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March 31, 2008
If the government introduced a congestion charge today it would have to sting drivers for HK$90 for each trip to Central - and that would deter only one in five from making the journey by road. But drivers would need pay only HK$40 to HK$50 if the scheme were launched in 2016, when the Central-Wan Chai bypass has been built. Those are among the findings of the second study of the feasibility of electronic road pricing. A senior government source called the HK$90 charge huge and said: "We do not think people will be willing to pay such a high price." Congestion charging has been on the agenda since the 1980s. A consultancy study finished in 2000 was not released in full. The source said officials were looking at the second study's findings and considering how and when to release them. The source said the difference between the charges was so high because, without a bypass, drivers unwilling to pay would have almost no alternative route. "They would have to pay and go to Central because there was no other choice, thus only a huge charge can deter traffic coming to Central. With the bypass, drivers going to Sheung Wan and Western could skip Central without paying a charge. Without the bypass, motorists who don't want to pay would be pushed to Mid-Levels and that would be a nightmare." The source added: "The bypass is an essential part of the road pricing scheme." Tim Hau Doe-kwong, a University of Hong Kong transport expert, said the figures showed the significance of giving drivers a second option. "A mere increase in costs to suppress demand without the provision of an alternative would result in public chaos," he said. The Transport Department's 2006 annual traffic census shows the average number of vehicles entering and leaving the city's central business district each day was 491,320. Other cities have reported dramatic results from congestion charging. Singapore's Land Transport Authority says the number of vehicles entering the city centre fell by more than 70 per cent when road pricing was introduced in 1997. Transport for London, which oversees congestion charging in the British capital, says that in 2006, the number of vehicles entering the central zone where the charge applies was down 21 per cent on the number in 2002, a year before it began charging drivers. The Hong Kong government's third comprehensive transport study, in 2003, showed average speeds had dropped to 16km/h on major roads in the central business district. If nothing was done by 2011, it said, that would drop to 5.3km/h. The Council for Sustainable Development polled 80,000 people last year and found more than 40 per cent support for electronic road pricing. What other cities charge: Singapore charges between S$0.25 and S$10 (HK$1.40 to HK$56) per road Monday to Saturday from 7am to 10.30pm. Rates change every 20 minutes. London charges £8 (HK$125) to enter the city centre between 7am and 6pm on weekdays and 6pm to 7am at weekends and holidays. Discounts are offered to some categories of driver. Stockholm levies between 10 and 60 krona (HK$13 to HK$78) on vehicles using roads in the congestion zone between 6.30am and 6.30pm. There is no charge at night, during weekends and public holidays or in July. Dubai charges between 4 dirham and 24 dirham (HK$8.50 to HK$51) when drivers pass toll gates at the entrance to the emirate's congestion charging zone. New York has proposed levying congestion charges of between US$7 and US$21 on vehicles entering the Manhattan business district from 6am to 6pm. Hong Kong's flying dragon logo, seen on posters, brochures and Cathay Pacific flights, has been successful since it was unveiled seven years ago as part of a city image promotion program, a senior official said Friday. The image incorporating the letters HK and the Chinese characters for Hong Kong, often together with the phrase "Asia's world city," has been a successful example of branding, said John Tsang, financial secretary of the Hong Kong Special Administrative Region (HKSAR) government, comparing it with Canada's trademark maple leave. "The Hong Kong Brand has become known overseas since it (the logo) was launched some seven years ago. Hong Kong is regarded as a vibrant, multi-cultural city with plenty of opportunities for those who dare to take the plunge," Tsang told a forum Friday. The strategic objective of the Brand Hong Kong initiative, launched by the HKSAR government in 2001 and run by the Information Services Department, was to communicate the city's competitive positioning, values and culture, the HKSAR government said. The HKSAR government has carried out massive promotion under the program. The visual identity can now be seen across Hong Kong, from the skyline to the airport. It even had an official website of its own. The phrase "Asia's world city' has become part of the regional lexicon and many organizations and individuals were applying for authorization to use the Brand Hong Kong logo, the website said. The ideas, hard work and passion of Hong Kong residents formed the foundation for Brand Hong Kong's success both at home and overseas, Frederick Ma, secretary for commerce and economic development, said at a workshop earlier. The HKSAR government is in the middle of public consultation, begun with Wednesday's workshop to review the Brand Hong Kong program. Tsang called for updated public services, among others, as he asked people to consider whether Hong Kong's competitive positioning was still relevant today. "Given the many changes around us, since its issuance some seven years ago, we are now in the process of reviewing its relevance and applicability through an extensive public engagement exercise, " he said, urging for revitalization of Brand Hong Kong.
The police will do a good job at ensuring law and order if protests break out during the Olympic equestrian events, Hong Kong's police chief said yesterday. Commissioner of Police Tang King-shing said the force had received information that protests by foreign groups would be staged in the city during the Games. He said the force would contact the protest groups to sort out the logistics as soon as possible. "We will contact foreign protest groups because they don't know the city and because we want to make sure that all protests go smoothly and are peaceful," Mr Tang said. Mr Tang said the force had not received any intelligence that terrorist groups had targeted the city during the Games but a medium security alert had been raised. The force has also been working with the Beijing Organising Committee for the Games to ensure the event goes smoothly. Mr Tang said officers trained to handle any eventuality would be deployed to ensure security at the equestrian events and throughout the city. Information on securing Hong Kong would also be sought from other countries. Booming industry 'threatens safety' - A boom in shipbuilding across East Asia is fuelling an acute shortage of experienced mariners, which poses a serious risk to safety standards, industry experts warn. New shipyards are coming on stream across China following industry expansion in the Pearl River Delta, Shanghai, Ningbo, Dalian and Tsingtao, with Vietnam and South Korea also seeing rapid growth. "We are set to see an even greater expansion over the next five years and the whole industry - because of the rapid expansion - is suffering from a shortage of experienced staff," one industry insider said. "It takes 10 to 12 years to build a captain in terms of giving him the experience and security to head a vessel, but it only takes two years to build a ship." Classification society DNV Maritime warned last week that global accident rates for large ships had doubled in the past five years, citing the boom in shipping, a shortage of officers, lower retention rates and faster promotion as key factors. Arthur Bowring, chairman of the Hong Kong Shipowners Association, said: "We do have a crisis in seafarer supply. Everybody is short of people. So far we haven't laid up any ships for lack of crew but in the next two to three years we should see a situation where ships are not able to sail because they don't have the right crew."
3G cell phone services on trial run in 8 cities - China Mobile will next week launch the pre-commercial service of third generation (3G) mobile phone telephony based on a home-grown standard.
The "Made in China" label, once scorned in Laos, is now coveted. "About eight years ago, the quality of Chinese products sold in Laos was so bad that they had an infamous reputation," said Peng Zhenghua, a Chinese businessman who has lived in the capital, Vientiane, since 1993. "Many people found that Chinese food they bought had already expired. Others complained their new washing machines and video players broke down after a few months' use. "Laos people used to boycott Chinese products. Even me. I refused to buy them at that time. As a result, many shops selling Chinese products were forced to fold and Chinese businessmen faced a hard time during the period." Mr Peng was speaking on the eve of the arrival of Premier Wen Jiabao in Laos for the third summit of the Greater Mekong Subregion. The change finally came when the central government weighed in, the Shanghai native and general secretary of the Vientiane Chinese Association said. "In 2002 or 2003, the Chinese embassy in Vientiane gathered Chinese businessmen in the capital," he said. "In a bid to avoid further deterioration of the reputation of Chinese products, officials warned them to stop selling substandard goods immediately. "As well, Chinese officers at border checkpoints tightened up on fake and bad-quality goods exported to Laos." The moves quickly achieved the desired effect. "From then on, motorbikes made in China gradually took over the Japanese market share because of their overwhelmingly low price," Mr Peng said. "For instance, a Japanese motorbike sells for US$1,200, while you can buy one imported from China for only US$500. "Although the quality of Japanese products still gives them advantages, more importantly, people must consider whether they are affordable before buying them. "People know how to choose. Nowadays, almost all Chinese products are welcomed by people in Laos. "Kangjia and Changhong are well-known brand names for TV sets, Haier is famous for its refrigerators, while Meide may be the best-seller of cookers here." Mr Peng's point of view is shared by China' ambassador to Laos, Pan Guangxue. "Bilateral trade between China and Laos is experiencing its fastest growth period and Sino-Laotian ties are at their highest point in history," Mr Pan said. In 1998, the volume of trade between the two countries was about US$28 million. "Last year, bilateral trade volumes hit historical highs and reached US$249 million, more than twice as much as four years ago," Mr Pan said. The governments of both countries were aiming for US$1 billion in the next few years. "I definitely believe economic and trade co-operation will deepen, and political relations will strengthen between the two countries after Premier Wen's visit," the ambassador said. March 30, 2008
Conglomerate Hutchison Whampoa (0013) said yesterday 2007 net profit rose 53 percent to HK$30.6 billion, generally in line with expectations, after losses shrank in its 3 Group mobile business and it booked a one-off gain on the sale of its Indian mobile business.
