I SSN 2226-8294
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HANG SENG INDEX 19940
19920
19900
19880
19860
August 24
HSI - Movers Name
EU-Macau
empty pockets, full trade M
oney is running tight and both the European Union (EU) Business Information Programme for Macau and Hong Kong and the Jean Monnet Chair at the University of Macau are closing doors. But, in an interview with Business Daily, the departing head of the Office of the European Union to Hong Kong and Macau shows confidence that Europe’s exports will continue booming.
Maria Castillo Fernández warned that European companies operating in Macau are struggling to find qualified labour. Europe’s high-quality products have won over tourists but investors have shown little love for the Old Continent, withdrawing their investments. But the diplomat is confident ongoing reforms can make the European Union stronger. After almost four years, Ms Castillo says legal cooperation is
stronger but admitted that Europe is still keeping an eye on cases of people banned from entering Macau and hoping for a gradual political evolution. More on pages 4 & 5
%Day
WHARF HLDG
0.72
CHINA UNICOM HON
0.61
LI & FUNG LTD
0.00
HENDERSON LAND D
0.00
WANT WANT CHINA
-0.10
BANK EAST ASIA
-2.23
CHINA PETROLEU-H
-2.58
CHINA COAL ENE-H
-2.83
CHINA SHENHUA-H
-3.12
SANDS CHINA LTD
-3.33
Source: Bloomberg
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2012-8-27
2012-8-28
2012-8-29
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Business meetings – safer MICE bet Exhibition organisers have finally managed to break even in the last quarter, even though the number of meetings, incentives, conferences, and exhibitions (MICE) decreased. But an industry executive says Macau needs to invest more on high-end business meetings, which can generate more economic benefits than trade fairs. Page 2
Make room for SME in Hengqing There will be at least two retail and food projects in Hengqin Island targeted at Macau’s small and medium-sized enterprises, authorities announced, while pledging that the area’s development will give priority to the two SARs. The Hengqin committee also assured that the University of Macau campus will be finished before December 19. Page 7
Estate agents want minimum commission In a letter sent to the Legislative Assembly, real estate agents said the lack of a minimum commission on transactions could lead to unfair competition. Legislators are finalising the draft bill that seeks to regulate the sector. But assembly members brushed aside the concerns, while postponing the approval of the bill to October. Page 8 www.macaubusinessdaily.com
Year I - Number 106 Monday August 27, 2012 Editor-in-chief: Tiago Azevedo Deputy editor-in-chief: José I. Duarte MOP 6.00
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business daily August 27, 2012
macau Taipa housing hub launched soon The new Taipa public housing hub will cost the government between 431.4 million patacas (US$54 million) and 550.1 million patacas, according to the 17 bids for the public tender opened on Friday. The complex located at Estrada Nordeste will have almost 700 flats, including 495 one-bedroom units, and should be ready by early 2015. The project also includes green spaces and social and sports facilities, namely an elderly care home.
MICE industry urged to focus on big meetings An exhibition company executive says high-end business meetings deliver more bang for the buck Xi Chen
xi@macaubusinessdaily.com
About 100 exhibitors from Macau, the mainland, Hong Kong and Taiwan took part in the 2012 International Home Expo and the International Real Estate Exhibition
M
acau needs to invest more resources in organising highend business meetings, which can generate more economic benefits than trade fairs, says Richard Kuan, executive director of JRG Convention and Exhibition Services Ltd. “Compared to exhibitions, business meetings don’t require as much economic resources and attract better clients who will spend a few days in Macau,” Mr Kuan told Business
Daily on Friday, on the sidelines of two new exhibitions. He said the government had given a lot of support to the meetings, incentives, conventions and exhibitions (MICE) industry, but that it should focus more on bringing high-end conferences and meetings here. Mr Kuan said the city also needed to keep improving its MICE facilities and services to attract new business. “Macau is quite expensive, and people
will compare it to Hong Kong when trying to decide where to host their events,” he said. The two new exhibitions, the 2012 International Home Expo and the International Real Estate Exhibition, were held at the weekend at Fisherman’s Wharf. If successful, they could become permanent fixtures in the city’s MICE calendar. They were the first events held by JRG since the company was restructured two years ago. Mr Kuan said the company used to organise much smaller events. About 100 exhibitors from Macau, mainland China, Hong Kong and Taiwan participated in the fairs, including some well-known names in the property, home decor and electronics industries here.
JRG expected the two events to attract about 30,000 visitors. “The general direction is to have it annually. We are exploring the market and hope to attract more international exhibitors,” Mr Kuan said. He said his company would be realistic and cautious about venturing into exhibitions in fields other than property. “We need to think what would be suitable for the local market and it also depends on the feasibility of the operation,” he said. His company is backed by Macau capital. The government and other institutions helped it to hold the new exhibitions. Representatives of the Macau Trade and Promotion Institute, the Macau Convention and Exhibition Association, and of various other associations and enterprises attended the opening of the exhibitions.
Fewer MICE events, more participants More mixed data for the city’s MICE industry last quarter, but profitability has improved overall Tony Lai
tony.lai@macaubusinessdaily.com
T
he city’s meetings, incentives, conferences, and exhibitions (MICE) industry wobbled along in the second quarter with a year-on-year drop of 10 percent in the number of events to 234. Data released on Friday shows 226 meetings and eight exhibitions were held between April and June, a decrease of 24 meetings and 2 exhibitions from the same period last year. A one-third decline in government meetings to 21 and a 10-percent decrease in corporate meetings to 142 explain the downfall. The second quarter also the number of meeting participants plunge by 41 percent to a little more than 17,300 people. Attendance at events increased by 8 percent, to about 130,000 people, driven by a 25-percent growth in visitors to exhibitions. In the three months from April to
MOP21.6 million Exhibition organisers’ revenue in second quarter
Organisers of MICE events were back in black for the second quarter, thanks to falling costs and despite a reduction in revenue
June, the average duration of an event declined to 1.8 days, down from 2.1 days a year ago, with a 1.7-day average for meetings and an average of 3.9 days for exhibitions. Including all events in the first half of the year, there was a 6 percent decrease in the number of events, falling to 505, but the number of participants increased by 17 percent to more than 291,000 people. Event duration fell slightly to 2 days from 2.1 days. Commerce, trade and management
were still the leading themes for MICE events held in the second quarter. Together the trio accounted for onethird of events. Information technology and banking and finance were the next most popular with 37 and 26 events. A survey by the Statistics and Census Service found that exhibitors’ revenue grewto4.4millionpatacas(US$553,750) in the second quarter, a 25 percent increase on the same time last year. Exhibitors also spent twice as much
during the second quarter, 3.3 million patacas, with booth rentals accounting for two-thirds of expenditure. The survey of six exhibition organisers found they had finally managed to break even, even though revenue dropped to 21.6 million patacas, as spending fell by 79 percent year-onyear to 7.1 million patacas. Venue rental and promotion expenses are the two biggest expenditures for the organisers, accounting for twothirds of costs.
August 27, 2012 business daily | 3
MACAU
New credit to SMEs retreats from peak
editorial
An unsuitable model
The supply of credit seems to be catching up with demand, as new lending to small and medium enterprises shrinks Vítor Quintã
vitorquinta@macaubusinessdaily.com
José I. Duarte
jid@macaubusinessdaily.com
T
The amount to new credit granted to SMEs in the logistics industry tumbled
T
he amount of new credit offered to small and medium enterprises fell steeply in the first half of this year from its record peak in the second half of last year. Monetary Authority of Macau data released on Friday show that new credit to SMEs approved by banks here fell to less than 7 billion patacas (US$876 million) in the first half from 16.9 billion patacas in the preceding six months – which was the highest amount since the Monetary Authority began collecting data on lending to SMEs in 2008. The proportion of new credit covered by collateral fell by 0.3 percentage point to a still healthy 60.4 percent. The total amount of loans to SMEs outstanding fell to 31.2 billion patacas in the first half, 7.3 percent
less than the record amount in the second half of last year. SMEs were using only 59.2 percent of the credit approved, 0.6 percentage point less than in the second half, which may indicate that the supply of credit is catching up with demand. Credit to SMEs in the logistics industry, which encompasses transport, warehousing and communications, fell furthest, by 72.5 percent. Credit to non-monetary financial institutions such as insurance companies fell by 19 percent and credit to wholesalers and retailers fell by 18.6 percent. In contrast, credit to SMEs in the electricity, gas and water industries almost doubled and credit to education enterprises increased
by 44.2 percent. The amount of debt service payments overdue for more than three months decreased by 16.8 percent to 428.5 million patacas. This was just 1.37 percent of all lending to SMEs, but the proportion of lending to SMEs that had turned sour was higher than the proportion of loans elsewhere that were bad. The government told Business Daily this month it had revoked interestfree loans to 57 SMEs during their first year because repayments had not been forthcoming or because the enterprises had closed. Loans granted under the Economic Services Bureau’s SME Aid Scheme nearly doubled to 120 million patacas in the first half.
New grass to boost fading horse-racing
T
he Macau Jockey Club expects to post a drop of at least 10 percent in the amount of bets during the horse racing season, which ended on Saturday. The club’s betting controller, Ronnie Chan Yiu Jok, told media on Saturday that the decrease is attributed to an overall trend of
falling bets in the global market. He also stressed, quoted by Chineselanguage newspaper Jornal Va Kio, that horse racing is different from other gambling games in Macau because the participants have to be “very familiar with the rules”. The previous horse-racing season, which ended in August last year,
recorded bets of over 1.6 billion patacas (US$200 million) while the club posted a loss of 17.8 million patacas last year. To attract more people in the coming season, which will begin next month, the club has decided to renovate the turf track. The works should last between three to four months. T.L.
hrough the years Singapore has often been used as a model or a reference point for public policies and administration. In the first years of the new SAR, many groups of civil servants here went to Singapore for training or technical visits. Many training sessions were organised in Macau led by Singaporean specialists. As time went by, the reference to the Singapore model, which had always been quite selective anyway, faded somewhat. However, there is one topic that elicits recurrent references to the Singapore model, which has been used, implicitly at least, either to justify policy here or to frame its development. That subject is public housing. More often than not, such references are made in the simplest terms. It appears to be sufficient to declare that the government of Singapore built more than 80 percent of the housing stock – which is correct – for policy here to be instantly justified – which is debatable. More than that, it seems implicit that Macau should strive to achieve the same proportion of publicly built housing. Singapore has a reputation for consistent and carefully designed policies and people appear to be stating, explicitly or implicitly, that we are or should be following the Lion City. There is a problem, however, with this kind of reasoning. Regardless of the merits of a policy in the specific context of Singapore, that it may have been appropriate and successful there does not imply that a similar policy would be appropriate and successful here. A few figures should be enough to raise questions about the relevance of the Singaporean case to Macau. According to the results of the last census, there were 170,769 households in Macau. Of these, 119,578 or 70 percent lived in their own homes. They neither needed nor were eligible for public housing. Another 22,317 or almost 13 percent lived in some kind of housing provided by the government. That left fewer than 30,000 households to whom a Singapore-type policy might have been relevant. However, among these there were certainly many that were not permanent residents and many that could not be considered poor. In short, public housing policy does not apply to them. But after successive rounds of promises and demands, with the government and the various interest groups trying to outdo each other with populism, we have reached a point where the number of homes in public housing that we have been promised in the next few years amounts, by some counts, to more than 50,000. Just whom these homes are meant for seems an impossible question to answer. These figures alone should be enough to question the applicability of the Singapore model to Macau. It is useful, nonetheless, for further clarity, to remind ourselves of the context and aims of Singapore’s public housing policy. In the 1960s, the city was newly independent, having been expelled from the Malay Federation, and was recovering from a period of deep social and political strife. It was a city of fewer than 2 million people of various ethnic origins, most of them poor, without any real sense of nationhood. Almost 70 percent were squatters, most living in cardboard and zinc sheds. The housing policy was first and foremost a tool for building a sense of belonging without which no nation can survive and, from the 1970s on, as a tool for ethnic integration. It should be obvious by now that Macau’s reference to Singapore is neither appropriate nor useful. It seems to be made either as the result of a superficial analysis or to hide the absence of any proper reasoning to support the policy here. The merits or shortcomings of the policy in Macau must be assessed in the light of the specific circumstances of the city. So far what we call housing policy seems to be, at best, no more than the piling up of loads of promises built on the implicit but weak premise that when it comes to public housing, more means better. The policy has yet to be thought through. This is something that the sight of the absurdity being built in Coloane should remind us of every day.
