Shop site Taobao ends local store credit sales From July 8, locals will no longer be able to buy credits for popular shopping website Taobao in Macau convenience stores. Hong Kong-based Taodot says it will stop providing payment services. Some users fear the move will kill their online shopping habit but others already prefer to go through offline middlemen.
Year I - Number 55 Friday June 15, 2012 Editor-in-chief: Tiago Azevedo Deputy editor-in-chief: José I. Duarte MOP 6.00
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Escape velocity: AirAsia route back on Page 7
Minimum wage: the brawl goes on
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ith academic research on a possible statutory minimum wage for all cleaning and security staff yet to begin, workers and employers remain miles apart on the idea. The Standing Committee for the Coordination of Social Affairs, which brings together representatives from workers, employers and the government, agreed to commission a study almost 16 months ago But the authorities are not yet sure when it will begin, even four months after Secretary for Economy and Finance, Francis Tam Pak Yuen, gave the green light to the contract. Research that ‘will serve as reference for the government in formulating the future minimum wage
system’ is set to take at least one year. Even though representatives of workers and employers agree on the introduction of a minimum wage for cleaning and security staff, there’s no consensus on a citywide minimum wage such as the one in Hong Kong. The Macau Federation of Trade Unions criticises the government for rejecting a proposal to set up a schedule for discussion while the study is being carried out. But the president of the Association of Property Agents and Realty Developers, Ung Choi Kun, warns that small- and medium-sized enterprises must also be protected.
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Wastewater boss ‘won’t risk’ return
18950
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18900
he chief executive officer of Waterleau NV Group says he will not come to Macau because he fears being arrested in connection with Ao Man Long’s corruption scandal. But Luc Vriens denied all charges of having bribed the former official to get contracts for wastewater treatment plants, while laying in blame on ‘local agent’ Pedro Chiang.
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Tour growth slows down
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isitor arrivals via package tours grew by 28 percent year-on-year in April but the expansion was much slower than in the first quarter, official data show. Nonetheless the president of Macau Travel Council, Andy Wu Keng Kuong, expects a ‘steady’ increase in the number of tourists this year. However, the market remains heavily reliant on mainland Chinese visitors, he warned. Page 4
%Day
SWIRE PACIFIC-A
0.93
HONG KG CHINA GS
0.87
BANK OF COMMUN-H
0.81
NEW WORLD DEV
0.34
HENGAN INTL
0.26
CHINA RES ENTERP
-2.78
CHINA PETROLEU-H
-2.81
SANDS CHINA LTD
-4.32
CHINA CONST BA-H
-4.64
ESPRIT HLDGS
-12.43
Source: Bloomberg
‘Nice guy’ Leven at LVS until at least 2014
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M
ichael A. Leven, president and chief operating officer of Las Vegas Sands Corp. has signed a new contract that keeps the 74-year-old in his current post until at least the end of 2014. Mr Leven is credited by some analysts with helping to bring stability and management continuity to LVS, which operates casino resorts in Macau, Singapore and the United States but has ambitions for global expansion. Page 6
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macau
Waterleau chief denies bribery, blames Pedro Chiang instead The wastewater plant operator’s chief says he was tricked by Pedro Chiang and will not be showing his face in Macau Vítor Quintã
vitorquinta@macaubusinessdaily.com
T
he chief executive of the Waterleau NV group, Luc Vriens, has said he will not return to Macau, while denying allegations that he bribed Ao Man Long when Mr Ao was a government secretary, and blaming his “local agent”, Pedro Chiang. Mr Vriens fears arrest in Macau, he told the Belgian newsletter Incidences. “It’s definitely a risk I will not take,” he said. There is no extradition treaty between Macau and Belgium. His remarks were published two days before a court judgement accused him of having bribed Mr Ao, the Transport and Public Works secretary at the time, to get four contracts together worth 375.5 million patacas (US$47 million) for wastewater treatment plants on Coloane and in the Zhuhai-Macau Cross-Border Industrial Park. The written judgement says Waterleau’s bid scored only third among five bidders for the first contract, but still got it, owing to the intervention of Mr Ao, whose praise for the company was “essential” in securing the three other contracts. The head of Waterleau called the accusation “absolutely unacceptable” and said he had made a business agreement “in good faith with a middleman of good standing [Pedro Chiang] … whom I was forced to follow in order to enter the market”.
In a written statement to the Commission Against Corruption in June 2007, Mr Vriens said it was the former secretary who had introduced him to Mr Chiang, who was sentenced in absentia last year to six years and 10 months in prison in a related case.
Opening doors “We contacted GDI [the Infrastructure Development Office] to present our offer [for the construction of the cross-border treatment wastewater plant] and they informed us that the decision was up to Mr Ao Man Long,” Mr Vriens said.
