Macau Business Daily, July 20th

Safety glitch for North West One of North West Express’s two ferries has failed a safety test – even after the company was given extra time to prepare for it, said the Maritime Administration.

A new trial is yet to be scheduled. The operator also owes rent to Hong Kong’s Tuen Mun pier.

Page 3

Bar bars’ black sheep – legislator

Mortgage firms await HK rate review R

egulatory probes triggered by the United Kingdom’s bank loan rate fixing scandal could have a knock on effect on the Hong Kong Interbank Offered Rate (Hibor) and thus on the local property market, the Monetary Authority of Macau said.

In April Macau banks had 79.23 billion patacas (US$9.9 billion) invested in residential mortgage loans, with a big slice of them denominated in Hong Kong dollars and linked to Hibor.

“Some banks in Macau are using Hibor as a base for setting their lending rates,” the city’s de facto central bank confirmed.

The Hong Kong Association of Banks has launched a review of how Hibor is compiled, with the support of the Hong Kong Monetary Authority. Any changes to Hibor, used as a reference for pricing mortgages, could have a profound impact on Macau residential mortgages, Banco Espírito Santo do Oriente SA chief executive José Morgado told Business Daily.

The Macau regulator says it is keeping an eye on “relevant developments overseas and in neighbouring jurisdictions with a focus on whether we can refine the Maibor [Macau interbank offered rate] setting or the operation of the local money market”.

But the authority emphasised that “the market has been operating smoothly” and that it has never fined nor warned any Macau banks over alleged fixing of Maibor.

+853 2833 1258 info@goldfishmacau.com www.goldfishmacau.com

we live inside ideas.

I SSN 2226-8294

HANG SENG INDEX 19590

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A draft law aimed at banning youngsters under 16 from bars was up for public consultation last summer, but has since stalled. Legislator Au Kam San urged the government to close the loophole but the industry says underage drinking is not widespread.

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July 19

Banking test lab in Hengqin

Assembly plans PINCH democrats New Legislative Assembly rules being discussed today could effectively stop legislators from proposing hearings on specific issues, by requiring the initial backing of five members of the assembly.

All motions to hold hearings have been rejected and pan-democrats warn debates could become meaningless.

Page 6 www.macaubusinessdaily.com

A range of new financial policies will be tested soon in neighbouring Hengqin Island on the mainland.

China’s central government is said to be keen on turning the area – which will also host a new campus for the University of Macau – into a regional financial centre.

A recent forum in Zhuhai revealed a pilot programme will enable the establishment of equity investment funds with minimum registered capital of 50 million yuan (US$7.8 million).

Experts added Hengqin has the opportunity to become an offshore banking centre like the Cayman

Islands in the Caribbean; but only if it manages to attract more qualified professionals, especially in the field of law and legal services.

Cooperation with Hong Kong could also help to build an Asian wealth management centre and attract international capital to China, said speakers at the forum.

The event heard calls for the creation of credit rating companies to evaluate small financing companies. The latter are expected to boom in mainland China this year.

Page 5

HSI - Movers Name

%Day

WANT WANT CHINA

6.30

CHINA UNICOM HON

5.36

SINO LAND CO

4.56

CHINA COAL ENE-H

4.24

CHINA RES POWER

3.49

AIA GROUP LTD

0.18

CHINA RES LAND

-0.13

WHARF HLDG

-0.46

CHINA OVERSEAS

-1.35

ESPRIT HLDGS

-1.94

Source: Bloomberg

2012-7-20

2012-7-21

2012-7-22

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Year I - Number 80 Friday July 20, 2012 Editor-in-chief: Tiago Azevedo Deputy editor-in-chief: José I. Duarte MOP 6.00

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business daily July 20, 2012

macau

Credit collection longer, but Macau VIPs still good for it Economy, not China politics, driving high roller caution – Linda Chen Associate Editor

L

inda Chen, chief operating officer of Wynn Macau, said there was no evidence of any political element in the slowdown of the company’s VIP revenue, but said repayment of credit issued by junkets to Chinese high rollers was taking a little longer.

“I don’t see any change in terms of creditworthiness, but collection, I have to say; it’s a bit slower than before,” she told analysts during Wynn Resorts’ second quarter earnings conference call on Wednesday Macau time, adding, “.. that could also be caused by…a slowdown in [the] economy. And, the other part is we are more cautious and definitely more conservative on issuing credit on the direct programme [casino-issued player credit] side.”

Her boss, company chairman Steve Wynn added the company had been slightly over cautious in the first half of the year with credit but had loosened that policy slightly. “…at the end of 2011 on a gross basis, our bad debt reserve was 42 percent of our accounts receivable,” stated Mr Wynn. “At the end of June, after this adjustment, our bad debt reserve was 44 percent of our accounts receivable. So even after we made this adjustment, our reserve is still higher relative to our receivables than it was at the end of 2011.”

Mr Wynn continued: “We always thought that in China that after 150 days, [if] we didn’t get the money, it might be gone. It turns up it shows up anyway, much more of it shows up than we thought later.

So they [VIPs] slowed down, but

High fives – Linda Chen of Wynn Macau – players still good for credit

they didn’t get bad.”

Bill Lerner of Union Gaming Group in Las Vegas said in a note after the call: “Essentially, the company extended the timeline to collect bad debts, noting players have been

settling later, but paying nonetheless.

Note, Wynn has historically maintained a conservative and prudent collections policy, and we don’t think extending the collection window changes that.”

November start for Lot 3: LVS chairman ‘US$3 billion’ Cotai scheme will take three years: analysts government said it was imposing a 900,000 patacas (US$112,600) fine on LVS subsidiary Venetian Cotai Ltd for being unable to complete Lot 3 – also known as Parcel 3 or Cotai Plot 3 – by a previously

business as usual

Burn those bridges – now Paulo A. Azevedo pazevedo@macaubusiness.com

S

ome businessmen here continue to portray themselves – to investors that lack knowledge or patience – as the best bridges to a good deal – a China deal.

A misconception about the best kind of business partnerships has been current for a long time.

The misconception is based on belief in the value of political influence.

The belief is that illicit practices and under-the-table deals pay dividends.

We must fight such practices vigorously if we wish to avoid bitter consequences.

In doing so we must call attention to the Liaison Office of the Central People’s Government and the Ministry of Foreign Affairs.

If Beijing allows vampires to try and suck blood simply on the strength of their relationships with certain officials, the matter should be investigated. But if this bloodsucking continues to avoid the lazy scrutiny of whoever is responsible for preventing it, Macau’s international image will be damaged beyond repair.

Macau carries greater weight on the international stage than, for instance, Chongqing – a result of its culture, its European legacy, the amount of foreign investment here and the perception that it is as a conduit between two worlds.

The Macau government and Beijing must shoulder their respective responsibilities and burn down any bridges to the mainland that are built on illicit foundations. The sooner, the better.

agreed deadline of April 17, 2013.

On Monday it was announced the government was giving LVS an extension on the completion deadline to April 17, 2016.

Mr Adelson indicated the plans for Lot 3 – immediately to the south of LVS’s existing Four Seasons Hotel Macao and Plaza Casino Macao properties on the western side of the Cotai Strip – would be family focused.

“We have already undertaken extensive design work on the project and plan to start construction

by November,” said Mr Adelson, adding, “This property in particular will further enhance our growing MICE [meetings, incentive, conventions, exhibitions] business and will also feature a variety of amenities designed to encourage more families to visit Macau.”

Analysts expect Lot 3 to be a US$2 billion to US$3 billion project and to take three years to build. They add that although cash flow from LVS’s existing Macau operations means the company will have no problem funding Lot 3, the main challenge is time, given the current construction labour shortages in Macau. Even with a near four-year timetable extension, they say, LVS will need to start construction soon in order to meet the new deadline.

The LVS statement added that all the company’s properties on the Cotai Strip, including The Venetian Macao and Sands Cotai Central, which had its first phase opening on April 11, will be connected through a series of indoor and covered outdoor walkways and “moving sidewalks”.

A.E.

Photo By Manuel Cardoso

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as Vegas Sands Corp. plans to start work on Cotai Lot 3 “by November” the company chairman Sheldon Adelson said in a prepared statement. The news came only hours after the Macau

July 20, 2012 business daily | 3

MACAU

Hibor review tremors may jolt homebuyers Macau mortgages may be affected by a review of Hong Kong’s interest rate benchmark Vítor Quintã

vitorquinta@macaubusinessdaily.com

rates at which banks say they are prepared to lend to each other.

The Hong Kong Association of Banks works out the Hibor daily from rates offered by 20 banks, stripping out the three highest and three lowest rates.

But since Hong Kong’s deposit-rich banks rarely need to raise funds through short-term interbank lending, the rate is used mainly as a reference for setting the interest rates on mortgages and other loans.

Confident

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not observed any anomaly in its operation,” the spokesperson said.

The review comes as central banks around the world scrutinise how the London interbank offered rate, or Libor, is set and governed after a conspiracy to rig it involving Barclays Bank Plc was uncovered.

Bankers manipulated Libor during the financial crisis between 2007 and 2009, conspiring to lower it to profit on trades and hide their own borrowing costs.

Dozens of banks, including JPMorgan Chase & Co and Deutsche Bank AG, are under investigation.

Hibor is the Hong Kong equivalent of Libor. It is an average of the

Photo By Manuel Cardoso

he Hong Kong Association of Banks has begun a review of the way the benchmark Hong Kong interbank offered rate, Hibor, is set and governed, and it may have an effect on the interest paid on residential mortgages in Macau, a bank executive has warned.

The review was announced yesterday by a spokesperson for the Hong Kong Monetary Authority.

The authority, which acts like a central bank, said it supported the review and would monitor the process and outcome. “Hong Kong dollar Hibor fixing has been in place for over 20 years. We have

With the pataca pegged to the Hong Kong dollar, interest rates in Macau financial instruments “should move close to their HKD-denominated counterparts,” the Macau Monetary Authority told Business Daily.

“Some banks in Macau are using Hibor as a base for setting their lending rates,” the regulator admitted.

The chief executive of Banco Espírito Santo do Oriente SA (BES Oriente), José Morgado, told Business Daily that any changes in how Hibor is set or governed might affect interest rates on residential mortgages in Macau.

“All financial contracts that are denominated in Hong Kong dollars are invariably linked to Hibor and there are many of those here in

Most residential mortgages here are denominated in Hong Kong dollars and the interest rates are linked to Hibor

All financial contracts that are denominated in Hong Kong dollars are invariably linked to Hibor and there are many of those here in Macau José Morgado, BES Oriente chief executive

Macau,” Mr Morgado said. He said that this is the case with residential mortgages, as “most home sales are carried out in Hong Kong dollars”.

Data from the Monetary Authority of Macau show that in April, banks had a combined 79.23 billion patacas (US$9.9 billion) worth of outstanding residential mortgages in their loan portfolios.

The regulator promised to “closely monitor any developments”.

Mr Morgado said that if the authority concluded that any changes might “introduce negative distortions to the Macau market, it should intervene, either preemptively or by setting new rules”.

Central bankers and regulators will hold talks in September on whether Libor can be reformed or should be scrapped.

And the Macau regulator is also keeping an eye on “relevant developments overseas and in neighbouring jurisdictions with a focus on whether we can refine the Maibor [Macau interbank offered rate] setting or the operation of the local money market”.

However, the authority emphasised that “the market has been operating smoothly”.

Mr Morgado is confident there have been no irregularities in setting the Maibor, which is compiled by calculating the average rates quoted by five major Macau banks and is used as a reference “to manage their pataca liquidity positions”.

“I have no knowledge that such issues have happened here,” he said.

The regulator stressed that it has never fined nor warned any Macau banks over alleged fixing of the Maibor. with Reuters

North West ferry fails safety trial

A

repaired ferry belonging to North West Express Ltd failed a safety inspection, the Macau Maritime Administration confirmed yesterday.

