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China.Hawaii Chamber of Commerce ® "Hawaii-China Guan Xi, We Get Things Done™" - Trade Advocacy Organization
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Major Exhibitions & Conferences in HK
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Hong Kong, China & Hawaii Biz*
Do you know our dues paying members attend events sponsored by our collaboration partners worldwide at their membership rates - go to our event page to find out more! After attended a China/Hong Kong Business/Trade Seminar in Hawaii...still unsure what to do next, contact us, our Officers, Directors and Founding Members are actively engaged in China/Hong Kong/Asia trade - we can help!
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July 30 - 31, 2008
July 28 - 29, 2008
Implementing regulatory policies such as the competition law or minimum wage could undermine Hong Kong's economic growth, the chairman of the Hong Kong General Chamber of Commerce has warned.
Former head of the civil service Joseph Wong Wing-ping has criticized the haste with which the maid levy waiver is being brought in and the fact it doesn't cover employers of domestic helpers with existing contracts. The mainland's austerity measures in the second half will involve a twin- pronged initiative - steady economic growth and curbing inflation. Our first task is to ensure steady and rapid economic growth," said President Hu Jintao at the Politburo's latest meeting. "We also need to effectively control prices from rising too fast." As Standard Chartered economist Frances Cheung sees it: "The central government has changed its focus from fighting inflation to slowing growth." China's gross domestic product growth rate slowed to 10.4 percent in the first half from 11.9 percent last year. The People's Bank of China, in its second-quarter meeting yesterday, said it will use various monetary tools to create a sound environment for the country's stable and relatively fast economic growth. But Standard Chartered does not expect any interest rate hike this year. "China will continue to tighten liquidity but with quantitative tools such as reserve requirement ratio hike and the issue of government bonds," said Cheung. TDTZ Debenham Tie Leung's head of residential properties for China, Alan Chiang Sheung-lai, said mainland developers may cut prices on unsold units amid a tight lending market. "Some developers in Shenzhen and Shanghai have already lowered prices of small and medium units by 15 percent," said Chiang. As Cheung sees it, "Initiatives mentioned by Hu are rather general. But the message that the government may not hike rates will improve market sentiment a bit." But Cheung does not expect the new round of austerity measures to have a great impact on the economies of Hong Kong and the mainland. Yuan appreciation will remain unchanged at a 6.65 percent growth this year, according to Standard Chartered. "But yuan growth will be slashed to 2 to 3 percent next year as we expect the US dollar to strengthen in the first two quarters of 2009," said Cheung. Shares of Hong Kong-listed Macau plays have taken a beating recently, and it is becoming clear that American plays in the SAR casino market have the long- term advantage. HSBC Holdings (0005) is expected to report next week that first-half profit before tax fell 27 percent year-on-year to US$10.3 billion (HK$80.34 billion), according to the average forecast of four analysts surveyed by The Standard, because of expenses for bad-loan provisions in the United States and Britain.
China's trade deficit down with ASEAN - China's trade with ASEAN members amounted to $95.55 billion in the first five months of this year, a growth of 26.9 percent over the same period of last year.
Chinese economy expected to maintain stable, fast growth - The Chinese economy was likely to maintain stable and fast growth this year, despite being beset with problems and uncertainties, as fundamentals of the economy remained unchanged, Yao Jingyuan, National Bureau of Statistics chief economist, said on Sunday.
About 67,000 taxicabs in the Olympic host city of Beijing will soon be able to take payment with pre-paid public transport cards, making traveling in the city more convenient. From Aug. 1, taxi passengers can pay either in cash or with the IC card, which has been widely used for the city's buses, subway and even some convenience stores. Taxi fares will be deducted from the credit on the card, which can save both the driver and the passenger from hassles such as giving small change. The Beijing Traffic Management Bureau has asked all taxi drivers to have their meters updated to allow the card payment. This is seen as the latest step to encourage commuters in the city of 17million to use public transport rather than private cars, particularly before the Olympic Games begin on Aug. 8. The capital implemented an odd-even alternate-day ban on 3 million privately owned motor vehicles on July 20 in order to guarantee smoother traffic flows and cleaner air during the Olympics. This has prompted more Beijingers to use public transport, which already offers discounts for public transport card holders. The IC card has gained increasing popularity since it was launched in April 2006 to replace traditional paper tickets. About20 million cards had been issued so far, the Beijing Morning Post reported. Many taxi drivers had resisted the cards, claiming they were too time-consuming as all charged fares would first go to the taxi company before they are returned to the drivers. But the authorities had promised drivers payment within three days, the newspaper said. July 25 - 27, 2008
Leung in vow to end levy chaos - The
waiving of the domestic helper levy was not meant to cause chaos, Executive
Council convener Leung Chun-ying said yesterday, while assuring that all parties
can fairly soon enjoy the concession.
$1.5b Pacific Place revamp - Swire
Pacific (0019) plans to spend about HK$1.5 billion on refurbishing Pacific Place
in Admiralty. The mall will remain open for business throughout the project
period.
There were 169 merger and acquisition (M&A) deals in China in the second quarter, up 225 percent from the first quarter, according to a report released on Monday by investment research firm ChinaVenture. Of these 169 deals, 129 disclosed the value, which totaled 15.5billion U.S. dollars, up 137 percent. ChinaVenture figures show M&A deals were most common in manufacturing, comprising 22.4 percent of the total cases, while property had the biggest share by value, or about 46 percent of the total. Cross-border mergers expanded appreciably, with 15 cross-border M&A deals by Chinese companies in the second quarter, up 24.7 percent. The report listed reasons for the M&A wave. One was a surge in corporate profits in 2007, which, combined with the proceeds from initial public offerings, provided companies with capital. Another reason was the rising price of raw materials, which motivated Chinese strategic investors to seek deals in energy and mining.
July 23 - 24, 2008
Secretary for Labor and Welfare Matthew Cheung Kin-chung and immigration officials have agreed to start the waiver on the domestic helpers levy a month early, beginning August 1. A mechanism designed to simplify the registration of property could instead give rise to an avalanche of litigation between buyers and sellers on the validity of property transactions, the Law Society has warned. he new mechanism will enable lawyers to save time when verifying property ownership and claims and this, in turn, will lead to reduced conveyancing fees, Law Society president Lester Huang said yesterday. But, he said, there are glitches in the government's amendments which if not ironed out could result in booby traps. The issue in question comes under the Land Titles Ordinance, with amendments set to be discussed in the new legislative term. The ordinance was passed in 2004, but the long-awaited registration system has been on hold pending amendments. In theory, the new mechanism guarantees indefeasible titles to those included in the register. In layman's terms, it means lawyers and buyers only need to rely on the last record of registration to proceed with transactions. The conventional system depends on proof of an unbroken chain of titles leading back to a good root of title. But the law has yet to address the risk of legal disputes if a third party suddenly challenges the titles and the validity of the registration. Huang said land titles in the New Territories, with its long history of heritage and culture, can become vulnerable to legal challenges. "Lawyers will have to fully rely on the government registration to determine if the properties are in good title to prepare the transactions for buyers or sellers," he said. However, clients will point an accusing finger at lawyers if a third party suddenly emerges to claim ownership. "This has happened from time to time," Huang said, adding on such occasions the government has failed to back lawyers. "There will be risks and uncertainties, which are not good for the whole community and the property market if people have to spend more on legal costs when such disputes erupt." Huang said the current practice of verifying the titles and deeds is cumbersome but reliable. The government admitted the flaws in its paper to the Legislative Council in May last year. "Substantive amendments have to be made to the Land Titles Ordinance before it can commence," the government paper read. The Law Society has made its fourth submission to address the potential "booby traps" but nothing has been heard from the Development Bureau so far. Legislator Abraham Shek Lai-him, who represents the real estate and construction constituency, raised the issue again in March, with the bureau saying the amendment bill will be tabled in the Legislative Council's coming term. "It has dragged on too long," Huang said. "Our lawyers who have worked on this subject have either retired or are no longer in the same official post in our organization to oversee the matter. "We want to have the issue addressed as early as possible to protect the interests of the profession and also all parties in property transactions."
