Year I Number 224 MOP 6.00 Thursday February 21, 2013 Editor-in-chief Tiago Azevedo Deputy editor-in-chief Vitor Quintã
‘Prosperous, harmonious, unique’: says Beijing’s man Macau is the successful realisation of the ‘one country, two systems’ policy, said China’s top legislator on the first day of his official visit yesterday. It included an inspection of the University of Macau’s nearly completed Hengqin campus. It was the first time 71-year-old Wu Bangguo had ever visited Macau. But he’s been influential in its development in his role as chairman of the National People’s Congress Standing Committee. In that capacity he has been called upon to interpret Macau’s electoral laws. His visit marks the 20th anniversary of the mini-constitution drawn up with Portugal prior to the handover and known as the Basic Law.
www.macaubusinessdaily.com
More on page 3
Tiger doubles down on Singapore flights In a tale of two carriers, low-cost Tiger Airways will introduce in May two more weekly flights to the territory, less than two months after flagship Air Macau again suspended its services to Singapore. ‘Healthy demand’ pushed Tiger Airways to ensure two direct flights every day. A slump in tour groups from the city-state doomed Air Macau’s route, a report says.
Page 2 I SSN 2226-8294
HANG SENG INDEX 23315
23284
23253
23222
Mainland maids fuel minimum wage calls The salary for the first batch of 300 domestic helpers from mainland China may be at least 5,000 patacas, said the pro-establishment Macao Jiangmen Communal Society, twice the informal minimum of 2,500 patacas for foreign non-resident maids. An advocate for non-resident workers and the Macau Overseas Employment Agency Association have called for a mandatory minimum wage for all domestic servants to better protect workers’ rights.
Page 3
23191
Macau firms think small on China investment Despite a December boom in new projects backed by Macau companies in mainland China, the city’s investment across the border plunged by more than a quarter last year. But the interest has not faded, as the number of new projects has grown, hinting at more local small and medium enterprises getting involved in mainland investment. Meanwhile bilateral trade continues to thrive.
Page 2
Law for Taiwan casinos ‘unlikely’ before Q3 Enabling legislation allowing casino resorts on Taiwan’s territory is unlikely to be with parliament before the third quarter of this year says a regional gaming expert with direct knowledge of the situation. Another source – Chen Shyh-kwei, outgoing secretary-general of the Executive Yuan – previously stated the legislation would be passed no earlier than the end of the current session. That will expire in June. Page 4
23160
February 20
HSI - MOVERS Name
%Day
PETROCHINA CO-H
2.87
BANK OF CHINA-H
2.15
BELLE INTERNATIO
2.11
AIA GROUP LTD
2.06
HANG LUNG PROPER
2.01
TINGYI HLDG CO
-0.93
CHINA OVERSEAS
-1.14
NEW WORLD DEV
-1.15
WANT WANT CHINA
-1.51
CHINA RES POWER
-2.04
Source: Bloomberg
Brought to you by
2013-02-21
2013-02-22
2013-02-23
15˚ 20˚
15˚ 22˚
14˚ 22˚
2 |
business daily February 21, 2013
macau Tiger currently flies 12 times a week between Macau and Singapore
Tiger Airways boosts Singapore flights Vítor Quintã
vitorquinta@macaubusinessdaily.com
Notice comes two months after flagship Air Macau dropped route
S
tarting May 1, Tiger Airways Singapore Pte Ltd will increase its flight frequency to Macau, the low-cost carrier confirmed to Business Daily yesterday. Tiger Airways will begin operating 14 round-trip flights weekly between Singapore and Macau, two more than the existing schedule, a spokesperson said. “We have seen a healthy demand for this route and thus, we are adding
more flights,” the spokesperson explained in an e-mail reply. The two extra flights will be added on Tuesdays and Wednesdays, which means Tiger Airways will have two direct flights between the two cities every day. “The frequency increases will provide greater flexibility and convenience to travellers when planning for their leisure or business trips,” the airline said in a statement released on Monday. The extra Macau flights are part of Tiger Airways’ decision to increase its flight frequency to nine cities. The budget carrier is currently the only airline linking the territory with Singapore. Rival low-cost Jetstar Airways Pty Ltd, operated by Australian
giant Qantas, dropped the route about a year ago due to a drop in the number of passengers Flagship Air Macau Co Ltd quietly did the same on December 29, a spokesperson from the Civil Aviation Authority of Macau told Business Daily yesterday. It was the second time that the airline has cancelled passenger services to Singapore Changi Airport. Air Macau first launched flights to the city-state in 2001 but did a quick U-turn just a month later. In September 2010 the carrier began operating two weekly flights to Singapore, but only for cargo. Passenger services resumed two months later. Business Daily asked Air Macau what were the reasons behind the Singapore exit but had received no
reply by the time we went to press. The Civil Aviation Authority spokesperson said the airline gave no reasons for the route suspension. In a report released last month, the Centre for Asia Pacific Aviation said Air Macau’s passenger services to Singapore were a “sustainable” endeavour. But the Australian-based centre stressed the route which Air Macau “had flown once or twice a week, was largely reliant on tour agency group bookings”. The number of visitor arrivals in package tours from Singapore fell by 6.3 percent last year to less than 93,800, according to government data. The carrier “lost” the individual passenger market “years ago when Singaporean-based LCCs [low-cost carriers] entered,” the report added.
Seeking room for growth, SMEs march into mainland Smaller companies are investing smaller amounts, with a one-third fall in the average size of each investment last year Tony Lai
tony.lai@macaubusinessdaily.com
M
acau firms invested more in mainland projects last year compared to 2011 but the amount invested fell by more than one quarter. The Ministry of Commerce approved 303 new projects involving Macau firms last year, a 7.1-percent increase from 2011, the ministry said on Tuesday. The combined value of those projects plunged by 25.7 percent compared to 2011, to US$510 million (4.08 billion patacas). The average value of each project last year was US$1.68 million, a drop of about 30 percent from the 2011 average of US$2.4 million. Mainland investment finished last year with a flurry, despite the slowdown. The ministry approved 26 projects
in December alone, a 30 percent rise from the same time in 2011. The value of those investments reached US$30 million, a 50-percent increase. The trend towards more, smaller investments was best reflected in November, when the ministry approved 47 investments involving Macau companies, the highest monthly figure since the end of 2008. The value of those investments totalled just US$10 million. That was the smallest amount for any month since the ministry started releasing data involving Macau investment in 2007.
Small but beautiful Macau Chamber of Commerce vice-president Vong Kok Seng
told Business Daily last month he welcomed the fact that more small and medium enterprises were investing in the mainland. “It is not at all a bad scenario. It means more Macau SMEs are interested in entering the investment market in China,” he said. A partner at commercial law specialist DSL Lawyers, Mr Carlos Simões, said: “It is preferable to have many smaller companies engaged in small business that has room to grow”. Mr Vong said the trend would continue as the Closer Economic Partnership Arrangement between Macau and the mainland further opens up opportunities in the services market. Since 1990, the ministry has approved 13,142 projects backed by Macau companies, worth
US$10.9 billion. Macau-based investment accounted for 0.86 percent of all foreign direct investment in the mainland during this period. The data also shows an 18.6-percent increase in trade between the two sides last year, to US$2.99 billion. Mainland exports to Macau went up by 14.9 percent to US$2.71 billion. But growth was more pronounced in exports to the mainland, which surged by 72 percent year-on-year but whose value remains much lower, at US$280 million. The city’s exports underwent a welcome recovery last year, growing by 17.1 percent – the biggest increase since the 1999 handover – to 8.16 billion patacas, according to government data.
February 21, 2013 business daily | 3
MACAU
China’s top legislator backs UM campus Macau a successful example of ‘one country, two systems’, says Wu Bangguo Stephanie Lai and Tony Lai
newsdesk@macaubusinessdaily.com
T
he University of Macau’s new campus on Hengqin Island – with construction only a month away from completion – was the first stop in the three-day visit of top Chinese legislator Wu Bangguo. Mr Wu toured the campus yesterday afternoon. Afterwards he praised the project planning as “quite good” and with “its own characteristics”. Last month the civic group Macau Conscience claimed the campus was a copy of China’s Nanjing Audit University, both of which were designed by the Chinese architect He Jingtang. The Hengqin campus, 20-times bigger than the university’s current grounds in Taipa, provided a
comfortable study environment, Mr Wu said. After the Secretary for Transport and Public Works Lau Si Io expressed gratitude to Beijing for leasing a Hengqin plot for the campus, legislator Wu admitted the city still faced problems of land shortage. Mr Lau described the construction progress as “arduous” because they had to hurry to complete the project in three years. Cao Dahua, the chairman of Guangdong-based contractor Nam Yue Group Corp Ltd said 98 percent of the construction works were completed, pledging to wrap up the project by end-March.
The construction quality of the campus was assessed according to Macau’s standards, which are significantly higher than the ones used in the mainland, he stressed. But Mr Cao made no reference to the progress of the seabed tunnel connecting Macau to the island. The tunnel’s construction project suffered a cave-in in July and the accident stalled its works until late 2012. With the campus construction to be finished next month, the university said they would start trial operations in June. The new campus will only be fully operational in the autumn after the university relocates most of its departments from the old site. That is
Wu Bangguo, right, is visiting Macau for the first time
due to happen in July and August. Mr Wu, chairman of National People’s Congress Standing Committee, arrived in Macau yesterday morning.
‘Unique culture’ His delegation also includes the committee’s vice chairman Zhou Tienong and deputy secretary-general Qiao Xiaoyang, as well as the director of the State Council’s Hong Kong and Macau Affairs Office, Wang Guangya. “I would like to experience closely the prosperity of Macau, its harmonious ambience and unique culture,” said Mr Wu in a written note upon his arrival. The official is visiting the city for the first time after being invited by Chief Executive Fernando Chui Sai On for the 20th anniversary of the signing of Macau’s Basic Law. Mr Wu has served as chairman of the National People’s Congress since 2008 but he is expected to step down next month. “Though it is the first time that I am in Macau, I have been always concerned with its development,” said Mr Wu in a speech during a banquet yesterday evening. “The National People’s Congress has always been supporting Macau, and in fact, we have interpreted the electoral laws for the Chief Executive and the Legislative Assembly in our current term,” he mentioned. The top legislator praised Macau as being the successful realisation of ‘one country, two systems’ policy. Mr Wu looked in good spirits during the first day of his visit, but kept little direct contact with the media.
First mainland maids will be paid a premium As many as 300 domestic helpers from the mainland – earning MOP5,000 a month – could arrive before July, says community group Stephanie Lai
sw.lai@macaubusinessdaily.com
T
he monthly salary for domestic helpers from the mainland could be set at about 5,000 patacas (US$626) a month, according to the pro-government Macao Jiangmen Communal Society. At a press conference on Tuesday, society vice-president Chan Pou Sam said a first batch of 300 domestic helpers would arrive this year. He did not cite a source. “Amongst the 300 mainland domestic workers, we’ve heard 200 of them are from Guangdong and the remaining 100 from Fujian province,” Mr Chan told Business Daily. A salary of about 5,000 patacas a month is in line with remarks made by officials from the Guangzhou Home Service Association late last month. An experienced domestic in Guangzhou typically earns about 4,000 yuan (5,118 patacas) a month.
The Macau Human Resources Office is yet to confirm the size of the first group of domestic helpers bound for Macau or details of the hiring process. The workers would be hired as part of a pilot scheme and the government plans to allow “hundreds” of helpers from the mainland in the first half of this year, Secretary for Economy and Finance Francis Tam Pak Yuen told reporters late last month. There is no minimum wage for the city’s 18,085 overseas domestic helpers. Just 13 are from the mainland, Human Resources Office data says.