“After the inspection yesterday [Wednesday] afternoon, the North West vessel has still not reached normal operational standards and requires further calibration,” a spokesperson told Business Daily.

Neither the date for another seaworthiness trial nor to resume the Tuen Mun-Macau service has been decided.

North West was not available for comment yesterday.

The company suspended services on July 1 because of unspecified technical

problems with its two vessels.

An inspection planned for July 16 was postponed after the operator admitted there were still problems with the ferry.

The unpaid rent at the company’s Hong Kong pier also casts doubt on the likelihood of the company setting sail again.

The maritime administration said the company was two months late with the rent. North West pays HK$2.32 million (US$300,000) a month for its Hong Kong pier.

A Hong Kong court ordered North West to pay its rent for May and last month within 14 days from last Tuesday.

T.L.

There is no date for ferry operator North West Express Ltd’s return to sailing the Tuen Mun-Macau route

4 |

business daily July 20, 2012

macau Photo by Manuel Cardoso

Brought to you by

HOSPITALITY Stay the night If the four biggest source markets are omitted from an analysis of overnight stays in Macau’s hotels, there is not much left – comparatively speaking. The mainland, Hong Kong, Macau and Taiwan are the leading sources of hotel guests, but what about the less sizeable markets?

The government’s statistics identify a dozen other countries, aside from the “others” classification. The 12 countries together accounted for more than half a million hotel guests in the period from January to May, or about 13.6 percent of the total number of guests.

Bars still waiting for ban on minors The government must introduce a minimum age for entry to bars to stop underage drinking, says Au Kam San; a proposal has been on hold for a year Tony Lai

tony.lai@macaubusinessdaily.com

L

The biggest contributor among our dozen, smaller contributors to hotel stays is Japan with about 100,000 guests.

South Korea is the next most important with about 73,000 guests. Hotel stays from these two countries have increased dramatically compared to last year, by 22.6 percent and 22.9 percent, respectively. That is a rate of growth bettered only by Australian visitors which grew at about 27 percent and contributed about 12,000 hotel guests.

The picture among Southeast Asian guests is mixed.

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Guests from our dozen source countries prefer to stay in five-star hotels. Both this year and last, five-star stays attracted more than 50 percent of tourists from these countries. Adding in four-star hotels increases the share to more than 80 percent. The number of nights spent at Macau’s guesthouse from these tourists has been omitted from our analysis since the numbers are small enough, just over 2,000, to be practically invisible.

J.I.D.

egislator Au Kam San has Association president Wu Kin Wai told urged authorities to review Business Daily that underage drinking laws that allow minors access was “definitely not wide-spread”. to bars and karaoke lounges, a change “They don’t go to bars as the alcohol sold the industry says has been in the pipe- there is much more expensive than the line since last year. one [sold] in supermarkets or stores,” he Mr Au said existing legislation does said. Bars typically refuse to serve people not ban minors from entering bars, an who look underage, he said. oversight that could provide easier access to alcohol given there are no age Not ready restrictions on buying alcoholic drinks.

“There are loopholes in the current laws The Macau Government Tourist Ofthat allow bars to openly cater to youth fice tackled the legal loophole last and children and sell alcoholic drinks to year and wrote a draft bill to reguunderage people,” he wrote in a written late hotels, restaurants and bars that inquiry sent to the government. clearly stated people under 16 would Some bars, namely venues alongside be banned from bars.

Nam Van Lake, were “crowded with The proposal went to public consultapeople under the age of majority every tion last summer but has since stalled. night” and have become a “children’s The office told Business Daily it “is playground”, Mr Au said. now studying and analyzing the opinHe is worried that minors are con- ions collected from the consultation,” suming alcohol and possibly abusing but it did not comment on when the drugs in the city’s draft law might nightspots. be ready.

Bars currently opApart from erate under a law clarifying age created in 1996 limits, the draft that regulates holaw forbids There are tels and similar esbars from optablishments. loopholes in the current erating in resiThe law states vendential buildues are required to laws that allow bars ings, an issue that industry be “open to the representatives public without any to openly cater to youth raised most ofunjustified disten at consulcriminatory prac- and children and sell tation sessions tices that limit free alcoholic drinks to last year, Mr access”, excluding Wu said. age as one of the underage people Many nightconditions. spots in the “Has the adminAu Kam San, legislator NAPE area istration reviewed were housed in the current laws to plug the loopholes and protect youth mixed-use buildings and the draft law and children from any bad influence?” would jeopardise their operation.

Mr Au wrote. He also wants additional “One high official from the Macau Government Tourist Office promised officers to inspect bars.

But Macau Entertainment and Service last year the new law would not af-

fect existing bars. But I have not heard any information from the government since then,” Mr Wu said.

Mr Au told Business Daily he was not aware of the progress and content of the draft law. He was critical of the government’s consultation process, saying the government focused too deeply on the hospitality industry at the public’s expense.

The draft law could also have an impact on karaoke lounges, which currently have the opportunity to apply to the tourist bureau for two licences – one to run a bar and the other to operate a karaoke facility.

Mr Au said some karaoke lounges may use the loophole to cater to underage drinkers, who could enter the premises under its bar licence.

Existing laws ban people under 16 years of age and students wearing school uniforms from karaoke venues.

But the tourist office brushed down the concern, stressing that for any venue with licences for both bar and karaoke, the rules that ban people under 16 or students wearing uniform “should be applied”.

Mr Au said the city’s rules on alcohol consumption were “too lax”. The government should only permit stores with a liquor licence to sell alcohol.

“The government has to carry out studies on this issue to see whether liquor licences or other methods are suitable,” Mr Au said.

Mr Wu said improved police inspections of bars would help tackle underage drinking.

“I personally do not agree or disagree with liquor licences but the industry’s view is there are many factors that have to be taken in consideration,” he said.

The tourist office stressed that “inspections on nightclubs have always been one of the focuses for the Public Security Police”.

July 20, 2012 business daily | 5

MACAU

Hengqin talks high finance InBrief Financial institutions are flocking to Hengqin, building MGM China plays down Cotai loan report the island’s reputation as a blooming financial centre Reports that MGM China Holdings has sealed US$1.5 billion syndicated debt for its Cotai project – on terms similar to the sub-two percent interest rate quoted on Wednesday by Wynn Resorts’ chairman Steve Wynn for his US$2.3 billion Cotai scheme loan – have been played down by MGM China senior management. Grant Bowie, chief executive of MGM China Holdings told Business Daily: “We’re still in the process of the gazetting – hopefully – of our land concession.

So we obviously want to be prepared with all the financing in place. We’re currently in discussion with bank syndicates but it [any deal] hasn’t started. We’ve been talking about refinancing, so that part is correct.

But we haven’t made any formal announcement on any facility.”

Hotel occupancy drops off in June The average room occupancy rate dropped by 2.2 percentage points from a year before to 85.4 percent last month, according to the Macau Hotel Association, which comprises 40 hotels. Five-star hotels were the least favoured, their average occupancy rate falling by 2.7 percentage points to 83.9 percent – the lowest in the industry. Three-star hotels were the busiest, with 87.5 percent of their rooms occupied. Room rates were 7.8 percent higher in June than a year before at an average of 1,336 patacas (US$167).

The shape of things to come - the 38 billion yuan Hengqin project

Xi Chen

xi@macaubusinessdaily.com

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he mayor of the neighbouring city of Zhuhai, He Ningka, has said banking experiments will soon be conducted on Hengqin Island, just across the border.

The mainland’s official Xinhua news agency said Mr He told a recent forum that Beijing and Guangdong had given Zhuhai a list of financial innovations to experiment with in setting up the island.

“This will be a breakthrough year for Hengqin,” Mr He said.

The government will soon unveil a detailed plan for turning the island into a centre for financial innovation.

A fund or fund management enterprise would win tax breaks and subsidies if it met certain requirements.

The PricewaterhouseCoopers report says the incentives would create a centre for equity funds.

Expert opinions More than 40 equity investment funds with capital of more than 10 billion yuan have set up shop on Hengqin. At least 100 more are expected to do so this year.

The island boasts six financial institutions, four foreign exchange

Hong Kong and Macau told the forum what they thought of Hengqin’s potential.

A member of the Monetary Authority of Macau’s advisory council, Wan Sin Long, said the island could aim to become an offshore banking centre.

“The Cayman Islands is just slightly bigger than Hengqin but attracts US$170 billion [1.36 trillion patacas] in financial assets,” Mr Wan said.

But he said the Cayman Islands had far more qualified professionals, particularly lawyers, than Hengqin and Macau, and that Hengqin needed to attract and retain talent to offer quality financial services.

Competing agendas

Assembly to get budget briefing The secretary for Economy and Finance, Francis Tam Pak Yuen, will next month give the Legislative Assembly its first-ever mid-year rundown on how closely the government is sticking to its budget, so keeping a promise he made last year. “We are planning for August 9,” the chairman of the assembly’s public finance committee, Chan Chak Mo, told the Portugueselanguage newspaper Ponto Final. The committee was created in 2009 but has never met.

New flights connect with Clark, Busan South Korea’s Air Busan and Air Asia Philippines began flying to Macau International Airport yesterday. Lowcost carrier Air Asia Philippines has daily flights from Clark Field, north of Manila, which arrive here at 8.55 pm, competing with Cebu Pacific Air. Air Busan connects Macau for the first time with the South Korean city of Busan. Its flights leave Busan on Thursday nights and Sunday nights, arriving here shortly after midnight.

The director of the Administrative Committee of Hengqin New Area, Niu Jing, said: “Currently we’re trying to implement the policies and we are exploring different possibilities.” He did not elaborate.

A PricewaterhouseCoopers report says the committee has taken its first steps towards developing a financial services industry on the island.

The committee released two policy papers outlining a pilot programme for an equity investment fund industry that would include private equity funds.

The programme would allow a fund to be created on the island, either in the form of a corporation or a partnership, with minimum registered capital of 50 million yuan (62.7 million patacas).

companies, one loan company and one insurance business.

When the Hengqin New Area was established two years ago, the island had just one credit union.

Three of the four foreign exchange companies are Macau companies, which have obtained licences from the mainland’s State Administration of Foreign Exchange.

The Zhuhai government wants to develop an offshore financial market on Hengqin to make it a yuan settlement centre; to have financial institutions from Hong Kong, Macau and further afield set up branches and back offices there; to lure financial leasing companies onto the island; and to make it a base for specialist financial services firms.

Finance experts from the mainland,

Chinese Financial Association of Hong Kong vice-chairman Song Min said the island could cooperate with Hong Kong in setting up an Asian wealth management centre.

Mr Song said that Hong Kong and Hengqin could work together to attract foreign wealth to the mainland.

The vice-director of the finance division of the State Council’s Development Research Centre, Ba Shusong, suggested that the island set up credit rating agencies to evaluate small-loan companies.

Mr Ba said the number of small-loan companies in the mainland serving smaller enterprises was expected to reach 5,000 this year but that the industry was just taking off.

He said rating agencies were needed to evaluate the creditworthiness of these small-loan companies, and that Hengqin could be the place to nurture them.

Macau and Guangdong agreed in March that Hengqin should also help Macau to diversify its economy.

But there are concerns that competing agendas may prevent Macau from taking advantage of the development.

Macau Executive Council member and businessman Leong Vai Tac said this year: “The biggest challenge at the present is that Guangdong and Macau have different ideas on Hengqin’s future direction.”

6 |

business daily July 20, 2012

macau

Change of process takes bite from hearings

Brought to you by

Rates of decline The pataca’s peg provides stability in the sense that its value against two other currencies commonly used here – the Hong Kong dollar and the United States dollar – varies little. But it may blur significant changes in the purchasing power of the pataca. First, the indirect link to the US dollar means the pataca fluctuates against the currencies of other places. Some of these places, notably the mainland and the euro zone, are important trading partners. Second, what is called the effective exchange rate or EER may change in ways not reflected by the market exchange rate. The EER measures the value of a country’s currency against the currencies of its most important trading partners. It is calculated according to the amount of trade with each partner. The chart shows the Monetary Authority of Macau’s data for the pataca’s EER.

