counter what they say is "superpower" dominance by private
doctors. They will compete with the president and vice-president of the Hong
Kong Medical Association, Dr Choi Kin and Dr Alvin Chan Yee-shing, for the two
seats. Seats on the council, which has the power to punish errant doctors and
decide on important policies and matters such as licence approval, are regarded
as key positions in the profession. A war of words has already broken out, with
the Medical Association accusing the union of misleading voters by calling it a
superpower. Ho said the Medical Council had long been dominated by the Medical
Association, which has seven seats on the 28-member watchdog. "The HKMA mainly
speaks for private doctors," he said. "For years, there has been zero
representation of frontline public doctors." The council earlier endorsed a new
policy so its preliminary investigation committee can investigate doctors'
misconduct even without receiving complaints. Ho said in his election material
that the new policy was a serious threat to doctors. "It is dangerous for the
council to actively investigate a doctor without any sound evidence or
complaints," Ho said. "We worry that the council will turn into a tool of
political persecution. The council is becoming a superpower and so is the HKMA
because it supports this new policy." In response to Ho's accusation, the
Medical Association sent a message to its 8,000 members earlier this week saying
it had never suppressed the voices of public doctors. It said it had nominated
at least four doctors - including two serving public doctors and two former
presidents of the PDA - to the council or its committee in recent years. "It
comes as a surprise to us that these doctors, former presidents and council
members [current and past] of the HKPDA are considered by the said professor as
being unable to represent or to understand the predicaments of our colleagues in
the public sector. We do not see our frontline doctors as weak and repressed,"
the letter said. "HKMA nominates colleagues who are hard-working and willing to
spend day after day on an inquiry. Our representatives have a track record for
doing so." The association also said its representatives had actively taken part
in movements in pushing for better working conditions for public doctors, such
as a protest held in 2008 to call for better remuneration packages for young
doctors. Choi said the duty of the medical councillors was to safeguard the
interests of patients and the public, not those of doctors. All registered
doctors in Hong Kong can vote in the election, which will end on Thursday. The
two new members will start their three-year term in January. Of the council's 28
members, 14 are appointed by the government - the four lay members and 10
representatives of various parties, including the two medical schools, Hospital
Authority, Department of Health and Academy of Medicine. The other 14 are seven
doctors nominated by the Medical Association and seven elected by the
profession.
Appoint managers from poorer countries, Hu tells world bodies - Hu Jintao and
Barack Obama urged each other's countries to adopt wise policies. More jobs in
the upper ranks of international financial institutions should go to people from
emerging economies, President Hu Jintao said yesterday. In a speech to the G20
summit, Hu welcomed a recent shift in voting power at the International Monetary
Fund to give developing countries more say in the running of the
Washington-based lender. "The reform of international financial institutions is
a long and dynamic process. Quota and voting power reforms are just a starting
point, and much remains to be done," Hu said. "We should continue to push for
fair and merit-based selection of the management of international financial
institutions, enable more people from the developing countries to take up
mid-level and senior management positions and redress the under-representation
of developing countries at the management level in the institutional framework
of international financial institutions." There are few Chinese in senior
positions at international financial institutions. Zhu Min, a former deputy
governor of the People's Bank of China, is a special adviser to IMF managing
director Dominique Strauss-Kahn. Justin Lin is chief economist at the World
Bank. Hu said China backed the IMF in its efforts to prevent the "destructive"
impact of large capital movements on individual economies. He called for "an
international reserve currency system with stable value, rule-based issuance and
manageable supply". Central bank governor Zhou Xiaochuan proposed in March last
year that a strengthened version of the Special Drawing Right, the IMF's
in-house unit of account, could eventually dethrone the US dollar as the world's
premier reserve currency. In a thinly veiled criticism of the United States, Hu
urged countries that issue reserve currencies to adopt responsible policies and
maintain relatively stable exchange rates. Chinese officials have pointedly
voiced dissatisfaction with the Federal Reserve's easy-money policy in the
run-up to the Seoul summit, fearing it will trigger destabilising flows of
footloose capital into emerging markets in search of yield. In response, the US
has consistently urged China to expand domestic demand so that its economy
relies less on exports. Hu said China would do just that and switch to a growth
model driven by consumption.
Starbucks to grow its own coffee in
Puer China - Howard Schultz in Kunming announces details of Starbucks' first
global coffee farm. After serving coffee around the world for 39 years,
Starbucks plans to start growing its own. And the location for its first global
farm will be in Puer city in Yunnan province, which is better known for its tea.
The Seattle-based coffee giant signed a memorandum of understanding with the
Yunnan Academy of Agricultural Science and the local government of Puer
yesterday, saying it would invest in and operate its first ever base farm there.
It would also establish a coffee development centre, a coffee farmer support
centre and coffee processing facilities. The initiatives would complete
Starbucks entire value-chain - from seed to cup - in China. The local coffee
growing industry expected the involvement by the coffee giant would make the
relatively unknown Yunnan coffee a worldwide brand. "Our customers will have a
taste of Yunnan-made coffee in our shops from Paris to Tokyo, from Brazil to US.
We will share our coffee knowledge to help Yunnan develop into a top quality
coffee-growing region in the world," said Howard Schultz, chairman and chief
executive of Starbucks. Yunnan is one of the best places in China for coffee,
especially the high-quality Arabica beans, thanks to its warm, mild and wet
weather. China produces around 40,000 to 50,000 tonnes of coffee beans a year,
with more than 90 per cent of it coming from Yunnan. Under the agreement,
Starbucks will operate the base farm and the farmer support centre, its first in
Asia and third globally following Costa Rica and Rwanda. The company will assign
agronomists and quality experts to work directly with local farmers to improve
quality and improve yields. Research will be conducted on areas like varietals
for local adaptation, disease resistance and flavour improvements. The beans
produced in Yunnan will be processed in Starbucks' US roasting plant but the
company also plans to build a roasting plant in Asia. Yang Yalin, deputy mayor
of Puer, said both parties were open to co-operation, including joint ventures
and wholly-owned foreign enterprises. "With Starbucks' power in coffee-growing,
marketing and branding, we will build Puer into the capital of coffee in China,"
he said. The Yunnan government also plans to increase green bean volume from the
current 38,000 tonnes to 200,000 tonnes by 2020 and enlarge the coffee acreage
from 26,700 hectares to 100,000 hectares. Neither party was willing to disclose
how much was being invested. All details of the project will be finalised by
January. Starbucks is the latest in a series of major foreign corporates to
invest in the province: Nestle arrived in Yunnan more than a decade ago,
offering training to farmers and purchasing around 3,000 to 5,000 tonnes of
coffee beans annually, and brands like Maxwell and Kraft Food also buy Yunnan
coffee. Starbucks only started buying beans from the province in 2007, using
them to make the "South of the Clouds Blend" sold in outlets in China, Singapore
and Malaysia. Li Sijun, director of the Yunnan Coffee Factory, the biggest
producer of coffee beans in the province, expected Starbucks' arrival to drive
up local prices and increase competition in the domestic market. "But the
opportunity is much greater than the challenge. No one has a deeper
understanding than Starbucks about coffee sourcing, processing and retailing. It
will certainly bring totally new concepts to Yunnan coffee industry," he said.
Chinese president meets Japanese PM
on sidelines of APEC meeting - Chinese President Hu Jintao (R) meets with
Japanese Prime Minister Naoto Kan in Yokohama, Japan, Nov. 13, 2010. Chinese
President Hu Jintao held talks with Japanese Prime Minister Naoto Kan on the
sidelines of the 18th Economic Leaders' Meeting of the Asia-Pacific Economic
Cooperation (APEC) forum here on Saturday. Hu stressed that it is a right choice
in the interests of both peoples for China and Japan to follow a road of peace,
friendship and cooperation. The two sides should proceed from a strategic and
long-term perspective, abide by the principles defined in the four political
documents between the two countries and firmly maintain the right direction of
developing bilateral relations in order to advance China-Japan strategic and
mutually beneficial relations on a healthy and stable track, Hu said. The
Chinese president pointed out that China and Japan should make joint efforts to
consistently conduct cultural exchanges to boost mutual understanding and
friendly feelings between the two nations. China and Japan, being each other's
main trading partner, should continue to deepen their bilateral mutual
beneficial cooperation and enhance dialogue and coordination on international
affairs in a bid to jointly contribute to Asia's revitalization and address
global challenges, Hu said. Kan said he was in full agreement with Hu's opinions
on developing China-Japan relations. He said he hoped that the two sides would
strengthen communications and cooperation in various fields and further improve
and develop bilateral relations. The Japanese prime minister also congratulated
China for its success in hosting the 2010 Shanghai World Expo. The two-day 18th
Economic Leaders' Meeting of the APEC forum opened here Saturday afternoon, with
the theme of "Change and Action."
Chinese Premier Wen Jiabao (R)
greets Portugal's Prime Minister Jose Socrates during the third Ministerial
Conference of the Forum for Economic and Trade Cooperation between China and
Portuguese-speaking Countries in Macao, Nov 13, 2010. 
Airport chaos is blamed on rise in
'black flights' - Private pilots taking off illegally are causing UFO scares on
mainland. Chaos at mainland airports caused by unidentified flying objects is
being blamed on an increase in so-called black flights. Unauthorised flights by
private aircraft have become a common annoyance as the country's growing number
of billionaires buy planes and helicopters to flaunt their wealth. But the
problem is becoming a potential danger to airlines and passengers, with airports
being forced to shut down and commercial flights having to be diverted. Baotou
airport in Inner Mongolia was shut down for more than an hour on September 11
after air traffic controllers reported a UFO buzzing round the airport. It was
the ninth report of a UFO in the skies over Hunan , Sichuan , Shandong , Shanxi
, Yunnan and Zhejiang provinces and the Xinjiang Uygur Autonomous Region since
June. In July, another UFO report forced Xiaoshan airport in Hangzhou ,
Zhejiang's capital, to suspend operations for an hour. The authorities claimed
the aircraft was part of a military test at a nearby air force base. But people
in the neighbourhood said it could have been a private plane whose owners took
to the sky without appropriate licences. In late April, flights to Shanghai's
Pudong and Hongqiao airports were delayed or forced to be diverted after an
illegal flight by a helicopter. Private access to the sky is strictly limited by
the government. But the fine for those guilty of flying illegally is between
10,000 yuan (HK$11,660) and 100,000 yuan (HK$116,600), a trivial amount for the
rich. Tycoon Liu Boquan , of Dongguan , Guangdong province, took off in his own
helicopter in an attempt to trace thieves in July, apparently without the
approval of air controllers. But he received an award for bravery from the city
government. Chen Yan , 40, a cafe owner in Zhuhai and the mainland's first
female to obtain a private licence, told the South China Morning Post (SEHK:
0583) that black flights were an open secret among pilots. She said: "In the
United States, flyboys can take to the sky after simply filing a flight plan,
but the scenario is totally different in China. "The mainland's air space is
still highly restricted to military and commercial aircraft, and potential
fliers need to apply to air traffic controllers seven working days ahead for a
single journey. "It is too difficult to fly on your own in China. I have the
opportunity to fly and get a private licence largely because my father-in-law
served in China's air force and my husband received his own private licence in
2000." Chen said she knew many private jet owners in her hometown in Zhejiang
who fly illegally. "Lots of people do that ... a friend of mine crashed a
helicopter to the ground, and his spine was badly hurt during a black flight.
Thanks to the surgeons, he finally recovered after sitting in a wheelchair for
more than three months," she said. Guan Xiwen , general manager of the Guangzhou
Suilian Helicopter General Aviation Co, attributed the rising number of black
flights to the mainland's administration, which had not recognised the new
demands of the rich. "China neither has laws and regulations to manage air
traffic of private planes, nor issues licences to assemble helicopters for
leisure and sport purposes, which are very popular in the United States and have
grabbed a considerable market share in China, too. It means owners have to fly
illegally," said Guan. "Black flights at a very low attitude to avoid being
detected by authorities' radars are common. [I guess] the number of private
helicopters or jets registered with the General Administration of Civil Aviation
of China is fewer than 200, far below the real number." Scott Jiang Li, a
Beijing-based regional director of US private jet manufacturer Cirrus Aircraft,
said the mainland's tedious procedures for importing private aircraft and a lack
of necessary infrastructure were other factors that make some rich people fly
illegally. He said: "The regulations on buying private jets abroad are too
strict. "Only certain types of jets are allowed to be imported to China. "In
terms of infrastructure, nobody will build his or her own apron and hire a crew
just to fly privately, but that's what Chinese aviation authorities require." He
added: "In China, individuals aren't allowed to buy their own planes before they
appoint professional operators that can provide an apron, pilots, a maintenance
crew and a hangar, and help them apply for tedious flight permits ahead of each
journey." Jiang said very few operators provided those services on the mainland
and there are few aprons available, even in Beijing and Shanghai. To boost
aircraft sales, Jiang's company built its first apron in Zhuhai and provides a
maintenance and storage service for private jets. He said the company was
discussing with more regional governments the possibility of building more
aprons in an attempt to encourage billionaires to buy their planes and fly
legally. Zhu Songbin , 52, a tycoon in Wenzhou , Zhejiang, who was fined for a
black flight in March, complained at least two of his sport planes couldn't
receive licences from aviation authorities. "The two helicopters, priced under 2
million yuan (HK$2.3 million) each, aren't recognised by mainland authorities,"
he was quoted by Shanghai's Xinmin Weekly as saying. "Also, I couldn't find an
apron nearby or build my own, which is a prerequisite for each authorised
journey. I'm doomed to fly illegally."
US cash flood could trigger a
repeat of the region’s 1997-98 crisis: Donald Tsang - Hong Kong Chief Executive
Donald Tsang Kam-yuen speaks during the APEC CEO Summit in Yokohama, Japan, on
Friday. Chief Executive Donald Tsang Kam-yuen warned on Friday that a move to
inject billions of dollars into the ailing US economy could inflate Asian asset
bubbles and trigger a repeat of the region’s 1997-98 crisis. Tsang said there
was a risk of “unprecedented market turbulence” in currencies, bonds and stocks
and warned that Hong Kong is ready to take new anti-speculative steps to cool
its over-heated property market. “I am very much concerned about the impact of
the US second round of quantitative easing on Asian economies,” Tsang said,
referring to the Federal Reserve’s controversial US$600-billion attempt to
reflate the US economy. Critics worry the cash surge will not only further
dilute the value of the dollar but add to the flood of money that is chasing
higher returns in Asia and dangerously inflating stock, bond and property
markets. “This has increased the risk of asset bubbles, which will impact on our
financial stability as well as regional and global economic growth,” Tsang said
at a business forum in Yokohama, Japan. The popping of “emerging bubbles in
different pockets” of Asia’s securities and property markets would be “highly
infectious”, he said. “And the end result is you can see a second wave...
similar to the one we had in 1997 and 1998, when there was an over-exuberance in
our markets. This is exactly the case now. “All you need is one major
conglomerate or one large bank... suffering a shock... and suddenly you can see
a tsunami style” effect, Tsang said at the event, held on the eve of an Asia
Pacific Economic Co-operation (APEC) summit. There has been widespread foreign
condemnation of the US policy of printing billions of new dollars as a stimulus
measure, including at the G20 summit which US President Barack Obama was
attending in Seoul Friday. Tsang said the “exceptionally abnormal” environment
called for vigilance from policymakers, who should be “fully prepared and take
all forms of action to avoid systemic risks that might disrupt our recovery”.
Hong Kong last month laid out measures to cool the world’s hottest property
market, including a halt to granting automatic residency rights to rich buyers
and a rise in stamp duty on luxury sales. “But we will not stop here. We will
not hesitate to introduce further anti-speculative measures when there is need
to do so,” Tsang said, adding that to maximise the impact “there will be no
prior notice” before they are imposed.
'Made in China' - but cheaper to buy in
Hong Kong - Amid high inflation and surging prices, mainlanders head across the
border to shop - The "made in China" tag that seems to appear on almost
everything these days does not necessarily mean those products are cheaper on
the mainland. Mainlanders load up with goods that are cheaper to buy in Sheung
Shui to take back across the border. Shenzhen housewives are upset that many
mainland-made groceries and items cost less to buy in Hong Kong. Many Shenzhen
housewives are upset that a lot of mainland-manufactured groceries and items
cost less to buy in Hong Kong. Such is the effect of inflation across the
border. Han Mei , 57, a retiree from Henan who has lived in Shenzhen for more
than a decade, was forced to give up eating Fuji apples from Shandong every day
after the price of her favourite fruit rose from 6 yuan (HK$7) a kilogram last
year to 16 yuan now. "I used to have a Fuji apple every day but can't afford it
any more now that they cost around 5 yuan each," she said. "I haven't eaten an
apple for a week." Han's family travels every month to Hong Kong to shop for
groceries and daily necessities. Han said she was really taken aback when she
first found that food and other basic items on the other side of the border were
cheaper. "The grocery prices [in Shenzhen] are flying high this year ... my
daughter has to visit Hong Kong every month for grocery items because things are
selling much cheaper there and the quality is more reliable," Han said. Beijing
on Thursday said inflation last month rose to 4.4 per cent - the highest in 25
months and well above the government's target of 3 per cent. Meanwhile, the
value of the yuan against the Hong Kong dollar has been slowly but steadily
rising over the past few years. Take Fuji apples, for example. They cost about
HK$10 for four in supermarkets in Hong Kong, or 2.15 yuan each, half the price
at wholesale markets on the mainland. The price of imported fresh food is also
rocketing. At a Jusco supermarket in Shenzhen, Red Delicious apples from
Washington state in America sell for 34.40 yuan a kilo, or about 8 yuan each. In
Hong Kong, they cost only HK$3.50 each. Kiwi fruit from New Zealand cost 3.90
yuan each in Shenzhen, but in Hong Kong, HK$10 buys five of them. What really
puzzles Han and other mainland housewives is that even goods made on the
mainland are cheaper in Hong Kong. Shenzhen housewife Yuan Jing , who visits
Hong Kong every two weeks, found almost all mainland-made products such as
shampoo, toilet paper and dog food were more expensive in Shenzhen. "I'm very
angry every time I talk about this," she said. "Can you explain to me why Dove
beauty moisture wash - made in Hefei [Anhui's capital] - is priced at 48 yuan a
litre, but only costs HK$33 in Hong Kong? "I'm also very angry about dog food.
Pedigree dog biscuits, which are made in Beijing, cost 10 yuan a 250 gram pack,
but only HK$7.90 in Hong Kong. I don't think the [central] government has done a
proper job in controlling the price because Hong Kong has a much higher living
standard, salaries and housing prices. Hong Kong's prices should be higher than
Shenzhen's." Yuan said she saved 300 to 400 yuan on shopping even after she
deducted 37 yuan in fares for a round trip from Lo Wu to Sheung Shui. The
National Development and Reform Commission says 80 per cent of 31 key fresh food
and grocery products it monitors rose in price in 36 cities last month.
Shenzhen's food prices rose 8.3 per cent year on year in September and the
overall consumer price index 3.8 per cent. The mainland's overall CPI rose 3.6
per cent and Hong Kong's 2.6 per cent. Rising food prices account for
three-quarters of national inflation, and water, power and gas prices contribute
another 15 per cent. The mainland's Engel's Coefficient - which refers to the
proportion of a family's spending on food to total consumption - is about 40 per
cent. Because Beijing does not include rent and mortgage payments in its
calculation, the real CPI is likely to be higher, considering the speculation in
the property market. The average cost of housing in 70 mainland cities was up
9.1 per cent year on year in September and 8.6 per cent last month. Lin Jiang ,
an economics professor at the Centre for Hong Kong, Macau and Pearl River Delta
Studies at Sun Yat-sen University, said inflation expectations, monopolies and
widespread collusion between big businesses made mainland-made products more
expensive in Shenzhen than in Hong Kong. "We call this kind of phenomenon
`overshooting' in economics," Lin said. "Retailers tend to raise the price a
little over the real cost, amid expectation of long-term inflation in
production, labour, logistics and operational costs. The lack of a market
pricing mechanism and government intervention also make the mainland's price
rises unpredictable. The prices are often decided by retailers themselves rather
than the market. When individual retailers raise the price, it has a
`demonstration effect' on other retailers, resulting in widespread inflation."
Lin said the government also contributed to inflation by raising the price of
water and power in recent months. Lin Jizong , a restaurant owner in Shenzhen,
said he was forced to raise prices to match inflation. "Everything is going up.
The landlord just raised our rent by 10 per cent this month. If we don't raise
our prices, we will suffer a loss," he said. Other economists blame the
inflation on the central government's loose monetary policy. The economy is
saddled with excess liquidity amounting to 43 trillion yuan, according to the
People's Bank of China. Last year, mainland banks extended 9.59 trillion yuan
worth of new credit, a 95 per cent increase over 2008. "Inflation on groceries
including green beans, ginger, garlic and chillis is the result of an oversupply
of money," economist Xie Guozhong was quoted by the China Economic Weekly as
saying. "Excess money accumulated in recent years has brought huge inflation
risks to China's economy." Thousands of Hong Kong retirees who tried to contain
their living costs by moving to the mainland have run into trouble as prices
continue to rise. According to the Hong Kong Federation of Trade Unions, some 90
retirees turned to the Hong Kong government for help in 2008 after they used up
all their savings. The number rose to 110 last year and 65 in the first five
months of this year. The stop sign is also up for younger Hongkongers. Clerk
Fong Wai-yee, who lives in Tseung Kwan O, used to take her family to Shenzhen
for the weekend for cheaper meals, entertainment and products. But now HK$100 is
only worth 85 yuan. "Even a glass of iced lemon tea is more expensive in
Shenzhen than in Hong Kong now," she said. "It costs 15 yuan at Tai Hing
restaurant in Shenzhen, but only HK$16 at its Hong Kong branch. There's no way
we spend weekends in Shenzhen now."
Hong Kong's Baptist University to open
center for research in Jiangsu China - Baptist University is set to expand to
the Yangtze River Delta. It will establish a research institute in Changshu ,
Jiangsu province, and offer joint doctoral programs with elite mainland
universities, its president says. The institute will carry out research in
fields including Chinese medicine, biotechnology and communications. The
Changshu city government will provide land for the 60,000 sq ft facility at 5
per cent of the market price and subsidize it to the tune of 10 million yuan
(HK$11.7 million) for the first five years, the university, based in Kowloon
Tong, says. The centre will offer programs including media training and a
master's in business administration aimed at government officials and heads of
corporations. The university's president, Professor Albert Chan Sun-chi, said
expanding beyond the Pearl River Delta could allow it to tap the vast state
funding available for research. "State funding cannot be used across the border.
But if our people are on the mainland, we can make use of the vast resources,"
he said. "The move will also lessen the pressure on our laboratories and on our
Hong Kong campus." Plans to develop joint doctoral programs with prestigious
universities in northern areas of the mainland are also in the offing.
"Developing joint PhD programmes will be the first step. Spending time both in
Hong Kong and across the border, the research students from the joint PhDs will
be co-supervised by us and mainland professors." The next step would be to
develop joint undergraduate programs, Chan said. "Students would spend two years
here and the remaining two years on the mainland. But I don't want to push too
hard at this stage, as we don't have enough hostels and classrooms. We must give
them a place to live when mainland students come." The university's expansion
into the mainland began when it set up United International College in Zhuhai
with Beijing Normal University in 2005. The institution is the first to offer
Hong Kong-style degree programmes on the mainland. Chan, who took the reins at
the university in July, said joint projects between local and mainland
universities were the way forward for the development of the higher education
sector. "Many professors on the mainland have a good academic stature, with many
of them coming from overseas. If talent and resources from Hong Kong and the
mainland could be merged, the teamwork and joint expertise could allow us to
compete with the rest of the world," he said.
Hong Kong Central office costs
rise 34pc in year; fastest pace in world - Occupancy costs average HK$123 per sq
ft; Kowloon also up - Office occupancy costs in Central have risen the most in
the world in the past year, up 34.2 per cent, according to property consultancy
CB Richard Ellis. Annual office occupancy costs, which includes rent, taxes and
service charge, grew to US$184.21 per sq ft in the 12 months to September, or
HK$123 per sq ft a month. As a result, Central continues to rank as the world's
second-most expensive office market, after London's West End. The West End
retains its top position among 175 cities worldwide, with an occupancy cost of
US$193.69 per sq ft a year. Tokyo's Inner Central district is third, with an
occupancy cost of US$158.08 per sq ft. Hong Kong's non-core business areas also
saw a boom in the office market. Areas such as East Kowloon recorded the
third-sharpest spike in the world, gaining 23.9 per cent year on year. CB
Richard Ellis said this reflected higher demand for office space in non-core
areas because of lower rents and higher availability of quality offices compared
with Central. "There has been a strong demand throughout this year for buildings
such as International Finance Centre and Exchange Square in Central business
district," said Rhodri James, executive director of office services at CB
Richard Ellis in Hong Kong. He expects this trend to continue into 2011. James
said that because the amount of office space in development was insufficient to
meet demand, rents had risen strongly not only in Central but across the
majority of Hong Kong Island and Kowloon's office districts. The Asia-Pacific
region saw a solid increase in office occupancy costs in the last six months.
The consultancy said increased economic activity had boosted demand while a
strengthening yuan means costs have risen relative to other markets. The Hong
Kong office sales market overall has seen a strong growth. Data from agency
Knight Frank shows grade A office prices have rebounded 84 per cent from their
trough in February last year. The market saw a number of record-breaking deals
recently. The 79th floor of The Center in Central changed hands for HK$338
million - a record HK$25,581 per sq ft. "Office prices at Lippo Centre in
Admiralty were about HK$13,000 per sq ft early this year. But now prices have
risen 25 per cent to more than HK$16,000 per sq ft," said Desmond Poon,
associate director at agency Chartersince Realty. He said the average price is
close to the market peak of HK$19,000 per sq ft in 1997. "I believe prices of
grade A office will rise 25 per cent in the coming year. It will definitely
surpass the previous peak set in 1997. Transactions have increased sharply over
the last few days after the US Federal Reserve unveiled its second round of
quantitative easing policies last week." Investors are increasingly interested
in office space as prices in this sector are still lagging behind other
properties, said Harry Chow Wing Hang, associate sales director at commercial
agency Midland IC&I. Knight Frank research shows grade A office prices are still
5 per cent below where they were in February 2008. Retail properties are up 30.3
per cent and luxury residential properties up 7.1 per cent from their previous
peak in 2008. While prices of luxury residential and prime retail properties hit
record levels a few years ago, grade A office prices are still below their 1997
peak. "Office prices are still cheap, compared with other types of properties.
It is very attractive to investors who are looking for a higher capital value
growth. Also, investors expect office prices to rise further due to a strong
growth in office rents," Chow said.
Be prepared
to dig deeper into your pockets and purses because raging inflation in the
mainland is going to bite deep in Hong Kong. A double-digit surge in food prices
drove mainland inflation to a 25-month high of 4.4 percent in October, raising
expectations of another rate hike and a knock-on effect here. The inflationary
blast, due mostly to a 10.1 percent increase for food, was far above the
official consumer price index target. That was 3 percent. It was also up sharply
on September - the inflation rate then was 3.6 percent. "Pressures on prices and
macroeconomic controls are increasing," National Bureau of Statistics spokesman
Sheng Laiyun said yesterday as the grim data was revealed. China's battle to
slow price rises comes amid worries that the US Federal Reserve's move to inject
US$600 billion (HK$4.68 trillion) into the American economy could increase
speculative "hot" money flows into the mainland and add more fuel to the flames
of inflation. About 80 percent of mainland food products registered price hikes
in 36 major cities in a month, recent figures from the National Development and
Reform Commission show. And it can only get worse, as seen for example in
price-label changes in Shanghai's Carrefour supermarkets. Prices of garlic have
surged nearly threefold and sugar 80 percent since the start of the year. In
Hong Kong, too, the prices of the spices of life are harbingers of problems. A
housewife named Tse complained yesterday: "Prices of garlic and ginger are
terribly high. Ginger costs HK$20 a catty, up 150 percent from six months ago."
Giddying hikes are affecting many other foodstuffs: in six months the price of
an egg has risen from 50 HK cents to 90, the price of beef is up by HK$5 a
catty, while cooking oil costs HK$8 more a kilogram. "I'm spending on average
HK$40 more to buy food for my family of four for every meal," complained a woman
named Leung. Chong Tai-leung, an economics associate professor of the Chinese
University of Hong Kong, sees a double whammy. "Food prices are expected to be
up at least 10 percent within three months, and may lead to a significant rise
of inflation," he said. This would be coupled with pressure from the
appreciation of the yuan. The SAR government will announce today a decision on
whether to adjust the expected annual inflation rate, which now stands at 2.3
percent. The latest overall consumer prices show a 2.6 percent rise in September
on the same month last year. Inflation in the mainland is so far limited to
food, but that will change as money from a flood of lending that was part of a
stimulus effort courses through the economy, said William Hess, managing
director of Beijing-based researcher firm China Analytics. "Inflation is
especially sensitive in a society where poor families spend up to half their
incomes on food," Hess added. "Beijing might decide it needs to impose price
controls if the cost of basic items such as grain continues to rise."
G20 refuses to back US push for
action on yuan - Alarm at American economic stimulus undermines bid to pressure
China - Global disquiet about the impact of fresh US economic stimulus thwarted
American efforts to pressure China over the yuan's value at the G20 summit in
Seoul yesterday. Underlining the global concerns, Chief Executive Donald Tsang
Yam-kuen said in Japan that the American credit injection could inflate Asian
asset bubbles and trigger a repeat of the 1997-98 financial crisis. The G20
leaders brokered a communique aimed at appeasing all parties but which may not
achieve anything concrete. The two-day G20 summit, which closed yesterday, was
overshadowed by surging capital flows into emerging economies as the US Federal
Reserve added US$600 billion in an attempt to reflate the American economy.
Tsang, addressing a business forum, said Hong Kong must guard against a risk of
"unprecedented market turbulence". "I am very much concerned about the impact of
the US second round of quantitative easing on Asian economies. This has
increased the risk of asset bubbles, which will impact on our financial
stability as well as regional and global economic growth." The sentiment was
widely echoed among leaders in Seoul. In the statement issued after their
meeting, they said emerging markets could adopt regulatory steps to cope with
excessive liquidity. Brazil, Indonesia and South Korea have already imposed
restrictions on investment inflows to defuse the danger of hot money. In the
run-up to the summit, the US and China bickered over trade and currency policy.
US Treasury Secretary Timothy Geithner vowed to rally other G20 powers to push
China for currency reform at the summit. But America's unrestrained printing of
money has, in turn, alarmed many nations, prompting criticism even from its
traditional allies in Europe. Facing the prospect of currency wars, G20 leaders
patched over their differences and agreed to a vague framework that promises to
bring global imbalances under control. A joint statement issued by leaders
including President Hu Jintao and US President Barack Obama tried to create a
sense of unity. But deep divisions among the countries mean the communique was a
watered-down agreement. It was deemed by some as "a step forward" from the June
summit in Toronto, as it touched on hot issues such as exchange rates trade
imbalances. The communique made a commitment to "moving toward a more
market-determined exchange rate system, enhancing exchange rate flexibility and
refraining from competitive devaluation of currencies". But it steered clear of
the term "competitive undervaluation" - which the US wanted and was used to
target China more specifically. On the other hand, it did not address the excess
of credit some blamed on the United States. The communique only carried a line
in principle saying that "advanced economies, including those with reserve
currencies, will be vigilant against excess volatility and disorderly movements
in exchange rates". More critical analysts worried that the communique lacked
detail and substance. Citi Investment Research economist Shen Minggao said: "The
deal didn't reach concrete measures to erase the possibility of a currency war."
Hu was gloomy in his final remarks before the communique was issued, calling for
global resistance to trade barriers while painting a bleak picture of the global
economy - an apparent dig at recent US policy. "The international financial
markets are volatile, the fluctuation in the major currencies is large, prices
of commodities are high, and there is a clear rise in protectionism." Without
naming the US, Hu called on major reserve-currency economies to adopt
"responsible policies and maintain relatively stable exchange rates". Obama
reiterated after the agreement that China's currency policy was an "irritant"
for the US and other trading partners. "China spends enormous amounts of money
intervening in the market to keep it undervalued," he said. "We understand that
this is not solved overnight. But it needs to be dealt with, and I am confident
it can be." The leaders, nonetheless, agreed to setting guidelines to assess
"persistently large imbalances" under an existing IMF mechanism where member
countries carry out periodical review of each other. The Seoul summit showed the
growing clout of emerging countries such as China and India. French President
Nicolas Sarkozy, host of the next G20 summit, said China had already offered to
host the first working group seminar for the finance minister meetings next
year. G20 has emerged as the premier forum for dealing with economic issues
since the financial crisis, but it shows signs of weakening momentum since the
world moves from crisis management to building a financial system to ensure
sustainable growth. Professor Gregory Chin, of the Centre for International
Governance Innovation in Canada, said the meeting showed a general theme of
moving away from the "Washington consensus". He said the new G20 approach has
incorporated elements of development lessons from China and other major emerging
nations.
Guangzhou opens Asian Games with a bang -
Dazzling flotilla of boats transports thousands of athletes at record-breaking
event - Guangzhou yesterday kicked off the 16th Asian Games with
world-record-setting fireworks and a dazzling waterfront spectacle in the middle
of its landmark Pearl River - and tens of thousands of eager onlookers broke
into condoned-off areas to catch a glimpse of the show. Two years after China
wowed the world with the Olympic Games opening ceremony in Beijing, Guangzhou
highlighted Guangdong's heritage as a coastal province at its ceremony on
Haixinsha Island.
G20 agrees tougher financial
regulations - Barack Obama shakes hands with Hu Jintao at the G20 summit in
Seoul on Friday. G20 leaders on Friday endorsed tighter financial regulations,
including tougher bank capital and liquidity standards, to guard against the
"irresponsible risk-taking" which triggered the economic crisis. The leaders of
advanced and emerging economies, in a declaration after their Seoul summit,
backed measures to better regulate “systemically important financial
institutions” – those deemed too big to fail. “This new framework... will ensure
a more resilient financial system by reining in the past excesses of the
financial sector and better serving the needs of our economies,” their statement
said. G20 leaders have been digesting the lessons of the global financial
crisis, including the need to limit the risk of major financial institutions
failing and sending shock waves through the economy. The lesson was learnt the
hard way after the collapse of Lehman Brothers in 2008, which triggered the
worldwide economic downturn. “The global financial system came to a sudden halt
in 2008 as a result of reckless and irresponsible risk-taking by banks and other
financial institutions, combined with major failures of regulation and
supervision,” the leaders said. “Today, we have delivered core elements of the
new financial regulatory framework to transform the global financial system.”
Leaders endorsed new rules set by the Basel Committee on Banking Supervision and
known as Basel III, which order banks to keep more capital for a rainy day.
These are scheduled to be phased in from 2013 with banks asked to hold higher
reserves by January 1, 2015. The key element known as core Tier 1 capital will
be raised to 4.5 per cent from two per cent. In addition, by January 1, 2019,
banks will be required to set aside an extra buffer of 2.5 per cent to
“withstand future periods of stress”, bringing the total reserves required to
7.0 per cent. The G20 leaders reaffirmed that “no firm should be too big or too
complicated to fail and that taxpayers should not bear the costs of resolution”.
They supported a policy package proposed by the Financial Stability Board to
reduce the moral hazard risks posed by systemically important financial
institutions and address the too-big-to-fail problem. Banking executives,
including Standard Chartered CEO Peter Sands, have voiced concern that Basel III
could deter enterprising companies. “We have to be careful... that we don’t have
unintended consequences in terms of the impacts on the real economy,” Sands said
in Seoul Thursday. The possibility of extra capital requirements on top of Basel
III is even more unpopular with major banks. US Treasury Secretary Timothy
Geithner shrugged off the criticism in an interview with TV news channel CNBC.
“The most important thing... is to make sure these large institutions, large in
our markets and they can be globally, run with less leverage and less risk and
hold more capital against that risk,” Geithner said. “That is overwhelmingly
important and I wouldn’t listen too carefully to those people running those
institutions who told us for years and years and years that they knew better
than anybody else how to manage their risk.”
Chinese vase sells for record US$69m - An
antique Chinese vase decorated with a 'humorous fish' motif sold for 43 million
pounds at a London auction on Thursday. An 18th-century Chinese vase discovered
in a house clearance fetched a staggering 43 million pounds (US$69.2 million) at
a London auction on Thursday. The 40-centimetre Qianlong porcelain vase, which
was sold by Bainbridges auctioneers, is understood to have been bought by a
private Chinese buyer. On top of the initial price, the purchaser will also have
to pay 20 per cent fees, bringing the grand total to an eye-watering 51.6
million pounds. It is thought to be the highest ever price paid for a Chinese
art work at auction, and has made the brother and sister who inherited the vase
following its discovery in a north London suburban home instant
multi-millionaires. Helen Porter of Bainbridges said: “They had no idea what
they had. They were hopeful but they didn’t dare believe until the hammer went
down. “When it did, the sister had to go out of the room and have a breath of
fresh air.” The vase – decorated with a “humorous fish” motif – was expected to
fetch between 800,000 pounds and 1.2 million pounds but far exceeded the
valuations as a new breed of Chinese investors look to snap up artefacts from
their imperial past. The auctioneers described the “exquisite” piece as “one of
the most important Chinese vases to be offered for sale this century.” The
clearance of the one-storey house – where the vase has been residing for decades
– was undertaken by the brother and sister following the death of their parents.
It is unknown how the vase made it to Britain, but it is thought almost certain
that the antique – which dates from around 1740 – was fired in the imperial
kilns and kept in the Chinese Royal Palace.
Guangzhou adds finishing touches to
Asian Games - Women rehearse the medal presentation ceremony at the main stadium
of the Asian Games in Guangzhou on Thursday. After investing billions of dollars
in venues and orchestrating civil obedience campaigns designed to ensure
Guangzhou plays the perfect host, China saved a warning for its athletes until
the hours leading up to Friday's opening ceremony. In an address to athletes and
officials on the eve of the opener, Chinese Olympic Committee president Liu Peng
ordered the country’s representatives to “behave,” urging them to heed lessons
from the “Wang Dalei incident.” Wang, a brash Chinese goalkeeper, was suspended
indefinitely earlier this week for posting a stream of rants on his micro-blogging
site attacking his critics – calling them “a bunch of dogs” and “morons” – after
his football team lost its opening match to Japan. He was benched for China’s
second match on Wednesday, then suspended and ordered to “meditate on his
actions.” It was the first blight on the games, for which preparations have been
meticulous. China’s official news agency, Xinhua, quoted Liu as saying Wang’s
“ill-natured” actions had a “negative effect on society” and breached the team’s
code of conduct. “It is understandable to lose a soccer game,” Liu was quoted
saying. “It is unforgivable to have disgraceful acts such as swearing at soccer
fans. The Chinese delegation never tolerates such actions.” Chinese officials
have talked openly this week about overhauling the state-run sports systems and
enhancing the programs to include more emphasis on overall development rather
than purely on results. “We should put more efforts in education about moral
conduct, raise the moral standard of the Chinese athletes, make the Chinese
athletes stronger and more civilized,” Liu said. Of the 977 athletes on China’s
Asian Games team, 655 will be competing at a major international multi-sports
event for the first time. In scale, the Asian Games – featuring more than 10,000
athletes in 42 sports – is second only to the Summer Olympics, last hosted in
the Chinese capital two years ago. Athletes from all 45 countries will be
ferried down the Pearl River later on Friday into what organisers are promising
will be a spectacular opening ceremony and a first of its kind. The event is
being staged on an island in the downtown area, well away from the main stadium.