Standard rates The office will approve the hiring of non-resident domestic helpers if they are paid 2,500 patacas or more a month.
“The general level for domestic helpers’ pay now is around 3,200 patacas but that is not established in current labour policy,” said Cecilia Ho Wing Yin, a lecturer in social work at the Macau Polytechnic Institute. “Hong Kong has set a minimum pay for domestic helpers at HK$4,000 now. Macau’s informal minimum wage has fallen behind Hong Kong, Singapore and Taiwan,” she told Business Daily. The Human Resources Office says it has not yet determined if a minimum wage will be applied to all domestic helpers, irrespective of nationality. Both Ms Ho, who is an advocate for non-resident workers’ unions, and the Macau Overseas Employment Agency Association say a minimum wage is needed to protect workers’ rights. “The minimum wage level should be uniform for all the imported domestic
helpers as it is a matter of ensuring their equal rights,” said Ms Ho. Macau Overseas Employment Agency Association president Ao Ieong Kuong Kao said the impact that higher rates of pay for mainland domestic helpers would have on the market was unclear. “But, generally speaking, 5,000 patacas of monthly pay is still an affordable level as the families in Macau are now wealthier,” said Mr Ao Ieong.
4 |
business daily February 21, 2013
macau PYE changes name to Louis XIII Holdings Paul Y. Engineering Group Ltd will be known as Louis XIII Holdings Ltd following PYE’s acquisition of a company developing a boutique casino resort on the Cotai-Coloane border. The news was in a Hong Kong Stock Exchange filing. The name Paul Y. Engineering (BVI) Ltd will be used for construction and civil engineering contracts. Additionally Francis Goutenmacher – a former top executive of the Cartier and Piaget luxury brands – has been named an independent non-executive director. Iain Ferguson Bruce, also a director of Sands China Ltd, was reappointed as a non-executive director of PYE/Louis XIII Holdings.
Enabling law for Taiwan casinos ‘unlikely’ before Q3 Weidner Resorts ups stakes with cross-border partnership proposal Michael Grimes
Foxconn boss Terry Gou – proposing casino zone for mainland Taiwan
michael.grimes@macaubusinessdaily.com
of Las Vegas Sands Corp., wants to build a multi-billion U.S. dollar project including major infrastructure and a casino resort on Matsu, a chain of islands around 16 kilometres (10 miles) off the coast of the mainland’s Fujian province. A figure of US$2.5 billion (20 billion patacas) has been mentioned in media reports about the cost.
Partnership proposed
Matsu – one of three island chains suggested for Taiwan casino industry
E
nabling legislation to allow casino resorts on Taiwan’s territory is unlikely to be presented to parliament before the third quarter of this year, says a regional gaming expert with direct knowledge of the situation. The person told Business Daily: “It looks as though the Taiwan government is going to use a tender system when it seeks proposals for casino resorts. That still requires a significant amount of consultation on what should be in the tender documents. I think therefore it’s unlikely that the relevant legislation would go before the Executive Yuan until the third quarter.” Chen Shyh-kwei, until this month secretary-general of the Executive Yuan, previously said the legislation will be passed no earlier than the end of the current session. That will expire in June at the latest.
Outlying island groups including Matsu, Penghu and Kinmen (also known as Jinmen) are identified in a 2009 amendment to Taiwan’s Offshore Islands Development Act as being exempted from a national ban on casinos. The local populations must each give approval to casino projects via a referendum in order for applications to proceed. Enabling legislation must tackle how casino developers and operators are selected, and how they are to be monitored and regulated once operations begin. In the interim period a number of well known faces and brands from the international casino industry – and some less well known ones – have been lobbying and discussing proposals both with the government in Taipei and the local governments of the islands. Bill Weidner, a former president
Last month Mr Weidner added a new element when he suggested it might be possible to make the project a direct partnership between the People’s Republic and Taiwan. His idea included a non-gaming resort similar to Hengqin Island’s. It would be located on up to 700 hectares (1,853 acres) of land on the mainland’s Fujian coast. Some tourists would be accommodated there before being transported by ferry to the casino resort at Matsu. The idea of such cross-straits partnership was apparently given a qualified welcome this week by Taiwan’s new Transportation Minister Yeh Kuang-shih, according to a report by Taiwan’s Central News Agency. “Since the proposal involves the two sides, we also have to see what China’s attitude is toward the idea,” Mr Yeh was quoted as saying on the sidelines of a swearing in ceremony for Taiwan’s new cabinet in Taipei. No one from Weidner Resorts was available yesterday to comment on the Central News Agency report. But the company has previously signalled its desire to make its proposal a cooperative venture with the mainland – from where most of its customers would in likelihood be drawn. On December 7, according to a story filed by online gaming news service GamblingCompliance, Weidner Resorts signed memoranda of understanding with Hong Kong-
Foxconn boss urges casino zone for Taiwan’s main island A Las Vegas-style casino entertainment zone should be set up on the main island of Taiwan, suggests one of the country’s leading businessmen, Foxconn boss Terry Gou. Taipei Times yesterday reported that Mr Gou, chairman of Foxconn’s parent Hon Hai Precision Industry Co., spoke of the idea for such a zone – with a location in New Taipei City’s Tamsui District – at a ceremony to mark the re-opening of commerce after the Chinese New Year holiday. Although Taipei Times didn’t quote Taiwan’s Premier Jiang Yihuah verbatim, it reported him saying the country’s cabinet would ‘further deliberate on the possibility’. Foxconn is a major manufacturer for leading digital technology companies including Apple Inc. M.G.
based high-speed ferry operator Chu Kong Passenger Transport (CKS) and the Chinese government-owned China Duty Free Group. Stephen Tight – president of international development for U.S. c a s i n o o p e r a t o r C a e s a r s Entertainment – last month visited Kinmen, another of Taiwan’s outlying island chains, to discuss possible casino investment with Kinmen County Council also according to GamblingCompliance. It was reported elsewhere earlier in January that Howarm Construction – said to be the only Taiwanese company so far to express interest in acquiring a casino licence – also visited Kinmen. Reports said Jack Lam, chairman of Macau junket operator Jimei Group, accompanied the president of Howarm. No one from Jimei was available to comment on the reports yesterday.
February 21, 2013 business daily | 5
MACAU Overseas Land rated top Chinese developer China Overseas Land and Investment Ltd, the mainland’s biggest developer by market value, is also the highest-rated of all Chinese developers covered by Fitch Ratings. The ratings firm assigned the firm a rating of ‘BBB+’ – firmly in the investment grade – with a stable outlook thanks to high profit margins and low funding costs. Overseas Land has built a residential complex, La Cité, in the Areia Preta area and it also owns two NAPE district plots, one of which is earmarked for a four-star hotel.
Wing Hing clinches Chinese lottery extension Pa Ka Pio’s 22-year monopoly extended for another 12 months Vítor Quintã
vitorquinta@macaubusinessdaily.com
S
ociedade de Lotarias Wing Hing Lda got its monopoly right to run a Chinese lottery in Macau extended until the end of the year. There were no others changes to the contract. The one-year extension was published in yesterday’s Official Gazette. The premium that Wing Hing will pay to the government for the one-year extension will once again be 500,000 patacas (US$62,600). Wing Hing has been signing oneyear contracts consecutively since 2010. Its previous one expired at the end of last calendar year. But the company was authorised
to continue operating while the concession renewal was being prepared, the Gaming Inspection and Coordination Bureau told Business Daily last month. “The assessment on the renewal of the concession for Wing Hing has already been completed before the end of 2012,” the regulator wrote in an e-mailed reply. The Chinese lottery concession to Wing Hing, part of gaming tycoon Stanley Ho Hung Sun’s business interests, has remained almost unchanged since 1990. Wing Hing pays the government 23 percent of its revenue, plus five percent to the Macau Foundation.
The yearly revenue of the Chinese lottery, known locally as Pa Ka Pio (sometimes Westernised in lottery outlet signs as ‘Pacapio’), has remained stable at around six million patacas since 2007. The Official Gazette listed SJM Holdings’ directors Angela Leong On Kei and Louis Ng Chi Sing in June 2011 as directors of Wing Hing. The term ‘Pa Ka’ refers to pigeon races originating during the Qing Dynasty when Chinese would bet on one or more of 80 birds each with a numbered ring attached to it. In the modern lottery game players must choose 20 out of 80 drawn numbers to win the top prize.
Winning number – Wing Hing lottery monopoly extended (Photo: Manuel Cardoso)
6 |
business daily February 21, 2013
macau
Developer eyes China Star exit
Corporate
Operator of hotel-casino Lan Kwai Fong set to lose major investor Vítor Quintã
Venetian earns three hotel awards
Leap Forward signs development deal with VML
The Venetian Macao Resort-Hotel bid farewell to the year 2012 with three awards given by Chinese travel magazines, the company announced. The latest was the Top Entertainment Resort Award jointly given by Travel & Leisure magazine, Travel & Leisure GOLF magazine and the Travel & Leisure website at the ceremony of the Travel Awards 2012 last month. In November the Travel + Leisure magazine had already named The Venetian Macao one of China’s Top 100 Hotels in 2012. In addition, the Cotai resort was chosen as Top Travel magazine’s Best Travel Hotel Award in December. “The Venetian Macao was extremely delighted and honoured to have received these three prestigious awards,” said Gunther Hatt, executive vice president of operations at Venetian Macau Ltd. “It’s our mission to provide both business and leisure travellers with the best integrated resort experience… these awards are a confirmation of that success,” he added in a statement.
Nevada-based Leap Forward Gaming Inc. has announced a joint development agreement with Venetian Macau Ltd – subsidiary of Sands China Ltd and operator of The Venetian Macao, Sands Cotai Central, The Plaza Macao and Sands Macao. Leap Forward’s SaffariNet digital technology will be used on VML gaming tables to provide services for casino patrons including player bonus systems and marketing campaigns. Leap Forward’s founder and chief executive Ali Saffari, is a former senior vice president of engineering at International Game Technology, one of the casino industry’s biggest suppliers of slot machines and other gaming equipment. “VML and Leap Forward share a common vision that the table gaming floor of the future will integrate many features that are currently only available in gaming machines,” said Mr Saffari. SaffariNet would “enhance our continued commitment to player entertainment value while enhancing operational efficiencies,” said Tim Merrill, vice president of casino operations at VML.
vitorquinta@macaubusinessdaily.com
China Star Entertainment owns Macau hotel-casino Lan Kwai Fong (Photo: Manuel Cardoso)
E
ternity Investment Ltd, a agent during a 12-month period. Hong Kong-listed real estate “Given that the size of the developer, is interested in disposable China Star shares is selling all of its shares in China enormous and Hong Kong equity Star Entertainment Ltd, the owner market is dynamic, the directors of Macau hotelbelieve” the casino Lan disposal requires Kwai Fong. “a long period of In a filing sent time,” the filing to the Hong Kong adds. Stock Exchange A 12-month on Tuesday, mandate would Eternity said allow Eternity it could sell as “to act promptly much as 3.8 in response billion shares, a to the market stake of almost conditions and Expected proceeds 54.4 percent in provides a China Star. high degree of from sale of China Most of those flexibility,” the Star Entertainment shares would company said. shares come from the But the conversion of developer must bonds and share first get the rights at an initial cost of about shareholders’ approval for both the HK$0.14 (US$0.02), a significant disposal and for the conversion of discount. bonds representing 14.8 percent of China Star shares closed at HK$0.2 China Star’s shares. in Hong Kong trading on Tuesday. A shareholders meeting to vote Thanks to the discount, Eternity on the deal will be scheduled by the expects to earn about HK$815.5 end of May the latest, the filing says. million from the disposal to “finance Eternity expressed confidence in any possible property investment receiving a green light for the deal, project” or other business investments. stressing that “the conversion is fair The shares would be sold both on and reasonable and in the interests the stock exchange and by way of of the company and the shareholders block trades arranged by a placing as a whole”.