Legislative Assembly’s critical oversight role may be weakened if proposal limiting the hearings goes ahead

Pataca EER, Jan 2000 = 100 94

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tony.lai@macaubusinessdaily.com 86

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It is clear that the pataca’s EER has weakened against the currencies of Macau’s main trading partners. So, the price competitiveness of the economy is declining. But if we look at the separate EERs for the pataca against the currencies of our main export markets and our main sources of imports, the changes are noticeably different.

Pataca Imports and Exports EER, Jan 2000 = 100 96.0

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proposal being discussed at the Legislative Assembly could make it more difficult to propose hearings and the New Macau Association is crying foul.

An informal meeting today has been called to discus the matter.

The assembly’s Committee on Rules and Statutes has discussed possible changes to the body’s rules. On Tuesday, a proposal was put forward that would require hearings to be supported by at least five legislators, up from the current two, legislator Au Kam San said.

Committee president Fong Chi

Keong out forward the proposal but Mr Au said he would protest the planned change.

“The public hearing is the most effective means for the Legislative Assembly to supervise the government,” said Mr Au, adding it would be far more difficult to propose a hearing if the proposal goes ahead.

The New Macau Association put forward requests for at least nine hearings and had each one turned down, with only four legislators – the pan-democrat trio and José Pereira Coutinho – voting in favour.

“Probably some [legislators] think the rejection of the hearings may also embarrass the government, so they make such changes so that a hearing cannot even be suggested,” Mr Au said.

“This supervision mechanism should be relaxed instead of restricted.”

He warned that the hearings system would be devalued if the proposal went ahead.

Business Daily has asked the assembly for more information but chamber officials were unaware of any meeting to discuss the proposal scheduled for today.

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The EER for imports has been falling faster than the EER for exports. The pattern of our import trade is markedly different from the pattern of our export trade. The decline in the import EER means the pataca lost purchasing power.

The export rate is even displaying recently an appreciation trend.

J.I.D.

Opportunity knocks thanks to casino managers’ new association

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new body for casino managers will help local people to move up the career ladder into senior industry positions, said Davis Fong Ka Chio (centre), Director of the Institute for the Study of Commercial Gaming at the University of Macau. He was speaking yesterday as the inaugural president of the Macau Gaming Management Association at launch event held at MGM Macau. Guests included Francis Tam Pak Yuen, Macau’s Secretary for Economy and Finance, and Chen Xiang, Vice Director-General of the Economic Affairs Department of the Liaison Office of the Central People’s Government in the Macau SAR.

Weather Beijing 34/25o C Changchun 28/21o C

Harbin 27/21o C

Xian 33/24o C Shanghai 34/27o C Chengdu 29/22o C Kunming 25/18o C Haikou 35/26o C Sanya 32/25o C

Guangzhou 35/25o C

MACAU (16 July-21 July) Day

Temperature

Humidity

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28/32o C

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07/17

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Shenzhen 34/27o C

ASIA (today)

Hong Kong 35/27o C

Manila

TOKYO

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Macau 32/27o C

Bangkok

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SINGAPORE

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taipei

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July 20, 2012 business daily | 7

MACAU Vítor Quintã

vitorquinta@macaubusinessdaily.com

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ong Kong-based food and beverage producer Vitasoy International Holdings Ltd announced an “impressive” sales growth of 15 percent in Macau for the year ended March 31.

The sales bump was mainly in nonalcoholic drinks, the company said in its annual report filed to the Hong Kong Stock Exchange on Wednesday.

The non-alcoholic sector showed “moderate growth in value and in volume because of the favourable weather with less rain and typhoons,” the company said.

Vitasoy says sales in Hong Kong and Macau outperformed the

industry average.

Sales revenue in Macau and Hong Kong rose 9 percent year-on-year to HK$1.67 billion (US$215.3 million).

Profit from the Hong Kong and Macau business rose by 13 percent over the previous year, to HK$321 million. The two cities account for 45 percent of Vitasoy’s sales.

The company also operates in the mainland, North America, Singapore, Australia and New Zealand.

Overall, revenue grew 12 percent to HK$3.7 billion but the company said profit fell to HK$281 million, “mainly due to the increased finance costs associated with the investment in enhancing production capacity”.

The board of directors has recommended a final dividend of HK$0.15 per share.

Photo by Manuel Cardoso

Warm weather spells hot sales for Vitasoy

Vitasoy’s sales grew 15 percent last year, outperforming the industry average, according to the company’s annual report

Higher tariffs loom as energy use rockets

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hree record-breaking peaks in energy consumption so far this month will most likely mean increased energy bills later this year.

The Chinese-language Macau Daily News reported that demand peaked at 751 megavolts this week, a 4-percent

rise over the same time last year.

A Companhia de Electricidade de Macau – CEM, SA spokesman said electricity charges for the third quarter would be announced in a few days.

Electricity prices would be the same for 90 percent of CEM’s clients and the company would subsidise the

increases to keep prices stable.

CEM’s chief supplier, China Southern Power Grid Co Ltd, has the right to revise prices twice a year in January and July.

The companies are in talks but the spokesman said CEM’s profit would be squeezed if China Southern Power raises its prices.

CEM says it expects energy consumption to increase by as much as 8 percent this year.

Limited sources of fuel for power generation means that Macau imports up to 80 percent of its energy needs from the mainland.

X.C.

8 |

business daily July 20, 2012

Greater china

Beijing doubles loans InBrief to African countries HK shares jump to near 2-week high

Hong Kong shares rose to a near twoweek high yesterday after upbeat U.S. housing data and corporate profits improved risk appetite, but a failure to close above chart resistance suggest the rally could have hit a ceiling. The Hang Seng Index closed up 1.7 percent at 19,559.1, the highest since July 6, but failed to finish above its 200-day moving average, currently at about 19,588.9. Mainland Chinese markets also climbed, but retreated from highs at midday. The CSI300 Index of the top listings in Shanghai and Shenzhen and on which the major Chinese stock index derivative products are based, gained 0.4 percent. The Shanghai Composite Index rose 0.7 percent.

Tencent buys stake in Caixin Tencent Holdings Ltd, China’s biggest Internet company, said it acquired a minority stake in Chinese financial news publisher Caixin Media Co., increasing investments in media assets to expand services for online users. The investment in Caixin, made “recently,” may lead to future collaboration in content, Catherine Chan, a spokeswoman for Tencent, said. She declined to provide financial details.

Tencent is expanding in businesses including e-commerce and advertising to diversify from online games, which account for more than half its revenue.

Xinhua reports revenue boom Xinhua News Agency, China’s official news wire, reported revenue of 5.6 billion yuan (US$884 million) in 2011, a 72 percent gain from 2010, as the country pushes to expand its influence around the world. The government’s doubling of its allocation to Xinhua, to 1.9 billion yuan, accounted for most of the increase, according to the report. Expenses were a matching 5.6 billion yuan. The news agency has 166 bureaus worldwide and runs the 24-hour CNC television network that broadcasts in more than 70 countries, according to the report.

Alibaba’s Tmall to invest 1 bln yuan Alibaba Group Holding Ltd’s Tmall online shopping unit plans to spend 1 billion yuan (US$157 million) on promotions in the second half, stepping up efforts to win consumers and keep its lead in China’s e-commerce market. The programme will include spending on subsidies that will be paid to vendors on Tmall’s website, it said in a post on the Sina Weibo microblog site yesterday.

Alibaba confirmed the contents of the post in an e-mail. Tmall faces competition from rivals including 360buy Jingdong Mall and Tencent Holdings Ltd to win over more of China’s online shoppers, estimated at 193 million by Boston Consulting Group in April.

Hong Kon But rate seen climbing in the second half of 2012 – govt Crystal Chui

H China’s President Hu Jintao pledged US$20 billion in loans to African countries over the next three years

In bid to gain more access to the resource-rich continent Ben Blanchard

C

hinese President Hu Jintao yesterday offered US$20 billion (159 billion patacas) in loans to African countries over the next three years, boosting a relationship that has been criticised by the West and given Beijing growing access to the resource-rich continent.

The loans offered were double the amount China pledged for the previous three-year period in 2009 and is the latest in a string of aid and credit provided to Africa’s many poverty-stricken nations.

The pledge is likely to boost China’s good relations with Africa, a supplier of oil and raw materials like copper and uranium to the world’s most populous country and second-largest economy.

But the loans could add to discomfort in the West, which criticises China for overlooking human rights abuses in its business dealings with Africa, especially in Beijing’s desire to feed its booming resource-hungry economy.

Mr Hu brushed off such concerns in his speech at the Great Hall of the People, attended by leaders including South African President Jacob Zuma and Equatorial Guinea’s Teodoro Obiang Nguema.

“China wholeheartedly and sincerely supports African countries to choose their own development path, and will wholeheartedly and sincerely support them to raise their development ability,” Mr Hu said.

China will “continue to steadfastly stand together with the African people, and will forever be a good friend, a good partner and a good brother”, he added at the summit held every three years since 2000.

Mr Hu also pledged to “continue to expand aid to Africa, so that the benefits of development can be realised by the African people”.

He did not provide an amount.

But said the new loans would support infrastructure, agriculture, manufacturing and development of small and medium-sized businesses in Africa.

Growing trade links Critics say China supports African governments with dubious human rights records as a means to get access to resources.

The EU has rejected what they call China’s “cheque book” approach to doing business with Africa, saying

it would continue to demand good governance and the transparent use of funds from its trading partners.

Such criticism draws rebukes from China that the West still views Africa as though it were a colony.

Many African countries say they appreciate China’s no-strings approach to aid.

“Africa’s past economic experience with Europe dictates a need to be cautious when entering into partnerships with other countries,” Mr Zuma told the forum. “We are particularly pleased that in our relationship with China we are equals and that agreements entered into are for mutual gain.”

“We certainly are convinced that China’s intention is different to that of Europe, which to date continues to intend to influence African countries for their sole benefit,” he added.

Chinese state-owned firms in Africa also face criticism for using imported labour to build government-financed projects like roads and hospitals, while pumping out raw resources and processing them in China, leaving little for local economies.

“Certainly quite a number of us are thinking we need to move into more value addition,” South African’s Trade and Industry Minister Rob Davies told Reuters.

“We need to export mineral products in a more processed form ... We need to bite this bullet very seriously.”

Trade has jumped in the past decade, driven by Chinese hunger for resources to power its economic boom and African demand for cheap Chinese products.

China’s trade with Africa reached US$166.3 billion in 2011, according to Chinese statistics. In the past decade, African exports to China rose to US$93.2 billion from US$5.6 billion.

Reuters

US$166.3 billion

China trade with African countries in 2011

ong Kong’s jobless rate may rise on weakness in the global economy and more graduates and school leavers seeking work, the government said, even as the latest data showed resilience in the labour market.

“The Hong Kong economy can hardly stay unscathed,” the Financial Secretary’s Office said in an e-mailed response to questions from Bloomberg, citing Europe’s debt crisis and the fragility of major advanced economies.

The jobless rate for the three months through June was unchanged at a seasonally adjusted 3.2 percent, the government said on its website yesterday. That was less than the 3.3 percent median forecast of six economists in a Bloomberg News survey and compares with a rate of as much as 5.5 percent during the global financial crisis.

“As the economy is slowing this

LME chairma of vote for bo

L

ondon Metal Exchange Chairman Brian Bender is “reasonably confident” of securing shareholder backing for a takeover by Hong Kong Exchanges & Clearing Ltd. LME shareholders will vote on July 25 on the proposed 1.39 billion-pound (US$2.17 billion) bid by HKEx. The offer will need approval by more than 50 percent of LME shareholders, with the owners of at least 75 percent of the stock backing the move. The two exchanges announced the proposed deal on June 15.