CITIC International Financial Holdings (0183), which owns CITIC Ka Wah Bank, yesterday reported a net operating loss of HK$24.86 million for 2007 after writing down HK$1.31 billion to cover its structured investment vehicle holdings which have lost value.
Social networking site Facebook had closed a second US$60 million investment round with Hong Kong billionaire Li Ka-shing through his foundation, a source familiar with the deal confirmed late on Thursday. The source said the deal, which boosted Mr Li’s holdings in Facebook to US$120 million, including an earlier US$60 million round late last year, was valued on the same US$15 billion terms as a US$240 million stake Microsoft took in October. Mr Li’s investment was made by the Li Ka Shing Foundation. His companies such as Hutchison Whampoa (SEHK: 0013) and TOM Group (SEHK: 2383) were not involved, the source said. The stake boosted Mr Li’s holdings to a 0.8 per cent share of Facebook while Microsoft’s holds a further 1.6 per cent. A Facebook spokesman declined to comment on Mr Li’s stake. MarketWatch broke details of the story earlier out of Hong Kong, quoting Mr Li as saying “I may raise my investment in Facebook - anything is possible” during an earnings conference call for his company Hutchison Whampoa. But the report did not detail the scope of his investment. Founded in 1980, the Li Ka Shing Foundation has focused on funding a variety of health, education and environmental projects in recent years. In prior rounds dating back to 2004, Facebook has taken about US$40.7 million from venture capital investors including PayPal co-founder and former chief executive Peter Thiel along with Accel Partners, Greylock Partners and Meritech Capital Partners. Li Ka-shing dismisses need for 10th terminal - Tycoon Li Ka-shing, whose business empire spans a string of Chinese imports, including Hong Kong's, has poured cold water on government plans to develop a 10th container terminal. The Hutchison Whampoa (SEHK: 0013) chairman said those who assumed that expanding the port and building a cross-border bridge would boost the city's cargo business were guilty of "wishful thinking". Reiterating comments made in past years, Hong Kong's richest man predicted Shenzhen would overtake Hong Kong within four years as the world's third-busiest cargo port. "Other ports are growing fast, and their terminals are continuously being developed," Mr Li said at a meeting announcing Hutchinson's annual results. By cargo tonnage, or the total weight of goods loaded at a port, Shanghai ranked first, with 560 million tonnes in 2007, followed by Singapore with 483.4 million tons. Measured by 20ft equivalent units (TEUs) of container throughput, Singapore is the world's largest, with about 28 million, and Shanghai second, with more than 26 million. Hong Kong handled 245.4 million tonnes of cargo and 24 million TEUs last year. The government is eyeing southwestern Tsing Yi as a possible site to build Container Terminal 10. It cites forecasts container throughput will continue to increase. A spokesman for the Transport and Housing Bureau said a new berth would be needed by as early as 2015. But Mr Li said: "At Zhuhai's container terminals in Gaolan, the fees for handling cargo are cheaper than in Hong Kong. Even if the cargo leaves via Hong Kong, it would still be cheaper than if the cargo was handled here. We cannot compete." Mr Li's companies hold lucrative stakes in mainland ports. If built, Container Terminal 10 would boost Hong Kong's port capacity and employ the latest labor-saving technology, which could improve the city's cost competitiveness. New port facilities and a cross-border bridge could thus affect Mr Li's mainland port business. Hutchison Whampoa generated 15 per cent of its revenue last year from port-related business, which earned it HK$37.89 billion, up from HK$33.04 billion in 2006.
Foreign diplomats set to visit Lhasa - A group of Beijing-based foreign diplomats were scheduled to leave for Tibet’s riot-hit capital Lhasa on Friday for a two-day trip organized by the Chinese government, embassy officials here said. Diplomats from a number of countries including the United States, Britain, France, Australia and Italy were to participate in the trip, which came on the heels of another government-arranged tour for foreign journalists. “I suppose the objective of the Chinese foreign ministry is to basically answer the international calls including from the Australian government to have diplomatic access to Tibet,” said Janaline Oh, an Australian embassy official. She said embassies in Beijing were only informed about the planned trip on Thursday, while an Italian embassy spokeswoman said the representatives were expected back on Saturday night. One diplomat said that the embassies had been allowed to send one official each, although there was no official comment on the trip from Beijing and it was not clear how many countries were going or had been invited. In Washington, State Department spokesman Sean McCormack welcomed the move, but said it was not enough. “We see this as a step in the right direction, but it’s not a substitute for the ability of our diplomats, as well as others, to travel not only to Lhasa, but into the surrounding area specifically,” he told reporters. China took a foreign media delegation to Lhasa on Wednesday for a three-day trip following international pressure to allow independent reporting from the Tibetan capital after it was sealed off due to the unrest. AFP and some other major news organizations were not invited. Two weeks of deadly demonstrations against China’s rule of Tibet have put China under international pressure as it prepares to host the Olympics in August. China has insisted its response to the protests, the biggest challenge to its rule of Tibet in decades, has been restrained and that it has brought the situation under control. Tibetan doctor protected Han boy from mob, Ambulance attacked as rioters demanded child - Lobsang Tsering, a 36-year-old Tibetan emergency doctor, still believes he did the right thing when he risked his life to save a Han Chinese father and his son. March 14 was a busy day for the emergency medical staff, and Dr Lobsang was in an ambulance with a Tibetan nurse responding to a request for help. The ambulance stopped when the crew saw a desperate Han Chinese man holding an unconscious boy whose face was blackened by smoke. The boy's life was at risk from smoke inhalation. When they helped the pair into the ambulance, they suddenly found themselves surrounded by an angry mob demanding the boy. The Tibetan nurse begged the mob to spare the ambulance, telling them they were only saving lives, but the rioters smashed the window and jumped onto the vehicle. According to the boy's father, Wu Guangming, Dr Lobsang gave him his helmet and asked him to get down on the floor, fearing the rioters would kill him if they found out he was a Han Chinese. Dr Lobsang held the boy in his arms as he was battered on his head, jaw and back with stones and clubs. Speaking in a frail voice from his bed yesterday, the Tibetan doctor, who has worked at local hospitals and the emergency centre for 12 years, said he was targeted because he refused to hand over the boy. "Others [colleagues] were not injured," he said. "They only attacked me because I refused to give up the boy. I believed they were after the boy." He said he had no idea what made the mob hate the boy so much, and he was still grappling with the shock. "It is unbelievable. I am really sad about it. It is something that should not have happened."