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business daily August 27, 2012
macau Brought to you by
HOSPITALITY Arrival trends Tourist arrivals continue to rise. The latest data, released last month, show arrivals increased by 14.5 percent compared with the same period last year. The data for the full year seem to point to an increasing dependence on mainland arrivals. This month’s results will show if that trend is confirmed. How these flows of tourists develop has consequences for the infrastructure at the border entry points.
Trade boom will persist, outgoing EU envoy says The European Union Business Information Programme will soon end and with it will go the Jean Monnet Chair at the University of Macau. But the departing head of the Office of the European Union to Hong Kong and Macau, Maria Castillo Fernández, says a new academic programme will fill some of the gap. EU companies here are feeling the pinch of the labour shortage but Ms Fernández expects the boom in bilateral trade to continue, perhaps with a new focus on culture. Political reform here has been criticised but Ms Fernández says in Hong Kong too, political evolution has been gradual Vítor Quintã
vitorquinta@macaubusinessdaily.com
Assessing tourist arrivals by their country of origin and mode of arrival, some very different patterns emerge. The cumulative data for the January-toJuly period reveal that close to threequarters of mainland arrivals enter the city through a land border, and slightly more than one-fifth arrive by ferry. An analysis of the second most important source market for visitors, Hong Kong, shows 75.9 percent arrive by sea, and 23.7 percent arrive by land. In their case, arrivals by air are negligible and include only a small number of trips by helicopter. Taiwan arrivals are a curious set of figures. Not surprisingly, most arrivals – 42.6 percent – come through the city’s airport, and 37 percent of arrivals are made by land. This figure suggests an important flow of Taiwanese passengers in transit. For many Taiwanese travelling to Guangdong, the Macau airport seems the most convenient point of arrival and departure. The final major source markets, Japan and Korea, arrive mostly by sea, 76.4 percent and 80 percent. That means Hong Kong is in fact their main gate to Macau. This is a trend existing among other international arrivals to Macau, a group that represents only 7.7 percent of all visitors. About twothirds of these tourists arrive by sea and one-fifth by land. Across all arrivals, air represent just 6 percent of the total. Among the main source markets, they are significant only in the case of Taiwan. J.I.D.
Imports from the European Union have more than tripled, growing much faster than Macau’s imports overall. Are European companies doing a better job or are Macau residents and visitors wanting to buy more European products? It’s a bit of both, actually. With the economic crisis in Europe, our companies, especially small and medium ones, are looking for markets abroad and making the effort to come out and come to Asia, which is still a bit unknown for many. If you don’t know very well the [mainland] Chinese market, it also helps to start in Macau. On the other hand, the Macau economy continues to grow immensely, pushed mainly by the gaming sector. And with gaming you have all this luxury shopping, restaurants. So you see many European luxury retail brands, a lot in terms of food and wine, also infrastructure companies coming here.
Macau is trying to diversify its economy and has a lot of demand, mainly in upcoming tourism and infrastructure projects. Macau has also the rule of law and a legal system that is trustworthy and transparent. And that is very important and a key element for trade and for business. Can European infrastructure companies compete with mainland companies, which can usually offer lower prices and have better connections? If we accept that Macau is a transparent territory with the rule of law, with open proceedings on procurement, then European companies should have the same chances as Chinese. If the conditions are there, if the legal environment is there, then we should be able to compete.
Handbags, clothing and accessories, cars and wine are the best-selling European products here. Do you feel that in this city what is European is good? Our products have a reputation of good quality. European companies are very good in innovation, design and architecture. And also Macau wants to give more importance to entertainment and cultural industries. I think in the years to come trade will increase but also will expand to those sectors. The European Union is closing in fast on the mainland as Macau’s biggest trade partner. Can the mainland be overtaken? I think China will always be the biggest trade partner for Macau and Hong Kong. There is a slowdown in our domestic trade due to less demand from Europe. What we are trying to do now is to access China’s market in the best conditions possible because they can access our market in a very fair and open manner. We would like to have a little bit more access to the Chinese market and that’s where we are working with the Chinese. How far can the European Union go as trading partner for Macau? I think there is a lot of potential.
With the economic crisis in Europe, our companies, especially small and medium ones, are looking for markets abroad and making the effort to come out and come to Asia
One of your biggest victories was the launch of the European Union Business Information Programme, which will expire this year. Will it be extended? Well, we supported this programme with some funds and I think the idea will persist. The European chambers of commerce, our Macau partners, have the capacity to maintain the soul of the project on their own if we would not be able to give additional funding. We will continue to support it in any way possible, even if there are no funds available. The programme has made a difference. How much of a difference has it made? I believe the programme has helped a lot in increasing trade and contacts between the EU and Macau. We increased our participation in Macau fairs. We have done a lot of seminars on issues such as regulatory standards, food security, customs cooperation, the euro, the economic situation, financial legislation. And we have brought the EU chambers together and started a regular dialogue so that we know what the business problems are and we can pass them over to the government and institutions in Macau. How much power do the European chambers of commerce have as a lobby? I think they play a very important role. They bring together the interests of different sectors and different companies. There are always problems when you come to a new place and it’s good that you can get together because you are stronger together. They have their own different national interests but at the same time they have very common problems. The labour shortage is one of them. The U.S. consul has mentioned that foreign companies might be discriminated against in hiring nonresident labour. Do European companies complain about that? Not particularly. There’s an overall issue of shortage of labour. The fact that the gaming industry attracts so many talented young people means that there is a lack of qualified
August 27, 2012 business daily | 5
MACAU
What we are trying to do now is to access China’s market in the best conditions possible because they can access our market in a very fair and open manner
professionals in Macau and that is a problem that the government is aware of. What we want is that, within the law, our companies be able to bring that expertise from abroad. But it’s a fact that sometimes it’s difficult to do so. We have asked the government to see if there is a solution that can be found for companies to be able to work in Macau. Last year the European Union dropped anti-dumping penalties imposed on leather shoes made in Macau. Have we moved on from that? Yes, of course. We cannot say there will be no more issues in the future but for the moment that issue is closed and there is no other trade issue pending. There has been a huge flow of money pulled out of Europe due to the sovereign debt crisis. Do Macau investors look at Europe as a risky investment? We need to put everything into perspective. Europe has done a lot in the last few years to completely reform the financial sector and also to try to help countries in debt. We moved very far into more economic policy coordination, more fiscal integration, perhaps even into more banking union; and also a lot of structural reforms in welfare, education, labour. At the same time there is a need to generate growth. We are doing that but results take time. They are not for the day after, as markets want. After being close to being classified as a tax haven, Macau has signed tax information exchange deals with 14 countries and territories. But the European Union wants more: an automatic information exchange mechanism. Why? That’s what we are seeking at a European level. We would like to avoid tax evasion as much as possible. In times of crisis that is an important issue. But some of our trade partners are a little bit reluctant. They first want to see how it goes. Macau is a place where tax evasion takes place? No, no, I don’t say that.
Why is Macau reluctant to introduce this mechanism? The double taxation agreements were very well accepted by industry. They told us they first need time to see how all of this works, and that’s fair. A civil aviation deal was signed between Macau and the European Union last year. How important could that be? Macau and some European countries had bilateral aviation agreements that had to be updated, in order to adjust to European rules, which state that all European carriers must be treated equally. Now the conditions that are in the new agreement apply to all European carriers. Considering how close Hong Kong, one of biggest aviation hubs in the world, is, will this aviation deal ever be used? I don’t know. Things can change. Macau used to have flights to Lisbon. The aviation sector is very competitive so companies will need to look very well into their investments and their expansion. There was also cooperation on climate change legislation. Are there any results from the dialogue? We started talks on environmental climate change with Macau and we have been doing some seminars to help Macau update its legislation and environmental standards. There have been experts from Europe coming here. Macau is eager to have some expertise and I think that will continue. Was the draft on environmental impact assessment part of this cooperation? I think that is part of it, yes. That has been one of the issues in which expertise was offered to them. Your last parting gift is the academic programme, which will start in September. How is that going to be different from the master’s in European studies or the Jean Monnet Chair? Well, the Jean Monnet Chair is coming to an end soon. Secondly, it will complement and add more to what you already have. It will give it more substance to the master’s in European studies. There will be more
seminars touching on the key issues of European integration. It adds an element of academic mobility: exchange of students and professors to and from Europe. Will the Jean Monnet Chair not be renewed? I don’t know if Macau University has applied for it. It’s not an automatic extension. There is an open call for proposals. But I think the new programme also copes with part of what the Jean Monnet Chair did. The cooperation programme that allowed legal interpreters and translators to go to European Union is back, after a few years. Why was there a break? Oh, it’s always like this. When you finance this kind of programme, you need to find the funds. It’s a programme that is very well perceived because Macau needs to update its legal system but there is a lack of professionals in this area. For instance, we have been doing a lot of initiatives on urban planning because that’s one of the priorities of the Macau government. On May 1 there was again a Hong Kong resident banned from entering Macau. Is the European Union worried? In many countries there are immigration laws that must be applied. We hope there are no abuses. We have raised these issues in the past with the government and we showed them that we are concerned when abuses happen. The photojournalist banned on May 1 had been allowed in just a few months earlier. Is this a sign there was abuse? There is always, for any country, the possibility to act with a certain leeway within the framework of any law. Human rights issues and fundamental freedoms, we believe those are pretty much guaranteed and respected in Hong Kong and Macau. When the national security law was approved, the European Union said it would keep an eye on the issue. Any reasons to be worried? Macau has introduced this law. Hong
Kong is a very different story. But we respect the wishes of the Macau people, just as we respect the wishes of the Hong Kong people. Do you feel the law brought any negative impact on Macau? I prefer not to comment on that. Earlier this year you said Macau’s political reform was a step forward. Some people disagree, saying nothing has changed. Well, there was a change. You cannot say it is standing still. You had your consultation process. There were some dissident voices but there were also some voices that agreed. Macau people are ready to move forward on this process. I’m sure whatever Hong Kong does will have an influence in Macau. But it is also a gradual process in Hong Kong. Yet the consultation process was also the target of criticism. It’s not for us to criticise or to comment on that. That is not the point. You have your way of dealing with reforms.
Vincent Piket to head EU office The leader of the delegation of the European Union to Malaysia, Vincent Piket, will be the new head of the Office of the European Union to Hong Kong and Macau, the Portuguese news agency Lusa has reported. The Dutchman replaces Maria Castillo Fernandez, who returns this month to the EU headquarters in Brussels to take charge of Indian, Nepalese and Bhutanese affairs. Ms Fernandez, a Spaniard, told Business Daily: “I’m sure my experience with East Asia will help me better understand West Asia.”