MOP375.5 M Combined value of the four contracts granted to Waterleau
business as usual
Time to rethink the bus problem
Paulo A. Azevedo
Waterleau ‘fulfilled all the legal requirements of the tenders in Macau’, chief executive Luc Vriens said
“As I already knew Mr Ao Man Long since before 1999, I contacted him directly and I set a meeting at his office,” Mr Vriens added. He was emphatic, however, the meeting happened at a point when he did not know about Mr Ao’s corruption. “I believe no one knew at that time, [including] the chief executive [Edmund Ho Hau Wah], who kept the secretary in charge until the moment of his detention.” Mr Vriens said Mr Ao had introduced him to Mr Chiang “and suggested that he would be a good local partner”. He said: “After that I met with Mr Pedro again several times to discuss the creation of Waterleau Macau Ltda.” Waterleau Macau is the company that ran the plants. “As in many countries, you cannot bid for this kind of market without the services of a local agent,” he said.
pazevedo@macaubusiness.com
T
he traffic problem in Macau is not caused by having too many buses on the road. Apart from those run by the three public transport companies, there are casino shuttles and the private buses. What causes the traffic snarls is that most of their drivers are not skilful enough and operate under a kind of law of the jungle. Some of the chaos is created by privatesector buses. They tend to park anywhere, always travel in the right lane and show absolutely no respect to anyone else on the road. We could blame the gaming operators, but they do not run their own bus fleets. So, who runs these road-hogs, and, most importantly, why will no government department do anything about it? I wonder. Recently, Kou Ngon Seng, a member of the Traffic Advisory Committee, complained that there were no regulations beyond the standard traffic code that could be used to
manage the problem. He said the buses should be regulated independently but the Traffic Bureau has not presented anything to be discussed by the committee that would bring this to reality. I am not surprised. It is difficult to find any good ideas in most government departments. Actually, even the Public Security Police seldom do anything about illegal parking and unlawful driving. It seems their only concern is to give out parking tickets to cars and motorbikes that have not pumped coins into the parking meters. It would be nice to know – if only the police offered the public enough respect to talk about it – whether the traffic brigade was staffed by people with enough knowledge to force everyone on the streets to drive according to the rules. I suppose it is a much easier job to install video cameras to nab speeding motorists.
KEY POINTS Waterleau CEO says he fears arrest in Macau Bribery allegations ‘absolutely unacceptable’ Alleged bribes were payments to ‘local partner’ Pedro Chiang Waterleau Macau unaware of Mr Chiang’s ties with Ao Man Long
“You should have not only local partners but also an agent able to introduce you, to open doors for you. That’s the way it is. You have no choice.” The court judgement says Mr Vriens paid a bribe of almost HK$7 million (US$902,000) to a company controlled by Mr Chiang and Mr Ao, Best Choice, which also got a 20 percent stake in Waterleau Macau. Mr Ao’s latest conviction entailed the forfeiture of his 20 percent stake in Waterleau Macau Ltda.
‘Front man’ Mr Vriens said those assets were normal payment to Mr Chiang for services rendered. “As commercial agent, he would receive for his services 3 percent of our turnover or 20 percent of the net profits,” Mr Vriens said. He said the company had not known Mr Ao controlled Best Choice. “We could not know at the time that the money paid to Mr Pedro, who seemed to be a big businessman, actually was landing in the pockets of Ao Man Long,” Mr Vriens said. “If this has proven to be, years later, a front man for a corrupt official, one can essentially say: ‘You had ill luck, full stop. You are only guilty of being in the wrong place at the wrong time’,” Mr Vriens said. “[Waterleau] fulfilled all the legal requirements of the tenders and for the projects – all absolutely in accordance with law and businesses ethical rules,” he said. “If I could have imagined what was behind those businesses I would have avoided any business in Macau. My companies were and are doing many projects around the world and I did not have any particular need to go to Macau,” he said.
June 15, 2012 business daily | 3
MACAU
InBrief
Stanley Ho invests in Moza Banco Geocapital Holdings Ltd, an investment company controlled by gaming tycoon Stanley Ho Hung Sun, subscribed last month to a share issue by Moza Banco. The Mozambican bank increased its capital by 283.3 million meticals (US$10.2 million) to 1.2 billion meticals and the head of the board, Prakash Ratilal, said a further injection is planned for September. Geocapital is the bank’s third-biggest shareholder, with a 24.5 percent stake.
Study on minimum wage hangs fire With academic research on a minimum wage yet to begin, workers and employers remain miles apart on the idea
NPC to vote on political reform The final step of the political reform process will be taken between June 26 and 30, during a session of the Standing Committee of the National People’s Congress (NPC). The committee will review two bills sent to it by Chief Executive Fernando Chui Sai On last month. The reforms would add two indirectly elected seats and two directly elected seats to the Legislative Assembly and 100 seats to the committee that elects the chief executive.
Vítor Quintã
vitorquinta@macaubusinessdaily.com
The city already has a minimum wage – but only for employees of cleaning and security companies contracted by the government
I
t has been almost 16 months since the Standing Committee for the Coordination of Social Affairs agreed to commission a study on a statutory minimum wage for all cleaning and security staff. But the research has yet to begin and the government is not sure when it will. At present the city has a minimum wage only for employees of cleaning and security companies contracted by the government. The study is set to take at least one year, so a universal minimum wage is on the back burner. In the meantime, workers and employers are far apart on the issue. In Wednesday’s Official Gazette, Secretary for the Economy and Finance Francis Tam Pak Yuen gave the new coordinator of the standing
committee, Wong Chi Hong, permission to sign the study contract with University of Macau. Four months earlier Mr Wong’s predecessor, Shuen Ka Hung, had been given similar permission, but he left the committee at the end of March. “It takes some time to finish necessary procedures,” a spokesperson for the Labour Affairs Bureau said. “We will continue to closely follow up the study in the future.” The spokesperson had no comment on when the study would begin.