March 29, 2008
Company directors will face criminal liability if they intentionally hide information from their auditors, according to a proposed law change released by the government yesterday. The new proposal replaces a suggestion made in a government consultation paper last year requiring all directors to declare that they had given auditors all relevant information. The paper was released last March for a three-month consultation. It included a wide range of suggestions by a government working group in charge of rewriting the Companies Ordinance, which was last updated in the 1980s. In a report summarising the consultation, the government said yesterday that most of the paper's proposals had gained support. They would be put into a White Bill next year for detailed consultation. The proposals include compulsory disclosure of the fees paid to company directors, along with their names, and permission for small firms to use simplified accounting forms to reduce their costs. But some suggestions were dropped as a result of opposition from respondents. They included the requirement for directors to declare their full disclosure to auditors. Many accounting bodies complained that such a disclosure would be "too onerous for those directors who were non-accountants or were not in a position to handle financial reporting directly", and would increase their potential liabilities substantially, the report said. Mike Wong Ming-wai, chief executive of The Chamber of Hong Kong Listed Companies, welcomed the changes. "The new proposals are more reasonable," he said. "However, the new proposed law change, if implemented, may not be easily enforced as it is difficult to show if anyone is intentionally trying to hide information." The government also dropped a suggested law change that would have allowed more company staff - such as secretaries and managers - to inspect companies' accounting records. Respondents were concerned about giving too many people access to such sensitive information. The government also dropped a proposal to require directors' reports to reflect any significant market valuation changes in a company's assets. Opposition to some points, however, failed to change the government's mind. It insisted on keeping a proposed change that will require companies to give more forward-looking analysis in their financial statements in order to provide shareholders with more information. After its shares surged as much as 111 percent yesterday, Henderson Investment (0097) announced it plans to sell some assets to a joint-venture partner, prompting renewed speculation of a delisting. Hong Kong & China Gas (0003), better known as Towngas, yesterday said its net profit last year jumped 58 percent on one-off gains, property sale and revaluation gain from investment properties. Jiangxi Copper (0358), China's second largest copper producer, says it plans to invest an additional US$1.4 billion (HK$10.92 billion) in a joint venture project in Peru with China Minmental Corporation.
A former store supervisor and a head chef of a popular hotpot restaurant chain were yesterday charged with bribery in relation to food supplies to the restaurant. In addition to Chiu Chak-man, 52, a former store supervisor at Little Sheep Hong Kong Holdings, and Ma Ka-wo, 37, a head chef, tea leaf supplier Elvy Wong Wing-wah, 43, was also charged. Little Sheep, a popular Mongolia- based hotpot restaurant in the mainland, has four outlets in Hong Kong. Chiu faces three counts of accepting an advantage while Ma is charged with one similar offense. Wong faces one count of offering an advantage to an agent. The defendants will appear in Kwun Tong Magistrates' Court at 9.30am tomorrow for mention. Two of the charges allege Chiu had accepted a watch worth HK$16,380 and a bribe of HK$20,000 from a supplier of beef and seafood in June and August, respectively, as a reward for placing purchase orders with the supplier.
Hong Kong had 410,000 people with liquid assets worth HK$1 million or more by the end of last year, Citibank Global Consumer Group said on Thursday. Citibank chief operating officer Weber Lo said the bank had interviewed more than 4,000 clients during a survey between October 20 until November 14. He said Hong Kong’s stock market had been booming at the time. “The survey found there were 410,000 people in Hong Kong who had HK$1,000,000 in liquid assets in their bank accounts,” Mr Lo said. This number is equivalent to about 8 per cent of Hong Kong’s total adult population. “It means there were 140,000 more millionaires compared with a year before, when there were only 270,000 millionaires,” said Mr Lo. The average number of millionaires throughout last year was 350,000 people. “About 10 per cent of them were very young and under 40 years old,” he said. According to the survey, most Hong Kong millionaires work in the area of financial services, followed by insurance agents, and government officials. The survey found most millionaires lived on Hong Kong Island. “One out of seven adults who live on Hong Kong Island are millionaires.” Mr Lo explained that most of them lived in Wan Chai. By the end of last year, the district had approximately 20,000 millionaires. “In Kowloon, one out of 15 adults was a millionaire and one out of 17 people living in the New Territories was millionaire,” he noted. The survey found that the large increase in millionaires was mainly due a bullish run on the stock market in 2007. But Mr Lo predicted the number of millionaires in Hong Kong would fall in future with a volatile, more bearish share market performance recently. “According to a survey conducted in mid-February, the number of millionaires decreased to 350,000 as the stock market became volatile and more people put their assets into the property market,” Mr Lo explained. He warned young people to manage their money prudently, advising them to diversify, and choose lower-risk investments.
Nestle opened a new ice cream plant in south China on Wednesday, demonstrating its aim to further develop the Chinese market. The 22,000-sq-m factory, in Guangzhou, capital of Guangdong Province, will increase the food and drink giant's annual ice cream productivity to 64 million liters, three times the output from its old facilities. The plant, involving 250 million yuan ($35.6 million) in investment, will help Nestle to promote its high-end ice cream brand in south China and meet the growing consumer desire for ice cream products, said Peter Brabeck-Letmathe, Chairman and CEO of the Nestle Group worldwide at the opening ceremony. Nestle, the world's largest food company, has opened 20 factories in 17 regions across China since it entered the market two decades ago, employing more than 13,000 people. The Swiss-headquartered group said earlier this month that it expected underlying sales to rise in 2008 at a similar rate to 7.4 percent last year, a big jump from its long-term growth target of between 5 and 6 percent.
Guangdong environmental authorities say they will not stand in the way of a controversial US$5 billion oil refinery and petrochemical plant in Nansha despite opposition on ecological grounds. Chen Guangrong, deputy director of the provincial environmental watchdog, said on Tuesday that the provincial authorities supported plans for the Sinopec (SEHK: 0386)-Kuwait Petroleum Corporation plant. Mr Chen said the plant would have "significant strategic meaning" in securing the province's energy supply and would fit in with Guangdong's industrial strategy. But he said the Ministry of Environmental Protection had to give the final approval for the plant, a project that would also have a "significant impact on Guangdong's environment". "As far as I know, the plant has not yet obtained the environmental impact assessment approval from the national watchdog, and won't be allowed to start construction without it," Mr Chen said. However, mainland media reported that land requisition for the project had been under way in Nansha, a southern district of Guangzhou, since June. The Southern Metropolis News suggested the project was proceeding against national regulations that all planned petrochemical projects must have an environmental impact assessment, as well as feedback from the public and experts. The controversial plant was listed as a priority project in the province's annual economic and social development programme in January but 14 Guangdong legislators have jointly urged the government to shelve the project because of environmental concerns. Guangzhou Mayor Zhang Guangning said the government would reduce the plant's output of pollutants with advanced equipment that met international standards. "The reason we support this project is it helps control pollution and protect the environment," Mr Zhang said. He said the new technology applied at the Nansha plant could cut sulfur dioxide emissions by 80 per cent compared with existing petrochemical plants in Guangzhou. Meanwhile, Guangdong's environmental bureau said 14 cities in the province were afflicted with acid rain. In Guangzhou, 80 per cent of its rainfall was acidic. The province's pollution-reduction efforts were well short of targets. The Sinopec-Kuwait Petroleum plant, said to be the nation's biggest joint venture, will emit 6,000 tons of sulfur dioxide every year in a region that is already notorious for its air pollution. It is designed to be able to process 15 million tonnes of petroleum and 1 million tons of ethylene a year. March 28, 2008
Li Ning, chairman of China's largest sportswear retailer Li Ning Company (2331), is selling up to HK$408 million worth of his shares in the firm, according to a term sheet sent to investors. The Hong Kong Jockey Club yesterday awarded three-year scholarships to 30 undergraduates, including 10 from the mainland. Each student will get HK$290,000 spread over three years to cover academic expenses and living costs. Watchdog unveils proposed rules for exit pollsters - People conducting exit polls in Hong Kong elections would have to first tell interviewees "I am not from the government", and say who they work for, under proposed revisions by the elections watchdog.
The Chinese currency, the yuan, recorded its second high in as many days on Wednesday against the weakening dollar, breaking the 7.03 mark.