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business daily August 27, 2012
macau
Lab chief optimistic about future for Chinese medicine
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Not guilty The yuan influences the Macau economy in several ways. One of the most obvious and most often mentioned effects is the effect exchange rates have on prices. As a large proportion of imports come from the mainland, the exchange rate inevitably affects prices here. All other things being equal, appreciation of the yuan will mean dearer imports and therefore, upward pressure on prices. This is often said of food prices, which are a touchy subject, politically. Leaving aside other factors, what effect has the value of the yuan had on the economy here and, in particular, prices?
A leading academic says the city needs to speed up its research into Chinese traditional medicine Xi Chen
xi@macaubusinessdaily.com
We have recruited young scientists from The yuan-pataca exchange rate hardly varied at all in 2009. The mainland authorities kept the yuan, in effect, fixed against the US dollar. As a consequence, the yuan-pataca exchange rate has oscillated very little, sitting just below 117 patacas to the yuan. In 2010, the mainland changed its policy to one of managed appreciation of the yuan against the US dollar, within a trading band of plus or minus 0.5 percent. Apart from the occasional hiccup, the result was sustained appreciation the yuan against the pataca. It had reached about 127 patacas by early this year. In April, the yuan-dollar trading band was widened to 1 percent. Combined with perceptions of an economic slowdown in the mainland, this resulted in a slight depreciation of the yuan. How do these changes compare with the changes in domestic prices? The graph below shows the growth index for the yuan’s value against the pataca and the growth index for prices here, taking January 2009 as the base.
At first the exchange rate was stable and the pressure on prices was deflationary. The yuan was not a major factor in determining prices, which were likely to have been affected more by the economic crisis at the time. From early 2010, prices rise faster than the yuan appreciates, and from the middle of last year, the indicators diverge. In more recent months the rise in prices has lost no momentum, while the yuan has begun to depreciate. J.I.D.
Cambridge University, Yale University’ Liu Liang, head of the State Key Laboratories of Quality Research in Chinese Medicine Liu Liang says research into Chinese traditional medicine can be used to create high value-added industries
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acau has great potential for developing a Chinese traditional medicine industry, says the vice-rector of Macau University of Science and Technology, Liu Liang. Mr Liu, an expert in Chinese traditional medicine, became head of the State Key Laboratories of Quality Research in Chinese Medicine in July. He told Business Daily in an interview that Macau lagged behind the mainland and Hong Kong in the development of its Chinese traditional medicine industry, but “luckily the central government supports us”. He said the mainland had been developing its traditional medicine industry for at least 40 years, and that Hong Kong was far ahead of Macau in research. The most recent five-year plan
makes the development of a Chinese traditional medicine industry a priority for Macau. Mr Liu said one-third of the money granted by Science and Technology Development Fund here since its establishment in 2004 had been for Chinese traditional medicine. He said the city needed to speed up its research into Chinese traditional medicine, and that an important first step was to build more research facilities. The establishment of the State Key Laboratories of Quality Research in Chinese Medicine in January last year is meant to speed up progress. Mr Liu said the laboratories are the first national platform for research into traditional Chinese medicine. He said they had already made significant achievements, such as doubling the size of their research team.
The facility serves to attract highquality researchers and students from all over the world. “We have recruited young scientists from Cambridge University, Yale University,” Mr Liu said. Mr Liu believes this wave of recruitment will help to diversify and improve the research capacity of the laboratories, and to transform Macau’s academic reputation. “Macau is small. We need to ask: ‘What is our potential?’ With a small piece of land we can already build enough space for a lot of research. We need to put more resources into education and research,” he said. He believes that in doing so the city can diversify its economy by using high-technology and multidisciplinary research to create high value-added industries.
Weather Beijing 27/21o C Changchun 29/19o C
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Guangzhou 35/26o C
MACAU (27 August-01 September) Day
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August 27, 2012 business daily | 7
MACAU Calls for Macau efforts in Taiwan reunification The chairman of the Chinese People’s Political Consultative Conference, Jia Qinglin, on Thursday called for more efforts from Macau in facilitating the peaceful reunification of Taiwan, according to official news agency Xinhua. After 13 years of successfully implementing the ‘one country, two systems’ policy, Macau has unique advantages in promoting reunification, said Mr Jia. He made the remarks while meeting with a delegation from Macau’s Council for the Promotion of Peaceful Reunification, led by Chui Sai Cheong.
Hengqin investment tops MOP80b More tailored projects for SMEs to be launched this year
I
nvestment projects from Macau and Hong Kong on Hengqin Island have topped 64 billion yuan (80 billion patacas) and there will be at least two more retail and food projects tailored to the city’s small and medium enterprises launching this year. The head of the Hengqin New Area Administrative Committee’s exchange and cooperation bureau, Liu Yang, told reporters on Friday that details would be announced later this year, once Macau and Guangdong authorities reach a consensus. Meanwhile, the six biggest MacauandHongKongprojects either under construction or being discussed are worth
more than 64 billion yuan, the administrative committee said at a press conference in Zhuhai last week. According to the Chineselanguage newspaper Macao Daily News, the committee said one of the projects, the new University of Macau campus, would be finished before December 19. Each of the 62 main pieces of infrastructurewouldbereadyfor inspection by October and the underwater tunnel connecting the campus to Macau is more than 70 percent complete. There was no mention of when the tunnel’s construction would resume, following a cave in at the construction site last month. The report said priority
There are currently 23 ongoing construction projects worth more than 120 billion yuan on Hengqin
in Hengqin’s development would be given to Macau and Hong Kong. There are currently 23 ongoing construction projects worth
more than 120 billion yuan on Hengqin and 16 projects being negotiated, worth more than 80 billion yuan. Construction on all six sections
of the Hong Kong-ZhuhaiMacau Bridge has started and the bridge was on schedule to be ready by the end of 2016. T.L.
8 |
business daily August 27, 2012
macau Court rejects appeal over illegal home The Court of Second Instance rejected an appeal from a Ká Hó resident that was trying to prevent the demolition of a home that was built illegally in a plot that the applicant does not own, the judges agreed. The Land, Public Works and Transport Bureau called on the resident to vacate the plot or else pay for the forceful demolition expenses. Meanwhile authorities have concluded the demolition of another illegally built house in Coloane village.
Realtors’ association wants sales commission
The bill to regulate estate agents should set a minimum amount of commission they can charge on a sale, says an industry association (Photo: Manuel Cardoso)
T
he Association of Property Agents and Realty Developers of Macau has warned legislators that the
lack of a minimum commissions for transactions could lead to unfair competition. In a letter sent to the first standing
committee of the Legislative Assembly, which is discussing the law that will for the first time regulate estate agents activity, the association says the law disregards its interests. The draft only states that a commission must be paid to an agent but lets the market determine the size of it. Currently the average commission is around one percent of the sale value. But committee president Kwan Tsui Hang, quoted by TDM News, stressed that “what the proposed bill aims to do is to safeguard the interests of estate agents”. “Currently, prospective buyers can seek help from any kind of business. For example a stationery store can mediate property transactions,” she recalled. The draft would ensure that “only licensed estate agencies can offer these services,” Ms Kwan said. However, even though the committee opinion on the bill is ready, it has missed the deadline for final voting, which will now only happen after the assembly’s summer break.
osmetics retailer Sa Sa International Holdings Ltd saw its sales growth in Macau and Hong Kong slow down to 16.6 percent year-on-year during the period between April 1 and August 19, the company told the Hong Kong Stock Exchange on Friday. During the financial year ended March 31, sales in Hong Kong and Macau had increased much faster, by 29.8 percent to HK$5.09 billion (US$656 million). Hong Kong-based Sa Sa has seven stores in Macau and a further 242 shops in the neighbouring HKSAR and mainland China.
V.Q.
V.Q.
Sa Sa sales pace slows down
C
Row over Louis Ng’s Burgundy estate deal
SJM’s Louis Ng paid about 80 million patacas for the 12th-century Chateau de Gevrey Chambertin
G
ambling executive Louis Ng Chi Sing promised on Friday extensive investment in a top Burgundy estate he recently bought, in a deal that has triggered an angry backlash in France. The chief operating officer of casino operator SJM Holdings Ltd, pledged via a representative in France that he would be investing significant sums in restoring the 12th-century Chateau de Gevrey Chambertin and upgrading the estate’s wine production. The 60-year-old businessman acquired the property and two hectares (five acres) of vineyards in one of Burgundy’s top appellations, for 8 million euros (79.9 million patacas) earlier this year. The sale has been attacked by a group of winemakers there who had failed in their own bid to buy the
estate as well as by France’s far-right Front National, who believe the state should have intervened to keep the historic building and its vineyards in French hands. Mr Ng’s representative said in a statement that the new owners would be making use of local winemakers to tend the vines and local craftsmen to carry out substantial works on the 900-year-old building. “The chateau will be renovated by a French architect who is known for his work on sites of national heritage across Burgundy,” the statement said. “The works themselves will be carried out by regional businesses specialised in working on historic buildings enabling the chateau to be re-established as one of the finest buildings in the Cote d’Or wine region.” AFP
August 27, 2012 business daily | 9
greater china Drugs watchdog to step up fight against fake medicines China’s drugs watchdog said it will step up joint action with other law enforcement agencies and government departments to crack down on counterfeit medicines. The State Food and Drug Administration will also start an inspection of the production of medicines listed as “national essential medicines” in the next four months, according to a statement posted on its website yesterday. The agency will improve coordination among drug safety agencies in different regions and boost cooperation between government and enterprises, the head of the agency Yin Li said.
Shanghai stocks fell to lowest since 2009 Hong Kong shares also hit by profit concerns
C
hina’s stocks fell, dragging down the benchmark index to the lowest level since March 2009, after companies from Maanshan Iron & Steel Co. to Shanxi Coal International Energy Group Co. reported weaker earnings. Maanshan Iron dropped to a 16-year low, while Shanxi Coal sank 6 percent as Shenyin & Wanguo Securities cut the company’s earnings estimates. Gemdale Corp. tumbled to a sevenmonth low after the official Xinhua news agency reported the government is studying further measures to control the property market. The Shanghai Composite declined 1 percent to 2,092.10 at the close on Friday, the lowest since March 3, 2009. The CSI 300 Index lost 1.2 percent to 2,275.68. The Hang Seng China Enterprises Index of Chinese companies traded in Hong Kong fell 1.8 percent. Hong Kong shares had their worst day in a month last Friday, with the resource sector leading a reversal of Thursday’s gains and more weakness looming as the benchmark ended below a chart support level. The “risk-off” sentiment strengthened Friday’s focus on the corporate earnings season, which has brought largely unfavourable results. The Hang Seng Index closed down 1.3 percent at 19,880, below the 20,000 level for only the third time
The Shanghai Composite index has fallen 4.9 percent this year
in three weeks and the lowest in that timeframe. For the week, the index lost 1.2 percent, its worst showing in four weeks. “The market’s volatile with weak first-half earnings and property concerns dragging the market,” said Larry Wan, Beijing-based head of investment at Union Life Asset Management Co. The Shanghai Composite has retreated 1.1 percent last week after a report from HSBC Holdings Plc and Markit Economics showed manufacturing may be contracting at a faster pace this month. The index has fallen 4.9 percent this year, dragging down
estimated earnings to 9.4 times.