Workers with lower salaries need to be protected, but so do those small and medium enterprises whose financial situation is not good
When the economy grows, everyone should be able to share the fruits of the hard work
Ung Choi Kun, Association of Property Agents and Realty Developers president
Little consensus Macau Chamber of Commerce vice-president Vong Kok Seng and Ella Lei Cheng I, vice-president of the Macau Federation of Trade Unions, are both members of the
Ella Lei Cheng I, Macau Federation of Trade Unions vice-president
standing committee. Mr Vong said he did not expect the study to be ready this year. Ms Lei believes the study may take one to two years. She said that the University of Macau would submit the results in phases and that the first deadline had yet to be set. Both agree with the introduction of a minimum wage for all cleaning and security staff. “There is a need in society and it also shows social improvement,” Mr Vong said. But he rejects the idea of universal minimum wage like Hong Kong’s. Ms Lei said the study was important that but discussions among employers, the government and workers should continue in the meantime. She criticised the government for rejecting a proposal for a schedule for discussions. She believes a universal minimum wage is only fair. “When the economy grows, everyone should be able to share the fruits of the hard work,” she said. The head of the Association of Property Agents and Realty Developers, Ung Choi Kun, said: “Workers with lower salaries need to be protected, but so do those small and medium enterprises whose financial situation is not good.” Mr Ung said a minimum wage “should be considered” but that the proposal “is not a black-and-white issue”. A compromise between workers and employers should be reached, he said. with Tony Lai
Macau present at Africa trade fair Macau will have a special exhibition at the 23rd China Harbin International Economic and Trade Fair from June 15 to 19. The mainland’s official Xinhua news agency said the fair would focus on Africa, with a Heilongjiang-Africa economic and trade cooperation conference. Macau has been trying to promote itself a conduit for trade between China and Portuguese-speaking countries, most of which are in Africa.
Mainland maids in training for Macau Zhuhai employment agencies are already training mainland Chinese housemaids for work in Macau, according to the Portuguese-language Tribuna de Macau, although the requirements are yet to be set. One agency said mainland maids could take up to half of the market. Macau and Beijing are negotiating the import of housemaids from the mainland, and their monthly salary is likely to be at least 3,000 patacas (US$375), the authorities have said.
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business daily June 15, 2012
macau
HOSPITALITY Hotel rooms and workforce The rise in the number of hotels in recent years is naturally associated with a rise in the number of rooms. Several of the newer hotels are bigger that the older ones. Consequently, the number of rooms has been rising fast. The figures for the first four months of this year confirm this trend. By the end of April the number of hotels had risen to 97, six more than a year before, an increase of 6.5 percent. Four of the new hotels have five stars. The number of rooms increased by slightly more than 20 percent. The result is that the average number of rooms per hotel rose from 326 to 363.
0
Package tours dominate arrivals again Visitor arrivals in package tour groups continue to grow in April, but more slowly than in the first quarter Xi Chen
xi@macaubusinessdaily.com
Photo by Manuel Cardoso
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5000 10000 15000 20000 25000 30000 35000 40000
The figures show a neat and direct relationship between the number of stars a hotel has and the number of rooms and beds. The higher the number of stars, the higher the number rooms and beds alike. The statistics less often quoted are those for the number of beds. The graph shows the numbers in 2011 and 2012. The number of beds this year is almost 61,000, 23.8 percent more than last year’s total of just above 49,000. The hotel industry is an important buyer in the labour market.
Package tour arrivals are still increasing, many coming from Greater China
M
Looking at the relationship between the number of rooms and the hotel workforce, the more stars a hotel has, the more employees it has per room. Five-star hotels have the highest ratio of employees to rooms: more than 1.7 to one. Guesthouses make do with only about one worker for every five rooms. The surprise is the unexpectedly high figure for three-star hotels, with almost twice as many employees per room as four-star hotels. J.I.D.
acau had almost 696,000 visitors arriving in package tour groups in April, government statistics show. This is a 28-percent increase year-on-year, yet is not quite as impressive as the 51.1 percent increase reported in March. “We foresee a steady increase of tourists this year, even though the growth might be slowing down compared to the first quarter,” Macau Travel Council president Andy Wu Keng Kuong told Business Daily. In the first quarter package tour visitors grew by 45.6 percent yearon-year. Visitors from mainland China alone rose by 20.3 percent yearon-year to over 491,300 in April and accounted for 70 percent of the total. Among mainland tourists, those from Guangdong increased by 89 percent. Nearly 99 percent of all visitors were from Asia, with strong growth seen in numbers from Hong Kong and Southeast Asia. April saw almost 41,700 visitors arrive from Hong Kong, a 68.6 percent increase year-on-year. During the same month 13,500 visitors arrived from Malaysia, a 64 percent increase. Thai visitors also grew 38 percent year-on-year to almost 17,900.
Taiwan, Japan, Singapore and Philippines all posted increases compared with April last year. “This shows that Macau is becoming more attractive as a travel destination,” Mr Wu said. “However, the base numbers were also low for tourists outside of Greater China.”
Hotel demand The city’s hotel capacity continued to expand, with two new hotels and guest-houses opening – the Conrad and Holiday Inn at the Sands Cotai Central – putting 1,939 rooms on offer. Macau had 97 hotels and guesthouses with 24,211 rooms in April.
695,762 Visitor arrivals in package tour groups in April
The occupancy rate dropped slightly to 82 percent in April, compared with 84.5 percent last year. “Over 80 percent average occupancy rate is still considered very high even for a tourist city, not to mention we have added a lot more hotel rooms, but there was only a slight drop in occupancy rate,” Mr Wu said. The government said this week that the number of hotel rooms was expected to double again in coming years, with 11 hotels under construction and 21 other projects in the process of getting approval. However, Mr Wu said supply had not exceeded demand. “Investors are paying attention to the market, and with the construction of the ZhuhaiMacau-Hong Kong bridge and the development at the neighbouring Hengqin Island, Macau will become more and more of an international tourist destination,” he said. He said that service was of the utmost importance and that the city needed to continue to improve its service to become a global destination. Macau did not make it into the top 20 in a recent Mastercard survey of best tourist cities. Mr Wu said Macau had a very narrow source of tourists, most of its visitors coming from Greater China.