Another 20 airlines began operations on Wednesday at Beijing airport's new terminal, an expansion project for the anticipated passenger surge during the Olympics. The new terminal will be able to handle 60 percent of the airport's total capacity. Starting at 10 p.m. on Tuesday, more than 70 planes from various carriers, including Air China and Shanghai Airlines, were moved to Terminal 3 of the Beijing Capital International Airport, the Beijing Morning Post reported on Wednesday. Since it opened on February 29, about 5,000 passengers on 40 flights have been moved through the airport daily by the first six airlines to use the facility, China's Sichuan Airlines and Shandong Airlines and from abroad, Qatar Airlines, Qantas Airways, British Airways and El Al Israel Airlines. These six carriers and the 20 new ones will together raise the daily capacity of the world's largest air terminal to about 80,000 passengers on almost 500 flights. With a floor space of 986,000 square meters, the new building more than doubled the total area of the first two terminals. "The full operation of Terminal 3 will greatly ease overloading at the airport," said a BCIA official. The airport, already the country's largest and busiest, will be able to handle 1,800 daily flights, up from the current 1,000. It is expected to receive 5.56 million people during the Olympic Games in August. The airport handled 53.47 million passengers in 2007.
Argentina’s farmers’ strike has triggered a force majeure in soya and soya oil shipments to China, prompting worries over a possible shortage in May in the world’s top importer of the oilseed. Traders and industry officials on Wednesday said several suppliers of Argentine soya and soya oil declared force majeure on cargoes to China following a similar move on meal cargoes to Europe as a result of the strike. Up to one million tons of soya exports to China and about five cargoes of soyaoil have been affected, as the strike in the world’s No3 soya exporter began at the start of the South American season. “Suppliers told us the cargoes will be delayed indefinitely,” said an executive with Chinatex Grains & Oils Import & Export, a leading soya importer. “I think more than 15 cargoes, or about one million tons of soya beans to China, were interrupted ... Some cargoes will be substituted with US soybeans, but the costs are higher,” added the Chinatex executive, without elaborating. Force majeure,/i> is a contract clause allowing a supplier to forego their obligation to supply in extreme unforeseen circumstances. While 300,000 to 500,000 tons of the total had been switched to US soy, the US and Brazil cannot take up all the orders from China, with their physical prices are already surging due to the strikes. Chicago Board of Trade soy futures rose by their daily limit in early Asian trade on Wednesday, boosted by the Argentine strike that caused a switch to US cargoes. Several thousand protesters took to the streets of Argentina’s capital on Tuesday after President Cristina Fernandez refused to rescind a tax increase that sparked a two-week strike by farmers. The soya market in Argentina, the world’s number-three exporter after the United States and Brazil, has been frozen, with the leaders of the four groups taking part in the protest announcing that the strike would continue for “as long as necessary”. China needs to import between two million and three million tons of soya each month. With domestic vegetable oils prices surging to records, China has been an aggressive buyer of soya oil, booking about 300,000 tons a month. Beijing has also made the purchases f |
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Hong Kong:
China's State Council, or cabinet, appointed Simon Peh Yun-lu as the Director of
Immigration of the Hong Kong Special Administrative Region (HKSAR) government
here on Friday. The State Council also ended the term of Lai Tung-kwok as the
Director of Immigration. Lai was named to the position last June. The decision
was made based on the nomination and suggestion by Donald Tsang Yam-kuen, chief
executive of the HKSAR government. 
China:
EU foreign ministers rejected Saturday the call for a boycott of the upcoming
Beijing Olympic Games over the Tibet issue. EU acknowledged Tibet is part of
China and Chinese territorial integrity should be respected.
Chinese Premier Wen
Jiabao (C) arrives in Vientiane, capital of Laos, March 29, 2008. Wen started
his working visit to Laos on Saturday evening by the invitation of Lao Prime
Minister Bouasone Bouphavanh, and he is also scheduled to attend the 3rd Summit
of the Great Mekong Subregion countries in Vientiane. Chinese Premier Wen Jiabao
arrived here on Saturday evening, starting his working visit to Laos. Wen is
also scheduled to attend the 3rd Summit of the Great Mekong Subregion countries
-- China, Laos, Vietnam, Cambodia, Thailand and Myanmar -- to be convened in
this Laos capital city on Monday. According to the Chinese Foreign Ministry,
Wen, invited by Lao Prime Minister Bouasone Bouphavanh, will meet with Lao
President Choummaly Saygnasone and hold talks with his Lao counterpart Bouasone
on future bilateral cooperation. Wen and Bouasone are scheduled to attend the
signing ceremony of cooperation agreement in the sectors of economy, technology,
coal and e-governance. After his working visit to Laos, Wen will join with
leaders from the other five GMS members as well as representatives from the
Asian Development Bank at the summit and attend the opening ceremony of a
1,800-km international road from China's Kunming city to Thailand's Bangkok. The
GMS, established in 1992, promotes economic and social development, irrigation
and cooperation within the six Mekong countries. About 320 million people live
within the GMS region, and their common link, the Mekong River, winds its way
for 4,200 km. The great majority of these people live in rural areas where they
lead subsistence or semi-subsistence agricultural lifestyles. The area boasts
abundant natural resources and huge development potential. With a long history
of cultural and economic exchanges among the nations, the area has formed
peculiar cultural and economic characteristics based on different folk customs
and natural landscapes of the six nations sharing the river. The first GMS
Summit was held in Cambodia's Phnom Penh in 2002,and the second in southwest
China's Kunming in 2005. 
Crew members of the Olympic Torch
plane take oath in front of the plane at Beijing Capital International Airport
March 27, 2008. The plane, chartered to carry the torch back to Beijing, will
take off for Athens on Saturday. The Olympic Torch plane takes off from Beijing
Capital International Airport on Saturday morning, heading for Athens where it
will collect the famous flame, Tan Zhihong, senior vice-president of Air China,
which provided the plane, said on Friday. The Airbus A330 passenger airliner,
which has 200-plus seats, including 30 for VIPs, has been chartered to carry the
torch on its global tour. "The aircraft has a specially designed stand to hold
the flame while it is in transit," Tan said. "We guarantee it will continue to
burn throughout the 11-and-a-half-hour flight from Athens. "It will arrive in
Beijing on Monday, after its six-day relay through Greece," he said. A grand
ceremony will be held to welcome the flame and officially launch the torch relay
of the 2008 Olympic Games.
Chinese actress Zhang Ziyi got close to
two orangutans at a conservation area in Sabah, Malaysia last December while
shooting a program to promote wildlife protection. Chinese actress Zhang Ziyi is
in the spotlight once again, but not as an actress. This time, Zhang Ziyi is
hosting an English TV program titled "The Story of Wildlife," which aims to draw
attention to wild animals facing extinction. Zhang shot the program last
December at a conservation area in Sabah, a region in Malaysia, Xiaoxiang
Morning Post reported. The trailer of the program shows Zhang visiting a
tropical rainforest and introducing some species of the nearly-extinct wildlife.
Although the insects in the rainforest are potentially harmful, Zhang insisted
going into the rainforest herself to give the audience a closer look at the
animals. After spending three days with a pair of orphaned orangutans, Zhang
experienced their deteriorating living environment firsthand. This primate,
which acts much like humans, is often captured and regarded as a pet. Some
wildlife experts predict that they will die out in ten years if no effective
measures are taken. 
A girl stands
beside a Bright Dairy booth at a supermarket of Yichang, Central China's Hubei
Province, on March 28. Approved by the regulator, Bright Dairy raised the prices
of some of its milk products on Friday.
The unmanned lunar
orbiter Chang'e I that blasted off from Xichang Satellite Launch Center in
Sichuan province atop a Long March 3A rocket last October, heralding the first
stage of the mainland's lunar exploration program, is among several other space
technologies on display at an exhibition in West Kowloon. China Space Expo -
Space Odyssey, which winds up at the end of this week at the PopTV Arena in West
Kowloon, offers a rare look at the Chang'e I, the Long March rocket and Shenzhou
spacecraft. A space documentary is also a part of the show. Exhibits are on show
in two separate areas - the China Space Expo hall, and the Space Odyssey hall.