HK$815.5 million
February 21, 2013 business daily | 7
MACAU Associations miss Macau Foundation deadline The Macau Foundation has received no reports for 17 percent of all activities and projects the institution subsidised last year, the Portuguese-language newspaper Tribuna de Macau reported yesterday. The associations and residents that received money for about 130 initiatives failed to file reports before the January 31 deadline. The foundation granted subsidies worth 761.4 million patacas (US$95.3 million) to 779 activities and projects last year. The foundation’s guidelines state that any association or residents that fails to deliver a report on a subsidised initiative could have to return the money.
Sa Sa sales soar in Chinese New Year
Mainland tourists account for most of Sa Sa sales in Macau, Hong Kong
Cosmetics turnover beats expectations thanks to growing number of mainland visitors Vítor Quintã
vitorquinta@macaubusinessdaily.com
T
he sales of Sa Sa International Holdings Ltd soared in the first seven days of Chinese New Year, the cosmetics retailer told the Hong Kong Stock Exchange late on Tuesday. The retailer posted a year increase of “approximately 30 percent” in its retail sales in Macau and Hong Kong from February 10 to 16 comparing to the last year’s holiday period. In addition, its same-store sales in the two cities recorded a growth
of “approximately 20 percent” from the previous Chinese New Year, which fell on January 23-29. The results were welcomed by the market, with Sa Sa’s stock rising over 7.9 percent to close at HK$8.18 (US$1.05) in Hong Kong trading yesterday. The market benchmark Hang Seng Index closed up by 0.71 percent. Hong Kong-based Sa Sa does not provide concrete sales results. “Driven by the growing number of mainland [Chinese] tourists,” the
GOT SOMETHING TO SAY? Celebrating the first year of GOLDFISH | creative agency, we are launching "ads of macau" facebook page. A place where you can give your opinion about marketing and advertising campaigns made and placed in Macau. This forum is open to all because, like it or not, ads are part of our daily life, culture and society. After all, ‘there's nothing bad about advertising as long as it's good’. Search for : ads of macau on facebook, and feel free to post as many as you want. Express your opinion!
Block C, Floor 9, Flat H, Edf. Ind. Nam Fong No. 679 Av. do Dr. Francisco Vieira Machado • MACAU T +853 2833 1258 • M +853 6284 5289 info@goldfishmacau.com www.goldfishmacau.com
Golden Week sales “exceeded the group’s expectations,” the filing said. Last month the company said it was “cautiously optimistic” over a gradual recovery of the retail market in the Chinese New Year after a disappointing December, which was supposed to be a strong month due to Christmas holidays. The December performance was “worse than expected,” Sa Sa admitted, as “the customers were more cautious in spending” and “the business for local customers was affected by the increasing number of outbound tourists during the
Christmas holidays”. “Local consumer sentiment improved during the month. As a result, the group’s business in Hong Kong and Macau picked up momentum gradually in February,” the company confirmed on Tuesday. Sa Sa said it is “satisfied with this performance”. The retailer has experienced a similar year-on-year growth – “nearly 30 percent” in sales and “nearly 20 percent” in same-store sales – so far in the first quarter of this year. The retailer had over 101 stores in the two SARs last year.
8 |
business daily February 21, 2013
GREATER CHINA
Foreign investment falls for eig Reflects global firms’ caution, cheaper rivals Aileen Wang and Nick Edwards
Horsemeat scandal fears spread to HK Fears over a Europe-wide food fraud scandal concerning horsemeat sold as beef have spread to Hong Kong after an imported brand of “beef” lasagne was pulled from shelves, officials said yesterday. Hong Kong authorities last week ordered a top local supermarket chain to remove the lasagne made by frozen food giant Findus Group Ltd, one of the firms at the centre of the scandal. The product was imported from Britain and made by French firm Comigel. Western food is popular in the Asian financial centre, which has a large population of expatriates. Hong Kong’s Centre for Food Safety urged locals not to consume the item, which it said “might be adulterated with horsemeat which has not undergone tests for veterinary drugs”. The product had been sold at supermarkets run by ParknShop, one of the biggest supermarket chains in the southern Chinese city and owned by tycoon Li Ka-shing. “The product was removed from our stores last week following the government’s instructions,” a ParknShop spokeswoman told AFP yesterday. The chain has about 280 stores in Hong Kong and Macau. A spokeswoman at the government’s food and environmental hygiene department said authorities would monitor the food fraud scandal closely but only one contaminated product had so far been sold in Hong Kong. Neither the supermarket nor the government could give the number of the Findus frozen beef lasagnes that were recalled in the city. Concerns about horsemeat first emerged in midJanuary when Irish authorities found traces of horse in beefburgers made by firms in Ireland and Britain and sold in supermarket chains including Tesco Plc and Aldi Group.
Taiwan plans troop withdrawal from islets Taiwan plans to withdraw troops from two islets near the Chinese mainland and will turn the former battleground into a tourist attraction as relations improve, officials said yesterday. The two tiny islets, Tatan and Ertan, form part of the Taiwan-controlled Kinmen island group off southeast China’s Xiamen city and are currently manned by around 120 soldiers. Kinmen county magistrate Lee Wuo-shih on Tuesday discussed the plan for the two islands with minister without portfolio Lin Cheng-ze. “The minister has in principle agreed to our plan of troop withdrawal from the two islets... once the plan is completed, it will be another crucial sign of the improving ties between Taiwan and the mainland,” Mr Lee told AFP. The two islets, which together have an area of little more than one square kilometre (0.4 square mile), are about four kilometres (2.5 miles) from Xiamen at the nearest point. While the two islets may soon be emptied of soldiers, there is no indication that Taiwan will terminate its garrison on much-larger Kinmen island any time soon. The exact number of soldiers there is a secret. Mr Lee said he was confident that reminders of a fierce 1950 battle on the two fortified islets would lure visitors from both Taiwan and the Chinese mainland. “Various sites related to the battle remain intact. This is bound to attract a lot of interest from tourists,” he said. Tensions across the Taiwan Strait have eased since China-friendly Ma Ying-jeou became Taiwan’s president in 2008, pledging to strengthen trade links and allow in more mainland tourists. AFP
Rising employee and land costs have diminished attractiveness
C
hina’s foreign direct investment inflows fell at their fastest rate in more than three years in January, highlighting the challenges it faces competing for funds with cheaper rivals in a sluggish global growth environment. China Commerce Ministry data yesterday showed the world’s secondbiggest economy drew in US$9.3 billion of foreign direct investment (FDI) in January, down 7.3 percent on a year ago. FDI fell for an eighth consecutive month. The fall was the steepest in yearto-date inflows since a 9.9 percent drop in November 2009, and it was the worst January performance in four years. Non-financial outbound invest-
ment rose 12.3 percent to US$4.91 billion, the ministry data showed. January FDI was down from December’s US$11.7 billion, with inflows from key Asian economies and the United States down in the latest period, reflecting what analysts say are foreign perceptions of a decline in China’s near term growth prospects. Z h a n g Z h i wei , ch i e f C h i n a economist at Nomura Holdings Inc. in Hong Kong, said the continuing fall in FDI – the longest consecutive run since the global financial crisis – was indicative of the rising competitive challenges facing the world’s biggest manufacturer of exports. “We expect more multinational companies will increase investment in cheaper countries, such as Vietnam
and Indonesia,” Mr Zhang said. FDI is an important gauge of the external economy to which China’s vast factory sector is oriented, though it is a small contributor to China’s overall capital inflows compared with exports, which were worth about US$2 trillion in 2012. The FDI data followed stronger-than-expected trade figures in January, which pointed to a solid recovery in domestic and external demand after China’s economic growth in 2012 eased to a 13-year low – albeit at a 7.8 percent clip that is the envy of the world’s major economies. China attracted a total of US$111.7 billion in FDI in 2012, just shy of 2011’s record US$116 billion
Beijing conde
Ministry says accusations
A
The headquarters of Unit 61398 of the People’s Liberation Army on the outskirts of Shanghai
ccusations by a U.S. computer security company that a secretive Chinese military unit is likely behind a series of hacking attacks are scientifically flawed and hence unreliable, China’s Defence Ministry said yesterday. The statement came after the White House said overnight that the Obama administration has repeatedly taken up its concerns about cyber-theft at the highest levels of the Chinese government, including with Chinese military officials. The security company, Mandiant Corp., identified the People’s Liberation Army’s Shanghai-based Unit 61398 as the most likely driving force behind the hacking. Mandiant said it believed the unit had carried out “sustained” attacks on a wide range of industries. The Chinese Defence Ministry, which has already denied the charges, went further in a new statement,
February 21, 2013 business daily | 9
GREATER CHINA
ght month
FDI will rebound modestly, as global business confidence improves and on delayed impact of the Chinese growth recovery towards the end of 2012,” Dariusz Kowalczyk, senior economist and strategist for non-Japan Asia at Credit Agricole CIB, wrote in a note to clients. Despite the continuing decline in FDI flows, January’s inflow puts China roughly on track to deliver its full year target, assuming the absolute level of investment remains steady through the rest of the year as investors gain confidence in the country’s near term recovery and longer term prospects. Commerce Ministry spokesman, Shen Danyang, told a news conference it was too early to infer anything about the path of FDI in 2013 and the broader implication for the economy. “We can see that the FDI figure in January continued to drop from a year ago, but we cannot judge the full-year FDI trend simply from one single month of data,” Mr Shen said. “As I have said before, the FDI figure is unlikely to see a sharp drop this year, but will remain at a relatively steady level.”
US$9.3 billion
and marking the first annual fall in three years. The Commerce Ministry data showed investment inflows from the European Union rose 81.8 percent in January from year ago to US$820 million, while investment by U.S. firms fell 20.0 percent during the same period to US$270 million. FDI from 10 top Asian economies, including Japan and Singapore, fell 9.0 percent year on year in January, to US$7.8 billion the ministry said.