People living within a one-kilometre radius of the island have been ordered to
vacate their homes during the ceremony, for security reasons, but asked to leave
the lights on. Many central underground railway stations were closed on Friday
for security sweeps and streets in the vicinity of the opening ceremony were
unusually quiet for a bustling city of more than 10 million. There will be 28
gold medals to be awarded Saturday on the first day of full competition, with
finals in shooting, swimming, triathlon, judo, weightlifting, gymnastics and in
dance sports, which is making its debut at the Asian Games. India has a good
chance in the shooting, with Olympic champion Abhinav Bindra and Gagan Narang in
action on Saturday. Japan is the leading contenders in the women’s triathlon and
judo, but China is again expected to lead the way from the start in the overall
medal count. The first medal of this year’s Asian Games is likely to be in wushu,
the indigenous Chinese martial arts. Defending champion Yan Ziaochao is the
leading contender in the men’s changquan discipline, which opens the
competition.
A request for residents of
Guangzhou to turn on their lights during Friday's opening ceremony of the Asian
Games could instead trigger a symbolic blackout protest. With authorities
striving to depict the Games – the largest sports event in the country since the
2008 Olympics – as a symbol of harmony and its global stature, any sign of
dissent has been stifled amid a tight security squeeze. But in recent weeks, a
smattering of dissenting voices have dismissed a campaign by authorities in
Guangzhou urging residents to keep their lights blazing to enhance the city
skyline as absurd, while on at least one social networking site, appeals have
been made for a retaliatory “lights off” campaign. While the blaze of fireworks,
lasers and illuminations planned for the show will not be much dimmed by a
handful of critics blacking out their homes, some said it was a chance to prove
a rare point against Guangzhou’s policy-making. “Normally, when they decide on
something they don’t give us any say. So this is what we can do in protest,”
said one online critic who asked not to be named when contacted by reporters. On
the social networking site Weibo, dubbed China’s Twitter, netizens also blasted
the “lights-on” movement as a waste of energy and contrary to the multi-sport
event’s supposed green credentials. Some local residents have shown barely
disguised scorn for the Games, griping about the inconvenience and disruptions
caused by massive construction, traffic restrictions and demolitions, while
others have expressed support for it. “It’s not every day you have the Asian
Games so I don’t mind supporting this [lights on policy],” said a Guangzhou
artist surnamed Leung, speaking in the local Cantonese vernacular. Guangzhou,
considered one of China’s three largest cities has pumped billions into the
Games and urban gentrification projects in a bid to showcase itself as a
cosmopolitan city of international stature. The opening ceremony on a tiny
island on the Pearl River promises to be a spectacular one with 6,000
performers, a flotilla of boats for athletes and performances drawing on the
region’s Lingnan culture with water-based themes. The Asian Games run from
November 12-27 with around 10,000 athletes from 45 countries taking part in 42
sports.
GM will pay US$51 million to boosts China's stake prior to US IPO - GM China
president Kevin Wale plans to steer the company into the massive lower-tier
segment, one of the largest markets in the world. General Motors will pay US$51
million to boost its stake in its mainland commercial vehicle joint venture
ahead of next week's planned US$10.6 billion stock market listing in New York,
eyeing a larger piece of the growing vehicle demand in second and third tier
cities and towns across the mainland. GM China agreed to raise its stake in
three-way partnership SAIC-GM-Wuling (SGMW) to 44 per cent by acquiring an
additional 10 per cent interest from Guangxi-based Wuling Group in exchange for
US$51 million in cash and an agreement to provide technical services to the
Wuling Group until 2013, GM said. Wuling will keep a 6 per cent stake in the
venture and SAIC 50 per cent. The deal gives GM exposure to a bigger slice of
soaring demand for affordable, but reliable, minivans and passenger cars in the
mainland's interior provinces, cities and towns. SGMW produces the Wuling
Sunshine, a minivan-style light commercial vehicle priced from 30,000 yuan and
ranked as the mainland's single best-selling automobile this year. At the same
time, SAIC-GM-Wuling is making a new foray into the mainland's lower-tier
passenger car segment via its newly launched Baojun or "treasured horse" brand.
The first Baojun model was scheduled to roll off the production line later this
month, said GM China president and managing director Kevin Wale. "If you look at
the lower end of each vehicle segment, it is massive," Wale said yesterday. He
estimated lower-tier mainland auto sales at about five to six million units per
year. "By itself this segment is larger than just about any other car market in
the world. If you choose not to play in it, you effectively give it up to the
Cherys, the Geelys and the BYDs," he said, referring to several homegrown
companies that have tended to capture the dragon's share of mainland demand for
affordable passenger cars. SAIC-GM-Wuling's sales of mini-commercial vehicles
rose 5.1 per cent last month to 93,935 units, accounting for just under half of
all sales reported by GM China's various mainland joint ventures. GM's main
passenger car business on the mainland, Shanghai GM, saw wholesale shipments
rise 55 per cent in the first nine months of the year to 742,162 units under the
Buick, Chevrolet and Cadillac brands. Shanghai GM, 51 per cent controlled by
SAIC and 49 per cent by GM, saw net income more than double in the period to
US$1.92 billion, up 129 per cent from US$838 million in the first nine months of
last year. Revenue rose 60 per cent to US$13.88 billion in the first nine
months, with sales by GM's joint ventures on the mainland now on track to
surpass its US sales this year. GM is hoping booming business in China will
attract investors to next week's share sale, which will reduce the US
government's controlling stake in the bailed out carmaker to well below 50 per
cent. GM China expected to sell around 2.3 million vehicles this year and
maintain market share of around 13.5 per cent, Wale said. He expected total
mainland vehicle sales would rise to a record of up to 17.5 million units,
nearly 30 per cent up on last year.
General Motors, the largest
overseas carmaker in China, has failed to replicate that success in India. To
crack the market, the Detroit-based manufacturer is enlisting its partner in
China, SAIC Motor Corp. The alliance produces the best-selling vehicle in the
world's biggest car market, where it has a 13 per cent market share. GM has
struggled in India since entering in 1994, with its Chevrolet models accounting
for only about 5 per cent of car sales in Asia's second-fastest growing major
economy. GM and Shanghai-based SAIC will start selling models in India next year
that are similar to those now sold in China, Kevin Wale, GM's China president,
said in an interview. The alliance will challenge Maruti Suzuki India, the
nation's largest carmaker with a 41 per cent market share, and Tata Motors,
maker of the world's cheapest car, the Nano. "The Indian market is very similar
to the Chinese market," Wale said last month. "They also have a need for a lot
of products that have already or are being developed for the Chinese market."
The partners may introduce as many as three light commercial vehicles and two
passenger cars in India by 2012. The alliance also is targeting other developing
markets. Last month, it started exporting Chevrolet Sail compacts made in
Shandong to Chile and Peru. The carmakers may ship elsewhere in Latin America,
Egypt and the Middle East, Wale said. GM and SAIC said in December they would
spend US$650 million forming a new venture to build and sell passenger cars and
small trucks in India. The carmakers have not identified the first vehicles to
go on sale next year. The two companies plan to use their expertise in China to
gain a competitive advantage in India, said Judy Zhu, a Shanghai-based
spokeswoman for SAIC. Domestic car sales in India rose 29 per cent from a year
earlier to 215,632 units in September, the Society of Indian Automobile
Manufacturers said in New Delhi. Deliveries in China rose 19 per cent to about
1.21 million units in the same period. India's passenger-car sales were 1.95
million in the year ended March 31. The government estimates sales may pass 3
million by 2015. During the past five years, India's economy grew by an average
8.5 per cent annually, and per capita incomes gained 70 per cent. "Our focus is
on India," Wale said. "The ability to take the product portfolios and the
understanding of the growth-market business model gives us the opportunity to
grow much faster than if we did it by ourselves." GM-SAIC will make cars and
trucks weighing less than one tonne at GM's Halol and Talegaon plants, which
have a combined annual capacity of 225,000 units, said Hua Foley, GM's
spokeswoman in Shanghai. GM and its partners have 13 per cent market share in
China this year, chief financial officer Chris Liddell said last week. This is
up from 3 per cent in 2000, he said. Winning market share from Maruti and Tata
will not be easy, according to Deepesh Rathore, India managing director at
consulting company IHS Automotive in Gurgaon. "These companies have very good
brand names and widespread service networks," Rathore said. "I don't think the
Chevrolet network is wide enough." The joint venture also needs to change
consumer perceptions that Chinese products are of inferior quality, said Bill
Russo, a Beijing-based senior adviser at Booz & Co. M.S. Thapa, 72, owns a
security guard service in suburban New Delhi that uses three Maruti minivans to
transport workers. He said he would choose an Indian vehicle over a Chinese one
in the same price bracket. "General Motors is fine, but public opinion of
Chinese companies is very poor," Thapa said. "People will think twice to buy a
product with a Chinese stamp." Manoj Sharma, 37, a senior executive with a New
Delhi-based consultant, said he would not consider a GM-SAIC model when buying a
six- or seven-seat passenger vehicle. He said GM cheapened its image by offering
sales incentives such as a free 100,000-kilometre warranty. "Indians are an
intelligent target audience that not only looks at price, but also the quality
and the technology," Sharma said. The closer ties between GM and SAIC come as GM
aims to raise as much as US$10.6 billion in an initial public offering, two
people familiar with the plan said this month. SAIC chairman Hu Maoyuan said his
company may participate in the offering.
China Banks give out 587.7b yuan in new
loans in October - Banks on the mainland extended 587.7 billion yuan (HK$685.57
billion) in new loans denominated in yuan last month, which was an unwelcome
surprise to an economy grappling with rising inflation. Outstanding loans at the
end of October stood at 49.7 trillion yuan, climbing 19.1 per cent year on year,
according to the People's Bank of China (PBOC). Yuan-denominated incremental
loans last month were 334.7 billion yuan more than a year ago and higher than
the 500 billion yuan forecast by many economists. "The October loan and
inflation data explained why the central bank increased the required reserve
ratio, " Shen Jianguang, an economist with Mizuho Securities, said. The PBOC
yesterday asked banks to set aside an additional 0.5 per cent of deposits as
reserves, mopping up about 360 billion yuan of liquidity after the first
interest rate hike since the financial crisis and a temporary lift in the
reserve ratio last month. "More aggressive interest rate hikes are likely in the
weeks ahead. Tighter monetary policy and looser fiscal policy will be the policy
theme for next year," Shen said. The new loans made in the first 10 months
totalled 6.88 trillion yuan, leaving 621 billion yuan lendable for the next two
months under the country's target of 7.5 trillion yuan for the full year.
"Taking into account of seasonality, 300 billion yuan per month is enough for
the rest of the year, so we don't need to worry about a lending freeze," Lu
Ting, an economist with Bank of America Merrill Lynch, said. Many economists
have forecast China would lower the loan target to 7 trillion yuan for next year
to cool inflation, which hit a 25-month high of 4.4 per cent last month. The
growth of M2, a money supply measure which includes cash and all deposits,
quickened slightly to 19.3 per cent year on year in October from the 19 per cent
in September. Outstanding deposits rose 19.6 per cent year on year to 70.8
trillion yuan. The increase was 8.3 percentage points lower than a year ago. For
October, household deposits decreased by 700.3 billion yuan. Li Huiyong, an
analyst with Shenyin and Wanguo Securities, said: "High commodity prices and a
negative interest rate environment caused incremental [yuan] deposits to fall
last month. The money is expected to flow into the stock market and the housing
market." Trading was brisk in the stock market and the number of newly opened
stock transaction accounts increased substantially. Nearly 450,000 A-share
accounts were opened last week, the highest since November last year. Property
sales still topped expectations in October despite a month-on-month drop. Sales
across the nation totaled 507.6 billion yuan, down 7.7 per cent from September
but still up 27 per cent from a year ago.
Premier Wen attends opening
ceremony of Asian Games - Chinese Premier Wen Jiabao attends the opening
ceremony of the 16th Asian Games in Guangzhou, south China's Guangdong Province,
Nov. 12, 2010.
Chinese national flag hoisted during
Asiad opening ceremony - Guards of Honor of the PLA hoist the national flag of
the People's Republic of China during the opening ceremony of the 16th Asian
Games in Guangzhou Nov. 12, 2010.
Float parade during opening ceremony of
Asian Games - The float representing China makes parade along the Zhujiang(Pearl)
River during the opening ceremony of the 16th Asian Games in Guangzhou Nov. 12,
2010.
Delegations enter site during Asiad
opening ceremony - Delegations enter the site during the opening ceremony of the
16th Asian Games at the Haixinsha Island in Guangzhou, China, Nov. 12, 2010.
Delegations enter site during Asiad
opening ceremony - Delegations enter the site during the opening ceremony of the
16th Asian Games at the Haixinsha Island in Guangzhou, China, Nov. 12, 2010.
Art performance during Asiad opening
ceremony - Actors dance during the art performance of opening ceremony at the
16th Asian Games at the Haixinsha Island in Guangzhou, China, Nov. 12, 2010.
Fireworks displayed during opening
ceremony of Asian Games - Fireworks are displayed over the Guangzhou Tower
during the opening ceremony of the 16th Asian Games at the Haixinsha Island in
Guangzhou, China, Nov. 12, 2010.
More bus terminals will be smoke-free
zones from December 1 - Smoking will be banned in more bus terminals after an
extension to regulations comes into force on December 1. No-smoking zones will
be increased to cover 129 open-air and two covered public transport facilities,
according to the Tobacco Control Office. Smoking was banned in 48 covered public
transport areas from September last year. Workers will soon install no-smoking
signs and floor plans at the sites involved. A city-wide publicity campaign will
warn smokers not to light up in the areas. Dr Raymond Ho Lei-ming, who heads the
Tobacco Control Office, said white lines would border the areas to avoid
confusion. Smoke-free ambassadors would be stationed at the new zones for a
month to tell people in neighbourhoods about the new policy. Ho said up to HK$7
million was spent on the extension to no-smoking areas. The list of no-smoking
places and maps are available on the office's website. People can also read
copies at the office's resource centre and at the Land Registry. Some 140 people
were fined HK$1,500 each for smoking in 48 covered transport facilities in
September. A total of 5,800 fixed-penalty tickets were handed out in the first
nine months of the year to people smoking in no-smoking areas. They paid HK$8.7
million in fines. Of these penalties, 1,630 were handed out in game centres, 980
in shops and shopping malls, 520 in restaurants, 440 in markets, 320 in parks,
and 1,900 in other places such as stairways, car parks and public toilets. There
are more than 700,000 smokers in Hong Kong - fewer than half the number 20 years
ago. One in five men and one in 28 women smoke. The Tobacco Control Office is
looking at ways to encourage people to give up the habit, including having more
no-smoking zones, making shop owners responsible, and raising tobacco duty. Ho
said increasing the tobacco duty was the most effective method. "We would like
to see the cigarette duty raised next year."
US, China 'making progress' at
G20 - US President Barack Obama meets with President Hu Jintao on the sidelines
of the G20 summit in Seoul on Thursday. President Barack Obama said on Thursday
the United States and China were "making progress" in discussions on economic
issues, but made only a guarded reference to the divisive topic of Beijing's
currency. “As two of the world’s leading economies we have a special obligation
to deal with ensuring strong balance and sustained growth,” Obama said at the
start of a meeting with China’s President Hu Jintao on the sidelines of a G20
summit in Seoul. The United States says Beijing holds its yuan currency
artificially low against the US dollar and argues it should be allowed to rise
to aid US exports and jobs. Obama is pushing for specific commitments from other
G20 leaders at this summit to tackle global imbalances – shorthand for the
massive US trade deficit and equally large trade surpluses built up by countries
such as China and Germany. It was Obama’s seventh meeting with Hu, the most with
any foreign leader since the start of his presidency in January last year – a
record the White House says shows how highly Obama values their relationship.
“The US-China relationship, I think, has become stronger over the last several
years, as we’ve been discussing a whole range of not only bilateral issues but
world issues,” he said. Hu struck the same tone of co-operation in his remarks.
“The Chinese side stands ready to work with the US side to increase dialogue,
exchanges and cooperation so that we can move forward the China-US relationship
on a positive, co-operative and comprehensive track,” Hu said. he said the G20
would yield a “positive outcome”.
Chinese, Russian presidents meet in
Seoul on cooperation - Chinese President Hu and his Russian counterpart Medvedev
met Thursday to discuss the development of the China-Russia strategic
partnership of coordination.
Torch relay for Asian Games continues in
Guangzhou - Torchbearers run with the torch during the torch relay for the 16th
Asian Games in Guangzhou, south China's Guangdong Province, Nov. 11, 2010.
A different kind of family - Wu Youjian,
the first mother to openly support her gay son on Chinese television, in 2005 -
Wu Youjian, the first mother to openly support her gay son on Chinese
television, in 2005, and founder of Parents and Friends of Lesbians and Gays in
China, talks to participants during the recent gay festival, Shanghai Pride.
Shanghai Pride shines the light on friends and families of gays and lesbians.
Shi Yingying reports. Sixty-four-year-old Xu Dexiu and 49-year-old Mei (surname
only) were special guests at the country's second gay festival, Shanghai Pride.
They came on stage to express support for their gay sons. "I accept it, because
I love him," said Mei proudly in front of the lesbian, gay, bisexual,
transgender (LGBT) community, on the concluding day of this three-week event on
Nov 6. The Sichuan native came to Shanghai three years ago, to live with her
25-year-old son Wang Chen and his boyfriend Jerry Chen. Wang, who came out five
years ago, says: "Mom regards both of us as her sons. She calls us 'my boys'."
The two mothers were joined by 13 other family members, friends and colleagues
of gays and lesbians for a special program of Shanghai Pride, called Family Day.
"I wish more people could have come here, not only because we want public
attention, but also because we gays take traditional family values more
seriously than most people assume," says Tang Zhicheng, organizer of Family Day.
"Though we only had 15 people on stage this time, I believe next year we will
have more," he says. His cousin Jacky Tang still remembers how surprised he was
when he came to know about Tang Zhicheng's sexual orientation, in 1989. "My
first reaction was to convince him that he could turn straight, but after I saw
the pain he was going through and the fact that he had talked it through with
his psychiatrist, I was on his side," he says. He not only showed his support by
appearing at Shanghai Pride with his wife, but also helped talk to Tang's
parents. "Different generations have different thoughts about this sensitive
issue. For the older generation, it is more like being forced into acceptance,
but those like my 29-year-old wife, have no problem with it." Talking about his
impressions of Shanghai Pride as a straight man, Jacky says he did not expect
the gathering to be so grand. The 2010 edition, that ran for three times longer
than 2009's inaugural one, included parties, panel discussions, art exhibitions
and a gay film festival. "I thought it would be a private party among the LGBT
community. If had known (how grand it would be), I would have come earlier." All
of Family Day's participants say they came to know about it from the online
group Out in Shanghai, founded recently by Tang. Out in Shanghai, he says,
discusses topics such as "how to tell my parents I'm gay or lesbian" and "how to
maintain a long-lasting relationship". "I want to emphasize that being gay means
more than looking for liberation," he says. "China is the most family-oriented
nation in the world, and we're part of it." Kenneth Tan, one of Shanghai Pride's
organizers, says, "There is a huge desire for something more in the gay
community. The event is about getting the community to come out as a whole." The
gay film festival was a highlight of the second annual festival. "It was
unfortunate that our film festival was canceled last year, but I'm happy that
eight of the 10 films shown this year were made by Chinese and talk about gay
and lesbian lives," says curator Fan Popo, also head of Beijing LGBT Center. His
own documentary Chinese Closet focuses on 10 gays and lesbians who came out and
explored their family ties. "It was never easy for us," Fan says. "Most often in
China, when we come out, it means our parents have to go into the closet - to
hide the identities of their sons and daughters from friends and family."
Minimum wage law to help 310,000,
but job losses forecast - "Sister Kwai", who washes dishes at a restaurant in
Causeway Bay, may be affected by the start of a minimum wage level next year.
Hong Kong is set for the first time to have a legal wage floor of HK$28 an hour.
The new law is expected to benefit more than 310,000 low-income workers. But
this came as a prominent economist and former government adviser warned that up
to 100,000 workers could lose their jobs when the law was implemented. The
government said yesterday the Executive Council had adopted the minimum wage
recommendation made by the Provisional Minimum Wage Commission. The commission
has acknowledged small and medium-sized enterprises - particularly those whose
margins depend on low wages - will come under greater financial pressure. But
officials insisted the law would only have a "relatively mild" effect on labour
supply and inflation. Describing the law as a milestone, Chief Executive Donald
Tsang Yam-kuen said it would offer better protection for low-income workers. But
he admitted it would have an impact on the labour market and business
environment. "The statutory minimum wage is new to Hong Kong," Tsang said. "I
hope that various sectors will join hands in making the necessary preparation
for the implementation of the new legislation in the interest of Hong Kong and
for the better protection of low-income workers," Tsang said. The minimum wage
will come into effect on May 1.
Honored Yam's lonely toil in HK's science
'battlefield' - Professor Vivian Yam Wing-wah, who has been named as one of the
five winners in the L'Oreal-Unesco Women in Science awards - A University of
Hong Kong professor, named one of five winners in the annual L'Oreal-Unesco
Women in Science awards, says doing research in Hong Kong is a lonely business.
Chemistry professor Vivian Yam Wing-wah was honoured for her work on
light-emitting materials and innovative ways of capturing solar energy. But for
all the glamour coming with the recognition of her efforts, she said working in
science was a lonely pursuit in Hong Kong. "It's like going to the battlefield
on your own," she said. "Ordinary people in Hong Kong, a financial hub, think
you are weird doing scientific research." "I hope the award can let the general
public understand more about scientific research and that a more supportive
atmosphere could be nurtured." She is the second local woman scientist to be
awarded the honour. Yam said the prize validated the achievements of women in
scientific research. "There's not much difference between men and women doing
scientific work. "We don't do scientific research to win prizes, but I was happy
that my work got recognised." The annual awards are for scientific achievement
by woman researchers from five continents. Yam was picked as the recipient for
the Asia-Pacific region. Each laureate receives US$100,000 in prize money. Born
and educated in Hong Kong, Yam became a professor at the University of Hong Kong
in 1997 and was promoted to chair professor in 1999. She was the head of the
university's chemistry department from 2000 to 2005. Aged 38 in 2001, she became
the youngest person to be appointed an academician of the Chinese Academy of
Sciences. She said it may take 10 years before the fruits of her research could
be widely applied in public. But she hoped her work could help make a "quantum
leap" in the field of sustainable energy development. "The solar dyes I am
exploring might absorb the same amount of solar power [as current materials],
but they can convert power into electricity in a more effective way." Her work
on organic light-emitting diodes (OLEDs), currently widely used in TV screens,
also has the potential to drastically reduce energy consumption. If OLEDs could
be made to emit white light, they could deliver the same brightness as a normal
bulb using much less energy, Yam said. "An eight-watt white OLED can emit the
same intensity of light as a 60-watt tungsten incandescent light." She appealed
to the government to follow the examples of Japan and Korea in providing
long-term funding to researchers who are well recognised in their fields. This
would spare them the hassle of writing detailed proposals to compete for funding
for every project they do. She said: "Writing reports and proposals can be
time-consuming. "If a researcher's work is already well recognised, there should
be exceptional treatment for them so they don't have to spend too much time on
administrative work." The Women in Science awards presentation ceremony will be
held in Paris in March. The first local woman scientist to win the award in 2004
was biochemistry professor Nancy Ip Yuk-yu, co-director of the Molecular Neuro-
science Centre of the Hong Kong University of Science and Technology.
The European Commission has fined Cathay
Pacific Airways (SEHK: 0293) €57.12 million (HK$618 million) for colluding in
price fixing on cargo surcharges to and from Europe. The airline is one of 11
fined a total of €799 million yesterday by the European Union regulator. "We
will make full provision for the amount as per the accounting standards within
this year, but without accepting them," a spokesman for Cathay said. The
provision would imply a 4.8 per cent drop in Cathay's net profit this year, a
Goldman Sachs report said yesterday. The carrier did not make similar provisions
on previous occasions when it was involved in antitrust probes in various
jurisdictions, including Australia, New Zealand and Europe. Cathay was still
reviewing the commission ruling and evaluating its options with its legal
advisers, it said yesterday. "I would like to stress that we have always
endeavoured to comply fully with the legal requirements in every jurisdiction in
which we operate and that we are firm in our support of full and fair
competition among all air carriers," Tony Tyler, chief executive of Cathay, said
yesterday. As validation of Cathay's commitment to fair competition, he cited
the competition compliance office that Cathay had set up. The office provided
training and support necessary for the airline to comply with competition laws
around the world. Lufthansa, which was the first carrier to turn itself in to
the regulator, and its subsidiary Swiss International Airlines had not been
fined, the EU said on its website. "Lufthansa received full immunity under the
Commission Leniency Programme as it brought the cartel to the Commission's
attention and provided valuable information." Ten airlines managed to get the
fines reduced. Cathay Pacific, Air France-KLM, Lan Chile and SAS were granted a
20 per cent discount on their fines because of their co-operation with the
commission. Singapore Airlines, the only airline to get no discount on its €74.8
million fine, said it was disappointed with the decision and "strongly contests"
the allegation it was involved in fixing prices. The carrier said it was likely
to appeal against the decision. The fine, if realised, would shave 9.5 per cent
off Singapore Airlines' net profit this year, the Goldman Sachs report said. Air
France and its subsidiary KLM, which were fined €310 million in total said they
would appeal, too, as will Lan Chile and SAS. Five carriers applied for a
discount, claiming inability to pay the fine, the regulator said without
disclosing the names. But none of the applications met the conditions for a
reduction. Qantas, which was fined €8.88 million, said it acknowledged improper
conduct by its freight unit. The commission's ruling comes on the heels of jail
sentences for some airline executives following a global antitrust crackdown.
Keith Packer, a former cargo manager with British Airways, was sentenced to a
jail term of eight months after pleading guilty to US charges of collusion with
rivals to inflate fuel surcharges in 2008. The same year the US government fined
18 airlines at least US$1.6 billion and filed criminal charges against 14
executives for price fixing. Cathay Pacific was fined US$60 million by the US
government. The commission ruling stated the carriers concerned had infringed
its competition laws by collectively setting cargo surcharges from December 1999
to February 2006 in Europe. It said that, among themselves, the airlines reached
a consensus on fuel surcharges and decided to rope in other airfreight operators
to ensure uniform surcharges on all shipments to and from Europe. The price
fixing was extended to security surcharges later on. To ensure that all "cartel
members" would introduce the surcharges in full, the carriers found guilty by
the commission allegedly agreed to refuse to pay a commission on surcharges to
their clients, freight forwarders and the middlemen between exporters and
airlines. "By refusing to pay a commission, the airlines ensured surcharges did
not become subject to competition by way of discounts to customers," the
regulator said. Cathay shares dropped 0.45 per cent to HK$22 yesterday.
Treat for birdwatchers as four rare visitors touch down at Mai Po - Two species
of Bean Goose make a rare appearance in Hong Kong at the Mai Po Nature Reserve.
It is hoped they may stay for the winter. A cold spell from the north has
brought new visitors to Mai Po Nature Reserve - a small flock of migratory wild
bean geese from Siberia. It is the first time so many bean geese have flown into
the city. Two of them are taiga bean geese, a species new to Hong Kong. The
other two are tundra bean geese, a species which has rarely been seen in wetland
reserve in the northwest New Territories. The discovery was described by the WWF
Hong Kong, which manages the reserve, as causing a buzz in the local birding
community. The geese are now believed to be feeding and roosting daily at a
newly refurbished freshwater pond inside the reserve, after they were first
spotted flying over the reserve on October 30. "The pond contains flooded
grassland, a new habitat type for Mai Po, which the geese find very attractive.
There is a good chance that they may stay here for the winter," said Bena Smith,
the reserve's manager. Smith believes that the cooler weather at the end of last
month brought the rare visitors to Hong Kong. In the past five years there have
only been three bean goose sightings in Deep Bay. "The recent trend of new water
bird species being recorded in the Deep Bay wetlands and increasing waterbird
numbers is great news for local birdwatchers and conservationists," Smith said.
"However, to ensure Hong Kong's future generations have the opportunity to
experience and enjoy the wetlands and the waterbirds like we do today, it is
important to protect the health and integrity of the Deep Bay ecosystem."
Shenzhen's Qianhai - partner or rival for Hong Kong? On a dusty
15-square-kilometre construction site in Shekou , Shenzhen, the foundations have
been laid for what has been billed to become "the Central of Shenzhen" or "the
Manhattan of the Pearl River Delta". Shenzhen authorities have loftier ambitions
than building high-rises and metro lines in the district. Numerous co-operative
ventures with Hong Kong are in the pipeline that could see it become a rival
financial centre in the Pearl River Delta. Chief Secretary Henry Tang Ying-yen
in July last year was among the first to say Qianhai had potential to be the
"Central of Shenzhen". A month later, Chief Executive Donald Tsang Yam-kuen
sought to ease concerns that development of Qianhai - with financial services to
be one of the pillar industries - would pose a threat to Hong Kong by saying:
"Even the Qianhai reclamation work has not been completed yet." A year on, the
reclamation and site formation are done. Workers are busy on projects such as
the Qianhai metro station with a property development above it. The extension of
Shenzhen's first metro line, with a stop in Qianhai, is expected to start
operation next month. According to its blueprint, the municipal government will
invest 40 billion yuan (HK$46.5 billion) in the next three years to develop
service industries such as finance, logistics, professional services,
communications and the media as well as hi-tech industry. Its confidence in the
development of Qianhai, one of the last plots of undeveloped land in the special
economic zone, is built on the status granted to the area by the central
government. Shenzhen Mayor Xu Qin has said the gross domestic product of Qianhai
will reach 150 billion yuan in 2020, more than a third of the present figure for
the entire city. The National Development and Reform Commission issued a
circular two weeks ago saying Qianhai would have the same power to manage its
economy as cities "specially designated in the state plan", meaning it will have
the economic autonomy of a province. Currently there are five such mainland
cities - Dalian , Qingdao , Shenzhen, Ningbo and Xiamen. Dr Fang Zhou, assistant
chief research officer at the One Country Two Systems Research Institute in Hong
Kong, said Qianhai's special status would put Shenzhen in a better position to
seek preferential treatment for it in areas such as approval for foreign
investment and fiscal policies. "Shenzhen authorities' strategy is to team up
with Hong Kong to fight for favours for Qianhai," he said. The State Council has
also designated Qianhai as a "Hong Kong-Shenzhen modern service industries
co-operation zone". The governments of Hong Kong and Shenzhen are discussing how
to capitalise on Hong Kong's strength in financial services, trade and logistics
to pave the way for development of service industries in the zone. Beneath the
hype lies the fact that Qianhai will be used as a testing ground for initiatives
that have not been tried in other mainland cities. Options being considered by
Shenzhen officials and academics for Qianhai include allowing Hong Kong's
offshore financial institutions and arbitration institutions to set up branches
in Qianhai, a pilot scheme for free convertibility of the yuan, and introduction
of salaries and profits taxes much lower than elsewhere on the mainland. Fang,
who has exchanged views with Shenzhen officials on development of Qianhai, said
Shenzhen authorities were seeking consent from central government departments to
cut profits tax for companies investing in Qianhai to about 20 cent, compared to
25 per cent for firms elsewhere on the mainland. Hong Kong's profits tax is 16.5
per cent. "The Shenzhen government also hopes to cut the rate of salaries tax to
about 20 per cent to raise its appeal to talent from Hong Kong and overseas," he
said. The standard rate of salary tax in Hong Kong is 15 per cent. Fang said
Shenzhen's expectation of the development of Qianhai went beyond providing
support services, such as data centres for financial institutions, for Hong
Kong's service industries. "Instead, Shenzhen wants to woo top talent in service
industries from Hong Kong to develop high-end service industries in Qianhai. In
this sense, Qianhai will compete with Hong Kong in the development of service
industries," he said. The planned 50-kilometre, 20-minute rail link between Hong
Kong and Shenzhen airports will have a stop in Qianhai. The Hong Kong
International Arbitration Centre said it would be interested in expanding
services to the mainland. An official with Shenzhen's Urban Planning, Land and
Resources Commission, which oversees development of Qianhai, said it was
pressing ahead with preparatory work. Guo Wanda, vice-president of the
Shenzhen-based China Development Institute, said there was "plenty of room for
imagination" for the development of Qianhai. "I believe Qianhai will enjoy
greater flexibility in areas such as the tax system and flow of currency," he
said. The Qianhai Management Authority, established in April, was modelled on
statutory bodies in Hong Kong that enjoyed great flexibility and autonomy, Guo
said. "It would be a good idea to invite Hong Kong officials or professionals to
serve as members," he said. Tsang said in his policy address his government
would work with Shenzhen to encourage the local trades to seize opportunities
arising from Qianhai's development. A spokesman for the Constitutional and
Mainland Affairs Bureau said the Shenzhen authorities were responsible for the
development and management of Qianhai, while Hong Kong would serve as an
adviser. National People's Congress Hong Kong deputy Priscilla Lau Pui-king said
Qianhai had a long way to go to become a mature financial centre. Fang agreed:
"Given Hong Kong's advantage in the rule of law and free flow of capital, it is
difficult for Qianhai to emulate Hong Kong in the development of service
industries."
Racing in the territory could soon
become isolated from the rest of the world if the government does not come to
its aid, Hong Kong Jockey Club chief executive Winfried Engelbrecht-Bresges
warns. Writing in his bi-weekly blog, Engelbrecht-Bresges said although local
racing has reached world-class levels, the club now finds itself in a growing
globalized and competitive market and cannot sit back on past achievements. He
said a few external factors are preventing Hong Kong from keeping pace with the
rest of the world, including the aging trend of its core customer base, the lack
of room for expanding facilities and the commingling of bets. Another challenge
is to make racing more sports-driven than just money-driven in the local
mindset. To this end, the simulcast programs have been successful. However,
simulcasting and world recognition are a two-way street, he said. "We cannot
expect the world to come to Hong Kong's door without reciprocal arrangements. To
make that possible, we need the government's understanding and support."
Games city's security forces on
high alert - One look at the busiest subway stations in Guangzhou will tell the
story: the Asian Games are here. Intense-looking armed police, standing
motionless on 20cm-tall platforms, guard every exit of Gongyuanqian station
which leads to Beijing Road, the city's busiest shopping area. In Xiaobei
station, populated mostly by African traders, six male and two female unarmed
police cadets patrol tirelessly. With the 16th Asian Games starting tomorrow,
Guangzhou's security forces are on high alert to ensure a safe and smooth
opening. As organisers of the world's largest non-Olympic multiple-sports event
in terms of the number of participating countries, Guangzhou faced a management
and logistical challenge, while the rest of the world watched. This year, there
will be 11,643 athletes from 45 countries participating in 42 sports and a total
of 590,000 volunteers for the Asian Games and Para Asian Games. About 10,000
journalists from around the world will cover the sporting spectacle. Fifty-three
venues are dotted across the Pearl River Delta. Although most are located in
Guangzhou city's downtown area - Panyu, Huangpu and Huadu districts, there are
others in Foshan , Dongguan and Shanwei , and even county-level cities such as
Zengcheng and Conghua. A superintendent of the Guangzhou Public Security
Bureau's Baiyun branch said police officers had been working hard under heavy
pressure to maintain social stability in the run-up to the Games. "We are too
busy to die," he said, declining to be identified. "It hurts so much even just
to take a breath after working all those extra shifts and running around town."
He said as well as patrolling streets more often and running more vehicle
checks, senior police officers were also called in for emergency meetings every
other day, on a range of topics, from formulating strategy to preventing
protests and riots. Confidential communiques from the provincial Public Security
Department and the Ministry of Public Security in Beijing, which normally
arrived once a week, were now coming in every day, providing information about
possible demonstrations, social unrest and dissidents' latest moves. He said
officers would receive warnings or face dismissal should they allow any severe
crimes, riots, protests or fire incidents to occur in their jurisdictions. "We
must monitor every move of highly targeted people to nip any potential unrest in
the bud," he said.
Authorities are working round the
clock to ensure tight security. At a checkpoint on a highway leading to downtown
Guangzhou, a dog sniffs around a vehicle.
Hu decries blame game ahead of Seoul
summit - President Hu Jintao called on other countries to "face their own
problems" and not cast blame as he prepares for a contentious Group of 20 summit
in Seoul, state media said yesterday. Hu (pictured) also defended China's
controversial controls on its currency, the yuan, and warned of a grim world
economic situation. "Countries should shoulder the responsibility and the
courage to face their own problems, adhere to international co-operation and
properly handle differences," Hu said. "China will try to run its own affairs
and not blame its problems on others." Preparatory negotiations for the two-day
G20 summit in Seoul grew heated yesterday as deputy finance ministers battled
over how to redress growth imbalances arising from China's dramatic expansion
and America's deficit woes. Among the key criticisms of China are accusations it
keeps the yuan's value artificially low to make its exports cheaper on world
markets, amassing huge trade surpluses at the expense of other nations. "China,
in the face of considerable pressure, kept its [yuan] exchange rate basically
stable," Hu said, noting "gradual steady progress" in the reform of its exchange
rate systems. Beijing pledged in June to allow the yuan to trade more flexibly
but it has increased only slightly in value. Hu, speaking in a Xinhua interview,
said "the world economic situation is still complicated and grim" - language of
the sort that Chinese leaders often use to justify resisting pressure for any
drastic policy changes. Officials were meeting in Seoul yesterday to thrash out
a summit communique to be adopted by leaders including Hu and US President
Barack Obama tomorrow. Washington has attracted stinging criticism for pumping
an extra US$600 billion into the fragile American economy. Critics, including
top Chinese officials, say this amounts to an effective dollar devaluation.
London eyes a slice of offshore yuan
trade - London is set to become an offshore yuan trading centre, according to
the United Kingdom's Chancellor of the Exchequer. In a speech in Hong Kong
yesterday, Chancellor George Osborne said London "as a partner of Hong Kong, is
developing new businesses, including the internationalization of the renminbi".
He did not give further details, but added: "This is something I definitely want
London to be part of." Traders questioned Osborne's comments, particularly
because the mainland currency is tightly controlled by the government in
Beijing, which does not allow it to flow freely around the world. David Buick, a
London-based partner with international brokerage BGC Partners, called Osborne's
comments "wonderful political rhetoric" designed to draw attention to London's
long-standing status as a leading global foreign exchange centre. "The
practicalities don't make it possible," Buick said. "I am not critical of the
concept. It's a good idea. But we need the yuan to become a reserve currency -
in other words, one that is freely exchangeable." Beijing has allowed Hong Kong
to build up a very small renminbi deposit base, currently standing at 150
billion yuan, so banks here can experiment with yuan trading and yuan-denominated
investment products. The People's Bank of China supplies Hong Kong-based banks
with yuan, using the Bank of China's local branch as a conduit. But London has
no yuan deposit base. Banks in the UK capital would have to source the Chinese
currency from their Hong Kong offices. And the limited amount of yuan the
mainland has released outside its borders would make trading in yuan unappealing
to big institutions, said a yuan expert who asked not to be named because he did
not want to seen as criticising the UK government. London traders buy and sell
an average of US$1.9 trillion of foreign currency every day, according to the
Bank for International Settlements' tri-annual survey of the market, which was
published in September and only cited data for April 2010. At the same Hong Kong
event, Osborne, who was visiting the territory for the first time, ducked
questions about the currency war between the United States and China. Washington
has accused Beijing of keeping the yuan artificially low to prop up mainland
exporters, making it difficult for US manufacturers to compete in world trade.