June 15, 2012 business daily | 5
MACAU
Taobao e-wallets may run dry Starting next month, residents will no longer be able to buy credits for online shopping in convenience stores Tony Lai
tony.lai@macaubusinessdaily.com
H
ong Kong company Taodot has said it will stop providing electronic payment services to the popular Chinese-language shopping website, Taobao Marketplace, next month. In a statement published on its website earlier this month, Taodot said it would stop recharging credit for Taobao e-wallets by July 15 because the company’s business policy was being restructured. “The company will focus on the development of logistics services in future to enhance customers’ experience,” its statement said. Taodot was not available for comment. Taobao, also known as the Chinese version of Amazon and eBay, was founded by mainland China’s Alibaba Group in 2003 and has been a popular online shopping platform among Chinese, even in Macau and Hong Kong. According to Alibaba statistics, transactions on the online shopping platform reached 600 billion yuan (750 billion patacas) last year. Jack Ma Yun, chairman of the
corporation, told the media he hoped sales would reach a new record of 1 trillion yuan in 2012. Taodot allows Macau residents to buy credits for Taobao e-wallets at 7-Eleven convenience stores and through credit cards and mainland bank accounts. The public can buy e-credit vouchers in convenience stores in the range of HKD200 to HKD2,000 to recharge their shopping accounts. But convenience stores must stop selling vouchers by July 8. Cecilia Ma Hei Man, a regular user of Taobao, told Business Daily this would cause her some trouble as she would not be able to renew credits instantly at home. “I don’t feel safe to use credit cards on mainland websites,” she said. “Now I can only refill my e-wallet by going to the mainland to deposit money or find a middleman. Both are not convenient for me when I want to do it quickly.” There are some businesses set up in the city for helping people order or receive goods from Taobao for charges of 5 patacas to 10 patacas per purchase.
7-Eleven convenience stores will stop selling vouchers by July 8
Mr Chan, owner of one such business in the northern district, told Business Daily his shop received several hundred shipments per month fulfilling local orders and that it helped customers to refill their e-wallets.
Mandy Lam, another Taobao buyer, said the end of vouchers did not affect her as she shopped in Taobao with the help of middlemen. “It’s less troublesome, as I only need to send the link to the shop and it’s done,” she said.
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business daily June 15, 2012
macau LVS president to stay on until at least 2014
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Hospitality veteran Michael Leven has full backing of boss Sheldon Adelson Associate Editor
Booming retail The growing population and the rising number of visitors have resulted in a change in the dynamics of the retailing sector. Since 2008 the Statistics and Census Service has published the results of a quarterly survey of the volume of sales in 16 sub-sectors. The volume of retail sales in the first quarter of 2012 was more than double what it was four years before, having grown at an average annual rate of about 20 percent. The volume of most kinds of retail sales increased by 50 percent or more in that period. The volume of a few kinds boomed and, unsurprisingly, the goods bought are among those in greatest demand by visitors.
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1 The chart shows the five categories of goods most in demand between the first quarter of 2008 and the first quarter of 2011, measured by the growth factor of the volume sold and compared with the average growth factor, represented by the horizontal line. Sales of communications items, the best-selling category, increased almost fourfold, the equivalent to an average annual rate of just over 40 percent. This explains why mobile phone shops have sprung up like mushrooms. Then comes a very broad category, department store purchases, which covers an assortment of goods. Sales almost tripled. Close behind were sales in the leather goods category and the clocks, watches and jewellery category. In the adults’ clothing category the volume of sales increased 2.5 times. In only six subsectors of the retailing business was growth in sales slower. In two sub-sectors– motorcycles and domestic fuel – the volume of sales fell. The fall in sales of motorcycles is scant comfort to motorists that find the roads increasingly congested, because the number of bikes on the road keeps accumulating. And to add to the discomfort of motorists, the volume of car sales was 42 percent higher in the first quarter than four years before. J.I.D.
M
ichael A. Leven, the president and chief operating officer of Las Vegas Sands Corp. has signed a new contract that will keep the 74-year-old in his current post until at least the end of 2014. LVS operates casino resorts in Macau and Singapore under local subsidiaries as well as properties in the United States. The news follows a raft of contract renewals for other key LVS executives. In recent years the company has had – relative to its industry peers – a considerable turnover of key people, but now appears to be focusing on continuity. In March 2009 Bill Weidner, Mr Leven’s predecessor as president and COO, left the company after 14 years, describing an internal battle over how to fund LVS’s then heavily leveraged operation as a “junkyard dogfight”. His boss Sheldon Adelson, chairman and chief executive of LVS responded: “We helped him resign a little bit”, hinting if he hadn’t jumped he would have been pushed. That same month Brad Stone, then executive vice president and president of global operations and construction, also resigned, followed by LVS director James Purcell.
