|
China.Hawaii Chamber of Commerce ® "Hawaii-China Guan Xi, We Get Things Done™" - Trade Advocacy Organization
Click on the Logo
to Join HKCHcc on
|
|
|
Share Hong Kong, China & Hawaii Biz*
Do you know our dues paying members attend events sponsored by our collaboration partners worldwide at their membership rates - go to our event page to find out more! After attended a China/Hong Kong Business/Trade Seminar in Hawaii...still unsure what to do next, contact us, our Officers, Directors and Founding Members are actively engaged in China/Hong Kong/Asia trade - we can help!
Are you ready to export your product or
service? You will find out in 3 minutes with resources to help you -
enter
to give it a try
(approximate $ exchange rates: US$1 = HK$7.8, US$1 = RMB$6.8)
Presentation: Inside APEC http://www.hkchcc.org/insideapechkchccpresentation080810.ppt (Microsoft Power Point 16 Meg File Size) October 1, 2010
Consumer confidence in Hong Kong enjoyed a slight rebound in the third quarter, according to a new survey released by the Bauhinia Foundation Research Centre on Wednesday.
Following the lead of Hong Kong, Beijing and other key mainland cities, Macau yesterday unveiled a string of measures to rein in property speculation. The measures centre on increasing housing supply as well as raising the transaction costs for speculators, Lau Si-lo, Macau's Secretary for Transport and Public Works, said. Lau said land supply would be increased and new sites would be designated solely for the building of flats of 700 to 800 square feet. The government will help developers in transforming industrial sites for residential development. From next month, buyers of properties worth more than 3.3 million patacas will have to pay a minimum down payment of 30 per cent of the purchase price. Monthly mortgage payments should not be more than half of the buyer's income. The stringent down payment requirement applies also to non-Macau residents. Transaction fees will jump from 0.5 per cent to 3 per cent of the property's price.
China has decided to suspend bank loan for third home buyers as the government rolled out further measures to check soaring property prices, saying officials will be held responsible if they fail to implement the policies.
China has ended a de facto ban on exports to Japan of rare earth minerals, a Japanese trading firm source said on Wednesday, easing concerns about fallout from an ongoing feud.
Sept 30, 2010
Government-subsidised housing may be
revived by redeveloping old public estates now under the management of the
Housing Society, Eva Cheng said yesterday.
Sept 29, 2010
A controversial board appointed by the government to advise RTHK has rejected calls to open its meetings to the public, but it has agreed to post its discussion papers and minutes on the RTHK website for the public to view. The decisions were reached at the advisers' first meeting yesterday, after the formation of the board was announced last month. Nine of the 11 members showed up for the three-hour meeting, at which the advisers were also briefed on the general editorial policy of RTHK, and the public broadcaster's general operations. Two members - Ringo Lam Wing-kwan, an IT expert, and Jolly Wong Ka-chi, a consumer rights advocate - were out of town and missed the meeting. Board chairman Lester Huang, a solicitor, said after the meeting that they wanted to strike a balance between efficiency in the meetings and demands for openness. "By posting all documents, agendas and minutes on the Web, it will enable members of the public to follow our work," Huang said. Details still needed to be worked out. However, this failed to satisfy some critics. RTHK Programme Staff Union chairman Janet Mak Lai-ching expressed disappointment. "There are many other government advisory boards like the Town Planning Board that open up their meetings. I cannot understand why the RTHK advisers must keep the public away." Mak, in protest, tried to force her way into the meeting room but was stopped and asked to leave. Save RTHK, a concern group that supports the independence of the broadcaster, said the advisory board should be dismissed. A spokesman for the group, Law Yuk-kai, said: "They like to boast that they are only [there] to give personal opinions. If so, why can't they allow members of the public to go in to listen to what they say? Why must they be so secretive?" "Their act will only fuel speculation that it will become a backstage ruler and press RTHK to become a government mouthpiece." Law and 10 fellow group members staged a rally at RTHK before the meeting yesterday. They chanted slogans and displayed two banners that read: "No to black box operation. No to backstage lord." Huang rejected criticism that the board would become a "backstage ruler" and said: "We are accountable to the public and not any government official." The advisers have decided to meet four times a year. Their next meeting will be on November 4.
China is making final preparations to launch its second lunar probe, possibly as soon as Friday, when the nation marks 61 years of communist rule, state media reported Tuesday. A launch rocket carrying the Chang'e-2, which will go into orbit within 15 kilometres of the moon, has been set up in the southwestern province of Sichuan, the official China Daily reported. Chief programme engineers have arrived at the satellite launch centre in the city of Xichang to carry out final tests, and staff at the centre have said that barring complications, the launch could come on October 1, it said. Friday is China’s National Day, in celebration of Mao Zedong’s proclamation of the founding of the People’s Republic in 1949. Meteorologists have forecast clear skies in the Xichang area from Thursday, the report said. Space program officials had said previously that the mission would be launched in October, but no precise date had been given. The lunar probe will conduct various tests in preparation for the expected launch in 2013 of the Chang'e-3, which aims to be China’s first unmanned landing on the moon, state media have reported. The Chang'e programme, named after a mythical Chinese goddess who flew to the moon, is seen as an effort to put China’s space exploration programme on a par with those of the United States and Russia. China launched Chang'e-1, which orbited the moon and took high-resolution pictures of the lunar surface, in October 2007. The country hopes to bring a moon rock sample back to earth in 2017, with a manned mission foreseen in around 2020, according to state media. China became the world’s third nation to put a man in space independently – after the United States and Russia – when Yang Liwei piloted the one-man Shenzhou-5 space mission in 2003. The Americans have achieved the only manned lunar missions, making six trips from 1969 to 1972.
China on Tuesday called on Japan to take "candid and practical" actions to meet Beijing "half way" to resolve a bitter, weeks-long spat between the Asian neighbours. Foreign ministry spokeswoman Jiang Yu made the comment after Tokyo insisted it owns a disputed island chain at the centre of the row, which began with the September 7 collision of a Chinese fishing boat and two Japanese patrol ships. “China highly values China-Japan relations. But safeguarding bilateral relations requires the two sides to meet halfway and requires Japan to take candid and practical actions,” Jiang told reporters. “Japan should take concrete steps to eliminate the negative impact of this incident on bilateral relations.” She urged Tokyo to “stop its stalking or disruption of Chinese fisheries law enforcement management boats” patrolling the disputed waters in the East China Sea, but beyond that, offered no other specifics on what steps should be taken. When asked about the prospects of a meeting between Premier Wen Jiabao and Japanese Prime Minister Naoto Kan at an Asia-Europe meeting in Brussels next week, Jiang replied: “I have no information on that.” Beijing reacted angrily after Tokyo arrested the trawler’s captain, summoning its ambassador several times and calling off several planned diplomatic meetings. Japan has since released the skipper involved in the incident near the island chain known as Senkaku in Japan and Diaoyu in China. But industry sources say China has also halted exports to Japan of rare earth minerals, crucial for a range of high-tech products, a claim Beijing has denied. China has since last week held four Japanese nationals for allegedly filming a military installation. They are employees of a construction firm bidding for a contract to clean up Japanese chemical weapons from the second world war. On Tuesday, Japanese Foreign Minister Seiji Maehara told parliament that “no territorial issue exists” over the rocky islets, claimed by Tokyo, Beijing and Taipei. Maehara also said the arrest of the captain, which Beijing had said was illegal, was entirely appropriate, Kyodo News and other media reported.
Gome shareholders voted on Tuesday
on whether to oust the company's chairman in a corporate showdown staged by the
jailed tycoon who founded China's biggest appliance chain.
Sept 28, 2010
Many teachers and principals are scrambling to salvage their livelihoods as Hong Kong's falling student rolls threaten to make them redundant - but they are not alone. Businesses that traditionally thrived on a large student population are also being forced to look for new ways to make up the sharp fall in profits. Firms that produced school uniforms are diversifying, turning to workers' uniforms and even party costumes. School bus operators are increasingly transporting tourists and wedding guests. One textbook publisher is turning some of its staff members into teaching specialists. The Education Bureau estimates the city's Form One population will fall from 75,400 in the past academic year to 53,900 in 2016-17. Across six forms, the drop of 97,600 students by 2016 will mean a big chunk sliced off the business pie. Teachers will bear the brunt of the shrinking enrolments: 2,500 in secondary schools will be surplus by 2012, the Hong Kong Federation of Education Workers estimates. But the falling school rolls are also creating "fatal" shocks to other trades, according to businesspeople involved. Fast-diminishing profit margins are squeezing small players out of business. Ben Mak Ka-lung, deputy regional director of Oxford University Press China, says the industry is reeling from these grave blows. "The number of senior secondary publishers has been reduced from 48 a decade ago to 16 this year," he said. "Education reform has brought a change in emphasis from rote- to inquiry-based learning. We need to make a heavy investment to produce supplementary teaching materials to nurture students' critical thinking. "But the bigger investment is not matched by an expanding clientele. You need to spend more money to produce a product that is bought by fewer people." The publisher has a third of the textbook market share, specializing in major subjects including languages, maths and science. Although it sells to about 900 secondary and primary schools, Mak says the profit margin has been cut by 30 per cent from a decade ago. The publisher expanded its revenues by rolling out a new program in 2007, sending staff members to Oxford University in Britain to take training in teaching English phonetics. Schools that subscribe to the program benefit by having them help out in their classrooms. "A package costs HK$150,000 to HK$200,000 for two years," Mak said. "The number of primary school subscribers rose from two in 2007 to 24 this year. Ten staff specialise in doing this now. They go to school to train teachers and co-teach with them."
Two Chinese renewable energy companies set price ranges on Monday to raise up to US$1.3 billion from Hong Kong initial public offerings, as the country's field for publicly traded groups in this sector becomes crowded. China Suntien Green Energy Corporation is set to raise up to US$369 million in an initial public offering, according to a term sheet seen by Reuters on Monday. The company, which operates a wind farm and a natural gas business, is the clean energy unit of Hebei Construction Group, the state-owned investment arm of the Hebei provincial government. The Suntien offering will join China’s second-largest wind turbine maker Xinjiang Goldwind Science & Technology in the Hong Kong IPO queue. The company revived its initial public offering plan, a term sheet said on Saturday, seeking to raise up to US$917 million. This compared with an earlier fundraising target of up to US$1.2 billion, scrapped in June because of deteriorating market conditions. “There are a lot of IPOs happening this month and investors are on the lookout for good investment themes that will generate the most money. Renewable energy is one of those themes that should attract investor interest,” said Tony Tong, Head of Market Strategy for China Everbright (SEHK: 0165) Group. Tong added China’s policy in support of clean energy was another reason investors were bullish about renewable IPOs. China plans to spend US$736 billion over the next decade to harness wind, solar, nuclear and other clean energy technology in a bid to reduce the nation’s dependence on cheap but dirty coal. China burns coal to generate more than 70 per cent of its power needs. China Huaneng Group and Datang Corporation, the country’s top power producers, also plan to float shares of their renewable energy units in Hong Kong in offerings that could raise more than US$2 billion by the end of this year. Goldwind is selling 395.3 million shares at HK$15.98 to HK$17.98 each, which represents a multiple of about 15 times to 16.9 times forecast this year earnings. By comparison, Chinese turbine maker Dongfang Electric trades at 28 times forecast this year earnings, while China High Speed Transmission, a maker of wind gear for wind turbines, trades at 14 times. Goldwind’s offering price also represents about a 22 per cent to 30 per cent discount to its mainland A-share price. Goldwind has also signed up five cornerstone investors, including International Finance Corporation, for a combined $190 million worth of shares, with a commitment not to sell their investments for six months. Suntien is selling 1 billion shares at a price ranging from HK$2.06 to HK$2.66 per share, the term sheet showed, or 35 per cent of the company. The company plans to list on October 13. Macquarie Group is the sole global coordinator.
A Chinese commerce official on Sunday called on foreign investors to maintain their confidence in the country, promising China would make continuous efforts to improve its investment environment. Qian Fangli, deputy director of the Department of Foreign Investment Administration under the Ministry of Commerce (MOC), made the statement at a forum during the Expo Central China 2010 that opened Sunday. Although operation costs in China were rising because of higher labor and raw materials costs, foreign investment continued growing rapidly " because improvements in China's investment environment helped lower their investment costs and boost confidence," Qian said. Further, she noted that the Chinese government would continue to improve policies to encourage foreign investors. But she did not provide further details. In the first eight months of this year, foreign direct investment in China totaled 65.96 billion U.S. dollars, up 18.06 percent from one year earlier, according to MOC statistics. The Expo Central China, scheduled to run from Sept. 26 to Sept. 28, invited economists, entrepreneurs and officials to attend. The expo seeks to promote development in central China, which spans six provinces -- Shanxi, Anhui, Jiangxi, Henan, Hubei and Hunan.
A US congressional panel's approval of a bill on China's currency is "redundant", China’s vice commerce minister said on Monday, the latest salvo from Beijing in the face of US pressure on its currency policy. Vice Commerce Minister Chen Jian also told a media briefing during a visit to Taiwan that China would set policy on its currency according to its own needs. “We’ll make a decision based on our own economic development levels and the world economic situation. If it takes the yuan to appreciate for our economy to develop, we will do it even though it would have negative impact,” Chen said. “But it is redundant for the US congress to pass the proposal.” The US House of Representatives Ways and Means Committee approved a bill on Friday, expected to be voted on this week, that would let the United States apply duties on goods from countries with undervalued currencies. The vote is a first step to fulfilling long-standing threats to penalise Beijing for keeping its currency artificially weak, which critics claim creates an unfair trade advantage for China. It comes a day after US President Barack Obama pressed Chinese Premier Wen Jiabao on the issue in talks on the sidelines of the United Nations General Assembly meeting. The yuan rose against the dollar on Monday even though the central bank lowered its mid-point after nine days of stronger fixings in the face of growing US pressure on Beijing to let the currency rise faster. Chen added that the yuan’s recent rise would hurt China’s exporters, but the effects would diminish over the long term. He was speaking in Taipei after a forum on developing cross-strait trade.
China will continue to limit most families to just one child in the coming decades, state media said Monday, despite concerns about the policy's problematic side effects.
Sept 27, 2010
Medvedev visits China to push for investment - Russian President Dmitry Medvedev travels to China today to expand economic ties with the world's largest energy consumer and try to engage Beijing in a range of trade projects.
Sept 26, 2010
Needy families living on public assistance can expect to pay less for gas from next year. Monopoly piped-gas supplier Towngas is considering giving them the same 50 per cent discount it now offers about 80,000 old people, disabled customers and one-parent families. They would also get free servicing and spare parts. The offer would apply to everyone receiving Comprehensive Social Security Assistance - currently nearly 480,000 people. A company spokeswoman denied that the proposal was politically motivated. "The concession scheme has nothing to do with anti-business sentiment. "Our company is a caring company and has been offering various kinds of concession schemes since 1995," she said. Towngas, or the Hong Kong and China Gas (SEHK: 0003) Company to give it its full name, is controlled by Henderson Land Development (SEHK: 0012). The discount will apply to the first 500 megajoules of gas consumed. The additional relief scheme was mentioned in a document sent to the Legislative Council economic development panel this week. In the paper, the company said the concession would last for two years initially, and those benefiting from it would have to reapply when the two years were up. It expects to take approximately three months to prepare and set up the new scheme, and suggests launching it in January. The spokeswoman said it was too early to estimate how much it would cost the company, as the scheme was in the initial planning stage and details had yet to be worked out. Democratic Party legislator Fred Li Wah-ming, who sits on the Legislative Council's economic development panel, welcomed the proposal, but said: "It would be better if the scheme covered all low-income families in Hong Kong, not only those on CSSA." However, Sze Lai-shan, of grass-roots group the Society for Community Organisation, criticised the gas supplier for a lack of sincerity in helping the needy. She said: "If it is a caring company, it should not have increased its tariff in the first place. Now it has increased the tariff and after that it said it would offer some concessions. Why did it not simply freeze or cut the tariff?" Towngas raised its basic tariff by 0.6 cents per megajoule from April to a range of 20.95 cents to 21.97 cents. Sze conceded that the new scheme was better than nothing. The 2.8 per cent increase followed a 1.4 per cent tariff rise in 2008. Towngas earned HK$5.17 billion last year and HK$4.3 billion in 2008. Towngas was founded in 1862 and was the first public utility in Hong Kong. Over the years, it has evolved from a gas company supplying fuel for street lamps to become a main energy supplier, with more than 1.7 million customers in the city.
Hong Kong factory bosses have rejected appeals by the China Labor Bulletin activist group to debate a controversial plan that would allow Guangdong workers to collectively negotiate wages and benefits. The CLB, a non-government body headed by democracy advocate Han Dongfang, wants a public debate with industrial organisations over the controversial plan. Nearly 60 employer groups have opposed the proposal so strongly that the Standing Committee of the Guangdong People's Congress decided not to submit the draft rule to next week's congress meeting. Han, in a publicly released letter, said that he regretted the legislature's decision and warned that postponing the submission would do nothing to reduce industrial tensions in the province. Representatives of the Federation of Hong Kong Industries and the Hong Kong Young Industrialists Council said yesterday that they were not interested in debating the draft legislation. "As employers, we look at the long-term interests and investment desires of Hong Kong investors across the border whereas the [CLB] looks from the workers' perspective and fights for the bargaining power of migrant workers," the federation's deputy chairman Stanley Lau Chin-ho said. Hong Kong Young Industrialists Council president Jack Tsui Ming-cheong said there was little to gain from a debate. "We are speaking two different languages and unlikely to reach any consensus," he said. Influential trade unions in the city also declined to debate the plan. Controversy flared last month when the Guangdong provincial government revealed details of proposed rules that would allow workers to elect representatives to sit on the board of a company and negotiate over wages, bonuses, paid leave, work hours, insurance, work conditions and safety standards. The proposals call for one in every three directors to be a worker representative, and for them to have access to all corporate information other than that involving technological secrets or personal privacy. By setting up a negotiation mechanism, the Guangdong provincial government aimed to minimise labour disputes following a wave of strikes and protests in July that hit big corporate names such as Honda and Foxconn. Han pointed out that the mainland's economic growth hinged on spurring domestic consumption, and that raising workers' wages was the best way to meet the goal. However, the proposals drew fire from an alliance of Hong Kong's four largest employer groups - the Federation of Hong Kong Industries, the Chinese Manufacturers' Association of Hong Kong, the Hong Kong General Chamber of Commerce and the Chinese General Chamber of Commerce - and 53 smaller trade bodies. Hong Kong factory owners employ about 10 million migrant workers in Guangdong but have faced rising labour and other costs over the past few years. They were concerned that participation by workers in company decision-making would ignite more disputes and risked leaking commercial secrets. They warned that the planned legislation would spark an investment flight. Guangdong raised the minimum wage by about 20 per cent in May while severe labour shortages forced employers to improve working conditions, salaries and other benefits. However, Han argued that many smaller firms, particularly Hong Kong enterprises, had countered higher wages by raising workloads and work hours. "How many among you in the past 30 years have violated workers' rights and interests by ignoring national labour laws and regulations?" Han asked Hong Kong businessmen. CLB spokesman Geoffrey Crothall said the group wanted a dialogue with the trade bodies.
Japan was to release a Chinese fishing boat captain on Friday at the heart of a fierce territorial row with China that has threatened ties between Asia's two biggest and increasingly interdependent economies. A prosecutor from Naha city on Japan’s southern Okinawa island said the decision to release the captain, whose trawler collided this month with two Japanese patrol boats in waters near islands both sides claim, reflected consideration for Sino-Japanese ties. “It is a fact that there was the possibility that Japan-China relations might worsen or that there were signs of that happening,” Chief Cabinet Secretary Yoshito Sengoku told a news conference. “Our ties are important and both sides must work to enhance our strategic and mutually beneficial relations.” The expected release follows the detention of four Japanese nationals who were being investigated on suspicion of violating Chinese law regarding the protection of military facilities, although Sengoku denied a link between the two matters. Japanese prosecutors have not said when the captain will be released, but China said it was sending a chartered plane on Friday to take him home.
A bruising year for China in East Asia is about to get even tougher. Today's summit meeting between 10 Southeast Asian leaders and US President Barack Obama, the first such meeting in the US, will cement two trends increasingly evident in recent months - the region is determined to have the US around to balance China's rise, and Washington is finally fully awake to the potential in a region it has previously neglected. The meeting also takes place against the backdrop of rising Sino-Japanese tensions over Tokyo's continued detention of a Chinese trawler captain who rammed two Japanese coast guard ships near the Diaoyu Islands. Some in the wary region see those tensions as confirming a new era of assertiveness by Beijing. Most worrying for Beijing is the fact the disputed South China Sea will be a key part of the agenda when Obama meets his counterparts from the Association of Southeast Asian Nations on the fringes of the United Nations General Assembly in New York today. As well as security issues, they will discuss greater economic co-operation and the creation of a formal strategic partnership - a relationship Asean has forged with both China and Japan during similar summits in recent years. A communique after the meeting is expected to reinforce the need for peaceful, multilateral solutions to the rival South China Sea claims by China and the Asean countries of Vietnam, Malaysia, the Philippines and Brunei. That statement will highlight just how the region's strategic balance has shifted in less than a year. Just 10 months ago, backroom pressure from Beijing was enough to keep the South China Sea off the Asean agenda, despite signs of growing tensions over the strategic waterway that links East Asia to Middle Eastern oil and European markets. China instead started quietly insisting any claimants settle directly with Beijing - a move which played to China's rising strength. And despite rising Asean concern - and Obama's Secretary of State Hillary Rodham Clinton declaring in late July that Washington wanted to foster multilateral solutions as a priority - that remains Beijing's official position. But a year that has seen extensive People's Liberation Army exercises in the South China Sea, and Chinese vessels capturing hundreds of Vietnamese fishermen in disputed waters, has alarmed the region. Behind the scenes, a Chinese note to the UN appeared to confirm a sweeping Chinese claim to virtually the entire sea, while Chinese officials told US State Department and National Security Council officials that the sea was now a "core interest" of Beijing - diplomatic code that puts it on par with Tibet and Taiwan in terms of sensitivity. A chorus of concern from Asean leaders about a harder edge to China's diplomacy resonated with an Obama administration looking to re-engage the region. Today's communique is expected to underscore the importance of a 2002 declaration signed between China and Asean that calls, among other peaceful gestures, for the creation of a legally binding code of conduct in the area. Keen observers of the Sino-US relationship said today's statement would push Beijing into a difficult position because it would confirm formal US involvement in what had been a regional issue. "Beijing is very unhappy because it doesn't want its territorial disputes with some Southeast Asian countries to turn into a complicated and multilateral issue," said Dr Richard Hu, director of international relations at the University of Hong Kong. "Indeed, the joint statement will also send a message to the world that `the US is formally back in Asia as well as back in the game - which aims at rebalancing China's influence in Southeast Asia'." Jia Qingguo , a professor at Peking University's school of international studies, said Beijing had long been ready to deal with Washington's long-term intervention in the Asia-Pacific region, but recent PLA actions may have played into US hands. "We know the US is everywhere ... Maybe our current high-profile military demonstrations in the Yellow Sea, and the East and South China seas made our neighbours nervous, which provided the US the best opportunity to come back," Jia said. Another Peking University professor, Yu Wanli, said Beijing needed to clarify to the world its precise position on the "core interest" remark, saying that no leader had used such a phrase in a speech or official document. "Maybe it was a misinterpretation from the earlier meeting between Chinese and US officials in Beijing," Yu said. "I think Beijing needs to clarify its standpoint to the outside world." Both Hu and Yu said today's joint statement would not harm Sino-US or Sino-Asean ties. "It's just a joint statement ... not a practical action to challenge and contain China," Hu said. Many envoys from countries large and small talk of China's "premature overreach" in the past year, adding that Beijing would have been far more successful had it waited for another decade or so to play a tougher hand with East Asia, given its growing economic and military clout - and the relative decline of the US. Ian Storey, a scholar at Singapore's Institute of Southeast Asian Studies, said there was a lot of talk that China would be "recalibrating" its approach. "We haven't seen any sign of it yet," he said. "Maybe the summit will be enough to produce just that kind of reaction. Certainly many countries want to show China that this is simply about balance, not about shutting China out ... everyone knows China is still very important to the future of Asean." China has grown to become Asean's biggest trading partner. While playing catch-up on trade, the US remains by far the biggest investor within Asean, with three times as much capital invested by US firms in Southeast Asia than across the whole of China. The pressure is likely to remain on China for some time yet, however. Much of the push to drive the South China Sea issue has come from Vietnam in its year as chair of Asean. It is, after all, the only other country that claims all the Paracel and Spratly islands. Soon it will pass the baton to Indonesia, the largest nation in Southeast Asia and one that has long voiced concerns about China's South China Sea claims.
Tokyo warns of economic fallout from row - Japan warned on Friday that a deepening row with China could hurt both of Asia's two biggest economies and sought to draw a line between a feud over disputed islets. China seeks binding climate treaty - China wants the world to seal a binding climate change treaty by late next year, blaming US politics for impeding talks and making a deal on global warming impossible this year.
Sept 25, 2010
A group of Hong Kong activists on Thursday set sail again for an island chain in the East China Sea claimed by Beijing and Tokyo, a day after their ship was stopped by marine police.
China is to give another US$200 million in emergency flood aid to Pakistan, Premier Wen Jiabao announced during a visit to New York for a UN anti-poverty summit.
Sept 24, 2010
AIG secures HK exchange nod to list AIA - American International Group inched closer in its ambitious plan to list its Asian life insurance business, AIA Group Ltd, after securing approval from the Hong Kong stock exchange. HSBC's chief executive Michael Geoghegan has threatened to quit if he is not promoted to chairman, as the battle for the top job at the bank intensifies, a report said on Wednesday.
Sept 23, 2010
Eighteen people were injured in a
fire at Yau Mat Tei on Tuesday morning, a Fire Services Department spokesman
said.
Hosting the 2023 Asian Games will cost HK$10 billion, the low end of the spending spectrum, with the government presenting the public consultation paper to the Legislative Council today. The price tag was disclosed by a sports official close to the administration. At a special home affairs panel meeting, the government will brief lawmakers on the estimated cost of staging the Games, as well as the benefit to sports development and the community. The government has tried to limit the cost in the hope of obtaining budgetary approval from the council's Finance Committee and winning the support of the public. Speculation had put the cost as high as HK$50 billion for building facilities and improving infrastructure if Hong Kong wanted to stage a successful Asian Games. But the HK$10 billion estimate will be made on the assumption that no new facilities will be built specifically for the Games. Existing facilities will be renovated instead. The athletes' village, the home for an estimated 15,000 athletes and officials during the Games period, will become a joint venture with property developers, and will not be included in the budget. "Many of the 2023 Games events can be held at the Kai Tak sports hub, which has been planned by the government for many years and is not [being] built because of the Asian Games bid. Its construction cost, therefore, will not be included as part of the 2023 Games bid," an official close to the government said. "Some new sports facilities which will be opened soon - or are under planning for the next 10 years in various districts - may also be upgraded to meet the Asian Games standard, but since they are under the government's regular capital expenditure they will not be included in the bid budget." The government spent HK$1 billion on renovating sports facilities to host the East Asian Games last year. The Kowloon Park swimming pool, the Hong Kong Coliseum and Queen Elizabeth Stadium have all had facelifts. A new HK$600 million cycling velodrome will open in Tseung Kwan O in 2012. The Kai Tak project, which features a 45,000-seat stadium and multi-purpose sports centre, would be the major venue for the 2023 Games. The next Asian Games, in Guangzhou in less than two months, cost the mainland authorities an estimated 200 billion yuan (HK$230 billion). But a senior official for the Guangzhou event said the core expenditure, which included construction of facilities and Games operations, would be less than 15 billion yuan. The Hong Kong Olympic Committee has been given until January to submit a formal bid document to the Olympic Council of Asia but the committee needs to obtain financial backing from the government beforehand. Democratic Party lawmaker Emily Lau Wai-hing said HK$10 billion was a huge amount and the government needed to show evidence of how the public would benefit from the games. Civic Party legislator Tanya Chan said of the HK$10 billion cost: "It's about half of that for the HK$21.6 billion West Kowloon Cultural District ... we will need to see how the HK$10 billion will be used." Professor Chau Kwong-wing, chair professor at the University of Hong Kong's real estate and construction department, said the government should have a transparent, fair and competitive environment for developers to bid to build the athletes' village. Some of the world's biggest firms were among almost 30 foreign groups vowing major investments in Taiwan amid growing interest in the island since it signed a trade pact with China.
Beijing rules out meeting with Japan PM - China on Tuesday said a row over Japan's detention of a Chinese trawler captain had damaged ties and made it "inappropriate" for the countries' premiers to meet this week at the UN.
China halts ticket sales for Japan pop group - Two mainland concerts next month by Japanese pop band SMAP could fall victim to a diplomatic row between the two countries after ticket sales were suspended at the weekend.
Sept 22, 2010
Number of working poor up by 12pc in past five years, survey finds - The number of working poor in Hong Kong - poor families with at least one working member - has reached a record high.
Sept 21, 2010
Sept 20, 2010
Hong Kong to lead the development of financial collaboration, says Guangdong Governor - Hong Kong will lead the development of financial collaboration with Guangdong, the province's governor said yesterday after the two sides met and signed four co-operation agreements. Speaking after meeting Chief Executive Donald Tsang Yam-kuen at the Hong Kong-Guangdong co-operation joint conference in Guangzhou, Guangdong governor Huang Huahua said financial co-operation would be the highlight of the two sides' future development. "The next step, we will have financial co-operation," he said. "The key is to develop financial co-operation led by Hong Kong ... with the support of cities such as Guangzhou and Shenzhen in the Pearl River Delta." Tsang said Hong Kong's financial co-operation with Guangdong would be unlimited. "A large amount of enterprises in Guangdong are funded by capital from Hong Kong," he said. "Therefore, there are more opportunities for co-operation on [renminbi] settlement and clearing, particularly because Hong Kong now has stronger ability in renminbi financing and settlement and most clients of these services are enterprises in Guangdong." He said the two sides were also working on renminbi settlement of payments for direct investments by next year. Tsang said he hoped to bring well-established Guangdong businesses which wanted to issue renminbi-denominated bonds to Hong Kong, while Guangdong would seek to list Hong Kong equity funds on the Shenzhen stock exchange. Raymond So Wai-man, dean of the school of business at Hang Seng Management College, said Guangdong also acknowledged that co-operation was important for the Pearl River Delta region to counter competition from the Yangtze River Delta region. Officials signed four agreements on scientific research, agricultural products, marine search and rescue as well as one relating to the implementation of the Framework Agreement on Hong Kong-Guangdong Co-operation signed in April. Tsang also announced that the State Council had confirmed the feasibility of a new pilot scheme which will allow private Hong Kong cars to be driven across the border on temporary single-entry permits.
China has given approval to four Taiwanese banks to set up branches on the mainland, a major step toward financial co operation between the sides. The late Thursday announcement by the China Banking Regulatory Commission came just days after a landmark trade agreement took effect to bring their two economies closer. “This signals the advent of a new era for cross-strait exchange and cooperation in the banking sector,” the agency said on its website. The regulator said the Land Bank of Taiwan and First Commercial Bank were given approval to set up branches in Shanghai, while Taiwan Co-operative Bank and Chang Hwa Bank were permitted to open in nearby Suzhou and Kunshan respectively. Many Taiwanese high-tech and other firms have set up large production bases in those cities. Taiwanese have invested more than US$150 billion on the mainland, but political tensions between Taiwan and Beijing had barred Taiwanese banks from setting up operations there. Relations between Taiwan and Beijing have improved greatly since Taiwanese President Ma Ying-jeou took office 28 months ago, spurred by closer commercial and cultural ties. Under the trade agreement signed by the two sides in June, the Taiwanese banks will be allowed to extend loans in yuan to Taiwanese companies if their first year’s operations yield profits. After two consecutive years of staying profitable, their services can be extended to mainland firms as well. Chen Yuh-chang, head of Taiwan’s Financial Supervisory Consumers, said three other Taiwanese banks are still awaiting mainland’s approval to set up branches. Chen said the Taiwanese regulator is screening the applications of the Bank of China and Bank of Communications (SEHK: 3328) to establish representative offices in Taiwan. SouFun Holdings, the mainland’s No 2 online real estate website, priced shares of its initial public offering at the top of the expected range overnight on Thursday, according to an underwriter. The company sold 2.9 million American Depositary Shares for US$42.50 each, raising US$124.7 million. The company had planned to sell shares for US$40.50 to US$42.50 each. SouFun sells marketing and listing services. As of June 30 SouFun covered 106 mainland cities, according to its prospectus. Beijing-based SouFun’s competition includes top-ranked China Real Estate Information, which raised US$216 million in a Nasdaq IPO last October. CRIC’s shares closed on Thursday at US$8.81, or 26.6 per cent below their US$12 IPO price. SouFun’s IPO comes as another major mainland internet company, Dangdang.com, an online retailer known as the mainland equivalent of Amazon.com, pursues its own US listing after years of false starts. SouFun is 51 per cent owned by Australian phone company Telstra. Telstra purchased its stake in SouFun in 2006 for US$254 million. It said last month it would sell that stake to private equity firms General Atlantic and Apax Partners ahead of the IPO for more than US$400 million. Both firms are existing SouFun shareholders. SouFun posted net income attributable to shareholders of US$5.3 million on total revenue of US$68.2 million in the six months ended June 30. Underwriters were led by Deutsche Bank and Goldman Sachs. The shares are expected to begin trading on the New York Stock Exchange on Friday under the symbol “SFUN”.
Sept 19, 2010
Hostage-taker shot all eight tourists, says Philippine panel - Philippine investigators have concluded that all eight Hong Kong tourists who died when a sacked policeman hijacked a bus were killed by him, Justice Secretary Leila de Lima said.
Despite his initial intentions, Philippine tourism chief Alberto Lim won't be in Hong Kong to promote holidays soon. A week after the August 23 tragedy, Lim proposed a promotional blitz and a "special package" to lure tourists to the Philippines. But during a congressional hearing on Tuesday he told opposition congresswomen Milagros Magsaysay: "We believe that we should not immediately go to Hong Kong and ask that market to come back. "We should express sympathy as the first step in curing the problem. It is something that has to heal naturally." Hongkongers and mainlanders account for nearly 10 per cent of visitors to the Philippines. Boracay and Cebu have both reported slumps in arrivals from Hong Kong since the shootings. However, the tourism office at the budget terminal at Diosdado Macapagal Airport at Clark, Angeles, north of Manila, recorded 2,238 arrivals from Hong Kong from August 24 to 27 - up from 1,067 in the same period last year.
Milestone as organ traffickers jailed for first time on mainland - Seven traffickers in human organs were jailed yesterday by a court in Beijing. It is the first time anyone on the mainland has been punished for a practice often ignored by authorities.
BMW gets mainland approval for auto financing unit - German luxury car maker BMW said it had received approval to set up an auto financing unit in the mainland, becoming the latest automaker to tap auto financing business.
Sept 18, 2010
Beijing has announced a tough new crackdown on food safety crimes and promised to order the death penalty for the worst offenders, state media said on Thursday. Xinhua news agency cited a joint notice issued by the Public Security Bureau and three top law agencies as saying severe or large-scale food safety cases must be strictly punished. “Those deserving death penalties should be resolutely sentenced to death,” Xinhua quoted the notice as saying. It also promised harsher punishment for government officials who accept bribes and protect or ignore food safety offenders. “Officials who are involved in food safety crimes should not be given a reprieve or be exempt from criminal punishment,” it quoted the document as saying. The notice didn’t appear to announce changes to the food safety law but said courts should order the highest penalties allowed. China overhauled its food safety management system after a series of scandals that frightened consumers at home and abroad, including a problem two years ago with tainted baby formula that killed six children and sickened 300,000. That scandal led to prison terms for dairy executives deemed responsible and a shake-up of the mainland milk industry. Two people were executed. But authorities in several cases this year have again found milk tainted with the industrial chemical melamine being used in products instead of having been destroyed as ordered. Other food safety problems have included seafood treated with cancer-causing antibiotics or antimicrobials, eggs colored with industrial dye, and fake alcohol that can cause blindness or death. The announcement was issued on Wednesday by the Public Security Bureau, The Supreme Court, the Ministry of Justice and the Supreme People’s Procuratorate, Xinhua said. US takes two China trade cases to WTO - Trade tensions between the United States and the mainland ratcheted up another notch overnight on Wednesday, as Washington called on the WTO to probe unfair trade practices by Beijing. Sept 17, 2010
Sept 16, 2010
Hong Kong's first green bus, the gBus, is in Hong Kong for a six-month trial, Kowloon Motor Bus managing director Edmond Ho said on Tuesday. The single-deck gBus is an electric bus powered by ‘supercapacitor’ technology and produces no roadside emissions. It has a maximum capacity of 70 passengers and runs at a maximum speed of 50 kilometres per hour. Introducing the gBus, Ho said that because of its rapid charging speed, the vehicle’s supercapacitor technology was well suited for Hong Kong. “Rapid charging can be conducted at bus stops when passengers board and alight, taking approximately 30 seconds for 1km of power. “When fully charged, the gBus can run continuously for 5km, which is equivalent to a journey from Tsim Sha Tsui to Sham Shui Po,” Ho said. KMB has set up a charging station at Lai Chi Kok Depot. The gBus will travel between Mei Foo and Lai Chi Kok Depot for trials for six months. These include pressure tests in hot and wet weather. The company would give the gBus a six month trial.
Sept 15, 2010
The Education Bureau wants secondary schools which do not have enough secondary one students to voluntarily cut a form one class, Secretary for Education Michael Suen Ming-yeung said on Monday. Suen stressed that Hong Kong secondary schools faced a serious long-term problem of declining school populations. “The latest projections released by the Census and Statistics Department show there will be a steady, sharp decline in the annual intake of Secondary 1 students in the coming few years,” he stressed. “It will fall by 21,500 students, from 75,400 in 2009 to 53,900 in 2016 – representing a decrease of 28.5 per cent. We anticipate that the falling trend will only ease after 2016,” added Suen. He said that this year, schools with more than 61 form one students could open three form one classes with about 20 students per class. The government will postpone closing schools with less than 61 form one students for at least a year. “This was to allow more time for these schools to discuss their future development,” Suen said. “But these schools should make sure they could provide curriculum courses for form one students when they are attending secondary six classes,” he said. The education secretary was speaking at a press conference after meeting more than 40 education representatives on Monday morning. Suen also suggested schools without enough children to fill their form one classes could reduce them from five to four classes. He said that currently there were 23 secondary schools which had joined the program. He expects more schools would voluntarily agree to cut one form one class in the next few months. Meanwhile, the Hong Kong Professional Teachers’ Union (HKPTU) suggested secondary schools adopt small-class teaching. But the union said this might be difficult to implement. Hong Kong Subsidised Secondary Schools Council chairman Liu Ah-chuen said the government should postpone closing down under-enrolled schools.
Some Yau Ma Tei residents have called for their old neighbourhood to be beautified to bring it more in line with the West Kowloon Cultural District. They also want the future arts hub to have more links with the old district. These were two of the views put forward in a forum organised yesterday by the West Kowloon Cultural District Authority for residents of the Yau Tsim Mong District. About 50 residents attended the 2 1/2-hour forum, and heard presentations describing the three shortlisted development concepts. One resident, Chan Chung-kit, said: "We should not only focus on the cultural quarter. We should also look at the overall town planning. The Yau Ma Tei area will not be much upgraded if we only create a beautiful cultural area there." He cited the cargo-handling area on the Yau Ma Tei waterfront, right beside the site of the arts hub, suggesting it be relocated. Another of the area's residents said: "There should be some residential developments in the cultural quarter, or else the place could become a no-man's zone when there are no performances." Professor Stephen Cheung Yan-leung, the panel chairman, stressed that the arts hub was not a property development project. Ronald Arculli, the authority's development committee chairman, said the authority could not be responsible for property projects in the area, which would be decided by the government. Yesterday's forum was part of the latest public consultation exercise, running until November 20.
Palm computer for Chinese study at Confucius Institutes to come to market this year - A palm computer for online study of the Chinese language for students at Confucius Institutes around the world has been developed and will be available for purchase this year. The palm computer, with the full name "Mobile Confucius Institute Study Terminal," is loaded with special software for online teaching, study, communications and entertainment. Developed by Xiamen University, and several companies including Temobi (Xiamen) Science and Technology Development Co. Ltd., Huawei Technologies Company and Lenovo Group, the computer is a virtual college with libraries and classes, Zheng Tongtao, director of the Overseas Education College at Xiamen University in Xiamen City in east China's Fujian Province, said Monday. The terminal will be sold for about 2,000 yuan (about 294 U.S. dollars). The first Confucius Institute opened on Nov. 21, 2004, in Seoul, capital of the Republic of Korea. As of July 2010, 316 Confucius Institutes and 337 Confucius Classrooms had been established in 94 countries and regions.
Sept 14, 2010
Anti-business sentiment on the rise over widening wealth gap - Hong Kong's failure to tackle its rich-poor divide is fuelling hatred towards the city's business community, Executive Council convenor Leung Chun-ying said yesterday. Activists from Hong Kong are set to depart today from Taiwan in an attempt to proclaim Chinese sovereignty over the disputed Diaoyu Islands. Another group was scheduled to start sailing in Xiamen last night bound for the area in the East China Sea. News of the sailings came after Beijing's top foreign policy official increased pressure on Japan by summoning its ambassador to again demand the immediate release of Chinese fishermen and their boat detained near the group of islands. It was the fourth time Uichiro Niwa had been called in. The official making the summons, State Councillor Dai Bingguo - and his timing, in the early hours of yesterday - indicated the urgency with which Beijing wants Tokyo to treat the issue. The Chinese trawler clashed with two Japanese patrol boats on Tuesday before the Japanese authorities took over control of the boat, with 15 fishermen on board, and arrested its captain. Dai said Japan should reach a "wise political resolution" or it would be wrongly evaluating the situation. According to a Foreign Ministry statement, Niwa said he would report Beijing's position to Tokyo. As tension escalated, activists from Hong Kong, Taiwan, Macau and the mainland are set to face resistance from the Japanese coast guard as they set sail for the disputed waters. The activists' boats, according to the organizers, will take action to proclaim China's sovereignty on the islands. Action Committee for Defending the Diaoyu Islands chairman Chan Miu- tak, the Hong Kong activist who was in Taiwan yesterday, said along with Taiwanese activists they are determined to proclaim Chinese sovereignty despite possible countermoves by the Japanese. Li Yiqiang, of the group that was to sail from Xiamen, said they plan to brandish banners protesting "Japanese aggression." He added if the trip goes as planned, they are expected to arrive tomorrow. Earlier, the Hong Kong activists were given the cold shoulder by Taiwanese fishermen when trying to rent a boat. The fishermen, who activists said came under pressure from Taipei, were worried they would be fined or have their licenses revoked. Also yesterday, Japanese coast guard officials took the trawler and its crew out to sea near Ishigaki island in Okinawa Prefecture for investigation, an action deemed by Beijing as "illegal, invalid and in vain." Japan's coast guard has said the Chinese trawler ignored warnings to leave the area, and refused to stop for an inspection last week. The trawler captain Zhan Qixiong, 41, was later arrested on suspicion of obstructing officers on duty, a charge that carries a maximum sentence of three years' imprisonment. In view of the incident, Beijing called off planned negotiations over oil and gas fields in the contested area of the East China Sea.
GOME boss cheered - The current management of GOME Electrical Appliances Holding (0493) has received a boost as an international leading advisor of institutional shareholders recommends support for the team led by chairman Chen Xiao at an upcoming special meeting. Sept 13, 2010
China is expected to become the world's largest credit card market by 2020, topping the US in terms of the number of cards in issue as an urbanisation drive boosts people's living standard, MasterCard said yesterday. The mainland is likely to have about 800 million to 900 million credit cards in circulation in 2020, surpassing the US which currently has 700 million, according to Chen Bin, a vice president with MasterCard Advisors. There are now 207 million credit cards in use on the mainland. MasterCard, the world's second-largest banking card processor, said the risks of credit card delinquencies are controllable on the mainland because of the government's tightened oversight on the business. Beijing has intensified the crackdown on credit card defaults since last year but the amount of unpaid debts continues to rise. A total 8.8 billion yuan (HK$10.09 billion) of credit-card debt was at least six months overdue on the mainland, the People's Bank of China said in May. That was 14.4 per cent more than the end of last year. The overdue amount accounted for 3.5 per cent of the total outstanding credit-card debt. The central bank has been coordinating with UnionPay, the mainland's sole domestic interbank card operator, to launch investigations into questionable credit-card transactions. A UnionPay official said investigations had found that some retailers were colluding with cardholders to commit fraud. The increasing use of plastic benefited UnionPay, which enjoys a monopoly on the mainland. Established international players such as Visa International and MasterCard are barred from tapping the mainland bank card market. They could only team with the Chinese counterpart to issue dual-currency cards bearing both logos. Sept 12, 2010
Hong Kong's Immigration Department announced Friday that Grenada has confirmed it will grant visa-free access to Hong Kong Special Administrative Region (HKSAR) passport holders visiting the country for a stay of up to 90 days. The arrangement will come into effect on Sept. 20, 2010. Likewise, from the same day, Grenadian nationals may visit Hong Kong visa-free for a stay of up to 90 days. "The arrangement means greater travel convenience for HKSAR passport holders and helps promote trade, business and tourism links between Hong Kong and Grenada," said a spokesman of HKSAR's government. Including Grenada, 143 countries and territories have granted visa-free access or visa-on-arrival to HKSAR passport holders. Russian miner Petropavlovsk said it planned to list its non-precious metals division, including its iron ore operations, in an initial public offering (IPO) on the Hong Kong stock exchange in October. London-listed Petropavlovsk, which said it had reached an advanced stage in its preparations, did not give any guidance on the value of the IPO or say how much it intended to retain. A group of Hong Kong-based investors in June agreed to take a US$60 million equity stake, valuing the division at US$860 million. Jay Hambro, who will be executive chairman of the division, said last month a pre-IPO price of US$860 million set a good floor for a potential IPO valuation. He also said Petropavlovsk was keen to keep a controlling stake in the division. Under Hong Kong stock exchange rules, companies need to have 25 per cent of their shares as free float, implying Petropavlovsk would keep a stake of between 51 and 75 per cent. Andy Davidson, an analyst at Numis Corp, said the widely expected move was positive and had the potential to unlock significant value for Petropavlovsk. “We currently value the iron ore assets at 184 pence a share (US$573 million) out of our 625 pence NAV and believe the IPO has potential to double this, given the previous pre-IPO funding,” he said. Shares in London-listed Petropavlovsk were up 2.2 per cent in early trade, outperforming an unchanged British mining index and valuing the group at £2.14 billion pounds (HK$25.65 billion). Petropavlovsk said the division had been reorganised under a new subsidiary, IRC. It will also include the Vanadium Pentoxide joint venture, the Titanium Sponge project, infrastructure projects, and the group’s interest in the Giproruda Technical Institute. IRC will be headquartered in Hong Kong and will have Yury Makarov as its chief executive. Petropavlovsk’s iron ore business had been spun off as Aricom, where Jay Hambro was CEO, before being re-acquired last year. The operations, which are estimated to contain over 1 billion tons of iron ore, are in the Russian far east, close to the mainland, a key consumer of the steel ingredient. The company said it expected to buy the shareholdings of the Hong Kong-based investors in IRC at the time of listing to speed up the process and that the majority of investors will instead take part as lead investors in the IPO. The IPO requires final approval from the Hong Kong stock exchange’s listing committee.
Prices for flats in public housing estates are going through the roof, with a Yiu On Estate apartment in Ma On Shan selling for a massive HK$2.07 million. The deal, if completed, will beat the successive records that Hong Kong has seen over the past two months in the housing sector that is supposed to cater for the grassroots. Eddie Hui Chi-man, professor at Polytechnic University's building and real estate department, said such prices go against the raison d'etre of public estates. Hui noted speculation appears to have spread to available-for-sale public estate homes. "The prices are rather unreasonable and beyond the affordability of public estate residents." The investor who sold the apartment in Yiu Chung House, Ma On Shan, also set a record in April when he bought the unit for HK$1.8 million, or HK$2,314 per square foot, according to Century 21. In Sham Shui Po, a Lei Cheng Uk Estate apartment went for HK$1.98 million in late July, beating a record of HK$1.97 million for a unit at Chuk Yuen (North) Estate, Wong Tai Sin, a month earlier. In June 2004 two public housing units breached the HK$1 million mark for the first time. In the first eight months of this year, 172 deals that were registered cost at least HK$1 million each, according to Centaline Property. Of the 31 such deals last month, 12 were short sales. One seller made HK$480,000 within 200 days. Ricacorp head of research Patrick Chow Moon-kit said the price was "normal" and reflects an inflow of the less well-off to the private home market.
China's imports leapt in August, boding well for a strengthening of domestic demand in an economy that has become a major driver of global growth. The unexpectedly big increase in imports also dented mainland’s politically contentious trade surplus ahead of US Congressional hearings next week on whether to punish Beijing for what many in Washington see as an unfairly undervalued yuan. Wang Hu, an economist with Guotai & Junan Securities in Shanghai, said the import figures along with robust car sales data suggested that the country’s economy had touched bottom in August. “As European and US economic growth has slowed since the second quarter, the mainland may again lead the global recovery,” Wang said. Imports jumped 35.2 per cent in August compared with a year earlier, easily beating July’s 22.7 per cent rise and market forecasts of a 26.1 per cent increase, General Administration of Customs data showed on Friday. Annual export growth slowed to 34.4 per cent in August from 38.1 per cent in July but was close to expectations of a 35.0 per cent rise. That left the mainland with a trade surplus of US$20 billion, still eye-popping but down from US$28.7 billion in July and well below the median forecast of US$27.1 billion. Growth had slowed over the first half of the year in response to government steps to rein in bank lending, deter property speculation and close obsolete, energy-guzzling plants in sectors such as steel and cement. Housing prices have been steady since June, the government said on Friday, a sign that its measures to cool the property market have been successful. Heavy industries have also been running down their inventories, further dampening growth, but the import figures suggest this trend was petering out somewhat, said Qian Wang, an economist with JPMorgan in Hong Kong. Financial markets were moderately impressed by the resilience shown by the mainland, which by some estimates has already overtaken Japan as the world’s second-largest economy. Asian stocks outside Japan were up 0.2 per cent, while the Australian dollar, which is sensitive to mainland’s growth prospects, finished at a four-month closing high. Shanghai stocks ended the day up 0.26 per cent. Dong Xian’an, chief macroeconomist with Industrial Securities in Beijing, said the data implied a strong rebound in domestic demand. “A possible reason is that China increased imports of raw materials in the last week of August driven by political pressure as well as low global commodity prices,” he said. Analysts polled by Reuters expect the mainland economy to grow 10 per cent this year before slowing to a 9 per cent pace next year. US lawmakers will hold hearings next week on whether to punish Beijing for what critics say is a policy of holding the yuan down to gain unfair trade advantage. Larry Summers, President Barack Obama’s chief economic adviser, visited Beijing this week for talks with President Hu Jintao and other high-ranking mainland officials. After the meetings, the mainland and the United States both offered an optimistic take on ties that have been jolted by economic and security tensions as well as disagreements over the yuan’s exchange rate. Coincidentally or not, the mainland’s central bank let the yuan climb on Friday to its highest level since it was depegged from the US dollar on June 19. Still, the yuan has gained less than 1 per cent against the US currency since then. Moreover, mainland’s rolling 12-month trade surplus widened in August to US$177.1 billion from US$172.8 billion, handing ammunition to critics who say the country is fixated on exports and is fuelling unhealthy global economic imbalances. “China’s strong export growth and high trade surpluses weaken the argument that China cannot cope with currency appreciation, and should reinforce the case of those policymakers who argue that such a move would help address China’s domestic policy challenges while also reducing the potential for trade tensions,” Brian Jackson, an economist with Royal Bank of Canada in Hong Kong, said in a note.
Representatives from the mainland and Taiwan will negotiate an investment guarantee deal to encourage investment from the mainland, officials and analysts said on Friday. A large portion of institutional investors do not support the slate of director nominees offered by Gome’s jailed founder and largest shareholder, the home appliances retailer said on Friday, as it faces a key vote on the future of its business. Gome Electrical Appliances Holding (SEHK: 0493) has called a special general meeting on September 28 to discuss measures proposed by founder and ex-chairman Wong Kwong-yu, regarding the removal of the current chairman and other board members. Wong is known on the mainland as Huang Guangyu. The meeting will also vote on Wong’s call to cancel a mandate to empower the board of directors to issue additional shares representing up to 20 per cent of the company. “We have spoken with institutions representing 42 per cent of Gome shares and we have yet to talk with a single fund manager who will be supporting Mr. Huang’s nominees to replace our existing board directors,” a Gome spokesman said. The spokesman declined to be identified because of the sensitivity of the matter.
Sept 11, 2010
HK stocks edge higher as Cathay, Li & Fung rally - Hong Kong shares rose on Thursday, with retailer Li & Fung and Cathay Pacific Airways attracting institutional interest and local property plays also finding favor.
A mainland court has sentenced a top provincial official responsible for rooting out corruption to death for accepting more than US$1 million in bribes. Xinhua news agency said on Thursday that 62-year-old Wang Huayuan was sentenced by a court in eastern Shandong province for abusing his position. Wang was given a two-year reprieve, which means if he shows good behaviour the sentence will likely be commuted to a life term. Xinhua said Wang took the cash in exchange for helping corrupt businesses avoid arrests. Calls to the Zaozhuang Intermediate People’s Court rang unanswered on Thursday. Wang was detained last year when Beijing launched a nationwide crackdown on corruption, gangs and violence. The campaign has yielded 256,000 arrests.
Sept 10, 2010
Bus hostage reporters chose 'ratings above lives' - Philippine reporters may have interfered with a police operation when reporting on a bus hostage crisis that killed eight Hong Kong residents, a journalist told an official inquiry.
Shanghai Pharma targets US$1.2b IPO in Hong Kong - Shanghai Pharmaceuticals Holding, the mainland partner of Roche Holding, said on Wednesday it plans to raise at least 8 billion yuan (HK$9.14 billion) through a public share offering in Hong Kong. Shanghai Pharmaceuticals would sell up to a 25 per cent stake in the offering and would use the proceeds to acquire rival companies and sales networks at home and abroad, the company said in a statement to reporters ahead of a news conference. The company’s Shanghai-listed shares, which have risen 12.5 per cent in the past month, closed at 20.81 yuan on Monday before they were suspended from trading pending a material announcement. They are due to resume trading on Thursday. In March, Shanghai Pharmaceuticals acquired two listed companies in a restructuring that enabled Shanghai Industrial Holdings to exit the pharmaceutical business.
Sept 9, 2010
Sept 8, 2010
Masters to set up world's first fung shui body - Some of the city's best known fung shui masters are joining forces to set up the world's first industry association to regulate the profession. The value of Hong Kong's clock and watch exports amounted to HK$24.5 billion in the first half of 2010 – up 24 per cent from the same period last year, Permanent Secretary for Commerce and Economic Development Yvonne Choi said on Monday. “Hong Kong is the second largest exporter of clocks and watches in the world,” said Choi, adding that the industry was helping Hong Kong recover from the global economic crisis. She said Europe, the US and the mainland continued to be Hong Kong’s top three export markets for watches and clocks. Choi made the comments at Hong Kong Watch and Clock Fair, which opened on Monday at the Convention and Exhibition Centre in Wan Chai. Some 700 exhibitors from 15 countries have joined this year’s fair. It will run until Friday.
Sept 7, 2010
A mobile phone used by the hijacker of the tourist bus in which eight Hongkongers were shot dead is missing and could be in Hong Kong, a police hostage negotiator told an inquiry in Manila yesterday. Chief Inspector Romeo Salvador said the phone disappeared the day after the tragedy. One of the members of the inquiry team, Secretary of the Interior and Local Government Jesse Robredo, said records of text messages and calls from the negotiators' cell phones did not match those retrieved from the phone of former policeman Rolando Mendoza. He asked Salvador if all the mobile phones used by the gunman on August 23 had been collected. Salvador said: "The [missing] cell phone was turned over to the homicide [division], which turned it over to a Hong Kong representative [the next day] because homicide thought it was the personal property of one of the hostages. We really tried to look for it because all our calls are recorded there." He said the officers gave the phone, which belonged to an officer, to Mendoza so they could communicate with him. Justice Secretary Leila De Lima, chairwoman of the panel, ordered an aide to write a letter to the Hong Kong authorities asking for the return of the phone. Hong Kong officials refused to comment. The five-member panel looking into the bungled rescue of 15 Hong Kong hostages was also told that during one phone conversation, Mendoza shouted abuse about a corruption investigator, deputy ombudsman Emilio Gonzalez, who was examining the robbery and extortion allegations against him. Mendoza accused Gonzalez of demanding 150,000 pesos (HK$26,200) for a favorable ruling in his case. Salvador said he heard the gunman repeatedly curse Gonzalez on the phone saying: "You were demanding 150,000 pesos for my case. It will be all your fault if all these people die." In separate testimony, Manila vice-mayor Isko Moreno said he was standing next to Gonzalez when Mendoza was abusing him over the phone. Gonzalez said: "Wait, I don't know anything about that." The panel went into a closed-door session with Metropolitan Police Chief Leocadio Santiago. Then Manila SWAT team members who took part in the bungled rescue testified.
Statistics bureau taking closer look at signs of speculation - Following mainland media reports that 64.5 million urban electricity meters registered zero consumption over a recent six-month period, Beijing will start gathering data on unoccupied residential units amid fears of a property bubble. The National Bureau of Statistics will gather data on unoccupied residential property, seen as a crucial indicator of speculation in the property market, in its nationwide population census starting November 1. Ma Jiantang, head of the bureau, said the agency also had drafted a plan to improve its statistical methodology for housing prices, as suspicion grew over the accuracy of data. Andy Xie, a board member of Rosetta Stone Advisors, said the huge quantity of empty apartments represented speculation in current home purchases. Xie estimated the vacancy rate for the mainland's private, commercial housing stock was between 25 per cent and 30 per cent, at least double normal market conditions. Pilot error may have caused the fatal crash in Yichun city, Heilongjiang province on August 24, according to a top aviation official. Li Jiaxiang , chief of the Civil Aviation Administration of China (CAAC), told aviation officials at an internal meeting on August 26 that the crash location suggested the 40-year-old pilot had made a "low-level mistake", China Business reported. The Brazilian-built Embraer E-190 Henan Airlines aircraft landed 1,200 meters short of the runway at Lindu airport in poor visibility, and broke in half and burst into flames, killing 42 of the 96 people on board. Mainland authorities have yet to announce the cause of the first fatal civil aviation accident since 2004, but the newspaper said aviation officials at the internal meeting raised questions about the skills and credentials of the pilot. The newspaper is published under the auspices of the Chinese Academy of Social Sciences. Li asked why the pilot tried to land the plane even though he could not see the lights of the runway. Sept 6, 2010
Sept 5, 2010
Farmers in eastern China are grappling with an explosion in the population of wild boars, who are destroying crops and upsetting the ecological balance, state media said on Friday. The mainland will not publish quarter-on-quarter gross domestic output (GDP) data until 2011, a year later than scheduled, the National Bureau of Statistics said on Friday. Newbridge Capital, the Asian unit of US buyout firm TPG Capital, sold the remainder of its stake in Ping An Insurance (2318) yesterday for HK$9.07 billion, immediately after the insurance giant announced its merger plan with Shenzhen Development Bank. CITIC 1616 set to be telecom flagship - Telecom company CITIC 1616 Holdings Ltd (1883) expects a boost in business after it acquires China Enterprise Communications - the broadband network builder of parent conglomerate CITIC Group. Olympic gold medalist Li Ning is expanding from sportswear into the property market. Li, who is also chairman of Coolpoint Energy (8032), said yesterday he is using the renewable energy firm to launch an eco- city project in Shenyang. "People tend to forget about the environment," he said. Sportswear will remain the focus for Li Ning (2331), the retail giant that the gymnast built, while Coolpoint will be the vehicle for other businesses. The energy firm will acquire Viva China for HK$400 million by issuing 590 million new shares. It will then buy Bright Equal and Union Wealth - two financial holding companies - to gain the rights to develop and manage two plots of land in Shenyang. Coolpoint will also issue one billion new shares to support development of the sites. The city center plots together make up 607 hectares and will be developed into a sports center and green community over five to eight years at a cost of around 40 billion yuan (HK$45.66 billion). Ongoing financing will be sought when needed. Coolpoint will also end up with a 30.9 percent stake in Li Ning. Li will personally hold a 75 percent stake in Coolpoint, which will be renamed Viva China. The company will focus on China, while Li Ning will seek exposure in global markets. Li hopes the expansion will help the sportswear company getting 20 percent of its revenue from overseas.
Sept 4, 2010
Ten top Hong Kong athletes have been given HK$150,000 each in scholarship fees to help them prepare for the London Olympics in 2012, Sports Federation and Olympic Committee of Hong Kong president Timothy Fok Tsun-ting said on Thursday. “The scholarship program would assist our athletes... by providing financial support towards the cost of training, coaching, and medical and scientific monitoring,” Fok said. Under the Panasonic Sports Scholarship Program sponsored by Shun Hing Group, each athlete would receive a total subsidy of HK$150,000 within the next 18 months. The Olympic hopefuls include: Yip Pui-yin, a badminton silver medalist at the 2006 Doha Asian Games; cyclist Steven Wong, who won an East Asian Games gold medal last year; and Jasmine Lai Zin-man, who won silver at the equestrian team jumping event at the Singapore Turf Club Riding Centre.
China's Culture Minister Cai Wu flew into Taiwan on Thursday to become the highest-ranking mainland official to visit the self-governing island in 12 years, officials said. “While here, I will attend a seminar ... and promote cultural exchanges with Taiwan,” he said on arrival at Taoyuan airport outside Taipei. It was the first visit to Taiwan by a Chinese cabinet minister since 1998, when Zhu Lilan, then China’s science and technology minister, travelled to the island. Cai will attend a seminar in Taipei on September 6, according to its organisers the Shen Chun-chih Culture Foundation, a non-profit Taipei-based body focused on cultural exchanges with the mainland. He may meet his Taiwanese counterpart Emile Sheng, the chairman of the island’s Council for Cultural Affairs, the organisers said. The visit comes after Taiwan’s parliament last month approved a trade agreement with China – by far the island’s most wide-ranging accord yet with the mainland.
Sept 3, 2010
Hong Kong Financial Secretary John Tsang back from Taiwan with visa FREE deal - Taiwan offered free entry permits online to returning Hong Kong visitors as Financial Secretary John Tsang Chun-wah wound up his four- day visit to the island. However, Hong Kong did not immediately reciprocate, with Tsang saying the possibility will be studied further. Tourists help retail sales hit new heights - Hong Kong retail sales grew for an 11th consecutive month in July amid an economic recovery aided by record tourist arrivals.
The condition of teenager Jason Leung Song-xue - who suffered serious head injuries in Manila last week - has stabilised after brain surgery, Tuen Mun Hospital said on Wednesday. A PhD student was sentenced to four years jail on Wednesday after he was convicted of conspiracy to blackmail a 76-year-old religious leader for HK$6.3 million. Customs officers on Tuesday raided 17 shops across Hong Kong and seized a large quantity of counterfeit leather goods, Trade Descriptions Investigation divisional commander Koon Hon-chuen said on Wednesday. He said 100 customs officers had discovered some 4,500 fake leather goods in retail outlets in Mong Kok, Wan Chai and Causeway Bay. The goods were worth about HK$5 million, Koon said. Customs officers also arrested three men and 23 women, aged between 19 and 45. Koon said some shop staff had claimed the leather goods were made in Britain. But investigations revealed they were from the mainland. He said a closer examination showed they were generally of poor quality. “We found many bags had been returned by customers with defects in their metal zippers and thread,” added Koon.
China launched live-fire naval exercises in the Yellow Sea on Wednesday after voicing opposition to similar war games to be staged there this month by the United States and South Korea. The Beihai fleet of the navy of the People’s Liberation Army will conduct a “live ammunition drill” until Saturday in waters off the east coast near the city of Qingdao, Xinhua news agency reported. The report said many of the planes, vessels and battlefield weaponry to be used in the exercises were unveiled at the National Day military parade on October 1 last year, when China celebrated 60 years of Communist rule. “This is an annual routine training, mainly involving the shooting of shipboard artillery,” Xinhua had said in a previous report, citing China’s defence ministry. The United States and South Korea are set to carry out a new round of joint drills in the Yellow Sea from Sunday in another show of force against communist North Korea following the sinking of a South Korean warship in March. Any military drills involving the United States in the Yellow Sea are a sensitive issue because of the area’s proximity to China and the disputed maritime boundary between North and South Korea. China has bristled at the idea of a US aircraft carrier group patrolling waters near its coast, although the US military has said this month’s planned anti-submarine exercise would not involve a carrier. As China launched its war games, PLA commander Zhang Youxia met in Pyongyang with North Korea’s number two leader Kim Yong-Nam and pledged to step up military exchanges, Xinhua said. The United States and South Korea staged massive joint naval and air exercises in July in the nearby Sea of Japan (East Sea), which also drew criticism from Beijing – North Korea’s closest ally and trade partner. Seoul and its allies say the sinking of the South Korean corvette the Cheonan in March was caused by a North Korean torpedo attack, but Beijing has refused to join in international condemnation of Pyongyang over the incident. China staged its own naval, air and artillery exercises in late July, though it was not clear if the drills had been pre-planned or were in response to the US-South Korea manoeuvres. Last month, the South staged its largest-ever anti-submarine drill including live-fire training near the disputed Yellow Sea border, prompting a North Korean artillery barrage fired into the sea. Also in August, the United States and South Korea held annual 10-day joint war games on land that involved more than 80,000 troops. Mongolian coking coal producer Mongolian Mining plans to raise about US$700 million through an initial public offering on the Hong Kong stock exchange, according a term sheet. China Strategic Holdings (0235) has failed to acquire Taiwan's Nan Shan Life Insurance - and it is believed that politics rather than regulatory hurdles was the stumbling block. Taiwan's Ministry of Economic Affairs announced yesterday that the Financial Supervisory Commission rejected the US$2.15 billion (HK$16.77 billion) bid by China Strategic and Primus Financial for the Taiwanese unit of American International Group. The China Strategic-led consortium has a month to appeal. It also agreed with AIG to extend a deadline for any deal to October 12. Since the group agreed to buy Nan Shan in October, many Taiwanese have protested over fears China Strategic may be funded by Beijing. Analysts said the case turned political, with even the public posts of key members of the consortium coming under scrutiny. To smoothen the path for the deal, China Strategic vice chairman Raymond Or Ching-fai resigned from the Chinese People's Political Consultative Conference in June. Chairman Frederick Ma Si-hang is a former commerce and economic development minister. Sources said due to political concerns of Taiwan authorities, Or and his management team, as well as AIA, were forced to turn passive. Opposition also emerged within Nan Shan over the deal, Taiwan's United Daily News reported. The newspaper said the transaction would not be welcomed as the rights of employees and policyholders might be at risk. Taiwan's securities regulator, which examined the case for 10 months, set five criteria, two of which were not met, said FSC vice chairman Wu Tang-chieh. They were the ability to raise capital in the future and a commitment to Nan Shan's long-term operations. "From the information submitted by the [prospective] buyers, other than the US$325 million cost of purchase, we could not see further arrangements for possible expansion of capital in the future," said Wu. Sept 2, 2010
An all-star group of artists has failed in its bid to turn the former married police quarters in Hollywood Road into a creative cluster. The committee vetting applications for the project has shortlisted a foundation set up by a Sino Land executive and another established by a newspaper boss, leaving the Hong Kong Institute of Contemporary Culture out of the running. "The institute's creative elements are outstanding, but in other aspects it is outshone by the others," a committee member said. The committee comprises building professionals together with industry and community representatives. The member said the proposal lagged behind the others particularly in management capacity. The shortlisted bidders - the Hong Kong Heritage Conservation Foundation, set up by Sino Land executive director Daryl Ng Win-kong, and the Musketeers Education and Culture Charitable Foundation, formed by Hong Kong Economic Times Holdings chairman Lawrence Fung Siu-por - have yet to reveal their proposals. The member said the institute's proposal could be reconsidered if the shortlisted ones were found unsatisfactory. Honorary institute chief executive Ada Wong Ying-kay said last night she would not comment until she was informed officially about the decision, which was made at a meeting on Monday. Criteria considered by the vetting committee included reflection of historical value and technical aspects, creative industries' value and social value, financial viability and management capacity. The institute announced last week that it planned to invite 30 top arts and design figures as anchor tenants. The star would-be tenants included actor Daniel Wu Yin-cho, G.O.D. founder Douglas Young and Brian Tse Lap-man and Alice Mak Ka-bik, creators of the McDull stories and cartoons. It said the key players had promised to mentor budding talents in their arts. The Musketeers earlier said it would partner with the Polytechnic University, the Hong Kong Design Centre and the Design Institute. The successful operator will take a 10-year tenancy to set up a creative area at the site, which is composed of two vacant police quarters blocks and the remains of the Central School, founded at the site in 1889.