“I’m reasonably confident that we will get the vote,” Mr Bender said yesterday in an interview in London. If shareholders vote in favour of the sale, the transaction should be concluded in the fourth quarter, after the so-called LME Week in October when the metals industry gathers in London, he said.

The LME is on course to

July 20, 2012 business daily | 9

greater china

ng jobless rate stable year, it is likely that the job market will follow suit,” said Joanne Yim, an economist at Hang Seng Bank Ltd in Hong Kong, forecasting an increase to a 4 percent jobless rate by year-end.

Hong Kong stocks rose on speculation China will take more action to boost growth and after U.S. housing starts jumped to the highest since 2008. The Hang Seng Index advanced 1.7 percent.

The Financial Secretary’s Office cited a looming influx of graduates and school leavers as also causing “upside risks” for the unemployment rate.

Tourists, infrastructure An increased jobless rate would add to pressure on Chief Executive Leung Chun Ying, who took office on July 1 and faces public concern over housing costs, the gap between rich and poor, and the conduct of public officials.

His development secretary resigned after the Apple Daily reported he had misused government housing allowances.

Democratic Party lawmaker Albert Ho has asked a court to rule that Mr Leung’s election was invalid, saying that he misled the public about illegal structures built at his home.

Tourist spending, domestic demand

European crisis and more graduates seeking work may push up jobless rate, the HK government warns

and infrastructure projects have helped the city to maintain almost full employment, the Financial Secretary’s Office said.

For now, job seekers are optimistic.

“I’m not too worried about not being able to find a job,” said Sally Chu,

40, who was at a government job centre in Wanchai this week, looking for work as a domestic helper. “I have a couple of offers already but I’m waiting for an offer with better pay and working conditions.”

Echoing that view was Samuel

Fung, 32, who wants a job as an accounting clerk that pays more than HK$13,000 (US$1,676) a month. “There are a lot of job vacancies and it is not hard to get an offer,” he said.

Bloomberg

an ‘confident’ Japan property billionaire Mori turns to China ourse sale LME shareholders to vote next week on the proposed bid by HKEx

Vows to build a company ‘willing to take risks’ Kathleen Chu and Takako Taniguchi

B

complete its clearinghouse LME Clear in the first quarter of 2014, which will make it easier for the bourse to start new products, Mr Bender said.

“Having control of our own clearing is key to our strategy.”

If approved as the LME’s new owner, HKEx will help the bourse build the clearinghouse.

The LME, which accounts for about 80 percent of industrial metal futures, handled a record US$15.4 trillion of contracts last year. The takeover would give the Asian exchange its first commodities business and the London bourse better access to China, the biggest user of everything from aluminum to zinc.

Increasing the London bourse’s presence in China “is more likely to happen with the Hong Kong ownership than stand alone,” Mr Bender said.

Bloomberg

illionaire Akira Mori, the owner of Japan’s most profitable closely held developer, said he has formed a company to invest in China and advise Japanese companies on expanding there.

“Japan’s environment is getting difficult; I want to build a company that is willing to take risks,” said Mr Mori in an interview in Tokyo.

Mr Mori said he plans to expand the assets of MA Platform Group, set up with 16 billion yen (US$202 million) of capital, to 50 billion yen in five years. MA Platform has invested 18 billion yen including financing so far.

Mori seeks to invest in educational services and mass media in China, he said. The company became the second-largest shareholder in closely held Beijing-based Tsingda eEdu Corp., which offers classes over the Internet.

Japan’s more than a decade of deflation and sluggish economic growth has forced the Bank of Japan to keep interest rates near zero. In contrast, China surpassed Japan as the world’s second-largest economy in 2010 and has introduced a series of tightening measures to keep its economy from expanding too rapidly. Mori plans to take advantage of the near-zero interest rates in Japan to invest in one of the world’s fastest-growing economies.

Mr Mori’s company can borrow at

1 percent whereas corporations in China will need to pay at least 6.5 percent for debt, he said.

“It’s easy to invest in China and other places because the financing is cheap and the yen is strong,” he said.

The Japanese yen has strengthened 35 percent against the dollar in the past five years, from 122.96 on July 18, 2007. The yen rose 0.2 percent to 78.61 per dollar yesterday in Tokyo.

Tokyo-based MA Platform, or MAP, will generate about 1 billion yen of profit this business year, he said. MK Trust, a Tokyo-based consulting firm, will work with MAP to provide advice on potential mergers and acquisitions for Japanese and Chinese companies.

MAP also has placed capital in CICC Growth Capital Fund I, which invests in companies in Greater China, an area that includes Hong Kong, Taiwan and Macau. China International Capital Corp., the fund manager, is 43.4 percent owned by Central Huijin Investment Ltd, the investment arm of China Investment Corp.

a record high, according to Miki Shoji Co., a closely held office brokerage company.

“Japan’s real estate market is getting difficult,” said Mr Mori.

“We can continue as it is, but it’s better to invest in China and in other sectors.”

“The concept of an investment company and a developer are completely the opposite, so it’s better to separate the two entities,” said Mr Mori. “If the plan with MAP goes well, then that will help support the future of Mori Trust.”

Another reason that prompted Mr Mori to form a new company is that he wants to be able to make decisions quickly, he said.

“Japanese companies tend to need a lot of time to come to a decision; all they do is have meetings and are reluctant to take on risks,” said Mr Mori. “China’s environment changes so rapidly. The chance passed you by just as you were considering it.”

Bloomberg

Quicker decisions Tokyo’s office vacancy rate has been rising due to an increase of new supply. The vacancy rate in June rose for a third straight month, to 9.43 percent,

Akira Mori plans to invest US$202 million on China

10 |

business daily July 20, 2012

asia

An offer lawmakers can refuse Libor scandal sparks region-wide probe of banks’ rate setting

F

inancial regulators and law enforcement agencies across Asia are conducting their own investigations into possible collusion among lending institutions on local interbank loan rates. It comes in the wake of the United Kingdom’s scandal over Libor – the London Interbank Offered Rate – that determines the price of many financial products around the world, including many property mortgages for consumers.

Regulators globally are trying to restore investor confidence in benchmark borrowing costs after United States and U.K. authorities found that Barclays Plc employees rigged Libor. It led to a record fine of £290 million (US$453 million) levied against the British bank last month.

South Korea’s anti-trust agency, probing suspected collusion in setting three-month rates, has inspected offices of the local unit of Standard Chartered PLC and three local banks as part of the investigation, the four banks said yesterday.

The Monetary Authority of Singapore (MAS) said it is examining the setting of interest rate benchmarks by financial institutions operating in the city-state as central banks worldwide scrutinise the troubled Libor process.

The Japanese Bankers Association stated it’s considering looking at as many as 16 banks to confirm that they follow guidelines for submitting yen denominated Tokyo Interbank Offered Rates.

KEY POINTS S.Korea probing suspected collusion on 3-month rates Monetary Authority of Singapore looking at benchmark rates Japanese lawmakers press local banks if Tokyo rates fairly set Decision on reform or scrapping of Libor expected at central bankers’ crisis summit in September

South Korea Media spokesmen for Standard Chartered Bank Korea, Busan Bank, Daegu Bank and Nonghyup Bank said officials from the Republic of Korea’s Fair Trade Commission (FTC) conducted inspections of their offices on Wednesday, when four bigger local banks already confirmed they were under investigation. The banks gave no further details.

An FTC spokesman said yesterday the agency had investigated nine banks and 10 brokerages since Tuesday over suspected collusion

in quoting the official certificate of deposit (CD) rates substantially high even when other market rates fell. He did not identify the firms by name.

South Korea’s 91-day CD rate is a benchmark for banks’ variable rate for lending and borrowing as well as for interest swaps or floating yields for bonds. Quotes are collected twice a day by the Korea Financial Investment Association, or KOFIA, from 10 brokerages. The highest and lowest two are eliminated and the remaining are averaged.

The government has encouraged lenders to use alternatives such as the Korean Interbank Offered Rate, or Koribor, and the cost of funds index, or COFIX, but much of the lending is still made on the basis of the CD rate.

The CD rate has however failed to reflect changing market interest rates for a long time, for instance staying at a uniform 3.54 percent for three months even as the samematurity treasury bond yield fell 19 basis points.

Officials at the country’s top four local commercial banks – Kookmin Bank, Woori Bank, Shinhan Bank and Hana Bank – said on Wednesday that they were part of the FTC’s widening probe into how certificate of deposit rates were quoted. The identity of the ninth bank being investigated by the FTC is not known.

Shares of banks and their holding companies slid on concerns they could face fines or at least shrinking profit margins as a result of the investigations, if not heavier

penalties on their overall operations, analysts said.

Singapore “Regulators in several international financial centres are looking into the setting of key market interest rate benchmarks by banks. The Monetary Authority of Singapore is doing the same in Singapore,” a spokeswoman said in an emailed statement.

The Singapore Interbank Offered Rate – Sibor – set by the Association of Banks in Singapore using inputs from 12 banks operating in the Southeast Asian financial centre,

Japan manufacturers’ mood lightens but worries linger Monthly poll shows fears about global slowdown and stubbornly strong yen Tetsushi Kajimoto and Izumi Nakagawa

J

apanese big manufacturers’ outlook improved slightly in July but they remained pessimistic for a second straight month, a Reuters poll showed, as concerns about the global economic slowdown and a strong yen weigh on the exportreliant economy.

The monthly poll, which correlates with the Bank of Japan’s closely watched tankan corporate survey and with growth trends in the economy, also showed sentiment among servicesector firms sagged for the first time in five months but stayed positive, a sign that domestic demand is underpinning the world’s third-largest economy.

Both manufacturers and nonmanufacturers – including retail, real estate and construction companies – expect business conditions to pick up over the next three months, according to the poll of 400 big firms, of which 272 responded during the survey period from June 29 to July 13.

The poll was largely in line with the BOJ’s June tankan, issued on July 2, which showed a slight improvement in corporate sentiment, providing more evidence of an economic recovery.

“The survey confirmed that the

Bumpy ride – Japan industrialists’ mood better, but not by much

underlying economy is relatively firm as big manufacturers feel they are receiving steady orders,” said Tatsushi Shikano, senior economist at Mitsubishi UFJ Morgan Stanley Securities in Tokyo.

The Reuters Tankan showed companies remained worried about the global economic outlook, however.

They cited China’s slowdown and the yen’s gains, driven by “safe haven” fund flows, as sources of concern.

“Companies remain cautious about the outlook for the global economy and the yen. If the currency’s rise accelerates to aggravate the corporate mood, that could prompt the BOJ to ease policy further, although the

central bank is likely to take a waitand-see stance for the time being,” Mr Shikano said.

The manufacturers’ sentiment index, derived by subtracting the percentage of pessimistic responses from optimistic ones, rose 1 point to minus 2 in July.

Reuters

July 20, 2012 business daily | 11

asia

Singapore exchange toughens rules to lure big fish Follows accounting scandals at listed small Chinese firms Kevin Lim and Rachel Armstrong

S

Going down – without a fight – regional regulators probe local interbank arrangements

is widely used in the pricing of mortgages and other loans.

Japan Citigroup Inc. and UBS AG in December were ordered by Japanese regulators to suspend some operations after the banks’ staff were found to have attempted to influence the Tokyo Interbank Offered Rate, or Tibor.

Yasuhiro Sato, president of the Japanese Bankers Association, is scheduled to meet with reporters this afternoon in Tokyo for a regular monthly press conference.

“There’s growing pressure from Japanese lawmakers on the banking industry to determine and confirm

that Tibor has been properly submitted and set without any wrongdoing,” said Shinichiro Nakamura, a Tokyo-based analyst at SMBC Nikko Securities Inc. “If any bank is found to have attempted manipulation of the rate, it would be a huge problem.”

Central bankers and regulators will hold talks in September on whether Libor as used globally can be reformed or whether it is so damaged that the benchmark of borrowing costs should be scrapped.

U.S. Federal Reserve Chairman Ben Bernanke on Wednesday floated alternatives to Libor.