Steve Jacobs In July 2010 Steve Jacobs, then president and CEO of Sands China, was sacked after 16 months in charge of Macau operations. Mr Jacobs guided the Macau business through the dramatic cost-cutting required in early 2009 following the global financial crisis of late 2008 – when the very existence of a then heavily leveraged LVS was called into question by its own auditors – and through Sands China’s US$2.5 billion (20 billion patacas) initial public offering in Hong Kong in November 2009. The company said Mr Jacobs was eventually sacked for “cause” citing unauthorised deal making and statements about non-Macau projects. Mr Jacobs says he was “wrongfully terminated” and is attempting to sue Sands China via a court in Nevada. LVS is currently trying to get the case
Michael Leven – trusted by boss and source of stability for LVS
moved to Macau. In February 2011 Tom Arasi CEO of LVS’s Singapore property Marina Bay Sands since August 2009 – the pre-opening phase – resigned after 18 months in the role citing “personal reasons”. Mr Arasi, who on appointment had a background in hotel management rather than gaming, steered the property through its challenging opening phase in April 2010.
of time,” he said in a statement. In a proxy filing by the parent company in late April, Mr Leven was shown to be one of the world’s highest corporate earners in 2011. He received compensation worth US$94.8 million - US$71.3 million exercising previously awarded stock options, and US$23.5 million in executive pay and incentives.
News welcomed
Last month Sands China said in a filing to the Hong Kong Stock Exchange that Ed Tracy, Steve Jacobs’ successor as Sands China boss, was having his contract renewed for a further 16 months. If he sees out his new deal running until August 26 next year, it will make him the longest-serving president and chief executive officer of Macau operations for LVS since Sands China was floated. LVS also recently gave a contract extension to Rob Goldstein, global gaming president, and in April hired Chris Cahill as executive vice president of operations. Mr Cahill, formerly chief operating officer of Fairmont Raffles Hotels International, reports to Mr Leven.
The investment community yesterday welcomed news that the company has persuaded Mr Leven to stay on. “If Mr Leven is willing to carry on I don’t see the need to change a winning team,” one analyst told Business Daily yesterday. “He obviously has the confidence of the chairman, and that must help in the day-to-day running of the company.” That assessment was apparently echoed by Mr Adelson. “Under Mike Leven’s leadership our company has experienced tremendous success, and I am very grateful and honoured that he has committed to be here with us for a longer period
Busy schedule
Weather Beijing 30/18o C Changchun 23/16o C
Harbin 24/17o C
Xian 33/16o C Shanghai 28/23o C Chengdu 28/22o C Kunming 24/17o C Haikou 30/25o C Sanya 32/28o C
Guangzhou 33/25o C
MACAU (11 June-16 June) Day
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75/95 %
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25/28o C
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06/15
25/29o C
70/95 %
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65/95 %
Shenzhen 31/26o C
ASIA (today)
Hong Kong 29/25o C
Manila
TOKYO
Jakarta
31/26o C
31/25o C
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32/24o C
Macau 29/25o C
Bangkok
SEOUL
K. lumpur
34/28o C
SINGAPORE
27/18o C
34/26o C
taipei
30/25o C
June 15, 2012 business daily | 7
MACAU
AirAsia unfreezes plan for service from Clark Low-cost carrier to start flights to Macau on July 19
B
udget carrier AirAsia Philippines now says it will start flying between Clark Field in the Philippines and Macau on July 19. The announcement came just two weeks after the airline said it was shelving its plan for daily flights to Macau amid a simmering maritime dispute between China and the Philippines.
AirAsia Philippines chief executive Marianne Hontiveros said the service would benefit business travellers and Filipinos working overseas. “They can reconnect and bring their families closer more than ever,” she said in a written statement issued on Wednesday. She said the service would help at-
MPEL pressured as analysts cut Macau growth forecasts
S
hares in Melco Crown Entertainment Ltd came under pressure in New York on Wednesday night (Thursday Macau time) after analysts reduced their estimates for gaming revenue growth in Macau during 2012. MPEL, traded on the Nasdaq and in Hong Kong, saw its American depositary receipts sink to US$11.75, ending a sixday rally. The receipts, each representing three underlying shares in the company, traded 3.1 percent below MPEL’s Hong Kong stock, the widest discount since June 1. CLSA Asia-Pacific Markets, an independent brokerage and finance
house, lowered its 2012 forecast for year-on-year gaming revenue growth in Macau from 21 percent to 16 percent. It follows a lowerthan-market-expectation growth figure for May of seven percent and indications revenues may become lumpier during the rest of the year. CLSA also reduced MPEL’s 12-month price target to US$20 from US$23.20. Cameron McKnight of Wells Fargo in New York said in a note: “We continue to expect Macau annual revenue growth for 2012 of 18 percent, comprised of 12 percent growth in VIP, 34 percent growth in mass, and 20 percent growth in slot revenue.”
US$2.7bn loans offered to Wynn Macau
W
ynn Macau has attracted nearly twice as much money in loan commitments as it originally sought for its Wynn Cotai project, says Bloomberg. The financial wire service, citing “two people familiar with the matter” said Wynn Macau has secured syndicated loan pledges worth US$2.7 billion (21.6 billion patacas) “from about 15 banks” and was considering increasing its loan facility to US$2.5 billion from its original target of US$1.5 billion. During the first quarter earnings call for the parent company Wynn Resorts Ltd in May, Matt Maddox, Wynn’s chief financial officer
indicated that up to 40 percent of the Wynn Cotai budget would be funded by equity – supported by cash flow from current operations. But if the company can secure loans at a sufficiently attractive price it may decide to increase the debt component of the funding package. That in turn would give the firm greater freedom to offer further share dividends. Asked at a press conference earlier this month in Macau if the firm would continue to pay them, Steve Wynn, chairman and founder of the business said: “Yes. That’s why people invest in companies, so they can get dividends.”
tract Macau tourists to the Philippines once again, after China cancelled all organised tours because of a dispute with the Philippines over ownership of a shoal in the South China Sea. Ms Hontiveros told Agence France-Presse on June 1: “I was advised that travel agents in Macau had cancelled tour groups
to the Philippines.” On Wednesday she said: “Thai AirAsia and Malaysia AirAsia have been operating flights to Macau since 2004 and will support our marketing efforts to attract tourists from Macau and Hong Kong to fly with us to Clark, and onwards to Kalibo, Puerto Princesa and Davao,” she said.