Earnings concerns The Chinese resources sector was among the top drags ahead of key earnings from coal producers and after Australia intensified a debate on whether the decade-long bull run in commodities has ended, as data showed China heading for the slowest pace of growth in a decade. The manufacturing data signal more monetary and fiscal stimulus may be needed to secure a second-half rebound in economic and earnings growth. “I don’t see people doing a whole lot
in the market, most are just being defensive and playing off individual stocks,” said Francis Cheung, CLSA’s China-Hong Kong equity strategist. “China is more about timing. It’s about when we get more policies... because things are already bad,” Mr Cheung added. “I don’t see much more easing...until the political transition is complete, so there’s a bit of a policy paralysis until then.” Policy makers lowered interest rates in June and July after two reductions in reserve-requirement ratios for lenders this year as the economy expanded at the slowest pace since 2009. China’s non-financial publicly traded companies that have already released first-half earnings posted a 7.8 percent drop in profits, compared with a 4.5 percent decline in the first quarter, Li Peng, analyst at Shenyin & Wanguo, said on Friday. Maanshan Iron retreated 1 percent to 1.96 yuan, the lowest close since February 14, 1996. The company’s first-half net loss was 1.9 billion yuan, compared with net income of 310 million yuan a year ago. Shanxi Coal tumbled 5.5 percent to 20.12 yuan, the lowest close since August 12, 2010. The company’s firsthalf net income fell 4.2 percent from a year earlier. Its 2012 earnings-per-share estimate was also cut by 13 percent to 1.45 yuan at Shenyin & Wanguo. Bloomberg/Reuters
Sinopec half-year profit sinks 41pct Company posts lowest profit since 2008 on refining Guo Aibing
C
hina Petroleum & Chemical Corp., Asia’s biggest refiner, posted its lowest half-yearly profit since 2008 after the sale of fuels at state-controlled prices reduced earnings. Net income declined 41 percent to 24.5 billion yuan (US$3.9 billion) from 41.17 billion yuan a year earlier, the Beijing-based company known as Sinopec said in a filing to the Shanghai Stock Exchange yesterday. The result beat a median estimate of seven analysts compiled by Bloomberg that called for a profit of 22.9 billion yuan. Sinopec’s profit slide follows a drop in earnings for larger rival PetroChina Co., which said it expects fuel-pricing reforms in the second half to help
cut losses from refining. Sinopec and parent China Petrochemical Corp. have announced more than US$40 billion in deals to acquire assets globally since 2009 to build up oil and gas production and diversify from refining. “Sinopec somehow did a nice job in cost control because they can process less expensive low-grade crude in many refineries,” said Gordon Kwan, Hong Kong-based head of energy research at Mirae Asset Securities Ltd. “Further upside in the second half will hinge on the pace of China’s domestic fuel-pricing reforms and improvement in its upstream-asset quality. Until then, it is likely Sinopec shares will lag behind rivals
China’s three biggest oil companies have posted lower earnings in the first half
PetroChina and Cnooc.” China’s three biggest oil companies have posted lower earnings in the first half. PetroChina’s profit dropped 6 percent to 62 billion yuan, while Cnooc Ltd said that net income
declined 19 percent. Sinopec has declined 12 percent in Hong Kong this year. The stock fell 2.6 percent on August 24 to close at HK$7.17. Bloomberg
10 |
business daily August 27, 2012
ASIA Fairfax at record low Fairfax Media Ltd shares slumped to close at an all-time low after a report its biggest shareholder, billionaire Gina Rinehart, failed to sell a part of her stake in Australia’s secondlargest newspaper publisher. The shares plunged 11 percent to 45.5 Australian cents at the close of trading in Sydney on Friday. Ms Rinehart failed to sell a third of her 15 percent stake in the company, the Australian Financial Review reported, without citing anyone. Fairfax on Thursday posted a record A$2.73 billion (US$2.85 billion) loss in the year ended June 24.
Olympus sells mobile telecom unit Japan’s Olympus Corp. said on Friday it will sell its mobile telecom business for 53 billion yen (US$676 million) to an investment fund, as the cash-strapped medical equipment and camera maker tries to rebuild from a massive accounting fraud. Olympus, which admitted last year that it had hid huge investment losses since the 1990s, has been seeking to sell some of its businesses outside its core operations of endoscopes, microscopes and cameras. The firm will split its subsidiary ITX Corp. into two, and sell off the unit with the main mobile-phone retailing business to investment fund Japan Industrial Partners, Olympus said in a statement. The sale is set to be completed on September 28, Olympus said. The other unit will still be owned by Olympus. Olympus, which is in talks with Sony Corp., Fujifilm Holdings Corp. and others on a possible capital alliance, said it has yet to calculate how much profit it will gain from the sale. ITX, a former technology incubator, was bought by Olympus for about 60 billion yen in multiple transactions from 2000 to 2011. Olympus shares had slumped as much as 80 percent after the accounting fraud unfolded in October last year, but have since recovered and is now about 40 percent down from the pre-scandal level. The shares ended down 0.3 percent at 1,496 yen on Friday, before the announcement.
Stevens sees Australia mining peak within two years Top central banker says it is too soon to call an end to the country’s mining boom Michael Heath and Shamim Adam
Questions over whether the decade-long bull run in commodities has ended have become louder in recent weeks
R
eserve Bank of Australia Governor Glenn Stevens said policy makers are prepared to respond in the event the economy slows, predicting the nation’s mining investment boom has at least another year before easing. “The peak of the resource investment boom as a share of gross domestic product, the highest such peak in at least a century, will occur within the next year or two,” Mr Stevens said
Singapore moves to cleaner fuels Singapore will move towards cleaner fuel and reduce sulphur emissions from cars and industries by 2014 in a bid to keep up with global changes, the country’s National Environment Agency said. As the number of vehicles in the world grows, boosted by surging numbers in Asia, several nations have stepped up the adoption of standards to cap sulphur emissions in recent years, including China, India and Thailand. With the new directive, Singapore will be on par in terms of sulphur standards with Japan, South Korea and Australia for diesel but still lag these countries for gasoline. Refineries in Singapore will have to supply cars and industries diesel with a sulphur content of less than 10 parts per million (ppm) from the current minimum of 50 ppm by July next year. For gasoline, they will have to supply less than 50 ppm sulphur by October 2013, from the current minimum sulphur content of 500 ppm. The environment agency said in a release late on Thursday that it will work with refineries to improve their processes and decrease their sulphur dioxide emissions. “Power stations are also working towards cleaner fuels for their energy needs in order to lower their sulphur dioxide emissions,” the agency said. “As the power stations and industries switch to the use of cleaner fuels to reduce sulphur dioxide, there will also be a reduction in other pollutants.” Currently, Singapore consumes about 23,000 barrels per day of gasoline and about 40,000 barrels per day of road diesel, an industry source said. Refineries in Singapore are investing heavily in sulphur-removing capabilities to meet the new fuel specifications, and are expected to be ready by 2014, traders said. Reuters
KEY POINTS Top central banker says economy still recording reasonable growth RBA sees mining investment boom peaking in next year or two Coal deal failure spells more gloom for once hot sector on Friday in semiannual testimony at parliament in Canberra. The RBA is ready to act if growth veers off from the outlook, he said. BHP Billiton Ltd’s decision last week to delay approval of an estimated US$33 billion expansion of the Olympic Dam copper, uranium and gold mine in South Australia has sparked suggestions the resources boom that has powered economic growth is over. A slowdown in China, the nation’s largest trading partner, may extend into a seventh straight quarter as a contraction in manufacturing probably deepened this month. “With commodity prices coming off, it adds a bit more uncertainty to how quickly mining investment
retraces after its peak,” said Justin Fabo, senior economist at Australia & New Zealand Banking Group Ltd in Sydney. “There is a bit more of a risk that the down leg of investment may be a little bit quicker than previously thought.” A drop in resource investment may threaten Prime Minister Julia Gillard’s pledge to return the budget to surplus this fiscal year after four straight deficits. BHP and Rio Tinto Group both reported profits have declined as commodity prices fall amid slowing global growth.
Mining tax Lower earnings for mining companies may reduce the A$6.5 billion (US$6.8 billion) the government estimates it will reap over two years from a new tax on iron ore and coal profits. The mining tax is payable when a company’s annual profits reach A$75 million, so as not to burden smaller businesses. The government expects to raise A$3.2 billion from the tax in fiscal 2015 and A$3.7 billion in 2016. “Given what has happened recently with commodity prices, the assumption the government has in the budget around Australia’s terms of trade might look a little bit optimistic but we are only two months into the financial year,” Mr Fabo said. The Australian dollar slid to a onemonth low against its New Zealand counterpart after Mr Stevens said the nation’s currency would probably fall if a mining boom ends. Australia’s economy and currency have been bolstered in recent years by the biggest resources bonanza since a gold rush in the 1850s as Chinese-led demand for iron ore, coal and natural gas brought investment projects the government estimated to be worth A$500 billion. The central bank governor’s comments on the timing of the
resource-investment peak contrast with Australian Resources Minister Martin Ferguson, who said the mining boom has ended. “You’ve got to understand, the resources boom is over,” Mr Ferguson told Australian Broadcasting Corp. radio on Thursday. “It has got tougher in the last six to 12 months.” He later said he had been talking only about the end of the boom in commodity prices, the Financial Times reported. The mining boom “in terms of construction is not over,” the paper said, citing Mr Ferguson who referred to A$270 billion in committed capital investment.
Cautiously optimistic’ Brazil’s Vale SA, the biggest ironore producer, said this month that China’s “golden years” are gone as its growth slows. Iron-ore prices fell to the lowest since December 2009 on Friday as slowing growth curbs demand in China, the biggest buyer. China’s industrial production and lending missed economists’ forecasts last month. Foreign direct investment in China fell to the lowest level in two years in July, fuelling concern that waning confidence in the nation’s growth prospects may restrain any economic rebound. But Mr Stevens said he’s cautiously optimistic about the outlook for the global economy and that Australian policy makers are “well equipped” to manage any turmoil that arises. He cited several favourable domestic signals including low unemployment, top-rated government debt, tame inflation and a strong banking system. The RBA’s central outlook is for growth “close to trend” and inflation within a 2 percent to 3 percent target range, and the central bank is “prepared to respond to significant deviations,” he said. Bloomberg
August 27, 2012 business daily | 11
asia
Tokyo’s Osaka deal marred by share plunge, reprimand Computer errors disrupted trading twice in the last seven months Kana Nishizawa and Yoshiaki Nohara
Shares of the Osaka exchange plunged by a record 16 percent on Friday
T
he Tokyo Stock Exchange Group Inc.’s purchase of its Osaka rival is off to a rocky start. Just one day after winning control of Osaka Securities Exchange Co., the president of Japan’s biggest bourse and three other executives had their pay docked after the company was reprimanded by regulators for computer errors that disrupted trading twice in the last seven months. Shares of the Osaka exchange plunged by a record 16 percent on Friday amid speculation the merger will hurt profit.
