Global standards for locals The Macau Productivity and Transfer Centre is planning to double its budget for the coming year to 40 million patacas (US$5 million). It will use the money to help local companies reach international training and production standards.
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HANG SENG INDEX 20150
20100
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August 15
Govt claws back La Scala land T
he government has stripped the La Scala luxury housing development of its land concession. The decision had looked likely since the Court of Final Appeal decided in May the plot – near Macau International Airport – had been granted to a firm linked to Hong Kong developer Chinese
Estates as a result of corrupt actions by former Secretary for Transport and Public Works Ao Man Long. The confiscation was confirmed in the city’s Official Gazette. “It was appropriate” for the government to take back the land, legislator Chan Meng Kam told Business Daily yesterday. But would-be buyers
who have paid HK$384 million (US$49.5 million) in deposits for 300 of the 900 still unbuilt flats will struggle to find such good price value elsewhere in Macau, says Ronald Cheung, boss of Midland Realty (Macau) Ltd. Moon Ocean, the Chinese Estates unit holding the land, has 15 days to appeal. The parent firm “has the
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intention to oppose the decision” it told the Hong Kong Stock Exchange. Chinese Estates’ boss Joseph Lau Luen Hung and another businessmen, Steven Lo Kit Sing have been named as defendants in Macau on charges of bribery and money laundering. A trial date has been set for September 17. More on pages 2 & 3
%Day
SANDS CHINA LTD
2.88
LI &
1.44
POWER ASSETS HOL
0.96
MTR CORP
0.54
CHINA OVERSEAS
0.46
CLP HLDGS LTD
-2.44
BOC HONG KONG HO
-2.82
CHINA LIFE INS-H
-3.42
CHINA UNICOM HON
-3.46
CHINA COAL ENE-H
-3.73
Source: Bloomberg
2012-8-16
2012-8-17
2012-8-18
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‘Sandwich class’ feels housing pinch The perception Macau caters for high-end customers and low end ones but not much for middle-income people seems confirmed by the latest official housing market figures. They show 95 percent of new flats completed in the first half of this year were Taipa properties with three or more bedrooms. The average transaction price there can reach as high as over 100,000 patacas (US$12,500) per square metre. Data published yesterday show 902 homes and apartments were completed in the first six months of this year. Page 3
Typhoon season damps casino prospects Yet another major storm is threatening to rain not only on Macau but also the financial prospects of its casino industry. As Business Daily went to press, Tropical Storm KaiTak was on course to make landfall on Friday approximately mid-way between Macau and Hong Kong. It could bring severe disruption to ferry services that bring in gamblers during the lucrative weekend trade. It could also be the difference between year-on-year revenue growth in August and decline. Typhoon Vicente shaved 700 million patacas off the July numbers. Page 4 www.macaubusinessdaily.com
Macauslot files late six times straight Sport betting operator SLOT, Sociedade de Lotarias e Apostas Mútuas de Macau Lda, failed to announce its annual results on time for the sixth consecutive year this year due to ‘differences in opinion’ between the company and its auditors. Macauslot’s 2010 results were published in the Official Gazette yesterday. It could have been fined up to 411 million patacas (US$51.4 million) for the failure. But the gambling regulator the Gaming Inspection and Coordination Bureau declined to impose any penalty, saying the accounting dispute had “no significant impact on the fair presentation of the financial statements”. Among Macau’s 20 gaming concessions and public utilities, only five have announced their results late in the past decade. Four of the firms involved –including Macauslot – were established by Stanley Ho Hung Sun’s Sociedade de Turismo e Diversões de Macau (STDM). Page 5
Year I - Number 99 Thursday August 16, 2012 Editor-in-chief: Tiago Azevedo Deputy editor-in-chief: José I. Duarte MOP 6.00
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business daily August 16, 2012
macau
Govt scraps La Scala land grant Developer Chinese Estates has collected HK$384 million of deposits on about 300 pre-sold flats Tiago Azevedo tiago.azevedo@macaubusinessdaily.com
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he government has declared the land concession for the La Scala luxury housing development invalid. The decision was published in yesterday’s Official Gazette and takes effect immediately. Developer Chinese Estates Holdings Ltd says it will appeal. The government’s action voids several decisions in 2006 by the chief executive at the time, Edmund Ho Hau Wah, which confirm the sale of the land near the airport to Moon Ocean Ltd, a subsidiary of Chinese Estates Holdings Ltd. In a filing to the Hong Kong Stock Exchange late on Tuesday, Chinese Estates said the government had declared the land concession invalid, affecting HK$3.8 billion (US$490 million) of home sales. Moon Ocean has 15 days to file an appeal against the decision and can also appeal to the Court of Second Instance. “The group has the intention to oppose the decision and/or to appeal to the relevant court and is seeking legal advice for appropriate legal actions,” the company said yesterday in its half-year report to the stock exchange. Chinese Estates says it will seek c o mpens at ion if its ap p eal is unsuccessful. “The group is determined to pursue claims it may have against the Macau government and/or the original owners for compensation for the
losses,” it said. More than one-third of La Scala’s 900 flats have been sold. The value of those contracts is worth about HK$3.8 billion and the company said in June it had received about HK$384 million in deposits. The company said construction work had been halted on June 18 but that it had spent about HK$2.8 billion on the development. The news follows the three protracted corruption trials of former secretary for transport and public works Ao Man Long. At the end of May, the Court of Final Appeal said Ao took bribes worth HK$20 million (US$2.5 million) in 2005 from Chinese Estates boss Joseph Lau Luen Hung and another
HK$9.30 Chinese Estates share price at yesterday’s market close
businessman, BMA Investment chairman Steven Lo Kit Sing. The government granted the land to Moon Ocean, a company that was formerly owned by Lo and is now controlled by Chinese Estates.
Second probe Lau was named during the trial in April. The Hong Kong billionaire has since been charged with bribery and money laundering and a trial date has been set for September 17. Lau, who controls almost 75 percent of the developer, which has a market capitalisation of HK$17.7 billion, has denied that he or the company bribed any Macau official. The Macau government last year granted eight additional land parcels to Moon Ocean, with a total area of 5,204 square metres. Chinese Estates maintains the government revised the land grant knowing an inquiry was ongoing. Last month Secretary for Transport and Public Works Lau Si Io denied that he had been negligent in approving extra land for the upmarket housing project, saying he had acted “in compliance with the current administrative procedures”. Yesterday the government said it would scrutinise the deal and the revision of the contract. Chinese Estates shares were flat in
Lawmakers applaud action on La Scala
land grants and the corruption cases involving former Secretary for Transport and Public Works Ao Man Long had “undoubtedly” impacted on Macau’s image as an international city with a suitable business environment for global corporations. He wants revisions to the land laws as soon as possible to “plug the
Government annuls La Scala land grant Last year’s additional land grant to be reviewed Chinese Estates to oppose government ruling Government will refund buyers’ 3 percent stamp duty
yesterday’s trading at HK$9.30 a share. Its shares have slumped by 13.8 percent since April 16, the day Ao’s third trial started. They fell to HK$8.30 a share on May 28, their lowest price
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Photo by Manuel Cardoso
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he government’s decision to declare invalid the land grant to Moon Ocean Ltd has been welcomed by members of the Legislative Assembly. Lawmaker Ho Ion Sang told Business Daily the move reflected the government’s active handling of the issue, acting in accordance with the verdict from the Court of Final Appeal. Mr Ho said the government had acted in a timely manner and “carried out the relevant procedures to take back the land”. Another member of the assembly, Chan Meng Kam, said it was “appropriate” for the government to take back the land grant. Both legislators said the government should now probe a follow-up deal last year that saw eight additional land parcels of 5,204 square metres granted to Hong Kong developer Chinese Estates Holdings Ltd, the owner of Moon Ocean and the La Scala site. “If the deal of the five land plots [granted in 2006] is invalid, the deal of the eight land plots should also be considered invalid,” Mr Chan said. Mr Ho said the legality of the
KEY POINTS
loopholes”. “The land law and urban planning law are lagging behind the city’s development,” Mr Ho said. “The timetable for the revision of these two laws cannot be postponed again, or otherwise there will be numerous legal but unreasonable land grants in the real estate market.” T.L.
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August 16, 2012 business daily | 3
MACAU Key dates in the troubled La Scala land deal 2005 October Moon Ocean Ltd agrees to buy five plots of land, 78,742 square metres, from five private companies, partly owned by the government. Moon Ocean, owned by BMA Investment chairman Steven Lo Kit Sing, pays 1.37 billion patacas (US$162 million) for the land. December Chinese Estates Holdings Ltd, controlled by Hong Kong billionaire Joseph Lau Luen Hung, buys a 70.01 percent stake in Moon Ocean for HK$1 million. 2006 December Former secretary for transport and public works Ao Man Long is arrested on corruption charges. Ao supervised the five companies that sold the land to Moon Ocean. 2008 January Ao sentenced to 27 years in prison on 57 charges of passive corruption, money laundering, abuse of power and unjustified wealth. 2009 April In a second trial, Ao is found guilty of a further 24 crimes of passive corruption and money laundering.
Work has been at a standstill at the La Scala site since June 18 (Photo: Manuel Cardoso)
since March 2009, when the company said Lau would face charges. The shares are down 26 percent this year, while the benchmark Hang Seng Index has gained 10 percent.
Duty refund Midland Realty (Macau) Ltd told Business Daily it had received new guidelines from Chinese Estates. Midland has sold more than 30 La Scala flats. “The developer has asked us to collect information from our clients while the period to appeal from the government’s decision is ongoing,” said Midland chief executive Ronald Cheung. The government announced yesterday it would refund the stamp duty money to buyers – 3 percent of
the sale value. Buyers that have paid the duty will be entitled to get their money back “if they have been refunded the amount paid for the acquisition of the apartment”, the Financial Services Bureau said yesterday. Although Mr Cheung said he expected the developer to refund the deposits, he said most buyers would like to get their hands on a home. “It’s not just a question of money, but buyers know that they were getting a good price for the flats,” said Mr Cheung. “Prices have gone up in the past six months and it will probably be hard for them to find a deal at similar prices.” The stamp duty refund, however, was “very good news” for buyers, he said. End/jmcl
Housing supply rises but only at top end The private residential property market is being driven by a few big upmarket projects tony.lai@macaubusinessdaily.com
S
2011 March 24 The government approves a revised contract. The Land, Public Works and Transport Bureau grants an additional eight parcels of land, with a combined area of 5,204 square metres. March 28 Chinese Estates announces it owns Moon Ocean, paying HK$1.6 billion for 29.99 percent of it. 2012 April 16 Ao’s third trial starts. The public prosecutor claims two Hong Kong businessmen, Lau and Lo, paid Ao HK$20 million in bribes. April 19 The court hears that government-controlled companies received 1.37 billion patacas for land near the airport that was valued at 2.2 billion patacas. April 23 Lau and Lo are named as suspects, facing charges over the 2006 land deal. May 24 The prosecutors formally accuse Lau of bribery and money laundering. May 31 Ao is convicted of six counts of passive corruption and three of money laundering. June 12 The government announces it will review the land grants. June 18 Chinese Estates suspends the pre-sale of flats and construction work on 900 flats valued at about HK$3.8 billion. More than 300 flats have been pre-sold. July 5 Secretary for Transport and Public Works Lau Si Io says second land grant was above board.