Sept 1, 2010
Philippine authorities will send investigators to Hong Kong this week to collect statements from survivors of last week's tour bus hijacking. School pulls out all the stops to help orphans learn to start new life - Two siblings orphaned by the Manila hostage tragedy have been promised help by their school, including 15 peer supporters, ahead of tomorrow's start of the new school year. Tracey Wong Cheuk-yiu will be in Secondary Five, while her brother Jason Wong Ching-yat will be in Secondary One. Both survived the bloodbath that claimed the lives of their father Wong Tze-lam, 51, mother Yeung Yee- wa, 44, and aunt Yeung Yee-kam, 46. Whether the pair can attend school tomorrow depends on the results of an evaluation of their mental status by the Social Welfare Department, said Daniel Wong Yip-cheung, principal of the Tsuen Wan Government Secondary School. The entire school is geared to help the siblings cope with their first school year without their parents. Fifteen schoolmates will be peer supporters for 15-year-old Tracey, he added. "We've taught them in a counseling workshop last week how to help Tracey cope with the trauma." The school will organize a life education seminar tomorrow and advise students not to dwell too much on the hostage-taking incident with Tracey and Jason, 12. In a statement posted on its website, the school also said: "The Parent- Teacher Association, the Alumni Association and alumni would also like to express their deepest sympathies to them and are prepared to provide all possible assistance." Donations have continued to pour in, with several groups expressing willingness to pay for the orphans' school fees until they graduate from university. These include the Jockey Club's Charities Trust, the Community Chest and MTR Corp, where their father worked. The Tung Wah Group of Hospitals aims to collect more than HK$1 million for its newly-launched special education fund for the Wongs as well as three other teenage survivors who lost a parent in the tragedy. The Housing Department have also allocated a public housing flat in King Lam Estate, Tseung Kwan O, for the siblings who are temporarily staying with their aunt who lives in the block. A spokeswoman from the Education Bureau, meanwhile, said the government will monitor the academic progress of the Wongs and two other survivors who are studying in local schools. The fifth teen survivor, Jason Leung Song-xeu, studies in Canada.
The Air Pollution Index recorded "very high" levels across Hong Kong on Tuesday, a spokesman for the Environmental Protection Department said. Financial Secretary John Tsang Chun-wah and his high-level Hong Kong delegation yesterday held a landmark meeting with senior government officials in Taiwan, paving the way for annual discussions.
Taiwan waits on visa-free deal to Hong Kong - The government is exploring the possibility of granting Taiwan visitors visa- free entry, according to the finance chief. However, discussions between John Tsang Chun-wah and Taiwan officials on the issue failed to reach a consensus. Yesterday's meeting in Taipei was the first between the Hong Kong-Taiwan Economic and Cultural Cooperation and Promotion Council, and the Taiwan- Hong Kong Economic and Cultural Co- operation Council. Tsang, honorary chairman of the Hong Kong council, and Mainland Affairs Council minister Lai Shin-yuan were both present at the meeting. Tsang - the highest ranking SAR official to visit Taiwan - will return to Hong Kong today after a four-day trip. He is scheduled to meet Taiwan Premier Wu Den-yih before he sets off. Tsang said the visa issue will be further discussed on bilateral platforms. "We will look into the problem. If both sides can show sincerity on the issue, the problem can be resolved," he said. Currently, Taiwan visitors must pay visa fees ranging from HK$50 to HK$650 to visit the territory. Following yesterday's meeting, the two governments said a series of economic agreements have been reached. That includes a "pragmatic" approach on issues such as cooperation on banking and financial regulations, shipping and air transport arrangements. The Hong Kong Tourism Board will set up an office in Taipei to promote tourism exchanges, it was agreed. The two sides also agreed to hold regular meetings to promote trade and investment. The next meeting will be in Hong Kong next year. Recent media reports suggest Taiwan plans to let Hong Kong and Macau residents apply for entry permits online for free. The permits would be valid for three months and allow multiple entries for up to 30 days, the reports said. But Taiwan officials said they have not made any such announcement.
Taiwan regulators rejected AIG’s planned US$2.2 billion sale of its Taiwan unit to a mainland-related group, citing regulations on mainland investment.
The government's efforts to curb rising property prices are beginning to work, the nation's top official paper said on Tuesday, citing shrinking transaction volumes.
Evergrande net soars five-fold - Evergrande Real Estate (3333) saw net profit soar nearly five-fold to 2.5 billion yuan (HK$2.86 billion) in the first half - fueled by record home sales.
Aug 31, 2010
The central government announced a global talent search on Monday to fill top posts at 12 major state-owned companies in its latest effort to improve performance at huge but inefficient government firms. State industries have hired managers from abroad in the past but the announcement on Monday by the Cabinet agency that runs the country’s biggest government companies appeared to be most sweeping recruitment effort to date. The State Asset Supervision and Administration Commission wants “talented candidates from home and abroad” to help strengthen and develop companies, said a two-page advertisement in the China Daily, the main government newspaper aimed at foreign readers. The posts include general managers of the State Nuclear Power Technology, the China State Construction Engineering and automaker Dongfeng Motor (SEHK: 0489). Some posts specified Chinese citizens were preferred, indicating companies were trying to lure back Chinese executives abroad. But others said they would consider managers of any nationality. Last year, a major aerospace firm, state-owned Aviation Industry Corp of China, announced a similar worldwide search for managers and said it would consider foreign nationals. After a six-month search, the company hired six Chinese executives. Some of the mainland’s top state-owned banking, oil, telecommunications and other companies are among the largest entities in their global industries due to their protected positions in the huge domestic market. But the government acknowledges they trail their global rivals in technology and efficiency. Other positions advertised on Monday included general manager of Chinatex, a major textile producer; deputy general managers at China National Administration of Geology, China National Gold Group and China Guangdong Nuclear Power Holding and other jobs at China Shipping (Group), China Resources (SEHK: 0291) (Holdings) and China National Building Material Group. Closer contacts between retired Taiwanese generals and the mainland authorities have sparked concerns in Washington, the island's major arms supplier, media and an official said on Monday. The former generals started visiting China years ago, but with Taiwan’s mainland ties improving rapidly since 2008, the trips have become so frequent that they have drawn US attention, the Taipei-based China Times said. “The United States has voiced its concerns to [Taiwan’s de facto ambassador] Jason Yuan and voiced the hope that Taiwan can come up with an explanation,” the paper said, without naming the source. It said Washington was especially concerned if such contacts may endanger long-standing military co-operation projects with Taiwan. Washington is also wondering if the visits mark the beginning of discussion about military exchanges and the establishment of confidence-building measures between the two former cross-Strait rivals, it said. “It would be understandable if the United States voices such concerns, given the fast improving ties between Taipei and Beijing,” Chen Wen-yi, deputy chief of the foreign ministry’s North American Affairs Department, told reporters. But he said the concerns were unnecessary as the visits were not authorised by the government. China will launch an inquiry into whether to impose countervailing duties on potato starch imports from the European Union, the commerce ministry said on Monday.
Lenovo has said it will launch a video games console this year to vie with Nintendo’s Wii, Microsoft’s XBox 360 and Sony’s PlayStation 3 in the booming motion-gaming market.
*News information are obtained via various sources deemed reliable, but not guaranteed
|
|
|
Skype - FREE
Voice Over IP
Johnson Choi on Hong Kong
investments with Hawaii filmmakers - Asia in Review host Jay Fidell
in a discussion with Johnson Choi, President of the Hong Kong.China.Hawaii
Chamber of Commerce on his recent (July 2010) trip to Shanghai and Hong Kong and
on Hong Kong investments with Hawaii filmmakers
View China 60th
Anniversary Video and Photo online
Holidays Greeting from President Obama & Johnson Choi
HK film eyes Oscar nomination - A
local film that raised public concern about preserving the historic old Wing Lee
Street, in Sheung Wan, was picked yesterday to represent Hong Kong among films
from which five nominees will be chosen to battle for the Oscar for best
foreign-language film at next year's Academy Awards. Echoes of the Rainbow,
starring Simon Yam Tat-wah and Sandra Ng Kwan-yu, won a Crystal Bear Children's
Jury prize at February's Berlin Film Festival, in Germany, and also four prizes
- including best screenplay and best actor - at the 29th Hong Kong Film Awards.
The 1960s-set film - sponsored by the Hong Kong Film Development Council - tells
the story of a shoemaker and his family, whose eldest son becomes ill with
leukaemia. It was voted for unanimously by all 11 board members of the
Federation of Motion Film Producers of Hong Kong to run for the 83rd Oscars.
Plans to redevelop the rundown street used in the film were shelved following
the film's success. The American Academy of Motion Picture Arts and Sciences
will hold a screening of foreign films in the US next month before selecting the
five final nominees for the ceremony on February 27. Producer Mabel Cheung
Yuen-ting said: "I am very honoured the film will represent Hong Kong. But
there's still a long way to go." Federation chairman Crucindo Hung Cho-sing said
he was confident the film would be among the final five nominees. "It had good
box office, was well-received by audiences and did well at festivals. It
reflects the real life of lower classes in the 1960s and truly represents Hong
Kong," he said.
Jewellery and watch retailer Chow Tai
Fook plans to double its outlets on the mainland to 2,000 in the next decade,
with half of the new shops located in small cities. The Hong Kong-based company,
which is privately held by tycoon Cheng Yu-tung, opened its 1,000th store on
Qianmen Street in Beijing yesterday. Managing director Kent Wong Siu-kei said
the jeweller would open another 1,000 outlets on the mainland before 2020. Half
of them will be in first- and second-tier cities, with the rest to be located in
third- and fourth-tier cities close to rural areas. "The market [in smaller
cities] is vast considering the growing revenue in rural areas and the central
government's continuous efforts to drive up domestic consumption," he said. Chow
Tai Fook, which began as a small jewellery shop in Macau, has become the biggest
jewellery retailer in the nation under the leadership of Cheng, who is also
chairman of New World Development. The company's closest competitor on the
mainland by sales is another Hong Kong jewellery retailer, Chow Sang Sang. Chow
Tai Fook already has a network established in the mainland's first- and
second-tier cities. It operates about a third of its shops directly, while the
rest are run as franchises. "We estimate the market for jewellery and gold
trading [on the mainland] will grow 20 per cent annually over the next five
years," Wong said. Jewellery and watches are among the most sought-after goods
for mainland tourists visiting Hong Kong. The company recorded double-digit
growth in same-store sales from January to August this year. It said its most
popular product by trade volume is gold, followed by gems, jade and pearls.
Asked if fast expansion on the mainland would affect the company's Hong Kong
business, Wong said it would likely benefit the brand. With more mainland
outlets, he expects more mainland customers to seek out the brand when they
visit Hong Kong. Tax-free goods and a good shopping environment would bring more
mainland customers to the retailer's Hong Kong outlets, he said. He noted the
culture of giving jewellery on the mainland was similar to that in Hong Kong.
Mainland couples exchange wedding rings, he said, while diamond rings and
accessories made of gold are given to mark an engagement. "Cheap prices are no
longer the most important thing to lure buyers here. Mainland tourists are
paying more attention to the shopping environment and services," Wong said. Chow
Tai Fook's new shop in Beijing has a floor area of 28,000 square feet, the
biggest of all its mainland shops. It spans two adjoining four-storey buildings,
with one for jewellery and the other for watches. As well as its outlets on the
mainland, the company also owns almost 100 shops in Hong Kong, Macau, Taiwan and
Malaysia. It plans to enter the Singapore market soon.
US brand to target China riches via auctions from Hong Kong - Sotheby's realty
arm eyes luxury market - Samson Law, managing director of Sotheby's
International Realty in Hong Kong. A surge in demand for luxury homes and
apartments in Hong Kong has lured US-based estate agency franchise Sotheby's
International Realty to enter the market. Local property broker Samson Law Lai-choi,
owner of estate agency Hong Kong Homes, has secured a 25-year master franchise
agreement to develop the Sotheby's brand in Hong Kong. "Everyone knows the name
Sotheby's," Law said. "We have already recruited 20-plus sales staff and aim to
increase this to 40 within one year." Local rivals said they were not in awe of
their new big-brand international competitor. "Hong Kong is a mature market. It
will prove difficult for a newcomer to make an impact. It is going to be a tough
job for them," said Joseph Tsang Hon-ping, international director and head of
capital markets at Jones Lang LaSalle's Hong Kong office. "We had been
approached by the US company for business co-operation opportunities a few years
ago. But we did not feel comfortable with the business model." Other property
agents said they did not feel threatened by the newcomer. "We have more than 10
branches in the Mid-Levels and Island South. Can a company with only an office
address compete with us? It will not be easy," Vincent Chan Kwan-hing, executive
director of Midland Realty, said. Louis Chan Wing-kit, executive director of
Centaline Property Agency, said there was room in the market for more players,
and new entrants would not affect its leading position. He said Centaline was
responsible for settling some 25 per cent of luxury transactions valued at HK$20
million or above. "We have established a very strong network of street shops and
a database. That results in an operational cost of more than HK$100 million
every month." Data from Centaline shows there were 5,913 properties sold for
HK$10 million or above in the first eight months. This represented an increase
of 63.34 per cent compared with the same period last year. The value of
properties sold amounted to HK$132.8 billion, up 78.85 per cent. With
commissions on luxury sales of 1 to 2 per cent, sales in the first eight months
were worth HK$1.3 billion to HK$2.65 billion for the agents. Law, who also owns
Proway, a company providing relocation services, said his contract with New
Jersey-based Realogy Corp, which owns Sotheby's franchising rights, was signed
in April but it will be officially opened next month. The opening was delayed,
he said, because of lengthy negotiations with the franchise owner over
differences in business operation between Hong Kong and the United States. He
said he would continue running Hong Kong Homes and Proway but looked forward to
adding the Sotheby's franchise to his stable. "We will not try to follow the
approach of local agents such as Centaline and Midland and open street shops as
it would not be easy to compete with them on this basis," he said. Instead, he
planned to build on Sotheby's high-profile auctions to market the firm's
property services to wealthy clients. "More than 60 per cent of buyers at
Sotheby's auctions are mainlanders. We will be allowed to set up a booth in the
auction hall areas to market our service. That will help us reach out to the
market," he said. Law said there would be no conflict of interest between Hong
Kong Homes and the Sotheby's franchise since the former would focus on leasing
while Sotheby's would focus on sales. He declined to provide details of the
total investment he would make to support the franchise. The path to next
month's opening has not been easy, Law said. "We had targeted to begin operating
the business in July but were delayed because we were obliged to have a long
negotiation with the franchise owner about operating styles in Hong Kong," Law
said. "For example, we wanted all photos of properties that we publish to carry
a watermark to prevent other agents from using the photos and breaking our
copyright over them." But this is not the practice in the US, where an agent
gets exclusive rights to market a property and then subcontracts the selling
rights with others that share the commission if they sell the property, he said.
But in Hong Kong, vendors can appoint several agents to sell a property. They
compete with each other and do not have to share commission, he said. "There are
differences in how the business operates and it took time to explain this," Law
said. "Can we do it? Ask me again in three years and I'll tell you."
China*:
China's central bank on Wednesday pledged to increase flexibility of the yuan
exchange rate as US lawmakers were set to vote on legislation that could punish
Beijing for alleged currency manipulation. The People’s Bank of China promised
to continue to implement an “appropriately loose monetary policy” and “increase
currency flexibility”, according to a statement on its website. The statement
also vowed to “gradually improve the exchange rate setting mechanism”. The
central bank’s wording was almost identical to that used in a similar pledge in
June, since when the yuan has strengthened less than two per cent against the
greenback. The US House of Representatives was to vote later Wednesday on
legislation to expand the powers of the US Commerce Department by allowing it to
impose tariffs when another nation is found to be manipulating its currency’s
value. The measure enjoyed strong support from President Barack Obama’s
Democratic allies and their labour union supporters, as well as his Republican
foes, and was expected to win approval, according to several leadership aides.
US lawmakers have redoubled their accusations that Beijing keeps the yuan – and
therefore Chinese exports – artificially cheap, driving US manufacturers out of
business and costing thousands of US jobs. If the measure clears the House, the
Senate could take up a companion bill. The vote comes after weeks of intense
lobbying by Washington for Beijing to let the currency appreciate, with Obama
making his case to Premier Wen Jiabao on the sidelines of the UN General
Assembly last week. Before its June vow to let the yuan trade more freely, the
currency had been effectively pegged at about 6.8 to the dollar since mid-2008.
Hang Lung plays 'green' card in shopping malls - Developer seeks certification
on energy features - A drum dance marks the groundbreaking ceremony for the
environmentally friendly Olympia 66 centre in Dalian, Liaoning, on Monday.
Building "green" features into new shopping centres on the mainland is becoming
standard practice for developers seeking a selling edge in the highly
competitive market, consultants say. Among the drawcards of such environmentally
sensitive projects is a big reduction in energy bills, achieved by using special
glazing that controls heat transfer through windows, as well as improved
insulation methods. "In dollar terms, we will achieve savings of about 10
million yuan (HK$11.57 million) on electricity bills at the Olympia 66
development in Dalian," said Vincent Tse, managing director of buildings for
China at Parsons Brinckerhoff, which is a consultant to the project. Hang Lung
Properties (SEHK: 0101) appointed Parsons Brinckerhoff as a consultant on its
mega shopping centre in Dalian, Liaoning, to help it qualify for gold-level
certification under the Leadership in Energy and Environmental Design (Leed)
scheme. The international benchmark for sustainable architecture is issued by
the US Green Building Council. A gold-level certification assures tenants and
property portfolio managers that the building uses resources more efficiently
when compared to conventional buildings and may also provide healthier work and
living environments, which contributes to higher productivity and improved
employee health and comfort. Olympia 66 would be equipped with ground-source
water heat pumps that extract and dissipate heat from the building into the
ground in summer and vice versa in winter, Tse said. "As Dalian is a port city,
temperatures often drop below zero in winter. Using ground-source water [heat
pumps] will help consume less energy," he said. The seven-storey, 221,900 square
metre Olympia 66 will be completed in 2015. Last week, Hang Lung announced that
its Palace 66, which opened on July 26 in Liaoning's Shenyang, had attained a
gold-level Leed Core and Shell Development Certification. It is the first
completed shopping centre on the mainland to have attained such certification.
The developer has embarked on a HK$40 billion plan to build seven shopping
centres outside Shanghai. That includes malls in Jinan, Shenyang, Tianjin and
Wuxi. In Shanghai, it owns Plaza 66, which was completed in 2001, and The Grand
Gateway, which was opened in 2005. To improve access to Olympia 66, the
developer is in talks with the city government to build an underground tunnel to
link the mall with the nearest station along the metro system, now under
construction. "We have made the suggestion to the city government and reserved
an exit for future use," said Chapman Lam, divisional director for transport
engineering at MVA Hong Kong. MVA is the transport consultant for Olympia 66.
Lam said the metro was due to open in 2013. "Without the tunnel, shoppers would
have to walk for several minutes on the ground level from the metro station to
Olympia 66. It would be an unpleasant walk in winter, even for a short distance,
as temperatures in Dalian are freezing." William Ko, executive director of Hang
Lung, said it was too early to estimate the volume of shopping traffic likely to
be attracted to Olympia 66. By way of example, he said, its 130,000 sqmetre The
Grand Gateway in Shanghai drew about 500,000 visitors last weekend.
Photo taken on Sept. 29, 2010 shows the
exterior appearance of the Canton Tower in Guangzhou, south China's Guangdong
Province. The 600-meter-high Canton Tower began its business operations on
Wednesday.
A photomontage shows the
610-meter-high new Guangzhou TV Tower illuminated in Guangzhou, South China's
Guangdong province, Sept 19, 2010. The tower, officially called “Guangzhou
Tower”, with a 450-meter tower and a 160-meter mast, formally opened to the
tourists on Sept 29.
A staff member shows two
commemorative gold bars for Chang'e-2 lunar probe in Beijing, capital of China,
Sept. 28, 2010. A press conference for the commemorative gold bars for Chang'e-2
lunar probe was held here Tuesday. China is preparing for the launch of
Chang'e-2 lunar probe.
China's BYD shares up on talks on
Warren Buffett stake - American billionaire Warren Buffett waves as they receive
a gifts from Tibetan women at an event by Chinese carmaker BYD in Beijing on
Wednesday. Billionaire investor Warren Buffett has discussed the possibility of
raising his 10 per cent stake in car and battery maker BYD, a Chinese newspaper
reported on Wednesday, sending BYD shares up over 4 per cent. In the past week,
analysts and investors have speculated that Buffett, who is making a closely
watched tour of China with former Microsoft Chairman Bill Gates, might instead
sell down his stake after the automaker hit several bumps on the road. That
included sliding sales, delayed plans to export its electric cars and a legal
dispute with the Chinese government over land it wants to develop. “We wouldn’t
comment on what we are going to do,” Buffett said on the sidelines of an event
in Beijing when asked about the prospect of increasing his BYD stake. BYD shares
rose as much as 4.4 per cent in Hong Kong, outpacing the broader Hang Seng
Index’s 1.3 per cent rise. China Business News cited BYD sources as saying
Buffett had a closed-door meeting on Tuesday night with BYD officials in which
the possibility of increasing the 10 per cent stake in BYD held by Buffett’s
Berkshire Hathaway was the major topic. But it was unknown whether they had
reached any conclusion, the report added. “This is a good thing for BYD,” said
Zhang Jing, an analyst at Phillip Securities (HK) Ltd. “If Buffett raises his
stake at the current high price levels, that would be a vote of confidence, for
sure.” Gates and Buffett, the world’s second- and third-richest men,
respectively, have travelled to several Chinese cities this week, meeting with
Chinese businessmen and researchers, and will attend a dinner on Wednesday
evening during which the two will speak to some of China’s growing crop of rich
entrepreneurs about charity. Buffett, 80, is visiting China almost two years
after Berkshire’s affiliate MidAmerican Energy bought 10 per cent of BYD. That
investment has yielded enviable returns, with the stake now worth US$1.45
billion, over six times the original US$230 million purchase price. Still, that
value is far below the peak of US$2.5 billion reached last October. Buffett and
Gates were in Beijing on Wednesday to attend a BYD ceremony for the launch of
the company’s first premium multipurpose vehicle (MPV). The car, the M6, will
allow the car maker to tap the fast-growing premier MPV market, now dominated by
General Motors and Honda Motor. BYD’s portfolio now includes sedans only. BYD
shares have risen about 19 per cent in the past two weeks on Buffett’s visit.
The stock’s performance lags that of its main rivals, however. Earlier on
Wednesday, car maker Brilliance China (SEHK: 1114) hit a record of HK$5.52 on
expectations of higher car sales in the coming months, Geely rose nearly 4 per
cent and Dongfeng Motor Group (SEHK: 0489) surged nearly 7 per cent. “The stock
looks expensive but Coca-Cola also grew up from a small company,” said Zhang.
Shares of BYD, which stands for “Build Your Dreams”, are trading at around 25
times this year projected earnings.
China Telecom (SEHK: 0728) is stepping
up its expansion across Asia, ahead of its two bigger mainland rivals, with a
slate of new infrastructure investments in Hong Kong and Singapore. Deng
Xiaofeng looks to growth in data centres. China Telecom (SEHK: 0728) is stepping
up its expansion across Asia, ahead of its two bigger mainland rivals, with a
slate of new infrastructure investments in Hong Kong and Singapore. The
country's leading fixed-line network operator has made an initial investment
worth HK$200 million to build two new internet data centres in the two cities,
and link these to its existing network of 260 data centres across the mainland,
according to Deng Xiaofeng, chairman and chief executive of subsidiary China
Telecom (Hong Kong) International. Data centres are specialised facilities,
where operators house large enterprises' server computers and storage systems,
with dedicated power, cooling, security, technical support and high-speed
internet connections. "With the current growth in e-commerce, China Telecom is
committed to connecting Chinese enterprises to the world and supporting
multinational corporations develop their business in the Asia-Pacific region,
especially in China," Deng said. Its target customers include enterprises in the
banking and financial services, transport and logistics, internet and media
sectors. According to research firm Frost & Sullivan, total revenue from the
data centre co-location and managed hosting services market in the Asia-Pacific
will amount to US$9.18 billion this year and reach US$10.68 billion next year.
Leading data centre hubs in the region are Japan, Australia, Singapore, Hong
Kong and, to a lesser degree, mainland China, India and Malaysia. The largest of
these hubs, Japan, accounted for more than 71 per cent of the estimated US$8
billion in data centre services revenue in the region last year. The internet,
media, telecommunications and information technology industries together account
for up to 45 per cent of data centre services demand in the Asia-Pacific. These
sectors are expected to continue to be the biggest users of data centre space
over the next four to five years. Demand for data centre hosting currently
exceeds supply, according to Frost & Sullivan. "In fact, over 80 per cent of the
major data centres in the Asia-Pacific are running at close to 90 per cent
capacity and space is at a premium," it said. Amid the growing regional
opportunity, Deng said China Telecom "will increase investments in designing and
building data centres". He said there could be further expansion first in Hong
Kong and Singapore, before China Telecom decides to invest in new data centres
in other Asian countries. China Telecom has set up a 27,000 square foot data
centre in Chai Wan, at premises run by iAdvantage, a unit under Sun Hung Kai
Properties (SEHK: 0016)' technology arm SUNeVision. In Singapore, the carrier
has established a 3,500 square foot operation inside a facility run by data
centre partner Equinix. Following the 2008 telecommunications industry
restructuring on the mainland, China Telecom, China Mobile (SEHK: 0941) and
China Unicom (SEHK: 0762) are all to become integrated fixed-line and wireless
network operators. Deng said China Mobile and China Unicom are also keen to
expand their services outside the mainland, but China Telecom has been well
ahead in developing its business across Asia.
Japan Foreign Minister
Seiji Maehara said Wednesday that China had revealed its "essential character"
to the world in a bitter territorial dispute with Tokyo. Maehara said: “The
escalated action China has taken... is quite regrettable”, referring to the
dispute, which started with Japan’s arrest of a fishing boat captain in disputed
waters on September 8. A Japanese coastguard vessel and a Chinese fisheries
patrol ship sail side by side in the waters near disputed Senkaku or Daioyu
Islands in southern Japan. “I think not only the Japanese, but people in the
whole world saw a part of China’s essential character,” the recently appointed
foreign minister told a small group of reporters, without elaborating. Since the
spat started, Beijing has issued diplomatic protests and snubs but also taken
economic steps, such as slowing trade and tourism and, according to industry
sources, the exports of crucial rare earth metals. “It is harmful to the world
that the world’s second- and third-largest economies are clawing at each other’s
throats as economic activity contracts,” said Maehara, who took his post less
than two weeks ago. “It’s important that the two countries build a win-win
situation while considering the mutual benefits in a cool-headed way,” he said.
“Over the long term, I’m optimistic, although I don’t know how much time it will
take” to restore ties, added Maehara, a China hawk who has also warned about the
level of China’s defence spending. Maehara reiterated that the disputed islets –
called Senkaku in Japan and Diaoyu in China – “are Japan’s own territory”. To
back up his point, he referred to a 1953 article by China’s state-run People’s
Daily that said Japan’s Okinawa islands “include the Senkaku islands” and an
official map of China from 1960 that excluded the islands. Amid the spat between
the Asian giants, their worst in years, and before Japan released the skipper
last week, China detained four Japanese nationals, accusing them of illegally
filming a military facility. Maehara repeated Japan’s position that the arrests
are unrelated to the wider row, but added: “What I am most interested in is
about the situation of the four Japanese.” He said that Japanese diplomats were
due to hold their second meeting with them later in the day.
More than 200,000 Apple iPhone 4s have
been snapped up in China within days of going on sale while waiting lists
stretch to the end of October, state media reported on Wednesday.
Wong fails to win back control of Gome board - Retailer's shareholders reject
removal of chairman, director - A video image of Gome chairman Chen Xiao
addressing shareholders yesterday. The resolution to remove Chen was rejected by
51.89 per cent of shareholders. Jailed billionaire Wong Kwong-yu's bid to regain
management control of Gome Electrical Appliances Holding (SEHK: 0493) failed
yesterday, with shareholders rejecting a bid to sack the company's chairman and
install Wong's sister. Wong's attempt to remove Chen Xiao as well as another
director and replace them with his sister Huang Yanhong and lawyer Zou Xiaochun
were voted down by shareholders of the nation's second-largest electrical
appliance retailer. The failure by Wong to get his nominees on the board is seen
as a victory for US private equity fund Bain Capital, the second-largest
shareholder of the company, which supported the board. The resolution to remove
Chen was rejected by 51.89 per cent of shareholders in a Hong Kong meeting. The
move further shores up Bain's presence in the company, in which it now holds a
stake of nearly 10 per cent, but has raised concerns on the mainland about
foreign influence over one of the country's top retail brands. Wong did not lose
all the battle. A general mandate that would have allowed the current board to
issue new shares without shareholder approval was voted down. Issuing new shares
would dilute Wong's 32.5 per cent stake in Gome and threaten his position as the
company's largest shareholder. More than 100 investors attended the meeting in a
Causeway Bay hotel, while others cast their votes by proxy. Votes representing
1.6 billion shares or 81 per cent of the total shareholdings were cast.
Shareholders rejected Wong's proposal to remove Chen and executive director Sun
Yiding as executive directors from the board and supported the re-election of
the three representatives of Bain Capital as non-executive directors. Wong's
family issued a statement saying it was disappointed to lose the fight over the
directors. "We remain resolute in our belief that without the contributions of
the founding shareholders [the Wong family], the company has strayed from the
path of profitable growth," the family said. "Nothing has changed about our
concerns regarding the unrepresentative nature of the board, and we reserve all
our rights to take appropriate action to protect our interest and those of other
shareholders." Gome's board said the result was "a clear endorsement of the
management's track record over the past two years" and trust in the ability of
the management. It said stability was in the best interest of all shareholders
and it would maintain dialogue with all shareholders including Wong.
Hong Kong's MTR Mass Transit
Construction blasting is so quiet tai chi classes can go on - Construction of
the new shaft at Sai Ying Pun MTR station. A new technique using water to dampen
the impact of underground blasting for a new MTR station has ensured people
exercising and practising tai chi up above every morning in King George V
Memorial Park, in Sai Ying Pun, on Hong Kong Island, have been left - literally
- unmoved. Every week since last August, the MTR has carried out two or three
underground explosions - as part of plans to blast about 400 small holes
alongside the park to help build a shaft for the new Sai Ying Pun station. Yet
Walter Lam Wai-tak, MTR senior construction engineer for West Island Line, said
the new technique of using water - instead of old tyres and sand - to absorb and
cushion the effect of vibrations and dust had proved so successful that people
up above in the park had been hardly able to feel the impact of the blast. "We
put a glass of water on the ground the other day during the blasting; we thought
there might be some ripples, but there was none," Lam said. "The best thing
about using water is that, except for noise, it greatly reduces dust and dirt,
which mix in the water for easy discharge." He said the new blast-dampening
method cost about the same as old methods. But blasting, which would finish next
month, took 2-1/2 hours to fill the shaft with water, and 11 hours to pump out
the water afterwards. Reuben Chu Pui-kwan, president of the Hong Kong
Institution of Engineers, said: "Contractors are struggling to come up with
environmentally-friendly construction methods when they bid for the contracts;
they can't cost too expensive either; the market is now very price-sensitive."
Mercedes enjoys 67pc rise in
sales as demand for luxury cars returns in Hong Kong - Michael Lee, the chief
executive of Zung Fu, and Claus Weidner officiate at a ceremony yesterday to
launch a promotion program. Mercedes-Benz is riding the post-financial crisis
rebound in demand for luxury cars in Hong Kong and Macau, with sales up 67 per
cent in the first eight months to almost 3,000 units. "When the crisis hit, the
competition became quite tough, resulting in a situation where everybody was
focused on price," Mercedes-Benz Hong Kong chief operating officer Claus Weidner
said yesterday. "Now we're seeing a good development, where people are focusing
again on quality and related factors," he said. Mercedes-Benz Hong Kong, a unit
of Daimler established in 2006, is the exclusive importer and wholesaler of the
luxury cars to the local market, while Jardine Matheson's Zung Fu is the sole
authorised retail dealer for the brand. Hongkongers' renewed appetite for
top-end cars is good news for Mercedes, whose best-selling E-class vehicles
retail locally from HK$465,000 to HK$1.48 million. The German marque's most
expensive model, the CL65 AMG, touts a 12-cylinder engine and sells for HK$3.75
million. Mercedes' market share in Hong Kong and Macau is around 13 per cent in
the year to date, according to sales figures provided by the company. Weidner
said local sales of luxury car brands like Mercedes weathered the crisis better
than "volume" brands, which have likewise benefited strongly in this year's
rebound. New car registrations in Hong Kong rose to 22,359 units in the first
seven months of the year, up 65 per cent on a year ago, Transport Department
data show. By value, sales of cars and car parts rose 57 per cent to HK$7.95
billion between January and July, up from HK$5.07 billion a year ago, Census and
Statistics Department figures show. Hong Kong and Macau remain small but rich
markets for luxury carmakers, where they enjoy much higher penetration rates
than most regions. But the bigger growth opportunities are on the mainland.
Mercedes has been manufacturing selected models locally in China for five years,
via a 50-50 joint venture between Daimler and Beijing Automotive Industry Corp.
But imports still account for the majority of the German brand's mainland sales.
Mercedes-Benz sold 87,400 units on the mainland in the first eight months of the
year, up 131 per cent from the same period a year earlier. However, unlike in
Hong Kong, the brand's market share stood at less than 1 per cent. The majority
of passenger car sales on the mainland are those with engines smaller than 1.6
litres.
Shares in Television Broadcasts (SEHK:
0511) saw their biggest drop in 17 months yesterday as investors digested news
that 102-year-old Sir Run Run Shaw would sell his stake in the broadcaster he
co-founded more than 40 years ago. Shares in the city's biggest free-to-air
broadcaster dived as much as 11.8 per cent before closing with a loss of 5.8 per
cent at HK$43.80 on concern about the company's future after Shaw. The stock
surged 16.8 per cent before its suspension on Monday on speculation Henderson
Land Development (SEHK: 0012) vice-chairman Peter Lee Ka-kit, the elder son of
billionaire founder Lee Shau-kee, was planning to buy the stake. Shanghai Media
Group (SMG), the mainland's second-largest media company, is also reportedly
eyeing the broadcaster, partly because of TVB's lucrative production of Chinese
television programmes. The broadcaster has confirmed that Shaw Holdings, owned
by the family of Shaw, is in talks regarding a possible sale of shares. Peter
Lee had earlier confirmed he was studying a plan to buy a stake in TVB. TVB, one
of the world's biggest distributors of Chinese-language television programmes,
has operations in more than 30 countries. Its Taiwan branch, TVBS, saw revenue
of HK$347 million in the first half of this year, an increase of 16 per cent
from a year earlier. For SMG, acquiring a controlling stake in TVB would give it
access to the Taiwan market. Following the signing of the economic co-operation
framework agreement between Taiwan and the mainland, there has been speculation
the mainland will attempt to acquire media companies on the island. Shaw gave up
his executive duties last year to become the non-executive chairman. He is the
biggest shareholder in TVB with a 32.5 per cent stake, comprising shares held
personally and the 26 per cent holding owned by Shaw Brothers (Hong Kong). Two
years ago, Lee Shau-kee offered HK$3 billion to support Yeung Kwok-keung, the
chairman of Country Garden Holdings, in an acquisition of Shaw Brothers. The
plan was scuttled by the global financial crisis. Lee said to the press then:
"Shaw will sell the stake in TVB sooner or later. That's for sure." Peter Lee
might pay up to HK$9.2 billion to acquire the 26 per cent shareholding of Shaw
Brothers, according to reports. SMG is said to have made an offer of up to HK$10
billion to TVB managing director and wife of Shaw, Mona Fong Yat-wah, who is in
charge of the broadcaster's day-to-day operations. Rita Lau Ng Wai-lan, the
secretary for commerce and economic development, said under the regulations, any
transfer of shares should be submitted to the Broadcasting Authority within 14
days. Earlier this year, the government lifted the ban on the number of free
television programme service licences. There are now only two free-to-air
broadcasters in the city, TVB and Asia Television.
Gourmands who look forward every year to
eating a particular crustacean only available in autumn may be disappointed,
with hairy crabs from Jiangsu province likely to be big in price and small in
size. The wholesale price of crabs from Taihu and Yangcheng lakes in Suzhou -
famous for their oil - had soared by 20 per cent to about 300 yuan (HK$350) per
catty after they were delivered to Hong Kong, Lin Jianhua, assistant counsel of
the Ocean and Fishery Bureau of Jiangsu province, said. Fluctuating temperatures
and flooding were the main reasons for the expensive price and smaller size of
the farmed hairy crabs, which usually grow better in cooler weather. Jiangsu
recorded the coldest April in 100 years and in August temperatures soared. The
fluctuation in temperatures delayed the growth of the crabs, which meant they
were 10 per cent smaller than normal, said a group of exporters who were in Hong
Kong yesterday. Supply was further cut short as frequent flooding in the south
damaged the crabs, they said. In 2005, the province exported a record 500 tonnes
of hairy crabs to Hong Kong, compared with 230 tonnes last year when demand fell
after the global financial crisis. Up to 350 tonnes will be exported to the city
this year. Increasing demand in the mainland will fuel further price increases.
Although Hongkongers had enjoyed hairy crabs for years, consumers in Beijing and
Hangzhou did not start eating them until recently, Lin said. The price of hairy
crabs had been rising 15 per cent a year during the past few years, as the
mainland market expanded, he said. "The price will increase further ... ordinary
people may not be able to afford them in the future when the crabs become a
brand like Gucci bags," he said. To distinguish the prized hairy crabs from the
fakes, people should look for clean bodies and large legs. Crustaceans weighing
more than 150 grams were a better option because the crabs could only grow that
big when they were kept in clean water, Lin said. After they were cooked, the
colour of the oil would look like a cooked duck egg yolk, but oil from a poorer
quality crab would look yellowish or white, he said. The best crabs would be
available from October 20 to November 10, he said.
China's science prowess questioned -
Despite US fears, academics say graft, mindset stunt mainland research -
Emerging powers China and India are quickly closing the technology gap with the
United States, a US congressional briefing has been told. Updating a report, the
American National Academy of Sciences, National Academy of Engineering and
Institute of Medicine were glowing in their description of the strides taken by
China in the past five years, contrasting it with the economic turmoil and
educational stagnation that has eroded the leadership of the US in science and
technology. However, mainland academics said China's gains could be somewhat
illusory due to corruption and a focus on research-paper quantity rather than
quality. China was now second in the world in its publication of biomedical
research articles, the report said. It was also second only to the US in the
number of people engaged in scientific and engineering research and development.
The spending gap between the two also was disappearing, with Beijing increasing
its research and development (R&D) investment as a proportion of gross domestic
product by an average of 5.7 per cent a year between 2001 and 2007, when US
investment fell by 0.5 per cent a year. It noted that Tsinghua and Peking
universities were the two largest sources of doctoral students in the US. And
with emerging economies enjoying increasing prosperity (SEHK: 0803) and greater
freedom, fewer foreign students were staying in the US after completing their
studies. "Although no nation has escaped the recent financial crisis unscathed,
some have fared better than others and have focused additional sums on
competitiveness," the report said. The committee said its overall conclusion was
"that in spite of the efforts of both those in government and the private
sector, the outlook for America to compete for quality jobs has further
deteriorated over the past five years". US President Barack Obama responded by
again pledging to revive the education system. He said his goal was for the US
to have the highest rate of college graduates in the world by 2020, Bloomberg
reported. The US now ranks 12th among 36 developed nations. Some mainland
academics said the report painted an overly rosy picture of science and
technology development in China and that it still lagged far behind the US. Dr
Fang Shimin , a biochemist and veteran science critic based in Beijing, said a
lot of the mainland's investment in science and technology was lost to
corruption. "The input and output ratio of China's R&D investment is
considerably lower than the US," Fang said. "A substantial amount of the
scientific research funds are being spent on meetings, trips or buying expensive
equipment that is rarely used. They may have been pouring money into some
sectors, but [the investment] is uncompetitive." He said many mainland
universities and research institutes were churning out papers of little real
value, because the system evaluated a scientist's work by the number of papers
published. "Some even resort to stealing others' work or simply make up the data
to get a paper published," he said. "Most of these junk papers can only be
published in domestic journals and are not cited even once." Fang said that
while China had replaced the US as the world's top technology exporter, most of
its exports were invented and designed by US firms. "China really has to thank
companies like Apple for this," he said. "Every iPhone or iPad shipped to the
world has been counted as a Chinese export, but no sensible mind would think
they were Chinese technology. "The Chinese leaders are engineers, not
scientists, and when you have a bunch of engineers drawing the scientific
development blueprint for a country, you get something unimaginative and
pragmatic." Fang said the central government ignored the importance of basic
research and without that sound foundation, China would continue to be decades
behind the US and other Western countries. Professor Guan Zhongcheng , a
researcher at the Chinese Academy of Sciences' Institute of Policy and
Management, agreed with Fang. He said China was more than two decades behind the
US but had caught up in a few areas, such as materials science, chemistry and
mathematics. "People in the West tend to think that, now China has money, its
science will develop accordingly. That may not be the case," Guan said.
"Developing science differs from developing an economy. I think the Western
world will continue to play a leading role in science and technology for the
foreseeable future." The US report is an update of "Rising Above the Gathering
Storm" - a 2005 study of America's competitiveness that triggered rare
bipartisan support for a doubling of federal research funding. In the latest
report, the US Committee on Prospering in the Global Economy of the 21st
Century, whose chairman is former Lockheed Martin chief executive Norman
Augustine, found US competitiveness in science and education had weakened,
partly due to the economic crisis and partly because some of the recommendations
made five years ago - such as strengthening primary and high school education -
were not implemented or promptly financed. "It would be impossible not to
recognise the great difficulty of carrying out the Gathering Storm
recommendations, such as doubling the research budget, in today's fiscal
environment," it said. "We also sense that in the face of so many other daunting
near-term challenges, US government and industry are letting the crucial
strategic issues of US competitiveness slip below the surface." Apart from the
economic turmoil at home, the report also blamed falling education standards,
particularly in science, mathematics and engineering, as factors eroding US
competitiveness. "It is difficult to dismiss evidence such as a survey that
found almost 30 per cent of US adults do not know the earth revolves around the
sun ... and only about half the population is aware that dinosaurs and humans
never co-existed," it said. The report made four new recommendations to revive
US education and science research, including strengthening high school education
in science and mathematics, double federal investment in basic research,
encouraging more US citizens to pursue careers in science and introducing
reforms in tax, patent, immigration and litigation policies. It also pointed out
that despite the problems, the US still attracted talent from around the world
and boasted the best research universities. The report comes as two key bills
for science funding are set to expire and several science programmes have had
their budgets frozen.
October 1 China's likely launch
date for second probe - A launch rocket carrying the Chang'e orbiter blasts off
in an earlier mission. China is making final preparations to launch its second
lunar probe, possibly as soon as Friday, when the nation marks 61 years of
communist rule, state media reported yesterday. A launch rocket carrying the
Chang'e 2, which will go into orbit within 15 kilometres of the moon, has been
set up in Sichuan province. Chief program engineers have arrived at the
satellite launch centre in the city of Xichang to carry out final tests, and
staff at the centre have said that, barring complications, the launch could come
on October 1, China Daily said. Friday is National Day. Meteorologists had
forecast clear skies in the Xichang area from tomorrow, the report said. Space
program officials had said previously that the mission would be launched in
October, but no precise date had been given. The Chang'e program, named after a
mythical Chinese goddess who flew to the moon, is seen as an effort to put the
country's space exploration program on a par with those of the United States and
Russia. China launched Chang'e 1, which orbited the moon and took
high-resolution pictures of the lunar surface, in October 2007. China hopes to
bring a moon rock sample back to earth in 2017, with a manned mission foreseen
in around 2020, according to state media.
GOME shareholders vote against
motion to oust chairman Chen Xiao - The video grab shows the scene of GOME's
special general meeting held in Hong Kong, south China, Sept. 28, 2010. GOME,
the largest home appliance retailer in China, held a special shareholders'
general meeting Tuesday in Hong Kong, to vote on eight proposals, among which
five raised by Huang Guangyu, the jailed founder of GOME and the company's
largest single shareholder. China's largest home appliance retailer GOME
unveiled results of special shareholders' general meeting in Hong Kong on
Tuesday evening, which showed that nearly 52 percent of shareholders voted
against the motion to remove current GOME Chairman Chen Xiao. Secretary of GOME
Board, Hu Jiabiao, said about 6.52 billion votes, or over 48 percent of total
votes, were in favor of No. 5 resolution, while more than 7 billion votes, or
nearly 52 percent of total votes, were against the resolution. No. 5 resolution
was proposed by Huang Guangyu, the jailed founder of GOME and the company's
largest single shareholder, to remove Chen Xiao in a months-long power struggle.
Chen, 51, was appointed as GOME Chairman on Jan. 16, 2009 shortly after being
appointed as Acting Chairman on Nov. 27 of 2008, after former GOME Chairman
Huang was detained by Beijing police in suspect of illegal business dealings,
insider trading and corporate bribery. Huang, however, won in another important
motion about an earlier general mandate permitting Chen-led director board to
issue more shares, up to 20 percent at most. Some 7.42 billion votes, or nearly
55 percent, were in favor of it while the other 45 percent were against it. The
resolution, No. 4, was also raised by Huang, who, along with his wife Du Juan,
currently held 32.47 GOME stake. Huang opposed any major move to issue more GOME
shares since such deal might dilute his stake in GOME, which could erode Huang's
controlling capability in GOME. The Huangs feared that they might lose their
right to veto important company proposals if more GOME shares be issued. No. 4
resolution was the only motion, raised by Huang, which gained majority of
support in the voting at the special general meeting held earlier in the day.
The other three motions raised by Huang were about removal of Sun Yiding from
his duties as GOME Executive Director, nomination of Huang's younger sister
Huang Yanhong as Executive Director, and nomination of Huang's confidant Zou
Xiaochun as Executive Director. While the three motions raised by Chen had all
won approval, in which Chen nominated three persons as non-executive Director of
GOME. Chen, who has about 1.25 percent of GOME's shares, and Huang have been
struggling to control the company since Huang was detained and jailed. Huang was
arrested by Beijing police in late 2008 in suspect of illegal business dealings,
insider trading and corporate bribery. In May this year, he was sentenced to 14
years in prison. Huang had built GOME into China's biggest appliance retailer
and was listed by the Hurun Report as China's richest man in 2004, 2005 and
2008. Huang and Chen-led board had been openly at odds with each other since May
this year. In a dramatic development of the power struggle, Chen-led GOME board
filed a writ of summons against Huang at HK's High Court last month, for Huang's
alleged breach of fiduciary duties in early 2008 as a former board director. The
battle for corporate control has triggered heated discussions in China. Some
experts justify Chen's taking over as a sign of progress in China's corporate
system, while most Internet users and some businessmen say Chen betrayed his
boss to steal the company. However, analysts said that, since neither Huang nor
Chen could assure the 50 percent of the shareholder base plus one vote needed to
claim victory, it would remains a puzzle until the result of the vote announced.
Shares of GOME, closing at 2.49 HK dollars on Tuesday in Hong Kong, has dropped
about 20 percent this year. (1 U.S. dollar equals 7.759 HK dollars).
Actor Jet Li (R) poses for photo with
his wax figure in Madame Tussauds Hong Kong in Hong Kong, south China, Sept. 28,
2010. The unveiling ceremony of Jet Li's wax figure was held on Tuesday. 
Henderson Land Development (SEHK:
0012) vice-chairman Peter Lee Ka-kit and Shanghai Media Group, the mainland's
second-largest media company, are on a collision course over competing plans to
acquire a stake in TVB (SEHK: 0511). The operator of Hong Kong's biggest
free-to-air TV network yesterday confirmed that Shaw Holdings, owned by the
family of 102-year-old media mogul Sir Run Run Shaw, "has been in preliminary
discussion with representatives of interested parties regarding a possible sale
in the shares of Shaw Brothers (Hong Kong)", a substantial shareholder of TVB.
Shaw Holdings controls Shaw Brothers, which has a 26 per cent shareholding in
TVB. The family of Shaw, who co-founded TVB in 1967, has a total shareholding of
32.5 per cent in the broadcaster. In a filing with the Hong Kong stock exchange
last night, TVB said the total number of shares involved in that preliminary
discussion would represent "less than 30 per cent of the share capital of the
company". The broadcaster also said there were no agreements related to intended
acquisitions that it could disclose. Lee, the elder son of Henderson Land
chairman Lee Shau-kee, had earlier confirmed he was studying the possibility of
buying that stake and that he was in contact with Shaw Brothers. Henderson Land
spokeswoman Bonnie Ngan said Lee's investment was not related to the developer
or its listed unit, Henderson Investment (SEHK: 0097). "Peter Lee has launched a
preliminary study on TVB ... but no decisions have been made yet," she said.
Speculation that Henderson Land chairman Lee might pay up to HK$9.2 billion to
acquire the 26 per cent shareholding of Shaw Brothers saw Henderson Investment
shares jump 25 per cent to 90 HK cents yesterday, its highest close in more than
two years. The rumoured offer by Lee translates into a market capitalisation of
HK$35 billion for TVB, equivalent to nearly HK$80 per share. TVB shares traded
at HK$46.50 yesterday before they were suspended. TVB has applied to resume
trading today. Meanwhile, state media reported that SMG had approached TVB
managing director Mona Fong Yat-wah, the wife of Shaw, with a HK$10 billion
offer through its Shanghai Cultural Development Foundation. SMG, which has long
been in close co-operation with TVB, has been rumoured over the past two years
to be interested in buying a stake in the Hong Kong broadcaster. A spokesman for
SMG could not be reached. But a person close to the SMG-led discussions said:
"[The decision to acquire a stake in TVB] should be made by China Media Capital
[CMC]," not the non-profit Shanghai Cultural Development Foundation. SMG is the
controlling shareholder in CMC, a 5 billion yuan (HK$5.79 billion) fund focused
on investments in media that was launched in June. Last month, CMC acquired
control of three Chinese-language TV channels formerly owned by Rupert Murdoch's
News Corp. "It's not the issue of money that SMG is considering," the person
with knowledge of the SMG plan said. "It's complicated because many technical
details are involved, such as the landing of the TVB signal on the mainland."
Gaining a steady stream of revenue, however, will likely be what wresting
control of TVB is all about to those with the cash to buy out Shaw's family.
"From the perspective of Henderson or any other large company, TVB represents a
cash cow because it remains the dominant broadcaster in Hong Kong," said Trevor
Cheung, an analyst at BNP Paribas Securities. TVB's first-half results show net
profit rose to HK$584 million, up from HK$330 million a year earlier. Turnover
increased 20 per cent to HK$2.10 billion from HK$1.75 billion. Cheung said it
was just a matter of time before Shaw would consider selling his stake because
there was no clear succession for him at TVB, and members of his family may want
to pursue other plans.
Compensation offer for tenement
residents - URA unveils HK$10m plan for Wing Lee Street - Tenants may have the
option of moving to Des Voeux Road West. Residents of a street made famous in an
award-winning film are set to become the first people living outside an Urban
Renewal Authority project area to be offered compensation by the authority. The
offer will be made to residents of 12 tenements living in Wing Lee Street,
Sheung Wan, if the buildings are excluded from the planned Staunton Street
redevelopment and preserved for historical reasons. A change of plan protecting
the 12 tenements from redevelopment will be discussed by the Town Planning Board
next month. If it is approved, residents will be able either to move to private
flats rent-free for the first six months or get subsidies to refurbish their old
flats. Owners will also be able ask for HK$200,000 subsidies to renovate common
areas of their buildings, according to special arrangements announced by the
authority yesterday. The cost of the compensation, never before offered to
tenants outside a redevelopment boundary, is estimated at less than HK$10
million. The project went back to the drawing board in March when the authority
and the Development Bureau bowed to public pressure to save all 12 tenements in
Wing Lee Street, which forms part of the Staunton Street redevelopment project.
Support for preserving the entire street has been growing since a film, Echoes
of the Rainbow, partly shot in Wing Lee Street, won a prize at the Berlin film
festival in February. The filmmakers said the street was the last of its kind in
Hong Kong. Nine of the 12 tenements would have been demolished under the
original plan. The Town Planning Board is expected to hold a meeting next month
to discuss whether the street should be excluded from the redevelopment plan. If
this happens, the tenements will no longer be considered part of the project.
"You wouldn't see us as generous if you saw the living environment of the
tenants," the authority's chairman, Barry Cheung Chun-yuen, said of the
compensation proposal. "The special measures are designed to improve their
living conditions." He added that the extra cost was minimal and the authority
had to bear its social responsibility. Half of the 34 flats rented out in Wing
Lee Street are partitioned into small units or single bed spaces. The authority
has acquired only three of the 12 tenements so far. Among the measures announced
yesterday, tenants will be given three options to choose from if the buildings
are preserved. First, they can choose to move to a resettlement block in Des
Voeux Road West. They will be asked to sign a two-year rental contract and have
the rental of the first six months waived. A flat of 330 square feet will cost
HK$1,800 a month, similar to the rent for a public flat. The contract can be
renewed if the tenants are not able to find public housing or a private flat
long-term. They will also be given a relocation allowance of HK$7,400 and will
get a rebate of six months' rent or 25 per cent of the total rent paid to the
authority when they move out of the resettlement block. Those who choose to stay
in Wing Lee Street can apply for a subsidy of HK$40,000 to HK$80,000 to renovate
their flats. They will also be given a subsidy equivalent to two months' rent to
pay for temporary accommodation while the renovation is done. Those who opt to
move elsewhere will be given a relocation allowance of HK$7,400 and a subsidy
ranging from HK$40,000 to HK$80,000 to improve their living environment. Asked
if the plan would set a precedent that would increase the authority's financial
burden, lawmaker and its non-executive director, James To Kun-sun, said he had
no such worries. "The tenants have been expecting to move ... since the
redevelopment was announced in 1998. I don't think future projects will go back
to the drawing board."
Revised Chinese Bible's launch marks end
of three-decade quest - Donald Tsang officiates at the launch of the Revised
Chinese Union Version Bible at St John's Cathedral in Central. The revised
Chinese Bible was launched yesterday after 27 years of strenuous work by an
international team of scholars and experts. This brings the 90-year-old version
up to date. The Chinese Union Version (CUV) Bible has been hailed as the
most-read Chinese Bible since its publication in 1919. At present, 90 per cent
of about 70 million Chinese Christians around the world are believed to use it.
"The CUV appeared in 1919 and has been read for over 90 years, becoming the
preferred Bible for many Chinese Christians," Chief Executive Donald Tsang Yam-kuen
said. "Revising the CUV has been a huge task, taking almost 30 years to
complete. I believe the revised CUV will enable us to have a better
understanding of God's word." Tsang, along with major participants in the
revision project around the world, officiated at the volume's launch at St
John's Cathedral yesterday. Nora Lucero, global board chairwoman of the United
Bible Societies, said: "I must stress that the [revised] CUV is not a new
translation." She said the original CUV had an "elegant and dignified literary
style that people love", and the revision was "carried out with utmost caution
and aims to produce a text acceptable to Chinese readers from mainland China".
Speaking at the launch, Ma Yuhong , from the State Administration for Religious
Affairs, said the administration hoped the revision would gain broad support.
"We respect the Hong Kong Bible Society's initiation of the revision, and hope
this project will receive support from all Chinese communities around the
world," she said. "Our policy is to respect and encourage communication between
Christian groups through common undertakings such as this project." Ma also said
that if a simplified Chinese version was published in the future, it would not
be an official mainland launch. "I think an official launch in China would not
be likely." But an edition of the revised CUV's New Testament with Psalms and
Proverbs in simplified Chinese will be published on the mainland by the end of
this year, with an initial print run of 5,000 copies, according to the Reverend
Xu Xiaohong , general secretary of the official Three-Self Patriotic Movement of
Protestant Churches in China. "I think many mainland Christians will stick to
the old version for sentimental reasons. That's why we will print the revised
New Testament alongside the original version for them to compare," the 46-year
old said. Xu, who survived the Cultural Revolution and was secretly baptised
soon after the arrest of the Gang of Four, said the revised edition had come at
the right time - as people faced mounting pressures and needed spiritual
consolation more than ever. "The post-1980 and post-1990 generations, especially
those born as the only child in the family, can't take the pressures of life
like the older generations," Xu said. For Hong Kong Bible Society board chairman
the Reverend Paul Kan Kei-pui, the revised CUV will hopefully forge closer ties
between Chinese Christians. "This volume will strengthen our overseas bonds and
also our China connections. After all, it is a product of our own making."
Hang Lung acts to avert rising yuan costs
- Hang Lung chairman Ronnie Chan (third from left) officiates yesterday at the
groundbreaking ceremony for Olympia 66, one of the firm's six mainland
commercial projects. Hang Lung Properties (SEHK: 0101) is taking steps to
minimise possible construction cost increases caused by the appreciation of the
yuan against the Hong Kong dollar on HK$30 billion worth of upcoming commercial
projects on the mainland. Ho Hau-cheong, assistant director for finance and
administration, said as well as relying on 2 billion yuan (HK$2.31 billion) of
rental income from two of its properties in Shanghai, the company would consider
taking out bank loans denominated in yuan if it needed more financing. Hang
Lung's Plaza 66 and The Grand Gateway in Shanghai contributed HK$1.91 billion of
rental income for the year to June. This would grow further with the recent
completion of Palace 66 in Shenyang, he said. The company could also "buy yuan
in Hong Kong when the price is right", he said, following an agreement signed in
July by the Hong Kong Monetary Authority and the People's Bank of China to lift
limits on companies buying and selling yuan in the city. Speaking after the
groundbreaking ceremony for Hang Lung's shopping mall in Dalian, chairman Ronnie
Chan Chi-chung said the capital expenditure for the current fiscal year would be
HK$5 billion, and a further HK$3 billion to HK$4 billion in the next fiscal year
to June 2012. "Whether the firm needs to raise fresh fund depends on the
property sales in Hong Kong," he said, adding that it had HK$20 billion worth of
housing to be sold in the city. Chan said in his chairman statement in the
annual report that the firm had six new commercial projects on the mainland that
would require more than HK$30 billion in construction costs. The projects are in
Dalian, Shenyang, Tianjin, Jinan and two in Wuxi. "Sooner or later we will have
to take on some debt. But because two of the six [Shenyang Forum 66 and Wuxi
Centre 66] are enormous and will likely take 10 to 15 years to build in phases,
annual capital expenditure will be manageable," he said. Yesterday, he
officiated at the groundbreaking ceremony for Hang Lung's 221,900 square metre
Olympia 66 shopping mall in Dalian. The seven-level development will involve an
investment of 4.5 billion yuan, including the 1.23 billion yuan land cost. It
will be the city's largest high-end shopping mall and is due to be completed in
2015. Hang Lung bought the site - a former sports stadium - in May last year. It
is in the city centre next to Olympic Square and Wusi Road, a prime shopping
area.
China's high-speed train sets
new speed record of 416.6 kilometers per hour. A high-speed train in eastern
China set a new speed record during its trial service Tuesday, highlighting
China's leading position in the fast-train industry. The China-made CRH380A
train hit a maximum speed of 416.6 kilometers per hour -- a world train speed
record -- on its run between the metropolis of Shanghai and Hangzhou, capital
city of east China's Zhejiang Province. The train is designed to run at a speed
of 350 kilometers per hour on the 202-kilometer-long railway between the two
cities. Some 80 million passengers are expected to travel the route every year.
A one-way journey previously took two hours. But the new train shortens that to
less than 40 minutes. "China has 7,055 kilometers of high-speed railway in
service. It is the world's longest and the fastest, and boasts the most
comprehensive technology," said He Huawu, chief engineer of the Ministry of
Railways. "We have an ambition to lead the world in high-speed railway
construction," he said. China sets its first world speed record on June 24,
2008. Then, the Beijing-Tianjin CRH3 high-speed train hit a top speed of 394.3
kilometers an hour. After that, more fast-train lines were put into service -
the Wuhan-Guangzhou line linking central and south China, the Zhengzhou-Xi'an
line connecting central and western China, and the Shanghai-Nanjing line in the
country's east. Liu Zhijun, Minister of Railways, said the opening of the
Shanghai-Hangzhou line relieves transportation pressures in the Yangtze River
Delta, one of China's most dynamic economic areas. "It is also significant for
regional economic, cultural and social development," Liu said. Because of
railways' importance to economic development, China aims to expand its
high-speed rail network. By 2012, China will have a railway network of 110,000
kilometers, 13,000 kilometers of which will be high-speed rail, according to the
MOR. The 1,318-kilometer Beijing-to-Shanghai high-speed railway is scheduled to
open in 2012. Total investment in the line is estimated at 220.9 billion yuan
(32.5 billion U.S. dollars). Once complete, travel time between the country's
two most important cities by train will be cut in half to less than five hours.
China's rapid development of high-speed railway technology at a reasonable cost
is also drawing the world's attention. Many nations - including the United
States, Brazil and Argentina - have expressed hope Chinese contractors can join
high-speed railway construction projects in their countries.
Russia, China fete
completion of oil pipeline - Russian President Dmitry Medvedev and Vice
President Xi Jinping shake hands before a meeting at the Shanghai Expo site on
Tuesday. The leaders of China and Russia celebrated on Monday the completion of
a cross-border oil pipeline, a symbol of growing ties between the two emerging
economic powers, particularly in the energy sector. Visiting Russian President
Dmitry Medvedev and his host President Hu Jintao attended a launch ceremony for
the long-awaited pipeline linking the world’s biggest oil producer with the
largest energy consumer. The deal reached last year – which will see China
receive oil for 20 years in exchange for US$25 billion in loans – is a
“milestone” for energy cooperation between the two neighbours, Hu said. The
countries are still finalising a deal that could see 70 billion cubic metres of
Russian natural gas sent to China each year, and have also announced plans to
jointly build a five-billion-dollar oil refinery in northern China. “Both sides
believe that the current strategic partnership between China and Russia stands
at a new starting point,” Hu said after talks with Medvedev, hailing a “new era”
in ties. “The smooth completion of the pipeline project is a model of the two
countries’ mutually beneficial win-win cooperation and a milestone for
Sino-Russian energy cooperation,” state media quoted Hu as saying. The two
leaders signed a series of economic and political agreements, including pacts on
cooperation in future gas supplies, energy efficiency, renewable energy, nuclear
power and the prevention of illegal fishing. Medvedev – who also met Premier Wen
Jiabao on Monday – said the documents would give a “new impetus” to the
Sino-Russian relationship. Energy supplies account for the bulk of Sino-Russian
trade but Moscow also wants to secure Beijing’s help in modernising the Russian
economy and is seeking broader Chinese investments and know-how in various
sectors. “Today, Russia and China are largely solving similar tasks as they move
along the path of comprehensive modernisation,” Medvedev told China’s official
People’s Daily, in comments released by the Kremlin. “Never before have our ties
been characterised by such a high level of mutual trust,” Medvedev said, adding
that his government welcomed Chinese investments in high-tech industries
including aircraft construction. Trade between Russia and China totalled 25.5
billion dollars in the first six months of this year, according to official
data. The deal on the oil pipeline – which runs from eastern Siberia to the
northeastern Chinese city of Daqing – is part of efforts by Moscow to seek new
markets for its crude exports, especially in fast-growing Asia. Beijing is also
looking to secure much-needed resources to fuel its booming economy, now the
second largest in the world behind the United States. Relations between Moscow
and Beijing – once bitter foes during the cold war – have a turbulent history,
but have improved dramatically in recent years. Both countries view themselves
as counterweights to US global dominance, but Moscow has viewed China’s rapid
economic rise with some unease. Nikolai Tokarev, head of the Russian oil
pipeline monopoly Transneft, said commercial supplies from the pipeline would
begin from January 1, and that 15 million tons of crude would initially reach
China each year. Russia’s Gazprom, the world’s largest gas producer, signed a
framework agreement with China National Petroleum Company (CNPC (SEHK: 0135))
last year on shipments of natural gas to China, but the two sides have yet to
sort out a pricing deal. Russian Deputy Prime Minister Igor Sechin, the
country’s powerful energy czar, said the agreement would be finalised by
mid-next year, with the first deliveries in 2015. “Co-operation between Russia
and China in the gas sphere is strategically promising. In this sense, Russia is
a natural partner for China,” Sechin said. Medvedev arrived in Beijing from the
northeastern city of Dalian, where he paid respects to Soviet-era soldiers who
died defending the port from Japanese invaders and said the ties between the two
countries were “sealed by blood.” He was to wrap up his three-day visit to China
with a tour of the World Expo in Shanghai on Tuesday.
Buffett kicks off China tour
with morale-boosting session - Billionaire investor talks up BYD carmaker in
Shenzhen - American investor and BYD shareholder Warren Buffett and BYD chairman
Wang Chuanfu present a mock key to the one-millionth BYD car buyer in Shenzhen
yesterday. American billionaire investor Warren Buffett kicked off a whirlwind
multi-city mainland tour yesterday with a morale-boosting visit to BYD's annual
meeting of car dealers in Shenzhen. Buffett, whose 9.9 per cent stake in BYD has
declined by about HK$7 billion from its peak value a year ago to about HK$13
billion, issued a vote of confidence in the carmaker and proved a natural
showman in front of an audience of more than 1,000 car dealers. The world's
second-richest man and chairman of Berkshire Hathaway spent the afternoon on
stage in a hotel conference room shaking hands, presenting sales awards and
posing for photos with more than 50 BYD car dealers, electric taxi drivers and
other honorees. "Normally, I would deliver this short talk in perfect Chinese,
but I don't want the interpreter to lose her job," Buffett said with his
trademark humor. "BYD is a young and promising company experiencing dynamic
growth, a leader in innovation and technology. BYD is the right choice for me."
It was a salesman's pitch delivered to a room full of salesmen, but BYD's rank
and file could perhaps use the reassurance. Buffett's visit comes as the
Shenzhen-based carmaker faces significant headwinds - from declining sales of
its most popular model and continuing delays to the commercial launch of its
much-touted electric and hybrid cars. BYD's overall sales fell 19 per cent last
month from a year earlier, while sales of its best-selling F3 sedan plunged 40
per cent. The company last month slashed its full-year sales target by 25 per
cent to 600,000 units. Chairman Wang Chuanfu, who shared the stage with Buffett,
announced last month that BYD would be forced to delay mass-market sales in
China and the United States of its highly anticipated, all-electric E6 sedan
because of a shortfall in battery production capacity. BYD originally planned to
start selling the E6 in California by the end of this year, but pushed the
target back to the second half of next year. Yesterday, BYD executives said they
would designate 30 mainland dealerships to launch nationwide sales of its
plug-in hybrid sedan, the F3DM. The car came on the market in 2008 but has so
far sold only a few hundred units. The appointment of dealerships signals
full-scale commercial sales may begin soon. "The main challenge with the
electric and hybrid models is that, apart from at home, there is almost nowhere
to charge them," said one BYD dealer from Hubei province. Neither the E6 nor
F3DM has been launched on the mass market yet. Stephen Wade, a US businessman
who owns car dealerships in Utah and California and who travelled to Shenzhen
for yesterday's event, sees great prospects for BYD's electric cars. "I'm
impressed with BYD's energy and with the ideas they represent," Wade said. He is
potentially interested in bringing BYD's cars to the markets where he has
dealerships. "I notice in my Toyota dealership, when [petrol] gets to US$4 a
gallon we are selling Priuses as fast as we can get them ... This BYD play is
not just about the cars, it is about the future of energy," Wade said. The Hubei
dealer described Buffett's visit as a "great honor", but conceded that a recent
slide in BYD's share price was an issue. Buffett will meet Microsoft Corp
founder and fellow billionaire Bill Gates in Beijing to promote charitable
giving by the mainland's newly minted rich. He will also attend an event in the
capital tomorrow marking the launch of a new BYD multi-passenger car. Buffett
then travels to Changsha in Hunan province on Thursday to witness BYD's new
all-electric bus, the K9, as it comes off the production line for the first
time. Buffett paid HK$1.8 billion in September 2008 for his BYD stake, which
peaked in value at HK$19.89 billion in October last year, but the stock has lost
some of its lustre recently. BYD's shares rose 4.2 per cent yesterday to close
at HK$57.65.
Television Broadcasts (0511) may soon
have a new owner as Henderson Land Development (0012) chairman Lee Shau-kee's
son Peter Lee Ka-kit is in talks about buying stakes in the station. Henderson
Land spokeswoman Bonnie Ngan Suet-fong confirmed that the younger Lee, who is
vice chairman of the developer, is working on the deal with representatives of
Shaw Brothers. But she stressed that Lee Shau-kee is not personally involved in
any negotiations. "Peter Lee is still studying TVB and is the only one who has
touched base with Shaw," said Ngan. "No decisions have been made so far." She
said the plan to take a stake in TVB is not related to the blue-chip developer
or listed unit Henderson Investment (0097). Ngan added that Lee Shau-kee is not
involved in any of his son's discussions. However, sources said the Lee family
intends to take over Shaw Brothers to obtain the 114 million shares, or 26
percent stake, in TVB, along with four plots of land in Clearwater Bay. The
total market price is around HK$7.3 billion, 20 percent less than the HK$9.2
billion Lee Shau-kee was reportedly willing to pay. The talks boosted the
group's shares. Henderson Land Development surged 2.91 percent to close at
HK$54.85, while Henderson Investment climbed 25 percent to 90 HK cents
yesterday. TVB last night confirmed preliminary talks have taken place but no
agreement has been reached. Shares will resume trading today. Analysts say this
is a good opportunity for the Lees to expand into the media industry, as a
battle will soon take place among free-to-air broadcasters after the third
license is issued. "Run Run Shaw probably feels he is too old to do battle, and
may not want to spend too much money in it," said Ricky Tam Siu-hing at Champlus
Asset Management. "Selling his stake in TVB will solve the problem." Hong Kong
TV dramas have always been popular in the mainland, with the bonus of high
profitability in the industry, added Tam. This will help Henderson Land to
expand across the border.