The Space Expo hall has more than 10 pieces of key equipment on display, such as
the Long March-2 rocket launcher, Shenzhou re-entry capsule and the Shenzhou
spacecraft. Huang Chunping, the commander of Shenzhou No 5 and 6 missions who is
also vice-chairman of China Academy of Launch Vehicle Technology, hopes the show
will inspire the young and stir their ties to the mainland. Secretary for Home
Affairs Tsang Tak-sing says that the expo reflects the giant leap made by China
in space technology. The expo is open from 2-10pm from today to Friday and from
noon to 10pm this weekend. Tickets for adults are priced from HK$80 to HK$100,
while students, children, the handicapped and seniors pay HK$40 on weekdays and
HK$50 on weekends. The exhibition is presented by Beijing Science Association in
conjunction with Beijing 1831 Mobility Technology Centre and the China
Exhibition Organizing Committee. It is also supported by the China Space Museum,
PopTV Arena HK, Cosmedia Group, and Live Nation.
Hong Kong film
star Maggie Cheung has settled down in Beijing and turned a new page in her life
with German architect boyfriend. "I'm quite happy nowadays even when I've got no
work to do." Maggie said on Wednesday in a fashion event as the spokesperson of
a luxurious brand, Beijing Times reports. "I can stay home for a whole week, do
nothing but cook. And, believe it or not, I can make both Chinese and western
style food, such as fried eggplant, steamed ribs, beefsteak and salad." Maggie
Cheung said. Although she owns properties in Beijing, Hong Kong and Paris,
Maggie chose to live in Beijing, where she met her latest beau in June last
year. They were introduced to each other at a party and the two hit it off at
first sight. At the time Maggie, 43, just broke up with former boyfriend of four
years, French businessman Guillaume Brochard. Ole Scheeren, 36, a partner in
Dutch firm Office for Metropolitan Architecture (OMA), is leading the design of
the new headquarters building of China Central Television in Beijing. He was
also behind the Prada Epicenter store projects in New York and Los Angeles. He
is said to be a film buff. "Besides being tall and handsome, Ole is sweet and
considerate," said a friend of the pair, "They both love films and photography,
and seem to have endless topics." Maggie, who has starred in 75 films, expressed
her will to be an ordinary house wife, saying that "family and love matter the
most." When asked about her next film, she said "I don't know when."
Cheung Kong
(Holdings) (0001) said last year's underlying profit grew 73 percent to HK$10.4
billion, as strong investment gains covered stagnant property sales results.
Attributable profit, which includes revaluation gains and contribution from 49.9
percent associate Hutchison Whampoa (0013), rose 53 percent to HK$27.7 billion,
or HK$11.95 per share. Cheung Kong will pay HK$1.95 per share as final dividend,
compared to HK$1.74 a year ago. From investment and finance, largely equity
disposal, the company reaped HK$4.94 billion, versus HK$1.08 billion in 2006.
While property development profits were stagnant at HK$5.63 billion, earnings
from leasing, hotel and property management together grew 35 percent to HK$1.87
billion. The latter parts are better than expected, Macquarie analyst Eva Lee
said. In 2008, Cheung Kong plans to complete 21 projects in Greater China with
17.2 million sq ft of floor area, including The Capitol in Tseung Kwan O, a
project which was virtually pre-sold within a day and a half last month, with
prices just on par with the secondary market. Asked if the relatively low
selling prices achieved with The Capitol reflect Cheung Kong's bleak outlook for
the property market, deputy chairman Victor Li Tzar-kuoi said yesterday: "If we
didn't have a bright outlook, we wouldn't go on land hunting. Our logic is to
sell as quickly as possible." 
New diver drama may
end tragic tug search - Fire services rescuers are considering ending search
operations for 16 seamen trapped in a sunken Ukrainian tugboat off Lantau Island
after another diver got his air tube entangled in debris underwater. The
development came on the heels of news that Asia's largest floating derrick,
which could salvage the 2,700-tonne shipwreck, was not expected to arrive this
weekend as planned. Director of Fire Services Lo Chun- hung admitted for the
first time since the accident happened last Saturday that the chances of
survival of the missing Ukrainian seamen were slim while the danger for the
divers continued to escalate. "If the rescue operations underwater become too
dangerous, putting our divers under excessive threat, then we would make the
decision [to cease the operation]," he said. "The 32 rooms in the tugboat vary
in size and after searching them, we may have to search them over again.
Everyone should understand that the environment in which we are operating is
completely different from that when you go scuba-diving to see the coral." Lo
said the divers, who had now completed more than 40 dives to the wreck, had
searched six rooms of the sunken tugboat, one more than Wednesday's total. He
added the safety time limit for divers to stay underwater had already been
extended by 10 minutes to half an hour. The endangered diver, the third in two
days, had his air tube tangled in debris and had to be assisted to safety by a
standby diver. His stay underwater exceeded the safety limit by five minutes.
Meanwhile, salvage operations were dealt a blow yesterday when a spokesman for
the Guangzhou Salvage Bureau said the 4,000-tonne floating derrick Hua Tian Long
would not arrive over the weekend as planned. The spokesman said preparatory
salvage work underwater had not been completed and thus it would be futile even
if the derrick entered Hong Kong waters. An engineer of an Ukrainian delegation
led by vice minister of transport and communication Shevchenko Vasyl Vasylyovych
arrived at the scene yesterday to observe operations. He did not take questions
from reporters. A source said a marine police squad will head out to sea along
with the divers to immediately perform check ups if bodies are recovered. The
80-meter-long Ukrainian tugboat sank upside down at a depth of 37 meters after a
collision with mainland cargo ship Yao Hai last Saturday. The tugboat's captain
and six of his crew were rescued after the collision. Two bodies were recovered
early Wednesday. 
Democratic Party
founding member Martin Lee Chu-ming confirmed on Friday that he would step down
from the Legislative Council when his term ends in July. The decision by veteran
democrat Martin Lee Chu-ming not to seek re-election is likely to remove
uncertainty over whether former chief secretary Anson Chan Fang On-sang stands.
With Mr Lee out of the picture, Mrs Chan's participation would be crucial to the
pan-democratic camp's ambition of gaining four of the six Hong Kong Island seats
in the September Legco polls, Democratic Party sources said. Mrs Chan, who won
the by-election for the seat of late Democratic Alliance for the Betterment of
Hong Kong leader Ma Lik, has yet to say if she will run in September. She is not
a member of the Democratic Party but can be counted as a democrat. Meanwhile,
the sources said Mr Lee, former chairman of the Democratic Party, had made up
his mind only in the past few days. They said some political heavyweights, who
were not party members, had urged him to stay on, while other politicians had
urged him to step down to make room for new blood. "His family always wanted him
to step down. I would say that was an important concern for Mr Lee in coming to
his decision," a source close to the former chairman said. Party popularity
polls showing Mr Lee ranked around halfway down the list of potential Hong Kong
Island candidates was another factor, a veteran party member said. This emerged
in at least two polls conducted by the party to help in its planning, one last
year and one early this month. The sources said Mr Lee's decision had greatly
increased the possibility of Mrs Chan standing, which they said would give the
camp its only chance of securing four seats. The likely candidates from the
pan-democratic camp include Central and Western district councillor Kam Nai-wai,
former Democratic Party chairman Yeung Sum and Audrey Eu Yuet-mee and Tanya Chan
Suk-chong of the Civic Party. It is not clear whether Mrs Chan and Mr Kam would
be on a joint ticket, which is seen as the best way to secure Mr Kam a seat in
the legislature. A party source said it became urgent for Mr Lee to make up his
mind before Sunday, when the party will endorse the lists for the forthcoming
election. If Mr Lee had made his declaration then it would have overshadowed the
meeting, the source said.