Tony Lai
igns that the supply of private housing is increasing appeared in the second quarter, particularly in Taipa where a flat can now cost more than 100,000 patacas (US$12,500) a square metre. Official data published yesterday show 878 homes were completed in the second quarter, twice the number completed a year before. This brought the number of homes completed in the first half to 902. There were 1,099 homes completed throughout all of last year. Of the homes completed in the second quarter, 853 were flats on Taipa with three or more bedrooms. Construction of another 658 homes began in the second quarter, compared with fewer than 50 a year before. But the head of residential property for Jones Lang LaSalle Macau, Jeff Wong Chi Wai, told Business Daily that the supply of private flats in the next two or three years would remain weak. “These figures are very likely pushed up by one big housing project that
August Moon Ocean applies for a revision of the contract with the government.
got an occupancy permit from the government,” Mr Wong said. “But I don’t see any possibility of abundant housing supply in the overall property market in the near future.” Mr Wong said the granting of an occupancy permit for a single upmarket development, One Grantai on Big Taipa Hill near Cotai, had driven supply. The development has six buildings containing more than 850 homes with three, four or five bedrooms. Construction of One Grantai was completed in 2010 but the developer had difficulty in getting an occupancy permit. The Land and Public Works Bureau told Business Daily in June that this was because of changes the building plans.
Pricey island For the first time, prices of residential space in Taipa surpassed 100,000 patacas a square metre. The price per square metre hit 103,267
August 14 Chinese Estates tells the Hong Kong Stock Exchange that the La Scala land grant is invalid. August 15 The government says it will take back the land. Moon Ocean has 15 days to object.
patacas, roughly 25 percent more than in the first quarter, in the Pac On and Big Taipa Hill area. Mr Wong said such high prices would be limited to areas with upmarket developments. The residential property market would maintain an upward trend, although prices were unlikely to go so high again in the near future. “The price will continue to rise in the second half due to limited supply and more expatriates coming to live in Macau,” Mr Wong said, sticking to the forecast his company made last month. The average price of residential space in the city was 55,427 patacas a square
metre in the second quarter, 21.9 percent more than in the first. Flats in Taipa sold for an average of 66,804 patacas a square metre, 38.7 percent more, and flats on the peninsula went for 47,641 patacas a square metre, a 15-percent increase. The average price in Coloane, however, slipped by 6 percent to 78,197 patacas a square metre. More than 5,550 apartments were sold in the second quarter, more than in any quarter since the special stamp duty was introduced in June last year. The average price of office and industrial space has also continued to rise in the second quarter.
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business daily August 16, 2012
macau
Kai-Tak threatens to rain on Macau’s gaming prospects Tropical storm’s possible landfall near Hong Kong this weekend Associate Editor
The wrong kind of visitor – typhoon season threatens Macau’s fragile gaming growth
A
ugust is likely to produce gaming revenue growth of two percent year-on-year if the daily run rates seen in the first 12 days of the month hold steady says J.P.Morgan in Hong Kong. If the mass-market growth of circa 30 percent seen in July is repeated, it implies another relatively lean month for the VIP segment. But that forecast could be clouded further if Tropical Storm Kai-Tak makes landfall in or near Macau or Hong Kong at the weekend – normally the highest-grossing time of the week for Macau’s casinos. The cyclone was midway between the Philippines and Hong Kong last night. Macau’s Meteorological and Geophysics Bureau said on its website yesterday evening the storm was moving at a maximum wind
speed of 79 kilometres per hour (49 miles per hour). On its current track the cyclone is expected to make landfall just a few miles west of Hong Kong in Shenzhen, Guangdong province on Friday. Even if it keeps to that path and doesn’t directly strike Macau, it could create rough sea conditions and cause the cancellation of ferry services between Hong Kong and Macau.
Ferries vital Hong Kong residents account for around a quarter of all Macau’s visitors, and many more arrivals transit via the neighbouring Special Administrative Region. Typhoon Vicente, the Category 9 storm that hit Macau in late July shaved at least 700 million patacas
Gross profit up 11pct at Melco’s Asian slot unit
E
ntertainment Gaming Asia Inc. – a unit of Hong Konglisted Melco Group chaired by Lawrence Ho Yau Lung – has reported its half year earnings up to June 30. The company, formerly known as Elixir Gaming Technologies, Inc., specialises in operating slot machines in third party-owned gaming halls in emerging Asian markets including the Philippines and Cambodia. It is also a developer and manager of small casinos under the Dreamworld brand in Indochina. In addition the firm makes and sells casino gaming chips for the Macau and Australia markets via its wholly owned subsidiary Dolphin Products Pty Ltd. For the six months to June 30, Entertainment Gaming Asia recorded gross profit (i.e. revenue minus cost of goods sold) of US$5 million (40
million patacas), up 11 percent from the US$4.5 million recorded in the equivalent period a year earlier. The company said revenue from its gaming operations increased, while costs such as equipment depreciation grew at a slower rate. Selling, general and administrative expenses rose by approximately US$468,000 to US$1.6 million for the half compared to US$1.2 million in the same period of the prior year. Included in the increase was approximately US$75,000 of startup costs related to the May 2012 opening of Dreamworld Casino in Pailin, Cambodia. Entertainment Gaming Asia is listed on New York’s Nasdaq and had a market capitalisation of US$67.6 million at the close of trade on Tuesday. A.E.
(US$87.6 million) off that month’s revenues said analysts – equivalent to around a whole day’s casino takings for the city. It pushed the year-onyear expansion down to just 1.5 percent, the lowest seen since 2009. New storms notwithstanding, Kenneth Fong of J.P. Morgan says the August tally should finish at around 25.3 billion patacas with the higher margin mass market gaming again responsible for most of the upside, with a likely 25 to 30 percent expansion year-onyear. He said from August 7 to 12 the market was producing daily revenues of 833 million patacas, compared to 793 million patacas for the equivalent period in July. “From what we see from the foot traffic and discussion with the operators, [the] high margin mass segment is still very strong, and should continue to track a 25 to 30 percent year-on-year growth,” said Mr Fong in a note to investors. “Based on the current run rate, if we assume a daily run rate of 840 million patacas for the remaining days in the month, August should finish at around 25.3 billion patacas or up 2 percent year-on-year,” he added.
China pickup “From the fundamental point of view, with mass market (50 percent of earnings) still growing strongly at 30 percent year-on-year, VIP segment stabilising and potentially resuming growth in the fourth quarter on the back of more China loosening (our China economist saw more positive signs of growth momentum pickup), we are turning incrementally more positive for the Macau sector here,” stated Mr Fong. Ben Lee of IGamiX Management & Consulting Ltd said in his Macau Gaming Gazette that the revenue growth pickup seen in the six days to August 12 was probably linked to an improvement in the weather in Guangdong’s coastal cities that weekend. In the first six months of this year, Guangdong supplied 49 percent of the 8.1 million visitors from mainland China. Many of them use ferries from coastal cities to get here.
Market consolidation ‘positive’: MGM China boss Grant Bowie, the chief executive of MGM China Holdings, told Business Daily at a recent briefing on the company’s second quarter results that people were losing sight of the phenomenal growth already achieved. “Taking a rest or a pause is a lot more advantageous than taking a crash. What I think we’re seeing in the junket market is a rest and a consolidation period. I think that’s a very positive thing to happen in our marketplace after the significant growth,” he stated. “I think we all understand there’s going to be something of a rebalancing between the junket business and the mass market. In terms of market penetration into China, the mass market has significant opportunities for sustainable future growth,” added Mr Bowie. Bill Lerner of Union Gaming Group said in a note commenting on the eight percent year-on-year rise in package holiday visitors in June that there was still plenty of scope for Macau to penetrate mainland markets beyond Guangdong. “We believe visitation and mass market will continue to grow over the short-, medium-, and longer-terms driven by the one-two-three punch of wealth generation in China, ease of access to Macau (numerous infrastructure projects including new checkpoint, expansion of the [Gongbei] border gate and Cotai ferry terminal) and increased penetration of Chinese consumers,” stated Mr Lerner.
Grant Bowie of MGM China Holdings – market taking a rest
August 16, 2012 business daily | 5
MACAU
Dispute with auditors delays Macauslot results – again Firm-avoided punishment even though it has announced its annual results late six years in a row Vítor Quintã vitorquinta@macaubusinessdaily.com
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port betting operator SLOT, Sociedade de Lotarias e Apostas Mútuas de Macau Lda, failed to announce its annual results on time for the sixth consecutive year this year due to ‘differences in opinion’ between the company and its auditors. Macauslot’s 2010 results were published in the Official Gazette yesterday, more than a year later than the 2010 results of the city’s other gaming concessionaires. The law says a concessionaire has until June 30 the following year to announce its results for any given calendar year. But 2005 was the last year Macauslot released its figures on time. This is the second time the company’s results have been more than a year late. It released its 2008 results in September 2010. The Gaming Inspection and Coordination Bureau confirmed to Business Daily that it received a request from Macauslot “for the delay in submission”. “Reason provided by the concessionaire for the delay is due to the fact that the auditors have other opinion on some accounting treatment that is different from the management,” the bureau revealed. Macauslot’s management report was ready in three months but the auditor’s report took more than 12 months to complete. Business Daily asked the company to comment but had not received a reply by press time.
Macauslot and other gaming concessionaires must by law publish their annual results within six months of the end of the year (Photo: Manuel Cardoso)
MOP64.4 million Macauslot net profits for 2010
No fine The law says concessionaires that fail to publish their annual results on time are liable to a fine of between 10,000 patacas (US$1,250) and 1 million patacas for each day they are late. Macauslot’s 2010 results came out 411 days late, making the company, in theory, liable to a fine of between 4.1 million patacas and 411 million patacas. But the bureau confirmed no fine would be applied to the operator, as “the gross gaming revenue figures and concession payment reflected in the financial statements have been verified”. In addition, authorities said, the “difference in their [Macauslot and the auditors] opinions have no significant impact on the fair presentation of the financial statements”. As such, “we therefore permit Macauslot for their delay in submission,” the bureau confirmed. Almost 20 gaming concessionaires and public utilities are required to publish their annual results in the Official Gazette. Only five have announced their results late in the past decade – and four of them were established by Stanley Ho Hung Sun’s Sociedade de Turismo e Diversões de Macau (STDM). One is Macauslot. Another is port operator Macauport, Sociedade de Administração de Portos SA, of which STDM owns 55.17 percent. It has published its results late seven times since 2002.
World Cup boost The others are greyhound racing company Macao (Yut Yuen) Canidrome Co Ltd and Chinese
lottery operator Sociedade de Lotarias Wing Hing Ltda, which announced their results for last year one month late. The only other tardy company that is not part of STDM is electricity distributor Companhia de Electricidade de Macau — CEM SA, which published its 2005 results four months late. Macauslot almost doubled its net profit in 2010 and attributed this to new promotional products linked to the World Cup football tournament in South Africa in that year. The company posted net profit of 64.4 million patacas, 90 percent more than a year before. Revenue rose more slowly, by 31.9 percent to 459 million patacas. Revenue from betting on football grew fastest, by 36.2 percent to 380 million patacas. The government extended this week Macauslot’s monopoly of sport betting until 2015, dealing a blow to other companies seeking a share of the non-casino sport betting market here, or to run sport books in casinos. Gaming Inspection and Coordination Bureau data indicate that sport betting business in general slowed slightly last year but rebounded in the first half of this year. The data show that with the Euro 2012 football tournament having been held in Poland and Ukraine in June, revenue from sport betting in the first half rose to 264 million patacas, 16.3 percent more than a year before, and betting turnover rose by almost one-third to 3.9 billion patacas.
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business daily August 16, 2012
macau Galaxy Macau to host Asian beer festival The Asian Beer and Food Festival is coming to Macau next month. The event, hosted by Galaxy Macau from September 8 to 16, brings together some of Asia’s best-known beer brands, such as Asahi, San Miguel, Tsingtao and Macau Beer. It also promises a wide range of lesser-known brews from Japan, Thailand, the Philippines, South Korea and China. The event will be complemented by some of the region’s favourite foods. Chefs from the Cotai resort’s restaurants will create dishes inspired by traditional street foods from around Asia.