Combining the Tokyo exchange, which handles 88 percent of Japan’s equity trades, with the only domestic venue for futures on the Nikkei 225 Stock Average is part of a national plan to reinvigorate the country’s exchange industry. Six months after the failure of backup systems caused the Tokyo exchange’s worst trading disruption in six years, a similar malfunction on August 7 caused a 95-minute halt to the bourse’s derivatives trading. “It wouldn’t be a surprise if investors are starting to worry that a merger
Floods threaten Myanmar’s rice crop Yearly crop could be up to 30 percent lower than normal
F
loods have damaged nearly 5 percent of farmland in Myanmar devoted to growing rice, an industry group said, and any damage to the crop could threaten the country’s aim to double exports to 1.5 million tonnes this year. By August 18, some 615,254 acres (249,000 hectares) of 13 million acres of paddy fields had been affected, said Soe Tun, a member of the executive body of the Myanmar Rice Industry Association (MRIA). It is too early to gauge the effect on rice output because some of the fields could be replanted once the water recedes, he said. However, this year’s crop could be 25 to 30 percent lower than normal, said Myo Aung Kyaw, a local consultant to the
778,000 tonnes Of rice exported by Myanmar in 2011
International Rice Research Institute, which is based in the Philippines. Flooding was one factor, but poor prices in the previous crop had also led to lower use of fertiliser, he added. Myanmar normally produces 14 million to 15 million tonnes of milled rice a year. “The water level is receding now, but the farmers will need money to replant their farms. Their monsoon crops have been destroyed by floods,” said Soe Win, general-secretary of the Rice Industry Association in the main rice-growing Irrawaddy region. Chit Khaing, chairman of the MRIA, told a recent meeting the country’s buffer stocks meant domestic prices should not be pushed higher and there was no threat to food supplies. He did not think exports would be affected. By August 10, a total of 427,500 tonnes had been exported in the 2012/13 fiscal year that started in April. Myanmar was the world’s biggest rice exporter in the 1960s, but suffered decades of economic mismanagement under military rule, before a civilian government took office in March 2011 and started pushing through reforms. The country exported 778,000 tonnes of rice in 2011. The U.S. Department of Agriculture has forecast it will export only 600,000 tonnes this year because of increased supplies from rival producers. Reuters
with the TSE would cause some system problems for the OSE,” said Hiroaki Hiwada, a strategist at Tokyo-based Toyo Securities Co. “The market may be starting to price in concerns about the costs to prevent the merged company from system errors.” The Financial Services Agency said the Tokyo exchange didn’t do enough system checking after the February disruption, which stopped trading of 241 securities including Sony Corp. for more than three hours. The bourse needs outside experts
to inspect its countermeasures and to report progress regularly, a spokesman for the regulator said in Tokyo, declining to be named due to official policy.
Pay cut Minutes after the FSA statement, the Tokyo Stock Exchange cut President Atsushi Saito’s salary by 30 percent for two months. General Manager Hiroyuki Iwakuma, chief information officer Yoshinori Suzuki and Yasuhiro Yoshida, and executive officer, will be docked 30 percent of one month’s pay. Two managers in the information technology department received socalled strict admonishments. “The TSE will figure out a solution for the system trouble alone, not together with the OSE because we have to figure out a solution as early as possible,” Mr Suzuki said at a press conference on Friday. “This system trouble will not directly affect talks on derivative-system integration between TSE and OSE.” Osaka spokesman Masahiro Yada declined to comment on the smaller company’s share plunge or on the system errors at the Tokyo exchange. The TSE said August 23 that Osaka shareholders offered to sell 80 percent of the smaller bourse’s stock at 480,000 yen per share. That was more than the 67 percent the TSE sought in a tender offer that closed the day before. Shares of Osaka slid 0.7 percent from November 22 when the deal was announced through August 23. The companies project the deal will close in January. Bloomberg
12 |
business daily August 27, 2012
MARKETS Hang SENG INDEX NAME
PRICE
Day %
VOLUME
13.1
0.6144393
103159381
11.14
-0.7130125
1406054
SANDS CHINA LTD
CLP HLDGS LTD
65.1
-0.3825555
2228396
CNOOC LTD
14.8
-1.069519
54016521
COSCO PAC LTD
10.4
-0.952381
ESPRIT HLDGS
12.26
11778130
HANG LUNG PROPER
20033923
PRICE
Day %
VOLUME
26.75
-0.3724395
23241367
ALUMINUM CORP-H
3.27
-2.095808
4487600
BANK OF CHINA-H
2.95
-1.337793
223404526
BANK OF COMMUN-H
5.17
-1.147228
12090938
28.45
-2.233677
1778625
BELLE INTERNATIO
14.4
-0.1386963
13654947
BOC HONG KONG HO
24.6
-1.204819
CATHAY PAC AIR
12.96
-0.4608295
CHEUNG KONG
AIA GROUP LTD
BANK EAST ASIA
NAME
PRICE
Day %
61.05
-0.8928571
1556063
27.6
-3.327496
11564239
SINO LAND CO
13.46
-0.7374631
5780400
SUN HUNG KAI PRO
101.9
-1.067961
3147667
2027389
SWIRE PACIFIC-A
92.25
-1.178361
1019340
-0.487013
5441026
TENCENT HOLDINGS
245
-1.209677
1940455
27.35
-1.263538
2858400
TINGYI HLDG CO
22.4
-1.754386
4612930
HANG SENG BK
110.2
-0.7207207
601998
WANT WANT CHINA
9.99
-0.1
14915120
HENDERSON LAND D
49.05
0
2971378
49.25
0.7157464
9001290
73.5
-1.737968
1472671
CHINA UNICOM HON CITIC PACIFIC
106.3
-1.756007
5339526
CHINA COAL ENE-H
6.87
-2.828854
24958700
CHINA CONST BA-H
5.26
-1.865672
117754015
CHINA LIFE INS-H
21.3
-1.388889
22188591
24
-1.840491
1907210
CHINA MOBILE
83.05
-0.9540847
19453555
HUTCHISON WHAMPO
CHINA OVERSEAS
18.28
-1.72043
14805521
IND & COMM BK-H
CHINA MERCHANT
HENGAN INTL HONG KG CHINA GS
18.32
-0.972973
5847802
HONG KONG EXCHNG
106.9
-0.8348794
1473792
68.3
-1.514059
9818593
68.85
-1.290323
7410810
4.39
-2.008929
123378802
HSBC HLDGS PLC
NAME POWER ASSETS HOL
WHARF HLDG
MOVERS
2
45
VOLUME
2 20140
INDEX 19880.03
CHINA PETROLEU-H
7.17
-2.581522
64697486
LI & FUNG LTD
12.88
0
51592450
HIGH
20132.24
CHINA RES ENTERP
23.25
-0.6410256
2238535
MTR CORP
27.95
-0.8865248
2225223
LOW
19859.81
CHINA RES LAND
15.26
-0.3916449
8018000
NEW WORLD DEV
10.12
-0.7843137
6347813
CHINA RES POWER
16.7
-0.2389486
1923490
52W (H) 21760.33984
PETROCHINA CO-H
9.65
-0.6179197
55939336
CHINA SHENHUA-H
29.5
-3.119869
16968602
PING AN INSURA-H
59.1
-1.582015
19780988
19860
(L) 16170.35 22-Aug
24-Aug
Hang SENG CHINA ENTErPRISE INDEX NAME
NAME
PRICE
DAY %
VOLUME
24.25
-2.020202
3923577
CHINA PETROLEU-H
7.17
-2.581522
64697486
4487600
CHINA RAIL CN-H
6.22
0
9852011
-1.201923
9021913
CHINA RAIL GR-H
3.03
-1.623377
11862369
2.95
-1.337793
223404526
CHINA SHENHUA-H
29.5
-3.119869
16968602
PRICE
DAY %
VOLUME
AGRICULTURAL-H
3.07
-0.9677419
41407864
CHINA PACIFIC-H
AIR CHINA LTD-H
5.01
-2.529183
11710000
ALUMINUM CORP-H
3.27
-2.095808
ANHUI CONCH-H
20.55
BANK OF CHINA-H
5.17
-1.147228
12090938
CHINA TELECOM-H
4.43
-0.4494382
143035868
13.74
-1.997147
1263800
DONGFENG MOTOR-H
10.6
-1.669759
13643411
CHINA CITIC BK-H
3.94
-1.5
18897068
GUANGZHOU AUTO-H
5.78
-2.857143
2459834
CHINA COAL ENE-H
6.87
-2.828854
24958700
HUANENG POWER-H
5.38
-0.5545287
6322047
CHINA COM CONS-H
6.85
-2.142857
18804524
IND & COMM BK-H
4.39
-2.008929
123378802
BANK OF COMMUN-H BYD CO LTD-H