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business daily June 15, 2012
without specifying a timeline. Mr Or is the former chief executive of Hang Seng Bank Ltd. Esprit’s stock plunged 22 percent in Hong Kong on Wednesday, the most in 15 years, on news of the CEO leaving, before trading was suspended. The chairman’s departure was reported after the share suspension. The shares dropped 12.4 percent to HK$9.23 in Hong Kong trading yesterday. “We see strong support at the HK$7-8 range, where private equity should see a reasonably attractive entry point,” Religare Capital Markets analyst Peter Williamson said in a note. Esprit cited personal reasons for both exits. The retailer has also had departures from its board, reporting the resignation of Francesco Trapani, a non-executive director, for “other personal commitments” in February. “Who’s going to steer the company?” said Gabriel Chan, an analyst at Credit Suisse Group AG, after the CEO quit. “We know nothing more than the one-page announcement, and investors hate such kind of opaqueness.”
billion at the end of 2010. “The fact that Zara and H&M are doing well indicates that the industry is in a good shape,” said Sandy Mehta, chief investment officer at Value Investment Principals Ltd. “Esprit is still a strong global brand, but competition is getting tougher and it will take longer for Esprit to reposition itself.” In February, Mr Van der Vis said the clothing retailer would add sourcing offices in India and Indonesia to cut costs and add 40 to 50 stores in China as part of its drive to boost profit. Esprit’s earnings have fallen as it loses customers to Zara and Stockholm-based H&M, which are seen as trendier by some younger shoppers. In September, Esprit reported that profit fell 98 percent and, in a statement, said the brand “has gradually lost its soul over the past few years.” “Esprit had become too much a T-shirt company,” Mr Van der Vis said in the interview with Bloomberg earlier this year. “The customers I spent a lot of time talking to said: Please give me back the Esprit I used to know.”
GREATER CHINA
Esprit plummets second day Share slide sparks takeover speculation
A
s Esprit Holdings Ltd’s chief executive officer and chairman quit within 24 hours of each other, investors’ biggest question was: Who’s in charge? The fashion brand left the financial community in the dark on the resignations and succession plans. Chief executive Ronald Van der Vis quit on Tuesday and the Hong Kong-based company reported the departure of its chairman a day later. The exits highlight the steady decline of a once-popular brand that has lost out to rivals including Hennes & Mauritz AB and Inditex SA’s Zara. The departures, which come six months after the chief financial officer resigned, leave Esprit with a gap in senior management as it struggles to recover from a threeyear profit decline. “The moves could lead to questions regarding whether there are issues with the operation/accounts or there is a power struggle among the management team and the board,” Anne Ling, an analyst at Deutsche Bank AG, said in a note to clients. The exact timing of the CEO’s departure will depend on “how quickly we can get a replacement,” said Patrick Lau, head of investor relations, declining to comment further on succession. Mr Van der Vis is required to give 12 months’ notice, according to Mr Lau, and the company said he will leave on or before July 1 next year. Chairman Hans-Joachim Koerber is being replaced by independent director Raymond Or Ching Fai.
future of a costly turnaround plan at Europe-focused Esprit. The departure of both senior executives stoke speculation the clothing retailer could become a takeover target. “Resignations of the top two executives are not a good sign. The stock is set to face pressure in the immediate run as investors lose faith in the company,” said Francis Lun, managing director at investment firm Lyncean Holdings. “As the stock falls, it could easily become an acquisition target by rivals or private equity funds.” Banking sources have told Reuters some private equity groups had previously looked at Esprit, and the stock plunge would likely attract renewed interest.
Top priority Finding a new CEO is a “top priority,” Mr Or told Hong Kong broadcaster Now TV yesterday,
KEY POINTS Key executive resignations cast doubt over management Shares extend slide after 22 percent plunge
Takeover target
Competition getting tougher; European market drops
The stock has lost up to a third of its market value in two days as the departures raised worries about management stability and the
Company lost 73 percent of its market value last year
Tough competition Esprit had revenue of HK$33.8 billion (US$4.4 billion) for the year ended June 2011, compared with Spain-based Inditex’s 13.8 billion euros (US$17.4 billion) for the year ended January. The company’s market value is now US$1.75 billion, compared with a market value of around US$8
Turnaround continues Esprit, which lost 73 percent of its market value last year, reported a 74 percent drop in first-half profit in February. Esprit gets about 79 percent of its revenue from Europe, which is confronting a debt crisis and high unemployment. Hennes & Mauritz
Esprit Holdings (330 HK) HKD
43 38 33 28 23 18 13 8
Jan-11
Jun-12
China productivity jolt urged Global financial companies cut mainland’s growth forecast
C
redit Suisse Group AG and Deutsche Bank AG reduced forecasts for China’s growth this year as weakness in exports and in investment drag on the world’s second-biggest economy. Credit Suisse reduced its estimate to 7.7 percent from 8 percent, while Deutsche Bank lowered its forecast to 7.9 percent from 8.2 percent, according to e-mailed research notes yesterday. The predictions indicate the weakest growth since 1999 and compare with a 9.2 percent expansion last year. Corporate profits are falling, deflation is looming and the nation faces years of “weak” growth, Credit Suisse economist Tao Dong said. To unleash productivity gains and restore the economy’s strength, the government should break monopolies in banking and utilities, open the services industry, and deregulate interest rates and the exchange rate, he said. “Investment is unlikely to see a meaningful rebound in the
foreseeable future,” Hong Kongbased Mr Tao said. “Government stimulus could moderate the downside risks to growth and perhaps cushion the down-cycle, but we do not see it providing sustainable upward growth momentum.” The cuts to the forecasts and a downgrade in Spain’s credit rating by Moody’s Investors Service on Wednesday sent Asian stocks lower.