Tenants of shabby tenements on Wing
Lee Street - made famous by the award- winning film Echoes of the Rainbow - have
been offered 400-square-foot flats in Sheung Wan at less than a quarter of the
market rent. Some flats in the Urban Renewal Authority's 23-story Sheung Wan
block even have harbor views. A property agent said rents for similar apartments
are around HK$7,700, but Wing Lee Street tenants can move in for just HK$1,800 a
month. In offering the HK$10 million resettlement package to 30 households, URA
chairman Barry Cheung Chun- yuen said the rent is at a similar level to public
housing, but insists it will not set a precedent or increase the authority's
financial burden. "It's the first time - as well as an exceptional case - for us
to relocate residents who are not affected by redevelopment projects," Cheung
said. "We see the arrangement as a social responsibility to urgently improve
residents' poor housing conditions." He does not regard the offer as "too
generous." The URA block, Shun Shing Mansion on Des Voeux Road West, offers
around 100 flats for those affected by redevelopment schemes on Hong Kong Island
such as those in Graham and Lee Tung streets. The authority revised its
redevelopment plan for Wing Lee Street in March after Echoes of the Rainbow
poignantly portrayed the 12 tenement buildings. Under the new approach, the
authority will preserve all buildings on Wing Lee Street and maintain the
terrace ambience of "Old Hong Kong." Cheung said the resettlement plan will
become effective after a Town Planning Board meeting next month is expected to
remove Wing Lee Street from the list of redevelopment schemes. Apart from the
favorable rent, households who choose to move to the block will not have to pay
rent for six months and will be given a relocation allowance of about HK$7,400
for each family. Their rental contracts will be renewed every two years. The
authority will not ask residents to move out until they are allocated public
housing. Meanwhile, tenants who choose to remain where they are will be given up
to HK$80,000 to maintain their flats. Kwong Shum Sui-heung, who rents a flat on
the street for HK$4,500 a month, said her family of four visited the URA block
in Sheung Wan but decided not to move there. "The authorities pledged to
allocate us public housing when they first decided to redevelop the area 13
years ago," she said. "Another temporary relocation will only increase our
financial burden. We have no choice but to wait." Ho Hei-wah, a member of the
Steering Committee on Review of the Urban Renewal Strategy, said owners who
prefer to stay put have received the least benefits in the resettlement package.
"Most of the tenement buildings are more than 50 years old. The one-off
renovation subsidies are far from enough to maintain a safe building structure
in the long run," he said. Rayson Yip Ching-long, who owns a printing company on
the street, said he welcomes the provision of subsidies for renovating his
"heavily dripping balcony" but hopes the URA will acquire his place at a
reasonable price to help him buy a replacement unit for his business. About 20
households in the street held a meeting last night to discuss options. A URA
spokesman said its staff will visit residents tomorrow.
Foreign Affairs vice minister Wang
Guangya will succeed Liao Hui as director of the Hong Kong and Macao Affairs
Office of the State Council after Friday's National Day, a source said. Beijing
will announce the appointment soon, according to the source. Liao will retain
his role as deputy head of the Politburo working group on Hong Kong and Macau
matters. The Hong Kong and Macao Affairs Office coordinates with the governments
of the two SARs on various issues. It also helps coordinate collaboration
between the mainland and the SARs. Under the hierarchy in Beijing, there are
three tiers of authorities overseeing SAR matters. The highest level is the Hong
Kong and Macau affairs working group under the Politburo. Next comes the Hong
Kong and Macao Affairs Office of the State Council, followed by the central
government liaison office in Hong Kong. Liao has been director of the Hong Kong
and Macao Affairs Office, based in Beijing, since the 1997 handover. Wang has a
track record in strengthening relations with third-world countries from his term
as China's permanent representative to the United Nations from 2003 to 2008.
Born in Jiangsu province in 1950, Wang joined the Ministry of Foreign Affairs in
1975 and worked in the department of translation and interpretation for the
first two years. Over the past three decades, he assumed various posts in the
ministry. He was a member of China's delegation to the United Nations and
director-general of the department of international organizations and
conferences. He was promoted to vice minister in 2008.
Executive councillor Lau Wong-fat has
admitted failing to declare several property transactions made through his own
and family businesses but denied he deliberately concealed the deals. Lau, who
also represents the Heung Yee Kuk in the Legislative Council, made the remarks
through an assistant in response to media reports. His assistant said Lau had
made declarations in the past through his company secretary, and the oversights
may have been due to staff negligence. Lau, on a visit to Taiwan yesterday with
district council chairmen, said he will provide a fuller explanation when he
returns to the territory tomorrow. "I will explain in Hong Kong," he said,
pointing to a media report that claimed he failed to declare some transactions.
"I will find out what has not been declared." Executive councillors are required
to declare land and property they own in Hong Kong or overseas, including
premises they occupy. Land or property in the names of spouses, children, other
individuals or firms that are actually owned by councillors must also be
declared. Premises not owned by councillors but in which they have a beneficial
interest - such as income from rent - also needs to be shown. Such declarations
are made public on the Executive Council's website. Carofaith Investment, in
which Lau has shares, was reported to have acquired three houses in Palm Springs
in Yuen Long in April but had still to declare an interest - a blank that went
against the rule that such declarations should be made within 14 days of a
transaction. Between February 20 and February 24 Carofaith Investment bought two
houses in Palm Springs and 24 Yoho Midtown flats in Yuen Long with China Tiger
Capital Management, which is associated with Lau's family. Officials in the
Executive Council Secretariat are said to be following up on the issue.
Hong Kong exports surged 36 percent
in August - Exports show strong surge - The value of Hong Kong exports surged 36
percent in August - the strongest jump in 18 years - thanks to robust demand in
the mainland and a gradual recovery in orders from Europe and the United States.
It was the tenth straight month that the value of exports rose. The exports,
comprising re-exports and domestic exports, soared to HK$290.1 billion in value
from a year ago. Imports climbed 28.4 percent to HK$302 billion last month,
according to government data released yesterday. The growth was beyond the
market's forecast and was an "exceptional surprise," said Hang Seng Bank (0011)
senior economist Irina Fan Yuen-yee. "This may indicate the peak season for
buyers to take orders for Christmas," Fan said, adding that last year's low base
was also a factor in the surge. HSBC Global Research economist Donna Kwok said:
"Although we'd already penciled in a strong result for August given the positive
turnaround in Hong Kong's HSBC Purchasing Managers' Index for new orders and
China's imports upside, the strength of this stellar result took us by
surprise." Exports to the mainland jumped 44.7 percent - the highest among all
countries last month - while those to India and Singapore rose 40 percent and 34
percent, respectively. "The current robust growth momentum of Asian markets
should continue to render firm support to Hong Kong's exports in the coming
months," a government spokesman said. Exports to Asian countries totaled
HK$187.42 billion, accounting for 64.6 percent of total exports value in August.
Exports to the United States grew 10.2 percent. Despite the impressive figures,
the government warned that "uncertainty in the external environment remains
elevated, as the strength of the recovery in advanced economies has weakened
lately." Hang Seng Bank expects the value of exports to be flat or even decline
in the fourth quarter year-on-year. A survey by the Hong Kong Trade Development
Council also showed manufacturers are more pessimistic about orders in the
fourth quarter. The value of total exports this year as at August 31 increased
by 26.4 percent, while imports jumped 30.4 percent compared with a year earlier.
Hong Kong's trade deficit narrowed to HK$11.9 billion in August from HK$21.8
billion in the same month last year.
Henderson Land Development (SEHK: 0012)’s vice-chairman is in early talks to buy
some or all of the 26 per cent stake of Television Broadcasts (SEHK: 0511) Ltd
held by TVB’s parent, a Henderson spokeswoman said on Monday. Trading in shares
of TVB, Hong Kong’s dominant TV broadcaster, was suspended on Monday after
jumping 17 per cent at the open after reports that Henderson Land Chairman Lee
Shau-kee, was in talks to buy TVB’s controlling shareholder Shaw Brothers (Hong
Kong) Ltd. Hong Kong media had reported that Lee, Hong Kong’s second-richest
man, could pay up to HK$9.2 billion (US$1.2 billion) for Shaw Brothers’ TVB
stake. Henderson spokeswoman Bonnie Ngan said the discussions were purely
private between Lee’s son, Henderson Vice Chairman Peter Lee, and Shaw Brothers,
and that the elder Lee and Henderson had no involvement. “Dr Lee [Shau-kee]
never had a meeting or has never been involved in discussions,” she told
reporters. “Peter Lee is the only one who has touched base with Shaw. The
discussions are very preliminary and nothing has been confirmed yet.” Shanghai
Media Group, China’s No 2 media company, has also expressed interest in the
stake, the Oriental Daily News reported. The British-educated Peter Lee is the
elder of Lee’s two sons and has been primarily responsible for the development
of Henderson Land Group’s China business since he joined the firm in 1985,
according to Henderson Land’s website. Following the jump in its stock, TVB was
valued at about US$2.2 billion. A spokeswoman said TVB had no immediate comment.
Shaw Brothers also declined to comment. TVB is Hong Kong’s dominant free-to-air
TV broadcaster, controlling more than 80 per cent of the Cantonese language
prime time market in Hong Kong. The company was founded and is still chaired by
Sir Run Run Shaw, now 102 years old. Mavis Hui, an analyst at DBS Vickers, said
TVB could be an attractive buy given its positive outlook. “TVB continues to
stay in cyclical recovery for its core markets,” she said. “Advertising spending
in Asia will likely grow further in the second half of this year and next year
under normal market conditions and TVB should remain a beneficiary. Its
operations in China will still need time to expand gradually, though.” In early
September, TVB reported a 77 per cent rise in its first-half net profit
attributable to shareholders to HK$584 million, boosted by strong advertising
revenue and its majority audience share in the free TV market. Shaw Brothers
(HK) Ltd owns Shaw Brothers Studio, which produced one thousand films over three
decades.
Motorists would be spared a proposed
toll increase for the Eastern Harbor Tunnel, and could even pay less, if the
owner accepts projections that the crossing would carry extra traffic after the
government increased charges for the congested Cross-Harbor Tunnel. The
Transport and Housing Bureau has yet to release the study on toll
rationalization for the three harbor tunnels, but people familiar with the
report said the government was inclined to adopt a model that would see a toll
rise for the cheapest Cross-Harbor Tunnel and toll cuts for the other two
crossings. For example, an increase of HK$5 for private cars in the Cross-Harbor
Tunnel - where the toll is now HK$20 - would be used to reimburse a toll cut of
HK$5 for the same type of vehicle in the Eastern Harbor crossing, so the latter
would not suffer any loss. Officials have been trying to persuade the New Hong
Kong Tunnel Company, the operator of the Eastern Harbor crossing, to drop a toll
rise proposal in favor of the rationalization plan by the government, which they
said may give the company just as much, if not more return. The plan's
feasibility depends largely on whether the company accepts the government's
projections. However, financial expert Raymond So Wai-man is sceptical about
such a projection, saying the Eastern Harbour Tunnel has failed to absorb the
queues for the Cross-Harbor Tunnel even when it charged less than the more
popular government-owned tunnel. New Hong Kong Tunnel applied for a toll rise of
40 per cent this month. If approved, private car and taxi drivers will pay HK$10
above the HK$25 currently charged. The increase is expected to bring the company
extra income of about HK$250 million a year, after taking into account a 13 per
cent drop in patronage.
Around 150 street sleepers and
unemployed people enjoyed a free dinner and gifts at the Henry G. Leong Yau Ma
Tei Community Center. About 150 elderly, homeless or deprived people were
treated to a big free meal last night, thanks to a religious group wanting to
inspire them to find meaning in life. More than half the participants were
street sleepers invited from parks and 24-hour fast-food restaurants in Tsim Sha
Tsui, Yau Ma Tei and Mong Kok. Despite many of them not having eaten for days, a
spokesman said most of them kept their composure when they were led to sing
along with and dance to religious songs before the meal, though some were less
patient and became annoyed. There was a choice of mooncakes or T-shirts, which
were donated, as gifts for them. Though a lot of their clothes were not clean,
many of the recipients opted for mooncakes to stave off hunger pangs, with some
devouring the cakes within minutes. There was chaos when meals comprising
vegetables, chicken wings, fried rice and noodles were distributed. Participants
jostled for more food, but order was restored thanks to the organisers.
Participant Lai Chi-yuen, 33, had been released from prison several days before,
and had yet to find a home and a job. "The food is delicious," he said, tucking
into some fried rice. "I don't have to live on the streets since I'm staying at
a friend's place. But I feel his generosity is wearing thin and I may have to
sleep on the streets soon," the Form Three graduate and social assistance
recipient said. "I'm going to find a job but it's going to be tough. I will try
to be a driver since I have a licence. Hopefully I won't have to doss on the
street." One of 10 volunteers, Mui Ka-wood, 51, had been a street sleeper for
several months before getting social workers' help with his application for
social assistance. His mother's death devastated him when he was a security
guard four years ago. As a result, his career was lost. He now depends on
welfare because he cannot find a job. Pastor Metis Cheung Yuk-shan, of the
Revival City International Church Alliance, organiser of the event, said she
hoped to let the underprivileged know they were "useful and viable" in life.
The
HK$7 billion budget for building the South Island Line (East) may blow out by up
to 55 per cent due to big rises in the price of construction materials, the MTR
Corporation (SEHK: 0066) says. This means the cost of the four-year railway
project, due to be launched next year, could be as high as HK$10.8 billion. The
design manager for the South Island Line, Peter Leung Man-fat, said the original
estimate was based on the government's tender price index in 2006. But he said
the building cost had yet to be finalised as the tender process was continuing.
The MTR Corp said it had to wait for completion of the tender process before it
could decide on how the cost would be split between the MTR and the government.
The big rise in price has shocked lawmakers, who warned that they will press the
company to explain it. Wong Sing-chi, a member of Legco's transport panel, said
he would write to panel chairman Cheung Hok-ming asking for the MTR to explain
the situation. "It is more about the credibility of the MTR, which presented the
building cost as HK$7 billion to gain our support to build the project in the
very beginning. But all of a sudden, it tells us the actual price is 55 per cent
more, which is unacceptable," Wong said. Panel member Albert Chan Wai-yip said
the company owed the public an explanation and he would follow up the issue.
Another big MTR project, the West Island Line, faces the same problem. Its
projected cost has risen from the budgeted HK$8.9 billion to HK$15.4 billion,
also due to the rising cost of materials and design changes made for
environmental reasons. The seven-kilometre South Island Line (East) section will
run between Admiralty and South Horizons, via new stations at Ocean Park, Wong
Chuk Hang and Lei Tung. It is expected to be completed in 2015. The MTR's Leung
said the company would proceed with its plans for public facilities along the
South Island Line despite the price rise. Under the plan, the MTR will build a
2,000 square metre pet park near Ap Lei Chau Bridge, a new promenade and a
footbridge to connect the two with Wong Chuk Hang station, Leung said. The idea
of building a pet park in Wong Chuk Hang emerged after discussions and
consultations with the district council and residents, he said. Management of
the park, which would be built on government land, would be handed over to the
Leisure and Cultural Services Department. After receiving residents' views, the
MTR has decided to alter the design of the 2km viaduct in the Wong Chuk Hang
area. It will be smaller and will have slimmer pillars that integrate the
overhead line support system and parapet with a noise barrier.
Mainland helicopter market gets set for lift-off but barriers remain - Aerochine
Aviation managing director Diana Chou poses with helicopter models at her
Central office. The prospect of ferrying deep-pocketed mainland businessmen by
helicopter to their villas in Hainan, or flying high rollers to casinos in
Macau, is giving a lift to the mainland's aviation industry. Among businesses
responding to the demand are helicopter service and aircraft management
companies, industry watchers say. "The market potential of helicopters on the
mainland is tremendous as entrepreneurs demand a more efficient way to travel
across the country," Aerochine Aviation managing director Diana Chou said. Chou,
who has run a sales agency for several private jet manufacturers on the mainland
for more than 10 years, set up Aerochine last year to tap into the demand she
saw for the helicopter market. She also became the sole representative of Bell
Helicopter for the mainland, Hong Kong and Macau. Her company is involved in
consultancy work for mainland big spenders setting up helicopter companies. Chou
said there were 10,000 helicopters in service in the United States, compared
with just 300 on the mainland, where numbers are limited by infrastructure and
air traffic controls. But Beijing has started to relax the restrictions on
general or non-airline aviation, including helicopters and light aircraft, after
realising the contribution general aviation could make to the economy. By the
end of this year, two trial schemes will come into effect, in Guangdong province
and the mainland's northeast. Certain unrestricted fly zones will be set up to
allow general aviation flights to take off after simply notifying the regulator,
instead of applying for clearance days in advance. "The number of helicopters in
the country could increase fivefold to 1,500 in 10 years if other factors also
come in," Chou said. HNA Group's Beijing Capital Airlines announced in June
plans to set up a heliport on the outskirts of Beijing. Moreover, some property
developers were expected to set up helicopter companies on the mainland to cash
in on the lucrative market, Chou said. "Unlike the private jet business,
helicopter service providers must be locally registered and maintain their
helicopters locally," she said. "It will not work if you try to run a helicopter
business on the mainland from headquarters in the United States or Europe."
First-tier cities such as Beijing, Shanghai, Zhuhai and Shenzhen are the most
likely to the first locations for the fledgling helicopter business, Chou said.
Another prospect may be Hainan. "Hainan is a natural market for helicopters
because it is an island without land transport to the mainland," she said. The
central government has also granted it tax-free status and concessions to
stimulate the aviation and tourism industries, prompting many property
developers to invest in the island. "The parcels of land bought may not be close
to the two airports on the island, creating a good market potential for
helicopter services," she said. However, there are still some constraints on the
growth in demand for helicopters, including the limited number of heliports and
helipads around the country. There is only a handful of such facilities in the
Pearl River Delta, including one at Shenzhen International (SEHK: 0152) Airport,
one at Zhuhai's airport and a police-civil heliport facility in Dongguan,
Shenzhen, according to Chou. In addition, a shortage of pilots and qualified
mechanics on the mainland will also curb the growth of the industry. Foreign
pilots are required to fly with a local escort beside them on every domestic
flight, making it difficult to solve the supply problem simply by importing
pilots, she said. A high tax of about 23 per cent levied on helicopter sales was
also an obstacle for the industry. A Bell 429 helicopter equipped to carry eight
passengers was US$6.5 million, but after tax this increased to US$8 million,
Chou said. A Bell 412, which can carry 15 passengers, would cost US$12.3
million, tax included. As with the private jet market, the helicopter market
would take a few years to lift off on the mainland, Chou said. "But before long,
you will see a helicopter taxi providing shuttle services for commuters to get
to downtown Beijing," she predicted. "Just like what you see now in New York and
London."
US
shipping competition bill gains local (Hong Kong) support - The Ocean Carrier
Antitrust Bill introduced in the US Congress will affect Cosco Container Lines
transpacific shipping business. Shippers in Hong Kong and around Asia have
backed a bill introduced in the US Congress last week that seeks to outlaw the
ability of container shipping lines to collectively set freight rates on US
services. Aside from ending shipping lines' competition law immunity, the Ocean
Carrier Antitrust Bill introduced by congressman James Oberstar would limit the
surcharges shipping lines impose as well as ban other "deceptive" practices. It
would also seek to propose a dispute resolution mechanism to enable wrangles
between shippers and shipping lines to be settled quickly. If passed into law as
the Shipping Act 2010, the provisions contained in the bill would apply to all
container shipping lines operating services to the United States, including
those across the Pacific Ocean. It would particularly impact the 15 members of
the Transpacific Stabilization Agreement (TSA), including Orient Overseas
Container Line, Cosco Container Lines, and Evergreen Marine, which transport
about 85 per cent of the containerized goods shipped across the Pacific. Canada
is also likely to follow the US lead if Oberstar's bill is voted onto the
statute books. "[If there are] any changes to US law, then Canadian law will
follow," said Robert Ballantyne, president of the Canadian Industrial
Transportation Association, who added that port operators, including those in
major gateways such as Vancouver and Montreal, would not want to be
disadvantaged. Ballantyne said the only areas where shipping line cartels could
still exist, assuming the law changes in North America take place, would be on
intra-Asian trades and relatively minor routes such as between Asia and Latin
America. Sunny Ho Lap-kee, executive director of the Hong Kong Shippers'
Council, confirmed that the group, which represents cargo owners and
manufacturers, supported the bill. "We don't think the shipping industry should
be any different from any other industry," he said. The European Union ended
shipping lines' competition law immunity in 2008 even though the carriers said
there were competition issues and that it would reduce their return on
investment which had been substantial. There was also support for the law change
from the Asian Shippers' Council which has been a staunch opponent of the
cartel-like behavior of the container carriers. Introducing his bill in Congress
last week, Oberstar said competition law immunity was initially given to
container lines to stabilize their economic position through controlling rates
and capacity. But he added that even under the current regulatory regime,
antitrust immunity had outlived its usefulness and stifled competition. Most
large container lines belong to shipping conferences such as the TSA and the
Westbound Transpacific Stabilization Agreement. As a result, eliminating
immunity for the shipping conferences "will increase competition by requiring
ocean carriers to compete in the market place with the best price and service to
get shippers' business", the six-page bill said. But the World Shipping Council,
which represents the shipping lines, has already voiced its opposition to the
bill which was lodged in the dying days of the current congressional session. As
a result the bill is seen in some quarters as stimulating debate about reform of
the container shipping industry similar to the discussions going on over changes
to current legislation being considered by US Federal Maritime Commission
chairman Richard Lidinsky. The introduction of the bill also coincided with a
move by the Westbound Transpacific Stabilisation Agreement to form a 16-member
advisory board of shipping lines and exporters of cargo that aimed to strengthen
overall long-term relations between carriers and shippers.
The first subway in west China was
launched on Monday afternoon in Chengdu, capital of Southwest China's Sichuan
province. Chengdu Subway Line One runs between northern and southern Chengdu
over a distance of 18.5 km with 17 stations, said Yu Bo, chief engineer of
Chengdu Metro Co, Ltd, builder and operator of the line. The subway's
construction began in 2005 with an investment of about 8 billion yuan ($1.19
billion). The subway operates from 7 am to 9 pm with an interval of 10 minutes
between trains. It is designed to carry 180,000 to 200,000 passengers per day.
Chengdu will accelerate its subway construction in the next few years. It plans
to have a 298 km subway system, carrying more than three million passengers per
day by 2020, Yu said.
Shining light on China's solar
energy - A building fully-equipped with solar power facilities in Dezhou. The
city in East China's Shandong province was the venue for the 4th International
Solar Cities Initiative Congress from Sept 16 to 19. Dezhou saves 640,000 tons
of coal a year by using green resource - Dezhou, a city located in the northwest
of Shandong province, used to be famous in China for its braised chicken
products. Today, it is branding itself as China Solar City, a national center
using green energy. From street lighting to tourist carts, solar energy has now
become an integral part of the city's economy. More than 120 solar power
companies have invested in Dezhou, making it a hub for clean-tech manufacturing,
said Li Xixin, vice-mayor of the city. Because of the use of solar power,
640,000 tons of coal-equivalent are saved each year. Carbon dioxide (CO2)
emissions are also reduced by 1.71 million tons per annum, he said.
China and Russia signed
agreements Monday to boost energy co-operation, while Moscow said it is ready to
supply its energy hungry neighbor with all its natural gas needs. Dmitry
Medvedev and Hu Jintao inspect a guard of honor at the Great Hall of the People
in Beijing on Monday. No dollar value was given to the agreements signed during
a state visit by Russian President Dmitry Medvedev, but they include documents
on cooperation in coal, natural gas, nuclear energy and renewable energy.
Some Chinese customs offices have
started stricter checks on shipments to and from Japan, causing delays, in what
may be retaliation against Japan's recent detention of a Chinese fishing boat
captain, the Mainichi newspaper said on Monday. Fishing trawler captain Zhan
Qixiong was released and arrived back in China on Saturday after his boat
collided with Japanese patrol ships on September 7 near disputed islets, known
as the Diaoyu in China and Senkaku in Japan. China demanded an apology and
compensation from Japan, which Japanese Prime Minister Naoto Kan rejected,
illustrating the fragility of ties between Asia’s two biggest economies troubled
by Chinese memories of wartime occupation, military mistrust and maritime
territorial disputes. Customs authorities in Shanghai on September 21 notified a
Japanese major transport company that they would sample check all air cargo
instead of the usual 30 per cent, the Mainichi said, citing unidentified sources
familiar with the matter. The newspaper said inspections are becoming more
stringent at customs in Beijing and other locations as well, and that goods
being affected include auto and consumer electronics components. China became
Japan’s biggest trading partner last year and bilateral trade reached 12.6
trillion yen (US$150 billion) in the January-June period, a jump of 34.5 per
cent over the same period last year, Japanese data shows. The latest development
comes when there is concern that Beijing is holding back shipments of rare earth
minerals vital for electronics and car parts, although China has denied that
there is a ban on exports to Japan.
A Hong Kong-born mother-of-two has become an internet sensation after
"screaming" her way through an audition for Britain's top-rated television
talent show The X Factor. Beautician Rachel Chu, 44, left judges open-mouthed in
front of millions of television viewers with a spirited but desperately off-key
rendition of the Whitney Houston song Saving All My Love For You. After bringing
her performance to a mercifully early end, the show's creator Simon Cowell told
divorcee Chu: "I'm not being rude, but this is absolutely, one million per cent,
not for you, darling." Chu, who says her biggest influence is Lady Gaga and that
her ambition is to release a hit single, seemed genuinely shocked when Cowell
said her singing should be done "behind walls - your walls" in future and told
her: "You were screaming the song." Fellow judge Nicole Sherzinger, singer with
the Pussycat Dolls, told her: "I don't know if you and music were in the same
room sometimes", while third panel member Louis Walsh said: "Everything was out
of tune. We like you. We just don't like your singing." Since her appearance,
which opened the show eight days ago, Chu's extraordinary performance has been
watched by more than 80,000 people on YouTube. Chu, who grew up in Wo Hop Shek
village in Fanling before moving to Manchester with her family in the 1980s, has
been inundated with requests for autographs since the television broadcast made
her a star.
Stuart Gulliver, who emerged from
Friday's management shake-up at HSBC Holdings (SEHK: 0005) as the chief
executive-designate, faces a pay cut of close to 40 per cent compared with his
earnings last year once he starts his new job in Hong Kong in January. Gulliver
(pictured) currently heads HSBC's global banking and markets operations and
received total remuneration last year of £9.83 million (HK$120 million),
including a base salary of £800,000 and a whopping £9 million deferred bonus. As
chief executive, Gulliver will see his base salary rise to £1.25 million. But
under HSBC's current compensation policy, his future bonus is capped at four
times his annual salary - meaning his maximum pay will be around £6.25 million,
not including an annual pension allowance of around £600,000. "Stuart Gulliver's
total compensation is expected to be less than he currently receives," HSBC said
in a statement announcing the appointment. This is despite the added
responsibility of the chief executive role. The discrepancy in pay is due to
different bonus plans. Gulliver, who joined HSBC in 1980 and has worked in Hong
Kong, Tokyo and Kuala Lumpur, is largely credited with spearheading the rapid
expansion of the bank's capital markets business since he took over the segment
in the early 1990s. Last year saw HSBC's profit from the segment soar as global
markets rallied in a broad recovery from the September 2008 onset of the
financial crisis. Gulliver's "compensation arrangements take into account
wholesale banking market practice", according to HSBC's annual report. In turn
with the market rally, he saw his bonus balloon to £9 million last year, more
than double that of outgoing chief executive Michael Geoghegan during the same
period. Still, other factors are likely to weigh on the overall value of
Gulliver's take-home package. Markets don't always outperform like they did last
year. Indeed, Gulliver received no bonus in 2008, while Geoghegan received a £4
million bonus - which he donated to charity. At the same time, Gulliver's move
to Hong Kong from London will entitle him to a generous expatriate housing and
living allowance. And not to be overlooked is the significant potential impact
of differing rates of income tax on take-home pay. Britain's income tax rates
are around 50 per cent at the upper levels, while Hong Kong's are capped at a
more bearable 15 per cent. Gulliver's appointment came amid a broader shake-up
at HSBC in the wake of the announcement earlier this month that chairman Stephen
Green was leaving to take up a post as Britain's trade minister. The Financial
Times last week reported there had been a boardroom dispute at the bank, with
Geoghegan threatening to resign if he was not made chairman. Speaking in a media
conference call following the bank's announcement, Geoghegan dismissed the
report as nonsense and said he had made the decision to retire 10 days ago.
Geoghegan will step down as chief executive at the end of the year but remain a
consultant to the bank until next March, HSBC said. Green will be replaced as
chairman in December by current chief financial officer Douglas Flint, who, like
Green, will be based in London.
Does earning a higher salary make
you happier? It's an issue that tugs at many of us: the trade-off between a
satisfying job and a satisfying pay cheque. Students have to ponder the question
when considering a college degree or embarking on a career. Workers are
concerned about it when weighing a promotion that would bring longer hours and
more stress along with higher pay. In many ways, achieving the right balance
depends on one's values, priorities, family obligations and spending habits.
But, according to a recent study, there is something of a magic number when it
comes to income and happiness. Beyond a household income of US$75,000 a year,
money "does nothing for happiness, enjoyment, sadness or stress", concludes a
study by scientific journal Proceedings of the National Academy of Sciences in
the United States. It's not so much that money buys you happiness but that lack
of money buys you misery, said Daniel Kahneman, a professor emeritus of
psychology at Princeton and one of the authors of the study. "The lack of
money," he said, "no longer hurts you after US$75,000." The study, which
analysed Gallup data of 450,000 randomly selected people, did find that one's
"life evaluation" - a self-assessment of one's life - continued rising well
above the magic figure. But this is not the same as experiencing day-to-day
happiness. "Many people want to make a lot of money, but the benefits of having
a high income are ambiguous," said Kahneman, also a Nobel laureate in economics.
When you are wealthy, you are able to buy more pleasures, but another study
suggests wealthier people "seem to be less able to savour the small things in
life", he said. Even so, some people seem almost hardwired to want to make
money. A 2007 article in The Journal of Happiness Studies reported that college
freshmen who stated that they wanted a high salary by and large achieved that
goal 20 years later. The article said "individuals with strong financial
aspirations are socially inclined, confident, ambitious, politically
conservative, traditional, conventional, and relatively less able academically,
but not psychologically distressed". People who sought high incomes were more
likely to major in things like business, engineering and economics, it said,
while people for whom high income was not paramount gravitated towards the
liberal arts and social sciences. "Wanting money is not a recipe for disaster,
but wanting money and not getting it - that's a good recipe for disaster,"
Kahneman said. People who want to become performing artists are likely to be
unhappy, because most will fail, he said. Becoming a wealthy rock star is a
common dream when you are young, but when you are in college, you should try to
take a longer-term view, he said. These days, of course, many people are worried
about whether they will get a job at all. Understandably, more people are
placing the financial rewards of a career first, said Nicholas Lore, founder of
the Rockport Institute, a career coaching firm, and author of The Pathfinder.
This could backfire, though, as people who initially pursue a career because of
the salary often find the work unsatisfying. Lore recently coached a lawyer who
decided to forgo his high pay in favour of teaching law, an investment banker
who decided to switch to a green-energy company and a dentist who decided to
become a schoolteacher. It all depends on priorities, Lore said. Some people are
willing to make lifestyle changes because the intrinsic rewards of following a
passion or making a difference are more important than a high salary in an
unenjoyable career, he said. In the end, people should pursue what they are
interested in, said Daniel Pink, author of Drive: The Surprising Truth About
What Motivates Us. Pursuing careers involving highest salaries tends to be a
fool's game. "It's very hard to game the system, in the sense that situations
and conditions change so quickly that a field that is hot today might be only
lukewarm in five or 10 years," he said. "It might even be non-existent." Let's
say you see that accountants are getting decent salaries, directly out of
college, he said, but you don't really like accounting. "Chances are you're not
going to be very good at accounting," and your salary will reflect that, he
said. "Generally, people flourish when they're doing something they like and
what they're good at."
Hawthorn Tree to close Hong Kong Asian
Film Festival - Directed by Zhang Yimou, Under The Hawthorn Tree, is a pure love
story that strikes a chord with the audience. Director Zhang Yimou's latest
romance film "Under the Hawthorn Tree" will be screened at the closing of this
year's Hong Kong Asian Film Festival, mtime.com reports. The Hong Kong film
"Dong Feng Po," starring Ella Koon and Lawrence Chou, has also been chosen to
show at the festival. This year's HKAFF runs from October 22 to November 8.
Actress Karena Lam's film "Lover's Discourse" (Lian Ren Xu Yu) and Hong Kong
actor Juno Mak's "Fuchouzhe Zhi Si" (translated as "The Death of Avenger") will
be the opening films. The Hong Kong Asian Film Festival has been a platform for
showcasing new Asian films since 2004.
Memorial ceremony held in
Taipei for Confucius' birthday.
Apple yesterday launched the latest
version of its iPhone in the mainland and boosted its presence in the world's
biggest Internet and mobile market by opening another two stores in Beijing and
Shanghai. Apple store staff celebrate yesterday with the first customer in
Shanghai to buy a new iPhone 4. Dozens of people queued up at the new store in
the capital for the first official iPhone 4, some waiting for more than 24
hours, even though the smartphone has been available on the grey market for
months. At the front of the queue was Yu Zhonghui, who began lining up at 5am on
Friday. "I thought I was going to be bored standing in line but I'm having a
great time," Yu said, according to the Global Times. "It's like a party." Han
Ziwen, a bookstore owner who had queued for 60 hours to get his hands on the
iPad, also lined up for an iPhone 4. "The iPad and iPhone 4 will certainly have
a great impact on the publishing industry," Han was quoted by the China Daily as
saying. "My bookstore will either be destroyed or have to find a new way
forward. I have to witness the process." The new Apple stores in Beijing and
Shanghai bring the company's total to four in the mainland - two in each city.
It plans to have 25 shops in the country by the end of next year. The iPhone 4 -
something of a status symbol in the mainland - is available in Apple stores, as
well as at China Unicom (SEHK: 0762) retail outlets for buyers who sign a
two-year contract with the operator, according to Apple. The 16-gigabyte version
of the smartphone, which will have wireless Internet capability, will cost 4,999
yuan (HK$5,800) at Apple stores with the 32-gigabyte selling for 5,999 yuan, the
California manufacturer said. China Unicom, the country's second-largest mobile
phone operator, reportedly took nearly 50,000 pre-orders for the iPhone 4 on
September 17, the opening day for reservations. With the two-year contract, the
16-gigabyte will sell for 5,880 yuan while the 32-gigabyte version will cost
6,999 yuan, the China Daily said. The iPhone 4 made its debut in the mainland
just a week after Apple officially launched the iPad in the country, with some
customers queuing up for several days to ensure they got their hands on the
device. Both products have been available for several months on China's grey
market, which has been booming thanks to great demand. The earlier version of
the iPhone only officially went on sale in the mainland last October, more than
two years after its US launch. The price of the iPhone 4 in the grey market has
more than halved to 5,500 yuan since Apple announced the official price, the
China Daily said, citing retail electronics vendors in Beijing.
Chinese billionaire's call to alms -
Business is booming for Chen Guangbiao's recycling firm - the more he makes, the
more he gives away - 1.3 billion yuan so far - Chen Guangbiao carries a victim
of the Sichuan earthquake from the rubble - one of dozens of people he helped.
Chen Guangbiao has his eye on a mission: while most people on the mainland try
to earn a lot of money for themselves, the 42-year-old peasant turned
entrepreneur of a successful construction-material-recycling company wants to
make as much money as he can for others. He wants to hit it big - "really big",
he says. His company and his fortune are expanding rapidly, and so is his
charity work. "I want to root out poverty," he says. Over the past decade, the
self-made businessman, who was born in a poor village in Jiangsu , says he has
already donated 1.3 billion yuan (HK$1.5 billion) to charity, or one-fourth of
his estimated fortune of 5 billion yuan. He has often given away up to half of
his monthly income to the poor and spent a good part of his company's annual
profits on victims of natural disasters such as floods or earthquakes. Sometimes
he just turns up in those areas, pressing cash into the hands of the needy. His
only motivation: "I just want to help," he says.
Martial arts taught in Confucius Institute of Iran - Qiu Xueqin, the director of
the Confucius Institute at Tehran University, plays Taiji in a park in Tehran,
capital of Iran, on Sept. 24. 
Blue crab tournament in East China - A
man shows his 1.2 kilogram crab after winning a blue crab tournament in Sanmen
county, East China's Zhejiang province,September 26,2010. The county, dubbed the
"hometown of blue crabs" boasted a cultured area of 85,000 mu (5,667
hectares),accounting for ten percent of the whole nation, with production at
11,200 tons which created an income of 490 million yuan ($73 million) in 2009.
Arrivals surge to record high: Hong
Kong received 3.46 million visitors in August, a 21.9% jump from a year ago -
Hong Kong welcomed a record 3.46 million visitors in August, a 21.9 percent jump
from a year ago, thanks to a huge surge in arrivals from the mainland and South
Korea, the Tourism Board said. Mainlanders topped the arrivals with 2.37 million
visitors, the most ever and also a 30 percent surge from a year ago, accounting
for 68.6 percent of the total number of tourists during the month, the board
announced in a statement. The sharp increase came during the peak summer travel
season, and was boosted by the implementation of individual visit arrangements
for Shenzhen residents, making it more convenient for them to travel to Hong
Kong. Growth in arrivals from South Korea outpaced those from Japan in August.
Appreciation of the won helped increase the number of tourists from South Korea
by 36 percent to 90,000 compared with a year ago. There were 116,658 tourists
from Japan, but the growth in numbers was a modest 5.2 percent. "Tourists from
South Korea have been active during the last two years," said a local tour
guide. "Although the yen has appreciated, Japanese are less willing to spend
money traveling because of their continuously weak economy." He added that
Korean tourists are spending more money than Japanese during their stay in Hong
Kong. Other short-haul visitors between June and August contributed to growth.
There were 9.21 million visitors to Hong Kong during the three-month period, up
31 percent from the previous year. There was stable growth of 5.9 percent for
long-haul visitors in August, but arrivals from Russia and India soared 84
percent and 41 percent respectively, thanks to the improved economic conditions
and better flight capacity. There was also an increase in business travelers.
During the first eight months of the year, visitor arrivals jumped 24 percent to
23.4 million. Among those, 13.26 million were overnight visitors, up 22 percent
from a year ago. This represented 56 percent of all visitor arrivals.
Michael Geoghegan will retire as HSBC
Holdings (SEHK: 0005, announcements, news) ' chief executive early next year and
will be replaced by Stuart Gulliver, the bank announced in London yesterday.
Douglas Flint will succeed Stephen Green as chairman later this year. Gulliver,
like Geoghegan, will be based in Hong Kong. The announcement followed media
reports that Geoghegan had threatened to resign because he was passed over for
the role of chairman - HSBC has traditionally promoted its chief executive to
the role. Geoghegan strenuously denied them following yesterday's announcement.
The bank said earlier this month that Green would step down to become trade
minister in the British government. In its statement yesterday, HSBC said: "The
appointment of Douglas Flint, made by a unanimous decision of the board, is the
culmination of a comprehensive succession process begun in the first half of the
year." It also said: "As a result of Stephen Green's decision to step down
earlier than planned, Michael Geoghegan suggested and the board agreed to
accelerate HSBC's management succession plan and appoint his successor, so that
a new leadership team would be in place in 2011." Geoghegan will step down on
December 31 but stay on as an adviser until March 31.
Automobile Association president
Wesley Wan Wai-hei, his girlfriend and newborn daughter spent the Mid-Autumn
Festival without electricity - because his ex-wife allegedly had it cut off. And
she didn't stop there, says Wan, son of former People's Political Consultative
Conference delegate Tommy Wan Tai-min. He alleges his former wife, Doreen Tong
Do-ye, called a pest control service to his Chung Hom Kok home last week, and
has also tried to change the couple's correspondence address with the Water
Services Department. Wan says Tong arrived at his home with the pest control
firm - after he had the locks changed - causing disruption to him, his
girlfriend and their three-week-old baby. The claims were made by Wan's
barrister, Albert Yau Kai-cheong, at the Court of First Instance. Wan and his
girlfriend, Lok Mei-mei - the younger sister of TVB (SEHK: 0511) production
resources controller Virginia Lok Yee-ling - filed for a court injunction
against Tong to stop her from trespassing on their property, changing the locks
or carrying out any renovation or pest control there. Fortune Wealth Asia, of
which Tong is the director, owns the property and was also named a defendant.
Outside court, Yau said Tong had arrived at the couple's home with pest control
workers on Wednesday, Thursday and Friday last week. Lawyers for Wan and Lok
yesterday asked the court to stop Tong from meddling with their utilities and
turning up with pest control workers. Tong agreed not to have their utilities
disconnected or service interrupted. But with the locks already changed, and
Tong unable to enter the couple's home, no orders were made regarding pest
control. Tong claims she was worried about the property. "After a visit on
Wednesday, my client became concerned about the state of the property," Tong's
barrister, Anthony Chan Ho-ki, said. "She says there was a fire hazard and so
she phoned about the electricity." But Mr Justice Arjan Sakhrani said: "You
can't have a property where one day the electricity gets shut off, then the
water gets shut off, and the gas gets shut off." Wan and Tong married in 1989
and divorced in 2006. Wan and Lok met in 2008, according to media reports. The
couple and Tong will air their arguments about the injunction in court on
December 2. Wan and Tong are involved in a separate legal battle over ownership
of the property where Wan and Lok reside. A Family Court judge earlier said she
had no jurisdiction to try the case. Tong will appeal that decision in the Court
of Appeal at the end of November, the court heard yesterday.
Wong Ching, the mainland property tycoon whose relative has taken over ATV, says
he has written cheques worth more than HK$55 million to settle debts that Tsai
Eng-meng, the Taiwanese snack tycoon shut out of the battle to control the
struggling station, says it owes him. Speaking in public for the first time
after his camp won control, Wong Ching said he had written a cheque for more
than HK$50 million to settle the amount in convertible bonds that ATV was due to
repay by the end of August, with another for HK$5.6 million as interest. This
month the Broadcasting Authority announced that it had approved that Wong's
relative Wong Ben-koon, chairman of Prosperity (SEHK: 0803, announcements, news)
International Holdings, take a 52.4 per cent stake, from three existing
shareholders: 10.75 per cent from Panfair Holdings, owned by the brothers Payson
Cha Mou-sing and Johnson Cha Mou-daid; 26.85 per cent from Dragon Viceroy; and
14.81 per cent from China Light Group. Tsai, who co-owns the rest of the shares
with the Cha brothers through Antenna Investment, has said that he had no idea
about the deal with Wong Ben-koon, and that one of ATV's directors, James Shing
Pan-yu, had written that ATV would not repay the convertible bonds. Shing is
also a relative of the Wongs. The approval of Wong Ben-koon's takeover came as a
shock to other shareholders too. Wong Ching, now a volunteer at the broadcaster,
said: "ATV will produce more shows with conscience and style next year." He said
he had no intention yet of converting some HK$200 million bonds into shares.
The Hang Seng Index has had a sterling
September, and with four trading sessions still remaining, it has already
matched a performance record set more than three years ago. The main stock index
finished in positive territory yesterday, notching its 15th gain out of 17
trading days so far this month. That guarantees it will be the first month since
July 2007 to have six negative sessions or less. The Hang Seng Index has been on
a winning streak this month, but the thin trading volumes suggest investors are
sticking to the sidelines, according to analysts. It can set the record for the
best month in 17 years if it finishes in the black just twice more in September.
Investors may be relishing the ride, but they are still not yet ready to pop the
champagne. "To make the market go up or down is irrelevant," said Martin Marnick,
a director at Anand Rathi in Hong Kong. "The volumes have been pitiful, and what
that means is the actual price can be moved around with very little money."
Turnover on the main board has topped HK$80 billion just twice so far this
month, in line with the year's sluggish standards. Thin trading levels suggest
that investors are still sticking to the sidelines and not yet ready for a
breakout run in the market.
Hong Kong jewellers are enjoying a
business boom, thanks to a stronger yuan and a longer break for the Mid-Autumn
Festival on the mainland. Some jewellery shops have reported sharp increase in
sales as more mainland shoppers opted to spend three days of their mid-autumn
break in the city. Although the mainland officially allocates only one day to
celebrate the festival, the government has allowed workers to take Wednesday to
Friday off in exchange for extra shifts before and after the break. Ricky Ng,
the general manager of TSL Jewellery Hong Kong, said the company's more than 20
outlets across the city were packed with mainland shoppers from Wednesday noon.
Many of the shoppers were from eastern and northern China and they splashed out
on necklaces, rings and watches. Ng said the company's sales in the first two
days of the mid-autumn break rose 20 per cent year on year. "The longer holiday
enabled people to take short trips, and Hong Kong is one of the ideal
destinations for such trips," he said, adding that about 60 per cent of the
company's customers were from the mainland. Another jeweller, Kennedy Wong
Ying-ho, the chairman of 3D-Gold and Hong Kong Resources Holdings, said daily
sales at its 275 3D-Gold shops in Hong Kong, Macau and mainland exceeded HK$10
million on Wednesday and Thursday - twice as much on a normal business day. He
attributed the significant growth to the recent appreciation of the yuan, which
rose last week to its strongest level since 1994. "Its impact on people's
spending power is immediate," he said. "Every time the yuan gets stronger, our
customers get more generous." Mr Wong, who bought 3D-Gold in 2008, said it would
open 10 more shops on the mainland before the National Day golden week break,
which starts next Friday. New shops in Hong Kong were also planned for early
next year. "Consumer sentiment has been improving since the second half of last
year," Mr Wong said. "Our business grew more than 40 per cent in the first half
of this year and we expect growth of 20 to 30 per cent in the second half."
Meanwhile, other retailers in the city are also benefiting from the business
boom. Apart from luxury goods, iPhones, mooncakes, health-care products are also
popular with mainland shoppers. Maureen Fung Sau-yim, the general manager for
leasing at Sun Hung Kai Real Estate, expects to see a record number of visitors
at its shopping centres during the break. "This year is special," Fung said.
"The two major festivals are close to each other, which may bring more customers
to Hong Kong." She said she expected business at her company's malls to rise 30
per cent during the period. According to the Hong Kong Tourism Board, there were
3.46 million tourist arrivals last month - up 21.9 per cent from August last
year. The number of mainland visitors reached a record 2.37 million, about 30
per cent higher than last year.
Henderson Land (SEHK: 0012) said it has
sold a flat at its controversial 39 Conduit Road development in Mid-Levels West
for HK$60,000 per square foot. That would make it the most expensive apartment
in Hong Kong in terms of price per sq ft. The most expensive residence in the
city is still a house at Severn 8 on The Peak, which was sold for HK$60,215 per
sq ft in March. Henderson announced the deal on its website, saying the flat
sold for HK$338.16 million on September 18. Although the duplex unit's address
is the 61st floor, it is on the 38th and 39th floors of the 46-storey project.
Henderson has come under fire over the way it has numbered the floors. The flat
has a gross area of 5,636 square foot. Excluding common area, the saleable area
is 4,318 sq ft. The developer did not disclose the identity of the buyer. A
spokeswoman for Henderson Land said they had offered only one concession to the
buyer - the company will pay half of the stamp duty, about HK$718,000. The buyer
has to complete the deal in 125 days. "The price seems pretty reasonable, but is
still on the high side," said a property agent. "The buyer has a lot of choices
for this type of money." The asking price for a 4,000 sq ft house at Severn 8 is
about HK$260 million. In March, a 4,620 sq ft special flat at Branksome Crest
with a private swimming pool in Mid-Levels sold for about HK$210 million or
HK$45,455 per sq ft - significantly less than the price for the Conduit Rd
development, which lacks a private swimming pool. Henderson Land re-launched 39
Conduit Road in August after police raided the developer's offices after flat
sales at the project were cancelled. The developer sold 24 flats at its launch
last year. One flat sold for HK$71,280 per sq ft - billed as a world record.
However, the company said in June that 20 of the deals had been cancelled,
sparking accusations of market manipulation.
While the rain may have deterred some from catching the Mid-Autumn Festival's
full moon, it might also have helped reduce by a quarter the amount of rubbish
thrown away. Victoria Park is strewn with burnt-out candles, discarded lanterns
and fluorescent sticks early yesterday after Mid-Autumn Festival celebrations on
Wednesday night. And fewer mooncakes went to waste this year, environmental
group Green Power says. Its survey found the number of mooncakes thrown away
after the festival declined for the first time since 2004. Less rubbish was
generated during the festival this year - 63 tons was collected at parks,
beaches and other public sites, the Leisure and Cultural Department said, down
from 86 tons last year. Fewer people turned out to see the full moon at public
sites this year, the department said, probably put off by Wednesday's persistent
grey sky, showers and thunderstorms. The department also noted that most
revellers used the collection bins set up in parks and on beaches for the
festival.
HSBC (SEHK: 0005) chief executive
Michael Geoghegan is to step down at the end of the year as part of a major
shake-up of the bank's top management, reports said on Friday. He will be
replaced by Stuart Gulliver, head of the group’s investment bank, the Financial
Times and BBC reported. Finance director Douglas Flint will take over as
chairman from Stephen Green, who announced this month he was leaving to become
Britain’s trade minister at the start of next year, the reports said. An HSBC
spokesman said: “No decision has been made.” But a person close to the bank’s
board told the newspaper the decisions were now 90 per cent certain and another
was cited as saying it was a “done deal.” The succession will reportedly be
finalised at a board meeting in Shanghai next week. The bank’s main regulator,
Britain’s Financial Services Authority, still has to approve the appointments,
according to the newspaper. HSBC shares in Hong Kong were down about 0.5 per
cent at HK$80.70 (US$10.40) in afternoon trading on Friday. The dramatic
overhaul at the top of HSBC caps a tumultuous period for the bank since Green
announced he was quitting, with neither of the two men widely expected to become
the next chairman ending up in the job. Hong Kong-based Geoghegan, 56, was
regarded as a frontrunner and HSBC has a history of elevating its chief
executive to chairman. The FT reported this week that he had threatened to quit
when the bank’s board indicated it might pass him over and instead hand the
chairman’s job to HSBC non-executive director John Thornton. The bank has
dismissed the suggestion: “It is nonsense that [Geoghegan] threatened to resign
unless he was appointed chairman.” On Friday, a Hong Kong-based bank spokesman
declined to comment further.
Wanted: 1,000 professors for Hong Kong
universities at US$156,000 annual salary - If you factor in United States
foreign earned income exclusion and selecting a State with no State income tax
as your tax home - you need to earn more than US$250,000 in the United States to
match the Hong Kong professor's salary. Not to mention you can get a live in
maid to do all your cooking and house cleaning for US$500/month. Hong Kong's
thirst for academic talent is stirring global interest. The city's universities
need 1,000 more professors to cope with the launch of a new four-year degree
system, and the intense competition is pushing up academic salaries, university
administrators say. Extensive recruitment drives have been launched by local
universities over the past few years and most have yet to meet all their needs.
But with two years to go before the launch of the new four-year system, the
pressure is mounting to fill positions. A three-year senior secondary system was
launched last year and the first batch of graduates from this system will enter
university for four-year degrees in 2012 - the same year as the last graduates
under the old four-year senior secondary system arrive for their three-year
degrees. Professor Tony Chan Fan-cheong, president of the Hong Kong University
of Science and Technology and convenor of the Heads of Universities Committee,
says the institution is short of 100 professors, and the sector needs up to
1,000 academics. "We need to get the extra faculty so that we can maintain the
current student-professor ratio [at 12 to one]," he said. "The demand for such a
large pool of academic talent in such a small place as Hong Kong has stirred up
quite a lot of attention in the academic world. As every university is fighting
for talent now, some overseas professors are getting several offers. They have
more bargaining power to demand better salary packages." Chan said the
recruitment of top overseas talent was a big challenge for the university. "We
plan to raise HK$1 billion for the establishment of 10 endowed chairs. Half [of
the funding] at renowned North American private universities like Harvard and
Stanford relies on such endowment funds. The recurrent interest generated from
the funds can pay for the professors' salaries. "As we are a young institution
that doesn't have the long history enjoyed by Harvard, it's challenging for us
to raise money to set up the funds. Currently, we have only a few endowed chairs
and we plan to increase the number to 10. They will be involved in both teaching
and research." A Chinese University spokeswoman said it was still short of about
200 teaching staff for the launch of the four-year system. "We need around 400
extra people for 2012. Over the past three years, we have recruited around 200
academics from Hong Kong and around the world to join our faculty. Over 90 per
cent of them have overseas qualifications. We will continue our recruitment
drive to get quality teaching staff in the next two years." A University of Hong
Kong spokeswoman said it needed 200 more professors by 2012. "We will try our
best to offer the best employment terms and work environment to get talent," she
said. In Hong Kong, average monthly salaries for professors top HK$100,000 while
associate professors can make at least HK$70,000 and assistant professors can
expect about HK$40,000 or more. In the United States, based on 2007 figures, the
average monthly salary for a professor was HK$64,000. Associate professors got
about HK$45,200 and assistant professors just under HK$38,000. But it depends on
the university. An assistant professor might have got between HK$40,100 and
HK$48,500 at the University of Utah but HK$47,600 to HK$68,700 at Cornell
University. Chan said preparing new courses was another key part of the
preparation for the new four-year structure. "Our 400-strong faculty has come up
with more than 200 new courses spanning various fields of general knowledge like
humanities, language, history and artistic education. All four-year students
will be required to take 34 credits for general education." Professor Lee
Chi-kin, vice president (academic) of the Hong Kong Institute of Education, said
teaching degrees would be extended from four to five years from 2012. "We plan
to offer new programmes on psychology and special education," he said. "We will
also roll out a new programme incorporating primary and secondary education.
Students will be required to do placement at both primary and secondary schools.
Graduates can opt for either secondary or primary work." 
President Barack Obama heaped
praise on Premier Wen Jiabao, saying he has been an outstanding partner for the
United States President Barack Obama last night heaped praise on Premier Wen
Jiabao, saying he has been an outstanding partner for the United States in
dealing with the global financial crisis. "China's work with the US and within
the Group of 20 nations was absolutely critical in helping the world's economy
recover," Obama said before he and Wen conducted a one-on-one meeting at the
United Nations in New York. "Obviously we continue to have more work to do on
the economic front. More discussions with China are needed to achieve balance
and sustained economic growth." Wen said the common interests of the United
States and China far outweigh any differences. Political pressure is building on
Obama to take a more aggressive stance on China's currency policy, which he has
said is valued lower than the market would indicate and gives China an advantage
in trade. The talks on the sidelines of the annual UN General Assembly come as
US lawmakers appear closer than ever to acting on long- standing threats to
penalize China for keeping its currency artificially low. Wen staged a
preemptive defense of China's policies on Wednesday, flatly rejecting any link
between the level of the yuan and US trade deficits. "The main reason for the US
trade deficit with China is not the renminbi exchange rate, but the structure of
trade and investment between the two countries." Wen's talk came after a US
House of Representatives committee scheduled a vote for today on a China
currency bill that would treat China's "undervalued" currency as an export
subsidy and allow the US Commerce Department to impose countervailing duties on
Chinese products to offset the undervaluation. Critics inside and outside
Congress say China deliberately undervalues its currency by as much as 25
percent to 40 percent to give mainland companies an unfair trade advantage,
hurting US exports and employment. Obama said on Monday that China had not done
enough to raise the value of the yuan, keeping up the tough rhetoric on Chinese
policy six weeks before congressional elections. Pushing back against the US
pressure, Wen said China, too, had big job considerations and the 20 percent
appreciation of the yuan demanded by US lawmakers would cause many bankruptcies
in the Chinese export sector, where firms operate on thin margins. "The
conditions for a major appreciation of the renminbi do not exist," Wen said,
adding the appreciation demanded by US lawmakers would not bring jobs back to
the United States because American firms no longer make most of the
labor-intensive products China exports.
Beijing won't bend on the yuan
to curry favor with Washington - Wen Jiabao and Barack Obama meet at the United
Nations. Beijing will not buckle on the yuan's exchange rate to please
Washington, analysts say, despite US President Barack Obama increasing the
pressure in a meeting with Premier Wen Jiabao in New York on Thursday. China
must do more to revalue the yuan, Obama told Wen in what was described as a
"candid" two-hour meeting. Wen had adopted a tough stance on the yuan issue in
speeches on the sidelines of the United Nations General Assembly before the
meeting with Obama. Yesterday a US congressional panel turned up the pressure,
approving a bill that would let the US slap duties on goods from countries with
undervalued currencies. In a move likely to increase trade tensions with China,
the House of Representatives Ways and Means Committee backed the legislation on
a voice vote and cleared the way for the full House to take it up next week. The
measure may never become law, however, as it faces an uncertain future in the
Senate. Critics inside and outside Congress say China enjoys an unfair trade
advantage by undervaluing the yuan against the dollar by 25 per cent to 40 per
cent, hurting US exports and employment. The committee's chairman, Sander Levin,
said the bill would give the US new tools to address China's "currency
manipulation" because diplomatic pressure hadnot yielded satisfactory results.
The Wen-Obama talks, the highest-level meeting between the two sides in months,
came amid increasing frustration in Washington over China's trade policies and
the long-running debate over the yuan's exchange rate. It also came at a time of
heightened political sensitivity ahead of US midterm elections, with Obama's
Democrats losing ground due to the economic downturn and increasing
unemployment. Thursday's meeting also came amid signs that both administrations
are seeking to repair ties ahead of a state visit to the US by President Hu
Jintao in January. Jeff Bader, senior director for Asia on the US National
Security Council, said the meeting was dominated by the economy. Obama raised
with Wen the "need for China to do more than it has done to date" on the yuan.
Tim Condon, chief economist with ING's Asian research, said political tensions
had risen again over the yuan's exchange rate. Tom Orlik, China economist with
Stone & McCarthy Research Associates, said that with the midterm elections
approaching, there was pressure on the Obama administration to demonstrate that
it was making progress on the exchange rate issue. "But it is not clear that
Washington DC has any real tools to exert pressure on a recalcitrant Beijing,"
Orlik said. In speeches ahead of the Obama meeting, Wen warned against letting
the issue be politicised, saying that there was "no basis for a drastic
appreciation of the yuan". During Thursday's meeting, Obama mentioned the two
World Trade Organisation complaints his administration had lodged against China
in recent days - in what may be seen as a veiled threat of more US action if the
yuan does not rise. Condon said the easiest way to soothe the US was for Beijing
to restore the yuan appreciation trend that was halted in mid-2008 when China
wanted to impart some stability to a world that was rapidly becoming unstable.
"Had the People's Bank of China continued to appreciate the yuan at the average
pace of July 2005 to July 2008 it would be on course to move below 6 by the end
of the year," he said. Jianguang Shen, China economist with Hong Kong-based
Mizuho Securities, said China would not be able to appreciate the yuan by 20 per
cent against the US dollar, as some in the US have demanded, although a
"domestic consensus is being formed to quicken the pace of yuan appreciation if
a more market- oriented mechanism is allowed to work". 
The Chinese trawler captain Zhan Qixiong
arrived safely in Fuzhou, capital of southeast China's Fujian Province early
Saturday morning by a chartered plane after he was illegally detained by Japan.
The Chinese trawler captain Zhan Qixiong(R) reunites with his wife and son at
Changle International Airport, in Fuzhou , capital of Southeast China's Fujian
province, Sept 25, 2010.
Models display entries at a school
uniform show on Saturday. The finals of the first national competition held in
Beijing showcased 30 sets of school uniforms for primary pupils, middle and
senior high school students and university students. Clothes designed for high
school pupils by students from Tsinghua University won the championship.
Basketball drives up Nike China orders by 25% - Nike is counting on China and
other emerging markets to provide the most growth over the next five years as
the sportswear giant gets 65 per cent of sales outside North America. Nike, the
world's largest maker of sports shoes, reported orders for the mainland surged
25 per cent - outpacing all other regions on demand for basketball-related
sportswear. Total orders for sports shoes and clothes for delivery between
September and January grew 10 per cent to US$7.1 billion, the Beaverton,
Oregon-based company said in its earnings statement yesterday. The growth on the
mainland compares with 15 per cent in North America and declines of 7 per cent
in western Europe and 8 per cent in Japan. Chief executive officer Mark Parker
is counting on the mainland and emerging markets to provide the most growth over
the next five years as Nike gets 65 per cent of sales outside North America. The
company had widened its lead on the mainland over Adidas by expanding in cities
beyond Beijing and Shanghai, said analyst Shaun Rein. "As consumers are getting
wealthier here they are buying special items for the gym, for the weekend, for
going out," Rein, managing director of China Market Research Group in Shanghai,
said yesterday. "Nike are doing the best because they have the best brand
loyalty." The mainland accounted for US$460 million of the Nike brand's sales in
the company's fiscal first quarter, about 9 per cent of total revenue. "The big
story there continues to be basketball, which shows no sign of slowing down,"
Charlie Denson, president of the Nike Brand, said. The company earlier reported
first-quarter profit that surpassed some analysts' estimates as sales in North
America continued to rebound on a growing apparel business. Nike sales in North
America contributed US$1.9 billion to the total in the three months through
August. Net income rose 8.9 per cent to US$559 million, or US$1.14 a share, in
the quarter, the company said. Profit per share was expected to be US$1,
according to the average of 16 analyst estimates compiled by Bloomberg. Nike's
per-share profit from continuing operations has beaten the average analyst
estimate for 17 straight quarters. Sales in North America are recovering from a
decline during the recession. "Their product is performing really well in North
America," said Chris Svezia, an analyst for Susquehanna Financial Group in New
York, who has a neutral rating on Nike shares. "I can't remember the last time
they grew North America at those levels. That's pretty stellar." Revenue from
the Nike brand in North America, the company's largest market, increased 8 per
cent to US$1.9 billion as apparel sales rose 16 per cent to US$515 million. Nike
increased spending on marketing ahead of the Fifa soccer World Cup, contributing
to a 7.8 per cent gain in first-quarter revenue to US$5.18 billion. Analysts
predicted US$5.21 billion on average. Sales of the Nike brand on the mainland,
the second-largest market, rose 11 per cent to US$460 million. Revenue from
emerging markets, including countries in Asia, Africa and South America,
advanced 30 per cent to US$591 million.
Obama hails co-operation after Wen
talks tough on the yuan - US President Barack Obama said yesterday US-China
co-operation had helped ease global financial turmoil. But both he and Premier
Wen Jiabao steered clear of the spat over China's currency policy, which the
United States says hurts American workers. Obama's comments came a day after Wen
struck a tough note on the yuan ahead of a crucial vote by the US Congress on
the thorny issue between the world's two biggest economies. Obama, standing by
Wen on the sidelines of the UN General Assembly meeting in New York, said
co-operation between the US and China "has been absolutely critical" to easing
the financial crisis. He praised Chinese leaders for working with the US on
economic, nuclear non-proliferation and Asian security issues. But, Obama said:
"Obviously, we continue to have more work to do on the economic front. It is
going to be very important for us to have frank discussions and continue to do
more work co-operatively in order to achieve the kind of balance of sustained
economic growth that is so important." Wen said: "Our common interests far
outweigh our differences." Wen warned in a Wednesday night speech that the yuan
must not be turned into a political issue between the countries. However, he
expressed optimism that China and the US could resolve major sources of friction
now that tensions have begun to ease. His speech, delivered on the sidelines of
the UN global summit, focused on trying to ease American anger against Beijing
ahead of his meeting yesterday with Obama. But he also rebutted US claims that
the tightly regulated and allegedly undervalued currency gave its exporters an
artificial advantage over US manufacturers. He also flatly rejected calls for a
sharp appreciation of the yuan, saying "China cannot afford" such a dramatic
change. If Beijing were to allow the yuan to appreciate by 20 to 40 per cent, as
some US politicians have demanded, a wave of job losses and business
bankruptcies would engulf the mainland, causing "major turbulence" in society,
Wen told business leaders gathered at the Waldorf-Astoria Hotel in New York.
"The conditions for a major appreciation of the renminbi do not exist," he said,
adding that such an appreciation would not bring jobs back to the US, because
American companies no longer made such labour-intensive products. "The main
reason for the US trade deficit with China is not the renminbi exchange rate,
but the structure of trade and investment between the two countries," he said.
Wen said he knew Obama was worried about unemployment in the US. But Obama did
not have to find jobs for a labour force of 800 million people, including
millions of new college graduates, army veterans returning to work and a large
rural population living under the poverty line, he said. "I told him, `the
pressure on my shoulders is a lot heavier than the pressure on yours'." The
currency dispute escalated as it became clear that Democratic leaders in the
House of Representatives would proceed with a bill that classified currency
undervaluation as an export subsidy, which would allow Washington to retaliate.
The bill, whose scope has been shrunk in an attempt to stave off a legal
challenge, is going to committee today, while a vote by the full House could
take place as soon as next week. Obama said on Monday that the yuan "is valued
lower than market conditions would say it should be". He said: "So it gives them
an advantage in trade. We are going to continue to insist that on this issue -
and on all trade issues between us and China - that it's a two-way street."
House Speaker Nancy Pelosi said on Wednesday: "It is time for Congress to pass
legislation that will give the administration leverage in its bilateral and
multilateral negotiations with the Chinese government. "If China allowed its
currency to respond to market forces, it could create a million US manufacturing
jobs and cut our trade deficit with China by US$100 billion a year, with no cost
to the US Treasury." The politically sensitive US trade deficit with China rose
to US$26.2 billion in June, the largest one-month leap since October 2008. Wen
said China had never pursued surplus in trade and his government had tried to
improve the situation by launching an unprecedented stimulus programme recently
to bolster domestic demand. Still, he was optimistic in his speech, saying the
countries' common interests far outweighed their differences. Ahead of a US
mid-term election on November 2, legislators have seized on the exchange rate as
a cause of hardship for local manufacturers. Wen sounded a warning not to turn
trade and the yuan into political issues. China did not cause the US financial
problems, he suggested; on the contrary, he offered this recollection in a
backhanded compliment to his host: "Coming back to New York, a city that has
gone through so much but always brims with vitality, I cannot help [but] think
of the beginning of the financial crisis", which caused "shrinking in China's
external demand and a slowdown in growth". The premier touted China's role in
pushing the global economy towards recovery, adding that its exports benefited
the US companies that set up shop there as well as American consumers. He said
China and the US were "not rivals in competition but partners in co-operation",
in an attempt to play down economic, military and diplomatic tensions. In one of
the most significant developments that show both sides are trying to put months
of tension behind them, Wen suggested Sino-US military exchanges had resumed,
confirming a South China Morning Post (SEHK: 0583, announcements, news) report
last month. Beijing had suspended military ties with Washington to protest
against the Obama administration's decision to sell arms to Taiwan this year.
Wen confirmed Beijing had invited US Secretary of Defence Dr Robert Gates to
visit China this year - one of the most significant planned exchanges between
the two militaries that had been halted.
Philippine President Benigno Aquino
has been invited to visit Beijing, an aide confirmed yesterday. "He was invited
by the Chinese ambassador to the United Nations to visit China, but no date has
been set. He got the invitation yesterday [Wednesday]," Ricky Carandang, head of
the president's communications group, said.
US billionaire Warren Buffett could
deliver some tough talk to BYD when he visits the Chinese carmaker next week,
including potential plans to sell down his stake in the former high flyer that
has hit a speed bump. BYD was China’s fastest-growing car maker last year but
has encountered a host of problems this year, including sliding sales, a delay
in plans to export its electric cars, and a legal dispute with the government
over land it wants to develop. Buffett’s Berkshire Hathaway bought 10 per cent
of the company in 2008 – an investment that has yielded handsome rewards with
the stake now worth US$1.6 billion, nearly seven times the original US$230
million purchase price. Still, the current value is well off a peak of US$2.5
billion reached last October, leading some to speculate that Buffett may be
tempted to cash out part or all of his investment for a return that is still
impressive by any measure. “Buffett’s visit to BYD may not be good news for the
company,” said Andrew To, sales director at Tai Fook Securities. “The old man
may actually be tempted to sell down as the value has been inflated by several
times.” Buffett and Bill Gates, the 55-year-old co-founder and chairman of
Microsoft, will arrive in China on Monday for a four-day visit, including three
stops related to BYD in the cities of Beijing, Changsha and Shenzhen. Buffett
and Gates, America’s two richest men and the world’s top two donors to charity,
will also host a private meeting in Beijing to discuss philanthropy development
in China. But Buffett, who made his billions as a shrewd investor, could be more
focused on BYD, whose shares soared after Berkshire Hathaway’s initial
investment on hopes the battery maker turned car manufacturer could become a
future electric vehicle leader. Buffett admitted previously that his bet on BYD
was less focused on the company’s products and more on its founder and chairman,
the entrepreneurial Wang Chuanfu, known for devoting his time to the company and
passionately pursuing new products. BYD’s shares now trade at more than 20 times
projected earnings, nearly double the multiple of rivals Dongfeng Motors and
domestic leader SAIC Motors. Some analysts are questioning the company’s ability
to deliver its new energy vision, and others say it may be straying too far from
its roots as a battery specialist. Chinese media recently reported that BYD had
acquired 18 per cent of Zhabuye Lithium, which has mining rights in the
country’s biggest lithium mine, for about US$30 million. Other reports said the
company planned to make electrical appliances such as air conditioners and TVs.
“The company should do whatever it is good at,” said Johnny Wong, an analyst at
Yuanta Research. “The share price will fall further if they really enter the
home appliance sector, in which competition is keen.”
Taiwan plans to loan for the first time a treasured painting to the mainland in
yet another sign of warming ties between the former bitter rivals. Previously,
mainland requests to borrow nationally important cultural relics have been
rejected as Taiwan feared the works might be confiscated. But the National
Taiwan Museum plans to loan a 17-century portrait and other art treasures to the
Hubei Provincial Museum in central China and another museum in Fujian province
for exhibitions next year. "We support the government's existing policy to
promote cultural exchanges with the mainland," said Li Tzu-ning, an official at
the National Taiwan Museum. The portrait is of Koxinga, a general in China's
late Ming Dynasty (1368-1644). In return, the museum in Hubei will loan more
than 100 cultural relics to the National Taiwan Museum, in Taipei, for an
exhibition slated for November, Li said. But the National Palace Museum,
Taiwan's top museum, has maintained it is unlikely to loan items to the mainland
in the absence of guarantees that they would not be retained. It holds more than
655,000 artefacts spanning 7,000 years from the Neolithic period to the end of
the Qing dynasty in 1911. They were removed from a Beijing museum in the 1930s
to prevent them falling into the hands of invading Japanese troops and were then
taken to Taiwan by the Nationalists as they fled communist forces on the
mainland. "We have no such concerns as the painting we plan to loan to the
mainland is not from there," Li said.
Russian State Ballet Troupe stages
"Swan Lake" in SW China.