Issue of plastic billed in yuan goes ballistic Credit cards billed in yuan account for 15 per cent of all cards on issue, and the proportion is rising
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he number of credit cards on issue grew by 4 per cent in the second quarter of this year to just under 598,500, which means the city now has more credit cards than people. The number of cards billed in yuan rose by 8.4 per cent to almost 90,400, growing much faster than the number of cards billed in patacas, which rose by 3.5 per cent to 440,000, and the number of cards billed in Hong Kong dollars, which increased by 1.4 per cent to about 68,300. The number of cards billed in yuan
grew at an even more phenomenal rate in the 12 months ended June, rising by nearly 82 per cent. There were 17.8 per cent more cards billed in Hong Kong dollars in the second quarter than a year before, and 7.3 per cent more cards billed in patacas. At the end of 2009, there were just 16,069 cards billed in yuan in the city, about 4.5 per cent of the total. The number has since increased nearly fivefold, accounting for 15 per cent of the total at the end of June. Goods and services worth 2.8 billion
pacatas (US$350.5 million) were charged to credit in the second quarter, 0.9 per cent more than in the first three months of the year. They paid back 2.7 billion patacas, including interest, 8.9 percent less. The combined credit limit on all
cards on issue reached 9.9 billion patacas in the second quarter, 5 percent more than in the first. The percentage of cardholders delinquent in their repayments fell to 0.72 per cent from 0.88 percent. X.C.
Corporate Notebook
One more batch of mixed results for local insurances T
he Macau branch offices of another three insurance companies announced their annual results this week. The results confirm the trend highlighted in this column in the past that general insurers are making good returns and that life insurance is a loss maker. Two of the companies, which published their results yesterday, are small general insurers. Both reported handy profits. Min Xin Insurance Co Ltd’s branch here turned in an after-tax profit of just under 1.2 million patacas (US$150,000), the equivalent of 7 percent of its premium income. Slightly less than 45 percent of its premium income came from fire insurance.
Chartis Insurance Hong Kong Ltd’s branch posted a far more impressive net profit of about 8.8 million patacas, the equivalent of about 24 percent of its premium income of 36.6 million patacas. HSBC Life (International) Ltd’s branch operates a far bigger business. It had income of more than 146 million patacas in life insurance premiums but lost 26.7 million patacas in the past financial year, adding to losses accumulated in previous years amounting to 18.9 million patacas. As these insurance businesses are not incorporated here, they depend on their headquarters for operating funds, which fulfil the role of equity.
Company Net equity premium income
Net profit (loss)
Min Xin
14,866,017
16,558,998
1,174,790
Chartis 12,850,494 36,596,499 8,795,367 HSBC Life
73,215,170
146,313,079
(26,729,710)
Values in patacas
These operating funds, which may include profits retained from previous years, are used to calculate the net equity values in the table below. J.I.D.
Weather Beijing 31/21o C Changchun 27/17o C
Harbin 28/16o C
Xian 32/21o C Shanghai 35/27o C Chengdu 36/25o C Kunming 27/18o C Haikou 32/24o C Sanya 32/27o C
Guangzhou 34/27o C
MACAU (13-18 August) Day
Temperature
Humidity
08/13
25/29o C
75/95 %
08/14
26/31o C
60/95 %
08/15
27/32o C
55/90 %
08/16
27/31o C
60/95 %
08/17
27/31o C
60/95%
08/18
27/32o C
60/95 %
Shenzhen 34/24o C
ASIA (today)
Hong Kong 31/26o C
Manila
TOKYO
Jakarta
29/23o C
31/25o C
33/27o C
31/23o C
Macau 33/27o C
Bangkok
SEOUL
K. lumpur
30/27o C
SINGAPORE
29/24o C
34/25o C
taipei
34/26o C
August 16, 2012 business daily | 7
MACAU
Tech body guns for ISO standards The Macau Productivity and Technology Transfer Centre aims to help enterprises to go global by obtaining ISO certification Xi Chen xi@macaubusinessdaily.com
Photo by Manuel Cardoso
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he Macau Productivity and Technology Transfer Centre reportedly intends to double its budget for the coming year to 40 million patacas (US$5 million) and use the extra money to help companies meet international standards. The Chinese-language Macao Daily News quoted the director of the centre, Shuen Ka Hung, as saying the centre also wanted to offer more training courses for resident workers. Mr Shuen, the former head of the Labour Affairs Bureau, said he had visited numerous enterprises and associations since taking up the post in April. He hopes the centre can help businesses meet global standards, including International Organisation for Standardisation (ISO) certificates. The centre plans to publicise a list of enterprises that meet ISO standards to atract outside business partners. ISO certificates, including ISO 9000 certificates for quality management and ISO 14000 certificates for environmental management, are internationally recognised as indicating the quality and safety of products and services. With ISO certificates, enterprises here can be recognised abroad, allowing them to open up new markets. The centre is also planning to to offer an “overseas testing service”, in order to assist enterprises in having their products tested in reputable laboratories abroad, with a view to making their products more acceptable internationally.
It will work closely with the government to promote the development of creative industries. About 8,000 students are taking classes at the centre, 2,000 of whom are taking classes in subjects related to fashion and crafts. Of the students enrolled in these classes, 40 per cent have jobs in the clothing industry waiting for them when they finish their courses, the Macao Daily News reported.
Smoking gives factory output a second wind
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nprecedented output of tobacco products in the second quarter of this year helped manufacturing industry to continue its climb out of the record trough it fell into in 2009. Statistics and Census Service data released yesterday show that the manufacturing production index rose to 63.4 points in the second quarter, 8.9 percent higher than in the first. Of the manufacturing production sub-indexes, the tobacco products output index rose quickest, by 28.7 percent to 200.5 points, twice as high as its level in 2008, the base year for the index. The food and beverage output index
rose by 2 percent to 108.1 points. The non-metallic mineral products output index rose by 3.5 percent to 74.1 points. The index tracks the manufacturing of cement, ceramics, glass and lime, and so reflects the boom in construction. The textiles output index rose by 11 percent, but to only 8.1 points – a long way below the level of 179.5 points it reached in 2003. The apparel output index fell by 1.9 percent to 10.3 points. The demise of World Trade Organisation quotas in 2005 ended a golden era for the city’s textiles and clothing exports. The industry has struggled to survive ever since. V.Q.
8 |
business daily August 16, 2012
greater china Foxconn invests in Indonesia
PBOC rates stable
Taiwan’s Foxconn Technology Group is to set up an operation in Indonesia with plans to invest US$5-10 billion over five to 10 years and starting with the assembly and production of 3 million handsets per year, Indonesia’s Trade Minister Gita Wirjawan told reporters on Tuesday. The first investment will start in October and in phase two of the project, starting in July 2013, Foxconn will build a plant and increase output to 10 million units per year.
China’s benchmark money market rate was little changed on Tuesday after the central bank signalled that it aims to keep short-term funding costs largely stable, traders said. In a move to help stabilise liquidity supply, the People’s Bank of China (PBOC) injected 50 billion yuan (US$7.86 billion) into the market via seven-day reverse repos in its regular open market operations on Tuesday, offseting the same amount of reverse repos that matured on the day.
Top policy think-tank proposes rise in railways spending Concerns rise that growth target may be missed
C
hina must step up pro-growth policies over the next three months or risk missing its annual growth target of 7.5 percent, a senior official at a top government think-tank told Reuters. Zheng Xinli, vice chairman of China Centre for International Economic Exchanges (CCIEE), said Beijing must boost investment growth, preferably by raising spending on the country’s high-speed rail network, to stop a slide in economic growth that has lasted for six straight quarters and is running into a seventh. “Until now there have been no signs of a rebound in the economy. The GDP and factory output growth may slide further in the third quarter,” Mr Zheng said in an interview. China’s gross domestic product (GDP) grew 7.6 percent in the June quarter from a year earlier, its slowest expansion in more than three years. “If China’s economy does not bottom out in the third quarter, it would be hopeless to make it happen in the fourth quarter and we might miss the annual growth target of 7.5 percent,” said Mr Zheng, whose think-tank – like most of China’s top research institutions – is mandated to make policy recommendations
direct to the top levels of government. CCIEE operates under the auspices of China’s top economic policy body, the National Development and Reform Commission, and its chairman is former Vice Premier Zeng Peiyan. “If China’s economy does not show signs of recovery in the third quarter, there will be employment problems, further deterioration of company profits and debt problems,” said Mr Zheng, also a senior official on China’s parliamentary advisory body, the Chinese People’s Political
KEY POINTS Economy may slide further in Q3 New pro-growth policies needed now Rail spending key to lifting economy
Consultative Conference (CPPCC). Beijing is determined that the Communist Party’s once-a-decade leadership transition, set for this autumn, happens against a backdrop of economic prosperity and social stability that it says its one-party rule provides. The government has been fine-tuning economic policies to support growth since the autumn of last year, cutting interest rates twice, releasing an estimated 1.2 trillion yuan (US$190 billion) from bank reserves for new lending and fast-tracking a raft of state-backed investment projects. Data readings at the start of the third quarter suggest those policy steps have yet to gain traction as exports stalled in July, growing just 1 percent on the year, while factory output growth was its slowest since May 2009.
Economic boost required The downbeat figures prompted a number of investment banks to cut their 2012 economic growth forecasts for China – already on course for its slowest full-year of growth since 1999, according to the latest Reuters poll that has a consensus estimate of 8 percent.
“Under such a difficult situation, China needs to keep a certain scale of investment to realise economic restructuring and lift the economy,” said Mr Zheng. He said action was needed to boost domestic consumption and stimulate private-sector investment in railways, public utilities and infrastructure construction. China’s consumer inflation was likely to ease again in August and signs of deflation may emerge, the official said. Mr Zheng’s favoured option is to
Bailouts of solar companies clouded, need more state aid Debt papers trading at huge discounts
D
ebt in two of China’s biggest solar companies is trading at distressed levels, putting pressure on policy makers to provide financial aid that might have been used to combat a slowdown in Asia’s biggest economy. Convertible notes due March 2013 sold by Suntech Power Holdings Co., the world’s largest solar panel maker, fetched 43 cents on the dollar in New York on August 14, after sinking to a record-low 32 cents on August 6. LDK Solar Co.’s yuandenominated bonds due February 2014 traded at 27 percent of face
value on the Singapore Exchange on August 13. The two companies said since March that they may fail without access to more funds. State aid has already been deployed in support of China’s solar industry, which is grappling with a global supply glut and anti-dumping complaints in the U.S. and Europe. The government of the eastern Chinese city of Xinyu said in July it would pay a portion of the debts of LDK, the world’s second-biggest maker of wafers that convert sunlight to power. Optimism a bailout will come helped the company sell three-
year debt in Shanghai in December at a 6.8 percent yield when its similar-maturity offshore notes were yielding about 50 percent. “Things like LDK Solar or Suntech are where we see meltdowns and a possibility of a domino effect in provoking credit risks,” Patrick Chovanec, an associate professor at Tsinghua University in Beijing, said in a Bloomberg Television interview last week. “The more money goes into bailouts, the less money is available for stimulus.” Suntech, LDK and five other Chinese companies in the Bloomberg Global
Solar Index had the equivalent of US$2.2 billion of bonds outstanding as of August 13, including US$1 billion maturing between now and 2013, according to data compiled by Bloomberg. The selling price for Chinese crystalline silicon modules, a global benchmark, averaged 89 cents per watt this year, down from US$1.24 in 2011, US$1.80 in 2010 and as high as US$4 in 2008. “There is still strong opposition to the LDK bailout,” said He Weisheng, a fixed-income strategist in Shanghai at Citigroup Inc. “It shows the sideeffects of the massive 2009 stimulus, when bad investments crowded out good investments by sucking in more credit.” Bloomberg
August 16, 2012 business daily | 9
greater china Wal-Mart online deal cleared
Asbestos in Chinese-made cars
China approved on Tuesday a plan by Wal-Mart Stores Inc. to gain control of a local online supermarket, but imposed conditions on the deal over concerns it could hinder competition. China’s Ministry of Commerce allowed an increase in Wal-Mart’s stake in the holding company to 51.3 percent from the previous 17.7 percent. The acquired business cannot use its online platform to provide Internet services for other parties in the deal and will be limited to online retailing.