Reuters/Bloomberg

Region must consider monetary policy, fiscal power Asian Development Bank urges states’ role in crisis

A

sian economies may need to ease monetary and fiscal policies further as Europe’s debt turmoil crimps global growth, the Asian Development Bank said.

“With global economic conditions weakening and prospects for future recovery uncertain, the external environment for developing Asia is expected to remain difficult,” the Manila-based lender said in its inaugural Asian Economic

Asian Development Bank

Integration Monitor report released yesterday. “Therefore, policymakers may need to deploy another round of fiscal and monetary measures to safeguard economic growth and ensure that growth is inclusive.”

The International Monetary Fund cut its 2013 global growth forecast to 3.9 percent this week from an earlier estimate of 4.1 percent.

Europe’s debt woes have slowed expansion in emerging markets, prompting central banks from China to Brazil to ease policy this month to shield their economies.

The weaker external environment will likely contribute to slower export growth in developing Asia, hurting economies dependent on overseas sales, the ADB said in today’s report. The lender last week cut its 2012 growth forecast for the region to 6.6 percent, lower than an April estimate of 6.9 percent.

While greater regional cooperation is desirable, governments must also put in place policies to minimize the risks of greater integration, the ADB said.

Bloomberg

ingapore Exchange Ltd is toughening its listing rules in the wake of a series of accounting scandals at small Chinese firms, hoping stronger corporate governance will attract more large companies to the city state.

Recent scandals at companies such as KXD Digital Entertainment have dealt a blow to the reputation of SGX-listed companies, coming as stock sales – including initial public offerings – have tumbled due to turmoil in global markets.

The SGX, whose year has been marked by the delay of an up to US$3 billion (23.97 billion patacas) listing by Formula One motor racing and the loss of football club Manchester United’s IPO to New York, said the tighter rules would make it more attractive for larger firms to go public in Singapore.

Although the exchange doesn’t generate a lot of revenue from new listing fees, bigger offerings would prop up daily trading volumes, where SGX gets the bulk of its income.

“Obviously, if you list more bigger companies, it will trade more and that will tend to attract other large companies as a place of listing,” said Kenneth Ng, an analyst at CIMB in Singapore.

Despite the loss of the high-profile Manchester United listing, SGX Chief executive Magnus Bocker said there were no plans to make listing rules more flexible to accommodate sport teams or football clubs.

The English Premier League powerhouse is expected to raise US$300 million in New York this month, where it will be allowed to have a dualclass structure of shares.

“There is no way we will compromise the integrity of our market for any brand,” Mr Bocker told a press conference. “We have lost listings because of that.”