Hong Kong customs officers have seized one of the most advanced and
controversial amphibious tanks under development in Asia. Investigations suggest
the disarmed K-21 light tank and components were being shipped from Saudi Arabia
back to South Korea through Hong Kong - without import and export licences for
strategic items. "It is alleged that the consignment is an exhibition item," a
senior customs officer said yesterday. "Initial investigations indicate that it
is not an out-of-service tank and it appears to be quite new and built for the
purpose of exhibition." Investigations were continuing and the case would be
handled in accordance with Hong Kong laws, the officer said. The seizure at Kwai
Chung container terminal comes just after South Korea's defence ministry
announced an investigation into potentially fatal design flaws in the light
tanks, which were launched late last year. It had hoped the vehicle would prove
a hot defence export item after being developed over a decade by the ministry
and South Korean defence firms. A South Korean soldier died in July after he was
trapped in one of the 26-tonne vehicles, when it sank during a river crossing.
Some media reports suggest a faulty pump was to blame in what was supposed to be
a routine operation. It is armed with a 40mm cannon, a 7.63mm machine gun and
can fire guided missiles at other tanks. It also has an advanced battle
management system that allows it to receive a constant flow of information from
sensors on soldiers in the field. Despite the design problems, the technology of
the K-21 would be of interest to many military forces, according to locally
based attaches. "It does seem strange that such a new weapon is being moved
about without proper licences," one envoy said. "This case will be watched very
closely." Officers from customs' strategic trade investigation division are
handling the case. So far, no one has been arrested. South Korean officials said
they had yet to be informed of the seizure and could not comment. The tank and
parts in two containers were loaded on a ship in Saudi Arabia earlier this month
and the vessel reached Hong Kong on Saturday. The goods were unloaded at Kwai
Chung container terminal. "The tank was discovered as it was stored in a
soft-topped container and its shape could be easily seen from the top of the
container," another customs officer said. It was to be loaded onto another
vessel and leave Hong Kong today. "Investigations indicate its final destination
is Pusan, South Korea," the officer said. As stipulated in the Import and Export
Ordinance, a licence issued by the director general of trade and industry is
required for the import/export/re-export/transshipment of every shipment of
strategic commodities. The maximum penalty for failing to obtain a licence is an
unlimited fine and seven years' imprisonment. Enforcement over such items
resulted in 53 people or companies in 41 cases being prosecuted last year, with
fines totalling HK$2.22 million. The cases mainly involved liquid crystal
polymer, carbon fibre, integrated circuits and information security devices. In
2000, five Soviet-made armoured military carriers were seized at the Kwai Chung
terminal. They had been ordered by state-run China Aviation Industry Supply and
Marketing and were bound for Tianjin. In 2006, customs officers confiscated a
Soviet-made MiG-29 fighter jet that was being shipped to the United States.
The firefly species which has been found in the Wetland Park and Mai Po wetland.
Scientists say it is unusual to find tropical species in sub-tropical Hong Kong.
Hong Kong experts have discovered a firefly species that is new to science. Yet
to be named, the firefly had been known to live in the Wetland Park in Tin Shui
Wai for at least seven years before being identified as a new species this year.
"I was researching birds in the park in 2003 when I saw the fireflies in the
mangroves. I wasn't aware they were new and the species that we know in Hong
Kong did not depend on mangroves," said Josephine Cheng Chui-yu, the
Agriculture, Fisheries and Conservation Department's wetland park manager. The
department started to notice the bugs in the mangroves had a different flashing
pattern and frequency, after Cheng joined its beetle working group and alerted
staff to her observations. With the help of an Australian and a mainland expert,
the team after research made a preliminary conclusion that the species was a new
one to science. Belonging to the genus Pteroptyx, the firefly has a body length
of about 8mm to 10mm, with dark brown top. A distinctive feature is the hooked
wing covers of the male, which serve as a clamp to enable it to hold the female
during mating, while at the same time keeping other males away. The genus
thrives in the tropics, usually in mangroves in Southeast Asia, so it was
unusual that a species existed in sub-tropical Hong Kong, Cheng said. The
species will add to about 2,000 known firefly types found around the world.
There is a population of about 80 of the new species in the Wetland Park, and
200 more in Mai Po, a protected wetland area nearby. Cheng said it would not be
a problem to protect the creatures, as the two habitats were designated
conservation areas. The wetland park is staging an exhibition of the larvae and
adult specimens of the fireflies until the middle of next month.
Wen pushes back as US currency bill
looms - Premier Wen Jiabao addresses a dinner at the Waldorf Astoria Hotel on
Wednesday. Premier Wen Jiabao pushed back on Wednesday against US pressure to
revalue the yuan, as US lawmakers threatened to penalise China for keeping its
currency artificially low. Wen, who is due to meet US President Barack Obama in
New York on Thursday during the U.N. General Assembly, said in a speech to US
business officials the yuan exchange rate had no relation to US trade deficits
and should not be politicised. He added that a 20 per cent appreciation of the
yuan, also called the renminbi, as demanded by US lawmakers would cause many
bankruptcies in the Chinese export sector, where firms operate on thin margins.
“The conditions for a major appreciation of the renminbi do not exist,” Wen
said, adding the appreciation of China’s currency demanded by US lawmakers would
not bring jobs back to the United States because US firms no longer make such
labour-intensive products eager to address high unemployment in an election
year.
Wong Kwong-yu, the founder of Gome
Electrical Appliances Holding (SEHK: 0493), is stepping up his efforts to recoup
control of the mainland's second biggest home appliances retailer by hiring a
high-powered global law firm. Wong, who has been sentenced to 14 years for
bribery and insider dealing and is currently being held at a Beijing detention
centre, has retained Washington and London-based Hogan Lovells. The firm's US
practice is known for representing former WorldCom boss Bernie Ebbers in
shareholder lawsuits deriving from the American technology company's spectacular
collapse in 1998. Ebbers was separately sent to prison for 25 years for
accounting fraud. Hogan Lovells was hired on Wong's behalf by his wife, Du Juan,
a fortnight ago and is officially acting for family company Shinning Crown
Holdings. Du, who was also convicted of insider trading, was freed from jail
last month after her original sentence was commuted to three years with a
three-year reprieve. Wong topped Hurun's mainland rich list until 2008. He was
detained in November 2008 on charges Beijing authorities vaguely termed as
"economic crimes", then imprisoned in May this year following a closed-door
hearing in a Beijing court, which found him guilty of bribery and insider
trading and fined him 600 million yuan (HK$696 million). Since he was
incarcerated, the fallen tycoon has been fighting with the board of the company
he founded in 1987. Wong, who owns 32.5 per cent of Gome Electrical and resigned
as its chairman in early 2009, has complained, through representatives, that the
company's growth strategy is wrong. He has asked shareholders to remove Chen
Xiao, who replaced him as chairman, from the board and has sought to prevent the
management from issuing new shares, out of fear his stake could be diluted. "We
are just here to safeguard the majority shareholder's rights," said Neil
McDonald, the Hong Kong-based Hogan Lovells partner who is representing Wong via
the tycoon's family company. At an investor meeting set for September 28,
shareholders will be asked to vote on Wong's request to remove Chen and withdraw
the board's ability to issue new shares. Wong also wants shareholders to appoint
his sister, Huang Yanhong, and Zou Xiaochun, who is the legal representative for
Gome Holdings, another family company, to the board of listed Gome Electrical.
In advance of that meeting, the public battle between Wong and Gome Electrical
is intensifying. Some Hong Kong media have claimed that Wong offered to pay
associates commission to buy Gome Electrical shares and then vote for his
proposals at the September 28 meeting. The electronics retailer issued a
statement yesterday that it had asked the Securities and Futures Commission to
examine the situation. McDonald declined to comment on behalf of Wong. Zou told
the Post in an interview that the imprisoned tycoon feels the company's current
board, which also includes three representatives from private equity house and
10 per cent shareholder Bain Capital, is ignoring his ideas about how the
business should be run. A Gome Electrical spokesman declined to comment. "Gome
has Wong's DNA," Zou said. The mainland lawyer also claimed that Gome
Electrical's current management wants to remove Wong from the company, without
specifying how exactly the board may do so. "No [stock market] listed commercial
company can expel a founding shareholder," Zou contended. On September 15, Bain
Capital converted its 1.6 billion yuan of Gome Electrical bonds into shares,
giving it a near 10 per cent holding in the company. The conversion also lowered
Wong's stake to 32.5 per cent from 36 per cent. Wong wants 376 Gome stores that
he owns injected into the listed company. That transaction could effectively
boost his shareholding in Gome Electrical.
Shanghai (right) and Beijing still
have some way to go to match London, New York, Hong Kong and Singapore as
property markets. Four steps for Beijing and Shanghai to hit next level -
China's growth story in the past decade has impressed the world on many fronts.
A decade ago, the real estate sector of the country's first-tier cities -
Shanghai and Beijing - had all the characteristics of "emerging" markets. Today,
as the world's fifth-most active real estate investment markets, they have risen
to be firmly placed in the "transitional" category, leaving other BRIC (Brazil,
Russia, India and China) cities behind, and on a fast track to advanced
maturity. Nevertheless, there are significant gaps to be filled in for the two
cities to qualify as truly advanced and to be compared with cities such as
London, New York, Hong Kong and Singapore. To leapfrog into this league, it is
essential for Shanghai and Beijing to excel in the characteristics that
collectively define "maturity": transparency, connectivity to global capital
markets, building quality, and depth of corporate tenant base. Making progress
in the first characteristic - transparency - will help improve market
efficiency, encourage stable long-term investment and equip China's domestic
players to compete in international real estate markets. A transparent real
estate market is characterised by a free flow of high-quality market
information, robust regulatory enforcement and fair transaction processes. By
this yardstick, Shanghai and Beijing have left behind their opacity and have
today attained "semi-transparency" status. One indicator of transparency is the
availability of market information. The proliferation of a domestic professional
services community, including real estate services providers, has contributed to
a notable improvement in this aspect. Meanwhile, consistent and open
implementation of real estate regulation and improving tax compliance are all
forging the integrity of an increasingly mature market. Further improvements
will potentially propel Shanghai and Beijing to the highest levels of
transparency over the next 10 years. To achieve this, it is important for China
to accelerate the creation of a real estate investment trust (reit) sector based
on international corporate governance principles and to develop performance
benchmarks for investors to measure returns. Real estate occupancy costs will
need to be more transparent and, for a healthy nationwide development, China's
second- and third-tier cities will also need to step up their regulatory
enforcements and tax compliance. The second characteristic of maturity is the
connectivity to the global capital markets. High transparency encourages
cross-border investment; and the more a city is connected to its external
physical and business networks, the better it tends to perform. China has no
shortage of domestic funds to sustain development, but the country will not
realise its fullest potential single-handedly. Many foreign investors are still
hesitant about entering the market because of perceived risks and uncertainties.
As a result, China's real estate investment market is largely driven by domestic
activities, with US$6 billion of direct commercial real estate investment coming
from domestic sources in the past four quarters. And during 2007-2009,
China-based property investors accounted for only 0.3 per cent of global
cross-border flows into direct commercial real estate. Developing further
international connections will offer more diversity in vehicles and facilitate
capital inflows, and help prepare China's money to find strong footholds abroad.
As China seeks diversification by investing overseas, capital outflows are set
to increase - but will be limited due to restrictions on capital flows. The
international strategy of China Investment Corp is, nonetheless, leading the way
through its focus on indirect vehicles. With the right space for development,
China can become a market-moving and game-changing force in international
property markets. In order to attract all these investments, strengthening the
hardware is a fundamental element, which is the third characteristic of a mature
market. An ambitious "green" building agenda will support the government's
emission and energy targets and reduce the operating costs of individual assets.
With only 70 certified green commercial buildings in China - compared with 4,000
in the US and 3,000 in Britain - there is huge potential for green buildings.
Bringing in international experience in professional property management and
comprehensive land-use master planning will contribute to the sustainability of
China's cities. The fourth characteristic the need for a strong corporate tenant
base. Being able to attract and retain major multinational corporations will
secure Shanghai and Beijing's positions as mature real estate markets with a
constant demand for quality buildings. To help move the cities to the next
level, according to the World Economic Forum, restrictions on capital flows,
tariff barriers and red tape involved in starting a business will have to be
improved. As with many aspects of China's economy, the transformation of
Shanghai and Beijing has been uniquely Chinese, shaped by a unique combination
of massive infrastructure investment, highly effective government policies,
long-term planning and impressive speed of real estate delivery. These
characteristics are less common in other real estate markets. The world is
watching. As the second-largest economy globally, any move by China will
influence the world market in one way or another. This is not only a chance for
China's first-tier cities to catch up with other leading cities, but also an
opportunity for the world - international capital markets, other emerging real
estate markets as well as other Chinese cities - to learn from this phenomenal
transition. Colin Dyer is the president and chief executive of Jones Lang
LaSalle.
China will invest up to 24 trillion yuan
(US$3.6 trillion) in urban infrastructure by 2020 - A resident in Shenyang,
capital of Northeast China's Liaoning province, shoots on Wednesday the
carriages of the city's first subway line. More than 100 local residents were
invited to experience the line's trial run that day. China may need to invest up
to 24 trillion yuan ($3.6 trillion) in urban infrastructure by 2020 to
accommodate the increasing number of rural residents moving to the cities,
according to a new report by a government think tank. China's urbanization rate
is currently around 47 percent and is increasing by about 1 percentage point
each year. If the nation continues its urbanization-friendly policies, the rate
could rise to 65 percent by 2020, according to the report released on Tuesday by
the China Development Research Foundation. To accommodate this increase in the
urban population, the report said the country may need to invest at least 16
trillion yuan in roads, railways, power plants, water systems and social
services. But it added that this could be a conservative estimate. "If the ratio
of urban infrastructure investment to the country's gross domestic product
reaches 4 percent, which is the average rate in developing countries, then the
total investment could amount to 24 trillion yuan." New transportation networks,
including roads, bridges and subways, will account for about 56 percent of the
estimated investment, the report said. Financing the expected urban expansion
poses a major challenge. The report said that in 2008, about 32 percent of the
funding for urban infrastructure came from the government, 30 percent from bank
loans and the remainder from the relevant enterprises. However, at present, all
local government finance channels rely on land prices, as they either sell land
to raise money or use land to secure loans. Such a financing model will not be
sustainable, the report concludes. Once the property market cools, it will have
a detrimental effect on the ability of local governments to raise funds. To meet
the projected financing requirements, the report suggests non-State investors
should provide a larger proportion of funds for future urban infrastructure
projects.
Fireworks are seen during the
opening ceremony of the 5th Special Olympics Games of the People's Republic of
China in Fuzhou, southeast China's Fujian Province, Sept 19, 2010. This Special
olympics involves 11 major games such as track and field, swimming,
weightlifting, etc. There will be 39 delegations taking part in the game,
involving provinces, autonomous regions, municipalities, Xinjiang Production and
Construction Corps, Hong Kong, Macao, Taiwan and delegations from South Korea,
United States and Singapore.
Smoke rises during
the military exercise preview of the "Peace Mission 2010", in Matybulak Range of
Kazakhstan, Sept. 22, 2010. "Peace Mission 2010," a joint anti-terrorism
exercise involving five Shanghai Cooperation Organization (SCO) members, held
preparatory drills Wednesday.
A remote-sensing satellite "Yaogan
XI" is launched from the Jiuquan Satellite Launch Center of northwest China's
Gansu Province at 10:42 a.m. (Beijing Time) on Sept. 22, 2010. The satellite was
sent into space aboard a Long March 2-D carrier rocket, according to the center.
In a world of zero interest rates, some
things are bound to go wrong. In Hong Kong's case, make that very wrong.
Cheung Kong begins low with prices
for Ma On Shan units - Developer aims to build enthusiasm for first Oceanaire
batch. Mainland investors prefer properties close to transit hubs such as Ma On
Shan Station. Cheung Kong (Holdings) (SEHK: 0001) will offer the first batch of
its Ma On Shan residential project at lower than expected prices in a bid to
drum up home sales during the "golden week" holiday starting next Friday. The
first batch of 108 flats at Oceanaire, about five minutes' walk from Heng On
Station on the Ma On Shan rail line, will be launched at an average of HK$6,438
per square foot on a staggered payment basis. Buyers have to pay 30 per cent of
the flat's value as an initial deposit and the remaining 70 per cent can be
deferred until the development is due for completion in November next year. The
asking prices are from 2 per cent to 28 per cent higher than the average
HK$5,000 to HK$6,300 per square foot asking price in the secondary market in the
area, according to Centaline Property Agency. "The offer price is below our
expectation of HK$8,000 per square foot," said Janny Leung, an assistant sales
manager at Midland Realty's Ma On Shan branch. Prices of the flats, which range
in size from 974 to 1,267 sq ft, go from HK$4.87 million to HK$9.1 million, or
between HK$5,003 and HK$7,316 per square foot. Buyers who pay in cash will
receive a 6 per cent discount on the listed price. This means the cheapest unit
would cost HK$4.58 million or HK$4,703 per square foot for cash buyers.
Young couples priced out of home market - Soaring prices mean Ann Kan and her
fiance have to settle for a public housing flat. Low-income families are being
left behind in the battle to buy their own homes as soaring house prices push
the cost of public and subsidised flats beyond their reach. The story of Ann
Kan, a young clerk who hoped to buy a flat with her fiance, is typical. "We are
getting married in November and still do not have a flat to move into although
we began trying to buy something half a year ago," she said. The couple had
hoped to buy a flat in a private housing estate with a budget of HK$300,000 as a
down payment, she said. "We had also applied to buy a Home Ownership Scheme flat
(which offers flats at subsidized prices through the government's Assisted
Housing Scheme) in June." "But we didn't get a chance to buy a flat because our
ballot number was too low," she said. "So then we considered buying a flat in an
old private housing estate - but the prices were all too high and on top of that
we would need to pay management fees and other expenses. "Second-hand HOS or
public housing flats are now also too expensive. We could not afford to have a
baby if we bought a flat and we would rather have a baby." The young couple have
decided to apply for public housing scheme and, until they are successful they
will live separately with their parents. Other young couples have also found
themselves priced out of the market and forced to apply for assisted housing.
"Increasing property prices have forced them to buy HOS or public housing in the
secondary market recently," said Sunny Lee, a property agent who focuses on the
sale of subsidized housing. "That's why we saw so many record-breaking
transactions," he said. A 778 square foot flat in Yiu Chung House in the Yiu On
Estate in Sha Tin was sold for HK$2.07 million on the open market this month, a
record for a public housing flat. The vendor bought the flat for HK$1.8 million
in February. Just a few days later a new record was set when an 800 sq ft flat
in Lung Wah House in the Lower Wong Tai Sin Estate was sold for HK$2.3 million.
The price was equivalent to that of a small flat in an old private housing
estate. Just six years ago, public housing flats cost less than HK$1 million,
according to data from property agency Centaline Property Agency. In the first
eight months of this year 172 public housing flats were resold at prices above
HK$1 million, an 118 per cent increase on the 79 deals recorded in the same
period last year. Public housing unit sales totalled HK$352 million, 13.9 per
cent more than the HK$309 million recorded in the same period last year and the
highest sales volume in the 10 years since records started being kept. Lee said
many young couples were now buying public or HOS flats in the secondary market.
"Their average household income is about HK$25,000 a month and if they bought
private housing their monthly mortgage payment would amount to about half of
their salary," he said. "So private housing is just too expensive for them. At
the same time it is difficult to obtain an HOS flat as there are too many
applicants and a limited number of flats. This forces them to buy subsidised
flats in the secondary or open market." Monthly mortgage payments for public
housing range from HK$4,000 to HK$6,000, while payments for HOS flats range
between HK$5,000 and HK$6,000. "Many young couples find subsidised housing is
relatively affordable, compared with private housing. The efficiency rates of
the subsidised flats are also higher than private housing." Lee estimates the
prices of HOS flats in the secondary market have risen by 20 to 30 per cent this
year. After such a sharp increase in the prices of subsidized housing, finding
an affordable flat will be tough for many low-income families.
Wen threatens new action in Japan row -
Premier Wen Jiabao speaks during a meeting with representatives of Chinese
nationals and Chinese Americans in the United States on Tuesday. China’s premier
threatened "further actions" if Japan fails immediately to release a trawler
captain, as Beijing staged its highest-level intervention yet in a bitter row
between Asia’s biggest powers. Japan in turn called for talks to resolve the
feud, but rejected China’s territorial claim to disputed islets near where the
Chinese skipper was apprehended by Japanese coast guard crews two weeks ago. “I
strongly urge the Japanese side to release the skipper immediately and
unconditionally,” Premier Wen Jiabao said in New York, according to the official
Xinhua news agency. “If Japan clings to its mistake, China will take further
actions, and the Japanese side shall bear all the consequences that arise,” he
said, urging Tokyo to “correct its mistakes to bring relations back on track”.
The dispute between Asia’s rising giant and its most advanced economy has drawn
concern in Washington, and both Wen and Japanese Prime Minister Naoto Kan are
due to hold talks at the UN this week with US President Barack Obama.
China will build four industrial
zones for ocean engineering equipment and develop several enterprises to service
the field over the next 10 to 20 years, each with a projected revenue of 10
billion yuan ($1.49 billion), a senior official said. The nation's long-term
goal is to form a complete industrial chain in this sector, Zhang Xiangmu,
director-general of the equipment industry department at the Ministry of
Industry and Information Technology (MIIT), said on Tuesday at the International
Forum on the Development of Ocean Engineering. "The world ocean map will undergo
fundamental changes in the next 50 years. Major coastal nations are all
developing and exploring ocean-related industries," Zhang said. The
International Energy Agency said that China, which used an equivalent of 2.26
billion tons of petroleum in 2009, has overtaken the United States to become the
world's largest consumer of energy. The ocean has now become the new frontier
for energy- thirsty nations like China, which are investing in the research and
development of this resource. In the past decade, 60 percent of new oil and gas
fields were located in the ocean, which is expected to provide 35 percent of the
world's total oil output and 41 percent of its natural gas by the year 2020.
"Global investment in the research and development of ocean oil and gas
exploitation has reached $50 billion to $60 billion each year and the number is
expected to exceed $80 billion during the next five years," Zhang said.
According to Zhang, 85 percent of the 116 industries in China are related to
ocean engineering, a promising sector for national growth and job opportunities.
"Whoever has the best ocean engineering technology will have the upper hand in
ocean development. This is strategically vital to our nation," Zhang said. "As
of 2008, the value of the ocean engineering equipment market totaled $50 billion
yuan and it is expected to exceed $100 billion in the next decade. We must speed
up our efforts to explore the ocean's resources," said Chen Mingyi, honorary
chairman of the Fujian Shipbuilding Industry Association.
Tai Hang residents take part in
the village's Fire Dragon Dance, staged every year since 1880, when a village
leader had a dream that parading a mock serpent stuck with burning incense
sticks would rid its people of plague. The dance, featuring a dragon 70 metres
long made from specially imported grass, and 36,000 incense sticks, will be
staged again on Moon Festival September 21st.
Hong Kong bid for Asian Game 2023
to spend US$3.87 billion on new venues - Hong Kong could make a financial loss
of about HK$13.8 billion if its bid to host the 2023 Asian Games succeeds,
calculations from a government consultation document released yesterday show.
Tsang Tak-sing and his permanent secretary, Raymond Young Lap-moon (left),
yesterday. The document estimates total capital and operating costs of HK$13.7
billion to HK$14.5 billion at current prices and revenue of HK$700 million to
HK$860 million from ticket sales, merchandising and sponsorship. The estimates
exclude the HK$30.17 billion construction cost of eight new venues, as the
government said they were in the pipeline whether the city hosted the Games or
not. They also do not take into account expected economic benefits of HK$400
million to HK$600 million from up to 69,000 tourists and the creation of up to
11,170 jobs. The cost estimate for the city's second bid for the Games - a bid
for the 2006 event, lodged in 2000, lost to Doha - includes HK$10.5 billion in
capital spending on upgrading sports venues and operating costs ranging from
HK$3.2 billion to HK$4 billion. The planned new venues include the nearly HK$20
billion Kai Tak multipurpose stadium complex, five sports centres, a sports
ground and a redeveloped tennis centre, which are set to be completed by 2023.
The cost of building a 3,000-flat athletes' village is also excluded as the
government has yet to decide if local developers or government-linked
organisations will build them. Secretary for Home Affairs Tsang Tak-sing
described pouring billions into the Games as an investment that would boost the
city's sports development, social cohesion and international status. "Drawing
experience from [last year's] East Asian Games, we will continue to adhere to
the people-based principle and take into account the interests of the whole
community. We will not bring in extravagant infrastructure that creates no
long-term benefits," Tsang said. "The East Asian Games has not created any
`white elephant' facilities and organising the Asian Games will not produce any
either." Tsang and Asian Games Bid Team head Eddy Chan Yuk-tak said that despite
the huge expenditure involved, there were many tangible and intangible benefits
that would be brought to Hong Kong by the Games. Tsang said bidding for the
Games was "an opportunity not to be missed", and the government would listen to
public opinion during the six-week consultation up to November 3. It would then
decide by the end of January whether to file a formal bid to the Olympic Council
of Asia. Kuala Lumpur, Hanoi, Taipei, Dubai and New Delhi were possible rivals
for the Games, a government official said. Based on population projections, Hong
Kong would need 19 more sports venues to meet demand by 2020, meaning it would
have to build new venues in any case, the official said. Members of the
Legislative Council's home affairs panel indicated some reservations about the
Games and criticised the government for not providing a detailed budget. "You
are pushing us to decide and the consultation only lasts for a few weeks,"
unionist legislator Wong Kwok-hing said, adding that although he supported the
plan, the city had to consider if it had the capability to host the event.
Democrat Kam Nai-wai questioned the estimates. "Will we underestimate the
spending? Have we calculated the cost of building the transport facilities we
will need?" He also wondered whether allowance had been made for rising costs,
pointing to the increase in the cost of the high-speed Hong Kong-Guangzhou
railway from HK$30 billion to more than HK$60 billion. The Civic Party's Tanya
Chan called on the government to unveil more financial details. She said the
government should tell the public if the sports facilities for ordinary
residents would be affected if the application failed. "What I really fear is
that hosting the event will be like burning money for fireworks," she said. But
the proposal won stronger support from sports circles. Football Association
chairman Brian Leung Hung-tak said the bid would provide more facilities for the
sport, adding that Hong Kong could never have won last year's East Asian Games
soccer gold medal if the event had not been held in Hong Kong. Timothy Fok Tsun-ting,
president of the Sports Federation and Olympic Committee of Hong Kong, said
holding the Asian Games would not only improve local athletes' standards, but
also the public's interest in sport. Hong Kong proposes featuring 35 sports in
the 2023 Games - including seven non-Olympic sports such as bowling, cricket,
wushu and squash - and expects to draw 11,000 athletes. In its earlier bid, the
government estimated hosting the 2006 Games would incur a loss of HK$730.5
million. Doha spent HK$21.7 billion on its Games, while Guangzhou has invested
an estimated 200 billion yuan (HK$230 billion) on the next Games, which will
take place in November.
Hong Kong's slice of mainland
mooncake market grows - Bakers savour 14b (US$2 billion) yuan market for
seasonal delicacy - A customer bags purchases at an outlet for Tai Pan mooncakes
in a Beijing mall. The company plans to expand distribution to more cities on
the mainland. 
Twelve firemen were injured as
they battled to reach crewmen trapped by an explosion on a cargo vessel - only
to be caught by a second blast. The 50-meter Yue Hai 638 - sheltering from
tropical storm Fanapi at the Yau Ma Tei anchorage early yesterday - caught fire
after an explosion in one of nine containers just before 1am. The Fire Services
raised the No 3 fire alert about half an hour later. About 140 firemen were soon
at the scene, with many going on board to fight the fire and help save the six
trapped crewmen. But then came the second explosion, which forced rescuers and
the now-freed crewmen to jump off the boat. No one was left trapped, but the 12
firemen and six crew received varying degrees of burns or were injured by flying
debris. That blast lit the sky, with ash and smoke billowing up. People on Hong
Kong Island were among those who saw a huge fireball. The situation was said to
be under control and the fire out a minute before 6am, so fire crews started to
stand down. But then came a third blast at 6.45am, and full operations resumed.
Part of the area was cordoned off for several hours in case of more blasts. Of
the 12 injured firemen, five remained in hospital last night. One was in serious
condition, three were stable and one was satisfactory. Fire Services chief Lo
Chun-hung said his men took "appropriate measures" when boarding the vessel. But
a department spokesman added later that the firemen would have been equipped
differently had they known of dangerous goods on board. According to Hua Sheng
(Hong Kong) Shipping, the Yue Hai 638 arrived from Guangzhou with scrap metal
and miscellaneous goods. Executive Eric Lui Tze-hung said the company was
working with an old business partner in the re-export trade, and documents were
clear about the cargo being mainly scrap metal. But inspectors from the Marine
Department said they will be on board the blackened vessel today to determine
what else it might have been carrying.
Thousands of airline passengers were
halted in their tracks or left up in the air last night as more than 80 flights
were delayed on the ground and above Hong Kong International Airport. That came
after a fully-loaded German cargo plane broke down and blocked one of the two
runways just as it was cleared for takeoff from Chek Lap Kok. The breakdown
meant the Airport Authority had to close the southern runway immediately from
6pm. It was still closed at midnight. Eight-two flights that were estimated to
have at least 8,000 passengers were affected in the first three hours of the
runway closure. Thirty-one departures and 51 arrivals were delayed. A Cathay
Pacific spokesman said most of its flights were delayed by between one and two
hours. Many of the people sitting or standing around at the airport said they
had not been notified of a reason for the delay. "I've been waiting for my
departure for nearly four hours," said one man. "No one has told me anything
about the closure of a runway." All flights had to use the northern runway, with
about 30 flights taking off each hour. The Air Cargo Germany Boeing 747 had been
taxiing for takeoff when the pilot reported a mechanical failure. A maintenance
team from the Hong Kong Aircraft Engineering was working to repair the cargo
plane where it stood on the tarmac. And a spokesman for the Airport Authority
said an emergency response center had been activated to coordinate procedures to
clear the runway. In April, the airport's northern runway was closed for two
hours after a Cathay Pacific flight from Indonesia reported an engine failure
and made an emergency landing. Eight people were injured in the post-landing
evacuation. A third runway is under review as part of the authority's Airport
Master Plan 2030 Study. That is expected to be completed by the end of this
year. The review will examine airport facilities with a view to maintaining Hong
Kong's status and competitive edge as an international and regional aviation
hub. It is expected to take from 10 to 12 years to build a new runway. There
have been suggestions the present two runways will have reached operational
capacity in 10 years.
TVB general manager Stephen Chan Chi-wan
arrives at the Eastern Court in Sai Wan Ho on Tuesday morning to face charges of
conspiring to defraud the broadcaster. Chan and fellow defendants Tseng Pei-kun
and Wilson Chan Wing-shuen were released on bail.
TVB (SEHK: 0511) chairwoman Mona
Fong Yat-wah, the wife of Run Run Shaw, may be called to testify in a corruption
case featuring the broadcaster's general manager, showbiz personality Stephen
Chan Chi-wan, according to the provisional list of witnesses. TVB general
manager Stephen Chan Chi-wan (front), accompanied by actor Wong Hei (back),
leaves Eastern Court after Chan and two others were allowed bail and freedom to
travel. The case will be transferred to the District Court on October 19.
Hong Kong’s dominant air carrier Cathay
Pacific Airways (SEHK: 0293) said on Tuesday it has agreed to buy six Boeing
777-300ER aircraft for about US$1.61 billion (about HK$12.48 billion). The news
follows an announcement by Cathay last Thursday that it planned to buy 30 Airbus
aircraft for about US$7.82 billion amid a revival in international traffic.
Midas prospectus points to
possible base switch to HK - Chief financial officer Tan Kai Teck (left), chief
executive Patrick Chew and general manager Wang Jia Xin offer details of the
listing. Although Singapore-based Midas Holdings is seeking a secondary listing
in Hong Kong, it said Hong Kong may ultimately become its primary listing. The
company said in its prospectus that the listing authorities in the city might
determine that Midas' primary listing was in Hong Kong if, among other things,
most trading occurred on the Hong Kong bourse. "There is no assurance that our
secondary listing status will continue in future. In such an event, the waivers
from strict compliance granted to our company on the basis of a secondary
listing will be revoked," the prospectus said. However, Patrick Chew Hwa Kwang,
chief executive and co-founder of the company, which makes extruded aluminium
alloy products, said Singapore would remain the group's primary listing for the
foreseeable future. "As our business and operations are principally located in
China, we believe the Hong Kong listing will enhance Midas's profile in China
and Hong Kong, thereby strengthening its long-term growth prospects," he said.
The Hong Kong listing would provide an additional channel to raise capital and
gain access to a wider range of institutional and retail investors, Chew said.
Midas, which has a market capitalisation of US$725 million, plans to offer 220
million shares on the Hong Kong main board at a maximum offer of HK$6.10 each,
raising a maximum of HK$1.34 billion. Trading of Midas' Hong Kong shares start
on October 6, with 90 per cent of the offer shares allocated to institutional
investors. "Market feedback is positive," a market source said. In the first
quarter, 96.7 per cent of Midas' revenue came from its aluminium business, of
which 69.6 per cent served China's train market, the prospectus said. The
company accounted for 66 per cent of the mainland market for extruded aluminium
products in high-speed trains and metro train carriages. During the first
quarter, Midas' revenue grew 47.5 per cent to S$46.05 million (HK$267.53
million), while basic earnings per share rose 2 per cent to S$1.03. "Our order
book is 1.5 billion yuan [HK$1.73 billion], which provides good visibility for
our revenue and bottom line for the next two years," said Midas chief financial
officer Tan Kai Teck. The firm plans to boost annual production capacity from
20,000 tonnes at the end of last year to 50,000 tonnes at the end of this year,
and from 300 tram cars to 1,000 tram cars over the same period, Chew said.
"China is currently undertaking the most aggressive expansion of railway
infrastructure in history, with two trillion yuan to be spent from 2010 to
2012," he said.
Buildings lie
empty as owners refuse to sell - Lights remain off at properties in prime
locations - A handful of buildings are lying empty in some of the city's most
prime locations. They are vacant not because they're difficult to sell - far
from it. The buildings' owners simply don't want to sell. Caine Terrace, a
luxury residential complex on Kennedy Road in Mid-Levels, is one such property.
It's been vacant for about 20 years, according to Ricky Cheung Wai-kei,
Ricacorp's Wan Chai manager. A company called Colworth bought the property in
1993 for HK$240 million, according to a Land Registry search. Cheung said he
contacted the company three weeks ago but was unable to persuade the firm to
sell. "Their reply was that they don't have any plans to sell at the moment,"
Cheung said. Ken Lam, who lives at Merry Garden on Kennedy Road near the empty
complex, is keen to see it come to life again. "It would be even better if it
was redeveloped; that would lift the price of my home," Lam said. "Caine Terrace
is a very nice location. Sometimes I walk past, the gate is always open." Also
eerily quiet is a nine-storey building at No22 Leighton Road, in the heart of
bustling Causeway Bay. Mona Kwok, an agent with Ricacorp, has had the building
in her sights for years. She said a company called Laypark has owned the
property - which has been vacant for more than seven years - since 1987. Despite
offers from investors, the wealthy family behind Laypark has held onto the
property, Kwok said. Kwok's colleague, Eric Yuen, said one of the family members
behind the company wanted to keep the property for his grandson, who is 10.
The Philippine government yesterday
released a harshly worded report that laid bare the chain of mistakes by the
government, police and media during the August 23 hostage-taking. President
Benigno Aquino said the report by the Incident Investigation and Review
Committee recommended that 12 individuals and three broadcast networks be held
liable for the botched rescue that left eight Hongkongers dead. "This report is
part of the justice to be given to the victims ... This is a manifestation of
the concrete actions we have taken to render justice to all the victims of this
tragedy," Aquino said. A copy was delivered to Beijing earlier in the day. The
Philippine government released only 61 pages of the 84-page report, omitting the
"conclusions on accountability", recommendations, highlights and epilogue.
Aquino said those would be released after he had decided how to act on the
report. While many questions remain, the report concluded that the seven
tourists and their guide were killed aboard a hijacked bus in Manila by
hostage-taker Rolando Mendoza, "based on case materials reviewed so far", the
report stated. Hong Kong officials were not convinced. A statement from the
office of Chief Executive Donald Tsang Yam-kuen said: "The report admits that
the causes of death of the eight victims and the causes of injury of the seven
others need to be further ascertained. Therefore, final conclusions have yet to
be drawn. We expect the Philippine authorities to step up their efforts to
complete the work as soon as possible. "While we are not yet in a position to
comment on the relevant conclusions, we acknowledge that the committee has been
serious in handling the matter." The report criticised the "total lack of a
genuinely serious and well-planned out negotiation strategy" and the
"inefficient, disorganised and stalled assault" - critical mistakes that it said
led to the deadly end to the hostage stand-off. The report outlined in chilling
detail the events and identified both systemic and individual failures. At the
top of the list was the failure of Manila Mayor Alfredo Lim to properly activate
the crisis management committee, and more specifically to designate sub-groups
to co-ordinate intelligence-gathering, psychological assessment of Mendoza and
manage the media. Authorities also failed to appreciate the nature of the
demands of Mendoza, a sacked policeman. "How or when the demand for `an order
for reinstatement to the service' was convoluted to `a letter promising to
review Mendoza's case' by the Ombudsman could not be satisfactorily explained by
the authorities," the report said. The Ombudsman's letter and the way it was
presented to Mendoza was another key turning point in the crisis. The hostage
negotiators showed "lack of judgment" in including Mendoza's brother, Gregorio,
with the negotiating team. Mendoza fired a warning shot after becoming visibly
agitated by his brother's words during the encounter. Top officials became
distracted by Gregorio, who they accused of being a conspirator and an accessory
to his brother. "Precious time to salvage the negotiations, already critical at
this later hour, was lost. The windows of opportunity were closing. This
incident led to a chain of events that became the tipping point that pushed
Mendoza to become fatally hostile." Gregorio's arrest by police led Mendoza to
begin shooting. The report criticised the decision by Lim and ground commander
Rodolfo Magtibay to leave the command post to eat, an absence that "created a
vacuum in command or decision-makers. This resulted in the inability of those
present to handle crisis events as they unfolded". The report took aim at top
police brass for their failure to implement a presidential order that the
Philippine National Police Special Action Force, the country's elite unit, be
deployed in the assault. The poorly trained SWAT team of the Manila police was
used instead. "Foremost of [the reasons for the assault's failure] was the clear
and patent insubordination of General Magtibay [in failing] to follow
categorical orders from the president himself," the report stated. Former
National Police chief Jesus Verzosa and Manila police director Leocadio Santiago
"miserably failed" in their duty to ensure Aquino's order was implemented. The
investigating panel recommended criminal or administrative charges against a
dozen police and government officials, and journalists. These are: Lim, Verzosa,
Magtibay, Santiago, chief hostage negotiator Police Superintendent Orlando Yebra,
interior undersecretary Rico Puno, SWAT team leader Chief Inspector Santiago
Pascual, Ombudsman Merceditas Gutierrez, Deputy Ombudsman Emilio Gonzalez,
journalists Erwin Tulfo and Michael Rogas, and Manila Vice-Mayor Isko Moreno.
Aquino said he would decide whether to follow the recommendations when he
returns from a seven-day working visit to the United States. "As I am now
leaving on an important mission, I want to emphasise that I do not want make
decisions regarding such important matters without a thorough review. I will
study their findings upon my return, and decide accordingly."
Japan said on Tuesday it
and China should avoid fuelling nationalism over a sea dispute and called for
the row to be resolved without affecting business between Asia's two biggest
economies. A man holds a copy of Global Times at newsstand in Beijing reporting
tensions between China and Japan on Tuesday. China has suspended high-level
exchanges with Japan and promised tough countermeasures after a Japanese court
extended the detention of a Chinese captain whose trawler collided with two
Japanese coastguard ships this month. The dispute has flared since Japan
arrested the captain, accusing him of deliberately striking a patrol ship and
obstructing officers near uninhabited islets in the East China Sea which they
both claim. China calls the islets Diaoyu and Japan calls them Senkaku.
Ground for highest building in
design in Chinese mainland broken. 
Combo Photo shows the site of Shanghai
Tower before construction on Nov. 27, 2008 (L), and under construction on Sept.
20, 2010 (R), in Shanghai, east China. The ground for the highest building in
design in Chinese mainland, the 632-meter high, 128-storey skycraper dubbed
Shanghai Tower was broken recently. The building will be completed and put into
use in 2014.
An intercity train between Nanchang
and Jiujiang in East China's Jiangxi province runs on its first journey, Sept
20, 2010. The intercity high-speed rail line connecting two major cities in the
province began operation on Monday, as part of the long-term plan of the railway
network in China. The new train service would cover the 135-km journey in 45
minutes.
CNNC to infuse 800 billion yuan by
2020, list arm to fund key projects - China National Nuclear Corp (CNNC), the
country's largest nuclear power company, plans to invest 800 billion yuan
($117.6 billion) into nuclear projects by 2020, in line with the country's move
to accelerate the development of the industry. Total investment in nuclear power
plants, in which CNNC will hold controlling stakes, is expected to touch 500
billion yuan by 2015, Sun Youqi, vice-president of CNNC said during a press
conference over the weekend. In order to fund the company's expansion target,
CNNC plans to list its subsidiary, CNNC Nuclear Power Co Ltd, said Chen Hua,
assistant president of CNNC. "We plan to rope in strategic investors by the end
of this year. Our company will get ready for listing in the first half of next
year," said Chen, who is also the president of CNNC Nuclear Power Co Ltd. Zu
Bin, a spokesman for China Nuclear Engineering Group Co, another major nuclear
plants builder, also told reporters at the same conference that his company was
also scheduled to go in for an initial public offering in Shanghai next year.
Meanwhile, Sun said CNNC's growth strategy would be in accordance with the
development of the nuclear power sector in China. The country's nuclear power
industry, which dates back to 1955, has seen accelerated growth since 2005, he
added. At present, China has 11 operational nuclear power reactors with a
combined capacity of around 9,100 megawatts (mW). Still, nuclear power only
accounts for around 1 percent of the country's total energy capacity. Nuclear
power capacity is expected to touch 70,000 to 80,000 mW by 2020, accounting for
around 5 percent of the total installed power capacity, according to industry
insiders. Development of the nuclear power industry will be an important
component of the country's energy industry strategy during the 12th Five-Year
Plan period (2011-2015), Li Junfeng, deputy director-general of the Energy
Research Institute of the National Development and Reform Commission (NDRC) had
told China Daily earlier. "As for clean energy sources, they will be prioritized
in terms of scale, with nuclear coming first, and wind and solar following," he
said. CNNC, which operates seven reactors currently, is building 10 reactors.
The company has 12 reactors having received NDRC's initial clearance, Sun said.
Sun said CNNC would also like to tap the overseas market in future, mainly
focusing on international cooperation in uranium resources.
Boats compete on the second day of the
Royal Hong Kong Yacht Club's autumn regatta. After a weekend of varied weather,
90 boats took advantage of stiffer breezes yesterday courtesy of Typhoon Fanapi,
which hit Taiwan and was heading to the city.
Macau's buildings safe, but culture
collapsing - Patrick Rozario, of Grant Thornton, in the former family home in
Macau, Casa Garden, which is now on the World Heritage List. The European-style
mansions scattered throughout Macau reflect its 400 years of Portuguese
heritage, but in a sad reminder of the city's changing face the families who
lived in them are mostly long gone. Macanese - those born through mixed
marriages between Portuguese and local Chinese - numbered more than 100,000 in
the 1960s. Now only about 20,000 call Macau home as Hong Kong and places further
afield attract a growing diaspora of the city's colourful minority. Unlike Hong
Kong, Macau has successfully preserved many of the buildings of its past.
Keeping the people - and the cultural heritage that goes with it - is proving
tougher. Mainland tourists now flock to Macau to admire the green and pinks of
the Portuguese architecture, the big windows of the public buildings and
European-style gardens. Off the main streets the smell of Portuguese and Chinese
fusion food emanates from countless restaurants. But like that other famous
tourist trap Venice, the original inhabitants are in danger of becoming an
endangered species. The UN's cultural organisation Unesco has classified the
Macanese language - Patua - as a critically "endangered language".
Mining, energy firms aim to raise billions
from HK public offerings - Mongolia's south Gobi Desert area has one of the
world's few unexploited reserves of coking coal. Hong Kong's initial public
offering market is set to sizzle this month, with four companies, including
Mongolia Mining and Trony Solar, aiming to raise a combined HK$15.3 billion.
Mongolia Mining, which mines coking coal in the landlocked nation and sells to
the world's biggest steel industry in China, is aiming to raise around US$700
million to fund capacity and infrastructure expansion, people familiar with the
deal said. The firm operates the Ukhaa Khudag mine about 245 kilometres from the
Mongolian-Chinese border. It is located within the Tavan Tolgoi coal region, one
of the world's few unexploited major sources of coking coal. It plans to expand
output from 3.8 million tonnes this year to 7 million tons next year, 10 million
tonnes in 2012 and 15 million tonnes in 2013. It has proven and probable
reserves of 286 million tons. Including possible reserves, total resources
amount to 500 million tons, according to a JP Morgan research report. JP Morgan
and Citi are the deal's joint bookrunners.
Flights arriving and taking off from Hong Kong International Airport set a
monthly record of 27,135 last month, up 14.5 percent from a year ago, on robust
demand during the peak summer season. The Airport Authority said a record 880
aircraft landed or took off each day. Cross-border land and sea transit traffic
linking up with Chek Lap Kok also saw record highs. Meanwhile, passenger and
cargo volumes continued to improve, though edging down slightly from July. "We
anticipate the coming months will continue to see growth, as travel usually
peaks at year-end, and in particular, during festivals or holidays such as the
Mid-Autumn Festival and the National Day Golden Week," authority chief executive
Stanley Hui Hon-chung said. Last month, the airport handled 4.7 million
passengers and 346,000 tonnes of cargo, up 9.2 percent and 17 percent from last
year. In July, there were 4.73 million passengers and 363,000 tonnes of cargo.
The number of residents flying in and out surged 19 percent, while visitors
climbed 12 percent from last year. The authority said passenger traffic to and
from the mainland and Southeast Asia was the highest among major regions.
Stronger air passenger figures spilled over to boost land and sea transport. A
total of 227,000 passengers - up 33 percent year on year - used the SkyPier
ferry terminal to travel between the Pearl River Delta and Chek Lap Kok. A
further 163,000 people used cross-border coach and limousine services, up 41
percent. On the cargo front, a 29 percent rise in exports helped boost total
cargo growth, with exports to Europe and North America showing stronger pick-ups
than other regions.
An underwater restaurant at Ocean Park
is expected to hook the public and help boost food sales by 50 percent.
Neptune's will be among several new food and beverage outlets when one of the
world's largest aquariums opens at the end of the year. Grand Aquarium is the
flagship attraction of Aqua City, under the HK$5.5 billion master redevelopment
plan unveiled four years ago. Joseph Leung Kai-shing, the park's executive
director of revenue, said Neptune's "will be an experience like no other in Asia
for guests to dine beside such a giant tank with more than 400 fish species."
Leung expects the 250-seat restaurant to produce significant revenue for the
park as it targets high-spending customers with deluxe Japanese cuisine using
sustainable seafood. Staff strength has been increased from 30 in 2005 to 183 to
keep pace with rapid expansion. Stephen Chow Wai-ming, operations manager for
food and beverage, said with the opening of Neptune's and the Lagoon kiosk in
the 20,000 square-meter Aqua City, there will be 29 kiosks and six restaurants
by the end of the year. Expansion is expected to be completed within two years
with the number of large entertainment activities doubling to about 70. Upcoming
projects include the Rain Forest, Thrill Mountain and Polar Adventure.
Meanwhile, Leung said the number of retail souvenir stores will increase from
the existing 14 to 24, offering a selection of more than 10,000 marine-themed
souvenir items. Marine conservation remains the key message the theme park is
seeking to spread through merchandise. "To educate our guests, we are attaching
more interesting messages to our souvenirs," Leung said. The 33-year-old park
attracted more than five million visitors based on annual attendance in 2008,
ranking it 15th in the world, according to a report by the Themed Entertainment
Association. Expansion of the attraction is going hand in hand with the
construction of three high-end Ocean Park hotels, which are due for completion
from 2013 to 2015.
Hong Kong Chief
Executive Donald Tsang (C) and his wife pose for photos with performers during
an evening gala celebrating the upcoming mid-autumn day in Hong Kong, south
China, Sept. 19, 2010. 
China's Hot money branches out into
new fields - Bottles of 1990 Chateau Margaux on show at a recent auction in Hong
Kong. An increasing number of Chinese business people have become wine
collectors for investment purposes as well as pleasure. In addition to investing
in stocks, real estate and antiques, Chinese billionaires are discovering a new
source of big returns - the wine market. The yield rate from some famous French
vintages during the first half of this year has exceeded 30 percent, far above
any alternative. The price of historic and exclusive Chateau Lafite Rothschild,
from Bordeaux in France and the most popular wine brand in China, is rising
monthly. In July, one bottle of the 2007 vintage cost 4,500 yuan. It jumped to
5,000 yuan in August and is expected to exceed 6,000 yuan with the Mid-Autumn
Festival and National Day holiday around the corner. "The wine market is new in
China and has the most potential," said Jiang Yu, a private vineyard owner who
used to be a professional real estate investor. He followed his nose and the
money into the more profitable wine industry after the Chinese government
tightened property policies this year. Jin Cunxing from Wenzhou, in East China's
Zhejiang province, who is also a former property investor, traveled to Bordeaux
six months ago to buy hundreds of bottles of Chateau Lafite Rothschild. He said:
"I don't know where all these Chinese buyers have come from. The peak season
isn't here yet but the price of vintage wines has increased 30 percent this
year." Since there is no general agent for importing foreign wines in China, the
number of wine dealers has taken off very fast. According to Guangzhou Boboqiu
Wine Co Ltd, one of the biggest vintage wine importers in China, more than 20
dealers entered the business just between June and August this year. Xu Weibo,
general manager of Hong Kong Fine Wine Auction Limited, told China Daily that
the company, founded in November 2009, aimed to provide a marketplace for wine
enthusiasts, collectors and sellers to acquire or sell fine and rare wines on
the Internet. It estimates up to 60 percent of wine traded on its website ends
up on the Chinese mainland. Xu is a wine collector for investment as well as
pleasure. When he swirls wine in a goblet, you could say he is actually managing
his assets. "We have invested in some 60 different fine wine brands around the
world worth a total of HK$100 million ($13 million)," said Xu. "I believe the
average annual rate of return will range from 20 percent to 30 percent." With
more than four years of wine investment experience, Xu said investors should
first master good knowledge of wine culture and collection as well as wine
investment skills, and then enter the business cautiously. "In the wine world,
the ones that are worth collecting and investing in only account for 0.1 percent
of the total," he said. There are mainly two ways to carry out wine investment:
buy the actual product or buy wine futures (also known as "en primeur"). Both of
them tend to be long-term investments in the western world but the current
behavior in China is more like hot money speculation. En primeur is a method of
purchasing wines early while a vintage is still in a barrel, offering the
customer the opportunity to invest in a particular wine before it is bottled.
Payment is made at an early stage, a year or 18 months prior to the official
release of a vintage. In general, wines are much cheaper during the en primeur
period than they will be once bottled and released on the market. Also, the
winery could hedge their costs by the income from selling en primeur. Investing
in en primeur is getting more and more popular in China. There is now a saying
among Chinese buyers: "Buy two cases of en primeur. Drink one and have another
two for free." It means the appreciation of one case vintage could pay for two
extra cases. In July, speculators put the price of Chateau Lafite Rothschild en
primeur 2009 at nearly 1,000 euros ($1,288) per bottle, double the release
price. As the big returns became clear, Chinese local wine manufacturers also
rushed into the "liquid gold" business. Chateau Changyu Afip Global, a
subsidiary company of the biggest wine producer in China and Asia - Yantai
Changyu Pioneer Wine Company Limited - has just sold its 2009 en primeur at
270,000 yuan per barrel. A total of 300 barrels were sold directly to the
Industrial and Commercial Bank of China (ICBC) private banking customers as a
financing product with an annualized yield of 5 percent. Analysts said that its
yield to maturity might exceed 20 percent after 18 months when the wines are
being bottled. It is a rich person's game. ICBC private banking customers must
have at least 8 million yuan each in their ICBC's personal accounts. The first
en primeur in China, Changyu en primeur 2006, which was sold at 180,000 yuan per
barrel, is worth 288,000 yuan now. Its biggest buyer, TxB International Fine
Wines, a German company, turned in a handsome profit by purchasing 20 percent of
the total production of 100 barrels. After Changyu, Chateau Junding, located in
Penglai, Shandong province, also began to sell en primeur in cooperation with
ICBC, China Citic Bank and China Merchants Bank. Although the popularity of wine
investment has grown by leaps and bounds in China, some analysts are worried
that Chinese wine investors are creating a global bubble, forcing buyers all
over the world to pay more. Andy Xie, a Shanghai-based independent economist
formerly with Morgan Stanley, said in a recent column for Century Weekly
Magazine that "as the French fine wine index (Liv-100 index) is up by roughly 37
percent from a year ago, 24 percent year-to-date, there is little doubt that
Chinese buyers, not Wall Street traders, are the force behind this positive
trajectory for French fine wine". He added there was a particular bubble
surrounding Chateau Lafite Rothschild's second label, Carruades de Lafite, or
little Lafite in Chinese.
Somewhere in Beijing, a bustling city of 20 million residents, there is a lonely
cell that one man has turned into his own personal war room. He is Wong Kwong-yu,
the 42-year-old founder and former chairman of Gome Electrical Appliances
Holding (SEHK: 0493) and once the richest person in China. From this room, Wong,
known as Huang Guangyu on the mainland, is fighting to maintain his grip on Gome,
the nation's second-biggest home appliances retailer, against the current
management led by chairman Chen Xiao. The Guangdong-born businessman is now
serving a 14-year jail sentence after being convicted of bribery, insider
trading and illegal business dealings in May. His appeal was rejected last
month. Zou Xiaochun, Gome's corporate lawyer and Wong's nominee, told the South
China Morning Post (SEHK: 0583) in an interview in Beijing that Wong had
expressed "great concerns" in a letter to him over the company's performance and
that his interests as Gome's major shareholder would be diluted. In what is
expected to a showdown over control, Wong has forced the board to call a special
general meeting on September 28. He proposes to replace Chen and another top
executive, Sun Yining, with his sister Huang Yanhong and Zou. He is also seeking
to cancel a mandate to issue new shares. Huang appears to be pivotal in Wong's
plan to tighten his grip on Gome. She joined the company in 1994 as an
accountant and was later promoted to finance department director. She and her
husband Zhang Zhiming, a former general manager of Gome, left Gome in 2005 to
take charge of a real estate company also controlled by Wong's family. Even if
Wong's plan succeeds, the jailed billionaire, who has been detained since
November 2008, will find it tough keeping track of the corporate wheeling and
dealing. He does not have access to a mobile phone or the internet, but relies
on mail to communicate with the outside world. Zou is not allowed to meet
personally with Wong and the last time he saw him was in August. Wong's personal
lawyers are the only ones allowed access. Zou says the last time he received a
letter from Wong was "just a couple of days ago". Wong is also allowed to read
and sign company documents and pass on messages through his personal lawyers
under surveillance.
Lloyd's Register helps
set the standards for a rising mainland - Lloyd's Register has provided
classification services to shipyards such as Shanghai Waigaoqiao Shipbuilding
since 1978. China's rapid industrialisation over the past 35 years has brought
with it opportunities and pitfalls for the foreign companies seeking to tap into
the mainland's burgeoning market. And while some have succeeded and some have
failed, few have started with the mandate to make what mainland companies
produce actually safer. Among those that have is Lloyd's Register, which
initially specialised in overseeing the construction of ships to ensure they
were built to international safety standards. Recently the British company has
become one of the few international classification societies to expand its
safety and quality assurance services into sectors such as rail and energy. This
shift coupled with the global shipbuilding boom between 2003 and 2008 - and
which has started to revive this year - has generated a rich seam of business
for the company. The firm employs about 650 people in China of which more than
60 per cent work on the marine side of the business including surveyors who
oversee the building of new ships and repairs to existing vessels. John Rowley,
the president of Lloyd's Register Asia, said: "Our revenue in China has more
than tripled to over US$100 million in the past five years. All our businesses
have done well, but the marine business has led the way largely as a result of
the global shipbuilding boom." He is also forecasting a similar performance
between now and 2015. "I would expect both our revenue and staff numbers to
double again over the next five years, as we continue to expand our customer
base." Rowley is excited about the rail and energy sectors. The firm teamed up
with China Classification Society, the mainland's shipbuilding construction
safety watchdog, earlier this year to jointly pursue safety and quality
assurance opportunities in the rail sector. "We set up the joint venture
specifically to help provide quality assurance services in the rail industry,
particularly for metro and high-speed rail," he said. One key focus for the
venture is the manufacture of the trains. "The investment in China in rail over
the next five years will be four-and-half-times the amount of money invested
over the last five years." Rowley said that while 600 billion yuan (HK$691.8
billion) would be spent on rail projects this year, when it came to investment
in high-speed railways China would have developed a network from virtually zero
three years ago to 12,000 kilometres by 2015. He said the joint venture is also
seeking to follow China's rail sector abroad as it exports technology to other
regions including Hong Kong, Saudi Arabia and Brazil. One of the areas being
developed is the validation of schemes used in global carbon credit initiatives.
Rowley said this clean development mechanism is a US$2.7 billion global industry
as companies seek to offset their carbon emissions by investing in or offering
monetary credits for others to invest in projects that reduce carbon emissions.
"Over 70 per cent of the market is in China. Our role is to validate the
projects exist and produce the credits they are supposed to," he said. All this
is a long way from 1978 when Lloyd's Register was invited into China to support
the design, construction and delivery of the cargo ship Regent Tampopo, which
was the first ship built for export by a mainland shipyard. But it has also
capitalised on this expertise, supporting Shanghai Waigaoqiao Shipbuilding,
China's biggest shipyard in tonnage terms, by overseeing 21 ships that have
either been delivered, are under construction or have been ordered at the yard.
The shipyard, which only delivered its first ship in 2003, is Lloyd's Register's
biggest new construction client in terms of gross tonnage. These achievements
were recognised in July when Lloyd's Register won a British government award
against the likes of Standard Chartered Bank and Marks & Spencer.
China banks will be able to control risks
better if capital adequacy ratios are higher than those set by the Basel
Committee, according to China Construction Bank (0939) chairman Guo Shuqing. It
is "understandable" and "reasonable" for regulators to have "extra requirements"
on the capital base of large-scale banks, Guo told Sing Tao Daily, sister
publication of The Standard, in an interview in Beijing. This is because these
lenders have a heavier responsibility for clearing functions and play an
important role in keeping the financial system and economic operations stable.
But Guo noted that it takes a long time for regulators to either discuss or
raise capital requirements. The Basel Committee on Banking Supervision - Basel
III - last week asked all commercial lenders to raise their common equity CAR,
Tier 1 CAR and total CAR to 4.5 percent, 6 percent and 8 percent, respectively,
before 2015. Basel III also requires a capital conservation buffer of up to 2.5
percent by 2019. There was market talk that the China Banking Regulatory
Commission is planning an even higher requirement. The figures floated were 6
percent for common equity CAR, 8 percent for Tier 1 CAR and 10 percent for total
CAR; plus, an additional 5 percent on overall CAR for major banks and 4 percent
for the rest as protection against economic fluctuations. The CBRC denied the
rumors and stressed its requirements stand at 8 percent for core CAR, 11.5
percent for total CAR for large lenders and 10 percent for other banks. The
average total CAR of mainland banks reached 11.1 percent by the end of June,
with an average core CAR of 9 percent, according to CBRC. Guo also warned that
merely increasing CAR will not solve all problems faced by banks related to risk
control and management. On the surface, many believed the 2008 financial crisis
was a result of pressure caused by a lack of liquidity and lower CAR, but in
fact financial and asset bubbles caused by over-developing structured products
were a major cause, Guo said. Chinese banks, he added, should provide more
investment products and not rely on deposits and loans, in order to meet
economic restructuring demands. CCB is pursuing an expansion strategy based
mainly on opening branches and outlets, but not mergers and acquisitions. And it
will maintain stable and steady growth internationally. "The most basic thing is
to understand both the market and customers. "How can we expand in markets that
we are not familiar with? It is very dangerous to expand blindly."
Yen route not for yuan - China will not repeat Japan's mistake of the 1980s -
China will not repeat Japan's mistake of the 1980s and let its exchange rate
surge in response to foreign pressure, said Li Daokui, an adviser to the
People's Bank of China. Li, an economics professor at Tsinghua University in
Beijing, said arm- twisting from abroad over the yuan is only beginning.
"External pressure for China to appreciate the yuan is going to increase in the
next several years," Li told a forum yesterday. But he said the exchange rate is
only one of many tools China could deploy to adjust the structure of its economy
and reduce its external payments surplus. For instance, as a large country,
China's scope to boost domestic demand is vast. "So it is no longer necessary
for China to achieve trade balance only by appreciating the yuan. We can also
improve our trade structure by increasing imports, which is what we are doing
now," Li said on the sidelines of the conference in Beijing. As a percentage of
gross domestic product, China's current account surplus this year is likely to
be less than half the 11 percent peak it reached in 2007. Li, a member of the
central bank's monetary policy committee, said the economic circumstances in
China today are different from those in Japan in 1985. The yen rose sharply
after Japan and other leading economies sealed the Plaza Accord in 1985 to bring
about an orderly decline in the dollar to reduce a bulging US current account
deficit. As money poured into Japan to chase the yen higher, loose monetary
policy inflated an asset price bubble that burst at the start of the 1990s,
ushering in two decades of stagnation and a battle against deflation that is
still not won. Policymakers and researchers in the mainland are acutely aware of
Japan's experience. "China will not go down the path Japan took and give in to
foreign pressure on the issue of the yuan's exchange rate," Li said. He urged US
lawmakers, who are considering legislation to punish China for what they see as
an unfairly cheap yuan, to stop pointing fingers at Beijing over the exchange
rate. "The US should pay much more attention to its own problems. What has the
US done while we have been reducing our trade surplus?" Li said.
Alibaba says no to Yahoo's CEO - Chinese
e-commerce giant Alibaba Group on Sunday turned down the suggestion by Yahoo
chief executive officer Carol Bartz that she be allowed to join the board of
Alibaba, replying that Bartz should focus on improving Yahoo's own business
first.
Shenyang, the capital of Northeast
China's Liaoning province, will open its first subway line in October. Final
technical tests and adjustments are now underway. The Subway Line 1, consisting
of 22 stops, with total distance of 28 kilometers will be an east-west subway,
stretching from Shenyang Economic Technology Development Zone to Liming Square.
The Shenyang subway line will be the first underground line in China's northeast
area.
Staffers at AirBridgeCargo
Airlines shake hands with their Chinese partners in a welcome ceremony at
Xinzheng Airport in Zhengzhou city, capital of Central China's Henan province,
on Saturday, Sept 18, 2010. The Moscow-based airline operates scheduled cargo
services on routes between Asia and Europe, all via Russia. As the pictured
Boeing 747 freighter left for Frankfurt via Moscow at 3 pm on Saturday,
Zhengzhou became the airline's fourth hub in China, after Beijing, Hong Kong and
Shanghai.
An AirBridgeCargo Airlines
freighter taxis at Xinzheng Airport in Zhengzhou city, capital of Central
China's Henan province, on Saturday, Sept 18, 2010.
Old maps aid Beijing's claim, collector
says - Marcopolo Tam points to the Diaoyus on one of his antique maps. A Hong
Kong-based map collector has offered to lend his 100 antique maps to help China
prove to the international community the Diaoyu Islands have long been its
territory. Marcopolo Tam Siu-cheong, who owns more than 100,000 antique maps,
has in the past week sorted out about 100 from his collection that show the
islands. He bought the maps, dated from 1700 to 1930, on trips to Britain, the
United States, France and Japan in the past 28 years. "In the past, much
discussion has cited Chinese maps to show the Diaoyu Islands as part of the
nation," Tam said. "By displaying this collection I would like to point out that
foreign navigation maps made during the past 300 years have also shown the
sailing route by Chinese fishermen from Taiwan to the Diaoyu Islands." Showing
the names "Tiao Su" and "Tiaou-su" on old maps, he argued the French and German
translations of the islands' name had borrowed the pronunciation of Fujian
dialects, which suggested the islands were first named by Chinese people.
"Although this is not direct evidence proving the islands are under our
sovereignty, it can be one of the evidences showing Chinese people discovered,
named and used the islands - three important criteria laid out in international
laws to decide the sovereignty of a place," he said. Tam, a retired banker and a
former member of the Central Policy Unit, said he would be willing to lend his
maps to the central authorities if Beijing decided in future to take the
territorial dispute with Japan to the International Court of Justice. He said
such maps were available in antique shops around the world and he believed other
collectors had maps showing the Diaoyus.
The 1.5-ton bronze bell sits in its new
home at the base of the clock tower yesterday. Visitors will be able to see it
through a window.
Noise, ownership issues bedevil land
supply plan - A government plan to increase land supply by converting industrial
sites for residential use will take years to realise because of environmental
problems at most sites. Apart from noise pollution from nearby traffic and
industrial activities, five of the nine industrial sites available for
conversion would involve relocating bus depots to improve living conditions, the
Planning Department told Town Planning Board members yesterday. While supporting
in principle the rezoning of the 29.5 hectares of industrial land, board members
questioned whether the extra land would be available in a timely manner. They
also expressed worries about the practicability of the rezoning proposals.
Financial Secretary John Tsang Chun-wah last month released a rezoning study on
converting industrial land for flats to help ease demand in the city for
affordable housing. Recommendations of the study, conducted last year, were
presented to the board yesterday. The document suggested that nine industrial
sites from seven districts - Fo Tan, Siu Lek Yuen, Fanling, Tsuen Wan East, Tuen
Mun, Yuen Long and Tai Kok Tsui - could be selected for residential use. In the
meeting yesterday, board member Raymond Chan Yuk-ming raised several concerns,
including when the sites would be made available for flats, how the extra land
supply would affect the property market, and whether the government would resume
the bus depots or would encourage the bus companies to take part in residential
developments. Board member Ho Puay-peng also queried the practicality of
relocating five bus depots, of which two are owned by Kowloon Motor Bus Company.
Planning Department assistant director Phyllis Li Chi-miu said two sites next to
the former Fo Tan Cottage Area, the former Tai Wo Hau Factory Estate in Tsuen
Wan East and a site next to Long Ping West Rail Station in Yuen Long were
expected to be on the market first because most of the sites were owned by the
government or under single ownership. "Other sites, like Siu Lek Yuen and Tuen
Mun, which involve relocation of privately owned bus depots, would largely rely
on private initiatives to drive the residential developments," Li said. She
added the government would help the bus companies identify other temporary sites
for their depots. But a KMB spokeswoman said the company did not have plans to
relocate the depots. Swire Pacific (SEHK: 0019), which owns a beverage plant in
Siu Lek Yuen, also said it did not plan to redevelop the plant into residential
buildings. "We will continue to monitor the market situation," the company said.
In addition to the multiple-ownership problems constraining many of the
industrial blocks in Siu Lek Yuen, Tuen Mun, Tai Kok Tsui and Tsuen Wan East,
the department said traffic noise pollution could be a nuisance for any future
residents in Siu Lek Yuen, Fo Tan, Fanling and Tai Kok Tsui because they were
close to bus depots, the Ma On Shan Line, the Fanling Highway and the elevated
West Kowloon Corridor. "They should be converted only after the environmental
problems are solved," Li said. She said the department would conduct a
feasibility study on the conversion before submitting individual rezoning plans
for the board's approval.
Gwen Kao starts Alzheimer's charity - Nobel winner's wife aims to raise
awareness, aid dementia patients' carers - Gwen Kao yesterday. She said she
understood the pressure on carers because of her experience looking after her
husband. The wife of Alzheimer's-afflicted Nobel physics laureate Charles Kao
Kuen is setting up a charity to raise awareness of the disease and promote
better support for people who care for sufferers. Gwen Kao Wong May-wan will
chair the Charles K. Kao Foundation for Alzheimer's Disease, a non-profit
organisation she hopes will help find a cure for the condition. Kao, known as
the father of fibre optics, was diagnosed with the disease in 2004. Wong, who
earlier this year publicly urged the government to provide more resources for
day care for dementia patients, said the idea for the foundation came after
Kao's Nobel award last year put him at the centre of international media
attention. "I thought I could make use of the publicity and turn it into
something more meaningful," she said. "There is a lack of knowledge of the
disease. People don't know what to do with it; doctors don't get training in how
to treat it, resulting in many people sweeping it under the carpet. "People in
the early days just tranquillised the patients. It's a bit like what cancer was
decades ago, when it seemed to be a hidden, shameful ailment. But it's come into
the open now and cures for some common forms of cancer have been found. "Only if
everyone is aware of this terrible disease will we find a cure." The foundation,
to be inaugurated on Tuesday, World Alzheimer's Day, will launch programmes to
support care givers, raise public awareness and encourage co-operation among
organisations to ensure resources are shared efficiently. Wong, with the help of
three close friends, will also lobby for government support even though "a lot
of it should be the government's responsibility, actually". The friends have
recruited many other volunteers willing to help in different areas. The Jockey
Club is providing the venue for the inauguration. William Lo Wing-yan, one of
the three friends who will be governors of the group, said they had not yet set
objectives for the amount to be raised but early indications were hopeful. Lo,
founder of the internet service provider Netvigator, worked with Kao when he was
a consultant to Hong Kong Telecom. The other two friends are Angelina Lee Pui-ling
and Alan Tong Sai-wong. Other governors include Chinese University
vice-chancellor Professor Joseph Sung Jao-yiu and University of Hong Kong
vice-chancellor and president Professor Tsui Lap-chee. Wong said Kao had
"forgotten how to do many of the tasks he used to do with his eyes shut", but he
knew the foundation under his name was being set up. "When I talked to him about
it he would say `Good! Good!'" Wong said that in looking after her husband, she
sometimes felt frustrated and was under much pressure. "Sometimes I'd throw
dishes to release the pressure ... that's why I understand how carers must feel.
