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March 31, 2010
The Department of Health would inspect about 500 manufacturers of Chinese medicine in Hong Kong, Director of Health Dr Lam Ping-yan said on Monday.
The Octopus card should also accept yuan to integrate the city's rail services with the mainland system, says MTR Corp chairman Raymond Chien Kuo- fung.
Towngas – the largest energy supplier in Hong Kong – said on Monday it would not raise its tariffs again over the next two years following an announcement last week of an increase.
China Construction Bank (0939) said net profit last year rose 15.3 percent from the previous year to 106.8 billion yuan (HK$121.42 billion) on improved fee and commission income and lower impairment losses on assets. March 30, 2010
Guangzhou has proposed launching a land sale system similar to the application list in Hong Kong as it seeks to cool home prices. But an analyst said the move was unlikely to work because it would only result in a fall in land supply, leading to further rises in home prices. In response to a central government campaign to control runaway property prices, the Guangzhou municipal government on Thursday announced seven measures to control land prices and increase the supply of government subsidised homes for low and middle-income groups. The measures included the adoption of Hong Kong's land sale application list system. The proposed application list system would let the market decide on the timing of land sales and the prices of land sites, the Guangzhou Daily quoted government officials as saying. Under Hong Kong's application list system, a developer can trigger an auction of a site on the land reserve list by making a guaranteed bid that is at least 80 per cent of a site's minimum price. "I do not know why it would help cool off land prices. I do not understand why officials think it is a good land sale system," said Sherman Lai, the chairman of Centaline Group. "This system is useful only in a property market downcycle, because it can ensure that the site on offer can be sold." In Hong Kong, the system was blamed for a massive shortfall in land supply. That led to record-low levels of new housing completions, resulting in steep price rises. Other Guangzhou measures included an investment of 4.5 billion yuan (HK$5.1 billion) to build three million square metres in gross floor area of subsidised housing, involving land supply of 1.05 square kilometres. The Guangzhou government's moves to cool the market also included increasing the supply of land to build "restricted price" flats for lower and middle-income groups. Ten thousand such flats, in which the government caps the selling price, will be launched this year. The government will provide subsidies for developers of restricted price homes by charging lower land prices. The government will also establish an alarm system for the land bidding system to better monitor whether the market is overheating. As part of the campaign to cool the market, Guangzhou will also investigate whether property developers are hoarding land or illegally building villas.
The Ministry of Water Resources yesterday warned that the northern and southern regions may be battered by drought at the same time.
March 29, 2010
Hong Kong, one of the world's freest economies, is making headway in its campaign to be part of the mainland's next five-year plan.
The city's most influential business chamber is considering suggesting workers be paid not less than around HK$25 an hour, a proposal that is likely to stoke the already divisive debate about what level the statutory minimum wage should be set at. According to insiders familiar with the situation, the Hong Kong General Chamber of Commerce is finalising a submission to the government in which it proposes a minimum wage of HK$24 to HK$25 an hour. This is below the hourly rate of HK$33 supported by labour unions. The insiders said the HK$25 level was derived as the midpoint between what domestic helpers earn - HK$23 to HK$24 an hour - and Comprehensive Social Security Assistance, which works out at HK$28 to HK29. At HK$25 an hour, the chamber estimates between 25,000 and 150,000 jobs could be lost, the insiders said. A preliminary internal survey of the chamber's members found that small companies might have to lay off between 20 per cent to 50 per cent of their staff as a result. Taiwan is using its goal of a trade deal with the mainland to open talks with Japan, the United States and other powers on free-trade deals expected to boost the island's economy, officials say.
China to issue 26 bln yuan 10-year T-bonds - The bonds would be traded on the interbank bond market and securities bond market from March 31. They have a fixed annual interest rate of 3.36 percent, with the interests to be paid every half year, on March 25 and Sept. 25, respectively.
March 28, 2010
Chief Executive Donald Tsang Yam-kuen in January cancelled a private audience he had requested with Pope Benedict - a meeting that would have been an extremely rare top-level contact between China and the Vatican - because he wanted to remain in Hong Kong through a testing period in local politics, according to a Catholic Church official with knowledge of the arrangements. Tsang, a devout Catholic, was scheduled to meet Pope Benedict at the Vatican on January 27 for a dialogue and blessing, the official said.
The Housing Authority on Friday approved a government proposal to sell its remaining 4,077 surplus Home Ownership Scheme (HOS) flats by June.
A US think tank has accused Hong Kong of undervaluing its currency to maintain its competitive edge against the mainland, a statement immediately derided by the government. The Peterson Institute for International Economics on Wednesday told Congress that the Obama administration should also label Hong Kong, Malaysia, Singapore and Taiwan as territories deliberately keeping their currencies undervalued to maintain competitiveness against China. Fred Bergsten, head of the institute, told the House Ways and Means Committee that a successful campaign to pressure Asian nations on the currency issue could create as many as 1.2 million new American jobs. Financial Secretary John Tsang Chun-wah said in response that Bergsten's claim about an undervalued currency was "odd", given that the Hong Kong dollar has been pegged against the US dollar for the past two decades. The financial arm of Cheung Kong (Holdings) is offering the city's lowest mortgage rate at 0.5 percentage point above the one-month Hong Kong interbank offered rate (Hibor).
Discount hotel chain China Lodging Group priced shares in its initial public offering at the top of the expected range on Thursday, according to an underwriter. The company sold 9 million American Depositary Shares for US$12.25 each, raising about US$110.25 million. It had planned to sell shares for between US$10.25 and US$12.25 each. China Lodging Group rents budget hotel rooms in mainland under three different brands for an average of 174 yuan (HK$197.50) per night. The main page of the company’s website shows three pictures of hotel rooms, including one room with bunkbeds. Most of China Lodging’s hotels are located in big cities in industrialised, eastern mainland and its website says it aims to serve value-conscious business and leisure travellers. The company, whose founder and executive chairman Qi Ji also co-founded online travel services provider Ctrip.com and competing mainland discount hotelier Home Inns & Hotels Management, has posted rapid growth. The number of rooms the hotel chain had to rent increased 160 per cent in 2008 and another 35 per cent last year. China Lodging grew its business to 28,360 rooms last year. Its occupancy rate was 94 per cent, up from the mid- to high 80s the previous two years. Mainland’s hotel industry has posted speedy growth as foreign and domestic travel increase. business travellers, in particular, have helped grow the market for budget hotels as companies aim to control costs. But some fear the growth could be too much. The central government has taken steps to cool its explosive real estate growth and media reports say the hotel industry could be next. Underwriters on the China Lodging IPO were led by Goldman Sachs and Morgan Stanley. The shares are expected to begin trading on the Nasdaq on Friday under the symbol “HTHT.”
Industrial and Commercial Bank of China (1398) plans to sell 25 billion yuan (HK$28.42 billion) worth of convertible bonds to shore up capital, after posting a net profit of 128.6 billion yuan for last year.
March 27, 2010
MTR Corporation (SEHK: 0066) on Thursday announced its first fare rise in 13 years – a 2.05 per cent increase for each trip. The higher fares would start in June, the corporation said. The increase was based on a fare adjustment mechanism announced earlier by the government. The Transport Department also said it was receiving applications for fare increases from the operators of 38 franchised minibus routes. This includes 23 routes in Kowloon, eight in Hong Kong Island and seven in the New Territories. Chairman of the Coalition to Monitor Public Transport and Utilities Richard Tsoi Yiu-cheong said he opposed the MTR fare rise. “We do not think it’s an appropriate time to increase transport fares,” Tsoi told local radio.
Hong Kong pharmacies on Thursday began to remove popular Po Chai pills from their shelves – after health authorities warned they might be harmful to people's health.
Internet domain company GoDaddy.com said it planned to stop registering domain names in China, joining Google in protesting cyber attacks and censorship in that country. A top mainland official has said the nation's online population, already the largest in the world, is expected to exceed 500 million in the next two to three years. March 26, 2010
Construction work on the long-awaited Sha Tin to Central Link will be delayed for at least a year, with the government being extra cautious in drafting the final route for the rail line to avoid further controversy. Construction of the section between Hin Keng in Sha Tin and Hung Hom was supposed to begin this year but transport minister Eva Cheng said yesterday that the final plan would not be released until next year. "We care about meeting the schedule but we also hope that [the final design] will not face too much opposition," she said. The delay will disappoint many residents but it has also triggered fears that the cost of the HK$37.4 billion rail link may escalate, like that of the HK$66.9 billion express rail line to Guangzhou. The Building Services Tender Price Index - a benchmark the government adopts in estimating project costs - rose to a record level in the second quarter of last year after a series of large government projects started rolling in. The Transport and Housing Bureau does not yet have a date as to when construction of the line can start but Cheng said it had to wait until officials completed a thorough consultation on the affected communities, which it hoped would be finished later this year. She said a longer public consultation was necessary to resolve disagreements. Issues to be sorted out included the route's alignment, whether the depot at Diamond Hill should be below ground level, or if the MTR Corporation (SEHK: 0066) could abandon plans to use several parks and playgrounds as worksites. The delay means the section between Sha Tin and Hung Hom is unlikely to be finished in 2015 as scheduled and the opening of the cross-harbour section that links Hung Hom to Central South may also fall behind a scheduled 2019 target.
Rules loom in bid to curb property sales speculation - The government is not waiting for an imminent written explanation by Henderson Land of uncompleted property deals and is already considering the imposition of more stringent sales restrictions.
March 25, 2010
Bank of China, the country’s No 4 lender by assets, on Tuesday posted a forecast-beating quadrupling in fourth-quarter net profit, boosted by a surge in lending under Beijing’s 4 trillion yuan (HK$4.5 trillion) stimulus program. The state-controlled lender also said it expected yuan lending to rise by about 17 per cent this year, pointing to a continued loose monetary policy that in recent months has led to fears of an asset price bubble. “The global economic depression has for the most part come to an end, while the domestic economy continues to recover,” bank President Li Lihui said in a statement. “It is expected that 2010 will see the continuation of an important period of strategic opportunity for the banking sector.” A record 9.6 trillion yuan in new loans by mainland banks last year is set to cement the positions of Industrial and Commercial Bank of China (SEHK: 1398) and China Construction Bank (SEHK: 0939) as the most profitable banks in the world. US powerhouse Goldman Sachs, by comparison, posted a US$13.4 billion profit for last year. The lending surge has, however, raised worries about growth in bad loans at the banks and set off a capital-raising spree among several mid-sized lenders. Bank of China, in which Royal Bank of Scotland has a 2.69 per cent stake, reported October-December earnings of 18.9 billion yuan, compared with 4.42 billion yuan a year earlier. Analysts had forecast on average a profit of 17.2 billion yuan, according to Thomson Reuters I/B/E/S. The fourth quarter of 2008 was impacted by impairment allowances the bank, the country’s top foreign exchange lender, booked against its exposure to US mortgage-related securities. The bank’s capital adequacy ratio fell to 11.14 per cent in the fourth quarter, down from over 12 per cent in the last three years following a lending spree in an attempt to keep the economy growing. While last year’s growth was driven by volumes, Beijing’s moves to rein in lending growth could boost bank net interest margins – the difference between deposit and lending rates and a key source of profit for mainland banks – and sustain growth this year, analysts said. Net interest margin clocked in at 2.04 per cent, up from 2.03 per cent in the first three quarters of last year, but down from 2.63 per cent in 2008. Bank of China is the first among major mainland banks to report earnings. ICBC, the world’s most valuable bank, is scheduled to report on Thursday and China Construction a day after that. Analysts said Bank of China’s profit growth would likely be the highest among major mainland lenders for both the last year and the fourth quarter alone, mainly because the bank lent the most last year with roughly 1 trillion yuan of new loans. Bank of China, which served as mainland’s central bank during the early part of the 20th century, is run by chairman Xiao Gang and president Li Lihui, who each made about 1.5 million yuan in 2008. As of the end of 2008, the bank operated 10,789 outlets at home and abroad. BOC (SEHK: 3988)’s Hong Kong shares ended up 1.76 per cent on Tuesday at HK$4.04, ahead of the results. The benchmark Hang Seng Index ended up 0.3 per cent. BOC shares in Shanghai closed down 0.24 per cent. The bank’s Hong Kong shares have fallen 4 per cent so far this year. Over the same period, larger rivals ICBC and China Construction’s shares are down 11 per cent and 7 per cent, respectively.
TIC executive director Joseph Tung Yao-chung said on Tuesday all package tours to Bangkok – suspended because of political tensions there – would resume on Wednesday.
Internet giant Google has chosen Hong Kong to be a safe haven for its uncensored online search services after withdrawing its Chinese-language www.Google.cn operations from the mainland. An Italian prosecution team unlawfully searched four companies in Hong Kong to investigate fraud charges against Italy's Prime Minister Silvio Berlusconi, the High Court heard yesterday. Expo cash windfall expected - Visitors stopping over in Hong Kong before going to and returning from the Shanghai World Expo in May are expected to spend HK$200 million to HK$300 million.
China has ordered 78 state companies whose core business is not property to submit plans to divest from the sector within 15 working days, state media reported on Tuesday. The order, from the State-owned Assets Supervision and Administration Commission (SASAC), is part of a broader government campaign to rein in fast-rising housing and land prices. State-owned enterprises (SOEs) from arms manufacturers to tobacco producers have expanded into property development in recent years, attracted by outsized profits but bidding up prices in the process. Last week, two state companies won land auctions in Beijing that smashed price records, generating a public outcry. SASAC chairman Li Rongrong had instructed state companies to formulate exit strategies within 15 working days from March 19, the Securities Times reported. Mainland would also conduct a national investigation from March to July to check whether property developers were hoarding land or illegally building villas, the newspaper quoted Yun Xiaosu, vice-minister of land and resources, as saying. Yun said at least 70 per cent of mainland’s land supply coming onto the market this year must be used to build affordable housing and small residential units. Property prices rose a nationwide average of 10.7 per cent in the year to February, although price inflation has been much more extreme in high-end housing. Beijing has tweaked taxes and stiffened mortgage rules in recent months to slow the market.
March 24, 2010
Australia’s Arrow Energy agreed to a
fresh takeover offer from Royal Dutch Shell and PetroChina (SEHK: 0857), raised
by six per cent to A$3.4 billion (HK$24 billion) for most of its Australian
assets. The new bid, which would give mainland its first stake in Australia’s
burgeoning coal-seam gas industry, followed two weeks of talks after Shell and
PetroChina made an offer that investors considered too low. The takeover needs
approval from Australia’s Foreign Investment Review Board, which is likely to
study it closely after regulators said they wanted to cap state-owned companies’
stakes in Australia’s top resource firms to 15 per cent. Bank of China (3988) is expected to record a 26 percent growth in 2009 net profit, according to the average forecast of five analysts polled by The Standard. They also say the bank will benefit from its bond and equity fund-raising plans.
A senior official with the United Nations World Tourism Organization (UNWTO) said Sunday China is expected to become the world's largest tourist destination by 2015. "China, as we predict, is going to become the world's No. 1 tourist destination by the year 2015," said Taleb Rifai, secretary general of the UNWTO. "China is almost there. It is now the world's fourth largest destination when it comes to incoming tourists, and the rates of growth are moving so quickly that we think this is a realistic target," Rifai said. France is currently the country receiving the most international tourists, at 80 million per year, followed by the United States and Spain, both at 60 million a year, while China has about 48 million, he said. "China's tourism economy has moved incredibly in the last ten years. The number of incoming tourists rose from 8 million to 48 million. The potential of the growth is still big because of the size of China," Rifai said. Rifai said the global tourism industry is improving but challenges remain due to the weak economy. "The tourism industry has to follow and is very much affected by the general economic situation, and for sure the general economic situation has started to turn around. But we cannot call it a full recovery at the moment," he said.
March 23, 2010
Billions of dollars are being wagered illegally in Hong Kong on American basketball and on golf. Up to HK$9 billion a year is being bet with illegal bookmakers on these sports, which are gaining increasing exposure in the city, gaming analysts who have investigated the trend say. Punters are believed to have developed an intererst in these sports while living overseas. The Jockey Club has alerted the government to the problem of illegal gambling on sports it does not offer. "The best solution is for one operator channelling the sports," club CEO Winfried Engelbrecht-Bresges said. "It will be beneficial to the community but it is up to the government. We should be able to offer all forms of sports betting to prevent illegal gambling." He added: "This was a general conversation and we didn't think it was appropriate to press the issue, but we think it will become more of an issue going forward." The club's head of public affairs, June Teng, said it had to combat illegal and offshore bookmakers to keep betting dollars in the community for tax and charitable purposes. Bookmakers were increasingly offering betting on basketball, golf, boxing, tennis and even the Winter Olympics, she said. People who have assessed the trend estimate Hongkongers are illegally betting HK$4 billion to HK$7 billion a year on basketball and HK$1 billion to HK$2 billion on golf. They believe those figures will rise. While this pales in comparison to the estimated HK$60 billion spent on illegal soccer gambling, it is enough to attract the Jockey Club's attention. A gaming analyst said the trend was predictable. "The younger demographic is beginning to get a bit bored watching horses at Happy Valley trundle around," former solicitor and independent gaming consultant Murray Burton said. "I can understand how the NBA or any other sport would be an attraction, especially for Chinese educated in the US." The only legal form of sports gambling was horse racing until soccer gambling was legalised in 2003 to try and curb rampant illegal betting on the game. The Legislative Council would have to approve the legalisation of betting on any other sports, and anti-gambling groups would be bound to object strongly. For now, the club is the only place where Hongkongers can legally gamble. But punters can easily place a bet with underground bookies or with gambling websites overseas. Some, such as Ladbrokes.com and betfair365.com, even offer services in traditional Chinese characters - used in Hong Kong, Taiwan and Macau. The sites offer bets not only on basketball and golf, but also baseball, boxing and American football. Mett Ng, who likes to bet on soccer through the Jockey Club, said some of his friends bet on the NBA. "It's getting more popular," he said. "I know that many people do this. Many people like the NBA in Hong Kong, but you can only bet on it through the websites. Many youth like to play basketball and some of them are involved in betting." Other sports, such as baseball or American football, were not as popular. "The NFL, not many people know the rules," he said. Former Hong Kong police detective David Fernyhough, who heads the local office of corporate-risk investigation firm Hill & Associates, said the rise of gambling on the NBA and to a lesser extent golf was not surprising. The emergence of Chinese stars such as Yao Ming and Yi Jianlian in the NBA, and the frequent games on TV had made the sport more popular, and that would spur gambling on games. Illegal gambling has been a major problem for the Jockey Club for years. Illegal bookies offer better odds and spreads, and extend credit, and the club cannot match these incentives.
China key to global tourism growth in 2010: UNWTO official - A senior official with the United Nations World Tourism Organization (UNWTO) said here Saturday that China was expected to contribute a lot to global tourism recovery in 2010. Taleb Rifai, the secretary general of the UNWTO, said global tourism experienced the most difficult year in 2009 with the global tourism revenue dropped by 4 percent. The UNWTO forecast the global tourism revenue in 2010 was expected to grow by 2-3 percent and China would contribute a lot to the growth, he said. He made the remarks at the opening ceremony of the 2010 Boao International Tourism Forum. Global tourism was at a crucial recovery phase and it was necessary to pool wisdom worldwide and information to boost tourism growth, said Shao Qiwei, chairman of the National Tourism Administration of China. The forum provided a rare chance for Hainan to learn from advanced experiences in its drive to grow into an international tourism island, said Wei Liucheng, secretary of the Hainan Provincial Committee of the Communist Party of China (CPC). The forum held in Sanya has attracted about 2,000 people from worldwide tourist sectors to exchange their experiences in boosting tourism amid the global financial downturn. Sponsors of the forum included Hainan Provincial government, the National Tourism Administration and the United Nations World Tourism Organization.
Beijingers woke up to find the Chinese capital blanketed in yellow dust, as a sandstorm caused by a severe drought in the north and in Mongolia swept into the city. Top Chinese tourist cities form alliance for marketing - Representatives of 46 cities that boast the best sceneries in China gathered here Saturday to launch an alliance to boost exchanges and cooperate more on promotion and marketing. As a non-profit organization, the alliance will integrate resources of its members on management, human resources, marketing, among others, to serve the interests of all the 46 cities, said Wang Yong, mayor of south China's seaside resort city Sanya and president of the alliance. Members of the China Alliance for Cities with 5A-Class Scenic Spots include Beijing, Shanghai, Huangshan in the eastern Anhui Province, Guilin in the southern Guangxi Zhuang Autonomous Region and Lijiang in the southwestern Yunnan Province. It will have liaison offices in Beijing and Sanya. The alliance will promote the idea among both domestic and foreign tourists that cities with the 5A-Class sceneries are the most beautiful places in China, said Prof. Wang Xingbin, a tourism expert with the Beijing International Studies University. "The alliance shall be more market-oriented and we want to see more promotion activities through this new platform," said He Xianzhong, a representative from Lijiang. A total of 68 tourist attractions in 55 cities across China have been granted the title of National 5A-Class Scenic Spots, the highest rating in China's tourism industry, by the National Tourism Administration since the administration began the rating in 2007.
China not to sit back on possible sanction after currency manipulator claim: commerce minister - China will not sit back if there is any sanction after the United States names China as a currency manipulator, Minister of Commerce Chen Deming said in Beijing Sunday. Chen made the remarks at the ongoing China Development Forum 2010 when commenting on the the U.S. Treasury's possible naming of China as a currency manipulator next month. March 22, 2010
Hong Kong's vast income gap means it cannot apply a simple formula commonly used elsewhere when setting its first minimum wage, an academic says. The debate on pegging the minimum wage to a certain level of the median wage has intensified after a Census and Statistics Department survey found that the median hourly wage of local workers is HK$58.50. In Britain, which the Provisional Minimum Wage Commission visited in a study tour in October, the minimum hourly wage is £5.80 (HK$68) - 47 per cent of the median salary. The ratio of minimum wage to median earnings in Japan is 33.3 per cent. University of Hong Kong demographer Dr Paul Yip Siu-fai said it would be wrong to apply these ratios to Hong Kong, adding that the minimum hourly wage should be set between HK$19.50 and HK$27.50. "The earning distribution is different in various places. The same ratio will have a very different effect on the labour market in different places. And we should note that the city's rich-poor gap is so huge," he said. Hong Kong's Gini coefficient - which measures income inequality on a scale of 0 to 1, where 0 is perfect equality and 1 is perfect inequality - rose from 0.518 in 1996 to 0.525 in 2001 and stood at 0.533 in 2006, the most recent year for which data is available. "The gap between the rich and the poor in the city is one of the highest in the world. If we simply set the minimum rate at about 40 per cent like other places, such a gap will be widened," Yip said. His comments came as many business groups have been pushing for a minimum rate of HK$24 - about 40 per cent of the median wage. Dr David Wong Yau-kar, president of the Chinese Manufacturers' Association, said the group would need more time to study the latest figures before proposing a minimum wage level, but noted that in many developed countries it was 40 to 45 per cent of the median wage. If these ratios were applied to Hong Kong, the minimum wage would be HK$23.40 to HK$26.30 per hour. Unionist legislator Lee Cheuk-yan, who called for the rate to be set at HK$33, said the commission should consider the city's high cost of living. "We should also think of the many low-paid workers trying to feed their families," he said. The census found 469,400, or 16.9 per cent, of the city's 2.78 million workers were paid less than HK$33 an hour. Some 130,200 earn less than the HK$24 that many business groups are demanding. The Provisional Minimum Wage Commission reiterated yesterday it would consider a wide range of factors - including economic and labour market conditions, standards of living and competitiveness, unemployment and inflation and social harmony - before setting the statutory minimum wage in July. Lawmakers meanwhile debated the calculation of work hours and commission arrangements during a committee meeting on the minimum wage bill yesterday. Tourism legislator Paul Tse Wai-chun said it was difficult to calculate the working hours of tour guides conducting organised tours overseas. "Should the stand-by hours also be counted? Should the time spent on waiting for transport also be included as work hours? There are so many unclear areas," he said. Audrey Eu Yuet-mee said she was concerned that workers on low basic monthly salaries relied on irregularly paid sales commission. She said employers might cut commission to subsidise any pay rise required to meet the minimum wage. Assistant commissioner of labour Fong Ngai said wages included all remuneration and allowances, including commission, overtime pay and tips under the existing Employment Ordinance.
Container shipping company Orient Overseas (International) Ltd (OOIL) reported its first loss in 11 years and warned that an initial recovery in freight rates could be easily undone. A government delegation from Fuzhou was in Hong Kong yesterday to persuade local businesses to attend the annual cross-strait trade fair to be held in the capital of Fujian province in May. Gao Qiping, a deputy publicity director of Fuzhou and head of the delegation, said more than 300 exhibitors mainly from the mainland, Taiwan and Hong Kong had already shown interest in taking part in the 12th Cross-Straits Fair for Economy and Trade, the largest of its kind in the country. The event will be held at the newly built Fuzhou Strait International Exhibition Centre from May 18 to 22. Gao, who did not disclose any further details about the Hong Kong exhibitors, confirmed that the city was the most important source of foreign investment for Fuzhou, accounting for 60 per cent of the total overseas investors in the area. The five-day exhibition will focus on consumer electronics, biological technology, jewellery, cars, environmental construction materials, wedding goods and food products. Investment project presentations, symposiums, summit forums and cultural exchange activities will be held in conjunction with the fair. Fuzhou, known as "the hometown to overseas Chinese people", has been identified as a core city in the central government's blueprint to develop the economic zones to the western coast of Taiwan. Under the development plan, Pingtan Island of Fuzhou, the nearest island county to Taiwan from the mainland, has been turned into an experimental zone to court investors from Taiwan and elsewhere. Meanwhile, the municipal government has also started a series of large-scale infrastructure, agricultural and industrial projects to boost cross-strait links. Gao said Hong Kong played an important role in enhancing links between the mainland and Taiwan. "Hong Kong is a unique platform with which we can explore more opportunities to work with Taiwan and other overseas places," he said.
March 21, 2010
The Town Planning Board on Friday formally rejected the Urban Renewal Authority (URA)'s 2008 plan to demolish most of the buildings on Wing Lee Street in Sheung Wan. The Planning Department has given the thumbs-down to the MTR Corporation's design plan for office towers above the future high-speed rail terminus in West Kowloon and wants it to present new designs. Fung shui master Tony Chan Chun-chuen on Friday filed an appeal against the rejection of his claim to the multibillion-dollar estate of late Chinachem chairwoman Nina Wang Kung Yu-sum.
The call operator who deleted an urgent message from a frontline commander requesting an alarm upgrade at a fatal fire in Cheung Sha Wan has been taken off the job, it was revealed yesterday.
US internet giant Google will close its business in China next month and may announce its plans next week, mainland media reported on Friday, after rows over censorship and hacking.
China’s steel mills have been asked to accept a doubling of iron ore prices this year by their top supplier, Brazil’s Vale, and are also facing excessive output, a top official said. China Mobile (0941) posted a 2.3 percent increase in net profit for last year to 115.2 billion yuan (HK$131 billion), beating market consensus. Mainland sportswear retailer Li Ning (2331) is aiming for a 10 percent growth in same-store sales this year, after posting a 2.3 percent decline in 2009. Beijing is conducting stress tests to gauge the effect of yuan appreciation on companies in a sign the government may be preparing for policy change even as it rebuffs foreign criticism of its 20-month US dollar peg.
March 20, 2010
Controversial legal changes that
make it easier to redevelop old buildings got the nod from lawmakers last night,
allowing development chief Carrie Lam Cheng Yuet-ngor to breathe a huge sigh of
relief.
Twenty people were arrested on Wednesday for either working illegally in Hong Kong or employing illegal workers, an Immigration Department spokesman said on Thursday.
Millions of people face drinking water shortages in the southwest as the worst drought in a century dries up rivers and threatens vast farmlands.
March 19, 2010
The Legislative Council on Wednesday
is debating a controversial bill aimed at making it easier for property
developers to re-develop old buildings in Hong Kong. The name China Public Procurement (CPP) may not ring a bell in Hong Kong or on the mainland. But when it announced in February it had signed a 300 billion yuan (HK$340.47 billion) three-year contract with Hua Tie, a subsidiary of China Railway Construction (SEHK: 1186) Materials Group, it caught the eye of investors. The company's shares a year ago traded between 70 HK cents and 80 HK cents. That was when it was a footwear manufacturer that had been making losses since its listing in 2002. But the shares have almost doubled since the beginning of this year, reaching a record high of HK$1.14 following news of the contract. Still, questions have been raised about CPP's credibility and potential profitability as an e-procurement provider, which it now says is its core business.
Hong Kong property agents have extended their competitive battlefield to Macau, lured by a recovery in the property market on the island.
The trial of four Rio Tinto staff charged with commercial spying in China will begin on March 22 in a Shanghai court, Australia’s foreign affairs department said on Wednesday.
Firms selling advertising space on Google's search pages have demanded clarity about the internet company’s plans in China, warning they will demand compensation if it shuts its portal.
March 18, 2010
Macau Chief Executive Fernando Chui Sai-on on Tuesday announced a three-billion-pataca (HK$2.9 billion) scheme of cash bonuses for residents in his first policy address. The government has to shoulder bad debts of at least HK$59 million run up so far under the special loan guarantee scheme, an amount that is expected to increase. The initiative to help enterprises - introduced in December 2008 as banks tightened lending amid the global financial crisis - has a default rate of about 0.1 per cent, or HK$59 million, according to figures from the Trade and Industry Department. The department said it had approved at least 28,967 applications for loans of more than HK$70 billion. Business groups described the default rate as extremely low. They urged the government to extend the program by six months, to December, saying the global economic environment was still uncertain.
The University of Hong Kong has pledged to make a raft of improvements to its new pharmacy degree after it was accused of being lax in arranging professional recognition for the program. Its Li Ka Shing Faculty of Medicine will employ more pharmacy specialists, including one full professor in the subject, with two new specialist academics due to take up their posts shortly, a spokeswoman said yesterday. It will speed up the submission of documents to the Pharmacy and Poisons Board, which is assessing the university's application for recognition of the programme as meeting the requirements of the Registered Pharmacist exam that the board administers. It will also build a suite of new laboratories at the medical faculty's Sassoon Road campus so that pharmacy students have their own facilities rather than sharing them with medical and nursing students. "The accreditation is an ongoing process," she said. "The faculty of medicine has close contact with the Department of Health and we have submitted some of the documents already. But we will speed it up. We are very confident that we will get the accreditation before our first batch of students graduate in 2012." Faculty dean Professor Lee Sum-ping and Professor Paul Vanhoutte, head of the Department of Pharmacology and Pharmacy, met yesterday with the 25 students on the program, which began last year, to reassure them and outline the progress of the recognition application. To become a registered pharmacist in Hong Kong, candidates must complete a pharmacy degree of at least three years and one year of professional training as well as pass the registration exam run by the Pharmacy and Poisons Board. Graduates of Chinese University's pharmacy degree are exempted from taking the registration exam after the university won recognition from the board that their program was of equal standard and covered the same material. HKU is applying for the same recognition for the new degree but it has been criticized for placing the first group of students at risk by starting the process after the program began. Dr Kwok Ka-ki, practicing surgeon and convenor of the Action Group on Medical Policy, said: "I am very surprised that HKU has set up a program without gaining professional recognition before it started."
China cut back its treasury bond holdings to the lowest level in eight months, the US Treasury said amid rising tensions over claims Beijing was undervaluing yuan for trade gains. China's trade surplus with US misread - China's large trade surplus is often used by the United States to argue why China should allow its currency to rise. Yet most US officials ignore a very important fact: a majority of China's exports to the US are produced by US-funded companies and huge profits go back into American pockets. China's surplus, foreign companies benefit - Chinese Premier Wen Jiabao said at Sunday's news conference that half of China's exports came from the processing trade -- where imported components were assembled at factories in China and 60 percent were made by foreign-funded companies or joint ventures with foreign partners. "Therefore, to restrict trade with China is tantamount to causing difficulty for the businesses of your own countries," he said. According to statistics provided by the Ministry of Commerce, 55.9 percent of China's exports were produced by foreign companies last year. The proportions were 83 percent and 75 percent respectively for high-tech products and electronic products. And, over 90 percent of high-tech products exported to the US were made by foreign enterprises. Big surplus, small profit - Researchers at the University of California at Irvine conducted a case study of Apple's iPod to examine which countries captured the most economic value from iPod production. The conclusion showed that only four dollars was retained in China, with the bulk going to the designers, retailers and component suppliers. It seems unfair therefore that the full price of an iPod, roughly $300, instead of four dollars, was counted as part of China's exports to US. "China's cheap labor helps foreign companies cut wage costs and increase their profits. Ironically, the rising profits go into foreign bosses' pockets and China is left to take the blame for the trade imbalance," said Tan Yaling, an expert at the China Institute for Financial Derivatives at Peking University. Hi-tech export controls - Premier Wen said the country's trade imbalance would be much smaller if the US would approve more high-tech exports to China.
Sprinklers and water pumps in a building owned by China Central Television malfunctioned during a blaze caused by fireworks last year, mainland media reported on Tuesday.
Alibaba.com, the world's largest business-to-business e-commerce service provider, has established a unique fund to cover fraud disputes between mainland suppliers and their buyers.
March 17, 2010
Mainland’s US$300 billion sovereign wealth fund is looking at directly investing in funds that could benefit from falling equity prices, a top manager at Pyramis Global Advisors said.
Google said it remained in talks with the central government about censorship of its Chinese-language search portal, despite mounting signs the company could soon shut the site. Car and battery maker BYD Co could set up sales headquarters and a production plant in the United States, its chairman said, as it embarks on an aggressive expansion plan.
Authorities have impounded shipments of imported designer clothing from famous labels such as Hermes and Versace after finding they contained potentially hazardous chemicals. JPMorgan and Beijing-based Hopu Investments, run by influential dealmaker Fang Fenglei, have been hired as advisers for the energy joint venture between CNOOC and Argentina’s Bridas. China's central bank chief suggested Beijing has no immediate plans to raise interest rates despite inflation data last month that was "a little bit higher" than expected.
March 16, 2010
More than 100 people took to the streets yesterday to demand a minimum wage of HK$33 an hour and eight working hours a day.
The amount of cash the Macau government will hand out is the talk of the town ahead of the first policy address to be delivered by Dr Fernando Chui Sai-on, who became chief executive on December 20.
Hong Kong's stock market is widely respected for its regulatory regime and that will be its winning edge in attracting more foreign firms seeking to raise funds, Secretary for Financial Services and the Treasury Ceajer Chan Ka-keung told Sing Tao Daily, sister publication of The Standard, yesterday.
Shanghai will unveil a brand new airport terminal tomorrow - the latest mega infrastructure project to be completed as the city prepares to welcome tens of millions of visitors to Expo 2010. The city has spent US$2.2 billion (HK$17.16 billion) on the makeover of Hongqiao airport and made it part of a futuristic travel hub linking metro, high-speed rail and a proposed maglev train line. The new terminal is four times as big as the old one, which was designed for 9.6 million passengers a year but handled more than 25 million last year. It will handle 90 percent of the flights out of Hongqiao. "The old airport was bursting at the seams," said Shanghai Airport Authority vice president Li Derun. "The new terminal can effectively reduce delays and alleviate pressure on Pudong Airport during the Expo." International flights mainly land at Pudong Airport, while Hongqiao is used chiefly by domestic airlines. The vast majority of the likely 70 to 100 million Expo visitors are expected to be from the mainland. In contrast to British architect Norman Foster's dragon-like new Beijing Airport terminal built for the 2008 Olympics, the designers of the Hongqiao facility said they did not set out to create an architectural landmark. "We weren't looking for an extravagant or gigantic building. Instead we were looking for a user-friendly and customer-oriented design," said chief architect Guo Jianxiang, who also designed Pudong's seagull-like second terminal. "Hongqiao in Chinese means rainbow bridge, so we incorporated the image of the bridge and the rainbow's seven colours into the terminal." Hongqiao is expected to handle 40 million passengers a year by 2015, with three-quarters of them using the new four-level terminal. A direct metro line into the building also opens tomorrow, linking the airport to the city by subway for the first time. High-speed trains are due to start arriving at the airport from Nanjing on July 1, with trains from Beijing scheduled for next year. Premier Wen Jiabao told Taiwan's small businesses and farmers they have nothing to fear about a cross-strait free trade deal currently being discussed by Beijing and Taipei.
March 15, 2010
New management and tighter internal auditing were the key changes at broadcaster TVB (SEHK: 0511) which lead to the arrest of the station's flamboyant general manager and prominent host on corruption charges, insiders say. Stephen Chan Chi-wan and four others were arrested last week over allegations they were outsourcing productions and making TV stars take jobs at cut-price rates. People familiar with the broadcaster's operations said new managers - such as Mark Lee Po-on - had been keeping a far closer eye on the station's budget over the last two years. This included a new stringent internal auditing system and careful reviews of production budgets. The internal audits had uncovered some odd accounting and a report was subsequently submitted to the TV station's management. It led to an internal investigation of Chan's dealings. Global financial markets are yet to bottom and investors should hold cash, investment-grade debt or defensive stocks to ride out a coming "general correction", according to HSBC Holdings (SEHK: 0005). A sputtering US recovery, the winding back of stimulus in Asia and the likelihood that Europe will begin to "normalise" interest rates mean markets have not fallen far enough, says Dilip Shahani, HSBC's head of global research, Asia-Pacific. Greece's woes have shaken global markets, and a survey shows confidence in the world economy fell for a second month in March. "Equity and credit markets, and foreign exchange and interest rates, have probably discounted about 60per cent of what's happening," he said. "But there's probably one or two things that are going to come and create the final surprise that will trigger the final push down on all the markets together." HSBC predicts the extra yield investors demand to hold investment-grade Asian dollar bonds rather than US treasuries will increase less than the premium commanded by the region's high-yield notes. The spread on HSBC's Asian Dollar Bond Index, which tracks investment-grade issues, will widen to 350 basis points by the end of June from around 283 now, while that for the bank's Asian High-Yield Corporate Bond Index will move to 750 basis points from 594, says a report. Investors should buy once the correction materialises because spreads will narrow again by the end of the year, the lender advises. "The arguments against a general correction are getting harder and harder to ignore," Shahani said. "Hold cash or high-quality bonds. Even if you have to be in equity, hold defensives or utilities. They will still go down but it won't be by as much." Shahani's team in a December report forecast investors would realise by this month the US recovery was "of poor quality, of less intensity, and most disturbingly, still requiring heavy fiscal and monetary stimulus". Federal Reserve chairman Ben Bernanke told Congress on February 25 that the US economic recovery was still "nascent" and likely to require "exceptionally low" interest rates for an extended time. The case is building for an interest rate increase on the mainland. Inflation accelerated to a 16-month high of 2.7 per cent in February and real estate prices in 70 cities climbed at the fastest pace in almost two years. Inflation was also gathering pace in Europe's largest economies, increasing the likelihood that the European Central Bank will raise interest rates, HSBC said. "All these things have come earlier than expected so people have been caught out being overweight," Shahani said. "What is telling is that volumes are starting to drop off in the equity markets and also in the credit markets. There are more and more people standing on the sidelines and that makes the market more susceptible to shocks." Rising volatility amid declining volumes and continued macroeconomic risks undermine current market levels, heightening the chance that long positions will be "taken out", Shahani said. "You just need a few people to decide to get out and then it drops to a new level," Shahani said. "And then the real money, the wall of money that everyone talks about will come in and lift it back up. But clearly this is not that level."
March 14, 2010
Sun Hung Kai Properties' (0016) interim net profit soared nearly 20 times to HK$14.3 billion from a year earlier, thanks to a HK$8.6 billion revaluation surplus on investment properties. Taiwan's justice minister Wang Ching-feng has resigned, the premier said on Friday, just days after she attracted criticism over a vow not to order any executions during her term.
The mainland plans to revamp its university admissions system, allowing students to take subject-specific tests and introducing other measures to ease students' stress. China's coastal waters are increasingly polluted by everything from oil to pesticides, contaminating the nation's marine life including the shellfish supply, state press reported. Saudi Arabia and the United Arab Emirates (UAE) have signalled a willingness to press Beijing to support tough new sanctions on Iran, US Defence Secretary Robert Gates said on Thursday.
Shares in Air China tumbled on Friday after the nation's flag carrier said it plans to raise US$950 million through a private share placement to boost capital and lower financing costs. Tighter credit controls are prompting mainland banks to rein in lending and are encouraging domestic companies to borrow abroad via syndicated loans, banking sources said on Friday. Shanghai-based chipmaker Advanced Semiconductor Manufacturing Corp (ASMC) is confident of reversing three years of losses by turning its focus to the car industry.
A total of 64 people from the Chinese mainland made the Forbes magazine list of the world's richest billionaires, moving up to take second place for the first time.
March 13, 2010
About a year after a controversial bid to take the company private failed, telecommunications giant PCCW has moved on and sharpened its focus on new opportunities this year.
The mainland's top print media censor is to introduce a new qualification exam for aspiring journalists this year in a push to tighten up on control of media outlets.
March 12, 2010
Citic Pacific climbed back into the black last year, after the scandal-plagued investment firm suffered massive losses from unauthorised currency trading bets in 2008. The industrial building in Cheung Sha Wan – the scene of Monday's No 4 fire that killed veteran fireman Yeung Chun-kit and injured three of his colleagues – re-opened on Wednesday.
About a year after a controversial bid to take the company private failed, telecommunications giant PCCW has moved on and sharpened its focus on new opportunities this year.
China will step up food safety efforts in the wake of a massive dairy scandal, expanding supervision to reach more of the country’s countless small farms, an agriculture official said on Wednesday. Beijing has been struggling for several years to overcome a series of food safety problems, including one that started two years ago when at least six children died and nearly 300,000 fell ill after consuming a tainted milk formula. Vice Minister of Agriculture Wei Chao’an told a news conference that agricultural officials at all levels are working this year “to prevent any large-scale food safety crises.” The difficulty the government faces can be seen by the fact the tainted milk problem has lingered on, with new cases appearing last year because old batches of the product were not destroyed after the scandal. Wei said the ministry was working to bring more farms under better supervision, a challenge in a vast country where some rural areas are still very poor. “Our agricultural products overall are safe and of high quality, but we must also recognise that while we transition from traditional to modern farming, many of our operations remain scattered, production methods are still backward and our supervision lags behind,” Wei said. A statement from the ministry handed out at the news conference said the government promises to “implement quality and safety monitoring programs targeting raw and fresh milk, and strengthen supervision of purchase stations for raw and fresh milk.” The tainted formula was made from milk that had been deliberately contaminated with the industrial chemical melamine in order to fool inspectors testing for protein content. Melamine, which can cause kidney stones and kidney failure and is used to make plastics and fertilisers, has also been found added to pet food and animal feed. Despite tightened regulations and increased inspections on producers, melamine-tainted milk products have recently shown up repackaged in several places around the country, exposing weaknesses in previous promises to better police the food chain. The US is studying whether it can legally challenge internet restrictions on the mainland but talks with Beijing might yield faster results, the top US trade official said on Tuesday.
China's exports rose more than forecast in February and posted a third straight gain, a rebound that adds to pressure on policy makers to pare back stimulus measures adopted during the global recession. Shipments abroad gained 46 percent in February from a year before after a 21 percent advance in January, the customs bureau reported on its website today. Year-ago figures were depressed by a contraction in world trade resulting from the crisis. The trade surplus hit a one-year low of $7.6 billion, affected in part by the Lunar New Year holiday. The strengthening in exports may reduce excess capacity in manufacturing and contribute to price increases. Premier Wen Jiabao has cited price pressures, along with property speculation and loan quality at banks, among his top concerns for this year. Imports rose 45 percent after an 86 percent jump in January, today's figures showed. The advance underscores China's rising role as a driver of global growth. The export gain in February was more than the 38.3 percent median estimate in a Bloomberg News survey of 28 economists. Imports topped a 38 percent estimate and the trade surplus was in line with forecasts. Central bank Governor Zhou Xiaochuan said on March 6 that policy makers must be "very cautious" in timing an exit as a world recovery isn't yet solid. Commerce Minister Chen Deming said the same day that it was too early to say that exports had recovered from the global financial crisis, and that the trade surplus for the past two months combined had contracted by 50 percent. At the same time, Chinese authorities are also concerned at the toll that yuan appreciation may take on exporters. A stronger yuan could help to restrain inflation. Inflows of speculative capital have also added pressure for the yuan to gain, the nation's currency regulator said yesterday. "The yuan's appreciation should be limited to no more than 1 percent this year as costs rise," Pan Liyun, a sales executive at Zhejiang Daishan Xingfa Toys Factory, said at a trade fair in Shanghai this month. Pan said manufacturers already face pressure to pay workers higher wages. China's gross domestic product grew 10.7 percent in the fourth quarter from a year earlier, the fastest pace in two years. After last year overtaking the US as the biggest auto market and Germany as the largest exporter, China is poised to surpass Japan this year as the second-largest economy. The nation will contribute more than a third of global growth in 2010, according to Nomura Holdings Inc.
March 11, 2010
The Housing Authority will study whether to release for sale existing housing stock under the Home Ownership Scheme. This comes as property tycoons and bankers are urging an increase in the supply of HOS flats amid an overheated property market.
March 10, 2010
Women have come a long way since breaching the gender barrier as Hong Kong bus drivers in 1989 and today KMB's 450 female "bus captains" will celebrate International Women's Day with pride.
China's $300 billion sovereign wealth fund, made an unaudited return of more than $10 billion last year on its foreign investments, the China Business News said on Monday. A joint project between China's largest refiner Sinopec and German chemical company BASF is undergoing a new round of expansion. A total of $1.4 billion has been budgeted for the expansion, making it the leading chemical production site in China. March 9, 2010
A new terminal building will open at Hongqiao Airport in Shanghai this month, which will open the way for flights to and from downtown Taipei, Shanghai's mayor says. March 8, 2010
March 7, 2010
Catering and fitness groups have launched an unprecedented petition campaign to fight the city’s worsening air pollution. Starting this month, more than 200 leading restaurants, cafes and gyms in the city will invite their customers to sign “The Petition for Clean Air.” The organizers also ran campaign ads in the International Herald Tribune and several local newspapers this week, reminding readers that Hong Kong’s air pollution “kills three people a day” and its air is “three times dirtier than New York City’s.” “It was the first time for Hong Kong to have a clean air campaign mounted by a large group of businesses,” Kwong Sum-yin, campaign manager of Clean Air Network, the NGO which co-ordinated the petition drive, said on Friday. “We have often tried to engage members of the public in our previous campaigns. But we believe the involvement of business groups is equally important if we want to send the message across all sectors of the society.” Businesses involved include Starbucks, Pacific Coffee, Ben & Jerry’s, and Pure Fitness. Kwong said their original plan was to run the campaign for six weeks. But she said it may be extended as other restaurants have also asked to join. The petitions collected will be presented to the government later this year. Hong Kong’s air pollution continues to worsen, with the city wrapped in a thick blanket of haze for most days in recent months. Statistics from the Hong Kong Observatory show that the annual number of hours of “reduced visibility”, which refers to visibility of less than eight kilometers in the absence of fog, mist or rain, jumped from 295 in 1988 to 1,139 last year. Critics said the problem has caused a huge economic and public health impact on society and driven talented people away from the international financial hub, with an increasing number of families – especially expatriates with children – relocating elsewhere. Authorities often blamed the deteriorating air quality on emissions from the southern Chinese factory belt over Hong Kong’s northern border. But a study conducted by the Civic Exchange think-tank last year showed that Hong Kong’s own road emissions were the dominant source of air pollution. The nomination period for candidates in the upcoming Legislative Council by-elections would run from March 22 until April 8, the Electoral Affairs Commission said on Friday.
Payson Cha Mou-sing – one of ATV’s major shareholders – confirmed on Fridaythat he would sell his Asia Television stake to mainland property tycoon Huang Jing.
The central government pushed ahead on Friday with plans to dampen social tensions, introducing a budget aimed at narrowing the wealth gap and bring growth to ethnic areas. China will steer a steady policy course this year but will change tack if needed to counter the lingering impact of the international credit crunch, Premier Wen Jiabao said on Friday. Microsoft said on Friday it will stick to its development strategy for the mainland internet search market regardless of the outcome of Google’s high-profile spat with Beijing.
Rampant official graft remains a problem in China despite years of efforts to stamp it out, Premier Wen Jiabao acknowledged on Friday, admitting the issue threatened the Communist Party’s ability to rule. The party has long pushed to eradicate corruption from its ranks, amid mounting public anger over regular reports of larcenous officials and stories of excess and debauchery among top bureaucrats. “We will give high priority to fighting corruption and encouraging integrity,” Wen said in his “state of the nation” address at the opening of China’s annual session of parliament. “This has a direct bearing on the firmness of our grip on political power.” He called on high-level officials to diligently report details on their personal income, housing and investments, along with information about where their spouses and children work. The premier said the investigation and prosecution of “major violations” of the law would be an “important task”, pledging stronger internal oversight. “We will run the government diligently and frugally, oppose extravagance and waste, and constantly reduce administrative costs,” he told some 3,000 National People’s Congress delegates gathered in the Great Hall of the People. Wen vowed to slash the number of official trips abroad, as well as cut down the number of lavish celebrations and meetings that are “long on form and short on content”. The party last month issued an ethics code that spells out 52 banned practices for officials, including accepting cash or other financial rewards as gifts and using public funds for personal interests. The National Bureau of Corruption Prevention and the Ministry of Supervision have made it a priority to better monitor the expenses of “naked officials”, whose family members have moved overseas, state media said last month. About 4,000 corrupt officials fled the country with a total of US$50 billion between 1978 and 2003 after first sending their spouses and children abroad, the report said. Mainland authorities are in talks with Google to resolve its dispute with the company, which has threatened to abandon the China market over hacking and censorship concerns.
March 6, 2010
Despite unveiling a second successive fall in annual profit, Hong Kong Exchanges and Clearing gave staff a pay rise and left its dividend policy unchanged. Hongkong Land Holdings, the biggest landlord in Central, yesterday announced a 107.2 per cent jump in its underlying earnings for 2009 and sounded a cautiously optimistic note for this year.
The Elderly Commission has backed a call to let people spell out what health treatment they want before they reach the stage of being unable to make a decision due to illness or incapacity.
China's military spending for this year will rise by 7.5 per cent, the smallest defence budget increase in nearly two decades.
March 5, 2010
Levy plan fails to dampen demand - Policy measures introduced last week to raise the cost of buying homes in Hong Kong's booming luxury market have so far had little impact on buying demand, agents say.
Hong Kong delegates will likely touch upon local political reform when they meet a state leader in Beijing during the National People's Congress and the Chinese People's Political Consultative Conference this week.
Beijing has yet to confirm whether President Hu Jintao will attend a nuclear security summit in Washington next month as two senior American diplomats prepare to leave China today after a fence-mending visit. The decision will send out a strong signal about the direction the bilateral relationship is heading. Persuading Hu to attend the summit - to be chaired by US President Barack Obama - has been at the top of the agenda for US Deputy Secretary of State James Steinberg and the National Security Council's Asian affairs director, Jeffrey Bader, since they arrived in Beijing on Tuesday.
China plans to launch an unmanned space module, Tiangong-1, in 2011, which is expected to accomplish the country's first space docking and regarded as an essential step toward building a space station, an expert said Wednesday.
March 4, 2010
China Merchants Bank set a very generous A-share rights issue price of 8.85 yuan per share for its previously announced A- and H-share rights issue this week to raise 22 billion yuan. Hong Kong’s securities watchdog said on Tuesday it will require higher transparency in local short selling activities by introducing a short-position reporting regime.
Restaurants and office buildings in Shanghai are scrambling to set up nonsmoking areas as the city bans lighting up in indoor public spaces ahead of the World Expo. There is rising awareness of the health risks of smoking in the mainland, by far the world’s biggest tobacco-consuming country, and this modern city of 20 million is cleaning up its act as it prepares to host the Expo, which begins May 1. That six-month event, which will showcase the theme “Better City, Better Life,” is expected to attract 70 million people, with exhibits from 192 countries. Most of the visitors will be Chinese from other cities where tobacco use is less strictly controlled. Getting people to comply with the rules is likely to prove difficult, many feel. “The regulations are not going to work. China is at least 50 years behind advanced countries, and people here lack self-discipline,” said Xu Baofeng, a manager at a mobile phone service outlet, who was standing inside the shop with his head sticking outdoor as he smoked. “You can see the No Smoking sign on our wall, but many people just ignore it,” Xu said, saying that some male customers fight back or complain to higher managers if staff try to stop them. Even before the ban took effect on Monday, most major public facilities in Shanghai, including many shopping malls and all subways and subway stations, banned smoking. Now authorities have penalties to apply, and have signed up thousands of volunteers to help enforce the ban. First-time offenders will get a warning. If they resist, they face fines of 50 yuan to 200 yuan. In response, downtown office buildings are now distributing notices about new indoor smoking areas. Workers routinely smoke in hallways and elevator lobbies. Most restaurants are only offering token moves, such as designating areas for nonsmokers that are not truly smoke free. At one downtown Internet cafe Tuesday, video game players were puffing away freely. A manager said he wouldn’t encourage people to smoke but felt he had no right to stop them. People are still free to light up on sidewalks and streets. China’s four-biggest banks made net new loans in February of about 294 billion yuan, down about 39 per cent from January, banking sources said on Tuesday.
March 3, 2010
Organisers are planning to increase the entry quota of the Hong Kong Marathon by 5 per cent to a record 63,000 following the overwhelming response this year.
China hailed its best ever Winter Olympics on Monday, crediting technology, foreign coaches and even improved language skills for the haul of five gold, two silver and four bronze medals in Vancouver. Only eight years after skater Yang Yang won the country’s first Winter gold at Salt Lake City, a sweep of the women’s short track speed skating and a first figure skating title helped China to joint seventh place in the medals table. “Gold Standard” read the banner headline on the front page of the English Language China Daily, while the Communist Party mouthpiece People’s Daily led its sports page with “Vancouver historical breakthrough”. “We have made important breakthrough at these games,” Xiao Tian, deputy chef de mission of China’s largest ever Winter Games delegation, told the Xinhua news agency. “Actually the five-gold finish was within my expectation before we set off for the games, but I couldn’t say that at that time because I would not want to put any pressure on the athletes. Now I can speak out.” Xiao was quick to revert to pessimistic type, however, when discussing the future, emphasising the huge task the Winter Sports administration faced to close the gap on their summer counterparts, who topped the table at the 2008 Beijing Olympics. “Despite the good results at these games, we still have a long way to go in the development of China’s winter sports,” he said. “It’s impossible for us to reach the same level as we have done in summer sports, but we will try to minimize the gap as much as we can.” Xiao said that progress would come not through a vast expansion of the winter sports programme but by using the best coaches, wherever they came from, and technology. China will donate US$1 million to quake-ravaged Chile to help with emergency humanitarian efforts following a devastating earthquake, the government said on Monday.
James Steinberg, US deputy secretary of state and one of the Obama administration's leading voices on China, will leave for China and Japan on Monday. Shanda Interactive Entertainment, mainland’s No 2 online game company, said its fourth-quarter profit rose 13 per cent, still its weakest in three quarters.
March 2, 2010
Beijing says US Deputy Secretary of State James Steinberg will visit the country next week, amid strained bilateral relations. Steinberg will arrive on Tuesday for a two-day trip to "exchange views with China on relevant issues", the foreign ministry said yesterday on its website. Details were not provided. Ties between Beijing and Washington have been strained for months over a series of issues, from trade and currency disputes to the future of Google on the mainland after the internet giant fell victim to cyber-attacks it says originated there.
March 1, 2010
A study of how the mainland's export sector would be affected by an appreciation of the yuan has revealed that Hong Kong exporters fear that a stronger currency will jeopardize their recovery.
China has passed a new law formally granting the military the power to control banking, energy and foreign-invested factories on the mainland in times of war or major disaster.
Feb 28, 2010
Hong Kong factory owners on the mainland say they are desperate for migrant workers as millions so far have yet to return following the Lunar New Year break. Taiwan will allow brokerages and retail investors to buy Hong Kong red chip shares directly in a further easing of business ties with mainland, authorities said in Taipei.
China COSCO Holdings Co and nine other shipping firms are planning to increase rates for hauling containers to Asia from the US in a bid to stem losses on transpacific routes.
China appears to be secretly buying bonds via third locations to hide its importance as a major creditor to Washington, experts told a congressional forum on Thursday. Huatai Securities’ modest gains on debut fell short of expectations after it raised US$2.3 billion in mainland’s largest IPO this year, and could set a trend for upcoming listings.
*News information are obtained via various sources deemed reliable, but not guaranteed
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Holidays Greeting from President Obama & Johnson Choi
Lord Foster, who designed the HSBC
headquarters in Central, says the arts hub has to be a magnet drawing people to
the site. Lord Foster has pledged more surprises in his West Kowloon arts hub
design, with open space better than that in Central Park, New York. He said his
winning design involving a controversial giant canopy in 2001 was already
"history". The globally acclaimed Foster, one of three architects competing in
the West Kowloon Cultural District design competition, said of the canopy: "It
was rooted in its time." He was speaking on the topic for the first time after
the design was scrapped under public pressure four years ago. "Lots has happened
in 10 years. Everybody has moved on. I think there is a need for much greater
flexibility in terms of phasing and in terms of a multiplicity of
possibilities," he said in an interview. Foster said that this time he would
give Hong Kong something even more surprising. Apart from creating an open space
"better than Central Park" in New York, he said he had already figured out a
"cure" for the site, which is cut off from Canton Road and neighbouring
districts. He flew into Hong Kong last week to meet his team of local and
overseas experts advising him on the best way to handle the project again. This
summer, his design will be rolled out for public comment along with plans by the
other two selected architects - Dutchman Rem Koolhaas and Hongkonger Rocco Yim
Sen-kee. The design of the 40-hectare arts hub went back to the drawing board in
February 2006 after competition outcomes in 2001 and 2003 failed to gain support
from lawmakers and the public. Having secured funding of HK$21.6 billion in July
2008, the government again invited designs from three selected architects.
Foster said he was about to submit his third sketch. His first, the enormous
canopy covering more than half of the arts hub areas and housing an avenue of
shops and restaurants leading to a man-made lagoon, won the first competition
but led to controversy. It was abandoned partly because the size of the canopy
prompted the need for a single tendering process, which could lead to
monopolisation of the site by a single developer. It was also ditched partly
because of the high estimated maintenance cost. This time,he has brought
together 25 brains from Hong Kong and overseas to ensure the design is what
Hongkongers want. Of the 25 advisers, some are familiar faces, including Kevin
Thompson, the director of the Academy of Performing Arts; Jane Cheung, associate
professor in cultural and creative arts of the Institute of Education; and
Johnson Chang, a respected curator on Chinese contemporary art and co-founder of
the Asia Art Archive in Hong Kong. "We've been very good listeners. We will
continue to be good listeners," Foster said. "We believe we have a fantastic
basis for designing at this point. It's not about the design of an individual
building. It's about really how you create a quarter. We will do justice to the
design that it has to be the best of its kind in the world. We are totally
dedicated to that course." In the interview, he repeatedly stressed his strength
- his early presence in Hong Kong. "I came here in 1979. It's 31 years and we've
been back ever since," he said, adding that his work, including the HSBC (SEHK:
0005) headquarters and the airport at Chek Lap Kok, had become symbols of the
city. "The Hong Kong airport totally rewrote the rules about what an airport
might be. Everybody has tried to copy it since, but there is only one original.
In terms of our submission on this project, again it will have elements of
surprise," he said. "It's a surprise of something totally different - not what
you would expect." Acknowledging the isolated site in West Kowloon had posed a
challenge to his design, he said he has sought out a solution. "The arts hub has
to be a magnet drawing people there. But the first priority is for the community
here in Hong Kong. In that sense, it will belong to them ... It [the arts hub]
will be linked to the existing communities, and improve them." While aware that
he cannot disclose design details due to rules of the competition, he said he
would seize on the opportunity provided by the decision to build the
Guangzhou-Shenzhen-Hong Kong express rail link station in West Kowloon. Foster
said was aware of the recent controversy about the station being located next to
the arts hub. Under the government's plan, Austin Road will be sunk below ground
so that people visiting the hub can walk directly there from the station. Six
bridges and two tunnels connecting the station to Jordan were also proposed by
the MTR Corporation (SEHK: 0066) in its plan submitted to the Town Planning
Board this month. Apart from taking advantage of the station, Foster said he was
also mindful of other transport opportunities, incorporating design elements for
pedestrians, cyclists and drivers. He said he knows what Hong Kong people want.
"It has taken a long time. People would expect to see that time has been well
spent. They want something fantastic. They deserve it and they will get it. "The
opportunity to have a new start ... will be justified by the quality of the end
result," he said while commenting on the open space. "It's not just about size.
It's about quality. It's got to be better than Central Park." Foster said
architecture for the 21st century was about needs of the people. "Their material
needs, spiritual needs. It's about creating places which are warm, friendly,
welcoming, which make you feel good and make you want to go back," he said.
"It's also about something memorable. All the things you can measure and all the
things you can't measure." Koolhaas, meanwhile, vowed to integrate the arts hub
into the Pearl River Delta - his company has won the design competition for the
express rail link's second station, in Futian. Yim's works are local landmarks,
including the new government headquarters at Tamar named "The Door". How
confident is Foster of winning the third competition? "That will be very
presumptuous," he said with a laugh. "You cannot as an architect ever be
complacent. What you can do is do your best and strive for excellence. That's
the most important aspect of what we do."
As
HSBC Holdings (0005) shifts its focus to the East, the lender believes its
mainland business will make the most of its comprehensive international network
to help Chinese enterprises expand overseas. HSBC (China) chairman Vincent Cheng
Hoi- chuen told Sing Tao Daily, sister publication of The Standard, that the
lender does not have any special advantage over mainland banks. Its well- funded
mainland competitors have plenty of outlets, where service has improved, he
noted. "But this doesn't mean we will stop expansion," Cheng said. "Instead, we
will do more to suit the development of our customers." HSBC is to utilize its
international network to help mainland companies expand or invest overseas.
Staff at its branches in Australia, Malaysia and the Middle East can provide
additional assistance. Cheng said the bank will keep cooperating with its
strategic partners and increase its outlets, including rural banks. It will also
expand the range of products and strive to have a larger share of the mortgage
market. Cheng is confident of meeting all development targets set for this year.
HSBC China turned in a US$1.63 billion (HK$12.71 billion) profit last year,
mostly from jointly controlled companies. The lender's core business - which
reflected organic growth - contributed only US$111 million. Cheng attributed the
unsatisfactory results to a narrower net interest margin. "[HSBC] lends only 70
yuan out of 100 yuan, 30 yuan is spent on stable bonds for interest income."
Cheng said the low-interest-rate environment encouraged many aggressive peers to
lend and make easy profits in the interbank market. He noted this encourages
banks to be shortsighted and highly leveraged, so the practice is not good for
long-term financial development. As HSBC's loans are all backed by deposits,
there is no pressure to change its short-term strategies in the mainland, Cheng
said. He said interest rates will go only "one way - up," which will gradually
improve the bank's operating environment. 
French cosmetics retailer L’Occitane en Provence has received approval from the
listing committee of Hong Kong’s stock exchange for a US$400 million to US$600
million initial public share offering, a source close to the deal said.
L’Occitane, which sells body care products and fragrances in more than 70
countries including Britain, China, France, Japan, South Korea and the United
States, will become the first French company to list in Hong Kong. Founded in
1976 by Olivier Baussan, the company originally planned to launch its IPO in
2008, but postponed the plan because of the financial crisis. The company chose
Hong Kong over Paris for its listing because Asia was its fastest-growing
market, the source said, adding that the company planned to start pre-marketing
for the offering in early April. CLSA, HSBC (SEHK: 0005) and UBS are
underwriting L’Occitane’s deal. Bourse operator Hong Kong Exchanges and Clearing
(SEHK: 0388) , which faces a slowing pipeline of IPOs from mainland, is looking
to attract listings from overseas markets to diversify its listing sources.
Russia’s Rusal, the world’s biggest aluminium producer, floated around 10 per
cent of its stock amid great fanfare in late January, raising US$2.2 billion to
pay down debt.
Personal loss puts student - in frontline of cancer fight - Student Clara Lee
On-ki lost her grandmother to liver cancer about six years ago. Her loss
motivated her to study the relationship between oolong tea and prostate cancer
and for which she received a young scientist award yesterday. Lee, a student at
the Shun Tak Fraternal Association Yung Yau College in Tin Shui Wai, discovered
that oolong tea, if consumed at a certain concentration, is helpful in
suppressing prostate cancer. For her work she was awarded the Individual
Researcher Award, the Best Project Award and Intel ISEF The Society for In Vitro
Biology Award in the Hong Kong Youth Science and Technology Invention
Competition 2009-10. "My grandmother passed away when I was in primary four or
five," said Secondary Four student Lee, tears welling in her eyes. "It was then
I decided to develop a career in medical science to save others like her."
Building on another research on tea's function as an antioxidant, Lee discovered
that oolong has more uses than most types of tea. Joining a scheme organized by
the Hong Kong New Generation Cultural Association, Lee conducted research on
condensed oolong tea and the effect of a chemical contained in it on prostate
cancer with assistance of a professor at City University. The research, which
began last Christmas, found that a concentration of tea polyphenol in oolong tea
at 0.25 milligram per milliliter can suppress prostrate cancer cell activity to
below 10 percent. However, if the tea density is lower, it does not inhibit cell
activity. On the other hand, tea polyphenol becomes less effective if the
concentration is too low. "Currently, there is very little research on prostate
cancer. The reason I chose this direction is because the cell division is
relatively slower than other types of cancer," Lee said. Lee told The Standard
her family members are tea lovers. "Drinking tea is a habit for many Chinese,
and it is for my family," Lee said. "Luckily my dad is still healthy, but as a
result of my research I have advised them to drink more oolong tea." Lee plans
to continue her research on tea polyphenol.
Workers at Macau International
Airport help Viva Macau passengers stranded by the budget airline's financial
difficulties. Macau's government ended the operating contract of Viva Macau
yesterday after the cash-strapped budget airline did not offer to help
passengers whose flights were cancelled due to its failure to pay fuel bills.
Travellers have been warned against buying any more tickets from Viva Macau -
whose online ticketing service was still available yesterday. Officials said any
further sales by the airline would amount to fraud. Hundreds of passengers who
only knew their flights were cancelled upon arrival at Macau's airport vented
their anger on police. Dozens of mainland tourists formed a human blockade to
stop other passengers from boarding their planes in a bid to attract the
authorities' attention. Meanwhile, hundreds of tourists in Hong Kong face
disruption to their Easter holiday because travel agencies said tickets had sold
out. Macau's Civil Aviation Authority ordered the city's franchised airline, Air
Macau, to terminate Viva Macau's operating licence in a bid to protect the
public interest and the city's image as a tourism hub. "[Viva Macau] has been
most unhelpful," authority president Simon Chan Weng-hong said. "It failed even
to provide us with a passenger list when the government tried to resolve the
problem over the past two days. Its lack of co-operation has slowed down our
efforts. We don't see that it has any sincerity in solving the problems."
Jonathan Wong displays genuine
organic vegetables. He said price was the main clue for consumers. Cheap organic
veg is too good to be true, survey warns - More vendors say they are selling
organic vegetables in wet markets but lack of certification means their quality
is questionable. A survey by the Hong Kong Organic Resource Centre of Baptist
University found that one in five vegetable vendors in wet markets claimed to be
selling organic produce, double the number last year. But only 10 per cent of
those vendors could show proof of certification. Centre director Jonathan Wong
Woon-chung said it was bad news for consumers because it was difficult to
distinguish organic produce. The survey, which covered 706 stalls in 74 wet
markets, showed that almost two-thirds of what vendors claimed were organic
vegetables were sold for less than HK$10 a catty (600 grams), while all
certified organic vegetables were sold for more than HK$10, with those from
local farms priced above HK$20. The difference called into question the
authenticity of unaccredited organic vegetables, Wong said. "Organic vegetables
should be more expensive. How some vendors can sell what they claim to be
organic vegetables for such a cheap price is the question to ask," Wong said.
"Shoppers should be alert when they see very cheap organic vegetables." Early
this month, a vegetable stall owner was fined HK$2,500 for supplying vegetables
falsely claimed to have been certified as organic by Baptist University. When
asked the source of their produce, half of those selling organic vegetables
without a certificate refused to answer. Eighty per cent of vendors selling what
they claimed were organic vegetables also sell inorganic ones. Some 45 per cent
would store organic and inorganic vegetables together, a practice that might
contaminate organic vegetables. But this did not happen at stalls selling
accredited products. Wong said at Tsuen Wan Market, most "organic" vegetables
were likely to be inorganic. Isaac Ma, who spent HK$200 on organic vegetables in
a bazaar in Central yesterday, said: "I have no way of telling whether they are
really organic or not ... not many vendors can show their certificates in wet
markets. So I prefer to buy them from supermarkets, which I think is more
credible." He said organic vegetables from supermarkets usually cost double
those from wet markets. Winnie Woo, a housewife, said: "I distinguish organic
vegetables from others by seeing whether there are holes on the leaves." But
that method was rejected by Wong, who said improvements in agricultural methods
had solved the bug problem associated with organic vegetables. Wong said people
were gaining confidence in organic produce from local farms. More than 70 per
cent of certified organic vegetables sold in the market came from local farms
and the rest from the mainland. "Organic vegetables from local farms are good
for the environment because reduced transportation means less carbon dioxide is
emitted," Wong said. According to the centre, organic foods are those that have
been grown without the use of conventional pesticides, herbicides, artificial
fertilisers, human waste or sewage sludge. They are processed without food
additives and are not subjected to genetic engineering. All organic food
certification in Hong Kong is developed by the private sector. The centre is one
of two independent certification bodies for organic products in Hong Kong.
Visual arts centre proposed
for old police station - Jockey Club due to unveil plan for monument's
transformation. The Central Police Station compound is set to become a
contemporary visual arts centre to show off collections owned by the city's
residents. A person working on the project said the Jockey Club, which is
responsible for the plan, would hand over management of the site to a third
party, such as a non-governmental organisation. The club had previously
considered managing the declared monument through a company formed under its
charities trust. The shift towards visual arts means an auditorium and a
black-box theatre for the performing arts in the club's original proposal would
be scaled down or dropped. The person said many local artists and collectors
lacked proper space to store or showcase their pieces. The compound on Hollywood
Road was well situated to serve the purpose, given its proximity to the art
galleries in SoHo. Some space, such as the courtyards, would provide for small
and medium-sized performances to add vibrancy to the venue. The visual arts
centre could include a range of forms including photography, installations,
digital art, multimedia works in addition to painting and sculpture, another
person familiar with the proposal said. Some shops and restaurants would be
opened at affordable prices to generate revenue with the goal of making it
self-financing. The latest proposal, being prepared by consultants including
Asia Art Archive executive director Claire Hsu, who is stepdaughter of former
Jockey Club chairman Ronald Arculli; and former director of Swire Properties
Michael Moir, who runs a consultancy in property management and investment. The
consultants came on board after the club's former executive director for
charities William Yiu Yan-pui, who had steered it since 2007, departed in
January. The Asia Art Archive was set up by Hsu, Arculli and curator Chang
Tsong-zung in 2000 to promote contemporary Asian art by documentation and
research. The person working on the project said it had yet to be decided which
organisation would take over the operation. As for the design of a new
structure, he said no significant new building would be added and that its
height would be lower than the 77-metre restriction suggested by the Antiquities
Advisory Board in 2004. But Hall F, a prison cell that is not designated as
monument but which held a local poet, Dai Wangshu, as a political prisoner
during the Japanese occupation, would either be kept or be "re-created" within
the site, the person said, without giving details. "We need to keep the whole
story of the police station, and Hall F is part of it," the person said.
Historians and district councillors had lobbied for the hall's preservation. The
Jockey Club has undertaken to finance the HK$1.8 billion renovation work of the
compound. The club reached an agreement with the government in 2008 to
revitalise the site as a cultural complex with commercial elements. It later
scrapped the initial design of a 160-metre-high transparent tower, by Swiss
architects Herzog and de Meuron, amid public unease over its height and bulk. A
six-month public consultation for the design and the use was then launched and
local architect Rocco Yim Sen-kee was invited to join the design team. The club
is expected to release its latest design in the next few weeks before taking it
to the Town Planning Board. Alexander Hui yat-chuen, director of the Heritage
Hong Kong Foundation, questioned why contemporary visual arts were considered
the best option for the monument, and whether other options on public programmes
were evaluated. He said the club should make public the research questions and
parameters given to the consultants. Benny Chia Chung-heng, director of the
Fringe Club, said the shift towards visual arts was a natural outcome given the
consultants' background, but he hoped the site would still stage some performing
arts activities so that it would be eventful, especially at night.
The maker of Po Chai Pills has
expanded its recall to parallel imports of the popular Chinese medicine. This
comes as the Department of Health investigates whether the manufacturer, Li
Chung Shing Tong, has broken any laws. The company also announced that, from
today, consumers can now go to 22 pharmacies, instead of just four, to surrender
the product - including parallel imports - and ask for refunds. No outdated
pills will be accepted. This was an update to recall advice from earlier
yesterday which had said parallel imports could only be accepted at its offices
in North Point. The company said around 302,500 packs of the pills have been
returned. Anyone with more than 20 packs will have to contact the North Point
head office. The manufacturer apologized on Thursday after the department
pointed out that it failed to report a product recall it initiated as early as
January. The Po Chai Pills' capsule form, which the manufacturer said was sold
in Singapore and not Hong Kong and Macau, was found to contain cancer-causing
drugs and restricted substances. The pill form, which is widely circulated in
the city, is also subject to the recall order. At a pharmacy located in Sha Kok
Estate, Sha Tin, consumers flocked to seek refunds. But some were frustrated
that they had been asked to travel to North Point to surrender parallel imports.
An elderly woman said: "It would cost a lot if I travel to North Point." An
elderly man who resides in the estate said: "I can't walk very well. There's no
way I can make it to North Point so I have to throw the 10 packs away." Other
consumers complained that pharmacies will only repay HK$13 a pack when the
listed refund price is HK$15. Wong Wai-man, sales manager of Man Tak Pharmacy,
said it can only offer a refund for HK$13 a pack as it is the price that
retailers are charged. Deputy Director of Health Gloria Tam Lai-fan said the
department has not ruled out taking legal action. "Li Chung Shing Tong
(Holdings) is a holder of a manufacturer's licence. We have to further
investigate to see if it had breached any ordinance," Tam said. The Chinese
medicine was found to contain phenolphthalein, banned in 2001 for its cancer-
causing effect, and sibutramine, a controlled substance that can raise blood
pressure and heart rates. 
China*:
China risks growing social instability and even violence if the government does
not take effective action to address anger about forced evictions and
demolitions, a new report says.
Chinese Vice President Xi Jinping on Sunday visited an industry hub in southwest
Sweden and met with Vastra Gotaland County Governor Lars Backstrom. In his
meeting with Lars Backstrom and Swedish Deputy Prime Minister Maud Olofsson, Xi
said that this year marks the 60th anniversary of the establishment of
diplomatic relations between China and Sweden and that his on-going visit to
Sweden is aimed at further promoting friendly cooperation between the two
countries through celebrating the anniversary. Both the city of Gothenburg and
Vastra Gotaland County with an important place in Sino-Swedish friendly
exchanges and cooperation have played an irreplaceable role in the development
of ties between the two countries, Xi said. A replica of the 18th century wooden
merchant ship Gotheborg, which reached the southern Chinese city of Canton
several times in the late 1730s and early 1740s, is an important symbol for the
friendly exchanges between China and Sweden, said Xi. The 2006 return of the
reconstructed Gotheborg to Canton and Shanghai has enhanced the friendship
between the Chinese and Swedish peoples and thus helped a lot in promoting the
growth of the bilateral relationship, Xi said.
Number of outbound tourists
soaring - Two Beijingers study a New York travel offering at a travel agency
office in Beijing. The latest outbound tourism report by the China Tourism
Academy said China will the fourth largest source of outbound tourism in the
world by 2020. According to statistics from travel search engine Qunar.com, top
destinations for travelers departing from Beijing were Hong Kong, Tokyo, Seoul,
Singapore, Bangkok, New York, Paris, Kuala Lumpur, London and Sydney. China
Tourism Academy estimates as many as 54 million tourists will go abroad this
year, up from 47 million in 2009, reports Yu Tianyu from Beijing.
Gold council predicts huge jump in mainland demand - Currently the world's
second-largest gold consumer after India, mainland has seen its gold demand grow
at an average rate of 13 per cent per year over the past five years. Mainland’s
gold demand is expected to double over the next decade from current levels due
to jewellery consumption and investment needs, the World Gold Council (WGC) said
in report released on Monday. Currently the world’s second-largest gold consumer
after India, mainland has seen its gold demand grow at an average rate of 13 per
cent per year over the past five years. Demand from mainland’s two largest
sectors – jewellery and investment – reached a combined total of 423 tonnes last
year, with 314 tonnes supplied by domestic mines. “This shortfall creates a
snowball effect as China’s gold industry may not be able to keep pace with the
annual leap in domestic consumption despite rising to be the world’s largest
gold producer since 2007,” WGC said in the report. The mainland per capita
consumption of gold jewellery is one of the lowest, at 0.26 grams, compared with
other major gold consuming countries. If gold were consumed at the same rate per
capita as in India, Hong Kong or Saudi Arabia, annual mainland demand could
increase by at least 100 tonnes or as much as 4,000 tonnes in the sector alone,
it said. If the central bank boosts gold holdings to 2.2 per cent of forex
reserves, a peak level seen in 2002, from the current 1.6 per cent, mainland’s
total incremental demand would rise by 400 tonnes at the current gold price, the
report added. Mainland’s share of global gold demand doubled from 5 per cent in
2002 to 11 per cent last year, and the council predicted that mainland’s
domestic gold mines could be exhausted within six years. “The Chinese gold
industry is simply not responding fast enough to bring in new supply,” it said.