"I have avoided commenting on the level of currencies," Osborne said. Instead,
he insisted, the debate should be broader, focusing on the "real issue, which is
economic imbalances" between countries running trade surpluses and those, like
Britain and the US, that are in deficit. British Prime Minister David Cameron
has spent the past few days in Beijing, ahead of the G20 meeting in Seoul. As
well as calling for deeper trade links between Britain and China, the UK premier
has urged Beijing to improve human rights, the rule of law and press freedom.
Osborne yesterday said the British government could criticise China and call for
strengthened economic ties at the same time. "There is the political debate, and
there is the financial debate," he said. He said Britain wanted to double its
exports to China over five years, to £100 billion (HK$1.24 trillion).
China's Guangzhou ready for 16th Asian
Games - Picture taken on Nov. 10, 2010 shows the aerial view of Guangzhou, south
China's Guangdong Province. The 16th Asian Games would run in Guangzhou from
Nov. 12.
More than 30,000 people
yesterday flocked to view hi-tech wizardry giving a snapshot of what it was like
900 years ago in a bustling northern Song dynasty capital, on the first day of
an exhibition at AsiaWorld-Expo. A packed AsiaWorld-Expo on day one of the
exhibition of an animation of the painting Riverside Scene at Qingming Festival.
One in seven Hongkongers are expected to see the show recreating life in the
northern Song dynasty 900 years ago.
If
you think Christmas appears to be starting earlier every year, you are not
alone. Some shopping malls in Tsim Sha Tsui will light up their Christmas
decorations today - two weeks earlier than last year and six weeks before
December 25 - in a bid to cash in on what they believe will be a bumper festive
season as the economy continues to recover. The buoyant mood is also reflected
in the amount of money shops and malls are prepared to spend on decorations and
promotions. The MTR Corporation (SEHK: 0066) is investing HK$25 million on
luring Christmas shoppers to its upscale shopping arcade Elements - the
highest-ever budget for a December promotion and up by 25 per cent from HK$20
million a year ago. The company budgeted another HK$25 million for festive
promotions at its 11 other malls, up 15 per cent compared with last winter, and
expects visitor arrivals to grow by one-tenth. "This is because the economy is
doing well and therefore we want to lure more people to spend," the company's
chief retail marketing manager, Cindy Woo Lai-man, said. Part of the budget
would be used to promote new tenants, which comprise about 40 per cent of the
tenants at Telford Plaza in Kowloon Bay, and to lure consumers to start shopping
for Christmas this month. "Faced with keen competition from other malls, we want
to create a pre-Christmas shopping period by dishing out gift rewards and
special offers this month," Woo said. Rival Sun Hung Kai Properties (SEHK: 0016)
is also going into record-breaking territory. The developer forecasts spending
of HK$17 million on seasonal promotions at its apm mall, up about 10 per cent
year-on-year. This excludes the cost of organising up to 80 tours which will
bring 4,000 mainlanders from Guangzhou to the mall from early next month.
"Competition between shopping malls in Hong Kong is stiff," said Maureen Fung
Sau-yim, general manager of Sun Hung Kai's leasing department. "Apart from
wooing local young people, we want to expand the Christmas shopping habit to
mainlanders," Fung said. "For example in Shanghai, people usually shop on
December 24 and 25 only. Those from southern China have been influenced by the
shopping tradition in Hong Kong and start their Christmas spree earlier." She
forecast per capita spending of mainland visitors would range from HK$3,800 to
HK$4,500 per person. Total sales in the mall next month are expected to surge at
least 15 per cent to over HK$500 million. Fung expected some Hongkongers might
stay and spend in the city for the holiday as the appreciation of foreign
currencies meant it was more expensive to travel overseas this year. The
developer will also increase its Christmas investment by 20 per cent at another
11 malls to a record high of HK$19 million. Other malls, including Times Square
and Langham Place, are also upbeat about shoppers in the coming month. Vivian
Leung Wai-mun, general manager of Eagle Property Management, said the company
was confident that its Langham Place would fetch a double-digit growth in sales
during Christmas, thanks to the robust economy in Hong Kong and on the mainland.
Hong Kong ICAC warns schools of the pitfalls of graft could face 7 years prison
and HK$500,000 fines - The ICAC issued new guidelines to principals and
teachers, warning them to steer clear of accepting frequent or lavish
entertainment from people who do business with their schools. The Corruption
Prevention Department of the Independent Commission Against Commission yesterday
issued a Best Practice Checklist on Governance and Control in Schools to 1,000
primary and secondary schools in the city. It urges schools to strengthen their
administrative procedures and increase transparency in nine areas, especially in
procurement and student admissions. In recent years there have been instances of
chaotic management and suspected corruption. In one case the principal of a
primary school in Choi Hung engaged a decorator to work in his flat for free in
exchange for renovation contracts at the school. In another, a school in Yau
Tong was investigated by the ICAC for outsourcing services to a company chaired
by its supervisor. Raymond Ng Kwok-ming, assistant director of the anti-graft
body's corruption prevention department, said the guidelines were in response to
"mounting public concerns about school administration". Corruption complaints in
the education sector have steadily increased, from 67 cases in 2008, to 95 in
2009, and the 83 cases in the first nine months this year. "Good management can
help eliminate the chance of corruption happening in schools," Ng said. The new
guidelines recommend best practices for school in governance, procurement, staff
administration such as promotion arrangement, student admission and accepting
donation and sponsorship. Hong Kong parents will go to great lengths to get
their children into a sought-after kindergarten or elite school. Recently, a
Kowloon Tong kindergarten provided fee-paying religious conversion courses to
enhance children's chances of entering Catholic-affiliated elite primary
schools, a scheme that was scrapped after strong criticism. The new ICAC
guidelines included recommendations on student admission, to ensure that the
admission process is fair and transparent to avoid favouritism or abuse. Dr
Anissa Chan Wong Lai-kuen, a member of the corruption prevention advisory
committee and principal of St Paul Co-educational College, said some schools had
started to set up an admission committee involving more staff, about 20 school
management and teachers for selecting new students. Schools are also urged to
make their finances transparent, along with any donations received. Lo Sai-kwong,
president of Eastern District School Liaison Committee, said the Education
Bureau also provides guidelines on school management. "Regular inspections can
also help to eliminate corruption in schools," Lo said. School principals or
teachers who breach bribery laws can face a fine of up to HK$500,000 and seven
years in prison.
Liver donor Simon Hui Sai-man has called on the public to stop calling him a
hero, saying he's just a regular guy. The 40-year-old made the plea as he left
Queen Mary Hospital less than a week after donating part of his liver to save a
dying colleague, Yuen Wai-cheung. That came during 13 hours of surgical
procedures on Thursday. "I'm just a normal citizen in this issue," Hui said as
he headed home. "I don't want to be portrayed as a hero." However the airport
customs inspector does want a role in raising awareness of the importance of
organ donation. "I'll return to the hospital for a checkup and will recover
quickly," Hui said as he left the hospital with family members. "I'll soon be
serving members of the public again after I have recovered." But he will take
advice from his doctor and the Customs and Excise Department on just when to
return to work. On that, his doctor, Lo Chung-mau, said Hui is making good
progress. Meanwhile, transplant recipient Yuen remained in intensive care with a
slight fever. Yuen, 39, was injured during an anti-smuggling operation in Tseung
Kwan O on October 28, and his liver was close to failing completely. Lo said
Yuen may have been infected by the tubes used in dialysis, and so the procedure
was suspended. He had been undergoing dialysis to restore his kidneys. Lo said
Yuen may need to have more antibiotics. However he seemed calmer yesterday. Lo
revealed on Monday that the life-and-death experience had left Yuen fearful that
he was in the underworld. "He can now tell he's in Queen Mary Hospital and knows
he is injured," Lo said. "He seems to believe he's alive now."
Timberland plans Asia-Pacific HQ and
e-commerce on mainland - Jeffrey Swartz, Timberland's president and chief
executive, shows off some of his products. The Timberland Company, a leading
global designer and vendor of outdoor shoes and clothing, will soon establish an
e-commerce presence on the mainland amid efforts to double the number of its
domestic retail outlets.
Cameron seals over US$1b in trade deals - Rolls-Royce to supply jet engines for
16 planes - British Prime Minister David Cameron (second right) and cabinet
ministers share a toast with Premier Wen Jiabao during a signing ceremony at the
Great Hall of the People. Visiting British Prime Minister David Cameron and
Premier Wen Jiabao yesterday oversaw trade deals worth more than US$1 billion.
Cameron - travelling with Britain's largest ever delegation of bosses and
ministers - wanted to focus on doubling trade with the world's second largest
economy and taking their trade relations "to a new level". By far the biggest
deal announced was worth US$1.2 billion between Rolls-Royce and China Eastern
Airlines (SEHK: 0670) under which the British group will provide jet engines to
power 16 Airbus A330 aircraft. Facing pressure to challenge mainland leaders on
rights, Cameron said he was not in favour of "lecturing and hectoring" Beijing.
Cameron and Wen had a "general discussion" on human rights, British officials
said. They emphasised that Wen had welcomed the two countries' discussions on
rights. China defended its human rights record, with Foreign Ministry spokesman
Hong Lei saying at a regular briefing that its citizens today "are enjoying more
extensive rights and freedoms. "This is a fact that is there for everyone to
see." Cameron is the first Western leader to visit China since jailed dissident
Liu Xiaobo was awarded the Nobel Peace Prize on October 8 - an honor hailed in
the West but condemned by Beijing as tantamount to "encouraging crime".
Countries including Britain have said they will not heed a Chinese call for
Western diplomats to steer clear of the Nobel ceremony next month. Cameron is
travelling with 43 bosses from major British companies and four government
ministers on his first official visit after taking power in May. He said in an
article for The Wall Street Journal that he expected to see "new contracts worth
billions of dollars" signed during his two days in Beijing, which come ahead of
the Group of 20 summit in Seoul starting tomorrow. His longer-term target is to
double the level of trade in goods and services between Britain and China by
2015, from last year's US$51.8 billion, though it is thought there has been no
specific discussion on targets with China. Cameron's government is searching for
new sources of economic growth after unveiling the deepest public sector
spending cuts in decades last month. His ministers are battling to tackle a
record deficit of £154.7 billion (HK$1.94 trillion). Earlier deals signed
include a £45 million, five-year agreement for British companies to export
breeding pigs to China and the construction of 50 new English-language schools
in China by British company Pearson. In a bid to highlight the opportunities for
British companies, Cameron's first visit of the two-day trip was to a
supermarket run by Tesco, the world's third-largest retailer, in south Beijing.
The British leader will meet President Hu Jintao and attend a business summit
today before heading to South Korea. He is also due to deliver a speech
insisting Britain retains considerable global influence despite its economic
woes, and constitutes an important trading partner for China. Wen visited
several European countries in September and October, conveying pledges to
strengthen trade and purchase Greek bonds. Cameron's visit comes on the heels of
Hu's trip to France and Portugal last week that resulted in US$20 billion worth
of contracts for French and European firms, but no similar pledge to buy
Portuguese debt. Cameron's visit is also the first by a British leader since
China executed a 53-year-old British man, Akmal Shaikh, for drug smuggling last
December, despite an official appeal on his behalf from London. The execution
drew condemnation from many British politicians and rights groups who argued
that Shaikh was delusional and had unwittingly been exploited by criminals.
British PM can trace his roots to
Shanghai - David Cameron meets social entrepreneurs in Beijing. When British
Prime Minister David Cameron stepped off the plane in Beijing yesterday, he was
taking a step closer to his family history. Cameron's great-grandfather Ewen
Allan Cameron was born in Shanghai in 1879, and his family has close links to
the early development of the region's international financial industry. His
great-great-grandfather - also called Ewen - was manager of the Hong Kong and
Shanghai Bank's branch in the city at the time, a post he filled until 1890,
when he became director of the bank's London office. He was knighted in 1901.
Ewen Cameron (1841-1908) had risen from humble origins as the son of a farmer
near Inverness, in the north of Scotland. He moved to Hong Kong with the Bank of
Hindustan in 1866, moving to HSBC (SEHK: 0005) (itself established just the
previous year) when his employers went into liquidation shortly afterwards.
Another of the British prime minister's great-great-grandfathers, Emile Levita
(1828-1909) - a German Jew and naturalised British citizen - served as director
of the Chartered Bank of India, Australia and China, which would eventually
become Standard Chartered. Cameron has frequently come under fire at home for
his privileged background, his family connections to the aristocracy and rumours
about the size of his personal wealth. Cameron is fifth cousin, twice removed,
to Queen Elizabeth, as his great-great-great-great-grandmother Elizabeth
FitzClarence (1801-1856) was one of 10 illegitimate children born to William IV
by his mistress, Irish actress Dorothea Jordan. The prime minister and his
cabinet have been sniped at by opponents as hailing from "the playing fields of
Eton", due to the number who attended elite boarding schools. Ahead of his
election in May, Cameron repeatedly needed to deny rumours his personal estate
was worth £30 million (HK$373.5 million) - prompting questions over how well he
could understand ordinary families' concerns in the face of dramatic public
spending cuts.
Royal Bank of Scotland chief regrets
sale of 4.3pc stake in Bank of China - Philip Hampton, chairman of the Royal
Bank of Scotland, says the purchase of a stake in BOC was meant to be a
long-term deal. The chairman of bailed-out British bank Royal Bank of Scotland
expressed regret at the lender's decision to sell its 4.3 per cent stake in Bank
of China, and said Beijing was "right to be disappointed" at the move. The
British high street lender's chairman, Philip Hampton, said of the BOC (SEHK:
3988) stake sale: "I think they [the Beijing government] were disappointed. And
they were right to be disappointed. It was supposed to be a long-term deal." RBS
bought its Bank of China stake in 2005, in a deal that its previous chief
executive, Fred Goodwin, predicted would allow the lender to sell its own
banking products to mainland consumers through its partner's vast branch
network. It sold the stake for £1.7 billion (HK$22.52 billion) last February,
after receiving the biggest bailout in banking history from the British
government. At the time, analysts widely predicted RBS had offended Beijing and
would be prevented from making more inroads into the mainland's lucrative
banking market. That fear was partly scotched yesterday when Hampton said that
RBS won central government approval to launch a securities joint venture with a
relatively small, provincial Chinese stockbroker. RBS has partnered with Guolian
Securities, which is based in Wuxi, a city northeast of Shanghai in Jiangsu
province. The deal will allow RBS to advise mainland companies on Shanghai
initial public offerings, and to help them issue bonds. Other foreign banks,
including Goldman Sachs, UBS, Deutsche Bank and Credit Suisse, have struck
similar deals with Beijing-based partners. But Lawrence Lam, RBS' head of
Greater China, claimed it was not a problem that the British lender's partner
was based in Wuxi. "There are still only a handful of foreign banks who have
these securities joint ventures in China," Lam said. Guolian ranks 38th on the
Securities Association of China's list of members. Ian Gordon, an analyst who
follows RBS at Exane BNP Paribas in London, said RBS' joint venture with Guolian
was: "In the context of the RBS group as a whole, not significant to the
investment case, though it could provide an incremental positive [for earnings]
much further down the road." Gordon said it was probably regrettable, in
hindsight, that RBS sold out of Bank of China. But, he added: "I imagine they
were under an awful lot of pressure to do this." RBS has been suffering
financially since it led a consortium to acquire Dutch lender ABN Amro for €72
billion (HK$777.33 billion) in August 2007, just before the credit crunch bit,
in what proved to be an incredibly overpriced deal. The bank is now 83 per cent
owned by the British government. It reported a £1.15 billion net loss for the
three months to September. RBS was not the only Western bank to offload shares
in Chinese lenders as the credit crunch bit. In December 2008, UBS also sold a
1.5 per cent stake in Bank of China, while Bank of America sold part of its
holding in China Construction Bank (SEHK: 0939).
Foreign currency reserve assets swell to US$267b - Hong Kong's official foreign
currency reserve assets rose to US$267 billion in October, up by US$900 million
on September, the Monetary Authority says. There were no unsettled forward
contracts at the end of October and end of September. Hong Kong is the world's
ninth-largest holder of foreign currency reserves based on the latest published
figures, after the Mainland, Japan, Russia, Taiwan, India and Korea. The total
foreign currency reserve assets of US$267 billion represent over nine times the
currency in circulation or 53% of Hong Kong dollar M3.
Gold futures on the COMEX Division of the New York Mercantile Exchange Monday
extended rally and managed to stand above psychological mark 1,400 U.S. dollars,
settling at all-time high 1403.2 dollars amid bullish sentiment.
Sino Land eyes up to US$534m
placement - Builder cashing in on bullish stock market - Sino Land chairman
Robert Ng Chee Siong is taking advantage of the market. Sino Land, the city's
seventh-largest developer by market value, is planning to raise as much as
US$534 million hot on the heels of a share placement by rival Hang Lung
Properties (SEHK: 0101) last week. The developer plans to raise between US$518
million and US$534 million in a share sale at a 6.5 to 9.2 per cent discount to
yesterday's closing price of HK$18.28, according to a term sheet. It is offering
242 million shares at HK$16.60 to HK$17.10 each. Goldman Sachs is the sole
bookrunner of the sale. The amount is far below Hang Lung Properties' HK$10.9
billion share placement but, according to one analyst, could be followed by a
later share sale. "They [the management of Sino Land] don't want to miss the
chance of financing in a bull market," the analyst said. "So they will make a
smaller placement first and then may follow up with another." He believes the
proceeds will be used for land acquisitions to take advantage of the
government's plan to release more sites for sale in the coming year. Sino Land
acquired two development sites and a serviced apartment project so far this
year. The sites could provide a total gross floor area of more than 1.6 million
square feet. Sino Land has a land bank of 42 million sq ft. The developer said
in its annual report that it would continue to selectively replenish its land
bank in Hong Kong and the mainland. Last Thursday, Hang Lung Group (SEHK: 0010)
unveiled its plans to raise up to HK$10.9 billion for its property arm Hang Lung
Properties through a share placement. It said it would sell about 293.9 million
shares in the developer and subscribe to an equal number of new ones. The
placement represents 7.05 per cent of its existing issued share capital. The
shares priced at a 6.8 to 8 per cent discount to the day's closing price. It was
offering 269.4 million shares at HK$37.08 to HK$37.56 each. The proceeds will be
earmarked for expansion on the mainland. The developer has six new commercial
projects, which require more than HK$30 billion in investment. The analyst
expects other developers such as Henderson Land Development (SEHK: 0012) and New
World Development to seek capital through equity placements. "More developers
will consider raising funds by share placement if the market is booming and
share prices reached their target," the analyst said. Sino Land shares dropped
1.72 per cent to close at HK$18.28 yesterday.
Arts Festival stock
keeps rising under steady hand - Charles Lee's business touch sees the show grow
- Arts Festival chairman Charles Lee says he wants to give young artists the
chance that he did not have. He asked for tickets, they gave him the show. Seven
years ago, Executive Council member Charles Lee Yeh-kwong asked his friends if
they had spare tickets to the Hong Kong Arts Festival. His friends, who happened
to be festival executive committee members, said they did not but suggested a
way that would in future save him the trouble of looking for tickets. "They
said, 'Why don't you join us? That way you'll know of the programmes in advance
and book the tickets in time'," Lee recalls. That was a fine idea, Lee thought,
and subsequently became the Hong Kong Arts Festival Society chairman. The
society, founded in 1973 and partly funded by the government, has been arranging
the biggest cultural event in the city for the past four decades. It brings
together local and international artists in more than 200 performances ranging
from ballets, opera and drama to jazz and orchestra. Lee admits his own
inclination to arts is limited, coming as he does from the cut-and-dried world
of business.
Tears of happiness for chance to be donor -
Hong Kong Customs inspector tells of 'indescribable' joy - Simon Hui appears
before the media at Queen Mary Hospital yesterday to speak of his decision to
donate part of his liver to save a fellow customs officer. Customs inspector
Simon Hui Sai-man has spoken of his "indescribable happiness" after donating
part of his liver to save the life of a critically injured colleague. Hui wept
yesterday as he spoke publicly for the first time since the operation four days
ago in which part of his organ was implanted in fellow officer Yuen Wai-cheung,
who had been injured in the line of duty. "It is an amazing feeling when you see
a person's life continue because of you," he said. "The happiness is
indescribable." Hui, whose swift recovery after such a serious operation has
astonished doctors, said he had been to see Yuen - whom he had not met before
the surgery - and had agreed to meet later for a game of chess. "We had a simple
conversation; Yuen thanked me and I cried as it was a touching moment," he said.
Meanwhile, doctors said Yuen, who was in a coma before the operation, was still
disorientated and had trouble believing he was alive. "Sometimes he thinks he is
already dead and in hell and calls me or other medical staff Emperor of the
Underworld," Professor Lo Chung-mau, head of the University of Hong Kong's liver
transplant team, said. This was normal in people who had suffered such trauma
and could last for days to two weeks. "We keep talking with him and repeatedly
reminding him that he is alive in a hospital in Hong Kong," Lo said.
Commissioner of Customs Richard Yuen Ming-fai, who met Yuen and Hui yesterday,
said Yuen could remember a lot of things, such as the fact he was a customs
officer and had been invited to participate in the customs chess competition in
January. "I wished him to get well soon and to practise his chess skills during
his recovery," the commissioner said. Hui said Yuen, whose liver was damaged
when he fell against a fence while chasing a suspected cigarette smuggler, told
him he wanted to recover as soon as possible. "I told him to be patient," Hui
said. "We made a deal for a coming chess game." Commissioner Yuen said doctors
had been astonished by the speed of Hui's recovery. "He opened his eyes the
first day after the operation, got out of bed by himself on the second day,
walked around on the third day, and asked to be discharged on the fourth day,"
the commissioner said. Hui attributed his recovery to his healthy lifestyle. He
is a vegetarian who exercises regularly and does not drink nor smoke. Lo has
said he could be discharged as early as today. "I really hope the public will
understand the importance of their health and spend more time with their loved
ones," Hui said. Hui, who made a split-second decision to make the donation
after hearing an appeal, called for more people to donate organs after their
death. "I hope my experience can deliver a positive message that we can help
many people around us."
Scientists have turned the conventional idea of producing a vaccine on its head
in their fight against Aids, a foremost researcher in the field said yesterday
in Hong Kong. Instead of using a vaccine to induce the immune system to produce
antibodies, Chinese-American Aids researcher David Ho Ta-yi said his team and
other scientists are now trying to produce antibodies in the laboratory then
inject them back into people. He said the treatment is still years away, but is
more promising than trying to develop a vaccine. No effective vaccine against
Aids has been found after 20 years of research, said Ho, who was speaking on the
sidelines of a conference on public health and preventive medicine yesterday.
The director of the Aaron Diamond AIDS Research Centre in the US called the new
method a "substitute for vaccine". "What we are now talking about is a passive
approach," he said "Instead of asking the body to make antibodies, we make the
antibodies outside the body and give them to people, so hopefully the antibodies
would stay around to protect them." Ho hopes the vaccine-substitute will be
ready for human testing in the next few years. However, he said the method's
effectiveness may be uncertain because the level of the ready-made antibodies
could lower over time. As a result, people may need new injections from time to
time. "The vaccine is far away too. Despite some 20 years of research, we don't
have one and I see the problem as too enormous to have any kind soon, that is
why I talk about a substitute for the vaccine instead of using a vaccine to
actively induce the body to make antibodies." Dennis Lo Yuk-ming, chemical
pathology professor of Chinese University, said he believed the
vaccine-substitute idea was not new. Lo said the idea was similar to "passive
immunisation'', where pre-made antibodies are injected into people to provide
instant protection against diseases. An example is feeding breast milk to
infants, which he described as a natural passive immunization when the mother's
antibodies are passed on to their babies through the milk. Meanwhile, Ho said
drug incompliance was another problem in the treatment of HIV patients and the
spread of the virus. Non-compliance can increase drug resistance but many
patients stop medication because they dislike taking so many drugs each day.
Ho's team is working to produce more patient-friendly therapies, such as drugs
that only need to be taken once a month. "We don't want to blame the patients.
But we know that failure of the treatment is largely due to lack of complete
adherence, but that is human nature," Ho said. Ho said Aids and HIV treatment
had shown great improvement but more needed to be done. "We have been successful
in treating patients to make them live longer or have a more normal life, we are
winning there," he said. "But we are losing in terms of the spread of the virus.
Now we don't have anything to slow down the spread except for education and
changing people's behavior." Speaking at the same conference yesterday, Dr Leong
Che-hung, chairman of Hong Kong Aids Foundation, said he also shared Ho's
concern about a drastic rise in HIV infections among gays on the mainland. They
believed the rise was caused by the internet bringing more gays together.
How Hong Kong celebrity gravy train is
gathering pace - Stars' wealth and careers flourish as luxury brands expand
business across China - The next time you see the likes of Maggie Cheung Man-yuk
or Carina Lau Kar-ling dressed to the nines and sitting in the front row at a
fashion show for a European luxury brand in Shanghai or attending a glamorous
party unveiling a watch or a car in Beijing, do not think that they are merely
party animals craving publicity. They are in fact at work. The traditional game
of celebrity endorsement has taken a new turn. These photogenic faces do not
necessarily need to be so closely tied to a product or a brand that they have to
be their official spokesman or spokeswoman. All they need to do nowadays is show
up for events thrown by the brands and have fun - or, at least, act as if they
are. The arrangement has been something of the norm in Hong Kong for a long
time, but as international luxury brands become more eager to do business in the
rest of China, more stars are being paid to party and they are earning more than
just cash. While it may cost as much as HK$1million to attract an A-list star,
celebrities may also receive gifts such as a range of the brand's products. Some
events may have dozens of celebrities, from A-list to C-list. Brand consultants
say celebrities are like shopping tour guides for mainland consumers, who are
affluent but still new to the international world of luxury. To the stars, the
brands offer an opportunity to boost their careers.
Miramar spending millions to tempt
mainland taste buds - Hotel group planning to open 20 gourmet restaurants -
Romain Chan plans to open 10 Cuisine Cuisine and 10 Tsui Hang Village
restaurants on the mainland. He says the spending power of mainlanders cannot be
underestimated. Miramar Group, the hotel flagship of Lee Shau-kee's Henderson
Land Development (SEHK: 0012), plans to "export" its Cantonese gourmet
restaurant brand across the border as a key part of an HK$940 million expansion
plan over the next seven years. Cuisine Cuisine, the company's upmarket
Cantonese restaurant at International Finance Centre in Central - dubbed "the
canteen for senior government officials and corporate bigwigs" - will have its
first outlet in Beijing by the middle of next year. That will be followed by a
further nine openings at a total cost of HK$300 million on the mainland by 2017,
general manager Romain Chan Wai-shing said in an interview. The company's other
Cantonese restaurant icon, Tsui Hang Village, will also open in 10 cities over
seven years, at a cost of HK$100 million, he said. Hong Kong-listed Miramar
Hotel and Investment is a member of the Henderson Land Group, with a diversified
business portfolio covering hotels and serviced apartments, property investment,
food and beverage and travel services in Hong Kong, the mainland, and the United
States. "Cuisine Cuisine and Tsui Hang Village are no strangers to solo
travellers," Chan said. "Very often, we see a few solo travellers walk in
Cuisine Cuisine with their shopping bags and walk out with a HK$100,000 bill for
a dinner." A classic example of a lunch party, he said was a table of 10
mainland travellers dining at Cuisine Cuisine who washed down a menu of abalone
and shark's fin soup with half a dozen bottles of Chateau Lafite Rothschild.
"The red wine alone costs about HK$60,000," Chan said. "Their spending power
can't be underestimated." Miramar's expansion plan cannot have come at a better
time, with the central government's mission to drum up domestic consumption and
develop the service sector as stipulated in the country's 12th five-year plan
from 2011 to 2015. According to a research report from China Investment
Consulting, sales of food and beverage on the mainland are forecast to jump 16.8
per cent to 1.8 trillion yuan in the next five years. From an industry
perspective, said Chan, food and beverage operations generated a faster return
and a stronger cash-flow than running hotels. The gross operating profit margin
of hotels in Hong Kong typically averaged about 40 per cent, he said, compared
to about 20 per cent in key cities across the border. The Cuisine Cuisine
restaurant now planned for Beijing is expected to recover its HK$30 million
investment cost in two years assuming 1,200 yuan spending per head and its
positioning as a top-flight Cantonese restaurant in the capital. Asked if
Beijing and Shanghai's property prices will erode the profitability of the
group's planned restaurants, Chan said: "Many upmarket shopping malls knock on
our door and offer favourable rentals. They are keen to have top Hong Kong
brands." Profit at Miramar's seven restaurants in Hong Kong was expected to grow
20 per cent to HK$15 million this year, a marked improvement from last year when
the market was still enveloped in the fallout from the global financial crisis.
"In five to seven years, the profit contribution from food and beverage business
is likely to be larger than that of our hotel business," he said. Chan said the
proposed investments would be spread over the next seven years and would be
funded by cash flow from operations and cash resources on hand. Some analysts
said Miramar's decision to avoid head-on competition with other hoteliers and
investment in food and beverage made business sense. Cities such as Shanghai and
Beijing had been plagued by a glut of hotel rooms after foreign hoteliers poured
into the market in the past few years, they said. In Hong Kong, Miramar plans to
spend HK$20 million on a facelift for its two Tsui Hang Village restaurants in
Central and Tsim Sha Tsui, in the second quarter of next year, Chan said. The
company also plans to diversify into Italian food by opening a mid-market
Italian restaurant in the Hong Kong Arts Centre in Wan Chai at a cost of HK$10
million next year. It will also join forces with Green House Foods of Japan to
bring a chain of Saboten Tonkatsu fast-food restaurants to Hong Kong. Miramar
plans to have 100 restaurants around Hong Kong in seven years at an investment
cost of HK$300 million. Miramar will also set up a Japanese ramen-noodle
restaurant chain in the city under a franchise with 100 outlets costing HK$200
million, Chan said.
BOC Aviation looking at HK yuan bonds
for funds - Securitising an aircraft has been an efficient way to raise
financing for it in the US, but it doesn't work in quite the same way elsewhere.
Singapore-based aircraft leasing company BOC (SEHK: 3988) Aviation is looking at
issuing offshore yuan bonds in Hong Kong, as well as bonds denominated in Hong
Kong dollars and yen, according to chief executive Robert Martin. The bond issue
would be part of a programme to fund a US$10 billion expansion plan for the next
10 years. The company plans to increase the proportion of bond issues in its
financing mix to 30 per cent of total funding sources in the near future,
compared with 10 per cent at present, said Martin. The balance of the funding
will be supplied by its parent, Bank of China, and through syndicated loans from
43 banks. It has so far borrowed US$200 million from its parent this year,
following on loans of US$100 million last year. "We really believe this decade
will mark the period that the aviation bond market opens up," Martin said. A
newly affluent class emerging throughout Asia over the past 10 years has created
a large capital pool available for aircraft funding, he added, and BOC Aviation
issued US$45 million worth of medium-term notes in Singapore this month which
were well received and widely-distributed among private banks. The issue
followed a successful financing exercise by Singapore Airlines, which issued
S$50 million (HK$301.6 million) in bonds in September. There were the first
corporate bonds to target retail investors in the city state, indicating that
Asian investors were developing a taste for aviation bonds. Whether BOC Aviation
can issue yuan bonds for the first time will depend critically on the depth and
maturity of the currency swap market between yuan and US dollars, said Martin.
Finding financing for aircraft can be difficult. In the United States, the
stand-alone credit rating of many carriers is single B or below the investment
grading threshold of BB. This forces them to issue bonds by securitising the
aircraft they operate. Enhanced equipment trust certificates, a structured
product involving securitisation, have been popular among US carriers for
decades. Section 11-10 of the US bankruptcy code, the so-called Chapter 11,
specifies the right of the investors to get hold of an airplane in 60 days once
the airline is in default and unable to repay its debts. Airlines can get a
higher credit rating by securitising their aircraft to raise cash and obtain a
lower cost of funding. However, not many countries have such a solid bankruptcy
code, making the certificates much less popular among carriers elsewhere. The
Cape Town Treaty, named after the city in South Africa where it was agreed, came
into existence to fill the void. The treaty creates an international registry of
aircraft with their owners or lenders of securitised bonds, which works in the
same manner as Chapter 11. At present, more than 30 countries, including the US,
Ireland, China and the Philippines, have signed on to the treaty and agreed to
adopt the protocol into their laws.
Cameron's trade team arrives in
Beijing - British Prime Minister David Cameron arrives at Beijing Capital
International Airport on Tuesday. British Prime Minister David Cameron arrived
in China on Tuesday on a bid to win trade deals to boost his country's fragile
economy – but differences over human rights issues could overshadow the trip.
Cameron, accompanied by 43 bosses from some of Britain’s biggest companies plus
four ministers, says he wants to take his country’s relationship with the
world’s second-largest economy “to a new level” on the visit. In a comment piece
published in the Wall Street Journal, Cameron said he expected to see “new
contracts worth billions of dollars” signed during his two days in Beijing,
which come ahead of the Group of 20 summit in Seoul. But his efforts to build
lucrative ties with Beijing on his first official visit face being eclipsed by
increasing calls for him to issue a stern rebuke to Premier Wen Jiabao and
President Hu Jintao on their human rights record.
China, Russia and the European Union stepped up criticism on Federal Reserve's
policy of printing dollars - US President Barack Obama defended the Federal
Reserve's policy of printing dollars yesterday after China, Russia and the
European Union stepped up criticism ahead of the Group of 20 meeting this week.
The G20 summit to be held on Thursday and Friday has been pitched as a chance
for leaders of the countries that account for 85 percent of world output to
prevent a currency row escalating into a rush to protectionism that could
imperil the global recovery. But there is little sign of consensus. The summit
has been overshadowed by disagreements over the US Federal Reserve's
quantitative easing policy under which it will print money to buy US$600 billion
(HK$4.68 trillion) of government bonds. "I will say that the Fed's mandate, my
mandate, is to grow our economy. And that's not just good for the United States,
that's good for the world as a whole," Obama said on a trip to India. Resentment
abroad stems from worry that Fed pump-priming will hasten the US dollar's slide
and cause their currencies to shoot up in value, setting the stage for asset
bubbles and making a future burst of inflation more likely. The head of the
group of eurozone finance ministers, Jean-Claude Juncker, said the dollar was
undervalued and that the US Fed's stimulus package presented "risks" for the
world at large. Speaking to a European parliament committee, Juncker said "the
dollar in relation to the euro is not at the level it should be." China feels
the US did not recognize its responsibility to stabilize global markets and did
not think about the impact of excessive liquidity on emerging markets, Vice
Finance Minister Zhu Guangyao said. Russia said actions such as QE2 should be
taken after consulting other nations. Meanwhile World Bank president Robert
Zoellick yesterday urged leading economies to consider adopting a modified
global gold standard to guide currency rates as the precious metal hit a new
record high of US$1,398.35 (HK$10,907.13) an ounce. Writing in the Financial
Times, Zoellick called for a "Bretton Woods II" system of floating currencies as
a successor to the Bretton Woods fixed-exchange rate regime of the 1970s.
Chinese fans take loss to Japan
sitting down - Flanked by police, disappointed Chinese fans watch their side go
down to bitter rivals Japan in Guangzhou. The game passed off without any crowd
trouble. Security was tight inside and outside Guangzhou's Tianhe Sports Center
Monday night as bitter rivals China and Japan met in an Asian Games soccer
match. However, the game passed peacefully, despite the hosts losing 3-0.
J-10 jet fighters of Bayi Aerobatic
Team arrive in S China - Seven new J-10 jet fighters of Bayi Aerobatic Team
arrived in Zhuhai, and they would make their debut in the 8th China
International Aviation & Aerospace Exhibition.
Guangzhou
shines for Asian Games - Light shoots out from the Liede Bridge into the night
sky, illuminating Guangzhou, the host city of 16th Asian Games on Nov 7, 2010.
Dazzling light displays for the upcoming Asian Games have been installed in some
public places and high-rise buildings in Guangzhou to make the city more
charming for the games.
Hu wraps up Portugal trip with
offer to help fight crisis - President Hu Jintao exchanges toasts with
Portuguese President Cavaco Silva during dinner at the Ajuda Palace in Lisbon.
President Hu Jintao prepared to wrap up a visit to Portugal yesterday with
pledges to support its battered economy, but he did not commit to buying
Portuguese debt as was widely anticipated. Hu and Portuguese Prime Minister Jose
Socrates signed a series of trade deals after holding talks, but there was no
announcement of Beijing's willingness to buy Portuguese debt, as it did last
month for Greece. "We are ready to support through concrete measures Portugal's
efforts to reduce the impact of the international crisis," Hu said at a joint
news conference. He also repeated a pledge made on Saturday to see a doubling of
bilateral trade by 2015. Portuguese lenders Millennium BCP and BPI signed deals
with Bank of China to identify investment opportunities in the world's
second-largest economy, the Portuguese government said. Energy firm EDP signed a
deal with China Power International (SEHK: 2380) (CPI) with a focus on renewable
energy and co-operation in Europe, Africa and Brazil, the government said. The
deal also paved the way for CPI to take a stake in EDP. The Portuguese
government is keen to reduce its 25 per cent holding as it seeks to reduce
national debt. The two countries announced the signing of further agreements in
tourism, telecommunications and education, but no specific investment figures
were released. "These agreements represent a bet on the economic relations of
the two countries," Socrates said. Portuguese debt has been buffeted on
international markets despite the parliament approving swingeing budget cuts of
€5 billion (HK$54.67 billion) last week. The yield on benchmark 10-year bonds
rose to a record 6.439 per cent on Thursday. Portugal ranks 77th on the list of
China's suppliers, with goods worth €222 million exported last year, and imports
worth €1.1 billion. Earlier, Hu said China wanted to strengthen co-operation
with Portugal on international issues such as reform of the United Nations.
"Thus we will be able to consolidate our consultations on global themes and
common international interest, such as the resumption of world economic growth,
the reform of the United Nations and climate change," he said. He was speaking
at a joint press conference with President Anibal Cavaco Silva, who said the
election of Portugal to one of the non-permanent seats on the Security Council
opened "new possibilities of deepened dialogue between the two countries". Hu
arrived in Lisbon on Saturday with his wife Liu Yongqing, members of the Chinese
government and about 50 business leaders. He flew from France, where Chinese
officials had signed more than US$20 billion in contracts. The authorities
denied a request from Amnesty International to hold a protest outside Lisbon's
presidential palace during Hu's visit. The city government said the
demonstration would clash with one by Portuguese and Chinese businessmen that
had already been approved, according to state news agency Lusa. But about 20
people gathered near the venue, holding up photographs of what they said were
the victims of human rights abuses in China.