They need professional advice and support," she said. More than 70,000
Hongkongers had Alzheimer's but there were only a few thousand carers, she said.
The couple, who settled in the San Francisco Bay Area, had intended to be in
Hong Kong just for a series of celebration events to mark Kao's Nobel prize. But
Wong said they had readjusted once more to life in their former long-term home.
A set of postal souvenirs in honour of Kao will also be issued on Tuesday as a
tribute. Kao jointly won the prize in October last year for his role in
developing fibre-optic communications.
Skyscraper plans for
Government Hill site - There was widespread relief last year when Chief
Executive Donald Tsang Yam-kuen unveiled initiatives to preserve Government
Hill, the centre of administration since early colonial times. Yesterday the
government revealed a plan to sell a third of the site to a developer for a
32-storey office tower and underground mall. There are now fears that the
landscape could be spoiled and that a planned public garden might end up as the
new property's backyard. The west wing of government headquarters at the
junction of Queen's Road Central and Ice House Street will be put up for sale
after civil servants move to the new headquarters at Tamar at the end of next
year. Acting permanent secretary for development Gracie Foo Siu-wai said the
wing would be demolished to make way for the 150-metre office tower and podium,
while a mall and car park would be excavated beneath Lower Albert Road. "This is
a response to the market's need for quality office buildings. "The west wing has
low architectural and heritage value and we should take the opportunity for
redevelopment," Foo said, citing a government-commissioned study on the heritage
value of the headquarters complex. But Bernard Lim Wan-fung, president of the
Hong Kong Institute of Urban Design, said the government had failed to address
the historic significance of the site. "Officials must take care that the future
design will pay due respect to the historic site ... but I see no such
consideration in the brief presented today," he said. "The new building can't be
just like another office block in Central, with a dull glass facade. For
example, why can't the west wing facade be preserved and the tower built behind
it?" The west-wing site, one-third of the entire complex, will be sold by tender
or auction.
Pipe-laying barge managed by Hong
Kong shipping company - Flying the Bauhinia flag in the Arctic, the 63,594
deadweight tonne barge Fortuna is the first pipe-laying ship on the Hong Kong
register. A Hong Kong-based ship management company is targeting the specialist
offshore sector after it took over the day-to-day technical management of a
US$140 million pipe-laying barge, the first such ship to be built in China. The
Hong Kong-registered vessel, Fortuna, is the second ship in the past month to
fly the territory's Bauhinia flag in Russia's harsh Arctic environment after
being deployed to exploit gas resources in Sakhalin in the Russian Far East.
Peter Cremers, chief executive of the Anglo-Eastern Group, said the 63,594
deadweight tonne ship was the first pipe-laying vessel on the Hong Kong shipping
register and was "quite sophisticated", operating like a floating factory. He
said sections of pipe are brought to the barge where they are welded together,
tested, and then laid in a continuous process that enable about one kilometre of
pipeline to be laid on the seabed a day. About 80 of the 311 people on board are
employed by Anglo-Eastern Ship Management to maintain the barge on behalf of its
Luxembourg-based owner, Maritime Construction Services, which is linked to a
Russian offshore company. Cremers said the introduction of the Fortuna into the
Anglo-Eastern fleet, combined with moves by other owners to give the day-to-day
management of their high-tech ships to the company, led Anglo-Eastern to launch
"a dedicated offshore ship management division". "With China doing a lot of
offshore projects, we are well situated to do offshore [business] in China as a
ship manager," he said. The Fortuna was built by Shanghai-based company Zhenhua
Port Machinery Co which is also expanding into the offshore sector from its core
crane-making business. Anglo-Eastern currently manages more than 350 vessels,
with most of these comprising dry bulk ships, tankers and container ships. He
said other types of offshore vessels being targeted by the company are large
tanker-type ships used as floating storage and oil production vessels, cable
laying and diving support vessels. Cremers said the management of offshore
vessels would bring offshore technology to Hong Kong. "We see this as a growing
market and hope this will be the beginning of a growing fleet of offshore
vessels to join Anglo-Eastern," he said. But while more offshore vessels could
be added to the firm's fleet, the Marine Department was not targeting the
offshore sector as it seeks to expand the number of ships registered in Hong
Kong. Chick King-fai, general manager of the Hong Kong shipping registry, said:
"In view of the lack of expertise in the Marine Department to ensure the safe
operation of offshore vessels such as oil rigs, we have not accepted the
registration of these vessels under the Hong Kong Shipping Register."
Miss Chinese American
beauty pageant staged in Washington.
Join the Oktoberfest in Shanghai
- Deputy Mayor of Shanghai Zhao Wen (third from left), Consul of Consulate
General of Germany in Shanghai Thomas Prinz (middle) and Resident Manager of the
Renaissance Yangtze Shanghai Hotel Uwe Guemmer (second from right) strike the
beer barrel on the opening ceremony of the 13th Shanghai Oktoberfest.
Cities brace for mass anti-Japan
protests - East China Sea row may spur anniversary rallies - A policeman looks
at a mural at the September 18 museum in Shenyang, Liaoning. Seventy-nine years
ago today, Japan laid siege to Mukden, now Shenyang, and began the military
occupation of the northeast, which kicked off the Sino-Japanese war. September
18 normally goes unnoticed in China. Not this year. All eyes are on the streets
of Beijing and Shanghai today after intense speculation that mass rallies are
planned to protest against Japan's arrest of a Chinese trawler captain in
disputed waters in the East China Sea last week. The timing is significant
because today is the 79th anniversary of an incident that led to the Japanese
invasion of Manchuria. In the past, the anniversary was marked by small
demonstrations and memorial activities scattered across China.
Beijing warns on risks of US dollar volatility threaten recovery - Amid US ire
over yuan policy, PBOC says sharp greenback fluctuations threaten recovery -
China's central bank has warned that volatility in the US dollar could impede
the global economic recovery and threaten financial stability. The People's Bank
of China said a rapid appreciation of the US dollar could shake capital and
commodity markets and impact the economies of resource-reliance countries. A
rapid depreciation of the greenback could boost commodity prices, create asset
bubbles and threaten economic and financial stability, the central bank said in
its yearly financial stability report. The report comes amid rising tensions
with Washington over Beijing's currency policy. China had until this June kept
the yuan pegged to the dollar at roughly 6.83 for almost two years as it
attempted to shield the country from the impact of the financial crisis. It has
now resumed exchange rate reform under which the yuan rate will become more
flexible. The yuan has advanced 0.9 per cent in the past six days, taking its
gains since the fixed rate ended to 1.4 per cent. However, the US administration
and lawmakers with their eye on upcoming congressional elections are calling for
steeper gains. In congressional testimony on Thursday, US Treasury Secretary
Timothy Geithner said the United States will use all available tools to urge
China to let its currency appreciate more quickly, including congressional
pressure and a twice-yearly report on foreign-exchange markets. Foreign Ministry
spokeswoman Jiang Yu said appreciation of the yuan could not solve the US trade
deficit with China "and cannot fix the US unemployment problem". "Pressure
cannot solve this issue, rather it may lead to a contrary" result, she said.
China surpassed Japan as the world's second-largest economy last quarter. The US
trade deficit with China reached US$119 billion in the first half of 2010,
putting it on a course to exceed last year's total of US$227 billion. Lu
Zhengwei, an economist with Industrial Bank, said: "What we can expect from the
new foreign exchange policy is that China will allow the yuan trading band
against the US dollar to expand in the near future." The daily trading band will
be widened to 1 per cent from 0.5 per cent this year, Lu forecasts. Chinese
officials have repeatedly stated that yuan exchange rates would be more flexible
and two-way fluctuations would be most likely. Hu Xiaolian, a deputy governor of
the central bank, said in July that "under a managed floating exchange rate
regime, the yuan can appreciate or depreciate, subject to economic and balance
of payments situations". Mainland economists have been asked to toe the official
line on yuan and not express their personal views because the issue is
politically sensitive, according to two academics. "China has domestic pressure
for yuan appreciation but the country does not want the world to think it is
bowing to international pressure to allow the currency to rise," said a
researcher with a government think tank. Geithner showed renewed frustration
with China's control over the yuan during a pair of congressional hearings
totalling four hours. He said the administration would take a "careful look" at
proposed legislation on trade sanctions that companies could pursue in response
to China's currency policy, including a bill proposed in the House by Ohio
Democrat Tim Ryan and Pennsylvania Republican Tim Murphy. "I'm not arguing for
patience," Geithner told the House Ways and Means Committee, saying Chinese
officials have not lived up to their international commitments. "They agreed to
abide by a set of rules and it is our job to hold them to those rules."
Dell set to invest US$100b on China -
Dell, the world's second-largest supplier of personal computers, plans to open a
new complex in western China and also intends to open an additional office in
Xiamen. Computer maker Dell plans to spend more than US$100 billion on the
mainland over the next decade to accelerate expansion in its second-biggest
market after the United States. That commitment includes Dell's total investment
in facilities, employment, research and development, and purchases from mainland
suppliers. Dell, the world's second-largest supplier of personal computers, will
open its second flagship manufacturing and customer support complex in Chengdu
next year. The company also plans to open an additional office at its first
computer manufacturing centre in Xiamen and hire up to 500 new staff later this
year to support its growth in North Asia. "These investments are indicative of
how Dell sees the importance of China, which will soon become the world's
biggest personal computer market," Bryan Ma, associate vice-president of
Asia-Pacific devices and peripherals research at International Data Corp (IDC),
said yesterday. IDC forecasts mainland personal computer volumes to surpass
those of the United States by 2012, "if not sooner", Ma said. It has estimated
total personal computer shipments on the mainland will reach 97 million units in
2012, up from 81 million units next year and 67 million units this year.
Shipments in the US, by comparison, are predicted to hit 93 million units in
2012, from 86 million units next year and 78 million units this year. Demand for
computer systems in western China is expected to grow an average of 21 per cent
annually through 2014. "We're planning for the future, and we're excited about
our strategic investments in China that will help us better serve the region's
increasing need for technology solutions and services," Dell chairman and chief
executive Michael Dell said. The Texas-based computer maker is developing its
new manufacturing and customer support facility inside the West Chengdu
High-Tech Park. Its new complex is expected have a staff of up to 3,000 over
time after starting operations next year. Amit Midha, the president of Dell
China, said: "The strong Chengdu workforce and our new operations there will
better position Dell for additional growth opportunities in western China." Dell
estimated its revenue on the mainland had "increased 11 times" from financial
years 2000 to 2010. In the firm's latest financial quarter, it reported mainland
sales grew 52 per cent year on year. According to IDC, Dell has moved ahead of
Hewlett-Packard, the world's leading personal computer supplier, to become the
mainland's No2 brand. It estimated Dell took a 9 per cent domestic share in the
second quarter to edge HP, which had an 8.2 per cent share. Lenovo Group (SEHK:
0992, announcements, news) led the market with a 28.7 per cent share. Stephen
Felice, the president of Dell's global consumer and small and medium business
operations, has said the firm's annual mainland sales are approaching US$5
billion. Dell said the expansion in Chengdu supports the government's western
China development strategy, which aims to boost the development of trade and
other commercial initiatives in the country's inland western region.
Water Melon Lantern
Festival kicks off in E China.
Big pink diamond worth up to US$19
million set to break world auction record in Hong Kong - The Perfect Pink
(right) a 14.23 carat fancy intense pink diamond estimated to be worth up to
US$19 million, and The Bulgari Blue (left) a two-stone fancy vivid blue and
colourless diamond ring, by Bulgari. "The Perfect Pink" - a rare 14.23-carat
pure pink diamond - will go under the hammer in November in Hong Kong. It's
expected to fetch up to US$19 million and smash the world record auction price
per carat for any gemstone. Unearthed in South Africa, the gem is described as
"perfect in terms of size, colour, clarity and cut" and "virtually unheard of".
Its estimated minimum price, US$14 million, is higher than the most expensive
gem sold at auction, a 5-carat pink diamond graded "fancy vivid", which sold for
more than US$10 million in Hong Kong last year - that's more than US$2.1 million
per carat. The Perfect Pink's colour is "fancy intense pink", according to the
Gemological Institute of America, a grade below "fancy vivid", but its size has
raised expectations that it will be a record breaker. Eighteen pure pink
diamonds with more than 10 carats have been sold previously, but all were graded
below The Perfect Pink, a Christie's auction house spokesman said. Size makes
The Perfect Pink rare and therefore desirable. A diamond that large must have
come from a stone that would have weighed at least 35 carats, Christie's Hong
Kong's jewellery specialist, Chiang Shiu-Fung, said. The Christie's spokesman
said: "It is perfect in terms of its size, colour, clarity and cut. Large,
polished pink diamonds with this color intensity are virtually unheard of since
fewer than 10 per cent of them weigh more than 0.2 carats." The gem, with an
array of other stones, will be displayed at the Hong Kong Convention and
Exhibition Centre between November 25 and 29 and go under the hammer on the last
day. Meanwhile, 55 of the rarest pink diamonds to be put up for tender are on
display at a Tsim Sha Tsui shopping mall. The highlights are a 2.02-carat round
purplish pink diamond, and a 1.43-carat princess-cut purplish red diamond. They
were unearthed from the Argyle mine in Australia, says Josephine Archer, the
Argyle Pink Diamonds' business manager. The display marks the arrival in China
of the company, which puts its gems up for tender every year. "It's a reflection
of the growing appreciation for rare coloured diamonds in this market," she
says. After Hong Kong, the stones will be displayed in Shanghai and New York in
October before they are sold. The gems are displayed at Chow Tai Fook's branch
in mall K11, Tsim Sha Tsui.
Members of The Hong Kong Federation of
Trade Unions (HKFTU) protests on Eastern Tunnel raised 40 percent outside the
Eastern Tunnel Office at Yau Tong. New Hong Kong Tunnel Company, the operator of
the Eastern Harbour Tunnel, on Friday applied for a 40 per cent increase in
tolls. If its application is approved by the government, tolls for private cars
and taxis will increased from HK$25 to HK$35, and from HK$15 to HK$20 for
trucks. For minibuses and light goods vehicles, tolls will be raised from HK$38
to HK$53. A spokesman for the Transport and Housing Bureau said they had already
received the operator’s application for a toll increase. The government would
first consult the opinions of the Transport Advisory Committee and the
Legislative Council, before getting approval from the Executive Council and the
chief executive. Legco transport panel deputy chairman Andrew Cheng Kar-foo said
the increase of the toll fee would make the Hung Hom Cross-Harbour Tunnel more
congested. He suggested other tunnels, such as the Western Harbour Tunnel
Company, should offer concessions to drivers during peak hours. The last time
for the Eastern Harbour Tunnel to raise its tolls was on May 2005. In 2009, a
total of 22,990,195 vehicle trips were made through the Eastern Harbour Tunnel
and the average daily throughput was 62,987.
HK pays final tribute to Manila
victims - Mourners pay tribute to Ken Leung Kam Wing, Doris Leung Chung See and
Jessie Leung Song Yi who were killed during the Manila hostage incident at their
funeral in Hung Hom on Friday.
Photo taken on Sept. 17, 2010 shows the
student record of Eileen Chang when she was in Hong Kong University, in Hong
Kong, south China. The "Eileen Chang Uncovered" exhibition was held in Hong Kong
from Sept. 17 to 19, displaying scripts and documents of Chinese writer Eileen
Chang. 
Hundreds queued up on Friday for the first
official iPads sold in the mainland, the world’s biggest internet market, after
months of grey-market action among avid buyers unwilling to wait for the Apple
tablet. The first customer who bought the iPad shows the device as store staff
greet him at an Apple store during the launch of the device on Friday in
Shanghai. Apple stores in Beijing and Shanghai as well as authorised retailers
around the country began offering the Wi-Fi model of the touchscreen device,
millions of which have already been sold in the United States and a dozen other
nations. Analysts predicted strong demand for the iPad despite a paucity of
Chinese content and the country’s huge unofficial market for Apple products,
which are slipped in from Hong Kong, Singapore and the United States and resold.
At the US tech giant’s Beijing store, Han Ziwen, 35, said he had camped out for
60 hours to ensure he was first in line when the flagship outlet’s doors opened
at 8am. Wearing a T-shirt emblazoned with “I buy iPad No 1”, the bookstore owner
held two of the sleek computers above his head in a victory sign as hundreds of
people standing in the driving rain cheered. Han bought a 16-gigabyte and
32-gigabyte version of the iPad costing a total of 8,776 yuan (HK$10,120) – more
than what vast majority in the country earn in a month. But he said: “For me,
they are not expensive.” In Shanghai, up to 200 people queued outside the
underground Apple store which opened in July. The first buyer, Ma Ya, a
46-year-old art dealer, said he had been waiting since 1pm on Thursday for his
chance to snare a new iPad – his second.
Dell is making a US$100 billion bet that the mainland will remain one of the
fastest-growing markets for personal computers over the next decade. Dell said
on Thursday it plans to open a manufacturing, sales and service centre in
Chengdu next year that could eventually employ more than 3,000 workers. The new
operations centre is a response to rapid growth in business in western China,
Dell said.
Chinese surveillance ships have
been dispatched to safeguard China's rights and interests in Chinese waters, and
enforce the law, Foreign Ministry spokeswoman Jiang Yu said Friday. Jiang made
the comment when asked to confirm whether Chinese surveillance ships had
recently demanded Japan stop marine surveying activities and China's fishery
administration ships had stepped up law enforcement activities. "Relevant
Chinese departments have also sent fishery administration ships to China's
territorial waters to provide protection for Chinese fishermen," Jiang said.
Media reports said that China has transported materials to Chunxiao oil and gas
field in the East China Sea and was likely to carry out maintenance operations
there. When asked to confirm the reports, Jiang said, "China possesses full
sovereign and jurisdictional rights to the Chunxiao oil and gas field and
China's activities in Chunxiao are completely reasonable and lawful." The
Chunxiao oil and gas field, 450 kilometers southeast of Shanghai, was discovered
in 1995. 
Hong Kong's Cathay Airlines seals
deal to buy 30 Airbus 350s Aircraft worth US$7.8b for 2016-19 delivery -
Cathay's Tony Tyler (left) and Airbus' John Leahy present a model of the
A350-900 in Hong Kong after signing a deal for 30 of the aircraft. Cathay
Pacific Airways (SEHK: 0293) finalised its single largest aircraft acquisition
yesterday by confirming an order to buy 30 Airbus 350-900s at an estimated price
of US$7.82 billion. The new aircraft will mainly be used to replace its existing
Boeing 747-400s. The confirmation, following a letter of intent signed for the
acquisition of the aircraft in August, came as the major shareholders of Cathay
- Air China (SEHK: 0753, announcements, news) and Swire Pacific (SEHK: 0019) -
approved the deal yesterday. On top of the firm order for the 30 aircraft,
Cathay has the option to acquire 30 more. A350-900s are capable of flying more
than 8,000 nautical miles non-stop, which will enable Cathay to use them on
routes to North America and Europe. The new aircraft, which can carry up to 314
passengers, will be delivered to Cathay from 2016 to 2019, replacing Cathay's 21
B747s, which will be phased out in six to seven years. The B747s, delivered to
Cathay from 1989 to 1995, are 15 to 21 years old. "They are great aircraft but
as they are getting older, we have to retire them," Cathay chief executive Tony
Tyler said yesterday. If there were any delay in production of the A350 - not
uncommon in development of new planes, such as experienced with the A380 and
B787 - Cathay would have to keep the old aircraft longer, Tyler said. They would
still be within the normal 25- to 30-year lifespan. Meanwhile, Cathay would
continue to look at other aircraft types and get more planes if the market was
strong, he said. The final assembly line for the A350 in Toulouse broke ground
in January last year and the first A350-900 will begin assembly next year. Qatar
Airways is scheduled to receive the first aircraft in 2013. Airbus has received
more than 538 firm orders for the new aircraft from 34 customers, its chief
operating office, customers, John Leahy, said. The operating costs of the
aircraft were 25 per cent lower than those of the B777, which has the same
number of seats and a similar range. Leahy, who flew in from Beijing to attend a
press conference in Hong Kong yesterday, said Airbus was in talks with mainland
carriers over new orders on a range of products, including the A320, A380 and
A350. "Hopefully, deals will be finalised by the end of this year." He did not
elaborate. Airbus is reportedly in negotiations with mainland carriers over new
orders for 150 planes worth US$16 billion, according to a French newspaper. Some
5 per cent of the A350 airframe will be manufactured in China, including
spoilers and droop panels that were sourced out to the mainland's CAC Commercial
Aircraft on Wednesday. Shares in Cathay rose 1.7 per cent to HK$20.70 yesterday.
TVB (SEHK: 0511) general
manager Stephen Chan Chi-wan and two others were charged on Thursday with
corruption and conspiracy to defraud, the Independent Commission Against
Corruption (ICAC) said. In addition to Chan, Edthancy Tseng Pei-kun. 28, Chan’s
former assistant and a director of the Idea Empire Advertising and Production
Company, and Wilson Chan Wing-suen, 63. the head of TVB business development of
marketing and sales, were charged. The ICAC said the three would appear in
Eastern Court at 9.30am next Tuesday to face the charges. All three were
arrested for suspected graft six months ago along with two others – TVB
performer Leung Chi-cheong and former executive producer Wilson Chin Kwok-wai –
and have been free on bail since then. The bail conditions for Leung and Chin
were lifted on August 10. The three charged – Stephan Chan, Tseng and Wilson
Chan – reported to the ICAC as part of their bail conditions on Thursday. On
Thursday afternoon, the ICAC announced that it had formally charged them.
“Stephen Chan and Tseng face two counts of conspiracy for an agent to accept an
advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance
and Section 159A of the Crimes Ordinance,” the ICAC said in a statement. The two
corruption charges alleged that between July last year and January this year,
Stephen Chan and Tseng conspired together so Chan could accept about HK$127,000
from Idea Empire Advertising and Production Company. In return, Chan was said to
have participated in an event and a show – which was related to TVB’s business.
Another charge alleges Stephen Chan and Tseng had conspired to defraud TVB and
celebrities between January and February. They are alleged to have falsely
represented the attendance of the celebrities at an event promoting the release
of a book by Chan, the ICAC said. However, the pair did not disclose that the
event was arranged by the Idea Empire Publisher Company under sponsorship from a
business corporation – with an obligation to invite some of the celebrities to
attend. Another charge alleged that Tseng and Wilson Chan conspired together to
defraud TVB between September and December last year. They are alleged to have
dishonestly misappropriated HK$550,000 from HK$5.2 million due to be paid to TVB
from a business corporation under a commercial contract. They are alleged to
have dishonestly and falsely created a service agreement between TVB and Idea
Empire Advertising and Production whereby TVB was to pay HK$550,000 to Idea
Empire Advertising and Production Company. Stephen Chan is an outspoken media
figure and is well-known for his show Be My Guest. When Stephen Chan left the
ICAC headquarters about 4.40pm, he was flanked by over 50 journalists. Chan,
smiling, admitted he had been charged by ICAC, but did not elaborate. He said he
would talk to the media later.
Tseng Pei-kun, former personal assistant
to TVB executive Stephen Chan Chi-wan, arrives at ICAC headquarters in North
Point yesterday in connection with a corruption case.
Suspended TVB general
manager Stephen Chan Chi-wan leaves the Independent Commission Against
Corruption headquarters in North Point after being charged with conspiring to
defraud the broadcaster. Chan has been accused of forcing five TVB artists to
appear at a corporate-sponsored event and of illegitimately pocketing
HK$127,000.
China's Yuan appreciation will not help Sino-U.S. trade deficit: China FM
spokeswoman - China Thursday reiterated that the appreciation of the Chinese
currency, or Renminbi, will not help to balance Sino-U.S. trade nor resolve
unemployment problems in the United States. Foreign Ministry spokeswoman Jiang
Yu told a regular news briefing that pressuring for the yuan's appreciation
could not resolve any problems and might be counterproductive. Jiang's remarks
came in response to U.S. Treasury Secretary Timothy Geithner's reported
criticism of China's exchange rate policies. Saying Sino-U.S. economic and trade
cooperation was mutually beneficial, Jiang reiterated that China had
consistently advocated properly handling problems in bilateral economic and
trade relations through equal consultation. Time and time again and with the
excuse of the self-proclaimed "for the benefit of America," some U.S. lawmakers
and business groups clamor for increased pressure on China to revalue its
currency. When times turn tough, the weary argument finds even more traction.
This time, as many as 132 Democrats are finding their "right time" to lodge such
an assertion as the U.S. trade deficit with China rises rapidly and the
unemployment rate hovers at close to 10 percent across America. A tough stance
on China's exchange rate now could play well during the coming mid-term
elections.
Authorities from the mainland
and Taiwan launched a maritime search and rescue exercise in the Taiwan Strait
on Thursday. The exercise scenario was a collision of two passenger-cargo
vessels in the waters between Xiamen and Jinmen. The drill involved 14 rescue
vessels, three helicopters and more than 400 people. Rescue personnel from the
mainland and Taiwan received a distress call from a ship in the Strait
simultaneously and dispatched rescue and medical units to the site after
coordination and consultation. The exercise aims to test the abilities of
emergency response and communication, maritime search and medical personnel to
safeguard transport in the Strait, said Zhai Jiugang, director of the chief duty
room with China Maritime Search and Rescue Center (CMSRC). Authorities on both
sides could evaluate their ability to work out an emergency plan for maritime
rescue in direct shipping routes between the mainland and Taiwan, Zhai said.
Mainland participants included the CMSRC, the Association for Shipping Across
the Straits, and Xiamen City government. Participants from Taiwan included the
Chinese Search and Rescue Association and the government of Jinmen County. The
exercise was the first of its kind jointly conducted by authorities on both
sides of the Strait since the mainland and Taiwan realized the three direct
links of post, trade and transport at the end of 2008. Shipping associations on
both sides agreed in 1997 to cooperate in maritime rescues in the Strait and to
establish a 24-hour rescue hotline. In October 2008, the maritime rescue
department of Xiamen conducted a rescue exercise on the shipping route between
Xiamen and Jinmen. The mainland-based Association for Relations Across the
Taiwan Straits (ARATS) and the Taiwan-based Straits Exchange Foundation (SEF)
signed a maritime shipping agreement the following month, pledging to establish
a cooperation mechanism for maritime rescue. Since the realization of three
direct links, passenger and cargo ships operating between the mainland and
Taiwan have increased to record levels. Maritime safety has become a major
concern on both sides. In the first half of this year, Fujian Provincial search
and rescue reported 9,467 ships sailing through the Strait, carrying 760,262
passengers, 2.78 million tonnes of cargo and 310,829 containers. 
No China-Japan talks at UN
amid boat dispute - Chinese and Japanese leaders are not planning any talks next
week on the sidelines of the UN General Assembly partly because of escalating
tension over a collision near disputed southern islets, a top Japanese spokesman
said Thursday. Meanwhile, Japan’s embassy and consulates in China issued a
warning to its citizens in the country to watch their words and actions so as
not to provoke Chinese after nationalistic protests and reports of vandalism at
a Japanese school. The diplomatic spat broke out last week when Japanese
authorities arrested the captain of a Chinese fishing boat after it collided
with two Japanese patrol boats near islands in the East China Sea claimed by
both countries. Chief Cabinet Secretary Yoshito Sengoku told a regular news
conference on Thursday that neither Tokyo nor Beijing is seeking to arrange
talks for the two leaders during their visit in New York next week to attend the
UN meeting. Kan’s predecessor had met with premier Wen Jiabao at last year’s
General Assembly, and leaders of the two nations usually meet at international
gatherings. So while it was assumed Kan and Wen would meet, no meeting or agenda
had been set. “At the moment, nothing has been decided, as neither side is
making a move to set up [a meeting],” Sengoku said. He cited “the problem
involving the Senkaku [Diaoyu Islands],” as part of the reason why both sides
are not arranging talks. He also cited scheduling conflicts on both sides. Japan
stepped up its presence over the disputed islets, with Transport Minister Seiji
Maehara inspecting patrol boats on Ishigaki, a Japanese island near the disputed
islets, on Thursday. He also visited coast guard personnel to praise their
effort to seize the captain. Japan’s defence ministry arranged a press tour to
the area Wednesday, showing journalists a pair of P3C surveillance planes flying
over the islets. The islands are controlled by Japan, but also claimed by Taiwan
and China. A ministry official said that the surveillance is part of a daily
routine, not a newly added duty since the ship collisions.
Yahoo rejects offer to buy back stake,
says Alibaba - Mainland’s e-commerce giant Alibaba Group said on Thursday it had
offered to buy back part of a 39 per cent stake held by Yahoo but it had been
rejected.
Anti-Japan anger rose close
to boiling yesterday, just days ahead of the 79th anniversary of the Japanese
invasion of Manchuria, with protests expected in Beijing and possibly other
cities. Reports claim Beijing has given the nod for massive protests in
different parts of the capital on Saturday, with demonstrators using the
internet to call on others to march to Japan's embassy. The new tensions come on
top of anger over the arrest and continued detention of a Chinese trawler
skipper held by Japan after his boat hit two Japanese coast guard vessels off
the disputed Diaoyu Islands. Reports say Beijing is on full alert, while Tokyo
has beefed up security at its facilities across the mainland. Other Japanese
buildings are reported to have been damaged following an attack on a Japanese
international school in Tianjin. The Japanese embassy has cautioned its
nationals to be careful in their encounters with Chinese and not to make their
nationality too obvious. In Hong Kong yesterday, activists scuffled with police
as they forced their way into Exchange Square in Central, on their way to the
Japanese consulate. About 20 activists from groups including the Action
Committee for Defending the Diaoyu Islands encountered security officials as
they ran up the escalators on the ground floor. A Japanese representative was
sent outside the building to accept a petition from the protesters, who resorted
to a sit-in. Chinese diplomats met Japanese ambassador Uichiro Niwa for the
fifth time since the trawler clashed with patrol boats last week. The trawler
and its crew of 14 were detained while the captain, Zhan Qixiong, was arrested.
The crew and trawler have since returned to China. Beijing said Niwa was
summoned to a meeting with its officials on Tuesday, during which the Chinese
side reiterated its demand for Zhan's immediate release. However, according to
Tokyo, it was Niwa who asked for the meeting at the foreign ministry, during
which he criticized Beijing for causing a diplomatic deadlock and for suspending
talks on energy exploration in the East China Sea. Japan's embassy cited Niwa as
saying China is "linking a number of unrelated issues to the fishing boat
collisions." Japan has refused to release Zhan, who can be detained under a
court order until Sunday - a day after the anniversary of the 1931 invasion of
Manchuria by Japanese troops. Zhan was unable to attend the funeral of his
grandmother, who died shortly after she was told about his arrest. His detention
has triggered a diplomatic standoff, with both sides accusing the other of
causing the rumpus. The trawler which Zhan operated, and which was freed on
Monday, returned to a Fujian port yesterday amid cheers of citizens and the
sound of firecrackers. An official ceremony was organized to welcome the boat.
The Japanese school in Tianjin, which was struck on Sunday by ball bearings
fired from an unknown source, has postponed its sports day scheduled for
Saturday. The decision was made after a request by mainland police, reports
said. In Guangzhou, beer bottles were thrown at the Japanese consulate.
Rent-to-buy housing plan on Tsang's agenda
- New option eyed for those too rich to enjoy public flats but too poor to buy.
Chief Executive Donald Tsang Yam-kuen is expected to unveil next month a new
subsidised-housing plan under which people will be able to rent to buy, with
rent paid counting towards the purchase price. The latest in a series of
measures floated in response to concerns about soaring property prices it would,
like the shelved Home Ownership Scheme (HOS), be aimed at people earning too
much to qualify for public housing and too little to afford to buy a flat. The
proposal came to light two days before the end of a public consultation on
whether the government should subsidise people's flat purchases. It also came as
Hong Kong General Chamber of Commerce chairman Anthony Wu Ting-yuk - who earlier
suggested a similar scheme - called on the government to resume regular auctions
to increase land supply. Observers said the impact on the market would depend on
how many new flats were built but it was unlikely to have a big effect as the
flats would not be directly available for sale. An official familiar with the
discussion on subsidised housing said qualifying buyers would be able to rent
the flats for a specified period - probably three to five years - after which
they would have to buy or move out. Rent paid would count towards the purchase.
"The advantage of the scheme is that aspiring homeowners would not need to rush
to buy a flat when property prices were soaring because they would enjoy a
breathing space of a few years," the official said. The government preferred the
idea to providing low-interest loans which could further fuel the overheating
property market. It is understod to be reluctant to relaunch the HOS - shelved
in 2002 as part of efforts to boost a market slumping at the time - so the flats
would probably be built by statutory bodies like the Housing Society rather than
the Housing Authority. There was no word on how prices would be set, whether
there would be discounts or how big these would be. At present, a family of four
qualifies to rent a public flat if household earnings do not exceed HK$16,916 a
month. Professor Eddie Hui Chi-man of Polytechnic University's building and real
estate department said the government could consider building 2,000 to 3,000
flats a year, or even fewer during a trial run. It would not need to offer big
discounts if the scheme achieved its aim of helping people save money, he said.
Dr Lau Kwok-yu, associate professor in City University's public and social
administration department, said the government needed to give more details of
the social and financial costs and benefits of its proposed housing scheme, and
compare them with other programmes such as the HOS, before launching it.
"Without the information, it's difficult to comment about whether the idea is
good or not," Lau said. "What if some occupants' incomes decline and they cannot
afford to buy the flat or afford to rent other flats in the market?" Dr Lawrence
Poon Wing-cheung, chairman of the Hong Kong Institute of Surveyors' housing
policy panel, said the government should check tenants' incomes regularly "to
avoid certain people getting a lifelong subsidy based on a single assessment at
a certain time".
The traditions of the Mid-Autumn
Festival date back thousands of years, to feudal times in China when the hauling
in of the annual harvest was cause for great feasting and celebration. And in
Hong Kong today, the festival still marks a time for family gatherings, for
feasts (including mooncakes of course) and for taking lanterns to beaches, parks
and hilltops around town. When the moon is full, the most popular destinations
for families to gather with their lanterns are the walks around The Peak or up
to Mount Butler, Victoria Park, the Tsim Sha Tsui waterfront or the sands of
Shek O and Repulse Bay. Lantern shops in districts such as Sheung Wan do a
roaring trade with tastes that were once only concerned with traditional
good-luck charms such as gold fish turning to more modern fixations such as
cartoon characters and luxury cars. "We find that when people want traditional
lanterns such as rabbits or star fruit, they want them made in the traditional
ways, with paper and bamboo," says Gordy To Ching-sung, whose family has run the
Chun Sing Hong lantern shop at 138-142 Queen's Rd West (tel: 2547 4653) for the
past 30 years. "A lot of kids today like more modern designs such as Thomas the
Tank Engine or Hello Kitty and those are made out of plastic. It is a huge event
for us, but we always have to keep our eye on the weather. We pray for clear
skies and then everyone can get out and have a good time." Like people all over
Hong Kong, Chau Hin-wah celebrates the Mid-Autumn Festival by heading home for a
family gathering. There is, he says, plenty of food, lanterns for the kids and
time to reflect on all the good things in life while surrounded by his nearest
and dearest. But the festival - which takes place on September 22 followed by a
public holiday the next day - plays a special part in Chau's professional life
too. In his role as curator for intangible heritage at the Hong Kong Heritage
Museum, Chau has immersed himself in the history of this ancient event and the
ways it has been adapted by local society. A recent two-year study by the
Shanghai Spiritual Civilisation Construction Committee and the Shanghai Folk
Culture Association found that the Mid-Autumn Festival came in just behind the
Spring Festival as China's most popular - the reason being that it helped give
the public a greater understanding of their own culture. And Chau says the
festival is popular among Hongkongers for the same reason. But what is really
interesting is how people have adapted these traditions when they moved here
from the mainland. "In Hong Kong we have our own special rituals," he says. "The
Tai Hang Fire Dragon parade [from Tuesday to Thursday] is unique to this city
and is quite wonderful. It wasn't originally associated with Mid-Autumn - the
people in Tai Hang held the procession to ward off the plague. But it has
evolved to become part of the whole celebration." The Tai Hang event has been
held since 1880 and has been submitted for the national list of Intangible
Cultural Heritage in China. "There is also a dragon dance in Pok Fu Lam, a
similar kind of ritual that was taken there when people moved from Tai Hang into
the area and it is celebrating 100 years this year," says Chan. Mid-Autumn
lantern carnivals will also be hosted by the Leisure and Cultural Services
Department at Tsing Yi Park, Victoria Park and the Tai Po Waterfront Park on
Tuesday through to Thursday respectively, while other events such as
lantern-themed exhibitions and concerts will be held in public and private
venues such a shopping centres all over town that began on Tuesday until next
Thursday. And as Chau continues to chart the history of the event in Hong Kong,
he predicts it will keep evolving. "For much of history it has been a family
matter," he says. "It's a time to be with your family in your home town or
village. But it has become more public with time and with that I think we are
seeing a growing sense of community and of celebration. As the city has expanded
so has people's exposure to the event and it really has become part of the
fabric of Hong Kong life."
The
anti-corruption body has lost two senior and experienced graft-fighters within
three months - one headhunted to be general secretary of the police watchdog and
the other leaving for personal reasons seven years before his retirement age.
This departure of the two assistant directors has been followed by a reshuffle
in the operations department of the Independent Commission Against Corruption (ICAC),
which means the four assistant directors all have less than a year's experience
at directorate level. The 800-strong operations department is the core unit of
the anti- corruption body, where investigators are employed on contract terms
that are renewed every 2-1/2 years until they reach the retirement age of 60.
Ricky Chu Man-kin, 56, left in July for the Independent Police Complaints
Council (IPCC), although he will not start his new job until January. Principal
investigator Steven Lam Kin-ming was promoted to assistant director after Chu
left. Jeremy Lo Kwok-chung, 53, will leave on Thursday. A well-known
graft-buster, he worked for years in the operations department fighting police
corruption before being transferred to the community relations department last
year. Lo led the investigation team in the case of former police senior
superintendent Sin Kam-wah, who was convicted of accepting free sexual services
from prostitutes in 2003. The case triggered widespread public concern about the
conduct of some senior police officers and led to a clash between police and the
ICAC. Lo confirmed yesterday that he had decided to leave on the expiry of his
current contract. "Certainly I will miss the ICAC and my colleagues after
working there for 30 years, six months and 19 days. This is the time for me to
take a break," he said, adding that he was leaving for "personal reasons".
Having joined the ICAC in 1980, Lo said he had witnessed improving relations
between police and the graft-buster in the past 30 years. One memorable
experience was collaborating with the police in the 1990s in a vice-related
corruption case in San Po Kong. "We used the tactic of a Trojan horse with
investigators hidden in a British Army truck near the vice establishment, so
investigators could get in quickly," he said. A dozen police officers were
charged in connection with illegal gambling, conspiracy to rob, theft and
indecent assault in this case. Rita Liaw will succeed Lo as assistant director
for community relations. James To Kun-sun, deputy chairman of the Legislative
Council's security panel, said Chu was suitable to be general secretary of the
police watchdog. "I don't have many worries about the succession in the
operations department of the ICAC, as they still have capable investigators to
deal with corruption cases," To said. He said the current assistant directors of
the department, while inexperienced at directorate level, had more than 10
years' experience of fighting corruption and could handle complicated cases
including those involving digitalized methods.
A
faster, bigger and more expensive version of MyCar, Hong Kong's first locally
designed electric vehicle, will hit the streets soon with a crucial component
that was missing in the first model: air conditioning. Two years after it was
launched in London, the team behind the two-seater MyCar are awaiting approval
from the Transport Department before they release the new version in Hong Kong.
The upgraded model, already available in Europe, is powered by a lithium
battery, which means it can travel 160 kilometres before needing a recharge. The
older model uses a lead battery which must be recharged every 100 kilometres.
MyCar was developed in 2003 through a joint venture between EuAuto Technology
and Polytechnic University. It has been on the market in Europe since 2008 and
in Hong Kong since last year, but sales have apparently been slow. EuAuto
Technology chief executive Chung Sin-ling said since its launch, Hong Kong
airport had purchased several MyCars for its fleet but the government was yet to
put an order in. "They do support MyCar, it's just that it is designed for
Europe," she said. "That's why there was no air conditioning in the first
version." She said the lithium model would be 50 kilograms lighter than the
700kg lead model and cost more because of the improved battery. It would also be
able to reach speeds of more than 75km/h, faster than the previous top speed of
64km/h, and have more luggage space. "All this is from comments from users,"
Chung said. "We want to collect feedback because we want to involve the end
users in the design." Chung could not confirm a price for the lithium model in
Hong Kong but said in Europe the lead model sells for €10,000 (HK$100,334) while
the lithium model costs €16,000. She hoped the new model would be released
locally by mid-2011. "Lithium-battery costs are coming down so the pick-up rate
will be better next year," she said. The Danish minister for science, technology
and innovation Charlotte Sahl-Madsen visited PolyU in Hung Hom yesterday to
test-drive the electric car. 
HK$4b retail-office tower for Causeway Bay - Phoenix awaits order for compulsory
sale of last properties in 46-year-old building. Phoenix managing partner Samuel
Chu says of the redevelopment of Central Mansion: "The ugly duckling will have a
big facelift." In breathing new life into an ageing, dilapidated building in
Causeway Bay, the Hong Kong-based equity fund Phoenix Property Investors is
living up to its name. Like the legendary phoenix, a nearly HK$4 billion
retail-office building will rise on the site now occupied by the 46-year-old
block, Central Mansion, at the junction of Cannon Street and Jaffe Road. "The
ugly duckling will have a big facelift," said Samuel Chu, a managing partner and
chief investment officer for the fund. Two weeks ago, Phoenix announced it had
successfully acquired more than 90 per cent ownership of Central Mansion,
signing agreements for sale and purchase with more than 200 individual owners.
Their acceptances were sufficient to trigger the Land [Compulsory Sales for
Redevelopment] Ordinance, opening the way for a compulsory takeover of all the
flats, since the developer had achieved the threshold of 90 per cent of the
owners agreeing to sell. The fund said it was in the process of applying to the
Lands Tribunal for the compulsory sale to it of the remaining properties. Chu
said the remaining owners had not agreed to sell their flats to the fund for a
combination of reasons. "Some want us to pay a higher price. Some of the owners
are not in Hong Kong and some units have unclear ownership," he said. Phoenix's
purchase offer has turned more than 200 individual owners at Central Mansion
into instant multimillionaires. The fund set aside HK$2.6 billion to acquire the
11-storey building, where there are 249 owners. At present, the ground level and
basement are occupied by the President shopping centre. According to agents, the
fund managed to acquire 90 per cent ownership within about a year of offering
about HK$7 million per flat. Some shop owners received cheques for as much as
HK$100 million. "It is at least 80 per cent higher than market level," the agent
said. Chu expects it will take a year to buy the remaining properties in the
building, and that the project will be completed in 2014. Central Mansion
occupies a site area of about 15,235 square feet. It will be redeveloped into a
230,000 sqft Ginza-style complex with shops, speciality restaurants and a grade
A office tower. Taking into account the construction cost, Chu estimates the
total investment at up to HK$3.9 billion. "It will be our largest property
investment in Hong Kong," he said. Besides Central Mansion, the fund owns two
other development projects in Causeway Bay. These are the nearly completed Cubus,
a Ginza-style retail complex in Hoi Ping Road, and a site in Tang Lung Street,
which will be redeveloped into a commercial tower. In addition, it plans to
launch an upmarket block of flats, Gramercy, on Caine Road, Mid-Levels, in the
fourth quarter. The project comprises 106 flats ranging in size from 430 sq ft
to 2,620 sqft each. Besides Hong Kong, Phoenix has invested on the mainland and
in Taiwan and Japan. The fund is managing private equity capital of more than
US$1 billion, of which more than 40 per cent is invested in Hong Kong property.
US$250 million theatre at Macau's
City of Dreams - Performers take part in a preview of The House of the Dancing
Water in the US$250 million theatre at Macau's City of Dreams yesterday. It is
dubbed the world's most expensive performance, with a total investment of HK$2
billion and a daily operating cost of US$100,000. Building the theatre to house
the show alone cost US$250 million. But Melco co-chairman and chief executive
Lawrence Ho Yau-lung prefers to talk about the intangible benefits The House of
the Dancing Water will bring his City of Dreams casino resort complex in Macau.
Speaking on the eve of the show's opening, Ho said: "At the box office, we take
it for the long term. We can recoup the cost in some years." Ho, son of tycoon
Stanley Ho Hung-sun, remains tight-lipped on how much a full-house show can
bring. Ho also keeps the number of seats secret. City of Dreams has a 420,000 sq
ft casino with 400 gaming tables and 1,300 gaming machines, more than 20
restaurants and bars, a shopping centre and three hotels - Crown Towers, Hard
Rock Hotel and Grand Hyatt Macau - with 1,400 rooms. Ho expects the company can
recoup the HK$40 billion investment it made in 10 years. Melco International
Development (SEHK: 0200), the holding company for casino assets controlled by
Ho, had its losses narrowed in the first half after the opening of City of
Dreams, booking a loss of HK$218.2 million, down from HK$811.36 million a year
ago. Casinos in the West rely on theatre and music to lure visitors to their
casinos, either to entertain family members while their relatives gamble or in
the hope that the crowd will gamble after the performance. But the poor
performance of Zaia, the Cirque du Soleil show at the Venetian casino complex,
casts a shadow over the prospects of The House of the Dancing Water to lure
visitors. Zaia opened in August 2008. Venetian's owner, Las Vegas Sands Corp,
spent US$150 million to build the 1,800-seat theatre for the show. The average
attendance at the theatre is 65 per cent. Mainland visitors - the majority of
those going to casinos in Macau - have not been willing to pay up to HK$160 for
tickets and compose only a small fraction of the audience. Most attendees are
from Hong Kong, Taiwan, Japan and India. The show's lack of appeal to mainland
tastes has been blamed for the poor attendance. Tickets to the Melco Crown show
will sell for HK$380 to HK$1,280. Its creator is the Belgian Franco Dragone, who
directed nearly all Cirque du Soleil's best shows until 1988. The show takes
place in a giant swimming pool and involves 77 performers, many of whom perform
acrobatics. Ho thinks a major mistake Zaia made was not having a Chinese name.
He says the story of The House of the Dancing Water has plenty of elements to
appeal to mainlanders. Casino revenues in Macau increased 67 per cent in the
first half to 85.85 billion patacas, just shy of four times greater than the
US$2.8 billion in revenue the mega resorts on the Las Vegas Strip booked in the
period. High-stakes play drove the increase, as a wave of stimulus-fuelled
liquidity from the mainland trickled into the city's baccarat tables. VIP
revenue rose 85 per cent to 61.13 billion patacas, accounting for a
higher-than-usual 71 per cent of all Macau's gaming revenue.
Factory and warehouse sites across the
city could be used to build more than 22,000 flats as the government attempts to
put the lid on runaway property prices. The Planning Department has identified
29.5 hectares of industrial and commercial land in Kowloon and the New
Territories that could be used for private and public housing. Analysts welcomed
the release of more sites but do not believe it will stop property prices
climbing in the short term. Prices are approaching their 1997 peak. The amount
of land to be converted to housing is substantially more than the 20 hectares
mooted last month by Financial Secretary John Tsang Chun-wah and reflects
growing official concern that flat prices are getting beyond what average
Hongkongers can afford. The government has already tightened lending for
investment properties and introduced other measures to cool the market. The
Planning Department proposes to rezone industrial sites in Fanling, Tsuen Wan
East, Tuen Mun, Siu Lek Yuen and Fo Tan to housing use. Others sites in Tai Kok
Tsui and Yuen Long also could be converted to residential use. Surveyor Chan
Cheong-kit expects the government will aim for a lower density living
environment than other parts of the city. Still, the sites could accommodate
22,600 units with an average size of 700 square feet. There are expected to be
hurdles in implementing the change. Many sites will not be ready for residential
development for some time as they are owned by many different developers and
private owners. "It will take at least three years to get the approval for
residential development," Chan said, adding that the supply of housing would not
increase significantly over that time period. The sites in Tuen Mun and Siu Lek
Yuen are expected to be the first converted because they are held by a single
owner. If the industrial buildings are on strata-titled sites it may take some
time to convert to residential use. "The relaxation on land use will trigger
individual owners of those industrial buildings to sell to developers at a
higher price and they will wait for the acquisition," he said. Chan believes the
rezoning will give developers incentives to convert industrial sites to
residential development as the selling prices of residential flats are much
higher than industrial properties. Raymond So Wai-man, dean of the School of
Business at the Hang Seng Management College, said the property market will
benefit from increased land supply but the impact on housing supply will not be
significant in the short term. "The sites cannot be built immediately so
property prices will not drop significantly unless interest rates increase and
there is another downturn in the economy," he said.
KMB tries out electric 'green' bus
- The gBus KMB is trying out is the first of its kind in Hong Kong. It costs
about the same as a conventional bus but it doesn't pollute. Next time you hop
on a bus in Hong Kong, it could be as green as a walk in the park. Dubbed the "gBus"
for green and genesis, Kowloon Motor Bus (KMB) is currently trying out a bus
that it claims emits zero emissions because it runs on electricity. The company
plans to introduce the model to its fleet within a year. KMB has leased the bus
from a company in Shanghai for six months to see how it takes to local roads.
Kane Shum, principal bus engineer with KMB, said the bus runs on a
super-capacitor system, which has several advantages. It can be recharged in
short bursts at regular intervals without damage to the battery and it does not
rely on chemical reactions to store electrical energy. "It also runs on an
anti-current system so every time the bus driver brakes, it builds up the
battery," he said. The super-capacitor system is ideal for buses because a bus
route will typically stop often, creating the ideal conditions to recharge. For
example, a 30-second charge will give the bus enough energy to travel a
kilometre, so a bus driver would probably recharge it at every second bus stop.
The trial bus is a left-hand-drive model, so it can't be used in public
transport here, but the supplier is currently working on a right-hand drive
version that should be suitable for Hong Kong. It is has a single deck, is 12
metres long and can carry up to 70 passengers. When fully charged (which only
takes three minutes), the bus can travel with a full load with air conditioning
for 5 kilometres, equivalent to the distance between Tsim Sha Tsui and Sham Shui
Po. Carrying fewer passengers will mean it can travel for longer distances. The
company has set up a charging station at its Lai Chi Kok depot and the bus will
travel between there and Mei Foo during the trials. The bus will be tested under
hot and wet weather conditions as well as undergoing loading and reliability
tests. KMB managing director Edmond Ho said the bus would usher in a new era for
public transport in the city by adopting new technologies to create a "cleaner
and more environment-friendly Hong Kong". He said the electric bus would cost
about the same as a conventional bus in the existing fleet, or about HK$2
million. Two months ago, KMB submitted an application to increase its fares from
to by 8.6 per cent or an average increase of 52 HK cents per trip. A KMB
spokeswoman said the plan to buy the new buses was not connected to the fare
rise. When announced in July, that was blamed on higher costs and more
competition.
Spring Air launches cheap flights to
Shanghai - Spring Airlines, the budget carrier that grabbed headlines with its
"one-yuan" tickets and offers to sell passengers homes as they cruise at 10,000
metres, is shaking up the Hong Kong-Shanghai route with fares that undercut
heavyweights Cathay Pacific (SEHK: 0293) and Dragonair. The Shanghai-based
carrier will launch a daily return flight between the city's Pudong airport and
Hong Kong this month. Fares will be as low as 398 yuan (HK$457) return, less
than a third of the current lowest air fare. It is the first budget airline to
tap the lucrative route, which draws heavy demand from business and holiday
travellers. The route has been called golden because of the relatively high
fares - as much as HK$3,000 return in economy class - that airlines can charge
for the 2-1/2-hour trip. Demand on the route has been underpinned this year by
the World Expo in Shanghai. Analysts said Spring Airlines' daily service, using
a 180-seat Airbus A320 airliner, would have a limited impact on other carriers
at first. Cathay, Dragonair, China Eastern Airlines (SEHK: 0670), Shanghai
Airlines and Hong Kong Airlines operate 30 flights a day to Shanghai. Spring
Airlines also has limited scope to add flights because of a shortage of landing
slots in both Shanghai and Hong Kong. Market sources said it had had to give up
one of its landing slots at Pudong in exchange for the time slot for the new
flight to Hong Kong. Still, one transport analyst said Spring Airlines' low
fares would put pressure other carriers to cut fares, especially after the end
of the World Expo in October. Dragonair played down Spring Airlines' move. "Dragonair
believes that each airline has its unique position and target market," a
Dragonair spokesman said. "We have been monitoring the market development ...
Our fares are market-driven and depend on a number of factors, including
seasonal cycles, holidays, promotions as well as market demand." At 398 yuan,
Spring Airlines' fare is lower than that for a domestic flight between Shanghai
and Shenzhen. This should allow it to attract some of the Hong Kong travellers
who fly to mainland destinations through Shenzhen. Hong Kong travellers will
also be able to fly via Shanghai to Tokyo. In July Spring Air launched flights
between Shanghai and Ibaraki, 40 kilometres from Japan's capital. Spring
Airlines is one of the few independent carriers on the mainland to have survived
the market downturn. Several private airlines either collapsing or were
swallowed up by state-owned airlines. Founded in May 2005, it has a domestic
network covering more than 50 cities and operates a fleet of 20 A320s. It aims
to increase its fleet to 100 by 2015, helped by an A-share listing next year.
Low jet fuel prices and a revival in passenger demand have enabled budget
airlines to expand. The Airport Authority has been trying to lure budget
airlines to the city since 2008, when Malaysia-based low-cost carrier AirAsia
began serving Hong Kong.
CKI still in race for high-speed rail -
Cheung Kong Infrastructure Holdings (SEHK: 1038) (CKI), controlled by Li Ka-shing,
had made it past the first round of bidding for the only operational British
high-speed railway, High Speed 1, a person close to the deal confirmed. The Hong
Kong-listed firm would not partner any company in bidding for the 30-year lease
of the 109-kilometre rail link from London to the Channel Tunnel, the person
said. The first round of bidding was completed last week, said another person
familiar with the deal, based in Britain. "Given that the bidding process is
expected to be completed by the end of this year, I don't expect there'll be
many more rounds." The British government had set a deadline of March 31 next
year for the completion of the deal, the British source said. The expected price
range was £1.5 billion (HK$1.73 billion) to £2 billion, the person added. The
successful first-round bidders have been asked to submit binding offers by
October 29, according to a Reuters report. At least four parties passed the
first round. They include a consortium comprising Eurotunnel, Goldman Sachs
Infrastructure Partners, M&G's Infracapital, Britain's Universities
Superannuation Scheme and the infrastructure arm of France's Caisse des Depots
et Consignations, as well as another consortium comprising Morgan Stanley
Infrastructure, 3i Infrastructure and the Abu Dhabi Investment Authority,
according to Reuters. A third consortium includes the Ontario Municipal
Employees Retirement System and the Ontario Teachers' Pension Plan. At the
Infrastructure Investment World Asia conference earlier this month, CKI group
managing director Kam Hing-lam had declined to say whether his firm was bidding
for High Speed 1. However, he said: "[Britain] is a country where we have
investments. We like to invest in a country where we have investments." In July,
Cheung Kong (SEHK: 0001) Infrastructure, with other companies and organisations
controlled by Li, emerged as the preferred bidder in its proposed £5.775 billion
acquisition of the British electricity assets of French energy conglomerate EDF.
Magistrate Anthony Yuen Wai-ming -
accused of being too lenient with cop slapper Amina Mariam Bokhary - got tough
yesterday after having second thoughts in another case. "I put too much weight
on the probation report and overlooked the facts of the case," Yuen explained
about handing insider trader Pablo Chan Pak- hoe a 240-day community service
order after he was convicted following a 15-day hearing. Having got that off his
chest, Yuen then sentenced Chan to four months in jail and ordered him to pay a
penalty of HK$120,000. That was the sum the Securities and Futures Commission
said Chan gained from insider trading. Chan then said he wanted to appeal
against the sentence and was granted bail of HK$50,000. The prosecution had
argued during yesterday's review of Chan's sentence in Eastern Magistracy that a
community service order should only be made for someone who shows remorse. But
Chan did not - as shown by him only being convicted after trial. The defense
argued that a community service order was the correct decision and that a
probation officer was convinced Chan was remorseful. Chan also had a previously
clear record and had vowed to be a law-abiding citizen. Yuen triggered a public
outcry last month when he put Bokhary - niece of Court of Final Appeal Justice
Kemal Bokhary - on probation for a year after a third conviction for assaulting
a police officer. The prosecution in that case called for a harsher sentence,
but Yuen refused to be swayed. The Department of Justice has since appealed
against the sentence and the case is pending in the High Court. The defense in
Bokhary's case submitted a psychiatric report suggesting she suffered from
bipolar disorder and had a drinking problem for which she was to undergo
treatment in a US clinic. Before sentencing, Yuen made reference to a probation
officer's report, which said Bokhary had a good background, a well-off family,
good education and outstanding academic achievements. Yuen said at the time that
he was aware of the public reaction and angry claims that the law favors the
rich. He also wondered how the public would react if a poor defendant suffering
from a mental illness had similarly been spared a jail term and given a chance
to rehabilitate. Eric Cheung Tat-ming, an associate law professor at the
University of Hong Kong, said reviews of sentence in a magistracy are not rare.
Nor is it unusual for a magistrate to have second thoughts on a sentence, though
it is more common for those unhappy with a magistrate's ruling to take their
appeal to a higher court. A review by the same magistrate "is a faster and
cheaper way." Cheung also said that, although Yuen admitted putting too much
weight on the probation officer's recommendation on the inside trader, this did
not suggest he did likewise in Bokhary's case. Legislator and barrister Ronny
Tong Ka-wah said he believed the magistrate was right this time. "Insider
trading is a serious commercial crime and fraud- related," he said.
Foxconn option for Henan's migrating
millions - A new factory in Zhengzhou making Apple iPhones will employ 300,000
locals closer to home ... and it's a great deal for the IT giant - About 22
million residents have left the poor, inland province of Henan to become migrant
workers in the mainland's coastal factories, but that could all be about to
change. Zhengzhou , the provincial capital, recently took just a month to build
a production line for Taiwanese IT giant Foxconn, which plans to move 300,000
jobs to the city.
In June, top Henan officials led a team
to Foxconn's main Shenzhen plant to negotiate the transfer deal. In July, Hon
Hai, Foxconn's parent, finalized plans for a new factory in Zhengzhou, costing
about 2 billion yuan (HK$2.3 billion). Lu Zhangong, Henan party secretary - On
August 2, Foxconn's first production line, employing 2,000 workers, started
operation in Zhengzhou. Foxconn now wants to recruit 100,000 people in Henan by
year's end - and a total of 300,000 in the next few years.
China advancing at an
'astonishing' pace on green technology outpace Western competitors, according to
Europe's climate chief. Beijing's climate negotiators are moving too slowly, but
the country's green-energy companies are advancing at an "astonishing" pace and
threaten to outpace Western competitors, according to Europe's climate chief.
Connie Hedegaard's comments came as part of a warning that Europe would not
automatically sign up again to the UN's Kyoto Protocol, the main global deal to
tackle climate change. "I was a bit disappointed in Geneva," she said of UN
climate talks earlier this month. "China was represented by an undersecretary
from the local embassy, that was not a good sign. China is a key player and they
have to commit strongly." At the same time, she warned business leaders at the
European Policy Centre against underestimating Chinese rivals in the race for
global dominance of the green technology sector. "I really strongly believe that
it's very foolish if one mistakes the way [China] are slow around the
negotiating table with what is happening in reality in China," she said. Three
Chinese wind-turbine makers are in the global top 10, up from zero 10 years ago,
and China controls half the global solar market. "Coming from Denmark, where it
took 30 years to build the world [wind power] brand Vestas, I'd say that's
astonishing how you can build three companies in the top 10 globally in less
than 10 years," she added. "It tells us something about how fast they are moving
when they are moving." Hedegaard said progress looked "very difficult" in the
lead-up to talks in Cancun, Mexico in November, and that nobody should expect
the EU to sign an extension of the Kyoto Protocol unless loopholes were closed
and other big players committed.
Stephen Chan reports to ICAC -
Former TVB general manager Stephen Chan Chi-wan is surrounded by the media after
reporting to the ICAC in Quarry Bay on Tuesday. Former TVB (SEHK: 0511) general
manager Stephen Chan Chi-wan - arrested for suspected graft six months ago -
reported on Tuesday morning to the Independent Commission Against Corruption (ICAC)
as part of his bail conditions. About 11am, Chan appeared at the ICAC
headquarters in North Point and spent about 30 minutes there. He had been
allowed bail set at HK$500,000. When he left the ICAC headquarters, Chan did not
answer questions from reporters. Chan’s former assistant and company director of
Idea Empire advertising and production, Edthancy Tseng Pei-kun, and TVB’s head
of business development Wilson Chan Wing-suen also met with the ICAC on Tuesday
morning. The ICAC had arrested Chan, Tseng, and three other TVB employees in
March for alleged corruption. The former general manager and TVB variety show
executive producer Wilson Chin Kwok-wai were alleged to have provided TVB
performers for variety shows produced by the advertising company for a fee that
was half that charged for 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. So far, no
charges have been made by the ICAC. Local news reported that TVB was considering
allowing Chan and some of the others to resume their duties. But TVB external
affairs division assistant controller Tsang Sing-ming said the company had no
comment to make on this.
Media tycoon Jimmy Lai Chi-ying said on Tuesday Taiwan was set to be the “centre
of cultural production” for the Greater China market as he gears up for the
launch of his TV channels on the island. “With its rule of law and protection of
intellectual property, Taiwan is destined to be the centre of production of
films, TV programmes and cultural products for Greater China,” he said at the
Asia Media Summit in Hong Kong. Publications by Lai’s Next Media (SEHK: 0282)
Group, famous for its muck-raking style and anti-Beijing stance, have been
banned in the mainland China. But instead of trying to push his way into China,
Lai has extended the boundaries of his operations from Hong Kong to Taiwan since
2001 with the launch of the hugely successful Taiwanese editions of the weekly
Next magazine and the Apple Daily newspaper. His group is in talks with Taiwan’s
media watchdog for permission to run news, information and entertainment TV
channels, according to media reports. The reports said discussions had been put
on hold due to the authorities’ concern over his sensationalist style and focus
on sex and violence. But Lai remained confident about his foray into television.
“TV in Taiwan - that’s what we want to conquer in time, although it’s really
difficult.” The tycoon said his focus on content production and Internet-based
TV would eventually help him enter the market in China, where, like Taiwan,
Mandarin is spoken. “The future for us is content production and having that
content syndicated and sold to various media groups.” “Hopefully, when Taiwan
becomes the centre of cultural production, we will have the Greater China market
through Internet communication.”
Local banks have by and large met the new
international capital requirements announced on Sunday, the Hong Kong Monetary
Authority said. Authority deputy chief executive Arthur Yuen Kwok-hang said
banks will be little affected and see little pressure to raise funds. Karen
Kemp, executive director of banking policy at the authority, also expects banks
to maintain their payout ratio amid competition. In line with expectations, the
Basel Committee on Banking Supervision maintained on Sunday the capital adequacy
ratio at 8 percent. Banks' Tier 1 ratios will have to grow from 4percent to 6
percent and common equity ratio from 2 to 4.5 percent by 2015. Yuen disclosed
yesterday that local banks' financial ratios are "well above" the requirements.
Their capital adequacy ratio stood at 15.7 percent at the end of June. Tier 1
capital was 12.1 percent and common equity around 10.4 percent. But he noted it
is normal for individual banks to see a drop of 2 to 3 percent in capital
adequacy ratio under new definitions. An extra capital conservation buffer of
2.5 percent in common capital must be in place by 2019. Yuen stressed that banks
can still make loans and fall below this ratio, but then dividends and bonuses
will have to restricted. There will also be a buffer ranging from zero to 2.5
percent subject to national discretion to curb "systemic risks" from excess
credit growth. Australian brokerage Macquarie does not envision this buffer
kicking in any time soon, with G20 nations still prioritizing growth. It noted
banks will get a lift from the lower capital raising risk, including Bank of
East Asia (0023), China CITIC Bank (0998) and China Minsheng Bank (1988). Hang
Seng Bank (0011) general manager Andrew Fung Hau-chung said the new arrangements
can boost market stability. Since they will come into force in phases over time,
banks will have enough time to get prepared, Fung said. Financial Secretary John
Tsang Chun-wah agreed that banks are capable of handling the new rules, given
tight local requirements in the first place.
Chinese trains on California
tracks - High-speed trains park at a railway station in Beijing. The Ministry of
Railways has signed a memorandum of understanding with the Bay Area Council to
develop a high-speed rail system in California, United States. Governor
Schwarzenegger tapping nation for high-speed rail network. The Ministry of
Railways on Monday signed a Memorandum of Understanding (MOU) with the Bay Area
Council for investing in California's future high-speed rail network. Under the
MOU, the council will provide assistance and consultancy services on high-speed
railway construction to the Ministry of Railways and other companies under the
ministry. The Bay Area Council is a business-sponsored organization comprising
275 large companies in Los Angeles and the Silicon Valley in California. The
agreement was inked during California Governor Arnold Schwarzenegger's visit to
China. "We look to China to build our high-speed rail, to be part of the bidding
process that we are going to go through," Schwarzenegger was quoted by Reuters
on Monday in a speech made in Shanghai. "Many countries will be bidding to build
our high-speed rail, (and we plan) also to look for financing from China,"
Schwarzenegger said. California was recently given permission to construct a
high-speed railway between Los Angeles and San Francisco at an estimated cost of
over $40 billion by 2020. Schwarzenegger, accompanied by Ministry of Railways
officials, took a high-speed train in Shanghai on Sunday to gain first-hand
experience. The former Hollywood star is heading a US state with a $19.1 billion
budget deficit, and is looking for closer relations with cities such as
Shanghai, which are transforming into global financial centers. On Monday, the
Bay Area Council and Shanghai Private Equity Association inked an agreement to
set up a Financial Services Knowledge Exchange focused on venture capital
development in Shanghai. SVB ESG (Silicon Valley Bank Entrepreneur Service
Group) will provide financial knowledge communication and expertise in venture
capital, technology and life science in China through its representative office
in Shanghai. Four agreements were also signed on carbon emission and high
technology between California's delegates and their Chinese counterparts on
Monday. Schwarzenegger also visited manufacturing base of Shanghai Zhenhua Heavy
Industry Co in the city's Changxing Island, where the steel deck segments of the
new eastern span of the San Francisco-Oakland Bay Bridge are being manufactured.
The self-anchored suspension span is the largest engineering project in
California's history with $6.3 billion investment and will be completed by 2013.
ZPMC obtained a contract worth $250 million to fabricate the decks and the steel
segments for the eastern span's main tower. California is one of the top
exporters to China, with export volumes of more than $9.7 billion in 2009.
Schwarzenegger is on a six-day trip to Asia, and since last Friday has been in
China. He has visited Shanghai, Hangzhou of Zhejiang province, and Nanjing of
Jiangsu province. He will also visit Japan and South Korea.
Klaus Schwab (1st L), founder and
executive chairman of World Economic Forum, tastes a steamed stuffed bun at the
cultural soiree of the World Economic Forum (WEF) Annual Meeting of the New
Champions 2010, held at Italian style town of north China's Tianjin Municipality
on Sept. 14, 2010.
Yuan at new high as pressure mounts on Beijing - The yuan hit a fresh
post-revaluation high against the US dollar on Tuesday, with Beijing seen
conceding to let the yuan rise as US lawmakers call for a vote on a bill to get
tough with the country over its slow exchange rate reform. The People’s Bank of
China fixed the yuan’s mid-point to the US dollar at its highest level since the
yuan’s landmark revaluation in July 2005. The yuan has risen 0.8 per cent in
four trading days as measured by the fixing, the biggest four-day gain since
records of the reference rate started to be kept in 2007. But dealers said
mainland’s looser grip on the yuan may have limits, possibly up to a maximum
rise of 3 per cent by the end of this year from June 19 when the PBOC announced
a depegging of the yuan to the US dollar, in particular as the yuan has already
risen more than 20 per cent since 2005. “China has its own calculations of the
yuan’s value,” said a senior dealer at a state-owned bank in Beijing. “US
politicians are talking about a yuan undervalued by up to 40 per cent many years
ago and they are saying the same while the yuan has already jumped more than 20
per cent since 2005.”
The good news first: people
who invested in bonds issued by newly listed mainland developers are getting
record high interest rates. But the bad news is that the risk of losses on these
bonds is mounting as the housing market shows signs of slowing. Last Friday,
Fujian-based Powerlong Real Estate Holdings became the latest mainland developer
to launch a US$250 million bond, paying investors a 13.75 per cent annual coupon
over five years. The developer said the proceeds from the bond would be used to
fund new and existing property projects. Hong Kong-listed mainland developers
are regular offshore bond issuers, constituting half of the size of the Asian
high yield bond market. In the past two months, a total of US$1.3 billion was
raised from bond issues by mainland developers Renhe Commercial Holdings (SEHK:
1387, announcements, news) , KWG Property Holding, Shimao Property Holdings (SEHK:
0813) and Powerlong, paying investors annual coupons ranging from 9.65 to 13.75
per cent. Property sales took a hit in May after the government acted to curb
speculation in the sector. Land supply for housing construction rose and banks
were told to cut back on lending, making it harder for individuals to get
mortgages for second homes. Credit analysts said that prices of China property
bonds plunged in May, especially the newly listed property developers, although
many have since rebounded from their lows to par or above par in recent weeks.
nother newly listed developer, Shanghai-based Glorious Property Holdings, had to
call off the launch of a bond in April because the high-yield bond market was
too volatile as a result of the government's cooling measures, according to
chief executive Cheng Lixiong. Bond investors demanded higher interest from
newly listed developers due to their low rankings and short track records, said
Bei Fu, an analyst at Standard & Poor's. It might take years for these
developers to establish relations with banks, which are less inclined to lend to
companies that are highly geared and offshore bonds offers a good funding
channel for these firms, but they have to be prepared to pay a high price.