Thousands of visitors crowd the Bund,
which was renovated as part of Shanghai's preparations for the World Expo. New
Bund wins good reviews from visitors - Shanghai happy with its 4b yuan (US$882
million) attraction. The curtains drew back on Shanghai's front window yesterday
when the city's best-known landmark, the Bund, reopened after a refit costing
billions of yuan. The iconic strip of colonial buildings has been a chaotic
construction site for nearly three years as part of the city's immense
development drive ahead of the World Expo, due to open on May 1, but yesterday
it was mobbed by nostalgic locals and wide-eyed tourists. "It's awesome. This is
an awesome city," one visitor from the US state of Nebraska said. "We're here on
a business trip and we had just one day left for sightseeing, and I'm just
amazed. I'd never even heard of this place before." Even the weather - a highly
unpredictable factor in recent weeks - decided to co-operate, as the riverfront
promenade was bathed in glorious spring sunshine. The riverfront promenade is
now 40 per cent wider than before, and extended by almost a kilometre southwards
to 2.6 kilometres in length. New fountains, floral displays and seating areas
now line the stretch between the raised walkway and Zhongshan East Road,
although the precinct's extensive shopping areas remain empty. The four billion
yuan (HK$4.54 billion) project involved digging a 3.3 kilometre double-deck
tunnel to divert most vehicle traffic underground. But not every hint of the
past has been erased. The new-look Bund has kept at least one thing which earned
it a fond place in locals' hearts - a section of low wall known as the lovers'
wall. Speaking at a press conference last week, however, officials were keen to
stress that this was an attempt to preserve the area's community memory, and was
not intended to condone illicit behaviour. Along the widened riverfront walkway,
visitors numbered in their tens of thousands. Officials claimed last week the
new park would accommodate more than one million visitors per day, and it
appeared to have been given a thorough test. Everywhere was packed with
visitors, keen to have their photos taken against the grand row of colonial
structures or the shining towers of glass and steel in the financial district
across the river in Pudong. Feng Yuehong, a 70-year-old Shanghai pensioner,
posed with his two-year-old granddaughter on one of the area's brand-new fleet
of electric cleaning vehicles. "It's nice to see the place open at last," he
said. "My wife and I used to come here every day after work so we felt we had to
take a look on the first day it reopened. "I like the new look. It feels
comfortable and very clean. It's much wider and there are a lot more open spaces
for people to walk." The only obvious source of stress was around vans selling
drinks at bargain-basement prices - just three yuan for a bottle of name-brand
soft-drinks. Around lunchtime, they were so overwhelmed with thirsty tourists
they were having trouble handling the demand. Vehicle traffic was noticeably
reduced along the street after the opening of the road tunnel designed to handle
the majority of medium-sized cars travelling along the important north-south
corridor. But with the thoroughfare shrunk from 11 lanes to just six, the
remaining traffic was only a little safer for pedestrians. "I'm generally happy
with the park, but do think it would have been better with some pedestrian
bridges or subways," Ma Jingming, a Shanghai retiree who was trying to get home
after riding his unicycle on the waterfront, said. "They have really improved
the promenade - I think it could easily accommodate twice as many people as
today - but when you come back down to the road I think it is still a bit
chaotic and dangerous. "There is a very long wait at the crossings, and I think
that could be a problem when there are high numbers of visitors." The Bund's
massive redevelopment project represents just a tiny fraction of the city's
preparations for the six-month World Expo. The mainland's biggest international
event since the Beijing Olympics in 2008 is expected to draw upwards of 70
million visitors, and the municipal government is pulling out all stops to show
off the city as vibrant and modern. The expo's budget is already estimated to be
twice that of the Olympics and has involved a massive drive to upgrade the
city's transport network and other infrastructure. But Shanghai has rejected
plans for a massive opening extravaganza featuring performances spanning the
Huangpu River. As probably the city's most famous attraction, the Bund is
playing its part in promoting the event. A large, temporary stage has also been
erected for use in celebrations to mark the one-month countdown to the expo
tomorrow night. But the view did not win over everybody who visited yesterday.
"It's just a river," Liu Jinwei, a visitor from Suzhou , Jiangsu province, said.
"I think it's nice, but nothing so amazing as I'd expected. There are too many
people."
Mainland’s central bank, facing a
tough job steering monetary policy, appointed three new academic members to its
policy-making panel on Monday. The announcement by the People’s Bank of China,
made on its website (www.pbc.gov.cn ), confirmed an earlier report in the China
Business News. Three prominent economists will replace Fan Gang, the only
academic member of the monetary policy committee, which plays a pivotal role in
framing policy advice on issues such as interest rates and the currency. The new
members include Zhou Qiren, head of the China Center for Economic Research at
Peking University. His predecessor, Justin Lin, is now chief economist at the
World Bank. The other new members are Xia Bin, head of the financial institute
of the Development Research Centre, a think-tank under the State Council and Li
Daokui at Tsinghua University. The China Business News said the trio would
attend their first monetary policy committee meeting on Tuesday. An assistant to
Zhou at Peking University said the economist would attend a central bank meeting
on Tuesday but declined to give further details. The appointments mark a
continued effort by the PBOC to shore up its policy-making process as it strives
to strike a balance between sustaining growth and keeping inflation tame. The
panel is chaired by Zhou and includes senior officials from the cabinet, the
Finance Ministry, planning agency and financial regulatory agencies. Xia, a
former central bank official, is considered an expert on monetary policy and
financial reforms. Li is held in high regard as a macroeconomic analyst. Zhou,
who has a PhD in economics from the University of California, has been focusing
on economic restructuring. “This shows the central bank is more willing to
listen to opinions from external experts and listen to different views,” said
Qing Wang, China economist at Morgan Stanley in Hong Kong. “The central bank is
well ahead of state agencies in promoting policy transparency and opening up to
external experts’ views, which are more balanced and far-sighted,” he said.
Mainland’s cabinet retains the final say on key policy changes, including
interest rates and the exchange rate, but the central bank has been fighting for
more decision-making authority. Previous academic members of the committee,
which holds meetings on a quarterly basis, include Yu Yongding and Li Yang, both
from the Chinese Academy of Social Sciences, another top government think-tank.
Ribbons on a dragon: the new
Hong Kong city symbol - HK still 'Asia's World City' as HK$1.4m rebranding
changes little - Three ribbons have been added to the flying dragon logo used to
promote the city in a HK$1.4 million redesign - part of a review of Brand Hong
Kong which left the "Asia's World City" slogan unchanged. Designer Alan Chan Yau-kin
created the new logo with an "evolved" dragon, along with three ribbons. Chan
said the blue and green ribbons symbolise blue sky and a sustainable
environment, while Lion Rock, which represents the "can-do" spirit of
Hongkongers, is silhouetted by the red ribbon. "The new dragon maintains the
essence of the old flying dragon, but it has evolved," Chan said. The new and
old dragons would co-exist for a time until the old logo was phased out, said
Financial Secretary John Tsang Chun-wah, who helped unveiled the logo yesterday
at the Cultural Centre in Tsim Sha Tsui. Designer Eric Cheung Kai-wa, who led
the team that created the original flying dragon logo 10 years ago, said it was
difficult to find the city's character in the new logo. "I'm shocked by the
changes made to the original design," Cheung said. "The additional elements
create confusion. From a distance, you can see only ribbons, not the dragon. And
the 'East meets West' element is lost." Cheung said the "East meets West"
element was embodied in the old design since parts of the dragon formed the
Chinese character for Hong and the English initials for Hong Kong. But he said
the element was lost in the new design with the Chinese character missing.
There's another change, too. Hong Kong's core values will henceforth be these:
free, enterprising, excellence, innovative and quality living. That's compared
to the previous values adopted in 2004: stable, free, progressive, high quality
and opportunity. Asked why democracy was left out of the "updated core values",
Tsang said: "Democracy is in our hearts." The brand review began in May 2008 and
ended in April. It involved surveys, workshops, creative contests and
consultation sessions to gauge the public's perceptions of the city. In one of
the surveys, people were asked to pick one of at least 56 pictures which they
considered "most representative of my ideal Hong Kong in 2020" and give their
reasons for the choice. They included a nest of three golden eggs, a row of
coloured pencils, a dashing leopard, footprints on a beach and an open door.
"Brand Hong Kong is the city brand of Hong Kong people and what they think about
their own city is of prime importance," Tsang said. The "Asia's World City"
slogan would remain unchanged after the surveys "revealed general support for
Hong Kong to position itself as Asia's world city", he said. The Sunday Morning
Post (SEHK: 0583) reported in September 2008 that the review was being carried
out by civil servant Mary Leung Lai Yim-ming and branding consultant Rachel
Chan. The government last December invited designers to create a new logo while
preserving the essence of the original dragon. "The feedback from the review
shows general backing for the dragon," Tsang said. "Members of the tourism
sector are strong advocates on this point." Brand Hong Kong was launched in 2001
to promote the city after the East Asian financial crisis. The design of the old
flying dragon logo took 11 months and cost HK$9 million, including research
expenses. Chief Executive Donald Tsang Yam-kuen proposed the review in his
policy address in October 2007. By September 2008, the Information Services
Department had spent HK$1.3 million hiring multinational communications company
Fleishman-Hillard to interview residents about how they believe the city should
be branded. Asked how much the review had cost, the financial secretary
yesterday said he did not have the amount to hand. The Information Services
Department would not give the project's cost either. It said only that the
design contract with Chan's agency was worth HK$1.4 million. "The contract sum
of about HK$1.4 million with his design agency covers more than a logo design,"
a government spokesman said yesterday. "It includes a whole range of designs
relevant to brand implementation." The spokesman said the public should not just
focus on the brand logo. "Other brand elements - core values, attributes
positioning and platform - are equally, if not more, important," he said. The
government yesterday also unveiled a promotional video featuring actor Chow Yun-fat,
pianist Li Yundi, business leaders Philip Chen Nan-lok and Allan Zeman and
soccer player Chan Siu-ki. 
Banker toasts a HK$2.5m (US$324,678) thirst for Chateau Lafite - Private banker
Timothy Lo has splashed out a record HK$2.56 million for a collection of French
wine dating back four centuries. Auctioneer Acker Merrall & Condit said the
price was an auction world record for a single lot of 70 bottles of Chateau
Lafite Rothschild, featuring vintages aged from 1799 to 2003. Lo said he had
been a dedicated wine collector and drinker for more than 20 years and the
Lafite was one of his favourites. "It was there, it was in my budget, so I
bought it," he said. Lo said he was thrilled with his purchase and was looking
forward to drinking them with friends - at least those bottled within the last
30 years. Yesterday's Lafite splurge was not the only purchase made by the
managing director of French private bank CIC Investor Services; he and one of
his mainland friends spent HK$6 million to HK$7 million between them at
yesterday's auction, but who's counting? And anyway, he said, the wine was
secondary to those you chose to drink it with. "Wine is just the companion. It's
the friends that are important," he said. Lo said about 70 per cent of the
buyers at the auction at the Island Shangri-La were from the mainland. "Lafite
is the most famous wine in mainland China. From my friend's point of view, wine
is reasonably priced in Hong Kong, because the tax is more than 70 per cent on
the mainland," he said. "He can come here and take a few bottles back each
time." Acker Merrall & Condit's auction director John Kapon said HK$57.6 million
was spent during the two-day auction.
Samoa celebrates after winning
the Hong Kong Sevens rugby tournament against New Zealand on Sunday. Samoa won
24-21. A tournament that began with fears about the air quality ended in Samoa
taking the breath away with a wondrous come-from-behind performance to defeat
New Zealand 24-21 in the Cup championship at the Cathay Pacific (SEHK:
0293)/Credit Suisse Hong Kong Sevens on Sunday. It was Samoa’s third IRB Sevens
World Series title in a row and gave them the lead for the first time in the
11-year history of the competition. With two legs remaining in England and
Scotland, Samoa are on top of the standings on 124 points with the Kiwis
trailing by three points.
Charlene Choi Tsoek-jin
yesterday announced she was divorcing singer-actor Ronald Cheng Chung-kei. It
was the first confirmation they had been married. At a press conference Cheng
said he and Choi, affectionately known as "Ah Sa", had secretly married in Los
Angeles in 2006. At the time, Choi's co-star in the acting and singing duo
Twins, Gillian Chung Yan-tung, was still seeing on-off boyfriend Edison Chen
Koon-hei, whose sexually explicit photos of her were later to land on the
internet and derail the duo. "We were happy about our decision and we had our
parents' support," Cheng said. "Ah Sa and I always think that marriage is a
private matter, and that there is no need to share this with other people." The
pair called a press conference at Kowloon Bay's Hong Kong International Trade
and Exhibition Centre after Chinese-language newspaper Apple Daily yesterday
revealed the existence of a marriage certificate in their names. Cheng, 37, said
his marriage with Choi, 10 years his junior, had been a happy one but that they
had come to the conclusion they should go their separate ways. He is the son of
music industry heavyweight Norman Cheng Tung-hon, the head of record company
Gold Typhoon. "We realised that separation would be good for us," Cheng said.
The separation had nothing to do with a third party, he said. "It was a rational
decision." They were in the process of getting divorced, he said. "Although we
cannot stay man and wife," a tearful Cheng said, "we will remain friends
forever." While Cheng was emotional, Choi was expressionless as she spoke
briefly. "From the time we began dating to the present day, we believed we did
not have to explain our choices to people, because this is our private life,"
she said. "But artists cannot have any privacy." The couple did not take any
questions. Rumours that Choi and Cheng were married began to spread following
the recent announcement the Twins would stage a reunion concert in mid-April -
their first appearance together on stage since the sex-photos scandal. Choi has
enjoyed a successful solo career during Chung's hiatus. She has acted in movies
and last year released a solo album whose title, Two Without One, is a reference
to the duo's status. Cheng's early career suffered because of his bad-boy
reputation. In 2001, he was sentenced to four months' jail, suspended for two
years, by a Taipei court for going on a drunken rampage aboard an airliner. He
was found guilty of violating aviation regulations and attacking cabin crew, the
co-pilot and pilot on an Eva Air flight from Los Angeles to Taipei. The pilot
knocked him out with a flashlight.
Photo taken on March 27, 2010 shows
the night view of the renovated bund in Shanghai, east China. Shanghai's Bund
reopened on Sunday after a thirty-three months' renovation project to welcome
the 2010 World Expo.
Children fly the balloons during the
completion ceremony of bund renovation project in Shanghai, east China, March
28, 2010. Shanghai's Bund reopened on Sunday after a thirty-three months'
renovation project to welcome the 2010 World Expo.
Guangxi farmer Chen Guihua and her
parents-in-law, both in their 60s, need to walk nine kilometres and cross two
mountains almost every day for two buckets of clean drinking water to survive
the once-in-a-century drought that has struck the southwest of the mainland.
They have not taken a shower or brushed their teeth for more than three months
and their plight is only getting worse. They are now forced to stay indoors most
of the time to reduce water usage and avoid the high temperatures that have
accompanied the drought. Chen, 27, is now the only young woman living in the
Zhuang ethnic minority village of Nongmei in Sanshi township, Donglan county,
one of the eight worst-hit counties in Guangxi. Almost all young and middle-aged
villagers have left since the devastating drought began last autumn, drying up
water sources and preventing farmers from getting on with spring planting.
Elderly villagers and children unable to walk such a long distance for safe
drinking water are forced to survive on just two bowls of water a day. Many
livestock have died of thirst. In Guangxi, the drought has left more than 2.2
million people and 1.1 million head of livestock short of water and 740,000
hectares of farmland too dry to plant. At least 77 cities or counties in the
autonomous region have declared a state of emergency and weather forecasters do
not predict an end to the drought any time soon. 
The drought has left more than 2.2
million people and 1.1 million head of livestock short of water in Guangxi,
while 740,000 hectares of farmland are too dry for planting. With 77 cities or
counties declaring a state of emergency, there is no end in sight to the
aridity.
Co-founder and chief executive of the
G.O.D. lifestyle brand Douglas Young (left) visits an antique shop in Central on
the first cultural walk staged by the Tourism Board. It aims to spread awareness
that the city has more to offer than shopping and dining. 
Culture guide to show city offers more than just shopping - Hong Kong has more
to offer than just shopping and dining and the Tourism Board is trying to get
that message across through a new guide book to the local arts and culture
scene. The guide is the first launched by the board and is aimed at spreading
awareness of the city's cultural attractions ahead of the rise in cultural
tourism once the West Kowloon Cultural District is completed in four to five
years. It illustrates the must-see arts and cultural shops, sites, and
attractions recommended by cultural personalities. The almost 100-page guide,
which cost HK$600,000 to produce, is divided into nine chapters, six of which
focus on attractions in lower Central, SoHo, Sheung Wan and Western District,
Wan Chai, Tsim Sha Tsui and Yau Ma Tei. Each chapter features a simple map
showing the locations of attractions, which include art spaces and heritage
buildings. Shops and sites of distinctive local cultural characteristics, such
as "beating the devil" under the flyover of Canal Road West in Causeway Bay,
stalls selling collectibles on Cat Street in Central, and "Korean Food Street"
in Tsim Sha Tsui are also listed. One chapter highlights artists' villages and
creative clusters. The final two chapters give readers useful information,
including a calendar of cultural events. Tourism board chairman James Tien
Pei-chun said that with the rise of green tourism and cultural tourism, the
board wanted to promote a wider variety of destinations for tourists. "Over 50
per cent of tourists are not first time visitors. When they do return, shopping
and dining will not be the only things they look for. We should provide more
options for them," Tien said. He said that with the recent appointment of the
chief executive of the arts hub, it was necessary to start promoting cultural
tourism to lay the foundation for when the arts hub was completed. Freeman Lau
Siu-hong, a designer and consultant on the guide, said it would also be
informative for Hongkongers. "There's information in it that even I did not know
about," he said. The guide's first print run is 20,000 copies, with 10,000
copies in English, and the rest in traditional or simplified Chinese. The board
said that the guide will initially be distributed at the Visitor Information
Services at Star Ferry pier in Tsim Sha Tsui, and some of the board's overseas
offices. The content will also be uploaded on to the internet. 
Thousands of potential homebuyers queued
up yesterday in the hope of acquiring a flat at Li Ka-shing's latest development
- Festival City in Tai Wai near Sha Tin - where the cheapest was being offered
at HK$8.32 million. The line started to form outside the Cheung Kong (Holdings)
(SEHK: 0001) sales office in Hung Hom's Metropolis Mall around 4pm, an hour
before the sale officially opened. "There are 5,000 to 6,000 people here. The
shopping centre is packed with people and all the restaurants are full. There
will be more on the way here after work," said Sammy Po Siu-ming, New
Territories director for real estate agency Midland Realty. According to Cheung
Kong, more than 300 flats were sold by 9.30pm last night for HK$3 billion. Some
7 per cent were sold to mainlanders. "The sales will go on overnight as Cheung
Kong always releases as many flats as possible," Po said. To curb speculation at
Festival City, Cheung Kong is the first developer to introduce a cap, with
buyers limited to acquiring only two flats in their own name or that of a
company. Po said from his observation only a few people were buying two flats.
Amid growing concerns that speculators are making it difficult for the average
person to obtain a flat, Sun Hung Kai Properties (SEHK: 0016) and Henderson Land
Development (SEHK: 0012) will also impose restrictions to stop multiple
properties in their new projects being scooped up by one person. Po said some
mainland buyers had travelled to Hong Kong to buy flats in Festival City, but
not many. "About 70 per cent of the buyers live in Tai Wai or Sha Tin and want
to upgrade to bigger flats," he said. Cheung Kong released the first batch of 20
980 sqft flats at an average price of HK$8,692 per sqft for cash buyers. Prices
ranged between HK$8.32 million and HK$8.75 million. The developer then released
80 flats, ranging from 1,000 sqft to 1,400 sqft at HK$9,000 to HK$10,000 per
sqft, or between HK$12 million and HK$15 million per flat. Cheung Kong executive
director Justin Chiu Kwok-hung said the developer would release all 1,360
Festival City phase-one flats, which are due to be completed in August,
according to demand. The whole development comprises 4,328 flats. Eric Yuen Chi-fung,
the head of research at Guoco Capital, said the total investment cost of the
project was HK$5,000 per sqft. Based on the first batch being sold for HK$8,692
per sqft, this represents a profit margin of at least 74 per cent.
Businesswoman Dr Lily Chiang Lai-lei has
lost the last battle in her year-long fight to have her company fraud case heard
by a jury. The Court of Final Appeal yesterday refused to hear her appeals
against two rulings that struck down her judicial reviews seeking a jury trial
in the Court of First Instance. Chiang, 49, the former chairman of the General
Chamber of Commerce, faces five charges in relation to an alleged share option
fraud. A magistrate transferred the case to the District Court a year ago.
Chiang has been seeking a transfer to the Court of First Instance, arguing that
she would get a more sympathetic hearing from a jury. But Chief Justice Andrew
Li Kwok-nang said yesterday the delay in the proceedings was highly undesirable
and the highest court said her appeals had no grounds. Chiang was arrested by
the Independent Commission Against Corruption in October 2007 and charges were
laid against her the following January. In March that year the case was
transferred to the District Court on the application of the prosecutor. For
Chiang, Johnny Mok SC told the top court yesterday he accepted she would get a
fair trial in the District Court. But she preferred a jury trial in the High
Court because it would be easier for her to gain sympathy from the public for
her character and charity work. "My chance before a jury must be much better,"
the barrister said, noting that a recent commercial case had attracted a maximum
sentence of seven years in the District Court. In the first judicial review
before Mr Justice Alan Wright in the Court of First Instance - while the case
was still before the Magistrate's Court - Chiang said she should have a say in
deciding the venue of her trial. This was turned down and the criminal
proceedings resumed. In the second challenge, which was launched in May last
year, she sought to review the magistrate's order transferring the case,
contending it was unconstitutional. But on June 1 Wright refused her leave to
lodge the review. Chiang was the first woman to chair the chamber in its
147-year history. She and Shah Tahir Hussain, 45, are accused of one count of
conspiracy to defraud and two of making false statements over the granting of
share options to employees of Pacific Challenge Holdings, a listed brokerage
company she used to run. Chiang and Pau Kwok-ping, 54, former chief executive of
Eco-Tek Holdings, also face two counts of fraud in relation to the listing of
Eco-Tek - a company Chiang founded. Her cases will be brought to the District
Court on May 18 for consolidation and a pre-trial review.
PLA Navy ships enter Gulf for the first time - Chinese warships are this weekend
anchored in Abu Dhabi - the first time the People's Liberation Army Navy has
entered the oil-rich Persian Gulf, a strategic US stronghold. The two ships, the
frigate Maanshan and supply vessel Qiandaohu, sailed through the Strait of
Hormuz this week on their way to the capital of the United Arab Emirates. The
historic mission follows the end of their three-month rotation on anti-piracy
patrols further south off the Horn of Africa and is being closely watched by
foreign naval analysts observing China's growing naval presence in the Indian
Ocean. With the PLA needing a network of friendly ports, if not full bases, to
sustain long-range blue-water deployments, all new Chinese port visits are being
scrutinised by regional powers. Gary Li, a researcher on the PLA at the
London-based International Institute of Strategic Studies, said the visit was
highly significant. "It fits perfectly with their strategy of using this
anti-piracy work for broader goals of quietly building new strategic
relationships," he said. "We can see a gradual but steady engagement at work,
starting with trade and ending with the network of friendly places that they are
certainly going to need if they are going to be able to realise their blue-water
ambitions." The Abu Dhabi mission was marked by some formal military diplomacy,
with the Chinese warships welcomed by the UAE's deputy chief of naval
operations, Sheikh Saeed bin Hamdan Al Nahyan, who noted the "great historical
significance" of the visit. Qiu Yanpeng, task group commander and deputy chief
of the PLA Navy's East Sea Fleet, was quoted by Xinhua as saying the visit would
help future military exchanges. "Ever since the establishment of diplomatic
relations between China and the UAE, our bilateral ties have grown steadily and
both sides favoured each other with valuable support and co-operation on
international and regional affairs," he said. With the Gulf states of Saudi
Arabia, Kuwait and Oman now the largest suppliers of crude oil to China, Beijing
is also negotiating an agreement to buy oil from the UAE. Gao Yusheng,
ambassador to the UAE, was quoted by Abu Dhabi newspapers as saying an oil deal
was expected this year. "Maintaining security in the Gulf is vital to the area
and the world, including China," he added. Iran and Iraq also border the Gulf -
factors which, in part, will ensure a strong United States presence for some
time to come. The visit comes as China attempts to broaden its anti-piracy work,
in party by seeking to head international co-operation efforts and help European
Union naval forces escort United Nations food aid shipments to the failed state
of Somalia. The efforts are seeing PLA ships enter more ports, including
Djibouti and Aden in the Gulf of Aden. The UN escorts will also see Chinese
ships enter the port of Mombasa in Kenya and potentially dangerous Somali ports.
The French, also increasingly active in the Indian Ocean, have recently
established a base in Abu Dhabi in addition to their other regional holdings,
while the US Fifth Fleet maintains a facility in Bahrain. Routine resupply
logistics are seen as one of the biggest tests for the Chinese deployment, which
started in January last year - the first time Chinese forces have entered
potential combat zones beyond their home waters in centuries. As well as port
calls, Chinese state-owned shipping has been used to ferry fuel, water and food
to the task force, while PLA leaders have recently talked up the importance of
state firms helping the military overseas. "The importance of basic logistics in
these long-range deployments cannot be underestimated," said Sam Bateman, a
maritime security scholar at Singapore's Institute of Defence and Strategic
Studies. "While they may be building a network, I think it is still going to be
many years before China is still able to operate fully independently at long
range to meet a full range of military objectives."
The prolonged drought in the southwest is
threatening regions responsible for over 80 per cent of the world's production
of star anise, source of a key ingredient in the flu-fighting antiviral drug
Tamiflu. Guangxi and Yunnan, two of the provinces hit hardest by the
once-in-a-century drought, have forecast dramatic falls in star anise production
and corresponding price increases. Star anise, called bat gok in Cantonese and
ba jiao in Putonghua, is a common cooking spice in northern cuisine and also a
key raw material used to produce Tamiflu, one of two antiviral drugs recommended
by the World Health Organisation last year to treat patients infected with swine
flu. Roche, the Swiss pharmaceutical giant that makes Tamiflu, buys huge amounts
of star anise from China to extract shikimic acid, the active ingredient in the
drug. Industry insiders say the two provinces account for more than 90 per cent
of China's star anise production. In Guangxi, the nation's biggest star anise
grower with 350,000 hectares of farmland devoted to the tree and an annual
output of 80,000 tonnes, months of drought have disturbed the growing cycles,
leaving many trees unable to produce flowers or fruits. Yang Wende, president of
Guangxi's Star Anise Association, the province's biggest star anise farmers'
union, said at least 30 per cent of trees had been affected by the drought. "We
have had no rain for more than six months. Few trees have grown fruit and some
bloomed but soon wilted because of the water shortage," he said. "They will be
hard- pressed to survive until the harvest season." Yang, who farms 200 hectares
of star anise himself, said more than 2,000 individual members of his
association and 36 corporate members had poor harvest prospects this year. Star
anise is usually harvested in March and October. "Last year was a small year and
this year was supposed to be a big year," Yang said. "But who could have
imagined such a severe drought? Some shoots we planted would not even grow."
Yunnan, which accounts for around 5 per cent of the country's star anise
production, seems to be faring even worse. Huang Yubo, deputy director of the
Star Anise Research Institute in Funing county, where 80 per cent of the
province's star anise is grown, said all 26,700 hectares of trees had been
affected and losses of at least 31.16 million yuan (HK$35.43 million) were
forecast. He said production was expected to fall by 30 per cent. A Xinhua
report quoted a supplier of traditional Chinese medicines as saying that star
anise fruits had fallen from half the trees in some parts of Yunnan. Swine flu
had killed at least 16,455 people in 213 countries and regions by last month and
the World Health Organisation says it is still too early to say the pandemic's
peak has passed. The Ministry of Health says cluster outbreaks are still
possible in some areas and the Centre for Disease Control and Prevention is
remaining alert. Huang said star anise prices had fluctuated a bit this month
but he expected them to soar when dealers began visiting production areas around
June. The price climbed to more than 50 yuan per kilogram in 2000 after a severe
drought. Dealers were able to buy dried star anise for only seven yuan per
kilogram until last April, but the price had risen to around 24 yuan as the
global swine flu outbreak prompted countries to store Tamiflu for prevention and
treatment. Mainland pharmaceutical companies are also strong buyers. In Kunming
markets, the dried fruit sells for almost 50 yuan per kilogram. Price rises were
almost certain, Huang said, with farmers' stockpiles low because of the fierce
demand last year due to the fears over swine flu. A spokesman for Roche China
said the company had not received any reports about shortages of star anise that
would affect the production of Tamiflu. In 2005, a temporary shortage of star
anise led to worries about Tamiflu production. Late that year, a way was found
to making shikimic acid artificially by deriving some of the raw material needed
from fermenting E. coli bacteria, but most of the company's shikimic acid still
comes from star anise produced in China. 
The Little Mermaid's big
adventure - Denmark's Little Mermaid statue has left her perch in the Copenhagen
harbour and started a journey to the World Expo in Shanghai - the first trip
abroad in her 96-year history.
A bank employee totes yuan
banknotes in Suining, Sichuan province. The overall trade surplus was US$198.1
billion last year, down from US$297.4 billion the year before. Signs are
emerging of conflicting views among China's leaders over whether to allow the
yuan to rise against the US dollar. The conflict, which has broken into rare
public view, seems to be mainly between the central bank and the Commerce
Ministry. But how it is eventually resolved could decide the course of trade
tensions between China and the United States. Many experts believe China
undervalues its currency, making exports more competitive on global markets and
creating jobs at the expense of employment elsewhere. The current drama began on
March 6 when the governor of the central bank stunned analysts by saying that
the bank's policy of keeping the yuan at a constant exchange rate against the
dollar was a "special" response to the global financial crisis. The new
description suggested to many economists that the current value of the yuan was
temporary and that the central banker, Zhou Xiaochuan, was preparing the public
for a stronger currency. But other officials, particularly at the Commerce
Ministry, have fought back in the past two weeks, stoking nationalism and
anti-American sentiment by loudly declaring that China would not be told what to
do by the US. "It seems like they are talking from different perspectives," said
Li Wei, the director of the American studies department at the Chinese Academy
of International Trade and Economic Co-operation. He supported the government's
overall stance of resisting US pressure. The debate is far from academic. In the
coming weeks, the Obama administration faces a series of politically charged
deadlines set by Congress to decide whether to continue negotiating with China
over currency and trade issues or to take a more confrontational stance and name
it a currency manipulator. If the administration labels China a currency
manipulator, it would face further congressional pressure to impose punitive
tariffs on many Chinese goods. So far, the mediawise Commerce Ministry is
trouncing the normally secretive central bank. Every few days, senior ministry
officials have spoken out, warning that pressure to let the yuan rise is
"irrational". The ministry is close to exporters, who are still upset that
shipments fell early last year for the first time since China began opening up
trade in the late 1970s. The overall trade surplus was US$198.1 billion last
year, down from US$297.4 billion the year before as global trade shrank during
the financial crisis. The ministry has even taken its campaign to Washington,
with deputy minister Zhong Shan giving a speech at the US Chamber of Commerce on
Wednesday and saying at the embassy that American pressure for a stronger yuan
"is unacceptable to China". These comments have raised a surge of anti-American
sentiment in internet chat rooms and prompted daily headlines on the front pages
of Chinese newspapers that China must not "back down". Some Chinese economists
gingerly suggested in the past year that China could find better uses for the
hundreds of billions of dollars it spends buying US treasuries and other foreign
securities to keep the yuan from rising against the dollar. That investment in
overseas bonds was equal to nearly a tenth of China's entire economic output
last year, even though treasuries have a return of only 0.13 to 4.73 per cent.
If the currency does appreciate eventually, the value of China's vast foreign
reserves will plunge in yuan terms - a loss for which the central bank would
likely be blamed. Maintaining the current level of the yuan also means the
central bank cannot easily push up interest rates - a move that countries
normally use to battle inflation. That may be necessary in China, where the
economy is doing so well and the country's international competitiveness is so
strong that inflation is appearing. Exporters have more orders than they can
fill - although imports have been rising even faster as companies have
stockpiled commodities as a hedge against inflation. These problems have made
the central bank unenthusiastic about selling yuan and buying foreign bonds so
as to hold down the value of the currency, people close to it said. But the bank
has been reluctant to make its case in public, consistently rebuffing requests
for interviews, and now may have missed its chance as the increasingly free
Chinese business press has embraced the weak yuan as a nationalistic symbol of
Chinese sovereignty. For decades, currency policy has been the purview of the
central bank, but it is a politically weak institution. Commerce Ministry
officials say that they are following a broader trend in the government of
greater responsiveness to the public. "Our ministry is doing a good job to be
more open and more transparent - there is even an office in our ministry
responsible for publicising our policies," said Chen Rongkai, the ministry's
division director for press.
Expo Park under preparations before
trial operation.
State fund for homegrown jumbo jet urged - The chief designer of the country's
first C919 jumbo jet has urged authorities to establish a multi-billion-yuan
State fund to help boost the sales of homegrown airplanes. More financial
support from the government will bolster the domestic aviation industry, which
is facing strong competition from foreign players such as Boeing and Airbus,
said Wu Guanghui, vice-president of the Commercial Aircraft Corporation of China
Ltd (COMAC). China is forecast to need about 4,000 planes in the next 20 years.
Major domestic airlines such as Air China, China Eastern and China Southern, as
well as Sichuan Airlines and Hainan Airlines, have expressed strong interest and
support in buying his company's jumbo jet, Wu said. The letter "C" in the title
of the country's first homegrown jumbo jet is said to stand for "China" as well
as "COMAC", while the first "9" implies "forever" in Chinese culture and the
"19" stands for the jet's maximum 190 seats. The single-aisle jetliner is
designed for short- to medium-haul flights of up to 5,555 km. The draft design
of the country's first independently developed jumbo jet will be completed by
this year and be put into production by next year, Wu had said earlier. The
plane is slated to test fly in 2014 and be ready for deliveries after 2016.
COMAC, which was founded in 2008 to take charge of the country's jumbo jet
project, expects to sell 2,000 C919 planes at home and abroad in the next two
decades, Wu said. "But what could harm the sales of the domestically made planes
is that very few aircraft-leasing companies buy domestic airplanes and rent them
to airlines," he said in an interview with China Daily. "Leasing is the major
way for airlines to expand the fleet ... and the situation will especially
hinder small airlines, which are short of funds, from buying the cheaper
homemade jets." Wu suggested that the government establish a State fund of at
least 30 billion yuan to help homegrown jet buyers with their financing. The
government should also give interest subsidies or exemptions through policy
banks to firms and airlines that lease or use homegrown planes and airlines.
Firms and airlines from both home and abroad could enjoy the policy, he said.
Currently, the government gives interest subsidies to MA60, a 50-seat turboprop
manufactured by the Aviation Industry Corporation of China (AVIC). By last year,
AVIC had acquired 186 orders for the planes and delivered 29 of them to users
from home and abroad. The government should extend and strengthen subsidies in
the next five years for the use, lease and export of all homegrown planes, which
include the C919 and another self-developed regional plane, the ARJ21, which has
70 to 90 seats and is slated to be delivered this year, Wu said. "A team
including COMAC and relative government departments is now studying the issue,"
he said. Among the 1,000-strong fleet of planes now flying commercial routes in
China, only four are homemade MA60 regional planes. Most are Boeing and Airbus
aircraft. As so few of the homegrown aircraft are used, it will take a long time
for domestically developed commercial planes to form an effective brand, said
Sun Cong, deputy chief engineer with AVIC. "In a market dominated by companies
like Boeing, Airbus and Bombadier, government support is necessary," Sun said.
All major commercial aircraft companies receive government subsidies, he said.
For example, when Airbus first took off, it received government subsidies and
won support from local carriers such as Air France and Germany-based Lufthansa,
before gradually taking a firm place in the market. Boeing also received direct
government subsidies on various projects, including the 787 project, media
reported. 
The liquid arsenic developed by Professor
Kwong Yok-lam's team at the University of Hong Kong is said to be more
convenient, cheaper and safer than previous injected forms. A leukaemia drug
made from arsenic and taken orally - the first of its kind in the world - has
become the first fully Hong Kong-made medicine to be granted a patent in the
United States. The liquid form of arsenic trioxide, developed after a decade at
the University of Hong Kong, is more convenient, cheaper and safer than the
injected form used previously as well as being more suitable for elderly
patients, researchers say. The drug was developed in 2000 and has been under
testing since. The researchers announced yesterday it had been awarded the US
patent last year. Chair professor of the university's division of haematology,
oncology and bone marrow transplantation, Kwong Yok-lam, said he first learnt of
the drug - pi shuang in Chinese - in 1998, when mainland doctors were using an
injected form to treat a rare type of leukaemia. "I just wanted to try to see if
a conversion to an oral drug could benefit more patients. I never imagined that
I would succeed," he said at a press conference yesterday. The drug is used to
treat acute promyelocytic leukaemia (APL), which accounts for about 3 per cent
of all blood cancer cases and affects 10 to 20 new patients in Hong Kong each
year. But the researchers say it is also useful in treating lymphoma and myeloma
and they are now applying for patents to treat more diseases, such as cervical
cancer and non-cancer conditions. Since the liquid form was developed in 2000,
it has been prescribed to more than 100 APL patients in the city. Of 56 who had
had a previous relapse of APL, 55 did not have another relapse using the oral
drug. Their five-year survival rate was 70 per cent, higher than that of a bone
marrow transplant (50 per cent) and chemotherapy (25 to 30 per cent). Of a
further 65 seeking to prevent a relapse, leukaemia returned in only five of whom
three were eventually cured using the same drug. Some patients had been
cancer-free for a decade. Queen Mary Hospital haematology consultant Dr Au Wing-yan,
one of the few doctors using the new drug, said taking arsenic orally was much
more convenient, safer and cheaper than having it injected or going through
chemotherapy. He said patients could save thousands of dollars as they did not
need to spend months in hospital. Unlike the injection, the oral drug would not
pose dangers to the heart as its level of toxicity was lower, he said. The oral
drug also gave hope for elderly patients, who were too old to go through bone
marrow transplants or multiple chemotherapy. A treatment of arsenic injections
would cost US$50,000 a month, whereas the oral drug is expected to be at least
50 per cent cheaper when it is sold worldwide. Currently, Hospital Authority
patients do not need to pay for the drug. "I firmly believe that in 10 years our
home-grown oral arsenic will become the world's first choice in treating APL,"
Au said. Kwong said their decade-long study had not received either government
or private funding. "We were destitute and only managed to carry on with the
study using funding we got from other studies," he said, adding that they did
not apply for university research funding as that would mean publicising their
exclusive idea to a panel of reviewers that included overseas experts. "Many
people complain that their creativity does not get ample support. But I think
with determination and hard work, it would eventually pay off," he said. S.C.
Wong, now aged 42, was diagnosed with APL in 1999. He was given oral arsenic
after he suffered two relapses of leukaemia despite chemotherapy. He stopped
taking the drug in 2003 and has since been disease-free. "I had a hard time
going through chemotherapy, and had to stay in the hospital for half a year," he
said. "Oral arsenic makes me sleepy and tired, but it is much better and more
convenient than chemotherapy." Arsenic has proven useful to treat leukaemia
because it could attack and destroy the genes of malignant cells. The first use
of arsenic dates back 2,000 years in China. In the 1940s and 50s, it was used in
Queen Mary Hospital as an injection drug, but could cause chronic bleeding in
the intestine. Kwong reminded cancer patients that they should not buy arsenic
without doctors' advice, as the drug could be lethal when taken in the wrong
dosage.
A single major local feature movie
shot in Hong Kong can inject HK$40 million into the local economy, with daily
spending of HK$250,000 during the main filming stage. If a foreign film is shot
in Hong Kong, such as the Batman movie The Dark Knight, the average daily
spending can be over HK$1 million. These figures are revealed in a survey
commissioned by the International Federation Against Copyright Theft - Greater
China, which represents the Motion Picture Association in the region. They show
Hong Kong's film and television industries generated a gross output (total sales
of goods and services) of HK$33.7 billion in 2008, with the highest per capita
film and television production in Asia. Comprising 1,170 businesses employing
32,000 people, the industries generated HK$6.17 billion value added (output
generated by labour and capital) to Hong Kong's economy. Nansun Shi, executive
director of the Film Workshop, said such figures were important to the
government as a film or a television show had the power to change the outlook of
a country's economy by bringing in more visitors. She said Cape No 7 had
prompted many Hongkongers to visit the south of Taiwan while the popular South
Korean television drama Jewel in the Palace and the Lord of the Rings trilogy
had encouraged people to travel to South Korea and New Zealand respectively.
Television production and broadcasts generated the highest gross output among
five sub-sectors, contributing more than HK$20 billion to the economy. The
sector is so powerful that advertising revenue from television alone was HK$19.6
billion in 2007, equivalent to 34 per cent of total advertising spending in the
same year. The film exhibition sector in 2008, comprising 48 cinemas, generated
a gross output of HK$4.98 billion. The survey said some retailers and
restaurants recorded a drop in revenue by 25 per cent when nearby cinemas were
shut down for renovation. The film and television distribution sector provided
HK$3.6 billion of total gross output but only HK$712 million came from the home
entertainment sector, owing to rampant online piracy, the survey said. Between
1986 and 1992, Hong Kong had the largest film industry after India and the
United States, with over 200 films produced in 1992, grossing a record HK$1.55
billion. By the end of the 1990s there were fewer than 50 films being produced
each year. Now there are more co-productions between Hong Kong and the mainland.
In 2008, six out of the top-10 grossing films in China were co-productions. Sam
Ho, the federation's executive director and general manager, said while the
survey would be useful for the industry and the government, the industry was
also urging a response system to be included in amendments on digital contents
in the Copyright Ordinance. Under the system, an internet user would be warned
if found illegally downloading contents. The warnings would be stepped up if it
continued. 
Raw materials sourced from the mainland
caused the contamination that led to the popular Po Chai Pills being pulled from
the market, an investigation by the Department of Health has revealed. Po Chai
Pills, a Chinese medicine, have been in use for about 100 years as a remedy for
indigestion, heartburn, vomiting, diarrhoea and bloating. On Wednesday, health
chiefs advised the manufacturers, Li Chung Shing Tong, to stop selling its pills
and capsules following their recall in Singapore. The recall, described by the
Department of Health, as precautionary, was ordered after Singapore found the
capsules contained phenolphthalein and sibutramine, which can cause very serious
side effects. Phenolphthalein was banned in 2001 for its cancer-causing effects.
The side effects of sibutramine include increased blood pressure and heart rate.
The Department of Health said last night that after a field investigation on
Wednesday, findings so far suggest the source of contamination was likely to be
a batch of powdered raw materials used to fill the capsules, which was bought
for the first time from a mainland source in in May 2008. "We understand two
batches of capsules were produced with these raw materials. One batch (No21217)
was exported to Singapore, while the other batch (No21133) was supplied locally
and in Macau," a department spokesman said. The department's laboratory tests on
both batches detected the phenolphthalein and sibutramine. Both Po Chai Pills in
capsule and pill forms have been recalled since Wednesday, according to Li Chung
Sing Tong. Singapore's drug regulatory authority said phenolphthalein and
sibutramine were found in the capsules, which the manufacturers say are only
available in Singapore. Li Chung Sing Tong said yesterday that the capsules were
manufactured via a third party. All the products involved are for export and are
not on sale in Hong Kong or Macau. It added that pills sold in Hong Kong are
manufactured in a separate production line from the one involved in the
Singapore recall. A company spokesman said it will issue a statement in about
two days. Iris Chang Yee-man, Practising Pharmacists Association of Hong Kong
president, called for tightening of regulations on proprietary Chinese
medicines.
A villager draws water for her cattle from
a well near Kunming, capital of Yunnan province, in the southwest, where
millions are battling the effects of a once-in-a-century drought. With
hydropower dams drying up, Guangdong may turn to Hong Kong to beat an
electricity shortage – though that could worsen the city's air pollution. Many
small liquor makers in the home of China's top baijiu brand, Moutai, have been
ordered to stop production so that bigger producers can get enough water, as the
drought in southwest China drags on. Emergency cloud-seeding was carried out in
88 cities and counties in Guizhou this week, with 50 places seeing some rainfall
on Tuesday morning. But it was too little, too late for the liquor industry in
the town of Maotai, in Renhuai. Moutai, the most famous brand of the pungent
baijiu drink, made from sorghum and grain and 53 per cent alcohol by volume, is
favoured by leaders for state banquets. It is one of the most expensive liquors
in the world, with a bottle of 50-year-old Moutai selling for more than 20,000
yuan (HK$22,700). The severe drought has seen the water level in the Chishui
River, the main water source for local makers, sink to its lowest in more than a
century. Liquor giants such as state-owned Kweichow Moutai Company, producer of
Moutai, can no longer draw water directly from the river. Xiong Hongfei, a
marketing manager at Gutan Aged Liquor, a mid-sized distiller, said: "We have
had to rely on the redistribution of water resources arranged by the local
government since the drought became worse early this year, with clean water
drawn from the Chishui River being delivered only once every two or three days.
"So far the drought has not had a significant impact on large-scale liquor
producers because they are all equipped with water reservoirs." In order to
reserve water for good quality liquor, Xiong said the township government had
ordered many small liquor makers to stop production since late last year.
Finding water resources and digging wells for villagers in the five drought-hit
provinces and areas has become the top political mission for People's Liberation
Army garrisons after President Hu Jintao, as head of the Central Military
Commission, issued a joint order early this week along with the army
headquarters' General Staff Department and General Political Department. But no
immediate relief is in sight. More than 5,000 villagers of Yunnan's mountainous
Nanhua county have been forced to leave home and camp near streams at the foot
of a hill. The drought has affected about 61 million people and left more than
5.3 million hectares barren and 1.1 million hectares of crops dead in Guizhou,
Yunnan, Sichuan, Chongqing and Guangxi, Xinhua said. Broomcorn, a type of
sorghum that is the key ingredient for Maotai liquor, is usually planted around
now, but farmers in Guizhou are holding off due to the drought, Chongqing
Evening News said. "Liquor prices will rise if the drought continues and causes
crop failure this year," it quoted a liquor maker as saying. Crop prices in the
five drought-hit regions have risen in the past few months, raising fears that
nationwide food prices could increase significantly. But experts from the State
Council said unusual rises had been confined to drought-affected areas.
High-profile dealmaker and Goldman Sachs top Asian executive Fred (Zuliu) Hu is
likely to take up a senior post at China's central bank after formally stepping
down from the Wall Street bank in April, people familiar with the matter said.
The appointment is still under final review by top policymakers, and a formal
decision will be made in the next few months, the sources said. Hu is seen as
the right candidate for appointment as the vice-governor of the People's Bank of
China (PBOC). His appointment is also part of the government's efforts to bring
back the top 1,000 professionals working for Western firms to China to take up
senior positions at State-owned enterprises and government departments, the
sources said. Besides the PBOC job, policymakers are also evaluating Hu as a
candidate for a crucial position at one of the country's State-run lenders.
Though Hu was not immediately available for comments, the 47-year-old investment
banker has been in the limelight in the past few weeks after Goldman Sachs said
he was stepping down as partner. Given his rich financial expertise and
international exposure, there were reports that Hu would establish his own
private equity firm or join his alma mater Tsinghua University as a professor.
Sources said Hu was still in talks with top government officials on his
appointment. If it happens, Hu will be the first high-profile executive from a
Western firm taking up a senior position with the government. During his 13
years in Goldman, Hu spearheaded the multi-billion dollar public offerings of
several Chinese lenders. In 2006, he made a $3.78 billion investment for Goldman
in the Industrial and Commercial Bank of China (ICBC), now the world's largest
lender by market value. In 2004, Hu helped Bank of Communications, China's No 5
bank by assets, to sell a 20 percent stake to Europe's No 1 bank HSBC Holdings
Plc. Analysts said the move indicates a groundbreaking reform in the nation's
selection of senior government officials. It also signals a departure from the
tradition that Chinese officials should climb the management ladder gradually.
"Sending a paratrooper to a crucial post at a government financial department is
indeed rare. It also indicates the government's determination to achieve
breakthroughs in selecting officials and also promote the openness of the
financial sector," said He Jun, a senior analyst at Anbound Consultancy. "Hu's
credibility and past career achievements make him an eligible candidate,
considering the country's need to attract more professionals to shore up its
financial talent base," he said. The global financial crisis has also created
several opportunities for China to woo back its overseas financial talent, as
the economy has been on a robust growth track, while Western economies are
floundering. 
A new high-speed rail link
between two mainland cities has cut travel times so dramatically that all
competing air services on the route have been suspended, state media said. The
suspension of flights between the gritty industrial city of Zhengzhou and Xian,
home of the Terracotta Warriors, came just 48 days after the express railway
began operations, the official Xinhua news agency said on Friday. The 505km
railway, on which trains run at a top speed of 350 km/h, has cut the travel time
between the two cities from more than six hours to less than two, the report
said. By contrast, flying takes just over an hour. Xian’s airport is also
located at least an hour away by road from downtown. Before the railway opened,
Joy Air, one of the domestic airlines flying the route, managed to sell an
average of more than 60 per cent of seats for the route, Xinhua said. Zhengzhou
airport confirmed that all flights to and from Xian had now stopped, the report
added. Mainland is spending billions of dollars on a network of high-speed
railways, including one from Beijing to the country’s financial capital
Shanghai, posing a challenge to airlines which had profited from mainland’s vast
size and slow roads and trains. By 2012, the country would have more than 13,000
km of high-speed railway, Xinhua said. “By then, 60 per cent of China’s domestic
air market will be affected by the high-speed railways,” Liu Chaoyong, general
manager of China Eastern Airlines (SEHK: 0670), was quoted as saying. China
Eastern last year agreed to sell 35 per cent of Joy Air, in which it held 40 per
cent, to state-owned Aviation Industry Corp of China.
Denmark's famed Little Mermaid statue
left her perch in the Copenhagen harbour on Thursday and started a journey to
the World Expo in Shanghai – the first trip abroad in her 96-year life. The
1.5-metre-tall landmark, which honours the memory of Danish fairy tale writer
Hans Christian Andersen, was lifted by a crane and lowered onto the back of a
truck at a ceremony in the Danish capital. The exact travel itinerary is being
kept secret for security reasons, but the statue is scheduled to be placed as
the centrepiece of the Danish pavilion about a week before the World Expo opens
on May 1. The temporary move is controversial in Denmark, where some consider it
disrespectful to ship a cultural treasure halfway across the globe as a public
relations exercise. Critics suggested the government should have sent a copy –
an idea dismissed by Christopher Bo Bramsen, Danish commissioner-general for
Expo this year. “Why send a copy when you can send the real thing?” he told
reporters. Bramsen joined Copenhagen Mayor Frank Jensen and officials from the
Danish government and the Chinese Embassy at the ceremony, which featured music
and dance performances by Danish and Chinese artists. Hundreds of people who had
gathered for the event watched as a large crane hoisted the statue about three
metres and slowly moved it over to the truck. The mermaid and the rock she rests
on had been cut loose from the boulders beneath them a day earlier. “I think
they should keep her there. She doesn’t represent Danish life in the 21st
century they should have sent something else,” said Sarah Ahmed, a 16-year-old
student in the crowd. Anne-Marie Henning, 92, said she would miss the mermaid.
“I have been coming here for years as I live in the neighbourhood. It will feel
strange without her,” Henning said. A video installation by Chinese artist Ai
Weiwei will replace the Little Mermaid until the statue returns in November. The
multimedia artwork will include a live broadcast showing the statue in Shanghai.
Created by Danish sculptor Edvard Eriksen, the fishtailed bronze figure is
Denmark’s most popular tourist attraction. It was unveiled on the Copenhagen
harbour front in August 1913 and has not been moved since, except to undergo
repairs after a series of attacks by vandals. Her international fame grew after
she was beheaded in 1964. No arrests were ever made. However, a Danish artist
claimed he cut off the head and threw it into a Copenhagen lake. It was never
found and a new one was cast from the original mold. Her right arm was cut off
and she was decapitated again in 1998. She’s been doused in paint on numerous
occasions and, in 2003, was blown off her stone base by vandals who used
explosives. The following year she was draped in a burqa, apparently by critics
of Turkey’s bid to join the European Union. In Andersen’s tale, the mermaid is a
sea king’s daughter who falls in love with a prince and must wait 300 years to
become human. It was turned into a Disney film in 1989.
Chinese mobile-network investment,
which rose to 371 billion yuan (HK$421.2 billion) in 2009, may drop below 300
billion yuan this year. Ericsson's Chinese boom may be running out of steam. The
world's largest maker of wireless phone networks boosted sales in the country
last year by 22 per cent - the biggest jump in at least seven years - to a
record high, as China Unicom (SEHK: 0762) (Hong Kong) and rivals invested in 3G
infrastructure. Now, those same companies are cutting back. Last week, China
Mobile (SEHK: 0941), the country's biggest phone company, said it will trim
capital spending, while China Telecom Corp (SEHK: 0728) said on Monday such
expenditure will be flat. Chinese mobile-network investment, which rose to 371
billion yuan (HK$421.2 billion) in 2009, may drop below 300 billion yuan this
year, according to Beijing-based consultants BDA China. "Since China was so
strong last year with Unicom it's fairly safe to assume this will be a slower
year," said Haakan Wranne, an analyst at Stockholm's Swedbank, who has a
"reduce" rating on Ericsson. "That goes for the market and for Ericsson. And a
bad year in China would have to be compensated with a good year elsewhere."
Ericsson will need new growth drivers even as government spending to stimulate
the economy and competition between carriers keeps investment flowing for some
years. Orders could come from India, which may award 3G licences this year, or
from the United States, where Ericsson added 2.7 billion Swedish kronor (HK$2.91
billion) in sales, or about 1 per cent of the total revenue of 206 billion
kronor in the last six weeks of 2009 from its acquisition of some Nortel
Networks assets.
Guangdong is seeking emergency help
from Hong Kong's power plants as the province's electricity supplies are being
hit by the continued drought in the southwest of the country. The electricity
supply in Guangdong comes from power plants in a number of provinces, with
plants in Guangxi and Yunnan dependent on water. Emergency wells are being
drilled and cloud-seeding operations carried out in southern provinces where the
worst drought in decades has left millions of people without water and caused
more than 1,000 schools to close. Xinhua News Agency earlier reported that the
China Southern Power Grid will cut 1.25 billion kilowatt-hours in electricity
supplied from Yunnan province, meaning less energy will be supplied to
Guangdong. Xinhua also cited information from the Development and Reform
Commission of Guangdong Province indicating that authorities there are talking
to Hong Kong about plans to buy electricity as a back-up. Guangdong used up
50.889 billion kilowatt-hours of electricity in the first two months of 2010, a
year-on-year jump of 20.17 percent, the agency reported. The power company has
about 20 million customers in the province. A spokesman for CLP Power Hong Kong
said it has supplied electricity to Guangdong since 1979 and is now in talks
with provincial authorities on adjusting the amount. "Given the severe drought
in the southwestern provinces, we shall do whatever we can to help Guangdong,
provided supply to local customers is not affected and our emissions performance
is not compromised," CLP said. The spokesman declined to say how much more
electricity Guangdong has asked for and the cost. CLP's local plants can produce
nearly 9,000 megawatts of power at any one time while peak demand locally last
year was just 6,500 megawatts, he said. The rest, which is back-up, can be
exported. A Water Supplies Department spokesman said the drought will not affect
levels of the Dongjiang, or East River, which supplies Hong Kong. Meanwhile, the
government approved a HK$1.4 million grant to Amity Foundation to undertake
drought relief projects in Guangxi and Yunnan. Amity executive director Anthony
Tong Kai-hong said: "We are using this money to help people in dire need by
first supplying people with water." In Guangxi, Amity will use the grant to
distribute drinking water to more than 11,000 people for 30 days and provide
2,000 plastic buckets. In Yunnan, it will supply 55 water storage containers and
drinking water to 5,000 people for 60 days. World Vision Hong Kong has raised
nearly HK$50,000 to help the drought- stricken. 
Some tea specialists display
various kinds of Chinese tea during the opening ceremony of the West Lake
International Tea Culture Expo held in Hangzhou, east China's Zhejiang Province,
March 26, 2010. The expo will last till April 23, 2010. 
People perform tea frying skills
during the opening ceremony of the West Lake International Tea Culture Expo held
in Hangzhou, east China's Zhejiang Province, March 26, 2010. The expo will last
till April 23, 2010. 
Dancers perform during the opening ceremony of the West Lake International Tea
Culture Expo held in Hangzhou, east China's Zhejiang Province, March 26, 2010.
The expo will last till April 23, 2010. 
Monks prepare bamboo baskets for tea
collecting on the outskirts of Hangzhou, east China's Zhejiang province March
25, 2010.
Graham Sheffield is unveiled as chief
executive of the West Kowloon Cultural District Authority by chairman Henry Tang
Ying-yen. The head of the largest performing-arts centre in Europe has been
chosen to guide the HK$21 billion West Kowloon Cultural District in its
formative years. Graham Sheffield, artistic director of the Barbican Centre in
London since 1995, promised to put Hong Kong "firmly on the map" of the world's
culture seekers. Speaking after his long-awaited appointment as chief executive
of the arts hub was announced yesterday, he said he hoped to make the district
the centre of an arts network stretching across greater China. More than 50
applications were received during an international search that lasted for
months. The job is believed to pay more than HK$3 million a year, but the figure
was not revealed yesterday. The appointment of the 58-year-old was generally
welcomed by the arts community, although some critics expressed concern about
his sensitivity to local cultural issues. Sheffield, who has also been creative
economies adviser to the British Council since July, will be on a three-year
contract with the West Kowloon Cultural District Authority. Asked why he would
leave London for Hong Kong, he said the opportunity to be involved in a project
of such scale did not come along very often. The arts hub, he said, would be
built with local pride while creating global importance. "It will put Hong Kong
firmly on the map of a must-see, must-experience destination for culture seekers
across the world," he said. Sheffield believed his experience with the Barbican
Centre was the main reason he was selected for the West Kowloon project as both
were multi-arts, and would have commercial income from aspects like catering and
retail. He said he was confident of being able to deal with politics and
bureaucracy in the highly politicised project, which has seen a senior appointee
resign a week after arriving. "You deal with politics in the arts, and it's
important to have politicians on your side. I've done a lot of it in my career.
I have my own tricks to bend the rules and get around them." Just before the
search for a chief executive began, Angus Cheng Siu-chuen resigned as executive
director on finding he was just one of many rather than second in command.
Critics hoped Sheffield would communicate directly with the public without going
through time-wasting consultation panels. "He should just go out and experience
the culture and lifestyle, learning about people's habits and lifestyles," Jim
Chim Sui-man, managing director and artistic director of PIP Cultural
Industries, said. Art critic Oscar Ho Hing-kay was concerned about Sheffield's
sensitivity to local culture and whether the authority's structure would provide
him with professional support. Fellow critic John Batten said being unable to
speak Cantonese was not an issue. "Chris Patten did it very well. He got his
messages across." Jude Kelly, artistic director of London's Southbank Centre,
where Sheffield previously worked, said she was thrilled. "He not only has
tremendous experience but also the curiosity and stamina necessary to lead this
incredible project." Barbican Centre managing director Sir Nicholas Kenyon said
the appointment was "a sign of the respect with which he and the Barbican are
held around the world". Sheffield said he had been actively involved in the
appointment of six executive directors for museum policy, performing arts
policy, project delivery, finance, human resources, as well as marketing,
communication and programming, which have yet to be announced. Sin Chung-kai,
who chairs the authority's remuneration committee, said the board might opt for
local candidates as executive directors to compensate for Sheffield's foreign
background. 
The five legislators who have
resigned distribute promotional material in Tsim Sha Tsui, featuring Premier Wen
Jiabao. De facto referendum will have no legal effect, justice minister says -
Secretary for Justice Wong Yan-lung, in his first public comments on the
by-elections seen by pan-democrats as a de facto referendum on political reform,
says political development must be initiated according to the Basic Law. The
so-called referendum would have no legal effect, he said. Wong, who had been
criticised by both pro-establishment and pan-democratic camps for not taking a
stand, said he had not spoken out before because he felt other ministers had
already clearly stated the government's legal position and that he would merely
repeat it. "All along we have emphasised that constitutional development in Hong
Kong must be done in compliance with the Basic Law as well as with the decision
by the Standing Committee of the National People's Congress [in 2007 over what
can be reformed in 2012] ... if anyone is to introduce a "referendum" to affect
the development of constitutional reform, this will not be in line with the
NPCSC decision and the Basic Law," Wong said. Two Civic Party lawmakers and
three lawmakers from the League of Social Democrats resigned from the
Legislative Council in January, sparking by-elections to be held on May 16 for
each of the five geographical constituencies. By seeking election on a platform
of demanding genuine universal suffrage through the abolition of functional
constituencies, the two parties hope to use the by-elections as a de facto
referendum as the government prepares a political reform proposal for the 2012
elections. However, the central authorities called this step a "blatant
challenge" to their authority. Pro-establishment political groups plan to
boycott the by-elections and have accused the movement of being akin to
mobilising an uprising and calling for the independence of Hong Kong. Yesterday,
at a Legco finance committee meeting to discuss the Department of Justice's
annual spending, lawmaker Wong Kwok-hing noted that the HK$150 million needed
for the by-elections was more than a tenth of the department's annual budget. He
said that if the exercise was indeed "unconstitutional, unlawful", it would be
absurd for the government to help organise the by-elections and send election
material to registered voters. "What has the secretary for justice done about
it?" the unionist asked. He suggested that the government could affix a warning
onto election materials, like the health warnings on cigarette packets. However,
the minister stressed that the government had to act according to the law in
organising by-elections, and that he did not see how the laws requiring
by-elections to be held upon the resignation of lawmakers could be violating the
Basic Law. Civic Party leader Audrey Eu Yuet-mee yesterday released a statement
expressing regret that the minister did not clarify the difference between an
act not having legal effect, and acting unlawfully. She furthered criticised
Wong for failing to take the opportunity to urge people to exercise their
constitutional right to vote. "If the government took up the suggestion of a
certain lawmaker [over affixing warnings], it would be doing the exact opposite
of encouraging people to exercise their civic duty," she said. In an earlier
meeting with the media, former chief secretary Anson Chan Fang On-sang said: "I
believe the central government respects the wishes of the Hong Kong people" and
would not ignore the result of the by-elections. She urged people to vote to
send a clear message to Beijing.
Tourism board turns a corner - The Hong
Kong Tourism Board's image of extravagance is fading, says newly reappointed
chairman James Tien Pei-chun, who is planning to turn some popular projects into
annual events. "My friends might be showing their support, but they said to me:
'James, you are doing quite well these days [and] the Tourism Board has improved
a lot'," Tien said. He took up the chairmanship in April 2007 when the Tourism
Board was under fire for its lavish spending in areas ranging from travel to
salaries and benefits. That criticism came in a Director of Audit report. The
Legislative Council's Public Accounts Committee was also critical of the board
and offered some recommendations. "That was unforgettable," Tien said, saying
that it was difficult for a new chairman to identify all the issues within an
organisation. But the two reports helped him a lot. "The progress was quite
challenging. And perhaps because we have taken [in] a lot of the suggestions,
the public, legislators and the government can see the changes in us ... the
public no longer has the impression that we are extravagant or a big spender. As
the chairman, I am also very happy about it." Tien, who will start his second
term next month, described his tenure of nearly three years as "very tough" and
filled with a lot of ups and downs. He had to handle the damage to Hong Kong's
reputation as a tourism destination after a CCTV report in 2007 alleged that a
diamond pendant and a watch sold to mainland tourists were fake. He also needed
to deal with the plunge in visitor arrivals after the global financial crisis in
2008 and the effect of the swine flu pandemic in May last year. Asked how he had
felt facing such challenging times for Hong Kong tourism, Tien said: "I and the
whole team will try our best ... in good times, I work and hope things will get
better; when times are rough, I hope things will not get worse." Indeed, the
Tourism Board, with Tien at its helm, has seen Hong Kong setting records.
Arrivals surged from 25.3 million in 2006 to more than 29.5 million last year.
Looking forward, Tien said the board was planning to turn some successful
projects such as the wine and dine festival and the summer pop concert into
regular annual events. He said the summer pop concert, which made its debut last
year in a bid to woo tourists after the outbreak of swine flu, would be held at
the Hong Kong Coliseum in the last weekend of August. The board will organise a
dragon boat carnival in July, a month when there are fewer big festivals and
events to attract tourists. 
Afghan President Hamid Karzai
talks to President Hu Jintao before a signing ceremony at the Great Hall of the
People in Beijing on Wednesday. Facing criticism over corruption and electoral
fraud, Afghan President Hamid Karzai found a receptive audience in Beijing on
Wednesday, overseeing the signing of economic pacts and reaffirming warm
traditional ties. The trip to Beijing comes as Karzai seeks to establish himself
as a regional political figure with stature and independence, partly in response
to new criticism of his leadership from the US, Britain and other foreign
partners. Such issues aren’t likely to be raised in his talks with Chinese
leaders. While China has no troops in Afghanistan – where Karzai relies on US
and Nato forces to prop up his weak government against Taliban insurgents – its
proximity and booming economy make it a valuable partner for the war-battered
country. In their meeting on Wednesday at the Great Hall of the People,
President Hu Jintao congratulated Karzai on his reelection in an August poll
seen by the United Nations as deeply flawed. “Your visit will definitely help
promote practical co-operation between China and Afghanistan, and take our
comprehensive and cooperative partnership to a new level,” Hu said in opening
remarks. After their talks, the presidents then presided over the signing of new
agreements covering economic cooperation, technical training and preferential
tariffs for some Afghan exports to China. Karzai’s visit comes as he looks to
burnish his international standing. Since he first took power after the Taliban
regime’s ouster in 2001, his government has been tainted by inefficiency and
persistent allegations of corruption that Western officials say have only
boosted support for the insurgency. Last year’s electoral fraud further hurt his
profile. The Afghan leader now appears eager to strike a more independent stance
on the foreign stage. Karzai has participated as an observer in summits of the
Shanghai Co-operation Organisation, a grouping of Central Asian nations
dominated by China and Russia that aims to challenge US dominance. He has also
cemented ties with India to balance the influence of neighbouring Pakistan, with
which Afghanistan has an acrimonious relationship. 
Pang Qing and Tong Jian skate
their way to a gold medal in the pairs competition at the World Figure Skating
Championships in Turin on Wednesday.
Graham Sheffield, a British-born arts
adviser, was named as the new chief executive of the West Kowloon Cultural
District Authority by Chief Secretary Henry Tang Ying-yen on Wednesday. Tang
told reporters at a press conference at the Central Government Offices that he
was confident Sheffield had the administrative ability and experience to manage
the West Kowloon project. “He has a remarkable track record in arts education
and audience building,” Tang said. “[He also] has the vision and passion to work
with the local arts community, as well as the Hong Kong public to build a truly
world-class cultural centre in West Kowloon that every Hong Kong citizens will
be proud of.” “We are happy we have the right person for the job,’’ added the
chief secretary, who also chairs the project. For the past 15 years, Sheffield
has been artistic director for the Barbican Centre in London. The centre is the
largest integrated performing arts centre in Europe. It hosts classical and
contemporary concerts, theatre performances, film screenings and art
exhibitions. Sheffield, who appeared with Tang at the press conference, said
Hong Kong was positioned to become “the next great world arts city” and that he
was confident he could make the project a success. “The Kowloon Cultural
District Authority will work with the community, with the local arts groups to
build local pride and engagement,” he said. The West Kowloon Cultural District
is an ambitious HK$21 billion project to build an world-class arts hub in Hong
Kong. It aims to bring world-class shows to the city and promote local arts and
culture. However, critics of the project argue it will be too costly. Graham
Sheffield beat out 50 overseas and local applicants for the position. He will
take up the job in August for an initial term of three years.
A developer wants to build a spa
resort, flats and a marina at Shek Pai Wan Beach on Lamma Island. A residential
and marina project planned for southeast Lamma Island has failed to win the
blessing of a government office that was set up last year to smooth the way for
worthwhile private development. The Development Opportunities Office regards the
residential part of the project as too dense, a government official said
yesterday. The committee has taken the stance even though The Baroque on Lamma
Limited, as the project is called, has the support of the Tourism Commission and
the Home Affairs Bureau, which oversees sports policy. "Our advisers are
concerned about the project's environmental impact on Lamma, which is an
ecologically sensitive place," the official said. The office was set up under
the Development Bureau to provide one-stop consultation and co-ordination
services to private and community projects that carry economic and social
benefits. Small-scale developer Bobby Li Kin-keung submitted the plan for Shek
Pai Wan Beach last year. It includes a six-star hotel and a marina, which it
proposes to use for international sailing races and as a training ground for
local elite athletes. It was discussed by the Land and Development Advisory
Committee that advises the office last week. "The company has been lowering the
building density but it has not reached an acceptable level. Members were also
concerned whether they should support a project that is predominantly
residential," the official said. The site near the bays of Mo Tat Wan and Tung O
Wan, includes several indigenous villages and agricultural land. It is owned
partly by the company and partly by the government. "Members had reservations
about whether the government should conduct a land exchange to facilitate the
project," the official added. He said the company could revisit the office with
an amended plan or go directly to the Town Planning Board to get approval, as
the office was only a facilitator and did not replace any statutory procedures.
Paul Lam Yuk-tak, a director of The Baroque on Lamma, said yesterday he had not
received notification from the office. 
Wynn Macau on Wednesday reported net
profit of HK$1.16 billion for the six months ended December of last year, an
77.6 per cent jump from 2008. Wynn Macau just missed analysts’ expectations with
its 77.6 per cent rise second-half earnings despite more gamblers placing their
best in the Macau operations of Las Vegas casino operator Wynn Resorts. Analysts
expect Wynn Macau’s market share to grow this year, as it is the only casino
operator set to expand its presence in Macau. Wynn Macau, run by casino magnate
Steve Wynn, operates one casino-resort in Macau and is slated to open an
extension of the resort in April in the enclave. Gambling revenues in Macau have
soared at a double-digit pace in the past six months of last year, boosted by
the country’s soaring economy and signalling sustained growth in the world’s
largest and fastest-growing gambling market.The casino operator, whose rivals
include Sands China and Melco Crown Entertainment, reported net profit of
HK$1.16 billion for the six months ended December, an 77.6 per cent jump from
2008, falling short of the HK$1.21 billion consensus forecast compiled by
Thomson Reuters I/B/E/S. Its profit was at HK$653.03 million for second half of
2008. The results were widely expected as Wynn Macau had said in February it
expected its profit for last year to hit HK$2.07 billion, exceeding its original
forecast of HK$1.47 billion but largely in line with analysts’ consensus
expectations. In February, Wynn Macau reported a near doubling of fourth-quarter
earnings before interest, taxes, depreciation and amortisation (EBITDA) to
US$142 million. Sands China’s net profit for the October-December period also
missed expectations. 
Managing Director of Li & Fung Ltd.
William Fung Kwok-lun, seen here in a file photo, said on Wednesday that
company’s margins should 'keep going up' and its core operating margins could
exceed 4 per cent in coming years. Consumer goods exporter Li & Fung (SEHK:
0494) on Wednesday posted a 67 per cent rise in profit for the second half of
last year, lagging analyst forecasts, despite aggressively slashing expenses in
a group-wide cost saving program. But the company said its core operating
margins could exceed 4 per cent in coming years. The company’s margins should
“keep going up”, group managing director William Fung told a news conference in
Hong Kong on Wednesday. Li & Fung’s 2009 turnover was held back by “soft
consumer markets world wide, tight inventory control by many of our customers as
well as a number of customer insolvencies”, the company said in a statement,
adding that cost control and other measures contributed to the rise in profits.
Analysts generally expect to see a major transformation this year for Li & Fung,
which manages supply chains for retailers including Wal-Mart Stores and Target,
as its US customers start to refresh their inventories amid an improving retail
environment. The Hong Kong company is also the global sourcing agent for Liz
Claiborne. Analysts also said the company should also benefit from new
outsourcing deals, including a recent one with Wal-Mart, and from contributions
made by newly acquired assets, such as UK-based private-label supplier Visage
Group. In its statement, Li & Fung reaffirmed its revenue target. “While the
turnover target of US$20 billion and core operating profit target of US$1
billion seem challenging at present, we remain committed to them,” the company
said. Despite the improvements, some analysts worried that the company may not
be able to meet ambitious growth targets set in its 3-year plan. Li & Fung,
which in February said it would buy Visage Group for £173 million (HK$1 billion)
to expand its European presence, aims to post annual turnover of US$20 billion
and a core operating profit of US$1 billion under its current three-year plan
for 2008-2010. In January it announced a deal with Wal-Mart to sell the US
retail giant goods valued at US$2 billion in the first year. Li & Fung posted a
net profit of HK$1.97 billion for July-December period, against HK$1.18 billion
for the same period in 2008. The net lagged a mean forecast of HK$2.31 billion
for the second half year of last year polled by Thomson Reuters I/B/E/S. Shares
of Li & Fung rose 55 per cent in the second half of last year, outperforming a
19 per cent rise in the broader market. The stocks were down 0.71 per cent on
Wednesday. At market close Tuesday, shares were up 29.8 per cent so far this
year, outpacing the broader market’s 3.6 per cent decline.
Little Sheep Group (0968) - the mainland hot pot chain - said net profit last
year jumped 20.7 percent to 155.36 million yuan (HK$176.64 million) as more
people ate at its restaurants. A final dividend of 6.9 HK cents per share was
recommended. "We plan to open 45 self-owned restaurants this year, including one
or two in Hong Kong if we can lease appropriate places," executive director and
chief executive Lu Wenbing said. The firm now runs 157 self-owned outlets in the
mainland and four in Hong Kong. It also operates 293 franchised restaurants,
mainly in third-tier mainland cities. Lu said Little Sheep is aiming for 20
percent revenue growth this year. He said the same-store business in the first
two months of this year rose by 2.5 percent while the number of customers jumped
by 7 percent. The company's capital expenditure is expected to be 213 million
yuan, up 29 percent from 2008. "Beside the investment in new stores, we also
plan to increase production of our condiments by 75 percent to 14,000 tonnes,"
Lu said. Chief financial officer Wang Daizong said inflation this year should be
moderate and Little Sheep will control costs to cope with higher prices. "We
will be able to absorb price hikes, but we can feel the pressure on our gross
profit margin," Wang said. 
Building stability in Afghanistan through investment and support from its
neighbours will be key themes in talks beginning on Wednesday in Beijing between
Afghan President Hamid Karzai and Chinese leaders. Highlighting the importance
of strategic dialogue in Asia’s most volatile region, Karzai’s national security
adviser met with China’s foreign minister earlier this week ahead of the
president’s arrival on Tuesday, China’s Foreign Ministry said. The content of
Rangin Dadfar Spanta’s three days of discussions wasn’t known, although Foreign
Ministry spokesman Qin Gang said he met with Foreign Minister Yang Jiechi in
preparation for Karzai’s arrival on Tuesday. Karzai was due to meet on Wednesday
with President Hu Jintao on issues including regional security and Chinese
investment in Afghan mineral resources. The countries share a narrow border high
in the remote Pamir Mountains and China has pledged continuing aid to the Afghan
reconstruction process. China, which professes to have a noninterventionist
foreign policy, has limited its involvement in Afghanistan to diplomatic and
humanitarian support, some trade, and investment in the minerals sector.
However, Afghanistan’s woes incorporate issues that Beijing considers direct
threats to its stability: Islamist extremism spreading to its Muslim region of
Xinjiang; the long-term presence of US and Nato forces on its borders;
cross-border drug smuggling; and the deepening involvement of India, with whom
China shares a disputed border and a sharpening rivalry. Beijing alleges
Xinjiang separatists have received training and shelter in Afghanistan and has
demanded the return of Chinese nationals captured there. Despite that, Beijing
is not known to have openly interposed itself between the United States,
Afghanistan, and longtime ally Pakistan – some of whose officials are believed
to covertly support some elements of the Taliban insurgency. A Chinese company
pledged US$3 billion to tap one of the world’s largest unexploited copper
reserves at Aynak, and is favoured to win the rights to iron deposits at Hajigak
when bids are considered this year. Those projects have dragged on, however,
amid continuing Taliban attacks. US officials familiar with intelligence reports
have also claimed that Afghanistan’s then-minister of mines, Muhammad Ibrahim
Adel, allegedly accepted a US$20 million bribe to award the Aynak contract in
late 2007 to China Metallurgical Group Corporation. Both deposits offer a
potential financial boon for an impoverished country mired in war, but require
the construction of roads, railways, and processing plants in areas still roiled
by the insurgency. Karzai’s delegation includes the foreign and defence
ministers along with 20 leading business people. Talks will also be held with
Chinese business leaders and three bilateral economic cooperation agreements
will be signed, according to Afghanistan’s presidential palace. 