Some 23,000 cheap Chinese-made cars were yesterday recalled in Australia after asbestos was found in their engines, with unions demanding to know how they came to be in the country. Importer Ateco Automotive instructed all Chery and Great Wall dealers to stop selling affected vehicles, with the Australian Competition and Consumer Commission (ACCC) closely watching developments. The asbestos was found bound in gaskets in the engine and exhaust systems. Australia has banned the importation or use of asbestos since 2004.
Carlyle buys stake in private health care company Company sees promise in a market growing at 15pct annualy
C
Ready for another spending ride
boost spending on what is already the world’s largest high-speed railway network. Some 8,358 kilometres of track in operation by the end of 2010, according to China’s official Xinhua news agency. China’s Ministry of Science and Technology says the government plans to have 16,000 kilometres of high-speed rail track laid by 2020. Total railway infrastructure spending was about 708 billion yuan in 2010. China last month hiked its total railway spending plan for 2012
by 64 billion yuan (US$10 billion) to 580 billion yuan, updating a plan published earlier in the year. The heavily indebted Ministry of Railways lost 7 billion yuan in the first quarter, local media have reported. China’s Ministry of Railways – the country’s biggest issuer of debt behind the treasury – came under intense scrutiny in 2011 after two high-speed trains collided, killing 40 people and triggering a clampdown on construction of new lines. Reuters
arlyle Group LP, the world’s second-largest privateequity firm, purchased a 13.5 percent stake in Meinian Onehealth (Group) Co., the biggest private medical check-up services company in China. The investment was made by Carlyle’s yuan-denominated fund, established with Beijing’s municipal government in 2010, the company said in a statement yesterday, without giving a price for the stake. The domestic fund reached 3.2 billion yuan (US$503 million) in July last year, according to Carlyle. Private-equity investors are turning to China’s growing middle class as the volume of deals in Europe and the U.S. shrinks. The check-up service industry in China generates 40 billion yuan of annual revenue, and is growing at 15 percent a year, driven by increasing awareness of health issues and rising disposable income among the nation’s middle class, said Janine Feng, a managing
director at Carlyle, in a phone interview yesterday. “The industry is historically dominated by public hospitals, but in the last 7 to 8 years you’ve seen the private sector entering health-care services,” she said. Carlyle’s other investments in health care companies will help Meinian expand, it said in the release yesterday. Meinian offers medical examinations, disease screening, and doctor referral services to individual and corporate customers. The company became China’s largest private provider of preventive health care check-ups in 2011, with 83 clinics in 41 cities, around 20 of which will be opened by the end of this year, according to the release. Meinian Onehealth is the second investment made by Carlyle’s Beijing fund, after another investment in a consumer company last year, Ms Feng said without disclosing the other company. Bloomberg
China risking water crisis Environmental campaigners Greenpeace urged China on Tuesday to review plans for a huge expansion in coal mines and power plants, warning of a water crisis in the country’s already arid north. Beijing plans to increase coal production by 2.2 billion tons a year by 2015 as it tries to meet the country’s growing demand for electricity, and is building 16 new facilities, most of them in the northern provinces of Inner Mongolia, Shaanxi, Shanxi and Ningxia. But a new Greenpeace report said this would require up to 10 billion cubic metres (350 billion cubic feet) of water annually, creating a “grim future” for a region already suffering severe water shortages. Greenpeace said the vast amounts of water needed for coal extraction and electricity production would have a severe impact on the Yellow River, with 41 percent of the country’s coal reserves located on the river’s upper reaches. Areas surrounding some of China’s biggest coal power bases have already suffered “accelerated grassland and wetland degradation”, forcing the region’s traditional herders off the land, it said. Supplies of drinking water could also be affected by the plans, as the Yellow River’s tributaries are prone to drying up because of coal mining. AFP
China, N. Korea sign agreements on economic zones
Rainy days approaching
China said on Tuesday it signed agreements with North Korea pushing forward their joint development of economic zones. The agreements cover the setting up and operation of management committees in the zones in North Korea, electricity supply in one of them, and agricultural cooperation, China’s commerce ministry said in a statement. They were signed as part of a high-level meeting between the two sides presided over by China’s commerce minister Chen Deming and Jang Song-Thaek, a top North Korean official who is the uncle of leader Kim Jong-Un. The Korean Central News Agency reported on Monday that Mr Jang was leading a delegation for a third round of talks on the Hwanggumphyong and Wihwado Economic Zone and the Rason Economic Trade Zone. North Korea and China are jointly developing the former on two islands in the estuary of the Yalu river that marks their border. The Rason zone is in the northeastern part of North Korea near its borders with China and Russia. Hwanggumphyong and Wihwado will focus on sectors including information and tourism to “become an intelligence-intensive emerging economic zone.” The Rason zone, meanwhile, will focus on areas including raw materials, equipment manufacturing, high-tech, apparel and high-efficiency agriculture, the statement said. AFP
10 |
business daily August 16, 2012
asia Singapore retail sales down Singapore’s retail sales fell in June as a global slowdown from Europe to China caused the economy to shrink last quarter. The retail sales index slipped 0.9 percent from a year earlier after gaining a revised 0.6 percent in May, the statistics department said yesterday. Adjusted for seasonal factors, retail sales fell 0.4 percent in June from the previous month, when it dropped 2.7 percent, yesterday’s report showed. The government last week cut its growth forecast for the year to a range of 1.5 percent to 2.5 percent from an earlier prediction of as much as 3 percent.
spending curbs growth. The stock had closed at A$4.18 on Tuesday, up 22 percent this year amid takeover interest in the company, which was spun out of racecourse betting group Tabcorp Holdings Ltd last July. The S&P/ASX 200 index rose 5.8 percent over the same period.
High rollers
Echo has a licence to run Sydney’s only casino until 2019
Echo’s full year profit plunges Weak consumer sentiment, costs weigh on results David Fickling
E
cho Entertainment Group Ltd, in which casino groups Genting Bhd. and Crown Ltd are vying for influence, posted full-year earnings that missed analyst estimates as a partner collapsed and gambling stalled. Net income fell to A$42 million (US$44 million) in the year through June, the Brisbane-based company said in a regulatory statement yesterday, compared with the A$71 million average of five analyst estimates compiled by Bloomberg. The company
lost about A$28 million in the second half, according to calculations based on the company’s A$70 million first-half net income. Echo has a licence to run Sydney’s only casino until 2019, and has spent A$870 million refurbishing The Star gaming complex on the shores of city’s harbour to attract so-called VIP gamblers. Weak consumer spending, rising costs at The Star, the collapse of SilkStar Global Marketing Ltd, a company which markets casinos tours
to high-rolling gamblers, and a lower win rate from high rollers, all weighed on profits. It was an “unsatisfactory performance,” Matt Bekier, chief financial officer, told an investor call after the announcement. “It also reflects a softer economy. Customers are playing with a smaller wallet,” he said.
Consumer confidence Australian consumer confidence fell by the most in five months in August, according to a
Westpac Banking Corp. and Melbourne Institute survey yesterday. Echo shares fell 2.6 percent to A$4.07 in Sydney trading yesterday. “This company’s more about whether Genting or Crown will make a move on them,” Adam Alexander, an analyst at Goldman Sachs Group Inc. in Melbourne, said before the announcement. The Star’s location has seen companies associated with Genting and Crown acquire stakes in Echo and seek more even as stalling consumer
Earnings before interest, tax, depreciation and amortisation were A$266 million over the year, down 40 percent from a year earlier and below its June 14 forecast of A$270 million to A$315 million. The result included a charge of A$30.3 million for the liquidation of SilkStar. Genting, Crown and Echo are all seeking to attract highrollers who spent billions in Macau’s casinos. Crown, controlled by billionaire James Packer, is seeking regulatory permission to increase its stake to 25 percent from the current limit of 10 percent. Companies associated with Genting and its Chairman Lim Kok Thay are also seeking approval to increase their Echo investment above 10 percent. Melbourne-based Crown last week reported a 53 percent jump in earnings to A$513.3 million as profit from its Macau casinos surged and Australian revenue from high-rollers surged. Bloomberg
India must tackle economy – PM Forecasts GDP growth over 6.5pct this year
I
ndian Prime Minister Manmohan Singh forecast economic growth of more than 6.5 percent for this fiscal year, a more optimistic take than a recent spate of private projections that saw growth slowing to as low as 5.5 percent. “Last year our GDP grew by 6.5 percent. This year we hope to do a little better,” Mr Singh said in his annual Independence Day speech yesterday, promising that faster infrastructure development would boost growth. “Recently we have taken new measures to accelerate infrastructure development. Ambitious
targets have been fixed in roads, airports, railways, electricity generation and coal production,” he said. Last week, global ratings agency Moody’s became the latest organisation to lower its growth forecast for India, predicting an expansion of 5.5 percent in fiscal 2012/13. That would be India’s lowest growth in a decade. Mr Singh accepted the economy was going through a difficult phase and blamed the global financial crisis and domestic politics. He said India must treat measures to boost economic growth as a matter of national security after his allies opposed steps
to attract overseas investors. “If we do not increase the pace of the country’s economic growth...it most certainly affects our national security,” he said. Mr Singh is struggling to salvage his development agenda as gridlock over attempts to open up the economy, graft scandals and elevated inflation deter investment, contributing to the slowest economic growth in almost a decade. India faces the fastest pace of price increases and the widest budget deficit among the large emerging markets. “As far as creating an environment within the
If we do not increase the pace of the country’s economic growth... it most certainly affects our national security PM Manmohan Singh
country for rapid economic growth is concerned, I believe that we are not being able to achieve this because of a lack of political consensus on many issues,” Mr Singh said. Opposition by his coalition allies led by West Bengal state’s Chief Minister Mamata Banerjee has led to the government foregoing potential investment
August 16, 2012 business daily | 11
asia Sharp slides on shaky outlook Shares in Sharp Corp tumbled as much as 15 percent yesterday to their lowest in almost 37 years, with investors spooked by broker reports questioning the ailing Japanese TV maker’s revised outlook. Deutsche Securities Inc. and Goldman Sachs warned that Sharp, which is renegotiating a planned investment by Hon Hai Precision Industries Co. Ltd, will post even bigger losses this year and will rely on its main banks to stay solvent. Since releasing weaker-than-expected quarterly results on August 2 along with a bigger operating loss forecast of 100 billion yen (US$1.3 billion), Sharp’s market value has dropped by more than a third.
Australia court backs tobacco law Bill to introduce plain cigarette packs
A
world-first Australian law requiring tobacco companies to sell cigarettes in uniform packaging was upheld by the nation’s top court, a ruling that may set a precedent for other countries to follow. The High Court dismissed yesterday claims by Japan Tobacco Inc., British American Tobacco Plc, Philip Morris International Inc. and Imperial Tobacco Group Plc that the Australian government illegally seized their intellectual property by prohibiting the display of trademarks on packs. The judges gave no reasons for the majority decision and said they would be published later. The ruling is a victory for a government faced with A$ 3 1.5 billion (US$33 billion) in annual health costs from smoking, a habit it estimates killed 900,000 Australians over six decades. “The tobacco industry has battled furiously to prevent Australia from becoming the first country in the world to implement plain packaging,” Rob Cunningham, a senior policy analyst at the Canadian Cancer Society in Ottawa, said yesterday. “The industry knows that plain packaging is a massive threat and that if Australia implements plain packaging then other countries are sure to follow.” The decision means Australia will become the
New tobacco law takes effect on December 1
first country to introduce plain cigarette packs when the law takes effect on December 1, with governments in Europe, Canada and New Zealand
US$33 bln Australia’s annual health costs from smoking
indicating interest in implementing similar legislation. “Today’s ruling literally changes the face of tobacco marketing,” Jorge Alday, associate director of policy with World Lung Foundation in New York, said in an e-mail. “Australia is adding a policy tool that will help other countries reverse decades of misleading messages.”
