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June 30, 2008
Exchange Fund quarterly loss possible, warns Yam - Hong Kong's HK$1.468 trillion Exchange Fund may post a loss on its investments in the second quarter of this year, Hong Kong Monetary Authority chief executive Joseph Yam Chi-kwong warned yesterday. Pressure is mounting for more Hong Kong lenders to hike mortgage rates, senior bankers said yesterday, as funding costs remain at a high level and prime rates will remain unchanged following the Fed meeting. Hong Kong’s top officials – from Friday evening to Sunday – will head a special delegation which will visit areas of Sichuan damaged by last month’s earthquake. The delegation will be lead by Chief Executive Donald Tsang Yam-kuen and Chief Secretary Henry Tang Ying-yen, a government spokesman said on Friday. Sichuan was struck by a devastating earthquake on May 12. The quake caused extensive damage in the western mainland province – killing thousands of people and making many others homeless. According to official figures some 68,636 people died and 374,171 injured, with 18,467 listed as missing. The quake left about 4.8 million people homeless – though the number could be as high as 11 million. The government delegation will oversee Hong Kong’s contribution to reconstruction work in quake-affected areas and liaise with mainland authorities. In the aftermath of the earthquake, individuals, companies and organisations in Hong Kong have donated more than HK$1 billion to earthquake relief efforts. The government has given HK$300 million, as well as relief materials such as tents, and has also sent medical and rescue teams. Mr Tsang and Mr Tang will meet the officials in Sichuan to discuss how Hong Kong can further assist in reconstruction work. The spokesman said other top officials would also go to Sichuan with delegation. They will include Secretary for Constitutional and Mainland Affairs Stephen Lam Sui-lung, Secretary for Development Carrie Lam Cheng Yuet-ngor, the director of the chief executive’s office, Norman Chan Tak-lam, and senior civil servants. Financial Secretary John Tsang Chun-wah will be acting chief executive while Mr Tsang is away. Secretary for Education Michael Suen Ming-yueng will be acting chief secretary. Former bank executive wins tax battle over HK$15.1m payout - A German bank executive has won a legal victory in his battle with the city's tax man. The Court of First Instance ruled yesterday that Walter Fuchs does not have to pay tax on a chunk of the HK$15.1 million he pocketed after being fired from the Hong Kong office of German bank Bayerische Hypo-und Vereinsbank. The case centred on whether the money was taxable income, or termination pay, which is typically tax-free in Hong Kong. In his written decision yesterday, Mr Justice Michael Burrell said that HK$8.9 million of the payout was the same as regular income and should be taxed. But the remaining HK$6.2 million was beyond the reach of the Inland Revenue Department because it was a one-off termination payment. The judge also awarded the bank's former head of Asian operations half his legal costs. Mr Fuchs was fired after a company takeover two years ago. Separately, he also received HK$3.1 million salary for the last year of his contract, which the Inland Revenue did not tax. But the Inland Revenue ruled last year that the remaining payout - about HK$15 million - was taxable. Mr Fuchs appealed against the decision. "If [tax authorities] don't appeal this, they could run into problems in future cases," said Jennifer Wong, a tax partner at consulting firm KPMG. "I would say that this [the ruling] could be quite controversial." The Inland Revenue reasoned that the payment was income because it was spelled out in the banker's employment contract. But Mr Fuchs countered that the money was simply non-taxable damages related to his sacking. Under the terms of the executive's three-year contract, his sacking would require the bank to make a one-time payout equal to double his annual salary - about HK$6 million - plus the average of his annual bonuses, or HK$9 million. "They are two separate payments which are arguably different in nature and attract different legal consequences," Mr Justice Burrell wrote in his judgment. The doubled salary would not have been paid out if Mr Fuchs continued working, suggesting the HK$6 million was "designed to soften the blow of premature unemployment", Mr Justice Burrell added. KPMG's Ms Wong said employees could avoid similar battles if they did not have the details of termination pay spelled out in their employment contracts. "The chances of winning a case against Inland Revenue would improve," she added. "But that could lead to disputes with the employer when an employee [is fired]."
An agreement to let Taipei participate in the 2010 World Expo in Shanghai was signed yesterday, confirming the first official Taiwanese involvement in a world fair since the island was ousted from the United Nations in 1971. Taipei Mayor Hau Lung-bin also invited Shanghai Mayor Han Zheng to be his guest at the 2010 International Gardening and Horticulture Exposition in Taipei. Mr Han, who seemed to be caught off guard by the invitation, did not make any firm commitment. Any visits by mainland officials to Taiwan could be controversial since there are no official relations between the governments on the two sides of the Taiwan Strait. Chen Yunlin , chairman of the Association for Relations Across the Taiwan Straits, a semi-official body set up by Beijing to handle affairs with Taiwan, has not yet visited the island. Martin Ting, general producer of the expo in Taipei, said: "We hope Shanghai can join the event. Even if they can't participate on an official level, they can send their non-government organisations to Taipei." Also attending the two mayors' meeting was Terry Guo Tai-ming, chairman and founder of Hon Hai Group and one of the richest men in Taiwan. Mr Guo sat next to Mr Hau at the meeting, though he was not a formal member of the Taipei mayor's delegation. The tycoon pledged to donate NT$300 million (HK$77.1 million) to the Taipei government to set up its pavilion at the Expo. Taipei, with 800 square metres to showcase its wireless broadband internet infrastructure and garbage recycling system, will occupy one of the most prominent locations on the Expo grounds. Zhou Hanmin, deputy director of the Expo co-ordinating bureau, said it would stand right next to the Expo's landmark, a 165-metre chimney called the Harmony Tower that he said reflected Beijing's goal of building a harmonious society. Mr Hau returns to Taipei today after leading a delegation of 25 people which arrived in Shanghai on Monday. It was his second visit to Shanghai; the first was in 2005 as head of Taiwan's Red Cross. Yesterday, he toured the Expo construction site, including the Taipei pavilion's location. He also revealed he would return to Shanghai for the event, which takes place between May 1 and October 31, 2010. The organising committee is expecting it to attract more than 70 million visitors. The horticulture exposition in Taipei will run from November 2010 to April 2011. June 27 - 29, 2008
As Macao's tourism industry continues its rapid development, the island city saw its market share of international markets in visitor arrivals rose to 10.5 percent in the first five months of this year, the city's tourism chief said on Wednesday. During the period, visitor arrivals almost reached 12.6 million, registering an increase of 17.4 percent year-on-year, and the Chinese Mainland, Hong Kong and Taiwan continued to be the three largest visitor generating markets, said Joao Manuel Costa Antunes, Director of Macao Government Tourist Office (MGTO). Antunes presented the tourism development of Macao and outlined MGTO's future marketing strategies at the opening ceremony of the MGTO Annual Marketing Meeting held here on Wednesday. He stressed that MGTO is moving toward the goal of source markets and tourism product diversification. According to a press release from MGTO, it is putting forward a number of tactics to attract more tourists, which include reinforcing cooperation with airlines on new routes, developing and promoting new tourism products, such as wedding/honeymoon package and strengthening regional cooperation and multi- destination travel. In addition, the Macao Special Administrative Region Government has provided steadfast support towards the development of business travel and the MICE industry, Antunes added.
Tycoon and politician Tsang Hin-chi and son Ricky Tsang
Chi-ming have donated HK$10 million for the training of volunteers helping
rebuild earthquake- devastated Sichuan.
Taipei mayor calls for direct flights - The mayor of Taipei hopes to soon see a direct flight open between Shanghai and Taipei. A direct link between Shanghai's Hongqiao International Airport and Taipei's Songshan Airport will benefit both cities, Hau Lung-bin said yesterday. He was speaking during an official visit to the Shanghai airport. "I could imagine that Hongqiao (district) will become an important business and transport hub for Shanghai and the Yangtze River Delta by 2010," Hau said. "And with the large mass of population and business clusters, Songshan (district in Taipei) will also play a key role in Taiwan's future economic development," he said. "A direct flight will reduce travel time between the two hubs to about 80 minutes, which will closely link Taipei and Shanghai, as well as the entire Yangtze River Delta region economically," he said. "What we need to plan is how to combine our efforts in mutual development." Currently, there is no direct air route between the two cites. Travelers must transfer in Hong Kong or Macao. Chartered flights which are available on occasions like the Spring Festival take about three hours, and planes have to stop off or fly through Hong Kong or Macao. Regular weekend charter flights starts from July 4. After visiting the airport, Hau and his delegation visited the Shanghai municipal urban planning museum. Hau wrote in the museum's signing book: "May dreams of Shanghai and Taipei come true." Today, Hau will visit the Shanghai Wild Animals Park. Jason Yeh, director of Taipei Zoo, told China Daily yesterday that they would not discuss importing pandas from the mainland on this visit, as they had originally planned. The reason is that representatives from the China Wildlife Conservation Association are not available to meet as expected. "But we are very confident in getting the pandas eventually," Yeh said. Several zoos on the island are vying for the right to host the pair of pandas. Yeh said that as early as 1995, Taipei Zoo started sending staff to the mainland and zoos around the world, which have pandas, for trainings on raising pandas. "We have spent more than NT$310 million ($10.3 million) on building facilities for pandas," Yeh said. "The weather from November to March will be cooler in Taiwan and we hope they will come during that time period." Officials from both cities are expected to discuss zoo exchange programs for other rare animals, he said. Lin Hwa-Ching, CEO of the Wildlife Conservation & Research Center at Taipei Zoo, said the exchanges may include Yangtze River alligators and black snub-nosed monkeys from Shanghai and orangutans, white-handed gibbons and sun bears from Taiwan.
China has developed a new-generation
supersonic trainer aircraft with state-of-the-art turbines and a full authority
digital engine control. Shanghai film fest a far cry from Cannes - The Shanghai festival, which recently celebrated its 11th anniversary on June 22, fails to claim its own name to fame - its image is at best, vague. June 24 - 26, 2008
No more hurdles to Ho flagship listing - Casino mogul Stanley Ho Hung-sun's gaming flagship SJM Holdings finally overcame all hurdles yesterday to kick off its roadshow, with its retail book expected to be open from Thursday until July 2. Euro V duty waiver `just drop in bucket' - The government has decided to waive the duty on Euro V diesel but has shot down calls to lower the tax on unleaded petrol and ultra-low sulfur diesel as well as fuel subsidies. Chief Executive Donald Tsang Yam-kuen will lead a Hong Kong government delegation to quake-hit parts of Sichuan this weekend to find out how the city can help in their reconstruction. A government source said the delegation, which will spend three days in the southwestern province, would be briefed by the provincial government about the latest situation in the counties affected by the magnitude- 8 earthquake on May 12, which killed more than 70,000 people. "We hope to set up a mechanism by which Hong Kong and Sichuan government officials can discuss co-operation in the reconstruction," said the source. Among those travelling to Sichuan will be Secretary for Constitutional and Mainland Affairs Stephen Lam Sui-lung, Secretary for Development Carrie Lam Cheng Yuet-ngor, the director of the Chief Executive's Office, Norman Chan Tak-lam, and senior civil servants. Macau Chief Executive Edmund Ho Hau-wah will also lead a delegation to Sichuan from Friday to Sunday. In witnessing the destruction first-hand, the delegations will be following in the footsteps of Premier Wen Jiabao and singer-actor Andy Lau Tak-wah. Individuals, companies and organisations in Hong Kong have donated more than HK$1 billion to earthquake relief efforts. More than 1,000 Hongkongers have registered as quake relief volunteers. The government has given HK$300 million as well as sending medical and rescue teams. Conservancy Association chairman Albert Lai Kwong-tak, a civil engineer, has teamed up with fellow Hong Kong engineers and professionals to plan redevelopment in the destruction zone. He said the group they had formed, Engineers Without Borders, had sent a team to Sichuan this month to make a site assessment and that another trip was being arranged for early next month. Chinese University political analyst Ivan Choy Chi-keung said Mr Tsang was worried about his falling popularity and the perception that he ducks controversy. He pointed to the publicity and photo opportunities the trip to Sichuan would generate, and said: "This will send the message that Mr Tsang is still in charge." Mr Tsang's popularity fell amid the recent controversy over the administration's handling of new appointments to his governing team. A University of Hong Kong opinion survey early this month found his approval rating had dropped to 60.8 out of 100, against 66 when the appointments were announced in May. Tailor, hotel staff named in bribery cases - Eleven people - all suspected of helping to divert hotel guests illegally to a well-known Kowloon tailor - have been charged with bribery in four separate cases, the ICAC said yesterday. In the first case, the Independent Commission Against Corruption alleged that between December 2001 and January last year, the proprietor and three employees of Baron Kay's Tailor conspired and offered advantages to concierge staff of six hotels - The Marco Polo Prince, The Peninsula, The Marco Polo Gateway, Renaissance Kowloon Hotel Hong Kong, Marco Polo Hong Kong Hotel and Marriott Hong Kong - in return for them referring hotel guests. The ICAC named the defendants as George Kay Wai-ming, 48, proprietor of Baron Kay's Tailor; salesman Ngai Yan-lung, 61; and accounts clerks Wong Lai-ching, 52, and Lee Fung-ho, 47. Kay, Ngai and Wong each faced one count of conspiracy to offer advantages to agents, while Kay, Ngai and Lee faced a similar conspiracy offence with Wong, the ICAC said. Lee also faced one charge of perverting the course of justice. Baron Kay's Tailor, in Mody Road in Tsim Sha Tsui, has been listed in travel guides and on the Hong Kong Tourism Board's recommended shopping list. In the second case, three concierge staff at The Marco Polo Gateway hotel and two of its bell captains each face one count of conspiring to accept advantages between mid- 2005 and January this year. The ICAC said those defendants were Wong Hing-cheung, 60, Pan Wai-man, 43, and Yeung Wing-wai, 33, Cheng Chi-chiu, 59, and Leung Siu-ho, 46. In the third case, Chan Wing-yin, 46, chief concierge at the Harbour Plaza Metropolis, has been charged with one count of conspiring to accept advantages between January 2004 and November 2006. In the last case, Felix Wong Tim-ki, 27, a concierge clerk at The Peninsula, faces one count of being an agent accepting an advantage - allegedly a suit jacket, a pair of trousers and a shirt - in early 2004. The defendants, all on ICAC bail, will appear in Kowloon City Court this week.
Baosteel Group, China's top steel producer, plans to pay 28.68 billion yuan (HK$32.57 billion) for a controlling stake in a new steel mill, which will merge two existing mills, as Beijing calls for the formation of national giants to rival the likes of ArcelorMittal. Foreign banks struggle to keep talent - While foreign banks in China foresee robust growth in the mainland this year, those overseas lenders are struggling to retain senior executives, according to a survey conducted by PricewaterhouseCoopers. The survey found the three most difficult positions to fill are senior executives, compliance officers and wealth management officers. China Southern Airlines (1055), the nation's largest carrier by fleet size, has applied for an increase in fuel surcharge to offset expected losses resulting from last Friday's nationwide fuel price hike. Baosteel Group, China's largest steelmaker, agreed to pay up to 96.5 per cent more for its iron ore this year in a term contract with Australian miner Rio Tinto. Taipei Mayor Hau Lung-bin has arrived in Shanghai to close a deal that will allow a participant from Taiwan to join in the 2010 World Expo - the island's first official return to a world fair since it was ousted from the UN in 1971. Mr Hau, who led a 25-member delegation to Shanghai yesterday for a five-day visit, is scheduled to sign Taipei up for the "best cities for urban practices" exhibition from May to October 2010. Taipei will showcase its wireless broadband internet infrastructure and rubbish recycling system. "The most important mission of this trip is to witness the signing of the agreement for Taipei to take part in Shanghai Expo 2010, showing how Taipei has become a wireless city and how it has recycled its rubbish into useful things," Mr Hau, the first Taipei mayor to visit the mainland, said before his departure. The city's rubbish is separated into reusable and non-reusable categories. Taipei competed with 130 cities worldwide to enter the exhibition. The entry as a city rather than a country has allowed the island to return to Expo. Taiwan last participated in an Expo in Osaka, Japan, in 1970 - the year before the UN awarded its China seat to Beijing. In 2005, by signing an agreement with a Japanese restaurant and paying a royalty of NT$15 million (HK$3.85 million), Taiwan was able to host a food stall - in the restaurant's name - showcasing the island's best food at Expo 2005 in Aichi, Japan. Mr Hau said that to avoid being criticised by the opposition Democratic Progressive Party for wasting taxpayers' money by taking part in the exhibition, the city government obtained some funding from the Hon Hai Group, one of Taiwan's leading electronics makers. Terry Guo Tai-min, head of Hon Hai and the third-richest man in Taiwan, signed a NT$300 million contract with Mr Hau on Sunday to build and operate an exhibition hall for Taipei. While on the mainland, Mr Hau will also be competing against other Taiwanese cities for the two pandas the mainland offered to send the island as a gift after then Kuomintang chairman Lien Chan met mainland President Hu Jintao in 2005, the Taipei mayor said. "We will also visit the Shanghai Wild Animal Park, and hope to learn how it takes care of pandas," he said. Taipei is vying with Taichung, Taoyuan and Kaohsiung, but it is the only city to have built a NT$250 million panda house and bamboo grove for the two pandas. City officials said Mr Hau would also discuss with mainland authorities the possibility of hosting two other rare species - the snub-nosed monkey and golden monkey - that Beijing has promised to send to Taiwan as a gift after People First Party chairman James Soong Chu-yu's mainland visit in the same year. Mr Hau will also survey Shanghai's transport facilities and other public works, including the project of developing Hongqiao airport into a multiple transport hub in order to draw on Shanghai's experience in airport development for the remodeling of Taipei's 60-year-old airport. Mr Hau met Shanghai's deputy mayor, Tang Dengjie , last night. He is scheduled to meet his Shanghai counterpart, Han Zheng , on Thursday. June 20 - 23, 2008
Three orders implementing double taxation relief arrangements for flights between Hong Kong, Mexico and Finland will be gazetted Friday, the Transport and Housing Bureau said here Wednesday. The three jurisdictions' airlines will be tax exempt for income and profits derived from international flights in a bid to cut operation costs, and improve income and efficiency, the bureau said. The Specification of Arrangements (Government of the Republic of Finland) (Avoidance of Double Taxation on Income from Aircraft Operation) Order will no longer be required, according to the bureau. The orders will be submitted at the Legislative Council on June 25. People in the transport sector are angry at the government for what they see as delaying tactics in the form of a pledge to review duty on fuel. "The government is acting irresponsibly," said Stanley Chaing Chi- wai, who organized a two-day protest last week. "It is still considering when it should make a decision." Earlier yesterday a government spokesman said the decision to conduct a review had been made after "listening to the trade's views." The offer to conduct a review came one day before legislators are to debate a motion calling for lower duties, although senior government officials are reportedly against any reductions. Drivers staged a truck blockade in Central last Tuesday, causing traffic jams, while hundreds of protesters took part in a two-day sit-in outside Government House. The protesters last Wednesday gave the government a week to act on the fuel tax before it shaped for more rallies. Chaing said yesterday he was angry about the government's response. The removal of the duty would only cost the government about HK$400 million and would not affect revenue much, Chaing said. The transport sector has been hit by soaring fuel prices this year, with some businesses forced to close. A fuel tax cut would help offset the higher prices, people in the sector argue. A government spokeswoman has, meanwhile, defended the tariff, saying Hong Kong's diesel duty represented less than 5 percent of the retail price and was among the world's lowest. She also noted that a concessionary duty of HK$0.56 per liter for Euro V diesel applied from last December. That fell from an original rate of HK$2.89 per liter. And the concessionary duty rate of ultra-low sulfur diesel was only HK$1.11 per liter. Mainland property tycoon Yeung Kwok-keung will soon have the bank financing to take over Shaw Brothers (0080), but the interest rate may have been hiked even higher. The long-term debt funding of HK$7 billion will be made available five to 10 days after Citi, which is arranging the syndicated-loan deal, finalizes the list of banks, Bloomberg quoted sources as saying. The already-high interest rate being levied on Yeung may have been increased. The loan pays "more than 3 percentage points" above the benchmark lending rate, the sources were quoted as saying. It was previously reported the interest rate would be set at 3 percentage points above the benchmark, equivalent to about 7 percent. Yeung, who is chairman of Country Garden (2007), has already obtained another HK$3 billion in financing from Henderson Land Development (0012) chairman Lee Shau-kee. Shares in Shaw Brothers jumped 4.3 percent yesterday to end trading at HK$21.75. At current levels, Shaw's stake in the holding company is worth at least HK$6.49 billion.
The Legislative Council’s Public Works sub-committee has recommended a one-off upfront payment of HK$21.6 billion for the West Kowloon Cultural District project on Wednesday. Hong Kong Exchanges and Clearing Limited (HKEx) on Wednesday announced the appointment of John Williamson to replace David Webb as an independent non-executive director.
China saw quicker growth in textile exports but slower rise in foreign sales of garments in the first five months of this year, sources with the General Administration of Customs said on Saturday. Between January and May, China exported $66.16 billion worth of textiles and garments, a growth of 15.4 percent on the same period of last year. The total included $26.07 billion worth of textile products, up 26.3 percent, and $40.09 billion worth of garments and accessories, up 9.3 percent. The growth rate for textile exports was higher than the level for the whole of last year, whereas that for garments was nine percentage points lower than the year-earlier level. In May alone, the nation's garment exports increased by a record-low rate of 1.08 percent to $8.59 billion worth. Industry insiders accredited the substantial slowdown to weak demand abroad, expediated appreciation of Chinese currency and higher production cost. They added that the weak demand had affected cotton sector in China. The country imported 240,200 tons of cotton in May, a decrease of 23,200 tons, or 8.81 percent, from the previous months.
June 19, 2008
The government's decision to sue Times Square over the fees it charged for the use of public space will send shockwaves through the industry, developers' representatives warn. "This is very unusual [and] should be of real concern to [developers]," construction sector legislator Abraham Razack said. "The government should have very good justification for this action." As far as he was aware, Times Square had done nothing outside its contract with the government. "They have a right to do what they have done," he said. It is believed Times Square has been charging the highest rent for public space in the city for its two areas of public space: HK$28,000 and HK$40,000 on weekdays and HK$100,000 and HK$124,000 on Fridays, weekends and public holidays. The use of public space at Times Square and many other private developments is governed by deeds of dedication that spell out the responsibilities of management and the terms under which the space can be let. In return for dedicating part of their land to public use, developers are generally rewarded with concessions on the plot ratio. The Legislative Council panel on development is currently reviewing policies on provision of public space. Civic Party leader Alan Leong Kah-kit said that while such agreements were probably inevitable, given the city's density and pace of redevelopment, the way they were being managed needed to change. "We have very poor quality open spaces," he said. "Some are in the middle of thoroughfares and others you have to go to the seventh floor to use." He supported the action against Times Square. "The company that signed the deed acts in the role of a trustee, and they are obviously accountable." If they had been charging too much, they could be forced to pay back illegitimate profits. He hoped the Legco review would result in a more transparent and predictable system of open space. "We need consistent rules to govern the use by the public of these privately built, owned and operated spaces. We want the government to publish a set of procedures and guidelines for negotiating such deals." Lau Chun-Kong, international director of Jones Lang LaSalle, said developers had serious concerns about whether the government move would mean a loss of control over what occurred in public areas. "In the past, developers have had control over the use of the space, but if that is to change then they may reconsider their positions," he said. A shopping mall operator would want to be able to control activities that might affect tenants, such as protests against products. Sun Hung Kai Properties (0016) has sold a luxury flat at The Arch in West Kowloon for HK$41,000 per square foot, making it the most expensive flat sold in Asia. The record-breaking property is Flat A on the 80th floor of Moon Tower, a source told Sing Tao Daily, sister publication of The Standard. It measures 5,497 sq ft and comes with a pool. In July last year, SHKP sold a property with the same floor area on the 80th floor of Sun Tower for HK$33,500 per sq ft. In April 2005, the property developer sold the then most expensive property - Flat A measuring 5,353 sq ft on the 77th floor of Sky Tower - for HK$31,300 per sq ft.
Hong Kong should reverse its current practice of taxing cleaner fuels while waiving the duty on industrial diesel as part of a package to clean up the city's port, according to a research paper. The paper, released by the think-tank Civic Exchange yesterday, called for greater cross-border and regional collaboration on cleaning up ports. It said that while trucks using Euro V low-sulfur diesel were being taxed 56 Hong Kong cents a litre, ships were burning duty-free fuel oil that was much dirtier. At least 3.8 million people living around Kwai Chung Container Port had been exposed to health risks because of port-related air pollution, the paper said. The port, together with Shenzhen port, handles 9.5 per cent of all global sea cargo. Official data showed that sulfur dioxide emissions from marine sources had grown by 100 per cent since 1990. The 45-page report said fuel and energy use by port terminals, vessels and trucks was largely to blame. Citing the experience of the Los Angeles and Long Beach ports in California, it said financial incentives could be provided to vessel operators to adopt cleaner fuels and lower speeds within harbours, and to trucking operators in exchange for scrapping polluting vehicles. "In the short term and before an energy policy is established, Hong Kong might consider charging a fee for fuel with higher sulfur content. The reverse of this is to make cleaner fuel tax-free," the report said. While Euro V low-sulfur diesel for trucks is taxed, fuel with up to 4.5 per cent sulfur content used by ocean-going vessels is duty-free. The report also said Hong Kong's shipping operators were ready to go greener than required by the International Maritime Organisation - a global cap of 4.5 per cent sulfur content in fuel. It said what was needed now was leadership from the government in bringing industry stakeholders and mainland authorities, such as the Guangdong port authority and terminal operators, to work out collaboration plans. "There is a willingness among them to do better, but they will need government regulation to create a level playing field so that laggards do not benefit from non-action," the report said. One of the possibilities is to turn Hong Kong, along with the Pearl River Delta, into a sulfur-emission control area, with stricter standards. The report also said the Shenzhen ports had already piloted a series of green measures, while a Hong Kong operator had voluntarily been using low-sulfur fuel for its fleet calling at the ports of Hong Kong and the delta region. That type of fuel is more expensive. Arthur Bowring, managing director of the Hong Kong Shipowners Association, said the limited supply of clean fuel oil had pushed up the price, but rising demand might lower the price in the long term. Patrick Chun Ping-fai, deputy director of marine, said tightening emissions standards might impose financial burdens on business operators and hamper the port's competitiveness. As for co-operation with Shenzhen ports, he said: "Guangdong might also want to clean up its port operation but, at the same time, they might also ponder over [whether] business could be lost to other ports, like the Yangtze delta."
China's three largest airlines, China Southern (1055), Air China (0753) and China Eastern (0670), have each secured four weekly flights to Taiwan after an agreement eased restrictions on direct flights across the Taiwan Strait, the Civil Aviation Administration of China said yesterday. June 18, 2008
DBS Bank (Hong Kong), a relatively small player in the mortgage sector, made a surprise first move in the market yesterday by raising rates 20 basis points in response to rising funding costs. Ferry services between Hong Kong and four ports in the Pearl River Delta have been suspended owing to the massive flooding in southern China. The pay gap between government and private lawyers has been widening - with some senior counsels getting as much as HK$10,000 an hour, legal sources say. In contrast, senior government lawyers get around HK$100,000 a month. Senior barristers in the private sector normally charge between HK$6,000 and HK$8,000 an hour but some at the top charge as much as HK$10,000, especially for civil disputes or commercial crime cases involving the rich and famous. The hourly rates for those with five to 10 years of experience are HK$3,000 to HK$4,000, depending on the complexity of the case. "Personally, I think HK$10,000 is overcharging but there is a market for a group of top barristers who have become superstars and are picked by some clients who only go for the big names," a solicitor said. But it also means the controversy over pay between government and private lawyers is growing - even after Secretary for Justice Wong Yan-lung has called for a staggering 30 percent pay hike to stem a brain drain as reported by The Standard on June 10. In a letter to department management and staff, Wong said the top-end salary of senior government counsel would rise to HK$112,850, exceeding the starting salary of a directorate grade one civil servant. The new rate would raise the starting salary of a nondirectorate government counsel by 35 percent to HK$59,360 a month. But a Department of Justice source said the pay rise is unlikely to lift sagging morale due to the hefty workload of government lawyers, who normally work 12 hours a day handling various tasks including giving legal advise to different departments. Seven candidates are expected to kick off their listing activities in the coming two weeks, pitching for a total of about HK$21 billion on the Hong Kong bourse. The mainland's second-largest clinker and cement maker China Shanshui Cement Group will start its retail offering this Friday while its trading debut is set for July 4. Shanshui Cement is seeking to raise HK$2.38 billion by selling 650.8 million shares at between HK$2.70 and HK$3.65 apiece. One lot of 1,000 shares would cost HK$3,686.83 based on the top end of the indicative price range. The price- earnings ratio of Shanshui Cement is 13.5 to 18.2 times forecast 2008 earnings, representing a discount of 10 to 20 percent to its peer China National Building Material (3323). Tianyi Fruit, which is pitching for HK$233 million, will also start trading on July 4. The mainland concentrated fruit juice maker will open its four-day retail book next Monday. Mainland footwear and apparel maker XDLong International began pre-marketing activities for its HK$2.34 billion initial public offering yesterday. XDLong is expected to commence the roadshow next Monday. Glorious Property, which is pitching for HK$7.8 billion, is also considering kicking off its roadshow next week, with a trading debut set for mid-July. Meanwhile, two mainland companies - liquor and cigarette distributor Silver Base Group and men's apparel maker Lilang International - are scheduled for a listing hearing this Thursday. Silver Base and Lilang are seeking to raise about HK$2.34 billion and HK$1.17 billion, respectively. "If the hearing is passed, Silver Base will start trading on the local bourse at the end of next month," said a source. But Lilang, according to another source, has not yet fixed its listing schedule. Casino mogul Stanley Ho Hung- sun's Sociedade de Jogos de Macau, which shelved its IPO in January, is expected to kick off its roadshow next Monday and start trading on July 11. The size of the revived IPO is cut by almost half to HK$4.7 billion compared to its previous size in January. A former sales director for Centaline property agency was jailed for 40 months in the District Court on Tuesday for offering advantages of HK$1.41 million to a former Li & Fung manager. Hong Kong’s unemployment rate remained stable at 3.3 per cent in March to May, latest statistics released on Tuesday showed.
Farmers around the country have put more than half of their harvests into storage, and a bumper summer crop is expected, the Ministry of Agriculture said yesterday. The major grain production areas are poised to reap a good crop for the fifth year in a row, maintaining the rising momentum in grain production, an unnamed ministry official said. Summer crops, mostly cereals of rice and wheat, constitute 23 percent of the country's annual grain harvest, which has grown for four consecutive years, reaching 501.5 million tons last year, almost equal to China's annual consumption.
June 17, 2008
Public-sector doctors are asking for a three- day paternity leave to bolster low staff morale. "There simply aren't enough hours in a day for me to fulfill my work and family roles," said Queen Mary Hospital doctor of international medicine Pierre Chan. During a week of 30-hour shifts and regular 12-hour work days, he has only been able to spend an hour and a half with his one-year- old daughter each time they have met. "Our family is socially and psychologically unhealthy," said Chan's wife and family doctor Eunice Chan Yin-chiu. When she was seven months' pregnant she quit the public sector fearing job-related stress would affect her pregnancy. Although her husband stayed in the public sector, she accepted a pay cut to enter the private sector to have more time with their child. According to surgeon Kelvin Ng Kwok- chai, Chan's departure to the private sector is a familiar story as more doctors are switching over to get better hours and a more balanced work life. "The problem is some doctors are also fathers, and they have to play their family roles as parents - of course they do their best to serve patients but they don't have time to take care of their family life," Hong Kong Public Doctors' Association vice president Ho Pak- leung said. With colleagues working more than 70 hours a week or 33 hours more than their contract stipulates, Ho said introducing paternity leave would not only help doctors balance work and home life but also be an important olive branch and first step in upcoming negotiations between public-sector doctors and the Hospital Authority. He said unless services are redefined and a hybrid public/private solution found, manpower shortages will continue to wreak havoc on job satisfaction and morale among public sector health-care workers. "Wives need the support and care of their husbands," Federation of Trade Union lawmaker Wong Kwok-hing said during an FTU and Men's Concern Group march in Central yesterday - Fathers' Day. He said offering leave to fathers would improve workplace morale and help divide child- rearing responsibilities between parents. An authority spokeswoman said it will consider initiatives to boost morale. Standard Chartered, HSBC and Lehman Brothers offer five days' paternity leave, while China Light and Gas offers three. Australia and New Zealand offer unpaid paternity leave to workers, and two weeks of paid leave is provided in Britain and France through social insurance.
The government would be more open about details such as the foreign passports and salaries of new political appointees in future, Secretary for Constitutional and Mainland Affairs Stephen Lam Sui-lung pledged on Monday. Mr Lam, speaking to the Legislative Council, reiterated that the Basic Law did not impose a requirement on deputy ministers and political assistants to renounce foreign passports, while they were the permanent residents of Hong Kong. However, he said that in future such information and details about salaries of new appointees would be clearly stated on employment contracts. This would be to increase the transparency of the recruitment process. Mr Lam said the recruitment committee would also remind candidates that the public was concerned about these issues. But whether new appointees wanted to renounce their overseas passports or right of abode would be up to them, he added. In other developments, pro-government legislators stopped an attempt to force Chief Executive Donald Tsang Yam-kuen to apologise for his handling of the controversy of the new political appointees. A motion was defeated by 20 votes to 14 in the Legco’s Constitutional Affairs Panel. A move by Frontier leader Emily Lau Wai-hing to take the issue to the Independent Commission Against Corruption over a possible conflict of interest was adjourned to the panel’s next meeting, local radio reported.
Air quality report set to boost HK, Guangdong ties - Co-operation between Hong Kong and Guangdong is expected to receive a boost as a major work group under the Hong Kong-Guangdong Co-operation Joint Conference completes a report on guidelines to improve regional air monitoring systems. The work group is expected to submit a draft of its findings to Chief Secretary Henry Tang Ying-yen and Guangdong Governor Huang Huahua before the conference in August, a source familiar with the study said. The report - expected to be ready six months ago - will make proposals on ways to unify the neighbors' air pollution indices, and on standards for exhaust emissions and effluent discharge. Such proposals, along with proposals on ways to lower customs barriers and liberalize cross-border flows of goods, people and funds, will be submitted for discussion at the 11th plenary session of the joint conference. The outgoing director of the Hong Kong Economic and Trade Office in Guangdong, Peter Leung Pak-yan, said this conference - his last before retiring in December - would be an important one. "This is an important year for China: the Beijing Olympics, the 30th anniversary of the mainland's opening up to the outside world. It is the best time for China to find its position in the world." The new Guangdong party secretary, Wang Yang , has lauded the "liberalized thinking" aimed at turning Hong Kong and Shenzhen into one metropolis and fostering closer co-operation between Hong Kong and the province. But differences in culture, policies and practices await resolution before the two cities can truly integrate. Discrepancies between the two air monitoring systems, for example, have been a headache for both jurisdictions, because what might be considered bad air in Hong Kong could be acceptable just meters across the border. Conservancy Association director Albert Lai Kwong-tak welcomed efforts to standardize measuring mechanisms, but said they should follow international standards. "It is good that we can compare pollution figures from the two places, but it would be even better if these figures could also be compared with the rest of the world," Mr Lai said. "Even our own API [air pollution index] system does not follow that of the World Health Organization." He said the two governments should also seek to standardise the method of calculation used to draw correlations between pollution sources and damage caused. "Knowing the numbers alone is not enough; what the public is really interested in is the health impact the pollutants will have. That is also what would drive a policy change," he said. The source said the cross-border work group's report would consist only of proposals and would not contain technical details, such as timeframes for achieving them. "After assessments from governments on both sides, the proposals still need to go through public consultations and expert seminars before final guidelines can go to different departments for implementation," the source said. The study, begun in 2005, is the first attempt by Guangdong and Hong Kong at a joint overview of town planning. The two sides have also co-operated on projects, including the Hong Kong-Zhuhai -Macau Bridge and the Zhuhai-Macau Cross-Border Industrial Zone.