Chanel designs for
Shanghai Expo
China's Pang Qing and Tong Jian
perform their pairs short programme at the World Figure Skating Championships in
Turin, Italy, on Tuesday. Olympic silver medalists Pang Qing and Tong Jian
skated a flawless and elegant short programme to take the lead in the pairs
competition at the world figure skating championships on Tuesday. Pang and Tong
earned a season-best 75.28 points for their short programme, the same The Pearl
Fishers that they skated to in Vancouver. The 2006 world champions are two
points ahead of Russia’s Yuko Kavaguti and Alexander Smirnov.
Google may be playing a dangerous game with its "compromise" move to redirect
mainland netizens to its Hong Kong website, experts warned, as many questions
remain unanswered. The US internet giant said yesterday it will no longer filter
search results on China-based Google.cn and is redirecting users to an
uncensored site here, effectively closing down the mainland site. However,
access to websites covering highly sensitive topics such as Tibet remains
blocked in the mainland. Google chief legal officer David Drummond said on the
firm's blog that Beijing "has been crystal clear throughout our discussions that
self-censorship is a non-negotiable legal requirement." Google's move has
angered the central government with an official in Beijing saying it is "totally
wrong." Google co-founder Sergey Brin told The New York Times that shifting the
service to Hong Kong was not given a clear-cut stamp of approval by Beijing but
"there was a sense that Hong Kong was the right step." He said: "There's a lot
of lack of clarity. Our hope is that the newly begun Hong Kong service will
continue to be available in mainland China." However, Liu Ningrong, an associate
professor of marketing communication and media management at the University of
Hong Kong's School of Professional and Continuing Education, was dismissive of
the US giant's move. "Google just made an empty show of strength but without any
actual effect." He said it might only be "a matter of days" before Google quits
its China market. "The Chinese government will never allow Google to avoid
censorship. Sensitive links will surely be blocked by China's firewall." Sandy
Shen, a mainland-based research director of information technology advisory firm
Gartner, said: "This is a compromise by Google to keep its China business while
not eating its words after the earlier announcement about considering stopping
censorship." But in the long term, this will hurt its business, Shen said.
"Local partners and users are already disappointed at its move and some
resellers reported a 30 percent drop in revenues." Much uncertainty remains
about the firm's operations in the massive mainland market, which has an
estimated 350 million internet users. While the search engine was shifted to
Hong Kong, Google.cn's map service and a free, advertising-supported music
portal remain in China. Research and sales divisions also remain. Its Gmail
e-mail service was still accessible from within the mainland, as was its news
page, though attempts to call up specific articles on China were blocked.
"Google is playing a very dangerous game," Rob Enderle, president of California
business consultant Enderle Group told Bloomberg. "They could end up doing more
damage than good." Visitors to Google.cn are being redirected to its
Chinese-language service based here, google.com.hk. The Hong Kong page heralded
the shift with the announcement: "Welcome to Google Search in China's new home."
The site also began displaying search results in simplified Chinese. The SAR
government said "there are no restrictions on access to websites, including Hong
Kong-based websites, from China." An unnamed official from the State Council
Information Office Network Bureau said: "Google has violated its written promise
it made when entering the Chinese market by stopping filtering its searching
service. "This is totally wrong. China is uncompromisingly opposed to the
politicization of commercial issues, and express our discontent and indignation
to Google for its unreasonable accusations and conduct." Local information
technology sector lawmaker Samson Tam Wai-ho said: "I hope eventually in the
future, China can align with international practice [where it concerns] the
internet." In Beijing, a few passersby laid flowers or chocolates on a large
Google sign outside the firm's office. Many mainland netizens, however, said
they were ashamed of Google. "Listen Google! It is not the 1890s, the central
government is no longer the Manchu government. If you want to get your share in
China, you'd better follow China's law," one wrote. 
Ecology lifeline of Hainan: Luo Baoming,
governor of Hainan, says the island will become a top tourism center. No place
in China has hogged more of the limelight than Hainan since the dawn of the
year, when the central government unveiled a national strategy of developing the
southernmost province into a world-class tourism destination in a decade. So
much so that Luo Baoming, governor of China's only tropical island province, has
found his days brimming with meetings to deal with "hot issues" arising from
Hainan's new momentum and the visits of foreign dignitaries, business gurus and
journalists. The core message he delivers to visitors is that ecological
protection is the lifeline for expansion of the island's tourism, and Hainan is
way off from the goal of becoming "a top international tourist destination", Luo
told China Daily. Thousands of holiday-makers swarmed to Hainan, especially the
resort town of Sanya, for the week-long Spring Festival last month. While taken
in by the clean beaches and pollution-free air, some ended up complaining about
poor service and unreasonably high hotel rates. "I have been following the many
comments and criticisms about Hainan," Luo said. "We've stepped up supervision
on the exorbitantly high hotel rates. The Spring Festival travel should never
become 'the first and also the last deal' of the year, and we cannot count on
revenues from the week-long holiday to sustain our business operations for the
whole year. "While we are far, far away from meeting 'international' standards,
visitors are measuring us by, and expecting, international standards. In fact,
they are judging the present situation (service and infrastructure) by the
standards that we're striving to meet in a decade or two." Burkhard Eiswaldt,
general manger of International Culture and Art Co Berlin-Hainan, said: "If
Hainan now writes the headline 'International Tourism Island' on its door, it
also has to face the fact that other countries, tourists and business people
will expect big things from Hainan - words are not enough." Luo said the island
will fix the woes in the tourism market by borrowing experience and expertise
from regions where tourism is more entrenched. He also said Hainan will draw in
more high-caliber talents, and intensify training to upgrade service levels.
Tourism in Hainan, already blessed with abundant natural resources, will be
spiced up with lottery and gaming options, duty-free shopping and more visa-free
procedures, according to guidelines the State Council, or China's Cabinet,
issued on Jan 4. Above all, the guidelines stipulate that services, predominated
by tourism, should contribute at least 60 percent to Hainan's wealth by 2020, a
sign that the country is seeking to optimize its economic structure and shift to
a development mode that spurs and caters to domestic demand and a "green
economy". The central government also expects the island to set an example in
ecological protection for the rest of the country. Luo said that for Hainan's
dreams to come true, preserving its ecology is a paramount precondition.
"Ecology is the lifeline of Hainan, all our advantages are built on Hainan's
uniquely beautiful ecology and environment," he said. "The success of Hainan's
endeavors largely hinges on how it preserves the ecology." With nearly 60
percent of its 34,000 sq km - roughly 1/350 of China's total land area - covered
by forest, Hainan boasts the country's best environment, atmosphere and water
quality in lakes and along the coastline, Luo said. But as an island, its
ecological system is fragile and vulnerable to destruction from reckless
development, he said. "Hainan belongs to its inhabitants, to people from other
parts of China, and to people of the whole world, so every resident, traveler
and investor alike should help preserve the ecology and environment in the
island," the governor said. To protect Hainan's coastline of more than 1,500 km
that contains numerous bays and natural harbors, the province planted strips of
trees on 10,500 hectares between 2007 and 2009. This has helped fortify the
protective coastal forests, according to Luo. He said the province has focused
on clean solutions by developing solar power, windmills, bio-fuels and nuclear
plants. As a result, clean energy constitutes one-third of its primary energy
mix, among the highest in China. To fulfill its commitment to saving energy and
reducing greenhouse gas emissions, Hainan will accelerate development of
renewable energy resources so that the use of clean energy will steadily
increase. It will also popularize "clean" coal solutions to reduce pollution, he
said. "We will have a 'green pass' to facilitate investment projects with
low-carbon technologies," he said. "We also welcome partners to join us in
developing ocean industries." To illustrate how big the "green" market in Hainan
is, Eiswaldt, a German executive who came to the island 20 years ago, said:
"There is virtually not even one example of energy-efficient buildings on Hainan,
which also will be a big market in the future. Also the recycling industry
offers big profits, but it has not been developed." Luo said the local
government will lift a ban on commercial land leasing and real estate
development later this month, when a detailed program on how to turn Hainan into
an international tourist resort is approved by the country's top planner. The
ban was put in place on Jan 15, after the announcement of the international
tourism destination concept pushed property prices skywards. "But even during
this period of 'land freeze', we have not stopped development of affordable
housing," Luo said. "It is a top priority for the government to ensure that the
8.6 million inhabitants of the island have adequate housing." Zhai Shengting,
69, who often dances at the Wanluyuan Park in downtown Haikou, capital of Hainan,
seemed to have already realized his dream. A retired businessman from Datong of
North China's Shanxi province, Zhai bought an apartment in Haikou in 2005, and
since then has spent six months in Hainan each year. "All I want now is health
and pleasure, both of which I've found in Hainan," he said. 
Hostesses for 2010 Shanghai World Expo Shandong pavilion is trained in Jinan,
capital of east China's Shandong province, March 23, 2010.
A fireman salutes the hearst of senior
fireman Yeung Chun-kit as it passes near the Lai Cheong Factory Building on 479
Castle Peak Road in Cheung Sha Wan where he died fighting a No 4 fire on March
8. Veteran fireman Yeung Chun-kit - who died two weeks ago while battling a No 4
fire in the Lai Cheong Factory Building in Cheung Sha Wan - was buried on
Tuesday with full honors. Yeung, 47, died after being trapped under rubble
inside the building on March 8. The funeral service began at Hung Hom’s
Universal Funeral Parlour on Tuesday at 9.30am. Yeung’s colleagues draped a Hong
Kong-SAR flag and placed his helmet on top of his coffin. It was then escorted
to Gallant Garden – a graveyard for public servants who have died in the line of
duty. A pipe band played a final lament as Yeung was laid to rest at noon.
Hundreds of mourners attended the service, including Yeung’s wife, his
20-year-old daughter, Secretary for Security Ambrose Lee Siu-kwong, Civil
Service Secretary Denise Yu Chung-yee, Director of Fire Services Gregory Lo
Chun-hung and various district leaders. Before arriving at Gallant Gardens, the
funeral procession stopped at the scene of the fire and passed the Lai Chi Kok
Fire Station, where Yeung had been based. Fireman saluted his coffin as it
passed by. Hundreds of police officers, firemen and staff from the Lai Cheong
Factory Building and members of the public turned out to honor Yeung. Yeung
Chun-kit had been a senior fireman attached to Lai Chi Kok Fire Station. He had
26 years experience. He was also a member the Hong Kong Fire Services Department
Staff General Association. Yeung died after he lost contact with colleagues for
85 minutes during the fire. A former colleague, who preferred not to be named,
said Yeung had always been “righteous and brave”. The fire started about 8.19am
on the fifth floor of the factory. The blaze was graded by the Fire Services
Department as a No 3 alarm, according to its scale of severity, at 9.50am. It
was then upgraded to No 4 around 11am. Three other firemen were also injured.
Colleagues found Yeung’s legs trapped under rubble. They pulled him free, rushed
him to hospital, but he was later declared dead. The cause of the fire is still
being investigated a special team led by the Fire Services Department.
Mainland tourists are seen visiting
The Venetian Macao Casino in Macau in this file photo. On Tuesday, sources said
gambling revenue in Macau reached close to HK$13 billion for the first three
weeks of March, on track for a monthly record. Gambling revenue in Macau reached
close to HK$13 billion for the first three weeks of March, on track for a
monthly record, underscoring sustained growth in the world’s largest and
fastest-growing gambling market. “According to the average, it’s near HK$13
billion,” a source with direct knowledge of the situation said on Tuesday. “In
February, it was around this amount.” Stanley Ho’s casino flagship SJM Holdings
retained the biggest share of the market, at around 30 per cent, while Sands
China, the Macau unit of Las Vegas Sands, was second with around 20 per cent,
the source said. Macau casino revenue last hit a record in January, when revenue
rose 63 per cent from a year earlier to 14 billion patacas (HK$13.35 billion).
Pamela Pak Wan-kam collects a Legco by-election nomination form from the
Electoral Office in Wan Chai on Tuesday. Her placard condemns former legislator
Wong Yuk-man's performance. Hong Kong socialite Pamela Pak Wan-kam on Tuesday
declared her interest in standing in the May by-elections as she collected an
application form from the Registration and Electoral Office. Pak is well-known
in Hong Kong for offering relationship advice on a late-night radio show. She is
also the wife of tourism functional constituency member Paul Tse Wai-chun. The
radio agony aunt said she would stand against “Mad Dog” Raymond Wong Yuk-man.
Wong was the former pan-democratic lawmaker for Kowloon West. He is one of five
lawmakers who resigned in protest from the Legislative Council to participate in
the by-elections. Pak said she was upset by some of Wong’s behaviour – such as
when he threw bananas inside the Legco chamber. She urged Wong to register his
candidacy for the by-elections within 48 hours. Pak is currently being sued by
Wong for libel after she called him “the most corrupt politician ever”. She said
the lawsuit would not affect her running in the by-elections, local media
reported. Colourful Hong Kong personality Roger Chan Yuet-tung - known as “Bus
Uncle” - is also standing. A group of university students, known as “Tertiary
2012”, have also declared an interest. The by-elections will be held on Sunday,
May 16. They were prompted by the resignations of five pan-democrat lawmakers.
They view them as a “de facto referendum” on the lack of progress toward full
democracy in Hong Kong. 
Boost to film business seen in 3D views - The 14th Filmart exhibition opened
yesterday with a strong focus on the development of 3D in Hong Kong. The trend
was clear as the Film Development Council rolled out 3D initiatives and set up a
booth to attract investors from overseas. But acclaimed director Alex Law Kai-yui
(Echoes of the Rainbow) said he will wait for the technology to become more
refined before using it. It's because he "hates to wear those stupid glasses,"
he said with a laugh at a Filmart presentation. The massive success of the
blockbuster American film Avatar drew global attention to 3D technology. Riding
on that, the council's focus on 3D is designed "for the industry to understand
more about this trend" and to promote Hong Kong as a 3D movie production center
in Asia, a spokesman said. The chairman of the Association of Motion Picture
Post Production Professionals, Percy Fung Tze-cheung, said he was glad the
government is putting resources into this area but hopes it will try to work
closely with the industry. "The industry has to get involved in the 3D campaign
for it to become a two- way street, and so the attitude of the government is
more important than simply providing money," Fung said. "I hope it will
communicate globally to introduce Hong Kong better to all the mainstream markets
and let the world see we can do 3D, because we have experienced personnel and a
longer track record in film production compared to other countries in Asia." Law
said he was the first director in Hong Kong to add computer-generated effects
and use a computer to edit his film The Soong Sisters. That was 15 years ago.
"All the other editors were laughing at us back then, but we learned how to
manage the new technology," he said. "So I do believe in new technology, but 3D
is still at a very initial stage, and I won't use it until it's more developed."
But "new technology is good only if you can use it without distracting the
audience from the storyline." Filmart - the Hong Kong International Film and TV
Market forum - is at the Convention and Exhibition Centre in Wan Chai until
Thursday.
Chui Tien-you,
Kit Hung and Fukazawa Hiroshi, the producer of Written in Red, prepare to meet
potential investors. A hard sell from script to screen - Up-and-coming
filmmakers have to work harder to win over investors - Investors wary of the
rising costs of filmmaking are less willing to back first-time directors. And
while some Hong Kong filmmakers are prepared to adapt their movies to suit
targeted markets, often at the request of investors, others baulk at what they
see as a compromise and choose to give up the chance of a wider audience. Young
and first-time directors spoke of the problems facing them at a trade event
yesterday that matches film projects with financiers from around the world. They
urged the government to set aside part of its film funding to support new
talent, saying that such a move would ensure new directors are not unfairly
pitted against their more established colleagues in their application for funds.
Koan Hui is helming one of the 25 projects being pitched at this year's Hong
Kong-Asia Film Financing Forum (HAF), a three-day event at the annual
Entertainment Expo, which opened yesterday at the Hong Kong Convention and
Exhibition Centre. Hui has years of experience behind the camera, but still
finds it difficult to convince investors to back his directorial debut, the 3D
psychological thriller Written in Red. High production costs have made investors
cautious, he says. "They are getting more calculative," says Hui, 38, a former
assistant director in many of Tsui Hark's classics. "They need to see a track
record, such as whether similar films were successful." In the past investors
were more involved in the production and not as calculative, he said. Funding
opportunities also became harder to come by in the bad economy, especially for
mid-budget films of between HK$10 million and HK$30 million. Actor turned
director Chui Tien-you, 26, says Hong Kong's film investment culture is too
conservative. In comparison, funding for films in Malaysia comes from a variety
of sources, not only traditional film companies. "The country has telecoms and
internet companies investing in films. It even set up a department to take care
of that and give promising projects a chance," says Chui, who is raising funds
for his HK$4 million directorial debut Private Party of the Dead at the HAF.
"But in Hong Kong, investors are extremely calculative." While many companies
can afford to back film projects, they are afraid of making a bad choice that
can hurt their reputation, Chui says. Government funding is also an option. The
Film Development Council offers financial support for projects with a budget of
up to HK$12 million, with a cap on government contribution of 30 per cent. The
government has said it will raise the respective amounts to HK$15 million and 35
per cent. Filmmaker Kit Hung wants the government to set aside part of the Film
Development Fund for less experienced directors. The 33-year-old Hung, whose
debut feature Soundless Wind Chime was nominated for the Berlinale's Teddy
Award, is back in the fund-raising circuit for his second project. This time, he
is considering applying for government support for his HK$8 million film, Mama
Eva, a light-hearted musical about a woman's tussle with changing social values.
His new movie has great potential, Hung says, "but if you talk about commercial
value, how can I compete with someone established like Mabel Cheung
[Yuen-ting]?" Cheung was the producer of Crystal Bear-winning Echoes of the
Rainbow, which was partly funding by the government. "The government should
dedicate a section of the Fund to new directors. Many directors who have made
one or two films are still struggling to find financing for their projects," he
said. But some directors do not want funding from the government, which by
August last year has given out HK$35.89 million. Chui, for one, prefers to go it
alone. "It takes too long," he says. "I'm planning to start filming in September
and I want to get everything done as quickly as possible." In this tough
investment climate, filmmakers are likely to have to work harder to win over
potential financiers. This may mean acceding to a backer's demand to make
changes to the work. Some filmmakers acknowledge the pressures of the market and
say such compromises are acceptable. Hung says it is important to ensure
investors receive returns on their investment, as it is the only way to keep the
industry alive. If he manages to win over an investor from, say, Europe for his
project, he would be happy to change the film's story to boost its international
appeal, as along as those changes are sensible, he says. Hui makes a similar
point. A filmmaker has to understand his market. "At the end of the day,
filmmaking is a business and a cultural project," he says, as he prepares
himself for three days of meetings with about 20 potential investors to try to
secure at least a third of his film's US$2.5 million budget. He adds: "But of
course there is a bottom line [for the changes]." For Chui, the price is too
high. He says he will stick to his vision for his thriller, some parts of which
he expects won't get past mainland censors. Rather than cut out those parts, he
will give the potentially lucrative mainland market a miss. This means he has to
look for investment outside greater China. "We just have to work extra hard to
prepare for our presentation in English," he says. 
The passing of a sweeping bill overhauling the US medical system may put
pressure on Hong Kong insurers to improve the transparency and coverage of their
products, an expert said. The US House of Representatives passed the measure
yesterday (HK time), and it is expected to be signed into law today by President
Barack Obama. Hong Kong Polytechnic University Public Policy Research Institute
professor Peter Yuen Pok-man said the law may provide some references for the
SAR's long-awaited health-care reform proposal. "The legislative framework in
the United States has set out a number of key elements, such as barring insurers
from excluding those with pre-existing diseases and preventing them from
arbitrarily dropping policyholders," Yuen said. "These are some of the most
controversial areas faced in Hong Kong. If US insurers will be subject to these
rules, I don't see why Hong Kong insurers cannot follow suit." Other main
features of the bill will require insurers to spend at least 80 percent of
revenues on medical care and cap the premium for the elderly to three times the
amount younger people are charged. Yuen admitted there are differences with Hong
Kong's health-care system heavily supported by public money while the US system
is dominated by the private sector. So the United States has a stronger need for
health-care reform than the SAR, he said. Hong Kong Federation of Insurers chief
executive Peter Tam Chung-ho said the sector understands the community wants
insurance coverage to be as generous as possible, but the package also has to be
financially viable. "We are also eager to have a health-care financing reform in
Hong Kong. But this cannot be achieved without the effort of the community, the
sector and the government to come up with a consensus on the issue," Tam said.
"Even so, the passing of the bill in the United States has brought a good
message for Hong Kong considering that the bill has come across a lot of hurdles
over the years before it was passed." The Food and Health Bureau said the
government is working on a voluntary scheme that will enable more people to have
sustained access to affordable private health-care services. It is also aiming
to enhance transparency and consumer protection in the private health insurance
and health-care services market, through a standardized medical insurance cum
savings scheme. 
Stars shine at Asian Film Awards
(Director Zhang Yimou, Singer Lo Tayu, Actor Nicholas Tse, Director Lu Chuan and
Actress Wai Ying-hung)
Hong Kong actor Nicholas Tse
and actress Wai Ying-hung pose with their trophies after winning the Best
Supporting Actor and the Best Supporting Actress awards at the Asian Film Awards
in Hong Kong March 22, 2010.
Royal Dutch Shell and China National Petroleum Corp plan to jointly develop
natural gas deposits in Sichuan province under a 30-year production sharing
agreement, Shell said in a statement on Tuesday. The two companies have
submitted the PSA to the central government for approval. Shell said the tight
gas reservoirs were located in a 4,000 sq km area in the Jinqiu block in
Sichuan. Tight gas is contained in rock that must be fractured or broken before
it can flow easily to production wells. “The agreement will strengthen our
partnership with CNPC (SEHK: 0135) in developing cleaner energy to meet China’s
growing needs.” Malcolm Brinded, Shell’s executive director of upstream
international, said in the statement. CNPC is the parent of PetroChina (SEHK:
0857), which is jointly bidding with Shell to buy Australia’s Arrow Energy for
US$3.1 billion. Shell and PetroChina are already operating Changbei, a tight gas
field in the Ordos Basin in Shaanxi province, which began commercial production
in March 2007 and now supplies 3 billion cubic metres per year to Beijing and
eastern regions of mainland. In January, they began jointly assessing a shale
gas field in Sichuan in the Fushun block that covers about 4,000 sq km, the
statement said. Shell chief executive Peter Voser said last week that the
company had the resource potential to more than double production from its North
American tight gas fields to over 400,000 barrels of oil equivalent per day by
2020. “Economics are attractive in a $4 to $6 gas price range,” he told analysts
on a strategy update conference call, while discussing the North American
assets. “As we continue with the appraisal and development program in tight gas,
we are seeing sharp improvements in drilling costs and reduced drilling time.
This improves the economics of these developments, and I think there is more to
come here.” Shell’s statement about the agreement with CNPC did not give any
details of cost, investment or potential output from Jinqiu. 
Beijing will have more scope to allow
its currency to appreciate if the US government adopts a low-key stance on the
issue, a Harvard University economist who also advises the US government on
economic policy said. “If the US Congress and the Treasury don’t talk about the
Chinese manipulating their currency, if the US can be quiet for two months, then
I think the Chinese will be able to say that because of the great strength of
the Chinese economy … they are unilaterally raising the value of the RMB,” said
Martin Feldstein, a member of US President Barack Obama’s economic recovery
board. Feldstein was speaking at the Credit Suisse Asian Investment Conference
in Hong Kong on Tuesday. Tensions over mainland’s currency practices have grown
increasingly acrimonious after US lawmakers threatened to impose trade tariffs
unless Beijing allowed the yuan to rise. Mainland has kept the yuan on ice near
6.83 per US dollar since mid-2008 to help its exporters ride out the global
credit crunch by making their goods cheaper abroad. “With the politicisation of
the issue, it’s more difficult [for the Chinese government] to take economic
decisions separate from politics,” said Laura D’Andrea Tyson, another Obama
adviser speaking at the same event. Separately, Feldstein said the strength of
the US dollar against the euro was only temporary, adding that the euro remained
the only major alternative to the dollar. The euro hit a three-week low of
US$1.3464 on Monday amid concerns about Greece’s debt problems, but rebounded to
US$1.3554 on Tuesday. In addition to his role as an adviser to Obama, Feldstein
is also president emeritus of the National Bureau of Economic Research. 
China Telecom (0728) said net profit last year soared 1,531 percent to 14.42
billion yuan (HK$16.39 billion) from 884 million yuan in 2008 when the firm had
one-off losses of 21.1 billion yuan and upfront connection fees were amortized.
Chinese Vice President Xi
Jinping (L) meets with Chairman of Russia's State Duma Boris Gryzlov in Moscow,
Russia, March 23, 2010. Visiting Chinese Vice-President Xi Jinping said here
Tuesday that the Sino-Russian relations of strategic cooperation and partnership
has played an important role in facilitating smooth interaction between the two
countries as well as safeguarding international strategic balance and stability.
Xi made the statement during a meeting with Boris Gryzlov, speaker of Russia's
State Duma, the lower house of parliament. China and Russia celebrated the 60th
anniversary of bilateral diplomatic ties last year, Xi said, noting that
Sino-Russian ties had seen unprecedented development in the past six decades,
especially since the Sino-Russian relations of strategic cooperation and
partnership were established in 1996. Xi said the two countries were sincere and
trustworthy strategic partners and Sino-Russian relations had become the most
vigorous and richest relationship between two countries. China and Russia will
jointly commemorate the 65th anniversary of their victory in World War II this
year and the "Chinese Language Year" is to be launched in Russia, said the
vice-president. China is willing to take this opportunity to exert concerted
efforts with Russia to further enhance political mutual trust, broaden practical
cooperation, including interregional cooperation, and make new contributions to
world peace and stability, he said. Xi conveyed Chinese top legislator Wu
Bangguo's greetings to Gryzlov and spoke highly of the fruitful cooperation
between the national legislatures of China and Russia. The Chinese side is ready
to deepen exchanges with the State Duma and lay a solid legal foundation for
bilateral cooperation in various fields, Xi said. He called on both national
legislatures to have an in-depth discussion of new measures to strengthen
practical cooperation so as to improve the quality and level of cooperation.
Wu Yulu checks his Expo robots in his
workshop in Mawu county, Tongzhou district, Beijing, March 23, 2010.
Thirty-eight robots made by a Beijing countryman Wu Yulu will show up in the
2010 Shanghai World Expo this May. The inventor Wu, a farmer in Tongzhou
district with only a primary education background, fiddled with the machines for
two to three decades, making 38 robots with different functions including some
that can walk, climb and pull.
Hong Kong*:
Inflation edged up almost 2 per cent over the first two months of this year as
the Lunar New Year holiday pushed up consumer prices 2.8 per cent year-on-year
in February, the most in 13 months, according to government data. February's
year-on-year price increase was up from January's 1 per cent rise, while the
underlying inflation rate also jumped 1.6 per cent from almost zero in January,
Census and Statistics Department figures show. The underlying inflation rate is
compiled without the effects of various government one-off relief measures, like
the electricity charge subsidy. In January and February, the combined inflation
rate rose 1.9 per cent, or 0.8 per cent without the relief measures. Taking data
from these two months together gives a more accurate reading of consumer prices
as they are usually distorted by the different timing of the Lunar New Year
holiday from year to year. The Lunar New Year was in February this year, but in
January last year. Everything from package tour charges to the prices of poultry
and fresh vegetables is usually raised to capitalise on the influx of mainland
shoppers visiting Hong Kong during this popular holiday period. Last year,
prices rose 3.1 per cent in January and 0.8 per cent in February. Last month,
prices rose the most for utility charges rose the most, up 62.8 per cent, mainly
because some households had used up the government’s electricity charge subsidy.
Alcoholic drinks and tobacco jumped 19.2 per cent, food increased 4.7 per cent,
clothing and footwear were up 2.6 per cent, while transport climbed slightly by
1.5 per cent.
Visibility dropped as record
severe air pollution affected Hong Kong on Monday. Hong Kong's Air Pollution
Index (API) hit high and unhealthy levels on Monday - particularly in Mong Kok
and some parts of Hong Kong Island, a spokesman for the Environmental Protection
Department (EPD) said. Roadside air pollution in Central, Causeway Bay and Mong
Kok climbed to particularly high levels.At 5.41pm, the reading at a roadside
station in Causeway Bay soared from 410 to 495, while readings in Central and
Mong Kok, climbed to 376 and 458, respectively. The highest recorded on Monday
afternoon at the general monitoring station in Tsuen Wan was 434, while other
districts, such as in Eastern, Sha Tin, Tai Po and also recorded air pollution
levels of around 400.
Wishes come true thanks to help of
charity - Brothers Jacky Wong Hin-chi and Sam Wong Hin-kwong, who both suffer
from muscular dystrophy, have had their wishes come true. Through Make-A-Wish
Hong Kong, a foundation which grants wishes to severely ill children, Sam, 15,
has already been to England while Jacky, 12, will fulfill his wish for a trip to
Japan this summer. Muscular dystrophy is a hereditary condition that weakens the
muscles. "They may only live up to 20 years old as their organ functions weaken
upon reaching 13 or 14 years old, but I really don't want to think about it. The
most important thing is for them to have a happy childhood," their mother Ha Pui-lam
said. Yesterday, the Hong Kong Sanatorium & Hospital work group, Village
Volunteers, raised more than HK$300,000 in a walkathon for the foundation.
Make-A-Wish may then direct the funds to help children such as Jacky and Sam
fulfill their wishes. Last year, Sam got his wish and went to visit England to
see a bus factory - thanks to financial support from the foundation. According
to executive manager Heidi Wong Kam-man, the foundation provided the itinerary
for an eight-day trip and sponsored Sam as well as both parents. The family then
paid for Jacky to go along as well. "I didn't really think the wish would come
true so fast. Within three months of applying for Sam, our family got to visit
England," Ha said. "I was really so happy that our whole family could go
together for a holiday with the help of the foundation." Sam said he enjoyed his
dream trip tremendously. "I've always wanted to go to England to see the buses
there, and I was so happy when the foundation arranged for a special old bus to
bring all of us on a tour," he said. This summer, Jacky's wish for a trip to
Japan to see and ride on the famous bullet trains will come true. More than 200
Sanatorium & Hospital staff and families walked 11 kilometers yesterday.
Celebrity ambassador for Make-A-Wish Niki Chow Lai-ki was at the awards ceremony
to hand out prizes to those who clocked the fastest times. 
Tourists and residents wear masks
as walk past Tiananmen gate as spring sandstorms affect Beijing on Monday.
Authorities warned residents across a huge swathe of the China's north,
including the capital, to avoid going outside on Monday as a sandstorm blanketed
the area in fine yellow dust. The meteorological administration said a sandstorm
that swept down from the Gobi desert on Friday would continue to shroud parts of
northern China stretching from the far-western region of Xinjiang to Beijing.
“We advise friends in these areas to reduce their outdoor activities as much as
possible,” the administration said on its website. “When you go out, please wear
items to protect against the sand such as cotton cloths, masks and glasses to
avoid the sand harming your eyes and respiratory system.” Sandstorms are an
annual occurrence in arid northern China in the spring, when temperatures start
to rise, stirring up clouds of dust that can travel across China to South Korea
and Japan, and even as far as the United States. Scientists blame a combination
of deforestation, prolonged drought and resulting increase in desertification in
northern China. The sandstorm’s impact stretched all the way to Hong Kong, where
the government said it contributed to record air pollution on Monday. On
Saturday, South Korea warned residents of the capital Seoul as well as central
and western regions to stay indoors due to the storm, Yonhap news agency
reported. In Beijing on the same day, authorities issued a rare level-five
pollution warning, signalling hazardous conditions. The respiratory department
at Chaoyang Hospital, one of the city’s biggest, said it had seen more than 180
people come with health problems – 20 per cent more than on a usual day, state
media reported. The capital was still cloaked in a mustard-yellow haze on Monday
and residents complained of coughing and noses clogged with grit, though the
administration said the sandstorm was weakening. The storm comes as a severe
drought grips the country’s southwest, leaving an estimated 20 million people
short of drinking water. 
China's Yuan should be seen in global context, says IMF official - John Lipsky,
the International Monetary Fund’s first deputy managing director, said on Monday
that he also expected the Group of 20 economies to consider the issue of yuan
policy in the run-up to its summit in Seoul in November. Mainland’s
controversial currency policy is best considered in a broad, global context, and
while policy changes are ultimately made at the national level they are never
made in a vacuum, a senior IMF official said on Monday. Asked about yuan policy,
John Lipsky, the International Monetary Fund’s first deputy managing director,
said it was ”more appropriate” to see exchange rate policy as one element of
monetary, fiscal and structural policies. Lipsky said he also expected the Group
of 20 economies to consider the issue of yuan policy in the run-up to its summit
in Seoul in November, and was sure it would be “viewed in a broad, global
context, and that’s the right way to look at it”. The IMF has said the yuan,
which has been effectively pegged at about 6.83 per US dollar since mid-2008 to
help mainland’s exporters weather the global financial crisis, is undervalued.
Political pressure is growing in Washington to declare mainland a currency
manipulator, with some US senators threatening to push for duties on mainland
products if Beijing does not allow the yuan to rise. Mainland has rebuffed the
criticism, and Commerce Minister Chen Deming said on Sunday that Beijing would
retaliate if the United States declared mainland a currency manipulator and
imposed trade sanctions. He did not elaborate. In terms of broad economic
performance, Lipsky said the IMF expected growth in Asia to be “quite vibrant”.
The IMF was expecting growth in emerging Asia overall to be around 8.5 per cent
this year, he said. He said an obvious risk was a possible slackening of growth
in advanced countries, which would hit demand for exports from the region. “But
there we are optimistic that the advanced economies in general will recover,
albeit at a moderate pace, and as a result we expect to see external demand
continue to grow, of course also at a moderate pace,” he said. Earlier on
Sunday, Lipsky urged developed countries with big budget deficits to start now
to prepare public opinion for the belt-tightening that will be needed starting
next year. The scale of the adjustment required was so vast that it would have
to come through less-generous health and pension benefits, spending cuts and
increased tax revenues, he said. “Addressing this fiscal challenge is a key
near-term priority, as concerns about fiscal sustainability could undermine
confidence in the economic recovery,” Lipsky told the China Development Forum.
“Already in several countries with particularly high debt and deficits,
sovereign risk premia have risen sharply, imposing strains for the countries
affected and raising risks of possible broader spillovers,” he said. For most
advanced economies, maintaining fiscal stimulus in the current year remains
appropriate, but consolidation should begin next year if the global economic
recovery remains on track. First, policymakers should already be making it clear
to their citizens why a return to prudent policies is a necessary condition for
sustained economic health, Lipsky said. The IMF estimates that, by raising real
interest rates, maintaining public debt at its post-crisis levels could reduce
potential growth in advanced economies by as much as half a percentage point
annually. Second, fiscal institutions must be strengthened to withstand
adjustment fatigue. Options include reinforcing fiscal responsibility
legislation and improving tax collection. Third, entitlement reforms such as
increases in the retirement age would have favourable long-term fiscal effects
but do little near-term damage to aggregate demand, Lipsky said.
Many shrug shoulders at Google pull-out -
With speculation rife that Google will soon announce the closure of its
mainland-based internet portal, the reaction from some Chinese has been hurry up
and leave, or simply: so what? On Friday, the China Business News reported
Google may make an announcement as early as Monday on whether it will pull out
of China. Google has not formally unveiled any such plans. Two months since
Google said it would no longer agree to abide by Beijing’s censorship rules even
if that meant shutting down its Google.cn site, some mainland internet users and
state newspapers are baying for the company to pull out. The burst of angry
comments suggested that, in spite of the widespread popularity of Google amongst
educated Chinese, the government is steering state-run media and websites to
lump the company together with other recent disputes with Washington that have
stirred nationalist rancour in China. “Get the hell out,” wrote one user on the
website of the nationalist tabloid the newspaper (www.huanqiu.com), in remarks
echoed by other readers. “I’m going to buy firecrackers to celebrate!” wrote
another, in anticipation of the company confirming its departure from the online
search market. Joseph Cheng, a City University of Hong Kong politics professor,
said China’s ruling Communist Party was deploying nationalism to stifle debate
about censorship. “The criticism of cultural exports, or cultural imperialism,
is a kind of defence to justify the Chinese authorities’ censorship controls,”
said Cheng. “In dealing with the American government, the Chinese authorities
will try to emphasise that this is only a commercial dispute and has nothing to
do with Sino-American relations,” he added. The Global Times in an editorial
cited online surveys as showing 80 per cent of respondents said they could not
care less if Google withdrew from China, the world’s largest internet market
with an estimated 384 million users. The saga was a reminder of the country’s
need to develop its own technology and not rely on foreigners, the editorial
said. “This is a high-tech competition, and also a competition to uphold the
state’s sovereignty,” the editorial said. Some bloggers went a step further and
accused Google of being in cahoots with US intelligence. “It is understood that
Google is very tight with the CIA,” wrote “Xiaogui” on the popular portal
Sina.com.cn. “Take this opportunity to leave now, you spies.” Though Google has
remained mum on the progress of talks, the firm’s chief executive said earlier
this month that an outcome is expected “soon”. The Google case has spread beyond
censorship and hacking and has become a diplomatic knot in Sino-US relations,
already being challenged by spats over Taiwan, Tibet and the value of the
Chinese currency. The United States is studying whether it can legally challenge
Chinese Internet restrictions, a top US trade official said recently. Over the
weekend, a commentary by Xinhua news agency accused Google of pushing a
political agenda by “groundlessly accusing the Chinese government” of supporting
hacker attacks and by trying to export its own culture, values and ideas. 
Beijing will retaliate if the United
States declares China a currency manipulator and imposes trade sanctions,
Commerce Minister Chen Deming said yesterday, firing the latest salvo in a spat
over the value of the yuan. Chen again accused Washington of politicizing the
issue ahead of an April 15 deadline for the US Treasury to rule whether China is
unfairly holding down its exchange rate to gain a competitive edge in global
markets. "The currency is a sovereign issue and should not be an issue to be
discussed between two countries," Chen told the China Development Forum in
Beijing. "We think the renminbi is not undervalued," he added. Chen did not
specify how Beijing might respond. Pressure is growing in Washington to declare
China a currency manipulator, with some US senators threatening to slap duties
on Chinese products if Beijing does not allow the yuan to rise. The head of the
Asian Development Bank yesterday joined the chorus of calls for Beijing to
abandon the peg of 6.83 yuan to the dollar imposed in mid-2008 to help China's
exporters weather the global financial crisis. In the three years before that,
Beijing had let the yuan climb 21 percent against the dollar. "Greater
flexibility in the exchange rate of the yuan would be in the interests of the
Chinese economy," ADB President Haruhiko Kuroda said. Chen accused Washington of
overestimating the size of China's trade surplus with the United States, putting
more pressure on the relationship between the world's biggest and third-biggest
economies. "A country's currency appreciation is very limited in helping to
rebalance global trade," Chen said. "I personally expect that China could
possibly have a trade deficit in March." Chen called on all countries to oppose
any form of trade protectionism.
Sharp revaluation of yuan would be
"lose-lose" situation: Morgan Stanley Asia Chairman - The debate over China's
currency policy is heating up among economists with Morgan Stanley Asia Chairman
Stephen Roach saying that a sharp upward revaluation of the yuan would lead to a
disastrous outcome for the United States and it would end up as a "lose-lose
situation" for both Washington and Beijing. "I believe the currency adjustment
that is being suggested by the West is the wrong way to go," Roach said in
Beijing. If China were to adjust its currency sharply higher, the Chinese share
of the US multilateral trade deficits would shift to another country, a higher
cost producer, which would have the effect of imposing a tax on American workers
that the politicians are in theory trying to protect, according to Roach. "This
is a disastrous outcome for the United States and would certainly be a very bad
outcome for Chinese exporters as well," he said. Roach spoke as a storm is
brewing between Washington and Beijing over China's currency policy. The US
Congress is to hold a hearing this week during which American lawmakers are
expected to force the Obama administration to take tough action against China
for its "manipulation of currency". He said he was very worried about the
outcome of the mounting trade friction between the US and China that he believed
could lead to a series of escalating events between the two countries. "The
renminbi is the lightning rod in the post-crisis period. It is important for all
of us to address this brewing storm before the clouds become too dark and there
is actually lightning," he said. In a debate with Nobel-winning economist Paul
Krugman last week, Roach blasted Krugman's stance on tougher American action
toward China, calling his advice "very bad" and "completely wrong". "We should
take out the baseball bat on Paul Krugman. I mean I think that the advice is
completely wrong," Roach said. "We're lashing out at China rather than tending
to our own business", which should be raising US savings, he said. Krugman in a
recent column accused China of keeping the yuan's value artificially low to
benefit its exports and said the US may need to get more aggressive in its talks
with China by treating the exchange rate as a countervailing duty or other
export subsidy.
Huangguoshu Waterfall, also known as Yellow Fruit Waterfall, the largest
waterfall in China and all of Asia is seen in this picture taken in Anshun,
Guizhou province, on March 21, 2010. The waterfall is facing the worst water
scarcity in its history as the city is hit by a severe drought that has made
over 90 percent of the river and reservoir dry up. To balance the water use at
the scenic spot and to fight the drought, Huangguoshu reservoir stores the water
at night and releases it during the day.
The growing presence of mainlanders in
the shopping malls and university campuses of Hong Kong suggests they must find
the city highly attractive. But the latest figures from the Immigration
Department paint a different picture. Since the quality migrant admission scheme
was launched in 2006, more than 40 per cent of mainland participants have not
applied to extend their stay after an initial year living here. After graduation
in Hong Kong, mainland students also seem to leave in droves. More than half the
mainland graduates in an employment scheme launched by the government in 2008
did not apply to extend their stay after a year here. Former mainland
professionals who have worked in Hong Kong say the stressful work environment,
limited career prospects and bad treatment by Hong Kong employers prompt them to
head back home. Immigration and human resources consultants attribute the exodus
to a culture clash, a dismal economy amid the global downturn, local employers'
preference for local graduates and better prospects on the mainland. Among those
who have packed up and left is 28-year-old Qiu Chen. After graduating from
Chinese University with a master's degree in media studies in 2007, Qiu found
work at Wen Wei Po and then Asia Weekly, where she stayed until January. But the
vast and growing mainland media market saw her quit her HK$16,000-a-month
editing job at Asia Weekly to become design director at a Hangzhou business
magazine. "Several new magazines have recently launched in Hangzhou. At a time
when the media industry is shrinking around the world, I think China is the only
place where you can roll out new publications." The Hunan native said she loved
Hong Kong's vibrant and cosmopolitan lifestyle but better prospects on the
mainland won out. "The only thing I dislike about Hong Kong is the high living
costs," she said. "Other things like the legal system are much better than those
on the mainland but the magazine market is just too small compared with the
mainland's." Local employers' preference for local graduates also makes
job-seeking difficult for mainlanders. Baptist University sociology professor
Chan Kwok-bun, who surveyed 30 mainland professionals in Hong Kong two years
ago, agreed the local job market did not favour mainland graduates. Chan
interviewed 10 mainland graduates in the 2008 employment scheme, which does not
insist that applicants have a job in Hong Kong when they apply. But they must
have a job after 12 months here when they apply for extensions of stay.
Immigration Department figures show that less than half, or 1,369 of 2,758
participants in the scheme, applied for extensions of stay in 2009. Chan said
many local companies were reluctant to employ mainland graduates for
administrative reasons. "Companies must provide a lot of documents to
immigration officials to help with applications for extensions of stay. They
also have to explain the reasons for employing a mainlander in a particular post
instead of a local. Many bosses baulk at the extra administrative work and
hassles," he said.
Nicon Lam had less than HK$3 in his pocket when he returned to Hong Kong from a
failed business on the mainland in February last year. The following month he
was sleeping in parks. The 55-year-old Hong Kong businessman left the city 13
years ago for opportunities on the mainland. At his peak, Lam owned three
restaurants and was worth tens of millions of dollars. Yet all that had vanished
during the financial meltdown. A return home was his last option. Lam, however,
was not alone. A growing number of people have been forced to sleep on the
city's streets. A survey by the Society for Community Organisation between
October and December last year found that 37 homeless people, out of 116
interviewed, said they had been working on the mainland. Another four worked in
Macau. The society's Ng Wai-tung, who has been helping homeless people since
1999, said many Hongkongers lost their jobs on the mainland during the meltdown
and ended up homeless when they returned. "These people did not fall into the
safety net even though they are permanent Hong Kong residents," he said. Most of
them would find their applications for Comprehensive Social Security Assistance
rejected, Ng said, because applicants are required to have been in the city for
at least a year. Lam, who has now been granted the assistance on discretion,
said the welfare system was unfair. "I also paid tax for years before I left for
the mainland but the government is reluctant to help when I am in need." The
survey also found an alarming trend of "recurrent street-sleepers". Half of the
interviewees said they had been forced onto the street at least once before when
they lost jobs during downturns. About 70 per cent of the homeless said they had
received secondary education or above, and the average age for those interviewed
was 43.5 years old. The number of homeless people the Social Welfare Department
registered fell slightly from a record 440 last August to less than 400 in
recent months, but Ng estimated the real figure could exceed 1,000 because many
were unwilling to register. A department spokesman said the government was
concerned about the needs of homeless people and it would increase the number of
short-term accommodation placements by at least 5 per cent by next month. It
provides subsidies for 192 homeless people in six centres.
Tommy So (left) and Li Kwok-cheung,
at their Levain Bakery shop in Jordan, have gathered a growing pool of loyal
customers. When the going gets tough, the tough go baking. Hong Kong's year-long
recession from mid-2008 to mid-2009 saw cupcakeries and frozen yogurt shops
proliferating around Hong Kong as budding entrepreneurs left high-flying jobs to
start their own small businesses. For one new bakery owner, however, the
decision to move into the baking business had less to do with pragmatism in the
face of a sluggish economy than a long-standing love-affair with loaves. His
partner jumped at the chance to join in running his own business. A physics
graduate with a master's degree from the Chinese University of Hong Kong, Li
Kwok-cheung, or "KC", started taking an interest in baking bread during his
freshman years. In space-scarce Hong Kong, Li was fortunate to have an oven at
home, and even more fortunately, a father who shared and encouraged his
interest. After graduating, Li said he thought about joining the Observatory or
the civil service, but instead followed his passion and took a part-time job as
a trainee baker at Japanese chain A-1 Bakery. He worked in the company's central
production facility in Siu Lik Yuen, Sha Tin, eventually becoming a full-time
employee. Even on his day off, he said he was at home experimenting with the
oven. "I felt that the people at A-1 weren't taking baking seriously enough, so
in the end I decided to find a business partner and start my own bakery," Li
said. Li ended up contacting his secondary school friend, Tommy So Hiu-sang, who
was working as a radiographer at St Teresa's Hospital, but who had long
harboured ambitions of being his own boss. "It was a little risky - radiography
is probably the safest job around. There's almost a 100 per cent employment rate
for graduates," So said. "At the same time, if you don't take risks like this
when you're young, you're not going to do it when you're 40." The two pooled
together some HK$1 million of their savings as an initial investment, settling
on a shop space just off Austin Road in Jordan for what they said was a
"reasonable" rent of HK$50,000 per month. On top of renovation costs, which they
said are particularly high for food outlets, Li's dedication to quality meant he
tried as far as possible to avoid cutting corners by buying cheap machines. Some
HK$200,000 was spent on machinery alone. Levain, which opened just three weeks
ago, initially focused on selling high-end "artisanal" sourdough and rye bread,
or loaves made largely by using traditional techniques. But very quickly the two
could see that this did not sit well with all their customers. "Hong Kongers
like to eat on the go. So we started bringing out more individual rolls rather
than just sticking to larger loaves, or baguettes. We also noticed some were put
off by the dark colours of our rye bread, so we had to tone that down even if it
meant weakening the flavour of the rye," Li explained. A crucial difference
between "Hong Kong-style bread" to be found in chain bakeries around the city
and traditional European bread is the fermentation process. The former tend to
use an industrially processed yeast, as opposed to natural yeast, which lends
itself more to complex flavours and chewiness, Li said. Having sampled the
market and gathered a growing pool of loyal customers, the pair say they are now
roughly two-thirds of the way to breaking even, cushioned by a two-month rent
free agreement. Sales' revenues are some HK$2000 per day on average. "We're
heavily reliant on loyalty, because foot traffic at this location isn't
particularly heavy," So said. Rising food prices are also putting pressure on
profit margins, with the price of walnuts in particular "through the roof" at
HK$130 per kilogram, matching hazelnut prices. But Li steadfastly refuses to
substitute with inferior ingredients. Meanwhile he also still hopes to win Hong
Kongers over to the dark, crusty-looking loaves favoured in European markets.
"We've had complaints from some that our bread is hard to chew. But on the other
hand, a French customer comes here everyday to buy our baguettes." "Vive la
difference ..."
Hong Kong should build a traditional
Chinese medicine hospital - run privately or by the government - that
supplemented its care with Western medicine, a think tank has proposed. The Hong
Kong Ideas Centre said the hospital could be built on one of the four sites
earmarked for the development of private hospitals. The hospital would provide
only long-term care and could also serve as a teaching facility, the report,
released yesterday, suggested. Western medicine could be used to treat acute
diseases and traditional medicine used during rehabilitation, researchers said.
It could be operated by the government or by private enterprises. Centre
consultant Dr Ko Wing-man, a former Hospital Authority human resources director,
said Hongkongers tendency to separately consult Chinese herbalists and doctors
practising Western medicine could be dangerous. "Each side would not know what
the other had prescribed to a patient. That could pose a certain risk to them
[patients]," Ko said. An approach that combined Chinese and Western medicine
would be especially helpful to cancer patients, he said. It might also prove
beneficial when people got regular check-ups, with Western technology used for
tests and examinations and Chinese medicine used to maintain overall health. The
report also called for the recruitment of top Chinese herbalists from the
mainland who could act as visiting professors and researchers. The centre said
the government should set up a steering committee to oversee the development of
Chinese medicine - it is currently regulated by two bureaus and three
departments. It said the government should more actively advocate the use of
Chinese medicine, as only a fifth of HK$500 million, given by the Jockey Club,
earmarked for research into traditional medicine had been used as of last year.
There are fewer screenings at the Hong Kong International Film Festival this
year, but advance ticket sales have been brisker than last year with more than
100 shows sold out. Organisers said more than 68,000 tickets, over 61 per cent
of the total, were sold before the official opening at the Convention and
Exhibition Centre last night, up from last year's 55 per cent. 
Chief executive Ken Yeung says Tom Group wants be known as an applications and
services provider for the mobile internet sector. Tom Group (SEHK: 2383), the
Chinese-language media arm of Li Ka-shing's Hutchison Whampoa (SEHK: 0013)
Group, is betting on the mainland's rapidly developing mobile broadband market
to help forge its identity and drive growth. Chief executive Ken Yeung Kwok-mung
said the market may have had some difficulty grasping Tom's vision as it made
strategic acquisitions, secured key alliances and fine-tuned operations over the
past 10 years, but that is about to change. Founded in October 1999, Tom has
four core business units: internet, publishing, outdoor media, and television
and entertainment. "We want to be known as the applications and services
provider for the mobile internet sector," said Yeung, noting that Tom's strategy
and mix of resources bring tremendous value in a world that is going more
mobile. "We're focused on integrating our online and wireless resources with
traditional media to create unique 3G mobile-internet services and products that
work with different devices and operators," Yeung said. On the mainland, where
there are more than 700 million mobile phone users, Tom has seen its work with
the country's three major telecommunications network operators, 120 handset
manufacturers and about 300 content providers steadily ramp up as the country's
high-speed 3G infrastructure gets built and deployed. "We've always been in the
middle and able to see things in so many angles just like an investment bank
would," Yeung said. "But our role has deepened with the opportunities presented
by 3G mobile broadband adoption on the mainland," he added. "Like, say, a JP
Morgan, maybe we started doing IPOs in the market and now we're offering swaps,
options and other new services." For example, Tom's Huanjiansheng website (hjsm.tom.com)
last year introduced an e-book reader application for Apple's iPhone. This
application allows readers to access books and best-selling novels from a stock
of more than 35,000. Yeung said Tom is open to providing e-books to new mobile
internet devices, including Apple's iPad, which is set to launch in the US and
other selected markets next month. Tom also introduced last year its Sharkwave
online fantasy games through the recently launched official websites of the
National Basketball Association, the United States-based professional basketball
league. This has enabled Tom to attract major advertisers to these sites,
including Hewlett-Packard, Nike, adidas and AsusTek Computer. Cite, Tom's
publishing unit, is the largest book and magazine publisher in Taiwan. Its
Gurubear e-book site (www.gurubear.com.cn) is extremely popular. Tom's China
Entertainment Television, a leading 24-hour Putonghua general entertainment
channel, will further extend its range of services this year with the launch of
a mobile platform (m.cetv.com), offering access to video clips and the channel's
programme highlights. According to market research firm Gartner, there is much
"opportunity to create branded dot-cn portals and mobile services that can
directly distribute on-demand media products, such as music and video, to
satisfy the growing demand in China". Yeung said Tom, which has 3,261 full-time
employees, also sees increased opportunity this year to develop more mobile
applications for various handset makers to rival the programmes on Apple's
Application Store used on the iPhone. Even with the encouraging start this year
and the recovery in Greater China, "the outlook for a sustainable global
recovery remains fragile", Tom chairman Frank Sixt said. Tom pared its losses by
96 per cent to HK$61 million last year from HK$1.39 billion in 2008, helped by
cost-control measures.
JP Morgan sends top private banker to HK
- Douglas Wurth aims to double JP Morgan's Asia private banking business in
three years. JP Morgan International Private Bank is the latest in a string of
giant lenders to relocate its chief executive to Hong Kong - in JP Morgan's
case, with the goal of doubling the US company's Asia business in the next three
years. Douglas Wurth, who is in charge of JP Morgan's private banking business
outside the US, moved to Hong Kong from New York last month. He is responsible
for US$150 billion worth of assets under management for wealthy clients. Wurth
said his relocation was a strategic move in relation to the US lender's
expansion in Asia, particularly China and India. "We aim to double our Asian
private banking business in all aspects in the next three years," he said.
"China, India and other parts of Asia will be the fastest growing area around
the world. "This is why I am here in Hong Kong, which will be a window to the
future of growth." Wurth said the bank would hire more people in Asia, while the
bank would also invest US$100 million to establish a global technology platform
to serve the private banking clients' investment needs. His relocation came the
same month as HSBC (SEHK: 0005) global chief executive Michael Geoghegan moved
to Hong Kong from London. RBS and Thomson Reuters also moved their top
executives here recently to get closer to the growing economies in China and
Asia. In the past five years, China has contributed 25 per cent of GDP growth
worldwide, Wurth said. That growth had created more wealthy clients leading to
an increase in demand for private banking services. In general, clients had
liquid assets of US$25 million each. Wurth said the company set up a private
banking arm in Hong Kong 30 years ago and now had operations in 15 countries in
Asia. "Although many Asians like to invest in the stock market directly
themselves, they gradually learn the benefit of using private bank services to
diversify their investment portfolio in different asset classes around the
world," he said. He said the private bank could also offer additional services
such as helping clients organise their assets to pass them on to the next
generation, or prepare for their children's education, or help them donate to
charity. Wurth said unlike some banks, JP Morgan had not been seriously affected
by the financial crisis and had a solid balance sheet. "While some of our rivals
are busy sorting out their internal problems, we can focus on serving our
customers," he said. JP Morgan aims to serve mainland clients through the Hong
Kong and Singapore offices, although the bank would like to operate on the
mainland in future if it could obtain regulatory approval, he said. 
Forget those immigration queues, says
airline boss - Hong Kong travelers flying to Indonesia may soon have the luxury
of giving long immigration queues a miss. The national carrier, Garuda
Indonesia, is the first airline to introduce immigration officers on board to
conduct passport checks and issue visas in-flight. "We launched the new service
on our Tokyo-Denpasar-Jakarta route last month," said Garuda president and chief
executive Emirsyah Satar. "We plan to extend the service to China but are still
negotiating with the [central] government at the moment." During the flight,
passengers can apply for visas on arrival and immigration clearance. Two
immigration officers will swipe passports and give travelers a special card,
which must be handed over to ground officers on arrival. Tourists can then
bypass the queue at immigration counters. "The practice exists on trains in
Europe. We want to do it on our planes for the convenience of our travelers,"
Satar said. The CEO has been credited with turning around the struggling airline
from a loss of 688 billion rupiah (HK$586.7 million) in 2005 to a net profit of
1 trillion rupiah last year. The service is part of Garuda's expansion plans. In
June, two new routes - Hong Kong to Denpasar and Surabaya - will start alongside
a daily flight to Jakarta. The fleet of Boeing 737-800s and Airbus A330-300s is
equipped with individual touch-screen LCD screens in economy and business class
for in-flight entertainment. "Hong Kong is quite promising. We're actually
sending our best aircraft there," Satar said. "We might make Hong Kong the
transit hub for our planes to Europe in the future." Also in June, Garuda will
introduce a daily service from Jakarta to Amsterdam via Dubai. That follows the
carrier's removal from the European Union's aviation blacklist last June. The
ban was imposed on Indonesia's civil aviation authorities after a series of
fatal accidents in July 2007. Garuda and three other firms are now off the list
as "significant improvements" have been made. The flag carrier is also expecting
to raise US$300 million (HK$2.34 billion) in an initial share offer in Jakarta
in the third quarter of this year.
TVB (SEHK:
0511) may consider taking legal action against Chinese publications over reports
after general manager Stephen Chan Chi-wan's arrest that other members of the
station's top management had accepted advantages. "If the reports are
outrageous, TVB may take legal action," Virginia Lok Yee-ling, controller of
TVB's production resources division, said. Since Chan was arrested, there have
been many media reports about top management at the TV station allegedly
accepting advantages. Chinese language publications have reported that
performers gave expensive gifts to a manager so they would be hired to perform.
Lok declined to comment on the reports, but said that Mona Fong Yat-wah, wife of
Sir Run Run Shaw and TVB deputy chairwoman, had held talks with management about
issues related to Chan's arrest. The TV station had also been supportive of
staffers facing allegations. When asked about Chan's three-minute press
conference on Thursday and his talk with University of Hong Kong students on
Friday, Lok said that she and other colleagues at TVB had been keeping an eye on
the news. "But we did not discuss Chan's activities [during TVB meetings]
because that is his personal life," Lok said. She also said that more than 10
staff members from her department have been interviewed by the Independent
Commission Against Corruption. But investigators had not been to TVB's
headquarters since last weekend. Lok said that with Chan suspended from duty,
she now reported to Mark Lee Po-on, TVB's group general manager. She said TVB
operations had not been affected by Chan's suspension. On March 11, the ICAC
arrested Chan, along with TVB business development head Wilson Chan Wing-suen,
for allegedly having accepted advantages from Edthancy Tseng Pei-kun, Chan's
former assistant and a director of an advertising company, for helping the ad
company secure service contracts related to various entertainment shows produced
by the broadcaster. TVB performer Leung Chi-cheong, whose stage name is Ning
Jin, and Tseng, and Wilson Chin Kwok-wai, an executive producer of variety
shows, were also arrested. They have all been released on bail but no charges
have been laid. After his arrest, Chan said he could not comment on the case as
it was under investigation. He did not mention TVB during the three-minute
briefing and did not take questions. "I can't deny the changes happening in my
life lately," he said. "At the end of the day, who has not experienced change in
their lives?"
With help of Oxfam HK, Filipinos rebuild
free from clutches of money lenders - More than five months after back-to-back
storms and floods killed more than 900 people in the northern Philippines and
left thousands homeless, lives are being rebuilt with help from Hong Kong. Oxfam
Hong Kong has been working in the Philippines since 1986 with Oxfam Great
Britain. Over the past five years the charities have spent HK$24,821,000,
supported 78 projects in the country and are now helping the people of
Pangasinan. "We had two emergency response projects supported by the Hong Kong
government's Disaster Relief Fund (DRF)," Keith Wong Tsz-wai, Oxfam Hong Kong's
communications officer, says. "These two projects reached 8,081 families in
Pangasinan, providing them with an emergency food supply. The total amount
supported by the DRF was HK$2.8 million. "The Oxfam-DRF supply enabled people to
have enough food for at least 10 to 14 days, and allowed them the time and
energy to focus on the necessary work ahead." To help those who need it most,
they partner two other organisations - the Pampanga Disaster Response Network,
which was a network of volunteers set up in 1991 to respond to the massive
eruption of Mount Pinatubo in the Philippines, and the local Urbiztondo,
Mangatarem and Aguilar disaster response co-ordinating centre. An Oxfam Hong
Kong recovery programme, spanning five months, was carried out in Pangasinan to
restore the livelihoods of farming and fishing families, vegetable vendors and
bamboo craftsmen. The programme also offers everyone a chance to obtain loans at
a low interest rate so that they can rebuild their livelihoods. The money raised
from the interest is ploughed back into the community. For corn farmer Nida
Matabang, who lives in the village of Dorongan in Mangatarem municipality, it
makes a huge difference as money lenders in the province charge exorbitant
interest rates. In the past when her one hectare of crops was destroyed by
floods, she had to rely on a money lender for funds to restart her business. "I
had to pay the money lender after four months when I harvested my crops and at
an interest rate of 33 per cent," she says. "If I missed the payment because
something happened to my crops, the interest would go up. Now I don't need to do
that." Matabang says it is a vicious circle where money lenders would not only
charge high interest rates, but also force the farmers to buy the seeds and
fertiliser they need at high prices and to sell their crops at lower prices as
they are also in league with these businessmen. The fertiliser and crop traders
were usually relations of the money lenders, so it worked like a dysfunctional
family business. 
A vessel sits stranded in a
branch of the Yangtze River in Chongqing. A severe drought across a large swathe
of southwest China is now affecting more than 50 million people. Prices of
several agricultural commodities are skyrocketing on the mainland as a
once-in-a-century drought scorches southwest China. Commodities the region is
known for - including cane sugar, flowers, tea, fruit, rubber and coffee - have
taken a beating as unusually high temperatures, dry conditions and up to 80 per
cent less rainfall than last year, reduced output by as much as 50 per cent,
state broadcaster CCTV reported yesterday. Yunnan, Guizhou, Guangxi, Sichuan and
Chongqing have been hit by drought since September. Cane sugar prices have risen
nearly 25 per cent since November, while export prices for flowers have jumped
by about 50 per cent compared with the same period last year, according to
industry insiders. Wei Guojian, secretary general of the Guangxi Sugarcane
Association, said yesterday that the wholesale price of a tonne of white sugar
had increased by 23.8 per cent, from 4,200 yuan (HK$4,774) in November to 5,200
yuan. "This rare price surge is mainly due to a significant reduction in the
sugar production resulting from the drought in Yunnan," Wei said. "As far as I
know, sugar produced by the province has dropped from 2.25 million tonnes last
year to 1.6 million tonnes this year."
China steals a march on US, Russia -
Beijing woos Central Asia with trade deals - The United States wants to win
supremacy to support troops for a prolonged conflict in nearby Afghanistan.
Russia sees the region as its own backyard where its right for influence dates
back centuries. But in the modern-day "great game" battle for influence in the
strategic region of Central Asia, it is China who is stealing a march on the two
cold war-era superpowers with its vast chequebook. China has been using the twin
distractions of the Afghan war and Russia's financial woes to secure its own
position in Central Asia, Alexander Cooley, a political scientist at Columbia
University, said. In 2009, for the first time, China's net trade with Central
Asia exceeded that of Russia and the trend is likely to persist in the future,
he said. "Russia was traditionally the dominant power in the region but the
financial crisis has undermined its economic power and influence while it has
precipitated a wave of new China-Central Asia business deals," he said. Former
Soviet Central Asia, a vast resource-rich region bordering Russia, China, Iran
and Afghanistan, has long found itself at the centre of power struggles between
the world's leading powers. In the 19th century, then-Tsarist Russia and the
British empire held an epic century-long struggle for influence there known as
the "great game", their troops and spies facing off along the dusty plains of
the legendary Silk Road. But if the "great game" was defined by two
roughly-equal opponents fighting over an established idea - the Russian empire's
thrust towards British India - the new contest is more complicated. The United
States is interested in only one thing in Central Asia, said Paul Quinn-Judge, a
Bishkek-based analyst with the International Crisis Group. "One word:
Afghanistan," he said. "As a result they are throwing their lot in with some of
the most corrupt and authoritarian regimes in the world today, doing
incalculable damage to their own long-term standing," he said.
Chinese Premier Wen Jiabao (C) adds
soil to the plastic bags to rear corn seedlings in the field in Luliang County,
southwest China's Yunnan Province, March 20, 2010. During a three-day inspection
trip in the drought-plagued Yunnan Province ending on Sunday, Premier Wen
visited Qujing City, one of the regions that suffered the most from the severe
drought ravaging since last October, to comfort the affected locals and direct
relief work. 
A tenement building in Mong Kok with grade-three historic status and The
Boathouse in Stanley will be redeveloped into hotels. Two iconic buildings in
Mong Kok and Stanley will be turned into hotels after owners secured approval
from the Town Planning Board yesterday. The board gave a green light to the
projects as they will address increasing demand from tourists and will not
significantly add to traffic flow to the areas. One of the premises, No.179
Prince Edward Road, is a newly graded historic tenement building. Planning
consultant Kim Chan Kim-on said the developer originally wanted to demolish it
but changed the plan after the Antiquities Advisory Board recommended this month
that the government give it grade-three historic status. Under the plan, the
building's exterior, common staircases and a flagpole on the roof will be
preserved. But the redevelopment, into a 17-storey hotel with 50 guestrooms,
will involve demolishing part of the building. A public display area of about
78.6 square metres will be set up on the second floor to showcase the history
and architectural merits of the building. The hotel tower will feature a Chinese
concertina lantern design. Commissioner for Heritage Jack Chan Jick-chi said the
Development Bureau provided strong policy support on
conservation-cum-development proposals and the project would set a very good
example of a heritage initiative from the private sector, in particular having
due regard to public accessibility and promotion of architectural heritage.
Meanwhile, a popular restaurant in Stanley Main Street could be demolished to
make way for a hotel. The Boathouse restaurant, featuring a hatched blue
exterior and balconies with a sea view, is a popular attraction for tourists and
visitors to Stanley. But the owner has received approval to redevelop one of the
two buildings on the site into a 10-storey hotel. The owner had promised to keep
the first three floors of the hotel as restaurants. The board had received only
two objections from nearby residents worried about the noise nuisance generated
by the construction activities. Southern District councillor Chan Lee Pui-ying
said she had received no complaints about the redevelopment plan.
A veteran film producer has been named to the top job at CreateHK which has a
mandate to promote the city's creative industries. Jerry Liu Wing-leung, 51,
will start work on Monday. Liu was selected from 150 candidates for the post. A
co-founder of the Media Asia Group, one of the city's leading producers and
distributors of Chinese-language films, Liu served in various senior positions
and was the chief executive of Media Asia Entertainment Group from 2001 to 2005,
focusing on business development. He also oversaw the production, marketing,
distribution and sales of popular films including the Infernal Affairs trilogy
and Initial D. In a career than has spanned 25 years, Liu was the planning
manager responsible for developing a financial model for the programming of
channels at Hong Kong Cable Communication in 1989. He graduated from Vassar
College in New York with an honours degree in drama in 1980. The government said
Liu was chosen for his proven management abilities in film, television and
related sectors. Peter Lam Yuk-wah, the vice-president of the Hong Kong Motion
Picture Industry Association, said Liu was an ideal choice. "He has a passion
for movies and is a very versatile man with experience in scriptwriting and
administration," said Lam. The two had worked together at the same company for a
number of years, he said.
Severn 8 on The Peak, developed by
SHKP and comprising 22 houses, has consistently been the most expensive project
in the city since it was launched in 2007. A listed electronic components
manufacturer yesterday bought a house on The Peak for HK$60,215 per square foot,
making it the most expensive home in Hong Kong in terms of price per square
foot. Sino-Tech International Holdings said they had agreed to buy house No 8 at
Sun Hung Kai Properties (SEHK: 0016)' Severn 8 in Severn Road on The Peak for
HK$280 million for investment purposes. The three-storey house has a gross area
of 4,650 square feet and offers Victoria Harbour views. The price exceeded the
previous record set by house No2 in the same development, which sold for
HK$56,200 per square foot in 2007. But the purchase comes at a difficult time
for Sino-Tech. The firm issued a profit warning last Friday, saying it expects
to record a loss for the 2009 financial year, compared with a profit in the
previous year. It is the first major property acquisition for the company. It
said in the announcement that the acquisition is a good investment opportunity
and it will benefit from diversifying into the property market. However,
investors in the stock market did not share the view. Shares in Sino-Tech
dropped 9.38 per cent to close at 58 HK cents after it announced the
acquisition. "It is questionable whether the buyer can generate a profit. There
is a risk in the prospects of the property market," said Koh Keng-shing,
managing director at Landscope Surveyors, a luxury property agency. Prices of
high-end residential properties in prime locations surged 50 per cent last year,
with values rising 10 per cent in the first two months of this year. "If the
government does not release new measures to cool the property market and the
economy continues to improve, prices of luxury properties will rise a further 10
per cent by the end of the year," he said. However, the luxury residential
sector would be hit if the stock market dropped sharply or interest rates rose
quickly. With the growth in housing rentals lagging behind price growth,
property agents expect the three-storey house to be leased for about HK$370,000
a month or HK$80 per square foot. Sino-Tech could enjoy a rental yield of 1.6
per cent if the property is leased. To realise a profit, the company will have
to look for another buyer who is willing to pay a record unit price of more than
HK$60,215 per square foot. Severn 8 comprises 22 houses ranging in floor area
from 3,300 to 5,147 sqft and it has consistently been the most expensive project
in the city since it was launched in 2007. The luxury residential market was
active last month, despite a rise in stamp duty on high-end properties.
Centaline Property Agency's research shows 106 houses worth HK$1.3 billion were
sold last month. The transaction number was 12.8 per cent higher than that of
January.
Beijing is sending a top-level envoy to
Washington in an attempt to mend frayed trade ties with the world's biggest
economy and fend off calls for a stronger yuan. The Ministry of Commerce said
yesterday that Vice-Minister Zhong Shan will lead a delegation next week to meet
representatives of the US Department of Commerce, Treasury and Congress to ease
trade frictions and resolve trade-related issues. The move, backed by
conciliatory comments by a senior official of the Ministry of Commerce, aimed to
take the heat out of the currency issue after five US senators floated
legislation earlier this week that would make it easier for the US to declare
currency misalignments and take corrective action. The legislation may lead to
the imposition of heavy import tariffs on consumer goods produced in China,
economists warned. Premier Wen Jiabao has rebuked repeated calls for a strong
yuan and does not think the currency is undervalued. The battle over yuan
appreciation is the latest sticking point between the two countries and comes
after disputes over steel products, poultry, tyres and raw materials in the past
few months. Yesterday, the Ministry of Commerce's Director-General for American
and Oceanic Affairs, He Ning, said Sino-US trade relations should be "mutually
beneficial". "Based on the principle of a level playing field and by avoiding
taking trade issues politically and emotionally, many trade problems can be
resolved properly," he said. "Some US politicians' proposal will complicate the
trade situation and disrupt Sino-US communication." He did not elaborate on
this. The yuan gained 0.1 per cent last year against the greenback to 6.82 after
rising 16 per cent in the three years to 2008. Economists widely expect the yuan
to rise about 3 to 5 per cent by the end of this year. Nomura International
chief China economist Sun Mingchun said next week's meeting between Beijing and
Washington officials signalled the mainland's desire for reconciliation. "They
are making efforts to resolve the dispute nicely," Sun said. "But some people
are making it a political issue, which delays the appreciation rather than
hastening it." He said Beijing may allow the yuan to rise as soon as next month.
Federation of Hong Kong Industries chairman Cliff Sun Kai-lit said a more
expensive yuan against the US dollar would be "fatal" to tens of thousands of
Hong Kong exporters across the border. "The chain reactions are far-flung," he
said. "We have no choice but prepare for the worst." Cliff Sun said for every 5
per cent rise in yuan against the greenback, exporters' overall cost will jump
by 2 per cent and will eat directly into their already thin profit margins.
"When profit margins are depressed to a level that makes business unviable, many
factories will be forced out of business, jobs will be cut and consumers will
have to pay more for the same or even lower quality of goods," he said. "This is
not good for the US consumers." China is the largest supplier of goods in the
US. Zhang Yujing, the president of the China Chamber of Commerce for Import and
Export of Machinery and Electronic Products, said "companies are under pressure
over cost increases", and a stronger yuan would force many of them to go under.
The US is the second-largest export destination for Chinese goods. China shipped
US$35.12 billion worth of goods, or 17.2 per cent of its total exports of
US$204.08 billion, to the US in the first two months of this year.
China environmentalists have warned of
more cases of deadly heavy-metal poisoning in the coming years in the wake of a
recent flurry of lead and cadmium pollution scandals. Heavy-metal pollution
problems in the country's hinterland provinces, which repeatedly hit the
headlines last year, have taken a turn for the worse in the past few weeks. More
people are dying of cancer-causing cadmium poisoning in a small town near the
capital of Hunan province , while at least 250 children under the age of 14 near
the industrial hub of Chenzhou have been found with excessive concentrations of
lead in their blood. "All the signs we have seen in 2009 and in the past weeks
show China has entered an era marked by growing outbreaks of public health
scandals resulting from pollution," said Yang Dongping , director of Friends of
Nature, a leading mainland environmental group. He made the remarks yesterday at
the launch of the 2010 Green Book on the country's environment, a collection of
reports by dozens of mainland academics and journalists covering a range of
green issues in the past year. Apart from a flurry of heavy-metal poisoning
scandals, the book also touches on controversies surrounding rubbish treatment,
dam building in the southwest and the ambitious South-North Water Diversion
Project designed to quench the capital's thirst. Citing the book's conclusion,
Yang, its chief editor, said the country was paying a high environmental price
for decades of rapid economic growth. "We have already seen the looming adverse
impact of pollution on public health and it looks very likely that
pollution-induced health incidents will erupt frequently in the next few years,"
the book says. Li Dun , a main writer of the book and a former professor at
Tsinghua University , warned that the heavy-metal pollution problems that have
emerged so far were just "the tip of the iceberg". "Environmental risks have
accumulated to a dangerous level and the crisis looms large without effective
efforts by the authorities that can make a real difference," he said.
Environmentalists also voiced concerns about the country's worsening pollution
despite progress in cutting energy waste and controlling two major pollutants
reported by Premier Wen Jiabao during the annual legislative session early this
month. Citing the often contradictory statistics put out by various government
departments, Li questioned the effectiveness of Beijing's pollution control
polices and spending. "Top leaders have been talking about getting pollution
under control since the 1980s but what happened? Pollution simply turns from bad
to worse due to the lack of checks and balances that restrict powerful interests
groups. We need to constantly remind our leaders about their commitments," he
said. Environmental lawyer Zhang Jingjing said most victims of heavy-metal
poisoning and other pollution disasters had great difficulty taking unscrupulous
polluters to court despite the authorities' pledges about the rule of law. "It
remains a sad truth, after seeing so many pollution scandals in the past year,
that local officials abuse their power to deprive victims of their lawful rights
to health," she said. Villagers in Jiahe county in the south of Hunan were
detained when they wanted to have health check-ups last year and some remain in
police custody. Local authorities said the move was necessary to maintain
stability. Although 50,000 environmental protests erupted in 2005, Zhang said
few were resolved by courts.
The price of Puer tea, one of the most famous products of Yunnan , could double
this year due to drought in the province. The drought has damaged at least
200,000 hectares of tea plantations in the province, and more than 3,300
hectares of bushes have died already, the provincial tea industry office said.
The peak tea-plucking season was to start this weekend but has been postponed
and the amount of tea harvested will drop if the drought does not end. Many
vendors said the price of Puer tea would rise by at least 30 per cent this year
and some brands would see increases of up to 100 per cent. The amount of tea in
Lincang , one of the most seriously affected cities, has decreased by about
two-thirds this year. The drought started eight months ago. "We bought 30 tonnes
of tea in 2008, but this year we have bought less than 10 tonnes," a tea company
manager told China News Service. Another firm had to cut its production of Puer
tea to a third of that in previous years because of high primary tea prices.
"The price of primary tea is 60 to 80 yuan (HK$68 to HK$91) per kilogram now -
that is double last year," he said. "I have to raise the price of our tea
products by 50 to 100 per cent."
People visit China's Shanghai
Expo stand during the 2010 International Tourism Show in Paris, capital of
France, March 18, 2010. The four-day show opened on Thursday, presenting a
colorful showcase of hundreds of tourism professionals from countries and
regions in the world. A workshop of tourism products related to the Shanghai
Expo 2010 and its emblematic Chinese Pavilion put the upcoming event in the
spotlight of the 2010 International Tourism Show, which opened here Thursday.
The China National Tourism Bureau (CNTB), an exhibitor at the show, decorated
the workshop with photos and posters featuring the Shanghai Expo, while the red
Chinese Pavilion, the largest among the Asian representatives, stood out
prominently in the 1,700-square-meter exhibition area. The CNTB hosted 13 French
travel agencies that sell special products related to the Shanghai Expo, which
will take place from May 1 to Oct. 31. "By inviting a dozen of French tour
agencies, we are organizing the workshop to provide information exchange for
international professionals attending this tourism show," Paris Office Director
of the CNTB, Xue Guifeng, told Xinhua. Many French agencies have already
developed special products for the Shanghai Expo, Xue said. Guillaume, a
seasoned traveler, has visited China twice, and he certainly won't miss the
World Expo this year.
A wedding dress worth
around 10 million yuan ($1.5 million) is displayed in Nanjing International
Exhibition Center in east China's Jiangsu province, March 19, 2010. A three-day
wedding fair started at the center March 19, featuring businesses that provide
wedding dresses, camera services, dinning and other wedding-related services.