No logos The Australian law requires cigarettes to be sold with no company logos and with the same font for all brands on a dark brown background.
Graphic health warnings will cover 90 percent of the back of the package and 70 percent of the front. “This ruling sets a precedent for other countries in the region, particularly Asia, that are looking to pass evidence-based public health laws,” John Stewart, senior international organiser at the lobby group Corporate Accountability International, said. “Big Tobacco is looking toward Asia and the Pacific as a target market for expansion,” he said. The tobacco companies sued the government in the High Court and sought to overturn
the law, which they say deprives them of any use of their intellectual property. “Any company in similar circumstances, when faced with the loss of brands worth billions of dollars, would challenge such laws,” Sonia Stewart, a spokeswoman for Imperial Tobacco, said yesterday. Once a country implements a tobacco control measure, it becomes easier for other countries to do the same, Mr Cunningham said. Canada was the first to make pictorial health warnings mandatory in 2001 and about 50 nations followed suit, he said. Consultations on a British government plan to enforce standardised packaging for tobacco products ended last week, with the International Chamber of Commerce in the U.K. among bodies raising concerns. The plainpackaging requirements would probably breach a number of the U.K.’s international obligations, including World Trade Organization intellectual property agreements, said Andrew Wilson, director of policy at ICC. “The United States and other nations must stand with Australia and reject tobacco industry efforts to challenge the law as a violation of international trade,” Matthew Myers, president of Campaign for Tobacco-Free Kids in Washington, said in an e-mailed statement. Bloomberg
Far East seen raising US$526m in IPO
F Indian GDP rose 5.3 percent in the three months through March
from overseas insurers, pension funds and retailers including Wal-Mart Stores Inc. in the past year. A report yesterday showed inflation eased to a 32-month low of 6.87 percent in July while remaining the highest in the BRIC group, which also includes Brazil, Russia and China. Indian gross domestic
product rose 5.3 percent in the three months through March from a year earlier, the least since 2003. The Reserve Bank of India left interest rates unchanged for a second meeting last month at 8 percent. It lowered the benchmark repurchase rate in April by 0.5 percentage point for the first time since 2009. Reuters/Bloomberg
ar East Organization, Singapore’s biggest closely held developer, raised S$656.3 million (US$526 million) in an initial public offering of a hotel trust, three people with knowledge of the matter said. Far East Hospitality Trust plans to sell 705.7 million stapled securities at 93 Singapore cents apiece, the top end of a marketed range, the people said, asking not to be named as the information is private. The units were offered at 86 cents to 93 cents, according
to a prospectus filed with the Monetary Authority of Singapore this month. The IPO is the biggest this year in Singapore, where US$785 million has been raised in such sales so far in 2012 compared with US$7 billion in the first seven months of 2011, according to data compiled by Bloomberg. Ascendas Hospitality Trust started trading in the city last month after raising S$459 million. A stapled security allows investors to purchase both a trust and a related company. The Far East
Hospitality units comprise a real estate investment trust and a business trust, according to the listing prospectus. Far East Hospitality will initially include 11 properties, according to the offering document. Among these are seven hotels, including Albert Court Village Hotel and Orchard Parade Hotel, as well as four serviced residences. Far East Hospitality forecasts a dividend yield of as much as 6.5 percent for 2012. Reuters
12 |
business daily August 16, 2012
MARKETS Hang SENG INDEX NAME AIA GROUP LTD ALUMINUM CORP-H
PRICE
Day %
VOLUME
27.15
-0.1838235
21161334
3.33
-2.058824
7662247
BANK OF CHINA-H
NAME
PRICE
Day %
VOLUME
CHINA UNICOM HON
12.26
-3.464567
19436322
CITIC PACIFIC
11.58
-2.360877
3111252
SANDS CHINA LTD SINO LAND CO
3
-0.6622517
282822129
5.34
-1.111111
19390029
BANK EAST ASIA
29.15
-0.8503401
2721906
COSCO PAC LTD
BELLE INTERNATIO
14.22
-2.335165
8868315
BOC HONG KONG HO
24.1
-2.822581
22945990
CATHAY PAC AIR
12.8
-1.386749
4566971
BANK OF COMMUN-H
CHEUNG KONG CHINA COAL ENE-H CHINA CONST BA-H
109.7
-1.702509
5189167
7.23
-3.728362
33714333
5.38
-0.7380074
190677220
CHINA LIFE INS-H
21.15
-3.424658
53584080
CHINA MERCHANT
24.3
-0.4098361
1135050
NAME
PRICE
Day %
63.3
0.9569378
3086977
25
2.880658
27923427
POWER ASSETS HOL
VOLUME
13.5
-1.746725
4912629
SUN HUNG KAI PRO
103.7
-1.984877
4480163
3109499
SWIRE PACIFIC-A
91.45
-0.4896627
1609720
-1.381693
3073291
TENCENT HOLDINGS
230
-0.1736111
5829321
27.45
-0.9025271
4983273
TINGYI HLDG CO
19.62
-2.144638
4404144
HANG SENG BK
110.6
-0.3603604
749241
WANT WANT CHINA
9.26
-1.384452
8837652
HENDERSON LAND D
46.65
-2.405858
3735213
WHARF HLDG
46.6
-0.4273504
2258691
71.8
-0.2777778
1527335
CLP HLDGS LTD
66.1
-2.435424
4967559
15.36
-1.412067
59573499
10.6
0.1890359
ESPRIT HLDGS
11.42
HANG LUNG PROPER
CNOOC LTD
HENGAN INTL HONG KG CHINA GS
18.26
-0.436205
3211118
HONG KONG EXCHNG
106.4
-1.115242
2883935
HSBC HLDGS PLC
68.15
-0.9474727
9311686
68.7
-0.8658009
6408123
4.5
-1.098901
193480920
MOVERS
40
1 20300
INDEX 20052.29
CHINA MOBILE
91.45
-1.188547
13446794
HUTCHISON WHAMPO
CHINA OVERSEAS
17.62
0.4561003
18254278
IND & COMM BK-H
CHINA PETROLEU-H
7.41
-0.8032129
40657683
12.7
1.4377
57301991
HIGH
20291.68
CHINA RES ENTERP
22
-2.222222
2039775
MTR CORP
28.15
0.5357143
3978877
LOW
20023.85
CHINA RES LAND
14.98
-0.1333333
8521187
NEW WORLD DEV
10.28
-1.34357
8278960
CHINA RES POWER
16.28
-1.09356
2619023
52W (H) 21760.33984
PETROCHINA CO-H
9.71
-0.7157464
63155483
CHINA SHENHUA-H
30.15
-1.631321
9815977
PING AN INSURA-H
59.9
-1.561216
6296647
LI & FUNG LTD
8
20020
(L) 16170.35 13-Aug
15-Aug
Hang SENG CHINA ENTErPRISE INDEX NAME
PRICE
DAY %
VOLUME
AGRICULTURAL-H
3.17
1.92926
79098709
AIR CHINA LTD-H
4.75
-1.452282
5118000
ALUMINUM CORP-H
NAME
PRICE
DAY %
VOLUME
22.45
1.354402
4604800
CHINA PETROLEU-H
7.09
-0.1408451
31039338
ZIJIN MINING-H
CHINA PACIFIC-H
NAME YANZHOU COAL-H
PRICE
DAY %
12.76
0.9493671
VOLUME 9464868
2.41
0
17049136
3.21
0.9433962
6975968
CHINA RAIL CN-H
6.24
-1.265823
19223000
ZOOMLION HEAVY-H
11.54
6.654344
29164120
ANHUI CONCH-H
23.75
3.938731
20401882
CHINA RAIL GR-H
3.07
0.3267974
20591000
ZTE CORP-H
15.04
0.669344
6730935
BANK OF CHINA-H
2.93
2.447552
389843053
CHINA SHENHUA-H
27.85
1.272727
9273746
5.05
1
12754025
CHINA TELECOM-H
3.63
0.5540166
29684000
15.24
-5.925926
12577500
DONGFENG MOTOR-H
13.48
8.012821
20906528
CHINA CITIC BK-H
3.98
0.2518892
47624006
GUANGZHOU AUTO-H
6.68
2.769231
6689701
CHINA COAL ENE-H
7.23
1.402525
18024088
HUANENG POWER-H
4.89
1.242236
9826000
CHINA COM CONS-H
7.32
1.244813
21550789
IND & COMM BK-H
4.67
1.082251
260319980
CHINA CONST BA-H
5.21
1.165049
227493277
JIANGXI COPPER-H
16.26
0.8684864
7358345
BANK OF COMMUN-H BYD CO LTD-H
3.5
-1.408451
9866000
PETROCHINA CO-H
10.2
0.1964637
31650019
CHINA LIFE INS-H
18.2
0.7751938
17874467
PICC PROPERTY &
8.18
2.122347
14181021
CHINA LONGYUAN-H
4.49
-2.391304
5595164
PING AN INSURA-H
56.7
0.4428698
6430028
CHINA MERCH BK-H
14.64
1.385042
10070351
SHANDONG WEIG-H
7.94
-0.2512563
1144000
CHINA COSCO HO-H
MOVERS
2
2 9940
INDEX 9779.06 HIGH
9939.12
LOW
9765.12
CHINA MINSHENG-H
7.01
0.1428571
25184000
SINOPHARM-H
17.66
-1.450893
971312
52W (H) 11916.1
CHINA NATL BDG-H
9.47
3.04679
46809000
TSINGTAO BREW-H
46.65
-1.269841
207417
(L) 8058.58
10.88
1.872659
10960000
WEICHAI POWER-H
32.5
2.362205
1967864
CHINA OILFIELD-H
36
9760
13-Aug
15-Aug
Shanghai Shenzhen CSI 300 NAME
PRICE
DAY %
VOLUME
PRICE
DAY %
VOLUME
AGRICULTURAL-A
2.51
-1.181102
34835796
DAQIN RAILWAY -A
5.85
-1.680672
39142496
AIR CHINA LTD-A
5.51
-1.431127
9161430
DATANG INTL PO-A
4.73
-2.272727
6.04
-1.628664
4927920
DONGFANG ELECT-A
15.49
14.36
1.055595
10571206
EVERBRIG SEC -A
11.07
ALUMINUM CORP-A ANHUI CONCH-A
NAME
NAME
PRICE
DAY %
SAIC MOTOR-A
12.34
-0.483871
VOLUME 4676982
4248239
SANY HEAVY INDUS
11.57
-1.615646
11998160
-1.713198
4351104
SHANDONG GOLD-MI
34.06
-2.098304
3852345
-0.8064516
7287047
SHANG PHARM -A
11.72
1.559792
32301318
BANK OF BEIJIN-A
7.44
-1.717305
7487052
GD MIDEA HOLDING
9.58
0.209205
11198589
SHANG PUDONG-A
7.58
-2.820513
89555247
BANK OF CHINA-A
2.76
-0.7194245
7089036
GD POWER DEVEL-A
2.63
-0.3787879
24737851
SHANGHAI ELECT-A
4.23
-1.398601
2517747
BANK OF COMMUN-A
4.42
-1.339286
27894507
GF SECURITIES-A
12.75
-0.390625
12835025
SHANXI LU'AN -A
20.07
-2.04978
6498807
BANK OF NINGBO-A
9.82
-1.504514
11081879
GREE ELECTRIC
20.5
-0.09746589
9840339
SHANXI XINGHUA-A
40.06
1.289507
2436883
BAOSHAN IRON & S
4.14
-0.9569378
8304546
GUANGHUI ENERG-A
13.34
-1.185185
10055602
SHANXI XISHAN-A
14.38
-0.8959338
6680127
HAITONG SECURI-A