Soaring fuel prices have forced the parent company of Kowloon Motor Bus to issue its first profit warning in a decade. The city's largest bus operator said yesterday it might have to remove less popular routes to cut costs. Transport International Holdings (SEHK: 0062) - which netted a profit of HK$3.8 billion last year from businesses including luxury property development Manhattan Hill, KMB and its related TV channel Roadshow - warned shareholders and potential investors to brace for a "disappointing" financial result for the first half of this year due to the impact of rising fuel prices on the company's core franchised bus business. The price of oil soared by nearly 80 per cent year on year to US$136 per barrel during the first half of this year. The forecast excluded non-recurrent income from the sale of properties. The city's other major bus operator, New World First Bus, which also owns Citybus, said it had been suffering losses over the past few months despite a fare rise of up to 5 per cent allowed by the government and was also looking at cutting routes. Itineraries overlapping with MTR lines - such as those in Tseung Kwan O - were likely to be the first to go. Figures from New World First Bus showed that passenger numbers on the seven routes in Tseung Kwan O had dropped by 52 per cent between 2002, when the rail extension had not yet reached the area, and last August. Sai Kung district councillor Leung Li, who represents Tiu Keng Leng, said bus companies should expect vigorous protests from residents if routes were cut. "The Transport Department already raised the issue in March," he said. "It allowed New World to monopolise the area's bus services and now they want to cancel it altogether? That would be unacceptable." Both operators said they were negotiating alternatives with the government - including the introduction of a fuel surcharge. A New World spokeswoman said: "We hope the government will help lower our expenses through all possible measures, like imposing a fuel surcharge, exempting us from government rent, stamp duty, tunnel tolls, or subsidising our electricity bills and fuel expenses." But the Transport and Housing Bureau repeated it was the government's policy not to subsidise private businesses with taxpayers' money. Transport expert Hung Wing-tat blamed the operators for shifting their business risks onto passengers, and criticised Transport International Holdings' profit warning as a gimmick to designed to put pressure the government. "My guess is their profit margin has just narrowed but is not suffering a deficit, because they excluded all profitable businesses like Roadshow and the sa of luxurious Manhattan Hill apartments," he said. But a KMB spokesman said Roadshow accounted for only a fraction of the company's income, while most Manhattan Hill flats had already been sold. John Woo’s visually dramatic new film Red Cliff – the first historical film about the battle of Chibi – is proving popular with cinemagoers in Hong Kong. The acclaimed director’s 160 minute film stars veteran Hong Kong actor Tony Leung Chiu-wai, Japanese star Takeshi Kaneshiro, Taiwanese actor Chang Chen and Taiwanese model Lin Chi-ling. The script was co-written by Chan Hkan, Kuo Cheng and Sheng Henyu. The cost of making Red Cliff was a staggering HK$622 million. It is an important addition to Woo’s stellar career which includes such films as A New Tomorrow in 1986, The Killer (1990), Hard Boiled (1992), and Mission Impossible 2 in 2000. Red Cliff is likely to awaken more interest in China’s turbulent history. As Perry Seibert, notes, writing in the All Movie Guide, the film chronicles a particularly significant episode in history. “John Woo’s historical drama Red Cliff re-creates the legendary Chinese battle from 208 AD that led directly to the end of the Han Dynasty. “The film charts how different factions joined forces to create this turning point in history,” Seibert says. The battle of Chibi – which took place in Hubei province – was possibly the most resounding military achievement in Chinese history. The battle was won through guile and brilliant military tactics, rather than brute force. The famous novel The Romance of Three Kingdoms , about the battle is familiar to Hong Kong people. Indeed, it has now inspired many video games and comic books. The story had long appealed to the 61-year-old mainland-born director, who spent most of his early career in Hong Kong. “ Red Cliff took 18 years in envisioning and almost a lifetime of dreaming,’’ Woo recently told reporters in Korea. “I was a diehard fan of the novel and I loved all the characters. When I was 10, I used to stay awake at night drawing characters on my window and use a lamp to project them on to the wall,” he explained. The film starts with the machinations of an ambitious prime minister Cao Cao (Zhang Fengyi) – waging war in China’s southern kingdoms, Xu and Wu. But the army’s top negotiators, Zhuge Liang (Takeshi Kaneshiro) and Zhou Yu ( Leung) from Xu and Wu decide to become allies. Together, they resist Cao Cao’s plans. The films vividly portrays the characters of the leading protagonists: Cao is ruthless and arrogant, while Zhou and Zhuge are wise and judicious. The fight scenes are memorable – particularly the 20-minute-long battle before a stunning landscape. The array of military pageantry, uniforms and weapons is realistic and impressive. Leung’s talents are well-known to Hong Kong audiences, but Takeshi Kaneshiro’s acting is also impressive. He is very convincing playing Zhuge in a lively, yet sometimes ironic way. Takeshi told reporters: “I have read up on different versions of the character and could not decide how to play this role, whether it should be a Zhu Ge Liang that all of you were familiar with or one that was totally different but as an actor, I would be able to do what the director wants. What outsiders think would not affect me.” For Taiwanese model Lin Chi-ling, this is her first big-screen debut as Zhou Yu’s beautiful wife. Casting changed several times. Leung initially turned down the role of Zhuge Liang. He said this was because he believed he did not have enough time to prepare properly for the role. But after acclaimed actor Chow Yun-fat abandoned the film, Leung re-joined to replace Chow. Leung said he had not read The Romance of the Three Kingdoms before. “But I have studied Chinese history... in the film there is a lot of dialogue and, initially, I was a bit anxious that I could not do it well,’’ he told reporters. “But the director gave me an insight of what it would involve. This Zhou Yu here would have a bit more humour and he added scenes of him playing music,” he said. Red Cliff has impressive — but particularly dangerous stunts. Indeed, the film made headlines because a stuntman died and six was injured in a fire accident when shooting the film in June. The film is a tribute to Woo’s considerable experience and knowledge of film making. The Movie Guide notes Woo can draw on many influences. “Influenced by Western cinema, Woo grew increasingly dissatisfied with the Hong Kong production industry, and decided to begin making his own films in 1968...“[By the 1970s] he drew great inspiration from the new breed of American filmmakers including, Sam Peckinpah and Stanley Kubrick, the hypnotic violence of their work leaving a profound effect.” Woo also had considerable experience making martial arts films, having once worked under acclaimed director Chang Che in Hong Kong. Red Cliff is filmed in putonghua has subtitles in both Chinese and English. It has already drawn big audiences on its first day of release in China, Hong Kong and Taiwan. In Hong Kong, there was HK$2 billion on the first day. However, it is only the first part of the epic story. The next part of the saga will be shown in a new film – to be released in December.