CHINA CONST BA-H
5.26
-1.865672
117754015
JIANGXI COPPER-H
18.54
-1.800847
7264299
CHINA COSCO HO-H
3.29
-0.9036145
6146752
PETROCHINA CO-H
9.65
-0.6179197
55939336
CHINA LIFE INS-H
21.3
-1.388889
22188591
PICC PROPERTY &
9.23
-1.808511
17490086
CHINA LONGYUAN-H
5.06
-2.692308
3040000
PING AN INSURA-H
59.1
-1.582015
19780988
CHINA MERCH BK-H
13.9
-0.8559201
7341239
SHANDONG WEIG-H
8.71
-1.135074
5916000
NAME
PRICE
DAY %
VOLUME
11.68
-1.184433
12838576
ZIJIN MINING-H
2.63
-2.592593
47969327
ZOOMLION HEAVY-H
8.84
-1.55902
9820060
11.92
1.016949
9329778
YANZHOU COAL-H
ZTE CORP-H
MOVERS
3
0 9850
INDEX 9674.82 HIGH
9848.2
LOW
9665.44
CHINA MINSHENG-H
6.99
-2.51046
47173316
SINOPHARM-H
25.1
1.209677
3061273
52W (H) 11916.1
CHINA NATL BDG-H
7.84
-4.622871
70012130
TSINGTAO BREW-H
43.15
0.1160093
1633600
(L) 8058.58
13.02
-2.398801
6143283
WEICHAI POWER-H
22.05
-2.649007
1381328
CHINA OILFIELD-H
37
9660
22-Aug
24-Aug
Shanghai Shenzhen CSI 300 NAME
PRICE
DAY %
VOLUME
AGRICULTURAL-A
2.48
0
49099642
CSR CORP LTD -A
PRICE
DAY %
VOLUME
4.2
-0.7092199
9607388
AIR CHINA LTD-A
5.02
-1.568627
11444698
DAQIN RAILWAY -A
5.92
0.8517888
ALUMINUM CORP-A
5.82
-1.355932
8888628
DATANG INTL PO-A
4.61
ANHUI CONCH-A
14.06
-1.540616
12903689
DONGFANG ELECT-A
BANK OF BEIJIN-A
7.22
-0.9602195
8790920
EVERBRIG SEC -A
BANK OF CHINA-A
2.78
0
21560010
BANK OF COMMUN-A
4.36
-0.456621
37506997
9.4
-1.364113
7583390
BANK OF NINGBO-A BAOSHAN IRON & S
4.1
-0.243309
14552077
NAME
NAME
PRICE
DAY %
VOLUME
SAIC MOTOR-A
11.83
0
10655396
24879482
SANY HEAVY INDUS
11.27
-2.592913
28314532
-1.072961
1750077
SHANDONG GOLD-MI
35.78
-2.079912
20998144
15.89
0.952986
9797688
SHANG PHARM -A
12.07
1.513877
25803084
11.04
-0.630063
4486890
SHANG PUDONG-A
7.49
-0.3989362
36963616
GD MIDEA HOLDING
9.18
-0.8639309
9139999
SHANGHAI ELECT-A
4.22
-0.7058824
2603675
GD POWER DEVEL-A
2.62
-0.7575758
13687747
SHANXI LU'AN -A
19.15
-4.154154
11141808
GF SECURITIES-A
12.27
-2.850356
11352509
SHANXI XINGHUA-A
38.99
1.141375
2220467
GREE ELECTRIC
20.13
1.104972
10369397
SHANXI XISHAN-A
13.61
-4.087385
14787020
14.91
-1.454065
5514294
GUANGHUI ENERG-A
12.91
0
14799355
SHENZEN OVERSE-A
5.44
-0.1834862
10441675
CHINA CITIC BK-A
3.83
-1.28866
9910910
HAITONG SECURI-A
8.51
-0.8158508
24756392
SUNING APPLIAN-A
5.99
-1.317957
57593002
CHINA CNR CORP-A
3.57
-1.381215
17187096
HANGZHOU HIKVI-A
29
0.2073255
2028748
TSINGTAO BREW-A
32.83
-0.1520681
613196
CHINA COAL ENE-A
7.25
-2.291105
10095609
HEBEI IRON-A
2.56
-1.538462
9732358
WEICHAI POWER-A
18.15
-3.457447
4730576
BYD CO LTD -A
CHINA CONST BA-A
3.98
-0.7481297
17437682
64
0
1207648
WULIANGYE YIBIN
34.2
-0.6391633
11969885
CHINA COSCO HO-A
4.15
-1.190476
4942734
HONG YUAN SEC-A
HENAN SHUAN-A
16.48
-2.253855
7765751
XIAMEN TUNGSTEN
43.31
-4.032794
12295876
CHINA CSSC HOL-A
20.31
-2.496399
2442306
HUATAI SECURIT-A
8.58
-0.5793743
9712254
YANGQUAN COAL -A
14.75
-3.594771
12069559
CHINA EAST AIR-A
3.64
-0.2739726
3742140
HUAXIA BANK CO
8.66
-0.8018328
9351671
YANTAI CHANGYU-A
54.83
-1.207207
839810
CHINA EVERBRIG-A
2.74
-0.3636364
20914072
IND & COMM BK-A
3.81
0
22783686
YANTAI WANHUA-A
12.86
-1.606733
4150807 2232336
17.18
-0.4057971
5962695
INDUSTRIAL BAN-A
12.22
-0.6504065
28580908
YANZHOU COAL-A
18.22
-2.410284
CHINA MERCH BK-A
9.92
-0.2012072
32882966
INNER MONG BAO-A
37.53
-0.2127094
50716968
YUNNAN BAIYAO-A
60.86
-1.759483
1625348
CHINA MERCHANT-A
9.95
-1.679842
4535967
INNER MONG YIL-A
20.7
2.0207
13456927
ZHONGJIN GOLD
15.16
-0.7853403
24114343
CHINA MERCHANT-A
19.72
-0.7049345
5734049
INNER MONGOLIA-A
5.77
-2.861953
75028097
ZIJIN MINING-A
3.84
-2.040816
51328079
30.25
0.8333333
8737825
ZOOMLION HEAVY-A
8.38
-6.368715
74881843
127.08
0.6973059
2252537
ZTE CORP-A
10.9
-2.85205
11978390
JIANGXI COPPER-A
21.11
-2.223252
5759594
CHINA LIFE INS-A
CHINA MINSHENG-A
5.87
-0.170068
57527247
JIANGSU HENGRU-A
CHINA NATIONAL-A
6.06
-3.349282
22634772
JIANGSU YANGHE-A
CHINA OILFIELD-A
16.17
-4.035608
8661581
CHINA PACIFIC-A
19.42
-0.4102564
11261722
JINDUICHENG -A
12.15
-2.095085
3259987
CHINA PETROLEU-A
6.02
-0.8237232
15364598
JIZHONG ENERGY-A
13.29
-5.206847
18935760
CHINA RAILWAY-A
4.35
-1.58371
8926916
KANGMEI PHARMA-A
15.45
-2.646503
7855638
CHINA RAILWAY-A
2.45
-1.606426
19598162
KWEICHOW MOUTA-A
231.88
1.581461
2167620
CHINA SHENHUA-A
21.93
-1.659193
5891473
LUZHOU LAOJIAO-A
38.55
0.6002088
4802120
21989406
METALLURGICAL-A
2.22
-1.333333
12757245
MOVERS
35
8 2320
INDEX 2275.677
CHINA SHIPBUIL-A
4.88
0.4115226
CHINA SOUTHERN-A
3.76
-0.5291005
8929796
NINGBO PORT CO-A
2.48
0
9720971
CHINA STATE -A
3.03
-0.3289474
36708813
PANGANG GROUP -A
4.07
-0.973236
43315844
HIGH
2315.14
CHINA UNITED-A
3.9
0.2570694
98731817
PETROCHINA CO-A
8.85
-0.3378378
8989743
LOW
2275.59
CHINA VANKE CO-A
8.12
0.1233046
34829571
PING AN BANK-A
14.37
-1.709986
18817910
CHINA YANGTZE-A
6.51
0.1538462
10330841
PING AN INSURA-A
40.87
-0.3899586
11878532
CHONGQING WATE-A
5.67
-1.04712
5949981
POLY REAL ESTA-A
9.42
0.1062699
29292596
10.76
-0.4625347
34841395
QINGHAI SALT-A
31.5
-5.206139
9997301
CITIC SECURITI-A
257
52W (H) 2907.398 (L) 2254.567
2270
22-Aug
24-Aug
FTSE TAIWAN 50 INDEX NAME ACER INC ADVANCED SEMICON
PRICE DAY % 26.6
Volume
NAME
1.915709
28568842
FORMOSA PLASTIC
22.35 -0.6666667
15078416
PRICE DAY %
Volume
82.2
-1.201923
3167863
FOXCONN TECHNOLO
112.5
-1.315789
30.25
NAME
Volume
108.5
-1.363636
1317900
11242601
TPK HOLDING CO L
399.5
2.435897
6352163
82 -0.8464329
25494308
ASIA CEMENT CORP
35.1 -0.1422475
1257523
FUBON FINANCIAL
-1.305057
12086993
TSMC
ASUSTEK COMPUTER
281
-3.103448
7785315
HON HAI PRECISIO
86.9 -0.2296211
32248971
UNI-PRESIDENT
AU OPTRONICS COR
9.42
-2.986612
54754223
HOTAI MOTOR CO
209
0.4807692
295960
159
CATCHER TECH
PRICE DAY %
TAIWAN MOBILE CO
51.1
0.7889546
5104084
UNITED MICROELEC
12.15 -0.4098361
19288598
WISTRON CORP
33.15
5.298013
16405157
HTC CORP
262.5
4.790419
24475274
CATHAY FINANCIAL
29.65 -0.6700168
6399850
HUA NAN FINANCIA
16.25 -0.6116208
4198182
YUANTA FINANCIAL
14.6 -0.6802721
9514806
CHANG HWA BANK
15.45 -0.6430868
7593692
LARGAN PRECISION
616
876842
YULON MOTOR CO
55.5
7549756
LITE-ON TECHNOLO
35.7 -0.8333333
MEDIATEK INC
318
1.923077
24914690
CHENG SHIN RUBBE
0.3257329
73
-1.617251
4573181
10.05
-1.95122
31370339
CHINA DEVELOPMEN
7.18 -0.4160888
23051959
MEGA FINANCIAL H
23.05
-1.072961
24742664
CHINA STEEL CORP
26.1 -0.9487666
16545368
NAN YA PLASTICS
57.7
-1.19863
3511381
12312544
PRESIDENT CHAIN
163.5
-1.208459
915851
-1.710526
4694861
CHIMEI INNOLUX C
CHINATRUST FINAN
18
-1.369863
CHUNGHWA TELECOM
90.1 -0.5518764
5175765
QUANTA COMPUTER
74.7
26.8 -0.7407407
8331161
SILICONWARE PREC
33.7 -0.8823529
3074073
DELTA ELECT INC
100.5
-1.470588
6665053
SINOPAC FINANCIA
12.2 -0.8130081
9161935
FAR EASTERN NEW
31.55 -0.3159558
4934945
SYNNEX TECH INTL
66.8
-1.037037
2180538
0.2670227
3105001
TAIWAN CEMENT
33.9 -0.2941176
5049425
75.1
FIRST FINANCIAL
17.5
0.286533
12184196
FORMOSA CHEM & F
80.5
-1.348039
2017649
FORMOSA PETROCHE
89.6 -0.2227171
940274
TAIWAN COOPERATI
16.65 -0.5970149
0.1805054
8703094
1906572
COMPAL ELECTRON
FAR EASTONE TELE
-2.356406
4651778
TAIWAN FERTILIZE
74.6
-1.322751
3460267
TAIWAN GLASS IND
28.8
0.173913
1764605
MOVERS
12
38
0 5150
INDEX 5123.59 HIGH
5149.28
LOW
5109.12
52W (H) 5621.53 5100
(L) 4643.05 22-Aug
24-Aug
August 27, 2012 business daily | 13
MARKETS GAMING STOCKS - DAILY PERFORMANCE (Hong Kong Stock Exchange) GAlAXy ENtErtAINMENt
Max 22.5
Average 22.325
MElCo CroWN ENtErtAINMENt
Min 22.1
22.5
31.