Ratings downgrade Spain’s rating cut underscored the threat to Asian exporters from Europe’s debt crisis. “We expect China to be in a weak growth cycle for the next several years featuring a weak credit cycle, weak export cycle and weak property cycle,” Credit Suisse’s Mr Tao said. An emerging “deflationary force” may lead to sharp declines in nominal gross domestic product and corporate profits, he said, adding that the economy is quickly
KEY POINTS China’s growth forecast cut to below 8 pct Weakest growth since 1999 expected Corporate profits falling, deflation looming losing momentum. “Looking back in history, almost every 10 years, China has had one top-down structural reform to unleash improvements in productivity,” he added. Fixed-asset investment excluding rural households rose 20 percent in the first five months, according
to the statistics bureau. That was the weakest gain for a JanuaryMay period since 2001, according to previously released data. Growth in industrial output and retail sales
June 15, 2012 business daily | 9
GREATER CHINA
US$1.75 billion Esprit’s market value, down from US$8b at the end of 2010 Fashion brand left the financial community in the dark on its succession plans
received 52 percent of its sales in the fiscal year ended November from the eurozone excluding Finland, while Inditex got 37 percent from the European Union, based on data compiled by Bloomberg. In February, the brand born in San Francisco said it was closing all stores in North America after failing to find a buyer for the unprofitable business. Its U.S. and Canadian operations lost HK$1.6 billion in a four-year period, Esprit said last year. While announcing Mr Van der Vis’s departure, Esprit said it plans to continue with the turnaround efforts. The 44-year-old Dutchman
is leaving just as Esprit started showing some improvement in same-store sales. The fashion group has launched an HK$18 billion restructuring plan due to be completed by 2015. The retailer in May said revenue at outlets open more than a year rose 0.5 percent in the three months ended March after dropping 4.6 percent in the six months to December 31. “The new management team will face a big challenge,” said Credit Suisse’s Mr Chan. “Not only to revive the brand, but also putting a team together.”
Insurers to be allowed wider investment scope
Reuters/Bloomberg
Insurance companies may be able to conduct short selling of securities
C
China faces years of ‘weak’ growth – analyst
trailed forecasts in May. Credit Suisse cut its full-year inflation forecast to 3.1 percent from a previous projection of 3.7 percent. Over the next 12 months,
the government may cut bank reserve requirements three times, lending rates twice, and the deposit rate once, Mr Tao said. Bloomberg
hina may widen insurers’ investment scope to include derivatives and bank creditbacked securities after the industry regulator said it would give the companies more choices to invest in earlier this month, according to Guosen Securities Co. Insurance companies may also be allowed to conduct margin trading and short selling of securities, Guosen’s Shenzhen-based analysts Shao Ziqin and Tong Chengdun wrote in an e-mailed report yesterday citing draft rules the regulator circulated to seek feedback. Investment ceilings may be raised for corporate bonds, unlisted shares and real estate, according to Guosen. The China Insurance Regulatory Commission drafted 10 rules that will broaden insurers’ investment choices in bonds, infrastructure, property and overseas markets to boost support to the real economy and capital-market reforms, the watchdog said in a statement on its website on June 4. The easing of the rules may lift insurers’ valuations, which remain depressed partly due to concerns about their long-term investment yields, to “reasonable”
levels, the Guosen analysts wrote. “The concerns will disappear over time as the new rules are implemented gradually,” they wrote. Still, “overseas experience suggests that, even after investment channels are opened, the overall investment returns on insurance funds will be on par with benchmarks” due to policyholders’ risk aversion. The regulator last month allowed insurance companies to buy exchange-traded corporate bonds that are unsecured, as well as non-financial company debt and unsecured convertible debt issued by commercial banks. Under the draft rules, insurers will be allowed to decide on the proportion of funds they invest in secured corporate bonds while the ceiling on unsecured bonds issued by non-financial companies will be 50 percent of their total assets at the end of the previous quarter, according to the Guosen report. The limit on holdings in closely held equities will be raised to 10 percent from 5 percent currently, according to the report. Bloomberg
10 |
business daily June 15, 2012
asia
India’s inflation InBrief picks up Philippines holds rate
The Philippines held its benchmark interest rate at 4 percent for a second meeting to shield the economy from Europe’s debt crisis and slowing growth in China. Inflation eased in May, with consumer prices rising 2.9 percent from a year earlier. Bangko Sentral ng Pilipinas targets inflation to average 3 percent to 5 percent this year and next. The Philippine peso has climbed about 3 percent this year, the biggest gainer among Asia’s 11-most widely traded currencies.