Housing market undergoes adjustment
- China's massive housing market is undergoing adjustment -- but experts believe
a healthy market may emerge, after tightening mortgage policy put a sudden brake
on the market. H1 tax revenues up 30% on surge in corporate profits - China's tax revenues grew 30.5 percent year-on-year to 3.26 trillion yuan ($472 billion) in the first half of 2008, the State Administration of Taxation (SAT) said on Tuesday.
Troops pull out of quake areas - China has begun withdrawing troops from three provinces hit by the massive May 12 earthquake, as authorities shift their focus from rescue to reconstruction work. July 21 - 22, 2008
HSBC courts China sovereign fund - HSBC (0005) is courting China Investment Corp as a potential investor as the sovereign wealth fund prepares to make up to US$90 billion (HK$702 billion) in foreign equity investments, according to British media reports. More than 400 transport workers began striking outside the headquarters of Watsons Water in Tai Po Industrial Estate on Monday morning.
To commemorate the 2008 Olympic Equestrian Events – to be held in Hong Kong in August – Hongkong Post on Monday said they would issue a set of special stamps and other products. "The special set of stamps, together with associated stamp products will be on sale on August 9 — the first day of the equestrian events," said a spokesman for Hongkong Post. He said the Hongkong post issued the set of stamps to celebrate the Beijing 2008 Olympic Games and Hong Kong would co-host the equestrian events, which set a milestone for the city. The official first day covers at HK$1 each will sell at all post offices from next Saturday. A set of stamps and other products will be displayed at the general post office and the post offices in Tsim Sha Tsui, Tsuen Wan and Sha Tin. Advance orders for servicing self-provided covers will be accepted at philatelic offices from next Saturday to August 1. The two limited edition products are a prestige crystal blocks gift set and the Beijing 2008 Olympic Games limited edition prestige stamp album. They will be on sale at 37 designated offices, but only limited stocks will be available. The gift set contains a souvenir sheet and a set of four Austrian crystal blocks with three-dimensional illustrations of the image depicted on the four mint stamps. The prestige stamp album will be issued in a limited edition of 6,000 copies with a certificate.
The Taiwan authority on Thursday approved to relax restrictions on investment in the mainland by investors. The move drew wide applause in Taiwan business circles. Under the new regulations beginning on Aug. 1, institutional investment will be 60 percent of a company's net value. Individuals are now allowed to invest as much as 5 million U.S. dollars, compared with the current 80 million NT dollars (2.63 million U.S. dollars). Currently, the limit is 40 percent for Taiwan companies with a net value of 5 billion NT dollars, 30 percent for those with a net value of 5 billion NT dollars to 10 billion NT dollars and 20 percent for those with a net value of over 10 billion NT dollars. For years, particularly in the eight-year rule of the Democratic Progressive Party, Taiwan investors urged the Taiwan authority to loosen the investment restrictions. In interviews with Xinhua correspondents, many Taiwan entrepreneurs welcomed the authority's latest move to promote the cross-Strait economic relations. It would start up another wave of "mainland visits" by Taiwan investors, they held. Taiwan's stock market responded to the good news as many mainland-investing companies saw their share prices rise in Thursday trading. Over 160 Taiwan-listed companies are expected to benefit from the new policy taken by the Taiwan authority. "It comes slowly, but it is not late," said Prof. Wang Yong, director of the Peking University's Center for the Study of International Politics and Economy. The move to relax the restrictions by the Taiwan authority indicates the pragmatic spirits in handling cross-Strait issues, which is of great importance for promoting the peaceful development of the cross-Strait ties, he said. In related developments, the "economic construction committee" of Taiwan said on the same day it would loosen restrictions on 66 regulations concerning the cross-Strait economic and trade relations. Urban housing prices up 9.2% in Q2 - Second-quarter housing prices in 70 large and medium-sized Chinese cities rose 9.2 percent year-on-year, said the National Development and Reform Commission and the National Bureau of Statistics on Monday.
Wen attempts to reassure manufacturers - The mainland government is under pressure from increasingly vocal exporters to provide them with more support, and Premier Wen Jiabao attempted to reassure manufacturers as he visited a southern manufacturing hub.
Olympic flame takes to the sea -
Part of the torch relay is held on board a yacht in Qingdao, which is the host
city for the Olympic sailing events. Lenovo PC sales grow on strong Europe demand - Strong demand in Europe, the Middle East and Africa helped offset a slowdown in the Asia-Pacific and boost Lenovo Group's personal computer shipments in the second quarter.
July 18 - 20, 2008
The Chinese mainland-based Bank of Communications announced on Wednesday that it will offer renminbi-denominated bonds worth a total of 3 billion yuan (435 million U.S. dollars) on July 17-23. The two-year bonds with a denomination of 10,000 yuan each will carry a coupon of 3.25 percent, with half-year interest payments. Trading of the bonds is expected to start on July 29, the bank announced at a ceremony marking the issuing of the bonds. Proceeds from the bond issuing will be used for loans, increasing liquidity as well as general corporate purposes, the bank said in a statement. The Bank of Communications was the fourth mainland-based banks to issue RMB-denominated bonds in Hong Kong since 2007, after the China Development Bank, the Export-Import Bank of China, both policy banks, and the Bank of China. It also increased the total RMB bonds issued by mainland banks in the Hong Kong Special Administrative Region up to 13 billion yuan (1.88 billion U.S. dollars). The launch "provides a driving force" for the development of the mainland and Hong Kong financial markets and will add to the strength of RMB bonds in the international financial markets, said Yu Yali, vice president of the bank.
Hong Kong learned important lessons from the 1997-98 Asian financial crisis, which would help it cope with future challenges, Financial Secretary John Tsang Chun-wah said on Wednesday. Mr Tsang was speaking at the Thought Leadership Forum in Banking and Capital Markets at the 61st International Banking Summer School. He was discussing recent developments affecting Hong Kong’s economy and banking industry. “Last year, our gross domestic product [GDP] grew 6.4 per cent year-on-year. Our economy today is larger than ever, with GDP stronger over the past three years than we’ve seen since the boom years of the mid-1980s. However, he said these achievements had not been easy for Hong Kong. He recalled the adverse times in 1997. “Negative equity was a widespread problem for homeowners and consumer confidence was low,” he said. Negative equity is when the value of an asset becomes worth less than the loans made to purchase the asset. The financial secretary noted that the crisis encouraged Hong Kong investors to be cautious, to spread their risks, and be more innovative in business. Mr Tsang said banking had also changed. “Following a global pattern, banks in Hong Kong have become less concentrated on the traditional lending business. They increasingly rely on fee-based business, such as wealth management and agency business. More banks have developed in innovative products, such as credit derivatives. Electronic banking [including the pay-by-phone system, automated teller machines, debit card purchases, and personal computer banking] had become an established service delivery channel, he explained. Credit derivatives are financial assets, such as forward contracts, swaps, the value of which is derived from the credit risks. Mr Tsang also said that both the regulatory environment for banks, corporate governance and risk management had improved. “Hong Kong Monetary Authority and other regulatory bodies carry out regular stress tests on banks to make sure they are financially healthy and can bear the risks they are taking. “We have also reduced risk by introducing an interbank payment system, which operates through the real time gross settlement system (RTGS).”RTGS is an online system used for settling payments and transactions by banks and other financial institutions.He said the system allows foreign exchange transactions to be settled on a payment-versus-payment basis, and thus eliminate any risk caused by a time gap. “Furthermore, the RTGS system of Hong Kong and similar systems in selected cities on the mainland have been linked to facilitate US dollar and Hong Kong dollar denominated transactions. Facilities have also been established with the mainland authorities for the clearing of cheques used across the boundary,” he explained. The Asian financial crisis started at July 2, 1997 in Thailand and it aroused fears of a global economic meltdown. The financial collapse of the Thai baht precipitated a drop in other Southeast Asian currencies. In Hong Kong, the Monetary Authorities spent more than HK$7.78 billion to maintain the peg at HK$7.8 to US$1 in October, 1997. However, it also caused a massive drop in the Hang Seng Index. The government ended the crisis by buying nearly HK$120 billion worth of shares in the market. Later in 2001, it sold the shares and made a profit of HK$30 billion. Today, many commentators are warning of another global economic crisis precipitated by the sub-prime mortgage crisis in the US, soaring oil prices and rising food prices.