Shanghai increased the price of liquefied petroleum gas for motor-vehicle use on Sunday to help ease a supply shortage caused by skyrocketing worldwide fuel costs - and to keep some people in business. The benchmark LPG price for mopeds was raised to 4.7 yuan (68 U.S. cents) per liter from 4.2 yuan, and that for taxis was lifted to 4.7 yuan from 3.6 yuan, according to the Shanghai Price Bureau. The bureau stressed that retail LPG prices must not exceed these benchmarks. The rises come as an increasing number of LPG filling stations in the city have temporarily closed or gone out of business. Even with a government subsidy their businesses have been unprofitable after global oil and LPG prices soared. City demand for the vehicle-use LPG is mainly met by imports. Prices of the auto gas have not been increased in Shanghai since last November. Normally, Shanghai's 280,000-odd mopeds need 70 LPG stations to supply them. But since the number of stations has halved since the beginning of this year, long queues are the norm. Shanghai promoted the use of the auto gas on a large scale at the start of the new millennium as the fuel creates less emissions compared with petrol and diesel. At its peak, the city had more than 40,000 LPG taxis and 100-plus LPG stations. However, the number of LPG taxis has declined sharply as drivers become frustrated by the lack of service stations and unsatisfactory engine performance. Plus, LPG-fueled cars are no longer so economic. LPG has higher equivalent fuel consumption against gasoline, and Monday's 4.7 yuan-per-liter LPG price is already very close to the 4.77 yuan benchmark of 90-octane gasoline in Shanghai. There are less than 3,000 LPG cars on Shanghai's roads Monday and the price bureau has pledged subsidies to taxies affected by the latest price increase. The city has barred the use of gasoline-powered mopeds since 2006, so moped drivers are the most affected by the recent LPG shortage as they have no other choice. Shanghai has urged stations that can restart services to do so as soon as possible, government spokesman Chen Qiwei said, adding the city government will keep giving subsidies to ensure supply. To keep giving subsidies will translate into a financial burden of more than 50 million yuan annually for the government. But if it doesn't, it means investments in LPG stations could be wasted as more would close if energy prices go higher. It is a true Catch-22 situation. "According to the experience of other nations, the most practical fuels in addition to gasoline and diesel so far are only natural gas and LPG," said Zhao Guotong, a city government adviser. Experts said that the city should have a clear plan as to what's the answer to its future transport energy while speeding up studying other solutions like hydrogen fuel cells.
Japan and China have agreed to jointly develop gas fields and share profits in disputed areas of the East China Sea, Kyodo news agency reported on Monday, in a further sign of warming ties between the two countries. The reported accord follows a May summit between Japanese Prime Minister Yasuo Fukuda and President Hu Jintao at which the two leaders agreed to settle the long-running gas feud. Estimated net known reserves in the disputed fields are a modest 92 million barrels of oil equivalent, Chinese figures show, but both countries have pursued the issue, lured by the possibility of much bigger deposits being found. The dispute has come to symbolise more than an argument over maritime gas rights by the two energy-hungry countries, because it concerns matters of territory and sovereignty. Quoting sources close to Japan-China relations, Kyodo said the two sides had decided to set aside the territorial feud for now and agree on joint gas field development. “If it is true, this is a great leap forward,” said Phil Deans, a professor of international affairs at Temple University in Tokyo. “Two years ago, the two sides were so entrenched and incapable of compromise it looked as if they were never going to get anywhere.” Kyodo said an announcement of the deal could come as early as this week, but Japan’s top government spokesman told a news conference details were still being worked out. “I have heard that they are at the stage of working out final details,” Chief Cabinet Secretary Nobutaka Machimura said. China’s Foreign Ministry had no immediate comment. Sino-Japanese ties chilled during Junichiro Koizumi’s 2001-2005 tenure as Japan’s prime minister, partly because of his visits to a war shrine seen in Beijing as a symbol of Tokyo’s past military aggression in China in the 1930s and 1940s. But relations have improved markedly since then between the two Asian powers, linked closely by trade and investment. At the heart of the dispute is a row over where the boundary of the two countries’ maritime economic zones falls. Japan says the median line between the two countries’ coasts marks the divide. China says the boundary is defined by its continental shelf, extending its zone towards Japan. Tokyo has objected to Chinese development of the Chunxiao gas field, which lies just west of what Japan considers the boundary, and fears drilling there could drain gas through a honeycomb of seabed rocks from what Tokyo sees as its economic zone. Kyodo said Beijing had agreed Japan could invest in and claim profits from projects, including Chunxiao, and in waters around other fields that China calls Duanqiao and Longjing. China’s state-controlled CNOOC (SEHK: 0883) Ltd has said it was ready to begin production from the Chunxiao gas field but it was not clear if it had done so yet. Nippon Oil, Japan’s top refiner, and China’s National Petroleum Corp last year signed an accord for long-term business co-operation, including overseas oil and natural gas resources development. Nippon Oil has a stake in the area but not in the Chunxiao gas fields. An industry executive in China familiar with the fields said firms were keenly awaiting the results of the talks, but after that more work would be needed on the size of the fields. “Companies need to sit down and nail down the reserve base for joint development,” he said June 16, 2008
New politicos pay row `overblown' - The controversy over the salaries of new political appointees has been blown out of proportion, according to new Hong Kong General Chamber of Commerce chairman Andrew Brandler. The most important issue, he says, should be what the new cadres actually do. "I think the reason why the government was put in a vulnerable position was because the role of the new appointees is undefined - I do not know what their jobs are," Brandler said. He added that his salary as chief executive at CLP Power - as well as those of other senior executives - is no secret. As democrats continue to push the government to come clean on exactly how they selected the new appointees and the factors determining their pay, Brandler said the government should have been transparent from the outset. He acknowledged that it is difficult to foster political talent in Hong Kong and said the introduction of the new tier of political appointees may be a way out. Some of the appointees have come under fire for pay levels of at least HK$134,150, the equivalent of a directorate grade three government official despite their lack of political experience. The undersecretaries get up to HK$$223,585. "In other jurisdictions, political parties play an important role. But in Hong Kong, once you become a political appointee, you have to resign from key positions in your political party," Brandler said. Undersecretary for Commerce and Economic Development Greg So Kam- leung has resigned as vice chairman of the Democratic Alliance for the Betterment and Progress of Hong Kong. Among the 17 appointees, only four are from the pro- Beijing DAB and the Liberal Party. Meanwhile, despite inflationary pressure, Brandler believes the Hong Kong business environment is competitive. "But there are also risks that the competitiveness could be eroded," he said, citing as example the need to effectively implement the fair competition legislation and minimum wage. He is worried that even if salaries are increased, unemployment may also rise as employers may not be able to afford to hire the same number of staff. Instead of introducing a minimum wage Brandler suggested the administration provide low-income workers with a Comprehensive Social Security Scheme subsidy. Despite healthy passenger volume growth last month, Hong Kong airport could come under pressure with July's launch of direct flights between Taiwan and the mainland, the Airport Authority chief acknowledges. "The commencement of direct, weekend charter flights across the Taiwan Strait from July will have an impact on the number of passengers transferring through Hong Kong between Taiwan and the mainland in the short to medium term," said authority chief executive Stanley Hui Hon-chung. The mainland and Taiwan signed a landmark agreement on Friday to launch regular direct flights for the first time since 1949. Weekend charter flights are scheduled for every week starting on July 4. The first tour groups will start arriving in Taiwan on July 18. Taiwan's mainland tourist arrivals quota will increase from 1,000 to 3,000 per day. The liberalization of cross-strait tourism will likely add 60 to 80 basis points to Taiwan's GDP growth rate, Goldman Sachs economist Enoch Fung said. But Hong Kong could lose about HK$300 million in tourist spending per year, said Hong Kong Tourism Board chairman James Tien Pei-chun. The SAR stood to lose about 1.5 million tourist arrivals if all Taiwanese traveling to the mainland opt for direct flights, he added. And Taiwanese transiting Hong Kong spend an average of HK$200 per visit. Economists expect Hong Kong's potential loss in tourism receipts could be as much as HK$2.5 billion, or 0.2 percent of GDP, this year, and could balloon to HK$16.6 billion in 2012. HK plans oil futures market in China strategy - Hong Kong plans to develop a crude oil futures market aimed at setting a reference benchmark that would give Asian consumers and importers the same bargaining power as Western counterparts, said Financial Secretary John Tsang Chun-wah. The move, coming after plans to launch gold futures in the second half of this year, is part of the government's drive to diversify strategies in financial products and strengthen the city as an international financial center. "Commodity and Islamic financial products are two areas where we have made great progress and can enjoy backup from the developing China market," said Tsang. "This is crucial for our future prosperity as laid down by China's eleventh five-year plan." China has emerged in the world's top three as a consumer and importer of crude oil. However, the lack of a local reference indicator has put China and other Asian countries at a disadvantage when bargaining with Middle East producers, he said. "Asian importers could take only Dubai futures as a reference [for bargaining], which cannot truly reflect our supply and demand situation. And, most of all, it is at a much higher cost than our Western peers, who have London and New York futures to set the prices," Tsang said. A mature crude derivative market is crucial, especially to China, to let importers hedge the risk of high oil prices through a fair and transparent market. Hong Kong, with its sound legal and management infrastructure, had the advantages to develop such a platform. "It provides great potential for Hong Kong as the mainland's Shanghai, Dalian and Chengzhou commodity markets are still not open to foreigners. The setting up of a Hong Kong commodity market could therefore help China exert its influence in pricing as the largest precious metal consumer and importer," he said. Tightened lending hits foreign deals - Hit by tightened lending by Hong Kong banks, foreign investment in the city's property sector dropped significantly with only one deal finalized in the first five months of this year, according to property consultant DTZ. The only transaction involving foreign investment is the 3-11 Warren Street in Causeway Bay bought by La Salle Investment at a price of HK$470 million in March. During the period, a total of 103 property deals were sealed for a total consideration of HK$24.32 billion. Aside from the Warren Street property, the other 102 transactions were bought by local investors, said Kent Fong, DTZ's head of Hong Kong's investment department. The figures represented a drop of 94 per cent from the same period a year ago both in terms of consideration and volume, DTZ said. Banks experienced less liquidity - and therefore, less money to lend - as more Hong Kong dollar savings were exchanged for other currencies, and this has limited the activity of foreign investors in the property sector, according to Mr Fong. In the residential market, activity has been slowing down in the past five months after a rebound in the fourth quarter of last year. But DTZ said the figures were still higher than that of 2007. It estimates the number of sale and purchase agreements in the first half would reach 76,536, representing a jump of 18.6 per cent from a year earlier. But on a weekly basis, housing transactions in the secondary market continued to slow. The number of transactions in 50 key housing estates monitored by Ricacorp Properties dropped 18.5 per cent to 374 from 459 a week earlier, while average transaction prices in the resale market were stable. Primary property market sales also remained in the doldrums with 25 units sold over the three-day break covering the Dragon Boat Festival, said property agents, who blamed the heavy rains on Saturday and the tendency of homebuyers to wait for the next batch of project launches for the lackluster performance. Harbor Place in Hung Hom led the sales in the primary market, securing 10 buyers over the weekend, while Celestial Heights, a residential project in Ho Man Tin developed by Cheung Kong (Holdings) (SEHK: 0001) and Nan Fung Development, sold eight units.
Chinese Vice Premier Wang Qishan left Beijing Sunday for the U.S. to attend the fourth round of China-U.S. Strategic Economic Dialogue. Test runs on the Beijing-Tianjin express railway ended Saturday, with the line scheduled to be in use by Aug. 1 ahead of the 2008 Olympic Games, CCTV reported on Sunday. Trains ran at a maximum of 380 km per hour on Saturday, the fastest such service in the country, CCTV said. The 115-km trip from the Beijing South Railway Station to the Tianjin Station took 27 minutes, including one-minute stops respectively at Yizhuang and Wuqing stations. Travel between the two cities is currently affected by road congestion and slow rail service. At present, the train takes more than an hour to make the trip, and buses take two hours. Previous media reports have said that express rail tickets would cost 60 yuan (9.6 U.S. dollars) to 80 yuan, but the pricing was still awaiting regulatory approval. Express trains would run at three-minute intervals and carry a maximum of 18,000 passengers per hour.
China used 42.78 billion U.S. dollars of foreign direct investment (FDI) in the first five months this year, an increase of 54.97 percent from the same period last year, the Ministry of Commerce (MOC) said Thursday. The growth was lower than a year-on-year growth rate of 59.32 percent used in the January-April period this year. Meanwhile, the number of newly-approved foreign-funded enterprises shrank 20.95 percent to 11,915 in the first five months. "The quality of China's FDI use has improved as a raft of new measures were introduced to regulate foreign investment," said Hao Hongmei, an analyst with the Academy of International Trade and Economic Cooperation under the Ministry of Commerce. Foreign companies now tend to have more interest in investing in high-tech and high-value sectors, which need vast financial input, than in labor-intensive and lower-value industries, Hao said. China began to level the corporate income taxes for foreign companies with that of domestic companies from January. It also published a new catalogue last year to encourage overseas investment in high-tech and environment-friendly projects. The actual use of FDI in May jumped 37.94 percent from a year earlier to 7.76 billion yuan and the number of newly-approved foreign-funded enterprises dropped 10.94 percent to 2,425. "China remained a favorite destination for overseas investment, especially big investors like the top 500 multinationals," Hao said. Commerce Minister Chen Deming said earlier in a press conference that the steadily-increasing FDI reflected the optimism of foreign companies about their returns from the Chinese market and their intention to accelerate investment in the country to profit from the appreciating Chinese currency. China's currency, the yuan, on Thursday ended a short-lived downward adjustment to break the 6.91 mark, setting a new high against the U.S. dollar since the country de-pegged its currency from the greenback in July 2005. Managers of 33 travel agencies from the Chinese mainland will pay a 10-day visit to Taiwan from Sunday, an official of the China National Tourism Administration (CNTA) said.
The China Securities Regulatory Commission will start a full assessment of the securities industry and the openness of the domestic capital market "to improve policies and push forward a proactive and steady opening of both." Based on the results of the assessment, the CSRC will release a "middle- to long-term" strategic plan of development policies. Last week China stocks suffered their biggest weekly plunge on record, dragging the benchmark index below 3,000 for the first time since April last year. "We will pay keen attention to the connection between domestic and international capital markets and closely watch changes in the international financial market to make improvements at a policy level, so as to enhance the competence and anti-risk ability of the securities industry and capital market," the securities regulator said. The benchmark CSI 300 Index has fallen 44 percent this year, the steepest decline among the world's 20 largest equity markets. The CSRC said it has made significant progress in developing the capital market. It has raised quotas under the QFII (qualified foreign institutional investor) program to US$30 billion (HK$234 billion) to diversify the investor base. Ma hails cross-strait talks and urges more dialogue - The resumption of cross-strait talks was history in the making, Taiwanese President Ma Ying-jeou said yesterday, calling for more dialogue to increase exchanges and improve relations between the island and Beijing. "The two sides are making history through their talks," said Mr Ma in a meeting with Chiang Pin-kung, the island's top negotiator with the mainland. Mr Ma congratulated him for resuming the dialogue after a decade of cross-strait impasse. The talks between the government-funded Straits Exchange Foundation (SEF) and its mainland counterpart, the Association for Relations Across the Taiwan Strait (Arats), represent the institutionalization of the channel for negotiations between the two sides, he said. Cross-strait ties were never cordial after the two sides split at the end of civil war in 1949. They soured further after Beijing suspended talks with Taipei in 1999 - due to the Taiwanese independence campaign promoted by then president Lee Teng-hui and his successor, Chen Shui-bian. "Now that such a channel has become institutionalised, we can have different groups hold talks on different agendas in different places," Mr Ma said. He hoped the SEF could work with the Mainland Affairs Council (MAC) - the island's top mainland policy planning body - to generate more talks. Mr Chiang, chairman of the SEF, told Mr Ma the next round of talks being planned would address charter cargo flights, direct shipping, expansion of the mini links between Kinmen and Xiamen , joint efforts to fight cross-strait crime and preparations for earthquake relief. Mr Chiang led a 19-member delegation to Beijing on Wednesday and returned to the island yesterday. On Friday he signed two agreements with the mainland on the operation of direct, cross-strait weekend charter flights and opening the island to mainland tourists. MAC chairwoman Lai Shin-yuan hailed as "opening a new page" the resumption of talks between the SEF and Arats when she went to the airport to greet Mr Chiang yesterday. The opposition Democratic Progressive Party snubbed the dialogue as a failure since Mr Chiang had not signed a deal on charter cargo flights. Meanwhile, the mainland gave approval yesterday for 33 mainland travel agencies to begin a 10-day visit to the island today to survey tourist attractions before organising package tours to Taiwan. Miserly bosses may face jail, fines for low wages - Employers who fail to pay a statutory minimum wage to employees could face a HK$350,000 fine and three years' imprisonment, according to a government discussion paper written last week. According to the paper, the administration would introduce a bill on a statutory minimum wage for cleaners and security guards if the current wage protection movement was deemed a failure. The paper was sent to the Legislative Council on Friday. It said breaches of a statutory minimum wage law should be treated similarly to wage offences under the Employment Ordinance. That means an employer could be fined HK$350,000 and imprisoned for three years for wilfully failing to pay an employee's wages. Under the ordinance, if employers make illegal deductions from wages, they can be fined HK$100,000 and imprisoned for one year. One of the key enforcement targets of the minimum wage legislation would be residential buildings, the paper said. This could create a situation where all owners of buildings would be liable for the offences. The administration acknowledged that this could arouse unease and concern among owners' corporation committee members, who serve mostly on a volunteer basis. It also said such enforcement of a minimum wage law could affect employers' hiring decisions, especially for residential buildings. "They may employ fewer security guards or even replace them with security equipment, such as intercoms and/or closed-circuit television," the report notes. Lawmaker Kwong Chi-kin, however, said there was no need to be too worried: "In most cases, owners delegate the responsibility for cleaning and security services to management companies that they subcontract. "Unless the owners are aware that the subcontractors are paying less than the statutory minimum wage, there won't be any personal liability." He said there could be difficulties for owners of buildings without a management company or owner's committee, like those where many poor and elderly people live. "For some single-block buildings in low-income districts like Sham Shui Po, the owners can afford to pay security guards only HK$2,000 to HK$3,000 per month. They can't afford the statutory minimum wage, which might amount to HK$6,000." Mr Kwong suggested the government help owners of such buildings work together to share costs. The Legco panel on manpower will discuss the issue on Thursday.
June 13 - 15, 2008
Families closer after quake - The Sichuan earthquake may have claimed close to 70,000 lives and caused unimaginable damage, but a recent survey showed it also helped bring Hong Kong families closer together. A group called New Forum said the "Parents Happy Index" increased by nearly 6 percentage points in the aftermath of last month's devastating temblor based on a survey of 452 parents aged 18 to 65. The survey conducted from May 15 to 27 found the relationship between mothers and children rising 0.19 points to 3.43, and the index for mothers and other family members increasing 0.17 points to 3.41. The index is based on a scale of one to five with one being the unhappiest and five the happiest. Sha Tin District Councillor and New Form board member Scarlett Pong Oi- lan said the earthquake has taught parents, especially mothers, to treasure the time spent with their children. She said Hong Kong people have been deeply touched by the devastation and learned to love and cherish their family members. However, this closer relationship among family members did not quite extend to fathers, with the fathers dropping 0.06 points on the index. Kwun Tong District Councillor Mountain Hsu Hoi-shan, who is also a board member of New Forum, said this may be due to the fact men face higher pressure brought about by inflation and other economic woes. Hsu said men generally tend to tackle these problems without involving their children. In addition, their long working hours prevent them from spending more time with their loved ones. With Father's Day being celebrated on Sunday, Hsu said he hopes children will try to understand their fathers even more and spend additional time with their parents. The general happiness also did not extend to what families thought of the current education policy, with the index at its lowest rate of 2.48. Obama moneymen hit China expats - Presidential hopeful Barack Obama will step up his overseas fundraising drive next week, with American expatriates in China the first target. Guests will gather at the Beijing home of Coca-Cola executive David Brooks to hear two of Obama's advisers, who will also speak in Shanghai, the Washington Post reported. Political analysts said Hong Kong would not be on the fundraising trail because long-established channels already exist in the territory. "The American expat community in China is growing, which is a result of China opening up for business as a country. The Americans are a major player. This is the first time I've heard of such a development," Linda Li Che-lan, a City University assistant professor, said. Hong Kong has frequently held such fundraising activities, Li said, so it was less likely for a high-profile delegation to gather in the territory. Advisers for Senator Obama, who recently pipped Senator Hillary Clinton in the battle for the Democrat nomination, include two senior foreign policy fellows from the Brookings Institution, Ivo Daalder and Phil Gordon. They will meet in Beijing on June 17 and in Shanghai on June 19 at an event hosted by Ted Hornbein, an executive at Richco, a company that manufactures electronic parts for mobile phones. A number of the 2008 presidential contenders have plunged into overseas fundraising in the past 16 months. Obama's rival John McCain held a luncheon on March 20 at Spencer House - a home built for an ancestor of Diana, the late princess of Wales.
HK schools join relief plan - SICHUAN EARTHQUAKE - Local schools are being paired with schools affected by the Sichuan earthquake to foster long-term relationships through student exchanges and reconstruction aid. Sowers Action, a charity that supports education development programmes on the mainland, yesterday announced the project, which will be held jointly with the concern group Education Convergence and student group Hok Yau Club. It is inviting Hong Kong schools to pair up with affected schools in Gansu province , building up relationships with teachers and students by writing letters or through face-to-face exchanges. Each participating school will have to raise at least HK$20,000, the cost for building a prefabricated school, for its Gansu counterpart. The prefabricated schools will be used for at least three years. Building a permanent school will cost HK$600,000 to HK$800,000. Participating schools will also be invited to elect student representatives to visit Gansu and Sichuan during the summer holiday in order to increase their sense of commitment and participation. Five primary and secondary schools have expressed interest in taking part in the project. The charity had signed up for the reconstruction of 33 schools in Gansu, which would cost more than HK$10 million, its spokeswoman said. It had received about HK$6 million in donations specifically for quake relief, so the projects would have to be partly funded by the group's development fund, she added. The Hong Kong Red Cross has received more than HK$900 million in donations for the quake. Oxfam Hong Kong has raised more than HK$93.2 million. It has outlined a preliminary action plan for the next five years in 17 areas of Sichuan. The organisation said it was budgeting about HK$20 million for the relief phase and HK$80 million for rehabilitation projects, including building temporary schools and village roads. Government soups up IT systems - The government would launch more information technology systems in Hong Kong to improve efficiency and help users, Secretary for Commerce and Economic Development Frederick Ma Si-hang took said on Wednesday. Responding in the Legislative Council to a question from legislator Sin Chung-kai, who had asked what the government had been doing to upgrade IT, Mr Ma said a number of innovative IT services had been launched recently. These included the new e-Tax service, the Leisure Link Self-Service Kiosk System, and use of e-channels at the airport. More were planned in the next six months, Mr Ma said. “In future, we will use IT to further enhance the efficiency and convenience of public services by launching new e-services, by improving the usability and convenience of existing services and by further widening access to computing facilities.” He said that over the next six months, more than 10 new e-Government services would be provided to the public. “Over 15 e-Government services will come on stream in 2009 and 2010. To name two examples, the Transport Information System will make it more convenient for the public to plan journeys by providing up-to-date traffic information and allowing them to search for optimal routes using public transport. Mr Ma said an Electronic Health Record system would also be launched to make it easier for patients to obtain care from different healthcare providers. “We will provide a geographical user interface to make it more convenient and efficient for users to find location-based information. “And we will use our Unified Identity Management Framework to provide a more convenient way for the public to register for and use e-services, while verifying their identity and safeguarding their personal data,” added Mr Ma. He said the government was also planning a pilot scheme for setting up district cyber centers. “These will provide the hardware as well as technical support for children from low-income families and other needy residents to access online resources,” he said. Discussing websites, Mr Ma said there were now 392 websites using domain names ending with “.gov.hk”. “Out of these, 218 are hosted under the Government’s Central Internet Gateway while the others are administrated individually by the respective bureaus/departments. “Of the 218 centrally hosted web sites, they already account for over 733,000 web pages of contents and more than 173,000 downloadable documents available for public access,” he told Legco.
China's oil imports posted double-digit growth in the first five months of 2008 as global crude prices more than doubled from a year earlier, the General Administration of Customs said Wednesday.
Taipei approves conversion bill - Taiwan's parliament approved a bill yesterday that will help speed the process of allowing wider convertibility between the Taiwan dollar and the Chinese yuan, signalling improving ties between the sides. Parliament's approval will let the Financial Supervisory Commission (FSC) and the central bank work on plans to let financial institutions exchange the yuan with individuals, which may happen by the end of this month. Some legislators have been urging speedy approval of the amended bill because the number of mainland visitors to Taiwan is expected to rise next month. Easier currency conversion will also help clamp down on black market trading, they say. "This is part of a big process of greater co-operation between the two, so it's definitely a step in the right direction," said Philip Wee, a strategist at DBS in Singapore. "What you can see is the Taiwan dollar appreciate against many Asian currencies, so it can actually be strong on a trade-weighted basis," he said, adding that the weakness of the US dollar would also support the Taiwan dollar. Parliament's approval is part of the new government's aim of reducing currency exchange restrictions along with plans to open up its tourism sector to the mainland. "The next thing that will happen is the FSC and the central bank will submit their plans to the cabinet and then submit it to the president's office," a Taiwanese parliamentary source said. Despite political differences between Taiwan and the mainland, trade between the two has flourished. The mainland is Taiwan's top trading partner and is the favourite investment destination for Taiwanese businesses. Conversion between the two currencies is very limited. Taiwan allows individuals to change no more than 20,000 yuan (HK$22,600) per transaction on Taiwan's offshore islands of Quemoy and Matsu. Sanmina deal to help Lenovo expansion - Lenovo Group (SEHK: 0992, announcements, news) last week completed the acquisition of the Mexican personal computer business of Sanmina-SCI, pushing forward its manufacturing expansion efforts in North America, despite an expected slowdown in technology spending on the continent this year. The assets purchased would form part of Lenovo’s new 24,155 square metre Monterrey facility, which is due to start up in the third quarter of this year, according to Lenovo spokesman Raymond Gorman. “We are building a brand new facility to our own specifications and requirements, and are taking on those Sanmina assets which are a good fit,” Mr Gorman told the South China Morning Post (SEHK: 0583, announcements, news). Lenovo, the world’s fourth-largest personal computer supplier, will spend as much as US$15 million developing its facility in Monterrey, a key industrial city and capital of the northeastern Mexican state of Nuevo Leon. Sanmina, an electronics contract manufacturer based in California, agreed to sell its personal computer business to Lenovo in February as part of a restructuring plan. Lenovo also agreed to assume certain undisclosed liabilities of Sanmina. The deal marks the mainland technology giant’s first major asset acquisition since it bought IBM’s personal computer division in 2005. “Underpinned by a strong net cash reserve of US$1.6 billion, management is actively looking for new acquisition opportunities,” wrote analyst Joseph Ho in a recent report for Daiwa Institute of Research. Despite fears of a recession in North America, Lenovo said its Americas geographic market accounted for US$1 billion, or 27 per cent, of total global sales in its fiscal fourth quarter ended March. It marked the company’s fifth profitable quarter in that market. For Lenovo, the deal with Sanmina will provide it with greater manufacturing capacity to bolster its push into consumer personal computers and servers for small and medium-sized businesses in the highly competitive North American market. In a research note, Morgan Stanley analysts said: “Lenovo plans to increase in-house production by setting up its own production plants and reducing outsourcing.” That is in contrast to the strategies of Hewlett-Packard, Dell and Acer, which all rely on production outsourcing - especially for laptops - to Taiwanese original design manufacturers. In July last year, Lenovo said it was investing more than US$30 million to build new manufacturing plants and order-fulfilment centres in Baddi, India, and in Monterrey, Mexico support regional requirements. Lenovo’s other plants are in Beijing, Huiyang, Shanghai, Shenzhen, North Carolina and Pondicherry, India. June 12, 2008
Macao seeks to build up business platform with largest annual trade fair As the 13th Macao International Trade and Investment Fair (MIF) is set to open later this year, the city will step up the effort to establish itself as an " efficient business platform" for the region, said Macao's economic chief in a press statement released on Wednesday. The event, organized by the Macao Trade and Investment Promotion Institute (IPIM), will be held from Oct. 23 to 26 this year, and the organizer has sent out 10,000 invitation letters to government departments, enterprises, and institutes inside and outside of China. "MIF highlights the roles of Macao as an economic and trade co-operation service platform between China and the Portuguese- speaking countries, a regional co-operation service platform for the Pan-Pearl River Delta as well as a liaison and co-operation service platform for international Chinese entrepreneurs," said Tam Pak Yuen, Secretary for Economy and Finance of the Special Administration Region (SAR). Last year, the 12th edition of the MIF attracted 236 delegations from 50 countries and regions. To build on the success, the organizer intends to add some new pavilions to this year's fair, namely 2010 Shanghai World Expo, Franchise/Agency Business and Taiwan pavilions. Some 800 exhibition-booths will be established during the event this year, which is more or less the same with last year, according to Jackson Chang, acting president of IPIM, at today's press conference. As the city's largest annual trade event, the organizer is also keen to support local small and medium sized enterprises (SME) to make use of the MIF platform to open up new business opportunities. IPIM announced at the press conference that it will offer subsidy of up to 5,800 patacas (725 U.S. dollars) each booth to local SMEs for their participation in the event. He also reiterated that the holding of MIF is not a signal that Macao wants to compete with neighboring regions in the MICE (Meetings, Incentives, Conventions and Exhibitions) industry, but to capitalize on the mature regional market conditions and create more business opportunities for local and international enterprises. In addition to exhibitions, the organizer will put in more effort in the collection of business matching and investment projects during the event period of this year. Meanwhile, conferences and forums on investment, regional cooperation, informatics, etc. will also be held during the event.
Little Sheep Group (0968) and A8 Digital Music (0800) are being tipped to make impressive trading debuts today - but analysts predict this will not whet investors' appetite for new listings.
China has quietly given permission since March to six foreign fund managers to invest up to US$675 million (HK$5.26 billion) in the country's securities market, official sources said yesterday. June 11, 2008
Four months before the government is due to consider drafting minimum wage legislation, the Hong Kong Federation of Trade Unions has come up with a proposal that would see all workers receive no less than HK$7,000 a month or HK$33 an hour. HSBC Holdings (0005), Standard Chartered (2888) and CIMB Group are among potential bidders for a 42 percent stake in unprofitable BankThai, part-owned by US buyout firm TPG, five people familiar with the plan said. Government reveals appointees' pay - Highest-paid deputy ministers earning more than HK$220,000 a month - The government revealed the salaries of the 17 newly appointed deputy ministers and political assistants on Tuesday - with the highest monthly salaries exceeding HK220,000 a month. The details were released in a statement published on the government website. The announcement follows weeks of controversy over the appointment of the deputy ministers. The controversy has focused on whether appointees held foreign passports and what their salaries would be. The government has come under growing pressure to release salary details. The Democratic Party had earlier proposed moving a resolution to invoke the Legislative Council (Power and Privileges) Ordinance demanding details on each appointee’s salary. The government statement said the highest salaries were earned by Gregory So Kam-leung, under-secretary for commerce and economic development, and three other deputy secretaries: Kenneth Chen Wei-on, under-secretary for education; Julia Leung Fung-yee, under-secretary for financial services and the treasury; and Florence Hui Hiu-fai, under-secretary for home affairs. They will all earn HK$223,585 a month. The other four deputy ministers will earn HK$208,680 a month. They are Raymond Tam Chi-yuen, under-secretary for constitutional and mainland affairs; Kitty Poon Kit, under-secretary for the environment; Gabriel Matthew Leung, under-secretary for food and health; and Yau Shing-mu, under secretary for transport and housing. The political assistants will earn less than the under secretaries. Katherine Ng Kit-shuen, the political assistant to the secretary for financial services and the treasury, will earn HK$163,960 a month, while former journalist Linda Choy Siu-min, the political assistant to the secretary for the environment, will have HK$149,055 a month. The other seven political assistants will earn HK$134,150 a month. They are Frankie Yip Kan-chuen, political assistant to the financial secretary; Raymond Cheung Man-to, political assistant to the secretary for development; Jeremy Young Chit-on, political assistant to the secretary for education; Paul Chan Chi-yuen, political assistant to the secretary for food and health; Caspar Tsui Ying-wai, political assistant to the secretary for home affairs; Zandra Mok Yee-tuen, political assistant to the secretary for labour and welfare; and Victor Lo Yik-kee, political assistant to the secretary for security. Chief Executive Donald Tsang Yam-kuen held a press conference on Tuesday in which he appeared alongside the 17 new political appointees. Mr Tsang defended the appointments, saying the recruitment procedures to select the 17 political appointees had been transparent and fair. “The government acted both in accordance to the Basic Law and the central government’s policy towards Hong Kong,” he said. Mr Tsang said Hong Kong’s legislators had also been involved in creating the positions. “The process began after legislators approved the creation of the positions in December last year. We made it clear that all interested parties could put forward nominations,” he said. Mr Tsang also praised recent decisions by deputy ministers to renounce their right of abode in foreign countries and overseas passports. “Five undersecretaries have already renounced their foreign right of abode. They did so to demonstrate their commitment to Hong Kong and to put this matter to rest. These were personal decisions – and I respect them,” he added. Industrial conglomerate Chongqing Machinery & Electric raised HK$1.3 billion in a Hong Kong initial public offering after it priced its shares at the bottom of an indicated range, a source close to the situation said on Tuesday. The machine and car parts tool maker priced its shares at HK$1.30 apiece, compared with a range of HK$1.30 to HK$1.70 each, the source said. The public offering portion of the IPO was about 5 times covered, the source added. The company is selling 1.0049 billion shares, or 27.3 per cent of its enlarged share capital, in a deal handled by Credit Suisse. The firm is scheduled to start trading on June 13, under the symbol “2722”.