8.62
-2.045455
44997995
SHENZEN OVERSE-A
5.79
-0.6861063
16417788
28.71
2.977044
5469854
SUNING APPLIAN-A
6.47
10.03401
276738679
2.65
0.3787879
17961582
TSINGTAO BREW-A
34.48
-0.5767013
602464
14.43
-1.970109
3167335
CHINA CITIC BK-A
BYD CO LTD -A
3.87
-2.272727
12004428
HANGZHOU HIKVI-A
CHINA CNR CORP-A
3.67
-1.344086
10487117
HEBEI IRON-A
CHINA COAL ENE-A
7.49
-1.447368
5104795
HENAN SHUAN-A
63.83
-0.8697003
1544664
WEICHAI POWER-A
23.51
-1.052189
3652980
CHINA CONST BA-A
4.03
-0.7389163
9286791
HONG YUAN SEC-A
16.66
-0.8333333
12572498
WULIANGYE YIBIN
36.12
-0.7964845
12994477
CHINA COSCO HO-A
4.22
-1.631702
6357386
HUATAI SECURIT-A
8.43
-1.288056
9471590
XIAMEN TUNGSTEN
44.22
-1.580236
13951478
CHINA CSSC HOL-A
20.72
-1.847466
3327321
HUAXIA BANK CO
8.8
-2.330744
18666821
YANGQUAN COAL -A
15.01
-2.214984
8322598
CHINA EAST AIR-A
3.85
-0.2590674
4093424
IND & COMM BK-A
3.8
-0.7832898
24353665
YANTAI CHANGYU-A
57.33
2.631579
3891165
CHINA EVERBRIG-A
2.76
-1.075269
11073015
INDUSTRIAL BAN-A
12.53
-2.109375
30657970
YANTAI WANHUA-A
12.99
0.3088803
5141115
17.67
-0.2258611
3371976
INNER MONG BAO-A
37.94
-2.115583
31191356
YANZHOU COAL-A
18.59
-1.483837
1541224
CHINA MERCH BK-A
9.94
-2.261554
39470371
INNER MONG YIL-A
19.02
-2.160494
7725097
YUNNAN BAIYAO-A
63.75
1.11023
1788941
CHINA MERCHANT-A
9.91
-1.686508
10721215
INNER MONGOLIA-A
6.09
0.8278146
138300062
ZHONGJIN GOLD
21.72
-0.6404392
4367918
CHINA MERCHANT-A
20.8
0.7263923
5610715
JIANGSU HENGRU-A
29.51
-0.9066488
2779232
ZIJIN MINING-A
3.8
-1.298701
26386500
CHINA MINSHENG-A
5.95
-1.976936
54541743
JIANGSU YANGHE-A
9.24
-1.492537
21452828
CHINA NATIONAL-A
6.38
0.1569859
13071988
JIANGXI COPPER-A
11.35
-1.218451
10227715
CHINA OILFIELD-A
16.88
-2.652826
6372525
JINDUICHENG -A
CHINA PACIFIC-A
CHINA LIFE INS-A
144
-1.064926
1045951
ZOOMLION HEAVY-A
21.33
-1.885925
4049471
ZTE CORP-A
12.3
-2.070064
2986963
20.14
-1.031941
8729898
JIZHONG ENERGY-A
13.97
-1.827126
8812413
CHINA PETROLEU-A
6.13
-0.9693053
12435516
KANGMEI PHARMA-A
15.99
0.8832808
12273519
CHINA RAILWAY-A
4.47
-1.973684
11507080
KWEICHOW MOUTA-A
244.13
-1.361616
2272348
CHINA RAILWAY-A
2.54
-1.167315
15189238
LUZHOU LAOJIAO-A
41.38
-1.47619
4839160
CHINA SHENHUA-A
22.18
-1.553484
5502415
METALLURGICAL-A
2.27
-0.8733624
10128237
2.48
-0.4016064
7304271 64955218
MOVERS
42
4.76
-2.057613
19999770
4
-0.7444169
9090613
PANGANG GROUP -A
4.38
-1.351351
CHINA STATE -A
3.12
-0.3194888
21016802
PETROCHINA CO-A
8.91
-0.77951
6164066
HIGH
2394.5
CHINA UNITED-A
3.66
-1.347709
28299148
PING AN BANK-A
15.1
-1.048493
11614215
LOW
2328.54
CHINA VANKE CO-A
8.57
-0.1165501
33558427
PING AN INSURA-A
41.53
-0.1682692
11192188
CHINA YANGTZE-A
6.53
-0.9104704
5941379
POLY REAL ESTA-A
10.46
-0.2859867
15231369
CITIC SECURITI-A
10.7
-1.017576
42907646
QINGDAO HAIER-A
10.38
-2.351834
11470566
CSR CORP LTD -A
4.21
-0.9411765
8035914
33.9
-2.333621
4235527
CHINA SHIPBUIL-A
QINGHAI SALT-A
8 2395
INDEX 2331.615
NINGBO PORT CO-A
CHINA SOUTHERN-A
249
52W (H) 2932.14 (L) 2254.567
2325
13-Aug
15-Aug
FTSE TAIWAN 50 INDEX NAME ACER INC
PRICE DAY %
Volume
NAME
PRICE DAY %
Volume
27.55
3.962264
45726002
FORMOSA PLASTIC
84.6
0.3558719
7241219
25.4
0.3952569
15042117
FOXCONN TECHNOLO
119
1.709402
39.15
-1.136364
5016048
FUBON FINANCIAL
ASUSTEK COMPUTER
285
-1.041667
4211201
AU OPTRONICS COR
9.27 -0.3225806
30412619
ADVANCED SEMICON ASIA CEMENT CORP
18939547
TPK HOLDING CO L
379 -0.3942181
4208888
30.55 -0.8116883
11670035
TSMC
83 -0.2403846
27300957
HON HAI PRECISIO
84.5 -0.5882353
30822128
UNI-PRESIDENT
HOTAI MOTOR CO
214 -0.4651163
385866
149
-1.973684
10829237
HTC CORP
29.6
0
16481345
HUA NAN FINANCIA
16.45 -0.3030303 73.4
18682556
WISTRON CORP
33.3
-1.186944
5264068
YUANTA FINANCIAL
14.45
0.3472222
17387536
YULON MOTOR CO
55.9
0.1792115
6182334
LARGAN PRECISION
608 -0.9771987
1009738
LITE-ON TECHNOLO
36 -0.5524862
2224394
9.65 -0.6179197
21226998
MEDIATEK INC
284.5
-2.233677
14400770
7.28 -0.1371742
29641808
MEGA FINANCIAL H
22.75
0.2202643
32944201
CHINA STEEL CORP
26.7 -0.1869159
13828939
NAN YA PLASTICS
60.4 -0.6578947
5690870
CHINATRUST FINAN
17.65 -0.5633803
32468974
PRESIDENT CHAIN
166.5
0.9090909
1434127
78.3
0.1278772
4931694
COMPAL ELECTRON
28.55
0.3514938
6857302
SILICONWARE PREC
DELTA ELECT INC
104.5
0.9661836
3900182
SINOPAC FINANCIA
12.2
0.4115226
24657441
FAR EASTERN NEW
34.6
0
5630814
SYNNEX TECH INTL
68.1
0
1481049
FAR EASTONE TELE
72.8
0.8310249
7651121
TAIWAN CEMENT
35.4
0.2832861
6732773
17.35 -0.2873563
11733477
82.5 -0.3623188
5772787
TAIWAN FERTILIZE
3235513
TAIWAN GLASS IND
FIRST FINANCIAL FORMOSA CHEM & F FORMOSA PETROCHE
91
0
TAIWAN COOPERATI
33242926
18700502
5191270
QUANTA COMPUTER
11540021
-0.4
-4.133858
32164766
6701733
-1.574803
0.9463722
1.101928
0.443459
50 12.45
16
CHIMEI INNOLUX C
90.6
5255010
243.5
CHINA DEVELOPMEN
CHUNGHWA TELECOM
UNITED MICROELEC
0.9433962
Volume
107
CATHAY FINANCIAL CHENG SHIN RUBBE
PRICE DAY %
TAIWAN MOBILE CO
CATCHER TECH CHANG HWA BANK
NAME
33 -0.9009009
MOVERS
19
25
6 5165
INDEX 5129.83
8728651
17
0
14047508
72.2
0
3771863
28.95
0
1400563
HIGH
5164.49
LOW
5110.86
52W (H) 5621.53 (L) 4643.05
5110
13-Aug
15-Aug
August 16, 2012 business daily | 13
MARKETS GAMING STOCKS - DAILY PERFORMANCE (Hong Kong Stock Exchange) gaLaXy eNTerTaINMeNT
MeLCo CroWN eNTerTaINMeNT
MgM CHINa HoLDINgS
20.8
27.5
12.4
20.6
27.3
12.3
27.1
12.2
26.9
12.1
20.4 20.2 20.0 Max 20.8
average 20.299
Min 19.96
Last 20.55
19.8
SaNDS CHINa LTD
Max 27.45
average 26.995
Min 26.8
Last 27.25
25.1
15.5
18.1
PRICE
17.9 15.3
17.8
15.2 Max 15.52
average 15.341
DAY %
YTD %
(H) 52W
(L) 52W
WTI CRUDE FUTURE Sep12
93.4
-0.032109601
-5.532517447
110.8699951
77.69999695
BRENT CRUDE FUTR Sep12
114.28
0.219240551
8.92108273
124.1999969
88.90999603
GASOLINE RBOB FUT Sep12
301.67
0.509762111
13.56774461
320.4399824
237.3699903
GAS OIL FUT (ICE) Oct12
962.75
0.522056904
7.210467706
1044.75
799
2.805
-1.023288638
-14.55985379
4.630000114
2.221999884
304.13
0.220786924
6.753483801
332.9600096
251.5599966
1594.78
-1.0529
1.9087
1921.18
1522.75
NATURAL GAS FUTR Sep12 HEATING OIL FUTR Sep12 Gold Spot $/Oz Silver Spot $/Oz
27.63
-0.848
-0.7365
44.2175
26.085
Platinum Spot $/Oz
1396.75
-0.2856
0.1613
1915.75
1339.25
Palladium Spot $/Oz
575.25
-0.4327
-11.974
792.93
537.54 1832.25
LME ALUMINUM 3MO ($)
1856
-0.053850296
-8.118811881
2476
LME COPPER 3MO ($)
7416
0.283975659
-2.421052632
9304
6635
LME ZINC
1819
0
-1.409214092
2311
1718.5
3MO ($)
LME NICKEL 3MO ($)
Min 15.2
17.7
Last 15.4
Max 18.18
average 17.906
PRICE MAJORS
ASIA PACIFIC
CROSSES
15470
0.617886179
-17.31694281
22450
15236
15.295
0.032701112
1.763140386
18
13.95499992
794.5
0.697084918
35.52238806
849
499
WHEAT FUTURE(CBT) Dec12
866.5
0.961258375
20.34722222
953.25
629.5
SOYBEAN FUTURE Nov12
1616
1.12640801
34.19140544
1691.5
1115.75
165.55
-0.271084337
-29.85169492
285.6499939
153.6999969
CROWN LTD
AGRICULTURE ROUGH RICE (CBOT) Sep12 CORN FUTURE
18.0
15.4
Last 17.76
Min 17.74
CURRENCY EXCHANGE RATES
NAME
METALS
Dec12
COFFEE 'C' FUTURE Dec12
AUD GBP CHF EUR JPY MOP HKD CNY INR THB SGD TWD PHP IDR AUDJPY EURCHF EURGBP EURCNY EURMOP EURJPY HKDMOP
DAY %
1.047 1.5684 0.9748 1.2323 78.96 7.9895 7.7569 6.3623 55.66 31.52 1.25 29.978 42.22 9513 82.677 1.20125 0.78572 7.8472 9.8457 97.31 1.03
YTD %
-0.5792 -0.0765 -0.2872 -0.2671 -0.5319 0.0013 0.0026 -0.0534 -0.5681 -0.2855 -0.336 -0.0801 -0.5566 -0.2628 0.046 -0.0216 0.1833 0.3275 0.2468 -0.2775 0
(H) 52W
2.5566 0.9072 -3.7649 -4.9225 -2.5963 0.1264 0.1354 -1.0578 -4.6622 0.0952 3.728 1.0041 3.837 -4.6673 -5.1344 1.2937 6.067 3.6574 5.1423 2.415 0.0097
(L) 52W
1.0857 1.6618 0.9972 1.4549 84.18 8.0413 7.8077 6.406 57.3275 32 1.3199 30.716 44.35 9662 88.637 1.24736 0.88845 9.2841 11.6793 111.94 1.0311
0.9388 1.5235 0.7712 1.2043 75.35 7.9823 7.7526 6.2769 45.33 29.79 1.2002 28.829 41.57 8507 72.057 1.1002 0.77553 7.7018 9.6245 94.12 1.0288
MACAU RELATED STOCKS NAME
PRICE
ARISTOCRAT LEISU
(H) 52W
(L) 52W
2.57
DAY % YTD % 3.212851
16.81818
3.25
1.88
VOLUME CRNCY 696298
8.6
0.9389671
6.304077
9.29
7.47
1848521
SUGAR #11 (WORLD) Oct12
20.49
0.836614173
-10.24967148
25.77999878
19.23999977
AMAX HOLDINGS LT
0.061
0
-29.88506
0.119
0.055
0
COTTON NO.2 FUTR Dec12
72.88
1.095852407
-17.03096539
102.25
64.61000061
BOC HONG KONG HO
24.1
-2.822581
30.97826
24.9
14.24
22945990
0.234
0
1.739129
0.335
0.204
0
3.1
0
10.71429
3.62
2.3
20000
CHINA OVERSEAS
17.62
0.4561003
35.74731
19.16
9.99
18254278
CHINESE ESTATES
9.3
0
-25.6
13.68
8.3
7000
CHOW TAI FOOK JE
9.61
-1.334702
-30.96264
15.16
8.4
1207800
EMPEROR ENTERTAI
1.38
0
24.32432
1.6
0.97
690000
FUTURE BRIGHT
1.15
-2.542373
173.8095
1.18
0.3
4620000
CENTURY LEGEND CHEUK NANG HLDGS
World Stock MarketS - Indices NAME
COUNTRY
PRICE
DAY %
YTD %
(H) 52W
(L) 52W
DOW JONES INDUS. AVG
US
13172.14
0.02057796
7.813181
13338.66016
10404.49
NASDAQ COMPOSITE INDEX
US
3016.98
-0.1832908
15.80831
3134.17
2298.89
FTSE 100 INDEX
GB
5846.95
-0.3040182
4.929228
5989.07
4868.6
DAX INDEX
GE
6949
-0.3640462
17.81261
7194.33
4965.8
NIKKEI 225
JN
8925.04
-0.05420006
5.55495
10255.15
8135.79
HANG SENG INDEX
HK
20052.29
CSI 300 INDEX
CH
TAIWAN TAIEX INDEX
TA