Inflows to rebound Beijing has said it wants to bring in US$120 billion worth of FDI each year between 2012 and 2015. “We expect that later in the year
China’s foreign direct investment inflows in January
A report earlier yesterday from ratings agency Moody’s said China’s economy was on track to deliver growth of 7.5-8.5 percent in 2013, with relatively easy monetary conditions and targeted fiscal spending likely to sustain the recovery. “The favourable growth outlook is supported by policy easing and credit extension, particularly by the nonbanking sectors, and should continue in 2014,” Moody’s said. Reuters
emns U.S. hacking report
s lack technical proof slamming Mandiant for relying on spurious data. “The report, in only relying on linking IP address to reach a conclusion the hacking attacks originated from China, lacks technical proof,” the ministry said. “Everyone knows that the use of usurped IP addresses to carry out hacking attacks happens on an almost daily basis,” it added. “Second, there is still no internationally clear, unified definition of what consists of a ‘hacking attack’. There is no legal evidence behind the report subjectively inducing that the everyday gathering of online [information] is online spying.” As hacking is a cross-border, anonymous and deceptive phenomenon, by its very nature it is hard to work out exactly where hacks originated, the statement said. Unit 61398 is located in Shanghai’s
Pudong district, China’s financial and banking hub, and is staffed by perhaps thousands of people proficient in English as well as computer programming and network operations, Mandiant said in its report. The unit had stolen “hundreds of terabytes of data from at least 141 organisations across a diverse set of industries beginning as early as 2006”, it said. Most of the victims were located in the United States, with smaller numbers in Canada and Britain. The information stolen ranged from details on mergers and acquisitions to the emails of senior employees, the company said. But the Chinese Defence Ministry said China’s own figures show that a “considerable” number of hacking attacks it is subjected to come from the United States. Reuters
Sina jumps on unexpected profit Fourth quarter sales beat street despite ad market concerns
S
ina Corp., owner of China’s largest Twitter-like service, jumped in post-market New York trading after posting an unexpected profit and forecasting higher sales. Sina posted better-than-expected fourth-quarter revenue and profit amid concerns about the slowing growth of Chinese online advertising. Shares in the company, which runs China’s largest online portal and the “Weibo” microblogging platform, climbed 6 percent to US$56.50 afterhours. They have fallen 13.4 percent since the start of the fourth quarter, underperforming a 2 percent rise in the Nasdaq. The company reported fourthquarter net income of US$2.4 million after the market close. Analysts had expected a US$900,000 loss, based on the average of seven estimates compiled by Bloomberg. China’s online advertising market grew 46.8 percent in 2012, but that was down from 57.6 percent in 2011, according to technology research firm iResearch. The softer advertising market, due to a weaker economic environment, has also hit Sina peers Baidu Inc. and Sohu.com Inc. Analysts say Sina’s new “Weibo” advertising products have drawn muted sales. Sina said it expects first-quarter adjusted net revenue to range between US$115 million and US$119 million, in line with average predictions on Wall Street for about US$117 million. It forecast advertising revenue of US$94
million to US$96 million this quarter. More than 30 percent of advertising revenue on Weibo could come from mobile devices, chairman and chief executive Charles Chao said on a conference call. “Everyone is talking about mobile Internet,” he said. “It’s like an investment bubble in the market.” Advertising revenue came in at US$110.7 million in the fourth quarter, versus a previous company projection for between US$110 million and US$112 million. It posted overall fourth-quarter net revenue of US$139.1 million. Non-advertising revenue decreased 4 percent to US$28.5 million. In the fourth quarter, Sina rolled out two Weibo monetisation products aimed at increasing sales on its highly popular social media website. Reuters/Bloomberg News
Everyone is talking about mobile Internet. It’s like an investment bubble in the market Charles Chao, chief executive, Sina Corp.
HTC bets on ’One’ to break slumping sales Company vows to bring ‘new excitement’ to the smartphone experience
H
TC Corp. released its most important smartphone for the year as investors wait to see if HTC One can revive fortunes at a company that’s seen its market share and revenue more than halve in 18 months. Chief executive Peter Chou took to the stage in London to tout a handset with an aluminium body, a camera that captures three times more light than any other, and new software aimed at differentiating it from competitors including Samsung Electronics Co., Huawei Technologies Co. and ZTE Corp. “We see this as a huge opportunity for us to bring new excitement to the smartphone experience,” Mr Chou said. “We as an industry need a new approach to the smartphone.” HTC’s global smartphone ranking dropped to eighth in the fourth quarter, from fourth six quarters prior, as Asian rivals offer a mix of cheaper and more-advanced devices to consumers from Europe to Asia. With its stock down more than 70 percent since a peak in 2011, success
of HTC One will be key to whether profit can rebound after five quarters of decline. “This is their most important product for the year and will determine whether earnings double or halve in 2013,” said Lu Chia-lin, who rates the stock hold at Daiwa Securities Group in Taipei. “They’re already in a vicious cycle of failed launches leading to lower brand awareness which hurts future releases.” HTC One includes front-facing stereo speakers, a 4.7-inch 1080p full high-definition display and a Qualcomm Inc. Snapdragon 600 1.7 Gigahertz quad-core processor. Models with 4G LTE Internet will be available in some markets, it said. Among the new software is BlinkFeed, an application that updates news, photos and social media in real time on the handset’s home screen. HTC Zoe transforms photos into three- second videos, and HTC Sense TV acts as an interactive program guide and television remote control. Bloomberg News
10 |
business daily February 21, 2013
ASIA Vietnam’s Commercial Bank profit slumps Asia Commercial Bank (ACB), Vietnam’s fifth-biggest partly private lender by assets, said its net profit last year fell 71 percent from 2011 to 928.4 billion dong (US$44.5 million). As of December 31, the total assets of the Ho Chi Minh City-based lender, which was hit late last year by the arrests of several executives, fell 37 percent from 2011 to 177 trillion dong, the bank said in a statement via the stock exchange. The bank, 15 percent owned by Standard Chartered Plc, was rocked by the arrest of cofounder Nguyen Duc Kien and chief executive Ly Xuan Hai.
Japan posts record trade deficit Government data show cracks in export model Kaori Kaneko and Leika Kihara
J
apan’s trade deficit widened to a record in January as energy imports jumped, highlighting a risk of trying to revive the country’s export engine through policies that could weaken the currency without also pursuing broader economic reforms. A central bank board member said the yen’s fall was helping exports – they posted their first annual rise in January in eight months – and said the Bank of Japan would push on with its policy, but analysts expect trade deficits to persist for some time yet. Prime Minister Shinzo Abe has staked his political career on lifting Japan out decades of malaise through aggressive fiscal and monetary policy, but the data indicated a rise in exports on its own was not enough to turn things around. “Trade deficits could continue for much of this year, if not into next year,” said Norio Miyagawa, senior economist at Mizuho Securities Research & Consulting. “This shows that on a net basis money is leaving the country. We need to turn this around by
increasing our earnings power from exports. A weak yen will help, but it won’t solve all our problems.” Since November the yen has tumbled 16 percent versus the dollar to its lowest in nearly three years as expectations have grown about Abe’s promises of radical policy to spark an economy that has contracted for three successive quarters. Economists polled by Reuters have raised their economic growth forecast for the 2013/14 fiscal year to 2.1 percent, expecting the economy to benefit as exports recover due to the weaker yen and improving global demand.
Taking time The trade deficit reached a record 1.6 trillion yen (US$17.1 billion) in January, larger than a median forecast for a 1.38 trillion yen deficit, Finance Ministry data showed. Imports jumped 7.3 percent in January from a year earlier, well above the median estimate for a 1.6 percent annual increase and the biggest rise since May last year.
Japan has been importing more fossil fuels to make up for the closure of almost all of its nuclear power plants after the Fukushima nuclear disaster almost two years ago, and the weaker yen is increasing the cost of those shipments. “A lot of people are pinning their hopes on a weak yen, but exports won’t recover until the spring at the earliest,” said Shuji Tonouchi, senior fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities. “We cannot reject the argument that a weak yen will eventually benefit Japan, but it will take more time.” Japan’s exports rose 6.4 percent in January from a year earlier, more than the median estimate for a 5.6 percent annual increase. Exports to China, a major destination for Japanese shipments, rose 3.0 percent from a year earlier. “Recent exchange-rate moves will likely underpin exports and corporate revenues,” BOJ board member Yoshihisa Morimoto told business leaders in Kochi. “The BOJ will continue to promote powerful monetary easing through steps
KEY POINTS Jan trade deficit a record 1.6 tln yen on rising imports BOJ’s Morimoto confident exports will fuel growth Economists see economic growth at 2.1 pct in 2013/14 PM Abe under pressure to boost economy
including massive government bond purchases.” In January, the BOJ, under pressure from Mr Abe to end two decades of deflation, doubled its inflation target to 2 percent despite some board members doubting the value of the move. Economists don’t see that target
A diversified SM property builder will give Ayala Land a stronger competitor James Lago, head of research, PCCI Securities Corp.
Philippine tycoon Henry Sy
February 21, 2013 business daily | 11
ASIA S.Korea to take action on forex South Korea’s president-elect said yesterday her administration will take pre-emptive and effective steps to ensure stability for the won, citing the yen’s steep fall. “I understand that stability in the foreign exchange rates is very important at the present time,” a spokesman for the transition team quoted Ms Park as saying at a meeting with a trade association. Ms Park made the same point at a separate meeting with top business executives earlier in the day, noting that the rapid depreciation of the yen following Japan’s aggressive monetary easing was putting more pressure on local companies.
Malaysia’s GDP grows 6.4 pct Accelerates to fastest since 2010
M
for control over a property company owned by the Ortigas family in the Philippines. The two groups also fought over the development of a 7.7-hectare (19-acre) state-owned property in Bacolod City in 2011. “A diversified SM property builder will give Ayala Land a stronger competitor,” Mr Lago said. “Sy will have a developer with stable earnings – it will get a steady income stream from the malls’ rental earnings and income from the development and sale of property, which is subject to market cycles.” Sy’s other publicly-listed property ventures also include Belle Corp., which is building a Manila casino in partnership with Macau gaming operator Melco Crown Entertainment Ltd. He also owns privately held SM Land Inc., which developed offices for call centres, the 67- hectare Mall of Asia complex in Manila and a 5,800-hectare tourism resort project in Batangas, a province south of Manila. Mr Sy’s listed property companies are worth a total 501.9 billion pesos (US$12 billion), leapfrogging Ayala Land’s 442.13 billion peso market value, according to data compiled by Bloomberg. Mr Sy, who migrated from China in 1936, is the Philippines’ richest man and ranks 63 worldwide with US$14.3 billion estimated net worth, according to Bloomberg Billionaires Index.
alaysia’s economy grew at the fastest pace in 2 1/2 years last quarter as Prime Minister Najib Razak boosted spending ahead of an election that will test his grip on power. Gross domestic product rose 6.4 percent in the three months through December from a year earlier, after a revised 5.3 percent gain in the previous quarter, the Statistics Department said in a statement in Kuala Lumpur yesterday. That compares with the median estimate of a 5.5 percent advance in a Bloomberg News survey of 21 economists. The economy grew 5.6 percent last year. Asian nations from Indonesia to the Philippines have shown resilience to the faltering global economy as local demand rises. Mr Najib has increased government expenditure ahead of elections that must be held by late June, extending cash handouts to low- income families and raising civil servants’ pensions as part of a 251.6 billion ringgit (US$81 billion) budget for this year. “Domestic demand has been strong” led by investment and consumption, Santitarn Sathirathai, an economist at Credit Suisse Group AG based in Singapore, said before the report. “Malaysia will be among the first central banks in Asia to shift toward a more hawkish bias, perhaps after the general election.” Malaysia’s government forecasts the economy will expand 4.5 percent to 5.5 percent this year. Domestic demand is expected to continue to expand, led by the private sector, the central bank said last month, adding improving global demand will provide additional support this year. Mr Najib, whose ruling coalition won the 2008 vote by its narrowest margin in five decades, must dissolve parliament by April 28 for polls to be held within 60 days. The FTSE Bursa Malaysia KLCI Index has fallen 4.8 percent after hitting a record on January 7 on concern that Mr Najib’s governing National Front alliance may lose seats in parliament. The ringgit has fallen about 1.2 percent this year, among the worst performers within a basket of 11 Asian currencies tracked by Bloomberg. Malaysia’s central bank joined neighbours including Indonesia in maintaining interest rates this year as an accelerating economy and the lowest inflation among Southeast Asian major economies reduced the need for monetary policy action. The Bank of Thailand kept its interest rate unchanged for a third straight meeting yesterday as economic growth quickened.