Three 'defence lines' set up to tighten Olympic security -Beijing public security authorities launched three "defence lines" on Tuesday morning to beef up safety checking on people or vehicles to enter the city. The three lines surrounding Beijing are composed of hundreds of checkposts, said a spokesman for the municipal public security bureau. The first line includes checkposts on the expressways, national highways and town or village roads that link Beijing with other provinces or cities. The patrol posts on the second line are stationed on the major suburban roads leading to the downtown area. The third line covers all major roads in the downtown districts. On Tuesday, big traffic flows caused congestions on the expressways linking Beijing to Kaifeng, Shenyang and Shijiazhuang, and the National highways No. 103 and No. 107. To prevent traffic jams caused by the security checks, Beijing public police bureau asked the checkposts to add checking personnel, and take suspicious people or vehicles off the road and hand them over to local police stations as soon as possible. The bureau spokesman said safety check takes time and congestion is sometimes inevitable. "We hope drivers and passengers' could understand and support us in the coming two months."
A new expressway linking the Olympic host city, Beijing, to its nearest co-host city, Tianjin, opened for traffic on Wednesday. The dual four-lane intercity expressway is one of the key infrastructure projects for facilitating the Olympic traffic. It was designated for construction by the Ministry of Transport in 2006. Dubbed as Beijing's offshore gateway, Tianjin is a collaborative host city for the Olympic soccer games. The 135-km expressway links the national capital directly to the container port in Tianjin, whose throughput chalked up 7 million TEU (twenty-foot equivalent unit) in 2007. It makes possible for people in Tianjin to share Beijing's |
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Nestle workers agree to end strike -
Nestle transport workers and deliverymen agreed to end their two-day strike and
resume work immediately after reaching a satisfactory resolution with the
company.
Sohu.com, the mainland's second-largest online portal, says it will list its
games business in the United States after reporting a sevenfold increase in
second-quarter profit. ith sales of online games and advertising soaring,
Beijing-based Sohu is taking advantage of growing investor appetite for the
mainland internet industry. Boasting 253 million internet users, the mainland
has passed the US as the largest Web market in the world, according to China
Internet Network Information Centre. Sohu reported net income of US$40.2 million
in the second quarter, compared with US$5.7 million a year earlier. Diluted
earnings per share reached US$1.02, well ahead of market estimates of 67 US
cents. Revenue increased 161.6 per cent to US$101.98 million, beating market
estimates of US$96.5 million. "Both online games and online advertising are
doing extremely well," said Dick Wei, a mainland internet analyst at JP Morgan.
The new company in the US will be named Changyou.com and focus on online games
and related strategic opportunities. Sohu will remain Changyou's majority
shareholder. Other details of the share sale plan were not disclosed. "It is
great that Sohu is spinning off its online game business," said Bryan Yuan, an
analyst at IDC China. "After all, operating games are quite different from
running a portal. Games target individual consumers while portals target
companies." With future earnings less certain, online game companies on average
are valued at 15 times earnings, while online portals can fetch valuations of 30
times, Mr Wei said. Online games account for 47 per cent of Sohu's total
revenue. Most of that comes from TLBB, a multi-player online role-playing game
based on a Chinese martial art novel, Tian Long Ba Bu. The game was developed
in-house and launched last year. Total online games revenues reached US$47.9
million in the second quarter, up 11.5 times from the same period last year, and
TLBB accounted for US$45.5 million. Advertising revenues increased 53 per cent
from a year earlier to US$43.4 million, reflecting the overall expansion of the
internet market and the increased shift in advertising budgets from offline to
online. "The robust pace of advertising spending leading up to the Beijing
Olympic Games as well as our significant traffic increase further enhances the
overall effectiveness of advertisers' marketing campaigns on Sohu," said Belinda
Wang, the co-president and chief marketing officer at Sohu.com. Sohu expects
third-quarter revenue of US$112 million to US$116 million. However, a
China-based analyst warned the Olympics might have a negative impact on sales of
online games in the third quarter, given planned restrictions on the sector.
"The government has just announced policies that online game companies cannot
upgrade their games during the Olympic months. Most online game companies depend
on upgrades to boost users. However, the government doesn't want people to get
distracted from the Olympics," the analyst said.
The central government has
agreed to further liberalization of its markets under the Closer Economic
Partnership Arrangement (Cepa) between Hong Kong and the mainland, Chief
Executive Donald Tsang Yam-kuen said on Tuesday. Mr Tsang said Cepa had already
attracted HK$5.1 billion of investment into Hong Kong and had created 36,000 new
jobs during the first three years of implementation since 2003. He said the new
package of Cepa measures would open up more opportunities for Hong Kong firms
seeking to enter the China market. “The current Cepa package and the Guangdong
pilot measures will offer new business opportunities on the mainland for Hong
Kong businesses and service suppliers, making Hong Kong even more attractive to
overseas investors,” he said. Under Supplement V to Cepa, the liberalisation
measures will cover 40 services sectors. This includes existing sectors such as
conventions and exhibitions, banking, construction and related engineering
services, social services, tourism, accounting, and medical and dental services.
It will also cover two new services areas – incidental to mining and related
scientific and technical consulting services. All liberalisation measures will
come into force on January 1, 2009. They will cover: Banking sectors: under the
new measures, any mainland-incorporated banking institution established by a
Hong Kong bank (SEHK: 0005, announcements, news) will be allowed to locate its
data centre in Hong Kong, subject to certain requirements. Medical and dental
sectors: Hong Kong’s qualified Hong Kong permanent residents with Chinese
citizenship and with specialist qualifications will be allowed to set up
outpatient clinics in Guangdong. Tourism: the coverage of “simplified entry
arrangement for a period of 144 hours” for non-Hong Kong residents will be
extended to the whole of Guangdong. Under the new measures, Hong Kong travel
enterprises will be allowed to organize one day group tours to Hong Kong
Disneyland for non-Guangdong residents who have resided and worked in Shenzhen
for over one year.