China's President Hu Jintao shakes hands with Bangladesh's Prime Minister Sheikh
Hasina inside the Great Hall of the People in Beijing March 19, 2010. Hasina is
on a five-day visit to China, her first trip there since taking office in
January 2009, to promote cooperation and regional links, officials said.
A performer
performs at the oilseed rape field during the opening ceremony of the 3rd
Oilseed Rape Flower Festival in Taizhou, East China's Zhejiang province, March
19, 2010. The festival aims to attract visitors and promote the agricultural
development. 
A captain controls a yacht on Friday
during the Haikou Yachting Industry Forum. Yachting, a synonym of luxury for
flamboyant wealthy people, may become an increasingly viable option for Chinese
people's leisure life, industrial regulators and officials said on Friday. "In
the coming few years, yachting will become a thriving recreational activity in
China," said Haikou Mayor Xu Tangxian. "Governments of coastal cities should
work out development plans for yachting tourism in time." He was citing an
industrial manifesto the China Communications and Transportation Association (CCTA)
and the country's yachting organizations released during the Haikou Yachting
Industry Forum that opened in the provincial capital of Hainan on Friday.
Industrial analysts have predicted China's yacht market may grow as fast as its
automobile market. Various luxury brands, including yachts, are enjoying huge
growth in China. But compared to the highly prosperous automobile market, yachts
are still a young industry and its target customers remain small in number.
Therefore, it promises a huge potential, Fairtheworld, a professional 3D virtual
expo and expo media provider, said in a report last July. "China has entered a
post-auto era With an increasing number of middle-class families, the yachting
industry will experience rapid expansion," said the 2009-2010 China Yachting
Industry Report, which was jointly released by CCTA's Cruise & Yacht Industry
Sub-association and the Yacht Industry magazine on Friday. The report proposed
the government to reduce the taxes on imported yachts, which currently account
for 40 percent of the total cost. CCTA President Qian Yongchang said that now is
the time for China to develop the yachting industry, even though at the
beginning, the high-end recreational boats may be accessible only to high
earners. Industrial insiders said that during the beginning stage, it is
unrealistic to expect the Chinese to purchase yachts with the same passion as
they pursue cars or houses. Yacht renting will therefore be a major way that
people can enjoy the luxury. Last December, for the first time, the State
Council, China's Cabinet, asked governments at various levels to foster yachting
when developing tourism. In January, the State Council asked Hainan Island to
work out yacht management regulations and prepare to serve foreign yachts. Chen
Ci, Party chief of Haikou, said on Friday that the port city will take the lead
in applying international practices when formulating regulations on yachting,
exit-entry management and marketing of the recreational boats. Haikou will build
1,000 wharves for the pleasure vessels in the next 10 years, with 400 expected
to be complete by the end of this year, he said.
A Shanghai Zhenhua Heavy
Industry Co employee supervises the loading of containers at Shanghai port. The
company has a 70 percent share of the global port equipment market. Shanghai
Zhenhua Heavy Industry Co (ZPMC), the world's largest port equipment maker, is
planning to expand into the nation's high-speed railway and wind power sectors,
making them its new growth engines, company President Kang Xuezeng said on
Friday. "Our next step is to apply our home-grown electric control systems and
gearboxes to the two rapidly growing industries," said Kang. Representatives of
China South Locomotive and Rolling Stock Industry (Group) Co (CSR) attended a
promotion conference on ZPMC's gearboxes, spreaders and drives in Nantong,
Jiangsu province, on Friday. CSR, the country's largest trainmaker, is the
manufacturer of "China Star" and "Central China Star" high-speed trains. "The
market demand for high-speed rail is huge, and we are very interested in
participating in this sector," said Kang. "It's no surprise that ZPMC's has
ambitions in this sector, as most of its products used in ports are compatible
with high-speed trains," said Zhang Zhongjie, an industry analyst at Essence
Securities. China plans to build 16,000 km of high-speed rail lines by 2020,
according to the Ministry of Railways. Forty-two high-speed rail lines totaling
13,000 km will be completed by 2012. Kang also said ZPMC is currently in talks
with several firms to develop gearboxes that can be used in the wind power
sector. ZPMC's key businesses, including yard and quay cranes, were hit hard
last year as port operators and shipping firms cut capacity due to the global
financial crisis. ZPMC has a 70 percent share of the global port equipment
market, according to Kang. ZPMC forecast in its annual report to the Shanghai
Stock Exchange that its net profit would decline by up to 70 percent in 2009.
The barge crane manufacturer posted a net profit of 2.55 billion yuan ($374
million) a year earlier. The market value of the port-related sector declined 60
percent during the financial crisis, Kang said. The company said that sales of
its Global Positioning System products used in yard cranes dropped to 44 units
in 2009 from 127 in 2008. "We received more contracts during the first months of
2010 compared with the previous year, but difficulties will continue
(therefore), we have to adjust our product structure this year, aiming to speed
up the promotion of home-grown components with cutting-edge technologies and
high added value," Kang said. Essence's Zhang pointed out that the profit margin
of components is about 20 percent, compared with 8 percent for yard cranes and
15 percent for quayside cranes. According to Kang, components, most of which are
currently made by foreign firms, account for half of the costs of integrated
port equipment. "We will make more efforts in developing components to cut the
overall costs and in turn, improve our competitive edge," he said. But the
components market will take time to grow, and may not see a profit in the short
term, Kang said. 
A TVB artiste poses at the Fairy Tales
of Flowers photo competition at Victoria Park, Causeway Bay on Friday. The 2010
Hong Kong Flower Show opened at Victoria Park on Friday - with more than 350,000
flowers on display. The show, an annual event organised by the Leisure and
Cultural Services, is expected to attract thousands of enthusiasts from Hong
Kong and overseas. “It provides an opportunity for local people and horticulture
lovers from around the world to appreciate the beauty of flowers and share their
experience about growing flowers,” the department said in a statement. About 200
organizations from 21 countries are participating. They include the mainland,
Australia, Canada, Estonia, France, Germany, Indonesia, Italy, Japan, Korea,
Malaysia, the Netherlands, the United Kingdom and the United States. The show
will also feature some educational activities, including drawing and photo
competitions. The show’s theme flower is the Cineraria and its theme is “Fairy
Tales of Flowers”. The 10-day show runs until March 28. 
Nearly one in six workers in the city
earns less than HK$33 (US$4.23) an hour, the Census and Statistics Department
revealed in a detailed survey that will be a major reference in determining the
statutory minimum wage. Despite the release of the wage and employment data,
officials are still a long way from deciding what the city's first statutory
minimum wage will be and determining its impact on the labour market. The
department found that 469,400, or 16.9 per cent, of the city's 2.78 million
workers, were paid less than HK$33 an hour, the rate unionists are fighting for.
The number of employees excludes maids, civil servants and the self-employed.
Some 130,200 get less than the HK$24 that many business groups are demanding.
The median hourly wage of city workers is HK$58.50 and the median working hours
a month is 192. Among all industries, the lowest median hourly wage is seen in
estate management, security and cleaning services at HK$27.60. Restaurant
workers earned HK$32.70 and HK$33.70 per hour was paid for miscellaneous
activities, which covered couriers, homes for the elderly, laundry and food
production workers. The survey was different to the usual labour earnings survey
the department does quarterly. "This survey offers more detailed and accurate
figures since it interviewed more than 10,000 companies and organisations while
the labour earnings survey polled only 2,000," an official in charge of the
survey said. "Also this survey covers part-time workers and more industries.
Companies with less than 50 workers are also included." The figures will be part
of a wide range of information to be considered by the Provisional Minimum Wage
Commission in setting the city's first statutory minimum wage, which could be
announced as early as July. The statutory minimum wage would be implemented as
soon as the beginning of next year. "We can't say now what the rate will be
based simply on the survey findings," the census official said. The survey was
conducted in the second quarter of last year when the city was still severely
affected by the financial meltdown and had a jobless rate of 5.4 per cent. The
latest jobless figure is 4.6 per cent. The official said he did not believe the
survey's findings would be outdated when the wage was being determined. "The
survey is only one of the factors for the commission in determining the rate,"
the official said. "The commission will also take more recent information like
the standard of living, labour market conditions, economic growth and inflation
into account." The official also said the figures in the survey could not be
used to estimate the number of workers likely to be sacked when a rate was set.
"It only tells you the number of workers getting a certain wage, but it would be
wrong to estimate how many workers will be out of a job when a rate is set.
Employers may decide to cut into their profits to give more to the workers. They
may ask workers to work fewer hours or they might raise the price for their
products or services." Secretary for Labour and Welfare Matthew Cheung Kin-chung
said he was concerned about the figures being outdated, but said: "I believe the
commission will consider many factors when setting the rate so that it will be a
reasonable and fair one. We have to ensure that the minimum wage can't be too
low." Many jobs would be lost if the rate was not reasonable, he said. Key
business groups said it was impossible to suggest a minimum wage based on the
data available, saying more studies were needed. Stanley Lau Chin-ho, deputy
chairman of the Federation of Hong Kong Industries, said the provisional
commission should consider factors such as the economic environment and the
impact on enterprises when setting the minimum wage. And Federation of
Restaurants and Related Trades' president Simon Wong Ka-wo said the industry had
not yet reached a consensus. But he said most frontline staff in the industry
earned between HK$20 and HK$25 per hour. He was worried that less competent
people would lose their jobs if the minimum wage was set at HK$33 an hour.
Finally making an appearance in
public after being arrested by graftbusters last Thursday, an apparently unfazed
TVB general manager Stephen Chan Chi-wan, talked about the "ups and downs" of
life. Chan, right, displaying the flair for which he is famous, told a packed
media briefing that he would only read a prepared statement and would take no
questions. The normally high-profile host of Be My Guest - who appears to have
lost weight - also denied suggestions he had been holed up at home for the past
six days. But while stressing he would not comment directly on the ICAC's graft
allegations, Chan, who was accompanied by his lawyer Ivan Tang Yiu- wing,
alluded to his innocence by describing what happened as "puzzling." He said: "I
am living well at this moment though there must be some changes to my life.
Everyone must experience some ups and downs in their life. If one day you come
across any puzzling situation, don't panic ... because the truth must stand
while the lies must fall." With more than 100 journalists present in a function
room of the Regal Hotel in Tsim Sha Tsui yesterday, the top TV personality
displayed his sense of humor when explaining why he wore a mask last Friday
night after he was released from the headquarters of the Independent Commission
Against Corruption. "I knew the media were waiting outside, so I tried to tidy
up myself. But I accidentally cut my cheek while shaving. To avoid the public
misunderstanding that the wound was related to the ICAC, I decided to wear a
mask," he said. Chan, standing in the center of the room with tables placed
between him and the media, also refuted newspaper reports that he had become a
recluse in his Ho Man Tin home since his release, claiming he had been in and
out of his flat several times to meet friends, dine and visit a public hospital
for a medical checkup. Explaining why he did not speak to the media earlier,
Chan said: "I was concerned with the personal safety of my media friends and the
public. If I held an impromptu briefing, it would create chaos and bring
inconvenience to passersby. "So, I decided to [hold this press briefing] in a
prearranged setting and orderly manner to satisfy the media friends who then
will no longer need to wait outside my home." Chan thanked the people who texted
him messages of support. Chan, TVB's head of business development Wilson Chan
Wing-suen, variety department executive producer Wilson Chin Kwok-wai and actor
Ning Jin have been suspended from TVB since their arrest by the ICAC last
Thursday. The Standard reported last week that Chan and others were accused of
running a shell company, which allegedly forced some top Television Broadcasts
artistes to perform for free or at very low pay in major shows and functions.
Since last week, the ICAC has interviewed more than 100 artistes and senior
staff in connection with the graft allegations.
A recent survey shows nearly 40 percent
of white-collar workers regularly buy luxury goods. As a sign of growing
affluence following the economic crisis, a survey by MSN China showed luxury
products are regular purchases among a third of the white-collar workers it
surveyed in Beijing. The research conducted by IResearch Consulting Group among
17,644 respondents from Dec 29 to Feb 5, showed 60 percent of them are defined
as white-collar workers, aged between 20 to 40 and with an average income of
more than 3,000 yuan ($439.4) in cities like Beijing, Shanghai and Guangzhou.
The MSN China survey showed more than 30 percent of the surveyed white-collar
workers in the capital buy premium-brand cosmetics and 20 percent own at least
one Louis Vuitton bag. Liu Shu, chief editor and executive producer of MSN China
Portal, said 38 percent of Beijingers are regular customers of luxury products,
higher than 37.3 percent in Shanghai and 33 percent in Guangzhou. She revealed
that almost 63 percent of Beijing white-collar workers buy luxury cosmetics, 48
percent purchase luxury bags, 45 percent wear luxury watches, and 40 percent
have premium-brand clothing. Fu Lei, a 26-year-old woman working in Beijing and
earning more than 10,000 yuan per month, recently went on a shopping trip to
Hong Kong to buy cosmetics. "I go to Hong Kong to buy cosmetics almost every
year, because they are cheaper there," said Fu. The survey also showed that
large numbers of people now regard luxurious products as a sign of lifestyle
quality. In Beijing, 44.6 percent of white-collars surveyed agreed with the
concept, slightly more than 44 percent surveyed in Shanghai. "I still remember
my first LV bag. In 2008 I bought a red LV purse to bring me good luck," said a
28-year-old woman surnamed Wang. Wang said she has several LV and Gucci bags but
no longer buys them because they are too common. According to the Hurun China
Rich List, compiled by British Rupert Hoogewerf, Beijing is home to 143,000
people with wealth of more than 10 million yuan and 8,800 people with more than
100 million, the highest in the Chinese mainland. 
Beijing has banned 78 state-owned
enterprises from dealing in the property market in a determined move to curb
home prices. The directive from the State-owned Assets Supervision and
Administration Commission yesterday said only 16 state-owned companies whose
primary business is real estate will be allowed to participate in the sector.
Analysts say the move will have a negative impact on the stock market and create
correction pressure on mainland developers across the board. "The recent steps
and comments from Beijing and state-run media show the central government is not
happy with the SOEs' recent high-profile participation in land auctions, which
have drawn heavy criticism," Quam Securities sales director Andrew Wong Wai-
hong said. "The recent bidding of record prices for Beijing sites by SOEs was a
slap in the face for Premier Wen Jiabao who has reiterated in the national
legislative meetings that curbing property prices is one of his main tasks this
year." Wong said the SASAC's message is clear - Beijing is firm in its intention
to cool the overheated real estate sector. "The bullish sentiment [on mainland
property] will turn sour after the SASAC announcement," Wong said. On Monday,
state-backed Sino- Ocean Land made a 4.08 billion yuan (HK$4.64 billion) winning
bid for a site in Beijing's Chaoyang district, while China South Industries
Group bid 1.76 billion yuan for a Haidian district site. That was followed by
Poly Group's 5 billion yuan winning bid on Wednesday for another Chaoyang site.
The back-to-back biddings triggered a lot of public criticism. State-run media,
including the People's Daily and China Central Television, criticized the SOEs
for not fulfilling their social duties and pushing home prices higher instead. "SOEs
should follow Beijing's lead in curbing the heated property market," a People's
Daily editorial said. SASAC said the 16 companies still in the property fray
include China State Construction (3311), China National Real Estate Development,
China Poly Group, China Railway Construction (1186) and Sinochem Corporation.
The list also includes China Travel Services Holdings, China Merchants Group,
China Resources (Holdings) and Nam Kwong Group Limited. "Subsidiaries of
state-owned companies that are currently in an adjustment phase should
accelerate their pace and make an orderly withdrawal from the market after
completing current projects," SASAC spokesman Du Yuanquan said. Wong at Quam
Securities said even though no cut-off date has been set and the 78 firms
concerned allowed to continue till the completion of current projects, it is
understood each developer will not be able to hoard land for more than two
years. So it will still act as a firm cooling measure. Last month, People's Bank
of China and the Banking Regulatory Commission banned financial institutions
from lending money to developers who hoard land in a bid to push up prices.
Cooking oil on sale in a market in
Shenyang, Liaoning province. Nationwide inspections of cooking oil were ordered
as reports on Friday said illegally made oil contained cancer-causing agents.
China's food safety watchdog has ordered inspections of cooking oil nationwide
as reports Friday said up to one-tenth of Chinese supplies were illegally made
and contained cancer-causing agents. The State Food and Drug Administration on
Thursday ordered stepped-up inspections of all food service providers and vowed
to punish manufacturers producing “drainage oil”, cooking oil refined from
discarded kitchen waste. “If food service providers are found to be using
cooking oil from an unclear source, or if they have bought ‘drainage oil’, their
operations will be immediately halted and they will be dealt with in accordance
with the law,” said the order posted on the administration’s website. The China
Daily said as much as one-tenth of cooking oil used in the mainland could be
made from recycled kitchen or restaurant waste oil, which contains a highly
toxic, carcinogenic substance called “aflatoxin.” “People in China consume about
two to three million tons of illegal cooking oil every year,” the China Youth
Daily cited He Dongping, a food science expert at the Wuhan Polytechnic
University, as saying. The mainland annually consumes about 22.5 million tons of
cooking oil, he added. According to He, the illegal cooking oil business is
extremely profitable because the cost of buying food waste and refining it is
low, while edible oil prices were rising. China’s food industry is notoriously
prone to food safety scares. On Friday, the administration issued a this year
plan to ensure food safety, calling on all levels of government to step up
inspections at every link in the food production chain, including the edible oil
and dairy industries. Beijing has launched high-profile crackdowns in the past,
but product-quality scandals continue to emerge. In 2008, the nation’s dairy
sector was rocked by a tainted milk scandal that the government said resulted in
the deaths of six babies and sickened 300,000 others. Reports have said recently
that some of the tainted dairy products, which were contaminated with the
industrial chemical melamine, had re-emerged on the market. The government has
said the problem has been contained. In 2007, the former head of the nation’s
food and drug administration Zheng Xiaoyu was executed after being convicted of
taking bribes to approve untested medicines. 
A resident collects water after
digging in a dried-up pond at a village in Guangnan county in Yunnan. A lack of
investment in basic drinking water and irrigation infrastructure has made the
worst drought in decades in western China more deadly than it should be,
mainland agricultural experts say. The once-in-a-century drought that has hit
Yunnan , Guizhou , Sichuan , Guangxi and Chongqing since autumn last year has
left more than 20 million people without enough drinking water and has affected
almost 6.5 million hectares of farmland. The National Meteorological Centre
expects the drought to continue for at least two more months. Zheng Fengtian , a
vice-dean of the school of agricultural economics and rural development at
Renmin University, attributed the prolonged drought to short-sighted regional
governments seeking financial gains from large-scale flood control and
hydro-electric power generation projects at the expense of unprofitable rural
drinking water projects and irrigation facilities. He said that for tens of
thousands of farmers living in mountainous areas in Yunnan and Guizhou, water
tanks and artificial ponds provided lifesaving water, not huge reservoirs. But
the government had not invested in such projects in 30 years. "The drought isn't
a natural disaster but a man-made calamity," Zheng wrote in his blog yesterday.
"A lack of investment on drinking water and irrigation systems puts farmers in a
plight whenever drought hits the area. "The country invests heavily on
hydro-electric power in major rivers and builds huge reservoirs, but the distant
water can't quench the thirst in mountainous areas." Zheng criticised
profit-oriented regional governments for ignoring the livelihood of farmers,
saying they ignored the fact that farmers would go hungry when drought hit. Tang
Jian , the deputy chief of the water resource bureau in Weining county, Guizhou,
said a 30 cubic metre water tank would enable a household to have enough
drinking water during a drought lasting from October to May. He said the central
government paid a subsidy of about 2,000 yuan (HK$2,274) for each water tank and
farmers were eager to have them. "In mountainous areas, a household needs at
least two small water tanks to store drinking and irrigation water," yesterday's
edition of Economic Information Daily quoted Tang as saying. The newspaper said
more than 60 per cent of the country's small and medium-sized irrigation systems
were out of order because of insufficient investment and maintenance, meaning
that more than half the farmlands lacked protection from drought. Mainland media
have reported that regional governments have been forced to tap underground
water sources and use cloud seeding to produce rain for agricultural production.
According to the Ministry of Agriculture, the drought-hit areas account for 16
per cent of the country's annual grain output. 
Pressing China on yuan will hurt
U.S. economy: U.S. media - The China-made clothes are sold at a Marshalls store
in New York, the United States, March 18, 2010. The Americans may find that the
appreciation of China's RMB will increase their living cost, as many goods they
have been consuming are made in China. The efforts by U.S. legislators to
pressure China to reform its currency is to make China a scapegoat of the U.S.
domestic politics, and may actually hurt the U.S. economy, according to articles
published by U.S. well known media in recent two days. The Wall Street Journal
said Thursday that U.S. lawmakers "want to make the yuan a scapegoat and risk a
trade war with China," referring to the U.S. Senators' bill proposed Tuesday to
call for China to appreciate its currency yuan. Under the pressure of the
election year and high unemployment, U.S. Senator Chuck Schumer and four other
senators unveiled a legislation to threaten China for punitive duties on goods
from China if it does not let yuan appreciate against the U.S. dollar. "China is
right to resist these calls, not least because a large revaluation could damage
China's growth," the Wall Street Journal said in its Review and Outlook column.
"China has helped to lead the global economy out of this recession, and the
world needs that to continue."
Jon Huntsman, US ambassador to China, is
surrounded by journalists after delivering his speech at Tsinghua University in
Beijing. Beijing needs to take seriously American concerns about the value of
the yuan, but bilateral disputes should not impede co-operation on global issues
such as climate change and Iran's nuclear programme, the US ambassador to
Beijing said yesterday. Washington and other trading partners are pressing China
to ease currency controls that have kept its yuan steady against the dollar to
help their companies compete amid weak global demand. China faced important
negotiations over the yuan in coming weeks, US ambassador Jon Huntsman said.
Washington was not alone in wanting Beijing to unshackle its currency from a
20-month-old peg against the dollar, he said. "We hope to see more flexibility
on the exchange rate," Huntsman told students at Tsinghua University in Beijing.
"I would be misleading you if I left you with the impression that this wasn't a
very, very important issue in the United States, and will continue to be. We'll
see how the next few weeks play out." The currency debate has turned
acrimonious, with 130 US lawmakers demanding sanctions unless China gives up
what they see as an unfair competitive advantage by allowing the yuan to rise. A
US Treasury report due in mid-April could label China a "currency manipulator",
adding to pressure on Beijing and threatening a deepening rift between the
world's biggest and third-biggest economies. "I suspect there will be many
important negotiations in the weeks ahead. This is of real concern to people in
my country," Huntsman said. "Many see the trading relationship with China as a
little out of balance, partially because of the currency issue." He declined to
elaborate on the nature of the talks. China has kept the currency on ice near
6.83 per dollar since mid-2008 to help its exporters ride out the global credit
crunch. "My Chinese friends like to pitch this as just an American issue. I like
to say that there are many countries that feel the same way," he said. While the
two nations argue over trade and currency, they still need to co-operate with
each other on a wide range of global issues, such as climate change and Iran.
Huntsman said he was "optimistic" President Hu Jintao would attend a global
nuclear security summit in Washington next month. "I don't even want to
speculate on President Hu not being there. I think they recognize what an
important issue this is not only to the US-China relationship but also the
people of the world," he said. "We look to China to support strong sanctions
should Iran continue to stall on the dialogue track," he said. "The recent
turbulence we have experienced is part of a natural cycle .... but our
relationship is mature and stable enough to weather our differences," he said.
"I am convinced blue skies are already on the horizon."
China’s steel mills have been asked to
accept a doubling of iron ore prices this year by their top supplier, Brazil’s
Vale, and are also facing excessive output, a top official said.
Applied Materials sets up its
research labs in Xian after estimating that China will soon be producing
two-thirds of the world's solar panels. China's edge draws US hi-tech players -
Researchers see huge potential in Chinese market. For years, many of China's
best and brightest left for the United States, where the hi-tech industry was
more cutting edge. But Mark Pinto is moving in the opposite direction. Pinto is
the first chief technology officer of a major US technology firm to move to
China. The company, Applied Materials, is one of Silicon Valley's most prominent
companies. It supplied equipment used to perfect the first computer chips.
Today, it is the world's biggest supplier of the equipment used to make
semiconductors, solar panels and flat-panel displays. In addition to moving
Pinto and his family to Beijing in January, Applied Materials, whose
headquarters are in Santa Clara, California, has just built its newest and
largest research laboratories here. Last week, it even held its annual
shareholders' meeting in Xian. It is hardly alone. Companies - and their
engineers - are being drawn here increasingly as China develops a hi-tech
economy that increasingly competes directly with the United States. A few
American firms are even making deals with Chinese companies to license Chinese
technology. The Chinese market for everything from electricity to fashion is
surging, and companies are concluding that their researchers need to be close to
factories and consumers alike. Applied Materials set up its latest solar
research labs here after estimating that China would soon be producing
two-thirds of the world's solar panels. "We're obviously not giving up on the
US," Pinto said. "China needs more electricity, it's as simple as that." China
has become the world's largest car market, and General Motors has a large and
growing car research centre in Shanghai to work with its Chinese assembly
plants. The country is also the biggest market for desktop computers and has the
most internet users, so Intel has opened a semiconductor research lab in Beijing
along with a research centre to make internet servers work better. Not just
drawn by China's markets, Western companies are also attracted to the country's
huge reservoirs of cheap, highly skilled engineers - and the subsidies offered
by many Chinese cities and regions, particularly for green energy firms. Now,
Pinto said, researchers from the United States and Europe have to be ready to
move to China if they want to do cutting-edge work on solar manufacturing
because the Applied Materials complex here is the only research centre that can
fit an entire solar panel assembly line. "If you really want to have an impact
on this field, this is just such a tremendous laboratory," he said. Xian, about
970 kilometres southwest of Beijing, has 47 universities and other institutions
of higher learning, churning out engineers with master's degrees who can be
hired for US$730 a month. On the other side of Xian from Applied Materials sits
Thermal Power Research Institute, China's world-leading laboratory on cleaner
coal. The firm has just licensed its latest design to Future Fuels in the United
States. The American company plans to pay about US$100 million to buy a 130-foot
long maze of equipment that turns coal into a gas before burning it. This method
reduces toxic pollution and makes it easier to capture and sequester gases like
carbon dioxide under ground. Future Fuels will ship the equipment to
Pennsylvania and have Chinese engineers teach US workers how to assemble and
operate it. Small clean-energy firms are headed to China, too. NatCore
Technology of New Jersey recently discovered a way to make solar panels much
thinner, reducing the energy and toxic materials required to manufacture them.
Unable to find partners in the United States to commercialize the technology,
NatCore reached an agreement with a consortium of Chinese companies to finish
developing its invention and begin mass-producing it in Changsha. "These other
countries - China, Taiwan, Brazil - were all over us," said Chuck Provini, the
company's chief executive. President Barack Obama has often spoken about
creating clean-energy jobs in the United States. But China has shown the
political will to do so, said Pinto, 49, who is also Applied Materials'
executive vice-president for solar systems and flat-panel displays. Locally, the
Xian city government sold a 75-year land lease to Applied Materials at a deep
discount and is reimbursing the company for roughly a quarter of the lab
complex's operating costs for five years, said Gang Zou, the site's general
manager. The two labs, the first of their kind anywhere in the world, are each
bigger than two American football fields. Applied Materials continues to develop
the electronic guts of its complex machines at laboratories in the United States
and Europe. But putting all the machines together and figuring out processes to
make them work in unison will be done in Xian. The two labs, one on top of the
other, will become operational once they are fully outfitted late this year.
Applied Materials has built a 360-employee operation here in Xian after
announcing an 18-month programme last year to reduce employment by 10 to 12 per
cent, including lay-offs in the United States and Europe. Pinto said the company
was readjusting its workforce as manufacturing shifts to Asia, but that the Xian
facility involved a new approach to researching the design of an entire assembly
line and was not replacing laboratories elsewhere. Pinto is a well-known figure
in Silicon Valley in his own right. While still a doctoral student at Stanford
in the early 1980s, he wrote the first widely used two-dimensional computer
simulation of how semiconductors work. This allowed engineers to test each one
on a computer before building prototypes, shortening the semiconductor
development process. Later, he became one of the most celebrated researchers at
Bell Labs. With China's economy gaining strength, Pinto and his wife, then
living in Santa Clara, began insisting in 2005 that their sons study Putonghua
once a week. Now 10 and 11, the boys are improving their Putonghua and trying to
master the art of eating with chopsticks. Applied Materials has greater
challenges, including fighting technological theft, a chronic problem in China.
The company has taken measures, including sealing its computers' ports here, to
prevent the easy use of thumb drives to record data. Employees are not allowed
to take computers from the building without special permission, and an elaborate
system of computer passwords and electronic door keys limits access to certain
technological secrets. However, none of that changes the sense that tectonic
shifts are under way. When Xei Lina, a 26-year-old Applied Materials engineer
here, was asked recently whether China would play a big role in clean energy in
the future, she was surprised by the question. "Most of the graduate students in
China are chasing this area," she said. "Of course, China will lead everything."
Glimpses of
2010 World Expo Center
A yacht is anchored at the seaside in
Haikou, where the 2010 Haikou Yachting Industry Forum was held in the capital of
Hainan, the country's southernmost province, on Friday. In January, the State
Council asked Hainan province to work out yacht management regulations and
prepare to serve foreign yachts. Chen Ci, Party chief of Haikou, said on Friday
that the port city will take the lead in applying international practices when
formulating regulations on yachting, exit-entry management and marketing of the
recreational boats.
Ambiguous clauses in insurance policies
have been blamed for the steady rise in the number of complaints from
policyholders over the past five years. More than 500 complaints were made
against insurance companies last year, a 22 percent increase from 2008. The
Insurance Claims Bureau helped resolve 17 percent of the disputes, deciding that
the rest were either outside its terms of reference or there was not enough
evidence to pursue them. The insurance companies paid HK$3 million in
compensation after the cases were settled, with the highest award amounting to
HK$600,000. Michael Tsui Fuk-sun, chairman of the bureau's complaints panel,
said more than 100 cases involved the interpretation of clauses in medical
policies. Tsui admitted that disputes over the interpretation of policy clauses
arise because the "the policy terms are difficult to define." He said: "Many
policyholders usually mistakenly think their interpretation of the terms are
correct." Tsui advises the public to read clauses carefully and seek the help of
consultants when they take out insurance. The bureau handled 575 complaints in
2009, of which 177 were dismissed because they did not fall within its terms of
reference. Of the remaining 398, 338 were investigated while 60 were carried
forward to this year. Of those investigated, 181 did not have prima facie
evidence and 51 were withdrawn by the claimants. Forty-nine cases were mutually
settled. Many of the complaints - 159 in all - involved medical insurance.
"Medical clauses contain many terminologies. Policyholders should think twice
before they receive diagnoses which they plan to claim for insurance," Tsui
said. Patients often think all treatments their doctors suggest are necessary,
but this is not always the case, he said. Most of the disputes concern whether
diagnostic tests may be done on an outpatient or inpatient basis, and whether
policyholder admissions may be classified as an emergency. A spokesman of the
Consumer Council said insurance companies should make their policy terms
comprehensible. "Ambiguous writing will surely cause different interpretations,"
he said. "Not everyone is an expert and it is unfair to the policy holders."
MGM Mirage’s plan to exit the mature
Atlantic City market in favour of booming Macau removes a year of overhang from
the company and should clear the way for a share offering in Hong Kong by June.
MGM Mirage said it planned to give up its New Jersey gambling licence by selling
its 50 per cent stake in Borgata, its lone Atlantic city casino, after New
Jersey gambling regulators said the company’s Macau partner had links to
mainland’s organised crime. In a previously confidential report released on
Wednesday, the New Jersey Division of Gaming Enforcement said that “from the
beginning of its efforts to enter Macau, MGM (Mirage) pursued partnerships with
persons that it knew were associated with those aspects of gaming in Macau most
heavily penetrated by organised crime”. The enforcement division had previously
labelled as “unsuitable” MGM Mirage’s Macau partner, Pansy Ho, daughter of Macau
gambling tycoon Stanley Ho, whom the report said had links with mainland triad
members, citing documents from a US Senate hearing in 1992. Analysts have said
MGM Mirage’s decision to quit New Jersey should help prospects for a planned
Hong Kong IPO for its Macau unit, whose main asset is a 50-50 joint venture
casino with Pansy Ho. “It comes as no surprise that they will focus on Macau,
which is growing year on year, whereas they are seeing significant declines in
the US,” said Aaron Fischer, head of CLSA’s Asia gaming research. “The news
clears the way for MGM to be more serious about its business in Macau. The
operating performance has not been as good as expected. Hopefully, this paves
the way for a Hong Kong IPO.” MGM Mirage hopes to raise up to US$500 million as
early as the second quarter of this year, sources told Reuters in January. If
the initial public offering goes ahead, MGM Mirage, whose largest shareholder is
billionaire Kirk Kerkorian, would be the third US casino marquee name since
November to float its Macau operations on the Hong Kong stock exchange after
Wynn Macau and Sands China. MGM Mirage’s plan to sell its stake in Borgata and
give up its New Jersey gambling licence, first proposed in February, was
approved on Wednesday by state regulators. MGM Mirage chief executive Jim Murren
said in a statement: “The DGE’s (Division of Gaming Enforcement) report
acknowledges there is no evidence that Pansy Ho has engaged in any wrongdoing or
been accused of any illegal activity.” Macau’s transformation from a seedy
gambling haven into a Las Vegas-style entertainment paradise since 2002 has
meant stiff competition for the elder Ho, although he still controls one of six
gambling licences in the former Portuguese colony. Sometimes known as the
godfather of gambling, Stanley Ho, a patriarch of mixed European and Chinese
parentage, heads an extended clan of 17 children born to his four wives. The
report from the New Jersey enforcement division cites documents such as 1992
testimony at a US Senate Subcommittee hearing stating that Ho had direct
associations with known members of mainland triads. Ho denies these allegations
and hasn’t ever been charged with a crime. The report concluded that Pansy Ho’s
relationship and financial ties to her father, as well as “her associations with
persons alleged to be associated with organised crime render her susceptible to
influence by unsuitable persons.” In choosing to put its Borgata stake on the
block, MGM Mirage is going where the money is. Atlantic City, once the gaming
capital of the US eastern seaboard, has been hammered by the recession as
consumers cut spending. Revenue from its 11 casinos dived almost 16 percent in
February to US$261.6 million, hurt also by snowstorms that blanketed the
northeastern United States. In contrast, Macau gambling revenue in February was
70 per cent higher than a year earlier at about US$1.8 billion. The report also
said Las Vegas-based MGM Mirage’s conduct in pursuing and consummating the Macau
joint venture “raises concerns about its commitment to corporate regulatory
integrity”. The gaming enforcement division said MGM Mirage’s due diligence and
compliance efforts were deficient. But even as New Jersey’s verdict removes the
overhang on MGM Mirage, it is unlikely to remove challenges that still face the
company in Macau – weak market share and lack of a growth story. MGM Mirage,
which has come close to defaulting on its debt, has only one casino in Macau,
the MGM Grand Macau, and has not shed light on its expansion plans. MGM Mirage
once had plans to build a multi-tower project on 55 acres of land it owns
adjacent to the Borgata, but those plans were put on hold several years ago. The
company owns the Borgata through a 50-50 joint venture with Boyd Gaming Corp.
MGM said it would place its interest in the Borgata and related leased land in a
divestiture trust. The settlement mandates the sale of the trust property within
a 30-month period. If the company has not found a buyer within 18 months, the
trustee would then take over the sales process, having another 12 months to
conclude a deal.
TVB’s general manager Stephen Chan
Chi-wan appears at a press conference at Regal Kowloon Hotel on Thursday. It was
Chan’s first public appearance since he was arrested for an alleged corruption
case by the ICAC last week. Former TVB (SEHK: 0511) general manager Stephen Chan
Chi-wan told reporters on Thursday afternoon he was unperturbed about his arrest
by the ICAC officers last week. “Who hasn’t faced some charges in their lives at
some time,” said Chan. The 51-year-old was making his first public appearance
since his release on bail after his arrest by the Independent Commission Against
Corruption last Thursday. “If you too face some unexpected changes in your life,
then don’t be afraid, or give up,” he told more than 60 journalists and
photographers gathered at a hotel in Tsim Sha Tsui. Chan was arrested along with
Edthancy Tseng Pei-kun, his former assistant and currently an advertising and
production company director; Wilson Chan, TVB’s head of business development;
Wilson Chin Kwok-wai, a TVB executive producer; and Ning Jin, a TVB actor as
part of a corruption investigation. Chan’s lawyer said the suspected corruption
case was still under investigation by the ICAC and it had advised Chan not to
discuss it. Chan said he had not made an earlier public appearance because he
thought it might “cause chaos”. He also explained that he wore a face mask when
he was arrested because he cut himself shaving. “I did not want people to think
the cut came from ICAC,” he added. Chan, who was wearing a light suit and shirt
at the press conference, joked and smiled, saying he was trying to live as
normally as possible. “I have been going out with friends a lot since I was
released.” He also said some news reports about him were untrue, but did not
elaborate. Chan did not answer any questions at the press conference. Stephen
Chan is a well-known in Hong Kong as a manager and a television host for TVB. He
hosted the popular talk show Be My Guest, which began in 2006. Chan and others
have not been charged yet by the ICAC. 
Fung shui master Tony Chan Chun-chuen arrives at Western police station on
Thursday. Fung shui master Tony Chan Chun-chuen, who was arrested last month on
suspicion of forging a will that he claimed left him Nina Wang Yu-sum’s entire
fortune, reported back to police on Thursday afternoon. Chan was arrest on
February 3 after a judge ruled in the Court of First Instance that the will he
said was written by the late tycoon was forged. Chan was released on bail on
February 4 after 30 hours of questioning by police. His bail was set at HK$5
million and he must report back to police periodically. Chan was at Western
Police Station for less than 10 minutes before leaving the station shortly
before 3pm. He left in his own car and did not talk to journalists waiting
outside the station. A police spokeswoman said Chan must report back to police
in early June. 
The government may consider
scrapping an almost 40-year-old policy that restricts development in Mid-Levels
after the MTR's West Island Line opens in 2014. The move could bring bigger
developments that increase housing density and make the area's traffic jams
worse. Removing the so-called Mid-Levels moratorium, introduced in 1972 to limit
traffic flow to the hilly area - which nevertheless has become highly congested
- would allow bigger blocks to be built on 28 sites coming up for redevelopment.
According to a document submitted by the Transport and Housing Bureau to the
Central and Western District Council for discussion today, removing the
moratorium would only add 250 flats to the 32,080 projected for the area by
2021. This suggests the impact of the move on traffic flows would be limited.
Officials predict that morning peak-hour traffic will grow by 11 per cent by
2021 with the projected home construction, and by 11.74 per cent if the
moratorium is lifted. But a district councillor and a lawmaker believe its
assumption that the number of flats in the area will only grow by 2,080 - or 7
per cent - in the next 11 years is unrealistic. The area has 30,000 flats now.
Officials expect the opening of the MTR line to take one in 12 vehicles off the
roads around Sai Ying Pun, the University of Hong Kong and Kennedy Town. They
also point to road improvement works and plans to build two more escalators -
one connecting East Conduit Road to the Sheung Wan MTR station via Seymour Road
and Ladder Street, the other between West Conduit Road and the new Sai Ying Pun
MTR station via Lyttelton and Bonham roads. Like the existing Mid-Levels
escalator, they would carry people downhill in the morning and uphill the rest
of the day. Officials believe the escalators would encourage people who now
drive to work to take the escalators. The findings are contained in a review the
government commissioned on the Mid-Levels Moratorium two years ago after the
Ombudsman criticised the policy as ill-conceived and poorly planned. The study
was meant to show whether the policy was useful in easing Mid-Levels' traffic
problems and whether it should be supplemented, strengthened or replaced.
Drivers suspected to be "high" behind the wheel could face police drug tests
under a proposal to be put out for public consultation later this year.
Secretary for Transport and Housing Eva Cheng Yu-wah says her department is
studying overseas models to find out how to check on drivers under the influence
of drugs. "We are studying how to empower the police to collect evidence to
check whether drivers have taken drugs. "Under the current ordinance, police do
not have the authority to ask for a sample from drivers," Cheng said. She added
that because of the number of different drugs is available, and individual
reactions to them, it is difficult to ascertain the effects on driving behavior.
"The task of formulating guidelines on the drugs that a driver must not take
while driving, or before driving, and setting the relevant standards is highly
complex," Cheng said. But she said the administration could come up with a
proposal for public consultation in mid-2010 after studying the examples in
Britain and Australia. She said Australian drivers undergo a saliva test when
necessary, but the problem is its failure to detect ketamine, which is common in
Hong Kong. British motorists are asked to submit to a behavioral test, such as
walking a straight line, and they would be required to provide blood samples if
they failed that test. According to the SAR's Road Traffic Ordinance, it is an
offense for a person to drive, attempt to drive, or be in charge of a motor
vehicle on the road under the influence of alcohol or drugs, to an extent that
the driver is incapable of having proper control of the motor vehicle. As for
the problem of sick people having an attack when driving, Cheng said the cases
of traffic accidents involving professional drivers suffering from illness while
driving saw no noticeable rise in the past five years. Earlier this month, one
person was killed and another five seriously injured in Ma On Sha when a minibus
whose driver was believed to have suffered an epileptic fit ploughed into a
queue at a bus stop. 
The Time magazine has shown
special interest in covering China since it's first issue published on March 3,
1923. One of Time's initiators, Henry Robinson Luce, was born and grew up in
east China's Shandong Province. During his administration, he exerted great
influence on its focus on China. This tendency lasts till today with the
magazine's Asian edition in particular taking closer looks at the diverse facets
of Chinese culture and frontpaging more than one showbiz stars.
China Mobile reported its best quarterly
profit in a year, beating expectations for little growth, as customers began
spending more on value-added services.
US ambassador to China Jon Huntsman
talks to reporters during a meeting with students at Tsinghua University in
Beijing on Thursday. China faces important negotiations over its exchange rate
in coming weeks, the US ambassador to China said on Thursday, adding that it was
not just the United States that wanted action on the yuan. The currency debate
has become increasingly acrimonious, with US lawmakers and quite a few
economists saying Beijing holds the yuan so low that Chinese goods enjoy an
artificial competitive edge that is distorting the global economy. A semiannual
US treasury report due in mid-April could label China a “currency manipulator”,
triggering greater pressure on Beijing. “We need to show real progress this year
in creating new jobs and rebalancing our relationship,” Huntsman told an
audience of students at Tsinghua University, an elite school in Beijing. “We
hope to see more flexibility on the exchange rate,” Huntsman said, adding that
Washington also hoped to see China lean more on domestic consumption to drive
its growth. “I suspect there will be many important negotiations in the weeks
ahead,” he said in response to a question from a student on the exchange rate
issue. “The negotiations ahead will be very, very important.” “This isn’t just
an American issue,” he added. “There are many countries that feel the same way.”
A bipartisan bill introduced in the US Senate on Tuesday aims to press Beijing
to let the yuan rise, threatening a deepening rift between the world’s biggest
and third biggest economies. Mainland officials have given no ground, saying
they will not waver in sticking to a stable exchange rate while asserting that
their nation is being made a “scapegoat” for the United States’ own economic
woes ahead of Congressional mid-term elections. Beijing says its stable yuan has
been a boon to global economic recovery. The rising currency friction has come
after two months of quarrels between Beijing and Washington over human rights,
China’s restrictions on the internet, US arms sales to Taiwan, and President
Barack Obama’s meeting with the Dalai Lama. Huntsman said he was confident that
Beijing and Washington could overcome those bilateral strains to focus on
solving broader global worries, including the economy, climate change and Iran’s
disputed nuclear program. “This year we’re putting the relationship to the test
in trying to take it to a new level”, he said. “Differences on Taiwan and Tibet
cannot prevent us from working together.”
Wal-Mart looking to sell China's yuan
bonds - Wal-Mart Stores is mulling selling yuan bonds in Hong Kong, the world’s
largest retailer’s Asia Chief Executive Scott Price told Bloomberg. The retailer
is looking at options and such a move would underscore the company’s commitment
to support local communities and mainland’s financial system, Price told the
agency in an interview. Wal-Mart could be the first foreign non-financial
company to issue yuan debt in Hong Kong, according to the agency. The Hong Kong
Monetary Authority has announced measures that broaden the kind of yuan business
that is possible to do in Hong Kong, according to IFR Asia, a Thomson Reuters
publication. Non-Chinese non-financial entities are now allowed to issue yuan
bonds and tap yuan loans from domestic banks in Hong Kong so long as the funds
raised do not flow back to the mainland and provided proceeds do not fund
investments in shares, IFR said in its February 20 issue. So far, 38 billion
yuan (HK$43 billion) worth of bonds have been issued in Hong Kong, including
transactions from the central Ministry of Finance and from locally incorporated
foreign banks, Bank of East Asia (SEHK: 0023) and HSBC (SEHK: 0005,
announcements, news) , IFR said. As the US economy improves, more of the
shoppers who flocked to Wal-Mart to save money during the recession are moving
back to the stores they frequented before, according to a survey by America’s
Research Group. Wal-Mart could not be immediately reached for comment.
Two residents in Guangzhou,
Guangdong province, walk beside an advertisement promoting sorting waste on
Sunday. Wuxi, a city in Jiangsu province, has vowed to continue its efforts to
clean up Taihu Lake and become China's first ecologically sound city this year.
China's first home-made large
civil helicopter makes test flight
Alex Law (left),
director of Echoes of the Rainbow, producer Mabel Cheung Yuen-ting, and stars
Sandra Ng Kwan-yu and Simon Yam Tat-wah visit Wing Lee Street yesterday. The
film, which was set in the street, stirred great public interest in the
neglected corner of Sheung Wan. The decision to save all 12 tenement buildings
in Wing Lee Street from demolition won applause from conservationists yesterday
but upset tenants who want public flats and owners seeking more compensation.
Under the original plan submitted for Town Planning Board approval on Friday,
only three of the 12 tenements would be preserved. Public opposition to the plan
intensified after a film shot on the street won an award at the Berlin Film
Festival last month. The board received more than 500 objections from members of
the public. If board members do not support the original plan on Friday, the
board will be asked to consider the alternative proposal announced yesterday.
The alternative proposal excludes Wing Lee Street from the redevelopment
boundary that originally covered three sites, including Staunton Street and
Shing Wong Street. The street will be zoned as a conservation area to prevent
redevelopment. The authority, having acquired half of the 24 property interests
in Wing Lee Street, will stop approaching owners for acquisition if the
alternative plan is adopted. Owners will be asked to preserve and refurbish all
12 tenements, of which three are now owned by the authority. Under an existing
voluntary restoration scheme for tenements, owners who cannot afford the
renovation costs will be subsidised to refurbish the building's exterior, and
they can borrow up to HK$300,000 to maintain common areas. The renovation cost
is estimated at HK$500 to HK$3,000 per sq ft, depending on the condition of the
building.
Taiwanese snack tycoon Tsai
Eng-meng has filed an injunction to prevent major ATV shareholder Payson Cha Mou-sing
and others from conducting a transaction involving the station's shares and a
"substantial" amount of money. The transaction, details of which are unclear,
was alluded to in the Court of First Instance, where San Want Media Holdings,
wholly owned by Tsai, has filed a lawsuit against Cha, his brother, Johnson Cha
Mou-daid, the station's director Peter Brown, and Antenna Investment, which has
a stake in the station. Godfrey Lam Wan-ho, SC, representing the defendants,
said yesterday that the potential loss his clients would incur should the court
allow the injunction was much higher than Tsai's lawyers had described. Mr
Justice Aarif Barma agreed that the combined value involved in the transaction
was substantial. He ordered Tsai to pay HK$25 million in fortification for the
potential loss that Cha could suffer from the injunction. Fortification refers
to the amount that must be committed to pay damages to a party should they
suffer a loss as the result of an injunction, if it turns out the injunction
should not have been ordered. The court has yet to decide whether to grant it.
Barma raised the fortification amount by HK$20 million from an initial HK$5
million that he had ordered previously, after assessing additional information
about the transaction that Cha's lawyers handed to the court. San Want has until
tomorrow to hand over the HK$5 million and a week from yesterday to hand over
the HK$20 million. San Want filed a statement of claim in the court two weeks
ago alleging the Cha brothers had breached their fiduciary duty by backing the
issue of convertible bonds that could be exchanged for ATV shares priced below
the minimum that a shareholders' agreement allowed. The writ named the brothers,
Brown, and Antenna Investment as defendants. Yesterday's session was a
preliminary hearing on San Want's application for the injunction against the
transaction. The court will hear arguments on whether to grant the injunction on
April 8. Meanwhile, Shenzhen property tycoon Wang Zheng, to whom Cha has agreed
to sell his ATV stake, continued his role as a special volunteer yesterday by
attending meetings at the broadcaster's headquarters in Tai Po. He met staff
handling various productions, including the Hong Kong Top 10 Loving Hearts
Selection Campaign, which was his idea, Mr Asia Contest and Miss Asia Pageant,
ATV's special projects and public relations vice-president Ip Ka-po said. Ip
said Wang had been trying to get advertising clients for these events. "He's
still working as a volunteer and he's very enthusiastic." However, Tsai's camp
was not impressed by Wang, who has vowed to turn ATV into Asia's CNN. A person
from Tsai's camp challenged Wang's role. "He doesn't have a position, he's not a
director of the board and he's not even an investor. He doesn't own even one
share of ATV." 
Analysts are divided over whether a mismatch between soaring property prices and
stuttering economic growth should be ringing alarm bells for homebuyers in Hong
Kong. While Hong Kong property prices have soared to the second highest in the
world, growth in the city's gross domestic product has fallen to the second
lowest of 13 countries in the region over the last decade. "A slow GDP growth
represents a mild growth in our underlying economy and personal income. How can
it support a sharp increase in property prices?" David Ng, head of regional
property research at The Royal Bank of Scotland, said. But some investors and
property analyst Eric Wong Chun-yu of UBS disagree. "Historic GDP growth may
have been low. But that is history," Wong, joint head of Asia property research
at UBS, said. Fuelled by a strong GDP growth forecast this year, growth in
wages, and sustained high liquidity, he expects property prices will surge by 35
per cent by the end of 2011. Research by the Royal Bank of Scotland and CEIC
Data Company shows that Hong Kong's GDP grew at a compound annual rate of 2.6
per cent between 1999 and 2009, joint second last in the region with Taiwan.
Japan was ranked last with a negative annual growth in GDP of 0.5 per cent.
Beijing and Shanghai recorded compound annual growth rates in their economies of
16.1 and 14 per cent respectively over the 10 years ended 2009, to be ranked the
second and fourth fastest-growing economies. Fastest was Indonesia at 16.5 per
cent. But even though Hong Kong's economic growth was poorer than the other
Asian cities, growth in domestic property prices has outstripped all the other
cities. Data from online property research house, Global Property Guide, show
that the current price of a 120 square metre apartment was US$15,424 per square
metre in Hong Kong. Singapore was ranked the fifth most expensive at US$10,723
per square metre - but unlike Hong Kong that ranking was supported by compound
annual growth in the city's economy over the decade of 6.3 per cent. And despite
ongoing modest economic growth in Hong Kong (2.6 per cent in the fourth quarter
of 2009 and forecast to grow between 4 and 5 per cent in 2010), the Centa-City
leading index of mass residential prices was up 6.6 per cent in the first two
months of this year, following an increase of 35 per cent in 2009. The growth in
property prices has been fuelled by an influx of liquidity and resulting low
interest rates, as well as strong mainland buyer demand and has exceeded the
best expectations of analysts such as Ng. Middle-class upgraders were key demand
drivers in the market, he said. But they had not enjoyed substantial growth in
income over the past few years, which put most 1,000 sq ft units in Hong Kong
Island out of their budgets. "If they are not bullish on their income growth,
how can they be bullish on the property market?" Ng asked. Ng owns a single flat
in West Kowloon's Olympic Station area, which he bought in 2007. "The price of
my flat has jumped 40 per cent already. Much higher than the wage growth. I may
not have been able to afford it if I had tried to buy it now. "Our economy is
still relying on the financial and property sectors and lacks a new driver. It
will not be easy to find a solution in the short-term," Ng said. But veteran
investor Lai Ni-jan holds a more optimistic view of the outlook. Lai bought
three units at Henderson Land (SEHK: 0012)'s Hill Paramount in Sha Tin last week
at a total investment cost of HK$60 million. The developer offered a 5 per cent
discount and will pay Lai's stamp duty. Explaining his confidence about making a
capital gain from his investments, Lai said developer Cheung Kong (SEHK: 0001)
would soon be launching its Festival City in the area at a price of HK$10,000
per sq ft. "That will boost the capital value of my flats at Hill Paramount," he
said. He expected property prices to rise by 15 to 20 per cent this year.
"Property prices will still be affordable even if the mortgage rate rises to 5
per cent from the existing 3.5 per cent. The mortgage rate was more than 10 per
cent in 1997," Lai said. The biggest risk to this outlook, he said, was if there
was a sharp rise in mortgage rates. The risk of such an event was low, however,
according to Wong. "The global economic outlook remains uncertain. Interest
rates will not rise as much as some in the market expect this year," said Wong,
who remains bullish on the property market. Fuelled by a strong GDP growth
forecast this year, growth in wages, and sustained high liquidity, he expects
property prices to surge 35 per cent by the end of 2011. Last month, Financial
Secretary John Tsang Chun-wah forecast Hong Kong's GDP growth would reach 4 to 5
per cent this year. The city's GDP was negative at 2.7 per cent in 2009. 
Senator Sherrod Brown (second from
right), speaks during a news conference on Capitol Hill in Washington overnight
on Tuesday to discuss new legislation calling to penalise China for 'currency
manipulation'. From left are, Senators Charles Schumer, Sam Brownback, Debbie
Stabenow and Lindsey Graham. Members of the US Congress overnight on Tuesday
threatened Beijing with duties on some of its exports if it fails to revalue its
currency, putting pressure on the Obama administration to label mainland a
currency manipulator. A bipartisan bill introduced in the US Senate merges
previous legislative efforts to press mainland to change policies that critics
say keep its yuan currency cheap, effectively subsidising exports and taxing
competing imports. “When there’s a 20 per cent or 30 per cent undervaluation
that reduces the price of a product coming in, that’s not fair. That’s
cheating,” Democratic Senator Debbie Stabenow, a co-sponsor of the legislation,
told a news conference. “If they’re not going to do it, we’re going to force
them,” Republican Senator Sam Brownback added. The bill, a rare show of
bipartisan accord, reflects widespread concern about high US unemployment. It
follows two days after Premier Wen Jiabao dismissed US complaints about
mainland’s exchange-rate policy as protectionist. It also is likely to weigh on
the Obama administration’s deliberations whether to label mainland a currency
manipulator in a semiannual Treasury Department report due on April 15. In the
background is the realisation that mainland is a major holder of US debt. Many
US lawmakers, with strong backing from economists, believe the yuan is
undervalued by 25 per cent to 50 per cent, giving mainland companies an unfair
price advantage in trade – a situation seen as more acute now that the US
economy is struggling to recover from the worst downturn since the 1930s. US
Treasury Secretary Timothy Geithner, asked on Fox Business Television about the
legislation, said it illustrated “how strong people feel about this, and it’s
understandable and it’s true in countries around the world. “I think ultimately
they’re going to decide over time it’s in their interest to move to a more
flexible exchange rate,” Geithner added. White House Spokesman Robert Gibbs said
Obama “wished and hoped that China approached the currency using a more
market-based interpretation”. A US Treasury official added: “The rebound of
China’s economic growth and exports and their continued large-scale reserve
accumulation indicate clearly that China should resume appreciation of the RMB.”
However, Dan Ikenson, a trade policy analyst at the Cato Institute, said he
feared the legislation could inflame relations with mainland without
accomplishing the lawmakers’ goal of reducing US imports from that country. He
noted that when the yuan rose 21 per cent in value between July 2005 and July
2008, the US trade deficit with mainland actually increased from US$202 billion
to US$268 billion. Nick Bennenbroek, head of forex strategy at Wells Fargo in
New York, called the lawmakers’ move counterproductive. “When China gets
international pressure to adjust its currency policy, it seems to resist that
pressure. It doesn’t like to be pushed around,” he said. Intervention proposed -
The legislation was crafted by Senators Charles Schumer, a Democrat, and Lindsey
Graham, a Republican. The two got 67 Senate votes in 2005 for a bill threatening
to put a 27.5 per cent tariff on all mainland goods. “This is a good coalition
to make something happen in the Senate, and I hope our colleagues in the House
will follow,” said Graham. Senate Majority Leader Harry Reid said the bill was
“something that committees with jurisdiction should take a look at”. The bill
would require the US Treasury Department to identify countries with
fundamentally misaligned currencies each September and March. The proposed
legislation would authorise the Commerce Department to include currency
misalignment in its calculation of anti-dumping duties on specific products if a
targeted country has not begun steps within 90 days to realign its currency. It
also requires the Department to investigate if currency manipulation is a
subsidy that warrants additional “countervailing duties”. It ratchets up
pressure by instructing the US Trade Representative to initiate action at the
World Trade Organisation against any country that has not taken steps within 360
days to realign its currency. The bill also would require the Treasury
Department to consult with the Federal Reserve and other central banks to
consider remedial intervention in currency markets if a targeted country has not
acted after a year.
Chongqing's police chief yesterday
confirmed a major shake-up of the municipality's scandal-ridden police force.
All mid-level management positions will be declared vacant and the posts filled
through open recruitment. In another sign of the widespread corruption plaguing
the force, the decorated deputy captain of Chongqing's police narcotics team,
Luo Li, has been revealed to be a corrupt drug lord, China Broadcasting Net
reported yesterday. Insiders said the storm stirred up by the municipality's
controversial anti-triad crackdown, launched in June, appeared far from over,
despite signs to the contrary last month when a party meeting announced that
3,348 people had been arrested for "connections with underground activities" and
handed out People's Hero awards to individuals who contributed to the crackdown.
The major management shake-up in the municipality's police force was first
leaked by China Broadcasting Net yesterday. It quoted a confidential, internal
document as decreeing that all police cadres in leadership roles, from
vice-section heads to vice-bureau heads, were required to "step down from their
positions and reapply through open recruitment". Police chief Wang Lijun - a
triad-buster parachuted in from Liaoning in July 2008 - disputed the report in a
radio interview later in the day, saying the changes were not as widespread as
reported and only applied to cadres in leadership roles up to department head
(one administrative level below bureau), all of whom had been in their positions
for more than six years. Requiring cadres who reach the end of their term of
office to re-apply through open recruitment is becoming a trend in mainland
government departments but such a massive change of blood is rare. Wang said
applications would be vetted more strictly than before, with assessments no
longer based on capability alone, but also considering "political quality".
President Hu Jintao is very likely to attend next month's nuclear summit in the
US despite renewed friction with Washington over its criticism of Beijing's
currency settings. Beijing has been tight-lipped amid speculation about whether
Chinese leaders will attend the two-day summit, called by US President Barack
Obama. But analysts say Beijing will not miss such an important meeting and
information released by state media shows that Hu is the person most likely to
represent the country at the talks. A Brazilian diplomat said that his
government expected Hu to attend the second BRIC summit in Brasilia on April 15
or 16. "President Hu is also expected to be paying a state visit to Brazil,
probably before the BRIC summit." The summit in Brazil - between the four
emerging powers, China, Brazil, Russia and India - will take place immediately
after the April 12 to 13 nuclear security summit in the United States, adding to
the likelihood of Hu's attendance. Media reports have also suggested that other
Chinese leaders will be occupied by official visits elsewhere late this month
and early next month. Indonesian Foreign Ministry spokesman Teuku Faizasyah said
last week that Premier Wen Jiabao would make his first trip to the Southeast
Asian country around the third week of April. Xinhua reported yesterday that
Vice-President Xi Jinping would be visiting Russia and four European countries
between March 20 and 30. This would reduce the chances of Xi going to Washington
because it is rare for state leaders to make two major trips in the space of
just two weeks. Despite recent tensions in Sino-US relations, mainland analysts
said China was likely to attend the nuclear summit, where world leaders will
discuss steps to prevent nuclear expansion and terrorism. However, some said it
would undermine China's self-esteem if a leader went to Washington after the US
administration sold arms to Taiwan and hosted Tibetan spiritual leader the Dalai
Lama at the White House. Niu Jun , a professor of international relations at
Peking University, said the nuclear summit was a multilateral meeting and should
not be considered a Sino-US affair. "It's such a big event, it will do China no
good if it does not attend," Niu said. "China will have to get its voice heard
at the summit." Hu agreed to pay a state visit to the US during Obama's visit to
China in November. But Sun Zhe , from Tsinghua University, said that even if Hu
did attend the nuclear summit, a state visit to the US would not take place in
the first half of the year. China is under increasing pressure to help pass a
fresh round of sanctions on Iran. But officials have repeatedly said that
sanctions would not settle the nuclear issue in Iran fundamentally, and
suggested diplomatic negotiation. The timing of the nuclear summit is tricky for
China because Hu would be likely to leave Washington with renewed criticism of
currency policy. The US Treasury Department will release its semi-annual report
to Congress on international currency policies on April 15. A group of 130
American lawmakers sent a letter to Treasury Secretary Timothy Geithner and
Commerce Secretary Gary Locke on Monday, urging the US government to single out
the Chinese currency issue in the report. Commerce ministry spokesman Yao Jian
said yesterday the valuation of the yuan was not the reason for China's trade
surplus. "It would be unfounded and meaningless for some people in the US to
back their calls [for China to be labelled a currency manipulator] by citing
China's trade surplus and the US deficit and US recovery needs," Yao said. "The
United States ... cannot ask others to [revalue] their currency for the sake of
its own export expansion - that would be an egotistical practice."
The Urban Renewal Authority announced
on Tuesday it would scrap its plans to redevelop Wing Lee Street in Sheung Wan
and preserve the street in its existing form instead.
Shenzhen entrepreneur Wang Zheng says ATV
should represent the spirit and values of Hong Kong. His acquisition of the
majority stake in the broadcaster is yet to be completed. Struggling ATV aims to
be not just Asia's CNN but the conscience of Hong Kong, as a terrestrial
broadcaster with a Putonghua channel carried nationwide, according to a master
plan announced yesterday. Shenzhen property tycoon Wang Zheng unveiled the plan
in his first appearance at ATV's headquarters in Tai Po since its major
shareholder, Payson Cha Mou-sing, confirmed he had agreed to sell his stake to
Wang earlier this month. Wang also said four new directors - all of them his
relatives - had been added to the ATV board, but he would not say who they
replaced. He was at ATV for the media briefing of a new event which he
masterminded, the Hong Kong Top 10 Loving Hearts Selection Campaign. Wang said
the transaction for his stake purchase had yet to be completed but he was
working as a "volunteer" at ATV, without a proper office, and had mapped out the
firm's long- and mid-term goals. He said the ultimate aim was to turn ATV into
Asia's CNN, so that those interested in Asia worldwide would watch ATV every
day. But in the medium term, Wang pitched ATV as the voice of Hong Kong,
representing the spirit and values of the city. He recalled the kindness of
strangers when he came to Hong Kong 19 years ago on a monthly salary of
HK$5,000. At that time he met Lim Por-yen, whose family was ATV's biggest
investor in the 1990s. "Whenever Lim talked about ATV, he always said 'ai ya'.
He lost HK$700 million from running ATV. He said he had never lost so much
money," Wang said. Wang admired Lim's work ethic, noting that he would jog and
read the newspaper at the same time. "Perhaps this could be the Hong Kong
spirit," he said. But Lim's losses did not dampen Wang's enthusiasm for the
television industry. Money was widely thought to be ATV's problem, but Wang said
there was more to the broadcaster's troubles. "ATV needs to find its new
direction. It's the development direction and method that matter," Wang said.
"And also talent." He said ATV should launch a Putonghua channel, noting that TV
stations in Hong Kong and Macau were allowed to make one channel available
nationwide via the cable network and that TVB (SEHK: 0511), Phoenix and Star all
had nationwide channels. "What about ATV? Why don't we have such channels?" he
said. "ATV's only problem is that we still do not have a Putonghua channel -
years after the handover. Now, at least one-third of the population can speak or
understand Putonghua. It is a must to have a Putonghua channel." Wang also
insisted the strategic deals signed by ATV in Beijing last week with five
mainland firms - China Life (SEHK: 2628, announcements, news) Insurance, China
Merchants, China Overseas Group, Bank of Beijing and GDH - did not have
political implications. "They are all my friends, mentors and teachers," he
said. "At the beginning they were really worried [about the ATV investment], but
later on they began to understand and felt they should show some support." But
Wang declined to comment on when his stake purchase would go through, or the war
of words between shareholders Cha and Tsai Eng-meng. He would not comment on
today's hearing of Tsai's application for an interim injunction against Cha and
other parties. Ip Ka-po, ATV's special projects and public relations
vice-president, said ATV would put out guidelines to prevent corruption after
TVB general manager Stephen Chan Chi-wan and others were arrested by
graftbusters. 
A controversial law
that facilitates redevelopment of old buildings by private developers is likely
to be passed tomorrow with the majority of lawmakers indicating support,
although others are making an attempt to defer the measure's effective date by a
year. Lawmakers from the pan-democratic camp and independent Regina Ip Lau
Suk-yee have indicated they would propose amendments to the government proposal,
which would allow developers to seek compulsory sale of a building after
acquiring 80 per cent of the property interests in it, down from the present 90
per cent. Among the several amendment items, Secretary for Development Carrie
Lam Cheng Yuet-ngor said only deferral of the law's effective date by a year
would be acceptable. Speaking on a radio programme, the minister rejected
criticism that the proposed law would rob people of their property: "It's a
situation of the majority versus the minority, instead of a developer acting
against the minority owners," she said. If the law failed to pass, it would not
be tabled again in the remainder of her term, she added. Democrat legislator
James To Kun-sun said the government should hold off on the measure until a
mediation mechanism to settle disputes over acquisition prices - which the
government had agreed to explore - was in place. His party would also propose
restricting the measure to industrial blocks, confining affected buildings to
those with a repair order, and mandatory mediation between property owners and
developers before a compulsory sale was considered. The measure, to be
introduced under the existing Land (Compulsory Sale for Redevelopment)
Ordinance, would in its present format be confined to three types of buildings:
those with all units but one acquired; any blocks older than 50 years; and
industrial blocks outside industrial zones that are older than 30 years. In the
past few months, several homeowners forced to sell their flats under the
existing law have come out in protest, saying they were not happy with the sale
price determined by the Lands Tribunal. Hong Kong Institute of Surveyors
spokesman Dr Lawrence Poon Wing-cheung said auction prices determined by the
tribunal in past cases were reasonable as owners received compensation
equivalent to about 2.5 times the value of their property, on average. "I don't
think the majority owners would sell their flats to the developer if the price
was too low," Poon said, adding that an independent surveyor looked at each
case. He said a lower threshold would affect the interests of investors as their
bargaining power would be weakened. A total of 21 compulsory sale orders were
issued and one case has been dismissed since the ordinance came into effect in
1999. Most owners were paid at least double their property's value, except those
in Tai Yuen Street and McGregor Street during the financial crisis in early
2009. The highest compensation went to owners of Chun Fai Terrace on Tai Hang
Road, who were paid six times their property values in 2007. The law will take
effect on April 1 if the proposed amendments fail to win majority support in
Legco. The Democratic Alliance for the Betterment and Progress of Hong Kong,
Liberal Party, Professional Forum and Economic Synergy support the government
proposal. The Federation of Trade Unions and non-affiliated legislators such as
Samson Tam Wai-ho and Paul Tse Wai-chun said they had not decided whether to
support the move for a one-year deferral.
Chinese Premier Wen Jiabao
(R) meets with British Foreign Secretary David Miliband in Beijing, capital of
China, March 16, 2010. China and Britain Tuesday pledged to make joint efforts
to promote free trade and oppose protectionism. "China and Britain should keep
alert to trade protectionism and work together to oppose it," said Premier Wen
Jiabao in a meeting with British Foreign Secretary David Miliband, according to
a press release from China's Foreign Ministry. "Britain upholds free trade, and
believes pressure should not be put on China regarding its currency," the press
release quoted Miliband as saying. Western countries have accused China of
manipulating its currency. Wen pledged to keep the yuan stable at an appropriate
and balanced level after the conclusion of the annual parliamentary session on
Sunday. Wen told Miliband China was firmly committed to reciprocal opening-up,
and imports and foreign investment were increasing, according to the press
release. "We welcome British and other enterprises investing in China, and will
offer favorable conditions for them," Wen said.
Passengers and airport workers walk
through the boarding hall at Hongqiao Airport's new second terminal in Shanghai
on Tuesday. Shanghai inaugurated a massive new airport terminal and transport
hub on Tuesday meant to help the city handle the 70 million or more visitors it
expects to attend the upcoming World Expo. The new Hongqiao terminal is part of
a sweeping upgrade of the transport system for Shanghai, a city of about 20
million people. Hongqiao Airport’s new second terminal, located west of the
current terminal building, will handle almost all domestic flights from the
airport, though some charter and international flights will still use the older
facility. Last year, Hongqiao handled 25 million passengers. The 15.3 billion
yuan (US$2.2 billion) expansion will raise its capacity to 40 million
passengers. The hub, which will connect directly to the country’s railway and
subway systems, will have a daily capacity of 1.1 million, the government says.
Shanghai’s larger, newer international airport in Pudong, on the opposite side
of the city, handles most of the city’s international flights as well as many
domestic routes. The Expo, which begins May 1 and will run for six months, may
attract as many as 800,000 visitors a day at peak times, stretching even the new
transport systems to their limits. Almost all are expected to be mainland
tourists, many of them travelling from the densely populated Yangtze River Delta
region that surrounds Shanghai. The smaller, older terminal operated at about
three times its intended capacity, but was managed very efficiently. A passenger
could often arrive, check in and be on a plane in a half an hour or less. The
new, bigger terminal will require walks of nearly 20 minutes from security for
some of its most distant gates, but will have 80 check-in counters and 47
security gates for fast service, officials say. 
The US pavilion will
handle up to 2,500 people an hour. For millions of Chinese, the US pavilion at
the Shanghai World Expo will be the closest they will ever come to an getting
experience of America. What they will get - apart from long waits - is a warm
welcome and a dose of Hollywood-style entertainment. The expo, which begins on
May 1 and is expected to draw up to 80 million visitors, offers a chance for
cultural diplomacy at a time when relations are fraying over broader trade and
geopolitical issues. It's "the single biggest opportunity to nation-brand that's
ever come along", says Greg Lombardo, director at BRC Imagination Arts, the
Californian firm designing and producing the US pavilion programme at the expo.
"When was the last time the United States got to talk directly and intimately to
millions of Chinese? We look at this as a chance to convey the story of the US
in a way that's going to be very memorable and very positive." A taste of
Hollywood and theme park razzle-dazzle would probably not hurt at a time when
US-China ties are strained over US arms sales to Taiwan, President Barack
Obama's meeting with the Dalai Lama, trade issues and China's handling of the
Iran nuclear issue. Never mind all that. At Shanghai's big party, the emphasis
will be on goodwill, those involved say. "This is a bright spot in US-China
relations. We have a shared goal. We both want a successful expo and a
successful US pavilion," Beatrice Camp, US consul general in Shanghai, said. For
Shanghai, the expo offers the opportunity for a massive facelift that will help
the city showcase China's dramatic progress - much as Beijing did for the 2008
Olympics. Less than a year ago, it was uncertain whether there would even be a
US pavilion, as the non-profit group authorised by the State Department to
handle the national exhibit struggled to woo recession-stricken corporate
sponsors. With practically every other country and international organisation
planning some kind of expo pavilion or exhibit, Chinese officials were emphatic
that America's absence would be taken poorly. As deadlines came and went, they
went ahead and did ground work on the site to ensure it would be usable, come
what may. Now, efforts in Shanghai are focused just on ensuring the pavilion
will open on time, said Jose Villarreal, who is serving as the US commissioner
general of the US pavilion. All but US$8 million of the US$61 million needed to
build and run the 60,000 square foot US pavilion is secured, Villarreal said.
With US Secretary of State Hillary Rodham Clinton's support, a raft of major
sponsors have come on board: Wal-Mart, PepsiCo, Microsoft, Johnson & Johnson,
General Electric - several dozen big-name multinational companies whose backing
wins them space on the pavilion's "honour wall", use of its VIP visitors centre
and an exhibit in the hall visitors will walk through as they leave the
pavilion. For the sponsors, the expo offers one of the biggest mass marketing
opportunities ever in China - and one of the biggest challenges. With up to
800,000 people expected at the expo each day, exhibits like the China and US
pavilions will only be able to accommodate some of the total number of visitors.
China's pavilion, expected to be the top draw, will allow in about 50,000
visitors a day. The US pavilion - a mammoth grey steel structure meant to
resemble an eagle stretching its wings in welcome - is designed to handle up to
2,500 people an hour. Even so, waits of up to five hours are expected at some of
the most popular pavilions. The pavilion's 45-minute show begins with the Spirit
of America, a video montage of classic American landscapes, greetings in Chinese
by Americans and celebrities and messages from Clinton and Obama. Guests next
move to a theatre where, seated on benches, they will see The Garden - the story
of a 10-year-old girl who envisages turning a vacant city lot into an urban
oasis and, overcoming hardships, works with her neighbours to make that happen.
With relations as strained as they are now, it is a good thing the US will at
least be there, says Ding Xinghao, director of the Shanghai Institute of
American Studies. "The expo will be a good way for the US to sell goods and
advanced technology or designs to the world, but it's not a short-cut for
resolving other issues."
A co-founder of micro networking website Twitter said on Tuesday that the site
is working on a way to allow Chinese users to sign up to the network in their
own language. Twitter is working on a way to allow Chinese users to sign up to
the social networking site in their own language, a co-founder of the site said
overnight on Monday, but access to the popular site remains blocked in mainland.
Jack Dorsey said at a panel that Twitter is “hard at work” on allowing Chinese
users to register in their own language. Dorsey was responding to a question
from mainland avant-garde artist Ai Weiwei. Ai has been an outspoken critic of
Beijing authorities and their continuing efforts to impose censorship. He said
he spends about eight hours a day on Twitter. “I need a clear answer, yes or
no?” he said to Dorsey, who joined the conversation via satellite. “Yes, it’s
just a matter of time,” Dorsey responded, citing limited staff and technical
constraints as challenges for setting up such a registration page. Dorsey, Ai
and Richard MacManus, founder of technology blog ReadWriteWeb, were part of a
discussion on digital activism at the Paley Centre for Media. People from all
over the world also participated via Twitter, with their tweets displayed on a
large screen behind the panelists. The conversation came only a couple of days
after it was reported that Google was “99.9 per cent sure” to close its search
engine in mainland because of stalled negotiations over censorship. Google has
about 35 per cent of the mainland search market. The panelists praised the
decision, calling it courageous and inspiring. Ai said he wants Putonghua
translation on Twitter so users who are able to get past the firewall can read
tweets. Since it was founded in 2006, Twitter has emerged as a tool for digital
activism in messages of no more than 140 characters. Ai has used it to demand
answers about the number of young children who were killed in the Sichuan
earthquake. Last April, protesters in Moldova used Twitter when mobile phones
and news television stations went down, rallying as many as 10,000 people to one
demonstration. And tech-savvy Iranians turned to Twitter to protest the disputed
presidential election. Dorsey said he has no idea how Twitter would get around
the firewall. He admitted he didn’t know the site was blocked in the country
until three weeks ago when he was prepping for the event. When asked whether he
would give user information to the mainland government, he said he hoped the
company could work with the US government to make sure that doesn’t happen.
“Step one is translation, getting the site accessible in a Chinese version,”
said Dorsey. “That’s something the company is really pushing to do.” But moving
into the country is something “that’s very difficult to do”, he said.
Celebrity actress Zhang Ziyi admits she
lacked experience in handling charity donations during an exclusive interview
with China Daily over the weekend in an undisclosed place in Liaoning province
where she was shooting a movie. Zhang Ziyi has vehemently denied accusations
that she committed fraud in the name of charity, but admitted to inexperience
when organizing a donation drive for the relief of the 2008 Sichuan earthquake
victims. In an exclusive interview with China Daily, the
internationally-celebrated Chinese actress - for the first time - answered some
100 questions, most of which involve details about the money she gave to charity
or collected for her own foundation. Ever since an advertisement featuring her
was defaced with paint in December, Zhang has been embroiled in a series of
allegations. The most serious of the accusations - mostly from netizens - are
about discrepancies in the sums that surfaced in various reports. Shortly after
the earthquake struck Sichuan on May 12, 2008, killing some 80,000 and
dislocating millions, she decided to donate 1 million yuan ($147,000) to the
China Red Cross. As she was in the United States at the time, she asked her
representative in China to transfer the money. But due to what she claimed to be
a "communication glitch", only 840,000 yuan was sent. She said she took "primary
responsibility" for it and had already made up for the shortfall. The other
contentious figure was $1 million, which she said she had "hoped" to raise, but
had never claimed to have "already" raised. The actual amount pledged for the
Zhang Ziyi Foundation is slightly less than $500,000, most of which has not been
paid. The event in the eye of the storm was a fund-raising drive on May 21,
2008, at the Cannes Film Festival. During the one-hour "hastily arranged"
initiative, only $1,392 in cash was collected, far less than the previously
reported $50,000. The rest were informal pledges. The total adds up to about
$500,000, which is the amount she said she had always referred to when answering
the media. Since then, she said she had been making efforts to pressure the
donors to honor their pledges, but her efforts have not been very successful. So
far, only $15,050 has been collected. Zhang said she would personally make up
for the shortfall but would not reveal the people's names against their will.