The lessons that China can learn from
Japan - Chinese global brands 10 years off: ex-Sony chief - When asked to
comment on China overtaking Japan to become the world's second largest economy,
Nobuyuki Idei, Sony's former chairman and now head of his own Tokyo-based
consultancy, was cool: "No one should be surprised." Already on his sixth trip
to China this year, Idei knows the country very well. "Up to now, Japan can be
seen as a mirror of whatever happens here. The Chinese will go through what the
Japanese went through 20 to 30 years before them, in our learning of industry
and globalisation," he said. "China's catch-up, especially in size and in
quantity, is what Japanese businesspeople have anticipated for some time," Idei
said. Nor should it be interpreted as an unhappy turn of events. Japan does not
compete with China on size or on quantity, he said. China's course of progress
would inevitably generate more opportunities for the two economies to work
together. Economists say that this year, China's GDP will probably be around
US$5.3 trillion, compared with a US figure of US$14 trillion and Japan's US$5.1
trillion. Last year China recorded a GDP of US$4.9 trillion, according to IMF
figures. But with its immense economic power, isn't it time for some Chinese
companies to grow into powerful brand names? Some Western management consultants
have been asking this for a couple of years. For instance, where is the Chinese
Sony? "Not yet," Idei said, in a matter-of-fact way, adding that in the future,
there should be some Chinese companies like Sony and Samsung - built on an
international structure and owning international brands. However, the reality
was because China had such a large domestic market, which was still a long way
from mature or fully exploited, most Chinese companies did not feel the pressure
for overseas expansion. At the same time, Idei pointed out: "Unprepared overseas
ventures might even cost a company its domestic market share." So the priority
for most Chinese companies was still to focus on the domestic market, before
they could leverage their home-base success globally. This being the case,
people would still have to wait for another 10 years or so before they could see
some Chinese global brands. In car manufacturing, for instance, China was still
going through growth stages similar to those in the US in the 1930s and Japan in
the 1970s and 80s. "The same is true for Baidu.com," Idei said, referring to the
Chinese search engine company in which he is a member of the board of directors.
Baidu's organisation is fairly complex - registered in Hong Kong, listed on
Nasdaq and recently beginning its operations in Japan - and stands a good chance
of becoming more internationalised. But the domestic market that Baidu is facing
is all the same; immensely large and still immature in some ways. Idei is
regarded by younger business people in Japan and in Asia as a kind of visionary
guru, who has been busy helping them with new ideas and new connections since he
retired from Sony and founded his own management consultancy, Quantum Leaps.
Part of what his company does is to gather business leaders and intellectuals
from Asian countries to discuss their future economic relations. Although there
is no mistake in saying that China is following Japan's footsteps in
industrialisation, the country also has some special features that outsiders do
not easily fully appreciate. Being large is one, and having a tremendous amount
of poverty is the other. And "you see it once you drive just a little farther
away from Beijing and Shanghai". Idei said poverty in China was also reflective
of the dichotomy throughout Asia, which remained the homeland of the largest
group of poor people in the world despite recent impressive developments.
China's further industrialisation and urbanisation would yield almost a natural
demand for improvement in health care systems, in efficient energy use, in
financial services and in applications in agricultural and bio-science. These
could be new areas of business collaboration between the two countries, he said.
But can China, which has been going through many similar developmental
experiences as Japan, avoid making the mistakes that Japan made in the 1930s and
1940s - especially when it is fairly strong in size and quantity, and at times
seen by the outside world as being assertive? Idei was quick to use a triangle
metaphor to explain his approach: Back in the 1930s, the balance of the
"Japanese triangle," joined by the government, bureaucrats and the military, was
broken when the military became predominant and out of control. Similarly, there
is also a "Chinese triangle", made up by the Communist Party, bureaucrats and
the military. Viewing the country this way, "you can see for yourself how the
component factors change in their weight and proportion," he said. Besides, Idei
stressed, one important thing to remember was that "time is different".
Imperialism was no longer the game in the world. People knew better nowadays
what the real challenge for the future was and quibbling about trade disputes,
border issues, and political trivialities yielded no real help. "Think about the
many poor people in Asia, how can their problems be solved without nations
across the region forging stronger collaboration?" he asked. Thanks to China's
participation, Asian economies were already working together more closely in
recent years. Yet this was only the beginning, and much more could be done in
developing the regional market and business network. "So I have great hope in
Asia's future," Idei said.
Defiant supporters turn up for
activist's feast of river crabs - The crab feast was supposed to have been
cancelled but the diners came anyway, and they were not denied the chance to
crack some claws. Artist and activist Ai Weiwei may have been placed under house
arrest, but the feast he threw to mock the authorities' censorship rules went
ahead regardless. About 600 of his online followers flocked to his
soon-to-be-demolished studio in Shanghai. Ai said from his Beijing home he was
overwhelmed by the response, which he described as a "strong signal" that
ordinary people were willing to stand up for their rights. "We never expected
that many," he said. "After we announced it was cancelled, I thought maybe just
50 people would still come. But some people said it is not our building any
more, it's a building for the `grass mud horses'. "Young people showed the world
that they are not going to be intimidated. They showed they can still enjoy the
sunshine and listen to music without being afraid." The term "grass mud horse"
is used to refer to rights activists. It is a homophone in Putonghua for a
strong swear word invented to counterbalance the "river crab" - itself a
homophone for "harmony", one of the government's favourite terms used to
discourage dissent. Those crabs were served yesterday in a symbolic defiance of
government controls. "Harmonious society, eat river crabs," the diners chanted
as the crabs were dished out - one of the few moments when the carnival
atmosphere took on a more political feel. Organisers, who were worried about the
prospect of police breaking up their "illegal gathering", said they had earlier
cancelled their plans, yet the 600 came. "We are sure we have enough crabs for
everyone," one kitchen hand said as he loaded crabs on his wok. Ai's huge studio
home, built of red brick and concrete in the traditional courtyard style, was
overrun by supporters from across the country. "As soon as I heard about this
event I knew I had to come," said one youth who flew in from Shenzhen. "I think
this gathering is the most meaningful thing we can do. "We don't need slogans or
labels. The fact so many people came will make others ask what inspired us.
People in this country don't ask enough questions, but I think this is a start."
Ai announced on Twitter he planned to treat "mud grass horses" to a dinner of
10,000 river crabs to mark the demolition of the studio. He said he was told by
officials to demolish the US$1.1 million building because it was an illegal
structure, even though it was built at the district government's invitation.
"They offered me compensation if I kept quiet, but I told them this is not about
money," he said. Ai had planned to attend the function, but police placed him
under house arrest in his Beijing home on Friday. He was expecting the
restrictions to be lifted at midnight yesterday.
Cleaner
harbor raises hopes for Hong Kong cross Harbor swim - Jumping into the harbour
was not considered a hazardous activity in 1976, as these cross-harbor swimmers
demonstrate. But two years later the event was cancelled because the water was
so foul. Now momentum is gathering for the race to resume as efforts to clean
the harbor start to take effect. In his teens, Ronnie Wong Man-chiu took part in
the annual cross-harbor swimming race and won it for three consecutive years.
But then the water got so dirty that the famous race was stopped in 1978. Now
Wong, secretary of the Hong Kong Amateur Swimming Association, is bidding to
revive the event and has targeted next year as the date to dive back into the
harbor as it coincides with the 60th anniversary of the Sports Federation and
Olympic Committee of Hong Kong. "We are very hopeful we will get the approval
from all the government departments concerned to restart this great event which
will be popular not only with the locals but also with swimmers from overseas,"
Wong said. The Environmental Protection Department (EPD), which has started the
process of cleaning the harbor, had originally told the swimming association
that the water would be clean by 2013. But Wong is hopeful that recent studies
which have shown the water in the east of the harbor was clean would clear the
way for permission to stage the race next October. "We have been talking to the
EPD and trying to apply for a permit to swim across the harbor for the past five
or six years and they have always said the water was not good," Wong said. "But
now they say it is getting better, especially in the east of the harbor, and
have asked us to present them with a plan which will have to involve a route, a
date for the race as well as getting an independent study from the medical
sector as to what impact swallowing water will have on a swimmer." The EPD
confirmed that many parties had expressed an interest in holding the
cross-harbor swimming event. They warned that based on the water quality
monitoring results obtained last year, the E coli levels in the harbor near
Central and Wan Chai remain relatively high. However, this did not necessarily
mean that the event could not take place. "All parties interested in holding the
cross-harbor swimming event will need to consider factors such as the nature of
the competition or event, the health and fitness of the participants, the
location and alignment of the swim course, the time required to complete the
event, the seasonal and spatial variations of water quality in Victoria Harbor,
and other related marine traffic and safety issues," an EPD spokesman said.
According to Wong, other key departments have backed the move to bring the race
forward from 2013 when the treatment and cleaning of the harbor is expected to
finish. "The Marine Department, the police and the LCSD [Leisure and Cultural
Services Department] all support us. I think it is very feasible. I'm pretty
confident we will get the green light after having also spoken to the EPD and
reading the latest figures for the water quality in the harbor," Wong said. With
the eastern side of the harbor already cleaner, the swimming association has
targeted a start at Hung Hom and finish at North Point - a far cry from the
1960s when the race began near the old Kowloon station on the pier used by the
post office (where the clock tower is presently) and ended at Queen's Pier. "It
was a distance of 1,650 yards or 1.5 kilometers. I won the race in 1968, 1969
and 1970," Wong recalled. "But if we revive the race, it will be over a longer
distance, at least three kilometers. "It will be a huge draw, and will be a big
tourist attraction. This will also encourage more people to take up swimming."
New York mayor Michael Bloomberg
(center left) is escorted by security guards through Wan Chai after a
climate-change workshop at the Convention and Exhibition Centre.
PLA to join Oxfam race despite Beijing attack on charity - The PLA team at the
Oxfam Trailwalker finish line in Yuen Long last year. Nine months after Beijing
looked to have locally-based charity Oxfam blacklisted by saying it had
"ulterior motives", the People's Liberation Army has decided to support its work
by taking part in its fund-raising Trailwalker event in two weeks time. But in
joining the gruelling cross-mountain race for the second time, the Hong Kong
garrison, which swept the first two places in last year's race in controversial
fashion, will have to consider the organiser's advice to keep its support team
small. The PLA team's victory last year was tainted by accusations of
questionable tactics after they used a support crew of more than 50 people,
drawing complaints from some competing teams. Two teams of four soldiers will be
among the record-breaking 1,150 participating teams, comprising 4,600 walkers,
tackling the 100km-MacLehose Trail from Sai Kung to Yuen Long. The annual event,
which raises money for Oxfam's poverty-alleviation and emergency-relief projects
in Asia and Africa, was first held in 1986. The charity, which has been active
in launching projects on the mainland, suffered a blow earlier this year when it
had to suspend a training programme for university-student volunteers after a
row. A notice, attributed to the Communist Party office of the Ministry of
Education and appearing on the websites of several mainland universities in
February, labelled the group "a non-governmental organisation that has been
trying hard to infiltrate China" and said "its head is a key member of the
opposition camp". It was later removed from the websites. Dr Lo Chi-kin,
chairman of Oxfam Hong Kong and a Democratic Party member, said Oxfam sought
clarification about the notice but had not obtained any official response. But
he believed the incident had not affected the relationship between the
organisation and official mainland bodies such as the PLA. "Three days after the
SCMP reported on the notice, the PLA still attended the Trailwalker award
presentation ceremony," he said, welcoming the PLA's continued participation in
the event this year. Oxfam event manager Brenda Wong Yuk-han said it extended an
invitation to the garrison in May or June, but received a reply only about a
month ago, after the open registration period had passed. After last year's
race, runners and support runners for the teams which came fourth and sixth
complained that the PLA teams used an excessive number of support runners to
join the route at intervals, and give out food and water at checkpoints. This
was compared to the Gurkhas - the dominant participants in the past, who used
only two or three support runners. They did not join the event last year and are
not competing this year. The Salomon Gatorade Racing team looks to be the PLA's
biggest rival for the title and is made up of two members who complained about
the PLA's antics last year: Michael Maddess and Jeremy Ritcey. "It wouldn't
surprise me if the PLA has been training harder to put aside any negative news
from last year," Maddess said. "There are some great support runners who are
very good at getting out of the way, but tensions do rise when you're on a one-metre-wide
technical trail. Support runners can put you off your stride when trying to get
around people not even in the race. "It's a grey area that many of the top teams
take advantage of now to be competitive." Maddess said that "Oxfam is in a
difficult situation, as they're trying to keep all happy and focus on
fund-raising", but that the Super Trailwalker teams were getting more
competitive every year. The PLA said their eight participants would use their
spare time this week to improve their endurance training and study the rules in
the run-up to the race. "The force will continue to follow rules laid down by
the organiser strictly," the PLA said. "Participation in the event and
friendship are more important than winning the challenge." Oxfam said it had
called on participants to keep the size of their support crews down. "We found
that support teams had not caused real obstruction to participating teams. But
in view of the opinions raised last year, we have still asked participating
teams, especially the strong ones, to arrange support teams of appropriate
sizes," Wong said. But she said the organizer would not cap the number of
support runners for each team. "It is difficult to impose such a restriction.
The MacLehose Trail is a public space and everyone can go there."
Fed's 600 billion QE2, a dangerous and
unnecessary step: Leo Melamed, the founder of financial futures - Leo Melamed,
the founder of financial futures, has labeled the U.S. Federal Reserves' second
round of quantitative easing not only dangerous but unnecessary. The Federal
Reserve announced Wednesday it would buy another 600 billion dollars worth of
U.S. Treasury securities to revive the sputtering U.S. economy. "The U.S.
Federal Reserve is taking a very dangerous and unnecessary step by undertaking a
second round of quantitative easing policy," Melamed told Xinhua reporter in an
exclusive interview here Friday. "We have certain opinions as market
participants. I think the Fed is taking a very dangerous step, because it's not
clear that the QE2 is necessary, and it's also not clear whether it can achieve
the purpose Fed intends," said Melamed, currently chairman emeritus of CME Group
and CEO of global consulting enterprise Melamed & Associates, Inc. "We already
had a good deal of quantitative easing in the U.S, and so far it hasn't done any
restructuring of the market. In terms of strength of the economy, our economy
has not rebounded, so why would it be necessary to do it again, when the first
round isn't helping. We should give it more time before we do anything else," he
said. Melamed warned it was a very dangerous move the Fed was undertaking. The
danger was that it might not work to rejuvenate the economy but would create a
falling dollar, which was not helpful for the economy and eventually would
create an inflationary environment in the United States.
Sanya awarded as one of "2010 China's Best
Leisure Cities" - Sanya, a famous international tourist destination in south
China's Hainan Province, was awarded as one of the "2010 China's Best Leisure
Cities" on Saturday.
Replenishment training for China's naval
escort flotilla - Chinese naval depot ship "Qiandaohu" pipes fuel to "Xuzhou"
missile frigate during a replenishment training for China's seventh naval escort
flotilla.
China, Portugal to boost
bilateral ties - China's President Hu Jintao walks with his Portuguese
counterpart Anibal Cavaco Silva as they review the honor guard at Belem
presidential palace in Lisbon November 6, 2010. Visiting Chinese President Hu
Jintao and his Portuguese counterpart, Anibal Cavaco Silva, agreed on Saturday
to further deepen the comprehensive strategic partnership between their
countries. Both China and Portugal boast ancient civilizations and have made
great contributions to human progress, Hu said during a meeting here with Silva,
noting that the smooth settlement of the Macao issue has set an example for
other nations to tackle outstanding historical disputes. The two countries
suffer no conflict of fundamental interests, their peoples cherish friendly
feelings toward each other, and their relations have been growing steadily, he
added. Development of bilateral ties since Beijing and Lisbon established
diplomatic relations 31 years ago has demonstrated that the two sides should
treat their relationship from a strategic and long-term perspective and stick
firmly to the right direction for its further advancement, Hu said. Both
countries should also understand and support each other's major concerns and
enhance mutual political trust, while further expanding practical cooperation in
various fields on the basis of mutual benefit and win-win progress to
consolidate the foundation of their relations, he added. The Chinese side, Hu
stressed, appreciates Portugal's adherence to the one China policy and its
efforts to promote relations between China and the European Union (EU). Silva,
for his part, welcomed Hu's visit, and hailed the time-honored ties between
Portugal and China, which he said were based on mutual respect. The successful
settlement of the Macao issue has created favorable environment for Macao's
social and economic development, he said. Macao has since served as a bridge
between China and Portugal as well as other Portuguese-speaking countries, and
the forthcoming third ministerial conference of the Forum for Economic and
Commercial Cooperation between China and the Portuguese-speaking Countries in
Macao is a proof of that, said Silva. Looking at the future, Hu said that
against the backdrop of a complex and volatile international situation, China
and Portugal need to make concerted efforts to further boost their five-year-old
comprehensive strategic partnership to better benefit their peoples. In a
four-point proposal, Hu expects the two sides to strengthen mutual political
trust and strategic cooperation by bolstering high-level exchanges and
broadening communication between governments, legislatures and political parties
of the two countries. Meanwhile, China is confident that Portugal will continue
to play an active and important role in securing a healthy and steady
development of China-EU relations, he said. he called upon the two sides to
shore up economic cooperation and try to double bilateral trade by 2015. He said
China is ready to explore with Lisbon ways to upgrade China's economic and trade
cooperation with other Portuguese-speaking nations. Next on Hu's priorities list
is that the two sides should step up people-to-people exchanges and further
deepen the friendship between the Chinese and Portuguese peoples. The two sides
should make full use of their rich cultural resources to carry out diverse
cultural exchange programs so as to bring China-Portugal friendship closer to
the publics of the two countries, he said. The Chinese president also proposed
that Beijing and Lisbon beef up cooperation on international affairs and jointly
contribute to the construction of a harmonious world. China values Portugal's
important influence on regional and global issues, and is ready to conduct
better communication and coordination with Portugal on economic recovery, UN
reform, climate change and other matters in order to jointly promote world peace
and development, Hu said. Silva agreed with Hu's proposals, calling the
establishment of the comprehensive strategic partnership between the two
countries in 2005 a milestone in Portugal-China relations. Currently, the
strategic mutual trust between the two countries has been deepening, and their
trade and economic cooperation are developing smoothly, Silva said, adding that
he wishes both sides to further achieve the potential to enhance trade and
investment with each other, and expand pragmatic cooperation in various fields.
Portugal is willing to conduct mutually beneficial cooperation with China as
well as with any third party, Silva said. Silva hailed China's vigorous economic
development and its successful holding of the 2010 Shanghai Expo. He also spoke
highly of China's crucial role in boosting world peace and development, and its
contribution in fighting the global financial crisis and promoting the recovery
of the world economy. Portugal expects to see China play a more important role
in such issues as the reform of the international monetary system and climate
change, he said. Portugal, taking advantage of its recent election as a
non-permanent member of the United Nations Security Council, is willing to
strengthen cooperation and coordination with China in coping with global
challenges, said Silva, who also pledged his country's efforts to boost
relations between Europe and China. Portugal won a seat of the UN Security
Council last month, and will join Colombia, Germany, India and South Africa to
serve two-year terms on the most powerful UN body starting January 1. The
Portuguese leader said that President Hu's ongoing visit is of great importance,
and will surely push ahead cooperation between the two countries in a variety of
fields and turn a new page of bilateral ties. Hu arrived here Saturday after a
three-day state visit to France. He is also expected to hold talks with
Portuguese Prime Minister Jose Socrates and other senior officials. Hu is
scheduled to head back for China on Sunday.
Opposition lining up to thwart new law -
Competition legislation faces race against time - A drawn-out battle is shaping
up over the proposed business competition law, with legislators already
expressing fears it may go on so long that it will not be possible to pass the
bill before the end of their term in 2012. Business representatives are
complaining that the bill - aimed at creating a level playing field for
companies in Hong Kong - is too vague, while expressing concern about possible
huge penalties. They also continue to question the need for such a law in the
first place. The Legislative Council committee scrutinising the bill has
scheduled 37 meetings and public hearings with an expected completion date in
April 2012. But if lawmakers fail to pass the bill before July 2012, the
legislative process will have to be restarted from scratch in the new four-year
term that starts in October that year. Key among the concerns of businesses is a
lack of details of how the law will be enforced. Also worrying them is the
possibility that companies that breach the law may be fined up to 10 per cent of
their total turnover for however long the breach has taken place, according to
Hong Kong General Chamber of Commerce insiders. Committee chairman Andrew Leung
Kwan-yuen, the legislator representing the manufacturing sector, said many small
and medium enterprises were concerned the bill would affect their businesses.
"The definitions on market share or monopoly are unclear," he said. Federation
of Hong Kong Industries chairman Cliff Sun Kai-lit said the need to legislate
should be the main reason for having a competition law. He said it should not be
enacted just because Hong Kong felt it had to mirror other jurisdictions such as
Singapore. Miriam Lau Kin-yee, leader of the business-oriented Liberal Party,
said there was a need for thorough discussions in the coming year or so to
address grey areas. The Civic Party's Ronny Tong Ka-wah, deputy chairman of the
bills committee, said it would be difficult to satisfy concerns raised by both
business and pan-democrat political parties and a compromise had to be made at
some stage. He said: "Many concerns raised by businesses are actually
unnecessary worries. "What I am most concerned about is whether anyone will drag
on the scrutinising process, which could result in the bill lapsing when this
legislative term ends in 2012." Tong said his party was prepared to back the
bill even if a clause allowing companies to initiate lawsuits over alleged
monopolistic abuses was dropped to ease business concerns. Both the Democratic
Party and the Democratic Alliance for the Betterment and Progress of Hong Kong
say the bill must be passed in principle and that details can be worked out in
the legislative process. Gerry O'Brien, a senior associate with law firm Mayer
Brown JSM, said it was clear from the draft bill that the maximum penalty of 10
per cent of turnover related to a company's worldwide turnover.
Moving scroll brings Song dynasty to life - The press get an advanced briefing
on the exhibit, an animated version of a 900-year-old painting, at Asia
World-Expo in Tung Chung yesterday. Coolies stack up bags of goods in a pile.
People ride on donkeys and sedan chairs. Boats slip along a river, propelled by
men. These are all moving characters in the animated version of Riverside Scene
at Qingming Festival, whose creator is making final preparations before it makes
its debut in Hong Kong next week. About one out of every 10 Hongkongers has
secured a ticket to see the duplicate of the star exhibit from the China
pavilion at the Shanghai World Expo, which will be displayed at Asia World-Expo
from Tuesday until November 29. The exhibit is a digital version of the painting
Riverside Scene at Qingming Festival, which shows daily life unfolding in
Kaifeng - formerly known as Bianjing - during the Northern Song Dynasty 900
years ago. Adjustments to make sure images projected by 12 projectors were
synchronised were one-third finished, exhibition director Yu Zheng said
yesterday. The progress was faster than scheduled, he said. While each ticket
holder is allowed an hour's visit, Yu advised people to spend 10 minutes getting
an overall impression of the scroll before spending another 20 minutes looking
at the details. Many might spend the rest of their time looking at exhibits on
the dynasty and the animation technology, he said. Science Museum curator Karen
Sit Man described some of the 12 must-see attractions on the scroll. "The
Rainbow Bridge, the drum tower, the camel fleet, boats and various shops selling
paper offerings, medicine and fragrances, for example," she said. People should
arrive at the venue 15 minutes before their time slot, she said. The keenest
fans can enter the waiting area an hour before their scheduled time to watch a
video and look at exhibits about Hong Kong's participation at the World Expo. On
event days, a return trip on the Airport Express will cost HK$48 instead of
HK$100. Trains will depart every 10 minutes instead of the usual 12 minutes. The
show's 768,000 tickets have sold out, but some were still available on auction
websites for 10 times more than their original HK$10. Millions visited the China
pavilion, but they might not have known that the animated artwork offers clues
to a series of Song dynasty innovations, Professor Victor Sit Fung-shuen,
director of the Advanced Institute for Contemporary China Studies at Baptist
University, said. Bianjing, the ancient Chinese capital, was far more urbanised
than Western cities 900 years ago, Sit said, adding: "Bianjing was similar to
the London of the 18th century." While the original Riverside painting shows
Bianjing during the day, the digital scroll adds a transition into night-time:
animated figures are gathered at restaurants, having fun drinking. It sounds
perfectly normal to enjoy a night out at a bar by modern standards. But it was
not until the Song dynasty that Chinese residents could leave their homes at
night, Sit explained. Entertainment for the public, such as Chinese opera and
story reading, also started around the same time. The river that dominates the
lower part of the digital scroll was a vital transportation route in Bianjing.
"Ninety per cent of rice and salt demanded by residents in the capital was
shipped in," Sit said. Secretary for the Environment Edward Yau Tang-wah may be
interested to know that an environment bureau was in place 900 years ago. "The
trees along the river were not wild. They were planted by the government," Sit
said.
Copyright row stops the music at annual
awards - Eason Chan fans won't be seeing their hero - An annual joint Canto-pop
awards ceremony has been cancelled for the first time in 15 years because of TVB
(SEHK: 0511)'s long-running copyright dispute. Yesterday, organisers TVB, RTHK,
Commercial Radio and Metro Radio announced they would call off the Four
Electronic Media Syndicated Awards. The move followed complaints from music
buffs that the exclusion from TVB's rankings of big-name artists from Universal
Music, Sony Music, Warner Music and EMI made it less likely for them to win
awards. Singers from the four labels have not appeared on TVB since the
copyright dispute began in December. They include superstars Eason Chan Yik-shun,
Kay Tse On-kay, Hacken Lee and Jacky Cheung Hok-yau. Normally awards are given
to singers who have the best overall results in the four prize ceremonies held
separately by the four organisers before the joint event. RTHK Radio 2 deputy
head Fung Wai-tong said the broadcaster had received huge numbers of inquiries
from fans about the assessment standards for the ceremony. The inquiries led
RTHK, this year's convenor, to call a meeting on Wednesday at which
representatives voted to cancel the event. Fung stressed it did not mean the
ceremony would be gone forever. TVB is refusing to pay the music companies'
demands for doubled copyright fees.
China putting a froth on profits for
Starbucks - Starbucks boss Howard Schultz has a cup of coffee during a visit to
the HKU branch yesterday. Even with all the tea in China, a strong cafe culture
has enticed more mainland consumers and helped boost Starbucks Corp's
international sales in its fiscal quarter to October. United States-based
Starbucks, operator of the world's largest coffeehouse chain, credited its
11-year-old China business - along with operations in Britain and Canada for
contributing the most growth to the company's record international revenue of
US$619.3 million, up 21 per cent from US$512 million a year earlier. "We are
seeing fantastic comparable (store) sales growth and increased profitability in
China,"chairman and chief executive Howard Schultz said yesterday in a
conference call with analysts after reporting the firm's latest quarterly
results. No details were provided. Starbucks, which posted total revenue of
US$2.8 billion in its fiscal quarter to October, has more than 700 shops in.
About 380 of these are on the mainland. Schultz said Starbucks will continue to
open new shops on the mainland amid plans to introduce 400 stores
internationally in the next 12 months. "In September, we opened in Changsha and
Fuzhou to enormous crowds and exciting brand buzz," Schultz said. "Average daily
sales for these new stores are far exceeding even our most optimistic
projections." He said "relevant local offerings such as Green Tea Frappuccino,
Coffee Jelly Frappuccino, Mocha Valencia, Iced Tea, juice beverages and moon
cakes... continue to resonate well and attract new and repeat customers " at all
of Starbucks' mainland stores. According to a report from the International
Trade Centre in Geneva, Switzerland, China's growing urban population of 600
million people accounts for an estimated 90 per cent of coffee consumption in
the country. The report said freshly brewed coffee is primarily consumed by
Chinese drinkers outside their home, such as in cafes and restaurants, "because
many coffee drinkers do not know how to brew "We've said for years that China
will be the biggest market for Starbucks outside of the US," Schultz said. That
is why, he said, the firm is keen to "have more ownership [of stores in the
country] than less". Competition is expected to heat up for Starbucks, as Hong
Kong- listed China Resources Enterprise (SEHK: 0291) announced in August a plan
to open hundreds of Pacific Coffee outlets across the mainland.
APEC finance ministers urge policy measures for stronger growth - APEC finance
ministers called on member economies to take policy measures to achieve
"stronger, more sustainable and more balanced growth" in the region.
France, China sign more
trade deals on state visit - France and China signed a fresh batch of trade
deals yesterday during a state visit by President Hu Jintao that has already
seen Paris win export contracts worth US$20 billion. President Nicolas Sarkozy
has brushed aside worries about China's human rights record to throw on a warm
and lavish welcome for Hu, wooing investment and Chinese support for his agenda
as the incoming president of the G20. France and China signed 20 billion dollars
in industrial contracts on Thursday at the start of Hu's three-day visit, with
police trying to keep rights protestors away from the Chinese leader. A new
round of 15 contracts was signed yesterday in arenas ranging from power to wine,
including a €1.1 billion (HK$12.1 billion) deal between telecommunications-group
Alcatel-Lucent and China Mobile (SEHK: 0941), China Telecom (SEHK: 0728) and
China Unicom (SEHK: 0762). They were signed at the business association Medef on
Paris' chic Left Bank in the shadow of the Eiffel Tower, at a ceremony attended
by Chinese Minister of Commerce Chen Deming and French trade minister Christine
Lagarde. In remarks calculated to reassure China about its export-driven
economy, Lagarde branded protectionism "the most hideous monster" and called for
"a sustained economic relationship founded on friendship and demand". But she
added that France would like to sell more to Chinese consumers. "We're not
necessarily very proud when we see that our trade deficit with China is the
largest, at €22 billion," she said. After striking a deal to supply 102
airliners to Chinese firms worth US$14 billion, Louis Gallois, the boss of
Airbus-parent-company European Aeronautic Defence and Space, said China's human
rights "problem" could not be resolved by businesses. "I don't think that we
should resolve the problems that you mention, notably human rights, through
business," Gallois said when asked by BFM radio about the lack of any public
comment by Sarkozy on human rights in China. "I don't see what commercial
instrument one can use to resolve this kind of problem. "I think that China is
developing, evolving, as it opens up." Alongside the trade contracts, Hu has
thrown China's weight behind Sarkozy's goal of using France's upcoming
presidency of the Group of 20 (G20) of the world's largest economies to reform
the global financial system. After next week's summit in South Korea, France
will take on the year-long rotating G20 presidency, during which Sarkozy wants
to push big international reforms, and China has given cautious backing. French
nuclear-giant Areva has also signed a contract to supply US$3.5 billion worth of
uranium to Chinese power-firm China Guangdong Nuclear Power Group.
Forbes magazine has named President Hu Jintao as the world's most powerful
person - It is a move that analysts say shows global acknowledgement of China's
contribution to the world's economic recovery. China's President Hu Jintao (L)
is greeted by France's Prime Minister Francois Fillon before a meeting at the
Hotel Matignon in Paris November 5, 2010. United States President Barack Obama
slipped to second place on the annual list. Obama had previously been considered
the world's most powerful person but his party's defeat in the midterm elections
may have had some influence on the latest rankings. China's peaceful rise on the
world stage is also likely to have been a decisive factor. Analysts said China's
burgeoning economy might have tipped the scales in Hu's favor. They noted that
China's remarkable contribution to the world's economy helped it gain a strong
international reputation. Yuan Peng, a researcher with China Institutes of
Contemporary International Relations, said other nations have been struggling
with the economic recession while China has impressed the world with its
economic development. "It has not only achieved rapid economic growth in the
shadow of the financial crisis but it has also helped other nations by providing
capital and markets that are badly needed," Yuan said. Fan Jishe, an analyst
with the Chinese Academy of Social Sciences, said another significant factor in
Hu's ranking was China's stable social development and its ability to overcome
natural disasters in recent years. "The effective measures taken by the
government also earned credits for Hu," Fan said. Fu Mengzi, another researcher
with China Institutes of Contemporary International Relations, said the Shanghai
Expo also served as a good opportunity to promote China and raise Hu's profile.
Forbes magazine said it used four criteria to define power - whether the person
has influence over a lot of people; whether the person controls significant
wealth compared to their peers; whether the person is powerful in more than one
sphere and whether they actively wield that power. Third place went to King
Abdullah of Saudi Arabia, a country with one-fifth of the world's oil reserves.
The value of crude oil owned by his country is estimated at $22 trillion. The
magazine claimed Abdullah consolidated his power by pursuing conservative
Islamic values while maintaining close ties with the US.
PBOC warns of US policy's global
impact - Bank to strictly control hot money flows in wake of Fed's cash
injection - The Federal Reserve's move to inject money into the US economy may
suit the United States, but it will have side effects for the global economy,
China's central bank governor warned yesterday. Zhou Xiaochuan, head of the
People's Bank of China, told a financial conference that Beijing would "strictly
control" inflows of hot money in the wake of the new round of the quantitative
easing (QE), under which the US will buy US$600 billion in bonds to help the
domestic economic recover. Zhou's remarks came as China demanded an explanation
from Washington of the second round of QE, after frequently being pressured by
the US to appreciate the yuan faster to restore trade balance. Deputy Foreign
Minister Cui Tiankai said yesterday: "Many countries are worried about the
impact of the policy on their economies. It would be appropriate for someone to
step forward and give us an explanation, otherwise international confidence in
the recovery and growth of the global economy might be hurt." Economists are
concerned the low US interest rates and ballooning liquidity will result in
money flooding into emerging markets seeking higher returns, pushing up exchange
rates and exacerbating inflation. "If the domestic policy is an optimal policy
for the US alone, but not so for the world, it may have a lot of negative impact
on the world," Zhou said. For short-term speculative money, China would put in
place a "pool" and prevent it from entering the real economy. So when these
funds exited the country, impact on the economy would be minimised, Zhou said.
Li Youhuan, a researcher with the Guangdong Academy of Social Sciences, said the
plan to restrict hot money to a "pool" was "wishful theoretical talk". "An
unprecedented scale of hot money has been flowing into China in recent months,
pushing up prices from stocks to cotton, sugar and Chinese herbs," said Li, who
researches hot money from monitoring activities in more than 100 illegal banks.
Robert Subbaraman, chief economist of Asia excluding Japan at Nomura, said
effective means to counter hot money do not actually exist. Asian countries were
likely to adopt a mix of policies including: allowing local currency to
"strengthen appropriately"; market intervention; macroeconomic controls like
China's cooling measures to curb property market speculations; broadening
channels to allow capital outflows; and imposing strict capital account control.
A large amount of foreign capital is expected to flow into emerging markets in
coming years to benefit from their better economic fundamentals compared with
developed countries. As capital markets on the mainland, South Korea, Hong Kong
and Singapore are not big enough to absorb this gush of capital, to some extent
Asia is becoming "a victim of its success", Subbaraman said. "Asset bubble,
economic overheating and inflation were the aftermath of the capital inflows
into Asia in 1995 and 1996. But this time, we think Asian governments will
produce more creative policies," the Nomura economist said. China needed to
increase interest rates to curb capital inflows driven by US monetary easing,
the official China Securities Journal said in an editorial yesterday.
Collision video turns up the heat again
- Leak of boat incident footage threatens to further derail relations with Japan
- Images taken from a video anonymously posted on YouTube show what appears to
be a Chinese fishing vessel identified as Minjinyu 5179 (blue vessel) and what
appears to be a Japanese coastguard patrol boat seemingly colliding. The
authenticity of the video has not been confirmed. Japan said it is investigating
the leak of a video showing a collision between a Japanese coastguard vessel and
a Chinese fishing boat off the disputed Diaoyu Islands in September that
inflamed bilateral tensions. The Foreign Ministry in Beijing expressed concern
over the video, and diplomatic and military experts said the footage proved that
Japanese patrol ships had been to blame for the incident as they had sought to
contain the Chinese trawler. Forty-four minutes of video footage, posted on
YouTube yesterday morning, was widely picked up by Japanese television networks,
prompting Beijing to express concern and sending Japanese officials scrambling
to contain the damage, a week before Japan hosts an Asia-Pacific summit. The
clip appears to show the blue Chinese boat, the Minjinyu 5179, which was later
detained by Japan, colliding with a grey-hulled patrol ship as a plume of black
smoke billows from the Japanese vessel. Antony Wong Dong, president of the Macau
International Military Association, said the video had been shot in such a way
as to show the Chinese trawler intentionally crashing into the Japanese ship.
"The video obviously was recorded by a cameraman on the Japanese coastguard
boat, who used a good angle to shoot the whole process," Wong said. "We don't
know whether the Chinese trawler was provoked before the collision, but it
crashed rapidly into the Japanese ship after being circled by the Japanese
vessel, which raises doubts about whether the Chinese side was provoked or had
no other choice but to ram it." Video footage taken by the Japanese coastguard
had previously only been shown to Japanese Prime Minister Naoto Kan, security
officials and some lawmakers, but not released to the public for fear it would
worsen the spat. "I have a strong sense of crisis because our information
management is not in shape," Kan said. "It is important for both countries to
respond calmly even if such a problem arises." Japanese foreign minister Seiji
Maehara told a parliamentary committee that the Japanese government would
investigate the leak. He said the Chinese embassy in Tokyo had called Japan's
foreign ministry to check into the leak, and that China later had "expressed
concern and conveyed worry in Tokyo and Beijing through diplomatic channels".
Foreign Ministry spokesman Hong Lei said yesterday that the collision had
occurred because the Japanese coastguard was undertaking "illegal operations"
within Chinese territorial waters in the East China Sea. "The so-called video
cannot either change such a fact or cover up Japan's illegality," Hong said in a
statement on the ministry's website. Beijing-based Sino-Japanese experts said
the collision video would not harm China's international image, but would cause
more domestic problems for Japan. "The video showed clearly that our small
trawler was contained by at least three big Japanese coastguard patrol ships,
which is like a poor child being bullied by three bruisers," Gao Haikuan , a
specialist in northeast Asian security with the Chinese Association for
International Friendly Contact, said. "I believe our fishing boat was forced to
clash with the Japanese ship as it was under great pressure." Kan is hoping to
talk with President Hu Jintao when they attend next week's Asia-Pacific forum in
Yokohama, and both Gao and Wong said the footage might have been leaked by
Japanese right-wingers seeking to derail the talks. Jiang Lifeng , former
director of the Chinese Academy of Social Sciences' Institute of Japanese
Studies, said the video had also pushed Kan into an embarrassing position.
"Actually, both Kan and Maehara decided not to make the video public as they
wanted to improve ties with China," Jiang said. "However, the video dragged them
back into the crisis, ruining their plan."
Washington plan 'like a planned economy' -
China pushed back strongly against US policies yesterday ahead of the G20
summit, saying Washington's plan to impose current account targets resembled a
"planned economy". The remarks by Cui Tiankai , a deputy foreign minister
(pictured), was the first high-level official stance from Beijing on the issues.
"We believe a discussion about a current account target misses the whole point,"
he said. The United States proposed at the G20 finance ministers' meeting last
month that countries should cap current account surpluses or deficits at 4 per
cent of gross domestic product as part of efforts to rebalance the global
economy. "Of course, we hope to see more balanced current accounts," Cui said.