KOSPI INDEX S&P/ASX 200 INDEX JAKARTA COMPOSITE INDEX
12.0
18.2
Commodities ENERGY
Last 12.16
15.6
23.9
Last 25
Min 12.02
25.4
24.2 Min 23.95
average 12.136
WyNN MaCaU LTD
24.5
average 24.720
Max 12.34
SJM HoLDINgS LTD
24.8
Max 25.4
26.7
GALAXY ENTERTAIN
20.55
2.238806
44.3118
24.95
8.69
11000699
HANG SENG BK
110.6
-0.3603604
20.0217
116.7
84.4
749241
HOPEWELL HLDGS
23.8
0
19.83887
24.658
18.56
522800
HSBC HLDGS PLC
68.15
-0.9474727
15.50847
71.8
56
9311686 3017500
3.7
0
23.74582
3.86
2.53
LUK FOOK HLDGS I
HUTCHISON TELE H
19.36
0.1034126
-28.56089
46.15
14.7
973000
MELCO INTL DEVEL
5.79
0.5208333
0.3466208
9.94
4.3
3790100
-1.179745
8.776523
21760.33984
16170.35
2331.615
-1.077676
-0.6022382
2932.14
2254.567
MGM CHINA HOLDIN
12.16
-0.4909984
26.77028
15.276
7.6
1438915
7467.74
-0.1538924
5.594678
8170.72
6609.11
MIDLAND HOLDINGS
4.37
0.4597701
10.51968
5.217
2.887
2865000
SK
1956.96
1.268862
7.187221
2057.28
1644.11
NEPTUNE GROUP
0.16
-1.840491
44.14414
0.205
0.08
3390000
AU
4281.215
-0.2553252
5.538049
4448.5
3840.2
NEW WORLD DEV
10.28
-1.34357
64.21725
10.96
6.13
8278960
25
2.880658
13.89521
33.05
14.9
27923427
SANDS CHINA LTD
ID
4141.986
0.4956866
8.372438
4234.734
3217.951
FTSE Bursa Malaysia KLCI
MA
1653.78
0.05323976
8.038651
1653.78
1310.53
NZX ALL INDEX
NZ
808.43
0.5549972
10.77414
808.795
712.548
SJM HOLDINGS LTD
PHILIPPINES ALL SHARE IX
PH
3488.98
0.06883536
14.57912
3531.5
2695.06
SMARTONE TELECOM
HSBC Dragon 300 Index Singapor
SI
593.7
0.8
19.62
NA
NA
WYNN MACAU LTD
STOCK EXCH OF THAI INDEX
TH
1224.64
-0.1776952
19.43979
1247.72
843.69
HO CHI MINH STOCK INDEX
VN
430.77
0.3026987
Laos Composite Index
LO
1027.6
0.2986706
22.53449
492.44
332.28
14.24632
1049.18
876.33
Shanghai Shenzhen Composite index is listing the biggest companies by market capitalisation. All data supplied by Bloomberg unless otherwise indicated.
SHUN HO RESOURCE
1.13
0
13
1.28
0.82
0
SHUN TAK HOLDING
2.73
-1.444043
6.67695
4.148
2.241
2946004
15.4
1.182654
23.14546
18.798
10.079
9241000
17.08
-0.5820722
27.08334
18.5
9.8
1534862
17.74
-0.7829978
-9.025641
25.969
14.62
6915366
ASIA ENTERTAINME
3.49
6.727829
-40.64626
8.7
2.4
240535
BALLY TECHNOLOGI
44.35
-0.6496416
12.10819
49.32
24.74
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business daily August 16, 2012
Opinion
Revolution in a vacuum
T
Shlomo Ben Ami Former Israeli foreign minister, Vice President of the Toledo International Center for Peace
he Cold War may be over, but superpower rivalry is back. As a result, the international community’s capacity to unite in the face of major global challenges remains as deficient as ever. Nowhere is this more clearly reflected than in the case of Syria. What was supposed to be a coordinated effort to protect civilians from ruthless repression and advance a peaceful transition – the plan developed by former United Nations SecretaryGeneral Kofi Annan – has now degenerated into a proxy war between the United States and Russia. Russia’s leaders (and China’s) seek to uphold an international system that relies on the unconditional sovereignty of states and rejects the Western-inspired, humanitarian droit d’ingérence. Concerned that the Arab rebellions would radicalise their own repressed minorities, they refuse to allow the UN Security Council to be used to promote revolutionary changes in the Arab world. And Syria, the last Russian outpost of the Cold War, is an asset the Kremlin will do its utmost to maintain. But Russia and China are not the only problem. Major emerging democracies like Brazil, India, and South Africa have been especially disappointing in their response to the Arab Spring. All are outspoken paladins of human rights when it comes to condemning any Israeli defensive attack in Gaza as “genocide,” but are equally united in opposing Security Council action on Syria, even as the repression there grows ever more appalling. The Arab uprisings either clashed with their commitment to the inviolability of national sovereignty, or stoked their fear that “humanitarian intervention” would merely be another tool of
Northern dominance. The West’s response has been far more supportive of Arabs’ aspirations, but it has also been contradictory and erratic. For years, both the U.S. and Europe engaged in a monumental exercise in political hypocrisy, preaching the gospel of democratic change while supporting Arab tyrants. Not surprisingly, they found themselves with no tools to deal with the Arab revolutions.
The U.S., for its part, did not abandon authoritarian allies such as Egypt’s Hosni Mubarak and Tunisia’s Zine el Abidine Ben Ali immediately. Had they been swifter and more effective in repressing the mass protests, they might still be in power today – with America’s blessing. The U.S. turned against them not because they were autocrats, but because they were inefficient autocrats.
Absent Europe
Europe has proven utterly incapable of developing an appropriate response to conditions in which Islamist regimes are independently shaping their priorities and external actors are vying for influence
Indeed, at no time since the Arab Spring began has one been able to discern a coherent Western strategy to address its many challenges and uncertainties. Each case has elicited a different response, owing either to the constraints of international power politics, as is now the case with respect to Syria, or to economic and strategic considerations, as in Saudi Arabia and Bahrain.
Meanwhile, Europe finds itself paralysed by a financial crisis that threatens the European Union’s very existence. The EU’s traditional foreignpolicy tools – “promoting civil society” and “encouraging trade” – are no substitute for a strategy to confront the new power game in the Mediterranean. And yet Europe has proven utterly incapable of developing an appropriate response to conditions in which Islamist regimes are independently shaping their priorities and external actors – Qatar, Saudi Arabia, Turkey, Russia, China, and perhaps even Iran – are vying for influence with an extraordinary combination of financial firepower and political muscle. Europe cannot afford to remain on the sidelines. NATO’s “Operation Unified Protector” in Libya was a major success for the alliance, but America’s decision to let Europe assume the leading role also signalled its intention to “rebalance” its global priorities. With the U.S. intent on shifting its attention from Europe’s sphere of vital interests, the Mediterranean and the Middle East, to Asia and the Pacific, it can no longer be expected to take the lead in resolving crises in Europe’s backyard. Indeed, grand designs for the Middle East are no longer on America’s agenda.
Since its victory in the Cold War, America’s hegemony in the Middle East has been a story of frustration and unrewarded investment of blood, sweat, and treasure. A shift to foreignpolicy realism is now expected, and Secretary of State Hillary Clinton’s recent meeting with Egypt’s Islamist president, Mohamed Morsi, is a clear indication of America’s new orientation. The implications of such a shift are farreaching. Following the terrorist attacks of September 11, 2001, the U.S. viewed the Islamic world almost exclusively through the prism of the “global war on terror.” Now, however, policymakers admit that it was precisely the persistence of secular Arab autocracies that encouraged Islamist terrorism. As a result, the major premise of current U.S. policy is that a loss of trust by the Islamists in the democratic process would have adverse consequences, and that the restoration of the old regimes could threaten Western interests more than a Muslim Brotherhood government would. America is now wisely building working relations with the new Islamist leaders, in the hope that they will not endanger the region’s U.S.-brokered peace agreements (Israel-Jordan and Israel-Egypt) or interfere with America’s drive to halt Iran’s nuclear ambitions. Realising that hope is no easy task. Turmoil in Arab societies is bound to persist for years to come, and emerging regional and world powers can be expected to exploit the international order’s fragmentation to advance their interests in the region. With Europe in disarray, and Iran’s nuclear crisis still resistant to diplomatic resolution, America’s new foreign-policy realism could well imply that the U.S., however reluctantly, will ultimately be forced to revisit its “rebalancing strategy.” © Project Syndicate
editorial council Paulo A. Azevedo, Tiago Azevedo, Duncan Davidson, Emanuel Graça, Cris Jiang Founder & Publisher Paulo A. Azevedo | pazevedo@macaubusinessdaily.com Editor-in-Chief Tiago Azevedo DEputy Editor-in-Chief José I. Duarte Newsdesk Vitor Quintã (Chief Reporter) Tony Lai, Xi Chen Creative Director José Manuel Cardoso Designer Janne Louhikari Contributors Frederico Rato, Pereira Coutinho, Ricardo Siu, Rose N. Lai, Zen Udani Photography Carmo Correia, John Si, Manuel Cardoso Assistant to the publisher Laurentina da Silva | ltinas@macaubusinessdaily.com office manager Elsa Vong | elsav@macaubusinessdaily.com Agencies Bloomberg, Reuters, AFP, Xinhua, Lusa, Project Syndicate Printed in Macau by Welfare Ltd.