China launched a new communications satellite, Zhongxing-9, from the Xichang Satellite Launch Center in the southwestern Sichuan Province at 8:15 p.m. (Beijing Time) Monday. The satellite was shot into space aboard the Long March-3B rocket carrier. It was the 107th launch mission for the Long March series of carrier rockets. Zhongxing-9, a satellite ordered by China Satcom from the France-based Thales Alenia Space, would be used for live television broadcast and put into use before the Beijing Olympic Games in August. Audiences would be able to watch live broadcasts of Olympic events via the satellite. The quality and coverage of the country's television and broadcasting services were to be increased, and people in remote regions of China would receive clear television programs. The China Great Wall Industrial Corporation (CGWIC), the contractor of the satellite launch, signed the launch service contract with China Satcom in November 2005. As the only company engaged in international commercial satellite launching services, CGWIC has launched 34 foreign satellites for 28 services. The World Health Organization (WHO) on Tuesday praised China's health emergency response as "quick, effective and well organized" in the wake of the fatal earthquake that has killed nearly 70,000 people in the southwestern province of Sichuan. In a press release, WHO said the conclusion was made after its representatives visited and inspected health measures in the quake-hit areas in Sichuan. Facilities visited included several hospitals and a temporary settlement in Mianzhu City, a county-level city in Deyang prefecture, as well as the Sichuan Provincial People's Hospital in Chengdu, the capital of the province. "The effectiveness of the response was especially commendable considering the number of people affected and the extent of the damage," said Dr Hans Troedsson, WHO's Representative in China. "In particular, I would underline the high level of dedication and volunteerism evident in the medical professionals we met," Troedsson said. A second team of WHO experts will visit China from June 11 to 23 to provide a set of recommendations on rebuilding healthcare services, the press release said. WHO experts have already provided training to nurses and volunteers who are working with the earthquake survivors in response to the assistance request raised by China's Ministry of Health. China has also asked WHO to assist in providing essential medical equipment and supplies to quake victims. The International Finance Corporation(IFC), a member of the World Bank Group, announced Tuesday it had invested 100 million U.S. dollars with Morgan Stanley in Nature, one of the largest flooring manufacturers in China. IFC's investment included a 20 million U.S. dollars equity investment and 30 million U.S. dollars long-term loan. Morgan Stanley made the other 50 million U.S. dollars equity investment. Both companies did not disclose its equity share of the investment. The money would be used to develop plantation forests in east China's Jiangxi Province and establish a steady supply of certified wood to the floor maker. Nature plans to increase the use of such independently certified wood gradually to 100 percent. The China Forest Trade Network, the national body of the World Wildlife Fund's Global Forest and Trade Network, will regularly assess the company's progress on this target, according to the IFC. The Chinese government promotes both ecological conservation and forestry development, as the two are interdependent of each other, said Jia Zhibang, administrator of the State Forestry Administration. By cooperating with international financial institutions such as IFC and Morgan Stanley, China's forestry industry could expand financing channels, he said. China is by far the largest growing market of forest products, with annual wood consumption estimated at 337 million cubic meters and wood imports rising at an average of 16 percent a year during the past decade, according to data from the China Timber Distribution Association. According to Jia, China's total industrial forestry output exceeded one trillion yuan (142.9 billion U.S. dollars) in 2007 with over 74 million cubic meters of artificial board produced, the largest amount in the world. China was by far the third largest investment destination of the IFC. Focusing on private sector development, the IFC had invested a total of 3.668 billion U.S dollars in 147 projects in China by the end of 2007.
Helicopter, bodies found in quake zone - A military helicopter that crashed in southwest China 11 days ago during earthquake rescue operations was found on Tuesday, along with the bodies of all 19 passengers, state media said. June 10, 2008
June 9, 2008
Hanny Holdings (0275) chairman Charles Chan Kwok-keung yesterday said he was not approached by any interested buyers before selling his stake in Golden Harvest (1132) last Thursday, refuting media reports that he ignored the interests of Golden Harvest's minority shareholders. "Before I signed the contract with Golden Harvest chairman Wu Kebo, I did not receive any concrete proposals concerning the acquisition," Chan told Sing Tao Daily, sister paper of The Standard. Yesterday local media reported that Chan, together with Li Ka-shing, sold their 39.3 percent stake in Golden Harvest at HK$3.7 per share to Wu, despite a US fund house having previously offered to buy the stake at as much as HK$4.8 per share. "The media report is not accurate. Among those who approached me before I signed the contract, none was a US fund house," said Chan. A spokesperson for Li Ka-shing also denied that Li was reached by a US fund house before selling his stake in Golden Harvest. Chan said: "If one wants to blame me for not selling the stake at HK$4.8 per share, I could only say it's the problem of wrong timing." He said he signed the agreement with Wu last Thursday and informed the stock exchange a day later. "A fund house did come to me last Friday night. But that was too late." Beijing backs HK over aides' citizenship - Beijing has weighed into the row over the Hong Kong government's new political appointees, with a spokesman for its liaison office backing the administration and praising five undersecretaries for their "show of commitment to the public" in giving up their foreign citizenship. The spokesman told the semi-official Hong Kong China News Agency the appointment of foreign passport holders as undersecretaries and political assistants was in line with the Basic Law and the city's "actual situation". He said the qualifications of the undersecretaries had been studied by the Basic Law Drafting Committee. "Considering the complication in nationality of Hong Kong citizens, there is no requirement on foreign citizenship for undersecretaries, as stated in the Basic Law," he said. Civic Party lawmaker Alan Leong Kah-kit took issue with the comments, the first by a mainland government spokesman. "The nationality row is not a legal issue. It is politics," he said. Since the appointments were announced more than two weeks ago, the government has come under fire following the revelation that several appointees hold foreign passports or have the right of abode abroad as well as for its refusal to disclose what each appointee is being paid. A member of the public has taken legal action and political groups are seeking to use official and legal channels to press for disclosure of the information. Two cabinet members called yesterday for citizens to "look forward" and give the eight undersecretaries and nine political assistants "more space". Cheung Chau retiree Kwok Cheuk-kin, 65, filed a writ on Wednesday seeking a judicial review of the government's non-disclosure of appointees' salaries. He argued that the practice had violated the public's right to know and right to monitor the administration under common law. Mr Kwok also challenged the legality of appointing holders of foreign passports as undersecretaries. Democratic Party legislator Lee Wing-tat said the party was considering other channels to demand the disclosure of each appointee's salary, in addition to its tabling of a resolution to invoke the Legislative Council (Powers and Privileges) Ordinance. "We are considering seeking judicial review or complaining to the Ombudsman," Mr Lee said. "This is public money paid to public-office bearers and needs to be used in a transparent manner." Secretary for Transport and Housing Eva Cheng and Executive Council convenor Leung Chun-ying separately appealed for a cooling of public sentiment. "Now the most important thing is to look forward and to allow space for these new colleagues to serve citizens," Ms Cheng said on RTHK. Mr Leung echoed her comment and said he understood the public's concerns. He also said that it was difficult to find candidates with political experience to join the government given Hong Kong's historic and social circumstances.
Centralized slaughtering still in the works but not for 3 years - Centralized poultry slaughtering is still in the pipeline but will not be ready for at least three years, Secretary for Food and Health York Chow Yat-ngok said yesterday. "Segregation of humans from poultry is important to prevent avian flu," Dr Chow said. "So whatever happens, that is something we are planning [for] and it is progressing." The target date for establishing centralized slaughtering, originally next year, is now 2011-12. He said the timetable was "the fastest we can move according to our existing way of planning, tendering and building". Legislator Kwok Ka-ki, who represents the medical functional constituency, criticized the delay and said the government should show more determination. "There is nothing but central slaughtering that can reduce the risk of human infection with bird flu," he said. "The way we are doing it now is dangerous. "We have been talking different arguments for too long. Our government has to be determined, for the public good." Infectious-diseases expert Lo Wing-lok said a central poultry slaughterhouse was one of the most effective precautions against a bird-flu pandemic.
Passenger car sales in China in the first five months of 2008 rose 17.41 percent over the same period a year earlier. China to raise reserve requirement ratio - China's central bank on Saturday ordered lenders to set aside more money as reserve, the fifth such move for this year. It was the latest effort to enhance liquidity management in the banking sector. The reserve-requirement ratio would be raised by 0.5 percentage point on June 15, and another 0.5 percentage point on June 25, the People's Bank of China (PBOC) said on its website. This will bring the ratio to a record high of 17.5 percent. The PBOC also said that corporate financial institutions in the worst quake-hit areas would postpone carrying out the regulation. But it didn't say how long the delayed period would be. "The rise, a further materialization of the tight monetary policy, is aimed at strengthening liquidity management in the banking system," the statement said. The PBOC had raised the ratio four times previously this year. The latest was on May 12 when it lifted the ratio to a new high of 16.5 percent. Yin Jianfeng, director of the Institute of Finance and Banking with the Chinese Academy of Social Sciences, said the move would help the country reduce inflationary pressure and to control excessive investment. "But the move will not be as effective as the government expected because inflation nationwide mainly resulted from surging production material and food prices," he said. "A simple monetary policy will not help." The consumer price index (CPI), the main inflation gauge, was up 8.5 percent in April from a year earlier. This was nearly equal to February's 8.7-percent rise, the most since May 1996.
June 7 - 8, 2008
Wah Kwong Maritime Transport decided yesterday to postpone its HK$1.28 billion listing, becoming the 10th company so far this year to pull back an initial public offering. Further restrictions on yuan services in Hong Kong would have the effect of diverting money from the official, transparent channel for yuan transactions back into unregulated, underground channels, said Hong Kong Monetary Authority chief executive Joseph Yam Chi-kwong yesterday. "I hope this does not happen, because individual residents might be exposed to additional risks they might not be aware of or in a position to manage," Yam wrote in his weekly online column. It is inevitable that demand for yuan- denominated transactions will continue to grow, given the increasing economic links between residents in Hong Kong and on the mainland, he explained. "Some people have suggested that there might be a need for measures to restrain the growth of renminbi business in Hong Kong," Yam said. "I have some reservation." Yam said the Hong Kong authorities will work to address concerns in the mainland about yuan services in Hong Kong, especially in light of the continuing upward pressure on the yuan exchange rate. He said he hopes that the continuing issue of yuan bonds in Hong Kong and the use of the yuan for settling purchases of mainland imports to Hong Kong will not be affected. "Increasing the capacity of the financial systems of Hong Kong to handle economic and financial transactions denominated in the renminbi, which is what we are trying to achieve, will be of great benefit to the country," Yam said. Although some people have cautioned that the relatively free convertibility of the yuan by Hong Kong residents could be abused by international currency speculators, Yam said the process for speculators to take advantage of this system would be cumbersome. "Speculators are not interested in such small amounts or in the tedious arrangements ... that would be necessary," he said.
China will float 20 billion yuan (2.9 billion U.S. dollars) worth of "certificated treasury bonds" from June 10, the third such issue this year. The T-bonds include 14 billion yuan worth of three-year bonds that carry a fixed annual interest rate of 5.74 percent, and six billion yuan worth of five-year bonds with a 6.34-percent annual interest rate, said the Ministry of Finance in a notice published on Wednesday. Purchasers must register their names to buy such certificated T-bonds, which could serve as security for loans, but could not be transferred, said the ministry. Interest on the bonds will be calculated from the day of purchase, and purchasers will receive the principal and interests when the certificate T-bonds fall due. The public can buy the bonds from June 10 to 30 at the retailing outlets of 39 designated underwriting institutions, including the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank.
China’s current-account surplus hit US$371.8 billion last year, up from US$249.9 billion in 2006, the foreign-exchange regulator said on Thursday, contributing to a near-doubling of the overall balance of payments surplus. The surplus on the country’s capital and financial account was US$73.5 billion last year, up from US$10 billion in 2006, the State Administration of Foreign Exchange (SAFE) said on its website. Errors and omissions came to US$16.4 billion last year, giving an overall balance of payments surplus of US$461.7 billion, up from US$247 billion in 2006. June 6, 2008
Paper IPO gets rolling on heels of Little Sheep - China's largest paper producer Shandong Chenming Paper kicked off its four-day retail offering yesterday while chain restaurant operator Little Sheep Group's retail book was already 10 times oversubscribed. Chenming Paper is pitching for up to HK$4.2 billion by pricing its shares at between HK$9 and HK$11.80 apiece. At the high end, one lot of 500 shares would cost about HK$5,959.53. Of the 355.7 million available shares, 10 percent will be offered in its Hong Kong IPO. Yesterday, Chenming received HK$21 million worth of margin applications. Meanwhile, Little Sheep has received about HK$1 billion worth of margin orders, representing 10 times oversubscription of its HK$90.23 million Hong Kong offering. Little Sheep will start trading on June 12, followed by Chenming Paper six days later. Separately, local karaoke group Neway is looking at joining eight other listing hopefuls to float IPOs in Hong Kong before the end of July. "Neway has handed in supplementary information to the Stock Exchange of Hong Kong. Details of the listing schedule will be known in two weeks' time," said a source. "Both Neway and Little Sheep are in the retail industry. If Little Sheep can price its shares at the middle of the indicative range, and not at the low end, it will give confidence to Neway to be more aggressive in its pricing. It would be great if [Neway] can raise about US$200 million [HK$1.56 billion]." Jiangxi-based developer Walter Asia hopes to raise up to HK$1.56 billion in Hong Kong next year, chairman Zhang Xinming said yesterday.
The impact of the "three direct links" between the mainland and Taiwan on Hong Kong's economy will be slight and short-lived after they come into force, the government predicts. Secretary for Constitutional and Mainland Affairs Stephen Lam Sui-lung said normal yearly growth in gross domestic product would be enough to offset any side-effects of direct trade, transport and communications links across the strait. He was addressing a Legislative Council meeting at which lawmakers passed a motion urging the government to study ways to strengthen economic ties between Hong Kong and Taiwan, in light of the improving cross-strait relationship. This has raised hopes that the three direct links will be implemented. Hong Kong has been acting as a middle man. "When more Taiwanese companies can invest on the mainland and more mainland capital also flows to Taiwan in the future, the best way out for these businesses will be to list on the Hong Kong stock market," Mr Lam said. "The early implementation of three direct links will strengthen Hong Kong's position as an international financial centre in Asia." Mr Lam also put forward the idea of a free-trade zone comprising the mainland, Taiwan, Hong Kong and Macau. To seize opportunities in tourism, the minister said the government could collaborate with its mainland and Taiwanese counterparts to promote "multistation travel routes". It would also move to attract visitors to convention and exhibition facilities, and to the future cruise terminal in Hong Kong. The motion also called for the government to grant visas to Taiwanese travellers on arrival. "Visitors from Taiwan currently must apply for visas, which is inconvenient," said Howard Young, a Liberal Party legislator. "Even Thailand grants visas on arrival to mainland Chinese. Why can't Hong Kong do the same to Taiwan?" The Democratic Alliance for the Betterment and Progress of Hong Kong suggested waiving visa requirements altogether. "If the two sides implement reciprocal visa waivers, it would help strengthen economic and cultural exchanges between Taiwan and Hong Kong," DAB chairman Tam Yiu-chung said.
June 4 - 5, 2008
Creative HK launched in London to mark region's design industry - A series of events showcasing Hong Kong's creative industry was launched on Monday night at Harvey Nichols Department Store in central London to celebrate the 10th anniversary of the Hong Kong Special Economic Region. The events scheduled to last till June 12 are supported by Hong Kong Economic and Trade Office in London. They are comprised of Hong Kong Creation 9707 products in-store display organized by the Hong Kong Design Center, which feature 10 new products by 10 international brands, designed by 10 renowned HK designers. A one-day conference -- Creative Business Forum -- will be held on Tuesday at the London Business School to explore Hong Kong's global influence on design and business from both the economic and creative perspective. In addition, there will be a special exhibition on Contemporary Hong Kong Design at the Design Museum which incorporates the Creation 9707 products to show a total of 100 examples of Hong Kong Designs. Exhibits covering graphics, communications and fashion to environments, product and interactive design help depict the broad scope of creativity that exists in Hong Kong today. "The design industry in Hong Kong has come a long way from plastic flowers and denim jeans to sophisticated creative products. The events will showcase the richness of Hong Kong's design industry," said John Tsang, visiting Financial Secretary of the Government of the Hong Kong Special Administrative Region. According to Tsang, it is the integration of East with West, as well as the "One Country, Two Systems" policy which has helped the industry engage world brands with Hong Kong styles. Tsang also pledged that HK will continue to provide "conducive and supportive environment" for business investing in the special economic region to promote and celebrate creativity. Creative HK is part of part of China Now, Britain's largest ever festival of Chinese culture. The 6-month nationwide festival consists of over 1,000 Chinese events including exhibitions, performances and activities spanning Chinese film, cuisine, comics, art, literature, music, design, science, technology, business, education and sport across Britain. It's intended to celebrate the Chinese culture in the run up to the Beijing Olympics slated for August. Hong Kong's international investment position remains strong with net external financial assets of 4.07 trillion HK dollars (522.06 billion U.S. dollars) at the end of 2007, a government press release said on Tuesday. According to a press release from Hong Kong Census and Statistics Department, the figure is 41 billion HK dollars (5.26 billion U.S. dollars) up on the same period a year earlier. The figure corresponded to 252 percent of gross domestic product. The department said that ratios of both Hong Kong's external financial assets and liabilities at end-2007 to GDP remained substantial, at 1,318 percent and 1,066 percent, showing Hong Kong is a highly externally oriented economy with considerable cross- territory investment and also a major financial center in the region with considerable cross-territory fund positions. Hong Kong's external financial assets amounted to 21.3 trillion HK dollars (2.73 trillion U.S. dollars) at the end of 2007, up 6.3 trillion HK dollars (808.11 billion U.S. dollars) or 42 percent on 2006, with direct investment accounting for 37.6 percent of the total. Both external financial assets and liabilities rise sharply in the year, showing the generally favorable economic environment and the buoyant performance in many stock markets during the year, the department said.
Guangdong property mogul Yeung Kwok-keung, chairman of Country Garden Holdings (2007), may splash out only HK$1.5 billion of his own money to acquire Shaw Brothers (0080) in an estimated HK$10.5 billion deal and rely on private and bank borrowings to finance the rest. Revenues at Asian casinos will overtake those in the United States by 2012, according to a survey of leading experts on the region's gaming industry. The survey was released yesterday to coincide with the launch of Global Gaming Expo Asia, the region's largest gaming forum at the Venetian casino resort in Macau. "The results of our...survey foretell a remarkable future for the Asian gaming market - from continued revenue growth in Macau to the rise of new jurisdictions such as Japan and Singapore," Frank Fahrenkopf, president and chief executive officer of the American Gaming Association said. The survey of 23 industry chief executives, presidents, directors and consultants has found that 84 percent in agreement that gaming revenues in Asia, led by Macau, is set to surpass those in the United States as early as 2012. Nobody thought it was "unlikely" to happen. According to the association, Asia-Pacific casino revenues are projected to exceed US$30 billion (HK$234 billion) by 2011, while US commercial casino revenue was US$37 billion in 2007. Fifty-two percent believed Macau would maintain its role as the epicenter of Asian gaming for the next three to five years, while 35 percent thought the trend would continue for six to 10 years. Singapore's entry into the fray with two casino projects and Korea and Japan looking to follow closely after some legislative amendments, heated up competition with 50 percent of respondents picking Japan to have the second largest gaming operation in the area within a decade. While some of the region's leading economies are looking to legalize gambling, Taiwan was picked by 45 percent as the next likely place for gaming expansion, followed by Japan which garnered 24 percent and Thailand, 21 percent. Seventy-eight percent of experts believe it would take the better half of a decade before electronic games could rival table gaming in popularity in Asia. Biggest rise for civil servants in 10 years - Public-sector employees are set to receive their biggest pay increases since 1998. Senior staff will get 6.3 per cent and the rest 5.29 per cent.
Greece's largest port authority said yesterday that China's COSCO Pacific (1199) has submitted the highest bid to manage two of its container wharves, offering a total 4.93 billion euros (HK$59.72 billion).
June 1 - 3, 2008
Total deposits with authorized institutions rose 0.3 percent in March in Hong Kong, with Hong Kong dollar deposits up 0.3 percent, Hong Kong Monetary Authority said here Friday. U.S. dollar deposits fell 2.2 percent, while non-U.S. dollar foreign-currency deposits rose 5.9 percent. Renminbi deposits rose33 percent to 76.6 billion yuan (about 11.05 billion U.S. dollars), accounting for 3.1 percent of foreign-currency deposits. Total loans and advances rose 1.6 percent as loans for use in Hong Kong grew 1.6 percent and loans for use outside Hong Kong rose 1.9 percent. The Hong Kong dollar loan-to-deposit ratio rose to 77.4 percent, the authority said. On a seasonally adjusted basis, Hong Kong dollar M1 dropped 0.1percent in April but rose 14.6 percent over a year earlier. Unadjusted Hong Kong dollar M3 grew 0.1 percent during the month and 10.5 percent year on year. Anti-graft agents have arrested a former Calyon Bank warrants trader, Raymond Ng, whom they allege to be the mastermind behind a HK$100 million warrant trading scam the first of its kind in Hong Kong.
An institutional shareholder in Li Ning Ltd (2331), the Chinese sportswear maker founded by a former world gymnastics champion, is seeking as much as HK$470.5 million selling shares, according to a term sheet sent to investors.
A top official from European aircraft maker Airbus said on Friday it was negotiating with its Chinese counterparts to join China's jumbo jet manufacturing program, which was officially inaugurated in Shanghai on May 11. "I'm sure we will expand our business in China, although some factors might make China our competitor," said Laurence Barron, Airbus China president, in an exclusive interview with Xinhua on Friday at the 18th Asian Corporate Conference of Asia Society. "Not a single country could make a plane on its own. The generator, instruments and even the oil used by Airbus all come from different partners. China need such support." China's first ever jumbo passenger aircraft company, named Commercial Aircraft Corporation of China Ltd.(CACC), will be responsible for researching, developing, manufacturing and marketing the homegrown large passenger aircraft.
Despite the massive relief and reconstruction effort diverting resources to quake-ravaged Sichuan, Olympic preparations remain on track. "Preparations have moved into the last and critical stage," said Vice President Xi Jinping. "We will do it well while working hard for quake relief. We will pay equal importance to the two things and not delay one for the other." Officials said the disaster, while tragic, has offered a rare opportunity for Beijing to practice its crisis- management skills.
May 29 - 31, 2008
Rough run-up to Games may cut visitor numbers - A senior tourism official in Beijing has admitted that a storm of bad publicity surrounding the country in the run-up to the Olympics could reduce the number of foreigners attending the Games. New aftershocks toppled 420,000 houses and injured dozens in southwest China on Tuesday, heaping destruction and fear on a region struggling to recover from the country's worst earthquake in decades. May 27 - 28, 2008
The government is considering a review of its airline regulatory system in the wake of the collapse of budget carrier Oasis. espite claiming the Oasis case is an isolated one, Deputy Secretary for Transport and Housing Esmond Lee Chung-sin said efforts must be made to guarantee that no airline will suffer the same fate. Oasis, which had been in business 17 months, operated daily flights to London and six flights weekly to Vancouver. It folded last month because it was losing money and there was disagreement among key shareholders. Lee yesterday assured a Legislative Council economic development panel hearing that the current license-granting system is still effective, saying no similar case had occurred before. He said the administration will examine the financial report, business plans and budget of every hopeful airline before granting a license. Lee admitted, however, that it usually takes time for a new airline to break even. "We will consider reviewing the regulatory system to see if there is any room for improvement," he said, adding it will be more cautious in processing new applications for budget airlines. The Olympics is less than three months away but there is still no sign of a stampede of visitors, the Hong Kong Tourism Board said. Only about 50 percent of the available hotel rooms have been booked for the Olympic month of August, which is even 10 percent less than it was this time last year. Board chairman James Tien Pei- chun confessed yesterday there was nothing the board could do to boost bookings other than continue with the planned promotion activities. Federation of Hong Kong Hotel Owners executive director Michael Li Hon-shing described the bookings as "unsatisfactory." He attributed this to the equestrian events' lack of appeal. "Even [the government] has no idea how many spectators the events could attract," Li said. He said the complicated procedures introduced when applying for mainland visas and the Sichuan earthquake had also lowered the interest of tourists, who may have planned to visit the mainland after the events in Hong Kong. However, Tien is confident total tourist arrivals in August will show a single digit growth when compared with last August, which recorded a 17 percent growth over the previous year. Tien said the board had tried to assess the impact the Sichuan earthquake would have on Hong Kong tourism but could not arrive at a figure. He said tourists from Sichuan accounted for less than 1 percent of the annual total tourist arrivals of 28 million last year. Mainland tourist arrivals between May 13 - the day after the earthquake - and May 25 showed a 25 percent rise on the same period last year. Tien said this was because most tourists made their travel plans before the earthquake struck. Meanwhile, Tien kicked off the HK$32 million promotion called Hong Kong Summer Temptations. Between July 1 and September 21, tourists will get stamps from 18 designated attractions, including the twotheme parks, the Avenue of Stars and The Peak with which they can redeem gifts. Other activities include a lucky draw with prizes worth HK$1.2 million, special retail and hotel offers, free MTR tour guide books and the opening of the Hong Kong Olympic Piazza. Tien also revealed former executive director Clara Chong Ming-wah had not yet refunded the HK$140,000 spent on medical insurance for her family. Executive director Lau Chun-hon has been asked to pursue the matter. Ocean Park has injected a local flavor into its menu with egg tarts, milk tea, "yuen yang" - a mix of coffee and milk tea - Hainan chicken rice and other local favorites offered at its first cha chen tang, which opened yesterday. Cafe Ocean formerly served western-style buffets, but park chairman Allan Zeman says sales can double with the cha chen tang - an eatery unique to Hong Kong. Zeman is also confident tourists will be interested in the coffee shop and enjoy authentic Hong Kong food. "The menu is geared towards local tastes," he added, "and foreigners will have to adapt to it." The restaurant, with a capacity of 240 , has been redecorated with a 1970s look. Pictures of former top singers like Teresa Carpio hang side-by-side with handwritten menus. Even the music has been fine-tuned, with old-time favorites such as Adam Cheng Siu-chow's The Heaven Sword and Dragon Saber helping digest that egg-tart. Park food and beverage operations manager Stephen Chow Wai-ming said he will ensure the cha chen tang displays the cleanliness and tidiness found in high-end restaurants. "You won't see our waiters with their fingers in your tea as was the case in the old days," he said. Also yesterday, the park announced a one-off 50 percent discount on admission for secondary five and seven students between now and June 30. And on the park program: an exhibition of five sturgeon fish and a summer water party. Zeman noted too yesterday that the caretaker of resident giant pandas Ying Ying and Le Le, He Changgui, was safe, though several of the handlers at the Sichuan Wolong panda reserve were killed when the area was ravaged by the May 12 earthquake.
Country Garden Holdings (2007) chairman Yeung Kwok-keung is seeking a syndicated loan of about HK$7 billion to buy Run Run Shaw's stake in Television Broadcasts (0511). ccording to Basis Point, Citigroup is coordinating the loan for Yeung's potential purchase of the TVB stake. More than 10 banks have been invited, each underwriting at least HK$1 billion. The size of the facility is currently set at about HK$7 billion with an initial margin of more than 300 basis points. Invited banks include Bank of China (Hong Kong), Bank of Communications, Bank of Tokyo-Mitsubishi UFJ, GE Commercial Finance, ICBC Asia, Mizuho Corporate Bank, Standard Chartered Bank and Sumitomo Mitsui Banking Corp. Acquiring Run Run Shaw's 26 percent stake in TVB will cost between HK$10 billion and HK$11 billion, a source said. Aside from the syndicated loan of HK$7 billion, Yeung previously borrowed HK$3 billion from Henderson Land Development (0012) chairman Lee Shau-kee. On Sunday, Lee confirmed The Standard report that he had loaned money to Yeung but declined to disclose if the collateral involved was shares in Country Garden or Shaw Brothers (Hong Kong) (0080). Run Run Shaw has a total beneficial interest of 32.49 percent in TVB. He indirectly holds a 26 percent stake in TVB through his 75 percent ownership of Shaw Brothers (Hong Kong). In addition, The Shaw Foundation Hong Kong Ltd holds a 6.23 percent interest in TVB. Hong Kong is still enjoying strong export growth – with the total value of exports in April rising 14.5 per cent over a year earlier to HK$243.4 billion, latest statistics released on Tuesday showed.
PCCW faces legal threat over fees - CSL has warned PCCW it faces legal action after the fixed-line giant slapped a 25 percent connection fee increase on mobile operators - branding the move an unfair bid to squeeze the industry as its monopoly comes to an end. Lovebirds rushing to tie the knot in Taiwan - About 5,000 couples from China will get wedding photos taken at Taiwan's world-renowned studios, which seldom receives them now due to political tensions, as part of a travel agreement, an industry source has said. A cultural promotion company close to the Chinese government has agreed with Taiwan's Saromant International Wedding Photo Group chain to send the couples over on direct weekend flights expected to begin in July pending a long-awaited agreement between the two sides, said chain chief Celine Liu. About 20 couples from Beijing have signed up for the first weekend flight, Liu said. Taiwan , with 1,300 wedding studios seeking new business as local clients save their money in tight economic times, is well known among Chinese in Hong Kong, Southeast Asia and the United States for bridal packages which include outfits plus access to natural photo scenery. May 24 - 26, 2008
The Hong Kong Jockey Club is sparing no expense in its meticulous planning for the Olympics this August, pouring HK$22 million into its dressage and jumping arena at the Hong Kong Olympic Equestrian Venue in Sha Tin. The High Court refused to grant an injunction to chairman of Sun Hung Kai Properties Walter Kwok Ping-sheung to prevent an attempt by his brothers to force him out of the company. The Hospital Authority will introduce measures from June 1 to curb the high turnover rate of nurses in public hospitals. The measures, which will cost the authority HK$140 million, are expected to take a year to complete. One proposal is for the reopening of two schools in September and October at Tuen Mun Hospital and Caritas Medical Centre to train registered and enrolled nurses. The schools can train a combined total of 480 nurses. At present only two nursing schools, one at Queen Elizabeth Hospital and the other at Kowloon Hospital, are operating. The Hospital Authority's director for cluster services, Cheung Wai-lun, said 690 nursing graduates were expected to enter the workforce in the 2008-09 financial year, compared with only 600 the previous year. In 2007-08, there was a record high dropout rate of 4.5 per cent of 19,400 nurses working at authority hospitals. The second-highest dropout rate was recorded in 2003-04 after the severe acute respiratory syndrome outbreak, with 4.4 per cent. Susie Lum Shun-shui, the authority's chief manager of nursing, said gynaecology, intensive care, paediatric and medical wards recorded the highest dropout rates. Another authority proposal to be implemented is the addition of a senior clinical position called the nurse consultant post. The new post is equivalent to the existing rank of senior nursing officer, with a salary in the range of HK$47,485 to HK$59,580. Furthermore, the authority also plans to offer six-year contracts to registered nurses who have completed a three-year contract, providing job security. As well, nurses with six years' experience would qualify for a permanent position if they received three good performance reports. This proposal aimed to show nurses working in the public sector and people considering joining the profession that there were good career prospects within the health sector, Dr Lum said. Another measure would promote 400 registered nurses to the more senior advanced practice nurse level, he said. The authority will also increase pay for advanced practice nurses, who are responsible for the management of wards and units. Some of these measures were proposed in March and authority nurses were able to comment on the proposals in a consultation. In the meantime, the authority will set up more 24-hour pharmacies in hospitals aiming to reduce nurses' workload. Dr Cheung hoped all the measures would help reduce the dropout rate of nurses.
May 22 - 23, 2008
Trade between the Chinese mainland
and Taiwan reached 43.91 billion U.S. dollars in the first four months of this
year, up 21.7 percent year-on-year, according to the Ministry of Commerce (MOC)
on Wednesday. The mainland's exports to Taiwan reached 8.17 billion U.S. dollars
and imports from the island reached 35.74 billion U.S. dollars, up 16.9 percent
and 22.8 percent, respectively. the MOC's figures showed. During the same
period, the mainland attracted investment from Taiwan in 731 projects, down 36.9
percent, while the actual use ofT aiwan investment reached 650 million U.S.
dollars, up 29.6 percent. As of the end of April 2008, cumulative investment
from Taiwan in the mainland totaled 46.41 billion U.S. dollars in 75,877
projects. The figures date back to 1988, when mainland-Taiwan trade opened up.
Shares of Asia Cement (China) Holdings (0743) rose 39 percent to close at HK$6.89 on its trading debut yesterday. "The good performance of Asia Cement is due to the rising demand for cement after the recent Sichuan earthquake," said CASH Financial Services Group (0510) director Horace Kwan Pak-leung. The cement maker opened at a high of HK$8, up 62 percent from its IPO price of HK$4.95. During the day, the shares managed to trade above the offering price, fluctuating between HK$8 and HK$6.55. About 190 million shares changed hands, translating into a turnover of HK$1.34 billion. Asia Cement is the ninth mainboard listing in Hong Kong this year, excluding companies switching to the mainboard from the second-board Growth Enterprise Market. Among these nine, the shares of five companies plunged on trading debut to close below their offering prices. "Upcoming initial public offerings are unlikely to show a similar performance to Asia Cement. This is only an individual case. In fact, the response for Asia Cement was not that encouraging before the earthquake," said Kwan. Meanwhile, Shandong Chenming Paper Holdings, which is already listed on the stock exchanges of Shenzhen and Shanghai, will list in Hong Kong on June 18. "Chenming Paper is likely to have its roadshow from May 26 to June 10. The retail book may begin on June 3 or 4," said a source. Chenming Paper and A8 Digital Music will both conduct their investor luncheons in Hong Kong next Tuesday. Chenming Paper is seeking to raise about HK$4 billion by selling 409 million shares, including a greenshoe option. A8 is pitching for a maximum of HK$220 million by selling 91 million shares at between HK$1.66 and HK$2.38. The retail book of A8 will be open from June 2 to 5, while its trading debut is set for June 12.
Chinese Foreign Ministry spokesman Qin Gang Tuesday briefed reporters on the latest aid provided by the international community and reiterated China's gratitude to international condolences and aid over the deadly earthquake in Sichuan Province. "All the international condolences and aid have fully shown the friendly affection of these foreign governments and peoples toward the Chinese people and their noble humanitarian spirit," Qin said. So far 166 countries and 30 international organizations have expressed condolences to China and international aid has been coming in, he said. Flags of more than 100 foreign embassies and offices of international organizations in China flew at half-mast during China's three-day national mourning from Monday to Wednesday, and foreign diplomats and international representatives to China came in an endless stream to the Foreign Ministry to mourn, according to Qin. He said the rescue teams sent by Japan, Russia, the Republic of Korea and Singapore to the quake-hit southeastern part of China have worked against time, difficulties and danger in the quake relief, which showed their respect for lives and their high professional level and had deeply moved the Chinese people. "We are sincerely grateful to the four countries' governments, peoples and rescuers," Qin said. In response to a Japanese journalist's question, Qin specially thanked Japan which was the first country to send a rescue team to Sichuan, saying the hard work of the Japanese rescuers was extensively known by the Chinese people. China has also agreed to accept medical teams from Germany, Italy, Russia and Japan to go to the quake-hit area and would consider accepting more foreign medical teams according to the medical aid progress in the quake-hit area, said Qin.
Britain prioritizes China as a top collaborator in its national innovation development. According to the British Embassy to China, the British government white paper called Innovation Nation, the blueprint of the country's innovation strategy, highlights the continued engagement with the emerging economies of China, Brazil and India to realize the strategy. The Chinese language version of the strategy was released formally on Monday at a forum in Shanghai, where British Embassy Science and Innovation Counsellor David Concar said that China and the UK are both making it a priority to create innovation-oriented societies. The aim of the new UK strategy is to create a nation in which innovation flourishes across every area of the economy and at every level of society. The UK hopes innovation will play a key role in addressing some bigger global challenges like global warming and sustainable development. In line with the new innovation strategy, the UK has created a new public body to carry forward many key initiatives aimed at bringing together companies, academics and other key players in the UK's innovation system. The new body, the Technology Strategy Board, will have an annual budget of around 1 billion pounds (RMB14 billion).