"But we believe it would not be a good approach to single out this issue and
focus all attention on it. "The artificial setting of a numerical target cannot
but remind us of the days of planned economies." Economist Andy Xie said it was
impossible for the G20 to settle the dispute over trade surpluses. "[The]
current international currency mechanism will certainly lead to such results,"
he said. In a briefing on China's outlook for the G20 summit in Seoul next week,
Cui said China would closely monitor the impact of the Federal Reserve's plan
announced this week to buy US$600 billion of US government bonds to stimulate
the economy. "They owe us some explanation," he said. "I've seen much concern
about the impact of this policy on financial stability in other countries. "As
the main issuer of a reserve currency, we would hope that it [the US] adopts a
responsible position." Xie said the hot money would flow into Hong Kong's stock
market and added: "That explains why the Hang Seng index has remained robust
lately." Economist Dr Yi Xianrong , from the Chinese Academy of Social Sciences,
said the American bonds might drive up commodity prices. "Excessive currency
issuing will increase China's import costs and impose more inflation pressure,"
he said. Yi said the impact on China should be limited and controllable. He
added: "US$600 billion is about 3 per cent of the US GDP. For a reserve
currency, it's not a huge amount of money." In the briefing Cui also rejected
attempts by other countries to set targets for yuan appreciation. "That would
indeed be asking us to manipulate the renminbi's exchange rate, and it is
something that we will, of course, not do," he said. China has resisted calls
from other nations to let market forces set the value of the yuan. The US in
particular has said China keeps its currency artificially cheap, giving its
exporters an unfair advantage. Cui said Beijing would keep the door open to
discussions with Washington, adding he was confident the relationship of the
world's two largest economies will remain healthy.
Can
you prevent your dollar from shrinking in a coming flood of money? Yes, say
experts. Put your money in yuan fixed deposits to offset effects of the second
round of quantitative easing - or QE2, a move by the US Federal Reserve to pump
US$600 billion (HK$4.68 trillion) into the economy. That's because the Chinese
government will safeguard the yuan. This move should be a priority for those who
like to be conservative with their investments, argues Mo Pak-hung, an associate
economics professor at Hong Kong Baptist University. "The yuan is most likely to
be allowed to appreciate sufficiently against the US dollar by the Chinese
government in the near term," Mo said. "The relatively low risk and attractive
interest rate makes yuan fixed deposits a good option for investors to maintain
their purchasing power." For those who can tolerate risks, Grand Finance Group
analyst Ken Lo Chi-ming suggests buying property for personal use. QE2 presents
a powerful backdrop for assets price inflation as it is widely expected to boost
inflows to the region, Lo said. "The SAR government's measures in curbing
property price rises will be effective in two years. [In the meantime] Hong Kong
will continue to see an uptrend in property prices." During QE1 in 2009, Hong
Kong was flooded with capital which, in the fourth quarter, exceeded 40 percent
of GDP. CCB International managing director Peter So Kwok-kin says people must
avoid holding too many long-term assets as they may become losers due to
unforeseen market changes. Stocks like Tracker Fund, H shares or Hong
Kong-listed firms with mainland equity would also be a wise choice, says Lingnan
University economics professor Ho Lok-sang. "The shares of large listed
enterprises with stable dividend records and an accountable management will
guarantee better returns," Ho said. Hang Seng Investment Services chief analyst
Mark Wan Chuck-pui said the Fed launched a slightly larger QE than what the
market expected as it wanted to give a clear signal of its desire to see the
greenback slide only gradually as this will help moderate inflation. Wan also
said that foreign currencies will appreciate, and "I like the euro most as it is
the largest currency besides the dollar. With a falling dollar, the euro may
trend towards 1.46 to 1.48." With one euro currently worth about US$1.42, Wan
said there is an upside. For those chasing high interest returns, the Australian
dollar is also appealing.
Hong Kong customs officer injured
in an anti-smuggling operation received organ donation from fellow officer to
save life - A customs officer injured in an anti-smuggling operation was
yesterday snatched from the jaws of death when a colleague donated part of his
liver. Yuen Wai-cheung's liver was working at only 20 percent capacity, making
his condition life- threatening, before receiving the organ donation from fellow
officer Simon Hui Sai-man. Yuen, 39, was moved to the intensive care unit of
Queen Mary Hospital at 4pm yesterday following a 13-hour operation. Hui, 40, is
listed in a stable condition while Yuen is under observation. "I felt like I was
riding a roller coaster," Yuen's wife said. "I would not have made it through
without the support of so many people." Yuen was transported to the operation
room at 11pm on Wednesday after tests showed Hui's liver was a match. Relatives
of both Hui and Yuen then spent the next 13 hours anxiously waiting for news of
the operation. They were joined by colleagues from the Customs and Excise
Department. At noon yesterday, applause broke out at news that the operation had
gone well. Lo Chung-mau, head of the liver transplant team at the University of
Hong Kong and Queen Mary Hospital, said Hui lost a little blood but was eager to
know Yuen's condition as soon as he had awakened from the anesthetic. Chief
Executive Donald Tsang Yam-kuen sent letters to both Yuen and Hui. He hailed
Yuen as a role model for all civil servants. "You were fearless in face of
danger. You are a role model for civil servants. I hope you will rest and get
well soon so that you can continue to serve members of the public," he wrote. In
the letter to Hui, Tsang said he deeply appreciated his donation and added
everyone in Hong Kong will be proud of him. Hui, a bachelor, was one of 70
officers and citizens who offered to save Yuen's life after his liver was badly
damaged during an anti-contraband cigarette operation in Tseung Kwan O last
Thursday. However, only a few turned up for the suitability test as many were
deterred by their family members, Lo said. Sources said Hui, who was on
vacation, had rushed to the hospital after learning the news. "Everyone is
behind Hui. We are happy he made this decision," a relative of Hui said. The
lack of a donor until the last hours underlines the problem with organ
donations. Some 1,600 people are estimated to be waiting for transplants each
year, but only a few dozen are donated.
New hospitals chief outlines three
priorities - Dr Leung Pak-yin, chief executive of the Hospital Authority -
Manpower shortages, staff morale and long working hours will be the top three
topics to be tackled by new Hospital Authority chief executive Dr Leung Pak-yin.
Leung, 51, who has been the authority's director for quality and safety since
2007, will assume his new post next Monday on a three-year contract. "This is a
top honour. I will give my best in these three years," said Leung, who met the
press yesterday afternoon with the authority chairman Anthony Wu Ting-yuk, who
was also the chairman of the chief executive selection committee. Leung will
succeed Shane Solomon, who quit suddenly in July for family reasons. Leung
specialises in public health and was the founding controller of the Department
of Health's Centre for Health Protection, which was set up after the Sars
pandemic. Before that, his posts included deputy director of health and deputy
director of Food and Environmental Hygiene. He was loaned to the authority in
2007 and has worked at his current post since then. He resigned from the civil
service in order to assume his new role. Leung said manpower shortages in some
specialities was the most urgent issue to be dealt with, but that there were
issues that could only be solved in the long term, such as doctors' long working
hours and staff morale. "I hope I can tackle these problems by communicating
more with frontline staff," he said. Unions welcomed Leung's appointment, but
doubted if there could be any major changes. Public Doctors' Association
president Dr Loletta So Kit-ying said she was confident in Leung's ability to
lead. "He has worked in the Department of Health for a long time, and he also
has a few years of work experience in the authority," she said. "He has a clear
understanding of our operations." She said Leung had already contacted her, and
that he would meet the association's representatives on November 15. Frontline
Doctors' Union vice-chairman Seamus Siu Yuk-leung said he hoped some
improvements could be achieved on the issue of manpower shortages, but he did
not have high hopes. "Changing the structure of manpower distribution will
certainly generate a lot of opposition. It is not something that can be solved
in three years," he said. Patients' Rights Association spokesman Tim Pang Hung-cheong
said he hoped Leung would be able to learn from previous medical blunders and
improve service quality and efficiency. Secretary for Food and Health Dr York
Chow Yat-ngok also welcomed the appointment, and said he would work closely with
the authority on health care reform. Leung was chosen from a shortlist of four
candidates following an international headhunting exercise. His salary will be
HK$4.3 million a year.
Hang Lung Properties (SEHK: 0101) said
on Friday it planned to raise a net HK$10.9 billion (US$1.4 billion) in a share
sale to finance its expansion in China. In a filing with the Hong Kong bourse,
the property firm said it would sell 293.86 million shares to its controlling
shareholder, Hang Lung Group (SEHK: 0010), at HK$37.48 each, or a 7 per cent
discount to the previous close. Hang Lung Group will subscribe to the new shares
on completion of a sale of the same amount of existing shares of Hang Lung
Properties at the same price to third party investors, the statement said. Hang
Lung Group’s shareholding in Hang Lung Properties will be reduced to 48.96 per
cent after the deal, from 52.41 per cent. Hang Lung Properties was raising as
much as US$1.3 billion in a share sale by offering 269.4 million shares at a 6.8
per cent to 8 per cent discount to Thursday’s closing price, according to a term
sheet seen by reporters.
Bloomberg applauds Chinese mayors at
HK meeting - New York City Mayor Michael Bloomberg on Friday praised Chinese
cities for taking part in a climate change coalition that he is set to lead,
saying he is heartened that they are no longer blinded by the pursuit of
economic growth. Bloomberg is scheduled to take over as chairman of the C40
group of cities from Toronto Mayor David Miller at the end of a two-day meeting
in Hong Kong on Saturday. On Friday, he and Miller took part in a panel
discussion with the mayors or deputy mayors of the Chinese cities Changsha,
Shenzhen and Kunming, as well as the leader of Johannesburg. Asked after the
session what impressed him the most about the discussion, Bloomberg told
reporters: “I think the most impressive thing this morning was that they were
there. Ten years ago, they would not have been there.” Noting poverty is still
widespread in the country, the billionaire founder of the financial information
company that bears his name said “job creation, economic development has always
been modern-day China’s No. 1 priority”. “For the first time, there is an
understanding in China that the environment is something that they cannot walk
away from, they can’t treat as a second-class citizen any more. When you’re
starting to get your rivers polluted and your air unfit to breathe, you’ve got
to do something about it,” Bloomberg said. “It may be the beginning but if you
want to get a hand of cards to play you’ve got to come to the table, and they
are certainly doing that,” he added. Changsha Mayor Zhang Jianfei said the
central city is scaling back the number of high-polluting factories, building
two subway lines and a light rail line and promoting electric buses. It has also
banned hotels from giving out disposable toiletries. Vice-Mayor Tang Jie said
Shenzhen was making sure that new buildings use energy-efficient electrical
equipment and developing its electric car industry. The southern city is home to
electric car maker BYD Autos, which counts US billionaire Warren Buffett among
its investors. In southern Kunming, Vice-Mayor Wang Daoxing said officials are
promoting the use of solar power in a city that enjoys extended daylight and
cleaning up neighbouring Dianchi lake. However, on a national level, Beijing
says in negotiations for a global treaty to curb greenhouse gas emissions that
the US and other wealthy countries should make bigger cuts because they have
produced more pollution historically. Later Friday, Bloomberg was scheduled to
visit an industrial park and drug company in Shenzhen and meet with railway
officials working on a high-speed line between the city and neighbours Hong Kong
and Guangzhou. Environmental activists also applauded the Chinese efforts.
Kunming’s push for solar power will inspire other Chinese cities to follow,
while Shenzhen’s green building campaign is significant because of the large
scale of construction there, said Greenpeace Hong Kong campaigner Prentice Koo.
A boat flow on the river where Walt
Disney Co's theme park will be built in Shanghai, Nov 5, 2010. The Walt Disney
Company has signed an agreement with a Shanghai company for the establishment of
a Disneyland theme park in the city, bringing its long-planned park in the
mainland closer to fruition. The deal was reached with Shanghai Shendi Group,
which was specifically created for the development of the Disneyland project,
the official Xinhua news agency said on Friday. Disney confirmed the Xinhua
statement and said it was still awaiting final approval from China’s central
government regarding the incorporation of the related joint venture companies
and the completion of regulatory procedures. “For quite some time, we have been
involved in discussions with the Shanghai government about building a Disney
theme park. We can confirm the statement from the Shanghai government that we
have taken another step forward in the approval process,” a Disney spokeswoman
said in an emailed statement to Reuters. Shanghai’s Disneyland is expected to
cover around 4 sq km and cost about 25 billion yuan (US$3.75 billion), Xinhua
said. Disney itself gave no further details. It was not clear what the ownership
structure of the park would be like, but state media reported last year that an
investment company controlled by the Shanghai municipal government would own a
majority stake in the park. Disney received approval to build a Disney theme
park in Shanghai a year ago, but discussions about the specifics have been
ongoing and few details have been released publicly. Disney has long sought to
build in Shanghai, a wealthy city of about 20 million people that is ringed by
the prosperous Yangtze River Delta, home to tens of millions more potential
visitors. It was less enthusiastic about building near Beijing, which has fewer
large population centres in the immediate vicinity. Disney’s foray into the
China market has been mixed so far, with its Hong Kong Disneyland park reporting
a loss last year.
Hu backs Sarkozy's G20
reform plan - Nicolas Sarkozy and Carla Bruni Sarkozy greet Hu Jintao and his
wife Liu Yongqing at the Elysée Palace in Paris on Thursday. President Hu Jintao
and France's Nicolas Sarkozy voiced joint support on Thursday for reform of the
global monetary system and pledged close co-operation as Paris prepares to take
over the G20 presidency. As Hu kicked off a two-nation European visit with a
slew of French aircraft and nuclear fuel contracts, the two leaders agreed on a
need to adopt coordinated macroeconomic policies, to fight volatility in
commodities markets and to look at reforming institutions such as the
International Monetary Fund. “China supports France in its efforts to host a
successful G20 summit next year and aims to keep close communication and
coordination with France to prepare its success,” Hu said in a speech before a
formal dinner for the leaders and their wives. Hu and Sarkozy said in a joint
statement the Group of 20 economic leadership forum should recast economic
growth and the international financial system on solid foundations. In a toast
before a banquet table adorned with red and gold decorations, Sarkozy said he
wanted to “tightly associate” China with France’s work as G20 president from
mid-November. “I will be able to count on China’s backing to help push progress
on three essential fields for the good of the world: reform of the international
monetary system, the question of the volatility of commodity prices and the
reform of global governance,” he said. Hu’s three-day visit to France, after
which he travels to Portugal, comes at a time when EU leaders have closed ranks
with Washington in urging China to allow its yuan currency to appreciate more
quickly, unsettling relations between Beijing and Brussels. China hopes the trip
will ease those strains ahead of a G20 leaders summit in South Korea next week
which will focus on global economic imbalances. Sarkozy’s government, which
takes up the G20 baton after the Seoul summit, wants to build common ground for
its ambitious agenda of reforming the global monetary system, while avoiding
alienating China by harping on about the yuan. Paris has said its G20 agenda of
diversifying global currency reserves away from the dollar and stabilising
commodity markets hinges on the support of the world’s No. 2 economy. Sarkozy
and his wife, former model Carla Bruni, received Hu with military honours at
Paris’s Orly airport. Hu’s cavalcade, escorted by a formation of motorcycle
escorts and the Republican guard on horseback, then swept down the historic
Champs Elysees en route to the exclusive George V hotel. “China should not be
seen as a risk but an opportunity,” Sarkozy said ahead of Hu’s arrival. “It’s
not by reproaching people for things that you make progress.” Hu oversaw the
signing of US20 billion worth of corporate investment contracts and pledged to
double China’s annual trade with France to US$80 billion over the next five
years, Chinese Deputy Foreign Minister Fu Ying told reporters. Chinese officials
signed four contracts with EADS unit Airbus and deals with Total for a
petrochemical plant and with Areva for a nuclear-fuel treatment factory and 10
years of uranium. The Airbus deals were signed with China Southern Airlines,
China Eastern (SEHK: 0670), Air China (SEHK: 0753, announcements, news) and
state agency CASC. French officials billed it as the biggest contract signing
ceremony by China with a European leader, even though 36 of the Airbus planes
were repeats of old orders. The trip caps a rehabilitation of Sino-French ties
since Sarkozy outraged Beijing in 2008 by meeting the exiled Dalai Lama,
prompting some Chinese citizens to boycott French goods. France, one of the
first Western nations to open ties with Communist China in 1964, has carefully
avoided antagonising Beijing ahead of the visit, scarcely reacting to last
month’s award of the Nobel Peace Prize to dissident Liu Xiaobo. “We have the
feeling the objective of this visit is to sell Airbus planes and nuclear
reactors to China, which is good, but it is a detriment to human rights,” said
Jean-Francois Julliard, secretary-general of Reporters Without Borders, one of
several groups that protested in Paris against Hu’s arrival. French telecom gear
maker Alcatel-Lucent announced 1.2 billion euros in deals with Chinese phone
companies and insurer Axa also sealed deals. Sarkozy gave Hu six bottles of the
finest Bordeaux grand cru as a gift, and gave the Chinese first lady a baccarat
crystal containing perfume. On Friday, Hu will travel to the Mediterranean
resort of Nice, where afternoon talks are expected to centre on foreign affairs,
including Iran’s nuclear ambitious, the situation in Afghanistan and Pakistan,
and the development of Africa, where resource-hungry Chinese companies are
investing heavily. On Saturday, Hu flies to Portugal where President Anibal
Cavaco Silva, struggling to rein in his country’s debt, will hope for a repeat
of a Chinese performance in Greece that boosted that economy with promises of
investment and debt purchases.
Stronger yuan bites into trade fair
receipts - Christmas shopping started early at the China Import and Export Fair
in Guangzhou, with attendance slightly lower this session, but sales on the
upswing. A strengthening yuan and skyrocketing raw material prices kept buyers
away from the mainland's largest and oldest trade fair, according to a senior
official. The autumn session of the China Import and Export Fair, or the Canton
Fair - as it has been known since its inception in Guangzhou in 1957 - ended
yesterday. It registered 199,266 visitors, 2.3 per cent fewer than its spring
session in April, Liu Jianjun, a Canton Fair spokesman and deputy
director-general of the China Foreign Trade Centre, said. The biannual show is a
key barometer for the mainland's exports. The yuan's appreciation, an increase
in raw material prices and labour costs, worker shortages and the slower than
expected economic recovery in the United States and Europe had bogged down
exports of late, Liu said. He said sales at the trade show showed an
improvement, but had yet to return to the levels before the global financial
crisis. Fewer Hong Kong manufacturers took part as exhibitors because a new rule
excluded participation by service providers. A Chinese Manufacturers'
Association spokeswoman said the trade body did not attend the fair this year
because of this. Two purchasing managers' indices (PMI) point to unexpectedly
rapid growth in manufacturing activities last month, driven largely by
ballooning input prices. Prices of raw materials such as sugar, cotton and corn
surged, with sugar rising 25 per cent in the past month and cotton prices
jumping worldwide. The PMI, released by the China Federation of Logistics and
the National Bureau of Statistics, leapt from 53.8 in September to 54.7 in
October. A second PMI, from HSBC Holdings (SEHK: 0005, announcements, news) and
Markit Economics, jumped from 52.9 to 54.8. A Hang Seng Bank (SEHK: 0011,
announcements, news) research report yesterday said it expected a fresh round of
interest rate rises if property and consumer prices went higher. It said
property prices had been hovering around peak levels since April. However, the
People's Bank of China is in a dilemma as higher interest rates would fuel
capital inflows and risks of consumer price inflation. Hang Seng Bank forecast
the yuan would strengthen to 6.60 to the dollar at the end of this year and 6.30
by the end of next year from 6.83 at the end of last year and 6.67 yesterday.
The surging Australian dollar is
pushing more and more Hong Kong and mainland students to look elsewhere for
their tertiary education. And the number is set to grow even more, Australia's
education minister, Chris Evans, admitted. The students are now opting for
countries such as Britain and the United States, which were once deemed too
expensive. China is by far the largest market for Australia's tertiary education
revenue, valued at A$18.6 billion (HK$146.16 billion). "Some of the lead
indicators are that we are going to get a serious drop in Chinese numbers, but
how many at this stage we do not know, and for how long is yet to be
determined," Evans said. He said Australia, because of its appreciating
currency, is being forced into a "very competitive" market against a "very
aggressive" marketing campaign from the United States. Hong Kong education
consultant Cheng Wing- chung said more parents have consulted them about
alternative destinations although Australia remains a popular option. "Many
students with not-so-good results are attracted by the foundation programs in
Australia as it is relatively easy for them to progress directly to universities
if their results are acceptable," Cheng said. Cheng estimates there are 8,000 to
9,000 Hong Kong students who are pursuing tertiary education in Australia.
International Studies Service Centre general manager Steve Lo Kwok-cheong also
said fewer Hong Kong students are choosing Australia. "The appreciation of the
Australian dollar has led to a rise in fees. It is now as high as or higher than
Britain," he said. He said tuition fees in prestigious Australian universities
now cost A$30,000, while it is only 10,000 (about HK$126,000) in British
universities. He said Australia's tougher new immigration rules is another
reason for the decline because it is now harder for students to get a permanent
resident visa after graduation. Lo said Canada is catching up as it allows
graduates to stay in the country for their internship, giving them a better
chance of becoming permanent residents. Monash University in Melbourne and
Macquarie University in Sydney said enrollment numbers of overseas students
could fall by 10 percent or more next year. Eliza Yiu Ka-ki from Hong Kong, who
is taking an International Business Masters course at Monash after finishing an
undergraduate program in Brisbane, said she feels discouraged because of the
tougher immigration rule.
PLA's 7 J-10 jet fighters with new
coating to make debut - Seven new J-10 jet fighters of Bayi Aerobatic Team with
new coating, were to make their debut in the 8th China International Aviation &
Aerospace Exhibition in Zhuhai China.
Hot money heads to Hong Kong as US Fed
frees up billions - HKMA on standby to tackle bubbles - Norman Chan , Chief
Executive of the Hong Kong Monetary Authority - Get ready for a new flood of hot
money. Hong Kong's de facto central bank has warned that the US Federal
Reserve's latest US$600 billion attempt to boost the world's biggest economy
will probably add to the asset and housing bubble here, but says it stands ready
to act. The Hong Kong Monetary Authority said it would re-enter the city's
red-hot housing market as required after the Fed announced its latest round of
quantitative easing, or QE2, early yesterday in Washington. "We will take
measures that are specific to the housing market if necessary," said Norman Chan
Tak-lam, HKMA chief executive, just hours after the Fed announcement. Under the
plan, the Fed will buy US government debt, or Treasury bonds from banks,
effectively giving them cash to lend in the market. Buying so many bonds
effectively lowers interest rates and is intended to encourage people to take
out a mortgage or other form of loan to revive the US economy - at the risk of
creating problems further afield in markets like Hong Kong. "The risk of an
asset bubble in Hong Kong's property market is rising," Chan said. "Everybody
should stay alert. Banks should manage their risks and be fully prepared, and
homebuyers should not buy property just because interest rates are low."
Financial Secretary John Tsang Chun-wah echoed Chan's concerns about asset
bubbles, and three commercial banks in Hong Kong have raised mortgage rates this
week. The Fed has already spent about US$1.7 trillion from 2008 to earlier this
year to take bonds off the hands of banks and stabilise them, and restore
confidence to the market, but failed to boost the economy or create jobs. "At
the same time, excessive liquidity has flowed into emerging markets where the
economic outlook is more favourable, creating pressure on exchange rates,
consumer price inflation and asset prices," Chan said. As hot money continues to
flow in, Hong Kong's interest rates would stay close to zero, increasing the
risk of an asset bubble, Chan said. Some countries - including Australia, India
and China - have lifted interest rates to head off inflation and asset bubbles.
But Hong Kong's currency peg means its rates have to track the Fed. "The Fed is
printing money for other people - not just for the US," said Louis Wong Wai-
kit, director of Phillip Capital Management. "Like Japan, which has had numerous
rounds of quantitative easing over the past decade, but still can't revive its
economy because people just take the cheap money and invest in emerging markets
where the returns are higher. QE2 will probably create a bubble in Asia and Hong
Kong rather than boosting the US economy." The Hang Seng Index yesterday rose
390.96 points, or 1.62 per cent, to close at 24,535.63. The HKMA introduced
measures in October 2009 and August this year to curb luxury residential
mortgage lending, but prices have still topped the highs they reached in 1997,
when the city last had a housing bubble. Chan rejected the option of removing
the Hong Kong dollar's 27-year-old peg to the greenback, saying it had been "the
pillar for monetary and financial stability in Hong Kong. We have no plan to
change it". Another banker said QE2 would be good news for short-term investors.
"Stock and property markets are likely to continue to do well for the moment."
Tsang hits out at care-fund critics -
Don't be deterred by political posturing when contributing to the HK$10 billion
Community Care Fund. That was the message from Chief Executive Donald Tsang Yam-kuen
to business leaders yesterday. Tsang described as "illogical" criticism that the
fund is being set up to help those who are not covered by the social security
net. In a speech that touched on several issues in his recent policy address, he
told those at the Joint Business Community Luncheon to be ready to tackle
standard working hours themselves. Changes to regulate property sales are also
not meant to punish developers but to make sales more transparent, he added. In
response, Jeffrey Lam Kin- fung, who represents the commercial functional
constituency, told the government to first study the effects of the minimum wage
on business for at least two years before tackling the issue of standardized
working hours. Speaking of the care fund, Tsang urged critics to "take off their
political lens and focus on the people's needs." The fund has been described as
a tool to help Chief Secretary for Administration Henry Tang Ying-yen, who is in
charge of the project, become leader after Tsang steps down in 2012. Others said
the fund is an example of government-business collusion. "I honestly fail to see
the logic. Is it really something so objectionable when the government and the
business community work together to help people in need?" The government has
promised to match every dollar donated by the business sector to create the
HK$10 billion fund. Sources say pledges so far exceed HK$3 billion. "When it
comes to helping people, the question is not whether to do it or not, but how to
do it right and do it quickly," Tsang said. On standard working hours, he said
companies should take the opportunity to help their employees enjoy a proper
work-life balance. "This is another sacred cow we have to tackle in Hong Kong."
Tsang joked that he has too little time to read and can only catch up with the
latest news on his iPad.
New Hong Kong Hospital Authority chief
Leung Pak-yin with annul salary of US$550,000 will start Monday - Hospital
Authority director of quality and safety Leung Pak-yin would succeed Shane
Solomon as chief executive from next Monday, HA chairman Anthony Wu Ting-yuk
said on Thursday. Australian-born Solomon resigned as HA chief executive in
mid-July after deciding to rejoin his family in Australia. Leung, 51, will serve
in the post for three years with an annual salary about HK$4.3million -
equivalent to that paid to Solomon. Leung completed his medical education and
training at the University of New South Wales in Australia. He then returned to
Hong Kong where he has worked in public health and administrative medicine for
more than 20 years. He took up his current position as a Hospital Authority
director in March 2007. Before that, Leung was a senior official with the Food
and Environmental Hygiene Department. Speaking to local media on Thursday, Leung
said he was greatly honoured to become HA chief executive and he would work to
improve the standard of public medical services. “The most important thing is we
have a strong team that will work with me in solving problems,” he said.
The United States Federal
Reserve launched a fresh effort to support a struggling US economy on Wednesday,
committing to buy US$600 billion in government bonds.
The former chairman of Sun Hung Kai
Properties (SEHK: 0016), Walter Kwok Ping-sheung, who was recently removed from
a key trust controlling the property empire, has teamed up with Cheung Kong
(Holdings) (SEHK: 0001) to develop a residential project in Ho Man Tin. The move
caught the market by surprise as Li Ka-shing's Cheung Kong is seen as the only
serious competitor to SHKP in Hong Kong's real estate market. The two companies
now account for seven out of 10 new homes sold in the city. The development
comes a week after Kwok announced that he could agree to leave the company if
his two brothers paid him a "reasonable" price - something more than HK$20
billion, as he indicated. Kwok said he was offered HK$20 billion to settle the
dispute over the family's assets, which include a 42.4 per cent stake in the
HK$371.37 billion SHKP empire. The joint-venture project is to be built on a
site in Argyle Street, Ho Man Tin, which is the former Civil Aid Service
Training Centre. The site was bought by Cheung Kong at a government land auction
in August for HK$4.1 billion, or HK$10,399 per square foot - the second
costliest land in Kowloon in terms of price per square foot. According to Next
Magazine, Cheung Kong bought the site through a company called Bradford
Investments, which was formed in 2007. Directors of the company include Cheung
Kong deputy chairman Victor Li Tzar-kuoi and the group's directors, Grace Woo
Chia-ching and Justin Chiu Kwok-hung. Kwok joined as a director on August 17,
the same day Cheung Kong won the site at the land auction. Kwok, through his
spokesman, confirmed his investment in the venture. Cheung Kong declined to
comment, as did Sun Hung Kai Properties. The spokesman said the investment had
the blessing of Kwok's mother Kwong Siu-hing, who is also the chairman of SHKP.
"Kwok is a long-time friend of Victor [Li]," the spokesman added, citing the
co-operation between SHKP and Cheung Kong on the West Kowloon development (SEHK:
0034). The two companies formed a joint venture - one of the three consortiums
to bid for the much-criticised West Kowloon cultural project - in early 2000.
There was strong resistance to the government's idea of a single developer
getting the whole project. The public also objected to the high development
density that the developers had proposed. The Executive Council eventually
scrapped the "single-developer model" for the controversial project in 2005.
Chief Executive Donald Tsang Yam-kuen
told businessmen yesterday to move with the times on corporate social
responsibility or risk having changes forced on them. While saying his
administration would be careful over studying the introduction of standard
working hours, Tsang stressed that rising public expectations of social justice
meant workers expected a fair deal. Addressing business chambers at a lunch to
discuss the policy address he delivered last month, Tsang repeatedly highlighted
the changing nature of Hong Kong society with people wanting more from the
business community. "Times are changing. In recent years, business success has
sometimes been equated with business excess," he said. "Social tension is
increasing because the fruits of business prosperity (SEHK: 0803, announcements,
news) have not been trickling down to the grass-roots level. Some people feel
they are being ripped off. "It is better to instigate change than to have change
foisted upon you." Amid intensifying public sentiment against the rich and
powerful, Tsang cited several measures in his policy blueprint, including the
imminent introduction of a minimum wage and plans to study the introduction of
standard working hours. Despite having a capitalist economy, social change
warrants arbitrary action by the government "to make sure profits have to be
shared properly at some stage", Tsang said when responding to questions on the
impact of policies on the business sector. The "overly long working hours" of
the workforce was hurting not only workers but also business productivity, Tsang
said, who joked that his 18-hour working day left him no time to learn how to
use his iPad. He urged discussion by the business community, but warned that he
would "not bury my head in the sand". On the tightening of regulations for
property sales, Tsang said it was not designed to punish property developers but
to stop buyers being misled. Tsang also dismissed criticism of the HK$10 billion
Community Care Fund - designed to help the poor - as being collusion between
officials and business leaders. The matching fund, which is headed by Chief
Secretary Henry Tang Ying-yen, is seen by some as a political vehicle to help
Tang's possible bid to fill Tsang's shoes in a 2012 election. Ivan Choy Chi-keung,
a political scientist at Chinese University, said Tsang's hardline speech was in
line with a strategy adopted by the government in recent weeks to boost its
popularity. "Donald Tsang has realised that by hitting hard at property
developers and businessmen, he can be in tune with public sentiment, thus
raising his popularity," Choy said. "He has no option but to identify with the
people to avoid becoming a lame duck in the remaining two years in office."
Hong Kong New green jail offers a more
humane look - An award-winning design shows that prisons do not have to be dark,
dank and airless - Prison images (clockwise from left): a cell block;
a“green”roof (also bottom, left); staff quarters; visitor registration centre;
bird's-eye view of complex; rooftop solar panels; an indoor recreation hall.
Admiralty MTR due for
facelift - Office workers in Admiralty will lose one of their favorite lunchtime
hangouts for the next few years, when Harcourt Garden closes to make way for
construction of the Admiralty MTR station extension. The garden, which is
located on top of the future extension, would be closed from early next year
until 2015, the MTR Corporation (SEHK: 0066) said yesterday. But an elevated
garden would be restored after construction is completed and its usable area
increased by 70 per cent, said Peter Leung Man-fat, design manager of the MTR's
South Island Line. The new Admiralty station will be a major interchange with
two additional lines - the South Island Line and the Sha Tin-Central Link. After
construction is completed in 2015, the total area will be more than doubled,
from 9,000 square metres to 20,000 square metres. The platforms serving the new
lines will be linked to the existing platforms by a series of escalators, and
Leung said it would be a three-minute walk between the old and the new
platforms. The extension will have six floors, and on the bottom will be the
platforms of the South Island Line. On top will be the platforms for the Sha
Tin-Central link. The extension will be covered by a large glass pane that will
allow daylight to enter, and will include more than 30 escalators. "The new
lines will be able to attract some passengers who are now using the Tsuen Wan
line. Admiralty station will not be more crowded," he said. Construction would
be designed to minimise disruption. Despite the MTR's reassurance that Harcourt
Garden would be restored and there were no plans to add commercial elements to
it, some office workers still lamented the loss. Wong Sze-mei, who regularly has
lunch in the garden, said she would now be forced to dine indoors. "As an office
worker I already spend too much time indoors. It would be a loss if I cannot
have lunch or simply stroll in the park, just to breathe some fresh air," she
said.
Chinese president arrives in
Paris for state visit - Chinese President Hu Jintao (L, front) and French
President Nicolas Sarkozy inspect the guard of honor during a welcoming ceremony
at the airport in Paris, France, Nov. 4, 2010. Hu arrived in Paris Thursday for
a state visit to France. Chinese President Hu Jintao arrived in Paris Thursday
for a state visit to France, aimed at promoting long-term and stable development
of comprehensive strategic partnership between China and France. Later in the
day, President Hu is expected to hold talks with his French counterpart Nicolas
Sarkozy on bilateral ties and major world and regional issues of common concern,
Chinese officials said. "In the face of complicated and profound changes in the
international situation, Hu and his French counterpart, Nicolas Sarkozy, would
discuss how to work together to highlight the strategic nature and the overall
importance of the partnership between the two countries," said Kong Quan,
Chinese Ambassador to France, in an interview with Chinese reporters last
Monday. "The two sides will also explore and decide ways of bilateral
cooperation which lays stress on the spirit of times and creativity," he added.
The ambassador said that the two countries will sign a number of cooperation
deals during Hu's visit. Since China and France set up diplomatic ties 46 years
ago, bilateral relationship has played a leading role in relations between
Western countries and China because of its pioneering nature and strategic
significance. France is China's important trading partner in the European Union.
The two-way trade was registered at 38 billion U.S. dollars in 2008. Although
bilateral trade fell to 34.4 billion dollars in 2009 due to the international
financial crisis, it has increased significantly since the beginning of this
year. In the first nine months, the trade volume was recorded at 33 billion
dollars. Hu paid his first state visit to the European nation in January 2004,
during which Hu and French leaders agreed on lifting bilateral ties to the the
level of comprehensive strategic partnership. Hu met Sarkozy in Beijing in April
this year when the French leader was on his second state visit to China. The two
leaders had "candid, friendly and productive" talks on deepening the
China-French comprehensive strategic partnership, and reached "many important
agreements." "China is satisfied with the overall development of bilateral
relations, but we believe that our ties should reflect the change of the times,"
said Chinese Vice Foreign Minister Fu Ying last week at a press briefing. She
said China hopes that through dialogue between Hu and Sarkozy, the two countries
would increase mutual understanding and trust and promote a partnership of
equality and mutual respect between the two big powers. China and France have
conducted fruitful cooperation in civilian nuclear energy and aviation, and the
two sides are discussing how to broaden cooperation in these fields, said the
vice minister. As France will take over the chair of the Group of Twenty (G20)
in mid-November, Fu said, the two leaders will exchange views on the upcoming
Seoul summit and the future development of the G20 mechanism. Hu will also pay a
state visit to Portugal following his France trip.
Lamborghini gets jump start in China
high-end sector - A Lamborghini Murcielago LP 670-4 Superveloce automobile on
display prior to the 79th Geneva International Motor Show. With customers as
young as 18 years old in China, the automaker is stepping up its sales force
throughout the country.
Seafood sector rides on growing Chinese market - Officials present the 10
millionth salmon from Norway since 1985 in Shanghai. China is forecast to become
the world's largest market for seafood products this year, overtaking the United
States. More overseas seafood producers and supplies are eyeing the Chinese
market, following its growth in the past few years. "This year, China's
international seafood trade will be worth more than $17 billion. It will likely
overtake the United States and become the world's largest seafood-trading
country," Peter Redmayne, president of US-based Sea Fare Expositions Inc, said
on Tuesday at an industry event in Dalian, Liaoning province. The Chinese market
is getting stronger because the country is becoming more prosperous and more
people can afford both domestic and imported seafood, Redmayne said. "Chinese
people are importing more and more seafood even though the prices of some
products, such as salmon and king crab, are rising," he said. Norway alone
exported 19,300 tons of salmon, valued at 895 million yuan ($133.97 million), to
the Chinese mainland and Hong Kong in the first eight months, figures released
by the Norwegian Seafood Export Council (NSEC) showed. The imports increased 35
percent in volume and 53 percent in value year-on-year. "Some 130,000 tons of
Norwegian seafood were imported to China in 2009, valued at 1.9 billion yuan,"
Ashild Nakken, director of NSEC China, told China Daily. "2010 could become
another record-breaking year as the value already reached 1.9 billion yuan in
September." Nakken said China will soon surpass Japan and become the most
important market in Asia for Norwegian salmon. "We are very happy that the
Chinese people like Norwegian salmon. They buy more and pay more," she said.
Compared with the rising imports, China's seafood exports have been falling
slightly since 2007, Redmayne said. "It's partly because of the rising labor
cost. Also, some imported products for reprocessing are not exported but stay in
China for domestic consumption," Redmayne said. Liaoning Province Dalian Ocean
Fishery Group Corp (Liaoyu Group), previously an export-oriented pelagic fishery
corporation, is now paying more attention to the domestic market. "Exports are
becoming less competitive with the potential appreciation of the yuan and rising
labor costs. We are now rebalancing the two markets. We not only sell our own
products in the domestic market, but also act as agents for overseas seafood
products," said Lu Daqiang, vice-general manager of Liaoyu Group. The 15th China
Fisheries and Seafood Expo, held from Nov 2 to 4, is organized by the
agriculture council of the China Council for the Promotion of International
Trade. Sea Fare Expositions Inc is the overseas co-organizer of the expo. A
record number of overseas exhibitors are attending this year's expo, organizers
said. It features 700 companies from more than 30 countries and regions,
including the US, Australia, Russia, Vietnam and Japan.
Clear skies guaranteed for Asian
Games Guangzhou China - Authorities in Guangzhou are preparing to use planes and
rockets to disperse rain clouds and ensure clear skies for the Asian Games which
start next week in Guangzhou. Xinhua news agency reports that the city is
prepared to do whatever it takes to ensure the November 12-27 games are
rain-free. Weather in the city is usually mild and sunny at this time of year,
but authorities appear to be taking no chances China claims it employed weather
modification techniques to prevent rains from dampening the 2008 Olympic Games
in the capital Beijing. A common method is to seed storm clouds with dry ice or
silver oxide released from aircraft or shot from the ground to make it rain
before it can disrupt proceedings.
Polo Club looks set to score big in China
- New Tianjin club in the hunt for members - Rowland Wong, president of the
Tianjin Goldin Metropolitan Polo Club, expects the sport to become popular in
northern China. Mahjong losing its thrill? Backgammon becoming a bit of a bore?