Reuters

12 |

business daily July 20, 2012

MARKETS Hang SENG INDEX NAME

PRICE

Day %

VOLUME

AIA GROUP LTD

27.7

0.1808318

16512692

ALUMINUM CORP-H

3.17

2.922078

9926865

NAME CHINA UNICOM HON CITIC PACIFIC

PRICE

Day %

VOLUME

10.02

5.362776

38804368

11.6

0.6944444

2013625

SANDS CHINA LTD SINO LAND CO SUN HUNG KAI PRO

BANK OF CHINA-H

2.87

2.5

284107741

BANK OF COMMUN-H

5.01

3.298969

29009142

27

2.079395

1399716

13.74

1.029412

20961442

ESPRIT HLDGS

23.7

1.716738

14957421

HANG LUNG PROPER

CATHAY PAC AIR

13.26

0.7598784

4452200

HANG SENG BK

107.6

CHEUNG KONG

100.3

0.1998002

3948678

6.89

4.236006

51119987

BANK EAST ASIA BELLE INTERNATIO BOC HONG KONG HO

CHINA COAL ENE-H CHINA CONST BA-H

4.93

2.708333

300704182

CHINA LIFE INS-H

21.95

2.331002

47855955

CHINA MERCHANT

25.25

3.061224

3155726

CHINA MOBILE CHINA OVERSEAS

COSCO PAC LTD

PRICE

Day %

60

1.180438

3391030

23.55

1.072961

12131750

13.3

4.559748

10241873

96.9

0.8324662

5635987

SWIRE PACIFIC-A

92.65

1.201529

1460961

TENCENT HOLDINGS

4857563

POWER ASSETS HOL

66

1.149425

2062907

2.864583

51748169

10.46

1.750973

7890357

9.1

-1.939655

10045486

227.6

2.522523

27.05

1.500938

3733186

TINGYI HLDG CO

19.5

0.4119464

8122777

0.9380863

1572533

WANT WANT CHINA

9.78

6.304348

18067644

WHARF HLDG

43.35

-0.4592423

4539361

HENDERSON LAND D

45.45

1.112347

2471935

HENGAN INTL

75.85

1.336005

1647736

HONG KG CHINA GS

17.82

1.365188

7589043

HONG KONG EXCHNG

105.3

3.438114

5389242

HSBC HLDGS PLC

66.9

0.5259204

20663082

87.6

1.565217

15179867

HUTCHISON WHAMPO

70.9

1.867816

5951486

-1.348315

31578548

IND & COMM BK-H

4.15

2.469136

347343353

LI & FUNG LTD

MOVERS

45

14.1

0.4273504

15726890

HIGH

19587.79

26.95

0.9363296

1851213

LOW

19152.41

15650243

NEW WORLD DEV

10.12

2.42915

26471513

3.486924

10171786

PETROCHINA CO-H

9.71

2.210526

73478716

1.610018

25416742

PING AN INSURA-H

63.5

2.584814

13682566

1.911765

91329547

20.75

3.233831

7464878

14.9

-0.1340483

CHINA RES POWER

16.62

CHINA SHENHUA-H

28.4

4

0 19590

INDEX 18800.99

MTR CORP

6.93

CHINA RES ENTERP

VOLUME

15.8

17.56

CHINA PETROLEU-H CHINA RES LAND

CLP HLDGS LTD CNOOC LTD

NAME

52W (H) 23707.94922 (L) 16170.35

19150

17-Jul

19-Jul

Hang SENG CHINA ENTErPRISE INDEX NAME

PRICE

DAY %

VOLUME

27.15

3.231939

14187905

YANZHOU COAL-H

CHINA PETROLEU-H

6.93

1.911765

91329547

9926865

CHINA RAIL CN-H

6.87

4.399787

-0.486618

19756327

CHINA RAIL GR-H

3.46

2.87

2.5

284107741

CHINA SHENHUA-H CHINA TELECOM-H

PRICE

DAY %

VOLUME

AGRICULTURAL-H

3.04

3.050847

115389445

AIR CHINA LTD-H

5.31

2.115385

28318062

ALUMINUM CORP-H

3.17

2.922078

ANHUI CONCH-H

20.45

BANK OF CHINA-H

NAME CHINA PACIFIC-H

PRICE

DAY %

VOLUME

11.64

2.28471

10853151

ZIJIN MINING-H

2.52

2.024291

22276546

28228446

ZOOMLION HEAVY-H

9.12

-0.6535948

14758532

4.297694

37714312

ZTE CORP-H

10.18

1.596806

11297515

28.4

1.610018

25416742

5.01

3.298969

29009142

3.62

6.784661

74814764

13.72

5.053599

2541000

DONGFENG MOTOR-H

10.52

1.153846

20473959

CHINA CITIC BK-H

3.78

3.561644

33075040

GUANGZHOU AUTO-H

5.52

-1.075269

2503535

CHINA COAL ENE-H

6.89

4.236006

51119987

HUANENG POWER-H

5.66

0.1769912

24364538

CHINA COM CONS-H

7.09

-0.4213483

27409551

IND & COMM BK-H

4.15

2.469136

347343353

CHINA CONST BA-H

4.93

2.708333

300704182

JIANGXI COPPER-H

17.48

0.9237875

6838580

BANK OF COMMUN-H BYD CO LTD-H

3.52

1.149425

21040319

PETROCHINA CO-H

9.71

2.210526

73478716

21.95

2.331002

47855955

PICC PROPERTY &

8.98

5.02924

25505218

CHINA LONGYUAN-H

4.85

0.6224066

10918409

PING AN INSURA-H

63.5

2.584814

13682566

CHINA MERCH BK-H

13.94

3.106509

21303451

SHANDONG WEIG-H

8.77

3.419811

3768286

CHINA COSCO HO-H CHINA LIFE INS-H

CHINA MINSHENG-H

6.92

5.007587

39003564

SINOPHARM-H

21

0.9615385

CHINA NATL BDG-H

7.82

0

27510286

TSINGTAO BREW-H

45.75

0.3289474

988100

12.22

2.861953

6552038

WEICHAI POWER-H

23.75

-5.5666

5211202

CHINA OILFIELD-H

3688622

NAME

MOVERS

34

5

1 9530

INDEX 9647.79 HIGH

9528.15

LOW

9227.74

52W (H) 13317.51953 (L) 8058.58

9225

17-Jul

19-Jul

Shanghai Shenzhen CSI 300 NAME

PRICE

DAY %

VOLUME

PRICE

DAY %

VOLUME

AGRICULTURAL-A

2.49

0

31775166

DAQIN RAILWAY -A

6.2

-0.3215434

78982207

AIR CHINA LTD-A

6.5

2.201258

19846882

DATANG INTL PO-A

5.37

-0.7393715

6.21

0.6482982

8143142

DONGFANG ELECT-A

16.17

14.94

0.2684564

14184738

EVERBRIG SEC -A

13.7

ALUMINUM CORP-A ANHUI CONCH-A

NAME

NAME

PRICE

DAY %

VOLUME

SAIC MOTOR-A

12.82

2.56

33085188

6649616

SANY HEAVY INDUS

12.11

1.338912

26052309

0.6849315

8191055

SHANDONG GOLD-MI

33.26

-0.06009615

6078622

-0.1457726

12545193

SHANG PUDONG-A

7.69

0.2607562

77344589

BANK OF BEIJIN-A

7.49

-0.3989362

11231017

GD MIDEA HOLDING

10.2

0.990099

24281520

SHANGHAI ELECT-A

4.39

1.856148

5478495

BANK OF CHINA-A

2.76

-0.3610108

17009308

GD POWER DEVEL-A

2.74

-0.3636364

36925846

SHANXI LU'AN -A

21.33

1.13798

21641661

BANK OF COMMUN-A

4.33

0.2314815

48296631

GF SECURITIES-A

15.68

-0.6337136

37691085

SHANXI XINGHUA-A

37.02

0.1623377

2938397

BANK OF NINGBO-A

9.99

0.2006018

17997072

GREE ELECTRIC

21.74

-0.8663931

9516754

SHANXI XISHAN-A

15.49

-0.5138086

15449158

BAOSHAN IRON & S

4.18

0

16375173

GUANGHUI ENERG-A

14

-1.199718

10478742

SHENZ DVLP BK-A

15.02

0.06662225

13626372

17.97

-1.426221

8798042

SHENZEN OVERSE-A

6.47

-0.7668712

19963286

17.39

1.222352

3247967

GUIZHOU PANJIA-A

3.87

0.3891051

11382287

HAITONG SECURI-A

10.05

0.6006006

63823958

SUNING APPLIAN-A

7.3

-0.273224

48332938

CHINA CNR CORP-A

3.8

1.06383

23987540

HANGZHOU HIKVI-A

27.26

0.6646972

2961633

TSINGTAO BREW-A

36.58

-0.5708073

1041973

CHINA COAL ENE-A

7.78

-0.2564103

7543105

63.9

-0.15625

1460296

WEICHAI POWER-A

26.75

1.057801

3915234

CHINA CONST BA-A

4.03

0.4987531

15593233

HONG YUAN SEC-A

18.95

-1.558442

45623207

WULIANGYE YIBIN

36.55

-0.8410201

25554592

BYD CO LTD -A CHINA CITIC BK-A

HENAN SHUAN-A

CHINA COSCO HO-A

4.63

0

11214300

HUATAI SECURIT-A

10.55

1.344861

31081244

XIAMEN TUNGSTEN

42.65

-0.5827506

3768889

CHINA CSSC HOL-A

22.71

0.9333333

5702550

HUAXIA BANK CO

8.77

0.5733945

24241435

YANGQUAN COAL -A

15.69

-1.258653

17048708

CHINA EAST AIR-A

4.41

0.2272727

14921356

IND & COMM BK-A

3.8

-0.7832898

28108423

YANTAI CHANGYU-A

63

0.2067759

2453627

CHINA EVERBRIG-A

2.76

0.3636364

27974648

INDUSTRIAL BAN-A

12.31

0.4078303

41030945

YANTAI WANHUA-A

13.54

1.044776

8304177

20

5.596621

36937790

INNER MONG BAO-A

39.7

-1.120797

28388613

YANZHOU COAL-A

19.3

0

4984666

CHINA MERCH BK-A

10.1

-0.09891197

44505822

INNER MONG YIL-A

19.58

-0.8607595

21898556

YUNNAN BAIYAO-A

59.93

1.250211

1648730

CHINA MERCHANT-A

11.69

1.124567

18757871

INNER MONGOLIA-A

5.06

0.3968254

37941776

ZHONGJIN GOLD

21.26

0.2357379

6465009

CHINA MERCHANT-A

24.44

-1.886792

8227072

JIANGSU HENGRU-A

30

3.057369

3828066

ZIJIN MINING-A

3.76

0.5347594

31262387

CHINA MINSHENG-A

5.95

-0.1677852

65554811

JIANGSU YANGHE-A

144.11

-0.06241331

2031848

ZOOMLION HEAVY-A

CHINA NATIONAL-A

6.17

1.983471

76374968

JIANGXI COPPER-A

22.94

0.8351648

7710147

ZTE CORP-A

CHINA OILFIELD-A

17.94

2.047782

14493652

JINDUICHENG -A

12.69

0

4648098

INNER MONG YIL-A

CHINA PACIFIC-A

23.64

4.463102

34881138

JIZHONG ENERGY-A

15.46

-0.06464124

18652323

6.12

2.170284

37921341

KANGMEI PHARMA-A

15.24

-0.8458035

9462603

246.21

0.5102874

2658099

41.84

0.5044439

5672676

CHINA LIFE INS-A

CHINA PETROLEU-A CHINA RAILWAY-A

4.79

2.350427

49324127

KWEICHOW MOUTA-A

CHINA RAILWAY-A

2.67

1.520913

44881254

LUZHOU LAOJIAO-A

CHINA SHENHUA-A

22.65

-0.6143045

6746460

METALLURGICAL-A

2.35

0.8583691

19635800

34163600

NEW HOPE LIUHE-A

16.38

-1.5625

9949236

MOVERS

181

10

-0.3984064

27115473

11.22

1.446655

24487206

21.7

0.2772643

18120731

98

21 2445

INDEX 2614.689

CHINA SHIPBUIL-A

4.74

2.597403

CHINA SOUTHERN-A

4.61

1.99115

31554309

NINGBO PORT CO-A

2.52

0.3984064

13743425

CHINA STATE -A

3.23

-0.6153846

44423883

PANGANG GROUP -A

4.18

-0.2386635

56627737

HIGH

2441.48

CHINA UNITED-A

3.58

3.768116

118427037

PETROCHINA CO-A

9

0.7838746

15236164

LOW

2375.09

CHINA VANKE CO-A

9.44

0.1060445

57823353

PING AN INSURA-A

45.94

3.702032

35300976

CHINA YANGTZE-A

6.65

0.3016591

8939529

POLY REAL ESTA-A

11.56

-1.867572

52728892

CITIC SECURITI-A

12.94

-0.07722008

77207000

QINGDAO HAIER-A

11.29

1.895307

11259108

CSR CORP LTD -A

4.33

0

23856066

QINGHAI SALT-A

34.02

0.9495549

6915316

52W (H) 3140.102 (L) 2254.567

2370

17-Jul

19-Jul

FTSE TAIWAN 50 INDEX NAME ACER INC ADVANCED SEMICON

PRICE DAY %

Volume

NAME

PRICE DAY %

Volume

NAME

PRICE DAY %

27.6

0.3636364

69687573

FORMOSA PLASTIC

79.6

1.401274

6536812

TAIWAN MOBILE CO

24.05

0.8385744

19007573

FOXCONN TECHNOLO

111

3.738318

9737071

TPK HOLDING CO L

342.5

ASIA CEMENT CORP

37.35

0.4032258

4835092

FUBON FINANCIAL

30.85

1.147541

9345263

ASUSTEK COMPUTER

268.5

3.269231

3760854

HON HAI PRECISIO

88.3

1.494253

16462637

AU OPTRONICS COR

10.35

-1.895735

83527924

HOTAI MOTOR CO

193

2.116402

474355

CATCHER TECH

175.5

3.846154

12527264

HTC CORP

297

1.365188

8137589

WISTRON CORP

CATHAY FINANCIAL

28.95

0.8710801

10647776

HUA NAN FINANCIA

16.55

0.6079027

4779645

YUANTA FINANCIAL

CHANG HWA BANK

16

1.265823

9248065

LARGAN PRECISION

587

2.264808

1313927

YULON MOTOR CO

CHENG SHIN RUBBE

79.3

1.40665

6118647

LITE-ON TECHNOLO

37.75

1.752022

2699933

CHIMEI INNOLUX C

10.4

1.463415

42254141

MEDIATEK INC

248

0.8130081

4381440

CHINA DEVELOPMEN

7.08

1.870504

36793005

MEGA FINANCIAL H

22.9

0

19825630

CHINA STEEL CORP

27.05

0

25613602

NAN YA PLASTICS

54.9

2.808989

5271388

CHINATRUST FINAN

17.7

2.017291

27948553

PRESIDENT CHAIN

156.5

0.3205128

905750

CHUNGHWA TELECOM

89.6

0.2237136

7112028

QUANTA COMPUTER

75.4

5.602241

18396168

COMPAL ELECTRON

26.9

2.868069

14345384

SILICONWARE PREC

29.5

3.690685

6405841

DELTA ELECT INC

92.2

3.828829

7968025

SINOPAC FINANCIA

11.7

2.631579

22509571

FAR EASTERN NEW

32.6

0.1536098

6418969

SYNNEX TECH INTL

69.5

0.433526

2520422

FAR EASTONE TELE

71.2

0.140647

4423087

TAIWAN CEMENT

36.85

2.21914

9910509

TAIWAN COOPERATI

FIRST FINANCIAL

17.95

0.8426966

13139293

17.85

0.5633803

5094123

FORMOSA CHEM & F

77.2

1.445466

3579860

TAIWAN FERTILIZE

65.1

2.681388

3320967

FORMOSA PETROCHE

83.4

0.968523

1414760

TAIWAN GLASS IND

27.5

1.476015

2426715

96.5 -0.5154639

Volume 5349106

1.934524

6666560 62113192

TSMC

77.5

3.609626

UNI-PRESIDENT

48.8

0.6185567

7908823

UNITED MICROELEC

12.5

2.880658

30809298

35.25

0.8583691

10472515

13.7

1.107011

10954030

49.5

0.2024291

2276291

MOVERS

46

8

8 4910

INDEX 4937.71 HIGH

4903.08

LOW

4803.56

52W (H) 6247.96 (L) 4643.05

4800

17-Jul

19-Jul

July 20, 2012 business daily | 13

MARKETS GAMING STOCKS - DAILY PERFORMANCE (Hong Kong Stock Exchange) GAlAXy ENtErtAINMENt

Max 19.3

Average 19.075

MElco croWN ENtErtAINMENt

Min 18.82

19.3

27.0

19.2

26.8

19.1

26.6

19

26.4

18.9

26.2

18.8

last 19.26

SANDS cHINA ltD

Average 23.639

Max 23.85

Max 26.9

Average 26.802

Min 26.05

Min 23.25

last 23.55

PRICE

26.0

Max 11.36

Average 11.214

Min 11.18

WyNN MAcAU ltD 16.7

23.6

14.5

16.6

23.5

14.4

23.3

14.3

23.2

16.5 16.4 16.3

14.2 Max 14.24

Average 14.418

DAY %

YTD %

(H) 52W

(L) 52W

0.712139757

-8.714069592

111.3799973

77.27999878

BRENT CRUDE FUTR Sep12

105.98

0.779764169

1.010293557

124.1999969

88.90999603

GASOLINE RBOB FUT Aug12

289.18

0.291322744

7.621883141

326.7099857

243.0099964

GAS OIL FUT (ICE) Sep12

913

0.939745716

1.585535466

1046.5

798.5

NATURAL GAS FUTR Aug12

2.99

0.571812984

-8.73015873

4.890000343

2.174999952

289.58

0.632471504

1.832120125

332.949996

250.8399963

Gold Spot $/Oz

HEATING OIL FUTR Aug12

1580.35

0.1705

0.9866

1921.18

1522.75

Silver Spot $/Oz

27.3222

0.8851

-1.8423

44.2175

26.085

Platinum Spot $/Oz

1415.25

0.138

1.488

1915.75

1339.25

Palladium Spot $/Oz

581.08

0.387

-11.0819

848.37

537.54

LME ALUMINUM 3MO ($)

1909

0.262605042

-5.495049505

2675.25

1832.25

LME COPPER 3MO ($)

7637

0.552995392

0.486842105

9905

6635

LME ZINC

1868

0.160857909

1.246612466

2539.5

1718.5

3MO ($)

LME NICKEL 3MO ($)

16100

0

-13.94975949

25195

15770

15.645

0.708078532

4.091816367

18

13.95499992

795

1.370736372

35.60767591

796

499

WHEAT FUTURE(CBT) Sep12

914.25

1.217824523

30.28143926

921.25

606.75

SOYBEAN FUTURE Nov12

1641.5

1.327160494

36.30890596

1644.5

1115.75

COFFEE 'C' FUTURE Sep12

182.95

0.439198463

-21.89967983

288.8500061

SUGAR #11 (WORLD) Oct12

23.1

0.653594771

1.182654402

COTTON NO.2 FUTR Dec12

72.52

0.820241902

-17.44080146

AGRICULTURE ROUGH RICE (CBOT) Sep12

Min 14.24

16.2

last 14.32

Max 16.62

Average 16.455

Dec12

PRICE MAJORS

ASIA PACIFIC

CROSSES

AUD GBP CHF EUR JPY MOP HKD CNY INR THB SGD TWD PHP IDR AUDJPY EURCHF EURGBP EURCNY EURMOP EURJPY HKDMOP

last 16.4

Min 16.28

DAY %

YTD %

(H) 52W

1.9493 0.727 -4.1484 -5.3159 -2.1875 0.1327 0.1444 -1.2224 -4.1413 -0.4104 3.1586 1.0277 5.006 -4.1332 -4.1619 1.3131 6.3187 3.7989 5.5831 3.2746 0.0097

(L) 52W

1.1081 1.6618 0.9873 1.4549 84.18 8.0449 7.8113 6.453 57.3275 31.96 1.3199 30.716 44.35 9662 88.637 1.24736 0.88861 9.3616 11.6793 114.18 1.0311

0.9388 1.5235 0.7071 1.2163 75.35 7.9823 7.7526 6.2769 43.855 29.63 1.1992 28.764 41.57 8458 72.057 1.00749 0.78301 7.7719 9.7216 95.6 1.0288

(H) 52W

(L) 52W

2.55

1.593625

15.90909

3.25

1.88

1846933

150.0999908

CROWN LTD

8.58

0.2336449

6.056858

9.29

7.45

1540677

26.03999901

19.23999977

AMAX HOLDINGS LT

0.065

4.83871

-25.28735

0.119

0.055

7640521

102.25

64.61000061

BOC HONG KONG HO

23.7

1.716738

28.80435

24.45

14.24

14957421

World Stock MarketS - Indices PRICE

YTD %

0.9701 0.3332 0.3065 0.3106 0.4197 0.0063 0.0052 -0.0534 0.2484 0.0631 0.3103 0.0601 -0.2036 -0.074 -0.5389 -0.005 0.0191 -0.1914 -0.3243 0.1036 0