May 20 - 21, 2008
NEW YORK, May 18 - More than 200 Chinese American entertainers staged a benefit performance here Sunday afternoon raising more than 106,000 U.S. dollars for victims of China's May 12 earthquake. The performers, including singers, musicians, martial arts practitioners and a competitor in this year's local beauty queen contest, endured showers during much of the five-hour event. "None of the performers changed their appearance because of the rain," said Richard Li, one of the event's organizers. Organizers were able to pull off the benefit performance in just three days, thanks to a tremendous outpouring of sympathy and support from the local Chinese community, Li said. All logistics and services, including the venue, the audio systems and other supplies, were provided for free. One of the anchors at the event broke into tears time and again, especially when she saw children offer their piggy-bank dollars to the quake victims. "How I wish those children in the quake-stricken areas were as happy as you are," she sobbed. Many of the more than 32,000 people who perished in the earthquake were children. Many had teary eyes at the event, including Peng Keyu, the Chinese consul-general in New York. Diplomats at the Consulate General have been working overtime over the past few days helping Americans, both of Chinese and other ethnic background, donate to the quake victims. Hundreds of checks have been sent in daily, Peng said, some from people visiting the visa office. Ellen Young, a Taiwan-born New York State Assemblywoman, read two letters, one to the Standing Committee of Sichuan Provincial People's Congress, the other to the Sichuan Provincial Government, in Sichuan dialect, expressing sympathy for and solidarity with the Chinese people. "I am sure that people in the disaster-stricken area will, proceeding from the Chinese nation's spirit of perseverance in hard times, pass the period of difficulty soon," Young said. The assemblywoman said she would propose establishing a sister state-province relationship between New York and Sichuan so as to better help the quake-hit province's reconstruction efforts. Near the benefit performance's venue outside Flushing Mall, in Flushing, home to one of New York's largest Chinese communities, many local Chinese organizations continued collecting donations for quake victims despite the rain. Lily Costa, a Sichuan native, has been collecting donations since Tuesday, one day after the 8.0-magnitude quake. The nine-member family of her stepmother's brother was in Beichuan near the epicenter; only three survived.
Hong Kong and China Gas (0003), better known as Towngas, said it will spend about HK$3 billion annually over coming years in emerging energy projects and pipeline construction.
Chief Executive Donald Tsang Yam-kuen on Tuesday announced a list of eight under secretaries – who will rank as deputy bureau directors and support the bureau secretaries. Mr Tsang discussed the new positions at a press conference at the Central Government Office. “The new under secretaries are drawn from the financial, legal and medical professions, as well as academia and the media,” he explained. Mr Tsang said they would assist bureau secretaries in implementing government policies. “The appointments mark a key milestone in Hong Kong’s development of its accountability system. The appointees will assist the respective bureau secretaries in implementing my policy blueprint and agenda to better serve the community,” Mr Tsang explained. “I am confident that they will work closely as a team with the bureau secretaries and other civil servants in serving Hong Kong,” he added. Mr Tsang said the process for appointing additional political appointees is still under way. Further announcements on the remaining posts of under secretaries and political assistants would be made later. The under secretaries are chosen under the political appointment system on non-civil service terms for the period until June 30, 2012. The eight appointees are: Under Secretary for Commerce and Economic Development, Gregory So Kam-leung; Under Secretary for Constitutional and Mainland Affairs, Raymond Tam Chi-yuen; Under Secretary for Education, Kenneth Chen Wei-on; Under Secretary for the Environment, Dr Kitty Poon Kit; Under Secretary for Financial Services and the Treasury, Julia Leung Fung-yee; Under Secretary for Food and Health, Gabriel Matthew Leung; Under Secretary for Home Affairs, Florence Hui Hiu-fai; and Under Secretary for Transport and Housing, Yau Shing-mu.
Chinese banks have offered 2.99 billion yuan (429 million U.S. dollars) of loans for reconstruction work in the earthquake-hit areas in Sichuan Province as of yesterday noon, the top banking regulator said. The China Banking Regulatory Commission also said yesterday on its Website that banks and their employees have donated 750 million yuan to the quake-hit area. The destructive 8.0-magnitude quake hit the province on May 12 and so far the death took has reached more than 34,073 lives as yesterday noon. Industrial & Commercial Bank of China, the country's largest bank, plans to grant over 10 billion yuan of loans to the relief work, the regulator said. More than 90 percent of banking outlets have resumed operations in Sichuan. ICBC allocated 100 automatic teller machines to the province to smooth cash withdrawals in the quake-hit area. Up to May 15, 589 outlets of the bank have resumed operations, representing 91 percent of its network in the province. The Chengdu Branch of the Export-Import Bank of China also signed credit contracts worth 600 million yuan with three Chengdu-based companies for quake relief on Sunday. More than 90 percent of banks' outlets resumed operations on May 16 even though some are just "tent banks" as employees work to offer basic financial support in the severely hit area. The People's Bank of China offered more credit support to the quake-hit area to ensure ample cash supply in the area. The central bank gave loans of 1.5 billion yuan to its Chengdu branch to ensure rural cooperatives have an adequate supply of credit in the quake-hit area, while another 1 billion yuan was offered to Chengdu and Mianyang City, the central bank said on its Website yesterday. The central bank said last Wednesday it decided to offer credit worth 5.5 billion yuan - 3.3 billion yuan of credit to Sichuan Province and 2.2 billion yuan of credit to Gansu Province - to ensure cash supply in the disaster area.
Chinese stood in silence and grief on Monday afternoon to mourn the tens of thousands of victims of the worst earthquake in decades, but their sorrows didn't shake their confidence in China's economy, said analysts. European Union (EU) investment in China shrank in 2007 despite a strong growth of the 27-nation bloc's cash flow into foreign companies, official figures showed on Monday. May 19, 2008
A five-member Government Flying Service team left yesterday for Sichuan to join the Hong Kong government's search and rescue team on its dangerous mission. The flying team, which will be providing technical assistance, consists of two pilots, two aircrew members and an aircraft engineer. A service spokesman said the team arrived in Chengdu yesterday afternoon, and would stay in Sichuan for at least a week. They are based at an aviation base in the town of Guanghan, just outside Chengdu, where a fleet of helicopters is stationed. The team will work with the Ministry of Communications and are on standby to fly key missions, such as evacuations and airdrops. On Thursday, a 41-member rescue squad flew to Sichuan. It has been working in Mianzhu county , after being assigned by the mainland rescue command, searching a collapsed administrative building at the Dongfang Electric factory. Acting director of Fire Services Chan Chor-kam said members of the team were experiencing serious aftershocks, nearly a week after Monday's earthquake. Mr Chan said more rescuers would be deployed as necessary. The squad would stay in the disaster area for at least seven days. Hong Kong Red Cross deputy secretary Wilson Wong Mok-fai said the biggest difficulty for rescuers was that the transport network had been destroyed. "Roads heading to the most affected areas are not yet cleared."
Hutchison eyes water treatment business - Hutchison Whampoa (SEHK: 0013) said yesterday that it planned to increase its exposure to the water production and treatment business. Eyeing the rising demand for water as populations and industries grow, the conglomerate will launch a new division, Hutchison Water, to provide water production and treatment solutions. Hutchison Water chief executive Amikam Cohen said the company would set up offices in Hong Kong, on the mainland and in the Middle East, and build the business through acquisitions, alliances and investing in water technology companies. He said the new division had already recruited technology experts in the areas of desalination, water reuse, water treatment and wastewater treatment. "Increasing demand, coupled with depleting natural resources from global warming, over usage and contamination, has created significant opportunities in this field." said Hutchison Whampoa group managing director Canning Fok Kin-ning. "Hutchison Water intends to rapidly develop its business in this burgeoning water market." Credit Suisse analyst Cusson Leung said it was a positive move for Hutchison because water-related businesses would provide good earnings growth for the company. "The China water-treatment business has strong growth potential given the shortages of drinking water on the mainland," he said. Mr Leung said it was hard to quantify the result of setting up the new division as details had yet to be announced. He added that industrial waste water treatment, drinking water production and desalination had different profit margins, but the overall outlook for the water sector was promising. A central government report in early 2006 estimated that more than 300 million rural residents still have limited access to safe drinking water. Meanwhile, more people are facing water shortages. The United Nations Development Programme's Human Development Report 2006 said that across much of the developing world, unclean water was an immeasurably greater threat to human security than violent conflict. Global investment in desalination plants, which clean and filter water for households, may reach US$25 billion by the end of 2010, according to research group Global Water Intelligence, Hutchison Whampoa shares closed yesterday at HK$78.95, up 0.32 per cent before the announcement.
China's accommodation and catering retail sales reached 112.2 billion yuan (16 billion U.S. dollars) in April, up 25.2 percent over the same period of last year and accounting for 13.8 percent of the total consumer goods retail sales, statistics published by the Ministry of Commerce showed on Friday. The April's growth was 6.8 percentage higher than that of the same month of last year. The ministry said the high monthly level was mainly attributed to food price rises and a low base of comparison. Over the first four months, accommodation and catering retail sales were up 23.9 percent over the same period last year, reaching 408.9 billion yuan, which accounted for 14.3 percent of the total consumer goods retail sales. During the four-month period, foreign investors have set up 229new accommodation and catering enterprises, down 7.7 percent, and utilized 350 million U.S. dollars up 30 percent. Retail sales of catering enterprises with more than 40 workers and annual sales reached 134.7 billion yuan during the first four months, up 21.8 percent. China's consumer price index (CPI) rose 8.5 percent year-on-year in April and food price soared 22.1 percent, 0.7 percentage points higher than that in March, the National Bureau of Statistics (NBS) said on Monday.
China has received 6.023 billion yuan ($860 million) in cash and goods for earthquake relief from donors at home and abroad as of 1 pm Saturday, according to the Information Office of the State Council. Domestic donations nearly doubled the figure on Friday to reach 4.9 billion yuan, including 4.185 billion yuan in cash and 720 million yuan of relief materials, the office said. This is the first day that domestic donations have surpassed relief supplies allocated by the central budget, which rose to 3.982 billion yuan as of Saturday afternoon. The Ministry of Civil Affairs (MCA) had received donations of 122 million yuan and the China Charity Federation had received about 450 million yuan. Local governments, domestic companies and social institutions had donated or pledged to donate 3.18 billion yuan to the affected areas. The Red Cross Society of China announced it had received 1.83 billion yuan of relief supplies as of midday on Saturday from home and abroad, and had delivered 400 million yuan in cash and goods to affected areas. Donations from Hong Kong, Macao and Taiwan reached 580 million yuan on Saturday, which included 558 million yuan in cash and 22 million yuan in relief goods. The Ministry of Civil Affairs ordered its local agencies on Saturday to conduct donation work in a "fair and transparent" way and step up management of donated money and relief materials to prevent embezzlement and ensure they reached the quake victims as soon as possible. The MCA and the Ministry of Finance jointly launched an emergency procurement program on Wednesday to buy relief materials, including tents, lamps, clothes, cotton-padded quilts and make-shift toilets, direct from factories. The ministries have decided to expand the procurement list on Saturday by adding larger tents with a size of 36 square meters, mobile homes and prefabricated homes. The One Foundation Project, initiated by kung fu star Jet Li in 2007, had raised 42.7 million yuan for quake relief by Saturday noon with almost 500,000 people making donations via the Internet. Accompanying the first batch of the foundation's supplies, Jet Li arrived in Sichuan provincial capital Chengdu on Saturday afternoon. Li said apart from relief supplies, he brought with him nearly 500,000 loving hearts. "In face of the devastating disaster, the kind-hearted nature of human beings has been aroused." US Health Secretary Michael Leavitt on Friday confirmed plans by the US Food and Drug Administration (FDA) to establish a local presence in China. Total losses to insured and uninsured property from the 7.8-magnitude earthquake in China will likely exceed 140 billion yuan (HK$156.2 billion), catastrophe risk modeling firm AIR Worldwide estimates. However, due to the low penetration of insured properties in the Sichuan region, insured losses will likely reach 7 billion yuan, and be at least 2 billion yuan, in residential, commercial/industrial and construction-all-risks/erection- all-risks lines of business, it said. Chinese insurers yesterday also estimated the value of claims due to the earthquake incident will be more than 13.5 billion yuan. China's largest property and casualty insurer PICC (Group), the parent of PICC Property & Casualty (2328), said it has 13.26 billion yuan in potential life insurance claims in three southwestern cities, including Chengdu, Sichuan's provincial capital, the Securities Times reported yesterday. PICC, which is 9.9 percent-owned by American International Group, had 52,000 life insurance policyholders in cities including Chengdu, Deyang and Mianyang, the paper said. The largest insurer, China Life (2628), said on Wednesday that claims related to about 150 cases will amount to 134 million yuan. Ping An Insurance (2318), the No2 insurer, expects claims worth 1.608 million yuan. So far, 484 cases have been reported and 213,400 yuan paid out. China Insurance International Holdings (0998) executive director and chief executive officer Kenneth Ng yesterday estimated its claims payout at about HK$30 million. "We have done enough risk cover - after reinsurance CIIH only needs to share claims of about HK$3 million," Ng said. "AIR estimates total claims will only be about 2 to 7 billion yuan. It will affect our profit by about HK$60 million and is what we can manage," Ng said. CIIH has about a 1 percent market share of the mainland property and casualty insurance industry. May 17 - 18, 2008
"There is no change in China's opening-up policy, nor in its visa policy in line with this policy, " says a Chinese Foreign Ministry official in Hong Kong. Song Ronghua, spokesman of the Office of the Commissioner of China's Ministry of Foreign Affairs in the Hong Kong Special Administrative Region, made the remarks in a letter to the South China Morning Post newspaper, which was publicized Wednesday. Recently, China's visa policy has caused concern in the Hong Kong media and business community, and some people expressed confusion and wrote articles speculating that China has changed its opening-up policy, he says. "With a view to addressing any misunderstandings, I would like to make some clarification and candidly explain our visa policy and current practices to your readers," Song says. "First, one thing must be made clear - there is no change in China's opening-up policy, nor in its visa policy in line with this policy," he says. Commemorating the 30th anniversary of China's reform and opening up is as much a monumental event this year for us as hosting the Olympics, he says. In his keynote speech "Continuing Reform and Opening up and Advancing Win-win Co-operation" at the just-concluded Boao Forum for Asia in Hainan Province, Chinese President Hu Jintao talked at length on China's commitment to reform and opening up and resolving to continue peaceful development, he says. "The issuing of visas is part of the exercise of national sovereignty," says Song, adding that recently, some appropriate arrangements for issuance of visas have been made with reference to practices of previous hosting countries of the Olympics and other major international sporting events, and in line with China's relevant laws and regulations. Applicants are now required to provide some of the following documents: an invitation letter, certificate for relationship, hotel vouchers, onward and return tickets. "Compared with most other countries, it is more convenient to get a Chinese visa," he says, citing the fact that foreigners are not asked to provide biometrics information and a visa is issued in a relatively short period of time. "The current visa arrangements are conducive to creating a safe and comfortable environment for foreign visitors in China. We hope that your readers can understand this," he says. Song says that the Commissioner's Office has taken full account of Hong Kong's unique status and special situation and has adopted all the necessary measures to facilitate the visa applications of foreign nationals in Hong Kong. The European Chamber of Commerce has issued another letter - the first sent a month ago is still unanswered - to the Chinese authorities underlining the impact of visa restrictions on the foreign business community. Sensational accusations fly as SHKP chairman takes his fight to court - The final battle in the long-running Kwok family saga was put on hold yesterday, after Walter Kwok Ping-sheung got a last-minute court injunction preventing the Sun Hung Kai Properties (0016) board from voting on his ouster.
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Hong Kong:
Chief's plea falls on deaf ears - An unprecedented attempt by chief executive
Donald Tsang Yam-kuen to silence his critics over the political appointees row
looked to have backfired last night as debate raged in the Legislative Council
more than seven hours after he spoke.
There are now 95,000 individuals in
Hong Kong with net assets of at least US$1 million (HK$7.8 million), excluding
their primary residence and cars. The number indicates a 10.2 percent increase
in the number of high net worth individuals in the territory since 2006,
according to the latest annual world wealth report by Merrill Lynch and
Capgemini. Driving growth last year were the increase in property prices, the 39
percent rise in the Hang Seng Index, real gross domestic product of 6.4 percent
driven by robust export growth, and the 55 percent increase in market
capitalization on the Hong Kong stock exchange, the report said. "Hong Kong
continues to attract a lot of listings from China," said Mark Matthew, senior
director and chief Asia strategist of Merrill Lynch. "When I combine the very
low levels of valuations in Hong Kong, particularly in the property sector ...
the fact that we will not be having rising rates here, and with the better
outlook in China for the second half, makes us positively disposed to Hong
Kong." Matthew said "the worst is over" for the mainland's economy - now that
the government has introduced a lot of tightening measures on the economy, and
because inflation is on a downward trend. Even though last year's HNWI
population growth rate fell below the 12.2 percent of the 2006 report, Victor
Tan, market director of of Greater China at Merrill Lynch, said the number of
HNWI in Hong Kong was unlikely to shrink, as most of them had diversified
portfolios, thereby spreading out the risks. "Possibly, when the economy was
volatile, investments had been hedged and moved into lower-risk investments,"
Tan said. He noted in the report a quarter of all financial assets in
Asia-Pacific are in cash and deposits, while 21 percent are in fixed income. The
report also showed that the mainland has the second-fastest growing HNWI
population in the world.
Li Ka-shing reveals his key to success -
Hong Kong's richest man has unveiled his secret to success - an index warning
against arrogance. Li Ka-shing said his formula was borrowed from the Greeks: to
strike a balance between "arete" - meaning goodness, excellence and virtue - and
"hubris", referring to pride bordering on arrogance. "The hubris index governs
not only our attitude, but our behaviour. Are we excessively proud and boastful?
Do we fail to listen to foils [critics] that say you're wrong? Do we refuse to
get feedback about the outcome of our acts and decisions? And are we lax in
planning in advance for possible problems, consequences and corrective
measures?" he asked. Mr Li was speaking at a graduation ceremony at Shantou
University in Guangdong. He is honorary chairman of the university council. The
index had been a navigational tool that had guided him through life, Mr Li told
students. Saying a humble heart was the beginning of all knowledge, he reminded
young people to avoid walking on dangerous ground to "systematically inflate the
view of one's own abilities, to become caught up in exaggerated pride or
self-confidence". The tycoon, who had said he treated his philanthropic
foundation as a third son, also cited ancient Chinese philosopher Zhuangzi to
encourage young people to give, not only to take. "A position of sovereign does
not necessarily connect with being thought noble, nor the condition of being
poor with being thought mean," he said. The ceremony was also attended by Yang
Liwei , the nation's first man in space, and Guangdong vice-governor Song Hai.
Mr Li was rewarded for unveiling the secret of his success - with the singing of
a song to mark his 80th birthday, entitled Great Wisdom.
China:
Chinese shares plummeted on Friday as investor sentiment was hurt by weak
overseas markets and concerns about new share offerings. The benchmark Shanghai
Composite Index trimmed 153.42 points, or 5.29 percent, to close at 2,748.43
points. The Shenzhen Component Index dropped 563.45 points or 5.63 percent to
9,436.21. Combined turnover on the two bourses shrank to 97.2 billion yuan
(around 14.17 billion U.S dollars) from 108.6 billion yuan on the previous
trading day. Oil caps were deeply hurt by the rising international crude oil
price, said Wan Bing, a Guangdong-based GF Securities analyst. PetroChina, the
country's largest oil producer, and Sinopec, Asia's top oil refiner, plunged
3.47 percent to 15 yuan and 9.12 percent to 10.27 yuan respectively. Securities
shares fell on the news of Everbright Securities' coming initial public offering
(IPO). The China Securities Regulatory Commission (CSRC), the market watchdog,
said late Thursday it would review IPO applications from the Everbright
Securities and China South Locomotive and Rolling Stock Corp. on June 30.
According to the draft prospectus, the two companies are scheduled to raise
about 20 billion yuan, which would further drain liquidity from the sluggish
market, dealers said. CITIC Securities, the country's largest listed brokerage
firm, lost 8.33 percent to 24.55 yuan per share and Shanghai-based Haitong
Securities was down 6.11 percent to 24.12 yuan. The market is also concerned
about a possible interest rate rise during the weekend, which may have
unfavorable effects on the A-share market, said Zhang Dongyun, a Haitong
Securities analyst. A report by Guotai Jun'an Securities said that one should
not be over-pessimistic about the market, believing that the country would
loosen its tight monetary policy in the third quarter of this year, which would
create more investment opportunities. The Shanghai Composite Index may fluctuate
between 2,500 and 3,700 points in the second half of this year, said the report.
Losing shares outnumbered gainers by 791 to 35 in Shanghai and by 675 to 17 in
Shenzhen on Friday. The benchmark Shanghai Composite Index has shrunk more than
55 percent from its peak in mid-October last year. 
A bird's eye view of the Shanghai Yangtze Bridge under
construction over the mouth of the Yangtze River in Shanghai, East China, June
27, 2008. Shanghai is working on a mass transport project, including a bridge
and tunnel to connect suburban islands to the city center.
People holding umbrellas walk pass a
fallen tree in south China's Hong Kong on June 25, 2008. Hong Kong was affected
by heavy rain as the Typhoon Fengshen headed towards the southern Chinese city.
The Hong Kong Observatory issued the No. 8 Northeast Gale or Storm Signal on
Tuesday and red warning on Wednesday.
Government ultimatum to chicken farmers: Take our $1b or leave it! - The poultry
industry has been given an official ultimatum accept a HK$1 billion government
compensation package to shut down their businesses or face an uncertain future.
The city's 469 chicken retailers have been told they must decide what to do by
July 24 while farmers, wholesalers and transport workers have been given until
September 24. Secretary for Food and Health York Chow Yat-ngok said this was the
government's final offer after a meeting of the Executive Council yesterday. As
well as retailers, Hong Kong has 71 wholesalers, 50 chicken farms and 266
transport workers who depend on the trade for their livelihood. However, if the
retailers' accept the buyout deal it will effectively end the businesses of the
rest of the sector as well as Hong Kong's culture of cooking live chickens. The
need for central slaughtering by 2011 may also be made redundant. Chow expressed
confidence that most of the retailers will accept the deal which is more than
three times the 2005 Voluntary Surrender Scheme. A lot of the traders said they
can't operate under the overnight ban and they are also considering the risk of
facing another bird flu outbreak within the next few years, he said. But, the
government will only approve the offer when 90 percent of the trade accepts it.
Another offer will not be tabled in the future before central slaughtering, Chow
added. A source said the government has improved the deal for retailers with an
increase of almost HK$100 million or over 20 percent to a total of HK$513
million. A source said the increase was justified. "If we terminate the trade's
tools for living out of public health concerns, we must be more reasonable in
our offer," the source said, adding that no further increase is expected after
any future negotiations. Retailers who choose to resume operation on July 2 must
operate under an overnight ban on keeping live chickens in the stalls between
8pm and 5am. Violators are subject to a penalty of HK$50,000 and six months'
imprisonment. The amendments of the law will be gazetted this week and will be
tabled at the Legislative Council for negative vetting. Chow believes the
overnight ban will be agreed by lawmakers out of public health concerns. "H5N1
is not political, we must be scientific in dealing with it," he said. Chow said
the 400,000 chickens which have been held in farms due to the ban and can no
longer be sold because they are too old will be compensated for at a rate of
HK$30 per bird. A source said the government fears the recent discovery of the
H5N1 virus in the chickens of four wet markets is not a problem of smuggling,
but a drop in chickens' immunity against the virus. 
No one at fault in sturgeon death says Ocean Park - Ocean
Park plans to release the four surviving Chinese sturgeons back into the main
tank of its aquarium in early July despite the death of a fifth fish bitten by a
barracuda. The park's executives, veterinarians and oceanologists insisted
yesterday the attack was an accident. The necropsy on the sturgeon indicated the
bite was not aggressive but a reflex action induced by contact between the fish.
"No one is at fault, and no one is getting fired," executive director of
zoological operations and education Suzanne Gendron said. She said it is the
first time in the world for both species to be kept in the same saltwater
environment and that the two species do co-exist in the South China Sea.
Director of the National Aquatic Wildlife Conservation Association Li Yanliang
said sturgeons should be able to get along with other fish, but barracudas may
have attacked the sturgeons because they were newcomers. Sturgeons are
separately kept in the Beijing Aquarium, but experts from the Ministry of
Agriculture said barracudas are not particularly fierce species and interpreted
the attack as an accident. Chinese sturgeons are an endangered species native to
China. Five were presented to the park last month and went on display at Ocean
Park's Atoll Reef main tank last Thursday. Gendron said the eight barracudas
have been with the park for almost 10 years and never showed any signs of
aggression.
Walter Kwok Ping-sheung,
the eldest brother at the heart of controversy surrounding property giant Sun
Hung Kai Properties (0016), has finally broken his silence over the issues
dogging the company. In his first personal appearance since being ousted as SHKP
chairman and chief executive on May 28, Kwok made an effort to mend his
relationship with his family by putting recent events down to misunderstandings.
"The company has grown bigger and numbers of investments are on the rise. It's
normal to have more conflicts among the management," he was reported as saying
yesterday. His ties with matriarch Kwong Siu-hing and with his two brothers
remain strong, and more communication could have solved the problem, he said. "I
maintain a good relationship with my mother and we are having lunch regularly
once or twice a week. "Most of the time she stands by my decisions, on the IFC
[International Finance Center] and ICC [International Commerce Center]
developments for example," the eldest Kwok said. He dismissed rumors that
disagreements with his younger brothers, Thomas Kwok Ping-kwong and Raymond Kwok
Ping- luen, stemmed from the influence of his confidante Ida Tong. "I have been
the chairman for 18 years, any influence would not happen just now. She [Tong]
is a good friend of mine for more than 20 years. We, among a few other friends,
always meet together to discuss economic and political issues," he said. Kwok
also said he has no hard feelings over his new role as an SHKP independent
non-executive director. "I will adjust to it and keep on monitoring the
operations of the company as a non-executive director," he said. Kwok added that
he has no intention of dividing the family wealth: "I will not sell my stake [in
the company] or start up my own business, it's totally a misunderstanding." SHKP
was founded by his late father under the SHKP Foundation, and Kwok said he has
never thought of changing the setup.
Lieutenant General Su
Shiliang (L), commander of China's South Sea Fleet, gestures while welcoming
Major-Gen. Shinichi Tokumaru (R) of the Japanese Maritime Self-Defense Force
after the Japanese Maritime Self-Defense Force destroyer arrived in Zhangjiang,
south China's Guangdong Province on Tuesday, June 24, 2008.
Lawyers warned
over dirty money - Lawyers in Hong Kong have been told to step up the checks
they make on potential clients amid growing concern over the twin threats of
money laundering and terrorist financing.
Chicken ban to
be lifted - Live chicken will be for sale again on July 2 if vendors agree not
to keep the poultry alive overnight.
Regulator says to balance stocks supply
and demand for stability - Shang Fulin, chairman of the China Securities
Regulatory Commission (CSRC), on Sunday vowed to deepen reform and boost
regulation to promote a stable and healthy development of the capital market.
Secretary for Transport and Housing Eva Cheng Yu-wah on Wednesday said the
government had not reached a decision on scrapping the duty on diesel fuel. Ms
Cheng was speaking after meeting representatives from transport sectors and some
lawmakers from the Democratic Alliance for the Betterment and Progress of Hong
Kong (DAB) party. DAB vice-chairman Lau Kong-wah quoted her as saying the
government might be prepared to phase out Hong Kong’s diesel tax. He made the
comments after a meeting her on Wednesday morning. But Ms Cheng later issued a
statement which clarified the government’s position. It said the government was
still considering the feasibility of cutting the diesel duty. This was because
the government needed to hear more opinions from different sectors, she
explained. Ms Cheng said they would review duties on Euro-V diesel as soon as
possible. But she said duties would be maintained on less environmentally
friendly and low-sulphur diesel. This is more widely used by lorry drivers. The
transport chief said reducing or eliminating the diesel tax was seen as an
important way to help commercial drivers cope with rising fuel costs. After a
meeting with Ms Cheng and other lawmakers on Wednesday morning, Mr Lau had told
local media: “From our conversation, I believe Ms Cheng said the government
could exempt all diesel taxes.” Mr Lau said it was unlikely the government would
scrap Hong Kong’s petrol tax. He said eliminating the diesel tax made sense. “We
hope the measure could help reduce operating costs of mini bus drivers and other
commercial drivers, as well as to reducing their pressure to raise fares,” he
said. Meanwhile, over 100 representatives from the transport sector, including
minibus, taxi and other drivers protested outside the Legislative Council on
Wednesday morning. On Wednesday, Legco also planned to debate the scrapping of
taxes of Euro-V diesel and unleaded petrol by 50 per cent. This is to help
reduce inflationary pressure in the wake of soaring oil prices. Representatives
from the transport sector have said halving the taxes was not enough. They are
demanding the government ends all diesel taxes and introduces an exemption on
diesel station land premiums. Chiang Chi-wai, a spokesman for the Fuel Price
Concern Transportation Joint Conference, said all diesel taxes should be
exempted. “We hope the government can exempt all diesel tax, so as to reduce the
burden of commercial drivers and improve their livelihood,” Mr Chiang added.
Chinese Vice Premier Wang Qishan
(L) and US Treasury Secretary Henry Paulson (R) shake hands after opening
remarks at the start of cabinet-level meetings at the Strategic Economic
Dialogue at the US Naval Academy in Annapolis, Maryland, June 17, 2008. China
and the US have made substantial progress in resolving contentious issues such
as currency and trade deficit, Vice-Premier Wang Qishan said at the opening of
the fourth Strategic Economic Dialogue (SED) Tuesday. The two countries should
adopt a patient approach and avoid "complicating and politicizing economic
issues", he said. "Our cooperation is an irreversible and unstoppable current.
China needs the US, and the US needs China." The meeting is being held on the US
Naval Academy's campus in Annapolis, Maryland. Wang and US Treasury Secretary
Henry Paulson are co-chairing the SED as special representatives of President Hu
Jintao and US President George W. Bush. The two-day talks are expected to focus
on the challenges the two countries face because of rising energy and food
prices. An agreement on energy and the environment is expected to be the major
achievement of the dialogue. The US and China must increase cooperation on
energy because of the increase in demand for and record high prices of oil,
Paulson said. "As the two largest net importers of oil, China and the US face
similar challenges as the demand for energy increases." This is the fourth time
Paulson is heading a delegation of US cabinet officials at such a conference.
The Chinese team is led by Wang, who took over after Wu Yi retired earlier this
year. China's high-profile delegation at the talks includes the ministers of
finance, environment and commerce, Xie Xuren, Zhou Shengxian and Chen Deming,
and central bank governor Zhou Xiaochuan. And the large US delegation consists
of the secretaries of commerce, labor, and health and human services, Carlos
Gutierrez, Elaine Chao and Michael Leavitt. Hoping the next US administration
would continue the dialogue, Paulson said the SED has produced a lot of results.
The two countries should continue the dialogue at least for the sake of the
global economy. "The US and China don't always agree on economic issues.
Sometimes we may disagree quite strongly but we keep talking." Major business
groups such as the National Association of Manufacturers, the US Chamber of
Commerce and the Financial Services Forum believe the high-level talks should
continue because they will benefit both the countries.
China could see the fifth consecutive
bumper harvest of summer grain for the first time since the founding of the new
China.
Rush to fix dams
as floods engulf 9,000 sq miles - Hundreds of police and rescue officials have
been posted to shore up dams threatening to burst under torrential rain that has
already flooded 9,000 square miles of crops and homes.
Hong Kong heartthrob Tony Leung
and his longtime partner Carina Lau have decided to end their lengthy courtship
with a star-studded wedding slated for October, Chinese media reported Monday.
Lau, an established entertainer like her boyfriend, began sending out
invitations on Friday, Web site Sohu.com reports. Stars on the couple's guest
list include Faye Wong and Na Ying. The wedding will be held in Hong Kong in
October, with the date and the venue yet to be announced. Leung, 45, and Lau,
42, have been together for nearly 20 years, Sohu reports. Yet both have
expressed their longing for marriage in recent interviews. Leung, for example,
was quoted in an Associated Press report in February as saying, "I'm in my
forties - I can't wait until I'm 60."
Times Square is
being sued by the government to recover what could run into millions in
unauthorized profits it has raked in from charging rent for the use of public
space. The landmark lawsuit which backdates the claim to 1993 with interest may
have significant implications for other property owners if it is successful. In
a High Court writ filed against Times Square Ltd and its parent company Wharf
Group, the Secretary for Justice seeks to recover rental fees of as much as
HK$124,000 a day for use of the Causeway Bay piazza. Times Square, which has
been the target of a vociferous campaign to free up the citys public space, says
it will contest the action. Times Square understands that there are differences
in legal interpretation of the related terms and clauses in the deed of
dedication concerning charges to third parties for holding exhibitions and
events at the ground floor piazza, a company spokeswoman said. We believe that
we have not charged more than what is allowed in the deed. We think the case
will ultimately provide for guidance on the proper interpretation of the
relevant clauses in the deed of dedication concerned. The writ says that a
February 28 letter to the Buildings Department from Times Square Ltd reveals the
company charged between HK$28,000 and HK$40,000 per day from Monday to Thursday,
or HK$100,000 to HK$124,000 per day on Fridays, weekends and public holidays to
rent parts of the piazza. The rates are said to be in violation of the deed of
dedication which stipulates the mall operator is only entitled to recover
utility costs. The mall operator admits in its letter the rates may well exceed
[its] facilitation expenses. Last month Secretary for Development Carrie Cheng
Yuet-ngor said the government would take action against the collection of rental
fees for piazza exhibitors. And while there would be a review of the overall
policy, officials said it is still up to the owner whether or not activities may
be held or banners displayed in the open space. The deed of dedication requires
public open spaces to be used for pedestrian passage and passive recreation.
Times Square general manager Leng Yen- thean has claimed overzealous security
guards were responsible for preventing passersby from sitting or loitering. She
also admitted the decision to lease a section of the public space to Starbucks
was a staff error.
Appointees' saga
'will be seen as teething trouble' - Suffrage no precondition for launch of new
team: Henry Tang - Universal suffrage for chief executive should not have been a
precondition for introducing the political appointment system, Chief Secretary
Henry Tang Ying-yen said yesterday. Mr Tang said the controversy over the
appointments, which he admitted the government had not anticipated, would be
seen as just a "small episode" or a "teething problem" when people looked back
at the city's political development. Speaking to Chinese University School of
Communication alumni at a dinner four weeks after the appointment of two tiers
of appointees, he said that the expansion of the ministerial system was a
necessary step as Hong Kong became increasingly politicised. "Some people oppose
the political appointment system, with the major argument being that the chief
executive is not selected through universal suffrage and is not empowered by the
people, therefore undersecretaries and political assistants appointed by him
lack public recognition ... I disagree." Mr Tang said. "Now, we already have a
clear timetable with 2017 as the year for universal suffrage ... the expansion
of the political appointment system today is to gradually introduce more and
more officials to handle political work so that they can collaborate with a
professional team of civil servants, and the political neutrality of civil
servants can be maintained. "The experience has told us there are some matters
which our community can further discuss, for example, how to handle the issues
of allegiance and commitment while maintaining a diverse and international city?