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August 16, 2012 business daily | 15
OPINION
A good-neighbour policy for wires peace in the South China Sea Business
Leading reports from Asia’s best business newspapers
Business Times (Singapore) Tiger Airways Holdings said yesterday it has completed the transaction to acquire a 40 percent stake in Southeast Asian Airlines (SEAir) in the Philippines for US$2.5 million. The remaining Filipino shareholders, including individual investors, will collectively own a 60 percent share of SEAir. The company will adopt Tiger’s business model that will include offering value fares to domestic and international destinations within a five-hour flying radius of the Philippines. Tiger acquired a 33 percent stake in Mandala Airlines in Indonesia in January 2012.
VnEconomy The Hanoi Stock Exchange (HNX) has begun restructuring its bond market, with the first move being to swap bonds to reduce the amount of registered bond codes, which should increase market liquidity. The swaps will facilitate investors to restructure their bond list. Vietnam has nearly 500 bond codes registered, but variety is low. In order to raise attraction and create liquidity for the market, analysts have been suggesting authorities and enterprises diversify their products.
Business Times (Malaysia) Genting Bhd’s sold its domestic energy business to 1Malaysia Development (1MDB) as the Government is moving to scale down its power purchase agreements (PPA) with independent power producers. For the transaction 1MDB will pay US$1.38 million per MW, which is estimated a 40 percent premium to the benchmark replacement cost. The gaming giant could be putting money away to expand its power businesses in India, China and Indonesia. Last month, it signed a 25-year a deal to build and operate a coal-fired power plant in West Java.
James Gibney Tony Harshaw Bloomberg Editors
W
hat do you call an ocean that sits atop more than 10 billion barrels of recoverable oil and 100 trillion cubic feet of natural gas, provides transit for US$5.3 trillion worth of ship borne trade every year, and is bordered by a halfdozen nations with competing maritime and territorial claims? If you’re a geographer, the South China Sea. If you’re a geostrategist, however, it’s a powder keg – and one that has been heating up dangerously over the past year. Defusing it peacefully will be a test not just of Chinese behaviour, but also of the ability of China and the U.S. to accommodate each other’s legitimate interests and maintain the stability on which Asia’s economic dynamism depends. This month, China and the U.S. traded duelling statements over a build-up of regional tensions. China said that U.S. criticism of its decision to establish a military garrison covering disputed areas of the South China Sea was “a seriously wrong signal.” That followed a tense staredown this spring and summer involving armed vessels of the Philippines, a U.S. treaty ally, and China over one of the hundreds of reefs, shoals and islands that dot the sea. Over the past three years, more than 20 incidents – whether ship collisions, arrests of fishermen or the cutting of cables – have taken place between Chinese vessels and those of Vietnam, the Philippines and other countries with claims to the sea’s riches. With increased prospecting and drilling for the area’s a b u n d a n t o il a n d n a t u r al gas resources, the tension promises to intensify.
Uncertain waters
One of the best things the U.S. could do would be
Daily Star Sri Lankan telecom regulator on Tuesday fined six mobile phone operators more than Tk 6.29 crore (US$771,590) for selling unregistered SIM cards. At least 15,254 unregistered SIM cards of the six operators were seized over the last few months. In order to buy a SIM card, a customer must fill in a form and provide photographs along with a photocopy of identity card. An official of a mobile phone operator said it was the distributors, not operators, that are responsible for the sale of SIM cards.
has suggested putting its competing claims before an international tribunal as allowed for in the convention, China has refused to do so, insisting that any resolution should come through talks between the two nations. The U.S., which is pushing for a comprehensive regional solution, has not taken a position on sovereignty issues in the South China Sea, but opposes “the use or threat of force by any claimant” and has declared that “freedom of navigation, and unimpeded lawful commerce in the South China Sea” are “a national interest.”
to ratify the Law of the Sea
China’s expansive and imprecise claims to most of the waters, islands and natural resources of the entire South China Sea – which are echoed by Taiwan, the other “one China” – rest on a mixture of hoary historical accounts and international law. The other claimants – Brunei, Malaysia, the Philippines and Vietnam – all base their cases on the United Nations Convention on the Law of the Sea, to which China is also a party. Although the Philippines
How to move ahead? One of the best things the U.S. could do would be to ratify the Law of the Sea, which safeguards U.S. interests in navigation and commerce and provides a strong multilateral framework for resolving such sovereignty disputes. Some Chinese have been quick to point out the hypocrisy of the U.S. invoking a treaty that it has so far failed to accept. Indeed, if Chairman Mao were alive today, he would doubtless want to shake the hands of the 34 Republican senators who said this summer that they will vote against it. In rejecting multilateralism, they are doing exactly what China wants. In 2002, China and the Association of Southeast Asian Nations agreed to devise a code of conduct in the South China Sea for peacefully addressing disagreements. Both sides need to take up that cause, which has seen
little progress. In addition, the U.S. and China can build up their ability to avert a crisis by, for example, creating a hot line dedicated to managing maritime emergencies. They can also reduce tensions by promoting joint naval exercises in areas such as counter piracy and disaster relief. This fall, the U.S. will elect a new president, and China will usher in a new slate of top leaders. In that supercharged political atmosphere, tough talk by either side will play to each side’s worst instincts. To keep things calm, China will need to temper its bluster over the South China Sea and its coercive economic diplomacy, and the U.S. will need to err on the side of even-handedness. While the State Department was right to issue its August 3 statement deploring the rise of tensions, it aggravated the situation by needlessly
singling out Chinese actions. In its standoff with China, for example, the Philippines sent a navy warship to detain Chinese fishermen – an escalation that the Chinese have so far avoided by using maritime survey and patrol vessels, rather than the navy. The “rebalancing” of U.S. naval forces toward Asia is a welcome development. There is a danger, though, that it could end up precipitating the tensions and conflicts that it seeks to deter, especially if it emboldens countries such as Vietnam and the Philippines to overplay their hands. Secretary of State Hillary Clinton has so far deftly navigated the South China Sea. Let’s hope she remembers – as the Chinese captain who just ran his frigate aground off the Philippines has learned – that these are perilous waters. Bloomberg View
16 |
business daily August 16, 2012
CLOSING Dollar climbs against most peers
Greek PM to meet euro leaders
The dollar advanced against most of its major counterparts amid speculation the Federal Reserve will refrain from more monetary easing as investors await a report forecast to show U.S. industrial production rose. The U.S. currency climbed against the yen, rising to the strongest level in almost a month. “The U.S. economy is growing slowly, and I view that as a positive,” said Hans Kunnen, chief economist at St. George Bank Ltd. in Sydney. The expansion is “at a sufficient pace for the Fed to hold fire. This lends support to the dollar.”
Greek Prime Minister Antonis Samaras will next week have his first meetings with euro zone leaders since taking office, striving to assure them he will honour a pledge for more austerity and looking for more time to do it. He will fly to Berlin and Paris to meet German Chancellor Angela Merkel and French President Francois Hollande. Samaras will insist he can ram through an austerity package worth about 11.5 billion euros ($14.2 billion), a key condition to continue receiving EU/IMF bailout funds and avoid default and a possible exit from euro.
Standard Chartered rises on settlement of New York probe Speedy agreement likely to minimise impact on company
S
tandard Chartered Plc rose as much as 5.1 percent in London after the bank settled a moneylaundering probe for US$340 million the day before it was due to appear at a hearing to defend its right to operate in New York. Benjamin Lawsky, head of the New York Department of Financial Services accused Standard Chartered of helping Iran launder about US$250 billion in violation of federal laws, threatening to remove the London-based bank’s license to operate in the state. That would have hurt Standard Chartered’s ability to process dollar payments for clients in Asia and reduced earnings by about 40 percent, according to Chirantan Barua, an analyst at Sanford Bernstein Research in London. “Crucially, the settlement eliminates the risk of Standard Chartered losing its banking and clearing license,” Shailesh Raikundlia, an analyst at Espirito Santo Investment Bank in London, wrote in a note to clients today. That “would have significantly impaired their wholesale banking operations, especially transaction banking and trade finance.”
Federal probes The bank still faces federal probes over allegations it helped Iran funnel money through the U.S. Regulators including the U.S. Treasury, the Federal Reserve Bank, the Justice Department and the Manhattan District Attorney declined attempts at a global settlement, a person familiar with the matter said Tuesday. September will be the earliest such
Total costs may rise to US$1 billion
a global deal is possible, said the person, who declined to be identified because the matter is private. The bank could pay as much as US$1 billion in fines as it settles with other regulators, according to Simon Morris, a regulatory lawyer at CMS Cameron McKenna in London. “The implication for Standard Chartered is they have a truce on one battle but four more to fight” with other regulators, he said in an interview on Bloomberg Television today. A person familiar with the New York probe said Lawsky had sought as much as US$700 million to settle the investigation. The cost of settling with all the regulators may be about
US$700 million, Cormac Leech, an analyst at Liberum Capital wrote in a note to investors yesterday. “The willingness of the DFS to accept a US$340 million settlement sits oddly with its classification, a week earlier, of Standard Chartered as a ‘rogue institution’ at risk of NY license revocation,” wrote Mr Leech who has a buy rating on the stock. “Standard Chartered is now likely to suffer minimal reputational damage with minimal risk of management resignations.” The quick resolution of the probe was in the best interests of shareholders, clients and employees, Chief Executive Officer Peter Sands
said in an internal memo yesterday. “Ourpastreviewdididentifymistakes, for which we have apologized,” Mr Sands told employees, without elaborating on the specific errors, according to the document obtained by Bloomberg News. “There are many reasons why firms settle such agreements,” Mr Sands said. “We have sought to act in the best interests of our shareholders, clients, customers and staff.” The lender is in talks with the other agencies, Mr Sands said in the note. Melissa Cheah, a Singaporebased spokeswoman for the lender, confirmed that he sent a memo to staff. Bloomberg
Japan arrests Chinese activists on disputed islands Regional tensions escalate on anniversary of WWII
C
hinese activists landed on an island claimed by Japan and China yesterday and five were arrested as tension between Japan and its Asian neighbours escalated on the 67th anniversary of the end of World War Two. South Korea prompted an official protest from Japan after comments by South Korean President Lee Myung-bak which some saw as going too far by insulting Japanese Emperor Akihito. And adding to a day of drama and underscoring how history haunts Tokyo’s ties with Beijing
and Seoul, two Japanese cabinet ministers paid homage at a controversial Tokyo shrine for the war dead. Memories of Japan’s wartime occupation of much of China and colonisation of South Korea run deep in the two countries despite close economic ties in one of the world’s wealthiest regions. Japan arrested five members of a group of activists from China, Hong Kong and Macau who landed on the disputed island chain in the East China Sea, Japan’s coastguard said. It also swiftly protested over the landing, Kyodo
news agency said. Friction over the disputed chain of uninhabited isles, known as the Senkaku in Japan and the Diaoyu in China and near potentially rich gas deposits, had already been heating up. “This is the most successful attempt in a decade” to reach the Diaoyus, the activist group said. Several of the men jumped into the water, swam and then waded ashore. The group said its boat had been rammed by the coastguard and hit with water cannon. A separate feud over rival claims by Seoul and Tokyo to other
rocky islands has also intensified, signalling how the region has failed to resolve differences over its past nearly seven decades after its defeat. The rows in part reflect scepticism over the sincerity of Japan’s apologies for wartime and colonial excesses. On Tuesday, South Korea’s Lee told a group of teachers that Emperor Akihito should apologise sincerely if he wants to visit South Korea, saying a repeat of his 1990 expression of “deepest regrets” would not suffice. Reuters