Zhang also mentioned her foundation was registered in California two days before
her fund-raising effort in Cannes. The foundation, a non-profit organization, is
of good standing and there have been no financial irregularities, she said.
Tears welled in her eyes when she talked about the incident's impact on her and
her family, and again when she recounted the solace and support she got from
friends. She said she wants to give back to society because she had got so much
from it, using her heavily-subsidized tuition in the drama academy and the dance
school as an example.
A worker walks past
the facial sculptures, the centerpiece of the African Pavilion of the 2010
Shanghai World Expo on March 15.
The
Hongkong and Shanghai Banking Corp has taken the lead and standardized its
lending rate for yuan loans to finance trade at 3.88 percent. The rate is set
with reference to market conditions and the lending rates of the central bank.
There is a preferential loan rate of 2.88 percent for borrowers before the end
of August, HSBC said. "We have seen growing interest from our commercial
customers in using yuan cross- border trade settlements to reduce transaction
costs," head of commercial banking for Hong Kong, Albert Chan, said. The bank
recently completed its first yuan trade finance deal worth more than one million
yuan (HK$1.14 million) with an electronics manufacturer. Beijing last month
authorized non- mainland companies to issue yuan bonds and borrow yuan funds. It
also gave the green light for non-trading companies to do business in yuan in
Hong Kong. Alex Cheung Kin-sang, a DBS (Hong Kong) managing director, said while
there are more yuan business opportunities now, loans have been hurt by fears
the currency will appreciate. "The demand for yuan loans is still small," he
said. Once demand increases, DBS will raise its rates to attract savings. Market
rates are currently around 0.7 to 0.8 percent. They cannot be higher than what
clearing institution Bank of China (Hong Kong) (2388) offers other banks. Cheung
said 7,000 yuan trade accounts were opened locally since August. He expects the
number to rise dramatically in coming months as Beijing further lifts
restrictions. Separately, HSBC denied media reports that it has devised a new
policy for mortgages and refinancing. The bank was reported to have cut the
early repayment penalty period from three years to two. That would have meant no
legal fees from clients for refinancing while the commission for brokers would
double to 0.3 percent.
Almost 50 types of instant noodles in
the market contain too much salt, often associated with high blood pressure, the
Consumer Council warned yesterday. It said 13 samples exceeded the suggested
maximum daily intake recommended by the World Health Organization while one
sample was double the limit. In addition, some samples had either excessive
total fat or saturated fat. According to the council, 13 of the 48 samples
tested in conjunction with the Centre for Food Safety showed sodium levels above
the WHO and Food and Agriculture Organization daily maximum intake. The council
warned that consuming excessive amounts of sodium increased the risk of
developing high blood pressure. The daily intake of sodium should not exceed
2,000 milligrams, or about one level teaspoon, according to the WHO/ FAO. The
council said the instant noodles with the highest salt content were Supreme
Noodle with Soup Base (wonton soup flavor), which had 4,350 milligrams of sodium
in a cup containing 75 grams of noodles, the equivalent of 5,800 milligrams for
every 100 grams of noodles. The second highest was Jin Mai Lang Bone Soup (spare
rib flavor) with 3,023 milligrams in 128 grams of noodles. Next on the list was
Mama Instant Noodles (shrimp creamy tom yum flavor, 90 grams), which contained
2,820 milligrams of sodium. In addition to too much salt, three types of cup
noodles contained excessive amounts of fat while nine samples contained high
amounts of saturated fat, both of which have been associated with various health
problems including heart attacks. The council said nine samples claiming to be
"non-fried" or with similar wordings on their packages also claimed to have low
amounts of total and saturated fat. But of these, three samples contained an
excessive amount of sodium. "Consumers should be aware that eating too much
sodium increases the risk of developing high blood pressure while too much total
fat is linked to obesity and saturated fat to heart disease," the council's
publicity and community relations committee chairman Ambrose Ho Pui-him said.
CFS Food and Environment Hygiene Department principal medical officer Anne Fung
said oil fried noodles and the seasoning powder included in the package contain
the highest amounts of sodium and fat. Fung said macaroni and Shanghai noodles
were useful alternatives for a more healthy lifestyle. Fung said consumers would
be able to make better choices when the new nutrition labeling scheme comes into
force on July 1. She said it was also the responsibility of the manufacturers to
ensure the data on the labels is correct. The distributor of Supreme Noodle with
Soup Base (wonton soup flavor) said it will be renewing the packaging before the
law comes into force. The distributor of Doll Bowl Noodle - which contains high
amounts of sodium and total fat - has also promised to change its labeling to
reflect the true contents of its products.
With mounting
public concerns over an overheating property market, the government yesterday
said it may launch more than 4,300 affordable homes. All 4,000 remaining Home
Ownership Scheme flats may be put on the market at one time by the Housing
Authority as early as June, Secretary for Transport and Housing Eva Cheng Yu-wah
said. The Housing Society also announced its decision to immediately sell the
remaining 374 sandwich-class homes it holds. Experts, however, are skeptical
that there will be any material effects from the sales. Cheng said: "We will
advise the [authority's] Subsidised Housing Committee to sell all these [HOS
homes] in one go to increase the supply of small and medium-sized units on the
market." She reiterated the government is investigating ways to revitalize the
secondary HOS market. In the next two months, it wants to look into measures for
homeowners to pay land premium more flexibly. It seeks also to further simplify
home transactions and offer different terms to prospective homebuyers under the
existing mortgage default guarantee scheme. The remaining sandwich-class homes
are at Highland Park in Kwai Chung, Cascades in Ho Man Tin and The Pinnacle in
Po Lam. Average prices for the three developments are HK$3,100 per square foot,
HK$3,700 psf and HK$3,000 psf, respectively, while the entry fee is HK$1.58
million. The Housing Society said it has given a 23 percent discount, after
taking into consideration secondary market prices in the district and
prospective buyers' means. One-third of the remaining HOS flats are in Tin Shui
Wai, while the rest are in Yau Tong and Ma On Shan. Centaline Property Agency
senior sales director Fred Chau said the government's decision to sell
affordable flats may affect similar private homes, but the new supply - being
very dispersed - will not affect prices as a whole. Chau noted that recently
launched projects such as Larvotto in Ap Lei Chau provide mainly large homes.
Transactions for luxury homes, especially on Hong Kong Island, remain strong
this month. He said the government may put more plots on the market and
stipulate that more smaller homes should be built. A developer, who asked not to
be named, said the government's move is a political one aimed at improving its
popularity. He said these homes are insufficient and can only have short-term
effects. As long as interest rates remain low and the economy is vibrant, prices
will continue to surge, he said. The government should make it clear whether it
is launching these homes to curb speculation or subsidize housing, he added.
Cheng said the government does not aim to curb prices, but help people in need
buy flats. 
A prestigious school is to
begin testing its students for drugs as early as this week. Tsung Tsin Christian
Academy in Cheung Sha Wan will become the city's first school under the direct
subsidy scheme to launch testing, according to Sing Tao Daily, the sister
newspaper of The Standard. The move comes as a 15-year-old youth was sent to
detention center after he admitted trafficking ketamine in return for HK$200.
Under the Tsung Tsin Christian Academy's voluntary testing program, to be paid
for by the Cheung Sha Wan school, students will be selected randomly to provide
urine samples that will be tested by the University of Hong Kong laboratory. The
test results will be sent back to the school for parents to collect. School
principal Joshua Yau Chung- wan said HKU would only disclose the general test
results without disclosing the students' identities. This means it will be up to
the parents to approach the school to seek help if their children test positive.
Twenty-three schools in Tai Po are currently conducting a pilot scheme to test
students. The scheme will be reviewed in June. In the latest case involving a
young drug offender, the Secondary 1 student last month pleaded guilty to one
count of trafficking in a dangerous drug. In sentencing, District Court Judge
Douglas Yau Tak-hong said he hoped that intensive physical training in the
center would help the teenager develop a sense of discipline. The judge said he
believed the youth had probably been influenced by his peers. He said he
believed the youngster was truly remorseful for committing the offense. The
judge said he deserved another chance, but stressed that the court was not
condoning the use of young people as drug couriers. Judge Yau warned the
15-year-old that if he did not make up his mind to kick the habit and correct
his curiosity about dangerous drugs, he would suffer more pain for the rest of
his life. He would also be hurting his mother. The judge said he understood the
teenager had difficulty growing up in a single-parent family. He warned the
teenager that he would be brought back before the court if he failed to comply
with rules at the detention center. In July last year, the teen was arrested
during a police anti-drug operation outside a restaurant in Tai Kok Tsui. More
than 21 grams of ketamine were seized from him.
Justin Lin Yifu, chief economist and
senior vice-president of the World Bank, still hopes he will be allowed to visit
Taiwan, the island he defected from three decades ago and which bans his return,
his wife said yesterday. Lin defected to the mainland in 1979. At the time, the
island was under martial law and ruled by the Kuomintang. Lin's father died
almost eight years ago and the Taiwanese government refused to let him return
for the funeral. But his wife, Chen Yunying, who later joined him and is now a
member of the National People's Congress, said she was optimistic that warming
cross-strait ties meant Taiwan would finally let him return. "Last year was the
30th anniversary [of his defection] and everyone thought that he would be able
to go back then. We all know that road has yet to open," she said in Beijing on
the sidelines of the annual meeting of the parliament. "Following the peaceful
progress in cross-strait relations, we hope that the day will come when I can
accompany him back." Chen has been allowed to visit Taiwan. The two sides have
signed trade and tourism deals since Taiwan's election of the Beijing-friendly
President Ma Ying-jeou in 2008, although there have been no direct political
talks and military suspicions remain deep on both sides. The reasons for Lin's
defection have never been clear. At that time, most defectors fled the mainland
for the relative freedom of Taiwan. Lin is also an NPC delegate but was unable
to attend this year because his workload kept him in the United States, the
official China Daily said. Chen said Lin desperately wanted to pay his respects
to his dead father. "Him not going back is unfilial behavior ... It's very
painful for him," she said.
Wharf Group subsidiary i-Cable Communications (SEHK: 1097), which touts the two
most coveted football programmes in Hong Kong, is gearing up for growth at its
flagship pay-television business after significantly narrowing its losses last
year. Pay-TV revenue is expected to strongly rebound this year ahead of the 19th
FIFA World Cup in June and the new Barclay's Premier League season, the company
said in a statement to the Hong Kong stock exchange yesterday. Another Wharf
Group unit, the privately held telecommunications firm Wharf T&T, said it is
also primed to expand its operations after posting a 52 per cent rise in net
profit in the 12 months to December. Stringent cost-control measures and exit
from non-core businesses helped i-Cable, which also offers internet broadband
services to the consumer market, reduce its net loss 63 per cent to HK$40.9
million from HK$110.3 million in 2008. Revenue fell 15.7 per cent to HK$1.75
billion, affected by slowing business in the first half and losses from its
recently discontinued Horizon Channel and print ventures on the mainland. "Our
priority will be to grow revenue this year," i-Cable chairman Stephen Ng Tin-hoi
said. "The next three months will be crucial for us." The company aims to grow
its more than one million pay-TV users ahead of the start of the World Cup and
the new Premier League season. It is estimated that 80 per cent of local soccer
fans have been paying to watch the Premiership. To accelerate that plan, i-Cable
has started wiring up selected residential buildings with an estimated 2.2
million households to have access to its blockbuster football programming. "We
want to pre-install rather than wait for orders," Ng said. The cost of the
three-year deal to broadcast the Premiership, which is estimated to be more than
US$200 million, will be booked across each year of its broadcast. PCCW (SEHK:
0008) group managing director Alex Arena, however, said this week that the
Premiership's broadcast rights had become too expensive. He said PCCW's internet
broadcast unit Now TV has found more cost-effective and equally popular football
offerings in the Italian Serie A and Spanish La Liga broadcasts. Another
potential growth driver for the company, in terms of advertising revenue, will
be its foray in the free-to-air TV market, which has long been the duopoly of
terrestrial broadcast network operators TVB (SEHK: 0511) and ATV. In January, i-Cable
submitted its application to the government and has so far replied to 80 per
cent of the regulator's follow-up inquiries. Wharf T&T, meanwhile, saw its net
profit rise to HK$213 million last year, from HK$139 million in 2008, as it
expanded its coverage of business users. Revenue grew modestly to HK$1.65
billion from HK$1.641 billion a year ago. The company plans to spend HK$1
billion in the next three years to boost its optical fibre network coverage to
more than 5,000 commercial buildings across the city.
Wen offers his personal
account of Copenhagen climate summit snub - Premier Wen Jiabao yesterday fended
off criticism that Beijing acted arrogantly at last year's climate summit in
Copenhagen and was a main culprit for its limited success, saying he had been
the target of a diplomatic snub at the outset. Offering his first account of the
chaotic situation four months after the widely ridiculed conference, the premier
- who was criticised for skipping a key meeting of world leaders at the summit -
said he had not received an invitation to a similar meeting the previous night.
Wen's counter-snub was seen not only as part of his efforts to straighten out
what he perceived as false allegations in the West, but also showed China's
increasing assertiveness in handling global issues such as climate change,
analysts said. His remarks came after the country's top climate negotiator, Xie
Zhenhua , said last week that the world should learn from procedural problems
that plagued the Copenhagen talks. The final accord was produced by only a small
number of countries. Analysts say Wen's remarks indicate Beijing is unlikely to
make any major concessions before or during the next UN climate talks in Mexico
this year. When pressed by foreign media at yesterday's news conference, Wen
appeared well prepared, saying he was glad to have the chance to clear up what
happened in the final hours in Copenhagen. "It baffles me why some people still
try to take issue with China," he said. "As the Chinese proverb goes, my
conscience is untainted despite rumours and slanders from outside." But his
well-scripted response failed to address the question of why he boycotted the
summit meeting on December 18 attended by US President Barack Obama and 19 other
heads of state, instead sending Vice-Minister of Foreign Affairs He Yafei on his
behalf. The move was read by many, the most vocal being French President Nicolas
Sarkozy, as a breach of diplomatic protocol and indicative of China's
"go-it-alone approach". Instead of giving a straightforward explanation for
this, Wen gave a long account of why he boycotted another meeting which was
scheduled on December 17, the eve of Obama's arrival. He said he was not even
invited to it in the first place. "I heard about the late-night meeting of only
a selected number of nations, including China, at a dinner of world leaders. I
felt shocked that I had not received any notification of China being invited,"
he said. After checking with his delegation, he sent He to the meeting to
register China's protest. "Why was China not notified of this meeting? So far no
one has given us any explanation about this, and it is still a mystery to me,"
he said. This episode was read as a conspiracy theory against Beijing among the
Chinese delegation, which left Wen infuriated, according to several climate
negotiators. Analysts said those sentiments could also partly explain Wen's
boycotting of the summit with Obama the next day. Wen also vigorously defended
the Copenhagen Accord, a non-binding, face-saving political deal that was widely
seen as a failure, saying it was "the best possible outcome that could be
achieved on an issue that concerns the major interests of all countries".
Despite the prolonged blame game following the Copenhagen talks, Wen reiterated
China's commitment on pushing ahead with stalled international climate
negotiations.
CNOOC Ltd, China's biggest offshore
oil explorer, agreed to buy a 50 percent stake in Argentine producer Bridas Corp
for $3.1 billion to meet demand in the world's fastest-growing major economy.
Bridas, controlled by Argentine businessman Carlos Bulgheroni, owns a 40 percent
stake in Pan American Energy LLC, the country's largest crude oil exporter, and
also has oil and gas assets in Chile and Bolivia, CNOOC said yesterday in a
statement to Hong Kong's stock exchange. BP Plc, Europe's largest oil company,
owns the remainder of Pan American. China's oil and gas companies spent at least
$13 billion on acquisitions since 2008 as the nation scours the globe for
resources. The offer values Bridas's proven reserves around $10 a barrel, about
half of what BP Plc paid Devon Energy Corp last week for assets in Brazil, the
Gulf of Mexico and Azerbaijan, according to Sanford C Bernstein & Co analyst
Neil Beveridge. "This seems like a relatively attractive valuation and the
acquisition is entirely in keeping with the Chinese government's policy of
increasing oil reserves," Beveridge said by telephone from Hong Kong today. "It
raises CNOOC's reserves by about 12 percent and also gives it an entry into
Latin America." China is the world's second-biggest energy consumer, after the
US, and CNOOC estimates the Bridas investment will add 318 million barrels of
reserves and also boost its average daily production by 46,000 barrels. Devon's
assets may add 40,000 barrels a day for BP starting next year, based on current
production, with "huge potential" for exploration, BP spokesman David Nicholas
said March 11.
China must learn from Toyota's mistakes -
The Toyota logo on a car covered in snow in Beijing. This winter is really cold
for the Japanese automaker who saw one disaster after another in its product
quality and after-sales services. Japanese automakers' recent product recalls
were not only a warning to Chinese homegrown brands not to expand too fast and
ignore management and quality control, but also sounded an alarm to China's
automobile recall system. "Although we seldom witness Chinese automakers' recall
initiatives, it does not mean that their products are high quality," said Tan
Kunyuan, an auto industry analyst with Changjiang Securities. "Quality defects
often emerge a long time after the vehicle has been in use, but Chinese-branded
vehicles have only been in the market for a short time. Moreover, as recalls
have a serious impact on brands, the still-young domestic automakers deal with
quality problems through their after-sales service, rather than recalling them,"
said Tan. However, Luo Lei, vice-secretary of China Automobile Dealers
Association, attributed the rare occasions of recall from domestic automakers to
an imperfect automobile quality supervision system in China. "Whether it's the
US, European countries or Japan, faulty vehicles are under strict supervision
and restrictions from the governments by related laws but, in China, we only
have a recall regulation, rather than a law, with which to deal with auto
manufacturers," said Luo. "Without authoritative legislation, no enterprises are
willing to initiate recalls." In 1966, the US government legislated for the
recall of defective vehicles. Japan began to implement a vehicle recall system
in 1969 and included it in its auto industry laws in 1994. However, China only
started to pay attention to vehicle quality issues in October, 2004, by
launching a vehicle recall regulation. According to statistics from the national
quality watchdog - the General Administration of Quality Supervision, Inspection
and Quarantine - over the past five years it received 212 active recall
applications from almost 60 automakers, involving 3.21 million defective
vehicles in total. Only seven among the 212 recalls were from Chinese
automakers. This compares with the recall of 3.29 million vehicles in Japan in
2001 alone. The US has recalled more than 200 million vehicles since 1966.
"Without a complete law to regulate vehicle quality, the domestic automakers
will have no awareness to voluntarily recall their defective cars," said Luo.
China overtook the US to become the world's largest auto market last year, with
13.6 million vehicles sold within 12 months. China now has more than 180 million
vehicles on the road, including 26.1 million cars owned by individuals. The
number increased 33.8 percent from a year earlier. In 2009, China experienced
238,351 traffic accidents, with 67,759 people being killed, 275,125 injured.
This is said to have cost 910 million yuan ($133 million). Analysts said that
although vehicles are not the major killer in accidents, some of the tragedies
are caused by vehicle defects. As China has more vehicles and the number of
traffic accidents grows, quality and safety of vehicles has become more and more
important. Another deficiency of China's recall system is that the government's
punishment for faulty vehicle producers is considered to be too light. According
to the regulation, maximum penalties for automakers that try to hide product
defects are a fine of 30,000 yuan, without compulsory compensation to
purchasers. That compares with Toyota's possible penalty of $16.4 million
required by the US government for the current recalls, and more expensive
compensation to consumers. "Japan also added compulsory compensation to
consumers to its recall system in 1995," said Jia Xinguang, an independent auto
analyst based in Beijing. He also suggested that China should establish an
information collection and management system with a database to support the
recall system. "Moreover, China should extend the range of recall in the
automobile industry to some automobile parts and accessories," said Jia. "By the
end of 2007, Japan had conducted seven recalls on 130,000 automobile accessories
after it included automobile parts and accessories such as tires and children's
car seats into its recall range in 2004." 
Democracy in Hong Kong should
develop in accordance with the Basic Law in a gradual and orderly manner, says
Premier Wen Jiabao. Wen acknowledged there are deep-rooted conflicts in Hong
Kong, which are related to the city's economy. Speaking at a press conference to
mark the end of the National People's Congress annual session, Wen said there
are several ways for Hong Kong to develop. These are: Hong Kong should enhance
its existing advantages to further strengthen and develop its status as a
financial, shipping and trade center. It should combine and develop the city's
strengths to promote industries, especially the service sector. It should make
full use of its geographical advantage, that is, its proximity to the mainland,
to further strengthen its ties with the Pearl River Delta. "The mainland at
large, and the huge domestic demand in the mainland market and rapid economic
development will be a strong source of potential for Hong Kong's development,"
Wen said. People should be more inclusive, strive for a consensus and stay
united to maintain prosperity and stability of Hong Kong. "Hong Kong will not
only make great strides in economic development, but its democracy will also
develop in accordance with the Basic Law in a gradual and orderly manner," he
said, calling for improvements in education and people's livelihood. He added:
"As to the 12th five-year plan, it's based on the planning of nationwide
development. Of course, we will take into consideration the economic ties
between the mainland and Hong Kong, especially Hong Kong's ties to the Pearl
River Delta." In Hong Kong, Civic Party lawmaker Ronny Tong Ka-wah said the
pan-democrats shared the "anguish and impatience" of all Hongkongers trying one
last time to get Beijing to listen to their views on constitutional reform. "If
even Taiwan can establish a working relationship with Beijing, why can't the
pan-democrats?" Tong asked in RTHK's Letter to Hong Kong. He added: "Beijing
either is not listening or can't hear." Tong is worried that if the city's
constitutional reform will fail once again, and that will make Beijing and
Hongkongers heavy losers. "The so-called deep-rooted conflicts in Hong Kong will
be no nearer to any solution; the long-term stability and prosperity of Hong
Kong will not only continue to be threatened but will, more likely than not, go
from bad to worse," he said. Tong warned that the younger generation will be
forced to move towards more radical political parties like the League of Social
Democrats and Beijing will find it more difficult to deal with them.
In a sign the government is getting street smart, a top official has revealed
she is considering halting the controversial acquisition of a street with "star
power." Because of the changing views of the community, Development Secretary
Carrie Lam Cheng Yuet-ngor says she may halt the acquisition of Central's Wing
Lee Street - which featured in the recent award-winning movie Echoes of the
Rainbow. In an interview with The Standard's sister newspaper Sing Tao Daily,
Lam also hinted at further discussions with senior management of the Urban
Renewal Authority on the need to demolish old buildings on the street while
taking into consideration the requirements of landlords and tenants. Lam is the
most senior government official to hint that changes may be made to the street's
development plan and the possibility that - for the first time - an acquisition
project may be halted. The authority had been adamant it would press ahead with
redevelopment despite an earlier plea from Echoes of the Rainbow director Alex
Law Kai-yui that the whole street be preserved. The quaint street, comprising 12
tong-laus, or traditional Chinese tenement buildings, was used as the location
for the 1960s-era movie, which won the Crystal Bear award for best feature film
at the Berlin Film Festival last month. Lam said that when the authority
released a revised proposal to keep three tong-laus and redevelop the rest in
late 2008, the feedback was positive. "But surprisingly, society has changed its
views and people are now insisting on conserving all 12 tong-laus," Lam said.
Lam urged the public to be less aggressive and emotional as Wing Lee Street is
only a part of the redevelopment project, which comprises three sites. The
authority has so far secured 40 percent of the ownership of premises in the area
but as the deadline for owners to reply has not expired, there may be legal
implications should the resumption be halted ahead of time, Lam said. The
authority's plan for the Staunton Street-Wing Lee Street area is still pending
approval from the Town Planning Board. It also does not have any partner from
the private sector as yet. In November 2008, the authority suggested that a
proposed 24-story building behind Bridges Street Market at the corner of Shing
Wong and Wing Lee streets be shrunk to six stories. It also proposed lowering
the plot ratio. The revised project was expected to result in losses of HK$170
million because of the drastic drop in the number of flats from 216 to 130.
Since Lam took over as development secretary, she has responded quickly to the
public's conservation needs. In September 2007, she moved to quell public
outrage when demolition work began at King Yin Lei, a traditional Chinese-style
mansion at 45 Stubbs Road, Wan Chai. The government later exchanged a plot of
land with the owner to preserve the 1937 mansion. Meanwhile, about 10
conservationists gathered at Wing Lee Street yesterday calling for its
preservation. "The tong-laus are very precious and all 12 should be preserved.
Keeping the last few units on the street would just be a token consolation,"
Central and Western Concern Group convener Katty Law Ngar-ning said.
Forget about investing in Hong Kong
property. Prices for top-quality antique Chinese furniture have increased
fourfold in five years, bid up by newly rich mainlanders. Prices are rising
steeply not only because mainlanders are paying more but because sellers are
withholding supply in the hope of even higher prices. In the process of
inflating the market - and transforming it with their enthusiasm for "imperial"
furniture - mainlanders are also ensuring that Hong Kong's role as an antiques
market is likely to grow. At Sotheby's auction in the city in October last year,
an unidentified Shanghai businessman - understood to be mainland stock investor
Liu Yiqian - paid an astonishing HK$85.7 million for a rare Qianlong-period
zitan dragon throne. It was a record auction price for a piece of Chinese
furniture. The throne was made for the 18th century emperor - the fifth during
the Qing dynasty - out of zitan, purple sandalwood. To many industry insiders,
last year's auction was a landmark event, a record sale that showcased the rise
of mainland collectors with an extravagant taste for rare imperial pieces. It
also broke a record set by the April 2008 sale of a zitan three-railing bed,
also from the Qianlong period, which fetched 32.48 million yuan (HK$36.89
million) at Beijing's China Guardian Auctions. Ma Weidu, founder of the Guanfu
Museum in Beijing, the mainland's first private, non-profit antiques museum, who
is also a well-known collector of antique Chinese furniture, said prices for top
pieces had increased too much, too fast. Ma said he had planned to bid for the
imperial throne and set himself a bidding limit of about HK$40 million. 
LED testing at Intertek's new LED testing
laboratory, the first of its kind in Asia, in Lai Chi Kok. The testing and
certification business is targeting a number of areas to bolster the industry in
coming years, with testing on food, Chinese medicine, jewellery and green
products tipped to be among the frontrunners. The Council for Testing and
Certification is set to make a list of recommendations on a three-year
development plan for the industry by the end of the month. A government task
force last year identified testing and certification as one of the six
industries that had a competitive edge to boost the city's economy. The Census
and Statistics Department reported last month that the industry generated HK$78
billion of revenue in 2008, of which HK$52 billion, or 66 per cent, came from
testing services. Product tests on textiles and toys, together with medical
tests, accounted for 73 per cent of the HK$52 billion revenue. Testing on food,
Chinese medicine and precious materials accounted for less than 4 per cent. One
of the market leaders in the testing industry, Intertek, today unveils its HK$2
million LED testing laboratory in Lai Chi Kok, which will be the first of its
kind in Asia. LED - light emitting diode - is an emerging technology that is up
to 10 times more energy efficient than conventional lighting, although it will
cost more. Samson Leong Chun-chi, the company's manager for luminaires and
energy efficiency, predicted that LED could prevail in local households within
two years, but they are not only focusing on local markets. He said the East
Asian region was a pioneer in technological development of LED lighting, while
North America and the European Union had already established safety and
efficiency standards for LED products. "Hong Kong, given its geographic
location, could serve as a window to support LED research and hence offer
assurances to product quality in exports," he said. Kevin Tsang Ho-yin, the
company's regional marketing manager, said they would also help in the testing
of LED lighting used by several government departments and local enterprises.
CMA Testing and Certification Laboratories general manager of operations Lam
Chun-hong said green products were emerging opportunities for the industry. But
he also noted that it would need government support to get into the mainland
market, in addition to manpower support in the long run. Lam said the industry
would need talent for chemical testing and green audits, such as carbon emission
controls, which had been growing in popularity in recent years. Dr Lo Wai-kwok,
deputy chairman of the Hong Kong Quality Assurance Agency, said the government
should also take the role of transferring the testing technology for new
products to the private sector.
Artist Kevin Cheng (centre, in white)
poses in West Kowloon with other artists during promotions for a TVB drama
series. TVB (SEHK: 0511), the broadcaster embroiled in a bribery scandal, has
decided not to rerun two drama series jointly produced with Hong Kong's
graft-buster to educate the public about anti-corruption measures and will
replace them with ghost stories. The decision was made as the broadcaster
yesterday said it was prepared to launch a review into its declaration and
procurement systems when the bribery case was completed. The 10 episodes
featuring Independent Commission Against Corruption investigations in 2004 and
2009 were to be rerun from Thursday this week at 11am on TVB Jade. They will be
now replaced with Dark Tales II, also produced by the broadcaster, a collection
of ancient Chinese tales focused on the struggle between good and evil. TVB said
it was not good time to re-screen the dramas given the current graft
investigation involving station executives. "It is not an appropriate timing and
we have decided to switch to Dark Tales II," said Tsang Sing-ming, TVB external
affairs deputy controller, who said screenings of the anti-graft dramas would be
embarrassing. The ICAC last Thursday arrested TVB manager Stephen Chan Chi-wan
and Edthancy Tseng Pei-kun, Chan's former assistant and a director of Idea
Empire Advertising and Production Company. The graft-buster suspects Chan
accepted advantages from Tseng to help the firm secure service contracts for
programs produced by the broadcaster. Also arrested by the ICAC were business
development chief Wilson Chan, TVB artists Ning Jin as well as variety show
executive producer Wilson Chin Kwok-wai. The program change was announced
yesterday as the broadcaster's artists voiced support for greater transparency
over their wages for appearing in shows - though many said they had no idea how
much they were paid. Their pay is under close scrutiny by anti-corruption
officers who have been interviewing artists with ties to TVB. One focus of the
investigation is whether their pay was intentionally decreased to suit the
budgets of others in the bribery scandal. Actress Shirley Yeung Sze-ki, who was
interviewed by ICAC investigators last Friday, said she believed her employer
TVB would look after her interests. "I'm not in a good position to say anything
about it," she said. "I think the company will fight for the best for me." Actor
Kevin Cheng Ka-wing said artists normally would not know how much they were paid
and who produced the events at which they performed because TVB management would
represent them in pay negotiations. On Saturday, ICAC chief Timothy Tong
Hin-ming advised TVB to set out clear guidelines for subcontracting jobs,
establish a mechanism to select subcontractors and increase transparency of the
process. The suggestion was backed by actor Bowie Lam Po-yee who said: "Hong
Kong needs more such systems. It is the right thing to do to make Hong Kong fair
and just." In response to Tong's call, TVB external affairs deputy controller
Tsang said the company had intended to review its systems. "We have had the
intention of doing this but it is now not a good time to do it," he said. "We
might do it after the case comes to an end." 
The recovery under
way in global economic growth has encouraged logistics firm DHL to launch an
investment plan that earmarks Hong Kong as a key distribution centre for the
region, says Paul Graham, the chief executive of DHL Supply Chain Asia Pacific.
"The market in the fourth quarter of last year and the first two months of this
year has made us quite positive," Graham said. The firm will continue to
increase its investment in the Asia-Pacific after it committed earlier this
month to invest HK$360 million in building a multipurpose distribution warehouse
in Tsing Yi. DHL last year announced it would open 10 new transport hubs on the
mainland. The company had noted an improvement in shipment demand and turnover
over the past few months, Graham said in an interview with the South China
Morning Post (SEHK: 0583). But while customers are expressing greater confidence
about the outlook for their businesses, a full recovery in the global economy is
still some time off and DHL is therefore cautiously optimistic about the signs.
Graham said the firm's supply chain business in the Asia-Pacific was "ahead of
the curve" since half of its revenues in the region came from domestic transport
and many Asian countries, led by the mainland and India, were registering
economic growth. DHL believes that investing in talent is as important as
investing in infrastructure, he said, particularly in the Asia-Pacific where few
people regard the logistics industry as a natural career path. Growth was curbed
due to the resulting shortage in talent, he said. "We must compete for young
university graduates and this is very challenging as the industry is not a
favoured career path for Asians, unlike in Europe or in the [United States]," he
said. "We have to change this mindset. We have to tell them we are not just a
labour-intensive and a low-technology industry." DHL sponsored a number of
tertiary courses in logistics on the mainland and in India as well as setting up
booths at university open days. In addition to skilled labour shortages, rising
rental costs have also affected DHL's expansion, said Graham, but he said the
opening of the Interlink building in Hong Kong in 2012, in which DHL has a
long-term rental commitment to take 25 per cent of the floor area, could
mitigate the problem of rental costs. Since warehouse rental rates in Hong Kong
are volatile the investment will provide DHL with a more predictable cost base
and secure enough space for it to grow, he said. Predictions that the recall of
Toyota cars sold in the US may boost demand for the shipment services provided
by companies such as DHL has not materialised, Graham said. More than six
million vehicles sold in the US were recalled by Toyota. However, it turned out
that software issues were behind the problems and there was little demand for
shipping parts or components, Graham said.
A model displays underwear by
Triumph during a fashion show featuring Triumph Spring/Summer underwear in Hong
Kong, south China, March 14, 2010.
A model displays underwear by
Triumph during a fashion show featuring Triumph Spring/Summer underwear in Hong
Kong, south China, March 14, 2010.
The yuan is not undervalued,
according to Premier Wen Jiabao. Wen said calls from the United States and other
large economies for China to boost the yuan are unhelpful, even protectionist,
and vowed that Beijing will fashion currency reforms in its own way in an
uncertain economic landscape. His hard-hitting speech after the National
People's Congress yesterday is believed to be in response to US senator Charles
Schumer's demand for legislation to stop Beijing from "manipulating" the yuan
and a call by US President Barack Obama for "a more market-oriented exchange
rate." China's real effective exchange rate appreciated 14.5 percent between
July 2008 and February 2009 - the worst time for the world economy - while in
that period exports fell 16 percent and imports 11 percent, narrowing the trade
surplus by US$102 billion (HK$796 billion). Wen said keeping the yuan exchange
rate basically stable has played a vital role in facilitating the recovery of
the global economy. Beijing, which will further improve the exchange rate
mechanism, is against mutual accusations between countries and using coercion to
force a country to raise its exchange rate as it is "no help to reforming the
yuan exchange rate." "A country's exchange rate policy and its exchange rates
should depend on its national economy and economic situation," Wen said. He sees
a potential risk of a "double- dip" in the global economy because the world is
still facing major challenges. Despite a domestic economic rebound, "a lot of
[Chinese] enterprises have not witnessed improvement in performance and are
operating with government support." Beijing will work hard to avert a possible
economic "double-dip" by striking a balance that maintains relatively fast and
stable economic growth, adjusts economic structure and manages inflation.
"Inflation with unfair income distribution and corruption will affect social and
political stability," said Wen, adding Beijing will continue to implement a
proactive fiscal policy and a moderate monetary policy this year. Wen insists
China has always adhered to a path of peaceful development and the country's
growth will not adversely affect others. "We have never sought hegemony in the
past and would never do so as a developed country in the future," he said.
China WindPower chairman Liu Shunxing says
the cost of making wind power production equipment has fallen and is expected to
drop further. The profitability of wind farm energy producers on the mainland is
set to increase as a result of tumbling costs of wind power generation
equipment, China WindPower Group chairman Liu Shunxing says. "I see the price of
a 1,500-kilowatt production unit falling from 5,000 yuan (HK$5,683) to 4,000
yuan per kilowatt - the current price of lower-end 750 kW units," Liu told the
South China Morning Post (SEHK: 0583, announcements, news) in an interview after
the company reported its financial results for the nine months to December last
year. The mainland could now make completed wind power production units
domestically, and the cost of such units could fall a further 20 per cent after
tumbling 15 per cent in the past year, he said. The price fall follows an
investment boom in wind power turbine factories on the mainland over the past
few years. No longer hindered by the high equipment costs and small-scale
operations, most wind power project developers had seen their profits rising.
The delivery lead-time for equipment had also shortened, from 12 months a few
years ago to two to three months, Liu said. He would not set a timeframe for his
prediction of further price falls, but said his company had adopted a policy of
procuring equipment only when it was necessary in order to maximise savings and
benefit from falling prices. Most wind farms are currently making a return on
equity of less than 10 per cent, according to a research report by Pierre Lau,
the head of Asia-Pacific utilities research at Citigroup. An exception is China
WindPower's rival, China Longyuan Power Group, the nation's largest and the
world's fifth-largest wind farm operator, whose return on equity was 19.8 per
cent based on annualised profit from its results in last year's first half. Lau
attributed its superior return to the better location and wind resource of its
projects. China WindPower's return on equity was 7.6 per cent, based on
annualised profit from its results for the first nine months of this financial
year. However, it derived only 18 per cent of its profit from operating
self-invested wind farms, while the rest came from project design, engineering
and parts production for both its own and third-party projects. The company last
week posted a net profit of HK$181.24 million for the nine months to December.
For the past financial year to March, net profit was HK$116.77 million. Besides
lower equipment prices, wind farm operators are benefiting from guaranteed power
tariffs which vary between 51 and 61 fen per kilowatt-hour depending on where
the project is located, Lau said. There are four designated regions for a
project. With the tariff policy, which took effect in August last year,
developers are driven to find projects with the best wind resources to maximise
their returns in a fixed-tariff operating environment. Rising project returns
had not reached a level that might trigger a cut in tariffs by the government,
said Lau, who expected the present tariffs to remain in force for at least the
next two years. Future tariff adjustments would depend on whether developed and
developing nations could come to an agreement on a mechanism to encourage clean
energy projects in developing nations, he said. Currently, mainland wind farm
operators enjoy subsidies from a United Nations-run scheme. 
The Oil Pavilion of the 2010 Shanghai World Expo is illuminated in a test run in
Shanghai, east China. The Oil Pavilion, with the theme "Oil-extending city
dreams", is built by China's three oil industrial giants, China National
Petroleum Corporation, China Petrochemical Corporation and China National
Offshore Oil Corporation. 
The West's thirst for fine wine may be
entering a period of moderation, but China's cup runneth over, to the relief of
vintners in Bordeaux. China became the top importer of the world's most famous
red outside of Europe, taking over from the US for the first time this year.
With overall wine exports down 23 per cent in 2009, producers are looking East
to empty their cellars. Alain Vironneau, president of Bordeaux's wine trade
body, said China was its first client outside the European Union. China's buying
power comes at a particularly opportune moment as France's leading wine region
struggles to survive the economic crisis. "The crisis that the wine sector is
going through is tied directly to the economic crisis," Vironneau said. "Several
hundred vineyards are in peril due to insufficient cash," Despite a slight
increase in export sales over the past three months, Vironneau said 2009 had
been "catastrophic" for the region, and any recent sales activity fell short of
making up for a year of losses. Bordeaux exported 206 million bottles last year,
generating €1.29 billion (HK$13.76 billion). This was a 14 per cent drop in
volume, and a 23 per cent decrease in value. The hardest hit markets were some
of Bordeaux's most trusted - the US, Britain and Belgium, which dropped by 44
per cent, 33 per cent and 16 per cent, respectively. Nicholas Pegna, managing
director of Berry Bros & Rudd's Hong Kong operations, said north Asian markets
were very much in the driving seat. Five or six years ago, the company allocated
about 25 per cent of its en primeur offering of Bordeaux, or wine futures, to
Hong Kong and greater China. This has risen to more than 50 per cent this year.
Pegna said Bordeaux had been the starting point for fine wine drinkers for a
long time. "While people first come to Bordeaux, and go farther out to Burgundy
and others, it's not a lily pad where they hop off to the next one and never
come back. Many people go through that journey without losing their love for
Bordeaux." While the US still outpaces China in terms of value, at €139 million,
it slipped to No 5 position in volume, surpassed by China. Last year sales to
China increased by 40 per cent to €74 million, with volume increasing by 97 per
cent. Sales to Hong Kong, helped by the elimination of import duties in 2008,
increased by 46 per cent to €109 million, with a 24 per cent increase in volume.
Wine specialists in Hong Kong attribute Bordeaux's success in the region to a
blend of cachet and having the volume of production to take advantage of an
emerging market. "Bordeauxs are like the LVs, the Guccis of wine," said Charlene
Dawes of Tastings, a wine bar in Central. "A lot of people give Bordeaux as a
gift. It's about face. If you're going to give a bottle of wine, if you want
people to know that it's is expensive, then people will choose a Bordeaux."
Not content with criss-crossing the
mainland and much of Asia with high-speed rail lines, Beijing plans an even more
eye-popping route - under the sea to Taiwan. But the plan, confirmed by a senior
railways official, faces formidable challenges. They are both technical - the
shortest tunnel under the Taiwan Strait would be 126 kilometres long, more than
twice the length of the world's longest undersea rail tunnel - and political:
asked about the idea, a Taiwanese government official said it was not even worth
talking about. That's not surprising. Wang Mengshu, a top mainland rail expert
and a member of the Chinese Academy of Engineering, makes no bones about the
impact such a line would have. Once the tunnel is built, the historical issue of
Taiwan's independence will be gone forever," he said. Wang predicts the island's
green camp of pro-independence parties "will definitely try to block it". Still,
he said mainland and Taiwanese researchers would meet on the mainland in the
coming months to discuss the technical issues of the tunnel. And he is confident
the mainland has the technical know-how to build the railway if political
hurdles can be overcome. The extensive and rapid construction of the mainland's
high-speed rail network had equipped the country's engineers with the knowledge,
skills and experience needed to dig the undersea tunnel, he said. Wang was a key
figure in the drafting of the mainland's railway development plan. "The tunnel
will be more than 100 kilometres long. Some of the high-speed rail tunnels under
construction in the mountainous areas of central and western China have exceeded
40 kilometres. Technically, they are the same," he said. "Earthquakes won't be a
problem, either. They can only destroy surface structures. They have no effect
on a tunnel." The plan was laid out in an agreement signed two years ago between
the Ministry of Railways and coastal Fujian province, which faces Taiwan, to
build a high-speed network linking Fujian with other parts of the mainland. But
few took notice of the idea of a cross-strait high-speed rail line until the
recent boom in mainland high-speed railway construction began.
A senior Chinese official warned that
Google would have to bear the responsibility for having violated the "solemn
commitment" the internet giant made when it negotiated its entry into the
mainland market. "They made a solemn commitment, as they understood Chinese laws
very well," said Zhao Qizheng, a spokesman for the Chinese People's Political
Consultative Conference, the central government's top advisory body. "If it
violates the contract, it will have to bear the responsibility," Zhao told the
South China Morning Post (SEHK: 0583, announcements, news) , at the sidelines of
National People's Congress. Zhao, formerly minister of the State Council
Information Office, said he was well aware of the whole process of the
negotiation between the government and Google when the US internet giant sought
its presence in the mainland market. The cabinet office also helps liaise with
foreign media companies. Google made an extraordinary public reproach of
mainland China on January 12 by announcing it intended to stop following
government requirements that it filter the results of its mainland search
engine, Google.cn, and said it could leave the world's biggest market of
internet users. The United States company cited the mainland's tightening limits
on free expression as well as a series of sophisticated cyber attacks that
Google said originated from China. Since then, Google has been in talks with
Chinese agencies about whether it can operate an unfiltered Google.cn. The
remarks by Zhao and another top official suggested there was little room for
compromise in the high-profile showdown over censorship. On Friday, Minister of
Industry and Information Technology Li Yizhong warned that Beijing was not
prepared to compromise on internet censorship to stop Google leaving. The
hardening of the Chinese position comes amid reports that Google will leave the
mainland market. The London-based Financial Times yesterday reported that Google
had drawn up detailed plans for the closure of its mainland search engine and
was now "99.9 per cent" certain to go ahead, as talks over censorship with the
authorities had reached an impasse, citing a person familiar with the company's
thinking. Zhao said Google should have chosen to consult with the Chinese
authorities before it made such an extraordinary public statement. "We have
maintained regular communication and met every year," Zhao said. "But Google
chose not to discuss the issue through the official channels, but made this
sudden announcement. This violated the practices between us." The officials'
remarks were the sharpest words yet in an unusual duel that could set a
precedent for international business in the country and could escalate tensions
between the US and Chinese governments. US officials said on Friday they were
closely watching Google's negotiations over the issue, as the outcome could have
a "significant" impact on Sino-US relations. Since Google's statement in
January, officials had only reiterated the government's official stance that
Google and other foreign companies operating on the mainland must follow the
country's rules. 
Four TVB executives - including the
station’s general manager - are still in custody on Friday afternoon after their
arrest on Thursday by officers from ICAC. Four TVB (SEHK: 0511) executives -
including the station’s general manager - are still in custody on Friday
afternoon after their arrest on Thursday by officers from the Independent
Commission Against Corruption (ICAC). The four arrested were Stephen Chan, TVB
general manager; Wilson Chan, TVB’s head of business development and a
well-known executive producer of variety shows; Wilson Chin Kwok-wai, a TVB
executive producer; and Ning Jin, a TVB celebrity. Edthancy Tseng Pei-kun, an
advertising and production company director and Stephen Chan’s former assistant,
was also arrested as part of the investigation. They are all suspected of
working for an advertising and production company that arranged jobs for TVB
stars, and of receiving advantages without the authority of TVB. On Friday
afternoon, ICAC officers returned to TVB City in Tseung Kwan O to collect
evidence. They did not comment further on the investigation. TVB external
affairs division assistant controller Tsang Sing-ming said TVB had immediately
suspended the arrested executives from their duties. He also said the
investigation would not affect the normal operations of the television station.
Stephen Chan is a well-known host for TVB. He became famous as host of the talk
show Be My Guest, which began in 2006. His fame reached a pinnacle in 2008 when
he was selected to carry the Olympic torch in Hong Kong in a ceremony marking
the Beijing Olympics. Chan was said to have lost the trust of TVB’s management
recently and had intended to resign from the television station this year, local
media reported. 
Suspended TVB general
manager Stephen Chan leaves ICAC headquarters in North Point. More people were
questioned yesterday. Investigations of alleged corruption involving TVB (SEHK:
0511) general manager Stephen Chan Chi-wan, his former assistant and three other
TVB employees have been widened to include TV stars and production staff.
Meanwhile the five arrested were freed on bail last night. Chan and performer
Ning Jin were released from the Independent Commission Against Corruption
headquarters in North Point at around 10 o'clock and the three others followed
soon afterwards. Chan and Ning left the headquarters separately. Ning was the
first to leave, in a taxi. Chan, wearing a baseball cap and a surgical face
mask, and looking tired, with his eyes baggy, followed. But his vehicle was
mobbed by reporters at the headquarters entrance for more than 10 minutes before
he was able to begin the journey to his home in Ho Man Tin. TVB external affairs
assistant controller Tsang Sing-ming confirmed that the ICAC's investigation was
continuing, with more than 10 graft busters turning up at the TV station's
Tseung Kwan O headquarters to interview other employees. He said they included
staff from the performers and production departments. The performers interviewed
included some of the most recognisable faces in town. Talent managers and
executives of the artiste department, as well as producers, were also
interviewed by ICAC investigators. ICAC officers arrested the five on Thursday
after receiving a report alleging graft. The commission said that Chan, TVB
general manager and marketing and sales manager, and Wilson Chan, the
broadcaster's head of business development, were arrested during an operation
codenamed Valiant. They were alleged to have accepted advantages from a director
of an advertising company for helping the company secure service contracts
related to various entertainment shows produced by the broadcaster. The ICAC
said the general manager and TVB variety show executive producer Wilson Chin
Kwok-wai were alleged to have provided corrupt assistance so that TVB performers
appeared in variety shows produced by the advertising company at for a lower fee
- half that charged for other similar shows. The advertising company director is
Edthancy Tseng Pei-kun, 28, Stephen Chan's former assistant and a former police
tactical unit officer. Tseng and Chan are reportedly close friends and have
often been in the media spotlight. Tseng is a director of six companies,
including Idea Empire Advertising and Production Company. One of the other
companies' registered addresses was allegedly Stephen Chan's home address. Tseng
was yesterday escorted by ICAC investigators to an apartment in Ho Man Tin. Ning
Jin, the TVB performer whose real name is Leung Chi-cheong, worked onstage on
Chan's talk show Be My Guest on TVB's Pay Vision Lifestyle Channel. The ICAC
confirmed that he was a shareholder in the advertising company allegedly
involved in the case. According to the company registry, Leung is the sole
shareholder of Idea Empire Advertising and Production Company. Tsang said no
other TVB employees were arrested yesterday. He declined to comment on the
investigation or say whether the initial allegation of graft came from TVB. He
said the arrests would have no effect on TVB's daily operations. TVB group
general manager Mark Lee Po-on has taken over Stephen Chan's duties. Chan and
the other arrested employees have been suspended. Tsang said TVB was concerned
about the well-being of the five, had been in touch with their families and was
ready to provide assistance, such as hiring lawyers. Asked about the reaction of
Mona Fong Yat-wah, wife of Sir Run Run Shaw and TVB deputy chairwoman, Tsang
said Fong knew about the case and trusted TVB staff to handle it. Stephen Chan
is said to be among Fong's favourite employees. Former TVB performer and veteran
show host Vinci Wong Yin-chi said that although performers were usually paid the
market rate to attend events and perform, fees still fluctuated. He said that
one factor would be the performer's relationship with the client. If a performer
were on good terms with the client, Wong said, he or she might offer a big fee
discount. "He or she might even do it for free," Wong said, and this was not
uncommon. But a big discount on fees did not necessarily mean the performer got
no benefit, Wong said. A job could be done for advantages that could not be
measured in monetary terms. "There are lots of grey areas in showbiz but they
have never been exposed before," he said. A veteran TV industry insider said
Stephen Chan had had too high a profile as a top manager at Hong Kong's largest
TV station and as a celebrity in TV shows. "He is a great manager, and a
talented show host ..." the insider said. TVB shares rose 1.37 per cent to
HK$37.1 yesterday. 
The Peak Tower on Google Maps
Street View. People's faces and vehicle licence plates are blurred so computer
users cannot identify them. Armchair explorers can now see the streets of Hong
Kong and Macau and feel like they are there in person with the launch of Google
Maps' Street View feature for the city. The feature, an add-on to Google Maps
that is also accessible from Google Earth, covers Hong Kong and displays
360-degree ground-level images. Users can zoom or expand pictures and even move
forwards and backwards as if they were out on the streets, simply by moving
their computer mouse. Street View was launched in the United States in May 2007.
It has since been introduced in other countries but only reached Hong Kong and
Macau on Thursday. The images used in the feature were captured by a car
equipped with nine digital cameras mounted on a pole on top of it. Since
December 2008, the Street View Car has driven 7,912 kilometres up and down the
streets of Hong Kong - the equivalent of crossing the Tsing Ma Bridge 3,663
times or the future cross-Pearl River Delta bridge 150 times. "We covered all
the places accessible by vehicles on public roads," Ben Luk, technical lead
manager for the Hong Kong Street View project, said at its official launch
yesterday. Product manager Vince Wu said the team had faced numerous challenges
in Hong Kong, including double decker buses that blocked views, air pollution
and cloudy weather. The Street View Car continues to patrol the streets to
update the photos. Views of popular areas are updated more frequently than the
rest. The new feature, though admired by many computer users, has raised privacy
concerns around the world even though blurring technology is used to ensure that
faces of passers-by in the photographs cannot be identified. Vehicle licence
plate are also blurred and the images are not real-time. Still, the feature
continues to attract controversy. This week, an image of a naked woman with her
face blurred was seen on Street View in Taiwan. It was soon removed and Google
search engine users will not be able to find the image again. Caroline Hsu, a
spokeswoman for Google, said: "We try our best to avoid things like that. We
have a system that lets users report offensive content." Hsu said the user
reporting system was by far the most effective way of monitoring and screening
content in the new feature because of the vast amount of images involved and the
number of users of the Street View facility. The Privacy Commissioner's Office
said Google had approached it last year seeking information about precautions it
should take regarding the security and use of personal data in Hong Kong. The
commissioner's office said Google had declared that the project only featured
photographs taken on public property and the imagery was no different from what
a person could readily see or photograph walking down the street. It will
continue monitoring the situation.
James Tien Pei-chun has been re-appointed
as chairman of the Hong Kong Tourism Board (HKTB) for a second three-year term,
a government spokesman said on Friday. Secretary for Commerce and Economic
Development Rita Lau Ng Wai-lan, referring to the reappointment, praised Tien,
whose first term as chairman began on April 1, 2007, for his leadership of the
HKTB. “The HKTB has helped sustain tourism development for Hong Kong and worked
to overcome the challenges brought about by the financial tsunami and the
outbreak of human swine flu,” she said. Tien’s new term of appointment starts
from April 1 of this year and lasts until March 31, 2013. Tien is the former
chairman of the Liberal Party. Besides serving as the chairman of the HKTB, he
is also a member of the National Committee of the Chinese People’s Political
Consultative Conference, Hong Kong. Tien’s reappointment means that, if he
completes his second term, senior members of the Liberal Party will have been in
charge of the Tourism Board for 12 consecutive years. Tien’s predecessor was
Selina Chow Liang Shuk-yee. She was the board chairman for six years and was
deputy chairwoman of the Liberal Party at the time. Tien was party chairman for
10 years until 2008 when he lost his Legco seat and the Liberal Party suffered
its biggest defeat in the Legislative Council elections.
The top US diplomat in Hong Kong on
Friday praised the territory for respecting individual freedoms, a day after the
US State Department slammed Beijing for human rights abuses. The comments from
Stephen Young, the new US consul general, came as Beijing and Hong Kong
democracy activists are locked in a battle over the pace of political reform in
Hong Kong. “Hong Kong’s economic success based on the rule of law and respect
for individual freedoms positions it at the forefront of a dynamic, modern
China,” Young said in a statement announcing his appointment. “I feel
particularly fortunate to work here as Hong Kong maps out the next phase of its
democratic development, which will help define the future of [Hong Kong] under
‘one country, two systems,’” he added. Beijing is committed to allow Hong Kong
to keep its market economy and British-style legal system until at least 2047,
under a policy known as ‘one country, two systems.’ Hong Kong’s chief executive
is currently appointed by a Beijing-friendly election committee, while half of
its 60-member legislature is chosen by interest groups allied to the mainland.
The remainder are elected by Hong Kong voters. Direct elections have been
promised within the next decade. In January, five lawmakers quit to force
by-elections that they said would highlight the city’s desire for direct
elections by 2012. The move angered mainland officials, who have labelled it
illegal and a threat to stability in the city of seven million. Pro-China
parties in Hong Kong have said they will boycott the May by-elections.
Shenzhen property tycoon Wang Zheng made a failed attempt to acquire a stake in
TVB (SEHK: 0511) before negotiating with its rival ATV, it was disclosed
yesterday. The news came as ATV signed agreements with five mainland-based
enterprises to establish strategic partnerships. Wang, a delegate to the Chinese
People's Political Consultative Conference who has lived in Hong Kong for about
20 years, had offered to invest HK$4 billion in TVB after the global financial
meltdown. This was revealed by Sun Wenjie, chairman of the China Overseas Group
- one of the strategic partners, at the agreement signing ceremony. Confirming
the news, Wang admitted that he had talks with TVB but failed to reach a deal.
He declined to give details. "The other side was not interested in me. There are
different options in investments and one has to consider his own ability and
other circumstances," he said. Wang said he did not approach ATV because its
shareholders had no intention of selling stakes at that time, as it was not long
after Taiwanese snack tycoon Tsai Eng-meng had invested in the television
station. Tsai, chairman of rice-cracker maker Want Want China, became an ATV
shareholder through his company San Want Media last February. Prospects of a
deal with ATV emerged later after major shareholder Payson Cha Mou-sing and
other shareholders - except Tsai - agreed to sell their stakes to Wang. After
the transaction, Wang will hold more than 50 per cent of ATV's shares. The
property tycoon said he hoped to formally take over the stakes in a few months.
However, the Broadcasting Authority said it had not yet received the company's
application for a change in shareholding structure, adding that it would closely
monitor developments at ATV. Speaking at the signing ceremony in Beijing
yesterday, Wang said he had earned more than HK$6 billion by cashing out his
shares in the Bank of Beijing. Asked if he would inject HK$4 billion into ATV -
as he had been prepared to do for TVB - the tycoon replied: "Perhaps not. [How
much I inject] would depend on needs."
Flamboyant Television Broadcasts general manager and talk-show host Stephen Chan
Chi-wan is under arrest for allegedly milking at least HK$10 million from his
employer. The high-profile host of TVB's Be My Guest was yesterday taken into
custody by the Independent Commission Against Corruption in relation to the
activities of a shell company said to be under his control. Also arrested on
corruption charges were four others: TVB's head of business development Wilson
Chan Wing- suen; variety department executive producer Wilson Chin Kwok-wai;
actor Ning Jin; and Idea Empire Advertising and Production Company director
Edthancy Tseng Pei-kun. Stephen Chan, 51, allegedly controlled the shell company
which accepted production contracts from TVB and then outsourced the work to
other production houses, according to a source. This allegedly allowed the shell
company to accumulate as much as HK$10 million over the years. Some of TVB's top
artists such as Bernice Liu, Moses Chan Ho, Raymond Lam Fung, Bosco Wong Chung-Chak,
Tavia Yeung Yi and Charmaine Sheh Sze- man had been forced to perform in major
shows and other functions, and even ribbon-cutting ceremonies, for free or at
very low pay. Each time the shell company would allegedly receive payments on
their behalf and pocket the difference. The scam involved some of TVB's biggest
shows such as Jade Singers Celebrate TVB Anniversary in October and last year's
Jade Solid Gold, the source alleged. The outsourcing was unnecessary as TVB had
the resources to handle these productions, including arrangements for venues,
transport, costumes, make- up, lighting and music, the source said. All it did
was allegedly allow the shell company to pocket hundreds of thousands of dollars
for each show. The ICAC is said to have launched the investigation two months
ago following complaints. Chan was arrested at his Argyle Street home at 6am
yesterday. There was another man inside his flat at the time who was not
arrested. Ning Jin was escorted by ICAC officers to Metro Harbour View in Tai
Kok Tsui while Wilson Chan and Wilson Chin were taken to ICAC headquarters in
North Point. The graftbusters yesterday refused to give details of the case.
They only confirmed that five people - four from TVB and a director from an
advertising and production company - had been "arrested in relation to
corruption allegations." But TVB identified the four staff involved, saying they
had all be suspended from duty with immediate effect "pending further
development." The production of Stephen Chan's weekly show Be My Guest has been
suspended but a prerecorded episode will be broadcast as scheduled. Shooting for
it was completed on Wednesday with former TVB and i-Cable executive May Fung as
Chan's special guest. His duties will be temporarily handled by group general
manager Mark Lee Po-on. The arrests came to light after TVB issued a statement
at noon saying three of its staff had been involved in an ICAC investigation.
Around 4.30pm, ICAC officers escorted Stephen Chan from its North Point
headquarters to TVB headquarters in Tseung Kwan O to conduct further searches.
Chan, dressed casually in a gray jacket, did not answer questions from the media
throng at the TVB office. All the five arrested were held overnight at ICAC
headquarters.
Hong Kong's Kwok Ka-ming is training
coaches. Hundreds of mainland soccer officials, referees and coaches were sent
to "anti-corruption rectification education camps" in Beijing and Guangdong
yesterday as the authorities seek to clean up the sport. More than 200 top
referees were told a three-day boot camp that started in Beijing was their last
chance to turn themselves in in return for more lenient treatment. "We are
giving those in trouble a chance of self-redemption," Xinhua quoted the new
chief of the China Football Association, Wei Di, as saying on Thursday. Wei
urged officials, referees and others caught up in match-fixing and corruption to
"come clean and confess" in exchange for leniency and warned that those caught
after the grace period would be punished. Head coaches of most of the national
soccer teams began a similar three-day camp in Sanshui, Guangdong. The coaches
received skills training earlier in the week from prominent coaches including
Kwok Ka-ming, Hong Kong's head coach from 1982 to 1990. Kwok guided his team to
a famous victory over China in 1985, knocking them out of contention for the
World Cup finals - an event that sparked rioting in Beijing. The mainland
coaches began by focusing on anti-corruption and rectification education
yesterday, the Guangzhou-based Yangcheng Evening News reported. Soccer has been
under the microscope since the second half of last year, when President Hu
Jintao and Vice-President Xi Jinping ordered sports authorities to clean up
corruption and match-fixing. Xi also vowed to improve the competitiveness of
national teams. Hong Kong is also looking to improve the standard of soccer,
with a government consultancy study released this week outlining a HK$75 million
to HK$100 million plan for the Hong Kong team to climb into the world's top 100
in the next five years. It is currently ranked 143rd. According to a training
schedule published by mainland media, the referees in Beijing met leaders of the
China Football Association yesterday, then broke up into small groups to discuss
the problems they are facing. They will have a test today and will be asked to
sign a letter of commitment tomorrow, pledging to oppose corruption. The 210
male and female referees at the camp will also have individual talks with CFA
leaders. Wei described the camps as a chance for all CFA officials, referees,
and others involved in match-fixing and corruption to come clean. "Party policy
is always 'to confess is to be punished leniently'," he said. The association
and anti-graft officials from the State General Administration of Sport had
evidence suggesting that some mid-level CFA officials could have been involved
in corrupt activities, Wei said. He confirmed that three referees - Lu Jun, who
refereed at the World Cup finals in 2002, Huang Junjie and Zhou Weixin - had
been taken away by police for investigation. Lu has twice been recognised as
Asia's top male referee, in 1998 and 2004. The crackdown on graft in the game
has brought down some big names. Nan Yong and Yang Yimin, former vice-chairmen
of the association, and Zhang Jianqiang, former director of its referees'
committee, were arrested for match-fixing and bribery this month.
A worker in a distribution
centre in Shenzhen carries out tests for pesticides on vegetables that are bound
for Hong Kong. Shenzhen authorities have set up two electronic systems to
monitor the safety of vegetables being exported to Hong Kong. The two systems
costing more than a million yuan (HK$1.13 million) were installed after the
mainland passed its first food safety law in September. One is a closed-circuit
television network that scrutinises all vegetable processing companies in
Shenzhen. Video cameras record how vegetables arrive at processing plants, how
staff test pesticide levels, how they process vegetables and how vehicles take
the products to the border. All footage is monitored by officers of the Shenzhen
Entry-Exit Inspection and Quarantine Bureau at the Man Kam To border post. The
other system records each processing company's information, including the
quarantine results of their vegetables, certificates approving their supply and
details of vehicles carrying the products to the city. It makes sure all
monitoring procedures are completed before the vegetables are driven across the
border, director of plant inspection and quarantine Wang Jun said. For example,
trucks would be stopped if records showed the vegetables they carried had not
passed quarantine or if they were not registered in the system. While the new
systems were expected to speed up checks, Wang did not say how many more trucks
could be inspected. Last year the bureau checked about 2,700 trucks at the
border, or seven a day - a fraction of the 260 vegetable trucks that cross the
border daily. Wang said no smuggled cigarettes or chickens were detected and 99
per cent of vegetables met safety requirements. Vegetable wholesalers in Hong
Kong have alleged that vegetables from unregistered farms are sent to the city
under the disguise of proper origin labels. But Wang said that was not the case.
Meanwhile, Hong Kong's Customs and Excise Department reminded retailers to make
sure that organic vegetables they offered for sale were truly organically grown.
A vegetable stall owner was fined HK$2,500 after pleading guilty at Fanling
Court on Thursday to a charge of supplying vegetables falsely claimed to have
organic authentication by the Hong Kong Baptist University.
China is gearing up to spend
hundreds of billions of yuan in the next few years to upgrade its extensive
power distribution network. The investment is intended to improve energy
efficiency and cut greenhouse gas emissions. Zhao Yuejin , a senior engineer at
the National Institute of Standardisation, said in Beijing yesterday the power
grid's efficiency would increase by 20 per cent when the upgrade was finished.
"We can save 70 billion kilowatt-hours in two decades, and that's equivalent to
saving 32 million tonnes of coal, or scrapping 69 million tonnes of carbon
dioxide and 3.9 million tonnes of sulphur dioxide from the air," he said. "The
government will subsidise it." Zhao is a key author of a new standard for the
mainland's transformers, to be launched in July. A transformer is a device that
transfers electric energy from one circuit to another with a change in voltage,
current, or other electrical characteristic. Zhao said more than 3 per cent of
the electricity generated on the mainland was "burned" in transformers,
accounting for 30 per cent to 40 per cent of the power grid's total energy
losses. The new standard requires efficiency increases of up to 66 per cent from
present levels. Zhou Sheng , China and Southeast Asia director of the
International Copper Association, estimated that implementation of the standard
would create a 450 billion yuan (HK$512 billion) market for efficient
transformers on the mainland. "It is difficult to estimate how much the final
investment will be, because of the fluctuating prices of raw materials, such as
copper, in recent years," he said. "But the Chinese government's determination
to upgrade its power grid is certain." Zhou said the State Grid would spend more
than 500 billion yuan in a couple of years to improve network efficiency and the
central government was subsidising the purchase of better transformers and
generators by more than 160 energy-intensive factories. The China Southern Power
Grid has announced plans to complete the upgrade of transformers in urban areas
this year. "State-owned companies such as the State Grid are eager to upgrade,"
Zhou said. "They have the money and technology. I am optimistic about the
implementation of the new standard." Tian Qiang , first deputy general manager
of Tebian Electric Apparatus Hengyang Transformer, the largest domestic maker of
transformers on the mainland, said the new standard offered domestic suppliers
an opportunity to beat overseas competitors. The mainland is the world's largest
market for power transition and transformation equipment, and global players
such as ABB, Siemens and Areva T&D have set up huge plants there. With superior
technology and product quality, they dominate the mainland market. But Tian said
domestic companies were catching up and would exploit the opportunity to enlarge
their market share. "After years of intensive research and development and
continuous support from the government, domestic transformer manufacturers have
acquired the technology and expertise to produce electric power equipment that
is globally competitive," he said. "But our biggest advantage over those global
giants is that we move faster and are more flexible [in response] to the rapidly
changing market conditions in China. "To us, the new standard is more of an
opportunity than a challenge." While large state-owned companies welcome the
change, some small and medium-sized companies may not be ready. "Not all
companies are willing to adopt new transformers," Zhou said. "They need not only
money but also hardware and software for the change." The European Union and the
International Copper Association launched a six million yuan project yesterday
to help small and medium-sized companies on the mainland make the transition.
Chongqing Communist Party chief Bo Xilai has appeared triumphant in Beijing this
past week, easily stealing the limelight at the otherwise dull and ritualistic
annual parliamentary session. Basking in the international media spotlight, Bo
has made little attempt to conceal his zeal for his maverick crusade against
organised crime gangs in the southwestern metropolis and his ambition for higher
office. His brand of ease and charm is on full display at the National People's
Congress, in sharp contrast to the rigid and faceless demeanour of the army of
bureaucrats. Several overseas media organisations even lavished him with the
title, "China's most charismatic politician", fuelling speculation about his
chance for a promotion in the run-up to the 18th Communist Party congress in
2012. In late 2007, when Bo, then commerce minister, was appointed Chongqing's
party chief at the height of his career, many thought he had lost his chance to
contend for higher positions because he had left the political centre stage at a
crucial time. But now, Bo, 60, a Politburo member with a populist touch and a
member of a faction of the party known as the "princelings", has bounced back
with the latest success of the anti- triad drive and has become one of the top
contenders for a seat in the so-called fifth generation leadership. Other
leading candidates include his predecessor in Chongqing, Wang Yang , now the
Guangdong party chief. Wang, 55, also a Politburo member, served as Chongqing
party boss from 2005 to 2007. Although both Bo and Wang are believed to have all
the right credentials for elevation with solid portfolios at both central and
local governments, their rivalry is seen by analysts as an indicator leadership
succession and attracts much attention. There is little doubt that Bo, son of Bo
Yibo , once one of the party's most influential elders, has reaped most of the
political gains from the relentless war on triads that he kicked off in June and
the extensive media coverage of it. Not surprisingly, his crackdown has won
applause among ordinary people in Chongqing, who had complained about
gang-related crimes for years. Many people outside Chongqing even expressed
wishes that their local leaders would follow Bo's example to take similar action
against organised crime. "Bo is helping his chances for elevation because senior
leaders realise the party needs greater popular support," said Professor Gordon
Chang, a US-based China expert and author of The Coming Collapse of China. He
said Bo's showmanship has shown the future of Communist politics, in which "most
candidates for senior leadership will have to demonstrate some populist base.
"Although many will grumble about `Mr Popularity', they will have to give in and
give him a promotion." But many have questioned the timing of the crackdown,
launched shortly before a gathering of the party's top echelon - the Central
Committee in September - saying it was Bo's calculated move to seek as much
media exposure as possible amid intense political jockeying for power before the
2012 meeting. Media-savvy Bo was clearly aware of such criticism. Asked if he
had a personal agenda behind his crackdown, he was clearly annoyed and refused
to give a direct response. Intriguingly, although he insisted he was not the
first local leader to crack down on gangs, Chongqing Mayor Huang Qifan has
openly compared the anti-triad campaign led by Bo and those of his predecessors.
"As we all have seen, this latest campaign is clearly the most efficient one,"
Huang said at a press conference last week. Without directly criticising his
predecessors, especially Wang, Bo described the crime problems in Chongqing when
he arrived as appalling. But his high-handed work style and his enthusiasm in
promoting revolutionary culture that harkens to Maoist days has earned him as
much praise as criticism. Dai Qing , a writer, questioned Bo's anti-triad drive,
which, according to critics, had proceeded at the expense of the rule of law.
"He may have snared many corrupt officials, but he has failed to eradicate the
political basis for deep-rooted corruption," she said. Trained as a journalist
at the Chinese Academy of Social Sciences in the early 1980s, Bo became mayor of
the booming northeastern port city of Dalian in the 1990s and governor of
Liaoning in 2001. "There is no doubt that Bo wants to use his political wisdom
and charisma to climb up the leadership ladder, but we all know it's just his
wishful thinking," Dai said. 
The mainland's top judge has expressed
concerns about training and ethical standards within the judiciary, as the
courts are stretched to the limit. "Some legal officials have an incorrect
understanding of legal concepts," Supreme People's Court president Wang Shengjun
told the National People's Congress in Beijing. "A small number do not have high
morals. Some cases drag on for a long time without resolution, and people
complain a lot." In January, a court gave a life sentence to the most senior
judge ever convicted of corruption. The Communist Party has warned that its rule
may be threatened if public anger is not nipped in the bud by stifling official
graft. Yu Jianrong, an expert on social unrest, wrote in the China Daily that
the law is failing to protect legal rights and thereby fanning public anger,
especially at the grassroots level. "Instead of directly confronting local
governments, people who feel unprotected are choosing to spread rumors," Yu
wrote. "At times when an individual's complaint or issue is mishandled, the
situation will turn awry and extreme actions, even violence, result." The legal
system is also struggling to tackle a rising workload amid booming economic
growth. Wang said the number of cases courts handled last year rose more than 16
percent on 2008, with more labor disputes, child kidnappings and internet
obscenity cases. "The contradiction between having many cases and few people
becomes more prominent by the day," Wang told the 3,000-odd NPC delegates. The
body of judicial officials has stayed at about 190,000 since 2005, while cases
per year have risen to 10.5 million from 8.3 million in that time.
China's CPI within normal range despite
February surge: expert - China's February consumer price index (CPI), a main
gauge of inflation, is still within normal range, although the figure surged
higher than expected last month. 
There are now more
billionaires in China than any other country besides the United States,
according to Forbes magazine. According to the latest list of rich people put
out by the magazine, the US continues to top the list with 403 billionaires. But
what has really been surprising has been the strong ascendancy of China. The
country increased its number of billionaires on the list to 64 in 2009 from 28
in 2008. The richest man in China is Zong Qinghou, who runs the
multi-billion-dollar soft drink firm Wahaha Group. Zong is ranked 103rd on the
list with an estimated wealth of around $7 billion. Not only has he nearly
tripled his wealth from $1.9 billion in 2008, he has also improved his standing
from 376th earlier. Plain-suited Zong, who is also a deputy to the National
People's Congress (NPC), told China Daily on the sidelines of the ongoing
session that he was not surprised at his ranking considering that his company
has been extremely profitable in recent times. Rupert Hoogewerf, the British
founder of Hurun rich report, said Zong's ranking does not come as a surprise. "Wahaha
means 'laughing children' in Chinese and is one of the most valuable brands in
the country. The self-made billionaire has always been focused on being the
leader in the beverage segment ever since he started his firm in 1987," he said.
The magazine said the number of Asian billionaires went up substantially as the
rich in the region expanded their fortunes at a quick pace last year. Lending
more credence to the increasing number of Chinese billionaires on the list is
also the fact that the nation is likely to overtake Japan as the world's
second-biggest economy this year. Hoogewerf expects Chinese entrepreneurs to
figure among the leaders soon and could even bag the top slot in the next 15
years as the economy continues to boom. He expects that it most probably could
be someone from the IT industry. Hoogewerf likens Zong to an army general who is
not too keen on surrounding himself with luxurious trappings. Luo Laijun, an
expert at the international economics department of Renmin University of China
said improvements in market mechanisms over the past decades have helped create
more wealth opportunities for Chinese people. "Zong is one of the first set of
Chinese entrepreneurs from the 1980s and they are now enjoying an upsurge in
fortunes," he said, adding that government has also chipped in with supportive
policies for financing and taxes. Zong's company resolved its long-standing row
with Groupe Danone last year when Wahaha acquired the French food giant's 51
percent stake in their joint venture. The two sides had locked horns over
Danone's complaint that Wahaha Group was running separate businesses like Wahaha-branded
drinks. 
Tourists enjoy the spectacular scenery
as a massive wall of water pours down near Hukou waterfall in Yan’an, in
northwest China’s Shaanxi province, on March 11, 2010. Hukou waterfall, in the
Yellow River, began thawing as the weather turned warmer, and is attracting many
tourists to come and admire its marvelous natural beauty. 
Shanghai
Expo giant pandas enjoy fresh bamboo shoots in Shanghai, east China, on March
10, 2010. Fresh bamboo shoots are offered for Shanghai Expo giant pandas from
Wednesday. 
Shanghai Expo giant pandas enjoy
fresh bamboo shoots in Shanghai, east China, on March 10, 2010. Fresh bamboo
shoots are offered for Shanghai Expo giant pandas from Wednesday. 
Colorful pavilions for
World Expo
The photo taken on
March 12, 2010 shows the Sunshine Valley, bringing natural light and fresh air
into Word Expo Axis in 2010 World Expo Site, east China's Shanghai Municipality.
A series of pavilions of 2010 World Expo are designed and constructed with the
idea of "Low-carbon World Expo". 
The photo
taken on March 12, 2010 shows the China Aviation Pavilion with double-layer
walls bringing in fresh air in 2010 World Expo Site, east China's Shanghai
Municipality. A series of pavilions of 2010 World Expo are designed and
constructed with the idea of "Low-carbon World Expo". 
The photo
taken on March 12, 2010 shows the Private Enterprise Pavilion, which gives a
"rainbow exterior" under the sunshine, in 2010 World Expo Site, east China's
Shanghai Municipality. A series of pavilions of 2010 World Expo are designed and
constructed with the idea of "Low-carbon World Expo". 
Photo taken on March
11, 2010 shows the Romania Pavilion for the 2010 World Expo in Shanghai, east
China. The preparation of 2010 World Expo has entered into the final phase of
decoration and exhibition installation at present.
Photo taken on March
11, 2010 shows the Britain Pavilion for the 2010 World Expo in Shanghai, east
China. The preparation of 2010 World Expo has entered into the final phase of
decoration and exhibition installation at present.
Photo taken on March
11, 2010 shows the Italy Pavilion for the 2010 World Expo in Shanghai, east
China. The preparation of 2010 World Expo has entered into the final phase of
decoration and exhibition installation at present. 
Photo taken on March
11, 2010 shows the Russia Pavilion for the 2010 World Expo in Shanghai, east
China. The preparation of 2010 World Expo has entered into the final phase of
decoration and exhibition installation at present. 
Photo taken on March
11, 2010 shows the Austria Pavilion for the 2010 World Expo in Shanghai, east
China. The preparation of 2010 World Expo has entered into the final phase of
decoration and exhibition installation at present.
Photo taken on
March 11, 2010 shows the Netherlands Pavilion for the 2010 World Expo in
Shanghai, east China. The preparation of 2010 World Expo has entered into the
final phase of decoration and exhibition installation at present.
Photo taken on
March 11, 2010 shows the Switzerland Pavilion for the 2010 World Expo in
Shanghai, east China. The preparation of 2010 World Expo has entered into the
final phase of decoration and exhibition installation at present. 
Photo taken on March
11, 2010 shows the Spain Pavilion for the 2010 World Expo in Shanghai, east
China. The preparation of 2010 World Expo has entered into the final phase of
decoration and exhibition installation at present. 
Photo taken on March
11, 2010 shows the Poland Pavilion for the 2010 World Expo in Shanghai, east
China. The preparation of 2010 World Expo has entered into the final phase of
decoration and exhibition installation at present.
A
senior mainland official yesterday said holding a referendum in Hong Kong is
illegal. Li Fei, vice chairman of the Legislative Affairs Commission of the
National People's Congress, said people would be mistaken to think such a move
is legal. The Basic Law makes no mention of referendum. "Under public law, if
there is no authorization to do something then it is forbidden," Li told
reporters in Beijing. NPC Standing Committee deputy secretary general Qiao
Xiaoyang said he has been monitoring the SAR's political development, and is
prepared to discuss the issue with others depending on opportunity and time.