How to respect the public's right to know while protecting privacy at an
appropriate level?" Summing up his six years working at the ministerial level,
Mr Tang said he had learned to appreciate that mistakes by individual officials
would do a lot of damage to the government's credibility. What had moved him
most was the team of professional civil servants who had given him great
support, he said. Lee Wing-tat, of the Democratic Party, said he was mystified
how Mr Tang could consider the controversy a "small episode" in constitutional
reform, saying the appointees' lack of a mandate was a core problem in Hong
Kong's political system. "Somebody might even call Tung Chee-wah's resignation a
small episode, but he was forced to leave because he lacked a mandate," Mr Lee
said. "The reason why the public is so angry with the government over the
political appointees controversy is because some unelected people have filled
top positions with taxpayers' money." The Civic Party's Ronny Tong Ka-wah said
Mr Tang was wrong in believing that a pool of political talent could be created
with the appointment system. The appointees' lack of long-term political
commitment, as shown by their painful decisions when pressured to relinquish
their foreign citizenship, really tells us this system cannot raise people's
interest in serving the public through taking part in elections,' he said. DAB
chairman Tam Yiu-chung said: "Even if this is a small episode, the government
should review the experience and learn its lesson."
Rena Amudu
Kelimu performs a traditional Xinjiang ethnic dance Tuesday while carrying the
Beijing Olympic torch in Urumqi, capital of the Xinjiang Uygur autonomous
region.
Chinese Vice Premier Wang Qishan (L)
speaks during a meeting of the Sino-US Strategic Economic Dialogue Tuesday in
Maryland.
A warning of a terror attack during the Olympic events in Hong Kong from the
citys immigration chief was played down by the government last night. The
terrorist threat level remains moderate, a government spokesman said, but police
will maintain close liaison with mainland authorities and overseas law
enforcement agencies to ensure timely exchanges of intelligence. The governments
response followed comments earlier yesterday by Director of Immigration Simon
Peh Yun-lu that the department has received intelligence the equestrian events
are under threat of attack. Speaking at his first media reception since assuming
office in April, Peh said intelligence said some people are plotting to sabotage
the Olympic Games, including the equestrian events. Of course this kind of
intelligence will continually change right now the main individuals who might
sabotage the event are terrorists, Peh added, without giving any specifics on
the terrorists. If we know some are plotting to sabotage the Games, or to damage
the solemnity of the events or disrupt the smooth processing of the events, we
will ban their entrance. Lawmaker James To Kun-sun, deputy chairman of the
Legislative Councils security panel, said it was unusual for a director of
immigration to reveal intelligence on a potential threat of terrorist action. He
said it was possible Peh was laying the groundwork with which to ban peaceful
demonstrations during the Games or to prevent people from entering the city. In
his briefing, Peh refused to be specific about the intelligence his department
had received. Asked whether the department will restrict people from Xinjiang or
Tibet, who have a history of fighting for independence from China, from visiting
Hong Kong, Peh said the department will not tag people based on their
geographical locations. He said the department will consider carefully the entry
of those with a history of disrupting the Olympic torch relay in May. The
department estimates 42,000 visitors will arrive in Hong Kong to see the
equestrian events as well as 3,000 athletes. In addition to maintaining close
liaison with mainland authorities, police will step up security measures at
strategic locations, in particular the airport, the public transport system and
other critical infrastructures. Sports Federation and Olympic Committee of Hong
Kong, China president Timothy Fok Tsun-ting said last night he had not received
any news related to the perceived threat. The Immigration Department was highly
criticized on April 26 when it denied the entry of Danish sculptor Jens
Galschiot. He is a member of the group Color Orange which has voiced its concern
at alleged human rights violations in the mainland. 
The mother of the late Cantopop diva Anita Mui Yim-fong yesterday lost her legal
battle to wrest control of her daughters estimated HK$100 million estate. The
High Court said Muis will, in which she left the bulk of her estate to Karen
Trust, with her mother getting HK$70,000 a month for the rest of her life, was
valid. Tam Mei-kam, 84, had argued her daughter was dying of cervical cancer at
the time and was mentally unfit to instruct and execute the will which she
signed on December 3, 2003. Mui died 27 days later aged 40. Tam said she would
fight the decision all the way to the Court of Final Appeal and would donate the
entire estate to charity if successful. In the 104-page written judgment, High
Court Judge Andrew Cheung Kui- nung said he found the three witnesses, who
testified Mui was of sound mind when she signed the will, honest, credible and
reliable. They were her principal doctor Peter Teo Man-lung, Muis godmother of
20 years Sheila Ho and HSBCs private trust director Doris Lau. The judge said
Teo, who was present when the contents of the documents were explained to Mui,
and who had spent a substantial amount of time talking to Mui during her
hospital stay, was in a particularly good position to say whether Muis mental
condition was normal. The judge dismissed the suggestion put forward by Tam that
Mui was suffering from a form of hepatic pre- coma, a brain disorder associated
with liver disease on December 3. What is plain to me from the evidence is that
the deceased only wanted to give her mother just sufficient money to maintain
her then living standard, and nothing else, the judge said. The rationale is
quite plain on the facts she did not trust her mother on managing money. The
judge said Mui was worried that if she left her mother everything in one go, she
would squander it all, with the help of her eldest brother, Peter Mui Kai-ming.
Besides her mothers living expenses, Mui set aside up to HK$400,000 as
university expenses for each of her brothers four children. Her properties in
Happy Valley and London were left to retired designer Eddie Lau Kai. The judge
ruled the costs of HSBC, the New Horizon Buddhist Association, a repository
under the Karen Trust, and Eddie Lau Kai be paid out of Muis estate. 
Days of heavy rain have driven up the
water level of last week's major flood, threatening thousands in south China's
Guangxi Zhuang Autonomous Region.
Chinese travelers pose for a photo before departure for the United States at
Shanghai Pudong international airport in Shanghai, east China, June 17, 2008.
About 200 Chinese travelers set out from airports in Beijing, Shanghai and Hong
Kong on Tuesday afternoon, becoming the first Chinese vacationers to take part
in tour groups to the United States. 
Travelers
pose for a group photo before they set out from Beijing for the United States at
the Terminal 3 of the Beijing Capital International Airport June 17, 2008.
Chinese shares fall 2.76% in 10th consecutive losing day - Chinese shares sank
to a 15-month low on Tuesday in very low volume, amid weak investor confidence.
The benchmark Shanghai Composite Index fell 2.76 percent to 2,794.75, its 10th
loss in a row. The Shenzhen Component Index fared worse, sinking 4.03 percent,
or 395.77 points, to 9,429.50.
Appointees' jobs
stepping stones, says chief's departing assistant - All political appointments
are transitional, and the final road to politics is through the ballot box, says
a departing aide to the chief executive now eyeing electoral politics. GaryChan
Hak-kan, 32, was speaking as he packed up after 2-1/2 years as a special
assistant to Donald Tsang Yam-kuen. The first person to carry the banner of the
Democratic Alliance for the Betterment and Progress of Hong Kong (DAB) into
government, Mr Chan said his position had been to act as a guinea pig for the
appointment of undersecretaries and political assistants, as the ultimate goal
was training political talent. "Each of these appointees should have the thought
that political appointments are not permanent jobs. They are stepping stones.
The next step is to go for election," said Mr Chan, who is "actively
considering" running in September's Legislative Council election. The young
politician, who has terminated his appointment contract with the government, due
to expire in June 2012, said there had been a mutual understanding between
himself and Mr Tsang from the beginning that he would leave prematurely. Mr
Chan, who declined to comment on the row over salaries and citizenship of the
new political appointees, considers his days working beside the chief executive
to be an advantage for his candidacy. "I played the game and I know where the
cutting edge is," he said. Mr Chan, who earned about HK$80,000 a month, said he
had contributed ideas to the Chief Executive's Office on various policies,
including district administration as well as a goods and services tax. But he
had not acted as an "office messenger responsible for photocopying documents" as
some teasingly accused him. The experience would be an asset when he switched
his role to monitoring the government one day in the legislature, he said. "Like
a soccer player turned commentator, I will do a better job than other
commentators who have not played on the pitch." He estimated he had a high
chance of winning in September, even though he was likely to rank second on the
DAB ticket in New Territories East led by party vice-chairman Lau Kong-wah. Mr
Chan's major duties at the Chief Executive's Office included liaising with
political parties, the media, interest groups and deputies to the National
People's Congress. Although carrying a party label, Mr Chan considered himself a
civil servant while working at Government House. He said he had not really been
an important bridge between his party and the administration, but was delighted
his appointment had set a precedent for other political aspirants.
Victor Fung becomes
new ICC chairman - Businessman Victor Kwok-king Fung was elected as the new
chairman of the International Chamber of Commerce, Hong Kong, an ICC spokesman
said on Monday. Mr Fung was elected at a meeting of ICC’s World Council on
Friday, which brought together over 130 of the ICC’s members from 57 countries.
Mr Fung, 63, who is chairman of the Li & Fung (SEHK: 0494) group, will be the
first ICC chairman from Hong Kong and will serve as ICC chairman for two years.
He is also chairman of the Greater Pearl River Delta Business Council, the Hong
Kong University Council and the Hong Kong-Japan Business Co-operation Committee.
“Mr Fung will assume the role of ICC Chairman on July 1, after having served for
18 months as the ICC’s vice chair,” the spokesman said. Mr Fung has written and
spoken widely on international trade matters and is a strong advocate of a
multilateral trading system. He has served as chairman of the Hong Kong Trade
Development Council, the Hong Kong representative of the Apec Business Advisory
Council, and on the informal business advisory body to the World Trade
Organization. He has also been chairman of the Hong Kong Airport Authority, but
stepped down from this position last month. Born in Hong Kong, Mr Fung has
degrees in electrical engineering from the Massachusetts Institute of Technology
and a doctorate in business economics from Harvard University. He was a
professor at the Harvard Business School for four years before returning to Hong
Kong in 1976. "My position might have been a selling point to attract more young
people to join the DAB," he said.
Saudi
Arabian companies are exploring the possibility of forming an organisation of
senior business leaders with Hong Kong to foster closer economic ties and
promote trade and investment between the two economies, Riyadh Chamber of
Commerce and Industry chairman Abdulrahman Ali al-Jeraisy said. The proposed
Saudi-Hong Kong Business Council would follow similar tie-ups with other major
Asian markets, including Japan, the mainland and Malaysia. During Chief
Executive Donald Tsang Yam-kuen's first official visit to the Middle East in
January, Mr Jeraisy met Mr Tsang when he led a business delegation to Saudi
Arabia. "I think a Saudi-Hong Kong Business Council is a must and is badly
needed," Mr Jeraisy said. "I believe it will help in the relationship between
the two economies." Saudi Arabia's consul general in Hong Kong, Alaudeen
Alaskary, said the consulate would endorse the new business council if it was
approved. A memorandum of understanding was needed to set up the council
formally. Mr Alaskary met Mr Jeraisy in Hong Kong two weeks ago. There are more
than 30 such business councils under the Riyadh-based Council of Saudi Chambers
of Commerce and Industry, of which Mr Jeraisy is vice-chairman. He also chairs
the Saudi-Japan and Saudi-Chinese business councils. Each business council works
to increase trade and investment between Saudi Arabia and different countries.
Members are drawn from both sides. Companies in Saudi Arabia were keen to do
business with Hong Kong, not only to exploit opportunities on the mainland, but
locally as well, Mr Jeraisy said. Likewise, there were opportunities for Hong
Kong companies to take part in Saudi Arabia's education, health care,
electricity generation and distribution, water desalination and transport
sectors. Given Saudi Arabia's considerable experience in water desalination, Mr
Jeraisy said he believed there were opportunities for co-operation with Hong
Kong. The kingdom's desalination plants provide about a quarter of the world's
total output. In Hong Kong, desalination could provide the largest new supply of
fresh water. It is estimated the city will need 1.3 billion cubic metres by
2030, when the population reaches about 8.4 million. The process is based on
reverse osmosis and involves pumping sea water at high pressure through a
semi-permeable membrane to separate the salt. Despite the steep energy
requirements, desalination is becoming popular in regions such as Australia and
the Middle East as a way to meet freshwater needs.
Kungfu star Jackie Chan waves at
the opening ceremony of Shanghai International Film Festival on Saturday night,
June 14, 2008. The Shanghai International Film Festival, which extends until
June 22, begins with a grand opening ceremony Saturday night, with proceeds to
help victims of the Sichuan earthquake.
Actress Zhang Ziyi arrives at the
opening ceremony of Shanghai International Film Festival on Saturday night, June
14, 2008.
Director Wong Kar-Wai (R) poses on
the red carpet at the opening ceremony of Shanghai International Film Festival
on Saturday night, June 14, 2008.
Actress Zhou Xun arrives at the
opening ceremony of Shanghai International Film Festival on Saturday night, June
14, 2008. 
Zhang Guoli and Jiang Wenli,
the Magnolia best actor and actress in a TV series, look pleased at the closing
ceremony of the 14th Shanghai Television Festival on Friday night. They won for
their performances as a couple in "Golden Wedding."
A
memorial ceremony is held in Chengdu on Monday for five helicopter crew members
killed when their aircraft crashed on a quake relief mission on May 31. Picture
taken June 16, 2008.
Parents revolt on ESF fee
hikes - Parents of English Schools Foundation students have launched a signature
campaign against planned tuition fee rises. More than 300 signatures have been
collected since an online campaign began a month ago, according to Hong Kong
University associate engineering professor Albert T Yeung, whose two children
have been attending ESF schools for 10 years. Yeung fears a hike in fees could
result in some parents sending their children overseas, especially as it would
be the third rise in as many years. Tuition fees are set to increase, pending
Education Bureau approval, by 7 percent to HK$58,100 a year at primary schools
and 5 percent to HK$89,250 at the secondary level. According to Yeung, the ESF
increased fees for primary schools by 5.4 percent last year to HK$54,300 and by
2.9 percent to HK$85,000 for secondary students. He said the year before that,
fees went up by 8.9 percent and 5.1 percent, respectively. In response, the
foundation said it had frozen fees for six years before the 2005/2006 school
year. The petitions would be sent to both the foundation and the bureau. Many
students come from middle- class families which are already hit hard by
inflation. Now the school is putting a further financial burden on them, Yeung
said. The ESF has more than HK$558 million in reserve and capital funds, he
said, so there is no justification for further increases. He also warned some
professionals might leave Hong Kong with their families if the bureau continues
to allow hefty tuition hikes at international schools. An expat parent with a
16-year-old daughter attending an ESF school is outraged by the increase. The
ESF never listens to the parents. However, I have no choice because of the
language of instruction and the location of the school. At local schools, the
standards of English language are extremely poor and students only speak
Cantonese, the mother said. Another parent, a local, said she would be forced to
ask her two children to cut their extra-curricular activities to save money when
the increase comes into effect. Instead of having both dancing and swimming
classes, my daughter will have to choose only one activity. Instead of going to
New Zealand for the summer vacation, we will now go to Japan, said the parent, a
senior civil servant. An ESF spokesman said the foundation is aware of the anger
among parents but that the increase is necessary to cover increases in the
salaries of both teaching and support staff, as well as to build a reserve for
the foundations further expansion. The Standard reported last month that five
leading international schools want to increase tuition fees by between 3.2
percent and 9.9 percent from the next academic year. According to the Education
Bureau, Hong Kong International School, Singapore International School, the
Australian International School, the Chinese International School and Yiu Chung
International School have applied to increase fees with at least three more
intending to follow suit.
Pay the cash or
else, Tien warns Chong - Hong Kong Tourism Board chairman James Tien Pei-chun
has issued a final warning to former executive director Clara Chong Ming-wah to
return about HK$140,000 in health-care benefits she was not entitled to within
two weeks or face legal action.
Quake-battered Sichuan Province
reopened 13 cities and prefectures to tourists on Saturday in a move to revive
its once-booming travel industry. The cities are Zigong, Panzhihua, Luzhou,
Suining, Neijiang, Leshan, Nanchong, Yibin, Guang'an, Dazhou, Meishan, Ziyang
and Liangshan, according to the provincial tourism bureau. "Among the world
heritage sites, Dujiangyan-Qingcheng Mountain and the Wolong National Natural
Reserve were just partly damaged. The Jiuzhaigou and Huanglong scenic spots,
Ermei Mountain and the Leshan Giant Buddha suffered no damage in the
earthquake," said Zhang Gu, the bureau head. Of more than 4,000 scenic areas in
Sichuan, 568 were damaged in the earthquake. Losses have been put at 27.84
billion yuan (4.03 billion U.S. dollars), according to the bureau. The bureau
expected tourism industry in the unaffected areas to show a 20-percent increase
in revenues by the end of this year. Rural tourism was expected to recover next
year. The whole industry, including disaster areas, was expected to fully
recover in about 2010, Zhang said. The worst-hit places, including Beichuan
County, Tangjiashan, and Hanwang Town in Mianzhu City, were expected to be built
into world-class earthquake museums in three years, he said. Tourism revenue in
Sichuan was 121.7 billion yuan in 2007, accounting for 11.6 percent of the
province's gross domestic product. More than 400,000 people are working in the
industry.
Flooded houses are seen at Luzhai Town
in Luzhai County, southwest China's Guangxi Zhuang Autonomous Region, June 13,
2008. Flood caused by heavy rains in the county has left many buildings
waterlogged. A section of the Xijiang River in south China's Guangxi Zhuang
Autonomous Region was about to burst its embankments following days of heavy
rain, threatening tens of thousands of people, local authorities said Sunday.
Rising water and strong scouring had opened a 40-meter crack as of 8 a.m. Sunday
on the Dayaochong embankment in Changzhou Town, said Zhang Jinshen, a Changzhou
District official in charge of flood control. 
A customer
check a capsicum at a vegetable market in Shanghai. China recorded 870.4 billion
yuan ($124.3 billion) in retail sales in May, a growth of 21.6 percent on the
same month of last year, the National Bureau of Statistics said on Friday.
Private equity
investors in mainland property projects should brace themselves for calls for
additional equity and sharply lower returns as funding sources dry up, warn
analysts and industry players. Once the white knights of cash-strapped mainland
developers, the funds are now wrestling with the challenge of tightened lending
policies, stricter enforcement of the "four certificates" policy, accumulated
effects over the tightening policies on property buying by foreigners, and a
global credit crunch that will radically alter their financing plans, they say.
"Funds that bought development sites last year will now find it difficult under
the new lending environment to borrow yuan loans to finish their projects," said
Albert Lau Tak-yeung, a managing director at Savills in Shanghai. Ren Rong,
chief executive of Harvest Capital Partners, a private equity real estate fund
controlled by state conglomerate China Resources (SEHK: 0291) Holdings, said
registered share capital would now have to be much larger than before, which
means investment returns would be significantly affected. Typically highly
leveraged, some international funds had reckoned on raising as much as 95 to 99
per cent of projected total investment costs when they bought into development
projects last year - a strategy designed to reduce the amount of equity in the
investments and boost returns to shareholders. But those plans were now in
jeopardy, because of the changed lending environment. As a result the private
investors face the prospect of calls on increasing their equity share to make up
possible shortfalls in debt funding on the projects, according to analysts. "We
have seen a change of policy in China in terms of property lending by domestic
banks, including no lending for land banks, no lending for residential projects
unless the so-called four certificates are in place, and no foreign lending into
the China real estate market," Mr Ren said. The four certificates are: a Land
Use Certificate, a Planning Certificate for Land to be Used for Construction, a
Planning Certificate for Construction Projects, and a Construction Certificate.
Market talk was that some of the private investment funds were already
responding to the looming challenge of raising funds to complete proposed
developments by looking to offload their investments. He declined to identify
the funds involved. Mr Ren said that the new lending environment had put a lot
of pressure on foreign investors in the mainland property market. "Registered
share capital will now have to be much larger than before, which means
investment returns will be significantly affected." Drawn to the mainland market
over the past two years by the soaring rate of growth in property prices,
international private equity funds initially invested heavily in completed en
bloc projects. But towards the end of last year the funds began investing in
development projects, bailing out mainland developers who themselves had run
into funding problems and needed financial partners. Now, because of the changed
lending environment, access to construction loans would be curtailed and the
funds might find it impossible to meet their borrowing targets, Mr Lau said.
Apart from the stricter enforcement of the four certificates, other measures
that will limit access to yuan funding by foreign investors include a
complicated approval procedure to remit foreign capital into the mainland. The
State Administration of Foreign Exchange on July 10 last year issued a circular
ordering a halt to foreign debt registration and the conversion of such debt
into yuan for foreign-funded property companies set up after June 1. According
to another circular issued in May last year, foreign exchange registration and
settlement will be prohibited for foreign-funded property companies that have
not been approved for filing with the Ministry of Commerce. The procedure takes
time. Meanwhile, the investors must also wrestle with tougher credit markets and
higher borrowing costs offshore as a result of risk-averse loan policies
introduced by global bankers in the wake of the subprime credit crisis, said
Lina Wong, managing director of Colliers International's East China region.
Goodwin Gaw, chairman of Hong Kong-based investment fund Gateway Capital, said
developers that built their projects on assumptions of heavy borrowing would
face challenges in the new lending environment. "Due to lack of liquidity
globally, the environment will favour firms with cash as we can demand higher
returns from some of the higher leveraged sellers due to lower leverage
available for projects." But Mr Ren said that the company with strong back-up
from the state-owned enterprises would benefit from the current environment.
"The mainland banks have been quite supportive of Harvest Capital given our
background as being sponsored by China Resources Holdings." Private investors
face calls to boost their equity share in mainland property projects to make up
for possible shortfalls in debt funding.
8 Held in fraud bust - A company director, three former senior staff and four
others from two listed firms have been arrested for their alleged role in a
HK$3.55 billion false accounting racket involving 18 banks. Detectives from the
Commercial Crime Bureau yesterday raided the headquarters of EganaGoldpfeil
(Holdings) (0048) in an industrial building on Castle Peak Road, Cheung Sha Wan.
EganaGoldpfeil employees could not be reached for comment last night.
Investigators have so far refused to formally identify either of the two firms.
But they did say the investigation led them to believe that last year some
senior staff at the firms had falsified accounting records by creating
fictitious trading businesses. Officers also believe that bogus investment
schemes were also created to deceive the shareholders as well as 18 banks for
loans of HK$1 billion. These trading receivables and investments totalling
HK$2.55 billion were subsequently written off. The arrests of the eight aged
between 47 and 62 and including three women came as the police raided 13
locations across the city. EganaGoldpfeil makes and distributes jewelry,
timepieces, leather products and consumer electronics. Last July, the
Independent Commission Against Corruption charged then-EganaGoldpfeil executive
director David Wong Wai-kwong with fraud over his alleged involvement in an
acquisition by developer Grand Field (0115) of a gas pipeline business in
Chongqing in 2002. EganaGoldpfeil said it was not connected to those charges.
Wong then resigned his non- executive director position at Tonic Industries
Holdings (0978), which makes audiovisual equipment. EganaGoldpfeil was a major
shareholder in Tonic but announced plans to sell its 20.4 percent stake in the
company immediately after the controversy. After Wong was charged, corporate-
governance activist David Webb sparked a massive selloff in EganaGoldpfeil
shares in August when he posted an article on his website claiming extensive
connections between EganaGoldpfeil and broker Upbest Group (0335), which also
had some executives charged by the ICAC in connection with the Grand Field deal.
Webb also questioned EganaGoldpfeil's accounting policies, which he said
flattered its earnings and, for at least two years, saved it from reporting net
losses. After the massive selloff, EganaGoldpfeil announced that its
media-friendly German chairman, Hans-Joerg Seeberger, was "under medication,"
could not discharge his duties and was living in Spain indefinitely." Seeberger
died in Spain of natural causes on October 22 - 2 months later. Yesterday's
arrests come less than five months after the Securities and Futures Commission
brought charges against five people for trading in shares of Egana Jewellery &
Pearls using insider information. These charges - the first brought by the SFC
since insider trading was made a criminal offense in 2003 - alleged that a
former BNP Paribas Peregrine Capital investment banker and four others used
insider information to trade in shares of then-listed Egana Jewellery, about to
be privatized by EganaGoldpfeil. Shares in EganaGoldpfeil have been suspended
from trading since September 12.
Vendors may be barred from keeping
chickens overnight at wet markets, according to the government's latest proposal
to deal with the bird flu threat. Officials will meet with industry
representatives today to discuss the proposal, a government source said. It is
seen as the most "practical" solution before the introduction of a central
abattoir in 2011 or 2012. The plan will make the wet market cleanup practice,
currently on the 11th and 25th of each month, a daily routine and will require
all unsold chickens at the end of each trading day to be slaughtered. "It can
prevent the H5N1 virus from incubating in chickens, which usually takes three to
five days," the source said, adding that Macau and Shenzhen are already taking
similar action. Word of the plan came as more than 5,000 chickens were culled
following the discovery of the H5N1 virus in a number of wet markets. Currently,
about 20,000 chickens arrive daily from the mainland and about 10,000 from local
farms. "We don't think the measure is draconian. The industry also has the
responsibility [to protect public health]," the source said. The possibility of
a mandatory slaughter of all unsold poultry was first brought up yesterday by
Secretary for Food and Health York Chow Yat-ngok, who said it may require
changes in legislation. Other proposals include reintroducing the voluntary
surrender scheme for traders to give up licenses. The government stopped issuing
licenses to wet market stalls and fresh food provision shops in August 2003 as a
first step to control the live poultry industry. The ultimate solution in the
bird flu fight is the building of a central abattoir. The source said a steering
committee has been set up to speed up the building of the abattoir by 2011 or
2012. Work still to be done includes completing an environmental impact
assessment, working out tender terms and finance arrangements, consulting the
district council and getting Executive Council approval. The government has
arrived at an estimate of how much it will cost to compensate the industry if
Hong Kong's live poultry business was to close down but has refused to divulge
details. "We are not afraid of the industry as public health is more important.
For the sake of public health we can close down their business," the source
said. If the 2001 compensation plan is used as a measure, the bill will be about
HK$32 million. The source rejected criticism the government had been ineffective
in tracking down smuggled chickens and in preventing bird flu outbreaks in 1997,
2001, 2002 and 2003. The government is still tracing the source of the latest
H5N1 outbreak. 
Park human cannonball has tunnel vision on track - Ocean Park's expansion
program received a psychological boost with a "breakthrough" in the
1.2-kilometer tunnel that will link its lowland and headland to redefine the
movement of five million visitors a year. Conducting the symbolic breakthrough
yesterday with typical showmanship, park chairman Allan Zeman was blasted
through a mock wall by cannon in front of Financial Secretary John Tsang Chun-wah,
Commissioner for Tourism Au King-chi, the park's directors and the media.
Requiring 70 tonnes of explosives and taking 193 days to build, the all- weather
tunnel will displace 73,608 cubic meters of granite, rising 110 meters to exit
at the park's headland. "With our HK$5.5 billion six-year master redevelopment
project stated to double the park's attractions from the current 35 to over 70,
we envisage an incremental rise in guest visitation as the new attractions
unfold between now and 2012 to 2013," Zeman said. The tunnel, due to open next
year, will house the Ocean Express attraction, a train journey set to immerse
riders in a multimedia and interactive environment, embracing marine, animal and
wildlife conservation themes for its three-minute duration. The tunnel will have
a capacity of 10,000 visitors an hour. The park's lowland attractions will
include Aqua City, housing an underwater restaurant and an aquarium four times
the size of the park's biggest marine viewing tank, along with bird of prey
shows and a Panda Cafe for visitors eager to grab a bite while viewing the
park's popular cuddly creatures. The expansion at the park's headland will
include a new Marine World inhabited by killer whales, a rainforest land with
stunts, rides and an aviary, Thrill Mountain with more games and rides and a
Polar Adventure area with an ice palace, polar bears and walruses. Alterations
to the park's proposed hotels to address Southern District Council's concern
over height have been completed and will be submitted to the government shortly,
said Zeman, adding that the construction of the three projects should be open to
tender by the end of the year. 
While Little Sheep Group (0968) closed flat at its offer price, A8 Digital Music
(0800) roared out of the gate on its trading debut yesterday with a 36 percent
jump. Shares of A8 closed at HK$2.58 against an offer price of HK$1.90. About
124 million shares changed hands for a turnover of HK$292 million. Little Sheep
ended flat at its offer price of HK$3.18. The mainland restaurant chain operator
opened at HK$2.90 and fluctuated between HK$2.88 and HK$3.40. About 223 million
shares were traded, translating to a turnover of HK$771 million. Following the
contrasting fortunes of these two listings, Chongqing Machinery and Electric
(2722) is tipped to make a lukewarm trading debut today. Meanwhile, casino mogul
Stanley Ho Hung-sun's Sociedade de Jogos de Macau has reportedly revived its
initial public offering shelved last January, while mainland developer Powerlong
Group has postponed the roadshow for its US$300 million (HK$2.34 billion) IPO.
Sources said SJM will meet investors from today to next Thursday but did not
disclose the listing schedule. Although Powerlong had delayed its roadshow
scheduled to start yesterday, a source stressed the IPO is still continuing.
Last week, Xtep International (1368), Pou Sheng International (3813) and Central
China Real Estate Group (0832) began trading on the local bourse and the three
plunged below their offer prices on the first day of trading. Pou Sheng slumped
14.4 percent, reporting the largest trading debut fall this year. Ahead of its
debut today, shares of Chongqing Machinery fell in the gray market yesterday,
down 0.77 percent from its offer price of HK$1.30 to end at HK$1.29. "The gray
market performance is neither good nor very bad. Whether Chongqing Machinery
will fall below the offer price [today], that depends on the market situation,"
said CASH Financial Services Group (0510) director Horace Kwan Pak-leung. 
China's hour of
tragedy, triumph - An old couple walk hand-in-hand at a makeshift shelter in
Mianzhu City, southwest China's Sichuan Province, May 25, 2008. From the moment
we arrived at Beijing's spectacular new airport on May 6, the pride of the
Chinese people as they prepared to host the Summer Olympics was evident. Six
days later, in the aftermath of the Chengdu earthquake, we witnessed an even
more impressive face of China. We were visiting the Panda Reserve Center in
Wolong, about three hours from Chengdu, as part of a World Wildlife Fund tour
when the 8.0 magnitude earthquake struck on May 12. The reserve is like a
typical zoo but with 500-m mountains towering on all sides. At 2:28 pm, in a
series of jolts that lasted about three minutes, boulders, trees and dirt came
tumbling down. The nearest of the pieces of uprooted nature landed about 18 m
from us. The center's director quickly summoned his staff and discussed how to
move our group to higher ground. A boulder the size of a small car blocked our
path out. The staff set up a ladder as a work-around; we had to crawl through
brush, climb the ladder and cross a footbridge to get back to the entrance. Rain
began to pour, but we were soon at the entrance, huddled under umbrellas. After
about half an hour, a young staffer carrying a baby panda appeared on the
footbridge. At first we thought the panda had escaped in the chaos. But soon a
steady stream of cubs, 13 in all, was coming across the bridge in the arms of
young handlers. These courageous young men and women had gone back into the
wreckage to rescue the national treasure. Meanwhile, other brave staffers drove
up the mountain to see whether the road to the nearby Wolong Hotel was passable.
When they returned, we boarded our bus and our driver, visibly shaking,
navigated the 4 km. Upon arrival, we learned that the hotel was damaged beyond
occupancy; the parking lot was deemed a safer place for us to stay while
awaiting rescue. As night fell, the hotel staff brought blankets to our bus.
Over the next three days we were joined in the lot by a busload of British
tourists, some 15 carloads of Chinese tourists and several hundred villagers
whose homes had been destroyed. There was no way to communicate with the outside
world. We learned through a radio report that the road out of Wolong had been
cut off by the earthquake, stranding us. This report placed us approximately 96
km from the earthquake's epicenter (it was only later that we learned we had, in
fact, been less than 10 km from the epicenter). At dawn the next day, we were
awakened by the sounds of clanging pots. Outside the bus, hotel workers were
cooking in a makeshift kitchen. The rice congee (basically a watery boiled rice)
they prepared was the diet of Chinese babies and "very healthy", our stalwart
tour guide, Frank Wang, assured us. It became our staple, sometimes supplemented
with pickled vegetables and small pieces of pork salvaged from the hotel's
refrigerators. The heavy rain lasted two days. When the sun finally broke
through, it raised our spirits, but it was not until the third morning that we
heard a helicopter. Minutes after it landed, our guide told us that we would be
flown out. We had five minutes to board, each being allowed a small bag. Smiling
young men in military uniform motioned for us to sit on the floor. After we took
off, they passed around soda and cookies, as if we were on a passenger airliner.
One of the young men, who looked all of about 18, asked, "How does your heart
feel?" At first we thought he was inquiring about our health, but he produced a
diary with a pen and asked us to jot down our feelings. Although we had been
rescued, the 45-minute ride to Chengdu was bittersweet. We flew over scenes of
indescribable destruction and suffering. All of the bridges that had carried us
up to the reserve were in ruins. Entire villages had been leveled. Tourists who
had left the reserve in a bus while we were still there were killed in the
earthquake. In eight weeks, the world's attention will once again focus on
China. We will watch the Summer Olympics with vivid recollections of the courage
and generosity of the Chinese people. Their kindness to us was unfailing, even
as their nation suffered this staggering tragedy. Elisabeth Liptak is executive
director of the Washington Literacy Council. Robert Litwak is director of
international security studies at the Woodrow Wilson Center The article first
appeared in The Washington Post.
Hong Kong filmmaker Johnnie To has donated almost every award he has won to a
local film archive. Industry observers say the gesture shows his indifference to
fame. A total of 36 awards of the internationally-acclaimed director and
producer will be permanently kept by the Hong Kong Film Archive, which is
dedicated to preserving and showcasing local film culture, Wen Wei Po reported
on Wednesday. According to the newspaper, the archive will hold a ceremony on
Friday to officially accept To's donations. This will be followed by a
discussion led by To about his experiences as a filmmaker. To's donations
include awards for Best Director at the 2004 Hong Kong Film Awards for "PTU";
Best Director at the same year's Taiwan Golden Horse Awards for "Breaking News";
and the Carnet Jove Jury Award at the 2006 Sitges - Catalonian International
Film Festival in Spain for "Exiled." Johnnie To first announced he would donate
his awards a year ago in an interview with Beijing News. He was quoted as
saying, "These trophies are just decorations. [Fame] is not a big deal." To is
among Hong Kong's most renowned filmmakers, and is credited with popularizing
crime thrillers.
Poor air quality in Hong Kong, Macau and the rest of the Pearl River Delta is
costing 10,000 lives, 440,000 hospital stays and 11 million outpatient visits
every year, according to top scientists and experts. Conducted by think-tank
Civic Exchange, reasearchers in a study called on the three governments to adopt
an overall air quality management framework - including adopting the World
Health Organization's objectives - to improve monitoring and boost clean energy
usage, while reining in land and marine emissions. The think-tank has put the
total health-care bill in the mainland delta region caused by air pollution at
6.665 billion yuan (HK$7.5 billion), while Hong Kong and Macau spend HK$1.1
billion and HK$17 million respectively on reactive medicine. The researchers
said the four pollutants - particulate matter, ozone, sulfur dioxide and
nitrogen oxides - were responsible for 548 deaths, 38,720 hospital bed days and
3.97 million outpatient visits in Hong Kong alone in 2006. Presenting the
findings at the Foreign Correspondents Club yesterday, study co-author Anthony
Hedley, of Hong Kong University's school of public health, said all estimates
were conservative. Many estimates are likely to increase or even double when the
latest figures are released shortly. Remarking that most people affected by
pollution would not live to see retirement, Hedley said younger generations
would also bear the physical burden of impaired development and that sufferers
faced slow deaths marked by chronic disease, dependency on health-care services,
a reduced quality of life, loss of productivity and being burdens to their
families. "There is a need for accountability in terms of the harm that is being
done to the population's health by ambient pollution ... we are harming future
health as well as present health," he said. "If the government took a health
perspective as opposed to an administrative perspective, they will then adjust
their way on what they do," said Civic Exchange chief executive Christine Loh
Kung-wai. She said the think-tank is conducting discussions to have the
government link health and pollution in its policy outlook in the hope the city
and its neighbors could get their acts together before the East Asian Games in
November next year. The study compared recent pollutant levels up to 2006 with
health-care costs and productivity losses due to hospital admission and deaths,
with the annual burdens translated into monthly costs. Demographic profiles,
mortality rates, hospital admissions and outpatient visits to private and pubic
sectors, productivity loss data and cost data for workers aged 15 to 64, with
adjustments for per capita income and gross domestic product, were taken into
account in formulating the findings.