Bloomberg News
Bloomberg News
Trade deficit hits record as yen inflates imports
being meet anytime soon, with 12 of 20 economists in the Reuters poll saying inflation would not hit 2 percent in the next five years. Mr Abe is set to nominate a new governor and two deputies this month, giving him the chance put in place officials who support his push for an overhaul of how policy is run. Yesterday, the prime minister
said that buying foreign bonds will be unnecessary under a new central bank chief, backing away from a policy proposal that may be seen by other nations as an attempt to weaken the yen. “We decided to consider this in November last year,” Mr Abe said in parliament, referring to a ruling party proposal to set up a fund to
Billionaire Sy’s SM rises on property merger plan Could become the Philippines’ biggest builder in sales and market value Ian Sayson
S
M Investments Corp., Philippine billionaire Henry Sy’s holding company, climbed to a record after it said it may merge its property units, which could unseat Ayala Land Inc. as the nation’s largest developer. SM Investments is studying a proposal to merge units including SM Prime Holdings Inc., vice chairman Teresita Sy-Coson said in response to queries. The plan isn’t “finalised yet in terms of what companies will be included,” she said. Combining Sy’s property units will give the 88-year-old tycoon a builder that’s ahead of Ayala Land in sales and market value, according to data compiled by Bloomberg. A bigger property unit will help Mr Sy compete with Ayala Land, a
developer with investments from offices, malls to apartments. “This move is a tacit admission that Ayala Land’s strategy as diversified developer is better than SM’s approach of fragmented units focusing on specific real estate segments,” James Lago, head of research at PCCI Securities Corp. in Manila. Shares of SM Prime rose 1.1 percent to 19.50 pesos (US$0.49) at the end of trading in Manila, a record. SM Investments climbed 0.7 percent to 1,007 pesos, also its highest close. Highlands Prime Inc., a developer of a mountain resort south of Manila, surged 28 percent while SM Development Corp., a residential builder, jumped 3.9 percent. Ayala Land and Sy’s group clashed
buy foreign bonds. “The need for this will basically disappear once we get the new BOJ governor and deputies in March.” Avoiding foreign bond purchases would limit tension with Group of 20 nations that pledged this week to refrain from targeting exchange rates for competitive purposes. Reuters
12 |
business daily February 21, 2013
MARKETS Hang SENG INDEX NAME AIA GROUP LTD ALUMINUM CORP-H BANK OF CHINA-H
PRICE
DAY %
VOLUME
32.25
2.056962
49012044
3.55
0.2824859
8313227
3.8
2.150538
276447871
BANK OF COMMUN-H
6.21
1.140065
25492986
BANK EAST ASIA
31.3
-0.4769475
1701318
BELLE INTERNATIO
18.36
2.113459
19557000
NAME CHINA UNICOM HON CITIC PACIFIC
COSCO PAC LTD
12.58
0.9630819
4580182
ESPRIT HLDGS
10.04
0.1996008
13544667
30.5
2.006689
5254938
127.3
0.9516257
1671125
WHARF HLDG
HANG LUNG PROPER HANG SENG BK
CHEUNG KONG
122.2
-0.892133
4788324
7.71
-0.8997429
40369835 238093576 35461644
CHINA MERCHANT
28.65
1.776199
3965699
CHINA MOBILE
54.1
0.1851852
2358639
HENGAN INTL
HENDERSON LAND D
80.25
0.3752345
2163420
HONG KG CHINA GS
22.05
1.37931
10289830
HONG KONG EXCHNG
144.9
0.138217
2627648
HSBC HLDGS PLC
86.5
0.0578369
12889136
85.95
0.8802817
16092602
HUTCHISON WHAMPO
86.8
1.22449
5860235
CHINA OVERSEAS
21.7
-1.138952
32791851
IND & COMM BK-H
5.67
1.25
222077800
CHINA PETROLEU-H
8.88
0.4524887
149979810
LI & FUNG LTD
10.56
1.734104
35074300
32.55
1.086957
4748442
25.4
0.1972387
2184925
MTR CORP
CHINA RES LAND
CHINA RES ENTERP
21.45
-0.2325581
7150075
NEW WORLD DEV
13.72
-1.152738
13304378
CHINA RES POWER
21.65
-2.036199
7421000
PETROCHINA CO-H
10.74
2.873563
104192913
CHINA SHENHUA-H
30
0.8403361
16382171
PING AN INSURA-H
66.1
0.608828
9888345
DAY %
VOLUME
71.25
0.564573
2478134
36
-0.6896552
12374047
SANDS CHINA LTD
4151320
9041244
PRICE
POWER ASSETS HOL
52398835
7068781
1.72144
4946367
0.3831418
0
0.2105263
0 0.3748126
0.1369863
6.5
12
NAME
15.72
14.62
23.8
33963600
66.95
26.45
CHINA LIFE INS-H
VOLUME
-0.8726003
CLP HLDGS LTD
BOC HONG KONG HO
CHINA CONST BA-H
DAY %
11.36
CNOOC LTD
CATHAY PAC AIR CHINA COAL ENE-H
PRICE
SINO LAND CO
13.98
-0.1428571
5855091
SUN HUNG KAI PRO
122.4
0.4101723
3421029
SWIRE PACIFIC-A
100.7
0.3988036
757661
TENCENT HOLDINGS
276.6
0.5818182
3568653
TINGYI HLDG CO
21.35
-0.9280742
5362500
WANT WANT CHINA
10.44
-1.509434
18628000
66.2
-0.3762227
3855395
MOVERS
35
13
2 23480
INDEX 23307.41 HIGH
23477.49
LOW
23139.08
52W (H) 23944.74 23130
(L) 18056.4 18-February
20-February
Hang SENG CHINA ENTErPRISE INDEX PRICE
DAY %
VOLUME
CHINA PACIFIC-H
29.5
1.37457
7821506
8895000
CHINA PETROLEU-H
8.88
0.4524887
149979810
0.2824859
8313227
CHINA RAIL CN-H
8.34
1.336574
7818500
29.3
1.208981
11159859
CHINA RAIL GR-H
4.34
1.401869
14706338
3.8
2.150538
276447871
CHINA SHENHUA-H
30
0.8403361
16382171
6.21
1.140065
25492986
CHINA TELECOM-H
4.06
0.2469136
62296038
31
5.802048
4353222
DONGFENG MOTOR-H
11.84
0.8517888
14951505
CHINA CITIC BK-H
5.09
0.7920792
38046600
GUANGZHOU AUTO-H
6.76
0.8955224
8328037
CHINA COAL ENE-H
7.71
-0.8997429
40369835
HUANENG POWER-H
7.93
2.720207
12981300
CHINA COM CONS-H
7.57
1.068091
12000381
IND & COMM BK-H
5.67
1.25
222077800
NAME
PRICE
DAY %
VOLUME
AGRICULTURAL-H
4.19
1.946472
77742461
AIR CHINA LTD-H
6.87
1.178203
ALUMINUM CORP-H
3.55
ANHUI CONCH-H BANK OF CHINA-H BANK OF COMMUN-H BYD CO LTD-H
NAME
CHINA CONST BA-H
6.5
1.72144
238093576
JIANGXI COPPER-H
19.36
0.3108808
10536602
CHINA COSCO HO-H
4.16
1.463415
7998140
PETROCHINA CO-H
10.74
2.873563
104192913
CHINA LIFE INS-H
23.8
0.2105263
35461644
PICC PROPERTY &
11.06
0.7285974
29000445
7.1
2.305476
10670000
PING AN INSURA-H
66.1
0.608828
9888345
17.88
1.245753
11154329
SHANDONG WEIG-H
7.36
0
6844000
CHINA LONGYUAN-H CHINA MERCH BK-H CHINA MINSHENG-H CHINA NATL BDG-H CHINA OILFIELD-H
10.88
2.448211
42101583
SINOPHARM-H
23.85
2.360515
3053492
12
0.6711409
35978159
TSINGTAO BREW-H
47.7
1.381509
1920900
16.78
1.944107
3373878
WEICHAI POWER-H
30.75
1.485149
4512003
NAME
PRICE
DAY %
VOLUME
12.38
0.1618123
21842900
2.73
0.7380074
43215320
ZOOMLION HEAVY-H
10.46
1.750973
5971283
ZTE CORP-H
13.96
4.334828
8020384
YANZHOU COAL-H ZIJIN MINING-H
MOVERS
37
2
1 11860
INDEX 11683.04 HIGH
11856.52
LOW
11522.51
52W (H) 12354.22 11520
(L) 8987.76 18-February
20-February
Shanghai Shenzhen CSI 300 NAME
NAME
PRICE
DAY %
VOLUME
AGRICULTURAL-A
3.05
-0.6514658
182687910
AIR CHINA LTD-A
5.78
-2.693603
28166264
CITIC SECURITI-A
CHONGQING CHAN-A
PRICE
DAY %
VOLUME
PRICE
DAY %
8.84
-0.4504505
41407342
QINGHAI SALT-A
28.48
0.9929078
5053507
14.69
1.170799
119385412
SAIC MOTOR-A
18.05
1.06383
37413868 61439598
NAME
VOLUME
5.18
0.3875969
13009628
CSR CORP LTD -A
5.06
-0.3937008
42466526
SANY HEAVY INDUS
11.8
0.1697793
ANHUI CONCH-A
19.79
0.3549696
30719288
DAQIN RAILWAY -A
7.92
0
170357181
SHANDONG DONG-A
50.99
5.264244
7193919
BANK OF BEIJIN-A
9.63
-1.634321
57921716
DATANG INTL PO-A
4.25
0.7109005
8535810
SHANDONG GOLD-MI
36.47
0.9410462
10285865
EVERBRIG SEC -A
14.73
0.6147541
26783974
SHANG PHARM -A
13.94
6.90184
41477086
2.75
0.7326007
76589079
SHANG PUDONG-A
10.81
-2.612613
264523040
SHANGHAI ELECT-A
ALUMINUM CORP-A
BANK OF CHINA-A
3.04
-0.3278689
52190013
BANK OF COMMUN-A
5.18
-0.7662835
113269060
BANK OF NINGBO-A
11.6
-1.694915
19017068
GEMDALE CORP-A
7.12
2.741703
103745672
4.22
0.2375297
6546782
15.42
-2.095238
64971911
SHANXI LU'AN -A
22.65
2.119026
14638847
GD POWER DEVEL-A
BAOSHAN IRON & S
5.05
0
32678014
GF SECURITIES-A
BBMG CORPORATI-A
8.19
1.111111
17554341
GREE ELECTRIC
28.71
0.6661992
11962742
SHANXI XISHAN-A
13.75
1.326455
17694206
BYD CO LTD -A
26.5
1.338432
4957368
GUANGHUI ENERG-A
17.43
0.3454231
15206103
SHENZEN OVERSE-A
6.73
1.508296
42780261
CHINA CITIC BK-A
4.74
-1.455301
43506408
HAITONG SECURI-A
12.25
0.5747126
126779996
SICHUAN KELUN-A
70.25
6.26229
2250594
CHINA CNR CORP-A
4.98
-0.9940358
45556135
HANGZHOU HIKVI-A
31.82
2.744592
4241287
SUNING APPLIAN-A
7.06
3.671072
78997358 2108906
CHINA COAL ENE-A
7.96
0.1257862
8934697
HENAN SHUAN-A
74.21
2.912217
2646305
TSINGTAO BREW-A
36.3
1.453326
CHINA CONST BA-A
4.81
-0.6198347
52678903
HONG YUAN SEC-A
20.41
0.7901235
10708816
WEICHAI POWER-A
26.26
0.5744925
8903116
CHINA COSCO HO-A
4.28
0
14693610
HUATAI SECURIT-A
11.01
-0.7213706
46238688
WULIANGYE YIBIN
24.77
-0.1612253
29005603
CHINA CSSC HOL-A
23.49
2.800875
10639868
HUAXIA BANK CO
11.15
-1.762115
52840648
YANGQUAN COAL -A
15.27
1.867912
15053476
CHINA EAST AIR-A
3.58
0
19948399
IND & COMM BK-A
4.24
-0.4694836
61248786
YANTAI WANHUA-A
17.16
0.6451613
10113062
CHINA EVERBRIG-A
3.44
-0.8645533
209712797
INDUSTRIAL BAN-A
19.12
-2.249489
110382973
YANZHOU COAL-A
18.44
1.151947
5872176
CHINA INTL MAR-A
14.36
3.086863
11263502
INNER MONG BAO-A
33.3
0.5434783
16365849
YUNNAN BAIYAO-A
79
3.947368
2210811