ARISTOCRAT LEISU

NAME

PRICE

CENTURY LEGEND

COUNTRY

DAY %

1.0408 1.5656 0.9787 1.2272 78.63 7.989 7.7562 6.3729 55.3575 31.68 1.2569 29.971 41.75 9460 81.838 1.20102 0.78386 7.8365 9.8046 96.5 1.03

MACAU RELATED STOCKS

(H) 52W

(L) 52W

DOW JONES INDUS. AVG

US

12908.7

0.8055888

5.656945

13338.66016

10404.49

NASDAQ COMPOSITE INDEX

US

2942.6

1.118885

12.9532

3134.17

2298.89

FTSE 100 INDEX

GB

5689.7

0.06911993

2.107224

5989.07

4791.01

DAX INDEX

GE

6704.51

0.3005496

13.66754

7382.8

4965.8

NIKKEI 225

JN

8795.55

0.788496

4.02349

10255.15

8135.79

DAY % YTD %

VOLUME CRNCY

0.242

0

5.217389

0.38

0.204

0

3.03

1.337793

8.214288

3.99

2.3

105000

CHINA OVERSEAS

17.56

-1.348315

35.28506

19.16

9.99

31578548

CHINESE ESTATES

8.97

0

-28.24

13.68

8.3

197000

CHOW TAI FOOK JE

9.21

-0.2166847

-33.83621

15.16

8.55

5857800

EMPEROR ENTERTAI

1.42

-0.6993007

27.92793

1.84

0.97

1310000

FUTURE BRIGHT

1.02

0.990099

142.8572

1.09

0.3

1206000

GALAXY ENTERTAIN

19.26

3.548387

35.25281

24.95

8.69

12321000

HANG SENG BK

107.6

0.9380863

16.76614

124.3

84.4

1572533

HOPEWELL HLDGS

22.35

0.6756757

12.53776

24.903

18.56

945500

HSBC HLDGS PLC

66.9

0.5259204

13.38983

78.6

56

20663082

HUTCHISON TELE H

3.74

1.630435

25.08361

3.86

2.44

2156000

LUK FOOK HLDGS I

16.7

1.334951

-38.37638

46.15

14.7

3675000

MELCO INTL DEVEL

5.7

0.7067138

-1.213171

10.76

4.3

1001000 2792400

CHEUK NANG HLDGS

HANG SENG INDEX

HK

19559.05

1.658898

6.100881

22808.33

16170.35

CSI 300 INDEX

CH

2424.322

0.4136543

3.349903

3119.542969

2254.567

MGM CHINA HOLDIN

11.2

0.1788909

16.7621

17.183

7.6

TAIWAN TAIEX INDEX

TA

7148.57

1.411821

1.081573

8819.929688

6609.11

MIDLAND HOLDINGS

4.05

6.020942

2.426704

5.217

2.887

7640000

KOSPI INDEX

SK

1822.96

1.562752

-0.1522686

2174.73

1644.11

NEPTUNE GROUP

0.17

6.918239

53.15315

0.205

0.08

45845000

S&P/ASX 200 INDEX

AU

4206.693

2.015084

3.700976

4612.2

3765.9

NEW WORLD DEV

10.12

2.42915

61.66134

10.96

6.13

26471513

SANDS CHINA LTD

23.55

1.072961

7.28929

33.05

14.9

12131750

SHUN HO RESOURCE

1.13

0

13

1.32

0.82

0

SHUN TAK HOLDING

2.72

0.3690037

6.286192

4.668

2.241

849855 3476566

JAKARTA COMPOSITE INDEX

11.1

last 11.2

14.6

90.51

NAME

11.2

23.8

WTI CRUDE FUTURE Aug12

CORN FUTURE

11.3

CURRENCY EXCHANGE RATES

NAME

METALS

last 26.25

11.4

SJM HolDINGS ltD

Commodities ENERGY

MGM cHINA HolDINGS

ID

4096.196

0.3567443

7.17437

4234.734

3217.951

FTSE Bursa Malaysia KLCI

MA

1644.6

-0.02431611

7.438934

1647.94

1310.53

NZX ALL INDEX

NZ

776.692

0.2308676

6.425282

806.015

700.441

SJM HOLDINGS LTD

14.32

-0.6934813

14.50929

20.711

10.079

PHILIPPINES ALL SHARE IX

PH

3444.84

-0.5732098

13.12955

3527.48

2695.06

SMARTONE TELECOM

16.02

-0.249066

19.19643

18.5

9.8

2216567

HSBC Dragon 300 Index Singapor

SI

578.59

0.54

16.57

na

na

WYNN MACAU LTD

16.38

-0.9673519

-16

27.48

14.807

12212860

STOCK EXCH OF THAI INDEX

TH

1214.16

-0.4901077

18.41768

1247.72

843.69

HO CHI MINH STOCK INDEX

VN

428.38

2.280161

21.85465

492.44

332.28

Laos Composite Index

LO

996.61

-0.113256

10.80092

1083.92

876.33

Shanghai Shenzhen Composite index is listing the biggest companies by market capitalization. All data supplied by Bloomberg unless otherwise indicated.

ASIA ENTERTAINME

3.35

-4.285714

-43.02721

10.8692

3.21

164072

BALLY TECHNOLOGI

47.34

0.02112825

19.66633

49.32

24.74

247820 6113

BOC HONG KONG HO

2.87

0

19.72364

3.15

1.81

GALAXY ENTERTAIN

2.424

0

29.62567

3.24

1.08

2800

INTL GAME TECH

15.59

1.036941

-9.360469

19.15

13.12

2133794

JONES LANG LASAL

70.79

0.3259637

15.55665

94.5

46.01

556459

LAS VEGAS SANDS

39.82

-0.6982544

-6.810203

62.09

36.08

9137377

MELCO CROWN-ADR

10.14

1.501502

5.405407

16.15

7.05

5287912

MGM CHINA HOLDIN

1.47

0.6849315

23.3539

2.2131

1.0025

500

MGM RESORTS INTE

10.15

0.9950249

-2.684567

16.05

7.4

13450950

SHUFFLE MASTER

346464

15.51

-0.1930502

32.33788

18.77

7.35

SJM HOLDINGS LTD

1.84

-1.604278

14.45827

2.6037

1.2624

400

WYNN RESORTS LTD

96.29

-1.099014

-12.85184

165.4931

94.52

5189043

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business daily July 20, 2012

Opinion

Revolutionising Arab economies Sinan Ulgen

Visiting scholar at Carnegie Europe and chairman of the Istanbul-based EDAM think tank

T

he ongoing showdown in Egypt between the country’s Islamists and its military rulers is a clear reminder of how difficult democratic transitions in the Arab world are likely to be.

Obviously, failure to reach a powersharing agreement will prolong political instability. But the resulting economic inaction would be just as damaging to the consolidation of democratic rule.

Emerging Arab leaders, from Islamists to re-invented former regime officials, are keenly aware of the need to improve their countries’ economic prospects. They know full well that their popularity can be sustained only if they are able to deliver growth, employment, and higher living standards. This would be a difficult challenge under any circumstances – and is all the more daunting against the backdrop of the Arab Spring’s destabilisation of the economic systems across the Middle East and North Africa.

Even in countries like Tunisia and Egypt, where the transition to democracy is more advanced, political uncertainty has tended to plague economic achievements. For the first time since 1986, Tunisia’s economy shrank in 2011, by 1.8 percent.

Unemployment reached 18 percent last year, up from 13 percent in 2010. Meanwhile, the Egyptian economy contracted by 0.8 percent, and one million Egyptians lost their jobs. Egypt’s foreign-investment inflows have also dried up, falling from US$6.4 billion in 2010 to a mere US$500 million in 2011.

The combination of these negative trends is affecting these countries’ fiscal as well as external balances.

Egypt’s budget deficit reached 10 percent of GDP, while its foreignexchange reserves have fallen to US$15 billion – barely enough to cover the country’s import bill for the next three months. In Tunisia, too, the budget deficit has widened sharply in the wake of the revolution, rising from 2.6 percent of GDP in 2010 to 6 percent in 2011.

Window for engagement This rapid economic deterioration, combined with the high expectations raised by the onset of political transition, is creating a sense of urgency. Emerging political actors feel compelled to develop more detailed economic programmes and to address their populations’ growing material grievances. For example, whereas the Islamists had essentially focused on political themes, highlighting participation, inclusiveness, and democratic reforms, the recent election campaigns witnessed a rhetorical shift to economic aspirations.

Overall, the emerging political players – particularly the Islamist parties – have adopted a rather conciliatory tone regarding engagement with

international actors. These parties’ international engagement with the economic programmes are by and new Arab leadership, which should large pro-market, emphasising the incorporate short-, medium-, and private sector’s role in driving growth long-term goals. and the need to attract foreign capi- Short-term goals must have priortal. The state is seen as a vehicle for ity, because many Islamist parties ensuring social justice, and there are are being pressed to produce posscant references to sharia principles. itive results within a single elecBoth in Tunisia and Egypt, for ex- toral cycle. The new governments ample, Islamist politicians have given will face the immediate challenge assurances that the economically of creating jobs, for which the critical tourism sector will not be only available recipe is investhindered by restrictions related to ment in large-scale public-works Islamic law. The Islamists’ economic projects. This type of government programmes also foresee a role for spending can create labour-inteninternational institutions in helping sive jobs that will help to stem ristheir countries to overcome the chal- ing unemployment. lenges that they face.

Indeed, whereas resistance to for- Development priorities eign intervention and assistance The international has been strong community can with respect help the Arab to democratic governments to reforms, new launch and susArab leaders The West stands tain such initiaseem more retives in several ceptive to a partto gain in myriad ways ways. First, it nership with the can increase the West on eco- from a solid partnership amount of promnomic objecised financial tives. Economic with the Arab world assistance.

It weakness thus to improve its societies’ can also provide provides an untechnical exprecedented pertise to Arab opportunity for economic future

policymakers on debt management.

Without first-rate expertise in debt management, an economy implementing large-scale public outlays risks crowding out private investment through overreliance on domestic savings.

Finally, the international community can help Arab governments to establish a secure and predictable legal and regulatory framework for public-private partnerships for large-scale infrastructure projects.

International actors, jointly with Arab governments, can then help to market these opportunities, allowing Arab economies to benefit from infrastructure-focused long-term international financing.

Only a combination of these options would allow Arab economies to create jobs in the short term, while avoiding the risks of destabilising fiscal imbalances or a lack of financing for private-sector investment.

The West, for its part, stands to gain in myriad ways from a solid partnership with the Arab world to improve its societies’ economic future. Even in the midst of a protracted currency crisis, European governments can surely sign on to an agenda that prioritises transfers of know-how over cash infusions. © Project Syndicate

editorial council Paulo A. Azevedo, Tiago Azevedo, Duncan Davidson, Emanuel Graça, Cris Jiang Founder & Publisher Paulo A. Azevedo | pazevedo@macaubusinessdaily.com Editor-in-Chief Tiago Azevedo DEputy Editor-in-Chief José I. Duarte Newsdesk Vitor Quintã (Chief Reporter) Tony Lai, Xi Chen Creative Director José Manuel Cardoso Designer Janne Louhikari Contributors Frederico Rato, Pereira Coutinho, Ricardo Siu, Rose N. Lai, Zen Udani Photography Carmo Correia, John Si, Manuel Cardoso Assistant to the publisher Laurentina da Silva | ltinas@macaubusinessdaily.com office manager Elsa Vong | elsav@macaubusinessdaily.com Agencies Bloomberg, Reuters, AFP, Xinhua, Lusa, Project Syndicate Printed in Macau by Welfare Ltd.