Five pan-democrats resigned from the Legislative Council to force a May
by-election, which they hope will be seen as a "de facto referendum" on full
democracy. Legal scholar Lian Xisheng, at the China University of Politics and
Law, said the suggestion of a de facto referendum is tantamount to "challenging
the Basic Law blatantly," as it violates China's authority to decide on
constitutional development in Hong Kong. But he said since the Basic Law does
not have a section on referendum, those who vote will not be punished. He also
said there is no need to ask the central authorities to re-interpret the Basic
Law on this issue. But former secretary for justice Elsie Leung Oi-sie said Hong
Kong could submit a proposal to the NPC Standing Committee for interpretation if
it is confused, but added now is not the right time to do so. Civic Party
chairwoman Audrey Eu Yuet-mee, who is spokeswoman for the so-called
"five-district referendum movement," said the legality of an action should not
be determined by what some people are saying. "Something that may not be legally
binding doesn't mean it is illegal," said Eu, a barrister. Democratic Party
chairman Albert Ho Chun-yan said Hongkongers know the pan-democrats want to
trigger a "de facto referendum," and that even though the result has no
law-binding effect, Beijing should treat it as a referendum. 
Tourism officials are scrambling
to help 24 Filipino tourists abandoned on the group's arrival in Hong Kong,
giving the visitors free city tours while urging Manila to investigate the
travel scam. The tourists, who are civil servants from the southern Philippine
province of Surigao, were stranded at the airport for six hours on Tuesday night
after their supposed tour operator, Travel Connection-HK, failed to show up. The
group realized the firm had given out a fake address and phone number. Each
individual had paid HK$4,000 for the five-day, four-night tour. The Travel
Industry Council of Hong Kong, which is assisting the tourists, believes their
travel agent in the Philippines might have defrauded them. Lawmaker Paul Tse
Wai-chun assisted the visitors, settling them at a To Kwa Wan hostel on Tuesday.
They have since moved to a Tsuen Wan hotel for the rest of their stay. One
tourist, called Lucia, said she has no money with her, and thanked Hong Kong
tourism officials for their support. "We don't have any more money to spend in
Hong Kong," she said. TIC chairman Michael Wu Siu-ieng named three Philippine
agencies involved in arranging the trip: Nickel Travel and Tour Agency, MMP
Travels and Tour, and San Pedro Travel Service. MMP Travel's Melissa Plabon said
she transferred some 158,000 Philippine pesos (HK$26,723) to a "Johnny Liu" as
payment for hotel accommodation. A San Pedro Travel spokeswoman said she was
asked by Plabon on March 5 to book the hotel for the group, but she canceled
after Plabon failed to pay. After the tourists' plight came to light, they were
given free Macau ferry tickets and Disneyland admission tickets, and were asked
to pay US$70 (HK$546) for their tour and accommodation, instead of the usual
US$200. The Tourism Board sponsored their lunch at The Peak yesterday as part of
a city tour. They are are set to go to Macau today and Disneyland tomorrow,
before returning to the Philippines on Saturday. "To show Hong Kong's
hospitality, we have to [help] the tourists first," Wu said. "But we must charge
them because we don't want to set a bad precedent for receiving stranded tours."
TIC executive director Joseph Tung Yao-chung called on the Philippine government
to investigate the incident. Philippine Vice Consul Val Roque said: "If this is
indeed a case involving a tour operator, or an individual back home, then our
investigators will be informed by the consulate to take action." Tourism Board
chairman James Tien said there should be better communications between the
police and the board to help stranded tourists. The Tourism Commission said it
is highly concerned, and promises to improve its 24-hour report mechanism so
that it can respond to similar incidents. 
Tom Group (SEHK: 2383), a media arm of conglomerate Hutchison Whampoa (SEHK:
0013), will focus on making more of its core businesses available for 3G
wireless devices and applications after significantly narrowing its losses last
year. "Despite the slow economic recovery, the group continued to optimise its
business platform and has reduced its operating costs by 20 per cent," chief
executive Ken Yeung Kwok-mung said yesterday. Tom pared down its losses by 96
per cent to HK$61 million from HK$1.39 billion in 2008, helped by cost-control
measures and the steadier performance of its core internet, publishing, outdoor
media and television interests. Its operating profit - calculated from
marketing, selling and administrative expenses - reached HK$25 million, which
included a one-off gain of HK$91 million from the acquisition of shares it did
not own in Tom Outdoor Media Group. This compared favourably with an operating
loss of HK$1.37 billion in 2008, which included a provision for the impairment
of goodwill and other assets of HK$1.25 billion. Last year's revenue was down 11
per cent to HK$2.44 billion from HK$2.73 billion, as its publishing, outdoor
media and television businesses still posted losses. Yeung said the mainland's
adoption of high-speed 3G systems and the rapid construction of infrastructure
provided Tom with an opportunity to develop more innovative mobile internet
services with strategic partners, including network operators and handset
manufacturers. "Tom is becoming the brand of choice for users on the mainland
and in Taiwan who are looking for unique content," he said. The firm's
Huanjianshumeng website (hjsm.tom.com) introduced an e-book reader application
for Apple's iPhone to extend its reach to various reader groups. The
Tomdeveloped application allows readers to access books and best-selling novels
from a stock of more than 35,000. Yeung said Tom was also working closely with
authorities across the mainland to bring high-margin interactive outdoor media,
including wireless internet-linked flat-screen displays, to more cities. Tom,
which was founded in 1999, also promotes its e-commerce business Eachnet, in
which eBay has a 49 per cent stake, for new mobile broadband devices.
Cathay Pacific Airways (SEHK: 0293)
bounced back from its worst loss in history, posting a HK$4.69 billion net
annual profit, following an HK$8.7 billion loss in 2008. "We have seen a much
better fundamental change in the demand over the past year," said Christopher
Pratt, chairman of Cathay. Passenger traffic and prices for business class and
first class, two major profit drivers for Cathay, had been trending upwards over
the past four to five months. But passenger yields, or revenue per passenger per
mile, had yet to return to the level in 2007, he said. Disregarding the
substantial rebound in premium traffic, Cathay management is contemplating a
plan to insert an intermediate product between economy and business class, the
so-called premium economy class, in the cabins across its network. Pratt said
the airline was trying to identify changes in passenger demand over the longer
term. Demand had returned but had fundamentally changed, he said, adding that
Cathay wanted to install premium economy seats as early as 2012. Rival carriers
Singapore Airlines, British Airways and Qantas Airways also have four class
configurations. The move to premium economy seats to capture demand between
economy class and business class is part of a global trend, said Karen Chan,
transport analyst at RCM. "It could lure a passenger in economy to trade up his
ticket as well as capture the demand for a trade-down from the business class,"
Chan said. The ticket price for business class is usually four times economy
class while premium economy is just twice the price of economy. The
better-than-expected profit result from Cathay not only reflected a HK$1.25
billion one-off gain from selling down part of its stake in Hong Kong Aircraft
Engineering Co and the write-back of fuel hedging losses which amounted to
HK$2.76 billion, but also a solid recovery in its core business, mainly in the
fourth quarter. Cathay's operating profit before fuel hedging and non-recurring
items stood at HK$285 million, as opposed to HK$1.44 billion operating losses in
2008. In response to the most severe economic downturn since the Great
Depression of the 1930s, the carrier cut passenger capacity by 3.7 per cent and
cargo capacity by 13 per cent, instituted an unpaid-leave plan for staff and
delayed aircraft delivery. After an unexpected upswing in demand in the fourth
quarter, the airline decided to halve the unpaid-leave period to two weeks.
Senior management, including Pratt, chief executive Tony Tyler and chief
operating officer John Slosar may also resume receiving bonuses in the 2009
financial year after the decision to suspend it in 2008 as long as shareholders
give their approval in the annual meeting.
China Mobile to buy
stake in bank - China Mobile has agreed to buy a 20 per cent stake in Shanghai
Pudong Development Bank for 39.8 billion yuan (HK$45.25 billion) in cash. 
The luxury apartment
buildings Yang Xuhua passes on her way to work are a daily reminder of her own
frustrated efforts to buy a home. Prices for even modest apartments in Shanghai
have soared, putting home purchases out of reach for white-collar workers and
professionals. Yang and many other young Chinese are finding their aspirations
thwarted by an overheated property market that is enriching already wealthy
speculators, local officials and other Communist Party allies. It is a hard
reality for a generation that views home ownership as a given after reforms more
than a decade ago created a housing market open to the masses. It is also a
challenge for leaders whose reliance on rising property values and land sales to
developers risks letting the market spiral out of control. "I sigh at every
fancy apartment building I see on the way to work every day, but that won't
change anything," says Yang, whose train ride to work at a trading company takes
her past legions of high-rise apartments. "My salary increases, but it can't
catch up with rising house prices." The issue is getting top billing at China's
annual legislative session, the party's main forum for explaining its policies
and responding to public complaints. "We will resolutely curb the precipitous
rise of housing prices in some cities and satisfy people's basic need for
housing," Premier Wen Jiabao pledged in his annual address to lawmakers. The
government has raised taxes and required down payments - now a minimum 30 per
cent, even for first-time homebuyers - and warned big state companies and banks
against speculative, risky investments. 
Yesterday's trade figures intensified
the debate over when China will allow the yuan to appreciate. The continued
improvement in trade since late last year reinforced the views of those
economists who expect yuan appreciation to begin soon. Meanwhile, others believe
there will be no yuan strengthening in the near term because the latest figures
come off a low base and the trade surplus has been narrowing since November last
year. To further confuse matters, both groups attribute weekend comments by
central bank governor Zhou Xiaochuan as evidence to support their arguments.
Zhou cited the policy adopted in mid-2008 of holding the yuan pegged to the US
dollar as being part of the package to deal with the global financial crisis,
adding that the problem of how to exit from these policies will arise sooner or
later. Under the foreign exchange reform of 2005, China revalued the yuan in a
one-off appreciation of 2.1 per cent, de-pegging it from the dollar and linking
it to a basket of currencies with a limited trading band. It had gained about 20
per cent against the greenback before being the re-pegging. However, Zhou also
said: "We must be extremely prudent about our choice of timing" because the
economic recovery is not yet on a solid footing. Like many economists in
international investment banks, Wang Tao of UBS called the remarks "probably the
clearest signal yet that resuming yuan appreciation is a matter of timing". She
expects it to resume in the second quarter of this year, trading at 6.40 to 6.50
to the dollar by the end of the year. Goldman Sachs forecast a 5 per cent rise
in the next 12 months from the current 6.83, although it suggested the yuan was
"no longer strongly undervalued". It said factors including recent strengthening
of the dollar, the strength of the Chinese economy, struggles within the Group
of Seven and the risk of growing protectionist measures towards China, will
force Beijing to allow the yuan to trade in a wider band. But other economists
have different interpretations. Callum Henderson, the head of FX Research at
Standard Chartered Bank said, yuan appreciation "might come later rather than
sooner", as Zhou suggested the de-pegging would be part of the key economies'
overall exit strategy from their extraordinary and unconventional monetary
policies. Yi Gang, a vice-governor of the central bank and head of the State
Administration of Foreign Exchange, admitted on Tuesday that even inside China
there were different views about the yuan exchange rate. On Monday, Minister of
Commerce Chen Deming said the country would continue to reform its exchange rate
policy in a "gradual and controlled" manner.
Xie Zhenhua, Wang Guangtao and Zhang
Lijun, vice-minister of environmental protection. China's top climate negotiator
said the world must learn a lesson from the Copenhagen talks last year to ensure
a meaningful deal is produced at the UN climate meeting in Mexico later this
year. Although the Copenhagen meeting, which ended in a non-binding, face-saving
political accord China helped hammer out, was widely seen as a failure, it was
rare for Beijing officials to criticise it in such a way. The remarks yesterday
by Xie Zhenhua, deputy director of the National Development and Reform
Commission, came a day after Beijing formally announced its support of the
Copenhagen deal. "On top of the many topics to be tabled at the Mexico meeting,
first and foremost, we must learn some lessons from the Copenhagen talks and
ensure all parties have fair, open, transparent and broad participation," he
said. China has been fiercely criticised by both rich countries and many poor
allies for its leading role in secretly producing the controversial final
document along with the US and three other emerging economies - India, Brazil
and South Africa. "We should be aware of the lessons from the Copenhagen talks,
which ended with dismay for some countries," Xie said at a briefing on the
sidelines of the National People's Congress. "What they were not satisfied with
was not the content of the deal, but the procedure that produced it." He said
China had high hopes for the talks in Mexico in December but offered little
detail about what China, the world's biggest emitter of greenhouse gases, was
prepared to do to make the meeting a success. Analysts say Beijing is unlikely
to make any substantial concessions, such as accepting mandatory caps on carbon
emissions or allowing an independent verification of its domestic
emissions-cutting campaign. Although China made a conciliatory gesture in the
Copenhagen Accord, which pledged to provide more transparency in reporting and
monitoring carbon reductions in developing countries, Xie and other mainland
officials said yesterday that it was unfair to ask China to do more before rich
nations honoured their commitments. "China is using its own money to control
emissions ... and it is a sovereignty issue that we should not accept the
`measurable, reportable and verifiable' mechanism demanded by rich nations," Xie
said. Wang Guangtao , chairman of an NPC subcommittee on environmental issues,
said industrial nations that failed to hit the binding emission targets under
the Kyoto Protocol should stop pointing fingers. "Those countries, which should
pledge to take binding targets or have already done so, have continued to
increase their emissions, and they should be subject to such a monitoring
mechanism first," he said. Xie also urged the US to play a more constructive
role in leading the global talks on climate change. "So we hope the United
States will do more ... and we hope the US will not shift the responsibility for
taking more active action to other countries because of its rifts and
difficulties at home," he said. 
The first two women astronauts to
serve on a team that will undertake future missions have been selected. The
women were part of a "second batch" of seven people who will take over manned
space-flight duties from the first generation of astronauts, Xinhua News Agency
reported. The two, who were not named, were both pilots in the People's
Liberation Army Air Force, said Zhang Jianqi, former deputy commander of the
manned space program. China became the third nation to put a man in space in
2003, when astronaut Yang Liwei piloted the one-man Shenzhou-5 space mission. In
September 2008, it launched a mission that conducted the country's first space
walk. Zhang said the women astronauts were required to be married "as we believe
married women are more physically and psychologically mature." Women astronauts
"theoretically enjoy advantages over their male counterparts in terms of
endurance and circumspection."
Filipino tourists, who were cheated
by their travel agent and stranded at HK airport, are taken sightseeing around
Hong Kong by the Travel Industry Council on Wednesday. The Travel Industry
Council of Hong Kong (TIC) said on Wednesday it was helping 24 Filipino tourists
left stranded in Hong Kong, who claimed they were victims of a scam by tour
operators in the Philippines. The tourists, who are mostly civil servants
working for the Philippine government’s statistics department, joined a five-day
tour to Hong Kong, Macau and Shenzhen. They were told in the Philippines the
tour would be organised by a Hong Kong travel agency and they would be met by a
travel agent from a company named Travel Connection Hong Kong. Each of the
tourists paid 20,000 Philippine pesos (about HK$3,400) to join the tour. When
they arrived at Hong Kong International Airport on Monday evening, however, they
were not met by a travel agent. When the Filipinos went to their hotel in
Boundary Street in Prince Edward, staff told them their reservations had been
cancelled. The tourists reported the case to the police. Paul Tse Wai-chun, a
lawmaker representing the tourism sector, said he had helped the tour group find
accommodation at a hostel in To Kwa Wan. Tse said the incident was
“unfortunate”. “A tour agent in Hong Kong will try to arrange sightseeing trips
for them,” he added. “We have a responsibility to help them and give them a good
impression of Hong Kong,” he told local media. On Tuesday afternoon, the TIC –
an organisation that regulates Hong Kong travel agents – said it would also
treat them to a meal at a restaurant on The Peak. The TIC said they would also
try to liaise with local travel agents to arrange a visit to Shenzhen. Tse
stressed that this was an unusual case and hoped it would not happen again.
“Because the suspected deception happened in the Philippines, there’s not much
we can do to help legally,” he explained. TIC executive director Joseph Tung
Yao-chung said initial investigations revealed the case did not involve Hong
Kong travel operators. Tung said Travel Connection Hong Kong was not registered
in the territory. He said the name was probably made up by the tour operator in
the Philippines to cheat the tourists. “In Hong Kong, operators who wish to
provide sightseeing services must be a licensed travel agent and a member of the
TIC,” Tung said. “If this is confirmed as a travel agent scam, then the
Philippine government should handle it,” he added. Philippine vice-consul in
Hong Kong Val Simon T. Roque said the incident might be a case of deception by a
Philippine tour operator. “If the tourists wish to file a complaint against the
travel operator in the Philippines, then we would help them,” he said. 
The government is planning to
develop the rural town of Lau Fau Shan into an "eco-cultural park", with a
direct access road from the Wetland Park in nearby Tin Shui Wai. In a study that
is under way, the Planning Department has drawn up four zones in the 565
hectares of the northwestern New Territories, which covers the existing fish
market, the wetland area in Tsim Bei Tsui, a green belt west of Tin Shui Wai New
Town, and a coastal area with mangrove and oyster shell deposits near the
entrance to the Hong Kong-Shenzhen Western Corridor. The blueprint is an outcome
of a public consultation conducted last year. It will be discussed by the Town
Planning Board on Friday. The existing fish market would be revamped, with a
roundabout reconfigured as a gateway plaza. At the waterfront, a piazza would be
created as an extension of the market and provide space for shops and
restaurants. A former police station would become a restaurant and gallery to
showcase the history of oyster farming. Along the coastal mangrove groves near
the western corridor, two boardwalks would be added so visitors could see the
area upclose. To connect tourist spots in the area, the department suggests
widening a road between the wetland park and Lau Fau Shan and building a car
park for coaches. The road would shorten the journey between Tin Shui Wai and
Lau Fau Shan to eight minutes, saving five minutes and relieving traffic
congestion on weekends, Yuen Long District Council chairman Leung Che-cheung
said. Lau Fau Shan Chamber of Commerce vice-chairman Chan Choi-hing said
businessmen in the area welcomed the plan, but the government was unable to tell
them when the makeover would occur. He said the plan was necessary, as the
existing fish market was small and got too crowded on weekends. Traffic jams
were also a problem. A green group, however, has reservations about the plan for
one of the four study areas - a green belt west of Tin Shui Wai. The green belt,
privately owned and planned for tourism and private residential development, had
seen illegal dumping over the past few years, said Alan Leung Sze-lun, WWF
senior conservation officer. "It is not very appropriate for the government to
initiate a change of land use for development in these areas, which would amount
to encouraging the illegal activities," he said. Leung also had reservations
about adding walking trails in Tsim Bei Tsui, which would disturb birdlife in
the area.
Round-the-clock border posts for
Hong Kong-Zhuhai-Macau Bridge - Border posts at the three ends of a
multibillion-dollar highway across the Pearl River Delta will be open around the
clock, although that might not be possible immediately after the bridge's
opening in 2016. An agreement signed by authorities from Guangdong, Hong Kong
and Macau released yesterday said the three governments would determine the best
date for 24-hour operation to start. The move is seen as another measure to
boost use of the bridge, which after a 20-year delay in construction, is facing
competition from other road networks and infrastructure - including a
soon-to-be-built link that connects Shenzhen and Zhongshan. It has been promised
that the toll will be kept at the minimum needed to repay a 22 billion yuan
(HK$25 billion) bank loan, interest, and the bridge's repair and maintenance
expenses. The governments are not supposed to make a profit from the toll, which
means it may eventually be reduced. The agreement also specifies the rights and
responsibilities of the three governments concerning the construction,
operation, maintenance and management of the Hong Kong-Zhuhai-Macau Bridge's
main structure. As reported by the Post, Guangdong will replace Hong Kong as the
chair of a committee that will make major decisions on the 37.73 billion yuan
main bridge, which is over mainland waters. The province will also nominate the
head of a bureau under the committee to oversee daily operations. The committee
will comprise nine members - three from each government. Each team will nominate
its own leader, and the leader or an appointed substitute must attend committee
meetings to ensure no parties are left out of major decisions. In the event of a
split in opinion, the governments will seek consensus through negotiation. The
agreement bans the parties from resolving differences via legal action. If
disagreements on matters such as the setting of tolls and the number of
permitted vehicles cannot be resolved, each government will report the matter to
a high-level body comprising Beijing representatives. One billion yuan will be
set aside from the project's capital fund for the setting up of the bureau that
oversees daily operations. It will also be responsible for raising loans to
cover any shortfall in capital. The three governments will each pick a deputy
chief to the bureau. The tendering of the main construction work will be
regulated by mainland laws, which means firms without a permit from mainland
authorities cannot bid. However, the contracts worth more than 400 billion yuan
may fall under the scrutiny of the World Trade Organisation and should be opened
to all international bidders. Local engineers said they suspected most major
contracts would go to mainland firms. 
An influential advisory body on
civil service pay has recommended cutting the starting salaries of civil
servants with university degrees by about HK$2,000.
Political reform with Chinese
characteristics is intriguing talk - It has become routine that top mainland
leaders renew pledges to push ahead with political reform during the
parliamentary plenary sessions. This year is no exception. Although the promises
still lack specific details as they did in previous years, the officials seem to
have changed their tone this year. There is a greater sense of urgency that has
rarely been seen for years. And the change of wording has left many China
watchers puzzled, with some overseas media even speculating on the possibility
of substantial reform. But other analysts have cautioned against such a rosy
prediction, citing the leaders' poor track record in honouring their commitment
to greater democracy and political reform. The latest case in point is some
intriguing remarks yesterday by parliamentary chief Wu Bangguo , the second most
powerful man in the Communist Party. In his annual report to the National
People's Congress, Wu talked about the lessons of the Cultural Revolution as he
elaborated on the importance of political reform. "At the third plenary session
of the 11th Central Committee [in 1978], the party reviewed the lessons since
the founding of the People's Republic, particularly those of the Cultural
Revolution," he said. Although that tumultuous 1966-76 era ended more than three
decades ago, it largely remains a taboo subject on the mainland. Analysts noted
leaders have tried in the past to avoid mentioning the Cultural Revolution
because of its sensitivity about the reappraisal of Mao Zedong and reopening
bitter political wounds. Beijing-based political observer Hu Xingdou said
authorities apparently felt the heat from a group of leftists who were nostalgic
for Maoist days and critical of the reform and opening-up. "By mentioning the
1978 meeting that gave a comprehensive review of the Cultural Revolution and
ushered in a new era, the leadership wants to reiterate its determination to
continue with the reform and opening-up," he said. Analysts noted that Wu's
remarks also echoed those of Premier Wen Jiabao , who stressed the importance of
political reform in his annual work report just a few days ago. It was the first
time Wen said economic reform and the modernization drive would not be a
complete success without political reform. But the concept of political reform
that Chinese leaders often talk about is vastly different from what the people
anticipated and the authorities have no intention to review the Cultural
Revolution, according to analysts. Another Beijing-based analyst, Liu Junning ,
said the public should not read too much into the words of leaders. "They always
talk about political reform, but they are talking nonsense because they don't
mean it at all," he said. 
Authorities in California wooing China BYD automaker - Chinese automaker BYD has
made headlines in California as it is considering locating its U.S. office and
assembly line in the state, local media reported on Tuesday.
China's auto sales
maintained steady growth in the first two months of 2010, buoyed by the nation's
car purchase incentives and strong demand brought by the week-long Spring
Festival holidays. The combined auto sales in January and February surged 84
percent from a year earlier to 2.9 million units, with February's figures alone
reaching 1.2 million units, up 46 percent year-on-year, according to the China
Association of Auto Manufactures (CAAM) Tuesday. 
China Gezhouba Group Co Ltd (CGGC), one of the largest engineering and
construction companies involved in the Three Gorges Dam project, said overseas
contracts are likely to take up half of its business in the future, according to
its president Yang Jixue. "Overseas markets will account for 50 percent of our
business in the next three years, from the current 36 percent, boosted by
massive projects in Africa, the Middle East and Central Asia regions," Yang
said. The group now has 44 overseas projects - mostly hydroelectric-power
related - in 17 countries or regions, according to Yang. The State-owned
infrastructure company, based in Central China's Hubei province, last month
signed a 4.97 billion yuan ($727.78 million) contract with a Kazakhstan company
to set up a hydroelectric-power plant in that country. The contract with
Kazakhstan Natural Gas Technology Co Ltd would allow it to construct a
254-megawatt hydroelectric-power station on the banks of the Chilik River in
Alma-Ata, Kazakhstan. The volume of Gezhouba's overseas business ventures is
much higher than its larger rivals - the average of which is 20 percent - mainly
because as a leading builder of hydroelectric projects, Gezhouba has a limited
market at home compared with its larger rivals which are more experienced in
other infrastructure construction, industry analysts said. "As the main
contractor for China's Three Gorges Dam, Gezhouba is very experienced and
advanced in hydroelectric projects, which afforded the builder many
opportunities in the market, said Li Zhirui, an industry analyst with First
Capital Securities. "China's construction contractors, as a whole, have big
advantages because of their low labor costs in the global construction market."
However, they have a smaller market share in more mature markets including the
US and Europe, Li said. Yang estimated that the group would secure 50 billion
yuan in new orders in 2010, with 20 billion yuan from foreign markets and 30
billion yuan from the domestic market. 
Tsai
Eng-meng takes centre stage at a press conference yesterday in Tsim Sha Tsui to
hit back at Payson Cha in the ongoing ATV dispute. The share drama at Asia
Television (ATV) took a new twist yesterday as media and tobacco tycoon Charles
Ho Tsu-kwok made an unscheduled appearance. Sing Tao chairman Ho, who is not a
shareholder in ATV, weighed into the war of words between shareholders Payson
Cha Mou-sing and Tsai Eng-meng, saying he had "similar experience" to Tsai's in
dealing with Cha some 10 years ago. Ho made his remarks at a Tsim Sha Tsui hotel
where Tsai had earlier held a press conference to hit back at Cha, who, Tsai
said, had gone too far in accusations against him. Cha last week said Tsai was
being unreasonable and unjust, in a Court of First Instance action in which he
has accused Cha and his brother and fellow shareholder Johnson Cha Mou-daid of
breaching their fiduciary duty. "Mr Cha said I am unreasonable and unjust. Today
I want to say Mr Cha ... has gone too far," Tsai said yesterday, "The reason is
simple. You do not honor the promise, and do not follow the spirit of the
contract ... We respond by taking the case to the court. Then you say we were
unreasonable and unjust. Is that not going too far?" Appearing after Tsai had
left the scene Ho said he had called the Taiwanese billionaire earlier in the
day to comfort him. "I rang Mr Tsai, telling him there is no need to get too
angry. I told him I also had similar experience before," said Ho, who did not
elaborate, only hinting it had been "some small" disputes with Cha more than 10
years ago over the acquisition of Sing Tao News Corporation.
A senior fireman died and three
colleagues were overcome by smoke while battling a six-hour blaze at a knitting
factory in Cheung Sha Wan yesterday. One of the injured firemen was last night
in a serious condition and another in stable condition at Caritas Medical
Centre, while the third was allowed to leave at 10.30pm. The fire broke out at
8.19am in the 800-square-meter Wing Ngo Knitting Company on the fifth floor of
the 49-year-old nine-story Lai Cheong Factory Building on Castle Peak Road. It
was put out at 2.24pm. The blaze, which was upgraded to third alarm at 9.50am
and to fourth alarm at 10.58am, spread beyond the premises to engulf around
2,400 sqm. Four breathing apparatus teams were sent to the scene. Holding back
tears and visibly upset, Director of Fire Services Lo Chun-hung said the dead
senior fireman, Yeung Chun-kit, 47, was part of the Lai Chi Kok fire station
breathing apparatus team. Yeung was reported missing at 10.45am, about 20
minutes after he entered the building. He was found buried under a pile of goods
and furniture about nine meters from the entrance around 12.10pm and was taken
out about 45 minutes later. Lo said a team, chaired by a deputy chief fire
officer, will be set up to look into the cause of the fire. Police said the
Kowloon West regional crime unit will also investigate. Fire Services Department
Staff's General Association chairman Chiu Sin- chung said Yeung's partner, who
was also reported missing, is being treated at hospital after being found. The
industrial block, built in 1961, does not have an automatic sprinkler system as
it was not a requirement in buildings built before 1973, the fire chief said. He
said it is possible that as a result of the latest tragedy, regulations
controlling fire service equipment in old buildings may be tightened. Acting
Chief Executive Henry Tang Ying-yen, Secretary for Security Ambrose Lee
Siu-kwong and Secretary for the Civil Service Denise Yue Chung- yee all
expressed their condolences to Yeung's family. Tang also praised the bravery of
the firemen. Lo said the loss of life comes just as firefighters are undergoing
training with the new breathing apparatus equipment. He said new digital radio
communications equipment will be put in place next year and fire resistant
tunics will arrive in the next financial year. 
Patients with diabetes and high blood
pressure from Sha Tin and Tai Po will be offered subsidies of up to HK$1,400 a
year under a new scheme aimed at persuading more people to go to private
doctors.
Beijing is considering whether
to let all Hong Kong legislators attend the Shanghai World Expo in May. Central
Government Liaison Office director Peng Qinghua said in Beijing yesterday that
communication "has been made" about the matter and that it is under
consideration. He did not say when a decision will be made. "It would be best if
we can join the opening ceremony," said Legislative Councillor Jeffrey Lam Kin-fung
in Beijing. "However, [the central government] allowing a visit to the Expo
opening is another matter." Meanwhile, former chief secretary and former
legislator Anson Chan Fang On-sang said she disagreed with Vice President Xi
Jinping's statement that Hong Kong people do not understand the Basic Law. She
said Hong Kong people know it very well. "Calling for real universal suffrage is
absolutely not in breach of the Basic Law or against the decision by the
Standing Committee of the National People's Congress in 2007," said Chan. "We
are just calling for the promise to be fulfilled." Chan also described as
"inexplicable" Peng's earlier remarks that certain slogans used in the "de facto
referendum" were a challenge to the Basic Law. But she agreed that some words in
the slogans might be too radical. Last Saturday Peng said such words as
"uprising" and "liberate Hong Kong" were intimidating. 
The photo taken on March 9, 2010 shows an imperially inscribed Taishanghuangdi
white jade seal made during the Qing dynasty (1644-1911), with an estimated
value over 50 million HK dollars, in Hong Kong, south China. Sotheby's is going
to hold the Chinese Ceramics and Works of Art 2010 Spring Sale at the Hong Kong
Convention and Exhibition Center on April 8, 2010. Comprising over 330 lots, the
estimated total value is about 430 million HK dollars. 
Actors of the movie "Fire of Conscience"
Leon Lai (R) and Richie Jen pose during the press conference of the 34th Hong
Kong International Film Festival (HKIFF) in Hong Kong, south China, March 9,
2010. The 34th Hong Kong International Film Festival. 
Hong Kong actress Miriam Yeung poses
during the press conference of the 34th Hong Kong International Film Festival (HKIFF)
in Hong Kong, south China, March 9, 2010. Miriam Yeung is the actress of the
HKIFF gala premiere movie "Love in a Puff." The 34th Hong Kong International
Film Festival (HKIFF) will run from March 21 to April 6.
Shanghai mayor Han Zheng is to visit Taiwan early next month as relations across
the Taiwan Strait continue to warm. Han, who has been invited by his counterpart
in Taipei, will be there to promote World Expo, which kicks off in Shanghai in
May. Han will lead a delegation that includes the Shanghai Symphony Orchestra.
The visit, starting on April 6, is expected to serve as another boost to
cross-strait ties after Liang Baohua, the head of the Communist Party in Jiangsu
province, led a delegation to Taiwan last November. Relations have improved
markedly since May 2008 when China-friendly Ma Ying-jeou was elected president.
China may boost
representation for its vast rural population, a move expected to grant rural
residents more say in deciding their own fate and the development of the
country. The National People's Congress (NPC) on Monday started discussion on a
draft amendment to the Electoral Law, which, if passed, will grant equal
electoral rights to urban and rural citizens. Currently, there are about 3,000
NPC deputies, but each urban deputy represents only a quarter the number of
constituents compared to a rural deputy. Before 1995, the ratio was even wider
at one to eight. It was originally intended to protect the interests of what had
been a smaller urban population surrounded by hundreds of millions of farmers
and ensure the leading role of the country's working class. According to the
national census in 1953, when the first version of the Electoral Law was passed,
the urban population made up only about 13 percent of the country's total, and
an equal ratio of rural and urban representation would have meant an excessive
number of rural deputies in the top legislature. However, with rapid
urbanization and rural economic development, official figures show about 47
percent of people lived in urban areas last year and parity is expected by 2015.
"The time is right for equal representation, which is conducive to expanding
democracy," Wang Zhaoguo, vice-chairman of the NPC Standing Committee, said on
Monday while explaining the draft to lawmakers. The draft amendment does not
include details of how many people a NPC deputy will represent. If passed, the
NPC Standing Committee is expected to decide on the specifics before the next
elections take place in 2012. Lawmakers and experts said the revision, referred
to as major progress in the development of democracy, would help increase the
number of farmer NPC deputies. Farmer deputies are more familiar with the
situation in the countryside and the change will help the top legislature better
understand rural areas and make more scientific decisions, said Xu Anbiao, a
member of the NPC Standing Committee's legislative affairs commission. Yang
Shengchuan, a NPC deputy from a village of Ziyuan county in South China's
Guangxi Zhuang autonomous region, said the change is the most exciting news he
has heard since the country abolished the agricultural tax. "I'll tell my
villagers about the change and ask them to cherish their rights," he said. Chen
Sixi, a NPC Standing Committee member, said the change may increase the number
of farmer deputies, but it would not necessarily result in parity. He said as
the election of people's congress deputies is based on household registered
population, it is possible for a rural election district to elect a non-farmer
deputy, as the candidates could be business people or workers who still have
their household registered in the rural areas, or even local villagers or town
leaders. "But this could be further improved in the future with the reform of
China's household registration system," Chen said. The draft amendment also
stipulates that the number of grassroots deputies of farmers, workers and
intellectuals should be guaranteed. Currently, a large number of NPC deputies
are government officials and entrepreneurs, leaving few seats for farmers and
workers. It also added stipulations such as "organizing more face-to-face
contact between candidates and electors to allow candidates to introduce
themselves and answer voters' questions". 
China, the world's biggest holder of foreign exchange reserves, renewed its
commitment to the US Treasury market on Tuesday but said it would be wary of
adding to its gold holdings.
Members of Miss Etiquettes for
the 2010 Shanghai World Expo attend a ceremony that marks the beginning of a
2-month training course in Hangzhou, East China's Zhejiang province, March 8,
2010. Nearly 300 Miss Etiquettes began a 2-month training course Monday in east
China's Zhejiang Province, preparing them for the 2010 Shanghai World Expo.
After the World Expo opens on May 1, the Miss Etiquettes will welcome visitors
from around the world in east China's Shanghai Municipality, said Sun Weimin
with the Bureau of Shanghai World Expo Coordination. The 2-month training
includes three stages, namely military training, etiquette training and real
time practices, with the first and the third practices held in Hangzhou, capital
of Zhejiang, and the second held in Shanghai, Sun said. "The purpose of the
training is to prepare the Miss Etiquettes in knowledge, etiquette and ability
so that they can properly and fully represent China," Sun said. The women, most
of them college students, were selected from over 10,000 contestants in a
nationwide competition over a span of eight months. More than 30 million people
voted for the contestants over the Internet. The training will be broadcasted on
TV. At the end of the training, the top ten Miss Etiquettes will be awarded, and
assigned major tasks during the Expo. Shanghai Expo will be the biggest ever of
its kind with 192 countries and 50 international organizations participating.
The 184-day Expo is expected to have 70 million visitors. So far, over 60 heads
of state are scheduled to come.
The Fire Services Department is
investigating why it took more than two hours to find and pull out a veteran
fireman who died after being trapped in the wreckage of a factory gutted in a
blaze yesterday. 
Senior fireman Yeung Chun-kit, 47, died in hospital after being pulled from the
rubble of the Cheung Sha Wan building. His colleague on a two-man team, Ng Wai-lam,
33 - who went missing at the same time but was found earlier - was in a serious
condition last night. Two other firemen, Wu Kam-hung and Chiu Wing-fai, were
overcome by smoke and taken to hospital. Wu was discharged last night and Chiu
was listed in a stable condition. The department has set up a task force to
investigate the cause of the fire and the death of the fireman. Detectives from
Kowloon West regional crime unit have launched a separate inquiry. Yeung and Ng,
from the Lai Chi Kok fire station, were among four two-member teams with
breathing equipment sent into the blazing fifth-floor knitwear factory in the
nine-storey Lai Cheong Factory Building shortly before 10.30am. They were
ordered to withdraw when the blaze became more intense but the control officer
lost contact with Yeung and Ng at 10.45am. Ng was found unconscious on the floor
at 10.58am, but Yeung was not found until more than an hour later at 12.10pm -
lying with his legs trapped under rubble 10 metres from the entrance and about
three metres from where Ng was found. It took a further 45 minutes to remove
him, fire officers said. The blaze, which broke out at the building at 479
Castle Peak Road at 8.19am, was upgraded to a third-alarm fire at 9.50am. Fires
are rated on a scale of one to five, according to their seriousness. An office
worker said she heard the sound of the fire alarm at about 8.20am before she ran
out of her seventh-floor office. "There was dense smoke in the stairwell while I
ran downstairs," she said. Chief fire officer (Kowloon) Li Hung-sum said the
firefighting had gone well until windows of the unit facing Castle Peak Road
broke in the severe heat. "Fresh air poured into the fire through the windows
and the fire then became more intense," he said. After the four teams were
ordered to withdraw, firefighters were sent in to find the missing firemen. They
found Ng unconscious on the floor shortly before the blaze was upgraded to a
fourth-alarm fire at 10.58am. "There was intense heat in the unit and a lot of
furniture and goods collapsed, scattering on the floor. And the intense heat
caused the ceiling fixtures such as electrical wires to hang down ... the unit
was filled with dense smoke. Our colleagues were unable to see the situation in
front and behind them," Li said. He said this made it difficult for firefighters
to move forward and search for Yeung. When Yeung was found, "the lower part of
the body was trapped under collapsed furniture and cartons of goods", Li said.
Firemen took another 45 minutes to remove the items on top of Yeung and they
brought him out at about 12.55pm. He was taken unconscious to Princess Margaret
Hospital, where he was declared dead. Director of Fire Services Gregory Lo
Chun-hung has set up a task force to conduct a full investigation. "[It] will
investigate the causes of the fire and death of the fireman," he said. A fleet
of 33 fire engines and five ambulances with about 200 firemen were sent to fight
the fire, which was extinguished at 2.24pm. The building, in use since 1961, is
one of 650 industrial buildings built before 1973, which mostly lack sprinkler
systems.
A fireman walks from the scene of a
blaze in a Cheung Sha Wan factory building in which a colleague died after being
trapped under debris. A delay in rescuing the man is the subject of an inquiry.
Former doctors should come out of retirement to look after poor and
chronically-ill senior citizens on a charitable basis, a Hong Kong Academy of
Medicine think-tank says. An academy survey polled 1,000 elderly people aged 65
last year and found more than two-thirds suffer from at least one chronic
disease. The survey revealed nearly 70 percent of Hong Kong's elderly who suffer
from chronic conditions paid their own medical fees, while more than 40 percent
said medical expenses influenced their spending on normal daily living. Think
tank chairman John Leong Chi-yan said retired doctors should return to practice
to provide medical service for the elderly. "We observed more than 60 percent of
respondents belong to the low income group, which explains why public clinics
are crowded and causing an imbalance between the public and private medical
sectors." He said the expansion of medical services and low charges under the
Hospital Authority will only increase demand for public medical treatment.
"Using charitable treatment by the retired doctors, we hope to relieve the
pressure on public treatment in response to the continuous demand from the
elderly. The present subsidy scheme of providing five HK$50 vouchers per year
for private medical treatment should be continued," Leong said, adding that an
increase to HK$100 per voucher may direct some elderly to private doctors.
Academy president Raymond Liang Hin- suen said the proposal will be submitted to
the Hospital Authority and the Department of Health. "We have interviewed 112
medical doctors aged 60 and above and more than 66 percent said that they are
willing to join the scheme after their retirement," Liang said. "This shows the
possibility of our proposal, regardless of the small sample size. We are going
to establish a register so any [academy] fellows or doctors who are interested
can apply to be included in the register."
A Hong Kong woman has sought the
help of a national lawmaker after being told that she was not allowed to marry a
Shenzhen police officer in his city because of a dated regulation that banned
civil servants from marrying "foreigners". In a letter to Hong Kong National
People's Congress deputy Choy So-yuk, the woman complained that the Shenzhen
Public Security Bureau had based its decision on legislation that predated Hong
Kong's 1997 handover. "Hong Kong has now returned to the mainland for 13 years,
and nobody would dare say that Hong Kong people are not Chinese," the woman, who
identified herself only by her surname, Ng, wrote. State security laws
preventing public officials from marrying non-Chinese citizens came into force
in 1984, while Hong Kong was still under British rule and a year before the
Joint Declaration was signed. As a result, the Shenzhen authorities said Hong
Kong citizens were considered "foreigners", and the marriage would not be
approved. In her letter, Ng said she had checked with other cities in Guangdong
and discovered they did not have similar restrictions barring police from
marrying Hongkongers. She urged Choy to take up her case with authorities in
Beijing to preserve her "freedom to love and freedom to marry". "I feel really
helpless," Ng wrote. "We have no other demands; we just want a legal marriage."
Choy, who is attending the NPC annual plenary session in Beijing, said she would
raise the issue at a meeting with officials from the Ministry of Public Security
today. "Hong Kong has returned to the motherland for more than 10 years," Choy
said. "Why should Hongkongers still be considered foreigners and therefore be
barred from marrying mainland police officers?" Legal experts are divided over
whether the rule applies and how easily it could be overturned. Hong Kong-based
Chinese law professor Ong Yew-kim said there appeared to be no legal basis for
barring the marriage. "There was never a law or legal document which said that
Hong Kong residents were considered foreigners, so this is a matter of
interpretation," Ong said. "The Ministry of Public Security should amend this
internal practice." But Guangdong-based marriage law expert Liu Weimin said the
matter lay in higher hands, as the definition of Hong Kong citizens as
"non-mainland citizens" was political rather than legal. "There must be special
rules governing the marriage for certain positions in the civil service, so this
is not a matter of just abolishing the concerned regulation," he said. Only the
central government or the Supreme People's Court can redefine the status of Hong
Kong citizens, he said. 
The mainland's ambitious high-speed
railway program will deal a "devastating blow" to its airlines and could even
kill off short- to medium-haul routes, the chairman of China Eastern Airlines (SEHK:
0670) warned yesterday. "For trips under 500 kilometres, the impact is fatal,"
Liu Shaoyang said. "For trips between 800 and 1,200 kilometers, the impact will
range from significant to marginal." He said the government should better define
the roles of express railway services and airlines because high-speed trains
were siphoning off airlines' customers, leaving them weakened in a competitive
market. "Just like the airline fever we saw a few years ago, now it's high-speed
railway fever," Liu, 51, said. "The government should work out a reasonable
division of labour between the two to prevent overlapping and a waste of land
and other resources." Liu is well placed to comment. Before joining China
Eastern, the mainland's second-biggest airline, he was president of China
Southern Airlines - its biggest - from 2004 to 2008. He was also among the
country's first airline pilots, in the 1980s. Liu said the central government
could also help airlines by opening up the skies for commercial flights. "We
should speed up air traffic control reform as soon as possible because we all
know that it is the key reason for so many flight delays," he said. "In our
country, airlines just have 20 per cent of air traffic control rights; others
are controlled for non-airline purposes. But in the United States, the aviation
industry's share is more than 80 per cent." Nearly 80 per cent of air traffic
control rights on the mainland are in the hands of the People's Liberation Army
and state security departments. Hong Kong's Airport Authority says 6,568 flights
from Hong Kong to mainland cities were delayed by mainland air traffic control
problems over the past three years. Fears have also been expressed that the
high-speed railway program may affect China's ambitious plan to develop a new
generation of regional jets - the ARJ21 Xiangfeng. The 5 billion yuan (HK$5.68
billion) program - which began in March 2002 - is a key project of the 10th
five-year plan. The 70-seat, twin-engined jet, with a range of more than 2,200
kilometers and costing US$20 million each, is designed for domestic routes. The
Civil Aviation Administration of China still sees increasing demand for
airlines. Xinhua said yesterday that Beijing planned to buy 218 aircraft this
year, including jumbo jets and aircraft for regional routes. The report cited
administration director Li Jiaxiang as saying that the government would spend 90
billion yuan expanding 25 airports this year. The administration expected 700
million passenger trips a year by 2020, with the number likely to double by
2030. Xinhua has reported that 3.7 trillion yuan will be spent on the high-speed
railway network in the next six years. "It seems like the Ministry of Railways
and the civil aviation authorities are competing with each other for their own
interests," Hu Xingdou, a Beijing-based economist, said. "But I think it will be
a good chance for the aviation industry to implement reforms."
North Korea has agreed to lease a port on
its northeastern coast to Jilin province for 10 years, giving China a directly
controlled foothold on the Sea of Japan for the first time in more than a
century. Li Longxi, a National People's Congress deputy and head of the Yanbian
Korean Minority Autonomous Prefecture, told China News Service that the deal,
for exclusive use of a port in Rajin in the "special city" of Rason, would boost
the regional economy and give landlocked Jilin valuable access to trade routes.
China has worked to acquire a foothold in Rajin for several years, after North
Korea designated Rason a free-trade zone. A Chinese company secured the right to
use Rajin's No 1 port two years ago and it has since been used to transport coal
to southeastern China and Japan. However, the new deal will give China much more
freedom, because it will be able to choose what facilities to build at Rajin's
No 1 port and how to use them. "With the lease, China can develop the port and
build infrastructure there as it desires," said Liu Ming, director of Korean
Peninsula studies at the Shanghai Academy of Social Science. 
Wan Qingliang (left) is favoured to
take over from Zhang Guangning. The Guangdong deputy governor in charge of Hong
Kong and Macau affairs has emerged as the leading candidate to be the next mayor
of Guangzhou, according to various officials. Wan Qingliang, 46, the youngest of
the province's eight deputy governors, is widely regarded as a rising star after
being promoted to his current position in 2008. He has been closely involved in
cross-border issues and represented the province in the Guangdong-Hong Kong
Co-operation Joint Conference last month. Current Guangzhou mayor Zhang
Guangning is tipped to be promoted as the city's party secretary, while
incumbent party boss Zhu Xiaodan, who was appointed a deputy governor late last
month, will become permanent deputy governor, a more influential post, according
to officials from several Guangzhou and Guangdong government departments.
Beijing blamed Washington for causing
"serious disturbances" in their relationship but also called for the two powers
to work together to get ties back on track. Foreign Minister Yang Jiechi
reiterated criticism of US arms sales to Taiwan and President Barack Obama's
meeting last month with the Dalai Lama but appeared to leave the door open for
the two sides to mend fences. "The United States should properly handle the
relevant sensitive issues and work with the Chinese side to return the China-US
relationship to a track of stable development," Yang said. Stressing that a
harmonious relationship is vital to both sides and to the world, he added: "We
hope the United States will work with us in a joint effort toward this end." He
was speaking in his annual press briefing held on the sidelines of National
People's Congress. Yang repeated China's assertion that the troubles were the
United States' fault and called for "credible steps" by Washington to mend ties.
However, he did not give any specifics and unveiled no new retaliatory steps
against the United States. He said the world needed policy coordination on
stimulus exit strategies and the Group of 20 forum of major economies should
play a bigger role in world economic affairs, adding that meetings this year
should focus on economic rebalancing. Yang also strongly signaled reluctance to
back sanctions on Iran over its nuclear program, but did not shut the door
completely to the possibility. Beijing has long said sanctions are not an
effective tool for resolving international disputes, including over Iran, which
is also a major source of crude oil for China.
Although it is facing the biggest challenge worldwide in its century old
history, General Motors has found the Chinese market is giving it a glimpse of
hope for business survival. Last year, the US auto firm harvested record profits
in China, benefiting from the robust economic growth in the country. The US
automaker reported 1.83 million units sold across the country, an increase of 67
percent from the previous year. It compared with a 46 percent year-on-year
increase for China's total automobile sales in 2009, spurred by the Chinese
government's prompt stimulus package for the automobile industry amid global
stagnation. The stimulus included halving taxes on smaller cars with an engine
capacity of or less than 1.6-liters and subsidies for trading in old vehicles.
GM's high hopes for bumper year in China market"The year of 2009 was very
successful for GM in the China market. We forecast further growth in 2010 as we
are confident in the Chinese government's active moves to support the local
economy in such a global slowdown," said Tim Lee, president of Shanghai-based GM
International Operations, which operates in all GM's markets outside North
America. "The biggest concern for a promising future here is that the Chinese
government is increasing money supply," said Lee. He told China Daily that he
believed China's investment climate was "still very good this year". He
continued: "GM will continue to invest business here, not only bringing more
products but also adding capacity for every joint venture." In addition to
expanding its capacity through adding production shifts and developing its
existing assembly lines to meet robust market demand, Lee said that GM was still
considering building a new plant in China in the near future to accommodate
strong growth in the world's largest auto market. "We have enough capacity to
build the cars we need to sell this year and we need to continue to look for
ways of increasing our capacity. That will mean we will have to add a new plant
some time in the near future," said Kevin Wale, president and managing director
of GM China. For the first two months of 2010, GM's sales in China rose 73.6
percent from a year earlier to a record 393,498 units. "Our February sales
numbers, with year-on-year growth rate of 51 percent, exceeded our expectations
despite the Spring Festival holiday," said Wale. "The continued strong market
demand portends another record year for both the industry and GM in China in
2010." Wale also said the company expects to sell more than two million vehicles
in China in 2010, up at least 13 percent from last year. 
Retailer embarks on strategic expansion on
the back of high sales - It's 1 am one day during this year's Spring Festival
and hundreds of consumers are on a shopping spree, waiting in long queues,
trolleys piled high with goods, at Carrefour's Tiantongyuan outlet in the
Changping district of northern Beijing. The night time craze was symbolic of the
retail giant's strong performance in China. Claudio Gouveia, vice-president of
Carrefour China and also general manager of the North Territory of Carrefour
China, said the country has become one of the most significant and also
fastest-growing markets for the retailer. Carrefour last year pulled out of
Russia and southern Italy amid the economic meltdown following decisions to quit
Japanese, South Korean and Mexican markets in 2005 and 2006, because of
"unsmooth operations". It sold its stores to local enterprises. However, the
retailer maintained steady expansion in China. Gouveia said that Carrefour
opened 22 new stores in 2009, boosting the total number of outlets to 157 across
the country. It plans to open 20 to 25 new outlets this year. He added that the
company was satisfied and very optimistic about its business in China because
the country's household consumption rates have been high. In the past year,
Carrefour benefited a lot from the stimulus measures, introduced by the Chinese
government. For example, the authorities subsidized energy-saving household
appliances in an effort to encourage their purchase. Gouveia said Carrefour had
a very clear strategic plan for the Chinese market and would be focusing on
constructing hypermarkets with an average size from 6,000 sq m to 11,000 sq m.
The company was making great efforts to balance its presence in big cities and
also second and third tier cities. It has been operating its retail business in
45 cities across China. "Currently, Carrefour has a good presence in big cities
while more new stores will be in second and third tier cities," said Gouveia.
The French company will be the first international retailer to enter the Inner
Mongolia autonomous region, where it plans to build a new outlet in 2011. The
retailer plans to develop its China-based outlets alongside the construction of
local infrastructure and arrival of new businesses. "For instance, there will be
a new airport in the Daxing district of Beijing's southern suburb and there may
be a new outlet nearby. I believe we have many opportunities in this area," said
Gouveia. In response to its rival Wal-Mart, which is planning to build about 50
new stores each year, adding to its current total of 160 outlets, Gouveia said
the focus of Carrefour was to keep a good balance between the rhythm of
expansion and the quality of the stores. "Each new store will have energy-saving
programs which are expected to save 20 to 25 percent of energy compared with
traditional stores," he said. 
News apparently travels fast and
loose in Hong Kong's business community, especially when it concerns public
companies. Share prices often rise or fall sharply days before any public
announcement, despite the fact no one is supposed to trade on information that
hasn't been released yet. The share prices of 20 companies listed on the main
board of the Hong Kong stock exchange that announced major transactions between
November and January moved much more sharply than the benchmark Hang Seng Index
in the two days before they suspended trading ahead of making an official
statement. Not every stock rose or fell, but the ones that rose jumped an
average 7.7 per cent in the two days before suspension compared with a
corresponding 1.9 per cent gain in the Hang Seng Index. Those that declined
dropped 3.2 per cent compared with a 1.2 per cent decline in the index. Overall,
the shares of the 20 companies rose 3.2 per cent on average in the two days,
almost 13 times the average gain in share prices of 0.25 per cent during those
periods. It's a phenomenon that makes investors cynical and challenges efforts
by regulators to keep a lid on insider dealing. "That's quite normal in the Hong
Kong stock market, especially for third-line or fourth-line stocks," said Ricky
Tam Siu-hing, chairman of the Hong Kong Institute of Investors. "A lot of people
in the market seem to know the news before the company [announcement] or the
general public, so they buy ahead of it." Shares in one of the companies
concerned, Continental Holdings, rose 17.3 per cent over four days. Shares in
another, Pearl Oriental Innovation, rose 61 per cent in a week. Shares in Jackin
International rose 13.6 per cent in a day. In each case the sharp movements were
followed by a suspension of trading and an announcement. Insider dealing is
generally defined as an act of trading that leverages privileged information not
available to the general market. It has been punishable as a civil breach of the
law for many years in Hong Kong but was only classified as a criminal offence in
2003. It is sometimes described as a victimless crime, but a trader with inside
knowledge who buys shares from someone who doesn't is taking advantage of the
seller; and a perception that insider trading is rife undermines the integrity
of the market, making serious investors less likely to want to participate. Hong
Kong's vibrant trading culture is still strongly influenced by word of mouth;
deals can be done during dim sum and tips shared over tea. It does not take long
for rumours to gain momentum given the city's small size. Inadvertent insider
dealing may also stem from a lack of legal backing for local listing rules. It
is up to companies themselves to decide which information is price-sensitive and
when to report it to the market.
Thomson Reuters, a provider of financial and professional information, has
joined a string of global companies that have relocated senior executives in
Asia, transferring Eric Frank, president of its investment and advisory group,
to Hong Kong from New York. In other high-profile moves, HSBC Holdings (SEHK:
0005) chief executive Michael Geoghegan started working in Hong Kong last month
and RBS Coutts, the international private banking arm of the Royal Bank of
Scotland Group, announced last week the relocation of global co-chief investment
officer Nick Cringle to Hong Kong from London. Thomson Reuters employs more than
50,000 staff in 100 countries. Although Frank is the first of the group's senior
executives to be located in Hong Kong, more may follow. The relocation of top
executives to the city shows international firms have shifted their focus to the
East, as Asia has been less affected by the financial crisis than the United
States or Europe, analysts say. In an interview with the South China Morning
Post (SEHK: 0583) , Frank said his relocation was aimed at enabling him to get
closer to customers in Asia, where the company wanted to focus its attention.
"Asia is the region that promises the fastest growth, not just at the moment but
also for the future. My relocation will strengthen Thomson Reuters' commitment
to the Asia-Pacific, which is the highest-growth region for this company," Frank
said. "China and India will also have a lot of mergers and acquisitions and
initial public offerings. They will be a future growth story." He said a typical
business trip to Asia required visiting five markets in one week. After paying
the price of long flights and jet lag, there was not much time left to meet
customers and local staff. "Living in Hong Kong means we can meet with Asian
clients, particularly those in China, regularly and frequently. This is how we
can build relationships and offer the right products for them," Frank said. The
investment and advisory division of Thomson Reuters reported US$2.2 billion in
revenues last year. Globally that was 2 per cent less than a year earlier, but
Asia enjoyed 8 per cent growth, with China reporting strong growth of 20 per
cent. The division forms a major part of the business of Thomson Reuters,
providing data and workflow tools to help corporate and investment bankers as
well as fund managers to make decisions on mergers and acquisitions.
Subscription fees range from a few thousand US dollars to millions of dollars
per year, depending on the scale of data and services. Frank said many
investment banks in Britain and the United States were hit hard by the global
financial crisis and had to cut back on his company's services. "When bankers
needed to tighten their belts, they cut down on subscriptions at the end of
2008. But we saw things turn better at the end of last year," he said. Now he
was based in Hong Kong, Frank said, he planned to meet customers and develop
local products. "We would like to produce more products in local languages and
fit the need of the domestic markets," he said. Besides the mainland, Hong Kong,
India, and Japan were growing fast, and he said he would like to build up a big
business in the region. Frank, a father of three, has nearly 20 years of
experience in the financial services sector. He joined Thomson Financial in 2000
and worked in various senior positions before being appointed to his current job
in July 2008. Frank said he and his family were looking forward to settling in
Hong Kong. His wife, Michelle, a former lawyer, arrived two weeks earlier and
has already arranged a home and the children's education and adopted a local
dog. "It feels like I am starting a new job," Frank said. "Hong Kong is a great
city."
Stanley Ho leaves the Hong
Kong Sanatorium and Hospital, where he had spent seven months. The 88-year-old
billionaire was then driven to his home in Repulse Bay. For as casino king
Stanley Ho Hung-sun left hospital after a seven-month stay - apparently fully
recovered - his horse came home a 109-1 winner. The billionaire, 88, slowly
waved as he was wheeled out of the Hong Kong Sanatorium and Hospital in Happy
Valley yesterday afternoon after seven months of care. His daughter Pansy Ho
Chiu-king said the tycoon was in good health and excited about going home. "His
health has fully recovered," she said, "He has been gaining weight in the past
two to three months and his weight has returned to the level before the
accident." The tycoon was admitted to the intensive care unit last August after
surgery to remove a blood clot on the brain. He reportedly fell at home and
injured his head in July. Ho appeared numb and unable to smile as he was wheeled
out of the front door of the hospital towards a car. After a word in his ear
from daughter Pansy, he gave his wave to the media pack. Two doctors were
accompanying the tycoon, who had to be carried from his wheelchair into the car.
Ho has been exercising daily and undergoing physiotherapy, according to Pansy
Ho, managing director of Shun Tak Holdings (SEHK: 0242, announcements, news) , a
property developer and shipping operator of which her father is chairman. "He
does routine exercises everyday," she said, "In the past few days, he has been
very excited." The tycoon returned to his luxury house in Repulse Bay. Viva
Pronto, a horse owned by the tycoon, collected HK$1.3 million as winner of the
Group Three Hong Kong Macau Trophy at 109-1. The annual event, in its seventh
year, offers total prize money of HK$2.3 million. Ho, as owner, will pocket 56
per cent of the winnings. Hong Kong-listed casino operator SJM Holdings, of
which Stanley Ho is chairman, controls about 30 per cent of Macau's gaming
market. Its market share is the highest among the six operators in the city, the
world's biggest gambling hub. The tycoon held Macau's gambling monopoly for four
decades until 2004, when billionaire Sheldon Adelson opened the Sands Macao,
leading the charge of US casino giants to the only place in China where casinos
are legal. But Ho still controls 19 casinos, the two tallest buildings in Macau,
horse and dog-racing tracks, a large jetfoil fleet, a helicopter service, five
hotels, department stores, and residential and commercial property. He has four
wives, one of whom has died, and 17 children. Ho has not been entirely confined
to hospital. On December 20 he was allowed out to attend the 10th anniversary of
Macau's handover and even enjoyed a brief chat with President Hu Jintao. He had
to leave Hong Kong at around 6am on a wheelchair to attend the Macau event. When
Hu praised him for his contribution to Macau and wished him good health, the
tycoon surprisingly responded in English. Ho had undergone speech therapy,
according to someone close to his family. It was unclear whether the therapist
rejuvenating his speech was an English speaker. 
Hong Kong property tycoon Henry Cheng Kar-shun has called for the relaunch of a
government-subsidised flat sale scheme that he and fellow private developers had
once pressed hard to have abolished. Cheng, a member of China's top political
advisory body, now says the resumption of the home ownership scheme (HOS) could
help ease public discontent in Hong Kong amid a heated property market. The
subsidised housing scheme, under which lower-priced flats are built for sale to
the less well-off, was scrapped in 2002 by the government amid pressure from
private developers, who criticised the scheme as an intervention in the free
market. Cheng's remark yesterday also contrasted sharply with the position of
the Hong Kong government. Just last month, Financial Secretary John Tsang Chun-wah
said the government "would not lightly return to the market", when asked if he
would consider relaunching HOS. Cheng, managing director of New World
Development, said: "From the perspective of a developer, certainly I would not
agree [with relaunching HOS]." "But from the perspective of the whole society, I
think the government should resume building HOS flats. These flats take care of
the needs of middle-income families who may not afford to own their own homes.
"While low-income families can rent public housing, middle-income families
should also be taken care of. This group of people now have big discontent with
the society." Cheng, a member of the Chinese People's Political Consultative
Conference Standing Committee, said: "Why are there so many protests? Why are so
many people unhappy with the government? It is because many people cannot enjoy
a good living environment and they find many hardships in making a living."
Cheng was speaking on the sidelines of the plenary session of the consultative
conference in Beijing. Cheng appreciated the possible adverse impact of his
proposal on the property market in Hong Kong but said this could be minimised by
imposing tighter regulations on the resale of HOS units. At present, HOS flat
owners are subject to a set of restrictions when they want to resell their
units. In general, they can resell the units to public estate tenants after the
first three years, with no need to pay premium to the government. Cheng also
dismissed as "just a show" a government proposal to cool the property market by
means of a moderate increase of stamp duty on transactions of luxury properties,
hinting it would have no effect. Meanwhile in Hong Kong, some speakers at the
RTHK City Forum yesterday remained cautious about relaunching HOS. Wong
Leung-sing, an associate director of research at Centaline Property Agency,
said: "The heated market is partly due to the low bank rate ... People look for
investment opportunities but do not want to try again in the financial markets
... many investors turn to buying flats. Building more HOS flats may not be
addressing the right question."
Taiyuan, the capital of coal-producing
Shanxi, is a huge source of business for DAC Management. Taiyuan is only a few
hundred kilometres south of bustling, modern Beijing, but could be a world away.
Decaying grey and brown buildings and yellow-brown wheat fields dominate the
Shanxi capital's landscape. From the air, the city resembles a mouthful of
rotting teeth. Because Shanxi produces most of China's coal, Taiyuan is also the
mainland's most polluted city. Coal plants belch out giant, cauliflower-shaped
soot clouds. The wide grey roads melt seamlessly into the bleak grey sky. Miners
in Mao caps and drab, grey clothing bicycle slowly to work and home, seemingly
unexcited about reaching either destination. This is the place Matthew Nelson, a
manager at hedge fund DAC Management, left Wall Street for. The tall, affable
Iowa native, an alumnus of Merrill Lynch and JP Morgan, now specialises in
buying non-performing loans - debts Chinese firms have racked up but cannot
repay. His employer, founded by American former Arthur Andersen accountant Phil
Groves, is Hong Kong-based. Still, Nelson spends most of his working days in
Taiyuan. While DAC owns loans attached to failed firms throughout China, Shanxi
is a huge source of business. Despite the coal bosses zooming around in 4X4s
with blacked out windows, the province has had its fair share of economic woes.
It was one of several northern and western regions that became blighted with bad
debts in the early 1990s, when scores of state-owned enterprises failed. As
unpaid staff rioted en masse, their employers sometimes scored easy cash by
halting bank loan payments. In 2003, Shanxi was ravaged by Sars. Shivering in
the sub-zero cold and standing a clear foot taller than most of Taiyuan's
inhabitants, Nelson pulls his baseball cap closer over his blond hair as he
trudges through the snow in Taiyuan's lacklustre city centre. He is viewing
assets owned by DAC's debtors that the fund wants to seize and sell off. These
include a lavish, upscale karaoke bar, frequented by local coal tycoons who must
spend at least 1,500 yuan (HK$1,705) a night on alcohol and girls to book a
room, the lobby of a four-star hotel, a shopping mall, an apartment block and a
car park. "Let's hang back a bit," the hedge fund manager says as he approaches
the car park. It is clearly not good for him to be seen snooping around. Nelson
is something of an upmarket bailiff. His fund buys its bad debts from China's
four asset management companies - China Orient, Cinda, Great Wall and Huarong.
The government created these in the late 1990s to hoover soured loans off its
biggest banks' books in time for their Hong Kong and Shanghai listings. And even
though the state is wealthy, most of DAC's debtors are state-owned enterprises.
DAC owns 254 bad loans in Shanxi, Nelson says. Half of these debts are over 10
years old. The rest are at least six years old. So companies who have got away
without repaying loans for years are not happy when the foreign hedge fund turns
up on their doorsteps demanding repayment. 
Li
Xinyang, an employee of a Shenzhen telecommunications company, dresses like a
sports star on a budget. The 22-year-old wears a Li Ning (SEHK: 2331) T-shirt
and a pair of 361 Degrees sports shoes on his weekend shopping trips. He is part
of a growing band of loyal customers of the mainland's rapidly expanding
sportswear brands. Foreign brands like Nike and Adidas are far too expensive for
the young office worker. Earning slightly more than 2,000 yuan (HK$2,270) a
month, Li spends about 200 yuan on clothes and shoes each month. "It's much
better to buy clothes with a brand name than something totally unknown," said
Li, who came from Yunnan to work in Shenzhen two years ago. "At least people can
tell from the logo that you are not wearing something too cheap. "I know some
foreign brands may be of better quality but local brands are often half the
price of the foreign ones and they are also not too bad." Sportswear is one of
the fastest-growing consumer sectors as more and more Chinese like Li choose
sports apparel as a fashionable and comfortable casual wear option for daily
life. While Nike and Adidas hold the lion's share of the market, a batch of
home-grown brands has elbowed their way in. They have aggressive expansion
strategies, backed by reasonable quality products and cheaper prices. Nike and
Adidas are the top two sportswear retailers on the mainland, with a combined
33.7 per cent market share in 2008. Li Ning holds 11.1 per cent, followed by
Anta Sports Products with 8.6 per cent, according to marketing firm Frost &
Sullivan. The home-grown sportswear retailers are making up ground quickly. Li
Ning, Anta, Xtep International (SEHK: 1368, announcements, news) Holdings and
361 Degrees International all achieved 20 per cent to 40 per cent growth in both
turnover and net profit in the first half of last year.
Xie Meng appears to have led a charmed life - given a Western education, he has
been groomed to take over his well-connected father's mainland property empire.
But the young Xie was not so keen to take up the family mantle when he returned
from his overseas studies. As the only child of Xie Tieniu, owner of China's
biggest shopping centre, he was expected to rough it with the workers as he
learnt the ropes of the family business. Educated in Singapore and the United
States from the age of 15, Xie felt uneasy in his new working environment that
required him to deal with mainland construction workers as they built the
family's mega Grandview Mall in Guangzhou. "I put on helmet and boots and headed
for the construction site in Guangzhou's Tianhe district every day during this
time," recalled Xie, now the vice-chairman of the Guangzhou Grandview
Enterprise. Being immersed in the mud and dirt of a major building site meant
the young manager soon grew up. The 30-year-old's first job was with the
company's planning department. His job was to develop a good relationship with
the construction workers, and make sure they could complete the mega shopping
mall before 2005. That was the year the government ordered an end to new
construction of shopping malls as part of austerity measures to regulate the
property market. With a total gross floor area of 420,000 square metres, the
development includes a 30-storey office tower and a 48-storey apartment-hotel
tower. It also has a mega shopping mall with 300,000 sq metres of leasable area
- the biggest in the country. The project was initially taken on by Thailand
agribusiness Charoen Pokphand Group, which owns the Superbrand Mall in Shanghai.
But the group walked away from the project in 2000, leaving a big hole in the
city's central business district. Xie's father - a Beijing-based retired army
officer - took up the challenge to fast-track development of the four billion
yuan (HK$4.54 billion) project. Things were far from trouble free, with
obstacles ranging from tight deadlines and financial difficulties to finding
tenants. At one time, there was speculation that the company's loans had been
called in by mainland banks, which planned to foreclose on its Da Peng
International Plaza. Now called Heyin Plaza it is located next to Garden Hotel
in Guangzhou. His father's strong military background reportedly kept the
company together. Thanks to Premier Wen Jiabao's four trillion yuan stimulus
package improving liquidity and speeding up the property market recovery, the
company has passed the worst time. The shopping centre and the office tower have
been completed and construction work on the residential-hotel tower will be
completed by the end of this year. With that project out of the way, the young
man groomed for the top is preparing to take on further challenges. One of them
is going up against Swire's soon-to-be completed shopping centre across the road
in Tianhe district. 
China is negotiating to extend
its high-speed railway network to up to 17 countries, a mainland rail expert who
has taken part in every major express line project said yesterday. Wang Mengshu,
professor at Beijing Jiaotong University and a member of the Chinese Academy of
Engineering, said most of these countries were in southeast and central Asia.
Most are inadequately developed but rich in mineral and energy resources, and
the talks involve a trade of resources for technology. Wang said China had
proposed three high-speed railway projects to these countries, with negotiations
already at the technical stage. One possible network involves Southeast Asia,
connecting Kunming , Yunnan, with Singapore, with service through Vietnam,
Thailand, Myanmar and Malaysia, though the exact routing is unclear. Another
network would start from Urumqi, capital of the Xinjiang Uygur Autonomous
Region. It would go through Central Asian countries such as Kazakhstan,
Uzbekistan and Turkmenistan, and then possibly extend to Germany. The third
network would originate in Heilongjiang in the northeast and go north, cross
Russia and aim for Western Europe. These lines would be built using China's
high-speed railway standard. The maximum speed would be 350 kilometers per hour,
with the most economical operating speed 200km/h.
A pair of shoes lie on the
stage as (from left) Secretary for Home Affairs Tsang Tak-sing, acting chief
executive Henry Tang and youth commission chairman Bunny Chan open the summit.
It was another day for the so-called "Post-80s" protesters - those disenchanted
youth born in the 1980s - to make their latest statement against the government.
This time the venue was the Youth Summit, co-organised by the Home Affairs
Bureau and the Commission on Youth, where government officials and the public
were supposed to come together to share opinions and discuss government policy.
However, the biggest stir was caused by a man who threw a pair of sports shoes
at acting Chief Executive Henry Tang Ying-yen, Secretary for Home Affairs Tsang
Tak-sing and Commission on Youth chairman Bunny Chan Chung-bun, who were opening
the event in Chai Wan. The incident reminded the audience of the Iraqi reporter
who threw his shoes at former US president George Bush in December 2008. While
yesterday's shoe-thrower was being dragged away, he shouted for the government
to support a minimum wage. Police would not reveal his identity as he was not
charged. The man later said he was jobless for nine months and angered by the
government's inaction in helping youths find jobs. The former computer repairman
added he chose to act in this manner because he believed using foul language in
public was inappropriate. 
The central government liaison office
director Peng Qinghua (pictured) has made his most strongly worded criticism yet
of the "de facto referendum" movement, saying the use of the word "uprising" in
its campaign slogan was intimidating. Five lawmakers from the League of Social
Democrats and the Civic Party quit the Legislative Council to trigger
by-elections which they want to be seen as a de facto referendum on the pace and
scope of democratisation. Peng made his remark as he elaborated on Premier Wen
Jiabao's message to Hong Kong in the State Council's work report. He said Wen's
comment was specific. In the central government's annual work report delivered
on Friday, the premier urged the special administrative region government and
its people to "work together", and to "accommodate and help each other". At a
meeting in Beijing with local deputies to the National People's Congress (NPC)
yesterday, Peng said Wen's call carried specific and profound meaning. "Hong
Kong people treasure the rights to democracy and freedom, and disdain endless
political disputes," said Peng, the central government's top representative in
Hong Kong. "Recently, some political groups have launched a so-called referendum
in five constituencies. "They even chant some intimidating and extreme slogans
such as a `general uprising' and `liberate Hong Kong'. This is a blatant
challenge to the Basic Law and violation of mainstream public opinion to seek
stability and harmony. The general public will not recognise it." It was the
first time a central government official has openly referred to the terms
"uprising" and "liberate Hong Kong", which have stirred controversy since they
were used by members of the League of Social Democrats and the Civic Party
during public appearances as they campaigned for their movement. Peng's comments
came as Chief Executive Donald Tsang Yam-kuen met Vice-President Xi Jinping last
night to report on the latest developments in Hong Kong's political reform. The
Hong Kong government is also preparing a by-election for the five Legislative
Council seats vacated by the resignation of the five lawmakers from the two
parties. Nominations begin on March 22. Local NPC members said the remarks were
in line with a statement issued by the State Council's Hong Kong and Macau
Affairs Office in January, which said any referendum would be a blatant
challenge to the Basic Law. Cheng Yiu-tong, a Hong Kong NPC deputy and executive
councillor, said Peng's remarks reflected concern in Beijing over political
developments in Hong Kong. Xi will meet Hong Kong deputies to the NPC today, as
the annual plenary session of the state legislature proceeds. In response to
Peng's remark, Civic Party leader Audrey Eu Yuet-mee said people should not be
cowed by the mounting pressure from the central government. "The Legislative
Council's by-elections are an opportunity to allow Hong Kong people to speak
their mind on the demand for universal suffrage," Eu said, adding that the
central government should not be afraid of the people's voice if it truly wanted
to see democracy in the city. League of Social Democrats chairman Andrew To
Kwan-hang rejected suggestions that their use of the "popular uprising" slogan
was only a publicity gimmick. "Under the one country, two system principle,
freedom of speech should be protected. "Members of the public should know that
the central government has dragged on the issue of universal suffrage for a long
time [and] that people should use this opportunity to express their views," he
said.
One of the devil-beaters under the
flyover of Canal Road West uses a shoe to beat a paper effigy, hoping to improve
people's luck. The thick smoke may have almost suffocated them and made their
eyes teary. The fierce flames may have pushed the unseasonably hot temperatures
even higher, making them sweat like pigs. The deafening sound of shoe heels
smashing bricks saw them all nearly lose their hearing. But none of these
discomforts stopped hundreds of Hongkongers from queuing under the flyover of
Canal Road West in Causeway Bay yesterday to curse their bad times away. For
yesterday was Chingche or the Feast of Excited Insects according to the Lunar
calendar, the day which marked the end of winter and the beginning of spring.
Chingche is believed to be the best day to "beat the devil", which involves
beating a paper devil with shoes while swearing and cursing the image. Most were
in their 20s and 30s and said they had had a tough year because of the bad
economy and they did not mind paying HK$50 to "beat the devil" away, or to put a
curse on someone - mainly their bosses. A 27-year-old clerk said he went to beat
the devil because he had had a rough year. "I've had lots of pressure from my
boss, and I'm really stressed. I don't intend to put a curse on anyone but I
just want to pray for a more peaceful year. This is just a stress-relief
exercise." Another person queuing was a 27-year-old woman who works in the
media. She said that when she went to draw a fortune stick at a temple last
week, the fortune-teller told her to come beat the devil to ward off those who
might be bad for her. "This is my first time here," she said. "I don't really
firmly believe in this but I just want to have some peace of mind." The ritual
has its origins in rural life. Women would carry paper images of the white tiger
into the home to scare away rats and snakes. It was also believed that
performing such rituals prevented quarrels. Chan Siu-mei, in her 40s, sat under
the flyover looking for business. She said she had been performing the ritual
for people for nearly 10 years. Yesterday she worked from 11am to 11pm. "The
most important thing is to pray for good health, a good spirit and peace," she
said. Chan began the ritual by offering a worshipper incense and instructing the
person to pray and say their name to inform the gods of their existence. Then
she recited spells while hitting a paper devil on a brick hard with a high-heel
shoe. "It makes no difference whether you hit it with flats or heels," she
joked. After the paper devil was thrashed, she burned it. Then she wiped red and
green paper over the worshipper, and burned that too. Though one of the aims of
the ritual was to seek peace, things weren't all peaceful under the flyover. A
60-year-old devil-beater said women doing business were fighting over territory.
A policeman said around 35 stalls offered the service. He said the crowd hovered
at about 200 all day and into the night.
Whether he likes it or not, Chongqing party boss Bo Xilai is in the spotlight
during the parliamentary session in Beijing. Thanks to his crackdown on triads,
Bo, as the son of one of the party "immortals", Bo Yibo, got great attention on
the sidelines of the National People's Congress. Some 200 reporters flocked to
the Great Hall of the People for the rare chance to get a close look at the
rising political star. Well-prepared, if 40 minutes late, Bo was all smiles
answering questions on topics ranging from snaring gang bosses and corrupt
officials to his campaign to promote revolutionary culture, to lifting the
impoverished Three Gorges areas, and even one about his private life. But the
media-savvy Politburo member, who had promised to take every possible question,
was obviously annoyed when it was suggested he had an ulterior motive behind the
blitz on triads, which has generated intense speculation in Beijing. "Are you
paving your way to the Politburo Standing Committee with the anti-triad
crackdown?" asked a Taiwanese reporter. "Are you not worried about stealing the
show and outshining your bosses?" That question was on many people's minds, and
breaths were held. But after an unusual pause, he was straight-faced and
appeared offended. "We are here to discuss the government work report delivered
by Premier Wen Jiabao yesterday, and our question and answer session is
broadcast live on the People's Daily website," he said. "Let's not change the
topic. I try to treat the media nicely and I hope the media can kindly return
the favour." His outburst apparently disappointed many, with Taiwanese reporters
leaving minutes later. Organisers and Bo's staff were embarrassed by the
question, arguing in private who should be responsible for it. They described it
as humiliating. The question did not make it into the transcript of the event on
the website of the Communist Party mouthpiece. Bo also made a vigorous defence
of the crackdown, which many analysts believe was part of a calculated move to
seek media exposure and gain political capital for promotion at the expense of
the rule of law. He insisted the crackdown was being carried out strictly
according to law and said the anti-triad movement had boosted the image of the
government and created a more favourable environment for economic development
and the rule of law. More than 3,300 people have been arrested for gang-related
crimes and 63 criminal syndicates have been hit. Many senior law enforcement
officials accused of providing protection for triads are among the detainees.