The Urban Renewal Authority wants to spend an extra HK$200 million to stop the
historic 160-year-old Graham Street open market being wiped out by
redevelopment, despite uncertainty about whether the market's hawkers will
continue operating stalls there. As well as the additional cost, the move would
delay completion of the project by two years, to 2014. Under new proposals put
up for consultation by the authority yesterday, the redevelopment would be
divided into three phases, enabling the existing 54 hawkers to stay in business
by moving from place to place during building work. Once work is complete, the
dry-goods stalls would reopen where they are now, while wet-goods stalls would
move into a new two-storey market building. Authority chairman Barry Cheung
Chun-yuen said it would supply hawkers with water and electricity during
construction, and traders would be able to rent space in a 300 square metre
storage area in which to store their goods. He said the operators of the 14
wet-goods stalls would be given priority when shops in the new market, on Gage
Street, were let. "The design of the two-storey centre actually takes advantage
of the sloping site, so all shops for selling wet goods would be at ground level
and easily accessible by visitors," he said. The centre would offer better
hygiene and management for stall owners, he added. The frontages of buildings on
Graham Street and Peel Street would be 3 meters further back from the roadway
than they are now. This would make the market safer, improve its environment and
keep passing vehicles from disturbing shoppers and stallholders. The authority
has also scrapped a proposal to build a 100-space underground car park. Mr
Cheung said the additional measures would add more than HK$200 million to the
project's cost, which last year was estimated at HK$3.8 billion. Carrying it out
in phases would increase construction costs, and the longer period for
completion of the work would mean higher bank interest charges would be
incurred. A forum will be held early next month to gauge the public's views
about the proposed measures. Despite the authority's efforts to save the city's
oldest street market, operating since 1841, hawkers operating there are still
not sure whether they can all stay, because the government may not renew their
licenses or allow their transfer. The government's policy is to encourage
hawkers to surrender their licences for one-off compensation, and only immediate
family members can take over a license. Fish-stall manager Wong Chi-wah, who has
been thinking of surrendering his license, said he would now consider moving
into the new market centre. He welcomed the new measures, but lamented that his
business had dropped about 30 per cent as residents gradually move out of
buildings to be demolished. Central and Western District Council vice-chairman
Stephen Chan Chit-kwai, a member of the authority's heritage advisory panel,
warned that high rents in the future market centre could discourage wet- stall
operators from staying. He suggested letting shops the hawkers do not want by
open tender.
The Madagascar government is seeking the help of the Hong Kong police in
stopping the exhibition of what is claimed to be the world's largest emerald,
claiming it was exported from the island illegally. The emerald, weighing 536
kilograms and measuring 125 centimeters in length, 78cm in depth and 55cm in
height, has been on display at the BaoQu Tang Modern Art Gallery in Tsim Sha
Tsui since June 20. It has been named Gift from Heaven by Chinese painter Chan
Sicpo, a longtime Madagascar resident whose works are also on display in the
gallery. Officials from the Madagascar judiciary, police and procurator's
officer have arrived in Hong Kong, claiming the gem was declared as "green jade"
when it was illegally exported. It was allegedly shipped out of Madagascar
through the French colony of Reunion Island. A spokesman of the gallery said the
emerald belonged to a French company, Orgaco, which won a legal battle with the
Madagascar government over the ownership of the emerald while it was in Reunion.
China:
Crucial talks for a new global trade pact entered the ninth day Tuesday with the
atmosphere was growing more and more tense amid a blame game triggered by the
U.S. verbal attack on emerging economies. The closed-door negotiations resumed
in the morning after a marathon bargaining session among the seven key members
in the World Trade Organization (WTO), namely the United States, the European
Union (EU), Japan, Australia, Indian, Brazil and China, dragged on into early
hours of today. Emerging from late-night battling, Indian Commerce Minister
Kamal Nath told reporters that the good news was the talks would continue,
failing to note any progress. Nath said he had been hoping for progress on
issues such as a further reduction of farm subsidies by developed countries and
the special safeguard mechanism, a measure for developing countries to protect
their domestic farming from import surges. "I am still hoping we will see some
movement. I am still optimistic," Nath said. EU Trade Commissioner Peter
Mandelson told reporters that the ministers had held "very intensive
discussions." "We work and will continue on what is a very, very complex and
sensitive," he said. Ahead of the meeting Monday evening, WTO spokesman Keith
Rockwell painted a pessimistic picture of the ongoing negotiations, which had
passed the planned schedule of one week. "The situation is very tense. Things
are finely balanced and the outcome is by no means certain," he said. Tensions
peaked Monday after the U.S. pointed fingers at India and China, blaming the
current deadlock on the two emerging economies. "We are very much concerned
about the direction that a couple of countries are taking," U.S. Trade
Representative Susan Schwab said. She said one party was against an agreement
worked out Friday night by a majority of the seven trading powers, while another
was now "backtracking" on an earlier commitment. Although she did not name the
two countries, the U.S. deputy head at the Geneva mission to the WTO, David
Shark, pointed the finger at India and China. "I am very concerned it will
jeopardize the outcome of this round," Schwab said. The accusation was
immediately rejected by India and China. "Developed countries are asking for
flexibilities for commercial interests. Developing countries are looking to
protect the poor and for provisions that will help them out of poverty, while
developed countries are looking for provisions which will lead to greater
prosperity," Nath said. Chinese ambassador to the WTO Sun Zhenyu described the
U.S. finger pointing as "surprising," urging the world's largest economy to show
flexibility instead of threatening developing countries. "We have tried very
hard to contribute to the success of the round," Sun told delegates. "It is a
little bit surprising that at this time the U.S. started this finger-pointing."
"They have to remember that this is a Development Round. If they cover all their
sensitivities for themselves, and keep on putting threats on developing
countries, I think we are going nowhere," the ambassador said. India is
demanding for more flexibility under the special safeguard mechanism, while
China wants to protect certain sensitive agriculture products like cotton, sugar
and rice from deep tariff cuts, which was allowed by the mandate of the Doha
Round. Both were supported by a large portion of poorer developing countries,
while others said the demands are justified in light of food security and the
still enormous numbers of small farmers that the two countries have to care for.
Visiting Chinese Foreign Minister Yang Jiechi (L) shakes hands with his U.S.
counterpart Condoleezza Rice during their meeting in Washington, July 28, 2008.
The successful meeting between Chinese President Hu Jintao and U.S. President
George W. Bush held on the sidelines of the Hokkaido G8 summit in Japan earlier
this month provides an important guidance for the future development of
bilateral relationship, he said. As the United States will hold presidential
elections later this year and the two countries will celebrate the 30th
anniversary of the establishment of their diplomatic ties between the end of
this year and the beginning next year, the Chinese minister said, bilateral
relationship will enter a crucial transitional period. The Chinese side would
work with the U.S. side to earnestly implement the common consensus reached
between heads of state of the two countries to move forward bilateral
constructive and cooperative relationship in a sound and steady manner, Yang
said. For this end, he said, both sides should always treat bilateral
relationship from a strategic and long-term perspective, maintain high-level
contacts, strengthen dialogues and communications, enhance mutual understanding
and trust, extend interchanges and cooperation, and properly handle differences
and sensitive issues.