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July 20, 2012 business daily | 15

OPINION

China’s 50-Cent feud leads wires to a rumble (Part 2) Business Leading reports from Asia’s best business newspapers

Economic Times

Adam Minter

Shanghai correspondent for the World View blog

The pharmaceutical industry has agreed in principle to enforce a code that will restrict them from offering gifts or other sops to doctors in order to prescribe their medicines, according to Indian Pharmaceutical Alliance (IPA).”We have expressed our in-principle agreement for the enforcement of the code as actions of a few companies have been blemishing the image of the entire pharmaceutical industry,” IPA Secretary General D G Shah told. Various industry bodies like Indian Pharmaceutical Alliance (IPA), Organisation of Pharmaceutical Producers of India (OPPI) and Indian Drugs Manufacturers Association (IDMA) attended the meeting.

Business World Plans for Singaporean carrier Tiger Airways Holdings Ltd to buy into the locally-operated South East Asian Airlines, Inc. (SEAir) have been delayed as due diligence has taken longer than expected, an official yesterday said. The deal, nevertheless, is seen to be closed by end-July, roughly a month later than the target. The acquisition represents 40 percent of the issued and outstanding shares of SEAir or equivalent to “US$7 million minus the liabilities.” An initial sum of US$2 billion will be paid on the closing of the transaction.

Korea Herald LG Uplus, the smallest of Korea’s telecom companies, has launched a cloud platform where users can access games that can be played on personal computers and smartphones. In a media presentation on Wednesday, LG Uplus vice president Chun Byungwook unveiled the “C-Games” cloud platform with its strategic partners ― Korea Game Developers Association, Ubitus, a Taiwanbased software developer for cloud platforms, and Nvidia, a U.S. graphic processors developer. This marks the first time for a Korean company to venture into the cloud-based content business.

Business Times OCBC, Singapore’s second-biggest bank, and its insurance unit have agreed to sell their combined 18.1 percent stake in Fraser and Neave and an 8 percent stake in brewer Asia Pacific Breweries for a total of S$3.22 billion (US$2.55 billion) to companies linked to Thai billionaire Charoen Sirivadhanabhakdi. OCBC Group would make a post-tax gain of about S$1.15 billion from the deal, it said. In a separate announcement, Thai Beverage, which Charoen controls, said it has bought a 22 percent stake in beverage-to-property firm F&N for around S$2.8 billion or S$8.88 a share.

A

t this point, Wu’s friends – if they can be called that – decide to step in and protect him. The rumble evolves into a debate on Wu’s ethics, Zhou’s ethics and whether morality trumps the law – all salted with a rich selection of Beijing profanity.

This goes on for over 10 minutes until, quite suddenly, a bearded gnome-like figure – better known as the artist, activist and provocateur Ai Weiwei – enters the picture and makes a grab for Professor Wu’s ear. The crowd howls, delighted at the appearance of the international celebrity, and then does its best to restrain him from taking off Wu’s head.

It’s not easy: Ai raises his arm, threatening to tomahawk the spectacled professor with what looks like a smart phone. When he realises he can’t get close enough to do it, he breaks away from his impromptu guards, makes an end run around the crowd and dashes after Wu, who is in full retreat with his friends. Ai is twice restrained in the process.

Ai, too, has a history with Wu Danhong and the 50-cent crowd. Last August, after Ai was released from an 81-day detention for alleged tax evasion (though it was widely believed to be in connection with his activism and recent protests), Wu offered an interview to the Global Times, the nationalistic offspring of the official Communist Party mouthpiece, People’s Daily. His quote, and the paper’s commentary, was consistent with what other 50-Centers were saying – and continue to say – about Ai: ‘Ai’s case has been used by the Westerners,’ Wu Danhong, an assistant professor at the China University of Political Science and Law, told the Global Times. Wu is another critic who says Ai may be

in cahoots with an unseen international conspiracy. ‘By condemning China’s repression of dissidents in the name of democracy, foreign countries that don’t want a stronger China intentionally attempt to descend China into turmoil by hyping Ai’s case.’

Into the fray Was that the reason Ai looked ready to rip off Wu Danhong’s ear? There’s no way to tell.

Nonetheless, when interviewed this week by the U.K.’s Daily Telegraph, Ai downplayed his role in the fight (to the point of contradicting video evidence): “I’m not the kind of person to beat people up.”

For all his antics, Ai is obviously aware that many of his supporters – especially overseas ones – will be uncomfortable with evidence that he behaved violently toward one of his critics. That is not, after all, how internationally renowned dissidents are supposed to go about their business. A brief scan of the thousands

The two parties have obviously different class positions, factions, and viewpoints.

They didn’t fight for themselves, but for the factions they represent

of tweets on Sina Weibo in the wake of the park incident (it’s been a top trending topic for most of the last five days), reveals a Chinese public willing to forgive this transgression, if only because it involves Wu Danhong. “Beating someone up is wrong,” tweeted a microblogger in Hangzhou, an affluent city in Zhejiang province. “But beating up Wu is an exception. Fatty Ai [a nickname used for Ai because his name is a censored term on Sina Weibo] is so handsome.” A microblogger in Fujian province echoed that sentiment: “Fatty Ai looked so happy, but beating others is not right. Of course, if you want to beat him [Wu], that’s OK.” Still, neither China’s microbloggers, nor its newspaper editorialists, view this incident positively. In a Tuesday editorial, Cao Lin, the independent-minded chief commentator for Beijing-based China Youth Daily, sees it as the inevitable outcome of a divided society: First, the problem is a breach

in the social fabric, and Weibo is just an amplifier of it.

Hostility was fomented online and then came to life in reality. The gap between rich and poor, the different class positions, different ideological positions, and identities were divided and then sharpened into irreconcilable differences. The two parties have obviously different class positions, factions, and viewpoints. They didn’t fight for themselves, but for the factions they represent.

For now, the only faction that appears to have suffered from the battle is the one represented by Zhou Yan, the journalist. According to the Beijing Cream blog, she’s rumoured to be spending five days in detention. Meanwhile, Wu Danhong remains free to tweet. As for Ai Weiwei, he was last seen Friday afternoon, taking a stroll in Chaoyang Park.

Bloomberg View [For editorial reason, this article is published in two parts. The first part was published in yesterday’s edition]

16 |

business daily July 20, 2012

CLOSING Roubini sticks to prediction

Deutsche Bank considering job cuts

Economist Nouriel Roubini is standing by his prediction for a global “perfect storm” next year, highlighting five factors that could derail the global economy.

Those factors are a worsening of the debt crisis in Europe; tax increases and spending cuts in United Sates that may push the world’s biggest economy into recession; a hard landing for China’s economy; further slowing in emerging markets; and a military confrontation with Iran. “Next year is the time when the can becomes too big to kick it down [the road]...then we have a global perfect storm,” Mr Roubini told Reuters.

Deutsche Bank AG, Europe’s biggest bank by assets, is considering cutting about 1,000 positions at its investment bank as revenue declines, a person with knowledge of the matter told Bloomberg. The cuts will be mostly outside Germany, where the firm’s investment banking operations are focused, said the person.

Armin Niedermeier, a spokesman for the Frankfurt-based bank, declined to comment on potential job losses. The bank may save 2.5 billion euros (US$3.01 billion), led by job reductions, costcutting and lower pay at the investment bank, analysts said. The unit could trim as much as 20 percent of its staff.

Nokia jumps most since 2001 Even as mobile phone maker announced losses widened to US$1.7 billion

N

okia Oyj jumped the most in a decade after sales of its flagship smartphone exceeded analysts’ estimates, signalling the former global handset leader is making progress with a plan to stem revenue and marketshare declines.

Sales of the Lumia phone increased to 4 million units in the second quarter from more than 2 million in the previous period, Nokia said yesterday. The Espoo, Finland-based company, which lost its 14-year run as the phone-industry leader this year, still projected continuing losses at its handset business.

Rising Lumia sales are a bright spot for a company struggling to return to profitability as it reported a fifth consecutive quarter of plunging revenue. Chief executive officer Stephen Elop is betting on the Lumia running Microsoft Corp. software to halt gains by Apple Inc.’s iPhone and handsets using Google Inc.’s Android software, including Samsung Electronics Co.’s Galaxy series.

“It’s good to see Nokia is still hanging in there,” Riikka Tuominen, a credit analyst at Nordea Bank AB in Helsinki, said. Still, “it’s hard to write off the uncertainty.”

Nokia rose as high as 1.62 euros (US$1.98) for the biggest intraday jump since April 2001. The stock, which climbed before the earnings report, traded at 1.60 euros at 3:43 pm. Helsinki time. The stock had slid 64 percent this year through yester-

Sales of Nokia’s Lumia phone increased to 4 million units in Q2

day to the lowest level since 1994.

Nokia has lost about 95 billion euros (US$117 billion) in value since Apple introduced the iPhone in 2007 and now has a market capitalization of 6 billion euros.

Elop’s overhaul Mr Elop, a former Microsoft executive who took over in 2010, has announced more than 20,000 job cuts and shuttered production and research sites as part of his turnaround plan. He abandoned Nokia’s home-grown operating

system to bet on Redmond, Washington-based Microsoft’s Windows Phone software.

“The market is reacting positively because of the Lumia numbers,” said Sami Sarkamies, a Nordea analyst in Helsinki. “Their cash position was also strong.”

Analysts on average projected that Nokia would ship 3.8 million Lumia phones, Mr Sarkamies said.

Nokia Siemens Networks, the network-gear venture Nokia owns with Siemens AG, returned to profit when excluding some items. Adjusted operating profit at the business was 27

million euros after a loss of 147 million euros in the first quarter.

Nokia, whose long-term debt has a junk status by the three largest rating services, said the adjusted operating loss at its devices business was equivalent to 9.1 percent of revenue. The margin for the current quarter will be within a range of 4 percentage points more or less than that level, Nokia said.

The second-quarter net loss widened to 1.41 billion euros from 368 million euros. Nokia reported net cash of 4.2 billion euros.

Bloomberg

Spain’s borrowing costs increase Demand weakens at debt sale Emma Ross-Thomas

S

pain sold 2.98 billion euros (US$3.66 billion) of notes, in line with its maximum target, but was forced to pay higher interest rates as demand for the securities weakened. The country’s bonds fell after the sale.

The Madrid-based Treasury sold notes due in 2014 at an average yield of 5.204 percent, compared with 4.335 percent when they were last sold on June 7. It sold five-year notes at 6.459 percent, compared with 6.072 percent on June 21 and seven-year securities at an average yield of 6.701 percent.

Demand for the two-year debt was 1.9 times the amount sold, compared with 4.26 last month and the bid-to-cover for the 2017

securities was 2.06, compared with 3.44 in June, the Madrid-based Treasury said. It set a maximum target of 3 billion euros for the sale.

“Nothing looks good,” Ioannis Sokos, a fixed-income strategist Investors remain wary about whether Spain can rebuild its economy

at BNP Paribas in London, said.

“Spanish banks have been much less aggressive in buying domestic bonds” as the effect of the European Central Bank’s three-year loans fades, he added.

“They [Spain] sold what they wanted to sell, that’s about the only good thing about it,” said Monument

Securities analyst Marc Oswald.

Spain auctioned debt as lawmakers in Madrid debated spending cuts in a Parliament protected by metal barriers and police. In Berlin, German legislators prepared to ratify their participation in the 100 billioneuro bailout of Spanish banks.

The benchmark 10-year bond yield jumped above 7 percent after the sale from 6.962 percent yesterday to 7.03 percent at noon time in Madrid.

Spanish banks, which were among the main beneficiaries of the ECB’s three-year emergency loans in December and February, increased their holdings of domestic debt in the first quarter, before scaling back in April and May, Treasury data show.

They held 28 percent of Spain’s outstanding debt in May, compared with 29 percent in April and 17 percent at the end of last year. Nonresidents cut their holdings to 37 percent from 50 percent in the five months through May. Reuters