Shares in Hong
Kong-based trading firm Li & Fung (SEHK: 0494), which sources goods for
Wal-Mart, fell nearly 10 per cent on Friday after its full-year results missed
expectations due to a slowdown in orders from its dominant United States market.
Shares ended 9.89 per cent lower at HK$28.70 while the Hang Seng Index rose 2.74
per cent. On Thursday, Li & Fung reported a 39 per cent rise in full-year net
profit to HK$3.06 billion but that fell short of an average forecast of HK$3.34
billion, according to analysts polled by Reuters Estimates. Merrill Lynch
downgraded the stock to neutral from buy, and Cazenove cut the stock to in-line
from outperform. “Given the market’s high expectations and the stock’s 42 per
cent rebound from its January low, we think the market is unlikely to look
through this miss,” Merrill said in a research note.
China Unicom
says no operational overhaul yet - It is still too early for China Unicom (SEHK:
0762, announcements, news) to overhaul its operations in anticipation of a
restructuring of the mainland telecommunications sector, chairman Chang Xiaobing
said in Hong Kong yesterday. The nation's smallest mobile operator is tipped to
be one of the parties most affected by the restructuring. Rumours have indicated
that Unicom's GSM mobile network could be merged with China Netcom Group (SEHK:
0906) Corp, while its smaller CDMA mobile business could be sold to China
Telecom Corp (SEHK: 0728). "I don't have anything new on the restructuring to
tell you," Mr Chang said. "It's too early to talk about our plans and our 3G
mobile-phone strategy post-restructuring. I think China is ready for 3G services
and I hope the government will issue a licence as soon as possible." Unicom
president Shang Bing yesterday denied rumours that the company had stopped
marketing activities for its CDMA business before a possible sale of assets to
China Telecom. "We haven't stopped our CDMA business," Mr Shang said. "We will
develop CDMA as usual and aim to increase high-tier users this year." Unicom
plans 30.95 billion yuan (HK$34.32 billion) in capital spending this year, up 20
per cent from 25.72 billion yuan last year. Of this, 73 per cent would be spent
on expanding its GSM network, he said. Net profit for the year to December
reached 9.29 billion yuan, up from 3.8 billion yuan in 2006. Revenue increased
4.4 per cent to 99.54 billion yuan, up from 95.34 billion yuan a year earlier.
The surge in net profit was due to a government tax refund on reinvestment in a
subsidiary of 2.78 billion yuan. Adjusted net profit, which excludes the impact
per share of convertible bonds issued to SK Telecom and the tax refund, rose
14.4 per cent to 7.09 billion yuan. The market had expected Unicom's adjusted
net profit to be between 7.16 billion yuan and 8 billion yuan. "Initial guidance
for this year appears weak," said Macquarie Research analyst Tim Smart in a
research note. "The company may face pressure to keep the profit margin due to
competitive pressure on the GSM business." Earnings per share were 71.3 fen, up
from 30.2 fen in the previous year. The company will pay a final dividend of 20
fen per share. Unicom's debts fell 84.9 per cent to 3.86 billion yuan last year
and the company generated free cash flow of 6.61 billion yuan. Unicom shares
fell 1.02 per cent to close at HK$17.54 yesterday. 
Tang Qingyan,
a worker in Yishion clothing store where five sales assistants were burned to
death in an arson attack by the rioters, tells the details of the atrocity
as journalists listen during an interview in Lhasa, capital of southwest China's
Tibet Autonomous Region, March 27, 2008. Reporters, from 19 media organizations
including the US-based Associated Press, Britain's Financial Times and the South
China Morning Post in Hong Kong, were touring the Tibetan capital on a three-day
trip following the recent riots.
A model is showing ABB's
energy-saving products to visitors at the China International Industry Fair 2007
in Shanghai on November 8, 2007. The company opened a global transformer design
center in Chongqing yesterday.
Hong
Kong Institute of Education plans to divert funding to a handful of key areas to
produce "world-leading" research centres, its president announced yesterday.
Anthony Cheung Bing-leung revealed the idea after a ceremony to officially
install him in his post, which he took up in January. "We will choose some
fields where we have an advantage, concentrate our resources on them and make
them leading units internationally," Professor Cheung said, adding that the plan
was the result of a recently launched exercise to make better use of resources
to enhance the institute's research capability. The institute had not yet
decided on which areas to focus, but he named four frontrunners - comparative
education, assessment, citizenship education and leadership in education. "We
also want to enhance our studies on education on the mainland," he added.
Professor Cheung also said a global search for chair professors had so far
attracted 130 candidates from around the world. At the installation ceremony, at
which Chief Executive Donald Tsang Yam-kuen officiated, Professor Cheung
reiterated his priorities for his term in office, which include attaining
university status for the institute and strengthening its teaching quality.
"Driven by our vision to become a university of education, we champion an
`education plus' concept, where subject disciplines are being enhanced in
addition to achieving excellence in professional education studies," he said. He
cited a plan to launch double-degree programmes in collaboration with local
universities over the coming three years as a way to implement the concept. A
working group under the University Grants Committee is studying the institute's
application for full university status and is expected to make its
recommendations to the government by the end of the year. This month, the HKIEd
unveiled plans for collaborations with the University of London and Cambridge
University focusing on postgraduate research. Professor Cheung succeeds
Professor Paul Morris.
Hutchison Whampoa (SEHK:
0013), billionaire Li Ka-shing’s ports-to-telecoms flagship, posted a 50 per
cent rise in second-half earnings boosted by its Canadian Husky Energy unit but
lagged forecasts because of higher-than-expected telecoms losses in Asia and
Europe. Analysts cheered hints of a turnaround at the firm’s long loss-making
third-generation (3G) mobile telecoms business in western Europe this year or
next year after cutting losses substantially in the second half of last year.
This year could mark a slowdown in the firm’s notoriously furious pace of asset
sales, as the firm rides out a global downturn that is depressing prices
worldwide. But Mr Li said acquisitions were likely as valuations became more
attractive. “It is highly likely that we will buy, definitely we will buy, when
opportunities arise,” Mr Li, known in Hong Kong as “Superman” for his
deal-making prowess, told reporters. Hutchison’s shares trimmed early gains to
close 0.9 per cent higher at HK$73.70 but outperformed a 0.2 per cent rise on
the blue-chip Hang Seng index. “The Hutchison results came below expectation but
its 3G turned EBITDA positive in the second half which triggered some bargain
hunting on the stock since its relatively cheap,” said Alex Tang, research
director at Core Pacific-Yamaichi International. The firm’s shares trade at less
than 10 times this year’s earnings versus the market’s roughly 14 times, and
just above one time its book value. Hutchison, the world’s largest container
ports operator with large investments in retail, energy and property, reported a
net profit of HK$1.84 billion in the second half, lagging the average forecast
of HK$3.15 billion polled by Reuters Estimates. Last year, it made provisions of
about HK$11.74 billion in provisions and write-offs for investments in Thailand,
Britain and Italy. Its 3G loss before interest and taxes narrowed to HK$6.62
billion in the six months to December from HK$11.32 billion in the first half of
last year. “We will raise the dividend payout when 3G turns P&L positive,” Mr Li
said. But he did not give a timeframe for when the service, which has run at a
loss since it was launched in Britain in 2003, will become profitable. Hutchison
reported a net profit of HK$30.6 billion for the full year last year, up 53 per
cent from HK$20.03 billion a year ago and slightly lagging the average forecast
of HK$31.91 billion. The net included an exceptional gain of HK$35.8 billion
from the sale of its Indian mobile phone network in the first half. Expectations
for an economic downturn could put pressure on Hutchison’s world-leading
container ports business and sprawling retail operations, while further
forestalling its long-discussed spinoff of Italian telecoms unit 3 Italia. But
an expected breakeven in its 3G arm and higher contributions from Husky Energy
should result in a net profit of HK$10.9 billion for Hutchison this year,
analysts said. Depressed by its US$25 billion 3G investment that has yet to bear
fruit or even yield market spin-offs, Hutchison shares rose just 14 per cent in
the second half of last year versus a 28 per cent gain in the broader market.