Visitors walk past a
poster during the Traditional Chinese Medicine Week at the Royal Society of
Medicine in London, Britain, July 28, 2008. The one-week event, starting from
July 27, is aimed at promoting greater understanding and cooperation in medicine
between China and the UK. It will also boost cooperation and exchanges between
China and Britain in the field of TCM, she added. According to Wang Guoqiang,
director general of China's State Administration of Traditional Chinese
Medicine, the event will showcase the special effects of TCM, which may benefit
people from around the world. During Wang's meeting with officials from
Britain's Health Department, both sides agreed to boost Chinese medicine-related
legislation in Britain and to achieve multi-dimensional cooperation in TCM. Wang
also encouraged increased interaction between Chinese and western medicine, in
keeping with future development trends in medicine. The TCM exhibition, key part
of the event, involves over 500 precious items related to Chinese medicine,
two-thirds of which have never been exhibited abroad before.
Games effort on right track say
greens - China got a pat on the back from Greenpeace for launching impressive
green policies in the run-up to next month's Beijing Olympic Games but also
received a soft rap on the knuckles for missing out on crucial environmental
initiatives across the capital.
Procter & Gamble has decided to raise prices for its products by as much as 10%
in China, Zhang Qunxiang, spokesman for P&G China, said.
Talks fail to resolve Nestle pay
impasse - Around 200 Nestle employees staged a strike outside the factory in
Yuen Long yesterday, demanding increases in both their basic wages and
commissions.
The chief executive yesterday cast
himself in the role of paternal saviour for impoverished children, telling Tin
Shui Wai primary school pupils that his favourite book when he was young was
Oliver Twist. In a half-hour session with 18 children aged eight to 12 at the
Book Fair, Donald Tsang Yam-kuen told the children he had taken an interest in
every one of Charles Dickens' stories. He said that before the session he had
recalled how there were no public libraries when he was a child and that
English-language books were not readily available. "Times have changed. There
are libraries everywhere now," Mr Tsang said. After confirming with the children
that they were all from Tin Shui Wai, he told them: "That's my favourite
district to visit." But the fact that Dickens' portrayals of life amid poverty
and institutionalised injustice brought about significant change in 19th-century
Britain seemed lost on the youngsters. Mr Tsang met with similarly blank looks
when he asked children from Lok Sin Tong Leung Kau Kui Primary School in one of
Hong Kong's most impoverished districts whether they enjoyed reading travel
books. However, mention of Harry Potter brought some acknowledgement, although
it was unclear whether the children had read the books or just seen the films.
The chief executive encouraged them to learn English and read more books, saying
Hong Kong was an international city and reading encouraged independent thinking.
After his brief chat, Mr Tsang took the children to view two book stalls, and
later presented them with a book written by Hong Kong athletes. Chan Lai-ying,
12, said she had never heard of Dickens, but might look out for his books,
because she wanted to obey Mr Tsang. "Mr Tsang said he began reading keenly when
he was in middle school, and I am moving up to middle school now," she said.
"Seeing him on television, he looks pretentious, but he's much more caring in
real life." Eight-year-old Hui Kai-man, who held Mr Tsang's hand as they visited
the stalls, said the city's leader felt like a real father. Although she was
given a Chinese-language Geronimo Stilton book that chronicles the rat's
adventures as editor-in-chief of the Rodent's Gazette, she said she wanted to be
a swimmer when she grew up. Kai-man's mother said she hoped Mr Tsang would
provide more libraries and other facilities for Tin Shui Wai residents. "With
transport fees so high, it's hard for us to find things elsewhere," she said.
Volunteers from the United States
take the Olympic Line of Beijing Subway, July 28, 2008. Beijing kicked off on
Monday the operation of its metro transport artery leading to the central
Olympic areas.
China to float more than 24b yuan in three-year T-bonds - China's Ministry of
Finance said on Friday it would float 24.59 billion yuan ($3.62 billion) worth
of three-year, book-entry treasury bonds next week.
Some workers are busy with
decorating the Tian'anmen Square with flowers in central Beijing, China, July
28, 2008. More than one million basins of flowers will be placed here to
decorate Tian'anmen Square at the center of Beijing and welcome the upcoming
Beijing 2008 Olympics, Paralympics and China's National Day. 
Thousands evacuated in E China as
typhoon Fung Wong nears - Authorities in Zhejiang Province evacuated 230,764
people and recalled 26,242 fishing boats on Monday as typhoon Fung Wong
approached. 
Bonanza at book fair -
Actress and singer Theresa Fu Wing stole the spotlight at yesterday's opening of
the Hong Kong Book Fair, with some of her fans waiting up to 44 hours to get
their hands on her new photo collection and CD.
Henderson Land Development
(0012), controlled by tycoon Lee Shau-kee, plans to sell 10 billion yuan
(HK$11.42 billion) of flats each year in the mainland from 2011. Many of our
projects in China have completed their design and are now entering the
construction phase," Reuters quoted executive director John Yip Ying-chee as
saying. "We plan to have 20 million square feet of residential space completed
each year from 2011 and that will be enough for six years' development."
Henderson Land turnover was HK$8.356 billion in the year ended June 2007, mostly
from Hong Kong property income. The developer, whose mainland strategy focuses
on second-tier cities such as Shenyang, Chengdu and Chongqing, aims to replenish
its landbank in those cities by a quarter to offer a gross floor area of 150
million sq ft by the end of this year. A property analyst said Henderson Land's
plans are positive for its business, even though flat sales are falling under
tightening measures imposed by the mainland government. "For the long term,
developers can seek more investment opportunities in the mainland as it's more
difficult to do so in Hong Kong," the analyst said. He added that it is
difficult to predict the impact of tightening measures on the market in 2011.
Henderson Land hopes its eight commercial projects in mainland cities, which are
planned to be developed by mid-2014, "will contribute an additional 1 billion
yuan of rental income a year to the company by then," Yip was quoted as saying.
Reuters reported that many analysts have criticized Henderson Land for holding
too many "passive" investments in the stock market and not expanding its
business fast enough. "Henderson Land is not an opportunist and will take a
prudent strategy in China," said Yip. "When the market is hot we will buy less
but sell more."
Hong Kong Exchanges and Clearing (SEHK: 0388, announcements, news) has warned
that the unfolding global credit crunch is hurting the finances of listing
candidates and advised investment banks to bolster their disclosure to
investors. Richard Williams, head of the HKEx's listing division, in a letter to
investment banks said that poor market sentiment had created difficulties for
listing candidates as they tried to obtain loans to finance operations. Mr
Williams reminded the banks to keep an eye on their listing-bound clients,
citing the recent deterioration in financial markets and tightened monetary
policy on the mainland. The US subprime lending crisis hit the global market for
initial public offerings at the beginning of the year, with eight share sales
pulled in Hong Kong so far this year. "Recent experience suggests that it is
appropriate to issue a reminder about the applicable disclosure standards and
further guidance on its expectations," Mr Williams said. 
Local residents wait in line to buy
Olympic tickets in Beijing, July 24, 2008 - More than nine in 10 polled said
they think the summer Games will be successful and nearly 70 percent predicted
the event will speed up Beijing's development, help its image, or increase
national coherence, the survey by Beijing Social Facts and Public Opinion Survey
Center showed.
Tourists visit the Olympic theme parterres at Tian'anmen Square in central
Beijing, capital of China, July 24, 2008. Olympic theme parterres are
installed in the square before the opening of the 2008 Beijing Olympic Games on
Aug 8.