Although Glorious Property was not willing to pay the high price that bond
investors demanded, Shenzhen-based Kaisa Group Holdings and Fantasia Holdings
wanted to cash in on investors' interest before funding costs soared to a level
that they could not afford. Fantasia's US$120 million five-year bond in May pays
an annual coupon of 14 per cent, while Kaisa's US$350 million five-year bond in
April offers 13.5 per cent. Fantasia chairman Pan Jun admitted that the company
had paid a high price to borrow. "But our net profits will not fall if we use
the money raised to buy cheaper land sites," he said in May, adding that
Fantasia had probably got on the "last train" to tap the international bond
market with credit becoming tight. Many newly listed developers such as
Evergrande Real Estate Group (SEHK: 3333) and Kaisa Group had borrowed heavily
before their flotations, and chose to repay a portion of their debt using just a
small proportion of the net proceeds, while allocating the remaining to fund
land acquisitions, construction and projects. Following listings, these
developers have chosen to use proceeds of these bonds to partially fund debt
payments. Fu at Standard & Poor's said mainland property developers tended to be
more aggressive after gaining a Hong Kong listing, launching bonds to fund
projects and land acquisitions, hence they may overlook risk management in
favour of expansion. Both Moody's Investors Service and Standard & Poor's said
they had no plans to downgrade any developers or their bonds that they had rated
over the last few months. Although property sales have since recovered from
May's slump, for bond investors, the outlook is not rosy, especially if they
have holdings in the bonds issued newly listed mainland property firms. There
are strong signs that the mainland property market has started to cool down.
China's property prices rose at the slowest pace in eight months in August from
a year ago, according to Vince Chan, a credit strategist at Amias Berman & Co.
Property values in 70 major cities climbed 9.3 per cent year on year - less than
the 10.3 per cent year-on-year gain in July, Chan said. CCBI Research said that
an uncertain policy outlook remained the key risk for mainland developers, which
are expected to launch more projects at discounts of between 10 and 20 per cent
in order to boost sales. While Powerlong's bond made a promising debut on Friday
and had been trading above par, Kaisa's bond fell below par yesterday. Mainland
property bonds with weaker fundamentals such as Kaisa are much more vulnerable
to macroeconomic and policy risks than their stronger peers, according to Chan.
And mainland property bonds track their issuers' listed shares closely. Shares
of Kaisa, Powerlong and Fantasia have been trading below their respective offer
prices since their listings last year. The weak macroeconomic conditions
together with a slowdown in sales has prompted fears that weakness in the
property market will trigger bond investors to sell off their holdings in lower
quality bonds such as those issued by the newly listed property developers.
"There is policy tightening risk in the fourth quarter, which together with
bonds trading at historical highs, could lead to some corrections in bond
prices," said Keith Chan, a corporate credit analyst at HSBC (SEHK: 0005).
Cross-Strait Mid-Autumn opera show to
greet Mid-Autumn Festival.
Michael Tien
poised for Liberal leadership role - The younger brother of former Liberal Party
chairman James Tien Pei-chun looks set to play a bigger role in the party, which
is thinking about changing its leadership structure. Some voices within the
pro-business party say Michael Tien Puk-sun, who sits on the executive
committee, should be given the title of vice-chairman to reflect his growing
workload. One of the party's two current vice-chairmen, Tommy Cheung Yu-yan,
says he has thought about resigning but has not made a decision. Cheung,
lawmaker for the catering sector, was roundly criticised in March after he
suggested that the city's first statutory minimum wage should be just HK$20 an
hour. Party chairwoman Miriam Lau Kin-yee said no decision had been made but an
extra post of vice-chairman could be an option. She sought to play down
speculation that Tien would replace Cheung, though she admitted Cheung had been
"quite reluctant" to serve as vice-chairman in the past two years. "He often
said he gave a helping hand to the party after our party suffered from the
withdrawal of several lawmakers in 2008," she said. Four Liberal Party
legislators quit the party after it was routed in the 2008 Legislative Council
election. Lau said: "We need to review our party manifesto, which states that
there are only two vice-chairmen. "It seems odd that Tien often attends public
forums and gives media interviews on behalf of our party but he is only a member
of our 26-strong executive committee." The other vice-chairman is Vincent Fang
Kang, lawmaker for the wholesale and retail sector. Lau said the Tien brothers
would join party leaders at the end of the month for an informal discussion on
how to adjust the leadership structure. The party's executive committee would
make a decision at its meeting next month. Asked why James Tien was taking part
in the talks, Lau said it was natural for the former chairman to do so because
he was still concerned about the party's development. There is speculation that
James Tien - who stepped down as party chief after losing his Legco seat in the
2008 elections - is grooming his brother as a future party chairman. Michael
Tien, who could not be reached for comment yesterday, ran for a seat in Kowloon
West in the 2008 election but was defeated. He is considering contesting a seat
in New Territories West in the 2012 Legco poll. Cheung said in an interview with
RTHK that he had thought about stepping down as party vice-chairman and whether
he would do so depended on the availability of a suitable candidate to take up
the post. He did not think there was disagreement between the catering industry
and the Liberal Party on the minimum wage and said he had never been in a
difficult position. The Liberal Party distanced itself from Cheung's remarks on
the minimum wage. It proposed an hourly wage of up to HK$24 and said it had
never suggested HK$20. Cheung later apologised for his comments.
A single mooncake can push you to
your daily limit for fat and sugar - Everyone hopes for a big, bright, full moon
for the Mid-Autumn Festival next week, but when it comes to mooncakes,
dietitians say we'd be better off with a quarter. Warnings about the fat and
sugar content of the seasonal delicacies are common, but this is the first time
consumers have been able to make direct comparisons, thanks to the government's
nutrition labelling laws that took effect on July 1. And a check of the labels
shows the warnings are justified: some mooncakes contain almost one-and-a-half
times an adult's recommended daily intake of sugar, while for others a single
cake could account for a full day's fat consumption. Eating a whole lotus seed
mooncake with two egg yolks from Maxims, Saint Honore, Kee Wah and Wing Wah
would put an adult over the recommended sugar limit of 50 grams by up to 45 per
cent. A whole Hang Heung mooncake contains 58.7g of fat, very near the daily
recommended maximum of 60g. Flavia U, a former chairwoman of the Hong Kong
Dietitian Association and a registered dietitian in Britain, said a mooncake
contained as much energy as three bowls of rice, but people shouldn't worry too
much provided they knew when to stop. "Eating just a quarter of a mooncake as a
snack is perfectly acceptable," she said. Snowy mooncakes are generally
perceived as healthier, but a Saint Honore yolk and mung bean flavoured mini
mooncake contains 0.4g of trans-fat. This is especially a concern for children,
as their recommended daily maximum intake of such saturated fat is about 1.65g.
An adult, on the other hand, should not consume more than 2.2g of trans-fats a
day. Dietitians advised that consumers should also read the small print on
mooncakes carefully, because some labels listed the nutrition content per
serving size, which could be as small as one-eighth of a mooncake. To calculate
the nutrition level based on 100g of food, buyers can make use of an online
calculator on the Centre for Food Safety's website. U said there was no need for
undue worry. She said eating festive foods such as mooncakes was fine, as long
as one knew when to stop. Next Thursday is the first Mid- Autumn Festival since
the nutrition labelling law came into force. Under its requirements, food labels
must specify the product's energy content plus levels of seven core substances -
protein, total fats, saturated fats, trans-fats, total carbohydrates, sugars and
sodium. "Ingredients such as flour may affect blood-sugar levels," U said. "But
if the total carbohydrate level is below 20g per 100g of food, it is
acceptable." She said that if diabetes patients wanted to have more mooncakes
during the festival, they should eat less rice to compensate. "As long as one
does regular exercise and maintains a healthy diet in general, eating festive
food is perfectly fine." All 250 mooncake samples collected by the Centre for
Food Safety passed chemical and microbiological tests under an annual
surveillance programme, the centre said.
Consumer goods exporter Li & Fung (SEHK:
0494) said on Monday its shareholders have approved its plan to take logistics
unit Integrated Distribution Services Group private. Shares of Li & Fung, supply
chain manager for retailers including Wal-Mart Stores and Target, rose 2.9 per
cent to their record high of HK$44.45 before the stock steadied at HK$43.75 by
late afternoon, still up 1.3 per cent. That compared with a 1.9 per cent rise in
the broader market. IDS shares rose two percent. “We are pleased with the
outcome of the voting, which represents a major step towards implementing our
strategy to extend our geographical penetration and enlarge our service
offerings,” said Bruce Rockowitz, president of Li & Fung. In August, Li & Fung
said it would pay up to HK$4.4 billion in cash and issue new shares to buy out
logistics services firm Integrated Distribution Services (IDS), in which the
family of Li & Fung chairman, Victor Fung, holds 45 per cent.
Arnold Schwarzenegger
praises workers of the central segment of the new San Francisco Bay Bridge being
built in China - Arnold Schwarzenegger during his visit to Zhenhua Heavy
Industries in Shanghai, where the new Bay Bridge is being built and shipped. -
California governor Arnold Schwarzenegger expressed his gratitude with high
praise to Shanghai workers yesterday as he visited a factory that is making the
central segment of the new San Francisco Bay Bridge. "There was one thing that I
demanded from my staff, and that was that when we go to China [we] have got to
put a certain amount of time aside so I can go and visit the workers that are
building our Bay Bridge, so that I have a chance to say 'thank you, thank you,
thank you for the great work you are doing'," he said, to applause from the
crowd. "You have done an extraordinary job because so many of you go to work
every day and do welding, painting, lifting, designing, shipping, all of those
things in order to help us in California rebuild our Bay Bridge." The movie star
turned politician was swamped by hundreds of workers as they scrambled for a
chance to shake his hand during the brief visit. Schwarzenegger was visiting the
Shanghai Zhenhua Heavy Industries factory on Changxing Island, at the mouth of
the Yangtze River, where a key section of the new San Francisco-Oakland Bay
Bridge is being built. Zhenhua is constructing prefabricated steel parts for a
624-metre self-anchored suspension bridge and its 83-metre-high supporting tower
- due to become the longest span of its type when completed next year - on the
13.5-kilometre link joining the two cities. The massive refit of the entire Bay
Bridge - originally built in 1936 - began in 2002 and is intended to make sure
it can withstand the next big earthquake to hit the area. "When this Bay Bridge
is finished there will be 300,000 cars going over it every single day,"
Schwarzenegger told the workers. "I hope that you all have a chance to go to
visit your finished product which you have designed and you have created. I hope
that all of you have time one day to come to California to visit us, and I
guarantee you that when you come to California you will say, 'I'll be back'."
Yesterday saw the departure of the fifth shipment of components for the bridge
project. The massive segments were loaded onto the deck of a cargo ship docked
alongside the venue where Schwarzenegger met the workers, its horns blaring
repeatedly as he pushed through the throng. Zhenhua is the world's leading
manufacturer of heavy lifting cranes, and is estimated to have produced around
70 per cent of the cranes used in the world's container ports.
The UN court that settles disputes among member states has sworn in new judges
from China and the United States and to join the 15-member bench. Before taking
her seat Monday, Xue Hanqin was China’s ambassador to Asean, the grouping of
Southeast Asian nations, and previously was ambassador to the Netherlands. Joan
Donoghue was the top legal adviser on international law to President Barack
Obama and Secretary of State Hillary Clinton, including issues related to
interrogations at the Guantanamo Bay detention centre. Donoghue also advised the
government on human rights law, and has been involved in several cases at the
International Court of Justice, the UN’s highest judicial body. It’s the first
time the court has two women judges at the same time.
Premier Wen
Jiabao speaks at the opening plenary of the World Economic Forum's Annual
Meeting of the New Champions 2010, also known as Summer Davos in Tianjin on
Monday. The risks of rapid bank lending to mainland’s local governments is
increasing, Premier Wen Jiabao said on Monday. Banks have lent 7.66 trillion
yuan (HK$8.78 trillion) in total to thousands of financing vehicles established
by local authorities to circumvent a ban on direct borrowing. The money is used
mainly to fund infrastructure investment, but, according to mainland’s banking
regulator, only 27 per cent of the loans are definitely backed by solid assets.
Speaking at the start of the World Economic Forum three-day “Summer Davos” in
the northern port city of Tianjin, Wen said the mainland was comfortable with
the overall amount of banks’ non-performing loans. He also sounded a positive
note on the economy, which he said was in good shape and basically stable,
helping power the world’s recovery from the devastating financial crisis. Wen
also pledged to ensure an open and fair environment for foreign businesses
operating in the Asian powerhouse. “China’s economic growth has provided major
development opportunities for the multinationals and created huge demand for
major economies and neighbouring countries,” Wen said. “It has become an
important engine for the world economic recovery,” the premier said, praising
his country’s massive stimulus package as “timely, fruitful, effective and
suited to China’s realities”. “China’s economy is now in good shape, featuring
fast growth, gradual structural improvement, rising employment and basic price
stability,” he said. China’s economy slowed in the second quarter, growing 10.3
per cent compared with a blistering 11.9 per cent in the first three months,
after Beijing introduced a slew of measures designed to avoid overheating.
Japanese government data issued last month showed that its second quarter GDP on
a nominal basis came in at US$1.288 trillion, below the mainland’s US$1.336
trillion, although Japan remained stronger over the first half. Wen reiterated
that Beijing was “committed to creating an open and fair environment for
foreign-invested enterprises”, while noting that foreign firms had “reaped good
returns” in the country. Surveys by the American and European chambers of
commerce in recent months have shown that overseas companies are increasingly
unhappy with the way they are treated in the mainland. The European Union
chamber said early this month that uneven enforcement of laws and unfair
restrictions on foreign investment were deterring overseas companies from
expanding their operations in the Asian country. Beijing last month urged
officials to implement policies aimed at encouraging foreign investment, in an
apparent response to the criticism by foreign governments and firms over
perceived unfair policies.
In November last year, Alibaba.com (SEHK: 1688) said it planned to boost
investment in the United States to foster the growth of small businesses and
help create 100,000 jobs across the country. Arnold Schwarzenegger wishes they
all could be California jobs. California's governor, the self-described
"salesman-in-chief" of his home state, took a step closer to realising that
aspiration after Hong Kong-listed Alibaba on Saturday committed itself to
investing US$3 million in a programme that will enable 3,000 recent college
graduates from the state to set up their own businesses. "We hope to stimulate
job creation and continue the state's tradition as the cradle of some of the
world's greatest innovations," Schwarzenegger said during the first leg of his
latest trade mission to Asia. The new scheme, the Schwarzenegger Emerging
Entrepreneur Initiative, follows Alibaba's major acquisition of two
California-based e-commerce firms - Auctiva last month and Vendio Services in
June - as part of the mainland firm's US$100 million investment program this
year - Those acquisitions allowed Alibaba, in which financier George Soros is
the third-largest shareholder, to increase its employee base in California to
about 200, from 25. Schwarzenegger's eponymous entrepreneur programme will
provide selected graduates with classroom instruction, Web-based consultation
and free or reduced-cost software tools from Alibaba, to help them manage their
businesses and source relevant products online. This initiative, the details of
which remain under development, will be offered next year through15 state-owned
colleges and universities throughout California. Addressing the audience at
Alibaba's annual AliFest "Netrepreneur Summit" in Hangzhou, Schwarzenegger said
he hoped the 100,000 jobs that the company wants to create would all "come to
California".
Simply-packaged moon cakes receive warm
welcome - Staffers put moon cakes on the shelves in a supermarket in Qingdao,
East China's Shandong Province on Monday. Moon cakes are the typical food of the
Mid-Autumn Festival, which falls on the fifteenth day of the eighth lunar month.
This year moon cakes in bulk with simple packaging are very popular for their
affordable price.
A staffer puts moon cakes in bulk on
the shelves in a supermarket in Qingdao, East China's Shandong province on
Monday.
People buy vegetables in a
market in Hefei, capital of east China's Anhui province, Sept 11, 2010. The
consumer price index (CPI) rose 3.5 percent year-on-year in August, 0.6 percent
higher than in July, the National Bureau of Statistics announced Saturday.
World Bank President Robert Zoellick
attends a welcome ceremony at Xianahui village in southwestern Guizhou province
on Sunday. The ethnic Bouyei village has benefited from a program financed by
World Bank loans to preserve its unique culture. Domestic consumption 'key to
solve trade rows' 
ICAC puts evidence on display - Among
items on display at this year's ICAC open day is this lunchbox, containing
evidence from an insurance scam. It is merely a simple lunchbox, but when ICAC
investigators found it several years ago, it held 132 Hong Kong identity cards -
key evidence that helped the graft-busters break up a medical insurance scam.
The lunchbox is one of many exhibits that will be on display to the public
during open days at the Independent Commission Against Corruption in North
Point, on October 23 and 24. Visitors will get a 90-minute guided tour of the
ICAC's facilities and exhibits, including interrogation rooms, weapons and
evidence uncovered during investigations. The red lunch box with the stolen ID
cards will be on display, as well. ICAC officers found it in the criminals' car
during their investigations. They uncovered a scam in which three mainlanders
had themselves surgically blinded in one eye in order to claim HK$18 million in
bogus insurance claims, using ID cards taken from Hongkongers. Other evidence in
the case will also be on display during the open days, including medical reports
and insurance claims. Other exhibits will reflect some of the major cases the
ICAC has dealt with over its its 36-year history. Visitors will be shown the
identification-parade suite equipped with a one-way mirror, video interview
rooms where suspects are questioned at a triangular table, and the exhibition
hall itself. Visitors will be allowed to touch firearms used by anti-graft
investigators. Those who wish to attend should apply before September 27 for
tickets, which will be allotted through a random draw. This is a new
arrangement: in the past, visitors were given tickets on a first-come,
first-served basis on the open day. "Visitors will not need to queue up outside
the ICAC headquarters several hours before the tour starts under the new
arrangement," Bernadette Cook Liu Sau-fong, a regional officer with the ICAC's
Community Relations Department, said. Last year, some visitors stood in the
queue for six hours. The ICAC is expected to give out 3,000 tickets for the open
day. Successful applicants may take four tickets. Starting from today,
application forms for tickets can be downloaded from the ICAC website or
obtained either from the ICAC headquarters and its seven regional offices.
Arnold Schwarzenegger in
China shopping for rail for California - California governor Arnold
Schwarzenegger checks out a high-speed train at Hongqiao Railway Station in
Shanghai yesterday. Schwarzenegger said he was hoping for some "creative
financing" from Asia to help get California's proposed high-speed system up and
running. California governor seeks expertise on high-speed lines and funding in
Asia. California governor Arnold Schwarzenegger is window-shopping for
high-speed trains on the mainland while peddling Californian exports and
tourism. With California - latest budget US$19 billion - in the red,
Schwarzenegger says he is hoping for some "creative financing" from Asia to help
lower costs and get California's proposed high-speed rail lines up and running.
Industry experts say cash-rich China may be best placed to help with funding,
and less risk averse than other countries whose banks are still recovering from
the financial crisis. That could prove a key advantage as China's high-speed
railway builders bid to build a system in California against better established
rivals in Asia and Europe. "That is something very attractive about the Chinese
which the Europeans will find very difficult to compete with," said Michael
Clausecker, the director general of Unife, the Association of the European Rail
Industry. "Even in America, finance is a scarce resource. Rail investments need
a lot of investment up front." China has invested huge prestige and tens of
billions of dollars in its high-speed rail industry - building on mostly
European know-how acquired in joint ventures with Siemens, Alstom and to a
lesser extent Japan's "Shinkansen" bullet train operators. It is gearing up to
fight for a chunk of what Unife estimates to be a €122 billion (HK$1.2 trillion)
a year global market for railways. "Today, what I have seen is very, very
impressive," Schwarzenegger said in Shanghai yesterday. "We hope China is part
of the bidding process, along with other countries around the world, so that we
can build high-speed rail as inexpensively as possible."
Guoman Hotels Group focuses on China
in plans for 50 new hotels - Guoman's Sanjay Nijhawan says the British group
will target the mainland's four-star segment. Guoman Hotels Group plans 40 to 50
new hotel openings in Asia over the next five years, with the majority in China,
as it takes an aggressive step to tap the high-growth market, chief operating
officer Sanjay Nijhawan said. The British hotel group that operates the
luxurious Guoman-branded hotels in London's heritage locations such as Charing
Cross said it would target the less competitive four-star segment on the
mainland as tourism booms. "We believe China's four-star hotel sector has less
competition," Nijhawan said, adding that opportunities beckoned in second-tier
cities as domestic demand soared. The number of new openings in Asia by Guoman -
which also owns the four-star Thistle brand - will surpass the 41 hotels the
company operates in Britain. Its first hotel outside Britain, Guoman Hotel
Shanghai, opened recently. The rising affluence of mainlanders has been a huge
spur to tourism in the past decade. According to Jones Lang LaSalle, visitor
arrivals on the mainland grew 10 per cent last year to reach 2.03 billion. Of
the 2.03 billion tourists, the mainland received 126 million foreign visitors,
down 2.7 per cent from a year earlier. "The key focus for any hotel chain in
China has to be domestic," Nijhawan said. "For us, we have to utilise the
booming domestic tourism." He noted that Asia - particularly China and India -
as well as the Middle East will be the only markets that offer tremendous
opportunities for established international hotel groups in the next 10 to 15
years. "China's economic growth will be enough to keep domestic tourism
growing," he said. The British hotel group is following in the footsteps of
Marriott International, the largest hotel chain in the United States, which
announced in May it would nearly double the number of hotels on the mainland to
90 by 2015. Marriott also plans to bring a moderately priced brand to the
mainland. Hotels were among the top beneficiaries of the 2008 Beijing Olympics
and the ongoing Shanghai World Expo, and there were growing concerns that the
industry's growth would slow in their absence. Lily Ng, a senior vice-president
of Jones Lang LaSalle Hotels, said it was natural for visitor arrivals to
decline after events, but she said the long-term outlook for the mainland's
hotel sector would remain bullish. "Given the strength of China's economy, amid
some short-term adjustments, its growth trajectory is likely to continue," Ng
said. "The bigger function of the events is to promote the country and put it at
the forefront of the global community, which has a further reaching and lasting
impact on China's tourism and economy beyond the events." Nijhawan believed the
rapid growth in domestic tourism would be more than adequate to offset the
slowdown in foreign visitor arrivals. "We are quite excited about the
opportunities in China," he said. "We have a very aggressive strategy because
opportunities are tremendous." Guoman will also open another namesake brand
hotel in Beijing next year. According to Jones Lang LaSalle, the new supply of
internationally branded hotel rooms in Beijing will rise 10 per cent to 29,521
rooms this year. In Shanghai, the number of rooms is expected to jump 34.3 per
cent to 32,045.
A US regional naval chief has warned of growing strategic uncertainty in the
western Pacific, saying the "winds of change are blowing hard" - a thinly veiled
reference to Beijing's rising military power. Vice-Admiral John Bird (pictured),
the departing commander of the Japanese-based US 7th Fleet, said that a peaceful
status quo was "far from guaranteed" amid growing high-stakes challenges. "It is
not all clear sailing ahead ...We find ourselves today at a pivotal juncture in
the western Pacific," he said in a strongly worded speech on Friday at the
fleet's base in Yokosuka to hand command over to Vice-Admiral Scott Van Buskirk
after more than two years heading the core projection of US power in Asia. "In
this remarkable period of change and in an environment of anti-access strategies
and excess territorial claims, America's stabilising influence and respect for
international law will be critical," Bird said. "Our allies will depend on the
US to be fully present in the Asia-Pacific region as a promoter of stability and
to ensure the free flow of commerce for all." Bird did not mention China by
name, but his references to access and territory will not be lost in Beijing or
in an East Asia increasingly wary of Beijing's growing assertiveness. US defence
officials have expressed repeated concerns at Beijing's increasingly strident
objections to long-standing US military operations in East Asia, such as
exercises with South Korea in the Yellow Sea as well as its development of
ballistic missiles with manoeuvrable warheads designed to strike aircraft
carriers - the traditional symbol of US military authority in the region. His
comments provide a rare window into the thinking of US military operational
chiefs just as the first signs emerge of a thaw in Beijing's nine-month freeze
on military relations with Washington.
Race on by miners as rare earths get
rarer - Canadian prospectors face cost hurdles in a market dominated by Chinese
players. High processing costs mean rare earth deposits do not have a guaranteed
viability. Rare earth elements are essential components in everything from
iPhones to wind turbines, yet the average investor has never heard of them. That
may soon change. The buzz around this obscure group of 17 metals is growing as
green technology fuels demand at the same time as supplies are shrinking. China,
which produces over 90 per cent of the world's supply, is chopping exports by
almost half this year. A looming global shortage has pushed numerous Canadian
miners into the spotlight, all of them eager to chase down the Holy Grail of a
massive rare earth deposit. But finding a viable rare earth mine outside of
China may be difficult. Processing costs are huge, making it difficult to
compete with Chinese producers even as promising new deposits are identified.
"We're going to run into shortages of rare earths within the next year or two,"
said Byron Capital Market analyst Jon Hykawy, adding that the heavy rare earths,
used in electric vehicles, will likely run out first. "But simply identifying a
potential mine is not a reason to celebrate victory," he said. "I would say it
is very tough to make a go of producing rare earths without at least separation
and purification as a part of the model." Analysts say it will take a deposit
with the right mix of rare earth elements to make a non-Chinese mine into a
profitable operation.
Hong Kong Education secretary salutes
teachers as he presided over the 15th annual celebration of Teachers' Day. About
1,300 teachers are commended by Education Secretary Michael Suen. The education
secretary appealed to school leaders to offer support to their teachers as he
presided over the 15th annual celebration of Teachers' Day. Michael Suen Ming-yeung
led a charm offensive, shaking the hands of hundreds of teachers commended by
their schools for the Salute to Teachers 2010. But he refused to rule out
secondary school closures over the coming five years, with Form One student
numbers projected to fall by 21.9 per cent from 69,000 this year to 53,900 in
the 2016-17 school year. "I can't promise that there will be no shocks," Suen
said yesterday. "Our target is to stabilise the situation as far as possible and
to help schools and teachers to achieve sustainable development without
adversely affecting the quality of teaching. "I hope that all in the education
sector can work hand in hand to actively participate in the discussions and
explore measures which will minimise the shock." Suen called on school
managements to create room for teachers and offer them support and establish a
people-based management culture with love and care. "To reach the goals of
reform in the classrooms we are relying on the efforts and professional spirit
of teachers," he said. Some 1,300 teachers from kindergartens and primary and
secondary schools were presented with certificates during the event at the Hong
Kong International Trade and Exhibition Centre in Kowloon Bay. The teachers, who
had been nominated by their schools, included 40 who were being commended for
the fifth year in a row. Leung Yu-ming, who teaches English and design and
technology at Hong Kong Chinese Women's Club Fung Yiu King Memorial Secondary
School in Ma On Shan, said he was nominated by his students. "It's a great
honour," he said. "The greatest difficulty I face as a teacher is the high
workload and the relatively low status of teachers. The workload has increased a
lot over recent years because of the new senior secondary curriculum, external
assessment of schools, extra paperwork and greater demands from parents."
Anger over delays on mainland flights -
Dragonair bears brunt of long waits on tarmac - Hong Kong flights in and out of
the mainland are facing increasing delays, and passenger anger at being kept
waiting for hours aboard grounded planes is rising. Because so many of its
flights are linked to the mainland, Dragonair is bearing the brunt of the
problem - which is caused by growing air traffic and restrictions on air space
because of military flights, VIP slot allocations and weather alerts. Flights to
and from mainland airports have been delayed for up to eight hours. About four
out of every 10 Dragonair flights are taking off late and the average delay for
flights by all airlines has climbed to 48 minutes. Most are made to wait on the
tarmac with passengers on board before being given clearance for take-off. The
Hong Kong Civil Aviation Department confirmed that delays caused by "flow
control" issues are on the rise. The number of flights affected between April
and June was more than four times the number in the corresponding period last
year. It has raised the matter with mainland aviation authorities.
It has already found itself in hot water
with environmentalists for selling bluefin tuna. Last week, City'super looked as
if it was wading into still worse trouble by selling dolphin meat. Packets of a
HK$27 Japanese product with an English label saying its ingredients included
"common dolphin" were spotted by the head of an environmental concern group in
one of City'super's Hong Kong outlets. Gary Stokes - who organised a Facebook
campaign in March that saw City'super remove bluefin tuna from its fridges - has
sent a sample of the Matsunoshita Kodawari Deep Fried Koban Fish Cakes for DNA
testing at a Hong Kong laboratory. However, City'super insisted the dolphin
label was simply a case of ingredients being lost in translation when the
sticker was put on the product before it was sent from Japan. Spokeswoman Winnie
Mak said the ingredient was in fact dolphin-fish, or mahi mahi or dorado, a
tropical fish that is no relation to the dolphin. "We have confirmed the
ingredient is not dolphin," she said. To avoid controversy, all of the products
were removed from the shelves of the four City'super outlets in Harbour City,
ifc mall, Times Square and the New Town Plaza in Sha Tin last week and
relabelled Mahi Mahi. Stokes, who heads the Oceanic Love environmental campaign
group, said he would go ahead with the DNA testing to make sure the ingredient
was what City'super said. "I have been in touch with the Centre for Food safety
and they are looking into the matter and said they'd get back to me in a few
days," he said. "If it is just a bad translation it should have been picked up."
More than 150 people signed up for a Facebook group in March threatening to
boycott City'super for selling critically endangered bluefin tuna. Sales were
suspended. Despite the apparent success of the campaign, bluefin tuna is not
subject to any trade ban and was openly displayed by merchants at last week's
Asian Seafood Expo at the Convention and Exhibition Centre.
If you've got a spare HK$116 million
lying around, this not-so-small sparkler could be yours. The two-stone ring with
a rare triangular blue diamond on a gold band of baguette-cut diamonds is
expected to sell for at least US$15 million when it is offered at auction at
Christie's in New York next month. At 10.95 carats, it is the largest
triangular-shaped fancy vivid blue diamond ever to come to auction. It is paired
with a 9.87-carat white diamond cut in the same shape. The ring will be
officially unveiled at Christie's Geneva gallery on Tuesday, with stops later in
Hong Kong and London before returning to New York.
California Governor Arnold
Schwarzenegger plugs Californian exports at a supermarket in Hangzhou, East
China’s Zhejiang province, Sept 11, 2010. Schwarzenegger spent Saturday, the
first day of his weeklong trade mission of nearly 100 business leaders,
hobnobbing in Hangzhou with Jack Ma, founder of Internet trading behemoth
Alibaba.com, and other Chinese entrepreneurs. Schwarzenegger also peddled
Californian exports and tourism during his stay in Hangzhou.
Chinese army to attend Mexico's bicentennial - Members of the guard of honour of
Chinese People's Liberation Army (PLA) take part in a rehearsal for a parade as
part of bicentennial celebrations for Mexico's independence in Mexico City
September 11, 2010.This is the first time Chinese PLA hornor guard go abroad to
attend these activities. 
A child cries as he receives a measles
vaccination in Hefei, Anhui province, at the start of a mainland campaign to
give the jab to nearly 100 million children this month.
Billions for Yangtze canals to take
pressure off roads - The centuries-old canal network in the Yangtze River Delta
will get a multibillion-yuan injection to allow goods to be moved more
efficiently around the ports of Shanghai and Ningbo. Tom Lau Ko-yuen, managing
director of port-operator PYI Corp, said the government aimed to use the canals
to reduce worsening congestion on roads into the world's two busiest ports by
cargo tonnage. The government planned to spend tens of billions of yuan on the
project over 10 to 15 years, Lau said. Part of the plan involved creating eight
new feeder ports in the delta. Last year, cargo tonnage along the Yangtze River
- including Shanghai and Ningbo - accounted for 58 per cent of the country's
cargo throughput of 6.9 billion tonnes and 36 per cent of the country's foreign
trade of US$2.2 trillion, according to PYI. The Hong Kong-listed port and
infrastructure firm forecasts tonnage along the Yangtze River, excluding
Shanghai and Ningbo, will rise 9.7 per cent to 1.24 billion tonnes this year.
The delta's maze of canals - which have been compared to those of Venice and the
Netherlands in terms of their complexity - is expected to serve a vital role in
boosting trade. At present, the canals are narrow and mostly used to transport
low-value cargo such as sand, cement and stones. In partnership with local
governments, the Ministry of Transport plans to deepen them to 12.5 metres and
lift their bridges so bigger ships can pass, Lau said. By doing this the
ministry hopes to shift more cargo, including containers, from roads serving the
ports to waterways. Using the canals would be at least 25 per cent cheaper, Lau
said. "The congestion caused by container trucks into Shanghai is worse than
Hong Kong's Kwai Chung port," he said. "It is much more beneficial to move cargo
through the water." To improve transport to Shanghai and Ningbo, the ministry
plans to create eight feeder ports in Suzhou, Wuxi, Changzhou, Jinghua, Shaoxing,
Hangzhou, Jiaxing and Huzhou. These feeder ports will transport cargo to Ningbo
and Shanghai through the canals and rivers in the delta. With the completion of
the Grand Canal during the Sui dynasty (AD589-617), Suzhou became a thriving
commercial district as items such as silk were transported along the bustling
waterways. Each feeder port would cost an estimated 300 million yuan (HK$343
million) and provide a planned annual container capacity of 300,000 20-foot
equivalent units (teu), Lau said. So far, Jiaxing is the only completed feeder
port and is undergoing trial operations. PYI holds 85 per cent of the Jiaxing
port, which has a registered capital of 128.8 million yuan.
Fishy cargo turns out to be smuggled ivory - The HK$10.8 million haul of ivory
at customs' Tsing Yi base yesterday. The conservation department said there was
no indication of a large demand for ivory in the city. Suspicions over a
consignment of pungent dried anchovies led customs officers to sniff out a much
larger haul - the year's biggest seizure of illegal ivory in the city. The
HK$10.8 million consignment of tusks smuggled from Africa was found concealed
among cases of anchovies in two containers that arrived in Hong Kong on Sunday.
Albert Chan Chi-hung, head of customs' ports and maritime command, said it was
the first time anchovies had been found disguising contraband. "Smugglers might
think customs officers would avoid searching dried anchovies because of their
unpleasant smell," Chan said. "But they don't know that we are responsible
officers." The third such seizure this year, the ivory is believed to have been
destined for the mainland. The shipping documents indicated the anchovies were
from Malaysia but investigation showed the containers had come from Tanzania.
"Our suspicions were raised because it was rare for dried anchovies to be
shipped to Hong Kong from Africa. There's no point in shipping dried anchovies
all the way from there to Hong Kong," Chan said. The shipping charge would be
more than the value of the dried fish. The two containers were opened for
inspection at the Customs and Excise Department's Tsing Yi plant on Thursday
when two men aged 46 and 48 came to pick up the consignment. The men, one of
them a businessman, were arrested after officers found 87 packages containing
tusks among the 277 packages in the containers. The haul contained 384 tusks of
different sizes and weighed more than 1.5 tons. Officers said the consignment
was worth about HK$10.85 million and was the biggest seizure of its kind this
year. Investigations showed Hong Kong was not its final destination. After being
questioned overnight, the two suspects were released on bail yesterday. Customs
officers confiscated a tonne of ivory tusks worth HK$2 million on January 7 and
seized another 5.8kg of ivory products worth HK$11,760 on February 8.
Agriculture, Fisheries and Conservation Department figures show 755kg of ivory
was seized in 2009 and 2.6 tons in 2008. A haul of 3.9 tonnes in 2006 was the
biggest since a global ban on the trade was introduced in 1989. Chan said there
was no evidence Hong Kong was used as a transport centre for ivory smuggling,
but customs officers had stepped up inspections of imported cargos, especially
those from Africa, to crack down on the illegal trade. He said ivory was usually
smuggled into the mainland and other countries in Asia, such as Japan and
Vietnam. The Agriculture, Fisheries and Conservation Department said there was
no indication that there was a large demand for ivory in the city. It said ivory
was used in sculptures. An endangered species protection officer with the
department, Alfred Wong Kwong-chiu, said the seized ivory would be donated to
local and overseas governments and non-governmental organisations for education,
scientific research and enforcement identification. Anyone found importing,
exporting or in possession of a protected species for commercial purposes faces
a maximum penalty of a HK$5 million fine and two years' jail. Under the Import
and Export Ordinance, any person found importing undeclared cargo is liable to a
HK$2 million fine and seven years' imprisonment.
Street performer cleared of blocking
public place - So Chun-chau, or 'Mr Happy', drew a crowd of up to 80 onlookers
while juggling on Great George Street in Causeway Bay. Causeway Bay may not be
London's Covent Garden, but the public is expected to accept the level of
inconvenience caused by a street performer juggling in a pedestrian zone, a
magistrate said. Andrew So Chun-chau, 50, known as "Mr Funny", was acquitted at
Eastern Court yesterday for obstructing a public place. On April 6, he attracted
50 to 80 onlookers while juggling on Great George Street. Deputy special
magistrate Lau Wai-chung said So's actions and his interaction with the
onlookers constituted obstruction in a public place, but it was reasonable to
expect the public to tolerate it, and it was therefore legal. So has performed
acrobatics and mime shows every Friday to Sunday in pedestrian zones in Causeway
Bay and Mong Kok. The pedestrian zone is not just a pedestrian channel to walk
through, Lau said, it is a lively area where civic conversation takes place.
Defence counsel Joseph Lee Jo-ey had submitted that So did not obstruct a public
place because he did not have control over the onlookers. They could come and go
as they wished. But Lau said the defendant's actions drew the crowd around him,
resulting in obstruction. However, the street performer is entitled to
protection by Article 34 of the Basic Law, which guarantees the freedom to
engage in literary and artistic creation, and other cultural activities. "The
court cannot decide whether the defendant's actions constitute artistic
creation, but his performance would fall under `other cultural activities'," Lau
said. Lee had argued that Article 27, on freedom of speech, assembly and
demonstration, and Article 16 of the Bill of Rights on freedom of expression
applicable also offered legal protection to the defendant. But Lau said they
were irrelevant to this case. Among the five prosecution witnesses who gave
evidence during the trial, insurance agent Lung Chun-man said the onlookers
surrounding the performer packed the area to the point that pedestrians could
not get through. Others said it was possible to get through along the sides of
the road or squeeze through the crowd by asking onlookers to give way. So was
juggling balls and diabolo, and inflating balloons for children, Lau said.
Onlookers cheered and clapped when he threw a diabolo more than 10 metres in the
air, took two steps back and caught it. Apart from Lung, who said he was
frightened by the stunt, there was no evidence to suggest that So's tricks
caused fear or endangered the public, Lau said. Lung was the only witness who
was not a police officer and had supplied information to the police on his own
accord. The magistrate held that Lung had exaggerated, and did not accept his
testimony. Outside the court, So said he was relieved by the decision. "My aim
to perform on the street is to bring joy to the public," he said, adding that he
is grateful for the public's tolerance. In 2006, So was charged with loitering
in a public place for performing on Sai Yeung Choi Street in Mong Kok. The
charge was later dropped.
Money no object for a space flight
of fancy - Prospective space tourist Hogan Loh with spacecraft designer Burt
Rutan. It will probably be the most expensive five minutes Hogan Loh will ever
experience - but certainly among the most rewarding. The Hong Kong businessman
always knew his lifelong dream of becoming an astronaut was a long shot, but he
never gave up hope of one day going into space. While he never did become an
astronaut, Loh expects to lift off some time in the not too distant future as a
"space tourist". He is among several Hongkongers who have each booked a
US$200,000 ticket to travel into space as early as 2013. Loh, who runs his own
trading company, has loved flying since he was a teenager and is a past
president of the Hong Kong Aviation Club. He will be among the first batch of
Hongkongers to travel aboard Virgin Galactic's SpaceShipTwo (SS2), co-owned by
the flamboyant British billionaire Richard Branson. The cost includes three days
of pre-flight preparation at the launch base, Spaceport America, in New Mexico.
The space flight will take about 2-1/2 hours. SS2 will reach a height of 110
kilometres above the earth and stay there for four or five minutes in zero
gravity. The "tourists" will float around the cabin, viewing the earth through
huge windows, before SS2 begins its re-entry. "It is not a small amount of money
for a ticket, but this is the only chance for me to go into space. I do not want
to miss it," Loh said. "It is expensive, but you need to consider the cost of
developing such technology." SS2, the brainchild of aerospace engineer Burt
Rutan, was unveiled in December. It is the first commercial spacecraft. Designed
to carry six passengers and two pilots, SS2 is expected to take 100 people into
space during its first year of operation. Test flights began this year, and the
spacecraft is expected to start commercial operation by 2012. Loh and the other
Hongkongers may only be able to lift off in 2013, as more than 300 space
tourists from around the world have already booked a seat. Miramar Travel has
been the sole agent for Virgin Galactic in Hong Kong since May last year.
Chinese Premier calls on teachers
to dedicate selves to rural education - Chinese Premier Wen Jiabao sits among
students during a reading class at a middle school in Xinglong County, north
China's Hebei Province on Sept. 10, 2010. Wen Jiabao called on teachers to
dedicate themselves to rural education, improving teaching standards and
contributing to the modernization of the country's education program during a
visit to a school on Friday, the nation's Teachers' Day.
A record number of tourists from the
Chinese mainland are expected to travel during the holiday peak season that
starts on Sept 22, with outbound trips being the top choice for many. The China
Tourism Academy forecast that 210 million tourists will travel domestically in
the upcoming Mid-Autumn Festival and National Day holidays. The academy did not
forecast how many mainland tourists will visit Hong Kong, Taiwan and Macao as
well as foreign destinations, but industry insiders said that long-distance
foreign destinations in the United States and Europe will also benefit from the
long holiday. This year, 1.3 billion Chinese will be able to enjoy two public
holiday periods as long as 10 days. The Mid-Autumn Festival holiday falls on
Sept 22 to 24, while the seven-day National Day holiday starts on Oct 1. Between
them, there are six working days. "If people can get approval to take the week
off between the two holidays, they can have a 16-day holiday, which is ideal for
long-distance outbound tours," said Dai Bin, head of the academy. Travel
agencies said sales of packages for long-distance outbound destinations have
particularly benefited from the two holidays. "The long holiday allows more
tourists to participate in our outbound tours to faraway destinations, such as
Canada, South Africa and even Chile and Tahiti," said Shi Xiaojuan, assistant
general manager of the China Travel Service Beijing office. Packages of trips to
the US, Canada and Japan are all very popular. These were fully booked by as
early as the end of August, she said. The long holiday also benefited domestic
destinations.
Geely-Volvo deal a win-win - Eddie Chen (second right), vice-president and chief
representative for Greater China, Invest Sweden, talks with his clients in the
exhibition hall of the China International Fair for Investment and Trade in
Xiamen.
Year-high CPI brings fresh fears -
Mainland inflation hit 3.7 percent in August - the highest so far this year -
and is expected to remain high in the next one or two months, economists
estimate. Concerns over inflation risk re-emerged after foreign news agencies
reported that the National Bureau of Statistics will release macroeconomic data
for August tomorrow, instead of Monday as originally scheduled. But economists
said an interest rate increase in the near term is unlikely. The consumer price
index will remain above 3.5 percent in September and October, a UBS report said.
"[CPI may rise as] ... bad weather and international market factors push up food
prices, especially vegetables and meat, while the base effect also plays a
role," said UBS Securities China economist Harrison Hu Zhipeng. Inflation
expectations may also rise if credit expansion leads to higher prices for
services and homes, and as wages go up, said UBS Securities head of China
economic research Wang Tao. Wang and Hu predict that the CPI will ease by the
end of the year, and that full-year inflation will be 3 percent. "We think the
government will not raise rates before it has a better understanding of
third-quarter GDP growth and the outlook for the next few months," Wang added.
HSBC Global Asset Management investment director Mandy Chan expects inflation to
peak in the third quarter, with one rate hike of 27 basis points at the most.
"The mainland market will improve, as the central government's key tone on macro
policies in the second half will not be as severe as previously, while most
enterprises posted good earnings for the first half," she said. Chan added that
China is entering a new phase in its shift from an export- and investment-led
economy to one driven by domestic consumption. Credit Suisse analyst Vincent
Chan said China's export growth will probably slow to only around 10 percent per
annum, while investment growth will ease to around 15 to 20 percent annually in
the next five years.
Growth in mainland’s property prices
slowed for the fourth straight month in August, data showed on Friday,
suggesting that government efforts to prevent a bubble are paying off.
US defence secretary may visit
Beijing - US Defence Secretary Robert Gates could travel to China this year,
following signs from Beijing of a willingness to resume military ties suspended
over an arms sale to Taiwan.
China will launch its second lunar exploration probe by the end of this year,
boosting the country’s effort to rise as a space power eventually capable of
landing on the moon, official media said on Friday. A senior engineer overseeing
China’s lunar exploration program, Wu Weiren, said work on the Chang’e-2 lunar
orbiter was “proceeding smoothly”, the People’s Daily reported. “It is now at
the stage of pre-launch testing and preparations, and the plan is to carry out a
trial flight mission by the end of the year,” the paper cited Wu as saying. The
Chang’e is named after a mythical Chinese goddess who flew to the moon. A
successful Chang’e-2 mission would mark another advance in China’s plan to
establish itself as a space power in the same league as the United States and
Russia. In 2003, China became only the third country, after the United States
and Russia, to send a man into space aboard its own rocket. In October 2005, it
sent two men into orbit, and in 2008 it staged its first “space walk”, when an
astronaut floated outside a vehicle orbiting the Earth. Chinese space officials
said they are considering a manned landing on the moon by 2025-2030, state media
reported last year. China launched its first moon orbiter, the Chang’e-1, in
October 2007, accompanied by a blaze of patriotic propaganda celebrating the
country’s technological prowess. The project engineer Wu said the Chang’e-2
would fly as close as 15 kilometres above the moon, testing skills and
technology intended to pave the way for an unmanned landing, which previous
Chinese reports have said would happen in 2013. China is jostling with
neighbours Japan and India for a bigger presence in outer space but its plans
have faced international scrutiny. Fears of a space arms race with the United
States and other powers have mounted since China blew up one of its own weather
satellites with a ground-based missile in January 2007.
A major US trade union on Thursday
said the central government was providing various types of subsidies to mainland
firms making solar panels and wind turbines in violation of World Trade
Organisation rules prohibiting such subsidies. US union accuses Beijing of
rigging green energy trade - A major US trade union on Thursday accused Beijing
of handing out hundreds of billions of dollars in illegal subsidies in a bid to
dominate the green energy sector. The United Steelworkers union petitioned the
top US trade official to investigate practices it claims contravene World Trade
Organisation rules and cost US jobs. “Right now, China is taking every possible
step – many of them illegal under international trade laws – to ensure that it
will control that sector,” said union president Leo Gerard. “America can’t
afford to cede more of its manufacturing base to China.” The union – one of the
nation’s largest – accused the mainland of blocking access to materials used in
green technologies, illegally linking subsidies to export sales, curbing imports
and demanding foreign investors hand over technology secrets. It also accused
the mainland of providing more than US$216 billion worth of subsidies to green
technology makers “more than twice as much as the US spent in the sector and
nearly half of the total ‘green’ stimulus spent worldwide”. The administration
of President Barack Obama has 45 days to respond to the claims, which received
immediate backing from some of his allies in Congress. “This is a clear-cut
violation, and we hope the administration will take up this complaint
immediately. There is no question that China is ignoring trade rules so it can
cheat its way to first place in the clean-energy manufacturing race,” said New
York Senator Charles Schumer, a Democrat. “This is just the latest example of
China’s unfair trade practices, but it is one of the most damaging for US
manufacturers. We will never meet our goal of increasing exports if we let China
get away with this.”
China's young Shenzhen programmer that can turn an iPod Touch into a phone will
arrive in Apple's homeland soon - Software writer Pan Yong, 22, holds the Apple
Peel, which can turn an iPod Touch into a mobile phone, a US-based technology
company says. Go Solar USA said in an online posting on Wednesday that it had
signed a funding option agreement last week with Shenzhen-based Yosion - a
two-brother team from Henan province - to introduce the device to US customers.
In an e-mail sent to Mobile magazine, a US online publication that covers mobile
technology, Go Solar's headquarters in New Orleans, Louisiana, said that the
device had been submitted to the US Federal Communications Commission for
approval. "We are so pleased to have reached this agreement with Yosion," Go
Solar president Tyson Rohde said. "We see the Apple Peel 520 as a stunning
breakthrough in mobile technology, and we're proud to work with Yosion to
develop this product for the US market." The Apple Peel 520 encases Apple's
powerful iPod Touch media player and gives it voice calling and text messaging
functions by using a built-in SIM card slot and battery. Users need to install
software written by 22-year-old Pan Yong that breaks into the iPod Touch's
software to allow use of non-Apple applications, an action known as jailbreaking.
Pan Lei, Pan Yong's elder brother and Yosion's spokesman, confirmed yesterday
that it was discussing with Go Solar the possibility of bringing the gadget to
the US market. "But no final deal has been made and the agreement is optional,"
Pan Lei said. "It will be fantastic if Go Solar can help us solve IPR
[intellectual property rights] problems in the US and we would then like to
co-operate with them, if their conditions are not too tough." Pan Lei said that
after they uploaded video of the device online in July, at least 30 sales
companies - a third were from overseas - had contacted them asking to be their
agents. He said they were also seeking help from powerful domestic companies.
"We are working on applying for legal licences [for the device] from mainland
telecommunications regulators," he said. "We still want to enter the market,
both in China and the US, via legal methods." It remains to be seen whether the
Apple Peel 520, which will cost just 388 yuan (HK$443), can gain Federal
Communications Commission approval and what its impact on the US mobile market
will be if it does. Apple has not commented on the issue and could not be
contacted yesterday. Go Solar says that at the right price, around US$60, the
device could become the world's hottest iPod accessory. According to its
figures, 275 million iPod Touches have already been sold. US tech website
Zoknows gaming.com says Yosion will develop a new version of the Apple Peel that
will not require jail breaking.
Jiangsu Int'l Costume Fair kicks off -
Models present fashion creations designed by Hong Kong stylist during the 12th
Jiangsu International Costume Fair in Nanjing, capital of east China's Jiangsu
Province, Sept. 10, 2010. The costume fair, with the theme of "brand, fashion
and industry innovation", kicked off at Nanjing International Exposition Center
on Friday. 
US: Aircraft carrier to join
Yellow Sea drill - United States Navy ship, USS George Washington, lowers the
anchor as it docks in the waters of Manila Bay September 4, 2010. US Defense
Department spokesman Geoff Morrell said on Thursday aircraft carrier USS George
Washington will be sent to waters off the Korean Peninsula to participate in war
games with the Republic of Korea (ROK). "The USS George Washington will indeed
exercise in the Yellow Sea," Geoff Morrell said. China has voiced objection to
any military drills off its coast. The drills were postponed from its original
schedule on September 5-9. However, Morrell didn't give a specific timetable,
stressing that it's not an affront to China, but rather a warning to Pyongyang.
"We have said that will take place. I don't think we have determined a date yet,
but rest assured, the George Washington will operate in the Yellow Sea, as it
does in other international waters," he said. Following the sinking in March of
a ROK warship, Washington and Seoul announced new sanctions against Pyongyang
and a series of joint military exercises in the waters off the coast of the
Korean Peninsula. The hardline stance incurred fierce response from Pyongyang,
which was blamed for the incident by Washington and Seoul. Pyongyang had
threatened to mount a nuclear deterrence to counter the muscle flexing of the US
and ROK.
Oasis ruined by urn trade,
Buddhists say - Monks and nuns demand action to stop developer selling niches at
Lantau monastery - The Venerable Wing Sing says the Yin Hing Monastery is an
age-old religious retreat that should not be used for commercial gain. Monks and
nuns living in a cluster of Buddhist monasteries in an idyllic part of Lantau
have combined in a rare public protest against a commercial columbarium operator
they say is intruding into and destroying the "spiritual oasis" of Hong Kong.
About 30 of them left their haven at Luk Wu yesterday for a press conference to
air their grievances over the urn storage development at the Yin Hing Monastery.
Led by the Venerable Wing Sing, vice-president of the Hong Kong Buddhist
Association, they called on the government to enforce the law, noting that the
Lands Department had already said such use was a breach of the land lease. "It
is unacceptable that [the business] is changing the age-old monasteries and the
sacred place because of economic reasons. I hope everyone can say some fair
words for us," said the Venerable Wing Sing, who is in his 80s and was in a
wheelchair. Luk Wu, a basin in the middle of Lantau with 30 abbeys - the oldest
set up 130 years ago - has been the temporary home of respected monks from the
mainland and other countries. Four buildings have been given grade two or three
historic status. The monasteries are open to members of the public seeking a
spiritual retreat. But the monks and nuns say the atmosphere has been destroyed
since a company called Hong Kong Yin Hing Monastery bought the site in 2007 and
started selling urns, bringing visitors in buses every day. The group said they
had no idea why their neighbour sold the monastery site, although they heard
that the former landlord could not afford to maintain the slopes. They said
about 1,000 out of 5,000 niches had been sold and they feared the developer
might want to buy their sites for the same purpose as they had been subjected to
harassment over the past four years. The company did not respond to inquiries
yesterday. But a staff member told a reporter posing as a buyer that the niches
cost from HK$35,000 to HK$209,000. The Lands Department said it was in dispute
with the company after issuing it a letter telling it not to use the land for a
columbarium, but it could not comment further because of possible court action.
"My own place has been broken into five times," a nun, Hin Hing, said. "I got
calls at midnight and someone on the phone once said, `A shadow passed outside
your house just now, are you OK, Master?' I was so upset." Although the other
monasteries also sell urn spaces the group said they were not protesting about
competition, saying they just kept a handful of spaces to sell to believers for
a few hundred dollars each. "What we have is a very limited service for
believers. We are not running a business," the Venerable Kiu Chiu said. In July
the group gathered about 17,000 signatures from Buddhists to support their
cause. The Yin Hing Monastery land lease says the 30,600 sq ft site should be
used for a Buddhist temple with ancillary accommodation for priests, candidates
for the priesthood, or devout lay Buddhists on religious retreat. The Food and
Health Bureau said a visit in July found some niches were already in use and
illegal structures had been erected on the site. Police declined to give details
of any investigation or say whether anyone had been arrested.
HK model arrested at Nevada
festival - Rosemary Vandenbroucke, 28, is facing a drug charge and driving
offences after being arrested at the Burning Man festival in Reno, Nevada on
Sunday. A Hong Kong fashion model was arrested on drug charges at the Burning
Man festival in Nevada and crashed her rented motor home into Reno's landmark
arch the next day, authorities said on Wednesday. Rosemary Vandenbroucke, 28,
was arrested about 9.30am on Sunday (local time) with a small amount of ecstasy
after an officer questioned her about a substance she was seen passing to
another person at the Labour Day weekend festival in the Black Rock desert,
Pershing County Sheriff Ron Skinner said. Vandenbroucke was charged with
possession of a controlled substance and released on US$15,000 (HK$116,573) bail
pending an October 19 court appearance. A conviction could result in up to four
years’ probation. Arrest records show Vandenbroucke produced a French passport
and provided a Hong Kong address. It was not immediately clear on Wednesday if
she was still in the United States. Arrest records in Lovelock and Reno do not
say whether she was represented by an attorney. Skinner said the arrest was one
of about 30 made during the annual event that officials say drew more than
50,000 people to the desert about 110 miles north of Reno. About 30 other people
were issued summonses for lesser offences, the sheriff said. Vandenbroucke also
faces three charges stemming from the crash of the 40-foot rented motor home
into downtown Reno’s “Biggest Little City in the World” arch about 3pm on
Monday, city police sergeant Jim Stegmaier said.
Rare Large Dragon stamps to be auctioned in Hong Kong.
Bank of China has obtained approval from the China Banking Regulatory Commission
for a 60 billion yuan share placement in Shanghai and Hong Kong, the bank said
on Thursday.
Japan's seizure of fishing boat
'absurd' - A Chinese fishing boat is accompanied by a Japanese coastguard boat
into a port on Ishigaki island, southwestern Japan, on Wednesday. China on
Thursday called the seizure by Japan of a Chinese trawler that collided with two
Japanese coastguard vessels and the arrest of its captain "absurd", warning it
could adversely affect ties. The foreign ministry in Beijing said a “law
enforcement ship” had been deployed to the area of the East China Sea where the
collisions took place, near an island chain claimed by both nations, to protect
Chinese fishermen. The uninhabited islands – known as Senkaku in Japan and
Diaoyu in China – lie between Japan’s Okinawa island and Taiwan. They are
claimed by Tokyo, Beijing and Taipei and are frequently the focus of regional
tensions. “The Japanese side applying domestic law to the Chinese fishing boat
operating in this area is absurd, illegal and invalid, and China will never
accept it,” foreign ministry spokeswoman Jiang Yu told reporters. “If improperly
handled, [the incident] could have a serious impact on the larger interests of
China-Japan relations,” she said.
China head full speed into the
digital age - China invented paper, may be the first country to abandon it. head
full speed into the digital age - In the past three years, the mainland's
digital publication industry - mobile phone publishing, online gaming,
advertising, e-books - grew at an average pace of 55.7 per cent annually. Last
year alone, total revenues for the industry were 79.94 billion yuan (HK$91.31
billion) and exceeded book publishing for the first time, according to figures
released by the General Administration of Press and Publication (Gapp) in July.
With 420 million internet users at the end of June, the digital publishing
market is huge and growing fast on the mainland. New businesses have been
spawned, especially for mobile phones. Meanwhile, rival government departments
are wrestling for control of the digital world.
The newly-appointed Chief Justice Geoffrey
Ma Tao-li on Wednesday said he would do his best to safeguard the rule of law
and uphold Hong Kong's judicial independence. He was speaking at his first press
conference since taking oath last week as Hong Kong’s second chief justice since
the 1997 handover. Ma said it was a great honour to be appointed to the
position. He admitted there were some controversial cases before the courts, but
said he was confident the judiciary could deal with them fairly. “Judges would
deal with different cases according to the law,” Ma said. They would not allow
their judgment to be influenced by ‘political and economic factors’,” he added.
Asked whether Hong Kong might need to ask the central government to interpret
its laws, Ma replied that according to the Basic Law, the National People’s
Congress Standing Committee had the power to interpret laws here. But he
stressed that the standing committee would only exercise this power under
special circumstances. Ma said the Basic Law stipulated that Hong Kong’s
judicial independence would be upheld under the one country, two systems’
principle. Ma had worked in private practice since 1978 until he joined the
Judiciary as a Judge of the Court of First Instance of the High Court in
December 2001. He was appointed Chief Judge of the High Court in July 2003,
where he led the High Court, both judicially and administratively. Ma has
considerable experience in various areas of civil law.
Johnson Electric (SEHK: 0179) has
appointed former Hong Kong Monetary Authority (HKMA) chief executive Joseph Yam
Chi-kwong to its board as an independent non-executive director. Company
secretary Susan Yip Chee-Lan said the appointment would take effect from
September 30. “Mr Yam has not entered into any service contract with the
company. He was appointed for a term of two years subject to retirement and
re-election by shareholders at the next annual general meeting,” Yip said. Since
Yam retired last December, he has taken up a number of positions. These include
becoming the first Hong Kong resident appointed to a senior post at the People’s
Bank of China, and becoming a non-executive director to the China Construction
Bank (SEHK: 0939, announcements, news) Corporation.
Tai Hang site to draw upbeat developers -
Agents expect strong interest in urban plot as market shrugs off cooling
measures - Agents estimate the Tai Hang site, which LaSalle Investment
Management bought for HK$423 million, could fetch up to HK$809 million. Despite
home seekers becoming cautious over the past few weeks, fierce bidding at land
auctions shows developers are expecting the market will maintain its momentum.
Defying slow property sales in the secondary market last month, agents expect a
residential site at 3-11 Warren Street in Tai Hang, owned by LaSalle Investment
Management, to be another target for developers. The investment fund has
appointed law firm Mayer Brown JSM to handle the sale and the tender will close
on October 6. The 6,679-square-foot site could provide a total gross floor area
of 67,398 sq ft. The fund bought the site for HK$423 million or HK$6,276 per sq
ft in March last year. Agents estimated the site to be worth up to HK$809
million or HK$12,000 per sq ft. As there are only a few similar sites on Hong
Kong Island available for sale, property agents said many developers are
interested in the site. "It is located in a prime location and the buildings on
the site have been demolished," said one property agent who spoke on condition
he was not named. "The site can be developed immediately, which is very
attractive to developers." Developers have become more aggressive in land
acquisitions recently as they expect property prices will continue to rise,
particularly real estate in urban areas, another agent said. Home sales at the
major 35 housing estates monitored by property agency Midland Realty dropped
32.6 per cent to 882 last month from 1,309 deals in July. Average prices were
flat. The firm believes the sharp fall in sales was due to the government's
cooling measures on August 13. But the land sales market is heating up after a
luxury site at Ede Road in Kowloon Tong attracted 16 bidders including Kerry
Properties (SEHK: 0683), Chinachem Group, Wing Tai Properties, Wang On Group and
Tai Cheung Holdings last week. Kerry Properties won with an offer of HK$1.285
billion or HK$16,587 per square foot, the highest land price in terms of floor
area in Kowloon. Kerry Properties is part of the Kerry Group, controlling
shareholder of the SCMP Group, which publishes the South China Morning Post (SEHK:
0583). Last month, a residential site in Hung Hom attracted aggressive bidding,
with Cheung Kong (Holdings) (SEHK: 0001) winning the site with the 145th bid.
Despite the market expecting more cooling measures, many developers such as K
Wah International deputy general manager Quinly Wan Tsz-mie remains optimistic
about the outlook. "I don't think the government wants to see a sharp fall in
property prices. They just want prices to stabilise," she said, adding the
company is interested in the Tai Hang site. "The bidding for the site at Ede
Road was fierce as it was in a good location and the size was small. Many
developers are optimistic on the market in urban areas," she said. Victor Lui
Ting, executive director at Sun Hung Kai Real Estate Agency, said he is
cautiously optimistic about the outlook. "The fundamental factors for the
property market remain positive," he said. "Interest rates are low, the Hong
Kong and mainland economies are improving and salaries are rising. These factors
will continue to support the market." He said the slowdown in sales in recent
weeks was to be expected given the new supply. "Many new large-scale projects
such as Festival City in Tai Wai, Hermitage in West Kowloon and Larvotto in Ap
Lei Chau have been released this year," Lui said. He said developers would bid
aggressively for good sites as supply in urban areas was tight. Dennis Au,
executive director of Wing Tai Properties, said land prices have increased at
recent land auctions as demand for housing was strong. "With low interest rates,
strong demand and a positive economic outlook, prices will go up 5 to 10 per
cent by the end of this year," he said. "The government may release more cooling
measures but the impact would not be significant."
Jewellery displayed at Sotheby in
Hong Kong A model displays a diamond ring with an estimated value of 48 - 55
million Hong Kong dollars (6.2 - 7.1 million USD) at Sotheby in south China's
Hong Kong, on Sept. 8, 2010. 
Ties improving, Hu tells White
House team - US Deputy National Security Adviser Thomas Donilon meets President
Hu Jintao, right at the Great Hall of the People in Beijing on Wednesday. China
and the United States said on Wednesday that their sometimes rocky relationship
is sounder after talks in Beijing, with both putting an optimistic face on ties
that have been jolted by economic and security tensions. The friendly mood-music
between two of the world’s biggest economies came during talks between President
Hu Jintao and two White House advisers, Deputy National Security Adviser Tom
Donilon and National Economic Council Director Larry Summers. Throughout this
year, Washington and Beijing have gone through bouts of friction over internet
policy, Tibet, US arms sales to Taiwan, China’s currency and Chinese territorial
claims in the South China Sea. The gaping US trade deficit with China, worth
US$226.9 billion last year, has fuelled trade disputes. President Hu is likely
to visit the United States early next year, and he played down the rifts in
remarks to Donilon and Summers, who arrived in Beijing on Sunday for meetings
with senior economic officials and diplomats. “I’ve heard your discussions have
gone well. I’m sure that this visit will certainly enhance mutual communication
and mutual trust,” Hu told them at the start of the talks, while reporters were
briefly allowed in the meeting room. “Since President Obama assumed office,
China-US relations have on the whole maintained healthy development thanks to
the efforts of both sides,” added Hu. The Obama administration was also looking
to smooth ties with Beijing, Donilon told Hu. “Our discussions have been
productive, detailed, far-reaching – covering the full range of security and
economic issues,” said Donilon, who was seated next to Hu. Neither side has said
what issues are being discussed during the three days of talks ending on
Wednesday, which included a meeting between Summers and Zhou Xiaochuan, the head
of China’s central bank, which steers currency policy. But the two sides have
had plenty to talk about. Washington complains that China keeps its yuan
currency too low against the dollar, giving its manufacturers an unfair
advantage and making Chinese exports cheaper. China unofficially pegged the yuan
to the dollar from mid-2008 to mid-this year, so the currency weakened against
other trade partners as the value of the dollar slid. China ended that de facto
peg on June 19, but has risen only about 0.4 per cent against the dollar since
then. As well, Beijing has complained about US military activities near the
Chinese coast, and in recent months held a succession of naval exercises
accompanied by warnings from the Chinese People’s Liberation Army about
Washington’s intentions. But Hu is looking to visit the United States early next
year, an important but tricky political trophy for the leader as he enters his
final two years as President. Both sides appear keen to keep a lid on tensions
before that visit, as well as G20 and regional summits later this year when
Obama and Hu will also have chances to meet. “China looks positively on the
fresh progress made in China-US relations, and we are willing to work together
with the United States in promoting the advance of healthy and stable China-US
relations,” said Hu.
China to continue seeing large influx of
foreign investment in coming years: commerce minister - Chinese Minister of
Commerce Chen Deming speaks during the ministerial round table of the 2nd World
Investment Forum, which is sponsored by the United Nations Conference on Trade
and Development (UNCTAD), in the coastal city of Xiamen, southeast China's
Fujian Province, Sept. 7, 2010. 
Famed philanthropist Chen Guangbiao
helps to direct traffic in downtown Nanjing, capital of East China’s Jiangsu
province, Sept 7, 2010. Chen took the role of traffic ambassador in Nanjing
recently and advocates road safety in the city. The billionaire has pledged to
donate his entire fortune of more than five billion yuan ($735 million) to
charity after his death in response to Bill Gates and Warren Buffett’s call for
philanthropy. 
China demands Japan free trawler
captain - Japan coastguard personnel disembark the captain of the Chinese
fishing boat that collided with Japanese patrol vessels at a port on Ishigaki
island on Wednesday. Beijing on Wednesday demanded that Tokyo free the captain
of a Chinese fishing trawler who was arrested after his vessel collided with two
Japan coastguard vessels in disputed waters. In a worsening diplomatic row
between the Asian giants, China summoned Japan’s ambassador for a second time
since the incident on Tuesday near a disputed island chain in the East China
Sea, the foreign ministry said. China “demanded that the Japanese side
immediately release the ship and crew members on board and guarantee their
safety”, assistant foreign minister Hu Zhengyue told Japan’s ambassador Uichiro
Niwa, the ministry said. Beijing also sent embassy staff to Japan’s southern
Ishigaki island where officials started questioning the Chinese skipper, and
where his fishing vessel with its 14 crew was expected to arrive later in the
day. Japan, which suspects the captain hit its patrol ships deliberately in the
confrontation, is holding the captain on suspicion of obstructing officers on
duty, which carries a maximum three years’ jail. The captain responded to
interrogation obediently, Kyodo News agency reported, quoting Japanese
coastguard officials. The incident started on Tuesday morning when Japan’s
1,300-ton patrol boat Yonakuni ordered the trawler to cease operations in the
disputed waters.
Super frozen tuna adds to seafood
mix - A seafood image adorns the wall on the opening day of the Asian Seafood
Exposition at the Hong Kong Convention and Exhibition Centre in Wan Chai. Sushi
and sashimi-loving Hong Kong may pride itself in the freshness of its seafood
but super frozen tuna, one of the freshest, is not even on the menu. Billed as
fresher than "fresh" tuna, super frozen tuna could make it to local restaurants
soon if suppliers find enough demand in the city. Fresh tuna is sold in Hong
Kong, where countless supermarkets and restaurants cater to the public's
voracious appetite for the delicacy. Fukuichi Fisheries managing director
Hiroshi Kondo said the Japanese supplier was looking at ways to export super
frozen tuna to Hong Kong but needed to ensure the popular seafood product could
be properly stored at minus 40 degrees Celsius. Most storage facilities in the
city were only capable of temperatures of minus 20 degrees, he said at the
inaugural Asian Seafood Exposition which runs until tomorrow at the Convention
and Exhibition Centre. "One possibility we are thinking about is building our
own freezer here," he said. "Or we could try to convert some freezers from minus
20 degrees to minus 40 degrees." Sri Lankan supplier Global Sea Foods, which
exports super frozen tuna mainly to Europe and the US, is also keen to tap the
local market, according to business development manager Tilarni Amath. Unlike
fresh tuna, super frozen tuna is flash frozen at minus 60 degrees Celsius or
below immediately the tuna is caught, gutted and cleaned. It remains stored at
very low temperatures until it is sold, unlike fresh tuna, which can be up to
two weeks old before it is consumed. The process of flash freezing at minus 60
degrees Celsius or below ensures freshness by preventing degradation by
dehydration or bacteria growth. Reduced water loss helps prevent oxidation,
which browns the flesh. Flash freezing delays the onset of rigor mortis, in
which released chemicals stiffen flesh within hours of death. This means super
frozen tuna maintains its deep red colour, and the taste and texture of freshly
caught fish.
Shooter executed HK hostages one by
one, driver tells inquiry - Gunman walked along bus, firing to left and right as
he went. Bus driver Alberto Lubang gives evidence at the inquiry. The driver of
the bus hijacked in Manila two weeks ago told a public inquiry yesterday how he
watched in horror as the gunman walked through the vehicle and shot Hong Kong
tourists one by one. During his testimony, Alberto Lubang drew a diagram of the
43-seater bus and indicated where each of the tourists had earlier been made to
sit, one in every row. Armed with an assault rifle and a pistol, sacked
policeman Rolando Mendoza took the busload of tourists hostage on August 23 in a
desperate bid to clear himself of extortion charges and get his old job back.