Shares of sister firm and property developer Cheung Kong rose 41 per cent in the
same period. Hutchison underperformed Cheung Kong (Holdings) (SEHK: 0001), which
posted a 56 per cent jump in the second-half earnings. The firms are the twin
flagships of Mr Li’s multi-billion dollar empire. Cheung Kong, which holds
nearly 50 per cent of Hutchison, posted a net profit of HK$9.14 billion in the
six months to December 31 on the back of higher property sales, stronger
investment gains and contributions from Hutchison. The results, which compared
with a profit of HK$5.86 billion in the same period in 2006, beat the consensus
forecast of HK$7.32 billion according to 11 analysts polled by Reuters
Estimates. For the whole of last year, Cheung Kong earned HK$27.68 billion, up
53 per cent and was higher than the consensus forecast of HK$25.86 billion. A
slowing global economy and looming US recession could put a lid on Hong Kong
property prices in the short term, as underscored by slowing property sales in
the first quarter of this year. But Cheung Kong’s vast land bank spanning Hong
Kong and China should help to offset that, analysts said. 
The perils of the
rescue and salvage mission on a sunken tugboat off Tuen Mun were underscored
yesterday when two divers were caught in dangerous situations on a day when the
first two bodies were recovered. The incidents were disclosed by marine
officials, who said the recovery of the Ukrainian supply tugboat Neftegaz-67
from the muddy seabed could take more than a week. The bodies of two of 18
missing seamen were found early yesterday after the divers for the first time
gained access to the hull. One body was found in the auxiliary engine room at
about midnight and the other in the locker room at 2.20am. The tug's Ukrainian
owner, Chernomorneftegaz, identified the two men as Alexander Piskunov, 33, and
Alexander Kardash, 31. Piskunov, from Chernomorskoye, was a motor mechanic, and
Kardash, from Nikolayev, was a sailor. Both are survived by their wives and
Piskunov also by a daughter, born in 1996. Chief fire officer Chow Wing-tak said
only five of 32 cabins had been searched and the further the divers went, the
more dangerous it became. One diver's air hose became entangled in floating
objects inside the hull yesterday afternoon, and he had to be released by his
standby diver. "The time he stayed in the water exceeded the safety limit, and
he had to undergo decompression for 50 minutes before reaching the surface," Mr
Chow said. "It is very fortunate that his condition is OK, and he resumed his
part in the rescue operation later." In the morning, another diver developed
decompression sickness while searching for bodies. He received treatment in a
decompression chamber on a fireboat and was later sent to a clinic to be
examined. The marine officials could not say how long it would take to search
all the cabins on the 80-metre vessel. Divers can enter the water only four
times in 24 hours when the tides turn and the powerful currents sweeping the
seabed become weaker. Each "window" can accommodate up to three diving
operations. Diving coach Steve Chan said it was important for the divers to be
safe as the situation inside the cabin was very dangerous. "It is no more a
rescue operation, so it's not worth jeopardising the lives of our divers," he
said. "The wreck should first be lifted up, and then get the bodies out."
Thirty-two diving attempts had been made between the collision last Saturday and
yesterday afternoon. Director of Marine Roger Tupper said an agreement was being
worked on with the owner of the sunken ship and the salvage operator to lift the
wreck from the seabed. "But these operations take time, and we are looking at at
least seven days - possibly 10 - if things go smoothly to get the [salvage]
vessel on station. That is the advice from the salvage contractor," Mr Tupper
said. Chernomorneftegaz said the two recovered bodies would be taken home soon.
Surviving crew members who escaped harm would leave Hong Kong for the company's
home base of Krym, the company said. A fund for the families of the victims has
been formed under the company's name.
The country's "Go West" policy to develop
the lagging western regions is gaining ground, a United Nations report has
shown. The heartening signs are largely from government efforts to improve trade
and investment, the UN Economic and Social Commission for Asia and the Pacific
said.
KFC wins Chinese 'Teadog'
lawsuit - A Beijing court has rejected the claim of a Chinese man and his
grandson for reputation damage in consuming a KFC "teadog set meal", the local
media reported on Thursday. Tongzhou District court ruled on Tuesday that the
two plaintiffs surnamed Jin would not get compensation from the KFC fast-food
chain as they couldn't provide substantive evidence to prove the set meal had
led to a "lower social evaluation" and reputation damage to them, as they
claimed. According to The Beijing News, the Jins bought a "teadog set meal" in a
KFC store in the capital's east Tongzhou District on Dec. 15. The two had found
an advert in the shop promoting the set meal, which the elder Jin thought meant
man and dog sharing the meal. He then sued KFC for insulting consumers, because
"according to the advertisement, my grandson has eaten dog food and we two have
become 'dog friends'", -- a term that means "a dissolute company" in Chinese.
Representatives for KFC, however, said the set meal was so named because
consumers could get a calendar featuring teadogs, a Japanese cartoon image, if
they paid extra money through a promotion. KFC argued the advertisement was
meant to convey the message that teadogs were men's good friends, and the advert
itself didn't break the law.
Chinese President Hu Jintao expressed his views on the Taiwan and Tibet issues
to his U.S. counterpart George W. Bush during talks over the telephone held
Wednesday.
Passengers
walk in the new Terminal 2 of the Pudong International Airport on its first
operating day in Shanghai, East China, March 26, 2008.
Farmers sow in
Yichang, Hubei province on March 26, 2008. China promised yesterday to raise
financial support for agricultural production as part of a larger effort to cool
an inflation surge blamed on food shortage.
The former
Communist Party chief of Shanghai who was sacked in one of the biggest
corruption scandals to hit the ruling Communist Party in recent years has gone
on trial, his lawyer said yesterday. The one-day trial of Chen Liangyu, 61, was
held in the northern city of Tianjin on Tuesday, lawyer Gao Zicheng said. Gao
said he did not know when the verdict would be delivered and the exact charges
that Chen faced. Press reports earlier this month said Chen was likely to be
charged with bribery and abuse of power and could be sentenced to death. Chen, a
former member of the Communist Party's elite politburo, was ousted in 2006 after
a probe found US$480 million (HK$3.74 billion) from the city's retirement fund
was illegally spent on speculative real estate and road projects. The scandal
implicated at least 20 other officials and businessmen. It was the biggest
corruption scandal for the Chinese government since former Beijing mayor Chen
Xitong was removed from his post in 1995 and sentenced to 16 years in jail.
Phone calls to the Tianjin court where Chen was tried went unanswered. A
spokeswoman with the Shanghai Municipal government declined to comment. 
Hong Yizhong, head coach of Chinese Taipei's baseball
team, presents a signed bat during a celebration honoring Chinese Taiwan's
baseball qualification for the Olympic Games in Taipei, March 24, 2008. Taiwan's
newly elected leader Ma Ying-jeou will root for the island's baseball team
during the Beijing Olympic Games, according to the local news agency udn.com.
"Please be assured. And I will try my best to support the island's sporting
cause," Ma said on Monday during a celebration honoring Taipei's baseball
qualification for the Olympic Games. "The policy is unchanged with regards to
having Taiwan's team go to the Olympics," added Ma when giving his best wishes
to the team. Ma attended the celebration less than 72 hours after he defeated
Frank Hsieh of the Democratic Progressive Party (DPP) in the island's leadership
election with a landslide victory on March 22. Ma got 7.6587 million ballots, or
58.45 percent of the vote with his running mate Vincent Siew, while Hsieh got
5.4452 million ballots, or 41.55 percent of the votes. During Monday's event, Ma
took a group photo with the baseball team including the 19 players who helped
the local team beat Australia and South Africa at the qualifying tournament in
Taipei on March 14. "The Olympic qualifying tournament was held during the
Taiwan election. Whenever I had a break, I watched the TV broadcasts," udn.com
cited Ma, who was pleased to see Taiwan's baseball team qualify for the Games.