Yeung to Sing Pao rescue - Hong Kong entrepreneur Carson Yeung Ka-shing plans to
invest at least HK$160 million in the beleaguered Chinese-language newspaper
Sing Pao Daily News.
Organ donor fees could be scrapped - The Hospital Authority is considering
waiving medical fees for local and overseas organ donors. Secretary for Food and
Health York Chow Yat-ngok told lawmakers yesterday the authority had previously
waived fees for organ donors on a case-by-case basis but would now consider
institutionalizing the arrangement. The announcement was made in response to
queries by Democratic Party lawmaker Albert Ho Chun-yan after it was recently
reported an approved mainland donor received a hefty medical bill after
recovering from his operation. An authority spokeswoman said the move is
expected to help facilitate the authority's twin-pillar strategy of encouraging
live donations and donations after death. Medical-sector lawmaker Kwok Ka-ki,
who said medical bills for donors could easily run into millions of dollars,
urged caution in reviewing the waiver policy. "I think it would be difficult to
waive the fee for all donors and we need to be careful as it may become a
constant phenomenon that will incur a lot of cost," he said. Favoring the use of
discretionary funds at the government's disposal to be used for patients in
financial difficulties, he said the case-by-case review would be the best way
forward until the authority finalizes its proposal. Chairman of the Alliance for
Patients' Mutual Help Organizations Cheung Tak- hai said the waiving of fees is
an encouraging move in light of the acute shortage of donors. "I hope this will
have a positive effect on boosting participation, because having to pay fees on
top of already giving up organs will scare many potential donors away," he said.
Hong Kong Liver Foundation executive administrator Doris Ho Lai-ching said the
announcement is great news to patients. She also said the government's strict
restrictions limiting potential overseas donors to immediate family members
should be relaxed. Acknowledging that restrictions are meant to stifle the
growth of an organ trade, she said allowing a legitimate channel for donors of
non-family members would help donation rates keep up with transplant queues.
According to the Food and Health Bureau, 31 liver disease patients on the
transplant waiting list died in 2007. It said 126 and 1,489 patients were on the
waiting lists for liver and kidney transplants respectively as of December 31
last year. Last year, only 26 livers and 58 kidneys pre-donated by deceased
people were available for transplant. 
Mainland, Taiwan organizations hold talks
after 9 years' suspension - Chinese mainland's Association for Relations Across
the Taiwan Strait and the Taiwan-based Straits Exchange Foundation began to hold
talks after nine years' suspension.
China's monthly CPI rises 7.7% in May
- China's consumer price index, the main gauge of inflation, rose 7.7 percent
year on year in May, the National Bureau of Statistics said on Thursday. The
figure, compared with 8.5 percent in April and a nearly 12-year-high of 8.7
percent in February, was broadly in line with most forecast.
The file photo shows Chinese "taikonauts"
in training. China's Shenzhou VII manned space mission, which will include the
first spacewalk by a Chinese "taikonaut", is to launch in October, said a
spokesman of the China manned space engineering office in Beijing, June 12,
2008. China's 1st spacewalk mission to launch in October. China's Shenzhou VII
manned space mission, which will include the first spacewalk by a Chinese "taikonaut,"
is to launch in October, said a spokesman of the China manned space engineering
office here on Thursday. He would not give the exact date of the launch, but
said a day would be selected in October. A crew of six astronauts had been
chosen for the mission, with three manning the spacecraft and three substitutes,
said the spokesman. Two of the astronauts on board the spacecraft would prepare
for the historic spacewalk, he said. The remaining taikonaut was expected to
carry out scientific experiments, he said. Scientists had finished the research
and assembly of the space craft, he said. The Shenzhou VII will be launched from
the Jiuquan Satellite Launch Center in the northwestern province of Gansu. The
launch center is getting prepared for the launch, according to earlier reports.
The spacewalk mission is crucial for China to establishing a space laboratory or
station. China began its manned space program in 1999 and successfully sent its
first astronaut, Yang Liwei, into orbit on the Shenzhou V spacecraft in 2003.
Two years later, Fei Junlong and Nie Haisheng completed a new Chinese record
with a five-day flight on the Shenzhou VI All returned safely. 
Chiang Pin-kun (L), chairman of the SEF,
bows to the statue of Kuomintang founder Dr. Sun Yat-sen in the memorial hall of
Dr. Sun Yat-sen at Biyun Temple in Beijing June 12, 2008.
Tote fashion goes green - "I'm not
green, but I could be," reads one. Others have similar messages printed on them,
"My Bag", "Use Me and Re-use Me". Since the Chinese government issued its June 1
ban on free plastic bag handouts, retailers in China have found themselves in
the midst of a "green" phenomenon. They're anxious to turn fashion-conscious
customers into eco-aware shoppers.
Hong Kong singer and actress Gigi Leung
attends a commencement ceremony for the UN Children's Fund "Young Envoys
Program" on June 9. As the Hong Kong ambassador of the UN Children's Fund, the
star called on people to make donations to victims of the Sichuan earthquake.
The Secretary for Justice has called for
a staggering 30 percent rise in the pay of senior government lawyers in a move
that would see their salaries top those of senior civil servants for the first
time. The proposed pay hike aims to stem a worrying brain drain from the
Department of Justice to the lucrative private sector and address sagging morale
caused by ever-increasing workloads. In a letter to department management and
staff, Secretary for Justice Wong Yan-lung said the top-end salary of senior
government counsel would rise to HK$112,850 exceeding the starting salary of a
directorate grade one civil servant. At present, government lawyers are on the
same pay scale as civil servants but in a further move Wong proposes the
creation of a separate legal pay scale for government lawyers. It would mean
that the starting salaries of non-directorate government counsel would jump by
35 percent to HK$59,360 per month and peak for non-directorate senior
governmental counsel at HK$112,850 a 29 percent rise. This means the highest
paid non- directorate senior government counsel would earn more than a level one
directorate officer who starts on HK$97,250. This will act as an incentive to
staff and provide added rewards for career advancement by progressively and
regularly increasing a counsels salary, Wong said. The proposals were made in a
submission to the civil service pay-review body, the Standing Commission.
Between 2002 and 2007, 53 government lawyers quit the department 2.5 percent of
the total complement. Wong said a separate adjusted pay scale would allow more
flexibility to deal with staff retention and lure highly skilled lawyers from
the private sector. Law officers and I feel strongly that the increased work
pressure shouldered by colleagues in the government counsel grade ought to
receive appropriate recognition, he said. Wong said: "The package the Department
of Justice offers must be reasonably attractive vis-a-vis what the private
sector is offering, as we are competing with high-end firms in attracting the
best talent." Other recommendations sent to the Standing Commission, which
oversees the Grade Structure Review, a civil service pay review, stipulated that
any pay rise must be applied on an equal footing to both serving lawyers and new
recruits with the same levels of experience. Pointing to the mounting workload
of lawyers, Wong said the number and complexity of requests for legal advice had
risen in recent years. New government projects raised new legal issues and draft
legislation is subject to more rigorous scrutiny by the legislature. The number
of judicial reviews is also growing. The Standing Commission gathered the views
of department staff and management in April. Low morale, resulting from a heavy
workload and lower salaries is driving government lawyers to the private sector,
said a senior counsel from the Local Government Counsel Association. The source
warned that the department should urgently improve employment terms before more
lawyers decide to leave. 
The ruins of a
collapsed bridge are cleared to make way for the water from a "quake lake" in
the earthquake-devastated city of Beichuan, Sichuan province June 10, 2008.
A
woman inserts her single journey ticket in the new automatic fare collection
system to check out at the Xizhimen subway station in Beijing on June 9, 2008.
Beijing said goodbye to paper subway tickets yesterday. They were replaced with
electronic ones
Chief executive
Donald Tsang Yam-kuen's visit to Tai O failed to bring comforts to frustrated
residents, as it will take at least two weeks before road traffic leading to and
from the fishing town can be partly resumed. Flying on a helicopter, Mr Tsang on
Sunday inspected traffic network and flooded areas affected by the Saturday
heavy downpour on Lantau Island. He also made a short stay in Tai O to talk to
residents about their problems brought by blocked traffic roads and lack of
water supplies. "I hope traffic lanes can be open after the holiday.
Co-ordination and rescue work has been done quite well. But I also understand
that residents are having a hard time without water supply,” he said describing
the rain on Saturday as 'rare which happened once in a hundred years'. But
director of Highways, Wai Chi-sing said it would take at least two weeks to
partly resume road traffic connecting Tai O and other areas. "It is quite
dangerous to do clearance work at the moment. We can still see lots of water
flowing along slopes, and some slopes are quite unstable. Our goal is to try to
open one lane for road traffic in two weeks,” he said at a joint conference on
Tai O situation on Sunday. Mr Wai said some parts of Keung Shan Road were badly
affected by landslide, and foundation work of the road was also badly damaged.
Commissioner for Transport Alan Wong Chi-kong said ferry services frequency
would be increased to meet residents' needs. "Service frequency will be
increased by 10 every day for weekdays with seven departing from Tai O and the
last ferry is scheduled at 10.30pm and three from Tung Chung. The first ferry
will depart from Tai O will be 6.30am for residents who go to work and school,”
he said. "Ferry service frequency will also be increased by 14 in total with
seven departing from Tai O and seven for Tung Chung during holidays and
Sundays.” Water supplies only partly resumed in Tai O after midnight, and
residents had to queue up at a ferry pier with trolleys filled with all kinds of
containers to get fresh water from water vessels. Fixed-line telephone service
fully resumed at around noon on Sunday, while mobile phone service only
gradually went back to normal. Medical service at a clinic in Tai O has not been
affected, and residents can seek help from the Government Flying Service for
urgent treatment at hospitals. But Tai O residents were not satisfied with the
series of measures introduced by the government. "It only thinks about traffic
leading to Tung Chung, but how about traffic on Lantau Island and the connection
between Tai O and South Lantau?” Tai O resident Cat O said. "I work in Mui Wo
which means I have to take a ferry to Tung Chung, then the MTR to Central and
catch a ferry to Mui Wo. It is going to take 3 hours. It only takes 25 minutes
by road traffic from Tai O to Mui Wo.” Mr Ho who took part in a residents'
meeting last night said some parents also expressed worry about transport on
Lantau Island, as their children went to schools in South Lantau. "The
government should introduce ferry services running between Tai O and some spots
in on South Lantau such as Pui O and Mui Wo.” Another resident Chan Sui-ming
said shop operators were also worried, as transportation of goods and resources
for constructions mainly relied on road traffic. 
For the first
time since it opened, the highway to the airport was rendered impassable, with
more than a metre of muddy water trapping cars and requiring emergency workers
to rescue stranded people. Rain triggered landslides on the hill opposite the
Caribbean Coast complex and mud cascaded down on to the North Lantau Highway
shortly before 8.30am. "There were three waterfalls on the hill as muddy water
washed down," a resident of Caribbean Coast said. At least 10 vehicles,
including two buses and taxis, broke down in the 1.5-metre-deep water. Firemen
were called in to rescue people. A taxi driver said: "I tried to speed away on
the [Kowloon-bound] slow lane but vehicles in front broke down. As I tried to
reverse my taxi, the water came very quickly and my vehicle broke down. "I could
not open the door. I had to lower a window and climb out." The driver of a
double-decker bus said the water was chest-deep and she had to go to the upper
deck to stay dry. The Transport Department advised the public to us the railway,
and the MTR Corp put on more trains and extended services until 2am. The deputy
director of the Highways Department, Cheung Hing-wan, said sand and stones had
been washed into a drain and workers needed time to clear the blockage. An
excavator was called in to clean out the mud but it broke down in the water and
another was ordered in. Mobile pumps were called in to clear the water. Shortly
after 4pm, the Kowloon-bound lanes of the highway were opened to two-way
traffic. Last night, workers were removing mud that had been left on the
airport-bound lanes after the water drained away. Secretary for Transport and
Housing Eva Cheng said the government would review arrangements for co-ordinating
emergency transport. She said the government's long-term plan was to build an
alternative highway connecting Tuen Mun and Lantau. Ms Cheung said the
government would inspect slopes along the North Lantau Highway for any possible
landslide dangers. "We will discuss with related departments whether we need
work to make slopes - not only this slope but all along the highway - safe," she
said.
When Hong Kong
doctor Lau Chor-chiu arrived in the Sichuan earthquake zone one week after the
disaster struck, he was stunned by the scale of the damage and tragedy that has
seen the loss of almost 70,000 lives. He was also struck by the efficiency and
capability of the mainland's disaster response network. To Dr Lau and more than
40 health workers sent by the Hospital Authority to Sichuan last month, the trip
was more than just disaster relief; it was also a journey of self-discovery and
a wake-up call as they reflected on how Hong Kong would deal with a disaster on
such an unprecedented scale. "The mobilization by the mainland government to
implement disaster relief was amazing," Dr Lau said. "I asked myself if Hong
Kong could cope so well if a disaster took place here. I have doubts about
that." The chief of service in accident and emergency at the Pamela Youde
Nethersole Eastern Hospital is possibly the most qualified person to assess
disaster relief services in Hong Kong. He has been a flying doctor with the
Government Flying Service and in 2004 became the first doctor sent by the Hong
Kong government to help Hongkongers injured in accidents overseas. 
People practice paddling before a
dragon boat race for the Dragon Boat Festival on the West Lake of Fuzhou, East
China's Fujian province June 4, 2008. 
The Beijing
subway will on Monday bid farewell to the familiar paper tickets that have been
in use for 38 years, local media reported Thursday. A new automatic fare
collection (AFC) system would be put into operation in all subways stations in
the Chinese capital, the Beijing Daily said. Passengers will need to produce
their magnetic strip tickets or mass transit smart cards twice when going
through the system machines, both in entering and exiting the gates. At present,
a passenger only needs to present his paper ticket or process his smart card
when entering a subway station. Jia Peng, a Beijing Subway Company official,
said the new AFC system would help collect information on how many people
entered and exited the subways at different time periods of a day. The data
would help the company to better organize the frequency of trains. In addition,
the magnetic strip tickets that have replaced the paper tickets could be used
repeatedly -- about 2,500 to 3,000 times -- and thus contribute to environment
protection, he said. Beijing, the host city of this summer's Olympic Games, now
has five subway lines with 140 kilometers of track, transporting millions of
passengers daily. It plans to add three subway lines this year and reach 200
kilometers in length.
Short-selling came under the spotlight last week when Hong Kong Exchanges and
Clearing (SEHK: 0388, announcements, news) (HKEx) chief executive Paul Chow Man-yiu
promised to review whether to allow it during the 10-minute closing auction
period as a way to improve conditions during the controversial week-old
extension of trading. Legislators will hold a special meeting on Tuesday to
discuss the chaos that was witnessed during the 10-minute session on Friday, May
30. On the fifth day of extended trading, turnover reached HK$14.87 billion
during the 10-minute period, compared with the previous days' volume of HK$2
billion. Twenty-one stocks rose more than 5 per cent. The new system extended
the market close to 4.10pm, from 4pm. During the extra 10 minutes, investors may
use tenders to determine the closing prices of stocks. This replaces the old
method of using the middle price of the last five orders. Legislator Chim
Pui-chung alleged the unusual share-price movements on that day were the result
of market manipulation. But Mr Chow said they resulted from the rebalancing of
MSCI indices. Fund managers needed to buy stocks to adjust to the new weighting,
he said. Mr Chow promised, however, that there would be a review to determine
how the auction system could be improved, including a proposal to allow
investors to short-sell shares during the 10-minute trading period. Investors
now can short-sell stocks during normal trading hours but not during the
10-minute auction period. Sun Hung Kai Financial executive director Joseph Tong
Tang said that if the exchange allowed investors to sell short during the
closing auction, it should help stabilise prices. "If investors can sell short
during the closing auction period, it will increase the number of sellers during
the period and hence will increase liquidity," he said. "This is better than the
current arrangement in which investors can only buy up but cannot sell short
during the 10 minutes." Timothy Lo, managing director of CIC Investor Services,
agreed with the relaxation but suggested the exchange think about going further.
Mr Lo said it could consider scrapping the tick rule, which bans traders from
short-selling below the best current asking price, a restriction that
effectively bans short-selling during a falling market. The restriction was
imposed in August 1998, during the Asian financial crisis, when the government
battled to keep the market from crumbling under the pressure of hedge fund
speculators betting it down. Securities and Futures Commission (SFC) chief
executive Martin Wheatley initially called for a review of the tick rule early
last year because Hong Kong lagged behind other markets in short-selling
activity. Short-selling volume makes up about 5 per cent of market turnover in
Hong Kong, far below the 25 per cent to 30 per cent in New York and London. The
stock exchange had planned to revoke the tick rule in November but a market
slump prompted the SFC to ask the exchange to delay the plan for the time being.
However, CIC's Mr Lo said many markets did not have the tick rule and he
supported the move for Hong Kong to match international practice. "The tick rule
was introduced ... when it was needed to protect the market," he said. "Now the
Hong Kong market is much bigger and it is time to relax it. The government
should maintain Hong Kong as a free market and remove unnecessary restrictions."
Louis Tse Ming-kwong, a director of VC Brokerage, said the tick rule should be
kept. "The Hong Kong market has a lot of retail investors who may panic during a
falling market," he said. "It is better to have the tick rule in place to
prevent the market from being flooded with short-selling activities during a
falling market. It is important for the exchange to have regulations to protect
the investors' interests." Sun Hung Kai's Mr Tong shared Mr Tse's view.
"Investors now can still sell short with the tick rule in place, though it is
not allowed in a falling market," he said. "This makes sense, as some overseas
markets also have similar restrictions. I prefer to have the rule in place to
prevent the market from falling too rapidly."
The long-awaited drainage of China's
Tangjiashan "quake lake" started at 7:08 a.m. Saturday, when its water flowed
into a manmade sluice channel. The flow was rapid, steady and gradually
increasing in volume.
A little girl learns to make
Zongzi, or glutinous rice wrapped in bamboo leaves in the shape of a pyramid, in
Zibo City, Shandong Province on June 4, 2008. On the fifth day of the fifth
month of the Chinese lunar calendar, which is Sunday this year, all Chinese
celebrate one of their major traditional festivals, the Duanwu Festival, or
Dragon Boat Festival. On the fifth day of the fifth month of the Chinese lunar
calendar, which is Sunday this year, all Chinese celebrate one of their major
traditional festivals, the Duanwu Festival, or Dragon Boat Festival. The
highlights of their celebrations include eating zongzi, glutinous rice wrapped
in bamboo leaves in the shape of a pyramid, racing dragon boats and sticking
mugwort leaves on their doors. There is a touching story behind the festival,
too. Qu Yuan, a poet in the Warring States Period more than 2,000 years ago,
drowned himself on the fifth day of the fifth lunar month of 278 BC in the Milo
River in despair over his country's future. Hearing of his death, people who
loved Qu raced in boats to recover his body from the river and threw zongzi into
it to feed the fish to keep them away from Qu's body. In 2006, the folk customs
for celebrating the Duanwu Festival were approved by the State Council as a
national cultural heritage. A year later, the central government decided to add
the Duanwu Festival, together with two other traditional festivals - Tomb
Sweeping Day and Mid Autumn Festival - to the list of public holidays. According
to tradition, our ancestors believed the hot weather in midsummer might cause
various diseases. So, to ward off diseases and drive out evil were the main
purposes of the Duanwu Festival. As we celebrate the Duanwu Festival for the
first time, following the earthquake that rocked Sichuan province, we should
make full use of our traditional celebration to drive away bad luck and pray for
long-term peace and prosperity for the people and country. However, it is a
regretful fact that the traditions of Duanwu are fast disappearing. For an
average city dweller, his or her typical celebration is to buy several frozen
zongzi from the supermarket. And many young people only know it is associated
with Qu. South Korea's Gangneung Danoje Festival, occurring at the same time,
and rooted in Chinese culture, was included in UNESCO's Masterpieces of the Oral
and Intangible Heritage of Humanity list in 2005. It sparked heated discussion
among the Chinese for conservation of our own traditional culture. But it soon
lost momentum and no progress was made. Why does the Duanwu Festival no longer
receive the same attention as it did? One of the main reasons is accelerating
urbanization. As more rural residents swarm into cities, agriculture is replaced
by industrialization. Skyscrapers leave no room for dragon boat racing. Built of
steel, iron and cement, the apartments do not need mugwort leaves to drive away
mosquitoes. Thus, eating zongzi has become the most convenient way to celebrate.
This is understandable today, but people cannot help feeling a sense of
nostalgia for the lost customs of the festival. As a matter of fact there is a
common reason behind people's increasing indifference to the traditional
festivals including Duanwu. These festivals are no longer important occasions
for entertainment. In our tradition most festivals, except for Tomb Sweeping
Day, were days for happiness and celebrated with carnivals, Duanwu was no
exception. Parents used colorful threads to make necklaces and bracelets for
children, gave them beautiful embroidered bags, painted the Chinese character
for "king" (wang) on their foreheads to drive away bad luck, and even taught
them how to make bows and arrows as special toys. The Duanwu Festival was also
called "kids festival" in some localities. Spending such happy hours with
parents and siblings, young children began to understand the festival as well as
the traditions and culture behind it. Repeating the customs annually makes it
possible for kids to learn the traditions, accept it and pass it on when they
become adults. When grown-ups no longer take traditions seriously, it is only
natural children follow suit. A random survey by a TV station showed that most
people lacked knowledge about Duanwu except for commemorating Qu. While Qu is a
respectable figure in our history, he is far from the festival's only
significant feature. To restore the former prominent position of traditional
festivals, it is necessary to spread knowledge of their rich significance and
adapt it to modern society. The decision-makers have made a good start by making
traditional festivals public holidays. But they can do more than simply allowing
people to take one day off work. More promotion of our traditional culture is
needed with extensive participation. This will ensure their conservation. 
Adding insult to injury - Western stars
are learning they cannot ignore Chinese sensitivities - It took just a minute
for thousands of people in Sichuan to lose their loved ones and their homes.
Actress Sharon Stone sullied her name and wrecked her career in China just as
quickly with her comment that the devastating earthquake reminded her of karma,
pointing to Beijing's actions in Tibet. Hurtful words can cause great damage,
especially in the internet age where they can be circulated worldwide instantly.
The lesson was a painful one for Stone. French fashion house Christian Dior
immediately dropped her advertisements on the mainland to calm angry citizens,
who swore to boycott anything associated with the Basic Instinct actress.
Organisers of one of China's most extravagant film and entertainment events, the
Shanghai International Film Festival, sent her a letter of protest and are
considering not inviting her to the event in future. Her ill-advised comments
have also seen the mainland's internet community crown her the "public enemy of
China" - quite a dubious achievement for someone with an IQ of 154. But to some
western entertainment industry professionals in Hong Kong for the two-day Music
Matters conference last week, the Stone episode has been enlightening. Artists,
they say, should be respectful, and the industry should adapt to other cultures
and systems in order to expand fan bases - and revenue - in foreign markets.
There is also a growing realisation that China is the most important foreign
market, despite its poor level of intellectual property protection. Piracy on
the mainland is something of an obstacle for the entertainment industry, but an
increasing fascination with China among western artists nevertheless means most
want to be successful there. "There's so much coverage in the US media and
there'll just be more when it gets closer to the Olympics. There's a fascination
with not just the market of China but also the people," said veteran talent
handler Jordan Berliant, who has worked with the likes of Meat Loaf, Duran Duran
and the Bee Gees, and is now with multimedia group The Collective. "Touring
artists who have been to cities like Sydney and Tokyo recognise that there's a
flavour to every culture and every audience. The opportunity [to play in a city]
that offers a new flavour is very appealing to every artist of every genre."
Stone's insensitive comments have raised the issue of artists' behaviour,
especially artists from the west who are used to airing their views on virtually
any topic - except perhaps their personal lives - at the drop of a hat. But
entertainment industry insiders realise that now is the time for artists to pay
attention and learn to be respectful - especially if they want to succeed in
foreign markets. Terry McBride, founder and chief executive of Vancouver-based
Nettwerk Music Group, which manages widely popular artists such as Avril Lavigne,
Sarah McLachlan and Dido, said being sensitive to other cultures was not a
negative thing and educating artists was important. In contrast to the outspoken
Stone, Mr McBride said he would encourage his artists, especially the younger
ones, to be respectful at all times. "I would ask them to be more respectful and
engage in conversation rather than criticism. One should understand an issue
before claiming to be an expert. "Artist managers who have been to China,
experienced and understood China, will talk to the artists. Any artists who have
been to China will understand that criticism is not working. I would encourage
artists to come over here and see what resonates with them." Mr McBride cites
Lavigne as an example. "There are challenges going to China, such as a certain
level of censorship, but I think that censorship is based on respect," he said.
"For example, when Avril goes to China, she's respectful of the culture and she
does not swear. So all the "F" words that you hear in her songs are gone. A lot
of people would see that as censorship but she sees that as being respectful.
"`How dare you censor me?' some would say, but it's not respectful. It's not
cool. Again, it's all about understanding. One can look at it as just how things
work here and respect that." Rob McDermott, manager of Californian rock band
Linkin Park, who have sold more than 50 million albums worldwide since they
formed in 1996, says artists should be socially conscious and responsive to
people's needs, but not political. "Some people have their own agenda ... but
when people make those comments, I believe there is a lot of ignorance there,"
Mr McDermott said of Stone's comment. "I'm very lucky that I don't have to worry
about that because [Linkin Park] are very smart and respectful. "Using
entertainment as a forum for celebrities to address those issues in China is not
the most appropriate way to express their opinion." Mr McDermott said an
artist's behaviour and attitude were key factors to consider when he was making
a decision on signing them up. "It's not about the rules and regulations of how
they should behave," he said. "You have to trust the artists to make the right
decision. They are adults, for the most part. When we meet with a band, if they
are disrespectful you notice it right away and you don't want to work with them.
I don't want to work with them." In the case of established artists it is a bit
different. Managers only help artists build their careers and give them advice.
What they say and how they act in public after that is out of their hands. "No
amount of management can prevent that," said U2's manager, Paul McGuinness,
about Stone's comment. "I was surprised to read it just as much as anyone else.
Artists think for themselves. For my clients, I won't tell them what to do, but
I would advise them and discuss the issue. Maybe Sharon didn't [take any advice
from her manager]." The talent managers believe that if western artists want to
be successful on the mainland, it will take more than just watching what they
say in public. A strategically planned business model and marketing campaign
aimed at respecting the local culture is just as important. "You must create a
marketing plan that is culture-coded," Mr McBride said, adding that his
promotion of Lavigne was the first time he had put such a plan to the test.
"It's important to know what your audience is and how your audience consume," he
said. "We did eight different versions of one of her singles and she asked why.
I walked her through it, telling her that most media in China is consumed on
mobile phones [ring tone and ring back tone]. If you can do that 30 seconds in
Mandarin, it is respectful and people see that you are making an effort. "You
won't get paid for most of them but that's not where it's at. You are creating a
relationship with your fans and at the end of the day there's no doubt that it
can help sell more records." No discussion about the future of the recording
industry on the mainland can ignore the issue of piracy. The International
Federation of the Phonographic Industry reported in its Digital Music Report
2008 that China was "one of the biggest sources of illegal downloads in the
world". It said that the legitimate market for music was "choked by a digital
piracy rate of over 99 per cent". "The Chinese market will have huge importance
in the future simply because of the size of it, but its importance will only
come after someone decides to do something about piracy," federation chairman
and chief executive John Kennedy said. Not so, say the talent managers. "If you
don't focus on serving the desires and interests of the people that buy what it
is you sell, you won't succeed," Mr Berliant said. "What's so disconcerting to
us managers is that the industry's focus is to serve the middlemen [record
labels], instead of the end users [fans and consumers]. There's an issue of
piracy and the lack of intellectual property in China. But any emerging market
faces a set of possible barriers." An example was when radio first emerged, he
said. The recording industry fought it, fearing that people would not pay to see
the artists perform or buy their records. Instead, radio helped create a massive
market for music, Mr Berliant said, arguing the internet would do the same. If
there was no way to change the piracy situation in China any time soon, the
industry should come up with a different model to generate revenue, Mr McDermott
said. Bundling music and sales of other collectable items such as T-shirts and
concert tickets might work in a market like the mainland, where artists do not
appear very often. "If artists can understand that they are a brand, and music
is only the emotional connection to the brand, you can still create an amazing
situation for an artist. [With that emotional connection] you will have an army
of people who can work for you for free. What's left is how to mobilise them,"
Mr McBride said. And of course, if you are trying to mobilize an army of fans,
it helps if you don't insult their country.
Shanghai Zhicheng abandons 1.1b yuan site in tough market - Land to go on the
block again after developer forfeits deposit - A sluggish market and tough
credit conditions have forced a Shanghai developer to abandon a site it bought
eight months ago for 1.1 billion yuan (HK$1.24 billion). The Putuo District
Bureau of Housing and Land Administration would now reauction the 26,800 square
metre site, sources said. It is expected that the land, which was designated for
commercial and residential development, will be put up for resale either later
this month or next month at a price expected to be only two-thirds of the
previous transaction price. Property analysts said the case was a consequence of
irrational exuberance in the marketplace last year, which led developers to bid
unrealistic prices. But for now, it appeared to be a one-off example, and it was
too early to say whether more developers would follow suit, they said. At the
time of the auction in September last year, Shanghai Zhicheng Enterprise outbid
seven other bidders, including a company controlled by Gome Electrical
Appliances Holdings chairman Wong Kwong-yu. It paid 1.1 billion yuan to buy the
land, which was projected to yield a gross floor area of 67,000 sq metres. The
price translated into 16,418 yuan per square metre and although this was not a
record, it shocked the market since it was four times the minimum asking price.
The site is part of a large-scale business development called Changfeng
Eco-Business District that the Putuo government wants to develop. Abandoning the
land means the developer will now forfeit the 30 million yuan deposit it paid.
Neither Zhicheng director Zheng Jianlu nor a Putuo spokesman would comment on
the proposed resale of the site. Shortly before the Putuo transaction, Suning
Universal Group, property arm of the mainland's second-largest electronics
retail chain, Suning Appliance, outbid Hong Kong's biggest developers and
international rivals for a commercial site in Shanghai. Suning paid 4.4 billion
yuan, or a record 66,927 yuan per square metre, for the 13,709 sq metre site on
East Nanjing Road, reputedly the mainland's busiest shopping area. But sentiment
on the property market has since turned negative in the wake of policy measures
adopted by the Beijing government to halt the frenzied price rises in Shanghai.
Midland Realty general manger Jacky Fung Wang-rui said transactions in the
primary market were down 20 per cent last month, compared with April. Remy Chan
Lap-man, the head of China business development at Jones Lang LaSalle, said:
"Prices bid last year were unreasonably high. For a number of transactions, this
has meant it will be difficult for developers to generate a satisfactory
return." Mr Chan said that as a rule, land cost should be about 10,000 yuan per
square metre for a developer to generate a 10 per cent return and he expected
the site now up for resale to fetch no more than two-thirds of the price paid by
Zhicheng. DTZ (Shanghai) director Vincent Luk Fung-siu said some developers were
also struggling with cash-flow problems. "Property transactions have been pretty
slow recently and it is difficult for developers to raise capital in the market.
In addition, some may be experiencing problems with cash flow, but it is too
early to say if it will become a trend," Mr Luk said. The last time a developer
gave up land in Shanghai was in April 2005. A site in the Northern Bund area was
resold for 1.46 billion yuan with a higher development density after the first
developer failed to begin construction after buying the land for 1.45 billion
yuan for two years.
Red alert as tomatoes pulled - Hong Kong has been hit by a double food scare
after New Zealand banned exports of tomatoes and the United States announced an
outbreak of salmonella linked to the fruit. City supermarkets have pulled New
Zealand tomatoes off their shelves because of the discovery of a new disease-
causing bacteria in the country. And local food and hygiene chiefs are carrying
out tests on US-imported tomatoes after outbreaks of salmonella in nine states.
The authorities in New Zealand have slapped an export ban on tomatoes and
capsicums after the mysterious bug reported to be new to science was found in
three commercial hothouses in Auckland. ParknShop in Hong Kong dumped the
tomatoes yesterday as a precautionary measure. We still do not know if the
products come from the same place as the affected products but we have stopped
selling them in our stores, a spokesman said. About 121,534 kilograms of fresh
and chilled tomatoes worth HK$4.3 million were imported from New Zealand to Hong
Kong in 2007 making it the fourth most popular tomato after those from the
mainland, the Netherlands and Italy. Hong Kongs Food and Environmental Hygiene
Department has not issued any direction while awaiting more information from the
New Zealand authorities. We will closely monitor the situation and we are
seeking to understand what is happening. We cannot say when the ban will be
lifted as that is the decision of the New Zealand authorities, a spokesman said.
The department is also carrying out tests on samples of the US-imported
tomatoes. US health authorities blamed the poisonings on large and uncooked
tomatoes. The FEHDs test results will be available in a week. Hong Kong imported
16,647kg of fresh or chilled tomatoes from the United States worth HK$608,000 in
2007. The New Zealand pest which spreads the disease could also infect potatoes,
chillies and eggplant. And because the bacteria, which mysteriously turned up in
New Zealand two years ago, are likely to also feed on native plants they have a
year-round reservoir for breeding outside the commercial crops. What happens
next will depend on whether the bacteria is also found in commercial crops in
customer countries, and whether growers can control the insects spreading the
organism. Annual New Zealand tomato exports are worth US$7.3 million (HK$57
million) and capsicum exports US$34 million. Important markets include Japan,
the Pacific Islands, Hong Kong, Australia and the United Arab Emirates.
Biosecurity New Zealand director of border standards Tim Knox said he did not
know if the export ban will be lifted by October, when growers are due to ramp
up harvests from the new crops they are now planting for export. The withdrawal
of certification was a precautionary measure until more was known about the
bacteria, its transmission and distribution. There is no known human health risk
from the bacteria, the Ministry of Agriculture and Forestry of New Zealand said.
But it also said little is known about the organism or its origins. The bacteria
may be spread by a small insect that is widespread in New Zealand and could
affect other plants, MAF said. It is the offseason for production and exports
resume in the fourth quarter.