Try polo, the horseback sport known as the Game of Kings. It's expected to be
the next big thing in China for the well heeled - and well mounted. The Tianjin
Goldin Metropolitan Polo Club, which is part of a large-scale property project
developed by Hong Kong-listed Goldin Properties Holdings, is being launched
today in the Binhai Hi-tech Park in southeastern Tianjin. It will be the biggest
of the very few polo clubs across a country where people are more used to
swinging a golf club than a polo mallet. "Polo is the latest trend in China. We
are confident it will be very well received by more people in northern China,
who are known for their love of horses," said Rowland Wong Kwok-ho, president of
the private club. He said the property developer was looking for sites to build
more polo clubs in two other major mainland cities. The Tianjin club site covers
890,000 square metres. It includes a polo clubhouse, two international-sized
polo fields with stabling and training for up to 150 horses, an outdoor dining
area, a hotel, a theme park and auxiliary polo sports facilities. Compared to
golf, Wong said, polo is more environmentally friendly, more fun - and also more
expensive. Memberships for the patron owners of polo teams are priced as high as
10 million yuan (HK$11.6 million) at the club. Joining the polo teams costs 2
million yuan and ordinary social members need to pay at least 200,000 yuan to
enjoy the facilities and equestrian services. The club has invited individuals
and corporates to join, but Wong declined to say how many had accepted the
offer. "We will set up a panel to assess members' applications. The only
criterion we have for our members is that he should be an honourable person," he
added. The club was targeting senior executives, businessmen and people from
multinational corporations and local government bureaus as potential clients.
The club will host its first match, the Metropolitan Polo Club Trophy, today and
more international polo tournaments, horse riding performances, outdoor
carnivals and fashion shows are expected to be staged in future. Asked why the
developer chose a polo club rather than a golf club, Wong said a polo club was
more suited to the high-end concept of the whole project and the size of the
block of land available. There are around 400 golf courses across the country.
The government has tightened approvals for golf course construction in recent
years as many of the courses have been built on farmland illegally. Polo
originated in Persia in the 5th century BC. Players on horseback score by
driving a small, white ball into the opposing team's goal with a long-handled
mallet.
Standard Chartered plans major
Chinese expansion - Standard Chartered Plc, the London-based financial services
group, will accelerate the expansion of its Chinese banking business, with the
aim of launching 40 more branches in the country by the end of 2011, said John
Peace, chairman of the board, in an exclusive interview with China Daily.
Speaking before the company's first-ever board meeting on Chinese soil, Peace
said that Standard Chartered had opened more than 60 branches in the world's
fastest-growing economy by the end of October. In this year, the bank is
planning to increase staff numbers by 20 percent, open 30 percent more branches
and expand business in China's financial market by 40 percent. "China is a key
market for our bank. Over the last two years, we have discussed ways of growing
the business in many different areas," said Peace, who added that the company
will continue its significant investment in what it regards as an important
market. "Standard Chartered is in a great position to support trades between the
Chinese mainland, Hong Kong and Taiwan," he said. In July 2009, Standard
Chartered HK became the first foreign bank to complete a two-way trade
settlement between Hong Kong and the Chinese mainland. Meanwhile, in August of
the same year, its Chinese division was the first foreign bank to be appointed
as the agent and settlement bank for yuan cross-border settlements. It now
offers yuan trade settlement services in a number of locations including Hong
Kong, Singapore, Japan, the United States, and the United Kingdom. More
countries and regions are due to come online soon. According to the People's
Bank of China, as of the end of September the accumulative settlement volume
conducted by Standard Chartered ranked first among foreign banks in the country.
The bank will focus on financial products and services that support small and
medium-sized enterprises (SMEs) in China. "It is a market that we know very
well," Peace said. He also said the cooperation with the Agricultural Bank of
China (ABC), one of the country's top four commercial banks, is an important
part of its future strategy. The collaboration brings with it the advantages
offered by ABC's large domestic distribution network of 23,000 branches and
outlets which serve about 2.6 million corporate customers and 320 million retail
customers. On June 30, Standard Chartered announced it will invest $500 million
in ABC's H shares IPO in Hong Kong. The collaboration includes international
trade corridors, SMEs and the consumer finance sectors. The core development
strategy of the bank is organic growth, but it also keeps a close eye on merger
and acquisition opportunities when they make sense financially and
strategically, Peace said. So far, the bank has no intention of entering any
other financial sector, he said. Standard Chartered recently raised a
one-for-eight rights issue of about $5 billion to strengthen its balance sheet.
Peace said this will enable the group to meet the Basel III countercyclical
buffer (the financial mechanism establishing a set of minimal capital
requirements for banks).
Chinachem wins bidding for Kowloon plot - Chinachem sales executive Ng Shung-mo
bids during an auction in Wan Chai on Wednesday for a plot of land at Inverness
Road in Kowloon City. The real estate developer eventually bought
75,000-square-foot site for HK$2.17 billion. The government on Wednesday
auctioned a piece of land in Kowloon for HK$2.17 billion - below expectations.
Unlisted Chinachem won the bidding. The 75,845 sq ft, or 7,046 sq m site is
average in size compared with the previous eight auctions this year. The site,
offering a gross floor area of 227,529 sq ft, was expected to sell for HK$2.78
billion, according to a poll of nine analysts. Chinachem sales director Ng
Shun-mo said they planned to develop four residential towers on the site - which
would provide about 160 units. The auction is the first after Hong Kong Chief
Executive Donald Tsang Yam-kuen unveiled new measures in October to cool the
red-hot property market, including raising housing supply and restricting
immigration based on real estate investments. The weak response from developers
was in stark contrast to previous auctions this year, when tranches of land were
sold at higher-than-expected prices after furious rounds of bidding. “It’s the
location because there is one side facing a cemetery and the other side facing a
secondary school, which means that it will be too noisy for the residents,” said
Yu Kam-hung, senior managing director for valuation in greater China at CB
Richard Ellis. “One more uncertainty is that because there is a new policy about
building plans,” Yu said. The government also announced earlier this year that
as of April next year, developers would have to submit building plans in which
the gross floor area concession would have to be reduced to 10 per cent from 20
per cent, yielding a bigger net floor area. Developers in Hong Kong usually
quote apartment prices in gross floor area, which includes actual space of the
apartment and other common areas, such as corridors and club houses. “The new
rules have some impact [on the auction result],” Ng Shun-mo, Chinachem’s sales
director told reporters after the land auction. Chinachem is an unlisted Hong
Kong-based developer. Chinachem said the project will involve an investment of
HK$3 billion, with four 10-storey blocks set to be built on the site supplying
160 units. The government sold the site in Kowloon Tong with an area 75,845 sq
ft, or 7,046 sq m, and offering a gross floor area of 227,529 sq ft, at HK$2.17
billion (US$278 million), below a poll forecast of HK$2.78 billion. The auction
came during trading hours. The Hong Kong property sub-index briefly gave up some
gains right after the auction, but powered ahead to end up 3.43 per cent,
outperforming the Hang Seng index’s 2.0 per cent. Hong Kong’s housing market is
overheating, prompting the government to unveil a series of measures to curb
fast-rising prices, including raising the stamp duty of luxury apartments to
4.25 per cent from 3.75 per cent. Housing prices have risen 50 per cent since
the start of last year and are fast reaching 1997 highs on brisk demand from
mainland Chinese investors and low mortgage rates as Hong Kong tracks US
monetary policy because of the dollar peg. “It [the Hong Kong market] will go up
and it will come down once the US starts tightening and interest rates go up,
the market will turn,” said David Faulkner, executive director of Colliers
International. The longer it goes on, I think the more chance of prices going up
higher.” 
Jeremy Fok sentenced to
community service - Jeremy Fok Kai-yan, accompanied by his mother Loletta Chu
Ling-ling, enters Eastern Court on Wednesday for sentencng. Fok had previously
pleaded guilty to dangerous driving and drink driving. Jeremy Fok Kai-yan - the
youngest son of legislator Timothy Fok Tsun-ting - on Wednesday was ordered to
perform 160 hours of community services and had his driving licence suspended
after being convicted of dangerous driving and drink driving. Accompanied by his
mother, former Miss Hong Kong Loletta Chu Ling-ling, Fok, 22, appeared in the
Eastern Court on Wednesday. He had previously pleaded guilty to the two charges.
Passing sentence, Acting Principal Magistrate Amanda Jane Woodock said the case
was serious as Fok should have taken a taxi after he had been drinking. But she
noted that Fok had a good academic background and was truly remorseful, so she
sentenced him to serve 160 hours of community service and suspended his driving
licence for a year. Fok was also ordered to take a driving improvement course in
the next three months. The 22-year-old was arrested on July 17 about 6am, after
his HK$500,000 BMW convertible with the number plate, “HK 21”, lost control. It
crashed into a railing on Bonham Road in Mid-Levels. No one was injured. Fok
said he was trying to park the car, but accidentally put his foot on the
accelerator. His lawyer told the court Fok had been drinking with friends in Lan
Kwai Fong. Fok's blood-alcohol level at tbe time of the accident was found to
have been exceeded twice the legal limit. Speaking outside the court, his mother
said she was pleased the case was over. Fok is also the grandson of the late
tycoon and philanthropist Henry Fok Ying Tung.
Green coalition fights to save
wetland - Groups want Henderson Land barred from building luxury homes on Yuen
Long site - About 20 green groups have combined to hold what they say is the
last line of defence to stop a developer building luxury houses on a Yuen Long
wetland. They say that if the Henderson Land (SEHK: 0012) project goes ahead at
Nam Sang Wai, it will open the way for development of other wetlands where
developers have bought up sites. The coalition issued a joint statement
yesterday in an attempt to stop the government from giving the developer
permission to build luxury homes on 54 hectares before a deadline next month.
The Town Planning Appeal Board gave conditional approval to the plan, against
the opposition of green groups, in 1994. But it required the developer to submit
plans to preserve the ecologically valuable wetlands. The green groups say that
if the government approves the latest plans before December 18, the developer
will be subject to the board's less stringent environmental standards in force
at the time of its conditional approval, not the present rules. "The old
restrictions are insufficient to satisfy the community's aspirations for
environmental protection and conservation," said Chan Kin-ching, a member of the
Northeast New Territories Development Concern Group. "No public consultation was
required under the old standards. "Nam Sang Wai is a bottom line which cannot be
passed," Chan said. "This is because once the government approves this project,
other wetlands such as San Tin - where many developers acquired a lot of land in
the area - and Hoo Hok Wai will also be in jeopardy." Designing Hong Kong's Paul
Zimmerman said the government should review its approval and consider a transfer
of development rights to sites with lower ecological value. Other organisations
- such as WWF, Friends of the Earth, the Conservancy Association, Green Sense,
the Hong Kong Bird Watching Society and The Professional Commons - also signed
the joint statement. They demanded the developer submit a plan on which the
public can comment and which the board can consider in light of community
expectations and conservation principles. The "no-net-loss" principle - meaning
any development should not be allowed to result in a loss of wetlands and ponds
- should be strictly upheld, the groups said. A spokeswoman for Henderson Land
said it had heard many different opinions about the project but it had its own
historical background that should be respected.
Troubled
accounting firm's staff jump ship - Grant Thornton to close as BDO gains full
team - Accounting firm Grant Thornton, which is embroiled in lawsuits involving
its missing former boss, will close down its Hong Kong operation by year-end
after its entire 600-plus partners and staff agreed to jump ship to its rival,
BDO. It is the biggest such raid in the city's accounting sector and will make
BDO Hong Kong's largest second-tier accounting firm, with 1,100 staff and more
than 70 partners serving 200 listed companies. BDO will still be dwarfed by the
Big Four - PricewaterhouseCoopers, Ernst & Young, Deloitte Touche Tohmatsu and
KPMG. But it will extend its lead over smaller accounting firms with 300 people
or fewer. Albert Au Siu-cheung, chairman and chief executive of BDO, described
the mass recruitment of Grant Thornton partners and staff as a "golden
opportunity". "The opportunity to have a massive admission of so much
established accounting talent is rare. This will strengthen BDO's
competitiveness in the local accounting industry," Au said. "This will also
create a bigger mid-tier firm allowing listed companies a choice for auditing
and professional services in future." Au said the recruitment would be completed
by the end of this year, and all staff and partners would become part of BDO,
while Grant Thornton would cease operation in Hong Kong. Grant Thornton's
clients - including 130 listed companies audited by
the firm - had been notified of the change and most agreed to make the switch to
BDO, Au said. Au said lawsuits involving Grant Thornton's missing boss, former
managing partner Gabriel Ricardo Dias-Azedo, were not a factor in the move.
Grant Thornton chief executive Patrick Rozario, who led the move to BDO, said
the team decided to shift because of Grant Thornton International's directive
for the mainland member firm to lead Grant Thornton's Hong Kong office. "We
consider BDO, which is run independently in Hong Kong and China, respectively,
is a model that suits us better," Rozario said. The lawsuits involving Azedo
will continue after Grant Thornton closes its Hong Kong operation. Rozario
emphasised that the company had done nothing wrong. Grant Thornton's former
managing partner Azedo vanished last autumn after allegedly fleecing those close
to him out of tens of millions of dollars. A Hong Kong court last week declared
Azedo bankrupt. The Court of First Instance accepted an application to have him
declared bankrupt by his distant cousin, Angela Gardner, a toy company trader.
Gardner had entrusted US$9 million to Azedo to invest. Mr Justice Thomas Au
Hing-cheung said evidence indicated Azedo had probably absconded. "There is
every indication that he has fled Hong Kong and can no longer be located," the
judge said. Also claiming funds are Archie and Betty da Silva, prominent members
of the Portuguese community, who placed US$2 million in Azedo's care to set up a
trust fund. Numerous lawsuits have been filed since Azedo disappeared, not only
against him, but also against Grant Thornton. In November last year, the da
Silvas obtained a ruling that - if undisputed and approved by the court - could
have entitled them to get back some of their money through Grant Thornton on the
basis that the company owed Azedo HK$5.5 million on his partnership account. But
a judge ruled against them, saying Grant Thornton did not owe Azedo anything.
HL Technology aims for HK$500m in
stock offering - Mainland wire and cable maker to float 180 million shares -
Celebrating the company's stock offering yesterday are, from left, HL
Technology's chief financial officer Li Jianming, chairman Chi Shaolin and chief
executive Jiang Taike. HL Technology, a mainland maker of transmission wires and
cables for laptops and television sets, plans to raise more than HK$500 million
through an initial public offering in Hong Kong. It will offer 180 million
shares at between HK$2.70 and HK$3.70 each to raise net proceeds of about HK$528
million. Chi Shaolin, the chairman and chief executive of HL Technology, said 40
per cent of the proceeds would be used to expand the production capacity of
existing products, and 44 per cent would be used to develop and manufacture new
products. The company planned to make new products such as solar connectors,
halogen-free insulating materials and automotive wiring harness, said Chi,
adding that it would be able to make new products for the automotive and
alternative energy sectors. HL Technology's turnover rose 73.4 per cent to 636
million yuan (HK$735.79 million) in the first half of 2010 compared with the
same period last year. Over the same period, its net profit rose 127.9 per cent
to 70 million yuan. Chi said the company's size underpinned its growth, along
with a solid customer base. Frost & Sullivan, a market research and consulting
group, forecasts compound annual growth in China's consumer electronics industry
of 13.2 per cent between 2009 and 2013, compared with a global average of 11.7
per cent, making the mainland one of the most important markets in the world.
Another mainland company planned to raise between US$220 million and US$280
million through a Hong Kong stock market listing, Reuters said, citing a term
sheet it had obtained. China Gold International Resources, listed in Toronto, is
the overseas flagship company of China Gold National, the largest gold producer
in China by output. The company made a net loss of US$8.37 million for the year
to December last year, according to the pre-listing document. But it recovered
in the first six months of this year, making a net profit of US$784,737.
Citigroup is acting as the book-runner for the planned IPO of China Gold
International in Hong Kong, according to the term sheet cited by Reuters. The
company plans to offer 53.66 million shares, while the offer price has not been
fixed. The mining firm focuses on gold production and acquisitions in China and
is 41.2 per cent owned by gold producer China Gold National. China Gold
International is expected to produce 116,000 ounces of gold this year and
146,570 ounces of gold in 2011. It has acquired another mine that contains
copper-polymetallic deposits, which the company said would be able to process
12,000 tonnes per day at the beginning of 2012.
China Exporting factories to climb
value ladder - Branded goods and value-added products are selling better than
their cheaper counterparts at the Canton Fair, a strong indication that China's
battered exporters have to climb the value ladder to survive. Liu Jianjun, a
Canton Fair spokesman, said enterprises with independent intellectual property
rights and their own brands, were better represented this year than in previous
years, with their products priced 20-30 percent higher than their traditional
rivals. Liu Wenge, a professor at the Central University of Finance and
Economics in Beijing, said China's manufacturers are making the transformation
from low-value producers to makers with independent research and development
capabilities. Recent research in Guangdong province in South China, one of the
country's manufacturing hubs, showed that upgraded enterprises making their own
brands have profit margins 15 percent higher than those that did not. Zhao
Zhongxiu, from the University of International Business and Economics in
Beijing, said the structure of China's manufacturing industry is changing,
"although it still largely depends on the global market". "In the past, most of
China's small and medium-sized companies did not have capability to invest in
research and development," said Zhao, who is head of the university's
International Trade and Economics School. "The thin profit in export industry
caused by exchange rate and labor cost will eliminate some speculative companies
with no technical value. "But with the government's help, more and more
enterprises are able to start to innovate and design their own brands." The
fair, which opened in Guangzhou in mid-October, is held over three five-day
phases, with phase one exhibiting high-tech machinery and products as well as
heavy machinery and building materials. Phase two covers non-durable consumer
goods, gifts and home decoration. Phase three mainly shows off textiles,
clothes, baggage, medicine and healthcare products. The biannual fair,
officially called China Import and Export Fair, is a crucial barometer of the
foreign trade in China. Over the past five years, the fair attracted more than
350,000 buyers from around the world a year and before the financial crisis,
annual turnover reached $73.8 billion. Among the companies at this year's fair
was Aiminer Leather Products Co, from Southwest China's Sichuan province, which
has benefited from carrying out independent design and research. The company has
entered the US and European markets with its own brand and has enjoyed a more
than 30 percent increase in exports over the past few years. Other manufacturers
at the fair have also received increases in orders. Dong Cuiqing, trade manager
of socks and hosiery makers MengNa, from Zhejiang province, said: "The textile
industry business this year has been good, but profit has dropped as the
material and labor cost increase, together with an increasing exchange rate." A
report released by the Ministry of Commerce on Monday, said the proportion of
China's high-tech and new electromechanical exports has grown, and amount to
$348.24 billion and $667.72 billion in first nine months of this year. In
addition, more enterprises are being encouraged to create own design and brands.
Last year, more than 10,000 products received intellectual property rights in
Dongguan, in Guangdong province, a 59 percent increase over the previous year.
"Eighty-nine R&D centers with foreign investment were established in the city at
the end of 2008, about 10 times of that in 2007," Liu Wenge said.
Shanghai
reaps spoils of success as expo pays off - Visitors crowd a passageway to the
top of the Nepal Pavilion with the Oriental Pearl TV Tower seen in the distance.
Shanghai officials are popping champagne corks as they relish the economic
success of the World Expo, with its attendance of more than 73 million. The
organisers have published a slew of record-shattering numbers - from cultural
performances to the number of reporters who covered the world's most extravagant
fair - after the six-month-long event closed on Sunday. The question uppermost
in residents' minds is whether the multibillion-dollar investment for the
dazzling show paid off. But whether the money is reflected on the balance sheet
of the expo itself or was made and spent on the perimeter, it's clear that
hundreds of billions of yuan were involved. All signs point to a net profit. Two
officials with the Shanghai Expo Bureau told the South China Morning Post (SEHK:
0583, announcements, news) the event was successful in business terms, though
they were unable to tell exactly if the bottom line would show a profit or a
loss. "I would say it would be a small profit," an Expo Bureau official dealing
with media accreditation said. "The cost control proved efficient, and the
bigger-than-expected crowds certainly helped the organisers operate at a
profit." Municipal Communist Party boss Yu Zhengsheng said before the opening of
the expo that the government aimed to break even, as box-office sales, rent from
retailers and restaurants, income from the sale of toys and expo-related
products as well as proceeds from the sponsors were projected as adequate to
offset the multibillion-yuan construction and operational costs. So on May 1,
Shanghai opened the gates after spending 18 billion yuan (HK$20.9 billion) on
the construction of the 5.28 sq km site and earmarking 10.6 billion yuan for the
expo's operation until October 31. The organisers have yet to unveil the balance
sheet for the expo, but some figures are available. According to the media
accreditation official, organisers were under strict budget control, to the
extent of not being allowed to spend a single extra coin. Call it the famous
"thriftiness" or "stinginess" of the Shanghainese - depending on your viewpoint
- but one example of the tight cost control was when the organisers messed up
the production of hundreds of journalist passes before the official opening due
to rigid bureaucracy and chaotic management. Even so, they refused to spend
extra money to produce the plastic cards again. Ticket sales alone amounted to
an estimated 12 billion yuan, based on 160 yuan a ticket during ordinary days
and 200 yuan for special days. The Economic Observer reported that the sales of
premium products topped 30 billion yuan as of the end of last month, and that
figure will increase as sales of products continue. The income from rent
collected from retailers inside the expo has not been revealed, and the proceeds
from the sponsors are confidential. Professor Chen Xinkang , head of an
institute focusing on studying the World Expo at the Shanghai University of
Finance and Economics, was quoted by the Jiefang Daily as saying that total
revenue could be about 80 billion yuan if attendance exceeded 70 million. Chen
added that, beyond expo-related revenues and expenses, 13 sectors - including
hotels, traffic and telecommunications - would also get a much-needed boost.
Certainly, tourism did. The National Tourism Administration said the expo
generated an additional 80 billion yuan of income, with hotels, aviation
companies and retailers the top beneficiaries. The municipal government also
benefited by raking in billions of yuan in tax revenue, and 627,000 jobs were
created. There seems little doubt, then, that the expo will boost Shanghai's
gross domestic product (growth last year was 8.2 per cent). And yet, the true
story of the expo economy can't always be told with statistics. For example, the
box office was largely bolstered by extra spending by the state-owned companies.
Employees of state-owned enterprises reported that nearly every worker was
granted at least three free tickets, part of the strategy to boost the gate
numbers. One employee of China Mobile (SEHK: 0941, announcements, news) received
20 free tickets from the company last month. Several government officials from
other parts of the country told the South China Morning Post that they were
encouraged to travel to Shanghai and visit the expo. Those costs won't show up
in statistics, either. Also, off-balance-sheet costs amount to a big sum that
won't be reflected on the expo balance sheet. The thousands of security guards
hired to police the crowds standing in queues to visit pavilions were paid by
the district government, not the Expo Bureau. What's more, many officials at the
co-ordination bureau were on loan to the organisers, most of whom were on their
state-owned employers' payrolls. And the host city will have its own balance
sheet. When municipal officials talked about mega projects such as the breakneck
expansion of Shanghai's subway system to 420 kilometres, economists raised
questions about whether the big-ticket spending on infrastructure outside the
expo area would be worth it. Yu, the party boss, admitted that Shanghai had
shelled out at least 300 billion yuan to build infrastructure for the expo,
which would exceed the US$40 billion investment for the 2008 Beijing Olympics.
Jones Lang LaSalle's estimate of the investment for the expo projects was even
higher - US$95 billion. But whatever the figure is, Shanghai expects to get it
all back - and then some - when it auctions off the land on the expo site. And
based on the current price in the city's prime areas, analysts expect the city
to rake in about one trillion yuan. One executive with a Shanghai-based
developer credited the city's expo strategy as being better, monetarily
speaking, than the one Beijing officials had for the Olympics. "The stadiums for
the Olympics turned into white elephants because of the limited use of the sport
venues and facilities [afterwards]," he said. "The redevelopment of the expo
site will generate tonnes more money for Shanghai."
Hong Kong Sun Hung Kai Properties to
give The landmark Beijing APM mall in the city's Wangfujing Street a second
facelift - Sun Hung Kai Properties (SEHK: 0016) is to give its Beijing APM
shopping mall a second major facelift in as many years to reposition the centre
to appeal to local middle-income shoppers rather than tourists. SHKP, the
largest property developer by market value in the world, says it will spend
another 300 million yuan (HK$347 million) on renovations to the mall, which is a
major landmark in Beijing's shopping mecca of Wangfujing Street. A 320 million
yuan refurbishment in 2008 was aimed at increasing the appeal of the mall to
young customers, but shopping traffic in the area had since undergone a
significant change, said Ian Choy Chi-keung, SHKP's chief representative in
Beijing. "The retail market in Beijing is changing. The purchasing power of
local middle-income and white-collar shoppers has grown substantially in recent
years. The local customer market has matured," Choy said. An in-house survey
revealed that average spending by local customers at Beijing APM doubled to
between 400 and 600 yuan this year from 200 to 300 yuan last year, which lifted
it above the average 300 to 500 yuan spent by tourists at the mall, said Raymond
Ip, leasing director at the firm. The profile and buying patterns of local
shoppers has also changed. "They used to be government officials or businessmen
and they bought products to give to others as gifts. That's why sales of luxury
brands expanded aggressively. But in the past two to three years, salaries of
white-collar workers have risen rapidly," said Ada Nip, head of retail at
property consultancy DTZ's North China division. "The monthly salary of a
university graduate may be only 3,000 to 4,000 yuan in the first year, but will
grow by many multiples in the next few years." Nip said there were now about 10
shopping malls in Beijing that were geared to appeal to wealthy and big-spending
customers. The market was saturated and as a result international luxury brands
were not expanding aggressively this year. "But the middle-class market still
has potential. Raffles City Beijing, and Joy City in Xidan and Chaoyang are
among the few shopping malls targeting the white-collar market," she said. That
change in shopping patterns prompted SHKP to reposition Beijing APM as a fashion
shopping centre rather than continue as a tourism concept mall, Choy said. Under
the renovation scheme, the Chinese-style external walls of the mall will make
way for large-scale light emitting diodes (LED) lighting external walls. As the
landlord, SHKP will also change the tenant mix and introduce more international
brands targeting younger local shoppers. One of the brands that has recently
signed up for space in the mall is US-based fashion retailer Gap, which will
open its 12,540-square-foot duplex store at Beijing APM this month. The retailer
will invest more than 100 million yuan in the store. It will be the only store
on the mainland with all of Gap's brands. Gap has expanded aggressively in
China. It will open two stores in Beijing and two in Shanghai this year, and one
in Hong Kong next year. A US computer products company has also leased a
three-storey space in the mall of more than 20,000 sqft. It will be the
company's largest mainland store and is scheduled to open at the end of next
year. Another North American fashion retailer targeting younger shoppers has
rented a four-storey space of more than 20,000 sqft and will open in the third
quarter of next year, Choy said. "Half of our tenants will be fashion stores. We
hope local customers will exceed tourist visitors after the facelift, which will
be completed by the end of next year. Currently, half of our customers are local
people." The fashion items would not come cheap - clothes sold under the Zara or
other international labels might cost up to 600 yuan per item. But the spending
power of the city's younger shoppers is rising. "They have benefited from
growing asset values as property prices have risen significantly in the past few
years. Also, since they have no family burden, they are more willing and able to
spend," Nip said. Beijing's retail market is responding. While five years ago
there were only five shopping malls in the city, there are now about 30. "To
compete in the market, we hold regular events such as a New Year countdown, and
offer loyalty benefits to VIP customers to attract shoppers. Our experience in
managing shopping malls and our familiarity with mainland rules and governments
are our strengths," Choy said. With the strong retail market sentiment, Ip said
rents at the mall had increased 30 per cent over the past 12 months. The mall
was also enjoying annual growth of 40 per cent in traffic flow since the
facelift in 2008 and annual turnover growth of 45 per cent. Nip said rents of
the established shopping malls in key locations had risen 15 to 20 per cent so
far this year and she expected them to grow a further 10 per cent in the coming
year.
Mascots for 3rd Asian Beach
Games unveiled - Mascots for 3rd Asian Beach Games unveiled. A cartoon dragon
and phoenix have been selected as the mascots for the 3rd Asian Beach Games to
be held in 2012 in Haiyang.
China's air fleet to triple by 2030 - A
Boeing Next Generation 737 jet for Shanghai Airlines sits on an assembly line at
Boeing's manufacturing facility in Renton, Washington. China will need 4,330 new
commercial airplanes valued at $480 billion over the next 20 years, with demand
being driven by the country's burgeoning economy and soaring personal wealth, US
aircraft manufacturer Boeing forecast. Over that period the Chinese airplane
fleet will triple in size, making it the largest market outside the United
States, according to the company, which released its 2010 China market outlook
on Tuesday in Beijing. "Driven by the urbanization of China, the growth of its
economy and ever-increasing personal wealth, China is one of the world's fastest
growing and dynamic aviation markets," said Randy Tinseth, vice-president of
marketing at Boeing Commercial Airplanes. He expects the country's domestic
passenger traffic to grow on average at an annual rate of 7.9 percent. The
majority of the new aircraft bought by Chinese carriers will be newer, more
fuel-efficient single-aisle planes, or regional airliners, with total deliveries
reaching 3,090, the company said. Boeing's single-aisle aircraft models include
the 737 and the Next Generation 737-900. Passengers nowadays want more
convenient, frequent flights and only single-aisle aircraft can accommodate that
demand, Tinseth said. The single-aisle and intermediate twin-aisle market will
account for 92 percent of China's total delivery in value. About 60 twin-aisled
wide-bodied 787 Dreamliners will be delivered to Chinese airlines next year,
following a long delay caused by work to rectify various production problems.
Around 890 Boeing 777s will also be delivered. A forecast by Airbus, the
European aircraft manufacturer in February also painted a rosy picture of the
Asia-Pacific market, which will acquire some 8,000 new passenger and cargo
aircraft over the next 20 years. However, the company said demand is for larger
aircraft. The region is expected to take delivery of some 880 large aircraft,
around 2,600 twin-aisle wide-body and 4,500 single-aisle aircraft, Airbus said.
The high proportion of larger aircraft reflects the concentration of populations
around main urban centers, which generate high-density traffic on key
intra-regional routes, in addition to capacity-constrained international
destinations in Europe and North America, the company said. Meanwhile, demand
for single-aisle aircraft in the region is expected to continue rising in the
coming years, driven by the growth of low-cost carriers and the opening of new
routes between secondary destinations, especially in China, India and Southeast
Asia. With China's cargo markets leading the global industry, Boeing predicts
that the country's air carriers will add about 330 freight airplanes by 2029,
with the total freight fleet more than tripling in size. Airbus predicts that
around 340 new production freighters will be delivered to the region over 20
years. These will mainly be wide-body aircraft and will represent 40 percent of
the expected global demand for new production freighters.
On hold - Lee's bid to buy Shaw's TVB stake - Henderson Land (0012) vice
chairman Peter Lee Ka-kit's personal bid to buy into Television Broadcasts
(0511) may fall through if Shaw Brothers stick to their asking price. Lee and
partners are finding the HK$9 billion price tag for a 30 percent stake in the
terrestrial operator too steep. Shaw Brothers have no need to cash in their
shares, a source told Sing Tao Daily, sister publication of The Standard. Based
on the asking price, TVB is worth a total of about HK$30 billion. But the
broadcaster's market capitalization is just HK$18.5 billion after its shares
slipped 0.8 percent to close at HK$42.05 yesterday. So HK$9 billion for a 30
percent stake would mean a payment of more than a 60 percent premium. Lee and
his consortium could be the new owners of TVB if both parties can resume
discussion and negotiate over the final price, the source said. The
broadcaster's delay in applying for a change in its shareholding structure has
led to rumors that the deal is off. A Broadcasting Authority spokeswoman said:
"As of yesterday, there wasn't any application concerning a change in TVB's
shareholding structure." As the market leader, TVB makes a profit and pays
dividends each year. So there is no pressing need for additional capital,
analysts said. A source close to TVB said chairman Run Run Shaw will allocate
all the proceeds from the stake sale to charity. He is also unlikely to sell any
stake "for a song." There were rumors that PCCW (0008) chairman Richard Li
Tzar-kai was invited to join the consortium. But a source close to PCCW said:
"There's absolutely no truth in such a thing. Nor is Richard Li interested in
TVB." Li's current ownership of Now TV and the Hong Kong Economic Journal make
any acquisition by him subject to complicated cross-media laws.
Sun Hung Kai Properties (0016) expects
rental income from its eight main shopping malls to rise 20 percent this year
and 15 percent next, backed by a robust retail market. Rental income is expected
to reach HK$1.13 billion this year- an all-time high and 20 percent more than in
2009, said Fiona Chung Sau-lin, leasing general manager at Sun Hung Kai Real
Estate Agency. SHKP malls include East Point City, WTC More and Landmark North.
But Chung warned that rental income growth will likely slow next year, owing to
the higher base. "We expect the rental income in 2011 to increase 15 percent on
this year's level to around HK$1.3 billion," she said. Basic rents increased by
10 to 20 percent when tenants renewed their leases for next year. The developer
expects both turnover and visitor numbers at its malls to grow 38 percent in the
fourth quarter to HK$2.07 billion and 86 million respectively. Sales at its
eight malls rose 37 percent to HK$2.05 billion in the third quarter and total
sales for the year are expected to hit HK$7.42 billion, up 32 percent from 2009.
SHKP plans to invest HK$18.8 million in promotions during the Christmas and New
Year holidays, up 18 percent year-on-year. "We expect sales at the malls to
surge 27 percent year-on-year between December 18 and 27, with the arrival of
more mainland shoppers."
Real Estates Massive shocks
loom - Homeowners, get ready for massive shocks. That's the message from Hong
Kong Monetary Authority chief Norman Chan Tak-lam's three-hour presentation to
Legco yesterday. "The global economy is extremely abnormal and this can never
last for a prolonged period," Chan said. "There must be adjustments, potentially
causing massive shocks." The impending monetary stimulus from the US Federal
Reserve - widely expected to be outlined on Wednesday - is likely to inflate the
local property bubble, he warned. Risk aversion caused by unforeseen crises
could also hike rates, raising the mortgage burden of homebuyers. Despite
successive quantitative easing by the Fed, the European Central Bank and the
Bank of England, Chan noted the recovery of Western economies has been
weakening. Excess capital has flooded emerging markets including Hong Kong,
giving undue strength to the local property market, he said. Most analysts
expect the Fed to announce a US$500 billion (HK$3.9 trillion) asset purchase
plan on Wednesday, but Goldman Sachs' figure is as high as US$2 trillion. This
will likely set the tone for the ECB, Bank of England and Bank of Japan to
follow suit later in the week. A smaller-than-expected quantitative easing may
cause capital outflow as asset prices have already fully factored in its
effects, analysts said. Chan warned homebuyers must never be assured that a weak
US economy will always deter rate hikes. A sovereign debt crisis, which
afflicted several European nations earlier this year, for example, could spark
rate rises. "Rates will also surge due to risk aversion in fluctuating markets,"
Chan said. He admitted capital flows determine local interest rates, and the peg
to the greenback means Hong Kong has fewer combative measures at its disposal
than other economies. But he stressed the authority has no "need" or "intention"
to de-peg the local currency, as suggested by lawmaker James To Kun-sun. Chan
said asset prices in nearby countries with free- floating currencies have all
seen similar asset bubbles. So merely abolishing the peg would not curb the
situation. More capital would rush into Hong Kong as investors sought profit
from a free- floating exchange regime if the peg was discarded. Chan also ruled
out a proposal by legislator Regina Ip Lau Suk-yee on restricting foreign
capital, noting the Basic Law guarantees free fund flows. And thanks to that
freedom, Chan admitted the authority does not have comprehensive information on
the size of local property investments involving mainland funds. Several
lawmakers urged the authority to tighten mortgage loans, but Chan said it has to
be careful not to unduly hurt aspiring homebuyers. To ensure better banking risk
management, Chan said he had applied to the privacy commissioner in October 2009
to allow for the extension of the credit data sharing mechanism among banks.
This has become urgent. Following the imposition of more stringent mortgage
criteria in mid August, property deals dropped significantly in September. Newly
approved mortgages dropped by 21.6 percent in September from August to HK$31.6
billion. Mortgage applications also plunged 18.8 percent to 17,459. But Chan
admitted there are signs the home market heated up again last month, but he
sought more time to assess the effectiveness of the measures. According to
Midland Realty, transactions at 35 major developments totaled 945 in the two
weeks after the October 13 policy address, up 40 percent from 671 deals in the
previous two weeks.
Three charges against TVB
general manager dropped - TVB general manager Stephen Chan Chi-wan leaves
Eastern Court on Tuesday. Prosecutors on Tuesday withdrew three charges relating
to the accepting of advantages against TVB (SEHK: 0511)'s general manager
Stephen Chan Chi-wan and Chan's former assistant and company director of Idea
Empire advertising and production (IEAP) Edthancy Tseng Pei-kun. The charges
were withdrawn as the pair appeared in the Eastern Court on Tuesday morning.
Chan and Tseng have also been charged with conspiracy to defraud. TVB head of
business development Wilson Chan Wing-suen also appeared in court on Tuesday.
The prosecution said they had decided to withdraw the three charges, relating to
the accepting of advantages of about HK$10,000, after reviewing evidence against
Chan and Tseng. The case has been transferred to the District Court for plea on
November 23. Stephen Chan, Edthancy Tseng and Wilson Chan were each granted bail
of HK$100,000. The Independent Commission Against Corruption (ICAC) arrested
Stephen Chan, Tseng, and Wilson Chan in March for alleged corruption. Stephen
Chan and Tseng is also accused of conspiring to defraud TVB and five celebrities
in mid-September, the ICAC said. Wilson Chan and Tseng also allegedly conspired
to defraud TVB between September and December last year by diverting HK$5.2
million to IEAP – due to TVB. They also allegedly misappropriated HK$550,000
payable to TVB from Melco Crown Hotels, the ICAC claimed.
Prices of herbs soar as 'big bosses'
move in with speculative money - Dealers say prices of Chinese herbs started
climbing last year and have not stopped rising. On a gloomy, rainy afternoon,
herb dealer Han Cen sat poring over his accounting books, which recorded dozens
of Chinese herbs he and his business partners had sold. "The price of finger
citron fruit [called foshou in Chinese] has more than tripled. It cost only 40
yuan [HK$46.40] per kilogram, but it's 150 yuan now," said Han, who runs a shop
in Anguo , Hebei , the site of one of the largest herb markets in the country.