13.1
22.4
30.9
13.0
22.3
30.7
12.9
22.2
30.5
12.8
22.1
last 22.5
MGM CHINA HolDINGS
Max 31
SANDS CHINA ltD
Average 30.541
Min 30.4
30.3
last 30.5
SJM HolDINGS ltD
Max 13.02
Average 12.909
Min 12.78
last 12.8
12.7
WyNN MACAU ltD
28.4
16.1
19.5
16.0
19.3
15.9
19.1
28.2 28.0 27.8 27.6 Average 27.772
Max 28.35
Min 27.45
last 27.6
27.4
15.8 Max 16.06
Average 15.961
Commodities PRICE
DAY %
YTD %
(H) 52W
(L) 52W
WTI CRUDE FUTURE Oct12
96.15
-0.124649423
-2.465003043
110.6499939
78.15999603
BRENT CRUDE FUTR Oct12
113.59
-1.234675246
8.625800899
123.2900009
89.11000061
GASOLINE RBOB FUT Sep12
307.8
-1.213171577
15.87546587
320.4399824
237.3699903
990
-0.677200903
10.24498886
1044.75
799
2.702
-3.568879372
-17.69722814
4.630000114
2.221999884
GAS OIL FUT (ICE) Oct12 NATURAL GAS FUTR Sep12
METALS
HEATING OIL FUTR Sep12
311.01
-0.730928822
9.168450981
332.9600096
251.5599966
Gold Spot $/Oz
1670.5
0.5387
6.7474
1921.18
1522.75
Silver Spot $/Oz
30.7825
1.6092
10.5892
43.4088
26.085
Platinum Spot $/Oz
1549.45
0.3023
11.1115
1896.75
1339.25
Palladium Spot $/Oz
652.55
2.8853
-0.1454
792.93
537.54 1827.25
LME ALUMINUM 3MO ($)
1918
0.708847467
-5.04950495
2476
LME COPPER 3MO ($)
7640
-0.579087774
0.526315789
9304
6635
LME ZINC
1879
0.912996778
1.842818428
2311
1718.5
3MO ($)
LME NICKEL 3MO ($)
16475
0
-11.9454837
22450
15236
15.69
-0.095510984
3.189740217
17.5
14.15499973
808.5
-0.767106474
37.91044776
849
499
WHEAT FUTURE(CBT) Dec12
888.5
-0.698519139
23.40277778
953.25
629.5
SOYBEAN FUTURE Nov12
1731.5
0.962099125
43.7824372
1744.75
1115.75
COFFEE 'C' FUTURE Dec12
162.9
0.648748842
-30.97457627
285.6499939
SUGAR #11 (WORLD) Oct12
19.58
-0.051046452
-14.23565484
COTTON NO.2 FUTR Dec12
75.21
-2.0703125
-14.3784153
AGRICULTURE ROUGH RICE (CBOT) Nov12 CORN FUTURE
last 15.98
Dec12
PRICE MAJORS
ASIA PACIFIC
CROSSES
AUD GBP CHF EUR JPY MOP HKD CNY INR THB SGD TWD PHP IDR AUDJPY EURCHF EURGBP EURCNY EURMOP EURJPY HKDMOP
Average 19.073
last 18.92
Min 18.9
DAY %
YTD %
YTD %
(H) 52W
1.9003 1.7178 -2.2507 -3.4642 -2.2372 0.1277 0.1367 -0.9395 -4.3788 1.057 3.6699 1.0614 3.8247 -4.7274 -4.1736 1.3274 5.3058 2.0487 3.4569 1.2393 0.0097
(L) 52W
1.0857 1.6455 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 45.7725 29.87 1.2021 28.911 41.57 8507 72.057 1.1002 0.77553 7.7018 9.6245 94.12 1.0288
(H) 52W
(L) 52W
2.59
-2.264151
17.72727
3.25
1.88
743665
153.6999969
CROWN LTD
8.99
0.2229654
11.12484
9.29
7.47
1600142
25.77999878
19.23999977
AMAX HOLDINGS LT
0.061
0
-29.88506
0.119
0.055
0
102.25
64.61000061
BOC HONG KONG HO
24.6
-1.204819
33.69565
24.95
14.24
11778130
0.227
-1.731602
-1.30435
0.335
0.204
696000
3.19
0
13.92857
3.62
2.3
0
CHINA OVERSEAS
18.28
-1.72043
40.83205
19.16
9.99
14805521
CHINESE ESTATES
9.49
1.497326
-24.08
13.68
8.3
60000
CHOW TAI FOOK JE
9.93
-2.837573
-28.66379
15.16
8.4
12188773
1.4
0.7194245
26.12612
1.48
0.97
735000
1.16
-0.8547009
176.1905
1.24
0.3
1248000 7050350
World Stock MarketS - Indices PRICE
-0.7063 -0.422 -0.3126 -0.3266 -0.0636 -0.0075 -0.0052 -0.022 -0.4325 -0.032 -0.3598 -0.0801 -0.3789 -0.2626 0.6475 0.0092 -0.0948 -0.0276 0.2299 0.2641 0
ARISTOCRAT LEISU
NAME
CHEUK NANG HLDGS
COUNTRY
DAY %
1.0403 1.581 0.9597 1.2512 78.67 7.9894 7.7568 6.3547 55.495 31.22 1.2507 29.961 42.225 9519 81.848 1.20085 0.7914 7.9709 10.0061 98.44 1.03
MACAU RELATED STOCKS
CENTURY LEGEND
NAME
18.9 Max 19.42
CURRENCY EXCHANGE RATES
NAME ENERGY
Min 15.82
(H) 52W
(L) 52W
DOW JONES INDUS. AVG
US
13157.97
0.7697515
7.697202
13338.66016
10404.49
NASDAQ COMPOSITE INDEX
US
3069.786
0.536516
17.83529
3134.17
2298.89
FTSE 100 INDEX
GB
5776.6
0
3.666728
5989.07
4868.6
DAX INDEX
GE
6971.07
0.3093717
18.18678
7194.33
4965.8
NIKKEI 225
JN
9070.76
-1.169738
7.278352
10255.15
8135.79
EMPEROR ENTERTAI FUTURE BRIGHT GALAXY ENTERTAIN
PRICE
DAY % YTD %
VOLUME CRNCY
22.5
0
58.00562
24.95
8.69
110.2
-0.7207207
19.58763
116.7
84.4
601998
HOPEWELL HLDGS
25.1
1.006036
26.38469
25.2
18.56
1612649
HSBC HLDGS PLC
68.3
-1.514059
15.76271
71.8
56
9818593
HUTCHISON TELE H
3.88
0.5181347
29.76589
3.88
2.53
5380760
LUK FOOK HLDGS I
21.15
-5.156951
-21.95572
42.7
14.7
3636432
MELCO INTL DEVEL
6.3
-0.3164557
9.185442
9.17
4.3
1951100
12.8
-1.689708
33.4424
14.804
7.6
3360000
HANG SENG BK
HANG SENG INDEX
HK
19880.03
-1.252767
7.842074
21760.33984
16170.35
CSI 300 INDEX
CH
2275.677
-1.152029
-2.986899
2907.398
2254.567
TAIWAN TAIEX INDEX
TA
7477.53
-0.3682795
5.733104
8170.72
6609.11
MIDLAND HOLDINGS
4.31
-3.146067
9.002246
5.217
2.887
1738000
KOSPI INDEX
SK
1919.81
-1.170117
5.152435
2057.28
1644.11
NEPTUNE GROUP
0.161
0.625
45.04504
0.205
0.08
16320000
S&P/ASX 200 INDEX
AU
4348.995
-0.7917281
7.208929
4448.5
3840.2
NEW WORLD DEV
10.12
-0.7843137
61.66134
10.96
6.13
6347813
SANDS CHINA LTD
27.6
-3.327496
25.74031
33.05
14.9
11564239
SHUN HO RESOURCE
1.13
0
13
1.28
0.82
0
SHUN TAK HOLDING
2.81
-2.768166
9.803014
3.892
2.241
4762185 4999276
JAKARTA COMPOSITE INDEX
MGM CHINA HOLDIN
ID
4145.399
-0.4146388
8.46174
4234.734
3217.951
FTSE Bursa Malaysia KLCI
MA
1648.22
-0.2052543
7.675422
1655.39
1310.53
NZX ALL INDEX
NZ
803.18
-1.161796
10.05476
818.513
712.548
SJM HOLDINGS LTD
15.98
-0.3740648
27.78341
18.285
10.079
PHILIPPINES ALL SHARE IX
PH
3429.29
-0.9396791
12.61888
3531.5
2695.06
SMARTONE TELECOM
16.84
-1.057579
25.29762
18.5
9.8
422682
HSBC Dragon 300 Index Singapor
SI
589.04
0.72
18.68
NA
NA
WYNN MACAU LTD
18.92
-3.07377
-2.974359
25.5
14.62
4859204
STOCK EXCH OF THAI INDEX
TH
1237.19
-0.03635952
20.66379
1247.72
843.69
HO CHI MINH STOCK INDEX
VN
399.72
1.75653
13.70218
492.44
332.28
Laos Composite Index
LO
1056.1
0
17.41489
1064.23
876.33
ASIA ENTERTAINME
4.23
1.682692
-28.06123
8
2.4
163029
BALLY TECHNOLOGI
44.38
-0.0225276
12.18402
49.32
24.74
371568 10500
BOC HONG KONG HO
3.1
0
29.31821
3.25
1.81
GALAXY ENTERTAIN
2.9
1.754386
55.08021
3.24
1.08
1576
12.02
0.3338898
-30.11628
18.1701
10.92
3686937
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MGM CHINA HOLDIN
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INTL GAME TECH
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business daily August 27, 2012
Opinion
China’s house divided
Christopher R. Hill
Former U.S. Assistant Secretary of State for East Asia and Dean of the Korbel School of International Studies, University of Denver
T
here has been much talk about America’s decline in recent years, with the corollary that China will take its place. But, while the United States does indeed face problems that urgently need to be addressed, if China is to rise further, to say nothing of supplanting the U.S. internationally, it must first put its own house in order. Those who argue that America is in decline have a difficult case to make in economic terms. For all its recent woes (which many countries would gladly exchange for their own), the U.S. remains a dynamo of industry and innovation, and may be emerging as an energy powerhouse as well. What threatens America’s global leadership is, rather, some of the most divided and disruptive domestic politics in its history. A country whose people have traditionally prided themselves on practicality is experiencing a debilitating bout of excessive theorising, ideology, and so-called “new ideas,” thereby forestalling the practical ideas that come from constructive interaction with one’s political opponents. The demise of compromise and collegiality in domestic politics has raised new challenges in America’s interaction with others as well. Foreignpolicy debate in the U.S. has become a proxy for who is “tougher,” which does not necessarily mean wiser. Thus, the American art of diplomatic engagement, the ability to talk with different sides while holding one’s own views to oneself, has been largely replaced by a penchant for loud talk, finger-pointing, self-righteousness, and recrimination. Countries used
to welcome and look for American engagement. Now some are more likely to fear it, especially if it comes in the form of playing to domestic American constituencies’ appetite for supposed toughness. But, before the U.S. hands over international leadership to the Chinese, it would be instructive to look at China’s own internal political divisions and inability to synchronise its domestic politics with its growing global responsibilities. China’s problems make those afflicting the U.S. polity seem trivial in comparison.
China troubles In recent years, China has been increasingly embroiled in a nineteenth-
It would be instructive to look at China’s own internal political divisions and inability to synchronise its domestic politics with its growing global responsibilities
century-style dispute with several of its Southeast Asian neighbours over conflicting claims to the South China Sea. Before one laments Americans’ unwillingness to crack a history book on an international subject, it is enlightening to watch China in action, systematically complicating its vitally important relationships in the region over…what? China’s so-called “nine dashes” claim, which essentially seeks to turn the entire South China Sea into a southern Chinese lake, represents a legacy of Chiang Kai-Shek’s Republic of China. And where did the Generalissimo find the inspiration for this claim? China argues that the waters have been Chinese for a thousand years, but the likelier inspiration is more recent, reflecting Imperial Japan’s occupation of Taiwan until 1945. Thus, China, whose culture and achievements are the envy of the world, is today in a war of words – and a few naval vessels as well – with almost all of its southern neighbours over a recently inherited claim on an issue that calls for a respectful process of international negotiation. Various considerations typically underlie policy choices in such situations. But, in the case of China’s ham-handedness in the South China Sea, domestic constituencies decrying “weakness” and demanding toughness from political leaders are a key factor. Among China’s 500 million Internet users, for example, one senses a palpable rise in nationalist sentiment, reflected in bitter criticism of official “weakness” in defending Chinese interests. China’s government is extremely
sensitive to such attacks. If a Chinese blogger criticises the government over its crackdown on Falun Gong, or supports Tibet’s opposition, the Internet police rush to the scene of the supposed crime. But if the blogosphere emits jingoistic calls for more raw materials, the government salutes and works harder to obtain them.
Puzzling options Domestic pressures have tied China in knots on other issues as well. Many international observers might forgive China its behaviour in the South China Sea, given that many countries, large and small, have maritime disputes with neighbours. But China’s own constituencies, whether netizens or competing official institutions, have contributed to an international record that is earning China derision from small neighbours and great powers alike. China’s continued support for a nuclear aspirant like North Korea is a case in point. No responsible country in the world today sees any merit to North Korea’s behavior. Yet China’s preoccupation with its internal politics is such that it cannot see the price that it pays for reacting to every North Korean outrage with only vague opprobrium, combined with expressions of hope-over-experience that North Korea will reform. For example, the equanimity of its response to North Korea’s military attacks against South Korea in 2010 left South Koreans, who are also China’s neighbours, in despair about bilateral relations. The origin of China’s desultory policy lies in its leadership’s failure to shape or sharpen the drift of domestic politics: many Chinese still see plucky little North Korea as a friend and ally. So China does nothing to signal a more serious way forward, much less earn respect in the broader international community, which is now thoroughly disgusted by North Korea’s behaviour. The list of untenable policies goes on. Syria is the latest international problem that China, again constrained by domestic politics, cannot seem to get right. No one expects China to line up in perfect formation with the U.S. or the European Union on this and other issues. But its consistent preference for lining up on the other side of the divide – even when doing so runs counter to its own national interests – calls into question whether it has the internal fortitude to be a leader. None of this is meant to minimise the consequences of political polarisation in the U.S. But, whereas America’s problem in the world today is that domestic pressures sometimes lead to an excess of fortitude, China’s problem is that similarly constraining pressures produce foreign-policy weakness. © 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 27, 2012 business daily | 15
OPINION
In Apple v. Samsung patent case, wires expect nobody to win Business
Leading reports from Asia’s best business newspapers
Bangkok Post
Susan P. Crawford
Contributor to Bloomberg View and a visiting professor at the Harvard Kennedy School of Government and Harvard Law School
The Thai government still believes second-half exports will help it meet its full-year economic growth target of between 5.5 percent to 6 percent. Prime Minister Yingluck Shinawatra called a meeting of Pheu Thai Party cabinet ministers on Saturday to prepare for the parliamentary debate on the government’s firstyear administration. Suranand Vejjajiva, secretary-general of the prime minister’s office, said the government will accelerate various measures to support the private sector in raising exports and meeting the target in the second half.