Chief Executives Office director Norman
Chan Tak-lam admits the government had underestimated the public reaction on the
nationality of political appointees. Speaking for the first time since the row
rocked the city two weeks ago, Chan said the appointees pay scale is geared to
attracting the most capable candidates. Its something new and we need to have
various considerations when determining salaries to attract capable and
enthusiastic candidates, Chan said yesterday. He stressed the salaries cannot be
compared with those of civil servants. The new political appointees do not have
housing, traveling and other allowances, Chan said. The salaries of
undersecretaries are roughly the same as those of directorate four civil
servants and there will be a review in two years. However, there is no guarantee
of a pay rise, Chan told a briefing of editors. Neither the undersecretaries nor
political assistants will be paid at the minimum level. Food and health
political assistant Paul Chan Chi-yuen, 28, will receive HK$134,150 a month
compared with his current pay of HK$30,000 with three years' experience. Four
undersecretaries will be paid the maximum HK$223,585. It is understood that the
issue of foreign citizenship was raised at the interview stage but found not to
be precluded under the Basic Law. "If I were to do it again, I would remind
those appointees they may face pressure over their foreign citizenship," Norman
Chan said. "It was the appointees' personal decision whether or not to renounce
their foreign citizenship. The Chief Executive's Office did not request them to
stop talking about that." Also at the briefing was Secretary for Constitutional
and Mainland Affairs Stephen Lam Sui-lung who said he advised appointees to
weigh their foreign nationalities against long-term careers in politics. 
Taxi fares may undergo a major revamp as early as next year if the government
goes through with recommendations proposed by the Transport Advisory Committee.
In its report on the Review of Taxi Operations released yesterday, TAC suggested
taxis be allowed to charge more for short trips but less than current rates for
long-haul rides. TAC chairwoman Teresa Cheng Yeuk-wah said this would help
restore a level playing field for taxi operators whose businesses have been
seriously affected by illicit discount cabbies. Cheng said the changes would
also "align the taxi fare structure with those of railways, franchised buses and
green mini-buses." The government said it accepts all recommendations with a
view to implementing the new policy early next year. No further details were
released. Cheng said time will be needed to allow individual taxi operators to
agree on a fare scale, subject to the maximum flagfall charge. "This is because
in [other] places which [currently] adopt more flexible taxi fare regulatory
regimes such as Tokyo, [its] taxi trade structure is dominated by [a few taxi]
companies which operate 70 percent of the taxis," Cheng said. "The majority [70
percent] of taxis in Hong Kong, however, are operated by individual rentee-drivers.
There are more than 30,000 taxi operators in Hong Kong. Allowing individual taxi
operators in Hong Kong to apply for setting different fare scales could create a
lot of confusion to passengers and give rise to practical difficulties in
processing the large volume of applications." She added: "In the longer term,
Hong Kong could consider allowing more flexibility in the taxi fare regulatory
regime when its taxi trade market structure develops to one [which is more]
similar to [those in places such as] Tokyo's." Hong Kong Tele-call Taxi
Association chairman Wong Yu-ping said the government should have adopted such a
system years ago. According to Wong, almost all taxi drivers are forced to offer
discounts as this has become a trend in the industry for long-haul rides. "You
cannot survive if you don't follow the practice." 
The Immigration Department has vowed to
protect personal data and signed the first undertaking initiated by the Privacy
Commission amid the recent tide of government data leakage. Director of
Immigration Simon Peh Yun-lu yesterday said the agreement was a joint effort
with Privacy Commissioner Roderick Woo Bun. The department will adopt the new
measures to enhance the existing personal data protection system, he said. No
immigration officer will be allowed to take documents containing sensitive
personal data out of the office under a new measure to protect privacy. Other
measures include erasing identification of individuals from all documents;
categorizing paper and electronic files with personal data; and not allowing
highly sensitive documents to be stored on portable electronic devices. Woo
welcomed the move, saying he would promote and encourage stepping up data
protection among government departments and bureaus. "I do not have the power to
make all departments comply with the guidelines, but I will advise them to adopt
these measures to protect personal data privacy," Woo said. Last month 27
document files marked confidential, including minutes and internal memos, were
leaked on the internet through FOXY file- sharing software. The documents
included names and dates of birth of 11 foreigners and three locals.
Investigation showed that the incident was due to the carelessness of an
immigration officer in handling the documents, which were brought home and used
in a personal computer with an internet file-sharing program. The commission has
decided not to take further action against the officer responsible for the leak.
Personal data of 46,000 people have been leaked by government departments and
public organizations in the past three years. A recent spate of scandals over
leaks by police, the Immigration Department and the Hospital Authority roused
public concern over privacy.
AmCham Shanghai
Participates in Asia Society Conference - Last week, from May 28-30, a
delegation of AmCham Shanghai members attended the Asia Society's 18th Asian
Corporate Conference in Tianjin. This year's conference was themed "A New Era
for Global Business: Sustainable Growth for China and the World." As a
supporting organization of the conference, AmCham Shanghai President Brenda
Foster led 30 AmCham Shanghai members to join over 1,100 attendees to discuss
the opportunities and challenges in China's rapid economic development and
several different aspects of sustainability. The conference opened with an
address by Chinese Vice President Xi Jinping, who acknowledged China's
challenges in improving energy conservation and reducing emissions while
reiterating the country's ! commitment to sustainable development. Conference
sessions included discussions on innovation and entrepreneurship, investing for
growth, internationalization and global competition, the role of culture in
commerce, and energy and environment. The conference also featured a captivating
keynote address by actor Jet Li on behalf of his Red Cross Society of China Jet
Li ONE Foundation, encouraging conference attendees to contribute and get
involved with relief efforts in Sichuan Province.
Bohigian on breaking down barriers - On
June 3, Chamber leaders and members from the 2008 Door Knock team met for a
luncheon discussion on trade and market access issues with David Bohigian, the
assistant secretary for market access and compliance in the U.S. Department of
Commerce's International Trade Administration. Bohigian profiled his portfolio
and on-going commitment to exploring market access issues via every channel
available. He highlighted the Department's successes in 2007, notably breaking
down barriers to the tune of US$120 per American family. Bohigian addressed the
current dialogue between the Chinese and U.S. governments, including the
U.S.-China Joint Commission on Commerce and Trade (JCCT) and the Strategic
Economic Dialogue (SED), and its fu! ture prospects and the state of play with
U.S. trade policy, including FTAs and the WTO Doha round. Bohigian gave an
overview of the recently launched "Invest America" program and the returns from
outbound investment into the U.S. Members raised a range of business climate and
operational issues including bilateral investment and the importance of
engagement with relevant Chinese government organizations as well as with key
government organizations and bureaus on emerging issues. Market access issues
flagged by Chamber members included IPR enforcement, indigenous innovation and
R&D in China, and opportunities for cooperation and shared best practices in the
key areas of clean technology, energy and environment. 
The aerial photo taken on May
26, 2008 shows the landslide mud that formed the Tangjiashan quake lake near
Beichuan County in southwest China's Sichuan Province. The earthquake-induced
lake is at risk of bursting and threatening thousands of people downstream.
Chinese Premier Wen Jiabao went to oversee the safety of the Tangjiashan
quake-formed lake by helicopter Thursday afternoon. "Now it's a critical moment
for the Tangjiashan quake lake, and the most important thing is to ensure there
is no casualty of the people," Wen said. He arrived in Mianyang of southwest
China's quake-hit Sichuan Province Thursday afternoon and immediately boarded a
helicopter to Tangjiashan. It's the third time for the premier to visit the
earthquake areas since May 12.
Food security in China is guaranteed
despite the recent major earthquake and heavy snowfalls earlier this year,
China's Agriculture Minister Sun Zhengcai said in an interview with Xinhua.
Visitors look at a
Rolls-Royce sedan at the auto show in Shenzhen, Guangdong Province, June 4,
2008. China grew to the third largest market of the ultra-luxury brand in 2007.
A farmer harvests rice in a rice field in
Qionghai, Hainan province on June 5, 2008. China is a major contributor to world
food security by feeding nearly a quarter of the global population and involving
in aid to other countries, China's agriculture minister said on Tuesday.
Climbing the stairs of Huangshan - If you want to only
climb one mountain in China, then let it be Huangshan Mountain. Its craggy rock
faces, hanging mists and clustered pines are a distinctly Chinese landscape.
Former Chairman Deng Xiaoping once climbed the mountain and said, "Huangshan is
a good place where tourism can prosper. You must boast about it and make it
known to the world." The mountain entered a new chapter of development shortly
after.
Lax security has led to websites ending with .hk and .cn earning notoriety as
the internets most dangerous domains to navigate, according to a report by
America-based antivirus software vendor McAfee Inc. Domain name registrars with
strict checks see far fewer malicious websites, said Shane Keats, lead author of
the report. McAfees second annual report identifies domains populated with the
highest concentration of risky sites, with 19.2 percent of checked .hk sites
found to be dangerous or potentially dangerous. Other potentially dangerous
sites are .cn (11.8 percent) and .info (11.7 percent). The safest sites are .gov
which are for government use with 0.05 percent, .jp (Japan) with 0.1 percent and
.au (Australia) with 0.3 percent. Some 61,572 domain names ending with .hk have
been registered, according to the Hong Kong Domain Name Registration Company, a
nonprofit outfit responsible for issuing .hk web domains. Maren Leizaola, who
runs online services company HK.COM, said the HKDNRs lax policy in order to
promote the citys own domain name was short- sighted. Leizaola said Russia-based
spammers and online pharmacies out of Canada have flocked to the relatively
unregulated domain name to establish their online presence. The ".hk" domain was
also attractive to online scammers as the city's reputation as a trade hub lent
a veneer of legitimacy to cyber criminals, he said. A HKDNR spokeswoman,
however, said the websites tested in the report several months ago no longer
exist, as the company has suspended more than 10,000 suspicious domains. She
added HKDNR now has some of the most stringent policies and tightened measures
in place to minimize incidences of security risks. Internet Society Hong Kong
chairman Charles Mok Nai-kwong was also skeptical of the report. Hong Kong is a
relatively smaller market compared with some of the other countries mentioned in
the study, so one wonders if they did the study looking at absolute numbers, or
whether there was a proportionate approach taken," he said. Registration for ".com.hk"
requires a business registration certificate and for the owner to be a Hong Kong
registered company, HKDNR said. Applicants for ".hk" need only pay a fee, but
are subject to random checks. Internet Professional Association chief executive
Gary Chao said ".hk" and ".cn" domain names were popular with small to medium
sized enterprises that had limited budgets and were reluctant to invest in
security.
A Hong Kong journalist (R) asks for a cup of
barley wine in Lhasa, capital of southwest China's Tibet Autonomous Region, June
3, 2008. At the invitation of the Information Office of the Chinese State
Council (Cabinet), 31 journalists of 18 media based in Hong Kong and Macao
special administrative regions, and Taiwan began their trip in Tibet on June 3.
China
Unicom Chairman and CEO Chang Xiaobing (R) shakes hands with his China Netcom
counterpart Zuo Xunsheng at a news conference in Hong Kong June 2, 2008. China
Unicom said it will acquire fixed-line operator China Netcom in a share swap
valued at HK$439.17 billion.
A medical
worker (R) from east China's Zhejiang Province examines a local man at Qinggang
Village, Gucheng Town, Pingwu County, in southwest China's Sichuan Province, on
May 23, 2008. Large numbers of medical workers have arrived at local villages in
the quake-hit area in Sichuan Province to provide medical treatment and health
services. The death toll from the May 12 earthquake increased by 88 overnight to
69,107 as of Tuesday noon, the Information Office of the State Council said.
Another 373,577 people were counted as injured and 18,230 still listed as
missing from the 8.0-magnitude quake, while 45.69 million people were affected
by the disaster. Hospitals had treated 94,565 injured people, of whom 70,657 had
been discharged, 21,342 were still being treated and 9,781 were transferred
outside of Sichuan Province, the center of the quake, for treatment. 
Giant pandas eat
bamboo shoots fed by the feeder at the Beijing Zoo in Beijing, capital of China,
June 2, 2008. Eight giant pandas, the "Olympic Pandas" chosen by netizens, were
flown to Beijing from Chengdu, capital of southwest China's Sichuan Province, on
May 24, after they were evacuated from the earthquake-hit Wolong Nature Reserve.
They will meet with tourists on June 5.
A girl hands her
donation for victims of the Sichuan quake to a fundraising volunteer in Tsukuba,
Japan, on Sunday. Chinese students studying at the University of Tsukuba have
collected 12 million yen ($114,345) to aid quake relief work since May 12.
Overseas Chinese had donated about 1.13 billion yuan ($163.4 million) worth of
funds and relief supplies for victims of the May 12 Sichuan quake as of Sunday,
an official of the Overseas Chinese Affairs Office of the State Council (OCAO)
has said.
China Southern
Airlines' 60 per cent-owned subsidiary Xiamen Airlines will be among the first
to take advantage of direct links between the mainland and Taiwan by launching
cross-strait flights at a frequency of up to one per hour. "Some 24 years ago,
Xiamen Airlines was founded to implement the historical duty of direct flights
[across the Taiwan Strait]," Hu Bin, the general manager of passenger marketing
for the regional carrier, said yesterday on the sidelines of the International
Air Traffic Association annual meeting. "Now is the time." The airline, with a
consecutive 22-year profit track record, said it would use 10 Boeing 737-800s on
the route. Although the occasional chartered flights between the mainland and
Taiwan during Chinese festivals show greater demand between Taiwan and Shanghai,
the carrier is confident there is sufficient traffic in Xiamen to make it a key
player. "Taiwan is our main focus as Xiamen is the nearest point between the
mainland and the island," said Mr Hu, who believes that direct links between the
two could be established by next month. He outlined plans to increase the flight
frequency to hourly on the Xiamen to Taipei route, every 90 minutes to Taichung
and every two hours to Kaohsiung. The carrier will receive its first B737-800
next year. The firm will expand its fleet to 69 aircraft in 2010 from 47 and up
to 130 planes by 2015. Financially sound and with a net gain from interest
income last year, Xiamen Airlines will have no problem getting aircraft
financing. However, the carrier is not immune to fuel cost pressures. Mr Hu said
he was prepared for domestic jet fuel prices to rise to international levels,
climbing 1,000 yuan (HK$1,127) to 8,000 yuan per tonne. "We have to fly our
aircraft higher where the air is thinner and causes less friction with the
aircraft to save on fuel," he said. The airline also will turn down carriage of
low-margin air cargo to save on jet fuel.
Two surrender foreign
passports to defuse row - The row over the foreign citizenship of five recently
appointed undersecretaries abated slightly yesterday when two of them gave up
their foreign passports. Undersecretary for Commerce and Economic Development
Greg So Kam-leung said he has given up his Canadian passport while
Undersecretary for Constitutional and Mainland Affairs Raymond Tam Chi-yuen has
surrendered his BN(O) travel document. The three others said they are
considering their options and will make a decision before assuming office. The
case of undersecretaries having dual citizenship had raised questions about
their loyalties. It also gave legislators the opportunity to accuse the
government of being insensitive to public opinion. So said he had renounced his
Canadian citizenship to dispel public concern about his loyalty and end the
controversy. "It was a tough decision. In doing so, I have also had to give up
my legal practice qualification in Canada where I still have friends and
relatives," he said, adding the Basic Law does not require him to renounce his
foreign citizenship. "My Canadian citizenship never changed the fact that I am
Chinese." So said at age 16 he had moved to Canada where he studied, got married
and raised a family. But he returned to Hong Kong two decades ago. So, the
former vice chairman of the Democratic Alliance for the Betterment and Progress
of Hong Kong, said he had never tried to conceal his Canadian citizenship. Those
yet to decide are Undersecretary for the Environment Kitty Poon-kit, who holds a
US passport; Undersecretary for Financial Services and the Treasury Julia Leung
Fung- yee, who holds a BN(O) passport; and Undersecretary for Food and Health,
Professor Gabriel Matthew Leung, who has a Canadian passport. The remaining
three undersecretaries - Kenneth Chen Wei-on (education), Florence Hui Hiu-fai
(home affairs) and Yau Shing-mu (transport and housing) - have HKSAR passports.
Secretary for Constitutional and Mainland Affairs Stephen Lam Sui- lung pointed
out the Basic Law did not prevent undersecretaries from holding foreign
passports. The fact that two had renounced their foreign citizenships showed
they were willing to listen to public opinion, he said. 
Airport eyes Shenzhen and Zhuhai - A
third runway is not merely an option, said outgoing Airport Authority chairman
Victor Fung Kwok-king - more are needed if there is full-fledged cooperation
with Shenzhen Airport. He told Sing Tao Daily, sister publication of The
Standard, the authority is currently developing a 20-year plan that includes
ways to improve "the efficiency of the airport, the runways and airport
capacity." The key to maximizing efficiency at Hong Kong International Airport,
he said, is cooperation with Shenzhen and Zhuhai airports in which Hong Kong's
role is that of a "gateway for passengers coming from Shenzhen and Zhuhai" and
they will serve as a gateway to other mainland cities in return." "If HKIA
cooperates with Shenzhen, we would be needing fifth, sixth, and seventh
runways," Fung said. Fung is not worried about such cooperation opening up a
pandora's box of airlines preferring Shenzhen Airport. "We are concerned more
about capacity. Those passengers will still be HKIA customers," he said. Fung
acknowledged the challenge posed by the increasing likelihood that there will be
direct links across the Taiwan Strait amid a thaw in relations. The key to
seeing off that challenge, Fung said, is with Hong Kong adopting an open-skies
policy. He said direct links may have an impact in the short term, but "it
should not be a big problem ... it will eventually increase opportunities," Fung
said. On budget carriers and the recent demise of Oasis Hong Kong Airlines, he
said cooperation with Shenzhen and Zhuhai airports will create openings for
budget airlines, as the flight time between these airports is less than an hour.
"In the future, there may be more Oases," he quipped. Fung - who steps down
tomorrow - had pushed for HKIA's listing but the move has been postponed. He
said: "When an enterprise reaches a certain maturity, it should be given a
chance to become listed." 
PCCW to shift assets in spinoff - PCCW
(0008) yesterday said it will reorganize its telecommunications services, media
and IT solutions businesses into a new firm called HKT Group and offer investors
up to a 45 percent stake in it. Shares of PCCW rose 9.44 percent yesterday to
close at HK$5.10 - the biggest intraday jump in the past two years. "The
reorganization will improve the operational efficiencies of the group ... and
facilitate a future listing," according to a company statement. When PCCW
chairman Richard Li Tzar-kai spoke at the annual general meeting two hours
before the announcement, he did not disclose the restructuring plan of his
telecom flagship. But the city's biggest phone carrier has already won unanimous
approval from its board, according to the statement. China Network
Communications Group, PCCW's second-largest shareholder, told The Standard it
basically supports PCCW's internal restructuring plan as its "direction" and
"aim" are good. Two years ago, China Network blocked PCCW's plan to sell its
major telecommunications and media assets to Macquarie Bank and TPG-Newbridge.
"This time is obviously different from the [Macquarie] deal," Li said. "PCCW
will sell less than 45 percent stake of HKT, meaning that the controlling stake
in HKT is still with PCCW." But he said China Network will closely monitor the
ongoing deal to see who will be introduced as HKT's strategic shareholders.
Nomura Securities analyst Kelvin Ho said PCCW is setting up a new company as it
wants to unlock hidden value. "If PCCW's money-losing businesses, such as its
WiMAX business in the UK, are not included in the newly formed company HKT, the
real value of the telecommunications business can be unlocked," said Ho. An
investment bank analyst, however, said Li may inject all the businesses of PCCW
into HKT as this will help relieve PCCW's tax burden. The PCCW statement did not
disclose details of the business structure of HKT. Meanwhile, Li said PCCW will
announce an overseas project in the coming few weeks. "The overseas markets are
good opportunities for PCCW. In the coming few weeks, you will see that PCCW is
actively and prudently investing overseas," he said. In February, PCCW and
Mawarid Group partnered to win a license to provide fixed-line phone and
broadband internet services in Saudi Arabia. PCCW managing director Alex Arena
said the Saudi Arabia project this year would make a "minor revenue
contribution" to the company.
Peak Tram has inflation-busting 120th
birthday bash - More than 6,000 tourists and Hong Kong residents on Friday
morning queued up outside the Peak Tram station on Friday morning for a
nostalgic ride to celebrate the tram’s 120th birthday.
Chinese President Hu Jintao
shakes hands with Nong Duc Manh, Communist Party of Vietnam (CPV) Central
Committee general secretary, on Sunday at the Great Hall of the People in
Beijing, May 30, 2008. China, Vietnam to end land border demarcation this year -
China and Vietnam will complete erecting markers along their land border by year
end, a visiting Vietnamese leader said here on Friday. In talks with Chinese
President Hu Jintao, Nong Duc Manh, Communist Party of Vietnam (CPV) Central
Committee general secretary, reaffirmed efforts to meet this deadline set in
1999. China and Vietnam signed a treaty in December that year delineating their
1,350 kilometers of frontier. They officially started to plant land markers in
2002. The two countries finished their latest round of talks on land border
demarcation in Beijing last week, vowing to speed up the work. Following the
demarcation, China and Vietnam will also sign new documents on regulating the
border within 2008, according to a statement on the talks between Hu and Manh.
anh, who arrived in Beijing at Friday noon, handed over to China a list of
relief materials totaling 15 tons. According to the list, Vietnam will provide
150 tents and 10,000 boxes of milk to the areas hit by an 8.0-magnitude
earthquake on May 12. After inspecting the honor guards of the People's
Liberation Army, Hu and Manh held a two-hour talk in the Great Hall of People.
The two reviewed the traditional friendship forged by the older leaders in the
last century. They hailed the rapid growth of bilateral ties in recent years,
citing Sino-Vietnam cooperation in trade, rule of country, regional and
international issues, as well as problems left over from history. Hu proposed
China and Vietnam seek stronger ties in culture, education, science and
technology, agriculture and youth exchange. Manh echoed Hu's view, reiterating
his country's efforts to work more closely with China in various fields. Hu
called for an early blueprint outlining a five-year trade cooperation between
the two countries. In response, Manh encouraged Chinese businessmen to invest in
big projects in Vietnam and help his country develop in a sustainable manner. Hu
suggested a proper solution to existing issues between the countries on the
basis of friendly consultation and mutual benefit. Manh shared Hu's view and
said the two countries should communicate promptly about their concerns. They
also exchanged views on party building and international issues. After the talk,
Hu and Manh witnessed the signing of several bilateral deals on protection and
quarantine of animals and plants, as well as in other fields. During Manh's
four-day tour, he will also visit the east Jiangsu Province. 
Sharon Stone apologizes over karma
remarks - U.S. actress Sharon Stone has released a statement through her agency
apologizing for saying the earthquake that struck China may have been the result
of bad karma, media reported Thursday.
The landslide-blocked river at
Tangjiashan in southwest Sichuan province is now the most pressing danger after
an earthquake devastated the region on May 12. The official death toll from the
quake is 68,858 and is sure to rise with 18,618 missing. Aftershocks have
toppled 420,000 houses, most already uninhabitable, and there is worry that
landslide-blocked rivers could bring more havoc. The official Xinhua news agency
said Tan Li, Communist Party Secretary of Mianyang city in the quake zone,
issued an order that 1.3 million people living downstream from Tangjiashan, a
swollen quake lake, must “evacuate to higher ground”. But Zhou Hua, a Mianyang
city official who is spokesman for the lake relief effort, told Reuters the
report was inaccurate. “There is a virtual training exercise scheduled for
tomorrow to test our contingency plan to move that many people,” he said. “But
there is no public participation, and we see no reason at all to actually
implement the plan at this stage.” Mianyang, a city of 5.3 million people
including many in rural areas, has a concentration of high-tech businesses. At
the unstable Tangjiashan lake, hundreds of troops have removed more than a third
of the earth for a channel intended to ease pressure from the rising waters in
the mountainous province of Sichuan, an official spokesman said on Friday. Up to
190,000 residents downstream had moved to higher ground – usually hillsides
close to where they were living before – to avoid a surge of water if the
blockage suddenly gave way, Mr Zhou said. Xinhua news agency said the water
level was nearly 23 metres below the lowest point of the barrier, which experts
have said could give way quickly once breached. Troops have also built escape
paths in the event that happens, Xinhua said. A mainland meteorological
authority official, Zhai Panmao, said the authority did not expect unusually
heavy rain in the area in the next 10 days. “We’ve adopted extremely important
measures and are opening up a breach and so on,” he said. “We have full
confidence in solving this problem.” Post-quake reconstruction work has only
just begun, and tens of thousands of survivors are now threatened by more than
30 quake lakes, formed by landslides, that could break through the natural dams,
flooding downstream towns and reservoirs. Japan had shelved plans for its
military to fly tents and blankets to China, a Japanese government official said
on Friday, after messages on a mainland internet sites recalled war time
atrocities by Japanese troops. Meanwhile, an official investigator pinpointed
the poor design and construction of at least one of the many schools that
collapsed during the quake, killing thousands of children. Domestic media
reports compiled by Reuters put the combined toll from deaths of children and
teachers in the rubble of schools at more than 9,000. The Chinese public has
been outraged by the disproportionate number. An official investigator said one
the schools that crumpled, the Juyuan Middle School, where hundreds of children
died, was fatally weakened by poor design and materials. “There were certainly
problems with site selection, the building’s structure and structural features,
the construction and materials,” Chen Baosheng, an expert from Tongji University
in Shanghai, told the Southern Weekend. The number of prospective orphans in the
quake area has dropped dramatically as more children were reunited with their
parents, Xinhua quoted local officials as saying. There were about 1,000
“unclaimed children” in Sichuan as of Wednesday, down from more than 8,000
immediately after the earthquake, Xinhua said, adding civil affairs authorities
had been overwhelmed by calls seeking to adopt those quake orphans.
Former Democratic Alliance for the Betterment and Progress of Hong Kong
vice-chairman Greg So Kam-leung is expected to give up his Canadian passport
today before taking up his post as Undersecretary for Commerce and Economic
Development on Monday. Other recently appointed undersecretaries and political
assistants are also expected to make clear their nationalities in the next few
days. Sos double nationality has been the subject of much controversy in recent
days, with several legislators saying those appointed to serve in the government
should not hold passports belonging to other nations. Former secretary for
justice and current vice director of the Basic Law Committee Elsie Leung Oi-see
circumvented the issue yesterday saying the government has a free hand to do
what is best for Hong Kong and which is not against the Basic Law. Leung said
the current situation with underscretaries is similar to the implementation of
the accountability system several years ago, which did not require an amendment
of the Basic Law. She said the SAR government is free to decide on its own
political system and there is no limit to the appointment of undersecretaries
and political assistants. The pan-democrats, however, received a boost when
pro-Beijing Federation of Trade Unions legislator Wong Kwok-hing called on dual-
nationality undersecretaries to give up their foreign passports.
Movie and media giant Shaw Brothers
(0080) said yesterday no agreement has yet been reached on a sale of chairman
Run Run Shaw's stake in the company. he statement, made in an official
announcement to the Hong Kong Stock Exchange, differs from reports that a sale -
which has drawn intense media interest because Shaw Brothers controls Television
Broadcasts (0511) - was a done deal. "No expressions of interest in respect to a
possible purchase of shares in the company held by Shaw Holdings or its
subsidiaries has resulted in any agreement to date," Shaw Brothers said. Shaw,
who chairs both companies, put in a personal appearance at TVB's annual general
meeting yesterday, none the worse for wear amid speculation about his health
following recent hospital visits. But the centenarian kept his lips sealed. TVB
vice president Norman Leung Nai-pang became testy when asked whether Country
Garden (2007) chairman Yeung Kwok-keung had made an offer of at least HK$10
billion to acquire Shaw Brothers, which holds a 26 percent stake in TVB. "You
should not be asking this question, and I will not answer your question either,"
the former Broadcasting Authority chief said. "Your question has little to do
with the business development of TVB." Shaw Brothers is worth HK$9.12 billion on
yesterday's close. Before its announcement, the counter hit a two-year high of
HK$23.50 per share, before closing at HK$22.25, down 2.84 percent. TVB rose 2.29
percent to close at HK$51.30.
A gang who used a catapult and
pulley system to smuggle high-tech goods across the river that divides Hong Kong
and Shenzhen under the cover of darkness has been caught after a major customs
surveillance operation. The gang, composed of Hong Kong and mainland men, were
ferrying the contraband from the Hong Kong side of the Shenzhen River to cash in
by avoiding mainland import tariffs. Customs said they rigged up a pulley system
- using fishing gut to maximise the weight the 300-meter line could carry - high
up in a block of flats on the Shenzhen side which connected to the roof of a
two-storey stone hut in the Sha Tau Kok-Hong Kong boundary area. The audacious
high-wire smugglers only "worked" at night in a bid to avoid detection. But
their lucrative venture smuggling computer RAMs, mobile phones and memory cards
was short-lived - neighbors noticed the noise and alerted the authorities. In a
joint operation, mainland and Hong Kong customs arrested 16 suspected smugglers
on both sides of the border at Sha Tau Kok in the earlier hours of Tuesday after
a week of surveillance. They seized 5,830 mobile phones, 2,100 computer RAMs and
450 memory cards worth HK$6 million. The suspected smugglers comprise four Hong
Kong men, aged between 33 and 38, and 12 mainlanders, aged between 25 and 45.
Head of the intelligence coordination group Leo Sin Wai-sum said the syndicate
rented a flat in a Sha Tau Kok high-rise and used the fishing line to connect to
the roof of a two-storey stone hut near Chung Ying Street on the Hong Kong side.
A catapult was used to shoot the line to the roof of the hut on the opposite
side of the Shenzhen River. Sin said the fishing line could carry a load of
three to five kilograms each time, and the whole smuggling operation only took
10 to 15 seconds. The goods were wrapped in black plastic bags. Officers
estimated it would take about 110 conveyor runs to transfer all the goods from
one side to another. "We believe the group had operated in the area for two to
three weeks at night, taking advantage of the geographical environment in Sha
Tau Kok. Another smuggling ring was smashed in April by a joint Hong
Kong-Shenzhen customs operation. That syndicate had tried to smuggle HK$5
million worth of electronic goods and silver bars through the underground
drainage system near Shenzhen river at Ta Kwu Ling. They used a drain outlet
near a mainland border guard post. Sin said the arrests and seizures showed
cooperation with the Shenzhen Customs was effective and that they will
coordinate closely with them in the future to crack down on illegal activities
on the border. 
The merger and acquisition market for
Hong Kong lenders is getting hotter as several smaller banks have been
approached recently by interested buyers. Amid Wing Lung Bank's (0096) ongoing
proposed sale of a 53 percent stake, Wing Hang Bank (0302) was yesterday said to
be in talks with China Life Insurance (2628) on a potential share sale. China
Life has contacted Wing Hang chairman Patrick Fung Yuk-bun and his family - the
largest shareholder in Wing Hang - to acquire their combined 21.3 percent
interest in the bank, according to 21st Century Business Herald. Wing Hang
shares surged up to 8.9 percent on the news, before easing to close up 5.1
percent. In a statement yesterday after the market close, Wing Hang said there
are no negotiations or agreements relating to any intended acquisitions that
should be disclosed. A China Life spokesperson also denied the insurer was in
talks with Wing Hang. Based on yesterday's closing price, Wing Hang's 2008
price-to-book ratio is 2.9 times - higher than the 1.8 times PB average
acquisition price of banks in recent years. "Existing shareholders of Wing Hang
are unlikely to consider any sale without an attractive premium," an analyst
said. Meanwhile, another local lender, Dah Sing Banking Group (2356), said it
has been approached by potential buyers but there are currently no deals going
on. "Interested parties include Chinese banks and foreign banks," chairman David
Wong Shou-yeh said.
Tycoon Robert Kuok, his family and the Kerry Group have donated 123 million yuan
(HK$139 million) and HK$10 million to people affected by the earthquake in
Sichuan since the tremor struck two weeks ago, Xinhua reported last night.
Meanwhile, the auctioning of a Qing dynasty enamelled-glass brush pot owned by
Taiwanese businessman Robert Tsao raised more than HK$30 million for victims of
the earthquake. The brush pot, made for the emperor Qianlong, fetched HK$65
million at Christie's spring sale at the Hong Kong Convention and Exhibition
Centre. Christie's waived its commission and premium charges for the sale, to a
Taiwanese private collector, and Mr Tsao, who bought the brush pot for HK$67.5
million last autumn, said half of the proceeds (HK$32.5 million) would go to
victims of the quake. Speaking on behalf of the people of Sichuan, the director
of the central government's liaison office in Hong Kong, Gao Siren , yesterday
praised Mr Kuok and his family for their contributions to the disaster-relief
efforts. He said such charitable acts demonstrated the tycoon's patriotism and
his compassion for the quake victims as his fellow countrymen. Mr Kuok has also
donated 4,000 tents to the refugees. Tents are urgently needed for millions of
homeless people and the central government has openly asked the international
community to help. Mr Kuok has pledged to provide help to 500 middle school
students and university undergraduates in central Sichuan, where the earthquake
struck. Each will receive 8,000 yuan per year in study subsidies for seven
years, Xinhua reported. To relay the gratitude of Sichuan people, Mr Gao
yesterday met Kerry Group representative Kuok Khoon Ean, who is also chairman of
SCMP Group, which publishes the South China Morning Post (SEHK: 0583,
announcements, news) , and Ang Keng Lam, executive director of Kerry Properties
(SEHK: 0683). Also yesterday, an Olympic torch donated by Hong Kong squash
player Christina Mak Pui-hin fetched HK$1.8 million at a charity auction
organised by Commercial Radio. The track suit and sports shoes the Asian Games
medallist wore on May 2 for the torch relay in the city fetched HK$13,000 and
HK$7,000 respectively and a headband HK$6,000. Proceeds will go to the Caring
for Children Foundation to help make artificial limbs for children injured
during the earthquake. Mak said she was pleased with the results.
The Southern District Council has
welcomed Ocean Park's decision to modify its expansion plan after residents
complained of the impact it would have on the neighbourhood. Alongside a HK$5.5
billion redevelopment plan expected to be completed by 2012-13, the park is
planning to build three hotels, offering a total of 1,300 rooms and expected to
open in 2011 or 2012. But to ease the fears of residents about their views being
spoiled, it has agreed to reduce the height of one of the hotels, next to its
main entrance, from 27 storeys to seven or eight, according to a spokeswoman. In
order to meet the targeted 660 rooms, the proposed hotel may be split into two
buildings, she said. District councillor Lam Kai-fai said the expansion plans
had won unanimous support from the district council. Mr Lam, who is a planning
and co-ordination consultant, said disturbance to the environment and traffic
flow would be unavoidable, but he urged people to look at the "big picture".
"The development of Ocean Park will be a milestone for Southern District, and
for Hong Kong," he said. "For example, it has contributed to the construction of
the South Island MTR line and it will further boost tourism in Hong Kong." He
added that Ocean Park had been "extraordinarily sincere", as shown in its close
communications with the district council and the promises the park had made,
like changing the hotel plans, limiting tree cutting and creating a larger green
belt than originally intended. But residents remain concerned about the impact
of the proposed hotels. Owners of properties in Orchid Valley, a high-end
development, wrote to Ocean Park chairman Allan Zeman earlier this month to
oppose the construction of a hotel in the lowlands of the park. They said the
hotel would spoil the ambience of the area and worsen traffic congestion. Ocean
Park's spokeswoman said the parameters of the hotels had yet to be decided
before being taken to the Town Planning Board for approval later this year. She
said the park was sympathetic to the concerns of neighbours. 