CHINA LIFE INS-A
19.42
0.6217617
14300732
INNER MONG YIL-A
28.52
4.277879
14397425
ZHONGJIN GOLD
15.92
0.2518892
20298000
CHINA MERCH BK-A
13.84
0.07230658
110823616
INNER MONGOLIA-A
5.17
1.372549
28329717
ZIJIN MINING-A
3.79
0.2645503
47457695
CHINA MERCHANT-A
13.18
0.07593014
34285351
JIANGSU HENGRU-A
34.21
3.666667
11693007
ZOOMLION HEAVY-A
9.66
1.151832
47928223
JIANGSU YANGHE-A
79.63
0.0754053
3250115
10.65
1.428571
12974192
JIANGXI COPPER-A
25.85
2.093207
15311775
12.5
0.7252216
7007139
JIZHONG ENERGY-A
16.05
1.969504
29843461
CHINA MERCHANT-A
26.37
3.330721
21442027
CHINA MINSHENG-A
10.39
-1.42315
351481661
CHINA NATIONAL-A
8.54
3.766707
46298295
CHINA OILFIELD-A
17.89
0.6186727
7177811
CHINA PACIFIC-A
JINDUICHENG -A
20.99
0.430622
15461080
KANGMEI PHARMA-A
17.76
5.651398
34651793
CHINA PETROLEU-A
7.28
1.675978
73830945
KWEICHOW MOUTA-A
177.9
-0.01124101
3658226
CHINA RAILWAY-A
5.9
1.37457
21956856
LUZHOU LAOJIAO-A
30.96
0.6501951
8899899
2.23
0.9049774
34813462
CHINA RAILWAY-A
3.22
1.257862
37097618
METALLURGICAL-A
CHINA SHENHUA-A
24.01
0.3343084
14989654
NINGBO PORT CO-A
2.62
0.3831418
16865739
3.93
0.255102
ZTE CORP-A
MOVERS 244
40
16 2790
INDEX 2702.635
CHINA SHIPBUIL-A
5.27
0.7648184
38710060
PANGANG GROUP -A
55421221
HIGH
2784.06
CHINA SOUTHERN-A
3.99
-0.25
37939762
PETROCHINA CO-A
9.3
0.2155172
21681703
LOW
2670.46
CHINA STATE -A
3.99
0.2512563
118384134
PING AN BANK-A
20.3
-2.450745
65915770
CHINA UNITED-A
3.65
0.5509642
57569747
PING AN INSURA-A
48.78
0
26191653
CHINA VANKE CO-A
11.44
2.142857
84089374
POLY REAL ESTA-A
12.39
1.391162
63512783
CHINA YANGTZE-A
7.57
1.203209
18846177
QINGDAO HAIER-A
13.66
0.5150846
9204907
NAME
PRICE DAY %
Volume
PRICE DAY %
Volume
ACER INC
25.55 -0.3898635
17624250
FORMOSA PLASTIC
78.6 -0.3802281
6768071
TAIWAN MOBILE CO
104
0
ADVANCED SEMICON
25.15
5.672269
53457954
FOXCONN TECHNOLO
85.6
0.1169591
6547156
TPK HOLDING CO L
562
1.444043
5566787
36.3 -0.9549795
6451596
FUBON FINANCIAL
40
0.7556675
26479302
TSMC
109
1.869159
40708556
UNI-PRESIDENT
53.2
52W (H) 2791.303 (L) 2102.135
2665
18-February
20-February
FTSE TAIWAN 50 INDEX
ASIA CEMENT CORP
NAME
ASUSTEK COMPUTER
355.5
0.1408451
2440284
HON HAI PRECISIO
84.8
0.8323424
25091531
AU OPTRONICS COR
12.75 -0.7782101
161399047
HOTAI MOTOR CO
232
0.2159827
352027
277.5
-1.595745
17.6
2.325581
CATCHER TECH
140
3.321033
29128025
HTC CORP
CATHAY FINANCIAL
37.1 -0.2688172
40493870
HUA NAN FINANCIA
3.58209
106195943
LARGAN PRECISION
77 -0.6451613
7714576
LITE-ON TECHNOLO
CHANG HWA BANK CHENG SHIN RUBBE
17.35
CHIMEI INNOLUX C
15.9
-0.625
86372224
CHINA DEVELOPMEN
8.93
0.5630631
109120591
MEGA FINANCIAL H
CHINA STEEL CORP
27.85
0.5415162
17417663
CHINATRUST FINAN
17.85
0.5633803
92.5 20.75
CHUNGHWA TELECOM COMPAL ELECTRON
MEDIATEK INC
828 -0.8383234 43.95
3.411765
PRICE DAY %
Volume 7476681
2.901354
16659250
UNITED MICROELEC
11.25 -0.8810573
43724555
17154078
WISTRON CORP
34.15
-2.428571
8330088
30638917
YUANTA FINANCIAL
16.3
0.9287926
29227270
1559194
YULON MOTOR CO
54.8
1.2939
4768936
8780196
326
0.617284
5699934
25.35
1.4
38858187
NAN YA PLASTICS
60
2.739726
9876287
52241962
PRESIDENT CHAIN
162.5
-1.215805
1681449
0.2166847
12678169
QUANTA COMPUTER
67.2
0.9009009
9203515
1.219512
11279564
SILICONWARE PREC
30.8
1.482702
8317506
DELTA ELECT INC
112.5
2.272727
6063090
SINOPAC FINANCIA
13.7
0.3663004
42989841
FAR EASTERN NEW
34.35
0.5856515
4434994
SYNNEX TECH INTL
61
-1.134522
7439877
FAR EASTONE TELE
69
0.4366812
23684156
TAIWAN CEMENT
38.25
-1.797176
19701162
FIRST FINANCIAL
NAME
19.15
0.7894737
41762290
TAIWAN COOPERATI
17.4
1.754386
26532127
FORMOSA CHEM & F
77.8
0.9079118
6281505
TAIWAN FERTILIZE
74.2
0.405954
4683915
FORMOSA PETROCHE
84.4
0.9569378
7511916
TAIWAN GLASS IND
29 -0.3436426
932561
MOVERS
34
15
1 5645
INDEX 5638.77 HIGH
5638.77
LOW
5564.49
52W (H) 5639.93 5560
(L) 4719.96 18-February
20-February
February 21, 2013 business daily | 13
MARKETS GAMING STOCKS - DAILY PERFORMANCE (Hong Kong Stock Exchange)
Max 33.45
Average 32.656
Min 32.3
33.5
53.80
33.2
52.95
32.9
52.10
32.6
51.25
32.3
Last 32.85
17.1
17.0
Max 53.6
Average 51.120
Min 50.5
50.40
Last 51.3
36.4 36.2
16.9
Max 17.04
Average 16.895
Min 16.82
Last 16.9
16.8
19.4
20.3
19.2
20.2
19.0
20.1
36.0 35.8
Max 36.25
Average 35.956
Min 35.8
35.6
Last 36
Max 19.38
Average 19.15
Commodities PRICE
DAY %
YTD %
(H) 52W
(L) 52W
WTI CRUDE FUTURE Mar13
96.72
0.062073246
4.822802644
108.9899979
80.48000336
BRENT CRUDE FUTR Apr13
117.4
-0.102110279
7.647166697
118.2900009
91
GASOLINE RBOB FUT Mar13
311.74
-0.121748046
12.80214213
316.9100046
222.4999905
GAS OIL FUT (ICE) Apr13
999.25
0.427135678
8.614130435
1010.5
800.25
3.288
0.488997555
-2.288261516
4.049000263
3.052000046
NATURAL GAS FUTR Mar13 HEATING OIL FUTR Mar13 METALS
318.92
0.270389235
5.714667112
331.3199997
254.9000025
Gold Spot $/Oz
1606.02
-0.3895
-3.511
1796.08
1527.21
Silver Spot $/Oz
29.6019
-1.4092
-1.6875
37.4775
26.1513
Platinum Spot $/Oz
1683.7
-0.5611
10.9339
1742.8
1379.05
Palladium Spot $/Oz
765.18
-0.2022
9.3645
777.38
553.75
LME ALUMINUM 3MO ($)
2111
-0.283419934
1.833092137
2361.5
1827.25
LME COPPER 3MO ($)
8050
-0.849858357
1.500441306
8702.75
7219.5
LME ZINC
2155
0
3.605769231
2230
1745
3MO ($)
LME NICKEL 3MO ($) AGRICULTURE ROUGH RICE (CBOT) Mar13 CORN FUTURE
May13
WHEAT FUTURE(CBT) May13
17390
-2.604312518
1.934349355
20519
15236
15.875
-0.282663317
4.612850082
16.84000015
14.89999962
691.75
-0.036127168
-1.213852196
838
520.25
Max 20.25
Average 20.095
Min 20
Last 20.1
COUNTRY MAJOR
ASIA PACIFIC
CROSSES
AUD GBP CHF EUR JPY MOP HKD CNY INR THB SGD TWD PHP IDR AUDJPY EURCHF EURGBP EURCNY EURMOP EURJPY HKDMOP
PRICE
DAY %
1.0353 1.544 0.92 1.3419 93.34 7.987 7.7544 6.2379 54.1087 29.82 1.2354 29.548 40.62 9684 96.642 1.23463 0.8691 8.3697 10.7187 125.26 1.03
0.0677 -0.3228 0.4891 0.6224 0.1821 0.005 0.0039 0.1058 0.1687 0.2012 0.2347 0.22 0.0246 0.2582 0.1055 -0.1369 -0.9378 -0.3632 -0.6223 -0.4471 0
YTD %
(H) 52W
-0.2409 -4.55 -0.5 1.7362 -7.7566 -0.0476 -0.049 -0.117 1.638 2.5486 -1.1332 -1.7429 0.9478 1.1256 -7.5692 -2.199 -6.1765 -1.8185 -1.7567 -9.3326 -0.0097
1.0857 1.6381 0.9972 1.3711 94.46 8.0039 7.7713 6.3964 57.3275 32 1.2971 30.203 43.975 9904 97.439 1.25692 0.87169 8.4957 10.9254 127.71 1.0314
0.9582 1.5269 0.8931 1.2043 77.13 7.9824 7.7498 6.2105 48.8525 29.63 1.2152 28.913 40.54 9020 74.482 1.19995 0.77553 7.7018 9.6245 94.12 1.029
MACAU RELATED STOCKS (H) 52W
(L) 52W
1.846966
22.53968
3.94
2.29
1195203
CROWN LTD
11.66
-2.263202
9.27835
12.12
8.06
2438044
17.67000008
AMAX HOLDINGS LT
0.077
1.315789
10
0.108
0.055
7706000
68.18999481
BOC HONG KONG HO
26.45
0
9.751036
27.1
20.8
9041244
CENTURY LEGEND
0.36
-4
35.84906
0.42
0.215
888000
CHEUK NANG HLDGS
6.69
0
11.68615
6.74
2.8
221673
CHINA OVERSEAS
21.7
-1.138952
-6.060608
25.6
14.124
32791851
CHINESE ESTATES
11.72
3.716814
-3.375416
12.964
7.697
131500
CHOW TAI FOOK JE
11.96
0.6734007
-3.858518
13.68
8.4
1785910
EMPEROR ENTERTAI
2.04
0.4926108
7.936509
2.15
1.1
555000
FUTURE BRIGHT
1.86
0.5405405
52.45901
2.03
0.465
4482000
0.203045685
-6.029831799
938
665
1467
0.669068451
4.841879578
1639.5
1218.75
COFFEE 'C' FUTURE May13
138.5
0.072254335
-5.589638718
219.1999969
137.5999908
SUGAR #11 (WORLD) May13
17.85
-0.61247216
-8.928571429
24.56999969
COTTON NO.2 FUTR May13
84.47
0.404136455
11.349855
94.50999451
World Stock MarketS - Indices
NAME ARISTOCRAT LEISU
PRICE
DAY % YTD %
VOLUME CRNCY
COUNTRY
PRICE
DAY %
YTD %
(H) 52W
(L) 52W
DOW JONES INDUS. AVG
US
14035.67
0.3855738
7.108672
14044.82031
12035.08984
GALAXY ENTERTAIN
32.85
-0.9049774
8.237231
35.7
16.94
14753453
NASDAQ COMPOSITE INDEX
US
3213.595
0.6755889
6.427568
3213.595
2726.68
HANG SENG BK
127.3
0.9516257
7.245159
129
99.2
1671125
FTSE 100 INDEX
GB
6375.28
-0.05941305
8.095713
6385.14
5229.76
HOPEWELL HLDGS
33.95
-0.1470588
2.105263
35.3
19.049
1204747
DAX INDEX
GE
7769.73
0.2228973
2.066891
7871.79
5914.43
HSBC HLDGS PLC
86.5
0.0578369
6.39606
88.45
59.8
12889136
NIKKEI 225
JN
11468.28
0.8436259
10.32306
11510.51953
8238.96
HUTCHISON TELE H
3.59
-0.5540166
0.8426983
3.88
2.98
2732000
HANG SENG INDEX
HK
23307.41
0.7064493
2.871044
23944.74
18056.4
LUK FOOK HLDGS I
26.15
1.160542
7.172133
30.05
14.7
1784609
MELCO INTL DEVEL
12.08
0.6666667
34.07325
13.96
5.12
7732000
CSI 300 INDEX
CH
2702.635
0.6340841
7.121939
2791.303
2102.135
MGM CHINA HOLDIN
16.9
-0.4711425
20.54208
18.86
10.04
8210667
TAIWAN TAIEX INDEX
TA
8029.1
0.8569404
4.280799
8170.72
6857.35
MIDLAND HOLDINGS
3.66
0.2739726
-1.081082
5.217
3.249
2400000
NEPTUNE GROUP
0.155
-6.626506
1.973687
0.226
0.084
118690000
NEW WORLD DEV
KOSPI INDEX
SK
2024.64
1.954347
1.381536
2057.28
1758.99
S&P/ASX 200 INDEX
AU
5098.714
0.3309197
9.674521
5106.6
3985
ID
4634.451
0.7037932
7.361297
4634.451
3635.283
FTSE Bursa Malaysia KLCI
MA
1611.99
-0.1907038
-4.556675
1699.68
NZX ALL INDEX
NZ
912.573
-0.7999504
3.460112
PHILIPPINES ALL SHARE IX
PH
4145.45
0.1004518
12.07009
JAKARTA COMPOSITE INDEX
20.0
(L) 52W