Korea Herald Officials at the nuclear power plant Uljin-1 have launched a probe to find out what caused the plant to shut down suddenly on Thursday. The Korea Hydro and Nuclear Power Corp. reported on Thursday evening that the nuclear unit’s reactor and power-generating turbine suddenly ceased operation for unknown reasons. Capable of providing 950,000 kilowatts of electric power, the nuclear unit is currently undergoing an inspection by experts dispatched from the International Atomic Energy Agency and Korea Institute of Nuclear Safety, company officials were quoted as saying.
Investor Daily Bank Mandiri, Indonesia’s largest lender by assets, is considering an initial public offering next year for its Islamic unit, Bank Syariah Mandiri, a top executive has said. Mr Sunarso, a commercial director of Bank Mandiri, was quoted as saying that the preparations for the offering were under way and the IPO was likely for next year. “We want the IPO to help strengthen the capital [of Bank Syariah Mandiri],” he said. He did not provide any details regarding the size of the IPO or the total estimated funds to be raised.
Yomiuri Shimbun The Development Bank of Japan and Mitsubishi Corp. are preparing a joint bid to acquire a 60 percent stake in a British firm that leases civil aircraft engines and sells engine parts. The planned investment in the British company, TES Holdings Ltd, would give DBJ-Mitsubishi a stronger presence in the leasing business in the world’s rapidly growing aircraft sector. DBJ and Mitsubishi Corp. will partner to purchase the shares from German bank DVB Bank SE, which is currently TES’ sole shareholder, sources were quoted as saying.
I
remember a June evening when three complete strangers separately insisted on showing me their new mobile phones. It was 2007, I was on the subway in New York, and Apple’s iPhone had just been released. The slick design of Apple’s new device – and, in particular, its ease of use – was so compelling, these people could not help but share. Now the multibillion-dollar question confronting a jury in San Jose, California, is whether Samsung Electronics Co. found those elements of the iPhone so compelling, it could not help but copy. Apple’s position is that the chronology of events speaks for itself: it took Apple four years to design the iPhone, but Samsung needed just three months to produce devices whose overall look and icon design was, in Apple’s view, “substantially the same” as the handset that had been featured on Time magazine’s cover. The similarities were so great that no “ordinary observer” would notice the difference. Samsung, for its part, claims that “form follows function, “and as technology advanced, its designs simply kept pace. From this perspective, Apple is infringing on Samsung’s patents and, at the same time, attempting to “stifle legitimate competition and limit consumer choice to maintain its historically exorbitant profits,” according to a Reuters report.
Jury working As seven men and two women now attempt to fill in a 700-question jury-verdict form relating to dozens of Samsung products, it’s worth considering the possible consequences of the decisions they will make. In one view, if Apple obtains
Whoever wins, the expensive, loony unreality of software patents will not go away quickly enough. Companies seem to be bent on inventing patents rather than patenting inventions
the injunctions and more than US$2 billion in damages it seeks, competition in the handset market will grind to a halt. Samsung sold about 50 million phones worldwide during the second quarter of 2012, amounting to about a third of the phone market during that quarter, while Apple sold about 26 million, or 17 percent. In the U.S., Apple and Samsung together have 55 percent of the smartphone market. If Samsung has to redesign its devices, no other company will be capable of challenging Apple for the foreseeable future. Motorola Solutions Inc., Nokia Oyj, LG Electronics Inc. and HTC Corp. are all struggling. Another view is that an Apple victory might drive other companies to come up with truly inventive new designs, interfaces and functions. By this thinking, Apple might not actually want an outright
victory; it would only spark stiffer competition. Indeed, the worst outcome of all for consumers might be an Apple victory that leads to a settlement with Samsung: we would be left with nothing but Apple-licensed clones on the market. And Apple itself would always be able to avoid antitrust liability by claiming it still faces energetic competition. Whoever wins, the expensive, loony unreality of software patents will not go away quickly enough. Companies seem to be bent on inventing patents rather than patenting inventions. E v e r y d e v i c e is covered by hundreds of patent claims, and because a patent is primarily a licence to litigate, armies of lawyers and experts tussle over dry technical terms in front of befuddled jurors worldwide. Apple is fighting with Samsung in at least 19 other lawsuits pending on four continents, even though Samsung supplies a substantial part of the technology used in Apple devices. Companies should be competing in the marketplace rather than in courtrooms. This
week, Google Inc.’s general counsel, Kent Walker, called for a cease-fire, urging policy makers to keep “an eye on the growing anti-competitive abuse” of patents.
Peace time Federal District Judge Lucy Koh, who is presiding over the Apple-Samsung proceedings and is herself a former intellectual property lawyer, several times urged the companies’ chief executive officers to settle their disputes before sending the case to the jury, saying, “It’s time for peace.” As the Apple-Samsung jurors were each handed a sheaf of jury instructions, Judge Koh made an awkward joke: “I’m now going to read our 84 jury instructions,” she said, adding that she would ask the jurors to stand up “periodically to make sure we’re alive.” You can be glad for the moment that you’re not one of the jurors filling out that form in San Jose. But all of us need the destructive patent system to be redesigned. Bloomberg View
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business daily August 27, 2012
CLOSING NZ ‘accidental millionaire’ jailed
CCB first-half profit rises 14.5pct
A New Zealand man who fled to China after millions of dollars were accidentally put in his bank account has been jailed for four years and seven months. Hui Gao left for China in 2009 after Westpac Bank mistakenly gave him a NZ$10m (US$7.5 million) overdraft. His former girlfriend, Kara Hurring, received nine months’ home detention. Prosecutors allege the couple left for China and eventually opened an account at Wynn Macau for HK$1.5 million in gambling chips, accommodation and food. They were caught last year after being on the run for more than two years.
China Construction Bank Corp., the country’s second-largest lender by assets, said first-half earnings rose 14.5 percent, its smallest halfyear increase since 2009, as new regulations bit away at its ability to charge freely for services such as financial advice. CCB said yesterday it made a net profit of 106.28 billion yuan (US$16.7 billion) in JanuaryJune, higher than the 92.8 billion yuan it recorded a year ago and better than expectations for a 100.8 billion yuan net profit, according to a Reuters poll of nine analysts. In the second quarter, the bank made a net profit of 54.78 billion yuan.
Apple’s win may lead to ban on some Samsung devices South Korean giant to pay US$1.05 billion; says it will appeal Joel Rosenblatt
Apple and Samsung make the bestselling smartphones in the market
S
amsung Electronics Co. says it will appeal against a United States court ruling that the South Korean giant stole designs from Apple Inc to make smartphones and computer tablets. The jury in San Jose, California ordered Samsung to pay Apple US$1.05 billion in damages. The jury found Samsung infringed six of seven patents for its mobile devices in a verdict that may lead to a ban on U.S. sales of handheld
electronics a judge deems to violate Apple’s rights. Apple won less than half of what it sought in damages in the first lawsuit to go before a U.S. jury in the fight to dominate the global smartphone market, though U.S. District Judge Lucy Koh may later triple the damages against Samsung under federal law. Samsung avoided a finding of damages for antitrust law violations or breach of contract. Ms Koh, who presided over the four-
week trial, scheduled a hearing on September 20 to consider Apple’s request to make permanent a ban on U.S. sales of Samsung devices including its Galaxy Tab 10.1 computer, as well as to extend the ban to other Samsung products. Jurors in federal court in San Jose, California, found after just three days of deliberations that Samsung infringed three software patents related to its tablet computer and two of those related to Samsung’s smartphones. Analysts say the ruling is one of the most significant in a global battle over intellectual property. “This is a huge victory for Apple,” Mark Lemley, a Stanford Law School professor, said in an e-mail. “The verdict is just large enough to be the largest surviving patent verdict in history.” In recent weeks, a court in South Korea ruled that both technology firms had copied each other, while a British court threw out claims by the U.S. company that Samsung had infringed its copyright. “Even more important is the injunction
Judge Koh is likely to issue,” Mr Lemley said. “The real question is whether this is enough to derail the momentum the Android ecosystem has gained in the marketplace.” The nine-member jury rejected Samsung’s patent counterclaims against Apple, the world’s largest company by market capitalisation, and its request for damages. The jury also determined that all of Apple’s patents at stake in the trial were valid. Apple also won findings that Samsung devices diluted the value of its so-called trade dress, or how a product looks. After the verdict was read, Ms Koh reduced the damages award by US$2 million at Samsung’s request because of inconsistencies in the jury’s findings. Samsung said in an e-mailed statement it will ask the judge to overturn the verdict. If Ms Koh doesn’t overturn the award, Samsung said it will appeal the case. The “verdict should not be viewed as a win for Apple, but as a loss for the American consumer,” Samsung said. “It is unfortunate that patent law can be manipulated to give one company a monopoly over rectangles with rounded corners, or technology that is being improved every day by Samsung and other companies.” Samsung said the verdict wasn’t the “final word” in the case or in courts and tribunals around the world. Apple rose as much as 1.8 percent to US$675onFridayafterthecloseofregular trading on the Nasdaq Stock Market. Bloomberg
France piles pressure Italian bank in Iran on Greek PM sanctions probe U
F
rench President Francois Hollande said Greece’s leaders must show their commitment to reform and Europe must decide on how to help the country as soon as possible after it receives a progress report from Athens’ international lenders in October. Greece must also stay in the eurozone, he added after a meeting with Greek Prime Minister Antonis Samaras on Saturday, echoing comments by German Chancellor Angela Merkel, who held similar talks with Samaras
on Friday. But Mr Hollande, who has taken a softer line than Germany on the need for austerity to help the eurozone rein in its deficits, added that Greece, where unemployment has hit a record 23 percent, must not push its people too far. “It [Greece] must demonstrate again the credibility of its programme and the will of its leaders to go through with it to the end, whilst ensuring it’s bearable for the population,” Mr Hollande told reporters. He said that once the “troika” of the European Commission, European Central Bank and International Monetary Fund lenders have handed in their next report on Greece’s fiscal situation, Europe should not hesitate to act. “Once we have this report, once the commitments ... are confirmed, Europe has to do what it has to do,” he said. “That means after the troika report at the European summit in October.” Reuters
nicredit has confirmed it is co-operating with a United States investigation into a possible breach of sanctions. The bank is thought to have broken sanctions against Iran, according to reports by the Financial Times and Reuters, although this has not been confirmed by Unicredit. The probe centres on a German subsidiary, HypoVereinsbank, which the major Italian bank bought in 2005. The news follows similar revelations about two U.K. banks. Unicredit originally admitted in January as part of a regulatory filing that it was working with U.S. authorities over a sanctions breach, but without naming the country involved. “A member of the Unicredit group is currently responding to a third party witness subpoena from the New York County District Attorney’s Office in connection with an ongoing investigation regarding certain
persons and/or entities believed to have engaged in sanctionable activities,” the January filing said. Last month the U.S. Senate released a report detailing how HSBC Holdings Plc helped launder money for Iran, as well as for other U.S.-sanctioned governments of Myanmar and North Korea and for Mexican drugs cartels. Then, earlier this month, Standard Chartered Bank – which is headquartered in London, but mainly active in the Middle East, Africa and Asia – agreed to pay New York regulators US$340 million to settle claims that it had concealed US$250 billion in transactions with Iran. Agencies