Han collected herbs from his hometown in Liaocheng , Shandong , which were
stored in bags in a dark room, and sold them in Anguo, which has hundreds of
such shops as it has been the mainland's herb capital for centuries. Most of the
products are sold to dealers or traditional Chinese medicine clinics or herb
shops nationwide. "We're used to product prices rising and falling, but prices
started climbing last year and have not dropped," Han said. "I have never seen
such a fierce price increase in my 10 years of selling herbs. "I've heard of big
bosses buying up herbs and storing them, waiting for the prices to rise. They
pushed up the price of garlic in the past two years." The "big bosses" are
speculators who have been seeking investment opportunities amid the gloomy stock
market and a property market that can change at any moment with a new government
policy. "Speculative capital does exist," Lou Shengrui , an analyst at Shenyin
Wanguo Securities, said. "The ample liquidity has to find means for investment,
yet the stock market had been bearish until last month, and many measures have
been issued to curb rising property prices. The demand for herbs is stable, and
speculative capital is capable of influencing prices." The Guangzhou Chinese
Herb Company told the Guangzhou Daily that 70 per cent of Chinese herbs have
risen in price by an average of 60 per cent. But heterophylly false starwort
root (taizishen in Chinese) for example, had sold for 60 yuan per kilogram but
now sells for 360 yuan. The Guangzhou Pricing Bureau said 180 yuan to 200 yuan
was a reasonable increase but a fast increase to more than 300 yuan - even 350
yuan - is the result of speculative capital. The current price range is
"unreasonable", the bureau said. Lou said short supply and rising demand had
pushed up speculation; "otherwise, the price rise wouldn't be so crazy". In the
long term, the price of agricultural products would rise and Chinese herbs would
be no exception, Lou said. Some herbs are raw materials for popular beverages -
such as honeysuckle flower for Wanglaoji herbal tea. Production of the drink has
increased considerably, and the high demand for honeysuckle certainly drives up
the price. And even though the demand for some herbs is stable, the supply has
diminished for various reasons - one being the weather's effect on a crop. Han
attributed rising prices to a sharp drop in production because of extreme
weather in the spring. Finger citron fruit, for example, is mainly produced in
Guangdong, which suffered serious floods that affected the supply. Next door,
Wang Xiaoxia was calculating stocks of ginseng, her shop's speciality, with her
sales assistant. Wang said they had seen at least a 30 per cent rise in the
price of American ginseng root - the most common type - and they were told the
price increase was due to a rise in labor costs. "You might not realise this,
but with inflation so serious, the farmers said they had to pay workers more to
process the ginseng; otherwise, they could not make a living," Wang said.
Housewives who are used to adding herbs to soup and people with chronic diseases
who need treatment with traditional Chinese medicine have felt the dramatic
increase. A man visiting a herb shop in Beijing showed he had paid more than
double the price for the same remedy to treat his cough.
Torch relay for Asian Games continues in Guangdong - he 80th torchbearer Lao
Lishi, Olympic swimming gold medalist, waves to the crowd at the end of the
torch relay for the 16th Asian Games in Zhanjiang city, South China's Guangdong
province, Nov 1, 2010. 
China Construction Bank (SEHK:
0939, announcements, news) (CCB), the country's No 2 lender plans to raise up to
61.62 billion yuan (US$9.2 billion) through a rights issue this month, less than
expected, to shore up its balance sheet after a last year lending binge. Its
plans for a rights issue in Hong Kong and Shanghai follow Friday’s announcement
by Bank of China for a rights issue to raise up to US$9 billion. Both banks
announced plans for massive capital raisings earlier this year to meet tighter
regulatory requirements. Chinese banks have raised US$10.5 billion so far this
year through rights issues. Under CCB’s plan, every 10 existing shares in the
bank would be entitled to subscribe to 0.7 rights shares at 3.77 yuan per
A-share and HK$4.38 per H-share. The rights issue, first proposed in April,
comes at a 43 per cent discount to its market price. The size of the deal is
smaller than an expected 75 billion yuan under its previously announced plans.
This reflects less urgent capital needs due to cautious lending by CCB, and is
also aimed at giving investors higher long-term returns, the China Securities
Journal reported, citing unidentified investment bankers involved in the deal.
CCB’s H-shares closed on Monday at HK$7.64, while its A-shares closed at 5.16
yuan. CCB International, China International Capital Corporation, Morgan Stanley
are the joint global co-ordinators, other underwriters include CITIC Securities,
Merrill Lynch Far East, Credit Suisse and BOCI Asia. Bank of America, which owns
a 10.95 per cent stake in CCB, declined to comment on whether the bank would
participate in the CCB rights offer. Bank of China meanwhile unveiled the terms
for its rights issue in Shanghai and Hong Kong. The bank will sell one share for
every 10 existing shares and will start taking subscriptions on Nov 3, it said
in a statement to the Shanghai stock exchange. The new shares are priced at 2.36
yuan a piece or HK$2.74, compared with a Monday close of 3.61 yuan for Bank of
China’s A-shares, and US$4.79 yuan for its H-shares. Chinese banks are looking
to raise a total of some US$70 billion to help meet tighter regulatory capital
requirements implemented by regulators to pre-empt a rise in bad loans.
Boeing betting on China market boom - The next generation 737 is unveiled in
Seattle on October 27. Boeing expects to maintain its 50-52 per cent share of
the aircraft market in China, which it projects will triple its airplane feet
size over the next 20 years, a senior executive said on Tuesday. The country
will need 4,330 new planes during the period worth US$480 billion, Randy Tinseth,
vice president of marketing for Boeing Commercial Airplanes, told reporters in
Beijing. Boeing is betting that new Chinese wealth and government spending on
infrastructure will bolster travel in the country, where the domestic passenger
traffic is estimated to grow an average of 7.9 per cent annually during the
period. State-backed Commercial Aircraft Corporation of China (COMAC) is
developing its own commercial jet C919, which Beijing hopes can eventually
compete with Boeing and its European rival Airbus. COMAC had said it expects the
C919 to have its first test flight in 2014 with deliveries to customers starting
in 2016. Tinseth acknowledged the potential competition from China down the
road, but said there would be enough space for each player to grow. “I don’t
think there is any question that COMAC will develop a successful airplane. How
successful it’s hard to say,” he said. “In total, on a worldwide basis, the
market is about 21,000 aircraft for single-aisle airplanes. That’s where the
C919 is. There is clearly room for us to grow, there is room for Airbus to grow,
and there is probably room for one or more competitors.”
Taobao aims for online sales
revolution - Taobao's vice-president Ye Peng (left) and chief financial officer
Daniel Zhang. Taobao, operator of the mainland's largest internet retail portal,
wants to upgrade the way goods sold online are delivered across the country
through a new logistics initiative. The Hangzhou-based company, which counts 300
million registered users, yesterday announced that a more stringent set of
operating procedures would be adopted by partner online merchants and logistics
providers on Taobao Mall, the mainland's leading business-to-consumer e-commerce
platform. "Taobao Mall aims to raise the standards of the online retail
experience for Chinese consumers," said Daniel Zhang, the chief financial
officer at Taobao. "The key is to reorganise the e-commerce value chain in
accordance with the unique characteristics of each product." The strategy will
involve the selection of specialist logistics partners in terms of product
categories found in Taobao Mall. Logistics comprise warehousing, trunk transport
and delivery. Zhang said the requirements, for example, of storing, transporting
and delivering furniture bought online were vastly different from the way
apparel or groceries were handled. "Our mission is to mobilise an eco-system of
partners who can render these services," he said. Taobao, which is the other
flagship unit of the Alibaba Group after business-to-business e-commerce giant
Alibaba.com (SEHK: 1688, announcements, news) , works with 10 logistics service
providers. "In China at the moment, logistics companies are only concerned with
getting a package delivered to the address on the label," said Chen Ping, the
chairman of Taobao partner Stars Express Logistics. "What Taobao Mall aims to do
is substantially improve and personalise the quality of service provided to
customers. "That means offering the option for customers to try out products
without penalty; to have a convenient exchange and return process; and for
logistics companies to accommodate the schedule and demands of the customer in
delivery arrangements. "This level of service is currently non-existent in
China." Improving logistics has become imperative because Taobao Mall, which was
launched two years ago, is set to launch within the next few months separate
online malls for home furnishing, skincare and cosmetics, fashion accessories
and an internet supermarket. This year, Taobao Mall introduced separate
platforms for consumer electronics, Hong Kong-designed merchandise,
Taiwan-sourced goods and designer footwear. According to the China Express
Association, Taobao-related transactions generated one billion parcels last year
and accounted for 50 per cent of the total market volume. The e-commerce
transaction volume on Taobao, which includes a consumer-to-consumer platform,
was worth more than 200 billion yuan (HK$231.56 billion) last year. The combined
business-to-consumer and consumer-to-consumer e-commerce market segments on the
mainland are forecast to grow an average 42 per cent annually over five years
and be worth 1.52 trillion yuan, or 7.2 per cent of the country's total retail
sales, in 2014, according to a Deustche Bank report.
Casino revenues soar as mainland bank
deposit rates turn negative - Baccarat tables appear to be offering a more
attractive bet than the mainland's negative bank deposit rates, as high-rolling
gamblers pushed Macau's casino revenues to a fresh record last month. Casino
revenue was boosted by the "Golden Week" National Day holiday to an
unprecedented 18.87 billion patacas, up 49.8 per cent from a year ago and 23.3
per cent from September, data released yesterday by the Gaming Inspection and
Coordination Bureau shows. That was 11 per cent better than Macau's previous
record of 17.07 billion patacas set in May. Last month's haul was also more than
four times greater than the US$567.98 million in revenue booked on the Las Vegas
Strip in February, the US casino capital's best month so far this year. As with
the mainland and Hong Kong stock and property markets, Macau's casinos appear to
have emerged as key beneficiaries of Beijing's aggressive stimulus measures. The
city's 33 licensed casinos have seen impressive growth this year as mainland
money continues to pour on to the baccarat tables. Record gambling revenues have
been a bonanza for casino operators including SJM Holdings, Sands China and
Melco International Development (SEHK: 0200) - whose shares all hit new 52-week
highs yesterday. SJM's stock is up 177 per cent in the year to date. Compared
with putting money in the bank, stock or property markets, the game of baccarat
- which accounts for nearly 90 per cent of all casino revenue in Macau - may not
appear to offer the same prospect of a reasonable return on "investment". But
real interest rates on mainland bank deposits, after adjusting for consumer
price inflation, have been negative since February. Beijing last month raised
benchmark one-year deposit rates to 2.5 per cent from 2.25 per cent. Still, that
was not enough to offset inflation, with consumer prices rising 3.6 per cent in
the 12 months to September, the real interest rate on mainland bank deposits is
about minus 1.1 per cent. By contrast, a casino's statistical advantage on the
game of baccarat means it is expected to win about 2.85 per cent of all VIP
gambling chips wagered. But high-rollers are typically given a rebate whether
they win or lose. If the rebate is 1 per cent of bets, the players' expected
loss rate falls to 1.85 per cent of total wagers - not much worse than the
negative return on mainland bank deposits. Indeed, Macau's casino revenue growth
rates appear to rise when mainland deposit rates fall, and grow slower when
those rates rise. At the same time, slow growth in overall mainland household
deposits appears correlated to high growth in Macau's casino revenue. Of course,
inflation may diminish the value of a depositor's principal in real terms, but
it will not harm its absolute value. Gambling, on the other hand, can empty bank
accounts. And, baccarat is subject to vastly greater volatility than retail
banking.
Trademarks a growing concern - The
well-known traditional shop Goubuli (Go Believe) at Dashilar, Dongcheng
district. Beijing has seen robust growth in trademark registrations in recent
years, but there is still a long way to go for the city to own more globally
recognized trademarks, authorities said on Monday. The city holds more than
250,000 trademarks and the number is rising every year, according to the Beijing
Administration for Industry and Commerce (BAIC). In Chaoyang district alone,
from 2006 to 2009, trademark registrations grew by 24.7 percent each year. So
far, the district owns about 60,000 trademarks, of which business services,
finance and modern service industries account for 36 percent, according to
statistics released by BAIC's Chaoyang branch at the Summit on Implementing
Trademark Strategy and Promoting Brand Development that took place on Monday.
The increasing number of trademark registrations is in accordance with the
growing awareness of trademark protection among enterprises. Quanjude, a
time-honored Beijing brand, was among the earliest of the city's enterprises to
implement a trademark strategy both at home and abroad, according to Jiang
Junxian, chairman of the famous roast duck group. Since the early 1990s, the
group has registered 198 trademarks domestically as well as 74 trademarks in the
US, UK, and France to protect the interests of the brand. But it has not all
been straightforward. The company invited a group of top English experts to
discuss the translation of its brand name, in case it was difficult for
non-Chinese to pronounce and remember. "But they finally suggested, maybe just
Peking Ducks, they had no better options," Jiang said, when asked about the
difficulties the company met promoting the brand in other countries. According
to Fu Shuangjian, deputy director of the State Administration of Industry and
Commerce, although China is set to become the world's second largest economy by
the end of the year, in this year's list of the world's most valuable brands
there were only 19 that were Chinese. Fu added that among the 250,000 trademarks
registered in Beijing, only 456 of them are famous national brands. Although the
awareness of trademark registration and protection among enterprises is
increasing among the public, experts say brand loyalty and respect for
trademarks is still weak. "That's why you can see everyday Chinese, even
foreigners, flock to the Silk Market to buy cheap imitations of clothes or bags
with famous brand names," said Su Lianhai, a staff member from BAIC's CBD
branch. "Low prices are still the big attraction."
The constitutional affairs minister has
defended a proposal that each slate of Legislative Council candidates for the
District Council functional constituency be nominated by at least 15 elected
district councillors. His defense came as both the Democratic and Liberal
parties continued to press for the threshold to be lowered to at least 10. The
government on Saturday unveiled the means for electing the chief executive and
Legco in 2012. Secretary for Constitutional and Mainland Affairs Stephen Lam Sui-lung
said yesterday that the nomination threshold of 15 means that for a list of five
candidates on average, each candidate needs to have only three nominations. He
said this is below the current nomination threshold of 10 for a candidate in a
functional constituency election. "So this very low threshold will enable
different political parties as well as independent candidates to take part in
this election," he said. On a Commercial Radio program, Lam admitted it will be
"rather difficult" for a lone individual to win one of the five new seats as the
candidate will have to garner support from some 3.2 million voters. That, he
said, gives the advantage to different political groups or independents, who can
collaborate to form a bloc for more effective campaigning. Lam also warned those
who failed to win seats in the district council elections of the absurdity of
running for one of the five seats. On the row over the proposed HK$6 million
spending cap for each slate of candidates, Lam said it is based on past
campaigns, with printing of about three million promotional leaflets expected to
cost about HK$3 million and a further HK$2 million needed for banners and
door-to-door canvassing. On the scrapping of appointed district council seats,
Lam said only the timetable remains undecided now that the government announced
in June that those seats will be abolished. The Democratic and Liberal parties'
call for the nomination threshold to be reduced for each slate to 10 was led by
their respective chairs, Albert Ho Chun-yan and Miriam Lau Kin-yee. Tam
Yiu-chung, chairman of the Democratic Alliance for the Betterment and Progress
of Hong Kong, found the proposed level acceptable. But he gave his rivals room
for hope by adding that between 10 to 20 nominations will also be all right. Ho
called on all parties to press the government to lower the threshold. Tam agreed
to consider the matter. Association for Democracy and People's Livelihood
lawmaker Frederick Fung Kin-kee meanwhile, urged the five seats be voted on as
five constituencies, instead of one. But Undersecretary for Constitutional and
Mainland Affairs, Adeline Wong Ching-man, said such an arrangement would be
tantamount to adding one seat to each existing geographical constituency.
Hong Kong Exchanges and Clearing (0388) aims to attract more large foreign firms
to float shares here after AIA's (1299) initial public offering became the
biggest in SAR history. The bourse is arranging to visit Italy again in the
first half of next year to follow up on the listing progress made by Italian
companies, HKEx chairman Ronald Arculli told Sing Tao Daily, sister publication
of The Standard. HKEx visited the country last year and has been in touch with a
few firms that expressed an interest in tapping the Hong Kong market, Arculli
said. The HKEx representatives also met fund managers to gauge their views on
Asian markets, Arculli said. He is confident Hong Kong will be attractive to
Italian firms because apart from raising funds, they can increase their exposure
in Asia. But he stressed that investors should not expect Italian companies to
list in Hong Kong overnight. HKEx delegates visited Russia five times before
Russian firms came to the Hong Kong bourse. Arculli did not say if Italian
fashion brand Prada will tap the Hong Kong market. But he said France and
Germany may be included in HKEx's roadshows to attract more European firms.
There are, however, no plans to set up an office in Europe because of high
costs. HKEx is also interested in South America, said Arculli, adding he will
join Financial Secretary John Tsang Chun- wah in a visit to that region next
month.
Hong Kong Electric, CKI take over
EDF's UK grids - Cheung Kong Infrastructure Holdings (SEHK: 1038) and Hongkong
Electric (SEHK: 0006) Holdings have completed acquisition of entire EDF Energy
Plc's ownership of its United Kingdom networks for 5.775 billion pounds (US$9.26
billion). Cheung Kong (SEHK: 0001) Infrastructure and Hongkong Electric each
holds 40 per cent stake in the investment with remaining 20 per cent taken by
the Li Ka Shing Foundation Limited and Li Ka Shing (Overseas) Foundation, the
firms said in a statement. The newly acquired asset comprises three regional
networks covering London, South East England and the East of England. Serving
about 7.8 million customers, the networks represent the largest single
electricity distributor in the United Kingdom. Cheung Kong Infrastructure’s
group managing director H L Kam said the company will consider more acquisitions
and is studying more than 10 acquisition opportunities in different sectors
around the world. Analysts said billionaire Li Ka-shing’s offer for French
utility EDF’s UK power grids in July suggested more Asian cash was in the
pipeline for similar assets.
Judge slaps publication ban on Kissel
case - Nancy Kissel, who won a retrial over the killing of her banker husband in
what was dubbed the “milkshake murder” will ask a on Monday to dismiss the
charges and set her free. A judge on Monday banned publication of details from a
hearing in the infamous case of American Nancy Kissel, who won a retrial earlier
this year in the killing of her banker husband. Kissel was convicted of drugging
Robert Kissel, a senior investment banker at Merrill Lynch, with a
sedative-laced strawberry drink before beating him to death in 2003 in one of
Hong Kong’s most infamous killings, dubbed the “Milkshake Murder”. The
mother-of-three was handed a life sentence in 2005 but the Court of Final Appeal
overturned the conviction in February, citing legal errors at her first trial,
and ordered a fresh hearing. Kissel’s legal team was expected to argue on Monday
that intense media publicity surrounding the case would doom her chances of
getting a fair hearing at a retrial scheduled for January. Kissel’s lawyers and
prosecutors both agreed to the publication ban issued by High Court judge Andrew
Macrae on Monday. “I am satisfied that in the interest of justice... there
should be no press or other reports of court proceedings until further notice,”
he said. Kissel’s barrister declined to comment last week. “We don’t want to
create any more publicity in this case so I cannot discuss the details with
you,” he told reporters. If the judge agrees with Kissel’s argument, she could
ultimately be set free, barring a successful appeal by prosecutors. The
Michigan-born woman’s original trial featured a heady mix of adultery, violence,
spying, greed and enormous wealth, gripping the city and inspiring books and
films. Gruesome details emerged in the three-month hearing, including evidence
she rolled up her husband’s body in a carpet and left it in the bedroom of their
luxury apartment for days before hiring workmen to carry it to a storeroom.
Prosecutors said Kissel stood to gain up to US$18 million (HK$140 million) in
insurance payouts from the death of her wealthy husband. The prosecution also
argued that she wanted to run away with a TV repairman with whom she admitted
having an affair in the United States. Kissel admitted from the witness box that
she killed her husband but said she was acting in self-defence after he attacked
her with a baseball bat on the night of the killing. In her appeal before the
city’s highest court in January this year, Kissel’s defence team argued that
prosecutors had adduced inadmissible evidence during the original trial. Robert
Kissel’s family suffered a further tragedy in 2006, when his brother Andrew was
found murdered in his house in Connecticut, bound and with multiple stab wounds.
He was reportedly about to plead guilty to bank fraud charges.
Hong Kong will see more issuances of yuan-denominated
corporate bonds this year, its central bank said, after China loosened the reins
on the use of its currency in trade and investment in the territory.
Yuan-denominated bond issuances this year were forecast to reach 17.8 billion
yuan (US$2.67 billion), Hong Kong Monetary Authority (HKMA) Chief Executive
Norman Chan told legislators on Monday. Yuan bond sales in Hong Kong have been
intermittent since China sanctioned them in 2007, but have picked up pace since
a landmark announcement in July. China removed restrictions on business loans in
yuan, permitted companies and individuals globally to open yuan accounts, and
allowed for the sale of yuan-denominated financial products. Multinationals
including McDonald’s and Hopewell (SEHK: 0054) Highway Infrastructure sold bonds
in August and supra-nationals such as the International Finance have plans to do
so in coming weeks. “The renminbi business in Hong Kong is developing rapidly.
We are very concerned about this development. Many bond issuers have come to
Hong Kong to issue renminbi bonds and the amount has been increasing,” Chan
said. At an HKMA briefing to the legislative council, Chan also said Hong Kong
remained committed to the Hong Kong dollar’s peg to the US dollar, amid market
speculation that the rising pace of yuan deposits in the territory may encourage
them to abandon the 27-year old peg in favour of the Chinese currency. September
data showed yuan deposits grew 15 per cent from a month earlier to 149.3 billion
yuan. It has more than doubled since the end of last year and Goldman Sachs said
it expected total yuan deposits to grow to 3-5 trillion yuan in the next 3-5
years. Hong Kong faces increasing inflationary pressures as the peg would mean
interest rates remain near record lows following near-zero interest rates in the
United States, prompting borrowers to raise cheap funds to buy property and
other assets, and raising concerns of a buildup in asset price bubbles. While
low mortgage rates have led apartment buyers to snap up property, analysts said
a switch to a peg of the Chinese yuan was not feasible for now its currency was
not fully convertible. “We have to wait for the Chinese yuan to become fully
convertible, so for now the HKMA will have to bear any negative impact from the
peg,” said Frances Cheung, an analyst at Credit Agricole in Hong Kong. “For
asset price bubbles, the HKMA may choose to use other tools such as tightening
credit,” she said.
Time for Hong Kong Hang Seng Bank chefs
annual snake soup banquets a coveted tradition to cook up a storm - Hang Seng
executive chef Chan Kam-sing expects to serve more snake-season guests this
year. Chan Kam-sing may be a full-time executive at Hang Seng Bank (SEHK: 0011,
announcements, news) but he does not need to use a computer nor count banknotes.
All he needs is a big knife to carry out his duties. Today is a big day for the
bank's executive chef as he and his 12 teammates sharpen the tools of their
trade and start chopping for this year's snake soup banquet season. Hang Seng
Bank's traditional snake season banquet has been served every year since 1962:
the famous soup and other dishes are prepared by the bank's own corporate chefs
in the Penthouse, the in-house restaurant on the top floor of its headquarters
in Central. Like other bankers, Chan's work has been affected by the financial
crisis. He served more than 7,300 clients last snake season - from November
until February - up 46 per cent from the previous year when the financial crisis
was at its peak. "We expect the number to be higher this year," Chan said. The
highest number of guests served during a snake season was about 8,700 - or 126
on average every day - in 2000-2001. Following Sars, the number dropped to
7,500, compared with 8,200 in the previous year. Hang Seng's restaurant is not
open to the public and is there primarily for executives to take their clients
out for lunch or dinner. The chefs, along with the wait staff, form part of the
bank's corporate communications department and work very much like a five-star
hotel restaurant except it is not expected to earn a profit.
Guangzhou opens Asian
Games main media center - The southern Chinese city of Guangzhou Monday opened
the Main Media Center (MMC) for the 2010 Asian Games to the world media.
China launches orbiter for Beidou
system - An orbiter is launched by a Long-March-3III carrier rocket from the
Xichang Satellite Launch Center in Southwest China's Sichuan Province, Oct 31,
2010. China early Monday morning successfully launched its sixth orbiter which
will form part of its indigenous satellite navigation and positioning network. A
Long March-3III carrier rocket carrying the "Beidou," or Compass, navigation
satellite took off at 0:26 am Monday from the Xichang Satellite Launch Center in
Southwest China's Sichuan province. It will join five other satellites already
in orbit to form a network, which will eventually consist of 35 satellites. The
network will provide satellite navigation services for Asia-Pacific regions by
2012 and global services by 2020. The China Academy of Space Technology
developed the satellite and the China Academy of Launch Vehicle Technology
developed the carrier rocket.
Ariel view of venues of 16th Asian
Games in China's Guangzhou.
The lure of the silver screen looms
ever larger - Audiences watch screens before choosing a film at Hengdian Movie
Center, Henan province. Takings to exceed 10 billion yuan in 2010, a 60 percent
rise over 2009. Decorated with lanterns and colored ribbons, Shanghai's Xuyuan,
or beautiful park, in the 1890s was the place to go to enjoy dancing, singing
and other amusements at a time of peace and prosperity. It was also the setting
for the first Western film, or Xiyang Yingxi, shown in China, on a night in
August 1896, and it started a craze that has got bigger just about every year
since. Now, Chinese filmgoers' appetite for Hollywood blockbusters and domestic
films has pushed Chinese box office receipts to an all-time high. According to
the China Film Producers Association (CFPA), takings hit 8 billion yuan ($1.2
billion) for the first nine months of this year and are set to reach more than
10 billion yuan for the whole year, a 60 percent increase compared with 2009.
CFPA also predicted that Chinese receipts will reach 40 billion yuan by 2015,
putting the country second only to the United States. The cinema market has
developed at an unprecedented speed, fueled by media companies establishing new
cinemas to bring an increasing number of dramas to the silver screen. Cinema
building Wanda Movie Theater, one of China's largest cinema chains, plans to
build more than 70 cinemas by the end of this year and make it more than 120 by
2012, aiming to generate revenues of 3 billion yuan. Wanda currently operates 52
movie theatres with 400 screens around the country. It achieved box receipts of
1 billion yuan for the first nine months this year, ranking it top within the
industry. "Looking into the future of China's cinema market, we see a vista of
limitless promise," Ye Ning, general manager of Wanda said.
Kindle hot property as it leaps Great Firewall - A user shows his Kindle at the
Lo Wu border crossing - Amazon's Kindle e-reader is not officially for sale on
the mainland but it is being snapped up like hot cakes on internet auction sites
and other underground sales outlets. Why? Because it easily circumvents the
mainland's internet censoring system, dubbed the Great Firewall of China. Owners
are extolling the ability of its internet browsing function to access officially
blocked sites such as Facebook and Twitter. The 3G model uses GSM, or global
system mobile communication technology, with Wi-fi coverage in more than 100
countries, including China. Kindles are a rare sight on the mainland because, as
the Seattle-based e-commerce giant says on its website, it is currently unable
to ship the devices or offer content there. But some people have found ways to
sell them on the grey market. A search for Kindle returns hundreds of results on
the popular auction website Taobao - the Chinese equivalent of eBay. A seller in
Beijing said he ordered more than 30 to be shipped to an address outside the
mainland and then had them carried in a few at a time. He has sold 300 in the
past month. Several Chinese bloggers are recommending the Kindle, touting its
ability to "scale the wall automatically". Some Net users are accustomed to
using proxy servers to circumvent the mainland restriction, but the Kindle makes
this unnecessary. "I still can't believe it. I casually tried getting to
Twitter, and what a surprise I got there," a mainland blogger said. "And then I
quickly tried Facebook, and it perfectly presented itself. Am I dreaming? No, I
pinched myself and it hurt." Professor Lawrence Yeung Kwan, of the University of
Hong Kong's electrical and electronic engineering department, said mainland
internet patrols might have overlooked such access, adding it was possible the
central government was more lenient with foreigners' internet freedom than with
mainlanders. Kindle uses its own network, called Amazon Whispernet, to provide
wireless coverage via AT&T's 3G data network in the US and partner networks in
the rest of the world. A 3G wireless coverage map on Amazon's website includes
numerous Chinese cities, suggesting its 3G link involves a Chinese carrier.
Amazon and its mainland partner network might have agreed to transfer the
connection to Amazon's station, presumably in the US, once the mainland
gatekeeper sees the signal comes from a Kindle, Yeung said. The signal, which
may be encrypted, then returns to the partner network in China so the internet
patrols cannot see what is accessed. "Every Kindle device is pre-registered to a
personal account, so every user's information is clear. In addition, Kindle has
a book-buying focus, so the censors may think these connections are relatively
safe," he said. The access ability applies only to the Kindle's 3G model, not
the one with Wi-fi, which relies on the local connection only. Amazon did not
respond to requests for comment. It was not a matter of an inability to track
the connections via Kindle, Yeung said. "Even SMS are filtered on the mainland.
They are more than capable of blocking this, too." Amazon does not sell Kindles
to mainland customers. A search for Kindle yields no result on its Chinese
website, amazon.cn. During Google's tussle with Beijing over censorship earlier
this year, the biggest US firms with operations on the mainland were asked by
Senator Dick Durbin to explain their "future plans for protecting human rights,
including freedom of expression and privacy, in China". Amazon replied in a
letter without spelling out policies on privacy and censorship. It reads in
part: "Amazon has long been committed to protecting the privacy of customers. We
know customers care how information about them is used and shared, and we
appreciate their trust that we will do so carefully. We are committed to free
expression ... In addition, Amazon has long been a leading proponent of
maintaining the fundamental openness of the internet."
Jockey Club has sinking feeling at
Sha Tin stables - The Hong Kong Jockey Club stables at Sha Tin. A
state-of-the-art training centre in Guangzhou is the integral component of the
Hong Kong Jockey Club's grand plan to secure the future of local horse racing,
but everyone has been left, quite literally, with a sinking feeling at their
stables in Sha Tin. At present 1,200 horses are stabled at Sha Tin. Some are
housed in recently built Olympic stables while the rest are kept in older
accomodation built on reclaimed land in the 1970s. However, the sands of time
has seen the land sink - by as much as one-and-a-half metres in places. Owners
and trainers, however, need not fear their prized thoroughbreds disappearing
into a horsey quicksand in the coming months. The it's not superstructure that
is going down - it's the land around the buildings. When land reclamations took
place 30 or 40 years ago in Hong Kong, the engineering approach was a lot less
scientific than it is today. Back then, the method was to push the material into
the sea and displace the mud - it's this marine mud that's the problem. It takes
years to squeeze the water out of the mud. Essentially, reclamation means you
are putting additional weight on top of an existing soil layer. If it's sand, it
is very compactable. It drains freely and the water gets squeezed out quickly.
But if it's mud or clay this only happens over a long period of time, so the
land sinks as the water comes out slowly. This phenomenon has steadily been
happening for a number of years at the club's Sha Tin stables. However, the club
describes it as a manageable problem. "Yes, in the worst examples some land has
sunk down to as much as one-and-a-half metres, but that's over 30 to 40 years or
so," the club's director of property, Michael Moir, said. "As far as Sha Tin is
concerned, the bulk of the movement has taken place over a long time. It happens
at inches per year so it's a slow process. This has easily been rectified over
time when it has needed to be." Moir explained that there's been habitual
relaying of drains and filling in of soil around the buildings to form ramps up
to the stables. It has not taken vast sums of money to sort the problem out. The
daily operation of the stables was never affected, Moir said. A structural
engineer by profession, Moir is an experienced property specialist. He only
joined the club in March, but previously spent 18 years with Swire properties,
specialising in large capital projects. "I'm sure the sewage plant next door to
our Sha Tin stables has had some problems over the years too, but even a modern
reclamation will settle or sink a little," Moir explained. "It's really not a
major problem in Hong Kong at all, bearing in mind how much of the territory is
actually built on reclamation land. Generally speaking, they have done a great
job here. In Wan Chai, the original shoreline was Queen's Road East. Wan Chai
was built in about four or five reclamations to where it is today. Reclamation
has been the lifeblood of Hong Kong. Sha Tin just happens to be not a very good
example. It's something the club has had to deal with since it was built." There
are no such worries about the club's new training centre, which will be at
Conghua, 40 kilometres northeast of Guangzhou. When finished, it will cover 152
hectares and be built for an estimated cost of more than HK$1 billion. The first
phase of construction should be complete by 2014, and the expected date for the
whole project to finish is 2017.
Halloween is easy sell when
ghosts are everywhere - Festival a hit because of Chinese belief in spirit world
- Ghost tour guide Wong Sau-ping shows students from the Chinese University of
Hong Kong a haunted tree and other ghostly haunts in old Wan Chai.
Wen's 'sea of peace' talk raises
hopes - Regional S China Sea pact may be back on - Vietnamese dancers perform
during the closing ceremony of the 17th Asean summit in Hanoi. Indonesia now
takes over as the bloc's leader. From sticking point to possible turning point,
the South China Sea has come a long way in four months. Having reacted with
undisguised anger four months ago at efforts to find a multi-country solution to
disputes over rights to the sea, China now appears to accept the approach.
Premier Wen Jiabao told regional counterparts at a summit in Vietnam of his
vision of a "sea of peace and co-operation". His words raised hopes among
diplomats that China now acknowledges the territorial disputes are firmly on the
regional agenda. If they are right, that will bolster the push, led by Vietnam,
for a legally binding code of conduct to govern behaviour in the sea, through
which vital trade routes pass and which is thought to be rich in gas and oil
deposits. The East Asia Summit that ended last night was Hanoi's last
opportunity to force talks on this issue during its chairmanship of the
Association of Southeast Asian Nations. The push for a binding code of conduct
comes at a time when Washington appears eager to get more involved in the
region's affairs to counter China's rising clout. The United States played its
part at the summit yesterday, with US Secretary of State Hillary Clinton
reiterating Washington's interest in ensuring Asian maritime disputes were
settled peacefully and free navigation assured. As has become the pattern, other
nations at the summit echoed her stance. Clinton also praised China for entering
into discussions with its Asean counterparts. Nervous Asean envoys had been
wondering for weeks whether they had pushed China too hard and were bracing to
put on a show of unity in the event China reacted as fiercely as it did four
months ago. Beijing has long insisted that rival claims to the South China Sea
be settled bilaterally. "We want to see progress and I think everyone in the
room was very pleased to hear Premier Wen also talk of the need for progress,"
Dr Panitan Wattanayagorn, the Thai government spokesman, said. "The phrase `a
sea of peace and co-operation' was very warm." The question, as always, is what
happens next. Eight years ago, Asean and China committed themselves to drawing
up a legally binding code of conduct for all claimants to the sea's riches in a
declaration that called for self-restraint. Wen and other Chinese officials have
confirmed Beijing is prepared to hold a working group meeting in December to map
out with Asean how the 2002 declaration can be turned into something more solid.
"As before, China will work with other nations to earnestly implement the [2002]
declaration ... and increase mutual confidence and friendly co-operation," Wen
told his counterparts from the 10 countries of Southeast Asia. "We will jointly
work towards the maintenance of peace and stability in the South China Sea and
work to bilaterally resolve the dispute in an appropriate manner." China and
Vietnam claim the sea's Spratly and Paracels archipelagoes in their entirety,
while Brunei, Malaysia and the Philippines claim the Spratlys in part. Taiwan
holds the biggest of the Spratly islands; its claim to the islands mirrors that
of Beijing. After the meeting, envoys expressed cautious optimism, but said much
work lay ahead. "Yes, there is a definite sense of momentum, but whether we will
see progress, we will just have to wait and see," Indonesian foreign minister
Marty Natalegawa said. He said the issue still needed a "political push" from
higher levels than just the working group. Nobody wanted to see rising tensions,
potential conflict or even a "new cold war divide" over the sea. Natalegawa's
comments are significant as Jakarta now takes over from Hanoi as chairman of
Asean. There are ample grounds for caution, for all the sense of momentum. While
China has shown a fresh willingness to discuss the issue it has given no sign
its position has shifted significantly. Beijing says it has a "historic claim"
to sovereignty over virtually the entire sea, and in the past two years has told
foreign oil companies to pull out of exploration deals in the southern
Vietnamese waters, detained hundreds of Vietnamese fishermen and objected to
routine US naval patrols in waters Washington insists are international.
Significantly, Wen also used the word bilateral in Hanoi - a sign that Beijing
is sticking to its demand that individual claimants must negotiate directly with
China rather than settle their differences through a regional agreement. It is a
demand, of course, that favours the strongest power. "Quite how that demand fits
in the ongoing discussions between Asean and China is anyone's guess at this
point," said one Asean participant. "Everyone is feeling their way ... no one is
sure whether we can really trust China as sincere or whether Beijing is simply
playing for time." That fear is palpable in Vietnam, whose diplomats
orchestrated what amounted to an ambush of their giant northern neighbour at
July's summit. Already PLA generals have warned that Hanoi will live to regret
its emerging relationship with Washington. "We know they are really going to
squeeze us over this," one Vietnamese official said. "The only questions are
when, and how, and whether we can win more successes before they do." "We look
at what they are doing to Japan right now, and think, will we be next?"
Senior Beijing officials
hold talks with Clinton - Foreign Minister Yang Jiechi meets US Secretary of
State Hillary Clinton in Hanoi on Saturday. State Councillor Dai Bingguo met US
Secretary of State Hillary Rodham Clinton on the southern island of Hainan
yesterday after she waded into simmering Asian maritime disputes at the East
Asian Summit. Dai, Beijing's most senior foreign policymaker, met Clinton in the
VIP lounge at the airport in the resort town of Sanya , a photographer said.
Clinton's sixth Asian tour in less than two years aims to pursue what an aide
calls "cool-headed, constructive diplomacy" with China and boost US ties with
its Pacific neighbors. Earlier in the day, she held talks in Hanoi with Foreign
Minister Yang Jiechi. The pair discussed tensions over Beijing's policy on rare
earths, a group of 17 elements used to make everything from iPods to hybrid
cars. Clinton said Yang told her that Beijing - which has a near-monopoly on the
global rare earths market - had no plans to withhold rare earth minerals from
the market. She was expected to raise many of the same issues with Dai that she
discussed with Yang, including rare earths, a senior US State Department
official said.
Luxury boats the latest status
symbol for China's growing legion of billionaires - An artist's impression of
Rainbow Land Holding's proposed yacht club and marina in Tianjin. They already
drive flashy cars, wear expensive watches and eat at top-end restaurants. Now,
rich Chinese businessmen have found a new way to flaunt their wealth - luxury
boats. "They want to go out on the ocean and have fun - and take VIP clients to
fish and negotiate deals," says Zheng Weihang, secretary general of the China
Cruise and Yacht Industry Association. With the second-largest number of dollar
billionaires in the world after the US, according to Forbes magazine, China is
drawing eager foreign marina developers and boat makers to its shores to tap the
fast-growing market. China has about 1,000 luxury powerboats and yachts moored
around the country, and the number is expected to balloon to more than 10,000
over the next five years, Zheng says. On a stretch of reclaimed land near the
northern port city of Tianjin, Hong Kong-based developer Rainbow Land Holdings
is building what it claims will be China's largest yacht club and marina with
750 berths. The futuristic design includes a 655-room hotel and underscores the
expected growth in the market. Powerboats are the most popular vessels among
wealthy Chinese, mainly because they are easier to handle than sailboats, and
more than 80 per cent are imported from Europe and the US. Luxury Italian
shipyard Azimut entered the Chinese market five years ago. In that time, it has
sold 30 craft ranging in size from 12 metres to 36 metres and costing as much as
100 million yuan (HK$116 million), Shanghai-based sales representative Tim Bai
says. "China has a huge population and has got a lot of billionaires - there's a
huge market to be explored," Bai says. Bai's optimism is shared by Janet Chen,
editor-in-chief of China Boating magazine, who believes the industry has "huge
potential". Chen expects the number of marinas and berths in China to nearly
double over the next five years to 60 and 5,000 respectively, making for a
"bright future". While Chinese companies are starting to make luxury boats, the
preference among rich consumers is still for foreign-made brands that carry
greater social kudos. "When you want a high-level and high-quality product for
the moment you still go for the foreign-made luxury brand," says Delphine
Lignieres, director of China Rendez-Vous, which organises an annual luxury
lifestyle exhibition in Hainan. In September, Lignieres took a group of 25
Chinese shipbuilders, marina developers and prospective boat owners to the
Cannes Boat Show in France to help them discover the "lifestyle of boating".