3.86
740.25
SOYBEAN FUTURE May13
NAME
18.8
Last 19.2
CURRENCY EXCHANGE RATES
NAME ENERGY
Min 18.96
13.72
-1.152738
14.14309
15.12
7.95
13304378
SANDS CHINA LTD
36
-0.6896552
6.038289
39.95
20.65
12374047
SHUN HO RESOURCE
1.6
0
14.28572
1.65
1.03
20000
1526.6
SHUN TAK HOLDING
4.3
1.895735
2.625297
4.65
2.56
3551756
924.705
742.274
SJM HOLDINGS LTD
4172.43
3238.77
SMARTONE TELECOM
19.2
-0.621118
6.666667
22.15
12.34
9289904
13.46
-1.319648
-4.403409
17.5
13.16
7593532
WYNN MACAU LTD
20.1
-0.248139
-4.057283
25.5
14.62
5553398
ASIA ENTERTAINME
3.67
-5.897436
19.93464
6.9799
2.4
241452
BALLY TECHNOLOGI
49.59
0.3846154
10.91479
51.16
41.74
391368 31190
HSBC Dragon 300 Index Singapor
SI
639.27
0.34
2.93
NA
NA
STOCK EXCH OF THAI INDEX
TH
1544.32
0.7995718
10.9481
1547.09
1099.15
HO CHI MINH STOCK INDEX
VN
494.83
0.825217
19.60215
497.87
372.39
BOC HONG KONG HO
3.37
-1.749271
9.771989
3.55
2.68
Laos Composite Index
LO
1434.45
0.07115799
18.08408
1455.82
889.39
GALAXY ENTERTAIN
4.3
-5.286344
8.312342
4.57
2.25
11100
16.6
2.028273
17.14891
17.37
10.92
3727075
INTL GAME TECH
Shanghai Shenzhen Composite index is listing the biggest companies by market capitalisation. All data supplied by Bloomberg unless otherwise indicated.
JONES LANG LASAL
99.59
1.168224
18.64427
100
61.39
367981
LAS VEGAS SANDS
51.25
-3.119093
11.02686
58.3216
32.6127
11137679
MELCO CROWN-ADR
19.46
-6.352262
15.55819
21.475
9.13
6756259
MGM CHINA HOLDIN
2.21
-0.4504505
19.45946
2.33
1.36
360
MGM RESORTS INTE
12.74
-1.086957
9.450169
14.85
8.83
20403797
SHFL ENTERTAINME
16.28
1.243781
12.27586
18.77
11.75
286048
SJM HOLDINGS LTD
2.53
-3.065134
9.523812
2.85
1.65
4300
120.39
-2.090111
7.022849
129.6589
84.4902
1901299
WYNN RESORTS LTD
AUD HKD
USD
14 |
business daily February 21, 2013
Opinion
China’s new leader needs grip on wacko next door William Pesek
Bloomberg View columnist
F
ew news items over the past year had more entertainment value than one concerning the Onion and North Korean leader Kim Jong Un. It was funny enough that the faux-news website named the double-chinned Kim the sexiest man of 2012. More entertaining still was that the People’s Daily, the stern mouthpiece of China’s Communist Party, fell for it. Last week, another joke came at China’s expense, one straight from Kim. His nuclear test left his economic benefactors in Beijing flustered and the world wondering if North Korea was taunting China. Kim’s open act of defiance is a challenge for President Barack Obama and his plan to reduce the U.S.’s nuclear arsenal. But the real dupe here may be Xi Jinping, who will become China’s president next month. China has long viewed the Kim Dynasty as a useful hedge against U.S. influence.
Yes, China’s leaders know the Kims are wacky, but they keep the West off balance. China won’t back Korean reunification because it means surrendering a vital bargaining chip and allowing the U.S. to have troops on its border. Xi should end China’s unconditional support for North Korea’s tantrums and the shameful way it treats its 24 million people. China’s claims that it can’t rein in Pyongyang’s officials lack credibility. There is nothing to stop China from cutting Kim’s allowance. You want food and fuel? Then here are a few things you need to do in return for continued Chinese support.
Try modernising First, Xi should demand that North Korea transform its economy and welcome international experts to help it upgrade industries such as agriculture, manufacturing and power. Insist that North Korea accept assistance from
technocrats in China’s Finance Ministry to usher the country into the 20th century, never mind the 21st. China fears a regime collapse that would lead to millions of North Koreans seeking refuge or that would inspire an Arab Spring among its own people. Well, how does allowing North Korea’s economy to atrophy further make that risk less acute? Xi might save China plenty of future problems by encouraging the modernisation of its client state. Second, he should join forces with Park Geun Hye, South Korea’s next president. Park pledged to improve relations with the North in ways only a person of her background can. In 1974, her mother was killed by North Korean agents in an assassination attempt on her father when he led the South. If Park can make nice with the Kim family, Xi could certainly meet her halfway and ensure that officials in Pyongyang are receptive.
Third, Xi must remember that China’s rise comes with commensurate responsibility. So does having a permanent seat on the United Nations Security Council, where China runs interference for its ally. North Korea’s latest nuclear test, its third, demands a robust Chinese response. At the very least, China must back real UN sanctions, not the flaccid ones now in place. Think of the huge geopolitical points China would score by being a good global citizen. As the world’s most populous nation and second-biggest economy, China understandably wants a bigger say in world affairs. The route to more clout at the International Monetary Fund, World Trade Organisation and other institutions runs through North Korea more than China’s leaders realise. China should heed its blogosphere, which is pulsating with debate about the wisdom of supporting North Korea. If folks in the U.S. were annoyed that Kim tested
Xi [Jinping] should end China’s unconditional support for North Korea’s tantrums and the shameful way it treats its 24 million people
a nuke on the same day as Obama’s State of the Union address, imagine how aggrieved mainlanders were that he did so during China’s Lunar New Year. Many consider it an unforgiveable affront.
Bad news The Internet is becoming harder for China to control at a time when anger is rising over income inequality. It would be bad news for Xi if the public and the Communist Party’s leaders lost patience over North Korea’s outbursts while China foots the bill. The last thing Xi wants is to be seen as Kim’s enabler at the expense of China’s global standing. If North Korea squeezed off a missile tomorrow, causing major destruction and loss of life, many would blame China for not doing more. There comes a point where the cons outweigh the pros. China opposed Kim’s nuclear test, and he did it anyway. Xi will grapple with a long list of economic, diplomatic and social challenges while a giant bug buzzes around him. The days of swatting it away are long gone now that North Korea is a nuclear power, willing to blackmail governments with its arms while hiding behind China’s unconditional support. It was impossible to keep a straight face while reading a Xinhua analysis, which argued that the U.S. and its allies forced Kim’s aggression last week by making him feel insecure. I found myself wondering if it were written by the jokesters at the Onion, not China’s official news agency. Obama framed the issue in an intriguing way in his State of the Union speech: “The regime in North Korea must know they will only achieve security and prosperity by meeting their international obligations.” One could easily replace “North Korea” with “China” in that line. Xi, for his part, wants the U.S. and China to forge a “new type of relationship between two great powers,” according to a speech he delivered last February. With North Korea, he has a perfect opportunity to make that more than a punch line. Bloomberg View
editorial council Paulo A. Azevedo, Tiago Azevedo, Duncan Davidson, Emanuel Graça Founder & Publisher Paulo A. Azevedo | pazevedo@macaubusinessdaily.com Editor-in-Chief Tiago Azevedo DEputy Editor-in-Chief Vitor Quintã Associate editor Michael Grimes Newsdesk Alex Lee, Luciana Leitão, Stephanie Lai, Tony Lai Creative Director José Manuel Cardoso Designer Janne Louhikari Contributors Frederico Rato, José I. Duarte, 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.
Business Daily is a product of De Ficção – Multimedia Projects Address Block C, Floor 9, Flat H, Edf. Ind. Nam Fong Av. Dr. Francisco Vieira Machado, No. 679, Macau Tel. (853) 2833 1258 / 2870 5909 Fax (853) 2833 1487 Email newsdesk@macaubusinessdaily.com Advertising advertising@macaubusinessdaily.com Subscriptions sub@macaubusinessdaily.com
February 21, 2013 business daily | 15
OPINION
Rebalancing the wires state’s balance sheet Business
Leading reports from Asia’s best business newspapers
Wall Street Journal Japanese trading houses, long major players in global energy and commodities markets, have recently stepped up acquisitions in the global water business as they seek to tap a growth market with stable cash flow. They are a bit late to the game and prices already are rising. But they are armed with strong balance sheets and technology that could improve service in emerging markets, and they have the support of the Japanese government. “They’re still in a learning phase,” said Yasuhiro Narita, a trading house analyst at Nomura Securities Co. “But if they enter now, they may become major players.”