"Cracking down on triads is aimed at building a safe Chongqing and pushing ahead
with the rule of law," Bo said. "What we have done is seek justice for those
killed in over 500 murder cases in the past decade." The crackdown was
inevitable because people had so many complaints and grievances. "Frankly, I was
surprised by the extent of the problems, which went far beyond my expectations,"
he said. Bo vowed the crackdown would continue as long as the other 500 to 600
people suspected of gang-related crimes were still at large. For the first time,
he rejected criticism of the sentence passed on Beijing-based lawyer Li Zhuang ,
widely believed by fellow lawyers to have been wronged in being convicted of
fabricating evidence in the trial of a Chongqing gangster. Li was given an
18-month jail sentence. Bo said the verdict was beyond argument. "We have been
welcoming lawyers from across the country, but it does not mean we should sit
idle when lawyers are doing wrong things," he said angrily. "If so, are we to
allow anarchism?" He described those critical of the case as "only a handful of
people", with "ulterior motives". Many reporters were also keen to ask about his
relations with his predecessor in Chongqing, Wang Yang , now the Guangdong party
chief, who is seen as one of Bo's key rivals in the next reshuffle. But Bo
dodged the question, saying he wanted to learn from Guangdong in boosting the
economy. Bo also spoke fondly of his second wife, Gu Kailai , who was a renowned
lawyer in the 1990s. "My wife has helped me a lot," he said.
Visitors attend the 20th
East China Fair in Shanghai last week. China's exports rebounded in December. It
will take two to three years for China's exports to return to pre-financial
crisis levels despite the recent robust rebounds, Minister of Commerce Chen
Deming said yesterday. The mainland's trade improvement has been "very fragile"
considering the uncertainties faced by the world economy, Chen said at a press
conference on the second day of the National People's Conference. In 2009,
exports fell 16 per cent from the previous year, dragging down gross domestic
product growth by 3.9 percentage points and putting more than 10 million people
out of work. However, exports have been improving since late last year and have
grown 17.7 per cent in December and 21 per cent in January. "Taking account of
the high unemployment rate and low savings in some countries which were hit hard
by the financial crisis, a solid recovery in world consumption and China's
exports will require time," Chen said. The minister said the trade surplus
dropped 50.2 per cent in the first two months from the same period a year ago -
proof that China was contributing to balanced world trade instead of emphasising
exports. In the work report delivered by Premier Wen Jiabao on Friday, the
government said China still faced tough times this year, including the prospect
of trade protectionism. The combined surplus for the first two months was
generally in line with economists' expectations. Lu Zhengwei , an economist with
Fujian-based Industrial Bank, said the 2010 surplus would not be more than the
US$196 billion recorded last year which was 34 per cent lower than 2008. "It was
very upbeat for the minister to say that it will need three years for exports to
recover. I think it is unlikely to recover to pre-crisis levels ever," Lu said.
The Ministry of Commerce late last year had forecast that exports would take two
to three years to recover. Meanwhile, changes in the labour market could have an
impact on exports. Guangdong Communist Party boss Wang Yang said on Friday that
the province - the nation's export stronghold - was experiencing labour
shortages that could result in higher wages. Higher wages could translate into
higher export prices, curbing exporters' competitiveness. However, economists
with China International Capital Corp were more optimistic. They wrote in a
research note on March 3 that China had taken the lead in recovering from the
financial crisis with exports showing double-digit growth, which again
highlighted the need for yuan appreciation. They forecast a US$21 billion trade
surplus for the first two months, down 52 per cent year on year compared to the
50.2 per cent announced by the minister. The surplus was calculated based on a
forecast 40 per cent growth in both exports and imports for February.
Donald Tsang attends the NPC
meeting along with predecessor Tung Chee-hwa (front, right). Tsang discussed
Hong Kong affairs with state leaders on the sidelines of the meeting. Compromise
was needed for progress to be made on electoral reform, Chief Executive Donald
Tsang Yam-kuen said yesterday. His government was looking for "middle ground"
acceptable to all sides, he said. Tsang's comments came as Premier Wen Jiabao,
in his annual government work report, urged the Hong Kong government and its
people to "work together" and "accommodate and help each other". Speaking on the
sidelines of the national legislature's annual session in Beijing, Tsang said:
"I am sure we will be putting all our best efforts into seeing whether there is
a middle ground for us to put across a package acceptable to both the Hong Kong
people and the legislature. "This requires compromise. It requires reasonable,
rational steps." The government would have to negotiate with political parties,
he said. Tsang said he had discussed the latest political and economic situation
in Hong Kong in meetings with state leaders including Wen and President Hu
Jintao. The Democratic Party and fellow members of the moderate Alliance for
Universal Suffrage are prepared to support government proposals for electoral
changes in 2012 in return for assurances by the government and Beijing that
genuine universal suffrage will be introduced for the chief executive election
in 2017 and Legco election in 2020. Three months of public consultation recently
ended on the government's proposal to expand by half the election committee that
chooses the chief executive and add 10 seats to the Legislative Council, half of
them directly elected and the rest chosen by district councillors. Lawmakers are
to vote on a final proposal before the summer. Political scientist Ma Ngok, of
Chinese University, said the apparently conciliatory line taken by Tsang did not
indicate that Beijing had agreed on certain concessions in exchange for
pan-democrats' support. Asked about a call by Peter Wong Man-kong, a Hong Kong
deputy to the National People's Congress, for the government to dust off shelved
national security legislation to enact Article 23 of the Basic Law, Tsang said
it was not his priority. "My attention is on how to fix the 2012 proposal as
soon as possible. For Article 23, I have said that legislation is not my
priority now," the chief executive said. Wen used the paragraph in the
government work report devoted to Hong Kong and Macau to call for unity between
citizens and the city's governments. "As long as the governments of the Hong
Kong and Macau special administrative regions and their people from all walks of
life work together, accommodate and help each other, and jointly safeguard
overall prosperity (SEHK: 0803), stability, and development, Hong Kong and Macau
will enjoy a brighter future," he said. Wong Kwok-kin, another local deputy to
the National People's Congress and a legislative councillor, said it was rare
for the premier to make such an appeal in the work report. "Does the central
government think [Hong Kong's] governance and social atmosphere should be
improved?" Wong said in a reference to recent political controversies. Rita Fan
Hsu Lai-tai, another Hong Kong delegate to the NPC and a member of its Standing
Committee, said Wen's remarks were not necessarily meant as a criticism of the
Hong Kong government. Tsang will today meet Guangdong party secretary Wang Yang
to discuss co-operation between Hong Kong and the Pearl River Delta region.
Some of the most eminent judges and lawyers in the common law world paid tribute
to the legacy of outgoing Chief Justice Andrew Li Kwok-nang yesterday, for
having succeeded in building a judiciary internationally recognised for its
quality of law. In the opening address for the University of Hong Kong
conference entitled, Hong Kong's Court of Final Appeal: The Andrew Li Court
1997-2010, which was attended by Li, Sir Anthony Mason, a former Australian
chief justice, said he wanted to pay tribute to Li and remark on two aspects of
his "many qualities". "He has been an outstanding chief justice," Mason said.
"Hong Kong has been singularly fortunate to find somebody of his capacity to
rise to the challenge of heading a common law court system in a unique and
unusual environment." Other appeal court judges, Roberto Ribeiro, Kemal Bokhary,
and Patrick Chan Siu-oi were also present, as were non-permanent judges of the
Court of Final Appeal, local judges and senior lawyers. Mason, a non-permanent
judge in the Hong Kong Court of Final Appeal who presided over most
constitutional cases since 1997, revealed some of Li's work in shaping the
success of the court behind the scenes. In particular, he praised "his sense of
strategic vision and his capacity to take the long view - qualities which are
generally associated with great chief justices". He described Li as a true
leader in achieving consensus within the court. "He instituted a system of
judicial conferencing that has been a prominent feature of the court's work. He
has led discussion and ensured that all relevant questions had been fully
considered and resolved by members of the court. In those respects, his
performance has borne remarkable fruit." Last year, Li announced his early
retirement and plans to step down at the end of August this year after 13 years
in the role to achieve "orderly succession planning". A Judicial Officers
Recommendation Commission, headed by the chief justice, is assessing candidates
for Li's role, and is expected to make a recommendation to the chief executive
this month. Mason also noted that it was the Hong Kong Court that pioneered new
thinking on free expression, defamation and fair comment. Mason's presence in
the city and his contribution to Hong Kong law is often cited as another of Li's
"greatest achievements". A major concern over the dawn of the new court as the
resumption of Chinese sovereignty loomed was whether Hong Kong would be able to
maintain its links with other common law jurisdictions. But under Li, the list
of foreign non-permanent judges now includes respected former law lords and
former chief justices like Mason himself. Dean of the University of Hong Kong
law faculty, Johannes Chan Man-mun, said one of the major challenges of the
court at first was to build a reputation to earn recognition and credibility
within the common law jurisdiction. Under Li, "we have met that challenge
successfully", he said.
Ship crew install concertina razor wire on a vessel side to show how it can
effectively protect ships from pirate attacks at a lower cost than arming
crewmen. When it comes to fending off Somali pirates off the Horn of Africa, a
small investment in razor wire can thwart attacks and save ships millions of
dollars in ransoms, according to an executive of a Hong Kong ship-management
company. Pirates, just like home invaders, were on the lookout for easy targets,
said Vijay Gupta, the joint managing director of Anglo-Eastern Ship Management,
one of the world's largest ship-management companies. So, to "harden the
target", the company is protecting vessels by ringing them with concertina wire
or razor wire, supplying the crew with night-vision goggles and high-pressure
water hoses, and deploying a variety of other pirate-boat deterrents. The total
cost of deploying razor wire is about US$15,000 per vessel and is a simple but
effective solution, Gupta said. None of the 330 vessels managed by the company
has come under attack, so Gupta cannot say how effective the measures are. But
he believes the formidable defence has had a deterrent effect. The frequency of
pirate attacks across the Gulf of Aden and along the coast of Somalia nearly
doubled to 214 last year from 111 in 2008. Forty-seven of the attacks resulted
in successful hijackings of the vessels. "However, not all shipowners are
willing to pay an extra US$15,000 to safeguard their ships, even if it will
hugely reduce the risk of pirate attacks," Gupta said. He blames that reluctance
partly on the low profit margins in shipping because of overcapacity in the
industry. Initial figures suggest that total worldwide container shipping
capacity is up 15 per cent to 20 per cent year on year while global trade is
down 10 per cent. Another reason shipowners had not equipped their vessels with
protection was the low attack rate, leading them to take chances, Gupta said. On
the average, there are about four pirate attack attempts for every 300 transits
through the Gulf of Aden per week, translating into a 1.2 per cent chance of
being attacked. And the risk of actual hijacking is even lower as the success
rate is less than 22 per cent, figures released in January by the Piracy
Reporting Centre of the International Maritime Bureau show. 
Summer has not arrived yet but ice-cream
hawkers are already feeling the heat, with some saying they have been harassed
so often by hygiene officers they are quitting the trade. The government
received 3,700 applications for itinerant hawker licences last year, but issued
just 61 licences for hawkers to sell ice cream and cold drinks. They were the
first such licences to be issued since 1993. But licence-holders say the Food
and Environmental Hygiene Department is constantly moving them on, accusing them
of blocking thoroughfares. Because of uncertainties and high start-up costs,
only 25 people have claimed their licences and joined the trade. Now, four of
them have decided to quit after frequent harassment by the department's
officers. The Dairy Products Beverage and Food Industries Employees' Union,
hawkers and lawmaker Wong Kwok-hing met the department's assistant director of
operations, Rhonda Lo Yuet-yee, yesterday to air their concerns. Although the
department does not encourage ice-cream hawkers to ply their trade at busy
thoroughfares, where they may disrupt traffic or pedestrians, hawkers say it is
impossible to survive if they do not work in busy areas. Frontline staff also
have misconceptions about the definition of "itinerant", hawkers say. Some have
been told they are breaking the law if they stop at a certain spot instead of
being on the move all day. By law, the hawkers can operate anywhere as long as
they are not causing an obstruction. Panda Szeto Tsz-chung, 23, joined the trade
in January. He said his licence had been checked by officers as many as 10 times
a day. His earnings fell by half to just HK$100 a day after he was ordered to
move from a spot opposite Exchange Square in Central to a corner under a bridge
fewer pedestrians passed. "I can cover my costs but I can't make a living,"
Szeto said. Nevertheless, he said he would continue in the trade for another
three months. He spent more than HK$10,000 starting up the business, including
the cost of a special bicycle for carrying frozen goods, and had left a job in
the catering industry. "If I give up before the summer, I won't be able to face
myself," he said. He wants the government to clarify the rules, including where
they can do business and what constitutes an offence. Hawker Chu Chung-wah was
prosecuted for obstructing the pedestrian area by the Tsim Sha Tsui Star Ferry
pier, and is due to appear in court on Thursday. Cheung Chee-hung, director of
the dairy products union, hopes frontline hygiene officers can be reasonable
when deciding if hawkers are causing an obstruction. "They should not prosecute
them based on unsound complaints received." The department's spokeswoman said
frontline officers prosecute hawkers without first issuing a warning if they
obstructed thoroughfares on a list agreed upon by hawkers' associations,
itinerant hawker licence-holders and district councils in 2007. In other areas,
warnings were given first before action was taken, she said. But the department
was now considering issuing warnings to all ice-cream hawkers first. 
A TVB (SEHK: 0511) host, charged with one count of assault occasioning actual
bodily harm last December, pleaded not guilty on Friday, local media reported.
Accompanied by colleagues from TVB, Chinese-Korean television presenter Amigo
Choi Kin-bong, 30, appeared in Kwun Tong Court. During the court hearing, it was
alleged that Choi assaulted his 20-year-old girlfriend, Chinese-Brazilian model
Elizabeth Kwong Wai-man, during a dispute in his home in Kowloon Tong on
December 22 last year, Kwong later reported the case to Wan Chai police and went
to Ruttonjee Hospital to have her injuries checked. She complained that Choi had
struck her head and grabbed her neck and body in a bid to seize her phone and to
delete photos, which they had taken together, local media reported. Choi denied
he had assaulted Choi. He told the court it was an accident and said Kwong’s
allegations of assault were false. Acting-Principal Magistrate Abu Bakar bin
Wahab adjourned the case until May 18 and granted Choi HK$1,000 bail. A day
after Kwong reported the case to the police, the incident was widely reported by
local media. TVB general manager Stephen Chan Chi-wan said the company would
temporarily suspend Choi from his job.
You can tell the speculators are dominating the market for luxury flats by
looking up at some of the city's priciest blocks after nightfall. The lights are
mostly off. At Celestial Heights in Ho Man Tin, the windows of all but 20 of the
500 flats are dark, says Patrick Chow Moon-kit, the head of research at estate
agency Ricacorp Properties. The scene is similar at The Arch, The Cullinan and
Sorrento above Kowloon station, he says. "Normally, with a building occupied by
end users you will see 80 per cent of flats with lights on at night. But you
hardly see any in those housing projects which are popular among investors," he
said. "Luxury-flat sales are dominated by speculators." Most are from the
mainland, Chow and other property agents say. Average vacancy rates for luxury
flats issued yesterday by the government bear out the phenomenon. More than one
in 10 were unoccupied last year, the figures, from the Ratings and Valuation
Department, show. That adds up to more than 8,500 empty flats. The rate of 10.5
per cent is the highest since 2004. A combination of record-low interest rates,
tight supply and a torrent of hot money pouring into Hong Kong saw speculators
bid up prices in the luxury sector last year. The rising power of speculators at
the top end of the market is bad news for the government, which is desperate to
stem a rapid increase in prices that threatens to put home ownership beyond the
reach of the average family. Last week's budget included an increase in stamp
duty on property sales in excess of HK$20 million and heralded a tax crackdown
on speculators. Chow said it was not uncommon to see wealthy investors snap up
several flats in a development and leave them unoccupied for four or five years.
That was because they could sell them for more empty than if tenants were
occupying them, he said. Leung Wai-ming, assistant sales director at Midland
Realty's Kowloon station branch, estimates one in five flats at the developments
there - a favourite among mainland buyers - are empty. He says about 20 per cent
of thebuyers are from the mainland. "Some of these rich mainlanders just stay in
their flats for one or two months a year," he said. Prices at one of the
developments, The Cullinan, have jumped 50 per cent, to HK$22,000 per square
foot, since the first flats went on sale last year. Prices next door at The Arch
rose 30 per cent last year, Leung said. In contrast to the luxury residential
sector, vacancy rates in the mass residential market dropped to 3.8 per cent
last year, the lowest since 1998 and the same level as when the market peaked in
1997. Paul Louie, regional head of property research at Nomura International,
said rents were likely to rise very strongly if the vacancy rate fell below 5
per cent. "For the next two years, it will be a landlord's market," he said. He
forecast prices and rents would rise 20 per cent by the end of next year
compared with the end of 2009. In the first two months this year, overall home
prices rose 6 per cent, according to Centaline's Centa-City Index. This increase
comes on top of a 30 per cent rise last year. The government forecasts
developers will complete 14,260 flats this year - almost twice the total for
last year. Just over 10 per cent will be luxury flats. That compares with an
annual average of 15,000 completions in the past five years. And next year only
10,960 will be completed, it forecasts. The government will sell some
development sites on its list of available plots if developers don't lodge bids
high enough to trigger auctions for them. Louie said: "The government's attempt
to alleviate the land shortage is the right action to take, but it will take
three to four years before these sites are developed into housing projects and
put on the market." 
Pledge to narrow gap welcomed -
Premier Wen Jiabao's latest pledge to narrow the income gap comes at the most
appropriate time, top legislators and advisors said. The emphasis on fighting
income disparity as well as raising social welfare and rural services is a
direct response to the most pressing issues facing the country today, they said.
"We will not only make the social wealth pie bigger by developing the economy
but also distribute it well on the basis of a rational income distribution
system," Wen said in his government work report at the opening of the annual
full session of the country's top legislature on Friday. Wen's report mentioned
the word "income" a record 28 times, the Legal Daily said. The country's
rural-urban wealth gap last year was also the widest since the start of the
economic reform in 1978, according to the National Bureau of Statistics. Urban
per capita income in 2009, which stood at 17,175 yuan ($2,500), was more than
three times the figure in the rural areas. Apart from the rural-urban divide,
the gap is also widening among different social strata within cities, said Zhao
Xijun, deputy dean of the school of finance at Renmin University of China. Zheng
Gongcheng, a member of the 11th National People's Congress (NPC) Standing
Committee, said the need to adjust the current distribution of interests is "an
extremely grave task" in the next five years to bridge wealth gaps and sustain
social justice. Specifically, quantifiable indicators of a narrower wealth gap
must be included in the nation's 12th Five-Year Plan (2011-15), to be completed
by the end of this year, said Chi Fulin, president of the China Institute for
Reform and Development. The hefty income of monopoly industries, which widens
the income gap and worsens social equality, has also been under fire for months.
In response, Wen on Friday said the government will deepen the reform of the
income distribution system of these corporations and set strict standards for
the income of their executives. The premier also vowed to boost basic social
security networks to include all members of society, especially those at its
bottom, to "free them from worries". Hukou reform - The government has also
promised to reform its longstanding household residency system and ease
restrictions on permanent residence registration, or hukou, in towns as well as
in small- and medium-sized cities. Hukou has long been blamed for systematically
widening the gap between urban and rural residents. The system, which restricts
people's residency to their hometown, also makes it difficult for migrant
workers to enjoy welfare benefits in cities, Xinhua News Agency reported. "Our
ultimate goal should be to realize the free migration of all residents," Zheng
Gongcheng said, adding that decision-makers have reached a consensus in
reforming the hukou system and rapidly urbanizing China. The government hopes
that the hukou reform is able to expand the social safety net to include the
country's 230 million rural migrant workers, amid growing debate over the need
to integrate the laborers into urban areas. Hu Xiaoyan, the first migrant worker
to be selected as an NPC deputy and now an urban resident in Guangdong province,
has proposed building communities for people like herself in each city. Rural
migrants who have just acquired urban hukou after years of hard work in the city
should be offered affordable housing similar to those provided for low-income
urban families, Hu said. The migrants and their children should enjoy equal
rights to public transport, schools and hospitals, she said. Acting on his
earlier vow to promote "greater dignity" among the population, Wen on Friday
also announced plans to allocate 43.3 billion yuan ($6.3 billion) to boost
employment this year.
Wen vows bigger pie, fairer split, as
wealth gap grows - Premier Wen Jiabao has pledged to boost social spending and
redistribute wealth this year, as a widening wealth gap threatens the country's
stability. In his government work report to the annual session of the National
People's Congress (NPC) yesterday, Wen laid out a series of plans to tackle the
growing social divide, promising more investment in the agricultural sector,
improved education and medical care in rural areas, and the building of a social
security network that covered both the urban and rural populations. "We should
not only make our social wealth pie bigger, we should also divide the pie more
reasonably through a better wealth-redistribution system," Wen told NPC
deputies. To achieve that, China will raise basic salaries, tighten regulations
on salaries in monopolised industries and clamp down on grey income. The pledge
comes amid louder calls for social equality, as the relatively few urban rich
are acquiring even more wealth while the many millions of rural poor have yet to
benefit from the country's economic boom. Latest figures from the Ministry of
Agriculture show that last year saw the widest urban-rural income gap since
China began its reform and opening-up in 1978. In his speech yesterday, the
premier called rural problems the top priority on the government's agenda and
promised to invest 818.3 billion yuan (HK$930 billion) in rural development.
That is about 13 per cent more than last year, and accounts for 17.5 per cent of
the government's 2010 budget. Wen promised to let children in remote rural areas
share high-quality education from cities by equipping their classrooms with
distance learning multimedia. The 2010 budget released by the Ministry of
Finance after Wen's speech says that half of the 216-billion-yuan government
budget for education this year will go to rural areas, to cover students' school
fees for their nine years of compulsory education, to introduce merit pay for
teachers, to rebuild unsafe school buildings and to subsidise college students
majoring in agriculture and vocational school students with financial
difficulties. In health care, Wen said this year would see the trial launch of
medical insurance for rural children suffering from leukaemia and congenital
heart disease. The high medical costs for such illnesses have long been a main
cause of poverty for some rural families. Huang Jun , former director of the
Jiangsu Provincial Hospital, said: "I am so happy that this is written into the
report. As a Chinese People's Political Consultative Conference delegate I have
been proposing this for seven years." He said an operation for congenital heart
disease cost at least 30,000 to 50,000 yuan. "But for a rural family, their
yearly income may only be several hundred or several thousand yuan." Wen said
the government would increase subsidies for rural medical insurance by 50 per
cent this year, to 120 yuan per person. Four in five government-funded
grass-roots health institutions would introduce the essential-medicine system,
which includes 307 essential drugs sold at prices deemed affordable for the
public. In August, the Ministry of Health released the list of essential drugs
required to be available to the public at all times, in adequate amounts, and at
prices the public can afford, in an effort to reduce people's costs. Wen said
that 23 per cent of counties would trial a social pension system for rural
residents this year, with government investment of 7 billion yuan.
Editors at The Economic Observer, the
newspaper which initiated a joint editorial published on Monday criticising the
mainland's hukou (household registration) system, have been punished for their
bold action as other participating media confirmed a government order to remove
the editorial from their websites. Published on the eve of the annual meetings
of the National People's Congress and the Chinese People's Political
Consultative Conference, the strongly worded joint editorial by 13 metropolitan
newspapers stirred excitement as it called on the nation's legislators to
abolish the hukou system, calling it "obsolete", "unconstitutional" and "a
violation of human rights". Collaborators included well-known titles such as the
Chongqing Times and Guangdong's Southern Metropolis News. However, the
excitement was short-lived and Premier Wen Jiabao's passing mention of hukou
reform in his government work report yesterday further shot down hopes that it
would be abolished any time soon. Two editorial staff who work at The Economic
Observer confirmed that top editors at the paper received disciplinary warnings
from government officials, but said they were "not aware" of reports that a
deputy editor had been sacked. Meanwhile, all the publications involved and most
major internet news portals have removed the editorial or reports of it from
their websites. According to an editor of another media outlet that ran the
editorial, the verdict from the Central Publicity Department was brief: "This
act was inappropriate". The publication of the editorial has itself become a
censored topic for mainland media in the latest list of banned items issued by
the department. The hukou system, a resident-registration mechanism set up in
1958 to curb migration from rural areas to the cities, has increasingly come
under fire in recent years as many see it as the root cause of a glaring
rural-urban wealth gap and social disharmony. Advocates of its abolition say it
subjects rural migrants to second-class treatment, barring them from equal
access to education and jobs in cities they have worked and lived in for years.
Wen said yesterday: "We will carry out reform of the household registration
system and relax requirements for household registration in towns and small and
medium-sized cities," suggesting that any reform would only involve relaxation
of restrictions, and not abolition of the system. Some analysts said it was more
the publishing of the editorial than the topic itself that prompted the
punishment, since it was probably viewed by the authorities as unwelcome
pressure ahead of the most important meetings in the country. "Hukou reform has
been a hot topic for public discussion for several years now," said Hong Kong
Baptist University media professor Huang Yu. "However, it is unprecedented that
13 media [organs] joined hands to publish an editorial to advocate a social
cause, especially when it's dressed up in such strong and sensational wording."
NPC deputy Bai Shangcheng, the mayor of Guyuan , a small city of 1.5 million in
Ningxia , said on the sidelines of the NPC meeting yesterday that it was
critical that the hukou system be abolished as soon as possible. Some 260,000
people in Guyuan were currently seeking work outside the city, the mayor said.
"Maybe not in the big cities like Beijing and Shanghai, but this regional
barrier must be abolished for mid-sized cities soon," Bai said. 
China's mutual fund sector has
suffered a huge brain drain as nearly 200 fund managers left their posts last
year, dimming the outlook for the industry despite its breakneck growth in the
past few years. According to a report by Haitong Securities, 199 investment
professionals working for 545 mutual funds on the mainland quit their jobs in
2009, and more are likely to resign this year as they are headhunted or go
searching for lavish perks offered by hedge funds. "The brain drain is having a
very bad impact on the mutual fund industry," said Wu Xianxing, a Haitong
analyst who compiled the report. "The industry has lost a batch of experienced
talent due to a lack of attractive remuneration packages." Wu could not give an
exact number of how many had jumped ship to join hedge funds, but he did say
that a majority were attracted to rivals by well-padded pay packages. China's
mutual funds have experienced impressive growth over the past few years as the
regulator encouraged retail investors to buy into funds, letting investment
professionals manage their assets in a move to avoid volatility in the market.
By the end of last year, 408 stock-focused mutual funds had a total value of 2.2
trillion yuan (HK$2.49 trillion), accounting for 15 per cent of the total
capitalisation of the tradable equities on the Shanghai and Shenzhen stock
exchanges. The benchmark Shanghai Composite Index jumped 80 per cent last year,
bringing a windfall to mutual funds. However, analysts said the rosy
performances were not reflected in the pay for mutual fund managers, who were
already among the country's highest-paid individuals. According to a
Beijing-based fund manager, he could earn a maximum 3 million yuan annually at a
mutual fund company, while the income from a hedge fund could be more than
double that if the performance lived up to investors' expectations. Hedge funds
normally pay managers performance-linked salaries and bonuses. "After a strong
rally last year, the market is expected to be volatile," said West China
Securities' trader Wei Wei. "Therefore, fund managers' investment expertise will
make a big difference this year." Wu said most of the managers who left mutual
funds were experienced and had better track records than their peers. Among
them, Sun Jiandong, a renowned fund manager at China Asset Management, resigned
recently and was reported to have joined a hedge fund. The Renaissance Fund,
managed by Sun since 2008, has generated a handsome return of 21.4 per cent, one
of the best-performing equity-based funds on the mainland. Beijing set up the
mainland's first mutual fund in 1998, hoping they could become a stabilising
force in the volatile market. Between 2006 and 2007, the industry benefited from
a bull run on the market as the China Securities Regulatory Commission
fast-tracked approvals for new funds. However, a Galaxy Securities report in
early 2008 found that nearly a third of asset managers running the funds had
less than a year's experience. In December 2008, another Galaxy Securities
report found that the performance of mutual funds on the mainland had almost
nothing to do with those who managed them. The report, based on the track
records of funds over five years, said different investment strategies basically
made little difference to performance, while only a few experienced managers did
an outstanding job.
Taiwan said on Friday it has given the
go-ahead for China Mobile (SEHK: 0941) to open a subsidiary on the island,
making it the first mainland telecom firm to establish a foothold there. China
Mobile, the world’s largest mobile phone operator by users, plans to sell
electronics materials wholesale, according to its application filed late last
year. However, the Taipei-based Commercial Times said the mainland firm was
aiming to use the subsidiary to take a stake in Far Eastone Telecommunications,
one of Taiwan’s leading cell phone operators. No mainland capital has previously
been allowed for investment in local fixed line, cell phone and satellite
operators. China Mobile said in April last year it hoped to invest in Far
Eastone, aiming to buy a 12 per cent stake for about US$560 million. Far Eastone
was not immediately available to comment. The economics ministry said on Friday
the rules would have to change before China Mobile would be able to buy into Far
Eastone.
A Long March 4C carrier rocket carrying a
remote-sensing satellite, "Yaogan IX", blasts off from the Jiuquan Satellite
Launch Center in northwest China's Gansu Province,March 5, 2010. China has
successfully put into orbit another remote-sensing satellite, "Yaogan IX" at
12:55 p.m.(Beijing Time) from the Jiuquan Satellite Launch Center in
northwestern Gansu Province, according to a statement from the center Friday.
The satellite was sent into space aboard a Long March 4C carrier rocket and
would be used to conduct scientific experiment, carry out surveys on land
resources, forecast grain output and help with natural disaster-reduction and
prevention endeavor, it said. Its predecessor, "Yaogan VIII," was launched from
Taiyuan Satellite Launch Center in northern Shanxi Province last December.
2,000 women soldiers of the
People’s Armed Police Corps of Shanghai sign their names on a banner on March 4,
2010 pledging to make contributions in their post and to ensure the security of
the upcoming World Expo at a training base in Shanghai. 
Women soldiers of the People’s
Armed Police Corps of Shanghai wave during a drill on March 4 in which they
stand in the shape of the Expo emblem to mark their work in the upcoming Expo
and to celebrate the 100th anniversary of the International Working Women’s Day
in advance.
People in Hong Kong who talk of "uprising"
and "liberation" have hidden agendas, an outspoken local tycoon said at a
meeting with a top state leader. Hopewell Holdings chairman Gordon Wu Ying-shueng
made the comments in Beijing at a gathering of 200 Hong Kong and Macau delegates
of the Chinese People's Political Consultative Conference. Vice President Xi
Jinping attended the meeting. It is believed Wu was referring to slogans from
the five pan-democrat legislators who resigned in January to trigger
by-elections that they see as a de facto "referendum" on democracy. Xi was seen
taking notes as Wu, a delegate to the advisory body, said: "A small number of
people ... are against everything the SAR government wants to do and against
everything that's from the central government. "They are also using such slogans
as 'uprising' and 'liberation.' These show they have hidden purposes." Without
directly addressing Wu's remarks, Xi told the delegates the central government
hopes all members will "continue rational communication and practical discussion
to reach a consensus to push forward the democratic procedures of the SAR
government." Wu was the only delegate to speak with the media present though
several others spoke during the two-and-a-half- hour meeting, hosted by former
chief executive Tung Chee-hwa as vice chairman of the CPPCC National Committee.
Meanwhile, local National People's Congress deputy Peter Wong Man- kong called
on the government to resume discussions on Article 23 of the Basic Law and to
enact laws against subversion. The veteran deputy said he will table a motion to
this effect during the annual plenary session for local deputies. "Any delay
will only encourage more calls for uprising and liberation, which can be
considered attacks on national security." However, NPC Standing Committee member
Rita Fan Hsu Lai-tai said it is for the Hong Kong government to decide when such
talks should restart and remarks from individual deputies mean nothing. "The SAR
government has to find a suitable time for the legislation," the former Legco
president said. Political commentator Johnny Lau Yui-siu said Wu's speech was
not intended to push forward Article 23 legislation. "There's nothing new about
Wu's remarks. He said what the central government would like NPC and CPPCC
members to say to create an atmosphere of concern, like boiling frogs in warm
water," Lau said. "It's not the right time for such legislation and Beijing
knows it. It will only stir up chaos and controversy." City University political
analyst James Sung Lap-kung said Wu wanted to tell Xi he will need to adopt a
stronger policy toward Hong Kong should the vice president become leader in 2012
after Hu Jintao. 
The Hong
Kong pavilion at the Shanghai World Expo will be completed by the end of this
month and will be able to accommodate up to 7,000 visitors a day when it opens,
a government official said. Patrick Chan Chi-king, director of the Hong Kong
Economic Trade Office in Shanghai, yesterday said finishing touches were being
put on the HK$145 million pavilion and it would open, along with the rest of the
Shanghai expo, for a trial run on April 20 before the official May 1 opening.
Chan said it would take about 20 minutes to complete a tour of the three-storey
pavilion. With an exhibition area of 800 square metres, it accommodates 700
people an hour, or 7,000 per day, or more than 1.28 million visitors throughout
the 184-day expo. "We will showcase many things within a small space," Chan
said, adding that the exhibition would show off Hong Kong's modernity, infinite
imagination and creativity. The middle of the pavilion incorporates a large
transparent and mirrored exhibition area. Henry Choi Wan-kit, project director
at the Architectural Services Department, said the reflections signified the
unlimited potential and creativity of Hong Kong. The mirrored exhibition area
was enclosed in frameless glass to further emphasise the boundless opportunities
open to Hongkongers, Choi said. Metallic parts on the exterior represented the
myriad dense skyscrapers in Hong Kong. The pavilion concept was developed by two
Hong Kong architects, Billy Chan Wai-ching and Ida Sze Ki-shan, who were among
80 design professionals who entered a government competition in early 2008. The
Shanghai expo runs till October 31. Hong Kong will stage five days of parades,
and cultural entertainment at the expo from October 18 to October 22. 
Managing director Kam Hing-lam says Cheung
Kong Infrastructure is in serious negotiations for possible acquisitions in Asia
and Australia, Europe and North America. Li Ka-shing, Asia's richest man, plans
to bid more than £4 billion (HK$46.8 billion) for Britain's largest electricity
supplier, EDF Energy, through his firms Cheung Kong Infrastructure Holdings (SEHK:
1038) and Hongkong Electric (SEHK: 0006) Holdings, the companies confirmed
yesterday. Cheung Kong Infrastructure and Hongkong Electric will participate in
the first round of bidding for EDF Energy, said Andrew Hunter, the chief
operating officer and executive director, respectively, of the two companies and
the chief financial officer of Cheung Kong (Holdings) (SEHK: 0001). EDF Energy
generates 20 per cent of Britain's electricity from nuclear, gas, coal and wind
power stations. Cheung Kong Infrastructure, an energy and infrastructure firm,
and Hongkong Electric, the city's oldest power utility, are listed subsidiaries
of Cheung Kong, in which Li has a 41.7 per cent stake. EDF Energy, which has
20,000 employees in Britain, is owned by EDF Group, a French state conglomerate.
It is one of the three largest European energy firms and the world's biggest
nuclear power generator. Noting that EDF Energy's regulated asset value is £4
billion, Hunter said, "In all likelihood, [the bid price] will be a little more
than that. EDF Energy has 65 per cent of its regulated asset value as debt, so
we don't have to write a cheque for £4 billion." The deadline for the first
round of bidding is March 15, after which shortlisted bidders will enter the
second round, which is expected to complete the sale by the middle of this year.
Hunter said the shareholding split between Cheung Kong Infrastructure and
Hongkong Electric in EDF Energy had not yet been determined. "The electricity
distribution businesses of EDF are poised to provide very stable returns, which
are part of the attraction for Cheung Kong Infrastructure," Natalie Palmer, a
spokeswoman for the Hong Kong company. A consortium that includes Australian
infrastructure investor Macquarie Group, the Canadian Pension Plan and Abu
Dhabi's sovereign wealth fund ADIA is a possible bidder for EDF Energy,
according to British press reports. Another possible bidder is a consortium that
includes Scottish and Southern Energy along with Canadian pension investor
Borealis Infrastructure. Cheung Kong Infrastructure is also in serious
negotiations for other possible deals in Europe, North America, Australia and
Asia, group managing director Kam Hing-lam said. "With the company's strong cash
position of over HK$10 billion, we are well placed to consider large
acquisitions that add value to Cheung Kong Infrastructure's portfolio," chairman
Victor Li Tzar-kuoi said. "Currently, we are working on a number of
international acquisition opportunities in different sectors." Cheung Kong
Infrastructure, with (nearly) HK$11 billion cash, would like to buy regulated
electricity, gas and water distribution assets in developed countries such as
Australia, New Zealand and Britain, Citigroup analysts Pierre Lau and Maggie Mok
wrote in a research report. In 2009, Cheung Kong Infrastructure's turnover fell
10.7 per cent to HK$2.18 billion, while its net profit expanded 25.9 per cent to
HK$5.57 billion, below Citi's forecast of HK$5.62 billion. The company's profit
growth was driven by a 29 per cent increase in earnings from its mainland
project portfolio to HK$1.72 billion, a 12 per cent rise in profits from its
British operations to HK$616 million, and a 116 per cent jump in its income from
Canada. Cheung Kong Infrastructure's total dividend for 2009 is HK$1.20 per
share, up 5.8 per cent from 2008. The company's share price closed 1 per cent
higher at HK$29.65 yesterday.
A pair of shoes only 7cm long that
collector David Ko believes are the world's smallest adult shoes. They are part
of an exhibition being held in Plaza Hollywood, Diamond Hill. For centuries,
Chinese officials placed restrictions on the colour and style of civilian
clothes. But one thing escaped such limitations - women's shoes. Dr David Ko
Chi-sheng, a collector of ancient shoes and head of Taiwan's Foot-Binding
Culture Museum, said: "One pair of shoes does not have significant meaning, but
the whole collection reflects history. Women's shoes changed dramatically over
hundreds of years, reflecting not only fashion but also culture and relations
between the sexes. Such freedom does not mean much nowadays, but the
significance then cannot be underestimated, Ko said. The 54-year-old is
exhibiting a selection of 70 shoes and accessories in Hong Kong that reveal the
history of Chinese women's shoes, in celebration of International Women's Day on
Monday. Among the collection on display is a tiny pair of shoes from Taiwan just
7cm long. Ko said the 100-year-old pair were possibly the smallest adult shoes
in the world. The public will also get the chance to see 900-year-old silk
stockings and shoes from the Ming dynasty that are more than 500 years old. Ko
estimated that 3.5 trillion Chinese women had had their feet bound, which was
considered beautiful in the past. Men found them so attractive that drinking
glasses were made in the shape of tiny shoes, some of which are also on display.
Ko, a medical doctor, studied how binding affects the foot's anatomy. Although
the tiny high heels do not look comfortable to modern eyes, they fit women with
bound feet better than flat shoes. This is because the front part of their feet
is bent, and their heels do not touch the ground. "Many people criticise the
wearing of [ancient] high heels, but people would not have worn them for over
1,000 years if they offered no advantages," he said. Ko first became enamoured
with shoes when he was only 10 years old. He became a collector when he was 18
and has published three books on the subject. In 44 years, his collection has
grown to 6,000 pairs of shoes and 4,000 accessories, which include pieces of
lace used to decorate the shoes and heels, and a small iron the size of pen that
was used to iron cloth-made shoes. Although he does not know the value of his
collection, he estimated each pair to be worth in excess of 10,000 yuan
(HK$11,350). The shoes are very fragile, even compared with ancient paper. He
keeps half of his collection in vacuum-sealed containers, which cost him NT$1
million (HK$242,540) annually. The exhibition is being held at Plaza Hollywood,
Diamond Hill, until March 13. 
Major traffic disruption is
feared in the Yau Tsim Mong district of West Kowloon when at least six roads are
affected by closures to allow construction of a section of the high-speed rail
link to Guangzhou. And a district councillor has criticised authorities for
failing to submit a traffic impact assessment report for the construction
period. The work, in the latter half of this year, will also mean changes to
more than 30 franchised bus and green minibus routes. Road diversions will add
to travel times on the routes. In a document discussed by the Yau Tsim Mong
District Council yesterday, it was revealed that busy roads, including a section
of Austin Road West between Canton Road and Lin Cheung Road, will be closed for
four years from the third or fourth quarter of this year. A new road may be
built adjacent to this section. A large part of Lin Cheung Road will also be
closed or involve a diversion before the end of this year. "Not only is there no
assessment on traffic impact, there is also no risk assessment on the project's
impact to nearby housing," district councillor Chan Wai-keung said. He proposed
that construction of the rail link be delayed, but this was rejected by other
councillors. The Transport Department did not say how much longer journeys would
become, but stressed that road closures would be implemented in five different
stages, and a new substitute road would be built before an old one was closed.
Transport officials said the area's traffic would be greatly improved after
completion of a road improvement scheme. Many new roads - including an extra
road that will provide direct access to the northwestern part of the New
Territories, and an underpass in Canton Road to separate traffic going in and
out of the West Kowloon district - will be built to rationalise the area's
traffic. Lin Cheung Road will be widened, while there will be fewer lights to
smooth traffic flow. Officials said more details and the impact on traffic
during the construction period would be submitted to the council before the
commencement of work. Apart from road changes, a new underpass will be built for
pedestrians to improve the connection between West Kowloon and the Jordan MTR
station. The government recommended that the tunnel be built along Po Ning Road.
In January, the Legislative Council approved HK$66.9 billion in funding for
construction of the high-speed rail link.
Hong Kong home prices recorded the
strongest inflation-adjusted gains in a survey of 34 property markets last year,
followed by Taiwan. The Global Property Guide's 2009 survey of residential
property prices showed Hong Kong housing prices ended the year up 20.8 per cent
in real terms against 2008 year-end prices, after a 15 per cent decline in last
year's first quarter triggered by the global financial crisis. Taiwan was ranked
second after its recovery from the global property slump in the first quarter of
2009, with home prices up 18.3 per cent. The online property research firm said
that in the last quarter of 2009, home prices rose in 22 of the 34 countries for
which quarterly statistics were available, and fell in the remaining 12
countries. The worst performer was Latvia. Home prices in the capital, Riga,
ended 2009 down 50.2 per cent, after declining 36.9 per cent in 2008. Dubai
prices fell 43.3 per cent last year after surging 42.7 per cent in 2008. The
recovery in Hong Kong took property prices comfortably back above pre-crisis
levels. In Singapore they took a roller-coaster ride in 2009 after a decline in
inflation-adjusted terms of 9.6 per cent in 2008. After extending price falls
into the first half of 2009, home prices rose 14.3 per cent in the second half
to end the year up 2.1 per cent. The survey showed that, compared with other
Asian countries, Japan's recovery is slow. The average price of existing
condominium sales in the country was up by a meagre 0.8 per cent in
inflation-adjusted terms during the year to the end of 2009, according to the
research house. The return to positive territory for the year-end data was the
result of a 3.5 per cent increase in prices during the final quarter of the
year. In Australia and New Zealand, home prices increased by 11.3 per cent and
4.9 per cent, respectively. But in Thailand, housing prices ended the year down
by 15.6 per cent compared with the end of 2008, after a 1.9 per cent recovery in
the last quarter. Global Property Guide's survey data used price changes after
inflation, which provide a more realistic picture than the nominal figures that
are usually preferred by real estate agents. Although the survey pointed to a
general recovery in worldwide property markets in the third or fourth quarter
last year, it has been uneven, according to a commentary attached to the data.
While some countries in Asia rapidly recovered, housing markets in some of the
world's worst-hit countries continued to decline. In the United States, home
prices fell by 0.3 per cent in inflation-adjusted terms in the fourth quarter,
or by minus 2.6 per cent over the full year of 2009, according to the Federal
Housing Finance Agency's purchase-only index, the most authoritative US index.
In Canada, housing prices declined 2.2 per cent to the end of 2009. But the home
price index stopped falling in September, suggesting a recovery was under way as
the year drew to a close.
China has offered to relieve the
European Union's naval escorts of UN food shipments to Somalia - an expansion of
the People's Liberation Army Navy's historic Indian Ocean deployment that is
likely to see it face greater risks. In an unprecedented act, PLA Navy officers
offered to ease the EU's escort burden during a monthly meeting in Bahrain this
week of international navies involved in fighting pirates plaguing vital
Asia-Europe shipping lanes off the Horn of Africa. The EU had not formally
requested assistance but had made clear internationally that its naval force was
struggling to cope with increasing escort demands and a worsening piracy crisis.
Somali pirates now deploy mother ships to range far out into the Indian Ocean.
Such raids are expected to become more frequent during monsoonal calms in April
and May. The World Food Programme, meanwhile, has warned of a worsening
humanitarian crisis across the failed state, with more than 3.6 million people -
half its population - needing outside help. "China has been very forward leaning
on this," said one envoy involved in the meetings. "They made the offer out of
the blue without being asked, but it is exactly what is needed - it is a very
welcome offer given the strain now being felt by EU naval forces." It is
understood both Nato and the US-led Combined Maritime Forces flotillas had made
clear they were already stretched with broadening commitments and would not be
able to help the EU, which has committed to running escort patrols until the end
of this year. It is expected to continue the effort for at least another two
years. If successful, the offer will require the PLA to co-operate even more
closely with EU counterparts as well as international commercial shipping. It
will also mean PLA naval ships must sail much closer to the lawless Somali
coast.
Egypt, which touts itself as the
"gateway to Africa", aims to get more Chinese firms involved in its information
technology and telecommunications development as China's investments in the
country continue to rise. "We are now looking East after years of being focused
on the United States and Europe," said Tarek Mohamed Kamel, the Egyptian
minister of communications and information technology who was in Hong Kong
yesterday as part of a business delegation to drum up investment from Asia.
Telecoms equipment manufacturers Huawei Technologies and ZTE Corp (SEHK: 0763)
were the two leading hi-tech firms from China investing in Egypt, Kamel said.
The delegation's visit comes after Prime Minister Wen Jiabao pledged at a forum
on China-Africa co-operation in Egypt last November to give African countries
US$10 billion in concessional loans. That assistance highlighted Beijing's
growing economic influence in the continent. China is now Egypt's 22nd largest
source of foreign direct investment. "We expect investments from China to
continue expanding, building on the strong levels recorded over the past five
years," Mahmoud Mohieldin, Egypt's minister of investment, said. "Chinese
companies have increasingly turned to Egypt for opportunities in our
well-developed local market as a launch pad into Africa and as a strategic
location for the rest of the Middle East as well as for Europe." There were
1,022 Chinese companies doing business in Egypt, representing total investments
to date worth US$307 million, the vast majority in the past five years, the Arab
country's General Authority for Investment said. "The information and
communications technologies sector represents about 3.8 per cent of our annual
gross domestic product of 1.1 trillion Egyptian pounds [US$1.54 trillion],"
Kamel said. "Chinese companies like Huawei and ZTE are benefiting from the
sector's 12 to 13 per cent average annual growth rate over the past five years.
"We're encouraging Chinese firms in this sector to grow their operations in the
country and make use of Egyptian talents to tackle other markets in the Arab
region, Africa and Europe." Huawei, China's largest telecoms and networking
equipment maker, last November opened a regional training centre, with US$20
million worth of equipment, at Smart Village Cairo, Egypt's prime technology and
business park. Kamel said that since 2004, ZTE had cemented its position as the
largest provider of CDMA-standard equipment for Telecom Egypt.
Women judges show their robes on the
red carpet to mark the International Women's Day, which falls on March 8, in
Jinan, capital city of east China's Shandong province, March 4, 2010.
Women judges in evening dresses walk
on the red carpet to celebrate the upcoming International Women's Day in Jinan,
capital city of east China's Shandong province, March 4, 2010.
Picturesque scenery in Baise’s
Jiuzhou township. This city in the Guangxi Zhuang autonomous region is noted as
a place of history - from both a very long time ago and modern China. Discovery
of a Paleolithic Age hand ax in some 800,000 years ago in Baise in 1970s
surprised anthropologists and rewrote the history of human civilization in Asia.
Life at the United
Services Recreation Club, an enclave of relaxation within a military barracks,
goes on pretty much as it has for the better part of a century, but with one big
difference: none of the service personnel from the barracks use it. Established
in 1911 in the Gun Club Hill barracks in Tsim Sha Tsui, primarily for the use of
the colonial British garrison, it was also opened to the public and by the
handover in 1997 had few service members. It was handed over intact to the
People's Liberation Army, together with the barracks, at the request of the
Chinese side and is now run as a private club for members of the public able to
afford a HK$100,000 joining fee and HK$1,100 a month. According to the security
chief, the PLA has nothing to do with its management, although pre-handover
documents said the garrison chief should be responsible for its management. Now,
lawmakers are questioning why the prime site in Gascoigne Road, with its tennis
and squash courts, lawn bowls green and restaurant, should remain in military
hands if it isn't being used for military purposes. At a Legislative Council
meeting yesterday, unionist Lee Cheuk-yan suggested the site be used for other
purposes. He noted that Article 13 of Garrison Law provided that, with the
approval of the central government, the Hong Kong government could acquire any
military site not used for military purposes without payment. Cyd Ho Sau-lan, of
Civic Act-up, said the club was being used for purposes unrelated to defence and
suggested the government seek Beijing's approval to acquire the site for
community use. Secretary for Security Ambrose Lee Siu-kwong said according to
the Exchange of Notes in 1994 between the Chinese and British governments on the
future use of military sites in Hong Kong, "from July 1, 1997, the United
Services Recreation Club will continue to enjoy the use of all facilities on the
same terms as at present". The notes also stated that "the commanding officer of
the Chinese garrison or his representative will assume the responsibilities for
the direction and control of the club", Lee said. But the security bureau
understood that the PLA neither took part in the daily management of the club,
nor shared any of the club's income. "The PLA and their families in Hong Kong
have not been using this club," Lee said, adding that the Hong Kong government
did not have the right to ask the PLA how it directed and controlled the club.
"I don't want to speculate on the reasons that the PLA and their families are
not using this club, and I don't know when they will use it in future," Lee
said. But he said the club's revenue - HK$28 million in 2008, according to its
annual report - was used for membership and facilities upkeep and did not
involve any violation of the Garrison Law that prohibited it from engaging in
profit-making activities. "Certainly, the Hong Kong government would be happy if
we could acquire military sites from the central government without any
consideration," Lee said. But he said the government saw no need to invoke the
Garrison Law to acquire any military sites for public use. A garrison spokesman
said the PLA did not participate in the management and daily operation of the
club and did not receive any rent or income from it. He said army members'
families - including parents, spouses and children - could visit officers in
Hong Kong and officers could return to the mainland on their annual holidays for
recreation. The PLA refused to disclose the number of officers based in Hong
Kong, saying it was an internal issue and it ensured there were enough officers
in the city for security needs.
A row
over the television coverage of the 2010 World Cup soccer matches showed little
sign of ending yesterday after rights holder i-Cable (SEHK: 1097) said it had no
obligation to sub-license the event to the two free-to-air stations. Less than
100 days before the kick-off in South Africa, the pay-TV operator said it would
speed up connecting its Cable TV Channel 1 - offered at HK$10 for a life
subscription - to households. The channel will carry four matches, including the
semi-finals and final, and daily highlights. Since the channel is virtually
free, this meets the Fifa requirement to show a minimum number of games to a
wide audience, the operator says. Talks between i-Cable and the two broadcasters
were scrapped last week after TVB (SEHK: 0511) and ATV rejected the cable
company's contract terms. According to that proposal, the two stations would be
allowed to relay the signals carried by Cable TV Channel 1, but would have to
carry associated programming, advertising and promotional material. This was in
sharp contrast to arrangements for the two previous World Cups - for which i-Cable
also had exclusive rights - when some matches were sub-licensed to the free
broadcasters and they were allowed to repackage it with their own programs.
TVB's general manager for broadcasting, Cheong Shin-keong, had said the new
arrangement was against the company's principles and TVB would not accept such
terms even if it did not have to pay. The government has pleaded with the
companies to settle the issue in the public interest. Samuel Tsang, i-Cable's
World Cup project manager, insisted yesterday the company was in full compliance
with its agreement with Fifa, football's governing body. He said i-Cable had no
obligation to sub-license to TVB or ATV, and that its proposed sub-licensing
arrangements were in line with its agreement. "World Cup broadcasting rights
were open for bidding by all Hong Kong TV operators, including the two
free-to-air stations," he said. "The fact we are the successful bidder speaks
much about the importance [TVB and ATV] had given to 'viewers' interests' they
are talking about." A member of senior management said Cable TV's decision was
based on past experience. "We were not able to make profits as the audiences and
the adverts were seized by the free broadcasters," he said. Both TVB and ATV
said they still hoped to strike a deal with i-Cable. "Different stations can
present the World Cup matches in different ways and it has always been the case
in the past," a TVB spokeswoman said. "It is the only way to offer the public a
choice." ATV and TVB have written to Fifa, but the World Cup organisers have yet
to reply. A person familiar with TVB and ATV's position conceded they could do
nothing if i-Cable insisted on sticking to its proposal. "It is an event that
attracts the attention of everybody in the city and the public should be able to
view it for free."
Hongkong Electric (SEHK: 0006)
Holdings expects an even larger contribution from its overseas portfolio this
year after it provided a much-needed cushion to tumbling profitability on its
home turf last year. The utility, ultimately held by Li Ka-shing, said yesterday
net profit fell 17 per cent to HK$6.69 billion last year, or HK$3.14 per share,
on turnover of HK$10.39 billion, which was down 18.63 per cent. However, the
decline was less severe than analysts' forecasts. The combined electricity
generation and distribution assets on the mainland, in Australia, Britain,
Canada and New Zealand doubled earnings to HK$2.05 billion last year from
HK$1.02 billion previously, driven by strong economic recovery in Guangdong in
the second half of the year. This helped offset a 31 per cent drop in profit to
HK$4.61 billion from its core electricity supply on Hong Kong and Lamma islands
when the new scheme of control agreement took effect and pared the return on the
fixed net assets of the city's two power utilities to 9.99 per cent from 13.5-15
per cent. Hongkong Electric, which has its core earnings tied to expenditure on
power assets, spent HK$2.75 billion last year - 32 per cent more than in 2008 -
largely on installing desulphurisation facilities at its Lamma plant. A company
spokeswoman said China and Australia were the biggest overseas contributors,
each accounting for 30 per cent of the group's HK$2.05 billion offshore
earnings. She said three newly acquired power plants performed better than
expected due to a rebound in manufacturing activities in Guangdong and stable
coal prices. A year ago, Hongkong Electric bought from its parent, Cheung Kong
Infrastructure Holdings (SEHK: 1038), a 45 per cent stake in each of the plants
- a 1,400 megawatt power station and a neighboring 1,200 MW Jinwan plant in
Zhuhai, and a 200 MW plant in Siping in Jilin province - for HK$5.68 billion. An
analyst with an American brokerage said mainland coal prices would jump 10 per
cent this year, which would be a challenge for Hongkong Electric's China
portfolio. "The question is whether Hongkong Electric can sustain the growth
this year," he said. "If demand and tariff don't grow fast enough, its
profitability will be eroded by higher coal costs." Uncertainty also surrounds
ETSA Utilities, the sole electricity distributor in South Australia and a key
asset of the group, whose tariff proposal for the five years to 2015 is under
consideration by Australian Energy Regulator. The regulator is due to make a
decision next month on a plan that seeks a 3 per cent increase in electricity
tariffs in each of the next five years. Hongkong Electric's final dividend is
HK$1.49 per share, meaning the full-year payout will be HK$2.11, the same as in
the previous year. The company's shares fell HK$1.10 or 2.44 per cent to
HK$43.95 yesterday after the results announcement. 
Hong
Kong's banking watchdog has acted to head off a damaging mortgage price war by
setting guidance floors on mortgage rates, and warning lenders of default risks
in a property market correction. The move came after banking giant HSBC last
month launched the city's lowest mortgage rate - a 0.65 percentage point premium
to the one-month Hong Kong interbank offered rate (Hibor). HSBC's offer, the
lowest in 20 years, was soon matched by its rivals. The Hong Kong Monetary
Authority fears that the intense price competition in mortgages is not
sustainable and puts smaller banks at risk in the event property prices slide
and global interest rates rise. With Hibor at about 0.08 per cent yesterday,
HSBC's effective offered rate was 0.73 per cent. It was the first time HSBC had
launched a Hibor-linked mortgage product and came after it lost market share to
other banks offering such products. The authority said it had held meetings with
banks about their lending practices and was concerned about "whether banks'
pricing decisions ignored the potential adverse impact of future increases in
funding costs or delinquency levels on their financial soundness". It told banks
their pricing framework needs to include a "reference level" that takes into
account their capital, credit costs, expenses, incentives for customers and
delinquency assumptions. ICBC (Asia) (SEHK: 0349) deputy general manager Stanley
Wong Yuen-fai told Bloomberg the authority had set the level at 0.7 percentage
point above the one-month Hibor and 3.1 percentage points below the banks' prime
mortgage rate. The authority's spokesman would not comment on the reference
levels but said "if a bank's existing mortgage rate is lower than what we
consider to be sustainable, we will discuss with the bank to see how it can
justify its rate on risk management grounds and ensure the sustainability of its
mortgage rates through an economic cycle". While the authority does not impose
interest rates on banks, it has the power to require banks to rectify lending
practices it deems may endanger the banking system. Fuelled by ultra-low
interest rates and a flood of liquidity from global economic stimulus measures,
Hong Kong mass-market property prices rose 30 per cent last year while those of
luxury homes surged 40 per cent. Speaking on the sidelines of the China People's
Political Consultative Conference in Beijing, Hongkong and Shanghai Banking (SEHK:
0005) Corp chairman Vincent Cheng Hoi-chuen denied that the lender was leading
the price war. He said even without floors on rates, mortgage lending would not
spin out of control, given banks exist to make profits, and that local mortgage
delinquencies were low even during the Asian financial crisis. But the HKMA said
banks should avoid placing "undue reliance" on historical data when doing their
risk management. In particular, it warned that unlike the 1997-98 Asian
financial crisis, when declining interest rates reduced default risks, this
"might not repeat itself when the next decline in the property market takes
place". Nomura Securities analyst Grace Wu said as the suggested floor prices
were not far off the most aggressive offers in the market, they would not have a
big impact on mortgage rates. But they will favour large banks over small ones
as the big lenders' funding cost is close to zero, while the small players have
to borrow from the interbank market to finance their loans. Smaller banks will
have a hard time justifying further aggressive pricing moves to the authority,
Core Pacific-Yamaichi Securities analyst Lee Yuk-kei said. 
New World Development and
Wheelock Properties (SEHK: 0049) have agreed to pay more than HK$9,100 per
square foot for MTR Corp's HK$18 billion Austin Station project in West Kowloon,
signalling that they expect prices in the area to continue to soar. MTR Corp
announced yesterday that the New World-Wheelock consortium won the tender for
the luxury residential project above Austin Station. The Lands Department has
imposed a land premium levy of about HK$11.71 billion, or HK$9,130 per sq ft,
for the site, its most expensive land premium levy ever. "They [developers] are
obviously expecting property prices for the project to hit a record or they
wouldn't have bid for the site," said Wong Leung-sing, an associate director of
research at Centaline Property Agency. "The area will be the new city centre for
Hong Kong. Every developer has to get a development project in the area. That's
why developers were willing to bid aggressively for the site." Nelson Chan
Cheong-kit, a director at Lanbase Surveyors, predicted that property prices for
the project may reach HK$20,000 to HK$30,000 per square foot when it launches.
Stewart Leung Chi-kin, an executive director at New World Development, said the
consortium had submitted two profit-sharing proposals for the site based on two
scenarios. One assumed the MTR Corp would pay one third of the premium, and the
second scenario assumed that New World and Wheelock would have to pay the
premium between them. In the end, MTR Corp chose to pay one-third of the
premium. Including construction costs, interest expenses and profit sharing with
the railway operator, the average land price for the site in terms of the gross
floor area is higher than the current prices of the estates above Kowloon
Station. Property prices above Kowloon Station jumped 50 per cent last year, the
steepest jump in the area. It is the first project that New World Development
has acquired in a public tender since it won the tender for MTR Corp's HK$6
billion Che Kung Temple Station in Sha Tin in April last year. The luxury
residential project will be built on top of the new Austin Station in Canton
Road, next to a golf driving range that will be redeveloped into a commercial
project above the Guangzhou-Shenzhen-Hong Kong Express Rail Link at West Kowloon
Station. The site covers 2.74 hectares and could be developed into a
commercial-residential project with a total gross floor area of more than 1.28
million square feet. The project could provide 1,200 units. 
Logistics firm DHL
plans to invest HK$360 million to expand its Hong Kong operations into a
one-stop facility to cater for growth in the region. Seven new transportation
hubs will also be established in the mainland taking the total there to 67, said
DHL Supply Chain Asia Pacific chief executive Paul Graham. "We are going to
develop Hong Kong as the distribution center in Asia Pacific for our key
industries because of its strategic importance as a market and a major gateway
to Greater China," said Victor Mok, DHL Supply Chain executive vice president in
Greater China. Graham added:" Although the logistics market here is not mature
enough, we will continue to expand in Greater China as it is the fastest growing
region of our business." The company is looking to develop its business further
in second- and third- tier mainland cities, he added. DHL, the leading logistics
provider globally, has developed its Hong Kong base as a hub for many leading
retail brands, offering warehousing and distribution service. It also arranges
for manufactured goods from the mainland to be brought to Hong Kong for
distribution elsewhere. The logistics provider's one-stop unit on Tsing Yi will
have a total gross floor area of 2.39 million square feet when it is completed
in January 2012. It will employ more than 300 people. Mok predicts the facility
will allow DHL to grow faster in the region. He said it wants to help keep Hong
Kong as an international logistics center.
Chinese President Hu Jintao (L),
who is also General Secretary of the Central Committee of the Communist Party of
China, talks with Tung Chee-hwa, vice chairman of the National Committee of the
Chinese People's Political Consultative Conference (CPPCC), before the opening
meeting of the Third Session of the 11th CPPCC National Committee at the Great
Hall of the People in Beijing, capital of China, March 3, 2010. 
Top Communist Party of China (CPC)
and state leaders Hu Jintao (C, Front), Wu Bangguo (2nd R, Front), Wen Jiabao
(2nd L, Front), Jia Qinglin (1st R, Front), Li Changchun (1st L, Front), Xi
Jinping (2nd L, Back), Li Keqiang (2nd R, Back), He Guoqiang (1st L, Back) and
Zhou Yongkang (1st R, Back) walk to attend the opening meeting of the Third
Session of the 11th National Committee of the Chinese People's Political
Consultative Conference (CPPCC) at the Great Hall of the People in Beijing,
capital of China, March 3, 2010.
Former Olympic 110-metres hurdles champion
Liu Xiang arrives as a delegate for the opening session of the Chinese People's
Political Consultative Conference in the Great Hall of the People in Beijing
yesterday. Liu will submit a proposal calling for better working conditions and
social security benefits for the nation's sports coaches. 
China Merchants Bank (SEHK: 3968)
said on Wednesday it had applied to open an office in Taiwan, as mainland banks
rush to build up a presence on the island after the signing of a cross-strait
financial services agreement last year. The bank, the sixth largest in mainland,
is aiming to initially open a representative office in Taiwan, a former
political rival that all but banned such investments before a recent thawing in
ties across the Taiwan Strait. “We have many Taiwanese clients on the mainland,”
China Merchants Bank president Ma Weihua said on the sidelines of the opening
Chinese People’s Political Consultative Conference in Beijing. “We’ll be able to
know our clients better through a representative office in Taiwan.” Business
ties have flourished across the Taiwan Strait in the last 20 years, but
financial firms in mainland and Taiwan were largely prevented from investing in
each others’ markets as tensions lingered between the former rivals. That has
changed under the administration of Beijing-friendly Taiwan President Ma Ying-jeou,
who has eased many restrictions on travel and investment between Taiwan and
mainland in the nearly two years since he took office. A number of banks on both
sides of the strait have expressed interest in opening branches or taking stakes
in cross-strait peers since Taiwan and Beijing signed a memorandum of
understanding late last year paving the way for such investments. Bank of China,
mainland’s biggest foreign exchange lender, said earlier this year it would
apply to set up outlets in Taiwan. Sources also previously had told that ICBC,
mainland’s largest bank, was interested in buying a stake in Cathay Financial,
Taiwan’s largest financial holding company. ICBC later denied it had any such
plans.
China Mobile (SEHK: 0941) said it is in
preliminary talks to take a stake in Shanghai Pudong Development Bank, forming
an alliance that could speed up its move into mobile financial services. The
world’s largest mobile carrier, which has more than 500 million subscribers,
would take the stake via a potential subscription of new shares from Pudong
Bank, China Mobile said in a statement on Wednesday. China Mobile said it was
also in talks about a potential strategic co-operation with the bank, but could
not give a timeframe for the subscription – if and when it proceeds. Shanghai
Pudong Development Bank, part-owned by Citigroup, planned to raise about 40
billion yuan (HK$45 billion) by selling a roughly 20 per cent stake to China
Mobile, two brokerages said last week. Listed companies in mainland sometimes
brief analysts about major developments ahead of official announcements, but
after share trading suspensions. Analysts say the strategic investment would
help boost Pudong Bank’s profitability and may expedite the adoption of China
Mobile’s nascent mobile payment system nationwide ahead of its rivals at home.
Mid-sized Pudong Bank is joining other major mainland lenders, including Bank of
Communications (SEHK: 3328) (BoCom) and China Merchants Bank (SEHK: 3968), to
raise cash to replenish capital bases that were weakened by last year’s lending
spree and in order to meet tighter capital rules. The fundraising would boost
Pudong Bank’s core capital adequacy ratio by about four percentage points to
above 10 per cent, while boosting its capital adequacy ratio to nearly 14 per
cent, Guotai Junan analyst Wu Yonggang said in a research report. Mainland banks
lent nearly 10 trillion yuan last year to support government stimulus, weakening
their balance sheets. Several banks have announced fundraising plans in recent
months. This week, BoCom, mainland’s fifth-biggest lender by assets, said it
planned to raise as much as US$6.1 billion via a rights issue in Shanghai and
Hong Kong to bolster capital. 
China replaced the United States as
the world's largest commercial real estate investment market last year and is
likely to retain that position as global money flows improve as the country's
economy grows, according to a report by property consultancy Cushman &
Wakefield. But some analysts warned that proposed regulatory changes concerning
offshore transactions may limit foreign investment on the mainland, which is now
dominated by local players. In its newly released summary report on global
investment market trends, Cushman & Wakefield said real estate investment in
China grew 143 per cent to US$156.2 billion last year, while falling in the US
by 64 per cent to US$38.3 billion. Excluding residential investments, the US
ranked third after China and the UK. The US, which topped the rankings in 2008,
saw its property market hurt by high levels of unpaid debt and reluctance among
banks to lend as they cleaned up their balance sheets, Cushman & Wakefield said.
"We strongly believe that 2010 will be the year of unprecedented real estate
investment activity in China," said Richard Middleton, executive managing
director of Cushman & Wakefield's Greater China operations. However, there was
concern that proposed regulatory changes on the mainland regarding offshore
transactions might limit foreign investment, Jones Lang LaSalle said in its
latest research report, although it did not make specific reference to any.
China is also taking measures to cool off skyrocketing home prices, including a
re-imposed sales tax on homes sold within five years of their purchase, and the
People's Bank of China raised the proportion of deposits banks must set aside as
reserves, to reduce lending. "China will continue to see vibrant investment
activity despite recent government measures to cool down the property markets,"
Donald Han, Cushman & Wakefield's managing director for Asia-Pacific capital
markets, said in the report. China's real gross domestic product growth
accelerated to 10.7 per cent year on year in the fourth quarter last year, and
the full-year growth of 8.7 per cent exceeded the government's 8 per cent
target. Cushman & Wakefied said eight of the world's 20 largest property
investment markets last year were located in the Asia-Pacific region, with Hong
Kong, Taiwan and New Zealand registering gains in investment. Looking ahead,
Jones Lang LaSalle anticipates a 30 to 40 per cent increase in direct commercial
real estate investment volumes globally this year as the economic recovery
continues. The US real estate investment market, as it is coming from a low
base, may be poised to see the fastest rate of growth, a projected 50 to 60 per
cent. Expected volume growth in the Asia-Pacific is 30 to 50 per cent, and in
Europe, 20 to 30 per cent.
The US pavilion
is "guaranteed" to be ready for the Shanghai World Expo's opening ceremony
despite concerns about national buildings running late, the project's head
official vowed yesterday. "I guarantee it. We're going to be open on May 1," US
expo pavilion commissioner-general Jose Villarreal said. "Everybody knows that
not opening on May 1 is not an option. The reason for my visit is to reinforce
that point." Expo officials recently suggested that as many as a fifth of
self-built national pavilions may not be finished in time for the opening
ceremony, due in part to the complexities of having such a large number of
building projects next to one another. Villarreal said the US - one of the
largest and most highly anticipated attractions on the 5.3-square-kilometre site
- was not being given any leeway in the timetable. "I think we are held to a
little bit of a different standard, and we are certainly holding ourselves to a
little bit of a different standard," he said. Villarreal conceded there had been
some delays but they were due to the "very compressed period of time that we
have been dealing with". "You just cannot underestimate the difficulty
associated with a late start," he said. "You just don't have a lot of margin for
error." The US was one of the last countries to sign up for the expo due to
funding worries, and the question mark hanging over the country's attendance
until the middle of last year was a source of embarrassment for Shanghai
officials. The US pavilion is one of a few representing nations at the Expo that
are not paid for by public money. The budget for the US$61 million project had
to come entirely from private donations. Villarreal said members of the
organising committee had likened the fund-raising process to "building a bicycle
while you're riding it", but they were now nearing their target. "We are
probably about US$8 million shy of our goal," he said, adding he had no concerns
about raising the remaining money. "Obviously over the six months of the expo we
can continue raising funds for our operational costs," he said. "I hope I don't
have to do that." Villarreal reports directly to Secretary of State Hillary
Rodham Clinton, who has a "deep personal interest" in the project. Villarreal
said he was a little bit concerned about the pavilion's capacity to cope with
the number of visitors expected. It is estimated to be able to handle about six
million visitors over the course of the expo. That's an average of 33,000 per
day, a fraction of the expected 400,000 daily visitors to the overall expo site.
"The surveys all seem to indicate that the US pavilion, after the China
pavilion, is the pavilion that most Chinese people want to visit," Villarreal
said. "We have ranked at the top of that list every time that somebody has done
a survey. I don't want to see a bunch of disappointed people."
The People's Liberation Army (PLA)
navy is all set to dispatch two ships to the Gulf of Aden on Thursday to aid
international efforts to combat piracy off the waters near Somalia, a senior
naval commander told reporters here on Wednesday. Destroyer Guangzhou and supply
ship Weishanhu will set sail from the port of Sanya in Hainan province and will
be joined by frigate Chaohu, which had been dispatched to the region in December
to complement the fourth batch of ships, Zhang Wendan, senior colonel and deputy
chief of staff of China's South Sea Fleet said. More ships are also likely to be
deployed in future, as the threat posed by Somali pirates has not abated.
HSBC Holdings (0005) posted a disappointing 2 percent rise in annual net profit
- missing market estimates - after a decrease in the value of debt. Net profit
for the 12 months to December rose to just US$5.83 billion (HK$45.47 billion),
from a dire US$5.72 billion the previous year at the height of the financial
crisis. Profit in 2007 was US$19.13 billion. The number fell short of analysts'
expectations of between US$6.649 billion and US$11.72 billion. Following the
announcement, London-listed shares fell as much as 5.4 percent to 680.9 pence as
at 4pm London time, down 9.1 percent from the Hong Kong close. In New York, ADRs
were trading at the equivalent of HK$78.65. Investor guru Tony Measor, a long-
time shareholder of HSBC, said he was disappointed by the results. "I went along
with the majority and was expecting the lender to have a profit of about US$10
billion but finally it only reported US$6 billion," he said. Loan impairment
charges and other credit risk provisions rose to US$26.5 billion last year from
US$24.9 billion in 2008. This was despite a significant improvement in US loan
impairment charges to US$13.5 billion, from US$15.3 billion. HSBC now expects
broader impairment charges to decline in 2010. But excluding a one-off
revaluation loss of US$6.5 billion, the bank's underlying pretax profit was up
56 percent to US$13.3 billion from a year ago. Group chief executive Michael
Geoghegan insisted the performance was " no slouch." HSBC's Global Banking and
Markets investment banking arm saw pretax profit for the year rise to US$10.5
billion from US$3 billion a year earlier thanks to improved market conditions.
Earnings per share dropped 17 percent to US$0.34, which was fully paid out as
final dividends. A final dividend of 10 US cents was declared. But the payout
ratio was still down a whopping 226.8 percent from 2008. Excluding fair-value
changes of own debt due to credit spread, return on shareholders' equity was 9.2
percent. While the group's medium-term target is between 15 and 19 percent,
Geoghegan said ROE is likely to be at the low end of the target, given current
market conditions and proposed capital requirements. Geoghegan said HSBC had a
stronger-than-expected performance in January. Ten major investment banks had
estimated HSBC's profit to grow by between 16.1 percent and 107 percent. Morgan
Stanley had forecast a 35 percent decline. Geoghegan said market expectations
were higher since many analysts had ignored fair value changes. UBS, for
example, had estimated the bank would post a 107 percent profit growth to
US$11.7 billion. Meanwhile, City University associate professor Chan Yan-chong
said he was not disappointed, given a 56 percent increase in core profit. "It's
only the fair values of bad debts that people have got wrong. They're
complicated and difficult to forecast." Its Hong Kong shares closed up 0.93
percent, at HK$86.85, before the results were announced. 
Hang Seng Bank (0011) said net profit
declined 6.2 percent to HK$13.22 billion last year, which was in line with
market estimates. But analysts were surprised that the total dividend decreased
17.46 percent to HK$5.20 per share from HK$6.30 in the previous two years, while
the fourth interim dividend was HK$1.90 per share. The lender plans to subscribe
to a rights issue of [Fujian-based] Industrial Bank and to prepare for the
potential tightening of capital requirement by global regulators, said chief
executive Margaret Leung Ko May-yee. "We are going to spend 2.3 billion yuan,
which equals to HK$2.6 billion, on Industrial Bank," said Leung. "Interest rates
are expected to stay low this year and no doubt our net interest margin will be
under pressure." Leung also said it is hard to say if governments will exit from
their loose monetary policies this year. She believes there is more room for
development in the mainland but the bank currently has no plans to open more
branches there. Mainland outlets contributed 13.3 percent to last year's profit
compared with 11.9 percent in 2008. Non-interest income fell by 15.4 percent.
But the figure grew 13.5 percent in the the second half over the first. Leung
said sales of wealth management products will lead to growth of non-interest
income services. Turning to staff matters, she said only those who performed
well are eligible for a pay rise. Hong Kong employees will get a raise of
between 1 and 4.5 percent or a bonus of up to five months' pay. Mainland staff
will have an increment of 4.75 to 8 percent or a bonus of up to 3 months'
salary. The bank plans to hire 500 more staff in Hong Kong and 100 to 200 in the
mainland, Leung said. Vice chairman and chief executive for Hang Seng China
Dorothy Sit said the bank aims to reduce its loan-deposit ratio to 75 percent by
the end of next year. Hang Seng Bank shares rose 1.23 percent to HK$114.90
yesterday.
Does the financial secretary see eye to
eye with his boss, Chief Executive Donald Tsang Yam-kuen, over government
policies? Under the doctrine of collective responsibility, which requires
officials to promote policies whether they agree with them or not, we would
never know. But John Tsang Chun-wah offered students some insight on the matter
yesterday. "We have too many [disputes]," he told them during a discussion about
his budget speech delivered last week. "Is Donald a good boss? He should be
counted as one, but that doesn't mean we don't have differences," Tsang told one
questioner. "During the policymaking process, we always argue until our faces
turn red." Still, he characterised these arguments as rational discussions.
Tsang faced a range of questions at a forum yesterday organised by the
Federation of Youth Groups. Students asked about the lack of measures in the
budget to rein in fastrising property prices, and questioned whether steps
announced to help the needy were adequate. The financial secretary reiterated
that the HK$20.4 billion in relief measures for households he announced in the
budget - including salaries tax and rates rebates and a partial waiver of public
housing rent - were in addition to considerable regular spending on public
services. He said that while his budget was not perfect, he had followed policy
directions laid down by the chief executive in his policy address last year.
Tsang is seen by some as a dark-horse candidate for chief executive. While none
of the students asked him directly whether he had any ambition to fill Donald
Tsang's shoes, some were interested to know what he considered his noteworthy
personal qualities to be. "The most important thing is that I have always tried
to fulfil my duties with all my heart," Tsang said. "This is what I have
achieved." Meanwhile, fewer than three in 10 people polled by Chinese University
said they were satisfied with the budget and 43.4 per cent thought it only
"so-so". Nearly one in six of the 752 respondents were dissatisfied with it.