The country is set to enter the high-speed railway club, with its first
350kmh-passenger train traveling between Beijing and Tianjin scheduled for
launch on Aug 1. The new service is expected to cut travel time between the
120-km route by half, to less than 30 minutes. "From now on, China will possess
one of the world's fastest high-speed rail services," Zhang Shuguang, deputy
chief engineer of the Ministry of Railways, said on Tuesday. In comparison,
high-speed trains in Spain and Japan run at 320kmh, while those in France,
Germany and Italy travel at 300kmh, Zhang said. And for the passengers who were
invited to experience the service during a trial, riding the trains were "just
as comfortable" as being on slower ones. Such expertise has made it possible for
the 350-kmh trains to leave the railway station every five minutes during peak
hours, and every 10 minutes during non-peak hours, Zhang said. The second core
technology is in synthesizing up to seven rail coordination systems, each with
up to 70,000 parts, and making them work as one to maintain track performance,
he said. It is something China has also acquired on its own after years of
research and experience, he said. The third core technology of high-speed
railways involves the design and manufacture of high-speed trains themselves.
"When a train runs at 350kmh, it will produce an environment of 'negative air
pressure'. Designing the high-speed train's air-conditioning system becomes a
difficult task, since the train can draw objects into the carriage through any
opening, like a big vacuum," he said. The authorities chose to cooperate with
foreign companies that had the necessary expertise, like Germany-based Siemens,
to meet such challenges. Under a joint project between the Tangshan Railway
Transportation Equipment Company and Siemens, Chinese engineers completed the
requisite designs and submitted it to Siemens, who were involved in the
industrial certification of the project, Zhang said.
Under what is hoped will be a clear August 8 night sky free of rain and smog,
Beijing's pyrotechnics gurus hope to set the first record of the 2008 Olympics.
Officials announced yesterday that the opening ceremony, which had been wrapped
in secrecy, would feature a magical, iconic fireworks first. "For the first
time, the shape of the Olympic Rings will be formed in the sky," revealed Wang
Ning, deputy director of the opening and closing ceremonies department of Bocog,
the Games' organiser. But that will not be the only colourful, fiery,
jaw-dropping spectacle to grace the firmament on opening night. More
sophisticated, stylised flash-bangs and whizzes will be seen over the Olympic
Forest Park and the Juyongguan section of the Great Wall, said Mr Wang -
including a simultaneous exploding of a 3km long battery of fireworks. "Olympic
symbols and elements will be a part of [the] fireworks' designs, [all] with an
aim to promote Olympic ideals," he added. Those with their fingers on the
computerised firing buttons will spark hundreds of compressive.
Jackie Chan performs at an
Olympic-themed concert in Hong Kong on July 18, 2008.
Xu Jianyi (R), general manager
of the FAW Group Corporation, gives a present to Chief Executive of Hong Kong
Special Administrative Region (HKSAR) Donald Tsang (L) after their visit to the
workshop of FAW-Volkswagen in Changchun, northeast China's Jilin Province, July
22, 2008. A Hong Kong delegation headed by Donald Tsang visited on Tuesday FAW-Volkswagen
Automotive Company Ltd. in Changchun. 
BOC and Lenovo placements reap rebound gains - Institutional investors of Bank
of China (3988) and Lenovo Group (0992) sought to reap profit through share
placements yesterday amid a rebound in the general market.
Emperor Watch gains 8pc on debut to buck
trend - Emperor Watch and Jewellery (0887) bucked the trend of recent new
listings yesterday when its shares closed above their offer price in the
company's trading debut. Among the 22 firms listed on the mainboard this year,
more than 10 saw their stock plunge below their initial public offering price in
first-day trading. Emperor Watch closed at 46.5 HK cents, up 8 percent from the
offer price of 43 cents. The shares opened at 59 cents, then fluctuated between
46 and 61 cents before closing. About 763 million shares changed hands on
turnover of HK$400 million. "The performance of Emperor Watch could have been
much better if the blue-chip index only rose 200 to 300 points. Some of the
capital was diverted to blue chips, as the general market was up more than 600
points yesterday," said First Shanghai Securities strategist Linus Yip Sheung-chi.
Units of Albert Yeung Sau-shing's Emperor Group usually roar out of the gate on
debut. In February, New Media Group (0708) shares surged 112 percent from their
IPO price. Emperor Capital Group (0717) shares jumped 79 percent on their first
day's trading in April last year. Yeung said yesterday the group is planning to
spin off its furniture- retailing unit, Ulferts of Sweden (Far East), in 2009 or
2010. 
Chinese President Hu Jintao (R) meets with visiting Russian Minister of Foreign
Affairs Sergei Lavrov at the Great Hall of the People in Beijing, China, July
21, 2008. Hu said on Monday that the relationship with Russia has been China's
diplomatic priority. President Hu Jintao said on Monday that the relationship
with Russia has been China's diplomatic priority. He made the comment while
meeting with Russia's Minister of Foreign Affairs, Sergei Lavrov. "We will work
with Russia to deepen strategic coordination and upgrade the partnership to new
heights," said Hu. Describing current Sino-Russian relations as stable and
healthy, Hu mentioned his two meetings with Russian President Dmitri Medvedev
and comprehensive cooperation and consultation in international affairs.
The new administrative complex
of the Chengdu government in Sichuan province. The controversial building, said
to cost $180 million, has been put on sale to raise funds for quake
reconstruction.
Refineries sink deeper in the red -
Despite the huge subsidies and rise in gasoline and diesel prices, refineries
under China's two leading oil companies incurred 5.71 billion yuan of losses in
the first half of the year, said an industry association.
Miss Hong Kong 2008 Winner Edelweiss
Cheung (張舒雅) [centre] is congratulated by First Runner-up & Miss International
Goodwill Skye Chan (陳倩揚) [left] and Second Runner-up & Miss Photogenic Sire Ma
(馬賽), 19 July 2008, Wanchai, Hong Kong. The finals for this year's contest was
held at the Hong Kong Convention and Exhibition Centre.
Miss
Hong Kong Pageant 2008 winner Edelweiss Cheung (C), runner-up Skye Chan (L), and
second runner-up Sire Ma pose for photos in Hong Kong Convention and Exhibition
Center July 19, 2008.
Edelweiss Cheung, 22, is crowned Miss Hong Kong 2008 in Hong Kong
Convention and Exhibition Center on July 19, 2008.
Hong Kong actors Tony Leung and Carina Lau smile during their wedding ceremony
in the Kingdom of Bhutan July 21, 2008.
Hong Kong actors Tony Leung and Carina Lau pose with young Bhutanians during
their wedding ceremony in the Kingdom of Bhutan July 21, 2008.
China
Citic Group, an investment arm of the central government, is considering raising
the price it will pay to privatize subsidiary Citic International Financial
Holdings (SEHK: 0183) because of shareholder pressure, according to sources.
"There's been lots of feedback that it's a low bid," said one of the sources.