Eight tourists were killed and seven others were injured in the central Manila
stand-off. Lubang told how at about 6pm that day, he watched Mendoza fly into a
rage after the former policeman saw on a TV inside the Hong Thai Travel bus his
younger brother being manhandled by policemen. Lubang said Mendoza kept
screaming into a mobile phone for a radio reporter to tell the police to set him
free "or else I will finish them all off". "Over and over he said that, for
maybe 10 minutes," Lubang said. "I became extremely nervous." He recounted how
he watched Mendoza in the rear view mirror execute the tourists using a
police-issue Armalite. He heard one shot "and the one beside me, the one
handcuffed near the door, just suddenly slumped over. I nearly lost it". The
gunman then strode down the middle of the bus, where the 15 remaining passengers
occupied one row each. "I saw in the mirror he was at the back, shooting each
seated passenger one by one, left and right," he said. "Until he reached the
middle where he nearly crouched, waiting for something." Lubang showed the panel
how Mendoza shot each tourist at close range, placing the muzzle of the Armalite
up to about 15cm from them as he fired.The driver went on to recount his
dramatic escape out through the window beside the driver's seat shortly before
police assaulted the bus. He said Mendoza had earlier handcuffed his left wrist
to the steering wheel. As the killings began, he managed to use a nail file
attached to the bus keys to open the handcuffs. He showed the file with a bent
tip yesterday. But when someone produced a pair for him to demonstrate his
escape, he said it was a different make of handcuffs. He didn't see any of the
passengers cry out nor did he see anyone on the floor. Justice Secretary Leila
De Lima, who is chairing the inquiry, said perhaps Lubang had been deafened by
gunfire. The inquiry also heard for the first time a two-minute recorded radio
interview with a Hong Kong woman, minutes before she died. In the interview
conducted at about 7.12pm, Yeung Yee-wa, 44, told radio station RMN: "We all
stay in the bus and we are OK." She said in a shaky voice that she had two
children and one, her 15-year-old daughter, was in the bus with her. Asked if
she was scared, she replied "ya, ya, ya." When told that police negotiators were
outside, she said: "I don't understand. OK." The radio reporter told her to take
care. At around 7.28pm, Mendoza started shooting and Yeung Yee-wa, her sister
and brother-in-law were killed, while her daughter Tracey Wong Cheuk-yiu was
injured. The inquiry continues today. In Hong Kong, meanwhile, Philippine
investigators began meeting survivors yesterday. Li Yick-biu and Li Fung-kwan -
who were released by Mendoza - met the Philippine officials at police
headquarters in Wan Chai yesterday afternoon. Hong Kong police will seek the
consent of other survivors, as well as advice from doctors and psychologists,
before deciding to arrange any more meetings with survivors. A police officer
familiar with the situation said copies of survivors' written statements taken
by Hong Kong police were given to the investigators along with help with
ballistic tests.
George Tan (left) and Rogerio
Lam, outside court yesterday, are fighting over five pieces of antique Chinese
porcelain. Echoes of the sensational and long-running Carrian case resounded in
court again yesterday. Disgraced investor Rogerio Lam Sou-fung and the former
head of the failed Carrian property empire, George Tan Soon-gin, began a legal
battle over five pieces of antique Chinese porcelain. Lam says he lent the
pieces to Tan in 1982 and is now demanding the return of two and the proceeds
from the sale of three others - one of which was auctioned recently for more
than HK$103 million. The hearing began in the Court of First Instance 14 years
after Tan was jailed for three years on charges of conspiracy arising from the
Carrian property empire collapse, and eight years after Lam was jailed for 20
months on various charges in a separate case. The claims about the antiques - a
Song dynasty deep dish, a pair of quail dishes, one of a pair of stemcups with a
rising sun design and a Guyuexuan vase - were made in a submission to the court
from Lam's lawyer, James Campbell. Auction house Sotheby's HK has also asked the
court to decide whether Lam or Tan should be given the proceeds from the sale of
the vase. This case will be heard after the other concludes. Lam says he lent
the pieces to Tan in 1982 after Tan saw them when he visited his home. According
to the submission, Lam did not receive any benefit from lending the pieces. Tan,
in borrowing them, had been able to show them off to clients at his office. "The
conferring of benefits was all one-way." Lam is also seeking compensation for
damage he says has been caused to some of the items. The pieces, Lam says, had
been carefully preserved and passed down for many generations, through many
dynasties. They were "passed to Mr Tan in virtually the same condition as when
they left the hands of their makers, some thousand years before", the submission
said. Making his first public appearance in many years, Lam was mobbed by
photographers as he arrived at court. Lam, son of the late Hang Seng Bank (SEHK:
0011, announcements, news) founder Lam Bing-yim, was convicted in 2002 on two
counts of using a false instrument for trying to use a bogus bank guarantee in
two failed attempts to obtain loans of US$200 million from two banks. He was
jailed for 20 months and barred from being a company director for five years.
Tan was jailed for three years in 1996 after he admitted conspiracy involving
US$238 million in secret loans obtained by Carrian from Malaysian Bank Bumiputra.
In 1980, Lam offered HK$1.68 billion to buy Gammon House, now the Bank of
America Tower, from the Carrian Group. He bought five of the building's 32
floors. The hearing continues before Madam Justice Carlye Chu Fun-ling.
The University of Hong Kong has
overtaken its Japanese rival to become the highest ranking university in Asia,
in an international league table released today. HKU is ranked 23rd in the world
in the QS World University Rankings, up one place on last year, while the
University of Tokyo has fallen from 22nd position to 24th. The 2010 ranking is
the first to be published solely by higher education information firm QS
Quacquarelli Symonds following a rift with its media partner, Times Higher
Education. The magazine of the British newspaper is planning to release a rival
league table on Thursday next week after teaming up with global publishing giant
Thomson Reuters. Hong Kong has five universities in the table's top 200 for the
second year running, with Polytechnic University leaping 29 places to 166th.
Chinese University has also improved its position, rising four places to 42nd.
But the Hong Kong University of Science and Technology and City University have
fallen back on last year's ranking, both down by five places to 40th position
and 129th respectively. QS managing director Nunzio Quacquarelli said the 2010
survey used the same data and methodology as previous QS/Times Higher Education
World University Rankings but had significantly larger academic and employer
surveys. "Hong Kong is continuing to perform extremely well," he said. "HKU is
continuing to make progress because of its high faculty scores. It is also
slightly better in our academic survey and in terms of international students."
Hong Kong was able to maintain three universities in the top 50 because its
universities were strong across all the five subject areas assessed in the
ranking, he said. The mainland again managed just two universities in the top
100, Tsinghua and Peking, with Peking rising five places to 47th position and
Tsinghua falling five places to 54th. At the top of the table, the University of
Cambridge knocked Harvard out of first place, while MIT rose four places to oust
Oxford and Imperial College London from joint fifth place. HKU has also taken
first place for the past two years in a ranking of Asian universities - also
published by QS - which is based on slightly different criteria. HKU
vice-chancellor Professor Tsui Lap-chee said: "It is of course gratifying for us
to know that the university has again been ranked among the best in the world
and I am also heartened to see other Hong Kong universities in the top 50 as
well." Tsui pointed out that rankings employed different approaches but said
that because the QS rankings employed the same methodology as that which had
been used in the QS/Times Higher Education World University Rankings for the
past five years, it was possible to compare HKU year on year. "One conclusion we
can draw from this longitudinal analysis is the consistency that HKU shows in
its high scores on those criteria chosen by QS as important for the best
universities worldwide," he said. A spokeswoman for City University said it had
"once again performed very well", adding that it had decided not to submit data
for the new Times Higher Education rankings because it was only in its first
year and was as yet "untested".
AIA eyes September 21 approval for
listing - The hearing date for AIA's flotation comes earlier than expected,
meaning the offering could hit the market next month. American International
Group planned to seek Hong Kong listing committee approval on September 21 to
list its Asian life insurance unit, aiming to raise about US$15 billion, two
people with direct knowledge of the deal said yesterday. AIG, which is nearly 80
per cent owned by the US government, is disposing of assets to repay taxpayers
as part of the US$182.3 billion bailout package that rescued the insurer during
the 2008 financial crisis. Last week, AIG filed an application with the Hong
Kong stock exchange to list American International Assurance. While a listing
committee hearing usually takes place about four weeks after the application,
the hearing date for AIA's flotation comes earlier than expected, meaning the
deal could hit the market next month instead of the earlier plan for November.
AIA would hold an analyst briefing on Friday, another three sources familiar
with the matter said, planning to kick off a roadshow in early or mid-October.
AIA's share sale comes after AIG tried unsuccessfully to sell the business
earlier this year to Britain's Prudential for US$35.5 billion. AIG had scrapped
a plan to sell a strategic stake in AIA ahead of its IPO, a source familiar with
the process said earlier. The focus for the IPO is on discussions on the sale of
cornerstone stakes. The success of AIA's listing will hinge largely on demand
from cornerstone investors, as was seen in the record-breaking IPO of
Agricultural Bank of China in July. Citigroup, Deutsche Bank, Goldman Sachs
Group and Morgan Stanley are the global co-ordinators for the IPO. Bookrunners
include Bank of America Merrill Lynch, Barclays Capital, CIMB, Credit Suisse,
ICBC International, JP Morgan and UBS. Separately, Hong Kong-listed China
Strategic Holdings said this week that AIG might choose not to proceed with its
agreement to sell the Nan Shan Life Insurance unit to China Strategic and
partner Primus Financial Holdings after Taiwan regulators rejected the US$2.2
billion deal. "AIG has indicated its current view that it would be in the best
interests of the parties to terminate the share purchase agreement," the company
said in a filing with the Hong Kong stock exchange on Monday. Taiwan's
regulators rejected the bid last week, saying China Strategic and Primus did not
meet criteria on experience in the insurance business and ability to raise
funds.
Steel shares surge as energy drive bites
- The move to make the industry more energy-efficient is estimated to have
affected 70 per cent of the nation's construction-steel capacity and 30 per cent
of industrial-steel capacity. Steel shares have continued their surge on the
back of rising steel prices as local governments on the mainland clamp down on
the energy-intensive sector's production to meet their energy-efficiency
targets. Some 18 provinces and autonomous regions were being audited by six
working teams sent by the central government on their energy-efficiency
improvement and pollution control measures, the official China Securities News
reported last week. The steel sector, which accounts for a sixth of the nation's
power consumption, bears the brunt of the campaign. Steel mills in Hebei,
Jiangsu and Zhejiang have been the most affected as the governments there took
the toughest measures, shutting down some plants through power cuts in some
areas for up to three months and rationing power or substantially raising power
prices in others. According to industry portal mysteel.com analyst Wang Jianhua,
the move is estimated to have affected 70 per cent of the nation's
construction-steel capacity and 30 per cent of industrial-steel capacity. The
average price of wire rods, used in construction, in key cities rose 4 per cent
to 4,462 yuan (HK$5,099) a tonne between last Friday and Monday, according to
industry website lgmi.com. In hard-hit Hebei province, hoarding by traders saw
prices of the material rise 17 per cent to around 4,850 yuan a tonne. Rolled
steel, used in vehicle and home appliance manufacturing, saw more moderate
increases, with hot-rolled steel rising 3.4 per cent and cold-rolled increasing
1.3 per cent in the period. Steel prices fell around 18 per cent between
mid-April and mid-July amid oversupply and weaker demand due to macroeconomic
tightening, but have rebounded just over 10 per cent since. Beijing has set a
target to reduce the nation's energy consumption per unit of gross domestic
output by 20 per cent between 2006 and this year. The figure fell 15.61 per cent
between 2006 and 2009, but rose 0.09 per cent in the first half of this year,
according to the National Development and Reform Commission. Mysteel.com's Wang
expects the nation's average steel price to rise 10 per cent in the next two
months and hit this year's high reached mid-April. 
China Mobile down after Vodafone sale - 11:39am Shares in China Mobile fell 3.6
per cent on Wednesday after Vodafone Group disposed of its 3.2 per cent stake in
the country’s largest mobile carrier for US$6.5 billion.
Hu Jintao encourages Hong Kong
tycoon to contribute more to modernization - Chinese President Hu Jintao (R)
meets with Li Ka-shing, chairman of Cheung Kong (Holdings) Limited, on the
sidelines of the celebration rally for the 30th anniversary of the founding of
the Shenzhen Special Economic Zone, in Shenzhen, south China's Guangdong
Province, Sept. 6, 2010. Chinese President Hu Jintao Monday encouraged Hong
Kong's richest man to play a greater role in the country's reform and opening up
as well as modernization. China's first special economic zone celebrates 30th
anniversary Hu made the remarks in his meeting with Li Ka-shing, chairman of
Cheung Kong (Holdings) Limited, on the sidelines of a rally in Shenzhen Monday
to mark the city's 30th anniversary as China's first economic reform zone. Mr.
Li is a witness to the development of the Shenzhen Special Economic Zone as well
as an important participant in building it," Hu said. He called on Li to
continue to use his influence to boost Hong Kong's cooperation with Guangdong
and Shenzhen and to help maintain long-term prosperity and stability in Hong
Kong. Hu said Li was an outstanding member of Hong Kong's commerce and industry
community, who had contributed to the country and Hong Kong. The country's
development had created a unique opportunity for Hong Hong and its businesses,
said Li. "I will would work with all my heart and strength to boost cooperation
between Hong Hong and the Mainland and to contribute to the prosperity of the
country and Hong Kong," he said. Also present at the meeting were Vice Premier
Wang Qishan, Liu Yunshan, head of the Publicity Department of the Central
Committee of the Communist Party of China (CPC), and Wang Yang, secretary of the
CPC Guangdong Provincial Committee.
It is premature to expect a substantial
switch from dollar-based assets to the yuan's in the Exchange Fund, according to
the Hong Kong Monetary Authority head. Chief executive Norman Chan Tak-lam said
speculative and human factors have made foreign exchange "too variable." Some
major investment banks were bearish on the US dollar last year. This prompted
Chan to explain to the Legislative Council in November that international
currencies could not all plunge at the same time. As the dollar picked up later
in the wake of the European sovereign debt crisis, the authority shunned costly
forex investments, Chan said. Hong Kong dollar and US dollar assets comprised 86
percent of the fund's total assets as of December. Chan reiterated that the
authority is interested in the yuan market and has been in talks with relevant
authorities to see how it can make investments. "We don't have any yuan funds,
so where will they come from?" Chan said. "We're still discussing whether to use
the [current] currency swap agreement, or buy via other means." One objective is
to diversify the HK$2.2 trillion Exchange Fund, but Chan said any yuan
investment target is still premature. He pointed out there are concerns such as
official quotas, exchange risks and liquidity restrictions. The authority set up
subsidiary Eight Finance last year and loaned it HK$2.8 billion for diversified
investments, but Chan said its returns should also be viewed from a span of
three to five years. He stressed the Exchange Fund should not be compared with
private equity funds with different investment objectives, noting there are no
"special ways" to boost investment returns. "You can either bet on foreign
currencies or increase the portion of securities," he said. "Yet another way is
doing both under higher leverages, boosting investments 10, 20 times by
borrowing." But higher returns on equity must come with higher risks, Chan said.
Mortgage data pool looms - Homebuyers'
mortgage histories are set to be shared among banks from next year - if the
privacy commissioner gives the go-ahead. In defending the likely relaxation of
private data, Hong Kong Monetary Authority chief executive Norman Chan Tak-lam
told The Standard banks must be assured that buyers have the ability to repay
home loans. Banks, he said, should be forced into auctions of properties whose
owners cannot meet mortgage payments only as a last resort. The privacy
commissioner is studying whether a common mortgage database can be set up for
banks, Chan said, and lenders are working toward the same goal. "The ability of
investors and speculators to meet mortgage payments is very doubtful when they
have two or three outstanding mortgages and they want to buy even more homes,"
he said. A similar database involving consumer loans has been in force since
2003 following a change in the Code of Practice on Consumer Credit Data. Chan
said the pooling of mortgage data - already being practiced in the United States
and Europe - is imperative for the stability of the banking system. As mortgages
make up half of all loans by banks, their risk management is absolutely
essential. He believes it is premature to judge the effectiveness of tighter
mortgage policies since they have only been in place since mid-August. On the
record prices at recent land auctions, Chan said it is natural for a prime site
to fetch more. He took issue with claims that the Kowloon record set in the
auction of a Kowloon Tong site last week amid measures to cool the property
market reflected policy failures. The HKMA will conduct stress tests this month
on banks' mortgage portfolios. As the Hong Kong interbank lending rate is highly
variable, the tests will be based on the best lending rate caps in a
hypothetical case of interest rates being raised by 200 basis points. To pass
the test, the debt service ratio of homebuyers - many of whom have gone into
debt because they expected home prices to rise - must not surpass 60 percent
after taking into account not only mortgages but all other loans. Chan pointed
out that the situation reminded him of the Asian financial crisis, when
homebuyers were "inexplicably optimistic" and "screened out" all negative news
until price plunges became painfully obvious. Homebuyers at that time, he also
pointed out, were in a better position than now since interest rates fell from a
peak of 10 percent in 1997 to 2.5 percent five years later, massively reducing
their burden. Chan stressed the situation this time will be very different: "It
may well be a sudden hike in interest rates that leads to a fall-off in property
prices." The US subprime crisis showed that lending to marginal borrowers could
lead to a massive surge in non- performing loans during a crisis, Chan said. He
believes the recent tightening by the Hong Kong Mortgage Corporation of
downpayments from 5 to 10 percent of a property's value is "mild" and an
"appropriate" move that needed to be taken for the corporation's own protection.
"It is very dangerous for aspiring homebuyers to have little principal," Chan
said. "When prices fluctuate, the principal is as good as gone." It has been
shown worldwide that buyers who put little cash down are less willing and able
to hold a property, so buyers should make bigger downpayments when risks are
rising, he said. The corporation's mortgage guarantee to Home Ownership Scheme
buyers will be introduced this month, but Chan expects demand to be limited.
The slight fall in opening-day turnover
was just a hiccup, the Jockey Club chief executive said, as he expressed
confidence the new racing season will be even more successful than the last one.
More than 48,000 fans turned out to welcome the new season though turnover at
HK$781 million was down 6 percent on last year's HK$833 million. However,
Winfried Engelbrecht- Bresges noted that yesterday's figures were actually
better than those 12 months ago. Gross margin was up by HK$3 million, betting
duty paid to the government up HK$2 million to HK$104 million and the amount
retained by the club for operating expenses and charities contributions up by
HK$1 million. "Smaller fields than last year's meant there was a slight
shortfall in turnover but this was a direct consequence of the shorter break
between the seasons," he said. "There's no doubt the slight turnover dip
reflects the fact that this year we had a shorter off-season break. "Runners
were down by nearly 20 percent, but when you see the number of horses trialling
you realize that in two to three weeks' time we will be back to normal in terms
of fields and therefore turnover ... I believe it will be another good year
ahead." In racing terms, the day at Sha Tin was a success, Engelbrecht-Bresges
said, particularly when three-year-old Lucky Nine beat the older horses in the
opener - the HKSAR Chief Executive's Cup. Chief Executive Donald Tsang Yam- kuen
was on hand to present the cup, having earlier declared the season open by
striking a ceremonial gong and dotting the eyes of a lion together with new
Jockey Club chairman Brian Stevenson. The feature race matched the occasion,
with a superb finish in which Lucky Nine, ridden by Brett Prebble, cut down last
year's winner Nightlign, the mount of his archrival and champion Douglas Whyte,
in a pulsating finish. Engelbrecht-Bresges earlier indicated the club will
continue to press the government for changes in the way it taxes horse racing.
"It is important that the government and legislators look at the wider picture
when considering gambling issues," he told Jockey Club voting members. "Since
the club was authorized to offer off-course betting in 1973, its total
charitable donations has exceeded HK$27 billion, and it has contributed a
remarkable HK$261 billion to the public purse," he said. "To sustain these
contributions to the community, we need to establish a new framework that can
enable the club to stay competitive, covering services, offerings, taxation and
regulatory issues."
Hong
Kong Property tycoons sit on massive land reserves - The theory is simple:
property prices are high in Hong Kong because land is scarce. But it isn't. The
top six developers, Cheung Kong (Holdings) (SEHK: 0001), Sun Hung Kai Properties
(SEHK: 0016), Henderson Land (SEHK: 0012), Sino Land, Kerry Properties (SEHK:
0683) and New World Development, hold development projects that could provide
flats adding up to 42.6 million sq ft of gross floor area when completed. This
equates to about 43,000 flats with an average size of 1,000 sq ft. However, the
property giants are moving at their own pace. This makes sense since they have
no incentive to flood the market and drive the value of their assets down. But
it points to some of the challenges the government faces in moderating price
rises. "As developers have massive land banks in hand, they have full control of
when and at what price level to sell flats," said Professor Eddie Hui Chi-man of
Polytechnic University's building and real estate department. He said the
situation in Hong Kong may become like that on the mainland where the central
government is looking at land hoarding by developers. Selling more land in Hong
Kong should have undercut prices - but there is a limit to what the government
can put on the block. After selling seven sites at auction this year, including
lots in Argyle Street in Kowloon and Hung Hom Bay last month and No1 Ede Road,
Kowloon Tong, last Tuesday, there is not much left. The remaining 39 sites on
the Lands Department's application list, available for developers to trigger for
sale this financial year, can supply only 5.56 million sq ft of gross floor
area. Given that some of the land will be for mid-sized apartments with an
average size of 700 sq ft while the rest will be developed as luxury villas with
an average size of 1,000 sq ft, these areas will provide about 6,700 flats. This
is only a sixth of the combined land banks of the top developers. Under the list
system, a site is auctioned if a developer bids enough to force a sale. Taking
into account farmland, the amount of land controlled by the main developers is
even greater. Four of the big six, excluding Sino and Kerry, have amassed 86.3
million sq ft of agricultural land. Assuming a plot ratio of two - owners of
such land are usually allowed a gross floor area equivalent to 0.5 to three
times the size of the sites - that could be converted to supply up to 172
million sq ft of residential floor area. But the developers still need to
negotiate with the government on the land premium to be paid to convert the land
to residential use. Including farmland and old building acquisitions, Credit
Suisse estimated earlier that Cheung Kong, Sun Hung Kai Properties and Henderson
Land have land banks big enough to keep them going for four years, five years,
and eight years, respectively. Assuming land supply does not increase, Credit
Suisse said: "We believe developers will continue to adopt the high-price,
low-volume strategy." Economists and analysts say the developers' collection of
land enables them to hold back projects to wait for higher prices. For example,
Sino Land bought a site at the junction of Hoi Wang Road, Yan Cheung Road and
Yau Cheung Road in the West Kowloon reclamation area in May 2007. After three
years it has formed little more than the foundation. "They may launch the
project as close to 2015 as possible for a higher average selling price as a
high-speed railway station will be completed by then," said one analyst
referring to the terminus for the planned Hong Kong-Guangzhou rail link in West
Kowloon. If it is planning to do this, Sino Land is not saying. "At present,
construction work has continued on schedule. The target date for the occupation
permit is the end of 2011," a spokesman said. Ken Yeung, an analyst at Citigroup
Global Markets Asia, said developers had been accumulating land since 2004 when
the government stopped regular auctions to prevent slumping property prices from
sinking further. Developers pay for land upfront, but low interest rates - and a
bullish outlook for property prices - encourage them to sit on assets. "The
interest cost is 2 to 3 per cent a year nowadays, which is about half of the
cost before 2004," Yeung said. "The land price, on the other hand, has been
leveraging rapidly in these few years." Noting that the Centa-City Leading
Index, which measures average housing prices, had recently topped 80 points from
about 30 in 2003, Yeung said: "This is like property prices climbing to HK$8,000
per sq ft from HK$3,000". As the building cost has been stable at about HK$2,000
per sq ft, that means land value has multiplied from HK$1,000 to HK$6,000." Not
all land can be held indefinitely. For example, developers are bound by a
government land lease to develop farmland within a specified period once it has
been converted to residential use, says the Lands Department. The department
does not have any plans to prevent the development of large land banks. "Land
acquisition by developers is a market activity. For the sites disposed of by the
government by public auction or tender, it is through an open and competitive
process. Any interested parties may participate in such sales," it said. Last
month, the government announced policies to regulate the market, which include
banning confirmor transactions - resales before an initial deal has been
completed - for new flats and increasing the down payment for sales above HK$12
million from 30 per cent to 40 per cent. The Lands Department will also put up
for auction this month and next month three areas designated for small to
mid-sized flats. These sites in Chai Wan, Hung Hom and Fanling together can
provide 540 flats. Financial Secretary John Tsang Chun-wah said more land would
be put on to the application list to provide more than 9,000 flats in the next
financial year. When the cooling measures were announced, it led to a halving of
flat sales over the following weekend and a fall in developer's stocks of 3 to 5
per cent last Monday. But the market soon heated up again after Cheung Kong paid
HK$7.61 billion - about 30 per cent higher than forecast - to buy two sites in
an auction on August 17. Polytechnic University associate professor Lam Pun-lee
said the government should speed up its schedule to put land from the Kai Tak
development and West Kowloon Cultural District for auction. "We learn from
economics that expectations can also affect market behaviour," he said. "A clear
signal that the government will soon sell a large area of land from these sites
would be strong enough to adjust the property market." The government has yet to
announce a clear plan and timetable for these sites. On Kai Tak, which will have
more than 300 hectares of land, the financial secretary said only that it would
eventually provide 16,000 flats and that land for about 4,000 flats should be
available by 2015. For the 40-hectare West Kowloon Cultural District, the
residential development is limited to 20 per cent of the gross floor area of the
site. The West Kowloon Cultural District Authority launched a three-month public
consultation on three new visions for the arts hub on August 20 and still has
another round to go before a final blueprint is developed and submitted to the
Town Planning Board for consideration next year. Hui said the shortage of new
flats in recent years had boosted housing prices. "There are almost 40,000 new
households formed each year in Hong Kong. Besides the 10,000-odd new public
flats built by the government, we need 10,000 to 20,000 new ones from the
private sector," Hui said. However, only 8,776 and 7,157 flats were completed in
2008 and last year respectively, down from about 26,000 flats between 2000 and
2004. Developers say they have no difficulty in accumulating more land
resources. "As a developer, land bank replenishment is required," a Sino Land
spokesman said. "Sales depend on the timing of issuing a pre-sale consent." Sun
Hung Kai Properties said it had always been its strategy "to maintain a land
bank adequate to accommodate four to five years of development needs". Cheung
Kong did not reply to inquiries.
Local banks should be ready to grasp opportunities in the mainland - whether
yuan-related or not - as the global economy will take longer than expected to
recover, said Amy Yip Yok-tak, chief executive of DBS Bank (Hong Kong).
Philippines police 'have no hostage
negotiating team', inquiry told - Hong Kong Police Chief Inspector Wan Siu-Hung,
left, and Superintendent Man Tat-Shing, second from left, listen to testimony
given by Philippine Police Superintendent Orlando Yebra, right, who was a
negotiator in the August 23 hostage stand-off in Manila, during a hearing at the
Department of Justice in Manila, Philippines on Monday.
Red carpet of 'Detective Dee and
the mystery of Phantom Flame' at 67th Venice Film Festival.
Hu marks 30 years of 'miracle'
Shenzhen - President Hu Jintao speaks during a ceremony to mark the 30th
anniversary of the founding of Shenzhen Special Economic Zone in Shenzhen on
Monday. President Hu Jintao hailed the export hub of Shenzhen as a "miracle" on
Monday as China marked 30 years of reforms that provided the blueprint for the
country's economic rebirth. “The Shenzhen Special Economic Zone created a
miracle in the world’s history of industrialisation, urbanisation and
modernization and has contributed significantly to China’s opening up and
reform,” Hu said on a visit to the southern city which borders Hong Kong. “The
central government will, as always, support the brave exploration of the special
economic zone as well as its role of testing and carrying out reforms ahead of
others,” he said, according to state-run television. Once a sleepy fishing
village, Shenzhen is widely viewed as the cradle of China’s dramatic
transformation into a world economic and trade juggernaut. In 1980, it became
the first area in China designated as a special economic zone that could accept
foreign investment, under reforms pioneered by late leader Deng Xiaoping. It
offered lower taxes and less red tape to attract the overseas investors whose
factories – staffed by China’s abundant cheap labor – set the mould for the
country’s explosive manufacturing-based economic growth. Several other special
economic zones followed, in the nearby cities of Zhuhai and Shantou in Guangdong
province, the port of Xiamen in the southeastern province of Fujian and the
southern island of Hainan. The reforms touched off an annual economic growth
rate of 25.8 per cent over the last 30 years in Shenzhen, compared with about
9.8 per cent for the entire country, according to government figures. The
population has ballooned to nearly nine million people, most of them members of
China’s huge army of migrant workers, according to official data. Authorities
expanded the area of the zone to just under 2,000 square kilometres (770 square
miles) this year, nearly the size of Luxembourg, from the previous 396 square
kilometres. Located in the Pearl River Delta, the heartland of China’s
export-oriented economy, Shenzhen boasts one of the highest minimum wages in
China at 1,100 yuan per month, compared with just 600 yuan in the poor central
province of Henan. It is home to many high-tech firms, including Taiwanese IT
giant Foxconn, which employs more than 400,000 people in the city to make
products for Apple, Panasonic and other top brands. The city, however, is often
pointed to as a symbol of some of the social problems attending these Chinese
economic model’s reliance on cheap factory labor. Foxconn, for example, has come
under heavy criticism over working conditions at its factories after 13 Chinese
employees committed suicide this year at Foxconn plants and an affiliate,
including 10 in Shenzhen. State media reports have also decried the city’s
thriving prostitution industry, while a corruption scandal involving mayor Xu
Zongheng tainted the city last year. Xu was removed from office. But Wang Rong,
the Communist Party chief of Shenzhen, told a rally that the city would continue
to play the role of “first mover” and strive to be the “vanguard of China’s
scientific development.” Shenzhen would build itself into a “modern and
international” metropolis, Wang said, according to the official Xinhua news
agency.
Wen, Carter voice will to
advance China-U.S. ties - Chinese Premier Wen Jiabao (R front) meets with former
U.S. President James Carter (L front) in Beijing, capital of China, Sept. 6,
2010. Chinese Premier Wen Jiabao and former U.S. President Jimmy Carter Monday
voiced optimism over the China-U.S. relationship and the will to work for
stronger ties despite ups and downs. "Since the two countries established
diplomatic ties 31 years ago, China-U.S. relations have weathered various tests
and always moved forward," Wen said during a meeting with Carter in Beijing. Wen
said it is crucial at this moment for China and the United States to develop a
positive, cooperative and all-round bilateral relationship, which requires
arduous, long-term efforts from both sides. At present the two sides should
enhance mutual trust, strengthen cooperation and join hands in promoting the
recovery of the global economy, he said. In the long term, the two countries
should abide by the principle of mutual respect and treating each other as
equals, properly address their disputes, increase common interests, actively
push forward all-round cooperation and jointly push for sustained peace and
sustainable development for humankind. "China is ready to work with the U.S. to
fend off various risks and continually push forward the relationship," Wen said.
Carter said he was proud of the decision he and late Chinese leader Deng
Xiaoping jointly made 31 years ago to establish diplomatic ties between the two
countries. He said he had confidence in U.S.-China relationship. He said he is
willing to work for deeper understanding and friendship between the people of
the two countries. Carter is in China for a conference on international sister
cities in Shanghai and the fourth China Zhijiang International Peace and Culture
Festival in Hunan Province this week.
China bucked international
trends in both outbound and inward investment, official figures have revealed.
China now ranks as the fifth largest global investor in outbound direct
investment (ODI) with a total volume of $56.5 billion, compared to a ranking of
12th in 2008, the Ministry of Commerce said on Sunday. On top of this, foreign
direct investment (FDI) this year was set to "surpass $100 billion", compared to
$90 billion last year, ministry officials predicted. Globally, foreign
investment decreased by almost 40 percent last year amid the financial downturn
and is expected to show only marginal growth this year. The growth in both
outbound investment from, and inbound investment to, China reflects the nation's
rising economic power and attractiveness as an investment destination. The
ministry made the announcements during a press conference held in Xiamen on the
upcoming United Nations Conference on Trade and Development (UNCTAD) World
Investment Forum and the 14th China International Fair for Investment and Trade.
Both forums will start on Tuesday. According to the ministry, China's ODI grew
by 1.1 percent from a year earlier to $56.53 billion, which includes investment
of $47.8 billion in non-financial sectors worldwide, up 14.2 percent
year-on-year. Last year was the eighth consecutive year that the nation's ODI
had grown. In this period the average annual growth rate stood at more than 50
percent. "China is now the fifth largest investing nation worldwide, and the
largest among the developing nations," said Shen Danyang, vice-director of the
ministry's press department. In 2009, global ODI volume reached $1.1 trillion,
and China contributed about 5.1 percent of the total. But "this is just a
beginning." Although the figure is already "quite amazing," the volume is "not
large enough" considering China's economic growth and local companies' expanding
demand for international opportunities, Shen said. "The growth rate (for ODI) in
the next few years will be much higher than previous years," Shen said, without
elaborating. China's ODI growth witnessed strong momentum this year. From
January to June, the ODI in financial sectors was up by 43.9 percent to $17.84
billion, and in July alone, the ODI recorded $8.91 billion, the highest this
year. Liu Zuozhang, director of the investment promotion agency under the
commerce ministry, told China Daily that China's ODI in non-financial sectors
would probably grow to $60 billion this year. But while more Chinese companies
were investing overseas, barriers and protectionism against Chinese investment
were strengthened as well. Fan Chunyong, standing deputy chief of the China
Industrial Overseas Development and Planning Association, said the challenge
would not affect the upward trend of the ODI. "China's ODI will go up to $100
billion in 2013, and the Chinese accumulative overseas investment will reach
$500 billion by then," said Fan. According to the ministry, by the end of 2009,
13,000 Chinese enterprises had invested in 177 nations and regions worldwide,
and the largest volume of funds went to the Asia-Pacific region. Europe and
Africa ranked second and third in absorbing Chinese investment. Figures also
revealed that more Chinese enterprises were focused on developed nations and
emerging markets. During the first half of the year, China's ODI to the United
States and the European Union rocketed by 360 percent and 107.2 percent
respectively year-on-year. And investment into ASEAN and Russia grew by 125.7
percent and 58.5 percent. Jinny Yan, economist from Standard Chartered Shanghai,
predicted that the EU would continue to be a hotspot for China's outbound
investment in the coming months thanks to the ongoing European debt woes. As for
FDI, Shen predicted it would reach a record high of $100 billion this year as
China's consumption capacity gradually picked up and the nation's efforts on
creating an open and transparent investment environment paid off. Responding to
recent complaints by foreign businesses on the "worsening" investment
environment, he said it "highlights foreign businesses are attaching more
importance to the Chinese market". A report by the European Chamber of Commerce
released last Thursday said China had made progress on improving its investment
environment, but still needed to do more, especially on market access and the
regulatory environment. While global FDI slumped by almost 40 percent last year,
China's FDI was down by a mere 2.6 percent, according to the UNCTAD. China
remained the second largest recipient nation of FDI, following the US. During
the first seven months, China's FDI increased by 20.7 percent to $58.35 billion,
and FDI in July surged by 29 percent. Zhan Xiaoning, director of the investment
and enterprise division under the UNCTAD, said China was taking the leading role
in the FDI recovery worldwide, even though FDI growth was not a cause for
optimism globally.
Sino-US relations 'on a sound track' - A
US trade delegation meets with the Li Yuanchao at the Great Hall of the People
in Beijing on Monday. China-US relations are back on track after being waylaid
by difficulties earlier this year, a senior Beijing official told visiting White
House envoys on Monday. Li Yuanchao, a top official with the ruling Communist
Party, made the remarks in talks with US Deputy National Security Adviser Thomas
Donilon and US National Economic Council Chairman Larry Summers. “Although there
were some disturbances in China-US relations... relations have gotten back on a
sound track,” Li told the visiting Americans before the two sides began
closed-door talks. Neither side has offered detailed information on the purpose
of the four-day visit or what was to be discussed. However officials from the
two sides have met recently about the possibility of resuming six-nation
negotiations on ridding North Korea of its nuclear programs. Tensions spiked
this year over issues including a US arms sale to Taiwan, a meeting in February
between President Barack Obama and the exiled Tibetan spiritual leader the Dalai
Lama, and trade disputes. However the temperature has cooled considerably in
recent months following several high-level meetings of the two sides, including
between Obama and President Hu Jintao. Following the meeting with Li, the two
White House officials met with Foreign Minister Yang Jiechi.
Eighteen steel mills in Wuan district
of Hebei province which do not meet state requirements for environmental
protection and energy savings have been forced to close since Sunday, reports
said on Monday.
Guangzhou Auto unveils its model -
The central government is urging domestic carmakers to develop their own models.
Newly listed Guangzhou Automobile Group has started producing its first
home-grown model, the Trumpchi, which is made on the technological platform of
Fiat's Alfa Romeo. Trumpchi, which means miracle in Chinese, sells for about 15
per cent less than the 180,000 yuan (HK$205,250) Toyota Camry. Guangzhou Auto, a
joint-venture partner with Toyota and Honda, expects sales of Trumpchi to reach
30,000 units by next year. "When we reach 60,000 units, the business will
contribute to profits," said Wu Song, vice-general manager of Guangzhou Auto.
"By 2015, total sales should be 300,000 units and production will be 400,000
units." An initial batch of about 500 units is to be delivered by December, just
in time to serve as the official car of the 2010 Asian Games, which will be
hosted in Guangzhou. Other state-owned carmakers such as Shanghai's SAIC Motor
and Hubei's Dongfeng Motor (SEHK: 0489) have rolled out their own models, such
as the Roewe and the Fengshen. Similar to SAIC Motor and Dongfeng, Guangzhou
Auto is looking to launch mid-range cars. The central government has urged
mainland carmakers to develop their own models in order to compete with global
players, which are seeing huge sales expansion on the mainland. Since the 1980s,
mainland carmakers have been teaming with foreign players to set up 50-50 joint
ventures for technology transfers. "I learned a lot from Toyota and Honda about
how to manage a factory and nurture talent," Wu said. That provided him with the
knowledge to lead the effort to make the company's own model. Hong Kong-listed
Guangzhou Auto, which privatised subsidiary Denway Motor this month, was also
eyeing a listing on the mainland's A-share market in three to five years, its
top executives said.
Hong Kong and Ukraine
signed VISA FREE Agreement amid warming trade ties with China - Donald Tsang
greets Ukrainian President Viktor Yanukovych after the pair witnessed the
signing of an agreement on visa-free travel. - Hong Kong struck a visa-free
travel agreement with Ukraine yesterday as its president hailed the city's role
in his Eastern European nation's emerging "strategic relationship" with China.
President Viktor Yanukovych said he wanted Hong Kong investors to play a key
role in a new era of "political pragmatism and economic modernization" after
long years of "political confusion". "Elevating our relationship [with China] to
a new strategic level is a priority for us," Yanukovych told a Trade Development
Council lunch after meeting Chief Executive Donald Tsang Yam-kuen. "China is a
special force of attraction for Ukraine ... it is a tolerant force, it's not
going to pull Ukraine to the right or left nor make it an area of its influence.
"Today we have a new class in our country, a class of entrepreneurs willing to
work in market conditions and with respect to fair competition. The work of this
class is not based on ideology but on fair competition." Hong Kong's relations
with the emerging markets of Eastern Europe have had a hectic few days.
Yanukovych's delegation included senior government, parliamentary and industrial
figures, and marked his first state visit to China. Tsang met Russian President
Dmitry Medvedev in Moscow on Tuesday after Cathay Pacific (SEHK: 0293)'s
inaugural passenger flight between the Russian capital and Hong Kong. He will
meet a delegation from the Slovakia led by President Ivan Gasparovic at
Government House tomorrow. Hong Kong officials said that while Eastern Europe
remained an important emerging region for the city, the flurry of activity did
not represent a sudden new push but rather efforts to steadily build links.
Trade with Eastern Europe was largely insulated from the worst effects of the
global financial crisis. Council executive director Fred Lam Tin-fuk said Hong
Kong-Ukraine trade was up 33 per cent to US$78 million in the first two quarters
of this year - a figure he described as "just the beginning". "I say this
because I know that Ukrainian trade with the ... mainland is also growing fast.
Building economic ties with the ... mainland is a priority for Ukraine." Ukraine
exports minerals and agricultural products and is also a source of hardware and
technology for China's growing military - a legacy stemming from its previous
inclusion in the former Soviet Union. The People's Liberation Army is expected
to lean more heavily on Ukraine in coming years as a source of technology it can
no longer acquire from an increasingly wary Moscow. Once derided by opponents as
being too close to Moscow, Yanukovych has broadened Ukraine's international
relationships while seeking to promote its entrepreneurs. A former Soviet-era
transport chief, Yanukovych recovered from an overturned 2004 election to win a
five-year term in March.
Mass dredging works raise fears for
harbor - A dozen marine projects will transform the sea bed A dozen marine
projects will transform the sea bed.
A host of big engineering
projects due to start beneath the waters of Victoria Harbour this year and next
have raised fears over what effects the collective dredging operation might have
on marine life and water quality. The seabed, from east to west, will undergo a
massive transformation as various projects involving dredging start almost
simultaneously. It is likely to be the biggest collection of such jobs since the
early 1990s, when the so-called rose garden projects - the new airport and
related road and rail links - saw vast land areas reclaimed from the sea. While
all the latest projects have been approved by the environmental watchdog,
questions are being raised about why they are being allowed to start at about
the same time and whether the effects on marine ecology and water quality have
been properly assessed. At least a dozen marine projects - including roads,
ports, tunnels and submarine pipes - are due to start this year or next, and
they will continue into 2012 and beyond. Together they will produce an estimated
40 million cubic metres of sediment - enough to fill 16,000 Olympic-sized
swimming pools - that will have to be disposed of somewhere. At least seven
million cubic metres of this material is contaminated with heavy metals like
silver, mercury, arsenic, copper and zinc released into the water and dropped to
the seabed since the unregulated industrial boom of the 1960s and '70s.
Individual sediment samples at the site of one project - a cross-harbour gas
pipeline - was found to contain heavy metal levels up to eight times the maximum
used by the Environmental Protection Department to decide if such sediment must
be dumped in an isolated area.
John Woo honor 'a triumph for HK' - Director Quentin Tarantino applauds as John
Woo takes the stage at the 67th Venice Film Festival on Friday to receive the
Golden Lion award. The lifetime achievement award bestowed on Hong Kong director
John Woo at the 67th Venice Film Festival is recognition of the city's
world-class talent, the head of CreateHK says. Jerry Liu Wing-leung, who heads
the government office that leads the development of creative industries,
congratulated Woo, who received the prestigious Golden Lion award in Venice on
Friday. "[Woo's honour] is an international recognition as well as a
demonstration of the strength of Hong Kong filmmakers," Liu said, referring to
the strong presence of Hong Kong films at this year's Venice festival. Woo was
joined on stage by Hong Kong director Tsui Hark and award-winning director
Quentin Tarantino. Woo, who brought a string of highly stylised Hong Kong action
classics - including A Better Tomorrow and Hard Boiled - to Hollywood, said in
his acceptance speech that he had not contributed much to film, but had made a
few good movies. "I would like to be a bridge between the good things of the
West and the East, so we can further our mutual knowledge and build a strong
friendship," said the 64-year-old veteran, who's directed some of Hollywood's
top-grossing films, including Mission Impossible II and Face/Off. Woo also
presented his latest martial arts thriller, Reign of Assassins, in the
festival's out-of-competition section. The film stars Michelle Yeoh and Korean
Jung Woo-sung. Festival director Marco Mueller described Woo's films as "a
perfect union of China tradition and avant-garde filmmaking". Venice is crowded
with big names from Hong Kong this year. Tsui is presenting Detective Dee and
the Mystery of the Phantom Flame tonight at Sala Grande. The period action drama
- starring Andy Lau Tak-wah, Carina Lau Ka-ling and Tony Leung Ka-fai - is
competing for top festival honors. The non-competition section also featured
Stanley Kwan's drama Showtime, set in 1930s Shanghai, Andrew Lau Wai-keung's
kung fu epic Legend of the Fist: The Return of Chen Zhen, and the Pang Brothers
horror flick, The Child's Eye 3-D. Local trade and film bodies held a reception
last night in honour of Woo and the local films selected in Venice.
Gold's long rally seen to continue on
firm demand - Precious metal forecast to hit US$1,500 next year - Gold may reach
at least US$1,300 an ounce this year as investors seek a shield against
financial turmoil, weak currencies and inflation. 
Ningbo Port to feed off
Shanghai's strength - Ningbo Port hopes to raise 13 billion yuan in its initial
public offering on the Shanghai Stock Exchange this month. Profit soared 60 per
cent in the first half to 1.1 billion yuan. Ningbo Port plans to tighten its
partnership with rival Shanghai after Ningbo Port's initial public offering on
the Shanghai Stock Exchange on September 14. The two neighbouring ports in the
Yangtze River Delta are the world's two largest ports by cargo tonnage. Ningbo
Port has received approval from the China Securities Regulatory Commission to
issue 2.5 billion A shares on the Shanghai exchange, from which the state-owned
port operator hopes to raise at least 13.03 billion yuan (HK$14.88 billion).
Ningbo Port's strategy was to capitalise on the central government's policy to
establish Shanghai as a leading international port by expanding its scale as a
deepwater port and increasing its specialisation, said Ningbo Port's IPO
prospectus. "I see the two ports growing stronger rather than weaker going
forward. In the past, there was a lot more rivalry between Shanghai and Ningbo,
but at the end of the day, they don't need to compete fiercely because both are
enjoying strong volume growth," said Anderson Chow, Asia head of infrastructure
research at Macquarie Securities. Sunny Ho Lap-kee, executive director of the
Hong Kong Shippers' Council, said that if Shanghai and Ningbo developed
aggressively, they might take some of Hong Kong's international transshipment
business. In 2009, Shanghai was the port with the world's most cargo throughput
at 590 million tons, with Ningbo second at 570 million tonnes and Singapore
third, according to data by the Port of Rotterdam. Excluding river cargo, Ningbo
had the world's most cargo throughput at 577 million tonnes in 2009, with
Shanghai second at 495 million tonnes, according to data by China's Ministry of
Transport. Last year, Ningbo ranked eighth globally in container throughput with
10.26 million 20-foot equivalent units (teu), according to its prospectus.
During the first half, Ningbo's container throughput grew 34.4 per cent to 6.27
million teu, overtaking Guangzhou as China's third-busiest container port behind
Shanghai and Shenzhen. On a monthly basis, Shanghai is the world's busiest
container port, with Singapore second, Shenzhen third and Hong Kong fourth. "Ningbo
is stronger than Shanghai in bulk cargo. Because of its location, Shanghai still
enjoys an advantage in containers," Chow said. Ningbo Port planned to add 5.5
million teu of new annual container capacity by 2014, said its prospectus. "More
capacity may lead to lowering terminal prices. It means operating costs will be
lower, so Ningbo can afford to be competitive," Ho said. During the first half,
Ningbo Port's net profit soared 60.4 per cent to 1.11 billion yuan, while
revenue grew 62.9 per cent to 3.08 billion yuan. The lead underwriter of Ningbo
Port's A-share IPO is BOC (SEHK: 3988) International.
China launches satellite Sinosat-6
for TV, radio live broadcast. The satellite was carried on the Long March 3B
rocket which took the SinoSat-6 into a geostationary transfer orbit 26 minutes
after the launch. In the following days, Xi'an Satellite Control Center and
Yuanwang tracking ship will manipulate the satellite's position and transfer it
to enter the geostationary orbit. SinoSat-6 has a designed lifespan of 15 years
and will eventually work at longitude 126.4 degrees east about 35,700 kilometers
above the equator, said the China Aerospace Science and Technology Corporation (CASTC),
the satellite's researcher and producer. It will mainly serve for relaying TV
and radio live broadcast signals and will greatly improve cultural life for
people living in remote and mountainous regions, according to China Satellite
Communications Corporation which will operate the satellite. China has launched
the first SinoSat series satellite, SinoSat-1, in 1998. The SinoSat-2 was
launched in 2006 but malfuctioned for it failed to deploy its solar panels and
communication antennae. SinoSat-6 will serve as a substitute for SinoSat-3 which
was launched on June 1, 2007, according to the China Aerospace Science and
Technology Corporation.
PLA navy repels pirates with grenades, bullets - CCTV footage shows a Kunlunshan
crew member firing on pirate skiffs. The PLA navy has displayed a fresh appetite
to confront pirates plaguing vital sea lanes off the Horn of Africa, breaking up
recent attacks on shipping with stun grenades and machine-gun fire. PLA
commanders appear determined to showcase the potential of the large amphibious
assault ship Kunlunshan just as monsoonal calms spark fresh attacks by Somali
pirates on ships plying the Indian Ocean trade routes linking Asia to Europe and
the Middle East. State media reports and CCTV military broadcasts have
highlighted an incident on August 28 when three waves of fast-moving pirate
skiffs attempted to attack a convoy of 21 commercial ships under PLA escort. The
incident comes in a high-profile week for China's rapidly modernising navy, with
ships fresh from unprecedented exercises in the Mediterranean sailing up the
Irrawaddy River to stop in Yangon, Myanmar, while another crossed the Coral Sea
to visit Vanuatu and Tonga as part of a Pacific tour. Helicopters launched from
the 17,600-tonne Kunlunshan and the destroyer Lanzhou helped repel the pirate
skiffs, with marines firing stun grenades and heavy machine guns to warn off the
pirates, who later fled the area. At one point a skiff came within less than a
nautical mile of the freighter Haijie, the PLA Daily reported, but was chased
off. Special operations troops were then placed aboard the slow-moving ship for
extra protection. Just as it marked new tactics from the pirates, who attacked
the convoy at several different points in a battle that lasted more than 30
minutes, it also revealed higher levels of organisation and co-ordination from
the PLA. While the incident was not witnessed by foreign navies, PLA officials
have outlined the incident to their international counterparts in the
anti-piracy fight. "From everything we can tell, it was a very successful
operation," said one Asian naval official monitoring China's anti-piracy effort.
"They seem more highly organised and eager to intervene... There was no panic.
The pirates were persistent but driven off without loss of life." Gary Li, a PLA
analyst at the London-based International Institute for Strategic Studies, said
the sailors involved "seemed much more co-ordinated and cool-headed than before
... and certainly prepared to use force to ward off attacks". "They seem
determined to use the Kunlunshan to its best advantage," he said. The Kunlunshan
is one of the most closely watched of China's new warships. The 200-metre ship
is the only one of its kind in the PLA fleet and believed to be central to any
plan to invade Taiwan, able to carry large helicopters, fast patrol vessels and
even hovercraft. Its appearance off the Horn of Africa comes ahead of the first
anniversary later this month of the successful hijacking of a Chinese coal
carrier. The De Xin Hai was boarded by pirates as it sailed from South Africa to
India and held at a stronghold on the Somali coast for more than two months
pending the settlement of a ransom. So far, it is the only Chinese ship captured
since the PLA joined international anti-piracy efforts in December 2008 - the
first time Chinese warships have entered a potential conflict zone outside home
waters in six centuries. While the PLA continues to escort convoys of ships
mainly from greater China, including Hong Kong, it has yet to join international
patrols of a special transit zone in the Gulf of Aden. Such a move would force
even closer co-operation with a range of international navies under American and
European leadership and would pave the way for China to jointly chair co-ordinating
sessions - another first for a once-insular PLA. China has offered to head up
the sessions but PLA officials have told their counterparts that they are still
waiting for political approval from Beijing before pushing ahead with the plan.
Russia and India, eyeing a suddenly expanded PLA role in a highly strategic
area, are also pushing for greater involvement. "We are in uncharted waters in
terms of co-operation at this point," a European naval officer said. "These are
fresh relationships and everybody is still feeling their way... everybody is
trying to be very patient."
Caritas finds value in old
computers - Used machines are fixed and given to the poor, or components are
recycled. A worker separates glass from cathode ray tube monitors as part of a
recycling process at the Caritas computer workshop in Kowloon Bay. Old, slow
computers are often discarded by owners looking for high performance and
efficiency. But for Lau Lu-keung, the older the computers the more valuable they
are. "Every part of an old computer is a treasure for us," he said. Lau is in
charge of the Caritas Hong Kong Computer Workshop. Founded in 2001, the Kowloon
Bay facility receives used computers and gives them new life if possible.
Second-hand computers, if reusable, are fixed and given away to poor families or
sold cheaply. Those that cannot be reused are dismantled and their components
sold to recyclers. Every year, about 2,000 companies donate on average 50,000
used computers, printers and scanners to the workshop. Lau said 30 per cent to
40 per cent of them had been used for only two to three years. Three years ago,
only 10 per cent of the donated computers were relatively new. "Many Hong Kong
people think that it is better to donate new things. But, in fact, people should
not mind donating old things to us," he said. "The raw materials used by some
old computers are more expensive ... Some contact surfaces of internal parts are
even gold-plated. They can be sold at a better price," he said. Lau hoped people
would dispose of their electronic waste in a proper manner, so that it is
handled in the most environmentally friendly way. The workshop is
self-financing: money earned by selling old computer parts is used to support
the computer giveaway business. Every computer collected is demagnetised, a
process that wipes out stored data. Computers that cannot be reused are
dismantled. Glass is separated from cathode ray tube monitors, processed with
acid to remove lead, and broken down into sand as a raw material for "green"
bricks. Parts made of plastic, or metals such as iron and aluminium, are
separated and sent for recycling. Circuit boards, which contain toxic
substances, are sent overseas for further processing. Students, the elderly, the
disabled and low-income earners can, with a social worker's referral, buy a
computer for HK$998. The computer, with a Pentium 4 processor, comes with an LCD
monitor and is loaded with an operating system and office and anti-virus
software. So far, the workshop has given away or sold 40,000 computers to the
needy. It also hires low-skilled youngsters and people from ethnic minorities,
and gives them training. The Jockey Club last month donated 3,800 old betting
terminals. Mimi Cunningham, the club's director of human resources and
sustainability, said the donations benefited both parties. "We can handle our
unwanted terminals and recycle those parts which still have a value. At the same
time, we can support the workshop's operation and provide job opportunities to
young people," she said.
Manila officials admit errors in hostage
crisis - Inquiry hears how national police chief left midway, assault was
bungled - Hong Kong Chief Inspector Wan Siu-hung before the start of the Manila
inquiry.
Hong Kong's John Woo Yu-sen gets
top award at Venice film festival - The Venice film festival yesterday honoured
world-renowned director John Woo Yu-sen, the first Chinese filmmaker to receive
a Golden Lion lifetime achievement award at the world's oldest film festival.
"When [festival director] Marco Mueller mentioned he was giving me this lifetime
achievement award, my first reaction was of shock," Woo said. "The second
reaction was I thought he was kidding." Mueller said Woo had "the perfect union
of Chinese tradition and avant-garde films". Born on the mainland and bred in
Hong Kong, the 64-year-old, who recently returned to China after 16 years in
Hollywood, said: "I'd like to be a bridge between the West and the East." Woo,
best known for his choreographed action sequences, was active in Hong Kong
during the 1970s and 80s. In 1989 he released The Killer, which helped him make
the jump to Hollywood. After his return to China, he directed the war epic Red
Cliff, the first film to earn more than 300 million yuan (HK$342 million) on the
mainland. He said in Venice: "Since I'd been working in Hollywood for over 16
years and learned a lot ... it is about time to bring what I have learned in
Hollywood into Asia." Through films John Woo becomes bridge between cultures -
The 63-year-old Woo -- best known for his 1987 classic A Better Tomorrow and The
Killer two years later -- said he dedicated the Golden Lion prize to his mother,
who he said was the first person to take him to the cinema and who encouraged
him to follow his cinematic dreams, and to fellow director Cheh Chang, Woo's
mentor, who died eight years ago at the age of 79.
Retiring Jockey Club chairman John Chan Cho-chak said in a newspaper interview
that young people keen to buy their first home should get a small one first and
wait until they can afford something bigger. I agree. However I realized that,
at the beginning, Chan worked for three years and then spent HK$70,000 on a
1,200 square foot home in a nice area thanks to financial help from his father.
Don't forget, HK$70,000 four decades ago is equivalent to several million
dollars today - Chan's family must have been quite well off. I hope readers do
not build up unrealistic expectations and think that like doctors and lawyers,
who like to buy their first flats in the Mid-Levels, everyone looking for their
first home should buy premises of more that 1,000 sq ft. I bought my first home
in early 1991, a 400 sq ft flat on a medium- sized estate in Tsuen Wan. It cost
HK$800,000 and I also had to borrow money from my family to realize my dream.
Recent transaction records of the estate indicate that a similar flat today
would go for between HK$4 million-HK$5 million, with many finding the cost
acceptable. Based on a HK$1.5 million price tag, the average annual rise would
only be about 3 percent over the past 20 years. It has not gone up too much.
Media guru KK Tsang, CEO of GroupM, takes a candid look at life.
The rise of factory workers'
salaries in China's coastal provinces has raised concern that many international
manufacturers will relocate to lower-cost countries such as Indonesia, Vietnam
and Cambodia. But as China has built an efficient transport network, and its
massive population provides a good market for consumer goods, multinational
firms would like to maintain their exposure there. These companies will be able
to absorb the relative small labor cost increase. But a labor shortage will
intensify in parts of China, especially when many find jobs nearer their
hometowns as factories move inland. With these factors in mind, I recommend Chen
Hsong Holdings (0057). The 50-year-old company which makes plastic injection
moulding machines is expecting more orders from its top clients. They include
Foxconn (2038), TPV Technology (0903) and VTech (0303). Chen Hsong's net profit
rose 78.9 percent to HK$154 million for the year year ended March. Standard
Chartered Securities targets it at HK$4.25. Closing yesterday at HK$2.90, Chen
Hsong now looks like a good buy. Dr Check and/or The Standard bear no
responsibility for any investment decision made based on the views expressed in
this column.
Highlights of China Int'l Cashmere
Design Contest.
An air-cushion boat of the
Chinese navy patrols in the waters of the Gulf of Aden on Sept 2, 2010. The
boat, part of China's sixth naval escort flotilla for the Gulf of Aden and
Somali waters, patrolled against pirates for two hours near the vessels sailing
through the region. This is the first time the Chinese navy deployed the
air-cushion boat, carried by the amphibious landing ship Kunlunshan, on an
escort mission.
Investors eager for slice of China's
wedding cake - Having dated for three years, Wang Zhijun and his girlfriend
decided to tie the knot. Buried in piles of work, the couple, both marketing
managers at media companies in Shanghai, found it impossible to run through all
the preparations for their wedding. A one-stop wedding venue that provides
wedding photography, the ceremony, dresses and food came to the rescue. "The
company saved us from all the trips and work needed for the wedding from the
very beginning," said Wang, 30, who married his love last month at the Villa
Grandis near the Huangpu River. "They delivered a tastefully themed wedding
without dragging us from one place to another. All we needed to do was speak of
our expectations and wishes for the big day." A wedding ceremony that mixes
Western style and Chinese tradition followed by a banquet is favored by most
couples getting married these days. One-stop wedding venues, a trend picked up
from Japan, have now become popular in Shanghai, where six venues are operating.
They are also becoming more fashionable in other cities, including Beijing and
Suzhou. "People in Shanghai like fresh ideas," said Hu Guoping, a marketing
manager at Villa Grandis, a wedding service provider launched in 2008 with
investment from Japan. The store opened its second branch in Shanghai last year,
after its first outlet, in Nanpu district, was a great success. The average
couple using the Villa Grandis service spends 130,000 yuan ($19,000) to 150,000
yuan, a figure that is much higher than the national level of 60,000 yuan,
according to Shi Yu, vice-director of the Committee of Wedding Service
Industries of the China Association of Social Workers, who spoke to China Daily
during the Beijing Wedding Expo on Friday. The wedding house service is a
natural development in China's wedding market to better integrate various
wedding services, a result of heated market competition, Shi said. "Such a
one-stop wedding provider is booming in many cities," he said. "Investors are
eager to get a share of the big cake." In Beijing, there are 1,168 registered
wedding planning companies and 4,650 registered wedding venues and service
providers, Shi said. In the past decade, about 9.12 million couples have married
each year, creating a huge market for wedding products. In 2009, direct
consumption as a result of weddings exceeded 600 billion yuan and more money is
pouring into the sector, Chinese media reports said. Spending on weddings last
year increased by 40 percent compared to 2006 and is growing by about 10 percent
annually. Other sectors that benefit from weddings include the auto, property,
decoration and tourism industries, Shi said.
IMAX, the Canadian operator of large-screen movie theaters, is set to open 80
theaters in China over the next couple of years. And its overall goal is to open
250- 300 theaters in China. This will make China the second largest market in
the world for IMAX, and allow IMAX to claim the title of largest foreign movie
exhibitor in China. Calling it a win-win situation for both China and IMAX,
Rechard Gelfond, chief executive of IMAX Corp, told Xinhua in an interview that
"I think there's enormous opportunity (for IMAX) to expand in China. We'll
absolutely aggressively pursue that opportunity." Two new trends in China's
cinema industry have given IMAX impetus to pursue its ambitious business agenda,
said Gelfond. First, he anticipated that many more movie theaters of all kinds
will be opened in China owing to the rapid growth of the cinema industry. For
instance, on the regular screen side, there will be 20,000 cinemas in next five
years in China, compared to the current 5,000 ones and 1,500 three years ago.
"The Chinese government has moved the responsibility for cinema from the
cultural office to the commerce office," said Gelfond. " They set up very
aggressive targets for the growth of cinema in China." Second, Gelfond pointed
to how Chinese audiences are becoming more interested in premium viewing
experiences when they go to the movies. This is helping increase interest in
IMAX due to the giant screen and the high quality sound. "Our box-office
attendance has been getting better and better every year," said Gelfond. Take
the movie Avatar as an example, IMAX earned $24 million in China from that film,
which it played on just 13 screens, receiving almost $2 million per screen. It
represents 10 percent of IMAX's total box office revenue. Another example is
"Aftershock," the first Chinese language film IMAX released on par with the
Huayi Brothers, China's largest privately owned media group. The film has
generated more than $640,000 at the box office, for a per screen average of
approximately $55,000 for the opening weekend. IMAX and Huayi Bros Media
Corporation Ltd entered a partnership to release up to three mainstream Chinese
pictures in China in last June. "I'd like to convert more films, especially more
Chinese language films with splendid visual results, to IMAX format films.
Aftershock is a bit of experiment." said Gelfond. "We're continuing talks with
Chinese directors and local studios." Gelfond's plan is to convert three to four
Chinese movies a year in the future. The big challenge, he said, is to identify
the right blockbusters, since IMAX is best for blockbusters, but fewer big
budget films are been made in China compared to the US. Starting to explore
opportunities in China 12 years ago, Gelfond now has built many partnerships
with Chinese film companies for IMAX. "Most major exhibitors, such as Wanda
Cinema Line Corp, the No 1 cinema exhibitor in China, are IMAX's partners in
China," said Gelfond. Its partners also include Lumiere Pavilions, a private
movie exhibition company, and Guangzhou Jinyi Film & Television Group. They all
have signed deals with IMAX to install more theaters in China. Since opening its
first cinema in China in 2001, in the Shanghai Science Technology Museum, the
Canadian firm now has 23 theaters located in big cities such as Shanghai,
Beijing, Chongqing, and Dalian. IMAX will focus its expansion plans on
second-and third-tire cities in China, using its portable theater technology to
speed up its pace of growth. Using the portable IMAX theater technology, the
company can operate IMAX screens even in towns without the necessary basic
infrastructure, such as multiplex-style theaters.
FAW-General Motor to double
China's light commercial vehicle capacity - General Motors said on Friday that
its joint venture with FAW Group plans to double production capacity of light
commercial vehicles in China. "We plan to be a major player in the light-duty
truck market in the short term and lead the market in terms of sales over the
long term," said David Dunahay, president of FAW-GM Light Duty Commercial
Vehicle Co Ltd. The Changchun, Jilin-based company is currently the
fourth-largest manufacturer of light-duty trucks in China. Set up last year, FAW-GM,
has sold 61,000 units till this August. "China's light-duty truck market
accounts for more than 50 percent of the global market. We are confident of
being the leaders in the segment soon," said Dunahay. As part of the capacity
expansion plans, FAW-GM will relocate its plant in Harbin, Heilongjiang
province. The new facility is expected to start operations by early next year.
Combined with the plant in Qujing, Yunnan province, its light-duty trucks annual
output capacity is to reach 200,000 units. The nation's robust economic growth
has also increased demand for vehicles to transport goods. High-end light
commercial vehicles offer relatively high profit margins and hence the sector
could see the entry of more foreign players, said analysts. Last year, China
sold 1.5 million light-duty trucks. Dunahay expects the sales to reach 1.8
million this year. Dunahay said that his company plans to upgrade the low-end
products to mid-end products in a bid to meet the market requirement. The
company's light-duty trucks are sold under the name of FAW Jiefang in China. In
January, it launched Jiefang 501, a mid-level light-duty truck. "China's
light-duty commercial vehicle market is extremely competitive. We must have
competitive products with competitive prices," said Dunahay. "We expect to
increase our market share by upgrading the products from low- to high-end," he
said. "Strong after-sales service network is also a key ingredient for our
success in China. Hence we are focusing more on upgrading our dealer-networks
and services," said Dunahay. FAW-GM plans to have 588 dealerships by the end of
this year, he said.
Whirlwind Beijing trip fans rumors Tang's moving in on top job - A whirlwind
trip to Beijing by Chief Secretary Henry Tang Ying-yen has sparked feverish
speculation he may soon be announcing an intention to run for chief executive in
2012. Tang's trip was announced only hours before he left yesterday morning and
he was back in Hong Kong by midnight. With both Chief Executive Donald Tsang
Yam-kuen and Financial Secretary John Tsang Chun-wah out of town on business
trips, Secretary for Justice Wong Yan-lung spent a few hours as acting chief
executive. During those few hours, Tang met with Zhou Bo, deputy director of the
Hong Kong and Macao Affairs Office of the State Council. The two exchanged views
on Hong Kong's role in preparing the national 12th Five-Year Plan and on Hong
Kong- Guangdong cooperation, a government spokesman said. Tang is one of a
handful being widely tipped as a candidate in the 2012 election for chief
executive. On Wednesday, industrial-sector lawmaker Lam Tai-fai said those
interested in running should announce their candidacy by the end of this year so
that residents can get to know them. Lam said if Tang is interested, he may have
to resign by year's end. He added that National People's Congress Standing
Committee member Rita Fan Hsu Lai-tai is also a likely candidate. She appears
fit and should be able to work for 10 years or more, Lam said. Regarding
cross-border cooperation, sources said the Hong Kong government earlier made a
number of proposals covering a wide range of issues. Since some of these involve
policy changes, help from the Hong Kong and Macao Affairs Office is needed to
coordinate with the different mainland departments. The issues include yuan
business, a possible expansion of the individual travel scheme and cross-border
transport. The sources said Beijing may have wished to inform Tang of the
preliminary response to the proposals so Hong Kong can work on them further. The
confirmed pacts may be included in the 12th Five-Year Plan - which will outline
the nation's development blueprint between 2011 and 2015. "The arrangement [of
Tang's visit] is rare," political pundit Johnny Lau Yui-siu said. " I think it
was more urgent than just the economic affairs between Hong Kong and the
mainland. The hostage incident should not be ruled out either." He said Beijing
is probably concerned about public discussion in Hong Kong over the
"sub-sovereignty" issue when dealing with foreign affairs. "Beijing is probably
worried the talk could become so heated it may affect its sovereignty," he said.
Tang was originally due to go on leave for five days from last Monday but this
was canceled in the aftermath of the Manila hostage tragedy. Tang last visited
Beijing in July for two days to discuss cross-boundary infrastructure. On that
occasion as well, the announcement was made just a day before the trip. Donald
Tsang yesterday concluded his three-day trip to Russia. And John Tsang is
leading a business delegation to meet with senior government officials of
Changchun municipality and Jilin province.
Hong Kong-flagged ship to blaze Arctic
route - A cargo ship flying Hong Kong's Bauhinia flag and carrying 41,000 tonnes
of iron ore will make maritime history this weekend when it sets sail from
Norway on a voyage through Russia's Arctic wastes to China. The bulk carrier
Nordic Barents is the first foreign-registered ship Russia has allowed to make a
voyage between two foreign ports via the country's northern sea route. The
Scandinavian owner and charterer of the ship aim to prove that the route long
called the Northeast Passage is a viable commercial alternative to southern
routes from Europe to Asia. The Nordic Barents is due to leave the small
Norwegian port of Kirkenes tomorrow, less than a week after a Russian-owned
tanker completed a 13,000-kilometre voyage from Murmansk to Ningbo. The SCF
Baltica, owned by privately controlled company Sovcomflot, carried 70,000 tonnes
of gas condensate, less than the 117,500 tonnes the ship was capable of carrying
because of draft restrictions through Arctic waters. If the Nordic Barents'
voyage to Dalian , Qingdao and possibly southern China is successful it will
effectively end a 500-year-old quest by explorers, shipowners and cargo owners
to find a northern route between Europe and Asia. Shipping and chartering
companies, including firms in Hong Kong, are viewing the voyage with keen
interest.