Forty-four per cent of those polled said the budget had not done enough for the
middle class, and 31 per cent said it had done too little for the poor. Overall,
respondents gave the budget a score of 58.1 per cent out of 100. Still, the
survey found Tsang's popularity rose 2.1 points to 56.8 out of 100 after be
delivered his budget. It also found dissatisfaction with the government had
dropped 6.5 percentage points in a month, to 28.1 per cent. The survey had a
margin for error of plus or minus 3.57 per cent.
A record high of almost 5.5 million
people visited Hong Kong in the first eight weeks of the year, up 18.2 per cent
from a year ago, Tourism Board chairman James Tien Pei-chun said yesterday.
Visitors from long-haul markets, which have been hit hard by the credit crunch
and global downturn, were up more than 9.7 per cent year on year, Tien said.
"The outlook in general is healthy," he said as he gave the board's annual
tourism overview. The relatively strong turnaround should be put in perspective,
however; the base of comparison is a low one, since visitor numbers from nearly
all markets dropped last year. The board has set a target of 31.1 million
visitors this year, up 5.2 per cent from last year, and estimates overnight
visitors' average spending will grow by 2.5 per cent, to HK$5,790 each per trip.
However, the average length of stay per visitor is expected to remain unchanged
at 3.2 nights. Despite the initial healthy growth in visitor numbers, the fact
that the recovery in the economies of major markets such as the United States
and Europe is only just beginning means the mainland is expected to continue
accounting for the lion's share of arrivals to Hong Kong. In recent years,
mainland visitors have accounted for close to two-thirds of the total. Anthony
Lau Chun-hon, the board's executive director, said it hoped to exploit the World
Expo in Shanghai, which opens in May, and November's Asian Games in Guangdong to
attract visitors. The board is spending HK$62 million to promote Hong Kong to
mainlanders this year, up from HK$55 million last year. Close to 70 per cent of
the budget will be used in cities outside of Guangdong. The board will work on
tourism promotion in Shanghai, Beijing, Hainan, Guangxi, Yunnan and Xian. Other
efforts include an arts and culture guide to be launched this month.
Sands China on Tuesday said it annual net
profit for last year rose 22 per cent to US$213.8 million from US$175.7 million
a year earlier driven by a surge in gambling revenue in Macau.
China's rural-urban wealth gap was
the widest last year since the nation launched its economic transformation three
decades ago, state media said on Tuesday, amid concerns the disparity could
spark unrest. Urban per capita income stood at 17,175 yuan (HK$19,500) last
year, compared to 5,153 yuan in the countryside, a ratio of 3.33 to 1, according
to data released by the National Bureau of Statistics. The agency did not
compare that to previous years, but the China Daily newspaper said it was the
widest gap since Beijing launched reforms in 1978 that set it on a capitalist
path. The disparity, arising from rapid economic development in coastal areas
and cities, while the vast interior has lagged behind, has become a key concern
of China’s leaders as they seek to maintain social stability and prevent unrest.
The government has announced several new policies recently aimed at addressing
the problem by spurring economic development in rural areas which are home to
about 900 million people and stitching up holes in social safety nets. There has
also been a swelling chorus for reform of a household registration system that
prevents China’s roughly 230 million poor migrant workers from gaining residency
in areas other than their hometown. This denies them access to public services
such as unemployment and health insurance, and free public schooling for their
children, forcing many to use precious savings to pay for them. On Monday, 13
major state-controlled newspapers around the country ran a rare joint editorial
calling for abolition of the system, which it said “shackles the people’s
rights.” The system of registered permanent residence, known in China as the “hukou”,
is blamed for turning holders into virtual second-class citizens in areas where
they have relocated in search of work and perpetuating the wealth divide. It is
rare for the mainland’s media to challenge a government policy. However, the
government itself vowed recently to reform it. The urban-rural divide is
expected to figure prominently during the annual session of the rubber-stamp
National People’s Congress, which opens on Friday. Premier Wen Jiabao singled
out the wealth gap and hukou issue as pressing tasks for the government in a
rare webcast at the weekend during which he fielded questions from online users.
“It is unfair if a society’s wealth is only in the hands of a few people. In
that case, the society is doomed to instability,” Wen said. The hukou system was
used in the 1950s to curb destabilizing population movements in a nation
recovering from civil war, but was eased under China’s economic reforms to allow
cheap labor to migrate to manufacturing hubs. 
Police have received approval from state prosecutors to arrest the former head
of the Chinese Football Association, Nan Yong, on bribery charges, state media
reported. The move, which follows his questioning in January and formal
detention last month, means Nan is now certain to undergo criminal trial on the
charges, which arise from an investigation into match-fixing in Chinese soccer.
Nan's former deputy Yang Yimin and the former director of the CFA's referees'
committee Zhang Jianqiang will face similar charges, Xinhua reported. The three
men are among more than 20 officials arrested or detained in the last three
months on suspicion of match- fixing, bribery and gambling. Two top-flight
clubs, Guangzhou and Chengdu, have already been relegated for their involvement
in the scandal while a second-division club, Qingdao, has been banished from
professional soccer altogether. If found guilty, the officials face a sentence
ranging from an administrative sanction to the death penalty, depending on the
amount of money involved. The only referee prosecuted in an earlier "black
whistles" bribery scandal, Gong Jianping, was sentenced to 10 years in prison in
2003 after admitting a charge of match-fixing. He died just 18 months later.
Peru's President Alan Garcia
(C), China's Ambassador to Peru Zhao Wuyi (R2) attend the ceremony announcing
the China-Peru Free Trade Agreement taking effect in Lima, capital of Peru,
March 1, 2010.
Tsoi Yuen Tsuen
residents celebrate the Lantern Festival yesterday, their last in the village.
All Tsoi Yuen Tsuen villagers were believed to have completed registering for
the government's compensation package yesterday as the offer expired, including
90 households that had been implacably opposed to the village's demolition for
the express rail link to Guangzhou. However, their acceptance of the
compensation - up to HK$600,000 in cash and the chance to get subsidised housing
without being means-tested - does not necessarily ensure smooth resumption of
the village in October. Ko Chun-heung, who has led a campaign against the
HK$66.9 billion railway since late 2008, said they would not leave unless the
government helped rebuild the village elsewhere before the deadline to vacate.
The 90 holdout households said on Monday last week they would leave if the
government helped them to recreate their village through a farming reinstatement
policy. Secretary for Transport and Housing Eva Cheng said yesterday this was
possible, and that several early applicants who wanted to stay together and
continue farming elsewhere had already passed an assessment and even found a
suitable plot. Under existing land policy, a non-indigenous village like Tsoi
Yuen Tsuen cannot be moved. But the government has a policy to reinstate the
houses and land of farmers affected by infrastructure development. Villagers who
practise farming can continue agriculture elsewhere and build a two-storey house
of about 400 sq ft per floor. The government received 200 applications by
yesterday, more than its original estimation of 150 households, although the
number of residents was short of the estimate of 500. "Our initial estimation
was pretty rough," Cheng said. Some of the last-minute applicants had registered
repeatedly, she said. Heung Yee Kuk member Tsang Hin-keung, who has been helping
the villagers find a new site, said easily accessible locations might cost about
HK$200 a square foot and could exceed their budget. "If they want a garden or
farmland, a single household may take up to 3,000 square feet of land, and that
may use up most of their compensation," he said. Ko demanded the government
offer villagers interest-free loans if compensation fell short. Cheng said this
was possible under the farming reinstatement scheme.
Some 31 million people were expected to visit Hong Kong this year – about 5.2
per cent more than in 2009 – Hong Kong Tourism Board (HKTB) chairman James Tien
Pei-chun said on Monday. Tien told reporters he was optimistic about prospects
for the local tourism industry this year. "The per capita spending by overnight
arrivals is likely to be around HK$5,790 per person, and tourism spending is
projected to be HK$174 billion – up 7 per cent from last year," Tien said. But
Tien said he was still concerned that the effects of the global financial crisis
on the economies of Europe, Australia and the United States would reduce the
number of long-haul visitors to Hong Kong. A HKTB spokeswoman told SCMP.com the
Shanghai World Expo, which starts on May 1, was expected to attract long-haul
tourists to Hong Kong. "Tourists who attend the World Expo normally travel to
other places before returning home," she said. She said the board would
co-operate with local travel agencies to introduce tour packages for visitors to
the World Expo. They would also liaise with local tour groups to offer more
discounts. "Tour products, such as a five-day Hong Kong-Shanghai flight and
accommodation package, will be attractive to them," the spokeswoman said. She
said the opening of Singapore's new theme park, Universal Studios, later this
year might divert some tourists away from Hong Kong. "To maintain Hong Kong's
attractiveness this year, the board will spend 20 per cent more on resources
promoting Hong Kong in neighbouring countries such as Malaysia and the
Philippines," she said.
Beijing heavyweight Rita Fan Hsu Lai-tai yesterday dampened hopes of a
breakthrough in deadlocked political reform, saying it would be difficult for
Beijing to fulfil the democrats' wish list, including assurances on genuine
universal suffrage. Fan, who returned yesterday from the National People's
Congress Standing Committee meeting in Beijing, said she had channelled the
views for the Alliance for Universal Suffrage to mainland officials as promised.
"As a messenger I could not speak for the central government and I could not
predict the results," she said. "But I would not underestimate the difficulties
for both sides." Fan, the former Legislative Council president, had appeared to
be a bridge between Beijing and the moderate pan-democrats following a meeting
last month. While she also met Democratic Party leaders yesterday, she said she
was not assigned by the central government as a delegate to channel its views.
The alliance, comprising 11 pro-democracy groups, has called for Beijing's
assurances on full democracy when officials table resolutions for amending the
methods for the 2012 elections. They also demanded an abolition of functional
constituencies by 2020 and a road map to universal suffrage. Fan said the
mainland officials did not respond to the alliance's views, but she foresaw
"great difficulties". "The NPC's decision in 2007 only suggested that Hong Kong
'may implement' universal suffrage for electing the chief executive in 2017. We
have to go through several steps to reach consensus in public [in the mean
time]. "If a mainland official now jumps out to make a pledge about genuine
universal suffrage in 2017 [for chief executive] or 2020 [for the Legislative
Council], it will be like ignoring the NPC's decision," she said. "It will also
be disrespectful to Hong Kong people [if such a promise was made without
consensus]." Fan said both Beijing and the alliance might need to tweak their
views. Fung Wai-wah, convenor of the Alliance for Universal Suffrage, believed
there was still room for discussion but reiterated that their demands were
basic. "An assurance on genuine universal suffrage will help to enhance public
confidence ... I believe the public are not going to be satisfied with a
discussion that only sticks with the arrangements in 2012." Lawmaker Albert Ho
Chun-yan, who leads the Democratic Party, agreed there could be difficulties in
the process towards democracy, and stressed his desire for dialogue. Ho had said
last month that if full democracy was to be realised in 2017 to 2020, a
transition period of increased public participation would be necessary between
2012 and 2016, such as allowing the public to vote in the proposed new
functional constituencies in which district council members can nominate
candidates. The administration has proposed creating 10 extra seats in the
legislature - five directly elected and five voted on by district councillors -
in 2012. It also proposes the Election Committee selecting the chief executive
be expanded to 1,200 members.
Movie actor-cum-director and comedian Stephen Chow Sing-chi is aiming to build a
Chinese version of Time Warner in the mainland after being appointed executive
director of Emcom International (8220), reports Sing Tao Daily, sister
publication of The Standard. "My dream is to build a company to become another
Time Warner, to make movies, animated series and merchandise that belong to the
Chinese film world," he said yesterday. "A market as big as China needs a large
entertainment company like Time Warner." He denied reports that he invested in
Emcom to speculate in shares of the firm, which is listed on the Growth
Enterprise Market. "Speculation is not my aim, it cannot satisfy me." Chow
expects to use the resources to produce more films every year, but he declined
to reveal an annual target. "The company will focus on producing movies that can
derive other products like animated versions, related merchandise and online
games, for instance CJ7." Chow said the animated version of CJ7 - which he made
and starred in - is set to be completed this summer. "Chinese kids should have
cartoons that are made in their homeland," Chow said, noting that mainland
animations have the advantage of government support for the industry. "It is
inevitable to consider the China market as a whole, though we also want to cater
to Hong Kong people's taste," he said, revealing that he started targeting the
mainland market since the production of Shaolin Soccer. Emcom is proposing to
change its name to Bingo Group, which Chow says he likes because he loves
hitting the jackpot. The movie legend, who is the largest single shareholder of
Emcom with a 14.59 percent stake, sold the image rights for CJ7 characters to
Emcom to develop them into peripheral products. The company will issue HK$45
million worth of convertible bonds to Chow with an option to subscribe for 250
million new shares that can boost his stake to 35.64 percent. It will also have
investment priority for Chow's future films.
More than 43,000 people went to Yonghegong,
or the Lama Temple, to burn incense on Sunday, the last day of the Spring
Festival and the 15th day of the lunar calendar. That figure was 8,000 more than
on the same lunar day last year, although well below the 60,000 that passed
through the temple's gates on the first day of this year's Spring Festival.
Yonghegong stopped ticket sales at 4:30 pm and the precise figure given did not
include complimentary tickets given out to lay Buddhists, said Wang Jinhua,
chief of the administrative department at the temple. The first and 15th day of
every lunar month are typically the busiest days for temples in terms of guests
because tradition dictates these are the days when Buddha is on duty. And the
first month is particularly special because followers of the faith come to make
wishes for the entire year. "I came here to burn incense with a friend because I
was in my hometown in Liaoning province on the first day of the Lunar New Year,"
said a woman surnamed Guo. Guo said she returned to Beijing for work on Feb 20.
She came to the temple following advice from a friend who suggested she pass her
wishes directly to Buddha. She told METRO she asked the spiritual teacher to
ensure her family remained healthy in the following year. The temple saw such a
heavy turnout Sunday that it took visitors more than three minutes to climb the
six steps into the temple hall. Incense filled the temple and venders selling
the goods were plentiful. "Our busiest period was the first hour of ticket
sales," said Wang. He said more than 7,000 people entered the temple between 8
and 9 am, and it had reached 20,000 by 11 am. The temple started selling tickets
at 7:40 am - 20 minutes ahead of schedule - because of a large queue outside the
gate, Wang said, which he estimated was longer than 500m. He added that his
staff did not have time to answer questions on the day, and that more ticket
windows were opened to cope with the demand.
Three runners were critically ill
last night after the toughest-ever Hong Kong Standard Chartered Marathon took
its toll in the heat and humidity. They were among 55 people taken to hospitals
after being overcome by heat stroke or dehydration in trying running conditions.
The three men in critical condition - two locals and a Filipino aged between 38
and 46 - are in the intensive care unit at Ruttonjee Hospital in Wan Chai. Of
those taken to hospital, 43 were men. Another 1,149 runners experienced cramps
while 227 others suffered from minor injuries. Last year only 16 runners
required hospital treatment. With humidity at over 90 percent and temperatures
around 25 degrees Celsius, many of the record 52,370 runners found either the
full marathon, half marathon or 10-kilometer race hard going. Men's marathon
winner and defending champion Kiogora Mwobi from Kenya finished the 42.2
kilometers about five minutes slower than his winning time in 2009. He took two
hours, 20 minutes and 12 seconds this year. "It was very hot this year, very
very hot. The course was not very difficult but the weather was the biggest
problem. When I compare this year and last year, this [year] was the toughest."
Ethiopia's John Chirchir Tubei came second in two hours, 23 minutes and 30
seconds. Behind him was Mongolia's Ser-od Bat-Ochir in two hours, 25 minutes and
two seconds. The women's marathon was won by Indonesia's Triyaningsih in two
hours, 47 minutes and 35 seconds. China's Jin Linlin came second a minute
behind. The main race, with about 7,700 entrants, started off from Nathan Road,
Tsim Sha Tsui, at 7.15am. The route included the West Kowloon Expressway,
Stonecutters Bridge, Tsing Ma Bridge, Ting Kau Bridge and Western Harbour
Tunnel. The finish line was at Victoria Park in Causeway Bay. The recently
opened Stonecutters Bridge was new to the course this year and the slope proved
to be tough for many runners. "I felt a sense of freshness about the route, but
it was tough with the uphill slope [on Stonecutters Bridge] ... I was able to
handle it at the beginning but once I ran up the bridge, it became very
difficult for me," a secondary school teacher runner, surnamed Lai, said.
Another local runner said she found it hard to breathe because of the heat.
However, organizing committee chairman William Ko Wai-lam said some foreign
runners told him they liked the challenging course this year. Blind Kenyan
athlete Henry Wanyoike, together with his running partner Joseph Kibunja, joined
12,600 others in the half marathon. The pair were participating for the seventh
year in a row. "The run was enjoyable and not very hard, because we are not
running to win but for charity," Wanyoike said. The 10km race, routed along the
Island Eastern Corridor and also finishing in Victoria Park, attracted 32,000
runners.
British insurer Prudential confirmed on Monday it will buy the Asian unit of US
insurance company AIG in a deal worth US$35.5 billion.
Stephen Bird says Citi has strengthened
its risk management, raised capital and is now one of the best-capitalised banks
in the world. Stephen Bird, the Scottish banker in charge of Citi in Asia,
received a frantic e-mail from a worried depositor at the peak of the global
financial crisis. Following the collapse of Lehman Brothers in September 2008,
the man was worried about the fate of Citi, where he and his mother had their
life savings. You could hardly blame the customer for being concerned. Citi was
among the United States lenders hardest hit by the financial crisis and had to
be bailed out by the government. To try to allay his fears, the 43-year-old
chief executive decided to call the client directly. "I introduced myself and
told him not to worry as all my money was in the same place as his," Bird
recalled. "We were in the same boat, I told him, and with the support of the US
government, Citi was probably the most secure place for your deposits." The
financial crisis has passed, and Citi has fully repaid the US$20 billion
received during the bailout. It is still 27 per cent owned by Washington, but
could be free from US government restrictions later this year. That means the
bank will regain control over what it pays top bankers. "We are aligned with the
principle of moving to long-term compensation packages," Bird said, a response
to the public anger over the huge bonuses paid on Wall Street. Bird is a
relative newcomer to banking. After graduating from University College Cardiff
with an MBA in economics and finance, he joined British Steel, where he was
responsible for a US$750 million car manufacturing complex. Bird was able to
achieve preferred supplier status from highly demanding Japanese carmakers based
in Europe. The young executive then moved to GE Capital and became director of
British operations. He joined Citi in 1998 as its Asia Pacific head for
operations and technology and was promoted to his current post in the middle of
last year. Citi has a long history in Asia. In Hong Kong, the bank recently
celebrated its 108th anniversary, and some clients, such as trading firm Li &
Fung, have been customers for more than a century. Asia will play an important
role in the recovery process for the lender. The group suffered a loss of US$1.6
billion last year but did report three quarters of profit in 2009; the fourth
quarter was affected by the payback of US$20 billion to the government bailout
program. Asia was the largest contributor to Citi's net income globally in 2008
and again in 2009, generating close to US$14 billion in revenues last year and
US$4.5 billion of net income, or 30 per cent of its global business. With its
3.8 billion population and strong economic growth, Asia represents the future of
the group, according to Bird. The group has operations in 18 Asian markets,
serving 35 million consumer customers. 
Frugal-minded Shanghai has ruled out an
"Olympics-grade" opening ceremony for the launch of the World Expo, due to take
place two months from today. The city has rejected plans for a massive opening
extravaganza featuring performances spanning the Huangpu River, which had the
potential to be "possibly no less spectacular than the Beijing Olympics"
ceremony, the Shanghai Morning Post reported yesterday. The move is partly to
keep the budget under control but also due to a directive from Yu Zhengsheng ,
the city's Communist Party chief, not to run any "unnecessary projects" to
ensure the six-month event goes off without a hitch. The newspaper said plans
for the opening were being kept under wraps but were understood to be based on
the principles of "simple and passionate". The Expo's budget is already
estimated to be twice that of the Olympics and has involved a massive drive to
upgrade the city's transport network and other infrastructure. Work is going on
all over Shanghai in a frantic last-minute push to get everything finished in
time, but progress has not been as swift as expected, and a number of major
projects have fallen behind schedule. Expo director Hong Hao admitted to the
city's official English-language paper, the Shanghai Daily, in late January that
almost one in five of the 100-odd self-built national pavilions would not be
ready in time for the opening. Elsewhere in the city, other projects are also
dragging on longer than originally planned, and cracks are beginning to show in
some efforts related to the city's facelift. On the Bund, the iconic strip of
colonial buildings running along the riverfront, tourists are greeted with a
chaotic panorama of construction work blocking the view of the water. The huge
renovation project - which includes a 3.3-kilometre tunnel to take most of the
traffic underground and a complete revamp of the promenade walkway - was
originally intended to be finished by the end of last year. City officials now
hope to have it completed by the end of this month, but no firm opening date has
been announced. Even some of the projects that have been completed are showing
premature wear-and-tear. Red-brick pavements laid throughout the city's French
Concession last year are starting to crumble and come apart. There are also
signs of Expo fatigue among residents. On Wulumuqi Road, someone has put
stickers of cartoon yellow sunglasses over the eyes of every Expo logo and
Haibao - the event's misshapen blue mascot - along a 100-metre stretch of
hoarding concealing a huge plot of demolished buildings. Such hoardings - and
the urban destruction they are meant to conceal - are a common sight in the
city, but the defacing of Haibao is not.
Toyota president Akio Toyoda's testimony
before the US Congress last week. On Monday, Toyoda flew directly from the
United States to China to meet with government officials and local reporters.
Toyota president Akio Toyoda sought to ease quality concerns during a low-key
visit to mainland on Monday, fresh from a gruelling hearing in the US Congress
over his company’s biggest safety crisis. Toyoda flew directly from the United
States to mainland to meet government officials and local reporters, according
to media reports, underscoring the importance of an auto market that surpassed
the United States last year to become the world’s largest. “He’s making this
trip because China has become the biggest auto market, in which Toyota
underperformed last year, from low-end products to high-end ones, such as
Lexus,” said IHS Global Insight analyst John Zeng. “If Toyota loses China, its
global position would be challenged.” Even as auto sales contracted in most
major global markets last year during the recession, mainland’s vehicle sales
jumped 53 per cent to 13.6 million units, as consumers purchased cars under a
raft of government incentives as part of Beijing’s 4 trillion yuan (HK$4.5
trillion) economic stimulus package. Toyota, which produces cars in mainland in
tie-ups with FAW Group and Guangzhou Automobile, sold 709,000 cars in the
country last year, up 21 per cent from the previous year. But that accounted for
a relatively modest 5 per cent of the market. Japanese automakers such as Toyota
and Honda have been relative bit players in mainland to date, with US and
European giants including General Motors, Volkswagen and Ford moving much more
aggressively. Toyoda was planning to meet with officials from mainland’s quality
control bureau, according to the reports, and was set to attend a briefing for
local and international media in Beijing at 6pm. A Toyota spokesman in Tokyo
said Toyoda was in mainland to discuss quality issues, but would not elaborate.
He confirmed that senior managing director Akira Sasaki, the head of quality,
and managing officer Masahiro Kato were travelling with Toyoda. The low-key
visit to mainland, with little advance notice and limited public appearances,
contrasted sharply with Toyoda’s high-profile showing last week before the US
Congress. Toyoda was grilled by US lawmakers for a series of recalls that have
tarnished the carmaker’s brand and reputation for quality, particularly in the
United States, its largest market. Toyoda also met with US safety officials as
well as workers and dealers while in Washington. Toyota has recalled more than
8.5 million cars globally for unintended acceleration and braking problems, in a
widening safety crisis that broke about a month ago. The bulk of the recalls are
in the United States. By comparison, Toyota’s woes in mainland have been
relatively limited so far, with the company recalling 75,552 RAV4 vehicles there
due to faulty accelerators. Toyota said in November it was aiming to sell
800,000 cars in mainland this year, up about 13 per cent or roughly in line with
gains of about 10 per cent that most analysts are expecting for mainland this
year. The company’s January car sales in mainland surged 53 per cent to 72,000
units.
Tourists and local villagers of Taishun
county in Zhejiang province enjoy a potluck dinner together for the Lantern
Festival on Feb 28, 2010. Staffers from the headquarters of the Great World
DSJJNS in Shanghai announced the potluck’s entry into the company’s record. The
annual potluck is said to originate in Zhangzhai village of Sankui county, where
people who moved from Heibei province in north China to avoid the scourge of war
more than 1,000 years ago kept the tradition of holding a feast together on the
Lantern Festival. It then evolved into a grand banquet, which the public was
invited to, and today it plays an important role in boosting tourism as well as
fellowship among the people. This year’s potluck attracted more than 70,000
people with 5,400 dinner tables in counties such as Sankui, Yayang and Xiyang.
Supermarket chains Wellcome and ParknShop have refused appeals to restrict
barbecue charcoal sales in stores across Hong Kong despite scientific research
indicating that doing so can save lives. Deaths by charcoal burning fell by more
than half when compared with the previous year - the equivalent of 11 lives - in
the Tuen Mun area when supermarkets there agreed to take part in a one-year
project during which charcoal bags were kept in locked store rooms and only
brought out on request by customers. By contrast, suicide by charcoal burning in
Yuen Long increased year on year by nearly half, from 16 cases to 23, during the
same period. Yuen Long was used as a control region in the study by the
University of Hong Kong Centre for Suicide Research and Prevention. The study,
to be published in an international science journal this week, appears to
confirm the researchers' belief that suicide by charcoal-burning - which claims
the lives of 130 to 140 people a year in Hong Kong - can be reduced
significantly if access to charcoal is restricted. Despite being given the study
in full in June and asked by researchers to act upon it, neither Wellcome nor
ParknShop would extend the scheme to other stores, citing operational reasons
and saying they do not have enough storage space in urban stores. ParknShop has
maintained the lock-up system for charcoal in the Tuen Mun area but will not
extend it to other areas, while Wellcome put charcoal back on supermarket
shelves in the district within months of the project ending. Sixteen Wellcome
stores and 12 ParknShop stores, as well as other shops and supermarkets, were
involved in the project. Dr Paul Yip Siu-fai, who headed it, said he was
grateful to the supermarkets for participating in the project but disappointed
at their reluctance to extend restrictions on charcoal sales to all Hong Kong
stores. "When we had the results, we were very excited and we told the two
supermarket chains," he said. "Essentially, they acknowledged the results but
they have not committed to continue the project or to extend it to other
districts." Yip said the two supermarket chains had been "very quiet" since
receiving the results eight months ago. "We have tried to organise a meeting
with them but they say they are very busy," he said. "One of their major
considerations is that Hong Kong supermarkets are already very small. If they
have to provide this extra storage it will be quite difficult and it will cause
inconvenience. "I can understand that it will create some inconvenience - but if
that inconvenience can help desperate people and stop them from killing
themselves, that is a price we ought to be prepared to pay." The study was done
between July 2006 and June 2007 before being analysed and submitted as a paper
to the British Journal of Psychiatry. "We have waited a very long time to
publish these results because we are very cautious about the reaction to this
and we wanted to have our findings endorsed by the international scientific
community first," Yip said. "This report is something that will benefit not just
Hong Kong but places elsewhere in the world, so I don't understand why we are
being so passive. "Charcoal burning [as a method of suicide] originated in Hong
Kong. Other countries learned it from us. Now we have a good method for dealing
with it and this should be seen as a blessing to other people." Asked why
Wellcome stores were not prepared to extend the restrictions on charcoal sales,
Annie Sin, communications director for the chain's owner, Dairy Farm, said the
initial study was carried out when rates of suicide by charcoal-burning were
higher than now. "The economic situation is different now. There are not so many
people committing suicide by charcoal burning. It has decreased a lot from the
peak," she said. "We are certainly happy to have been involved in the project
and pleased to see the numbers come down." Apart from helping with the research
project, she said, Wellcome put stickers on bags of charcoal bearing helpline
numbers for people who might be contemplating suicide. Teresa Pang, public
relations manager for ParknShop, said: "Packs of charcoal are quite big and
occupy quite a lot of space ... We have to take logistics into account. Space is
very limited in urban stores. If there is anything we can do for a good cause
for the community and for society, we will try our best to help. But we also
need to consider operational issues." Pang said the phenomenon of suicide was "a
very complex issue", of which charcoal burning was only a part. "People take
many, many different ways to kill themselves. They use charcoal. They use other
methods."
Patrons of bars in Tsim Sha Tsui can
ignore the smoking ban as long as no one complains to the Tobacco Control Office
- a loophole some bar owners say costs them business. Popular bars on Hong Kong
Island are sick of abiding by the smoking ban while competitors in other parts
of the city ignore it, and are demanding the government step in. The owners
claim that because they follow the law they are losing customers - while most
others ignore the ban and are escaping with their profits intact. Smoking
legislation in Hong Kong, unlike jurisdictions elsewhere in the world, punishes
smokers, not bars, for breaches. Rather than bar-owners facing losing their
licenses for failing to stop patrons from smoking, it is the individual smoker
who faces prosecution. This means hundreds of bars are allowing smoking to
continue as normal. The ban was first imposed at the start of 2007 for statutory
no-smoking areas. A blanket ban on smoking in all indoor public places was
introduced on July 1 last year. "The government has seen fit to pass a smoking
ban, yet do not maintain a level playing field, with only random enforcement,"
J. R. Robertson, managing director of El Grande Holdings, said. The company has
a number of bars and restaurants in the city, including the East End Brewery
bars in Causeway Bay and Quarry Bay, which have been badly affected by the
smoking ban. The bar in Causeway Bay has been the worst hit, with a 35 per cent
drop in profit. Robertson said the legislation had to change - which he thought
was unlikely - or the law must be enforced across the board. "Bars here have
experienced a huge downturn in business, directly related to the loss of the
smoking exemption, but other bars have benefited as they completely ignore the
smoking ban. It's the honest law-abiding people that are getting the brunt of
it." Kevin McBarron, owner of the Canny Man in Wan Chai, said he would have kept
his customers if they knew that they couldn't go around the corner to another
bar to smoke.
The memories are still fresh for
Nancy Kwan Ka-shen, even though it's 50 years since she stepped into Suzie
Wong's shoes. "How time flies," says the 70-year-old actress, speaking from her
home in Los Angeles. "I still remember walking onto the set and those wonderful
dresses we wore. "But after 50 years I can't believe people still watch or
remember the film. At the time I had no idea it would have any impact at all."
"The film", of course, is The World of Suzie Wong. To celebrate its anniversary,
Kwan is coming back to Hong Kong, her hometown, in March for the screening of a
documentary called To Whom It May Concern: Ka Shen's Journey, which charts a
young girl's journey from the playground of the Maryknoll Convent School in
Kowloon Tong, all the way to Hollywood. "It's great that I'm still here," says
Kwan. "I have certainly changed and Hong Kong has certainly changed over those
years - and thank God for that. I am all for changes. Of course I love Hong Kong
so much and it is always a thrill for me to go back." Kwan was studying at
London's Royal Ballet School when Paramount Pictures raised a then-massive
budget of US$3 million to make a film about the tale of a struggling Western
artist who falls for a Wan Chai prostitute. The World of Suzie Wong first
appeared in 1957 as a novel by English author Richard Mason, and then on stage
in John Patrick's Broadway adaptation of the book. Kwan was in Hong Kong on
holiday - her father was noted architect Kwan Wing Hong - when Paramount and
local film company Salon Films held a casting call for the film and, curious to
see some of her idols in action, she decided to take a look for herself. 
For many of the photographers who
flocked to Wing Lee Street yesterday, it was their first, and quite probably
last, visit. The street came to their attention because it was where the
low-budget Echoes of the Rainbow was filmed. The film won a Crystal Bear last
weekend at the Berlin International Film Festival. "I came here because I saw it
in the news that the movie was filmed here," said Christy Chan, who was among
the 50 people taking photos yesterday afternoon. Despite being one of the oldest
streets in Sheung Wan, the whole area has been targeted for redevelopment by the
Urban Renewal Authority. Echoes, directed by Alex Law Kai-yui and produced by
Mabel Cheung Yuen-ting, tells the story of a shoemaker's family through the eyes
of a child. Law said it was largely based on his childhood. Both Law and Cheung
have called for the government to save the street, but the Urban Renewal
Authority is pressing ahead with redevelopment plans. Chan said more effort
should be put into preserving old streets that told the story of Hong Kong.
Demolition was not always the only way to go when buildings were rundown.
Designer Pal Wong, who was snapping shots with a Rolleiflex, said he did not
know about the movie until it won the award but was looking forward to seeing it
when it was released in the city on March 11. "I have always taken photos around
this area and this street used to be quiet. But since the news of the movie came
out, more people have been coming here," he said. Wong said Hong Kong should
follow Macau and save old streets and buildings from redevelopment. But he does
not believe the city's preservation efforts will succeed since there is so much
money to be made from redevelopment. Daniel Patzold, who lives in nearby Bridges
Street, said the area was popular among production crews, wedding photographers
and amateur photographers. "Different production crews come here to shoot twice
a week," he said, adding that Shing Wong Street and Ladder Street were
particularly popular. Patzold, an architect, said it was sad the street had to
go because such streets elsewhere in the city had already been demolished. But
not everyone snapping away on Wing Lee Street was against redevelopment. Siu Sai
Wan physics teacher Jacky Tong Man-chung said there needed to be a balance
between preservation and redevelopment. Just because the streets and buildings
were old did not necessarily mean they were worth saving. "Changes to the city
brought about by business development cannot be avoided," he said. "Among the
people who are against redevelopment, it is difficult to distinguish between
those who just don't want that many skyscrapers in the city and those who want
to save a particular street." But Tong said redevelopment should give way to the
conservation of unique buildings, such as the clock tower in Tsim Sha Tsui. He
plans to bring his students to take one last look at the area before it is gone.
The Chief Judge of the High Court,
Geoffrey Ma Tao-li, is expected to be Hong Kong's next chief justice, only the
second since the handover. The Judicial Officers Recommendation Commission is
expected to present its choice to succeed Andrew Li Kwok-nang to the chief
executive within weeks. If the chief executive agrees, the appointment will go
to the Legislative Council and the process completed by the middle of the year.
The chairwoman of Legco's legal panel, Margaret Ng Ngoi-yee, believes the
process is "on course" and that a recommendation will be made next month. The
commission's deliberations are strictly confidential and a spokesman for the
judiciary said it had "nothing to add" to the information already provided to
Legco by the administration.
For many British expats, the solids have
just hit the air conditioning. A recent tax case has made it clear that if you
are a British national living in Hong Kong but have maintained connections with
Britain, you are at risk from the British taxman, who will be happy to charge
you 50 per cent tax on your world income. So Kung Hei Fat Choi from me but not
from him. The Court of Appeal has just rejected a British national's claim that
he did not owe British taxes because he lived in the Seychelles and handed him a
£30 million (HK$359 million) tax bill for the years 1993 to 2004. This decision
could affect thousands of British expats who have lived in Hong Kong for many
years but who spend time in Britain. All may be at risk from an increasingly
aggressive Revenue service (HMRC) whipped into a frenzy by a government
desperate for more tax to cut an increasing national deficit. Ignore this at
your peril. This case in question involved British businessman Robert
Gaines-Cooper, who had argued he did not owe taxes in Britain because he has
been a resident of the Seychelles since 1976. He pointed to the rule in HMRC's
own leaflet IR20 that defines a non-resident as one who spends less than 91 days
per year in Britain. The court said a taxpayer must show a "distinct break" from
social and family ties to Britain and that spending all but 91 days outside the
country is not sufficient to establish non-resident status. This is not a change
in stance, just a reinforcement of the existing rules. Those rules have been
widely misinterpreted. There never has been a rule which says that the number of
days spent in Britain is the absolute test of residency. Most countries operate
similar systems. If you spend a certain number of days there, you must
necessarily be resident - even if already tax resident elsewhere as well. If you
don't spend the requisite number of days, you may still be resident because that
country is the centre of your economic or social life, or place of closest
connection. It's this latter point which has often been missed. The court
confirmed that HMRC were bound by the terms of IR20 but there was an implied
condition that to be treated as non-resident, there must be a distinct break
with Britain and a severing of all social and family ties. Gaines-Cooper had a
house in Henley where his wife and son lived and where he kept a valuable
collection of art and guns. His son was at school in Britain. He had an British
mobile phone, his will was drawn up under English law and he regularly attended
Ascot racecourse. Therefore he could be treated as a British resident even after
his ostensible departure in 1976. Apart from the Ascot bit, many British
nationals living in Hong Kong are in the same boat, which may now reveal itself
to be sailing in a cesspit and holed below the waterline. The court deemed that
the correct interpretation of tax residency status turned on whether England had
remained the taxpayer's "centre of gravity of his life and interests" and that
the 91-day rule could not establish non-residency status on its own, rather it
was "important only to establish whether non-resident status, once acquired, has
been lost". In other words, if you spend more than 91 days in Britain, you are
definitely resident. If you spend less than 91 days, you may not be resident but
must look at other factors, too. The court agreed. Gaines-Cooper plans to appeal
the case to the Supreme Court. His counsel told the BBC that HMRC was "playing
games" and mischievously reinterpreting its own guidance, turning it "from a
sensible, practical, guide into something meaningless and, which is worse, a
devious trap". HMRC may now look to crack down on more expats. It has launched a
sustained attack on people who have used residence and domicile rules to reduce
their tax bills. Last year a HMRC team was established to investigate some of
Britain's richest individuals, including expats. It follows the enactment of the
£30,000 non-domicile levy, introduction of the 50 per cent top income tax rate
and the super-tax on the City of London bonus pool. HMRC has said it is "looking
at residency and domicile more carefully" and is "committed to ensuring all
those resident in Britain pay the tax due and this judgment will aid that
effort". The IR20 guidance on residency was replaced last year with a new
booklet called HMRC6. This emphasises the importance of pattern of lifestyle in
determining UK residency and states that just because you leave the UK to live
or work abroad, you are not necessarily non-UK-resident for tax purposes. So
what to do? You can change your lifestyle to remove the tax danger but for many,
that will neither be desirable or feasible. Selling the British home and taking
your children out of school in Britain may be a very unattractive option. The
alternative is to plan so that if you are caught out, your exposure to British
tax will be limited. Without proper planning, you may have to pay British tax at
up to 50 per cent on each and every source of worldwide income. So review your
arrangements. They have probably been made on the assumption that you are not a
British tax resident. That assumption may be incorrect. Or at least HMRC may not
agree.
The report quoted the new government
data as saying that China held 894.8 billion dollars in Treasury securities at
the end of December, more than which had been previously estimated.
Job seekers crowd to visit booths of
companies at a job fair in Shenyang, Liaoning province February 27, 2010. China
is still facing serious challenges in employment, though labor shortage has been
found in booming cities in China's coastal areas recently, said Premier Wen
Jiabao on Saturday during an online chat with netizens.
A strategic investment by China Mobile (SEHK:
0941, announcements, news) in a mainland bank may spur faster adoption of its
nascent mobile payment system nationwide ahead of its mainland rivals, analysts
say. The world's largest wireless network operator, with 522.28 million
subscribers as of December, is reportedly in a deal to buy a significant
shareholding in Shanghai Pudong Development Bank. The mid-sized bank, which is
part-owned by Citigroup, expected to raise about 40 billion yuan (HK$45.42
billion) by selling a roughly 20 per cent strategic stake to China Mobile, two
brokerages said. The deal may speed the adoption of China Mobile's mobile
payment system, which is based on a local standard called RF-SIM, among bank
customers. A Hong Kong-based spokeswoman for the company declined to comment.
Pudong Bank also did not comment. In a report yesterday, Guotai Junan Securities
said Pudong Bank would sell about 2.2 billion shares to China Mobile at no less
than 17.82 yuan each. It did not specify whether the stake was being sold to
Hong Kong-listed China Mobile or to its parent company in Beijing. It is common
for Chinese non-financial firms to invest in banks. Another brokerage, China
International Capital Corp, also said in an e-mail to clients on Thursday that
China Mobile would buy up to a 20 per cent strategic stake in Pudong Bank for as
much as 40 billion yuan. Listed companies on the mainland sometimes brief
analysts about major developments ahead of official announcements, but after
share trading suspensions. Shares in Shanghai-listed Pudong Bank were suspended
on Thursday pending what the bank said was an announcement of plans to introduce
strategic investors. Its shares remained suspended yesterday. "China Mobile may
be trying to buy some legitimacy for its mobile payment system," said Michael
Clendenin, managing director at research and consultancy firm RedTech Advisors
(China). "I've heard that banks in China aren't happy with the RF-SIM mobile
payment technology that China Mobile is championing, so the operator may need
this type of investment in Shanghai Pudong Development Bank and smooth the way
to spreading its mobile payment system throughout the country." Subscribers can
start using the payment system by changing their SIM cards, not the phone. "It
rivals the global Near Field Communication standard that China Unicom (SEHK:
0762) is using and that just about all banks have standardised on," he said.
Consumers use mobile payment systems to remotely access and securely pay for
information and services with their cellphones. "Mobile payment is slowly
gaining traction on the mainland, with systems already in place in the top-tier
cities for subways, supermarkets, convenience stores and cafes," Clendenin said.
"But few technology roll-outs come without a hitch, and China is no exception as
network operators are using different technologies."
Chinese
Premier Wen Jiabao arrives at the Xinhua News Agency after finishing online
talks with netizens jonitly held by the portals: 
Lantern Festival celebrated home
and abroad.
Colorful lanterns are seen in
Xining, west China's Qinghai Province, Feb. 26, 2010, two days before the
Chinese Lantern Festival which marks the end of the Spring Festivals. 
Hong Kong may be on the verge
of importing labor for the first time in more than a decade to bolster the
ageing construction workforce, industry figures believe. They point to a string
of multibillion-dollar projects about to take off. The possibility emerged
yesterday as the government outlined a package of measures aimed at attracting
new blood to the industry with subsidies and higher pay. A government minister
did not rule out importing labor if they did not succeed. Presenting the
measures, Secretary for Development Carrie Lam Cheng Yuet-ngor acknowledged the
government faced an uphill battle to attract young workers to the industry.
"More than a third of the workers are over 50 whilst only six per cent are under
25," she said. The minister said there was no immediate need to consider
importing labor but the situation might change. "We are spending so much money
on these infrastructure projects we do not want to see one day that we need to
import labor." Lam said that, as a politically accountable official, she knew
the issue was highly contentious. "I really hope ... we do not have to
contemplate [it] at all," she said. When Hong Kong imported foreign labor for a
number of industries, including garment factories, hotels and construction in
the late 1980s and early 1990s, it was hotly contested even though the overall
unemployment rate was below 2 per cent at the time. It is now 4.9 per cent. The
construction workers' union said importing labor was not an option. "There is no
room for any negotiation on that issue at all. We are totally against it," the
president of the Construction Industry Employees General Union, Chow Luen-kiu,
said. But a member of the Hong Kong Construction Association who did not want to
be named said even though the sector did not want to import labor it might be
forced to do so to build the government's 10 planned infrastructure projects,
including the Hong Kong-Zhuhai-Macau Bridge, the cross-border express railway
and the Kai Tak cruise terminal. "We really find difficulty in attracting new
people to the trade. And we will face furious competition on labor if projects
in Macau resume," the member said, referring to big casino and resort works that
were stalled by the financial crisis, leading to thousands of lay-offs. Key
industry players agreed. Colin Jesse, Hong Kong and China managing director of
infrastructure consultancy Evans & Peck, said that if the 10 infrastructure
projects went ahead as planned, "it is going to lead to a requirement for
foreign labor". "The average age of a carpenter in Hong Kong is 55," Jesse said.
"There has been little or no new blood in the industry in the past 15 years.
When this incredible new demand starts, there is simply not going to be
sufficient experienced human resources available." "Every construction company
in Hong Kong will face a shortage of labor in bidding for the 10 major
infrastructure projects. There is a problem in getting skilled labor for them,"
said Yam Kong, general manager of HCCG China Holdings, a subsidiary of Hong
Kong-listed Hsin Chong Construction Group. In the next financial year alone, the
government has set aside nearly HK$50 billion for projects it says will employ
62,500 people. Lam said the shortage might not be an overall one but perhaps a
shortage of skills in certain areas and the government was trying to fill that
gap. "What we are now doing is trying to anticipate that, as a result of a surge
in public works as well as private sector projects, there may be a shortfall,"
she said. In Wednesday's budget, HK$100 million was earmarked to support
Construction Industry Council incentives to attract young people to the industry
and to improve the practices of the trade. At present, trainees taking the
council's short courses are entitled to a daily training allowance of HK$90,
equivalent to about HK$2,000 a month, during their 12 to 13 weeks of training.
"We will increase the training allowance to an average of HK$5,000 per month,"
Mak Chai-kwong, permanent secretary for development, said yesterday. Details
have yet to be confirmed but Mak said the allowance would be given over three
years to 3,000 trainees in occupations where recruitment was difficult,
including bar-benders and fixers, shot firers, plumbers and metal workers. The
government would encourage employers to hire graduates from the trainee program
and pay them a starting salary of at least HK$8,000 per month, rising to at
least HK$10,000 after six months, he said. Conrad Wong Tin-cheung, president of
the Hong Kong Construction Association, said employers supported the incentives.
"We really face a problem attracting new blood," he said. 
Former TVB actress Katie Chan outside the
Family Court yesterday. She has been married to Michael Hotung, nephew of tycoon
Stanley Ho, for about 20 years. Former TVB (SEHK: 0511) actress Katie Chan Fok-sang
was mobbed by photographers and journalists yesterday when she turned up for the
first hearing at the Family Court since she and her estranged husband, Michael
Ho-tung, announced in December that they were seeking a divorce.
The government may hand Wan Chai
Police Station to the private sector for 50 years for conversion into a hotel,
but critics say the lease should be carefully drafted so the public will still
have some access to the site. The Development Bureau announced on Thursday that
the grade-two historic site in Gloucester Road will be preserved and rezoned for
hotel use and sold through an open tender later this year. A person familiar
with the project said yesterday the bureau was considering tendering out the
site for 50 years, the same as the Murray Building, a government office block in
Central, which will also be converted into a hotel through tender. The person
said the bureau opted for a commercial tender instead of leasing the 1,950
square meter site to non-profit organizations to reduce the cost to taxpayers.
The police station site will be tied in with police quarters behind it in Jaffe
Road, which will be demolished to allow for developments to make the project
commercially viable. The police station, built in 1932, was on the edge of the
harbor until reclamation in 1976. Now the only historic structure remaining
along the Wan Chai coastline, the four-storey building features a facade with
verandahs on every floor. A gun room, a dormitory for Chinese detectives,
chimney stacks, fireplaces, arch doorways and detention cells have remained
intact. The hotel operator would be required to preserve some old features, set
up an exhibition hall and organize guided tours for the public. The lease period
for this project would be the same as the former marine police quarters in Tsim
Sha Tsui. The government has been criticised for having loose control over this
monument site, which was leased to a subsidiary of Cheung Kong (Holdings) (SEHK:
0001) for 50 years in 2003 to run a hotel and mall. The hotel operator was
recently found to have stopped a member of the Antiquities Advisory Board from
taking photographs on the site, saying the area was private. Officials say they
have "learnt a lesson" and would avoid handing over a public heritage site to a
private company for such a long period. But the person familiar with the project
said it should not be compared with the former marine police quarters, also
known as 1881 Heritage. "It's not fair because 1881 Heritage was conceived,
planned and implemented as a tourism project." Susanna Chiu Lai-kuen, the member
who was barred from taking photos, said the terms of the lease for the Wan Chai
site should be clearly drawn. "The operator has to make clear what areas are
accessible to the public and that historic features are clearly marked rather
than hidden." She suggested a lease of 10 to 20 years to guarantee cost
recovery. After that it would be subject to renewal depending on performance.
Eric Lee Chung-ming, a conservation architect, said the new building on the
police quarters site should be designed so as not to steal the limelight from
the heritage architecture.
While a more expensive yuan would
eat into the profits of Hong Kong exporters in the Pearl River Delta, it would
please politicians and importers in the United States and Europe. A study of how
the mainland's export sector would be affected by an appreciation of the yuan
has revealed that Hong Kong exporters fear that a stronger currency will
jeopardize their recovery. The Ministry of Commerce and Ministry of Industry and
Information Technology recently conducted a so-called stress test. It asked
labor-intensive exporters in the textile, garment, toy and shoe industries how a
stronger yuan would affect their profits, according to the 21st Century Business
Herald, an official newspaper. Exporters were also asked about their ability to
pass on the financial impact to their customers. Some economists said the study
would give Beijing a benchmark for currency policies, but they did not think it
marked the resumption of yuan appreciation. "The test is not a surprise," said
Tao Dong, Credit Suisse chief regional economist, excluding Japan. "However, I
doubt whether it can reveal the true damage of a stronger yuan on the export
sector and the labor market." Tao said the mainland government would have to
tighten monetary policies slightly and allow the yuan to appreciate to prevent
the economy from overheating. But it risked flirting with currency speculators,
he said. Tao expected the value of the yuan would strengthen by as much as 5 per
cent against the US dollar in the second half. Beijing allowed the yuan to climb
only 0.1 per cent to 6.82 last year at a time when mainland exports were hit
hardest by the global downturn. However, the currency rose 16 per cent in the
three years to 2008. A more expensive yuan would harm Hong Kong exporters in the
Pearl River Delta, shaving off profits, but it would please politicians and
importers in the US and Europe. International pressure on Beijing to lift the
yuan intensified yesterday. Fifteen senators in Washington criticised mainland
officials for undervaluing the currency to give exporters an unfair edge and for
failing to honor a promise to allow it to appreciate. The commerce ministry said
it would keep the exchange rate stable. Hong Kong Small and Medium Enterprises
Association chairman Danny Lau Tat-pong said a stable yuan regime would offer
certainty for business and financial planning. Lau, whose factory in Dongguan
produces curtain walls for Hong Kong buildings, said he would have to charge
customers an extra 7 per cent for every 1 per cent rise in the yuan against the
US dollar, to offset the impact. But he said customers would not readily accept
higher prices and he would likely have to absorb the impact. "Yuan appreciation
is extremely damaging to the export sector and directly eats into exporters'
bottom lines," he said. "Smaller firms operating on narrow margins are
particularly vulnerable to the damaging impact." Lau noted that yuan
appreciation would aggravate what had already become a difficult operating
environment, beset by chronic labor shortages, soaring raw material prices and
smaller overseas orders from importers demanding quicker turnarounds. Iris Lam,
business promotion director for shoe exporter Onlen Fairyland (Hong Kong), said
manufacturers could no longer rely on overseas orders and should spread currency
risk by selling products in the domestic market. "As the yuan is going to
appreciate anyway and the US economy is still shaky, why not take the chance to
expand into the mainland consumer market?" she said.
Chinese high-rollers throw
Las Vegas lifeline - What happens in Vegas may indeed stay in Vegas, but the
fortunes of America's Sin City are becoming increasingly dependent on what
happens in mainland China. The Las Vegas Strip finally showed signs of a
turnaround late last year, snapping an unprecedented 22-month losing streak that
saw casino revenues decline to their 2004 levels despite the addition of tens of
thousands of new hotel rooms in the US gaming capital. But a closer look at the
numbers shows that the tentative recovery has so far been one-dimensional, and
it appears to be coming from an unexpected source: China. High-rolling baccarat
players flown in from the mainland, which is awash in cash, appear to have
single-handedly driven the recent turnaround in Vegas. Las Vegas Strip baccarat
revenue - considered by analysts to be a proxy measure for high-stakes Chinese
play - rose 26.5 per cent last year and 100 per cent in the fourth quarter. By
contrast, revenue from Americans' beloved slot machines and all other casino
games contracted 14.6 per cent last year and 11 per cent in the December
quarter. That non-baccarat downtrend continues, as the strip's usual core
clientele of domestic holidaymakers and corporate conventioneers are still
reeling from the effects of the financial crisis. US unemployment remains high,
many business travel budgets are still tight and consumer spending is unlikely
to return ton its credit-fuelled binge levels any time soon. "Baccarat gains are
likely a function of inbound play from China, where high-rollers have enjoyed
the benefit of material real estate and stock market gains in 2009," says Bill
Lerner, a Las Vegas-based analyst at Union Gaming Group. He said several major
high-end strip casinos were prompted to increase betting limits by 30 per cent,
to US$300,000 per hand, during this month's Lunar New Year holiday. Vegas has
been courting high-rollers from Asia for at least the past three decades,
particularly during Lunar New Year, but since the opening of Macau's casino
market to US operators such as Wynn Resorts, Las Vegas Sands and MGM Mirage, the
competition for China's gambling dollars on both sides of the Pacific Ocean has
increased greatly. Earlier this month, holiday visitors driving down the Las
Vegas Strip were greeted by streetside LED marquee signs in front of resorts
that flashed Chinese language greetings for the Year of the Tiger. Interiors of
major strip resorts like the Bellagio, Venetian and Caesars Palace were bedecked
with elaborate gardens, citrus trees and bamboo groves, according to the Las
Vegas Sun. Red and gold lanterns abounded, while a statue of the God of Fortune
as well as Chinese language scrolls wished New Year's blessings on punters. Lion
dances were almost as common as showgirls, restaurants offered special holiday
menus at their Asian restaurants and Hong Kong Cantopop star Sam Hui gave a
concert at one of MGM's casinos. MGM, the largest private employer in Las Vegas
and owner of 12 casino resorts in the city, had its "best year ever last year"
in terms of business from international high-rollers, according to chairman and
chief executive Jim Murren. "That was driven mostly by our customers in Asia,"
Murren told investors last week on a conference call. "We know we've been
outperforming the strip here in the baccarat numbers, and we think we can
continue to do that." But if Vegas appears to have been riding on the dragon's
back out of its economic doldrums, it may be time to check that bet. Analysts
are beginning to worry that Beijing's recent moves to sop up liquidity on the
mainland could throw a wet blanket on the strip's baccarat boom. "Without the
benefit of baccarat, Las Vegas Strip gaming revenues would have been notably
weaker and we're concerned about the strength of the source," Lerner wrote this
week in a research note. "We are concerned about the impact that monetary policy
changes in China will indirectly have on this Las Vegas play, especially if
there is a lag in recovery for Vegas' other segments." Twice in a month, the
mainland's central bank has raised the ratio of cash to deposits that lenders
must keep on reserve in an attempt to cool lending. Analysts are divided over
when Beijing will begin hiking broader interest rates, but most expect increases
to begin some time within the next nine months. There are growing concerns that
there will be knock-on effects for the ability of Chinese VIP junket agents and
the high-rollers they solicit to gain access to casino credit and repay gambling
debts. Mainland VIP players often rely on credit to fuel overseas gambling
sessions. However, others remain unfazed. Sands China, the Hong Kong-listed
Macau unit of Las Vegas Sands, has been working to reposition itself away from
the credit-dependent VIP segment and focus instead on the mass market, which
tends to consist of relative low-rollers who gamble with their own cash. "There
is a lot of discussion going on right now in terms of the liquidity and the
excess thereof in the China marketplace and the impact on Macau when and if they
start to really restrict the additional credit," Sands China president and chief
executive Steve Jacobs said last week. "That will have a far more pronounced
impact on the VIP business and I think on the junket business than it will for
us, primarily because the majority of our business is mass oriented."
China trade boon for Australia -
Australian business investment rebounded in the fourth quarter, a sign the
economy is strengthening enough for the central bank to raise interest rates
next week for the fourth time in six months. Capital spending advanced 5.5
percent from the previous quarter, when it fell a revised 5.2 percent, the
Bureau of Statistics said in Sydney Thursday. The median estimate of 19
economists surveyed by Bloomberg News was for a 2 percent gain. Rising Chinese
demand for Australia's iron ore, coal and gas is fueling what central bank
Deputy Governor Ric Battellino this week described as a record boom in mining
investment that will fuel economic growth. Falling unemployment and a jump in
consumer confidence, helped by Prime Minister Kevin Rudd's A$42 billion ($38
billion) stimulus package, were among reasons policymakers boosted borrowing
costs three times last quarter. "These are good signs that businesses are
certainly looking at the economic recovery confidently and dusting off those
mothballed investment projects," said Savanth Sebastian, an economist at
Commonwealth Bank of Australia in Sydney. Investment plans of businesses are at
the highest level in five years, "and there are very good signs they'll follow
through on those plans, which is heartening for the Reserve Bank", said
Sebastian, who predicts a quarter-point increase in the benchmark interest rate
to 4 percent next week. The Australian dollar traded at 89.35 cents at noon in
Sydney from 89.36 cents just before the report was released. The two-year
government bond yield fell 1 basis point to 4.66 percent. A basis point is 0.01
percentage point. Companies forecast investment of A$110.6 billion in the year
ending June 30, which is 6.7 percent more than they estimated three months
earlier. They plan A$101.4 billion of new investment in the year ending June 30,
2011. BHP Billiton Ltd, the world's largest mining company, said this month that
it will increase capital spending on iron-ore mines and oil fields by 63 percent
next year to $20.8 billion from $12.8 billion this year. 
Visitors light
paper lanterns forming the shape of heart in Window of World Park, Changsha of
central China's Hunan province February 26, 2010. China's Lantern Festival falls
on Sunday.
Manulife (International), the regional arm of Manulife Financial (0945), is
looking to sell yuan-denominated policies, but there is not yet a timetable and
it is subject to the regulators' approval. Manulife (International) Hong Kong
chief executive Michael Huddart said the company hopes to tap the yuan-related
business through the Qualified Foreign Institutional Investor license, but the
size and capital involved will be modest. Commenting on rival Zurich Life and
AXA introducing the franchise model to expand their distribution network in Hong
Kong, Huddart said the model has had a sparse impact on the local insurance
market. Manulife plans to boost agent manpower to 5,000 this year from the 4,443
agents as at December 31. Manulife owns 17 percent of Hong Kong's Mandatory
Provident Fund market, with assets of HK$52.55 billion. The Hong Kong insurer
posted a record net income of HK$3.05 billion last year, 53 percent higher than
2008. Funds under management surged 40 percent to HK$165 billion last year due
to the rebound in stock markets.
Jacky Cheung introduces Crossing
Hennessy, a romantic comedy in which he stars that is one of two local films
opening the film festival. With the budget having put funding for arts groups on
a surer footing, lovers of culture can expect to see more world-class shows in
the coming few years leading up to the launch of the West Kowloon Cultural
District. The arts community welcomed the additional funding, news of which came
on the eve of two of the city's cultural high points: the Hong Kong Arts
Festival, which began yesterday, and the Hong Kong International Film Festival,
the line-up for which was announced yesterday. They had been fearing a cut in
funding this year while the government reviews its criteria for funding the
arts. Representatives of some of the nine major arts groups subsidised by the
government said the promise of an additional HK$486 million over five years - to
allow groups and artists to develop signature performances - would allow them to
plan over a longer term and secure for Hong Kong big-name performers who need
booking a few years in advance. The money is in addition to annual funding which
in the 2009-10 financial year was expected to total HK$272.5 million. Although
the government has yet to say how the additional funds will be split between the
groups, Chan Kin-bun, executive director of the Hong Kong Repertory Theatre,
says it will allow for longer-term planning. "Now we can make plans for our
development in the next five years," Chan said. "Some artists, such as famous
musicians or soloists, you have to book them three to four years in advance. If
we want to invite world-class theatre directors to work with us, we need to make
arrangements two to three years in advance. We are more confident about doing
this now with the extra funding." Chan said the money would also help groups
keep artists in full-time work, which would help the development of signature
performances. Katy Cheng, marketing director of the Arts Festival, said it was
normal to book performances featuring top artists three to four years in
advance. The additional funding would help with planning of the festival and
foster the the growth of the whole sector. As well as big groups, smaller ones
and independent artists would benefit, she said. Cheng said that up to
yesterday, 90 per cent of the 93,000 tickets for the festival's 116 performances
had been sold, up from 88 per cent at the same point last year. Half the
performances have sold out. Meanwhile, organisers of the Hong Kong International
Film Festival announced Roman Polanski's latest film, The Ghost Writer, which
won the Silver Bear for best director at the Berlin International Film Festival
this week, will be added to this year's line-up of films, which includes two by
Hong Kong women directors that will open the festival. They are Ivy Ho Pik-man's
Crossing Hennessy and Clara Law's Like a Dream. The festival will feature 70
local films, 30 per cent more than last year. It will also feature a 12-film
retrospective of the work of Greek director, and Palme d'Or winner at the Cannes
festival, Theo Angelopoulos. The festival runs from March 21 to April 6. Advance
online and postal booking opens on February 28. 
Secretary for Development Carrie Lam Cheng
Yuet-ngor said on Friday the government would provide new subsidies for training
courses to attract young workers to the construction industry. Lam said each
person taking the courses would receive a monthly subsidy of HK$5,000. On
finishing a course, a job with minimum salary of HK$8,000 per month would be
guaranteed for six months, she said. If trainees perform well, they can expected
to receive a minimum salary of HK$10,000 per month for a six month period. The
Development Bureau estimated the subsidies could attract 6,000 workers to the
training courses within three years. Lam said that government’s HK$49.6-billion
investment in infrastructure could create 62,500 jobs this financial year. “This
would boost the confidence of the construction industry,” she added. Among the
62,500 construction jobs, 6,600 will require professional skills and the
remaining 55,900 are for general workers. This is an overall increase of 15,400
jobs compared with last year. The unemployment rate for the industry in January
was 7.4 per cent, a year-on-year decreased of 5.3 per cent from last January
when it stood at 12.7 per cent. The increase in construction jobs is mainly due
to new infrastructure projects. They include the Kai Tak Cruise Terminal
Building, the Hong Kong-Zhuhai-Macau Bridge boundary crossing facilities and
other projects. Permanent Secretary for Development Mak Chai-kwong said the
industry still faced challenges. “There is an ageing problem and a misallocation
of human resources in the construction industry,” he said. There is also a need
for skilled workers to work on these new infrastructure projects. Among 278,100
registered workers, 60 per cent are registered as unskilled, Mak noted. Lam said
providing uniforms for construction workers and improving the work environment
might also attract young people. “We will hire local workers. We do not want to
import external workers if possible,” she said. Construction Industry Council
chairman Lee Shing-lee said he welcomed the government’s new measures.
The developer of
a low density housing project in Yuen Long is under fire again for filling in
part of three fish ponds that are zoned as wetland conservation areas. The
ponds, outside the boundary of the Wo Shang Wai development, have been filled
with soil in what Henderson Land (SEHK: 0012) calls a "temporary solution" to
allow hoardings to be put up around the site to protect the ecology. But the
work worried a resident in Palm Spring, who accuses the developer of not taking
steps to minimise disturbance. Up to 50 rare black-faced spoonbills regularly
visited the ponds earlier this month. Nine days ago three excavators and eight
trucks were working near one of the ponds, while a flock of birds, including
spoonbills, were feeding at another pond. The resident, Daphne Ma Ngar-yin, has
filed a complaint with the Environmental Protection Department in which she
questions whether the filling-in work is legal and whether planning rules had
been breached. She has previously complained of construction noise frightening
away the birds. Under town planning laws, approval is needed in advance to fill
fish ponds. In some cases such work is strictly forbidden. A spokeswoman for the
Planning Department said yesterday it was still gathering details about the
case. Ma said: "I am concerned that this filling-in work has caused a direct
reduction in the wetland conservation area, which is part of the important
wetland habitat of the Mai Po reserve for migratory birds." Ma said the
department should say whether penalties could be imposed on developers who
damage such sites and the developer should be more transparent about its work
and communicate with residents. A spokeswoman for the developer said it had to
fill part of the ponds to consolidate the banks so that the hoardings could be
firmly built. "This is rather an unforeseeable move that we have to take
temporarily for the construction of the hoardings. Once the hoardings are built,
we will dig out the [filling] material," she said. The hoardings are part of the
requirements of an environmental impact assessment for the project and have to
be in place before actual construction starts next month. More than 170 low-rise
houses and 180 duplex units in four-storey buildings will be built on the
21-hectare site. About 4.7 hectares of land will be restored to wetland
afterwards. The spokeswoman said the developer had an "understanding" with the
pond owners and the environment department was "aware of" the temporary move.
However, she could not say if a formal application for filling the ponds had
been lodged with the Planning Department. To ease concerns about the threatened
spoonbills, she said they had hired an ecological consultant to monitor the
birds. "If they have found the birds were around and the work might impact them,
the contractor might be advised to stop the work or move their machinery farther
away from the work," she said. The spokeswoman stressed the spoonbills were only
attracted to the ponds because the water level had been lowered and fish were
exposed to the birds. She said it was not usually a hot spot for the birds to
winter. A spokesman for the environment department did not directly comment on
the complaint. He only said they had started to investigate the complaint and
would follow up with the developer. He said the developer was required to meet
conditions laid down in the environmental permit issued it in September 2008,
including setting up a wetland restoration area before houses were built and
minimizing disturbances to the ecology by erecting hoardings and barriers.
Former Macau chief executive Edmund Ho Hau-wah looks likely to follow in Tung
Chee-hwa's footsteps. It has been rumored widely that Ho, 55, who ran Macau
between December 1999 and 2009, will become a vice chairman of the National
Committee of the Chinese People's Political Consultative Conference. Zhao
Qizheng, spokesman for the National Committee of the CPPCC, refused to comment
in Beijing on the possible appointment, only saying suitable candidates must be
influential and representative. Chan Wing-kee, a standing committee member of
the CPPCC, said he has not heard anything concrete about the appointment, but he
personally believes Ho would be a suitable candidate and worthy of support. Chan
said Ho had contributed a lot to Macau during the last 10 years, making the
former Portuguese enclave an international city and bringing wealth to its
people. He had earlier praised Ho's success in implementing the legislation on
Article 23 of the Basic Law. Currently, Ma Man-kei is the only Macau member who
is a vice chairman of the national committee. But Chan said Hong Kong used to
have two vice chairmen at the same time, which created no issue. The CPPCC
standing committee members are expected to discuss whether they will have new
delegates during a meeting from today until Sunday. A list of new delegates
nationwide will be endorsed by the standing committee early next month. If the
former Macau CE is on the list, it will bring him a step closer to becoming vice
chairman of the top advisory body. Former Hong Kong CE Tung Chee- hwa's name was
listed in March 2005, shortly before his appointment as vice chairman was
confirmed. But his appointment was followed by his resignation as CE on March
10, 2005, citing health problems. 
Macau's famous Ho clan will take center stage today when the divorce tussle
between Michael Hotung and former TVB actress Katie Chan Fok-sang goes to court.
Hotung is the son of Winnie Ho Yuen-ki, the estranged sister of gaming tycoon
Stanley Ho Hung-sun. Chan and Hotung are expected to appear at the family court
in Wan Chai, but have the right to be represented by their lawyers without
showing up. The case is scheduled to be heard privately before Judge Chan Chan-kok
this afternoon. Custody of the couple's 15-year-old daughter and 12-year-old
son, as well as alimony payments, are believed to be at the center of their
legal argument. Chan filed for divorce last year in a bid to end her 20-year
marriage to Hotung, citing his "unreasonable behavior." The news shocked Hong
Kong as the pair appeared to be a perfect couple in public. In December, Chan
held a press conference and revealed that Hotung's lawyer had demanded she
return three diamond rings or face a lawsuit. But Chan said she would rather go
to court, if only to find out why Hotung wants the rings back. The former
actress also said she doesn't know where her mother-in-law is, because Hotung
would not allow her to meet Winnie Ho. "I tried to see her but Michael wouldn't
allow it. He even told the maids not to pass my phone calls to my
mother-in-law," she said. Appearing on TVB's My Guest last month, Chan said
ending her marriage would be a relief. She said her relationship was not as
happy as it seemed, as the family of four was not living together. Their
children are living with their grandmother, but their father rarely visits, and
neither she nor the children have his mobile number, she said. Chan added she
has no income after separating from Hotung and has to use her savings to cover
daily expenses for herself and the children. Asked by TVB general manager
Stephen Chan Chi-wan during the interview if she hates Hotung, Chan replied: "I
have to thank Michael - he helped me end this 20-year marriage." 
Wynn Macau said on Friday that the
extension of its current casino resort will open in April, helping it to
increase its market share to 15 per cent. Shares in Wynn Macau, a unit of Wynn
Resorts, soared to a one-month high, a day after the casino operator posted
quarterly results that beat analysts’ expectations, boosted by a strong economy
and strict cost controls. The casino operator, whose rivals include Sands China
and Melco Crown Entertainment, reported a near doubling of fourth-quarter
earnings before interest, taxes, depreciation and amortisation (EBITDA) on
Thursday to US$142 million. The figure was 4 per cent ahead of JPMorgan’s
expectations. Shares in Wynn Macau soared 5.4 per cent to a more than one-month
high and ended the day up 1.7 per cent. “The fourth-quarter results are very
solid,” said Billy Ng, an analyst with JPMorgan. “The outlook should be good.
They are the only ones expanding and putting in capacity in 2010. They should
gain some market share.” “The bigger question is how the overall market is
doing, with the tightening of liquidity from China. There will be some impact,
but it will be limited.” Wynn Macau reiterated that the extension of its current
casino resort in Macau, “Encore,” will open in April. The project is expected to
cost about US$600 million, the firm said. Ng said he expects Wynn Macau’s market
share to grow to 15 per cent after the extension’s opening, from its current
12-13 per cent share now. In a separate statement on Friday, Wynn Macau said it
expects its profit for last year to hit HK$2.07 billion, exceeding its original
forecast of HK$1.47 billion but largely in line with analysts’ consensus
expectations of HK$2.12 billion according to Thomson Reuters I/B/E/S. Last week,
Las Vegas Sands said the firm has done well in Macau – where earnings before
interest, taxes, depreciation, amortisation and rent (EBITDAR) rose a “whopping”
48 per cent in the fourth quarter – by focusing on mass gaming, hotel and retail
businesses, while controlling costs. Sands China is due to report its
fourth-quarter results on March 1.
China National Petroleum Corp (CNPC),
the country's largest oil and gas producer, plans to build 10 natural gas
storage facilities between 2011 and 2015 to stockpile the fuel in the face of
rising demand, said a company executive. The 10 storage sites will be able to
store 22.4 billion cu m of natural gas, the 21st Century Business Herald
reported yesterday, quoting CNPC Vice-President Liao Yongyuan. The facilities
will be located in regions which have rich gas sources and major consuming
areas, including the Xinjiang Uygur autonomous region and northern China. The
storage facility construction project, part of the government's 12th Five-Year
Plan (2011-2015), will account for 8 to 10 percent of the company's total
natural gas sales volume, said Liao. At present, the figure is only 3 percent,
he added. CNPC President Jiang Jiemin said that the company had decided to build
12 billion cu m of gas storage in its Changqing oil and gas field, which is
located in Erdos in Inner Mongolia. The facility will be China's largest
gas-storage facility. In order to meet rapidly rising demand for natural gas,
China should speed up its construction of storage facilities to better prepare
for potential shortages, said analysts. The country should plan more gas storage
in eastern regions, as they are high-consumption areas, they said. Compared with
Western countries, China started gas storage efforts late. Now global volume of
gas storage facilities accounts for around 10 percent of total gas consumption.
"There is a lot of room for us to improve," said Yang Lei, an official with the
oil and gas department under the National Energy Administration (NEA). Compared
with the construction of crude oil storage, which has drawn much attention in
recent years, construction of natural gas storage should be treated with equal
importance, as the consumption of natural gas will see faster growth than other
fossil fuels, said analysts. The country's natural gas market is promising, as
the use of the clean energy fits well with China's efforts to build an
environmentally friendly economy, said Zhuang Rongjin, director of the natural
gas department of the Guangdong Oil and Gas Association. As a clean energy
source, natural gas now accounts for only about 3 percent of China's total
energy consumption. The government plans to increase the use of natural gas to 5
percent of total energy consumption in 2010. According to a report by the
International Energy Agency (IEA), China may be dependent on imports for more
than one-third of its total natural gas consumption by 2030. In 2004, China
completed first west-east pipeline. The project exclusively uses domestically
produced natural gas. China is also building the second west-east gas pipeline.
The 9,000-km-long line is the largest of its kind in the world. The pipeline
will carry natural gas produced in Central Asia and Xinjiang to the country's
eastern and southern regions. 
Quanta Computer, the world's
largest contract laptop maker, will raise salaries of its mainland production
workers by about 10 per cent to fend off a labor shortage as demand picks up for
its products. "We estimate salaries will climb by about 100 yuan, or about 10
per cent," said Elton Yang, Quanta's Taipei-based vice-president for finance.
Other technology companies have also expressed concern at labour shortages on
the mainland, with Acer, the world's No 2 personal computer brand, saying
recently that it has been giving orders to its contract manufacturers up to six
months ahead to allow them to plan their staffing needs. Quanta currently
employs about 40,000 production-line workers around the Shanghai region, Yang
said. The company manufactures goods for some of the world's top personal
computer brands such as Apple, Hewlett-Packard and Dell. "For Quanta, the impact
may not be that big because we're fairly well known," Yang said. "But our
suppliers may have some issues with manpower, and if things worsen, we may even
step in to send some of our workers over to help them tide through this time."
Quanta's suppliers include component manufacturers such as battery maker Simplo,
laptop hinge maker Shin Zu Shing and adaptor manufacturer Delta Electronics, all
of which manufacture laptop parts. UBS analyst Edward Yen estimates that about 5
per cent of the company's cost goes to labor, and the current labour shortage
should ease by May. "We're probably going through the worst right now," said
Yen. "Things should ease when China's school year ends in May, and that's when
we may see a new batch of people entering the workforce," The salary increase is
unlikely to have an impact on Quanta's margins since salaries make up only a
small percentage of the company's cost, Yang said, and the firm is further
pushing towards automation for its production line. Most major technology brands
do some or all of their own design work in-house, but outsource the
manufacturing process to firms such as Quanta, Hon Hai and Flextronics, which
run large facilities in lower-cost countries.
Shanghai Shipping Exchange,
based in China's busiest port, intends to set up a container-shipping
derivatives market by year-end as the city tries to challenge London as a global
center for shipping finance. The forward freight agreements, or FFAs, which help
guard against fluctuations in shipping rates, will be targeted at small- and
medium-sized exporters, who don't have the volumes needed for long-term shipping
contracts, said Yao Weifu, a director at the shipping exchange. The plan is
awaiting government approval. Morgan Stanley last month backed the first FFA
tied to a Shanghai container index, as the shipping exchange attempts to
persuade the sector to adopt futures. Unlike in the dry-bulk and tanker
segments, container-shipping has rarely used FFAs because the wide variety of
cargos and customers using each ship makes it more difficult to accurately track
rates, said Jay Ryu, an analyst at Mirae Asset Securities Co in Hong Kong.
"There is some need for hedging because rates recently have been very volatile,"
said Ryu. "Still, the trading volume will not be as huge as for dry bulk or
tankers." Clarkson Plc, which led the development of FFAs in 1991, helped devise
the four-month-old Shanghai Containerized Freight Index to act as a benchmark
for container-shipping futures. The securities arm of the world's largest
shipbroker also organized the container FFA between Morgan Stanley and shipping
line Delphis NV. The trial deal covered a total of 10 cargo boxes to be shipped
this month and next, according to the Shanghai Shipping Exchange's official
magazine. "The first trade has shown that the index is acceptable to global
markets and that it can be used for futures," said Yao. "Now it's time to move
on and launch derivatives in Shanghai." 
China CNR Corp, one of the two largest
train manufacturers in the country, is expanding its business in the urban rail
transit equipment sector, which is expected to generate 900 billion yuan by 2015
- benefiting from a speed-up in the development of urban rail transportation
systems. China CNR Corp has won a 950 million yuan contract to supply subway
cars for the No 8 Subway Line in Shanghai, according to a filing to Shanghai's
stock exchange yesterday. China CNR has agreed to purchase a 44.79 percent
equity stake in Shanghai Rail Traffic Equipment Development Co from Shanghai
Electric Group for 365 million yuan. China CNR will also directly inject 85
million yuan into Shanghai Rail Traffic, making it a 50-50 joint venture between
Shanghai Electric Group and China CNR. So far, China CNR controls 55 percent of
China's subway car manufacturing market, a senior official of Shanghai Rail
Traffic said. Shanghai-based Shanghai Rail - a railway traffic equipment maker -
designs, manufactures, distributes and maintains urban mass transit equipment.
Shanghai Electric said cooperating with China CNR in urban rail transit
equipment would help boost the expansion of Shanghai Rail in the city's urban
rail market and offer the firm access to new markets at home and abroad.
Shanghai Rail's sales are likely to reach 5 billion yuan by 2014, up from the
current 2 billion yuan, as a result of the cooperation, local media reported.
Acquiring Shanghai Rail will help Beijing-based China CNR enlarge its market
share in southern China, where the company has a weaker market position compared
with its chief rivals China South Locomotive and Rolling Stock Corp, which has a
62 percent share of Shanghai's subway car market, according to a research note
by Sinolink Securities. The fastest growth in the urban rail transit system will
be seen in the Yangtze River Delta and Pearl River Delta regions, both in
southern China, the research note said. China CNR, which has won contracts to
supply bullet trains for the now under-construction high-speed railway line
between Shanghai and Beijing, now generates less than 5 percent of its business
from urban rail. China's urban rail transit sector is expected to reach a total
length of 2,500 km by 2016, creating huge demand for railway-related business.
The country's urban railways will span 1,500 km by the end of 2010, generating
36 billion yuan in demand for railway cars, according to statistics provided by
China CNR. China's investment in the railway sector is likely to reach 900
billion yuan by 2015, said Cui Dianguo, chairman of China CNR. 