"There is such a gap between the current offer and where industry bids have
been, so they're under a lot of pressure." Citic said in June it would pay Citic
International shareholders HK$1.46 a share and provide one Hong Kong-listed
share of China Citic Bank (SEHK: 0998, announcements, news) , another Citic
Group subsidiary. The privatization is part of a larger transaction that will
see Banco Bilbao Vizcaya Argentaria, the second-largest bank in Spain, double
its stake in Citic Bank to 10 per cent and its stake in Citic International to
30 per cent. Investors are unhappy with the HK$5.1 billion of bridging loans
they say Citic is accounting for twice, both in Citic International's and Citic
Bank's book value. Stripping out the loans, which Citic values at 88 HK cents a
share, Citic International's price to book drops to 0.99 times from the 1.6
times it announced in June, according to one shareholder. To return the price to
book to 1.6 times would require Citic to raise the offer by 70 HK cents to
HK$2.16. "Realistically I'd say they may raise it by 15 per cent," said another
shareholder. A 15 per cent increase would raise the offer price to HK$1.68 a
share. Seventy-five per cent of Citic International shareholders must approve
the plan and not more than 10 per cent can vote it down for the proposal to
pass. "Management knows the shareholders may reject this deal and there is a
good chance that the offer will be revised up a bit because it's unlikely they
have gained enough support," said an analyst. Citic International delayed
sending out a scheme document because Hong Kong's High Court had not finished
proceedings related to the deal, the firm said in a statement to the stock
exchange on Wednesday. The court also has to approve the deal. The firm said it
would distribute a privatization timetable by September 1, delaying the close of
the deal originally scheduled for September. That does not wash with some
shareholders who say the company is trying to work out just how much they will
have to raise the bid by to gain approval. 
Russian investors shift interest to Asia - A
Russian oil company has injected fresh optimism into the market for top-end
apartments in the region after paying a new all-Asia record unit price for a
Hong Kong penthouse. 
A Beijing Capital
International Airport security officer examines a passenger's luggage, as
inspections at the airport and bus stations were increased to ensure safety
during the Games.
Beijing Sunday inched a step closer to realizing a green Olympics by
enforcing a series of measures to ease traffic jams and reduce pollution. 
Hong Kong Special Administrative Region
(HKSAR) Chief Executive Donald Tsang announced on Wednesday a series of
short-term relief measures to alleviate inflation, which involve the spending of
11 billion HK dollars(1.41 billion U.S. dollars) from the HKSAR government
coffers. Speaking at the Legislative Council question-and-answer session, Tsang
said he hopes the proposals help low-income earners meet their daily expenses
amid worsening inflation. He said the Mass Transit Railway(MTR) board has agreed
to offer half-price concessions to students between certain stops. The MTR
Corporation will announce details soon. The HKSAR government will pay another
two months' rent for most families living in public housing estates on top of
next month's rent subsidy. Students receiving Comprehensive Social Security
Assistance and those who will receive student financial assistance in the
following school year will be given a one-off 1,000 HK dollars(128U.S. dollars)
subsidy. Two extra months' payment of Old Age Allowance and an extra month's
standard rate payment of Comprehensive Social Security Assistance and Disability
Allowance will be offered to recipients. Meanwhile, the employee retraining levy
will be waived for two years to relieve the burden of hiring foreign domestic
helpers in middle-income families. Government fees and charges related to
livelihood will also be frozen for one year. Besides providing half-year
electricity charge subsidies to all households from September, the HKSAR
government will offer the subsidies for a further six months, increasing the
total subsidy amount from 1,800 HK dollars(231 U.S. dollars) per household to
3,600 HK dollars(462 U.S. dollars). The HKSAR government has also earmarked 100
million HK dollars(12.84 million U.S. dollars) for the Social Welfare Department
to work with non profit-making organizations to provide short-term food
assistance services to needy families. To enhance price information on daily
necessities the HKSAR government will help the Consumer Council expand the
exercise to compare and report prices in supermarkets, shops and markets. It
will also liaise closely with the Chinese mainland to ensure stable and adequate
food supplies. Tsang said the proposals will not fuel inflation because many are
one-off measures, but they will likely cause a higher fiscal deficit and a fall
in financial reserves. However, the HKSAR government's sizable fiscal surplus
last year puts it in the position to make additional commitments, he said,
adding the proposals will not bring major or long-term implications on public
finances and the operating account. The HKSAR government will seek funding
approval from legislators Friday. As the proposed waiving of the employee
retraining levy involves law amendments the SAR government must obtain Executive
Council approval before their scheduled implementation in September. Noting
inflation is a global problem, Tsang said as Hong Kong is an open and free
economy and it is difficult for the HKSAR government to control price rises.
Although some people may not be covered in the proposal, most middle-class and
low-income families should benefit from the measures. He said the HKSAR
government will formulate long-term anti-inflation measures and is willing to
discuss the issue with lawmakers. 
Historic precinct 'needs urgent
preservation' - Damage to the former Central Police Station during last month's
severe tropical storm has highlighted the threat to the historic cluster of
buildings as they await conservation. A 17-metre tree blown down by the gale
knocked down three smaller trees which swept a balcony off the almost
century-old police station building. Secretary for Development Carrie Lam Cheng
Yuet-ngor said that although it should be possible to restore the balcony, "the
incident shows that the compound really needs urgent preservation". The balcony
was broken off the second floor of Block B of the police station, built in 1910,
which faces Arbuthnot Road. It happened during Severe Tropical Storm Fengshen,
which caused the No 8 storm signal to be in force for two days from June 24. The
Development Bureau said the biggest tree that fell was a big-leaved fig, Ficus
virens. Of the four trees only one, a glossy-leaved Nageia nagi, could be saved.
The suits Chinese athletes
will wear on the winners’ podium during the Beijing Olympic Games are unveiled,
July 15, 2008. The suits have the traditional Chinese colors of red and yellow
with an image of the national flag and the "auspicious clouds" that adorn the
Olympic relay torch.
Olympic stamps issued by Ghana are on
display during the launching ceremony of Volume 3 of the "Official Worldwide
Postage Stamp Collection for the Games of the XXIX Olympiad" in Beijing July 15,
2008. The 3rd volume of a four-set collection, which is authorized by both
International Olympic Committee (IOC) and Beijing Organizing Committee of
Olympic Games (BOCOG), was launched on Monday in Beijing. The collection brings
together the thematic stamps from more than 120 countries and regions to support
the success of the 2008 Beijing Olympic Games.
An Olympic stamp issued by the U.S. on
display during the launching ceremony of Volume 3 of the "Official Worldwide
Postage Stamp Collection for the Games of the XXIX Olympiad" in Beijing July 15,
2008. 
Olympic stamps issued by Israel are on
display during the launching ceremony of Volume 3 of the "Official Worldwide
Postage Stamp Collection for the Games of the XXIX Olympiad" in Beijing July 15,
2008. 
Olympic stamps issued by the Democratic
People's Republic of Korea are on display during the launching ceremony of
Volume 3 of the "Official Worldwide Postage Stamp Collection for the Games of
the XXIX Olympiad" in Beijing July 15, 2008. 
Olympic stamps issued by Peru are on
display during the launching ceremony of Volume 3 of the "Official Worldwide
Postage Stamp Collection for the Games of the XXIX Olympiad" in Beijing July 15,
2008.
Olympic stamps issued by Indonesia are
on display during the launching ceremony of Volume 3 of the "Official Worldwide
Postage Stamp Collection for the Games of the XXIX Olympiad" in Beijing July 15,
2008.
Olympic stamps issued by New Zealand
are on display during the launching ceremony of Volume 3 of the "Official
Worldwide Postage Stamp Collection for the Games of the XXIX Olympiad" in
Beijing July 15, 2008.