Hong Kong would gain French
expertise and experience in wine-related trade, tourism and education under an
arrangement with France, the chief secretary said yesterday. The arrangement
will take effect in the summer and is expected to help raise the city's
international profile in its bid to become the region's wine hub. The government
halved wine duties to 40 per cent last year and then scrapped them three months
ago to promote the development of wine-related businesses such as auctions,
storage and distribution of fine wine. Speaking at the Vinexpo Asia- Pacific
trade show opening, Henry Tang Ying-yen said: "Under the arrangement, France
would share with us its experience in promoting wine-related trade and tourism,
as well as providing training on wine tasting. "The market response to zero
duties in Hong Kong has been very positive and very encouraging. "Within two
months, our wine imports increased by over 120 per cent compared to the same
period last year. In terms of value, it has increased by over 200 per cent."
Anne Marie Idrac, French Secretary of Foreign Trade, said she welcomed the
abolition of duties, which had boosted French wine exports. However, she
expressed concern at the "high level of duties on spirits", which has remained
unchanged at 100 per cent. "We hope that the government would consider
decreasing this tax in the next year," she said. Vinexpo Asia-Pacific has a
record 692 exhibitors from 32 countries at the Hong Kong Convention and
Exhibition Centre. In April, expo organisers said zero wine duties were expected
to raise consumption in Hong Kong but it was difficult to assess by how much.
Hu Jintao meets KMT
chairman - General Secretary of the Communist Party of China Central Committee
Hu Jintao met with Kuomintang (KMT) Chairman Wu Poh-hsiung in Beijing Wednesday
afternoon. 
China has
suffered a lot recently – Western media distortion, a train crash and a horrific
earthquake. However, Chinese people are always brave. Glance at the T-shirts in
the streets and you will know. Love-China T-shirts appeared when the Olympic
Torch bearer was attacked in Paris. After a series of incidents, people in the
country, even all over the world, wore the shirts to show their love for China.
Called wenhuashan in Chinese, these T-shirts display the wearer's personality
and ideas. Now with summer coming, aiguo wenhuashan, Love-China T-shirts, dot
the streets. Most of them are white, with red patterns. Some have a heart and a
China map. The Beijing Olympic logo even appears on your chest if you choose the
Olympic series. Others combine a red heart with the Chinese National Flag, with
five yellow stars at the left top. A college student has designed all of the 100
Chinese surnames with the red heart, to show that "all the people in China
support our country whole-heartedly." Each individual can choose his or her own
surnamed T-shirt to wear and add more individualized features. Those who are
interested can visit retailers at Huawei Building in Xidan, Wudaokou Clothing
Market, the clothing markets around the Beijing Zoo and Tianyu Market near
Tuanjiehu. Buying a love-my-country T-shirt online may be more convenient. Many
big online shops, for example, taobao.com, eachnet.com and ebay.com, provide the
product at a very low price and some of the online shop owners claim that they
will donate all the money to areas that suffered in the earthquake. If you are
lucky, you may happen to find some factories online which produce these
T-shirts. Order there if you need large quantities- it will save some
money.Because the patterns and colors are simple, each love-China T-shirt costs
no more than 50 yuan, except those that have really good material and designs.
Some sell for about 25 yuan online, and if you order in large quantities, you
can get as cheap as 8 to 10 yuan each. Cheap and reasonable. So why not show off
your muscles and your love towards China this summer with a T-shirt? 
Workers at the
Beijing Wuzhou Guardtex New Type Material Co Ltd make tents around the clock.
The factory is one of 75 tent makers in China appointed by the Ministry of Civil
Affairs to work day and night to make 900,000 tents before June 20. 
Passengers on 11 airlines will have to pay
37 percent more in fuel surcharges because of rocketing oil prices. The Civil
Aviation Department has also allowed two other carriers to maintain their
current surcharges at the existing levels. A CAD spokesman said passengers who
pay for their tickets before this Sunday will not be affected by the increases
even if they are traveling after then. Cathay Pacific Airways and Singapore
Airlines which currently levy fuel surcharges ranging from HK$125 to HK$518 will
from June 1 charge HK$171 to HK$710. Air China, China Eastern Airlines and
Shanghai Airlines will raise their charges from HK$125 to HK$171 for short-haul
journeys. Air Canada, Air Mauritius and Turkish Airlines will raise their
surcharges from HK$518 to HK$710 while Aeroflot will increase its levy from
HK$508 to HK$620.
Troubled Sun Hung Kai Properties (0016)
chairman Walter Kwok Ping- sheung was removed as chairman of the company at a
crunch board meeting Monday.
Henderson Land Development (0012) will
invest up to 63 billion yuan (HK$70.79 billion) over the next five years in
China as a sign of its confidence in the outlook for mainland property
development. Of that amount, 11 billion yuan will be spent in first-tier cities
and the rest in nine second-tier cities, including Nanjing, Chongqing and
Shenyang. To carry out its expansion plan, the company said it is looking to
acquire more land as none has been added to its reserve since August last year.
Executive director John Yip Ying- chee said the company will invest up to 10
billion yuan to build an International Financial Center in Shenyang, capital of
Liaoning province. The project, with gross floor area of 5.7 million square
feet, will generate a 12 percent yield upon completion of the initial phase in
2012. In response to concerns on the possibility of an earthquake hitting the
city, Yip said the 89-floor commercial building will be able to withstand any
quake measuring up to 8 on the Richter scale. Riding growing wealth and surging
property prices in China, Henderson Land has two other projects due to start
soon, including a high-end establishment with a gross floor area of 13 million
sq ft. This building will cater to both residential and commercial users. Due to
the booming development of Shenyang in the heart of northeast China, Yip
predicts housing prices to pick up. Henderson Land, controlled by Lee Shau-kee,
said last year it expected annual sales in China to reach 10 billion yuan this
year. Lee, the third-wealthiest individual in Hong Kong, holds substantial
shares in several mainland developers, including Country Garden (2007), whose
founder Yeung Kwok-keung has close ties with Lee. 
Chinese President Hu Jintao (L)
shakes hands with visiting President Lee Myung-bak of the Republic of Korea (ROK)
during a welcome ceremony held in Beijing, capital of China, May 27, 2008. Lee
Myung-bak arrived in Beijing Tuesday afternoon, starting a four-day state visit
to China. The two leaders jointly met with the press after their talks. China
and the ROK have reached agreement that Chinese President Hu Jintao will visit
the ROK at a "convenient time" for both sides in the second half of this year.
Lee told the press that he will attend the opening ceremony of the Beijing
Olympic Games this August. South Korean President Lee Myung Bak starts a China
visit today, aiming to boost business with his country's biggest trade partner
and dispel the notion he considers it second to traditional allies the United
States and Japan. A large delegation of top corporate executives will accompany
Lee on his three-day trip, underlining his determination to lift two-way trade
from the US$145 billion (HK$1.13 trillion) it hit last year. "The president will
talk about activating shuttle diplomacy and expanding substantive cooperation in
business and trade," said an official at the Blue House presidential office.
South Korean firms are eyeing a greater share of the Chinese market in sectors
ranging from telecommunications and autos to construction and retail sales. But
although China may push for the start of free-trade talks, Seoul, saddled with a
powerful farm lobby, has so far been reluctant to move in this direction. A
free-trade deal could create a market for South Korean exporters four times the
size of their domestic market, according to some studies. However, officials say
it could cost some 10 trillion won (HK$75 billion) in lost business if there
were a surge in cheap farm imports, so it would be a risky route for the
increasingly unpopular Lee to take just three months into his job. Beijing may
be looking to gauge where Lee, who it does not see as a pro-China leader, aims
to take ties between the neighbors, said Shin Sang Jin, a China expert at
Kwangwoon University in Seoul. "South Korea has put 10 years of effort into
cultivating China as a partner," Shin said. "But Lee has been seen as
unreservedly pro-US even from his Seoul mayor days. China may be looking for
signs that that is changing." The conservative former chief executive and mayor
of the capital, who won the presidency by the biggest margin in the country's
history in December elections, has seen his public support dragged down by a
deal with the United States to resume imports of US beef.
Taiwan's Kuomintang (KMT) Chairman Wu Poh-hsiung(3rd right, front) arrives at
the Hong Kong Airport in the Hong Kong Special Administrative Region (SAR),
south China, May 26, 2008. Wu transited at Hong Kong to fly to Nanjing, the
first stop of his week-long visit to the mainland from Monday. 
A Long March-4C launch
vehicle carrying the Fengyun-3 (FY-3), the second Olympic weather forecasting
satellite, lifts off from the Taiyuan Satellite Launch Center in north China's
Shanxi Province at 11:02 a.m Beijing Time. It entered the preset orbit 27
minutes later. Gao Huoshan, general director of the FY-3 research team, said the
satellite would send back images with the highest spatial resolution of 250
meters and its temperature sensitivity would reach 0.1 degree Fahrenheit. Both
indices were close to the most advanced level of similar satellites in the
world. The highest spatial resolution of existing satellites in China had been
1.1 kilometers, according to Gao. "The 250-m resolution images will be of vital
significance for censoring global climate changes and possible subsequent
natural disasters," said Gao. It would also contribute to key geographical data
for the research on aviation, navigation, agriculture, forestry and
oceanography, he added. The satellite was equipped with a dozen of advanced
detectors such as the infrared scan actinograph and the microwave formatter. It
is able to carry out a three-dimensional, all-weather, multi-spectrum
quantitative detection to acquire data from the ground surface, the ocean and
the space, according to sources with the China National Space Administration.
Experts said the data collected by the satellite would not only facilitate
weather forecast in China but also in other countries. China Meteorological
Administration (CMA), in cooperation with Swedish meteorological authorities,
had established a data collection terminal at the north pole to transmit data
collected by the FY-3, according to an official with the National Satellite
Meteorological Center (NSMC), which is affiliated with the CMA. The World
Meteorological Organization had said it would use data offered by China's FY-3,
Europe's METOP and US NPOESS to detect changes of the atmosphere, the ocean and
the ground surface, said the official. The 2,295-kilogram satellite will provide
accurate and timely information about weather changes to facilitate more precise
weather forecasts during the Beijing Olympic Games, said a CMA official earlier.
The CMA official said the new satellite, with a bigger payload, would provide
medium-range weather forecasts up to 10 to 15 days.
China grappled
with backed-up rivers and reservoirs in danger of collapse, along with looming
storms heralding the start of a rainy season that threatens to compound damage
from the country's worst earthquake in three decades. Two weeks after the
magnitude 8 earthquake centered in Sichuan province, the confirmed death toll
rose to 65,080 yesterday with 23,150 still missing. The government says the
death count may exceed 80,000. To fight the flood risk, 1,800 soldiers arrived
on foot at the new Tangjiashan lake in Beichuan county, carrying explosives to
blast through the debris. The lake is 3.2 kilometers upstream from the center of
Beichuan county. Thousands of people who remained there after the initial
earthquake have been evacuated. With the clearing of weather that had prevented
helicopter flights, heavy equipment was also lifted into the area to help remove
debris. But thunderstorms were forecast for parts of Sichuan late yesterday and
today, said the China Meteorological Administration, adding they "could increase
the risks posed by river blockages in some quake-hit areas." The rains are
likely to put more pressure on dams and reservoirs weakened by the quake. The
storms herald the start of the summer rainy season that accounts for more than
70 percent of the 60 centimeters of rain that falls on the area each year. The
backed-up lake is one of several dozen in Sichuan. In Anxian county, about 50km
south of Beichuan, a landslide blocked the Chaping river, submerging Shuangdian
village. Residents say the lake has been rising by about 2.5 meters a day. "The
water was covering the road, and two days later I could not see the roof of my
house anymore," said Liu Zhongfu, a truck driver who built his two-story wooden
house himself. Water there was backed up 3.2km along the river, said Wang Li,
county Communist Party secretary. 
China, Russia ink joint statement -
President Hu and Russian Prsident Medvedev on Friday signed a joint statement
outlining their positions on major international issues. 
Temporary housing built for residents affected by an earthquake is seen in
Dujiangyan, west of Chengdu, Sichuan Province May 22, 2008. Local authorities in
earthquake-hit areas were requested to build 1 million temporary homes by August
10 to accommodate quake victims of the May 12 earthquake.
The central
government has kicked off a long-awaited overhaul of the world’s largest
telecoms industry, orchestrating a series of leadership changes and directing
the parent of China Mobile (SEHK: 0941, announcements, news) to take over a
smaller rival, sending telecoms stocks soaring on Friday. China Mobile would
take over fixed-line peer Railcom while absorbing executives from rivals, the
opening act of an overhaul that was likely to culminate in fixed-line operator
Netcom merging with wireless player Unicom (SEHK: 0762, announcements, news) ,
analysts and a source briefed by top management at one of the firms said.
Sources with direct knowledge of impending moves said the government was also
orchestrating management changes at the country’s other telecoms providers,
including moving Unicom’s president, Shang Bing, to fixed-line leader China
Telecom (SEHK: 0728) as its party boss. A sector revamp could unleash billions
of dollars in spending for gear-makers such as Motorola and Nortel as newly
merged firms expand networks to compete, and leave the mainland with three
giants offering wireless and fixed-line services. “The next step will be a
reshuffle of Unicom and Netcom,” said DBS Vickers Securities analyst Steven Liu.
“Looking at the management changes ... it’s most likely the reshuffle will
regroup five firms into three.” China Telecom and Netcom will benefit if they
gain entry to a fast-growing wireless market with about 575 million subscribers
- more than the combined populations of the United States, Japan Britain and
Germany - and where China Mobile has a two-thirds share. Shares in Unicom, China
Mobile’s sole rival, and Netcom jumped 11 per cent to 12 per cent before they
were suspended from trade. China Telecom rose 7 per cent. In Shanghai, China
United Telecommunications, part of the Unicom group, gained 5.1 per cent before
it was suspended. China Mobile closed down 3.8 per cent as competition fears
weighed. Market watchers were initially sceptical as a restructuring had been
discussed and debated over the past three to four years. An overhaul of the
sector, dominated by four players that have evenly split mobile and fixed-line
services, precedes the issuance of licences to offer faster third-generation
services - a potential boon for global equipment vendors. But analysts said it
could be at least a year before the central government gave out 3G operating
licences. “The additional spending will come from 3G, but that’s still years
away,” Gartner research director Sandy Shen said. For users, allowing three
providers offers more choice as the country moves toward adopting 3G technology,
which enables faster wireless internet access and multimedia streaming. “It’s
good news for consumers. With more products, lower telecoms fees are
inevitable,” said Richard Wu at consultancy Analysys. For now, investors will
need to grapple with the specifics of a government blueprint that begins with
personnel changes, moves on to policy, and culminates in acquisitions that will
likely link investment banks, government officials and corporations. The central
government had already decided to merge Netcom and Unicom, a source briefed by
top management at one of the firms but not authorised to speak to press said,
creating a full-service provider to compete directly with China Mobile. Analysts
said Unicom might end up selling one of its networks, which ABN Amro valued at
HK$40 billion, to China Telecom as part of an eventual deal. The parent of China
Mobile will take over Railcom, a nationwide fixed-line carrier, Railcom
spokesman Guo Xiaozhao told Reuters. The firm will continue to operate as an
independent firm, but a fully owned unit. China Mobile chairman Wang Jianzhou
will head the combined company. China Mobile would also take in Zhang Chunjiang,
chairman of Netcom, the smaller of the mainland’s two fixed-line carriers, as
its new party boss, Xinhua said, a political appointment. Li Zhengmao, a Unicom
vice-president, would be vice-president at the larger company, Xinhua said,
adding that Netcom senior vice-president Zhang Xiaotie also joined China Mobile.
A China Telecom source said the firm would issue a statement later on Friday
that would touch on personnel changes. A source with listed China Mobile said
its parent was working on a separate announcement, without elaborating. China
Railway (SEHK: 0390) Communication has assets of
42.4 billion yuan (HK$47 billion) and employs 72,000 staff across China. The
firm grew revenue 7 per cent to 16.6 billion yuan last year, but profit plunged
96 per cent that same year to 10 million yuan because of heightening
competition, Railcom’s Mr Guo said.
Jet Li takes part in
relief work in quake-hit Sichuan - Renowned kung fu star Jet Li arrived in
Chengdu on May 17 and took part in relief activities for the May 12 quake mainly
hitting Sichuan. The One Foundation Project, initiated by Jet Li in 2007, has
raised 42.7 million yuan for quake relief by noon of May 17. 
Bus passengers will have to dig deeper into their pockets from next month but
the bus companies say its not deep enough. The new fares with hikes between 2
percent and 7.24 percent are effective from June 8. About 85 percent of
passengers will have to pay an extra 40 cents a trip, Secretary for Transport
and Housing Eva Cheng Yu-wah said after yesterdays Exco meeting that approved
the hikes. But a government source told The Standard that fares of most daily
routes will rise by 70 cents, with 88 percent of KMB passengers paying an extra
40 cents. 
Debate rages on police
station spruce-up plan - A HK$1.8 billion facelift for the old Central police
station site has the support of most sectors of the community but not local
residents and district councilors, according to the findings of a six-month
consultation process.
A senior
official on Tuesday reiterated the government's call for more tents to shelter
an estimated 5 million people left homeless by the May 12 earthquake. About
280,000 tents have been dispatched to the quake-hit areas, but they are far from
enough, Jiang Li, vice-minister of civil affairs, told a press conference held
by the State Council Information Office on the progress of relief work. The
ministry has ordered 700,000 tents from factories, which are working at full
capacity to meet demand, she said. Meanwhile, 1 million temporary shelter units
will be built within three months, the disaster-relief headquarters of the State
Council said in a statement on Tuesday. The government is setting up temporary
housing for quake victims unable to find shelter with relatives or friends, but
there is a "desperate need for tents" to accommodate them, said Jiang. She said
the government has purchased enough materials to make 800,000 makeshift sheds
and is pressing for the construction of mobile homes. "We will do our utmost to
ensure that homeless people find a place to live." The government will procure
and deliver more tents and awnings to quake-affected provinces, the State
Council's earthquake relief headquarters agreed at a meeting on Tuesday. The
meeting, presided over by Premier Wen Jiabao, planned to collect 40,000 tents to
distribute in disaster areas before the end of May and send 30,000 tents each
day afterwards along with a total of 800,000 awnings in June. Tents and awnings
have been reported as the most wanted materials by more than 110,000 military
and civilian rescuers. All forms of transport have been told to give priority to
tent and awning shipments. Wen pledged to transport 6,000 units of temporary
housing to the quake areas in the next two days, 250,000 units by the end of
June and 1 million units within three months. He also urged the Water Resources
Ministry to send experts to dams and reservoirs in quake-hit areas for 24-hour
patrols since the weather forecast is for heavy rains in the next 48 hours.
Jiang also said on Tuesday that the government will ensure that the survivors
have food, drinking water and tools to start the reconstruction of their homes.
"Even after generous donations, the disaster is so great that victims still face
a challenge finding accommodation," she said. To ensure donations reach the
quake-hit regions timely, the authorities have imposed rigid rules to make their
disbursal "effective and transparent". Donations reached 13.9 billion yuan ($2
billion), with 12.5 billion yuan in cash and 1.4 billion yuan in relief
materials by Tuesday noon, according to the State Council Information Office.
Apart from tents, 783,984 cotton-padded quilts, 1,783,600 items of cotton-padded
clothes and food and drinking water worth 218 million yuan have been sent to the
disaster areas, the Ministry of Civil Affairs said. The ministry, along with the
Ministry of Finance and the National Audit Office (NAO), will jointly supervise
the use of donations, Jiang said. The NAO pledged last week it would audit the
use of cash and goods to ensure resources were strictly managed and used
properly. The Ministry of Civil Affairs is making public the allocation of the
donations every day, Jiang said. But she added that as grass-roots governments
are still focusing on rescuing lives and accommodating the relocated people as
"they need time to publicize their use of the donations". Pang Chenmin, deputy
director-general of the disaster-relief department at the Ministry of Civil
Affairs, said that all organizations receiving donations are banned from levying
"administrative or operational fees". "I assure you we will efficiently and
completely deliver your donations to the quake-stricken areas," said Pang. "We
also welcome the public, including the media, to supervise the use of
donations," he said. 
Members of Japanese
medical team walk to board at the Narita airport in Chiba Prefecture, Japan, May
20, 2008. A 22 member Japanese medical team flew to Chengdu, capital of the
quake-hit southwest China's Sichuan Province on Tuesday.
Members of Russian
medical team unload relief materials from a chartered plane carrying a Russian
medical team in Chengdu, capital of the quake-hit Sichuan province, May 20,
2008. Along with the team arrived a mobile hospital, vehicles and relief
materials. Another 36-tonnes of humanitarian assistance materials from Russia
will arrive in the city on Tuesday afternoon including medicines weighing 7
tonnes. 
The death toll in China's major
earthquake increased by 1,278 to 41,353 as 12 p.m. Wednesday, according to the
State Council Chinese mainland.
Donations related
to quake made less taxing - China's tax authority has cut or waived a tax levy,
offered a tax refund, and reiterated the tax concession on donations related to
the earthquake in Sichuan Province as means of helping to support victims.
Hong Kong-born Jackie Chan (L) and Emperor
Group chairman Albert Yeung Sau-shing have contributed 10 million yuan. Chinese
entertainment stars are opening their hearts and wallets to help victims of
Sichuan's May 12 earthquake.
Country Garden
(2007) chairman Yeung Kwok-keung is the front-runner in the bidding for Run Run
Shaws indirect stake in Television Broadcasts Ltd (0511), sources told The
Standard, after he secured HK$3 billion in financing from Lee Shau-kee, top
left, that gives him a clear edge over the other suitors. 
A lawmaker has called on the government to update its
construction noise- control laws as government data show there has been no
improvement in recent years. However, a representative of the construction
industry maintains the ear- splitting decibels with which residents are
bombarded six days a week are the price that must be paid for economic
development. General construction work between 7am to 7pm from Monday to
Saturday is not subject to any controls. But the early start-time has become the
subject of complaints, especially following the introduction of the government's
five-day working week last year. IT programmer Trupiti Patel, 26, is one of
those unable to bear the noise. He does not finish work until 9pm and goes to
sleep around 1am but is awakened early due to the noise. "I have been
disappointed by the government's response. They say the developers are allowed
to work at these times. But we have to change the times because this is not
acceptable. The people are being ignored at the expense of development," Patel
said. He urged the government to change the regulations so that construction
work starts at 8.30am and is restricted to half-a-day on Saturday. Lawmaker Choy
So-yuk called for the Noise Control Ordinance introduced in 1989 to be amended.
She said the ordinance was brought in to restrict percussive piling, which is no
longer commonly used due to advanced technology. Choy said construction
companies could carry out less noisy chores between 7am and 9am. "Different
professions require different work patterns and we must amend the laws to suit
these needs," Choy said. But Nicholas Yeung Shu-yan, chairman of the
Construction Industry Institute and a member of the Provisional Construction
Industry Co-ordination Board, believes the noise is a price the city must pay
for its economic development. "I do not think construction noise is that much of
a problem. People are more concerned with pollution," Yeung said. "We have to
bear this in a way because of the prosperity of the city." The Environmental
Protection Department received 1,248 noise-related complaints in 2007, 1,316 in
2006 and 1,106 in 2005. Forty-seven firms were prosecuted in 2005 and 50 in
2006, with fines imposed of up to HK$120,000. The department has reduced
percussive piling times to three to five hours a day and general construction
noise must be below a range of 45 to 70 decibels. 
Billionaire investor Lee Shau-kee said his investment
strategy will switch to aggressive from defensive in August, and he forecasts
the Hang Seng Index to hit 30,000 by that time. "The present moment might not be
a good chance to enter the market. As I mentioned before, the right chance to
buy more stocks is when [the Hang Seng] is at about 22,000," Lee told reporters
yesterday after the annual general meeting of Hong Kong and China Gas (0003).
Lee said the market will be "quiet" in summer, when stocks' performance tends to
be unsatisfactory. "I will rather be defensive instead of aggressive," he said.
Lee expects the blue-chip index will hover around 27,000 in the summer. "The
investment environment will improve in August. When opportunities come, I will
invest more." Recently, Lee added Datang Power (0991) to his long-term
investment portfolio, which also includes CITIC Pacific (0267), Country Garden
(2007) and China Overseas Land (0688). "They are not alright [for reaping
profits] in the coming few months. You've got to hold these stocks for two to
three years," he explained. Meanwhile, Lee sees continuing weakness in the US
dollar in the coming 12 months. "Three years ago we already converted the
currency of our assets into the Australian dollar when it was at about 70 US
cents. With the Aussie dollar having increased to about 95 US cents, the value
of our assets has risen about 30 percent," said Lee.
Taiwan's new
President Ma Ying-jeou called on Tuesday in his inauguration address for a
resumption of dialogue with the mainland aimed at bolstering ties and ensuring
regional peace. Taiwan swears in a new president today who promises a clean
break with his predecessor's confrontational stance toward the mainland. The
soft-spoken Ma Ying-jeou contrasts sharply with the combative outgoing
president, Chen Shui-bian. Ma has pledged to reinvigorate Taiwan's sluggish
economy and stabilize relations with Beijing. Chen pushed policies that, if
taken to their logical conclusion, would have led to an independent Taiwan. The
policies angered Beijing along with Washington, which saw risky brinkmanship. Ma
favors cooperation. He wants to hitch Taiwan's economic wagon to the mainland
boom and sign a still- undefined peace treaty with Beijing. "Taiwan in the
future will be a responsible stakeholder, meaning a peacemaker instead of a
troublemaker," he said last week. Even before taking office, his vice president
met with President Hu Jintao on Hainan island and won agreement to allow a major
expansion of mainland tourist traffic to Taiwan. They also discussed direct
flights.
Senior Chinese leaders
including Hu Jintao, Wu Bangguo, Wen Jiabao, Jia Qinglin, Li Changchun, Xi
Jinping, He Guoqiang and Zhou Yongkang mourn during a silent tribute to the dead
in the earthquake hitting southwest China's Sichuan Province, in Beijing,
capital of China, May 19, 2008. Former President Jiang Zemin also stood in
silence, separately, while Li Keqiang, another senior Chinese leader, observed
the period of silence in Beichuan County of Sichuan on May 19.
Chinese people
mourn for quake victims during a silent tribute at the Chinese Embassy in
Singapore May 19, 2008. China began on May 19 a three-day mourning for the
victims of the 8.0-magnitude quake hitting southwest and northwest China on May
12.
Soldiers mourn during a
silent tribute at the rescue site in Yinhua town of Shifang, southwest China's
Sichuan Province, May 19, 2008. China began on May 19 a three-day mourning for
the victims of the 8.0-magnitude quake hitting southwest and northwest China on
May 12.
Medical workers with
Renmin Hospital of Guilin mourn during a silent tribute in Guilin, southwest
China's Guangxi Zhuang Autonomous Region, May 19, 2008. China began on May 19 a
three-day mourning for the victims of the 8.0-magnitude quake hitting southwest
and northwest China on May 12.
Citizens and tourists mourn during a silent tribute in
Tian'anmen square in central Beijing, capital of China, May 19, 2008. China
began on May 19 a three-day mourning for the victims of the 8.0-magnitude quake
hitting southwest and northwest China on May 12.
People mourn during a silent tribute in Xining, capital of
northwest China's Qinghai Province, May 19, 2008. China began on May 19 a
three-day mourning for the victims of the 8.0-magnitude quake hitting southwest
and northwest China on May 12.
The death toll from the devastating earthquake in southwest China's Sichuan
Province rose to 40,075 nationwide as of 6 p.m. Tuesday, while 247,645 people
were injured.
Chinese
rescuers carry a woman to safety after getting her out of the rubble of a market
in Beichuan, Sichuan province, May 19, 2008. The woman was saved about 164 hours
after a killer earthquake struck a week ago. 
Citizens mourn around candles during a memorial ceremony in Nanning, capital of
Guangxi Zhuang Autonomous Region, May 19, 2008.
Film star Zhang Ziyi (L) has personally donated
one million yuan (140,000 U.S. dollars). Chinese entertainment stars are opening
their hearts and wallets to help victims of Sichuan's May 12 earthquake.
Hong Kong stockbrokers and fund companies
have geared up to capture investment opportunities in Taiwan that they expect to
emerge when Ma Ying-jeou becomes president on Tuesday. Taiwan's stock market has
lagged behind its regional peers, with its benchmark index now at about 8,000
points, well off its peak of 12,000 some years ago. The reason is simple - for
the past eight years, government policy has been cold, if not hostile, towards
Beijing, which has hurt the local market. While Mr Ma will not form his new
government until Tuesday, the president-elect has already declared he would like
to relax restrictions on mainland tourists visiting Taiwan and that he wants
direct transport links with the mainland. His well-known views explain why the
Taiwan stock market has risen 12 per cent this year. By comparison, its peers
have been falling because of concerns over the subprime crisis and a US
recession. The Shanghai Composite Index has dropped 27 per cent, the Hang Seng
Index has fallen 8 per cent, South Korea is down 13 per cent and India's market
has been slashed by 23 per cent. "Investors have a positive outlook on the
Taiwan market because they believe Mr Ma's new political and economic policies
will ease travel and investment restrictions across the Taiwan Strait," Stephen
Hui Chiu-chung, chief executive of OSK Asia, said. OSK believes the Taiwan stock
market may rise sharply, even up to 13,000 by the end of this year. Several
brokerages, such as KGI Asia, the Hong Kong arm of the leading Taiwan brokerage
KGI Group, have held seminars for thousands of Hong Kong investors in the past
two months to introduce Taiwan stocks. Phillip Capital Management director Louis
Wong Wai-kit said his firm had seen a growing number of Hong Kong investors
interested in trading Taiwan securities. "I believe the Taiwan index will go up
to 9,500 or 9,800, but it would find it difficult to pass the 10,000 mark," Mr
Wong said. He believes infrastructure, utility, tourism, finance, real-estate
and transportation stocks will be the most actively traded by investors, since
the companies in these sectors are likely to benefit the most from Mr Ma's new
policies. Christopher Cheung Wah-fung, chairman of the Hong Kong Securities
Professionals Association, said it was natural for Hong Kong investors to chase
Taiwan stocks. "Taiwan and Hong Kong have the same cultural and language
background," he said. "Hong Kong investors are familiar with many Taiwan
companies. "We didn't invest in the Taiwan market before mainly because the
outgoing government's policies have hurt Taiwan's relationship with the
mainland. Mr Ma's new policies have given new hope to investors." Besides
focusing directly on the stock market, many are investing through Taiwan funds
managed by large houses such as JF, Fidelity and Schroders. Fund-industry
experts say the size of Taiwan funds in general has increased by 30 per cent in
the first quarter. JF, the largest Taiwan fund in Hong Kong at US$1.3 billion
now, has seen a US$300 million inflow since January, according to Peter Tang of
the JF Taiwan Fund. But he also warned that, since the Taiwan market has risen
20 per cent, investors should be careful not to chase the rising stocks blindly.
"I will say the expectations have been very high about Mr Ma, so the market has
been raised in advance, even before he takes office," he said. "It is still not
known if he can deliver on his promises. But then, I expect his team will be
able to deliver, since the new people slated for the cabinet are men and women
of action." Hang Seng Bank (SEHK: 0011, announcements, news) in March also
launched a Taiwan index fund, which has already attracted US$80 million in
investments, according to Andrew Fung Hau-chung, general manager and head of
investment and insurance at Hang Seng Bank. "We have a positive view on the
economic outlook and corporate earnings in Taiwan under the new government," Mr
Fung said. Mr Ma has proposed a range of construction projects worth NT$4
trillion (HK$1.02 trillion) for logistics centres and ports over the next eight
years. Mr Hui believes these projects will need to raise funds. In addition, Mr
Ma's economic reforms are likely to boost the island's economy and increase the
need for Taiwanese companies to list on the stock market to raise funds. This
month, a Hong Kong Securities and Futures Commission research paper showed the
city was a favourite market for Taiwanese firms to list their shares because of
its liquidity and international exposure. There were 24 new Taiwanese listings
in Hong Kong raising HK$30.8 billion from 2005 to 2008, more than double the 11
firms that raised HK$16.7 billion during the period 2002 to 2004, the SFC report
said.
TV fund-raiser helps push effort
for quake past the HK$1b mark - Hong Kong citizens have already contributed a
record of more than HK$1 billion to help victims of the Sichuan earthquake.
During a three-hour fund-raising show Operation Relief for Sichuan Earthquake on
TVB (SEHK: 0511) last night, several hundred million dollars was added to the
estimated HK$800 million collected since the earthquake struck. All proceeds
from last night's show will go to the Home Affairs Department and the Hong Kong
Red Cross, World Vision, Oxfam, the United Nations Children's Fund and the
Salvation Army. The fund-rasing campaign last night featured about a hundred
entertainers, including Andy Lau Tak-wah, Jacky Cheung Hok-yau and Aaron Kwok
Fu-shing, all dressed in white T-shirts for the sombre occasion. Movie star Liza
Wang Ming-chuen, who hosted the show last night, said she had felt hopeless
after watching the news of the disaster. "I don't know how to describe my
feelings," the iconic actress said. "Sichuan is a million miles away and what we
can do is so little." Acting chief executive Henry Tang Ying-yen urged all
members of public to show their love and support to those suffering on the
mainland. "Huge resources will be needed for rescue and reconstruction works in
the affected areas. I am calling on Hong Kong's people to help, no matter how
little they can give." The donations have already exceeded the HK$600 million
which was collected for victims of flooding in eastern China in 1991. Before the
show, TVB chairman Sir Run Run Shaw contributed HK$100 million. A number of
businesses also contributed significant amounts to the relief effort. The Bank
of China (Hong Kong) donated HK$10 million while HSBC (SEHK: 0005,
announcements, news) presented a cheque of 10 million yuan (HK$11.16 million)
during the telecast. Other donors included the Liberal Party, which donated
HK$12 million, and the Hang Seng Bank (SEHK: 0011, announcements, news) and
Cathay Pacific (SEHK: 0293), with HK$2 million. Meanwhile, the Hong Kong Kidney
Foundation established a fund with a donation of HK$500,000. The money would be
transferred directly to a dialysis centre in Sichuan. The Chamber of Hong Kong
Computer Industry pitched in with an auction which raised nearly HK$30,000 for
the Hong Kong Red Cross.
President Hu renews call to save
lives - Chinese President Hu Jintao urged rescue teams to reach remote villages
in the Sichuan's quake areas as soon as possible. 
Members of
the Japanese rescue team mourn for a victim at Qiaozhuang Town of Qingchuan
County in the quake-stricken Sichuan Province, May 17, 2008.
A China Unicom
service center is seen in this file photo. China Unicom is working
round-the-clock to restore its base telecommunication station in Sichuan
province. Free domestic calls are being offered to users in the province.
Run Run leads way as hearts and wallets
open to disaster victims - Entertainment tycoon Sir Run Run Shaw yesterday
became the most generous individual Hong Kong donor to relief efforts in
earthquake-devastated Sichuan when he pledged HK$100 million for rebuilding
schools in the province. "Mr Shaw deeply cares about the education of young
people," TVB general manager (broadcasting) Stephen Chan Chi-wan said. The
donation from the Shaw Foundation will be presented to Central Government
Liaison Office representatives tomorrow during a TVB relief special. Shaw's
Television Broadcasts is mobilizing its 5,000 local and overseas staff to raise
funds while the station's artistes will conduct fund-raising drives at 14
locations today and tomorrow. Hong Kong artistes will also team up with those in
Taiwan and the mainland to ensure orphaned earthquake survivors can continue
with the schooling. Hong Kong Performing Artistes Guild president Alan Tam Wing-lun
said a relief committee would be set up to look after the livelihood and
schooling of children orphaned by the quake. Tam will be on the Hong Kong region
committe