Jiji Press Prime Minister Shinzo Abe said on Tuesday the Bank of Japan’s monetaryeasingpolicywasaimed at defeating deflation, countering international criticism that Japan was deliberately guiding the yen lower. “We are not manipulating our currency to guide the yen lower. A strong yen accelerates deflation,” Mr Abe was quoted as saying while speaking at a House of Councilors Budget Committee meeting. “Over the last decade or so, monetary conditions in Japan have not sufficiently been loosened.”
Korea Herald South Korea’s president-elect Park Geun-hye on Tuesday named her longtime ally Lee Jung-hyun as senior secretary for political affairs and former diplomat Ju Chul-ki for foreign affairs and national security in the final round of appointments for the new government. The incoming government is expected to suffer an inevitable setback due to the delayed parliamentary negotiation over the government reorganisation plans and the remaining confirmation hearings for all appointed ministers. Prime minister-designate Chung Hong-won was the first in line to undergo the hearing that started yesterday.
Jakarta Post Two hotel operators, Archipelago International and Best Western International, say that this year they plan to open up to 55 new hotels, from budget to luxury class, in cities across Indonesia in a move to hopefully gain from the robust economy. Archipelago International, previously known as Aston International, plans to launch 40 new hotels, almost half of which will bear the Favehotel brand, the firm’s two-star accommodation. Best Western International is set to expand its portfolio in Indonesia by running up to 15 hotels this year, increasing the total number of rooms from the current 893 to 2,628 by the end of 2013, the company said.
Michael Spence
Nobel laureate in economics, is Professor of Economics at New York University’s Stern School of Business
U
ntil recently, relatively little attention was paid to states’ balance sheets. Measurement and reporting were neglected. Even today, states’ liabilities receive considerable attention, while their asset sides receive significantly less. In an earlier era, states owned substantial industrial assets. This “commanding heights of the economy” model was rejected largely because it seriously under-performed, especially when state-owned sectors were protected from competition (as was the norm). Efficiency declined. But, more important, the absence of entry and exit by firms, a key ingredient of innovation, caused dynamism to suffer and losses to grow over time. The model’s shortcomings led to privatisation in many developed and developing countries. In Europe, privatisation was viewed as a key step in the integration process. The theory, in Europe and elsewhere, was that states could not be impartial owners of industrial assets. Through regulation, public procurement, and hidden subsidies, they would favour their own assets. Of course, state ownership is not the only way to impede efficiency and dynamism. Regulations in a range of countries, from Japan to Italy, create sectors that are sheltered from competition, with detrimental effects on productivity. This pattern is particularly pronounced in the non-tradable sectors (which account for two-thirds of the economy), where the discipline of foreign competition is absent by definition. Even here, foreign-based domestic competitors could improve performance. It is important that more attention is now paid to public liabilities – not only growing sovereign debt, but also larger, non-debt liabilities embedded in social-insurance programmes. A combination of defective growth models, rising longevity, and unanticipated increases in costs (such as health care in America) have caused these longer-term liabilities to explode.
Shifting patterns Reining in debt and other liabilities has substantially reduced governments’ scope for sustaining demand in the face of severe negative shocks, thus reducing their ability to buy time for structural adjustment in the private sector. For now, investment in a shift to a sustainable growth and employment pattern has been crowded out. Shifting consumption to investment via tax increases is possible, but too problematic politically,
with the burden-sharing issue usually leading to impasse and inaction. Meanwhile, the asset side of states’ balance sheets remains largely invisible. States own land, mineral rights, and infrastructure. Some have sovereign wealth funds. Many have public pension funds of substantial magnitude, consisting of diversified portfolios of assets. These assets are, in a sense, spoken for – there are claims on them in the form of liabilities, which have grown as expected risk-adjusted returns on assets decline; but they do represent a partial funding of public liabilities and are an element of resilience. By contrast, in China, the asset side of the state balance sheet is very large: land, foreign-currency reserves of US$3.5 trillion, and around an 85 percent stake in stateowned enterprises that account for about 40 percent of output. This balance-sheet configuration has helped China to respond to shocks and sustain high levels of public-sector investment.
China’s balance-sheet configuration has helped the country to respond to shocks and sustain high levels of public-sector investment
The liability side will expand as social insurance grows – but slowly, owing to a fear of underestimating the liabilities being created. In the best case – without a sharp decline in financial assets accelerating an economic downturn, a sudden collapse of a defective growth model, or even rapid increases in liabilities associated with demographic shifts or healthcare technology – it might make sense to focus only on controlling liabilities. But a best-case scenario provides a poor policy framework in our imperfect world.
Public assets In fact, states are routinely called upon to deal with a wide range of market failures or limitations: unsustainable growth patterns and regulatory myopia; distributional problems associated with the evolution of technology and globalisation; accelerating concentration of national income; and major structural transitions associated with shocks and secular trends in technology and the global economy. Here is the dilemma: Governments with substantial
assets have flexibility and the capacity to act, but they can also mismanage their assets to the detriment of markets and economic dynamism. In China, where the asset side of the balance sheet is large, the strategy of shrinking it via privatisation has been largely rejected, at least for now. The loss of resilience would be too great. That leads to the challenge of effective management of public assets – management that promotes rather than impedes market efficiency and innovation. Here, what might be called the pension/sovereign-wealthfund model – in which a public entity holds and manages a diversified portfolio of assets as a financial investor with appropriately specified duties and governance – seems to be the right way to go. The asset side of the balance sheet is maintained in the aggregate, but the management of the assets, particularly the diversification of holdings, can be thought of as prudent and de facto privatised. For developed countries, increasing resilience and flexibility over time by building public assets should be a longterm priority. Periodic systemic risk affects entire economies and public finances, not only financial markets, and governments should be able to respond during periods of rapid structural change. In practice, this means two things. First, once a collective choice is made about the desired levels of social insurance, the implied liabilities should be fully funded over time. The alternative is a poor intergenerational burdensharing choice. Second, governments, like individuals, households, and businesses, need to save for a rainy day. That is all the more important in periods – like the current one – of rapid change, high volatility, and only partly predictable systemic instability. © Project Syndicate
16 |
business daily February 21, 2013
CLOSING Zhou to remain PBOC chief
Greece hit by fresh strike chaos
China will probably retain Zhou Xiaochuan next month as central bank governor even after he reached retirement age and was removed from the ruling Communist Party’s Central Committee, sources told Reuters. Mr Zhou, who turned 65 last month, is likely to become a vice chairman of parliament’s top advisory body, giving him a rank that would exempt him from mandatory retirement, two people with ties to party leadership said. Xiao Gang, chairman of Bank of China Ltd, will be appointed party secretary of the People’s Bank of China, setting him up to succeed Mr Zhou eventually, according to the sources.
Greece was hit by the first general strike of 2013 as workers renew their protest over austerity measures. The 24-hour strike forced the closure of schools and state-run offices and left hospitals working with emergency staff. The strike has been called by Greece’s two biggest labour unions, representing half the four million-strong workforce. The debt-ridden country is being kept afloat by billions of euros from other euro zone countries and the International Monetary Fund. In return, the government has imposed waves of unpopular spending cuts and tax rises, hitting pay and pensions and sending unemployment soaring to more than 26 percent.
China vows to extend AirAsia, Tata plan property tax to new cities Indian budget carrier In the latest effort to calm frothy real estate markets
C
hina’s cabinet yesterday restated its intention to extend a pilot property tax programme to more cities and urged local authorities again to put price control targets on new homes. The policy pledges – made in a meeting of the State Council chaired by departing Premier, Wen Jiabao – broadly restated measures China has rolled out in the past three years of steady campaigning to rein in excessive home price rises. A statement of the meeting published on the government’s website said property prices are stabilising and came as markets anticipated a raft of new measures to temper stubbornly high house prices. It did not detail when and how the pilot property tax programme – currently operating only in Shanghai and Chongqing at rates of between 0.5 percent and 1.2 percent – would be expanded.
Buoyant prices in some cities are mostly due to China’s urbanisation and shortages in home supply will likely persist in these places in the near term, the government said. “In recent years, all localities and departments have carefully implemented the government’s policies to control the property market,” the statement said. “[They] have achieved positive results by effectively curbing the speculative purchase of homes and gradually stabilising the real estate market.” The statement, which listed five areas where the government can control the housing market, mentioned an expansion of property taxes in passing. Some investors are expecting Beijing to announce new measures to temper stubbornly high house prices that have largely defied the government’s cooling efforts so far. Average home prices in
China’s 100 biggest cities rose 1 percent in January from a month earlier, a private survey showed, quickening from December’s 0.2 percent rise in the eighth consecutive month of gains. China is due to release official January home price data tomorrow. China’s attempt to control home prices is in its third year, although efforts were partly undone last year by the central bank’s monetary policy easing and two interest rate cuts to boost a slowing economy. Rising house prices anger ordinary Chinese unable to afford homes and threaten social stability. But falling home prices also unnerve investors who worry a property slump could hobble the world’s No 2 economy. Premier Wen has pledged to restrain home costs, but average prices still rocketed 10 times in the country’s biggest cities in the 10 years of his Premiership. Reuters
Average home prices rose 1 percent in January – survey
Companies looking for approval from the government
AirAsia has set up ventures in the Philippines, Japan, Thailand and Indonesia
A
irAsia Bhd., Southeast Asia’s biggest budget airline, plans to start a venture in India with the Tata Group after the government eased rules to lure investment in a country where air travel is set to triple. AirAsia made an application to India’s Foreign Investment Promotion Board to take 49 percent in a venture with Tata Sons Ltd, owners of Jaguar Land Rover luxury vehicles, and Arun Bhatia of Telestra Tradeplace Pvt. Subject to an approval, the partners will then seek an air operators permit, the low-fare carrier said in a statement to the Kuala Lumpur stock exchange yesterday. The move will help AirAsia get an entry into a nation where economic growth is encouraging more people to ditch trains for planes, helping triple the number of domestic air travellers to 159 million annually by 2021, according to government estimates. To help an industry mired in debt and losses, Prime Minister Manmohan Singh’s government in September eased foreign investment rules prompting Jet Airways (India) Ltd to start discussions with the Middle East’s Etihad Airways. “It’s a very, very competitive joint venture,”
said Kapil Kaul, who heads the Indian unit of CAPA. “The coming together of the largest pan-Asian carrier with India’s biggest corporate group. This is very ideal.” Tata Sons, the holding company of the US$100 billion Mumbai- based conglomerate, will hold 30 percent of the venture, Debasis Ray, a group spokesman, said in an e-mail. The group, which has interests in steel, hotels, software, beverages and automotive business, won’t have any operating role in the venture, it said. Arun Mishra, India’s Director General of Civil Aviation, said the venture hasn’t yet approached the regulator. The new airline plans to operate from Chennai in South India and will provide services to other local cities, AirAsia said in the statement. A carrier must complete five years of domestic operations before it can start overseas flights, according to Indian aviation rules. “We have carefully evaluated developments in India over the last few years and strongly believe that the current environment is perfect to introduce AirAsia’s low fares,” Air Asia Group chief executive officer Tony Fernandes said in the statement. Bloomberg News