Reports also say that Ma is a big sports fan, including baseball. When he was
mayor of Taipei, he spearheaded the construction of sports facilities like the
Skydome for baseball.
BOC
Hong Kong (Holdings) (2388) yesterday said net profit last year rose 10.3
percent despite an impairment charge of HK$1.5 billion for its subprime-related
investment in asset- backed debt securities. Earnings per share were HK$1.46 and
a final dividend of 48.7 HK cents per share was declared. BOCHK chief financial
officer Raymond Lee Wing-hung said the bank booked impairment allowances of
HK$1.253 billion for its subprime investment last year. A further loss of HK$260
million was incurred when the bank sold some of the subprime-related ABS. As at
the end of 2007, BOCHK's subprime investment stood at HK$4.118 billion after
deducting the above charges. It declined to HK$2.1 billion last month. "Prices
of subprime- related bonds have stabilized recently but it is difficult to tell
if the worst situation has passed or not," said Lee. BOCHK's net profit rose
10.3 percent to HK$15.4 billion last year on strong growth in its core
businesses. Net interest income increased by 22.5 percent to HK$19.4 billion on
widened net interest margin. NIM increased to 2.07 percent from 1.9 percent in
2006. Net fees and commission income surged 68.8 percent to HK$6.27 billion,
driven by strong stock market activity last year. Including the subprime-related
losses, BOCHK booked an aggregate HK$2.133 billion in impairment allowances on
its ABS portfolio. Excluding this, operating profit was up 32 percent to HK$19.5
billion. BOCHK chief executive He Guangbei said the bank will continue to
increase its investment in the mainland business. "We hope mainland business
will become the bank's growth engine in the long run," he said. Last year,
operating profit before impairment allowances on BOCHK's mainland business
jumped 53.5 percent to HK$200 million. 
China Netcom (0906) reported net profit for 2007 inched up 0.2 percent to 10.58
billion yuan (HK$11.64 billion), casting aside analyst expectations of a
decline, as a jump in revenues from value-added services offset a decline in the
firm's traditional fixed-line business. Turnover, excluding upfront connection
fees, rose 0.9 percent to 82.5 billion yuan. "The increase of broadband users
entered a stage of explosive growth in 2007," chairman Zhang Chunjiang said
yesterday. Analysts had expected net profit at the smaller of China's two
fixed-line operators to fall 6.5 percent to 9.87 billion yuan, according to a
Bloomberg survey of 24 analysts. The profit figures include net profit of 624
million yuan from discontinued operations, but exclude amortized upfront
connection fees of 1.52 billion yuan. Net profit including upfront connection
fees fell 6.7 percent to 12.1 billion yuan. Revenues from traditional fixed-line
business fell 14 percent to 43.22 billion yuan, as the firm lost 3.2 million
customers and fixed-line average revenue per user fell 9.6 percent to 36.6 yuan
per month. But revenues from newer non-voice business segments, including ring
tones, internet, and consulting services, surged 39 percent to 28.656 billion
yuan. Revenues from broadband services jumped 39.5 percent to 13.835 billion
yuan, from 9.916 billion yuan in 2006. Average revenue per user for broadband
rose 3.9 percent to 67.4 yuan monthly. The firm's advertising and media division
reported revenues skyrocketed 692 percent to 380 million yuan after it got a
display advertising license from the government and focused on growing its
yellow pages, voice search, and online advertising businesses. Netcom said it
has signed more contracts to handle call and data center services for government
agencies and corporates, leading revenues for its IT consulting and outsourcing
business to soar 367 percent to 3.99 billion yuan. Capital expenditures declined
15.8 percent to 20.684 billion yuan, a figure 316 million yuan less than the
previous guidance provided by management. Free cash flow climbed 57 percent to
11.8 billion yuan. Netcom declared a final dividend of 59.2 HK cents, up 7.1
percent from 55.3 HK cents in 2006. 
Yum! Brands Inc China, which operates KFC
and Pizza Hut in China, on Tuesday published a white paper on its food safety
policy, outlining its domestic suppliers' status and their efforts in
safeguarding food security. Sam Su, Yum! Brands Inc Global vice president said
the company had full confidence in its Chinese suppliers. The paper said after
years of continuous hard work, "the overall quality of Chinese food has improved
steadily, together with the food safety status". Yum! Brands has more than 500
suppliers in China, covering chicken, vegetables, bread and facilities, among
others. The statistics showed that chicken sold in all of its KFC and Pizza
Huts, in addition to 90 percent of other foodstuffs, was provided by Chinese
suppliers within the country. "All the food ingredient suppliers in China can
reach the standard set by the Yum!", said Su, adding the paper was a commitment
to the Chinese society on the food safety issue. Yum! was also willing to
receive the supervision of the government, consumers and the media, said Su,
also the president of the company's China operation. The company has more than
35,000 chain restaurants in 110 countries, including 2,500 in China. 
Celien Dion, driven by power of love, to
debut in China - Canadian songstress Celine Dion has been an international
superstar for decades and along the way there have been trials, tribulations and
criticism. But she is back once again, and she has promised a show next month.
China's Ding Junhui
plays a shot during the first round game against Joe Parry from England at the
2008 World Snooker China Open in Beijing March 25, 2008. The Chinese hopeful
advanced into the last 16 5-3 with match breaks of 71, 71, 63, 90 and 55.
The suspense of who
would be the first Chinese torchbearer for the Beijing Olympics gradually built
up over the past month. Yesterday, it ended with Olympic champion Luo Xuejuan
chosen for the glory. After the Olympic flame was ignited yesterday evening
Beijing time, the Athens 100m breaststroke gold medalist received the torch from
the first torchbearer, Greek athlete Alexandros Nikolaidis, and ran 200m from
the grove of Pierre De Coubertin. "To be the first Chinese torchbearer is a
great honor," said the 24-year-old Luo. "The honor is not just for me, but for
all the Chinese athletes, for Beijing and for China." Luo became the national
champion when she was only 16 and won the 50m and the 100m breaststroke gold
medals at the 2001 World Championships. Before retiring last year because of
severe heart problems, Luo had established herself as the top Chinese swimmer in
the world, winning one Olympic gold, five world championship titles and numerous
Asian and national titles. Luo, who was nominated by Volkswagen, the supplier of
the Beijing 2008 Olympic torch relay, said she was as happy as winning gold
medals when she heard about the privilege. "Through passing the flame, I hope I
can also pass to the whole world the Chinese people's enthusiasm toward the
Olympics," she said. A Volkswagen official listed several reasons as to why Luo
was chosen. "At the Athens Games, Luo was the only swimming gold medalist from
China," said Ye Wen, communication director of Volkswagen. "After retirement,
she chose to study to further improve herself and contributed a lot in public
activities, which set a good example." Luo, a student of Peking University,
said: "Retiring was a hard decision for me, and after that I was always thinking
of making some contribution to the Beijing Games Now I have realized my dream."
It was especially sweet given it came true in the same country she won Olympic
glory.
Filling stations on
the booming east coast were rationing diesel, staff at the facilities said
yesterday, despite Beijing's insistence that its refiners will ensure supplies
at unprofitable state-set prices. "The line outside our station is at least one
kilometer long," said a station manager in Fujian province. Other stations said
they had sold out of the day's supply by noon and did not know if a delivery
would arrive today. In Guangzhou, diesel was rationed to 300 yuan (HK$331) for
cash sales - enough for a family car but just a small portion of a truck tank -
and vehicles were stuck in queues for up to 20 minutes. The government said that
fuel supplies were adequate and that reports of rationing reflected only
sporadic problems caused by demand from farmers planting their spring crops and
the lingering impact of unusually severe weather. But as rationing and queues
spread inland and to the country's financial center, Shanghai, there were echoes
of last October's supply crisis, China's worst in four years. Last year, in the
face of large refining losses, majors PetroChina (0857) and Sinopec (0386)
slowed deliveries and cut supplies to the market, creating shortages across the
nation.