After 30 years of rapid economic growth, more Chinese can afford high-end
products and the country is forecast to become the world's top buyer of luxury
goods by 2015, says PricewaterhouseCoopers. Sales of luxury goods on the
mainland hit US$8.6 billion in 2008, according to consulting firm Bain and
Company. When purchases by Chinese abroad are factored in, the market was worth
US$20 billion.
China holds closing
ceremony for Shanghai Expo - The 184-day Shanghai World Expo came to the end as
a closing ceremony started here Sunday evening. Chinese Premier Wen Jiabao and
other dignitaries attended the ceremony. Chinese Vice Premier Wang Qishan said
the Expo has made China and the world come closer together, and a more open,
inclusive and culturally advanced China that steadily moves forward will join
other countries in the world to usher in an ever brighter future for all. He
said the Expo spirit will be carried forward from generation to generation. "I
am convinced that the vision of 'Better City, Better Life' will become reality,"
he said. President of the International Exhibitions Bureau (BIE) Jean-Pierre
Lafon said Shanghai World Expo is an "astounding success". "Shanghai shows that
with a talented organization, a willing to succeed and an excellent
international communication campaign, a World Expo always brings out a true
fascination," he said. The BIE flag was lowered and handed over by Han Zheng,
mayor of Shanghai, and Hong Hao, director general of the Bureau of Shanghai
World Expo Coordination, to Letizia Moratti, mayor of Milan, and Giuseppe Sala,
CEO of the Milan Expo 2015, via Lofon and BIE Secretary-General Vicente Gonzalez
Loscertales. Premier Wen declared the Shanghai World Expo closed. The first of
its kind staged in a developing country, the event attracted 246 participating
countries and international organizations and 73 million visitors. Both figures
are records in the history of expos, the first of which was held in London in
1851. On an area of 5.28 square kilometers, the Expo Site has become a global
village where people can not only see rare cultural treasures from around the
world -- the bronze chariot and horse sculpture from China's Warring States
period (AD 475-221), the statue of Athena from Greece and French impressionist
masterpieces, for example -- but also get a taste of the diversity of the
world's cultures through more than 20,000 cultural events. The gala is eyed in
China as another event of national splendor after the 2008 Beijing Olympic Games
showcased China's status as an economic and political power to the world.
China holds closing ceremony for Shanghai World Expo - The 184-day Shanghai
World Expo came to the end as a closing ceremony started here Sunday evening.
Expo unveils best pavilions
- ROK Pavilion is awarded for the second prize of the best design in the A
category at the Shanghai World Expo 2010.
Germany Pavilion won the first prize
of the best development of the Expo 2010 theme "Better City, Better Life" at the
Shanghai World Expo on Saturday. The prize was awarded in the A category, which
includes pavilions with the largest exposition area (more than 6,000 square
meters).
Russian Pavilion won the second prize
of the best development of the Expo 2010 theme "Better City, Better Life" in the
A categrory, Oct 30, 2010.
ROK Pavilion is awarded for the
second prize of the best design in the A category at the Shanghai World Expo
2010. 
France Pavilion won the third prize of
the best development of the Expo 2010 theme "Better City, Better Life" in the A
category, Oct 30, 2010.
UK pavilion is awarded for the best design
in the A category at the Shanghai World Expo 2010.
Hong Kong owned factories in
Pearl River Delta win concessions on labor rules - The Shenzhen municipal
government has made concessions to Hong Kong factories over proposed rules
intended to allow migrant workers to negotiate pay rises and welfare matters.
But while discussions about the eventual shape of the labour rules continue, a
study has found that the Hong Kong factories need to reinvent themselves to face
new challenges. Federation of Hong Kong Industries chairman Cliff Sun Kai-lit
said yesterday that the Shenzhen government had scrapped two key items and
revised 11 terms of the so-called "collective wage negotiation" proposal two
weeks ago after the trade body complained. The decision eased mounting pressure
from tens of thousands of Hong Kong factories across the border, but could be
bad news for millions of migrant workers in the special economic zone. Earlier,
strong opposition from factory owners had prompted lawmakers in Guangdong
province not to submit the proposal for legislation last month, which
effectively put it on hold indefinitely. Despite this, the governments and the
business sector have since discussed details of the proposal, which is designed
as a mechanism for workers and bosses to negotiate pay rises, bonuses, working
hours, working conditions and benefits to avoid a recurrence of strikes that hit
Guangdong province in the summer. Sun expected the proposal would eventually
come into effect. But he said the scrapping of two key items would lessen the
chances of negotiations being held. First, workers and bosses were no longer
required to meet at least once a year, and second, workers were no longer able
to call for a meeting to negotiate pay rises if 50 per cent of the workforce do
not earn the average pay of their factory. Geoffrey Crothall, spokesman for a
pro-worker non-governmental organisation, China Labour Bulletin, was
disappointed, and criticised the federation for failing to think about the
proposal's benefits. He said he suspected what would result would be "a much
watered-down version". Sun said allowing workers to negotiate wages collectively
would mean every worker getting the same pay and benefits, reducing their
incentive to work harder. "It would turn off us investors," he said. He argued
that an estimated one in three Hong Kong factories in Guangdong, or 18,000 out
of 58,500, had been made idle after the onset of the global financial crisis two
years ago, and had ultimately gone bust. A study commissioned by the federation
and conducted by consultants Enright Scott and Associates found Hong Kong
factories in Guangdong needed to re-invent themselves. It said factories were
now facing challenges brought about by weaker export markets, the strong
bargaining power of importers, labour shortages, higher labour costs, yuan
appreciation, competition from domestic factories and the mainland's policy
favouring high-technology and high value-added industries. Michael Enright,
director of the consultants, said consolidation was likely. "It is a difficult
time, but industries will not go away," he said. "China will continue to be
competitive for the years to come despite the challenges."
Sino-Japan ties run
aground in Hanoi - Beijing accuses Tokyo of 'untrue' statements - In vain,
Vietnam's prime minister, Nguyen Tan Dung, extends welcoming hands to Premier
Wen Jiabao (left) and Japanese Prime Minister Naoto Kan in Hanoi yesterday. It
is already being called Japan's diplomatic "Black Friday". A fresh crisis
threatens to engulf Sino-Japanese ties this weekend after a day of diplomacy
ended with Beijing accusing Tokyo of making "untrue" statements to East Asian
leaders gathered in Hanoi. Japanese officials were forced to retract within just
30 minutes an announcement that Premier Wen Jiabao was about to see his Japanese
counterpart, Naoto Kan, for a formal meeting - the first since tensions over the
disputed Diaoyu Islands flared in early September. Then Assistant Foreign
Minister Hu Zhengyue announced that the prospect of a Sino-Japanese summit in
Hanoi had been "ruined" by the actions of the Japanese side. Hu accused Japan of
making "untrue statements" to other East Asian leaders about yesterday morning's
meeting between the two countries' foreign ministers. "The Japanese side should
take full responsibility for any consequences," he said. The tensions threaten
to poison today's 16-nation East Asia Summit and could imperil Sino-Japanese
talks at the Group of 20 and Asia-Pacific Economic Co-operation forum economic
summits next month. They are widely expected to generate a tough response from
United States Secretary of State Hillary Rodham Clinton in defence of Tokyo.
Clinton arrived in Hanoi last night. The remarks also stand in contrast to the
more placid face displayed by Wen in meetings with Asean leaders together and
individually, including moves to ease tensions over the South China Sea. Wen
told his Southeast Asian counterparts that China was committed to completing a
legally binding code of conduct with the Association of Southeast Asian Nations
to ease tensions in the long term. Specifically, Chinese officials expressed
concern that Kan was turning the territorial dispute over the uninhabited
Diaoyus - which Japan calls the Senkakus - in the East China Sea into a hot
topic at Asean's East Asia Summit. Hu said: "Japan spread groundless distortions
... They want to make the Diaoyu Islands a hot-button issue. During the summit,
it kept spreading speeches that infringe China's sovereignty and territorial
integrity. "What the Japanese side did, as everybody could see, ruined the
atmosphere for the leaders of both countries to meet in Hanoi." In a rare move,
Xinhua issued statements denying reports that China had agreed to resume
negotiations with Japan over oil and gas exploration in the East China Sea.
Another Xinhua statement also lashed out at reported comments from Clinton -
after a meeting with her Japanese counterpart - that the Diaoyus fell within the
terms of the longstanding US-Japan security treaty. The Chinese moves came hours
after Clinton's speech, in which she insisted that the US did not want to
contain China but nonetheless detailed a range of strategic and military issues
in the region.
China pushes back at Clinton's Diaoyu
claim - China voiced concern and strong dissatisfaction after US Secretary of
State Hillary Rodham Clinton said the Diaoyu Islands fell within the scope of
the US-Japan security treaty. "The Chinese government and people will never
accept any word or deed that includes the Diaoyu Islands within the scope of the
US-Japan Treaty of Mutual Co-operation and Security," Foreign Ministry spokesman
Ma Zhaoxu said. Clinton made her comment after meeting Japanese Foreign Minister
Seiji Maehara in Hawaii on Thursday. "The Diaoyu Islands have been an integral
part of Chinese territory since ancient times. China has indisputable
sovereignty over the islands," Ma said. As a bilateral agreement reached during
the cold war, the US-Japan security treaty should not harm the interests of
third parities, including China, the spokesman said. He urged the US and Japan
to do more to boost regional peace and stability. Clinton recited a series of US
grievances with Beijing's policies, ranging from currency rates to human rights,
but said the US was seeking a closer relationship with China, not trying to
check its growing power. She said the US would not relinquish its role as a
major power in the region, but urged China to expand its co-operation with the
US, even as its power and influence expanded. "It is not in anyone's interest
for the United States and China to see each other as adversaries," she said.
Today Clinton will meet State Councillor Dai Bingguo on the island of Hainan , a
last-minute addition to the itinerary to press those messages. Hainan is a
powerful symbol of Chinese military might, hosting an array of intelligence and
espionage facilities of the People's Liberation Army. It was also the place an
American spy plane was forced to land in 2001 after it collided with a Chinese
fighter jet. The 24 crew members were held for 11 days until the Bush
administration apologised. On Thursday, the White House announced that US
President Barack Obama and President Hu Jintao would discuss the global economy,
trade, North Korea, Iran and human rights among other issues when they meet on
November 11 on the sidelines of the G20 summit in Seoul. Clinton recited a list
of issues where the US and China were at odds. They included efforts to blunt
the nuclear threats posed by Iran and North Korea, improve strained
military-to-military ties, combat climate change and resolve US concerns over
China's trade and currency policies. Clinton also called for China to work with
its neighbours to ease tensions over territorial disputes in the East and South
China Seas. "We seek a deeper dialogue in an effort to build trust and establish
rules of the road as our militaries operate in greater proximity," Clinton said.
She called on China to make "responsible" changes in its currency policies, to
address a yawning trade imbalance between the two countries.
Coca-Cola to invest more in China as its
potential No.1 world market - Coca-Cola, the world's number one soft drink
producer, is to increase investment in China, which has a great potential to
become its biggest market.
Tibet's fifth civil airport starts
operation - Passengers get off an Air China A319 plane, the first to land at the
Xigaze Airport, after it completes a test flight and makes a landing at the
airport in Southwest China's Tibet autonomous region at 9:50 am, Oct 30, 2010.
Lenovo to build new center in W China -
China's top PC maker plans expansion in inland regions - China's top PC maker,
Lenovo Group, said on Friday that it will build a new business center in west
China's Sichuan province, as part of its efforts to support increasing demands
and further expand business in the country's inland regions. The world's
fourth-largest PC maker by market share said it plans to invest at least $100
million with partners and suppliers in the initial phase of the new center in
Chengdu, the capital of Sichuan province. The base will include a new factory
and research center. "Our business has seen rapid growth during the past few
quarters and that put great pressure on our production capacity," said Yang
Yuanqing, chief executive of Lenovo. He said the new investment in Chengdu will
greatly boost the company's expansion in the west China regions. Lenovo's move
came shortly after other PC makers added operations in the regions. Last month,
Dell Inc said it will open a second major Chinese operations center next year in
Chengdu, in addition to its current operation based in Xiamen city in Fujian
province. United States-based PC maker Hewlett-Packard also announced in 2008
that it will establish a new manufacturing plant in Chongqing. Yang said on
Friday that the new manufacturing operation will have an annual capacity of more
than 10 million units once it begins production at the end of 2011. Its new R&D
center will employ nearly 1,000 people when it is fully built in the next three
to five years, he said. Lenovo's core business was severely affected by the
global financial crisis as corporate customers reduced IT spending to cut costs.
However, business has been on the rise since November last year, as robust
demand from emerging markets and a series of cost-saving measures helped offset
declining sales in developed markets. Lenovo said in August that worldwide
shipments grew 48.1 percent in the first fiscal quarter ended June from a year
earlier, outpacing the industry growth rate of 20.9 percent. That boosted the
company's share of the global market to 10.2 percent, its first double-digit
figure to date, Lenovo said. "After decades of fast growth, PC penetration in
the East China area has slowed down, but demand in the west of the country has
shown dynamic growth," said Chen Xudong, vice president of Lenovo, and general
manager of its business in China. China's PC shipments grew by only about 13
percent in the third quarter of this year, compared with 38.8 percent growth in
the first quarter, according to figures from the research firm IDC. Antonio
Wang, an analyst at IDC, said the slowdown is mainly due to consumer uncertainty
about the outlook, and the government's recent efforts to cool the economy.
Zhuhai China smooths the waters for
owners of luxury yachts - Coastal city aims to become regional hub for pleasure
boats - Luxury yacht owners, Zhuhai welcomes you. Hong Kong and Macau yachts
will be able to sail and moor their pleasure boats in Zhuhai waters starting
from January without restrictions. This comes after the mainland city announced
simplified applications for local licences. At present, yachts registered
outside the mainland have to go through troublesome procedures before they can
sail into mainland waters. Though the process may take only seven days, owners
who make regular visits need to give up their Hong Kong or Macau licence to
apply for a mainland one - an instant turn-off for most yacht owners. Now, in a
scramble to grab a greater share of the lucrative yacht business in the Pearl
River Delta, Zhuhai has announced that it will allow yachts registered in Hong
Kong or Macau to apply for a local licence without having to give up their
original certification. The new policy will take effect from January 1. Tang Wan
, deputy director of the Zhuhai Maritime Affairs Bureau, said the change would
boost the city's efforts to be the delta's main yacht hub. "Hong Kong and Macau
have more than 10,000 yachts. But the number of the boats coming to Zhuhai each
year is just about 100 and only two of them have a local licence," he said. Boat
owners in Hong Kong welcomed the Zhuhai government's decision. "There are too
many complicated procedures to go through [at present] in order for a Hong Kong
yacht to get a permit and enter Zhuhai waters," a spokesman for the Gold Coast
Yacht and Country Club said. These procedures included having to take the boat
to Zhuhai for the authorities to assess and photograph. "Most of the yacht
owners end up only sailing within Hong Kong waters for fishing or weekend
activities," he said. "Maybe more members will want to [get a mainland licence]
after the relaxation of the rules." The Hong Kong Marine Department declined to
comment on the new policy. But a department spokesman cautioned yacht owners
that the relaxation was just a Zhuhai government policy and would not permit
them to sail in all mainland waters. "Shenzhen has its own policy on managing
vessels. So the move by Zhuhai should not be taken as a relaxation of rules for
all cities in Guangdong," he said. As Hong Kong struggles to find space to meet
the growing mooring needs of pleasure vessels, Shenzhen and Zhuhai are both
aiming to tap into this lucrative market. Coastal cities across the mainland are
also scrambling to capitalise on the pleasure boat sector as a fast-growing
number of rich mainlanders use luxury yachts as a new way to flaunt their
wealth. The Chinese Academy of Social Sciences estimates the mainland's middle
class could expand to 100 million people within six years, bringing huge
business opportunities for the country's yachting industry. Zhuhai has been
clear about its intention to become a "pleasure boat hub". And, neighbouring
Shenzhen, Sanya in Hainan , Xiamen in Fujian , Qingdao in Shandong and Tianjin
all have similar ambitions. Shenzhen hosts the start of the China Cup
International Regatta today and, with its 1,145 square kilometres of waters and
much cheaper, plentiful berths, is aggressively working to grab a share of Hong
Kong's luxury boat market. Xinhua reported early this month that Tianjin planned
to spend nine billion yuan (HK$10.4 billion) building a 750-berth "yacht port"
by the year-end, allowing the country's super-rich to dock their luxury vessels
nearer Beijing.
Factory set to become apple of
Sichuan's eye - Foxconn's factories bring economic growth for workers and local
governments. Amid the autumn chill and drizzle in Chengdu, the capital of the
southwestern province of Sichuan, hundreds of workers in their early 20s listen
politely while their bosses make a speech about their new factory - soon to be
producing Apple iPhones and iPads. The employees of Hongfujin Precision
Electronics (Chengdu), a subsidiary of Taiwan-based Foxconn Technology Group,
listened to the prolonged speeches patiently and applaud when needed. Some are
clearly happy that their employer has moved production from Shenzhen to Sichuan.
"Sichuan is my hometown. I'm glad the workplace is closer to home," said a woman
who only identified herself as Xiaomei. Foxconn made headlines after 13 workers
committed suicide at its Shenzhen plants this year. While the company cited
personal reasons behind the suicides, media reports blamed long working hours
and the monotonous lifestyle of workers who live in factory dormitories. When
asked if she is happy with her employer, Xiaomei looked as if the question had
never occurred to her. She then diverted the question to a colleague who
replied: "Hmm, Yes, I am. I can eat hometown spicy cuisine in the canteen now."
Sichuan is a key source of labour for the mainland's coastal manufacturing hubs.
After spending years working in hot southern cities like Shenzhen, the move to
their home province was welcomed by many colleagues, according to the two
workers. The move had also been welcomed by inland governments including Sichuan
and Henan, which competed to offer the best policies. Boosting the economic
growth of their provinces is crucial for officials to obtain promotion. But with
factories moving inland to take advantage of lower costs, there is concern these
provinces will suffer the pollution and social dislocation problems seen in the
coastal cities. To inland provinces which have lagged behind China's economic
development, the arrival of more manufacturers means increased foreign direct
investment, higher foreign trade and larger gross domestic product, all key
indicators in determining the performance of local officials.
China Unicom's profit plummets as it
ramps up 3G subsidies - China Unicom (SEHK: 0762), the country's No 2
mobile-phone operator, reported a 73 per cent fall in third-quarter profit
yesterday, lagging behind expectations, as it ramped up handset subsidies to
promote its 3G service. The company posted a net profit of 744 million yuan
(HK$861.8 million) for the three months. It was a steep decline from the 2.72
billion yuan recorded a year earlier and below expectations for 1.17 billion
yuan, according to a Reuters poll of five analysts. The large fall in
third-quarter profit could be attributed in part to the 1.82 billion yuan Unicom
spent on 3G handset subsidies in the third quarter, well above the 1.17 billion
yuan it spent in the entire first half of the year as it started to promote its
3G network. "Although revenue from the 3G business and fixed-line broadband
business of the company has been growing fast, the company's earnings for 2010
may be substantially different from earnings for 2009," the company said.
Unicom's figures come after rivals China Mobile (SEHK: 0941) and China Telecom (SEHK:
0728) reported weak third-quarter earnings, as the three actively court higher
paying 3G customers in the face of slowing growth for the broader mainland
mobile market. Unicom has had the most difficult transition, following an
overhaul of the mainland's telecoms sector two years ago that left the industry
with three main players. The company reached its current form through the merger
of the No 2 wireless and fixed-line carriers. Average revenue per user at
Unicom, the only mobile carrier to sell Apple's iPhone on the mainland, clocked
in at 43.5 yuan per month in the first nine months of this year, compared with
42.9 yuan in the first half. Earnings before interest, taxes, depreciation and
amortisation margin fell 0.5 points to 36.3 per cent from 36.8 per cent in the
first half of the year. China Unicom has been seeing revenue from its core
fixed-line voice operations slip as more users migrate to mobile. The company
has been trying to push data services to make up for the shortfall.
China's ZTE wins US's Federal Information Processing Standards (FIPS) 140-2
security validation security certificate vital for it to supply sensitive US
firms - The entrance to the Shenzhen office of ZTE. The mainland's No 2 maker of
telecoms equipment, ZTE plans to buy US$3 billion worth of components from the
US over three years. ZTE Corp (SEHK: 0763), which has raised security concerns
among politicians in the United States, apparently burnished its credentials in
the market after obtaining a key certification for its wireless equipment from
American security experts. The Shenzhen-based company said yesterday it was the
first mainland maker of telecommunications equipment to receive the Federal
Information Processing Standards (FIPS) 140-2 security validation by the
National Institute of Standards and Technology. FIPS 140-2 is an
information-technology security accreditation programme for so-called
cryptographic modules produced by telecommunications systems suppliers such as
ZTE, who seek to have their products certified for use in government departments
and regulated industries - including financial services and health care - that
collect, store, transfer, share and disseminate sensitive but unclassified
information. Cryptographic libraries are commonly used on ZTE's wireless
infrastructure products for security. The official certification comes about two
months after eight US senators asked the Obama administration to look into a bid
by Huawei Technologies to supply key telecommunications infrastructure to Sprint
Nextel Corp, which operates America's third-largest wireless communications
network. The lawmakers expressed concern that national security might be
compromised in light of claims that Huawei does business with the Revolutionary
Guard in Iran and is closely associated with the People's Liberation Army. Their
action inevitably served as another red flag for US network service providers to
reconsider their purchase of infrastructure from mainland suppliers. "We don't
think the US is an open market; it is a closed market," Xu Ming, ZTE's
vice-president for wireless product business, said last month when asked to
describe the hurdles that mainland telecommunications equipment suppliers must
overcome in the US. Following the successful security certification, however,
the rhetoric from ZTE has been toned down. "ZTE, which has been providing
products and services to more than 500 carriers across more than 140 countries,
regards transparency as the key to maintaining trusted business relationships,"
its chief of US operations, Cheng Lixin, said. A spokeswoman from ZTE
headquarters in Shenzhen yesterday also noted the company, the mainland's No 2
telecoms equipment maker, will continue to invest in the US. ZTE, for example,
will buy US$3 billion worth of semiconductor components over the next three
years from five US companies. Shanghai-based technology consultancy RedTech
Advisors described the chip purchases as "a sweetener" that ZTE hoped would
enhance its expansion in the US.
Leather design competition during
China Int'l Fashion Week - Contestant Dong Shuai from Northeast Dianli
University won the gold prize, among 20 designers entering the final of the
competition on Saturday.
Faye Wong kicks off comeback
concert in Beijing - Faye Wong performs on the stage of Wukesong Sports Center
in Beijing, Oct. 29, 2010. Chinese singer Faye Wong kicked off her comeback
concert tour in Beijing Friday.
Glasses are being raised to next
week's wine fair, which has attracted 20 percent more traders than last year.
Benjamin Chau Kai-leung, deputy executive director of the Trade Development
Council, said the fair has made the SAR a force on the international wine scene.
Wine imports increased by 72 percent in the first nine months of the year to
HK$4.67 billion. The Hong Kong International Wine and Spirits Fair, which runs
for three days from Thursday at the Hong Kong Convention and Exhibition Centre,
will showcase 700 exhibitors from 29 countries. Chau believes the SAR is a
suitable place to hold such fairs since wine duties were eliminated in February
2008. Many of the exhibitors hope to use the event as a springboard to the
expanding mainland market. "The annual average wine consumption per person in
Hong Kong is about 3.7 liters, while it is less than one liter in the mainland,
which means the market has strong potential," he said. The first two days will
be limited to trade visitors, but the public may visit on Saturday by paying
HK$200. About 30 side activities will be held to enrich the knowledge of wine
lovers, including how to start a collection. Chau said the fair will complement
the Tourism Board's Hong Kong Wine and Dine Festival, which began yesterday and
runs until Sunday at the West Kowloon Waterfront Promenade. Admission to the
festival is free and it targets all wine lovers. Australia is the partner
country and has representatives from its own 62 designated wine regions. Italy
has the biggest pavilion with more than 110 producers. The country's wine
imports into Hong Kong recorded the highest increase of 57 percent at US$11
million (HK$85 million) in the first eight months of the year. Speaking at the
opening ceremony, Financial Secretary John Tsang Chun-wah said wine imports in
the first nine months enjoyed a 40 percent growth over last year, and 80 percent
over 2008. "Hong Kong has overtaken London to become the world's second-largest
center for wine auctions, just behind New York. "The 34 wine auctions held here
in the past 2 years have netted a total of HK$1.5 billion and more are in the
pipeline" Tsang said.
Would-be homeowners were issued a
buyer-beware warning by the city's finance chief as prices continue to rise
despite a raft of government measures to cool the market. Weeks after he
announced steps to dampen home prices, Financial Secretary John Tsang Chun-wah
said he was still worried about the situation. Tsang said the administration
could take more steps to stabilise prices and address speculation. "The increase
in housing prices is worrisome," he said. "The administration is watching the
situation carefully and will take action if prices climb too high. Buyers should
carefully consider how much they can afford before deciding whether to buy a
home." His list of potential solutions included increasing the supply of
housing, preventing over-borrowing and stepping up the supervision of sales of
new homes. Tsang also stressed that the interests of the city's nearly one
million property owners had to be considered. "Heavy fluctuations in the price
of property are unfavourable to economic and social stability, since many
citizens see their residential properties as the most important investment in
life," he said. "There are more than 840,000 households in town living in self-
acquired private property. We believe they would not want to see the government
introducing policies that would depreciate the value of their flats." Speaking
after Tsang in the traditional motion of thanks for the chief executive's policy
address at the Legislative Council, Secretary for Development Carrie Lam Cheng
Yuet-ngor called for flexibility over residential land supply. Housing minister
Eva Cheng also said she would speed up progress of the My Home Purchase Plan, a
new subsidised housing initiative that has been widely criticised for not
supplying enough flats and for the long time lag until it comes into effect -
2014. The scheme will supply a total of 5,000 "no-frills" flats, of which the
first phase of 1,000 will be offered in 2014. She said: "We expect to open the
scheme for application in 2012. We will study with the Housing Society the
practicality of accelerating the timetable. If the scheme received a good
response, the government would strive to provide more land for this scheme." But
she emphasised the time constraints in building the flats. "Many lawmakers
lambasted the scheme, that it could not immediately resolve the plight of home
aspirers," Cheng said. "Any housing scheme needs time for planning and
construction." The ministers' pledges did not stop lawmakers continuing attacks
on the cooling measures. Civic Party lawmaker Alan Leong Kah-kit said the chief
executive "knew the root of the illness but was not curing the patients".
"Everyone knows the resumption of the Home Ownership Scheme can help, but Tsang
is not adopting it, that is why the structural and in-depth conflicts remain,"
he said. Meanwhile, a Hong Kong University survey shows public support for the
My Home Purchase Plan falling.
Cathay Pacific (SEHK: 0293) pilots are
threatening to impose a work to rule that could disrupt flights in the run-up to
Christmas and the Lunar New Year holidays unless management yields to their
demand for pay rises averaging 30 per cent over the next three years. The Hong
Kong Aircrew Officers Association (AOA) will poll its 1,600 members from next
week on whether to authorise the union to declare contract compliance, where
pilots refuse to work beyond rostered duties. The campaign - which could cause
flight delays and cancellations - would be the first of its kind since the
tactic was used during a bitter 2001 dispute over pay and conditions, triggering
the sacking of a group of pilots known as the 49ers. Cathay Pacific said it was
disappointed by the move, which it said would cause undue anxiety among
employees during delicate continuing pay negotiations. A yes vote from pilots
would not trigger automatic contract compliance but would give association
officials the ability to invoke it at any time they see fit during continuing
pay talks with management. The poll is expected to take weeks to complete. Union
leaders say pilots are angry and frustrated that they have had only one nominal
pay rise since 2002 - in 2008 - and say their salaries have fallen behind those
of pilots in other major international airlines. They are asking for a pay rise
averaging more than 30 per cent over a four-year period, backdated to January
this year, including "catch-up" increases and annual guaranteed rises at set
percentages until 2013. Cathay pilots on the common B-scale pay system earn
between HK$33,179 a month for a newly recruited second officer to HK$144,000 for
a captain with 19 years' service. Expatriate pilots, who make up just under half
of Cathay's 2,500 pilots, also receive housing allowances ranging from HK$24,000
to about HK$60,000 and have 75 per cent of overseas school fees paid.
Chinese premier proposes enhancing ASEAN
Plus Three cooperation - Wen Jiabao made a four-point proposal on Friday for
strengthening cooperation in priority areas between ASEAN and China, Japan and
South Korea.
$8.29b power deal signed - Shanghai
Electric to supply services, equipment to India's Reliance ADA - Shanghai
Electric Group, one of the country's three largest power equipment makers,
signed an $8.29 billion deal on Thursday with India's Reliance ADA Group for the
supply of power equipment and related services over a 10-year period. The
Shanghai Electric Group on Thursday signs an $8.29 billion deal with India's
Reliance ADA Group for the supply of power equipment and related services.
Shanghai Electric will sell 36 660-megawatt (mW) thermal power generation units,
as well as spare parts for three power stations to Reliance at the rate of three
to four units a year starting from 2011, the company said in a statement to the
Hong Kong stock exchange. Shanghai Electric said this contract is its largest
and will enhance its market share in India's power market, bringing annual sales
revenue of about $500 million to $600 million, or 6 to 7 percent of its total
revenue for 2009. J. P. Chalsani, chief executive officer of Reliance Power
said: "The strategic cooperation between Reliance Power and a leading global
supplier like Shanghai Electric will enable faster execution of our projects."
The supply of boiler, turbine, and generator packages has stared and will be
completed over the next three years, according to Reliance. Another company
filing showed that Shanghai Electric Group recorded a 33.2 percent year-on-year
increase in the third quarter with a profit of 945 million yuan ($142 million).
Its shares rose by up to 7.43 percent, the highest since April 2008. About 84
percent of Shanghai Electric's revenue came from China last year and just over
16 percent from overseas. Indian power companies have placed orders for overseas
equipment to generate 26,000 mW annually because of the slow delivery cycle of
local manufacturers to meet growing demand. The main Chinese suppliers include
Shanghai Electric, Dongfang Electric and Harbin Electric. Indian buyers include
industrial groups Reliance, Essar, Adani, KSK Industries, JSW Energy and Jindal
Steel & Power. The deal came after India's government turned down an earlier
proposal to impose duties on power equipment imported from China. India was
proposing to levy a 14 percent duty on power equipment imported from China in
September, citing the reason that local power equipment producers, such as
Bharat Heavy Electricals Ltd and Larsen & Toubro Ltd, are facing increasingly
fierce competition from Chinese power equipment makers, which are selling
products at prices that are at least 15 percent lower. But the proposal was
rejected recently because it would result in a shortfall in the capacity
addition target in the 11th Five-Year Plan (2006-10). India has a huge energy
deficit, as supply is always one step behind its fast-growing economy. It has a
peak power shortage of 12 percent. India has a power generation capacity of
153,000 mW and expects to add an additional 62,000 mW by 2012. But India does
not have enough equipment production capacity to achieve that goal, forcing it
to look to China to help fill the gap. China has won projects of 36,800 mW in
the last two years, equivalent to more than half the added capacity India is
aiming at by 2012.
Halloween masks hot in market - A woman
selects Halloween-related toys in a shop in Yiwu, East China's Zhejiang
province.
Shanghai on Sunday shuts the
gates to the World Expo – a six-month exhibition of culture and technology that
saw a parade of foreign leaders and a display of China's growing power.
Organisers say Expo has been a roaring success, pointing to the more than 71
million visitors who toured the massive site and the 189 countries that took
part, and could have far-reaching benefits for the city and the nation. “This
Expo could be a landmark for the process of Chinese modernisation,” Expo
Assistant Secretary General Xu Bo told reporters. “The Expo gave us a wonderful
opportunity to learn how to be a global citizen. This learning process is just a
start, but it will have a very profound influence on the behaviour of Chinese
people.” For China, the World’s Fair offered an opportunity to showcase its
growing economic and political clout -- an opportunity it considered to be on a
par with its successful hosting of the 2008 Beijing Olympics. United Nations
Secretary General Ban Ki-moon was due to be the final major guest on Sunday,
joining a line of foreign VIPs that has included kings, presidents and military
strongmen. Russian President Dmitry Medvedev, French President Nicolas Sarkozy
and US Secretary of State Hillary Clinton were among those who toured the
two-square-mile site – more than twice the size of Monaco. Also on the list were
leaders rarely seen at international events including Zimbabwe’s President
Robert Mugabe, Iranian President Mahmoud Ahmadinejad and Myanmar’s military
ruler Senior General Than Shwe.
Singapore grooms China's rising star
cadres - American politicians seem preoccupied with the jobless rate, and Korean
politicians talk about the price of pickles. So what's a safe greeting between
two unacquainted Chinese officials when they first meet? "Have you trained in
Singapore yet?" could be a good bet for forging fellowship. There is a growing
trend in the central government to improve administration by training its cadres
overseas. A large number of mainland officials - possibly as many as 40,000 -
have been sent abroad for training programs. Singapore seems to be the favoured
destination. Training programmes to help the cadres polish their resumes range
from brief inspection tours to courses lasting anywhere from three months to a
year. Singapore's Nanyang Technological University says it has been offering
tailor-made programmes for China's officials since 1992. So far, nearly 10,000
officials have taken courses, which first focused on economic content but later
expanded to include public administration.
49 new billionaires join ranks of
super rich amid IPO frenzy - Wahaha chief tops wealth list with personal fortune
of US$8b - The initial public offering bonanza and surging stock prices helped
the mainland to produce 49 more billionaires this year, with Wahaha Group
chairman Zong Qinghou crowned as China's richest man, according to Forbes
magazine. The number of billionaires on the mainland jumped to 128 from 79 last
year. The 400 super rich that made the China rich list own a combined fortune of
US$423.2 billion, up 34.6 per cent from last year. "China is leading the world
in initial public offerings this year, and the big increases in wealth and the
number of billionaires on our list this year are closely linked to a large
number of successful IPOs by the Chinese companies," said Russell Flannery, who
compiles the list. Li Li and Li Tan, a couple who founded Hepalink
Pharmaceutical, are in the fifth place with a net worth of US$5.38 billion,
after the company secured a share listing on the Shenzhen Stock Exchange's SME
board. The couple saw their wealth top US$7.5 billion in May when shares of
Hepalink made a dazzling trading debut before retreating. The mainland is the
world's largest IPO market this year as cash-hungry companies flooded the
mainland stock exchanges to raise growth capital. In the first nine months of
this year, 257 IPOs were launched on the mainland and netted a total of 382.8
billion yuan (HK$444.1 billion). Liang Wengen, chairman of heavy equipment maker
Sany Group, climbed nine places to become the third-richest mainlander after
listing Sany Heavy Equipment International Holdings in Hong Kong at the end of
last year. His net worth rose to US$5.9 billion, US$2.8 billion more than last
year. Zong, chairman of soft-drinks giant Wahaha and with a net worth of US$8
billion, unseated Wang Chuanfu, chairman of car and battery maker BYD, to top
the rich list. Wang's personal wealth shrank to US$4.25 billion from US$5.8
billion last year. He fell to 10th position on the new wealth list. The
fast-growing mainland economy created tremendous opportunities for
entrepreneurs. In 2000, only two mainland tycoons made the Forbes list and they
each had a net worth of not much more than US$1 billion. "The strong
entrepreneurial spirit, buoyant stock and asset markets, China's sustained
economic growth, as well as the appreciation of the renminbi, are going to
produce an even bigger number of billionaires at a stunning pace in the years to
come," said Zhou Jiangong, chief editor of Forbes China. Robin Li, founder and
chief executive of Web search engine Baidu, is number two on the rich list after
his assets jumped more than US$4 billion to US$7.2 billion. Baidu's shares
skyrocketed 143 per cent over the past year as Google's mainland business
faltered. China now trails only the United States in terms of the number of
billionaires. A mainland tycoon needs to own 420 million yuan of assets to make
Forbes' top 400 China rich list.
China Petroleum & Chemical (Sinopec
(SEHK: 0386)), the nation's second largest oil and gas producer, posted a 14.8
per cent year-on-year rise in third quarter net profit on higher oil prices. Net
profit was 19.62 billion yuan (HK$22.75 billion), up from 17.09 billion yuan in
the year-earlier quarter, it said last night. Oil and gas production operating
profit surged 61 per cent year-on-year to 18.9 billion, but chemical production
profit plunged 62 per cent to 1.67 billion yuan. Refining and fuel marketing
profit was flat at 11.3 billion yuan. Profit for the first nine months grew 11.6
per cent to 56.4 billion yuan. Rival PetroChina (SEHK: 0857)'s share price
yesterday fell 0.5 per cent to HK$9.54 despite it posting a 12.5 per cent
year-on-year rise in net profit to 34.7 billion yuan, 3 per cent ahead of
analysts' expectation. The third-quarter profit is 6 per cent higher than that
of the second, thanks to a 25 per cent jump in gas price since June 1, despite a
2.9 per cent decline in oil and gas output and a 5.7 per cent fall in average
oil selling price to US$70.5 a barrel. Refined fuel and chemicals output also
fell, as demand weakened due to Beijing's economic tightening. Profit for the
first nine months grew 12.3 per cent year-on-year to 100 billion yuan, on the
back of a 46.3 per cent jump in oil selling price to US$71.8 and a 4 per cent
increase in oil and gas output. The benefits were offset by weak refining
operations due to fuel price controls and lower chemical profits. Meanwhile,
offshore oil and gas producer CNOOC (SEHK: 0883) yesterday reported a 64 per
cent rise in revenues for the third quarter to 38.9 billion yuan, thanks to a
48.8 per cent jump in output to 88.7 million barrels of oil equivalent (boe) and
a 9.3 per cent rise in average oil selling price to U$74.15. It raised its
annual output target to 319 million to 329 million boe, 14.7 per cent higher
than the previous target of 275 million to 290 million boe if mid-points are
compared. Sanford Bernstein analyst Neil Beveridge said in a research note he
may raise his earnings forecast on CNOOC for this year by 6 to 7 per cent as the
new target is ahead of his estimate of 305 million boe. Sister firm China
Oilfield Services (SEHK: 2883)' share price gained 2.7 per cent yesterday to
HK$12.3, after reporting a 29.4 per cent year-on-year decline in net profit to
1.25 billion yuan. Nine-month profit was up 22 per cent to 3.4 billion yuan. A
Goldman Sachs research note said the third-quarter profit would have risen had
it not booked a one-off, non-cash accounting item resulting in higher revenues
last year. The nine-month profit amounted to 91 per cent of analysts' estimate
as polled by Bloomberg. Fourth-quarter net was 11 per cent of the annual total
in 2008 and last year.