CLP in talks on saving art deco HQ -
Utility explores alternatives to demolition for tower already approved - Then
and now: the CLP Power building as it was in 1940 (left) and as it is today. It
has 78,000 square feet of floor space, but the 2001 plan for a residential tower
on the site allows 309,000 square feet. CLP Power (SEHK: 0002) is in talks with
the government about economic incentives to preserve its 70-year-old
headquarters in Argyle Street, Kowloon, as it seeks to guard redevelopment
rights granted nine years ago. Grade-one historic status was proposed by the
Antiquities and Monuments Office last year for the building at 139-147 Argyle
Street. The negotiation is based on an approved building plan for a 39-storey
residential tower atop a four-storey car-parking podium on the site that CLP
secured in 2001, which could be worth billions of dollars, a person in the
heritage-conservation field said. A CLP spokeswoman confirmed the utility had
had discussions with the government on "the need to balance between preservation
of built heritage for the benefits of the community and allowing individual
owners such as CLP to exercise the rights that come with ownership". "We are
constantly reviewing our need and requirement for our properties and currently
reviewing various options for our head office building," she said. A top
government official said it was having talks with a grade-one heritage owner,
without giving a name. "If negotiations bore fruit, the case would be another
example in which the government managed to secure preservation of privately
owned heritage by handing out economic incentives instead of buying out with
cash," the official said. The art deco building was opened in 1940 as the
utility, led by the Kadoorie family, extended the electricity supply for a
growing Kowloon. It marked a milestone in the development of the company and the
district, according to a heritage appraisal by the antiquities office.
Roger Garcia will return from USA to run
Hong Kong International Film Festival - Roger Garcia will return as executive
director of the film festival - a role he held in the 1970s. Inspiring young
movie-goers top priority for new film festival chief - Roger Garcia will return
as executive director of the film festival - a role he held in the 1970s.
Inspiring a passion for cinema among the next generation of movie-goers through
new technology will be a top priority for the city's new international film
festival chief. Film festival veteran Roger Garcia will return as executive
director of the Hong Kong International Film Festival at the end of this month,
a role he held in the 1970s when the event was run by the Urban Services
Department. He has since worked as a consultant for the festival. Garcia is also
planning initiatives to foster the talent of budding film programmers, writers
and critics in the coming years. Garcia's appointment was announced yesterday by
the Hong Kong International Film Festival Society. He takes over from Shaw
Soo-wei, who is leaving her position after two years of service. Garcia, who is
currently based in the US, will return to his city of birth to manage the
festival, as well as the Asian Film Awards and the Hong Kong-Asia Film Financing
Forum. A renowned programmer and curator of film festivals around the world,
Garcia described his new job as a homecoming. "I started my film career here,"
said Garcia, also an established film critic, writer and producer. Having been a
"film person" for 30 years, Garcia said he now hoped to show films as a group in
a festival that can articulate a vision of cinema. And the format for showcasing
those films may not be limited to the big screen. Garcia said he hoped to reach
a wider, and especially younger, audience through new technology. "People watch
films in every format they can think of, and we can use new technology to meet
the audience, such as by streaming films," he said. Garcia said he wanted to
develop the film literacy of younger viewers. "We are being bombarded by
Hollywood blockbusters, but it's important to keep the auteur and art films ...
keep the idea among the audience that cinema is a diversified culture." While
glitz and glamour have become an essential part of film festivals, the Hong Kong
event should also be about promoting local culture and talent, Garcia said. "The
Hong Kong International Film Festival is an important part of the Hong Kong
cultural landscape," he said, agreeing it was important for the West Kowloon
Cultural District to devote areas to cinema such as the theatres recently
proposed in one of the conceptual plans for the hub. Garcia said the plan
reminded him of Southbank in London. He recalled going to the theatre at
Southbank when he studied in England. "That was when I learnt about cinema as a
student," he said. As the festival's executive director, Garcia said he planned
to make the case for a theatre in the Kowloon arts hub that was dedicated to a
range of film genres. Although other film festivals have sprung up in the
region, Garcia believed the Hong Kong event, the first of its type in Asia,
still had its niche and was supported by strong programming and curatorship. But
he noted there was a lack of successors and he planned to cultivate curatorial
skills among the next generation. Grooming the next breed of writers and critics
is also on Garcia's mind. He said he hoped the festival could organise an event
similar to the annual Talent Press, which is run by the Berlin International
Film Festival's Talent Campus and open to young film critics and journalists
around the world. Whether or not sponsors could be secured would determine the
extent to which these plans could be carried out, Garcia said. "We are trying to
develop a new generation and promote film culture among a young generation who
will grow up and become ambassadors or commentators of films," Garcia said.
"[Sponsors] might not see the immediate return, but the return comes when the
young generation takes over in future." 
An international consortium founded in
Hong Kong launched the world's first universal standard for wireless battery
charging - Menno Treffers, the chairman of the Wireless Power Consortium,
unveils prototypes and soon-to-be-released mobile device chargers. An
international consortium founded in Hong Kong launched the world's first
universal standard for wireless battery charging yesterday, called "Qi", to cut
the last cord that limits mobility for smartphones, digital cameras, media
players and other consumer electronic gadgets. The Wireless Power Consortium's
new standard is expected to help speed up the ability of various consumer
electronics brands to bring compatible wireless charging products to market.
This will benefit consumers who have had enough with using different power
chargers and cables for a myriad of devices. Instead of plugging electronic
devices into a charger, consumers will be able to simply place their gadget on
top of a desk pad, which will charge their device wirelessly. Chairman Menno
Treffers said the consortium's goal was to "bring simplicity and convenience to
users", while making wireless power chargers ubiquitous. "Qi empowers
mobile-phone manufacturers to integrate wireless power receivers, the
semiconductor industry to incorporate the functionality into their chip sets,
and infrastructure providers to build chargers in homes, offices, automobiles,
hotels and furniture," Treffers said. According to market researcher iSuppli
Corp, shipments of consumer electronic products with wireless charging
capability will reach 234.9 million units by 2014 from 3.6 million units this
year. Treffers said hitting those numbers would be expedited by having a
universal standard with broad industry support. The consortium, which was set up
in December 2008, enabled that, he said. The group is looking forward to a
dialogue with the Chinese authorities that could lead to the standard being
officially recognised on the mainland, with consortium member Shenzhen Sangfei
Consumer Communications expected to help spearhead this effort. Petri Vuori, a
director of mobile solutions research and development at Nokia, said the
consortium was hopeful of wide acceptance on the mainland, where he said many of
the most popular consumer electronics devices were being made and bought by
consumers. The association had 59 members as of last month, including Nokia,
Samsung Electronics, HTC, Research In Motion, LG Electronics and Sony Ericsson.
Other members are industry leaders in consumer electronics, semiconductors,
mobile components, batteries and wireless power technology. Among the first
products to be certified by the consortium is the "Dragon Qi" charging pad from
local wireless charger maker ConvenientPower Group. This so-called wireless
inductive charger, available this month, can handle up to three devices,
regardless of manufacturer, at the same time. US-based battery maker Energizer
Holdings yesterday demonstrated its inductive charger, which will initially be
available in North America next month.
Hong Thai Travel pays tribute to
tour guide Masa Tse Ting-chunn killed in Manila - Hundreds attended a memorial
service in Kwai Chung yesterday organised by Hong Thai Travel for hostage crisis
victim Masa Tse.
Manila officers raps HK police over bullets in luggage earned them a reprimand
from a senior Philippine justice official. Philippine justice undersecretary
Jose Salazar holds up plastic bags containing bullets found in the luggage of
Chief Inspector Li Kwai-wah. 
Manila considers compensation for
bus hostage bloodbath - The Philippines is considering paying compensation to
families of eight Hong Kong tourists who were killed when their bus was hijacked
by a sacked policeman, an official said on Friday. The Chinese and Hong Kong
governments have demanded an exhaustive inquiry into the August 23 bloodbath in
Manila, while the Hong Kong legislature on Thursday passed a non-binding
resolution demanding Manila apologise and pay compensation. As the official
inquiry continues, President Benigno Aquino formed a cabinet-level committee to
look into possible indemnity for the victims, said Budget Secretary Florencio
Abad, a member of the committee. “I don’t think the issue here is compensation
alone. What is important is to be able to show solidarity. We understand what
happened. We are sympathetic to them,” Abad told reporters. He would not give an
amount or timetable for giving compensation, but added that the committee was in
constant touch with the governments in Hong Kong and China. “It is a question of
timing. What is important is we are prepared, we have options,” Abad said.
Aquino meanwhile told reporters on Friday he expected the official inquiry into
the carnage to conclude next week, and has promised to provide a copy of the
report to the Hong Kong and Chinese authorities. He pledged to do all he could
to prevent any repetition of the bloodshed. “By next week... I hope we can
demonstrate the capacity of our security forces in securing the people,” Aquino
said. The deaths, after a 12-hour ordeal broadcast live on television around the
world, triggered outrage in Hong Kong over the mishandling of the crisis.
Student activist Christina Chan
Hau-man was found not guilty in Eastern Court on Friday of assaulting a
policewoman during a protest on New Year's Day.
Risqué business - A Hong Kong film
about 'bad girls' selling sex online depicts them as anything but victims - A
scene from Kenneth Bi's new film, ''Girl$'' - Girl$, directed b Kenneth Bi, is
the latest Hong Kong bad-girl movie. Addressing the rise of teenagers
advertising their sexual services online, it features four independent-minded
young girls with few scruples about what they have to do to fulfil their
material desires. "These girls are not dumb - they are out to exploit guys,"
says Bi of his characters in Girl$. Yet, he did not set out to make a film to
judge these women. "The film has no moral position: that's the way I wanted it."
Art-house films about poor, victimised Chinese women tend to be the productions
that win awards at European film festivals, Bi says. "I always hated this
position - why do we have to play victims to get European sympathy? And here's a
chance to look at these prostitutes that are not victims - that's why I'm
excited to make this film." Bi says he's not worried about the reaction from
conservative groups. "The film is just a depiction of these girls. The truth is
there are hundreds or thousands of these girls out there. How did it come to
this? Is it because of films [about prostitution]? I don't think so. There are
good movies about good people, but we don't see the influence. It's the value
system in place from the 1970s and 80s; we are now seeing the disadvantages of
this. In Hong Kong we always place money before everything - before morals and
principles; these young girls are paying for their parents' sins or their
misunderstanding of what life is about." Girl$ has barely figured in the
mainstream media, unlike in 1982 when the release of Lonely Fifteen ignited
widespread moral outrage for its depiction of schoolgirls dabbling in
prostitution and drugs. "It's a topic nobody dared touch then," says Michael Mak
Dong-kit, who worked on Lonely Fifteen with his brother, Johnny. Inspired by
Christiane F., Uli Edel's 1981 German film based on the real-life ordeals of a
12-year-old, drug-taking prostitute, Lonely Fifteen was lambasted by many,
including Szeto Wah, then the chairman of the Professional Teachers' Union, Mak
says. "He questioned how we could present such a ugly picture of things. People
were hysterical in their condemnation, and in the news reports." Such an outcry
is unimaginable these days, Mak says. Hong Kong's sex-obsessed tabloid culture
and the internet is awash with video clips of teenagers up to no good. "It's all
down to the power of the internet - nothing looks outlandish any more. Back then
[Johnny Mak] and I were making this television serial about 10 bizarre crimes in
Hong Kong. Today, people would say, `What's so strange about them? We've read
and seen everything already.'" Bi agrees: "The media does what films used to do
and still do - exploit the subject matter and sugar-coat it with a grain of
morality. Before, you just read about those things; now, you can look at the
sexy pictures and be fascinated by them." 
Hong Kong Women at work put spouses
first - given up promotions because they do not want to outshine their spouses.
Some working women have given up promotions because they do not want to outshine
their spouses. Equal Opportunities Commission chairman Lam Woon-kwong said that
in his years in the public sector, he has seen "not an inconsiderable number" of
females holding back their career advancement for fear of overtaking their
husbands, some retiring earlier to devote more time to their families. "It's
free choice but I hope that is not a conscious choice conditioned by social
stereotypes disguised as free choice," Lam said at the launch of a women's
leadership program yesterday. According to the Census and Statistics Department,
women make up 53 percent of the Hong Kong workforce but hold only 29 percent of
leadership positions. This compares with the female representation rates in the
United States and Australia of 43 and 37 percent respectively, according to UN
figures. Also, Hong Kong female representation at senior levels across
professions and industries is low, with 19 percent in the legislative and
district councils, 10 percent at the Bar, 14 percent in academia, and 26 percent
in business management and administration. The Women's Foundation executive
director Su-mei Thompson said that the government and business should do more to
enhance the status of women and help narrow the leadership gender gap. "Things
will not change until there is a critical mass of women in leadership
positions," she added. The gender benchmark of the appointment of members in
advisory and statutory bodies has been raised from 25 to 30 percent since June
this year. Thompson urged the government to introduce flexible family-based
working policies and improve child-care services to help women concerned about
family who also wish to pursue their career. According to Thompson, there are
many capable women who are not achieving their full potential and because of
social stereotypes, they are not brave enough to change and they lack role
models. The foundation is launching a mentoring program for women leaders to
address the low number of women in senior management. Sixty mentors and
protegees will be joining the one-year program. Several corporations such as
JPMorgan and Kimberly-Clark are collaborating.
China taps Canadian fund on rival Potash
bid - Mainland’s state-owned Sinochem has reportedly hired HSBC to evaluate
options to bid for Canada’s Potash Corp while reports say China Investment Corp
may also be seeking a bid of some kind. Chinese and other investors have
approached at least one big Canadian pension manager about a bid for Canada’s
Potash Corp to rival BHP Billiton’s US$39 billion hostile offer. The disclosure
by Alberta Investment Management Corp, which manages some C$70 billion (HK$517
billion) in public sector pension funds, is one of the first pieces of hard
evidence to back up speculation that mainland is looking for a way to derail a
takeover of Potash Corp by the powerful Anglo-Australian miner. AIMCo said it
was not interested, because the economics did not work. Mainland’s state-owned
chemicals giant Sinochem has reportedly hired HSBC (SEHK: 0005) to evaluate
options, and chatter persists that sovereign wealth funds, such as $300 billion
China Investment Corp, may also be seeking a bid of some kind. Given the size of
the deal, all major investment banks not working with BHP or Potash Corp are
pitching possibilities to mainland clients, multiple investment banking sources
in Asia have said. But so far, no formal counter bid has emerged, only talk. The
hefty price tag is still prohibitive for many potential suitors, bankers say.
Shares in Potash closed up 1.8 per cent at US$148.55 on Thursday, 14 per cent
above BHP’s US$130 offer price, while BHP shares edged up 0.3 per cent on
Friday.
China Southern Airlines began offering
direct flights on Thursday from Beijing to Tashkent, capital of Uzbekistan, to
meet rising air travel demand and further strengthen bilateral ties between the
two countries. Flights to Tashkent, the largest city in Central Asia, depart
Beijing at 4:20 p.m. and arrive at 7:35 p.m. (local time). Return flights from
Tashkent leave at 8:55 p.m. (local time) and arrive in Beijing at 5:50 a.m.
Flights are scheduled every Thursday and Sunday. An Airbus 330-200 plane will be
used for the flights. The airline provides passengers with 100 classic movies
and 1,000 songs to entertain them during the long flight. It also serves a
variety of halal food. An executive with the company said the launch of the
route would facilitate personal exchanges and trade relations between China and
Central Asia.
Noodle makers show their skills at a
Shanxi noodle culture exhibition in Taiyuan, capital of North China's Shanxi
province on Sept 3, 2010.
Move mulled to close door on
property migrants - Cash-rich overseas investors planning to win Hong Kong
residency through buying property could be in for a shock. Concern is growing
that the Capital Investment Entrant Scheme helps to fuel the overheated property
market, and the government is considering whether to cut property out of the
special scheme. Official figures show 41.3 percent of the investments by these
residency investors comprised real estate in the first half of this year - a
jump of 17.9 percentage points from 2007. As the property market is super-
sensitive, a source revealed, the government is now assessing how amending the
scheme might affect housing prices. Nothing has been decided yet. A government
spokesman confirmed that a review of the scheme is indeed underway, and it is
due to be completed by the end of the year. Under the scheme, an applicant has
to have net assets of at least HK$6.5 million in the two years before an
application. Investors must put in not less than HK$6.5 million in either or
both real estate assets and financial assets such as equities and debt
securities. Executive Council convener Leung Chun-ying said he has not heard the
government has a plan to exclude property investments from the residency scheme,
adding that it would not be as simple as it appeared. If real estate investments
are not counted in the scheme, he added, the government may have to consider
whether it should continue to allow foreign companies to acquire premises for
their staff and to allow non-local shareholders of local firms to buy premises
in Hong Kong. Lawmaker Priscilla Leung Mei-fun called on the government to raise
the minimum investment amount to HK$10 million instead of excluding property
investments from the scheme. "Many mainlanders prefer investing in the property
market," she said. "Some of them don't know much about the stock market."
Excluding property investments may drive mainland investors to move to other
places, Leung added. Legislator Chan Kam-lam of the Democratic Alliance for the
Betterment and Progress of Hong Kong said if property investments are counted
out of the scheme "it seems to suggest that the city is putting the blame for
home speculation on those immigrants. It is unfair." He suggested the government
double the minimum investment amount to HK$13 million. Bauhinia Foundation
Research Centre chairman Anthony Wu Ting- yuk said overseas investors should not
be banned from buying property. Excessive intervention is not desirable in a
free market economy. Hang Lung Group chairman Ronnie Chan Chi-chung said: "If
you ask me, I don't care whether they live in their local homes or not. I have
properties in Singapore and the United States, but I don't live there." He
called on the government to be cautious as it weighs the issue. "When it comes
to controlling demand through preventing outsiders from buying things in Hong
Kong, we have to be very careful. Our success lies in the complete freedom in
society. A very free market economy. "You should not spoil the ship for a
ha'porth of tar."
Forensic tests on Manila bus
completed - Hong Kong police forensic experts examine the tour bus used in the
Manila hostage-hijacking on August 23 at Camp Bagong Diwa in Taguig City on
Monday. Secretary for Security Ambrose Lee Siu-kwong said on Thursday Hong Kong
police officers had finished their forensic examinations of the ill-fated Manila
tour bus. Lee told lawmakers police now planned to submit their findings to
Coroner Michael Chan Pik-kiu. He was speaking in the Legislative Council where
lawmakers are holding a special meeting to discuss the Manila hostage crisis.
Last week, eight Hong Kong tour-group members died in the Philippine capital.
Lee noted that Chief Executive Donald Tsang Yam-kuen had already written to
Philippine President Benigno Aquino demanding a full report. “The president and
ministers of the [Philippine] justice department have promised several times
they would conduct a complete, fair and full investigation,” Lee noted.
Legislators also discussed a motion moved by Legco House Committee president
Miriam Lau Kin-yee. This expressed lawmakers’ anger with the Philippine
government’s handling of the rescue operation. Legco also observed a minute
silence to mourn the victims. Miriam Lau requested the Hong Kong government take
a strong stand on the issue. “The investigations are being conducted by a
government which handled the hostage crisis poorly,” she added. Lau urged the
Philippines government to publicly apologise to victims’ families and to offer
compensation. During the discussions, other legislators also strongly criticized
the way Manila had handled the crisis.
Esprit's second half profit down 19pc
- Esprit Holdings on Thursday posted a 19 per cent fall in fiscal second-half
profit, lagging forecasts amid slower sales growth. Esprit Holdings (SEHK:
0330), the world’s No 8 apparel retailer by market value, on Thursday posted a
worse-than-expected 19 per cent fall in second-half profit amid slower sales
growth and euro weakness, and said the wholesale market will remain challenging
to the end of the current year. “We expect the wholesale market environment in
the first half of the new financial year to remain challenging,” the company
said in a filing to the Hong Kong bourse. “The wholesale order book between July
and November 2010 shows a mid-single-digit year-on-year decline in local
currency and it is improving month by month to November 2010 – particularly
strong in flash and repeat orders.” Analysts said the lower euro and weak
wholesale business had offset retail sales growth, affecting earnings. The
appreciation of the yuan and soaring rental and labour costs in Asia could
impact profit margin in the year ahead. The Europe-focused fashion group said it
had earmarked HK$2.2 billion for capital spending in the new financial year, of
which HK$738 million would be invested in opening about 100 new stores and store
expansion, as well as HK$406 million for refurbishing existing stores. The
company said it planned to expand the overall volume of retail selling space by
5-10 per cent in the fiscal year ending June next year. Esprit posted a net
profit of HK$1.53 billion for the second half of its fiscal year ended June,
down from HK$1.89 billion a year earlier. The result lagged an average estimate
of HK$1.73 billion from 13 analysts polled by Thomson Reuters I/B/E/S. Competing
with Hennes & Mauritz, Inditex, and GAP, Esprit reported a net profit of HK$4.23
billion for the fiscal year ended June, against a consensus forecast of HK$4.439
billion and a year-earlier profit of HK$4.745 billion. Shares of the company
have fallen more than 13 per cent so far this year, compared with a 4.5 per cent
fall by the Hang Seng Index. The stock was up 1.4 per cent by midday on
Thursday.
Hong Kong's SHKP Beas River house
at US$20,000/SF - SHKP Beas River house to carry HK$100m price tag - Rural
Sheung Shui touted as area for rich and famous. Most property buyers probably
wouldn't fancy Sheung Shui, close to the Hong Kong-Shenzhen border, as a
prestigious location. But developers seem to think otherwise. Sheung Shui's Beas
River, about five minutes' drive from Huanggang opposite Lok Ma Chau, is fast
becoming the new area for the rich and famous. Close to Beas River Country Club
and Hong Kong Golf Club, houses at St Andrews Place and Royal Oaks have been
going for HK$12,000 to HK$15,000 per square foot. Now Sun Hung Kai Properties (SEHK:
0016) has announced that it will offer its upcoming luxury housing project,
Valais, in the Beas River area, at a new record price in the New Territories.
Valais has 300 detached and semi-detached houses ranging from 2,600 to 4,500
square feet. SHKP plans to offer the cheapest unit at about HK$30 million, while
the most expensive house would come with a price tag of more than HK$100
million, or more than HK$20,000 per square foot, said Victor Lui Ting, executive
director at Sun Hung Kai Real Estate Agency. Given the going rates in the
neighbourhood, is SHKP aiming for the moon? Some analysts think so. "It is a
marketing gimmick. Any owner can ask for HK$100,000 per square foot, that does
not necessarily mean they will get it. We only look at transaction prices," said
analyst Paul Louie at Nomura International (HK). Eric Yuen, head of research at
GuocoCapital, said the SHKP brand could indeed sell its products at a premium
but it is hard to predict the sales outcome at this stage. "With prices like
that, the developer is clearly more interested in achieving high prices for the
project rather than generating a good turnover by volume," he said. The pricing
strategy underscored the limited supply of top-notch houses in Hong Kong, he
added. Valais would be targeted at Hong Kong businesspeople and affluent
mainlanders, said Lui. Danny Lau Tat-pong could be the kind of buyer SHKP is
angling for. Lau travels to Dongguan three times a week to visit his factory and
spends two days in his office in Kwun Tong. He lives in a 2,000 square foot unit
in Kowloon Tong, which is conveniently located for access to both his Hong Kong
and mainland offices. But Lau doesn't find the proposed prices of Valais
appetising. "I have friends living in Beas River. They just paid HK$7,000 per
square foot three years ago. It is getting expensive as prices have increased to
HK$11,000 per square foot now," he said. "[But] at that price level, I would
prefer to buy a house in Clearwater Bay as it is closer to my office in Kwun
Tong." Property agents, however, believe Valais would be sought after. Alfred
Cheung, sales director at Centaline Property Agency's northwest New Territories
branch, which focuses on broking luxury projects, said SHKP has created a loyal
customer base in the mainland. "They just buy the [SHKP] brand even if the
project is located in a remote area," he said. Assuming the entry level price
for a 2,600 square foot house will be set at about HK$30 million, or HK$11,600
per square foot, Cheung believes it to be reasonable. Given the high level of
privacy, Cheung says movie stars and celebrities would be quite interested in
Valais.
Lufthansa's third Airbus A380 'Peking' starts regular service to Beijing China -
Lufthansa's third Airbus A380，which bears the name Peking, arrives in Capital
International Airport in Beijing, Sept 2, 2010. Lufthansa has launched Airbus
A380 flights between Frankfurt and Beijing.
A photographer takes pictures of
fireworks during a ceremony to commemorate the 65th anniversary of the end of
World War II in Heihe, Northeast China's Heilongjiang province, Sept 2, 2010.
EU's Ashton in Beijing for
trade talks - European Union's Catherine Ashton shakes hands with Foreign
Minister Yang Jiechi in Beijing on Thursday. EU foreign policy chief Catherine
Ashton met Foreign Minister Yang Jiechi on Thursday as she looked to wrap up a
visit thought to have included talks on trade, environment and security issues.
The Beijing meeting with Yang came a day after she took part in the inaugural EU-China
High-Level Strategic Dialogue in the southwestern city of Guiyang – a forum
intended to keep the two sides in contact on major issues. Ashton’s talks in
Guiyang with State Councillor Dai Bingguo – a senior foreign policy official –
helped promote mutual understanding, she told Yang. Through the dialogue, “we
know the issues better, and we understand better, and I think we can now turn
that... into pursuing some of the issues in greater detail,” she said before
going into talks with Yang. Neither side has given details on the substance of
their discussions but the EU had indicated earlier they were to have included
trade, climate change, and security issues such as the Iran and North Korea
nuclear standoffs. Ashton was also due to meet Premier Wen Jiabao later on
Thursday and hold a press briefing. Dispute thriving economic ties, relations
between China and Europe have been strained by trade disputes, with European
firms complaining Beijing is not doing enough to ensure a level playing field
for European companies in the country. It has also called for more aggressive
actions by key producers of greenhouse gases, such as China, to curb their
emissions. China, meanwhile, said in July it was opposed to tough new sanctions
imposed by the European Union on Iran over its contested nuclear programme,
calling for more talks to resolve the standoff. China is now Europe’s
second-biggest trading partner after the United States, according to the EU.
China is also Europe’s fastest-growing export market.
China Tibetan canyon Yarlung
Tsangpo entrance to be site of top hotel - The Yarlung Tsangpo Canyon in Tibet,
with spectacular views and limited access. The canyon's mouth is the intended
site of a hotel. A five-star hotel will be built at the entrance of Yarlung
Tsangpo Canyon - regarded by some as the longest and deepest in the world,
certainly one of the least accessible, and yet probably the most scenic in Tibet
- mostly to attract conference business, according to official media. The hotel
would stand on a mountain in the remote town of Pai, providing 150 rooms for at
least 300 guests at a construction cost of 100 million yuan (HK$114 million) and
with minimum carbon dioxide emissions, Xinhua quoted Liu Jianyun ,
vice-president of Tibetan Tourism, as saying. Liu said his company, based in
Lhasa and listed on the Shanghai Stock Exchange, had won the central
government's approval to set up a world-class conference centre. An increasing
number of demanding and prestigious guests found it impossible to stay in the
beautiful but ecologically fragile and politically sensitive area of eastern
Tibet. The only accommodation available at present was youth hostels and guest
houses run by local Tibetans. To create a different atmosphere, the hotel will
be run by an overseas management team and become the first major facility in
Tibet whose operations were entirely entrusted to foreigners. The mainland
spends more than 100 billion yuan on meetings every year. In the past, most
meetings have been held by the government, but in recent years, more overseas
companies and organisations have been choosing the mainland for their
conferences - a tribute to the country's growing economy. But though the
canyon's scenery is certainly remarkable, the choice of location left Yang Yong
, an explorer who was among the first adventurers to trek through the canyon in
1998, scratching his head. "Pai used to be a transaction centre for military
personnel and materials. It was at the mouth of the canyon but not part of it,"
he said. Yang and his teammates spent 35 days trudging for about 200 kilometres
through the heart of the canyon, where the river sharply turned south and
plunged more than 2,000 metres. The view was spectacular, he said, but the
dangers were many - landslides, snakes, disease-carrying mosquitoes, sudden
floods - and any one of them could keep you from making it home.
China Manufacturing sector ends
3-month decline - Trend expected to stay sluggish on property curbs - Inspecting
newly made items at a vehicle components factory in Suining, Sichuan province.
Manufacturing has staged a small rebound. The recent slowdown in the country's
manufacturing sector reversed course slightly last month, but it was still
manufacturing's second-lowest performance in 18 months, and economists generally
expect it will remain sluggish owing to efforts to cool the property market. The
Purchasing Managers' Index (PMI) compiled by the China Federation of Logistics
and Purchasing on behalf of the National Bureau of Statistics, ended a
three-month decline and edged up to 51.7 last month from 51.2 in July. The
improvement, which was to a level slightly better than economists' forecast of
51.5, was driven by higher output and new orders. A reading above 50 indicates
expansion, while one below 50 signals contraction. The findings of a PMI survey
compiled by HSBC (SEHK: 0005, announcements, news) /Markit also showed a slight
improvement in the manufacturing sector, which was sharply off its near-record
growth trend at the beginning of this year. The HSBC/Markit PMI rose to 51.9
last month from 49.4 in July, buoyed by stronger new orders from the domestic
market. "China is moderating rather than melting down," said HSBC chief
economist Qu Hongbin. "Domestic demand will be resilient and uphold around 9 per
cent economic growth in the second half and next year, while external demand is
more likely to worsen in the coming months." The official PMI showed that new
orders jumped to 53.1 last month from 50.9 in July, while new export orders
edged up to 52.2 from 51.2. This means domestic demand grew faster than that
from overseas. Morgan Stanley chief economist Wang Qing said the manufacturing
sector slowed as a result of cooling measures in the property market and efforts
by local governments to meet full-year energy conservation targets. "With no
sign that the tightening on the property sector will be loosened soon,
industrial production will likely remain weak before policy turns
growth-supportive in the fourth quarter of this year," Wang said. Mizuho
Securities Asia chief economist Shen Jianguang said the two sets of PMI indices
signalled economic activity was gradually decelerating and that the country
seemed to be on track for an economic "soft landing". The official PMI found
that 14 out of 20 industries recorded expansion last month, but industries such
as chemical fibres, rubber and plastics and textiles slipped into contraction.
Meanwhile, the government's China Automotive Technology and Research Centre
revealed that retail deliveries of cars, SUVs and multipurpose vehicles rose
59.3 per cent last month to 977,300 units from a year earlier after Beijing
subsidised fuel-efficient models. The growth was much faster than the 15.4 per
cent increase in July to 822,300 units. This is despite the fact that the
government raised the consumption tax for small cars to 7.5 per cent from 5 per
cent. A Credit Suisse research report estimates that car sales will grow in the
next few months when there are more holidays, including National Day. It says
sales will probably be spurred largely by discount offers. However, Credit
Suisse says it expects car manufacturers and dealers to remain cautious about
sales in the rest of this year.
China Strategic chief hits out
at Taiwanese regulators - Raymond Or Ching-fai, the chief executive of China
Strategic Holdings, has criticized Taiwan's regulators for rejecting the
company's US$2.15 billion bid with partner Primus Financial Holdings to buy Nan
Shan Life Insurance from the American International Group. The Financial
Supervisory Commission, which vetted the sale, said it was concerned that China
Strategic, a battery maker, lacked experience in running an insurance business.
It also said that the buyers had failed to demonstrate they had the ability to
raise funds in the future, and that their commitment to operating the insurer
for the long term was questionable. It also questioned the stability of the
shareholder structure of the buyers. China Strategic has been in talks with its
private-equity fund partner Primus and AIG on what to do next since Taiwan's
Investment Commission and the FSC rejected the bid on Tuesday. Or said they had
not reached a decision on whether they would appeal. The Hong Kong buyers had
yet to receive an official written statement on the rejection of the bid from
the Investment Commission of Taiwan's Ministry of Economic Affairs, which
approves foreign investments. Or said he did not understand the regulators'
reasons for rejecting the bid, saying that there were some "gaps" in the
regulators' knowledge of the operations of international capital markets and of
fund-raising exercises. He also questioned whether the Taiwanese regulators had
followed "standard protocol" when they examined the bid. There is continuing
speculation that Taiwan scrapped the bid because the proposed buyers had close
associations with the mainland. Or in June had to resign from the Chinese
People's Political Consultative Conference after politicians and regulators
expressed concern about a possible conflict between his advisory role in the
mainland body and his leadership of the bid. In July, Or and three other board
members of a consortium on the bid were barred by the Taiwanese government from
serving as directors of the company because they failed to provide documents to
prove that they were not mainland residents. Or said he was only a member of the
local Beijing CPPCC and not the national committee. He said the FSC had advised
the company that bidders only had to disclose whether they were members of the
national committee. "While I respect and understand the regulators' stringent
requirements, I believe when it comes to examining the deal they had been
influenced by the legislators, who were in turn influenced by the media, which
is owned by people with vested interests in Taiwan." Trading of China Strategic
shares has been suspended since Tuesday.
Ma pledges judicial independence - Hong
Kong's new Chief Justice, Geoffrey Ma, has begun his first day in the post by
pledging to uphold the rule of law and the independence of the judiciary. On his
first day in his new job on Wednesday, Chief Justice Geoffrey Ma Tao-li said he
was committed to upholding Hong Kong's judicial independence. Ma, 54, is the
territory's second chief justice since the 1997 handover. He succeeds Andrew Li
Kwok-nang – who retired on Tuesday. Speaking to local media, Ma said the job was
a great honour. “I am fully aware of the community’s expectations,” he added. Ma
had been in private practice since 1978 until he joined the Judiciary as a Judge
of the Court of First Instance of the High Court in December 2001. He was
appointed Chief Judge of the High Court in July 2003, where he led the High
Court, both judicially and administratively. Ma has considerable experience in
various areas of civil law.
Luxury site sets Kowloon record at
land auction - Steven Ho Shut-kan of Kerry Properties. A luxury residential site
in Kowloon topped records at a land auction yesterday, underpinning the buoyancy
of the runaway property market. Property sales, which had fallen in response to
recent government cooling measures, are now expected to rebound after Kerry
Properties (SEHK: 0683) won the most expensive site in Kowloon in terms of floor
area price. Prices have exceeded estimates in land auctions held since the
government introduced measures to slow the property market last month. Singapore
joined Hong Kong in imposing anti-speculation measures this week, underscoring
the risk of asset bubbles in Asia as record-low US interest rates and the
region's economic recovery spur demand. Kerry beat 15 other bidders to snap up
the site at 1 Ede Road in Kowloon Tong for HK$1.285 billion, or HK$16,587 per
square foot. This was 95 per cent higher than the opening bid of HK$659 million
and at least 17 per cent above market expectations. The previous record for
Kowloon was set in June, when Sun Hung Kai Properties (SEHK: 0016) paid
HK$12,540 per sq ft for a site in Ho Man Tin. Ricacorp Properties said weekly
sales at 50 big housing estates across the city fell 9 per cent to a four-month
low of 302 last week. Agents expect sales to pick up this week. Hong Kong's home
prices have surged about 45 per cent since the beginning of last year, prompting
a series of cooling measures including reducing the availability of mortgage
loans for luxury and investment properties as well as tighter control on
speculative selling. Leo Siu, a senior sales manager at Midland Realty, said
many flat owners in Kowloon Tong had raised their asking prices after the
auction. "One vendor raised the asking price of his 2,652 square foot duplex
flat at One Beacon Hill by 10 per cent to HK$55 million. Another owner at the
estate raised their asking price by 11 per cent to HK$80 million." Raymond So
Wai-man, dean of the business school at Hang Seng Management College, said the
record-breaking result would boost prices in the secondary market. "Property
sales have dropped in recent weeks as buyers worried the government may release
a new series of cooling measures," he said. "The aggressive bidding shows
developers believe the government will not release stronger measures and the
record-breaking site in Kowloon Tong is positive news." Both big and small
developers were drawn to the 25,823 sq ft site, with bids from Chinachem Group,
Wing Tai Properties, Kerry Properties, New World Development, Wang On Group, Nam
Fung Development and Tai Cheung Holdings. Surveyor Charles Chan Chiu-kwok said
the construction cost of the project was about HK$3,000 to HK$4,000 per sq ft.
The average price of the project has to reach more than HK$20,000 per sq ft to
generate a reasonable profit. Kerry Properties is part of the Kerry Group,
controlling shareholder of the SCMP Group, which publishes the South China
Morning Post (SEHK: 0583).
A minimum charge for inbound tours as a
deterrent to tourism malpractice is facing strong opposition even before it is
formally proposed to the government. The task force set up after a spate of
controversies - including a tour guide insulting mainland visitors - has agreed
in principle to a charge to tackle the problem "at its roots." But the
government, holding tight to the principles of a free market, appears lukewarm
to the idea. A government source said regulating fees has never been the
objective of the task force, set up by the Tourism Industry Council in the wake
of tour scandals. But two task force members said the plan has the backing of
the majority. The body is set to make recommendations to the government this
month on how to better regulate the industry. "No one objected to it in the
meeting," task force member Leung Fu-wah said. Legislator Paul Tse Wai-chun said
the government is reluctant to regulate tour fees because of its entrenched
free-market values. Tse added some industry stakeholders have expressed support
for price regulation because it can stamp out "zero-charge" tours, which have
been blamed for recent controversies. Hong Kong Inbound Tour Operators
Association chairman Simon Hau Suk-kei also supports the plan. "I think this can
be considered. It can be done as long as operators think this is feasible," Hau
said. Other places have similar arrangements, with Thailand setting the minimum
charge at about HK$350 a day per person and Taiwan at HK$250, according to
Leung, who said some operators believe the Hong Kong benchmark should be HK$400.
A government source denied that the issue has ever been discussed. But Leung
claimed Commissioner for Tourism Philip Yung Wai-hung has expressed a
willingness to explore the issue. The task force will consult tour guides,
travel agencies and other stakeholders in the coming days to hammer out final
details of the review, which will be discussed at a Tourism Industry Council
board meeting on September 14. Other suggestions that may be put on the table
include a point-deduction system for tour guides found to be breaking rules and
basic salaries for guides.
China and Hong Kong big real estates investors to the world - HK and mainland
buyers are among the biggest property players in capital cities - Mainland and
Hong Kong investors have become a major force in the global property market.
They have already emerged as the biggest group of buyers in many places, and
their share of the market is expected to grow even further. Favoured investment
destinations of Chinese buyers include university towns and cities where their
children study, especially in Britain, the United States, Canada and Australia.
The combined mainland and Hong Kong student population in Britain has reached
60,000. Patrick O'Neill, chief executive of the US property developer The
O'Neill Group, said the Chinese share of international demand for homes in the
US would double to 16 per cent this year. In Vancouver and London, he said, they
were already the biggest source of overseas demand. "Anecdotally, our associates
in Vancouver are reporting that Hong Kong and mainland investors comprise over
half of the open house traffic," O'Neill said. Figures from estate agency Knight
Frank show that 11 per cent of international property investors in prime central
London's new-homes market are Chinese, who are also the largest overseas group.
One-third of buyers of new homes in the Canary Wharf financial district come
from the mainland and Hong Kong, the agency reports. Jennet Siebrits, head of
residential research at CB Richard Ellis, said Chinese buyers were poised to
overtake Russians as the most active international buyers in the prime central
London housing market. "We would expect the favourable exchange rate to lead to
an imminent rise in the number of Chinese buyers investing in prime central
London property," Siebrits said. Chinese investors are most active in the
off-plan, or pre-construction, markets across the world from Dubai to Sao Paulo.
Other hot destinations include France, where they are buying second-hand
apartments in Paris and holiday homes on the French Riviera as well as new
homes, reports estate agency HomeHunts. Homebuying is tracking other economic
activities. In Bordeaux, for example, the number of vineyard investors from the
mainland and Hong Kong has been growing, according to Joel Palous, proprietor of
AIM Vineyards consultancy. Chinese buyers are said to target homes across the
price spectrum. "The price points of mainland and Hong Kong investments begin
from the low-end properties starting around HK$800,000," O'Neill said. At the
top end of the market, agents recount helping mainland business people purchase
£15 million (HK$180 million) houses in London. O'Neill said Chinese investors
were taking advantage of the slump in property prices overseas to buy into these
markets for capital gains in future. "In some of the overbuilt markets in
Southeast Asia and US cities like Miami and Las Vegas, homes are going at a
discount of up to 70 per cent," O'Neill said. "Real estate is cyclical, and even
the most conservative economists project returning to and eventually surpassing
the 2006 prices in the next upswing in about four to six years." Gary Zhang, a
senior manager in a Beijing-based energy company, has been looking for an
apartment below US$1.5 million in Manhattan. Among the main reasons for his
interest are an appreciating yuan and a drop in New York property prices.
"Prices in Shanghai, Beijing and Hong Kong all are too high. New York City is a
better place to invest," Zhang said, adding that prices in Manhattan have picked
up a bit in the first half but are still lower than their peak levels. "I may
work in New York City in the next couple of years. I will move in if I do go. If
not, it can just be an investment," Zhang said. Currency fluctuations in some
countries has also made property less expensive for Chinese investors. The pound
has depreciated 20 per cent against the Hong Kong dollar and 30 per cent against
the yuan over the past three years, according to Reuters, while the US dollar
has depreciated 10 per cent against the yuan. The mainland's rapid economic
growth means it now has 343,000 high net worth individuals, or people with more
than US$1 million in investable assets, according to wealth management company
Scorpio Partnership. Hong Kong has 72,000 high net worth individuals. Many such
people buy property in Canada, Britain and the US because they are also
attracted to their visa programmes, O'Neill said. Wealthy foreigners can gain
permanent residency in Britain by investing £1 million over five years. In
Quebec, Canada, those who have net assets of C$800,000 (HK$5.94 million) and
invest C$400,000 can get permanent residency. In the US, the requirement is an
investment of US$1 million in a business that employs 10 people. Matthew Montagu-Pollock,
publisher of the website Global Property Guide, said mainland investment in
overseas property was on the threshold of a boom. "What triggers any national
buying spree is of course economic growth, large increases in personal wealth
and large increases in the value of the currency. The mainland Chinese have
experienced the first two," he said. "Many of them have good reason to want to
keep some property outside the mainland for the time-honoured reason of
diversification or risk-avoidance. I would expect the US, Canada, Hong Kong,
Singapore, Australia and the UK to continue to top the list. Mainlanders'
interest in overseas property seems likely to just keep growing." Ed Lewis,
director of London new developments at Savills estate agency, said 10 per cent
of his company's sales went to mainland and Hong Kong buyers. He said he
expected this proportion to rise next year when the number of British buyers are
likely to decline further. According to website Smart New Homes, the number of
new homes for sale in Britain is at its lowest since November 2006. A lack of
mortgage financing has deterred many Britons from buying, the website says.
Ironically, while Hong Kong investors benefit from affordable buying
opportunities overseas, they are finding competition from mainland investors
increasingly tough at home. A third of Hong Kong's luxury flats were sold to
mainland buyers in the first six months of this year, prompting lawmakers to
debate curbs on mainland investment. Two ideas being discussed are raising the
investment level in the Capital Investment Entrant Scheme to HK$10 million from
HK$6.5 million, and banning outside investment in small-to-medium-sized flats.
If enacted, they could restrict the number of mainlanders using Hong Kong as a
springboard into overseas property.
Snipers should have acted earlier, Manila
mayor says - City chief rues missed opportunities to shoot hostage-taker.
Officers from the Philippine National Police light candles and make offerings
yesterday at the spot in Manila where eight Hongkongers died in the August 23
hostage tragedy. Manila mayor Alfredo Lim said yesterday snipers should have
shot the gunman in last week's tragic bus hijacking when they had the chance
instead of waiting to see if the situation could be solved through negotiation.
Several times throughout the day sacked policeman Rolando Mendoza was in clear
view in the door of the bus where he held a group of Hong Kong tourists at
gunpoint, but police held off in the hope they could end the crisis peacefully.
"I think that was a mistake, the failure to take that opportunity [to shoot],"
Lim said yesterday at a memorial Mass in Manila for the victims. "But at that
time he was already releasing some of the hostages and no harm was being done to
them." He said earlier that as a general rule, a hostage-taker was not shot if
he was not hurting the hostages. "But there is also a rule that if a clear shot
could be given ... and no one else would be hurt, the negotiator has to take
advantage of that opportunity." Lim was speaking as Hong Kong police officers in
Manila wound up 15 hours of investigations on the Hong Thai Travel coach where
eight hostages and Mendoza died and began to make ballistic examinations of
firearms used in the shoot-out.
China's August car sales jumps 59% - A man
is seen taking a closer look at a car on display for sale at a second hand car
market in Beijing. On Wednesday, China Automotive Technology and Research Center
said the sales of cars in August rose 55.7 per cent over a year earlier to 1.21
million vehicles. Mainland’s car sales in August rose 59.3 per cent from a year
earlier, bouncing surprisingly higher after sluggish sales in the summer months,
helped largely by Beijing subsidies for fuel-efficient models. The up-turn in
demand in the world’s largest car market could extend into September and
October, the best auto sales season, and may continue into the winter months if
automakers slash prices to drive sales, industry observers said. “It’s a big
surprise! Everyone was expecting car sales to hit bottom in August, but they
didn’t,” said Zhang Xin, a Beijing-based analyst with Guotai Junan Securities.
“The rebound shows that the intrinsic demand for automobiles is still there. A
little policy incentive could make a big difference.” Beijing unveiled a pilot
program in five select cities in June to subsidize green car buyers, with
handouts ranging from 3,000 yuan (HK$3,422) for fuel-saving models to as much
60,000 yuan for electric cars.
Appeals for justice mark Mass for
Manila dead - Almost 1,000 people turned out in Manila yesterday for a memorial
service for the victims of last week's tour bus tragedy, with appeals for
justice over the botched handling of the hostage crisis that led to the deaths
of eight Hong Kong tourists. There has been a storm of criticism from Hong Kong
since last Monday's carnage in which authorities' mishandling of the crisis
seemed to enrage the hostage-taker, former police officer Rolando Mendoza, who
shot the victims before he was killed by a police sharpshooter. About 250 police
officers were among those who attended the Mass, which was offered in front of
the Quirino Grandstand, the site of tragedy. "This terrible case is also calling
out to heaven for justice," Bishop Broderick Pabillo, Manila Auxiliary Bishop,
said in his homily. "Not only the Chinese are calling for a just and swift
investigation of this case. We Filipinos demand the same from our officials.
Bring out the truth, let those who are responsible, whoever they may be, be held
accountable. No whitewash. No scapegoats. Let there be new life for our justice
system." The Mass was preceded by a ceremony performed by Buddhist monks from
Taiwan. China's ambassador to the Philippines, Liu Jianchao , said that a fair
and thorough investigation would help relieve the anger and loss of Hong Kong
and Chinese people.He told the South China Morning Post (SEHK: 0583,
announcements, news) that "both the Chinese and Philippine governments share the
aspiration that we should focus now on the investigation, which means a
thorough, fair and credible investigation that will bring further relief to the
[families of] people who lost their lives". After laying a single white rose on
a dais in front of the site of the incident, he added, "I'm really touched by
the service." Liu said, "We appreciate everything the Philippine government and
the president himself have done" in the aftermath of the hostage-taking. In his
homily, the prelate noted that Mendoza was a veteran policeman and he had a
special message for the authorities: "Did his service not ingrain in him respect
for others and respect for life? New life for our police and armed forces is not
just to get more sophisticated arms or to get more training. It is above all to
have deep love and respect for human rights and life itself."
E-games creator CY Foundation gets
visit from ICAC - CY Foundation's first Enternet store. The company serves a
network of 20,000 internet cafes to help promote its e-sports game sites. CY
Foundation Group's plans to conquer the mainland's burgeoning digital
entertainment industry appear to have hit a snag, following a visit by Hong
Kong's graftbusters. The Independent Commission Against Corruption on Monday
swooped on the group's headquarters in Wan Chai, where officers reportedly
stayed several hours before taking away documents and an undisclosed number of
employees whose identities are unknown. In a filing with the Hong Kong stock
exchange yesterday, CY Foundation executive director Woelm Samuel said the
group's board had requested a suspension of trading in its shares, "pending the
release of a public announcement in relation to information, which is considered
to be price-sensitive in nature". CY Foundation, which describes itself as the
mainland's leading electronic sports tournament provider, was in the middle of
pre-launch testing of its flagship, multiplayer online game when the ICAC raid
occurred. A spokeswoman for CY Foundation confirmed that "the ICAC contacted the
company yesterday", but declined to elaborate. The ICAC had no comment on the
investigation. In May, gaming machines and software that CY Foundation bought
from a company called Weike, owned by a former director of the group, were
confiscated by mainland police for being used in gambling. A month earlier, Luck
Continent, a substantial shareholder of CY Foundation, filed a lawsuit against
group chairman Theodore Cheng Chee Tock and his spouse, and six other corporate
shareholders, concerning various allegations related to the group's investments.
CY Foundation recently received approval from the General Administration of
Press and Publication and the Ministry of Culture to operate its South
Korean-developed online game, Rohan, across the country as part of its move into
the larger and more profitable online game market. With the Communist Youth
League-owned Network Media Centre and software developer Playtech as strategic
partners, CY Foundation has developed a network of more than 20,000 internet
cafes to help promote its e-sports game sites.
National registration aims to foil
phone scammers - Pre-paid SIM cards lose their anonymity - A new nationwide
policy will require mobile phone users who buy prepaid SIM cards to use their
official identity cards and register with their real names from today. The
Ministry of Industry and Information Technology has been pushing for the move
for five years. It said the new move would curb fraud. However, activists and
online users are worried the new move, which coincided with the tightening of
control over the internet - including a ban on individuals owning website
domains and the closure of popular online communities - is aimed at curbing the
flow of information and dissident views. Mobile users who already have prepaid
SIM cards won't have to register immediately, but they will have to provide
their real names and ID card numbers within the next three years, according to
the new policy effective today. They will be encouraged to go to one of three
telecommunications service provider (TSP) offices with their ID cards or call a
customer service number and, in exchange, they will receive a benefit such as a
fee waiver, according to The Beijing News.
Mengniu earnings decline on rising prices of raw materials - China Mengniu Dairy
executives (from left) Lu Jianjin, Wu Jingshui and Chris Kwok at the results
announcement yesterday. China Mengniu Dairy (SEHK: 2319), the biggest liquid
milk maker on the mainland, reported its net profit slid for the first six
months of the year because of rising costs of raw materials. The company, which
was deeply embroiled in the melamine scandal of 2008, posted a net profit of
618.82 million yuan (HK$707.25 million), down 6.5 per cent from a year earlier.
Revenue increased 19.3 per cent to 14.43 billion yuan. The cost of sales as a
percentage of revenue rose 0.5 per cent to 73.3 per cent, or 8.86 billion yuan,
while operating expenses such as distribution and administration costs also
increased. The company will not pay an interim dividend. Chief financial officer
Wu Jingshui said the cost of raw materials, such as raw milk and sugar, have
increased by 10 to 30 per cent so far this year. The company has not responded
by raising its prices but will not discount that possibility for the rest of the
year. Wu denied that Mengniu's sales had been affected by recent discoveries of
melamine-laced milk powder. Last month, food safety authorities seized more than
100 tonnes of tainted milk powder in several provinces in the north of the
country, raising concerns over how much of the product, which should have been
destroyed in 2008, was hidden and is still leaking into the market. The mainland
dairy industry faced another scandal last month when the Ministry of Health said
it would investigate claims that Qingdao-based Synutra International produced
infant formula tainted with adult hormones, which caused baby girls to grow
breasts. The liquid milk business, which includes ultra-high-temperature
processed milk and flavored milk beverages, accounted for 86.4 per cent of total
group revenue. The business recorded a 21.1 per cent increase in sales year on
year to 12.46 billion yuan. The ice cream business saw revenue grow 9.9 per cent
to 1.82 billion yuan. Mengniu expanded its production capacity with aggregate
annual production capacity reaching 6.14 million tonnes as of June. Shares in
Mengniu closed 3.6 per cent lower at HK$21.50.
Hong Kong Jockey Club boss bets on flats at his final hurdle - Retiring Jockey
Club chairman John Chan Cho-chak is all for the resumption of the Home Ownership
Scheme. But the government must ensure that the scheme is not seen as
interfering with market mechanisms, Chan warned. Citing his own experience, the
67-year-old said most youngsters need help from their families to get started on
their first homes. "HOS flats are cheaper and the mortgages easier to pay off,"
he told a media gathering yesterday. He officially steps down as the Jockey Club
chairman today, with Brian Stevenson taking over. The former civil servant
bought his first home in 1967. Property prices at the time had been adversely
affected by riots in what was then British-ruled Hong Kong. Chan's 1,200 square
foot home on Waterloo Road Hill, an upper-class residential area, cost around
HK$70,000. That was equivalent to years of earnings for an average worker. "At
any point in time, youngsters wanting to buy their first home will need some
sort of help from the family," Chan said. It was his father who made the
downpayment for him. But Chan, then a junior civil servant, had to pay HK$1,000
a month to the bank as mortgage. The top executive of Hong Kong's biggest donor
also advised youngsters to aim lower when buying a home. "You should work your
way up. Target the smallest flat and trade up slowly." Turning his attention to
racing, Chan said the equestrian facilities for the Guangzhou Asian Games will
be turned into a training base for the Jockey Club when the tournament ends in
November. Construction work for the Conghua training base will be completed by
2014. Racehorses from the territory can then be trained there. "The mainland
facilities will be more modern and spacious. It will not be two to three-story
buildings," Chan said. The club hopes to increase the number of horses from
1,200 to 1,400 once the new base is opened. The base will also include an uphill
track and other facilities. Chan said the stables at Sha Tin Racecourse are in
need of renovation. They were built more than 30 years ago on reclaimed land
that has been sinking each year. He also renewed the call for a change in the
betting duty system. The club has suggested that the government scrap the double
taxation system and lower the betting rate to attract revenue from overseas. But
the man who helped stabilize the Jockey Club revenues by increasing the number
of racing days by five, said such a policy change may take a long time to
materialize.
Kerry Properties lands Kowloon (HK)
site for HK$1.285b (US$165 million) 33% above market forcast - Hong Kong sold a
piece of land on Tuesday at a price that was a third above forecasts, indicating
that the territory’s property sector could still be frothy even after cooling
measures were announced weeks ago. View of a residential site at 1 Ede Road,
which was auctioned of on Tuesday for for HK$1.285 billion, a price that was a
third above market forecasts.
Twenty-nine bucks an hour - that's the
amount a panel tasked with arriving at Hong Kong's first minimum wage is set to
recommend to the chief executive. Members of the Provisional Minimum Wage
Commission have settled on a figure, which sources put at HK$29, give or take a
few cents. But chairwoman Teresa Cheng Yeuk-wah was tight-lipped about the
figure yesterday. Aside from talking about aspects of the panel's work, all she
would say is that the 13 members of the commission - which includes
representatives of bosses and workers - have reached a consensus on the minimum
wage. If it is HK$29 an hour - or HK$4 less than what unionists demand - some
347,800 workers stand to benefit. That is the number of people the Census and
Statistics Department reckons earn less than HK$29 an hour. It arrived at that
the number after a study of wage levels in the second quarter of last year.
Declining to give anything away, Cheng said: "It's not due to any worries. Our
task is to make a recommendation to the chief executive. As an advisory group, I
think we should respect the one whom we advise. "He has his own considerations
and will have to mull it over before deciding what to do." The commission is
still putting the finishing touches to its report for Donald Tsang Yam-kuen. The
Chief Executive-in-Council will decide whether to accept the recommendation or
come up with other ideas about a minimum wage backed by law. A government source
told The Standard that Tsang is not aware of the figure being proposed. Cheng
said it was challenging to reach a consensus, but members had discussed the
issue rationally and weighed wage statistics from the government. Factors taken
into consideration to arrive at an hourly rate include the general economic
situation, the labor market, the SAR's competitiveness and people's living
standards. The commission also carried out impact studies of businesses and
employees to try to determine the effects of different wage levels. Asked how
workers might greet the final figure, commission member Lee Kai-ming, a
consultant to the Federation of Hong Kong and Kowloon Labour Unions, said: "We
seek to strike a balance. As the consensus was reached through a complicated and
thorough discussion, it is not a matter of whether we can swallow it or not." On
speculation the government may extend the Transport Support Scheme - a subsidy
program for low-paid workers - should the minimum wage be HK$28 an hour,
Permanent Secretary for Labour and Welfare Paul Tang Kwok-wai said it was a
separate issue. But the scheme is now under review in any event. Commission
member Thomas Kwok Ping-kwong, vice chairman and managing director of Sun Hung
Kai Properties, said he believes businesses will comply with the law and pay
wages at the level the law will demand. But commission member Michael Chan
Yue-kwong, executive chairman of Cafe de Coral Holdings, who came under fire for
saying that a profit warning and layoffs may be considered if the minimum wage
was HK$33 per hour, declined to take questions yesterday. The Minimum Wage
Ordinance was passed by a wide margin by the Legislative Council on July 17.
Legislators must next decide whether to accept or reject the rate decided by the
chief executive. The minimum wage is scheduled to take effect in the first half
of next year.
Twist in Gome battle as Du freed from jail - Founder's wife can have say at
showdown - Du Juan has had her jail term for insider trading commuted by the
Beijing high court. Wong Kwong-yu's 14-year sentence was upheld. The power
struggle between Gome founder Wong Kwong-yu and the giant mainland appliance
retailer's current management took another twist yesterday as Wong's wife, Du
Juan, was freed from jail with a commuted sentence for insider trading. The
release of Du is likely to benefit Wong because she will be able to participate
in a September 28 special general meeting where a vote will be taken on whether
to remove Chen Xiao as Gome's chairman. Du now will also be able to manage the
family's huge fortune directly. The Beijing high court upheld on appeal Wong's
14-year jail sentence for bribery and insider trading handed down in May. But it
commuted a three year and six month term given to Du and released her,
prosecutors said in a statement. Wong, known on the mainland as Huang Guangyu,
and Du have yet to answer allegations by Hong Kong's Securities and Futures
Commission that they perpetrated stock market malpractice resulting in HK$1.6
billion in losses in 2008. Last August the SFC won a High Court order freezing
HK$1.66 billion in Gome shares controlled by Wong and Du. But to date it has
been unable to serve a summons on the pair as their whereabouts were unknown.
People with direct knowledge of the case said the regulator cannot send a writ
to Du across the border. Meanwhile, Du could send her representative to take
part in Gome's special general meeting in the city next month. On August 4,
Wong's wholly owned Shinning Crown Holdings sent a letter to Gome's board
proposing a special general meeting to vote on Chen's removal and the
cancellation of a mandate to issue new shares, which is regarded as a move to
dilute Wong's stakes in Gome. Wong's Shinning Crown, a shareholder of Gome, said
in its statement it will take legal action to stop the company from issuing new
shares because the dilution of stakes could affect the voting results at the
special general meeting. Meanwhile, Wong's family bought 120 million Gome shares
last week, increasing their stake to 34.78 per cent from 33.98 per cent. A
spokesman for Gome said the company has not yet made a decision to issue new
shares. Also yesterday, Gome said it had received a letter from Beijing Gome, a
company owned and controlled by Wong, threatening to cut contracts between the
company and hundreds of stores that the jailed tycoon still owns if shareholders
support the current chairman Chen. Gome dismissed the threat as an "empty"
ultimatum, saying it was "clearly motivated" by Wong's desire to win over
investors ahead of the special shareholders' meeting. In May, Gome's management
reinstated three directors from the US private equity firm Bain Capital after
they were voted out by shareholder companies Wong owns. "We were so urgently in
need of money to address the cash crush caused by Wong's detention," Chen said
earlier in Beijing. "Only Bain accepted the condition that it would bring money
to Gome and would not dilute the equity stake of the largest shareholder." Bain
spent HK$3.6 billion to become the second-largest shareholder in Gome after
buying new shares and convertible bonds. Bain has committed to convert the bonds
into equity before the next general meeting. After the conversion, Bain will
then have a 9.8 per cent stake.
'China threat' exaggerated -
Despite Japan's escalated maritime disputes with China, discussion about
"military threats from China" in Japan is indeed exaggerated, Japan's former
defense minister said on Monday. "There is no need for us to keep stressing that
China is a threat. The China-threat theory in Japan has turgidly stirred unease
among the people," Shigeru Ishiba said when talking with diplomats and scholars
from China and Japan on diplomatic and security affairs at the Beijing-Tokyo
Forum. Japanese scholars attending the forum, however, were still extremely
concerned about China's naval development. "China insists on self-defense, but
the stance of its military is more and more aggressive," said Masashi Nishihara,
director of Japan's Research Institute for Peace and Security. A series of
Chinese naval exercises this year have shown a different stance, he said,
warning that the US has been more and more active in containing the Chinese navy
based on Washington's joint military actions with Seoul and Hanoi this summer.
The US has conducted condensed military drills with the Republic of Korea and
Vietnam, its old rival, in the neighborhood of China since July and vowed to
remain in the South China Sea where China has overlapped territorial disputes
with some countries. Media reports have linked China's military exercises to its
discontent with the US moves. Chen Jian, former Chinese ambassador to Japan,
said Japan's views on the Chinese military have long been disturbed by the Cold
War thinking pattern. "Some of our problems are due to lack of confidence and
mutual trust," Chen said. "We both have our own advantages and there is no need
to be overly concerned." Liu Jiangyong, a senior scholar on Japanese studies
with Tsinghua University, said China would not choose to expand across the world
as the US and the former Soviet Union did. He, however, warned of the shift of
Japan's military attention to the Southwest toward China. Japan's National
Defense Program Outline, scheduled to be finished this year, is highly
dangerous, Liu said. "That will draw China's unease toward Japan," he said.
"This is the first such revision of the ruling Democratic Party of Japan and I
hope they do not choose the wrong direction." Now there is noticeable imbalance
between China and Japan over each other's military intention, Liu said. "China
used to believe Japan would become a strong military power. But we noticed the
Chinese government changed its attitude after Shinzo Abe (former Japanese prime
minister) took office," he said. Li Wei, chief of Japanese studies with the
Chinese Academy of Social Sciences, said getting Tokyo to understand Beijing is
not as difficult as getting the US to understand Beijing. 
Beijing's tallest skyscraper
open for business - A 330-meter tall skyscraper, located in the central business
district (CBD) of Beijing, opens for business on Aug. 30, 2010. The
International Trade Plaza, an office building, is the tallest structure in the
capital. 
Photo taken on Aug. 30, 2010
shows both sides of the Huangpu River in Shanghai, east China. According to a
new survey released on Aug. 30, Shanghai topped the "List of Best Chinese Cities
of Global Images", followed by Beijing, Chengdu, and Nanjing. The survey took
into account culture, environment, quality of life, public security, government,
investment value and internationalization, among other aspects.
Chinese showbiz belles in traditional Qipaos
Hong Kong forensic experts on Monday
inspected the bullet-riddled bus in which a hijacker killed eight Hong Kong
tourists in Manila last week, as the Philippines tried to calm outrage over the
bloodshed. A Hong Kong police forensic team examine the tourist bus used in the
hostage-hijacking in Manila on August 23 at an auditorium in Taguig City,
Manila, on Monday. Guided by Filipino investigators, the Hong Kong team used
torches to examine the bloodied passenger compartment, taking pictures of bullet
holes and shattered windows. Another investigator checked the bus tyres shot out
by police to prevent the hostage-taker from moving out of a police cordon. Hong
Kong investigators refused to talk to a throng of Chinese and Filipino
journalists. Justice Secretary Leila de Lima met Hong Kong officials on Monday.
Philippine investigators plan to question Manila Mayor Alfredo Lim, who helped
oversee the hostage negotiations, as well as journalists who interviewed
hostage-taker Rolando Mendoza by phone during the drama, de Lima said. They may
also travel to Hong Kong to talk to survivors of the nearly 12-hour stand-off.
It is unclear if that will be enough to stem the anger in Hong Kong, which has
discouraged its residents from traveling to the Philippines. About 140,000 Hong
Kong tourists visit the Philippines annually and hundreds have cancelled planned
trips. Concerns have also been raised about a possible backlash on the more than
100,000 Filipinos working in the territory, mostly as maids. Filipino anti-crime
activists placed flowers on Monday at the site of the carnage in a Manila park.
One carried a wooden cross bearing the names of the slain hostages. “We couldn’t
stomach this crime,” said activist Dante Jimenez. On Monday morning Hong Kong’s
Assistant Commissioner of Police David Ng Ka-sing confirmed that Hong Kong
police had been given permission to board the Hong Thai tour bus to carry out
investigations into the siege. He said Hong Kong officers had met with officials
from the Department of Justice, Legal Department and the Department of Internal
Affairs in the Philippines on Monday morning. “This was to discuss arrangements
for Hong Kong officers to collect evidence and conduct forensic investigations
on the bus,” Ng explained. Ng also said he hoped Philippine authorities would
allow them to examine the guns used by police and the gunman. He pledged that
Hong Kong officers would try their best to find out the truth. Philippine
Justice Secretary Leila De Lima said it was the responsibility of the
Philippines police to carry out a thorough and fair investigation. But she has
not said when the investigation would be completed. Anger has been rising in
Hong Kong since the August 23 carnage in which a disgruntled former Philippine
police officer took the busload of tourists from the Chinese territory hostage
in a bid to win his job back. HongKongers have blasted a failed rescue operation
and botched negotiations that seemed to enrage the hostage-taker, who was
eventually killed by a police sharpshooter. Organisers said about 80,000 people
marched in Hong Kong on Sunday, denouncing the Philippines and demanding justice
for the dead. President Benigno Aquino III has ordered a thorough investigation
into the crisis and the police response. “We want to appease them [HK officials]
and show that we’re not hiding anything,” Philippine National Police spokesman
Agrimero Cruz said. “This is a show of transparency.”
The
Provisional Minimum Wage Commission (PMWC) has reached an agreement on what
level Hong Kong’s minimum wage should be set at, PMWC chairwoman Teresa Cheng
Yeuk-wah said on Monday. However, she did not disclose the exact amount which
the commission believes the statutory minimum wage should be. Cheng said the
commission would submit its report to Chief Executive Donald Tsang Yam-kuen
soon. She said that in reaching its decision the commission had referred to
experiences in other countries, the views of different sector groups, and
relevant statistics. Local media reported that the wage would be set at
HK$28-HK$29. Christine Fang Meng-sang, chief executive of the Hong Kong Council
of Social Services, said she believed the minimum wage should be set at HK$33.
“The PMWC’s main task is to advise the chief executive on the initial statutory
minimum wage (SMW) rate to be adopted,” Fang said. She said the commission had
to strike balance between raising wages, minimising the loss of low-paid jobs
and ensuring Hong Kong’s economic growth and competitiveness.
The government may rake in up to HK$1.1 billion for a Kowloon Tong site in an
auction that could breathe new life into the secondary home market where sales
have plunged to a 27-week low. The 25,823-square-foot site at 1 Ede Road is
expected to fetch between HK$930 million and HK$1.1 billion tomorrow, according
to four surveyors. Given a gross floor area of 77,469 square feet, the
accommodation value could be be HK$12,000 to HK$14,200 per square foot. Midland
Surveyors director Alvin Lam Tsz-pun said property development and capital
inflow are long-term, so a competitive atmosphere at the auction is unlikely to
be affected by short-term market cooling. His valuation of HK$1.02 billion is 20
percent higher than a month ago. Slacker rules on joint development - with a
larger plot at 3 and 5 Ede Road on the application list - will make the site
more attractive, surveyors said. "If the same developer owns both sites, it can
apply for lease modification," said Ringo Lam Chun-chiu, valuations director at
AG Wilkinson & Associates. "The developer can build an underground car park and
a clubhouse for joint use." He believes developers are willing to pay a premium
for 1 Ede Road, which he values at HK$1.1 billion. Midland expects the site to
be developed into low-rise buildings with around 50 homes of about 1,500 sq ft
each. Savills forecasts the average selling price for completed homes can reach
HK$17,000 psf . There were four deals this month at nearby One Beacon Hill and
Beacon Heights, averaging around HK$14,000 and HK$17,000 psf, said Centaline
senior sales director Matthews Lee Tze-ming. Lee admits transactions have
halved, but "sellers believe prices will be better after the auction. On the
other hand, buyers may expect new [home] measures in the policy address." Total
secondary transactions over the weekend fell to just 26, down from 29, while the
number of primary homes launched dropped to 417 as of Friday, from 1,513 in
July, Midland Realty said.
Spain's Prime Minister Jose Luis
Rodriguez Zapatero and Zhou Hanmin, deputy director of the Shanghai Expo's
Executive Committee pose with the World Cup football trophy at the Spanish
pavilion at the Shanghai Expo on Monday.
In a world of
fakes, tainted food, indifferent service and shoddy products, Lionel Derimais is
trying to highlight the best of the mainland's crafts and services people.
Xiamen Red Dragon Yacht Building employees craft a sailing boat for a client.
The yacht builder is one of the mainland companies featured on
nicelymadeinchina.com. And the idea has obviously struck a chord, with the
website attracting around 7,300 readers since it launched in April. Derimais,
who arrived in Beijing five years ago, said the aim of the website was to focus
on the manufacture of "well-made goods by Chinese who take pride in producing
quality products". Perhaps unsurprisingly, the companies featured so far have
been small and medium-sized enterprises, some of which already have a global
reach. They also feature a high proportion of expatriates, albeit with Chinese
connections through family or mainland partners. For example, Xiamen Red Dragon
Yacht Building, which focuses on yachts and speedboats, was founded in 2003 by
David Winter, an expatriate who was associated with shipyards in Taiwan. Working
with general manager Liu Hongyan and a team of 50 crafts people, Winter has
since developed a network of clients all over the world and the company has sold
vessels to at least 10 European countries, the United States, Australia and
India. Shanghai Trio, which started making souvenirs 12 years ago, has branched
out into making bags, quilts, tablecloths, silk jackets and other products that
are sold in its own stores on the mainland and stocked by shops in Hong Kong,
Taiwan and Europe.
Shanghai Pudong Development (SPD) Bank
said its first-half-year net profit rose 33.92 percent from one year earlier due
largely to lending boom and increased commission fees. Net profits climbed to
9.08 billion yuan (1.34 billion U.S. dollars) in the first six months of this
year, the Shanghai-based lender said in a statement filed with the Shanghai
Stock Exchange late Sunday. Its growth in profits stemmed from rising operating
revenues, a result of growing net interest earnings, increased fee incomes and
the improved quality of assets, according to the statement. Earnings per share
stood at 0.791 yuan, up 20.21 percent from one year earlier. Also, operating
revenues grew 36.42 percent to 22.75 billion yuan in the first half of 2010, it
said. Total assets for the commercial bank hit 1.781 trillion yuan by the end of
June, up 9.77 percent from the end of 2009. 