Malaysia Airlines fined An Australian court yesterday fined Malaysia Airlines Aus$6 million (US$5.98 million) for price-fixing linked to a massive international cargo cartel. Australia’s anti-trust regulator said the carrier’s cargo division was hit with the fine after it admitted that it colluded with other airlines on various fuel, security and customs fees. “This penalty sees the total penalties ordered against this international cartel increase to a record Aus$58 million,” said Rod Sims, chairman of the Australian Competition and Consumer Commission.
Felda to raise US$3.3 billion Felda Global Ventures Holdings Bhd. raised about 10.4 billion ringgit (US$3.3 billion) in this year’s second-biggest initial public offering after Facebook Inc., said three people with knowledge of the matter. Felda Global, the world’s third-largest operator of palm oil plantations, sold shares to institutional investors at 4.55 ringgit each, sources told Bloomberg. Demand for stock from fund managers exceeded supply by more than 29 times at that price, two people said.
Renesas to secure loan Loss-making Renesas Electronics Corp is in final talks to secure a 50 billion yen (US$630 million) loan from four banks after its major shareholders refused to inject fresh capital, the Mainichi newspaper said yesterday. Shares in Renesas surged as much as 21 percent to a one-month high. The company’s major shareholders – Mitsubishi Electric Corp, Hitachi Ltd and NEC Corp – would provide loan guarantees to allow the company to secure the loan, the Mainichi said.
Govt urged to restart economic liberalisation programme
I
ndia’s benchmark inflation rose in May to 7.55 percent, keeping price pressures elevated and making it harder for the central bank to revive economic growth with a widely expected interest rate cut next week. The rise in the wholesale price index (WPI) from 7.23 percent in April came as both food and fuel prices picked up. The increase keeps inflation near its highest level this year – March data was revised up to a 2012 high of 7.69 percent – as policymakers come under pressure to revitalise an economy running at its lowest ebb in nine years and to steer the country away from a damaging ratings downgrade to junk status. Still, traders said core inflation, which excludes volatile food and fuel prices, was around 5 percent, giving the Reserve Bank of India (RBI) room to cut its policy rate at a meeting on Monday. “Since core inflation is still below 5 percent, I would expect RBI to cut rates by 25 basis points as that is the key number,” said A. Prasanna, an economist at ICICI Securities Primary Dealership in Mumbai. India’s bond prices and stocks fell, while the rupee weakened after the data because it dashed earlier speculation that the headline figure
would be below 7 percent. India’s repo rate of 8.00 percent is the highest central bank policy rate among major economies in Asia. It cut the rate by 50 basis points in April as the growth outlook became more of a concern. A political logjam in New Delhi and the eurozone debt crisis are weighing on Asia’s third-largest economy. Capital inflows have slowed and the current account deficit widened.
KEY POINTS March inflation revised up to 2012 high of 7.69 pct No room left for fiscal stimulus – analyst Central bank expected to cut rates next week
Growth slumped to a nine-year low of 5.3 percent in the first quarter of calendar 2012 and data this week showed industrial output growth
Malaysia seeks budget boost Govt asked an extra US$4.3 billion in spending
T
he Malaysian government has asked parliament to approve an extra 13.8 billion ringgit (US$4.3 billion) in spending for 2012, legislators said yesterday, taking total expenditure this year about 6 percent above the initial 230 billion ringgit national budget.
The extra spending is likely to cast further doubt on the government’s commitment to fiscal discipline as it heads for a closely-fought national election expected later in the year. The government had aimed to cut the deficit to 4.7 percent of gross domestic product this year and to about 3 percent by 2015 from 5.4
NZ Central Bank softens outlook New Zealand’s central bank held its official cash rate at a record low yesterday, setting the scene for a prolonged period of low interest rates. The Reserve Bank of New Zealand (RBNZ) left the benchmark rate at 2.5 percent, where it has been since March last year. “It remains appropriate for monetary policy to remain stimulatory,” RBNZ governor Alan Bollard said. “Our forecasts are consistent with not having to push up the cash rate for some time.”
With elections looming, the Malaysian government has been on a spending spree
flatlined in April, triggering fresh calls for the government to restart an economic liberalisation programme stalled since 2004. A Reuters poll after the GDP figures predicted the RBI will cut its repo rate by 25 bps to 7.75 percent on Monday to support growth. “There is no room left for any fiscal stimulus, so to trigger growth, the RBI has to lower policy rates,” said Rupa Rege Nitsure, chief economist at Bank of Baroda in Mumbai. Still, India’s central bankers face tough choices with inflation at relatively high levels. Supply bottlenecks that stoke price pressures remain largely unattended, undermining the inflation fight. A fall in the rupee to a record low raises import price pressures.
percent last year. That looks unlikely as economic growth slows and oil prices fall, denting tax revenues. “They will certainly miss their budget deficit target this year by a bit. Even without this supplementary supply bill the government would have missed it,” said Irvin Seah, an economist with DBS Bank in Singapore. Credit Suisse said in a note yesterday that it had raised its forecast for the budget gap this year to 5.5 percent from 5.0 percent “mainly to reflect the recent fall in oil prices”. Fitch ratings agency said this year that Malaysia, which is heavily dependent on oil revenues and whose spending is bloated by food and fuel subsidies, needed structural reforms to narrow the budget deficit. With elections looming, the government has been on a spending spree, hoping to shore up support after its dismal showing in 2008 elections. Sweeteners this year have included pay rises for civil servants and cash payments for students, adding to the strain on government finances. Cash handouts to low-income households alone accounted for 2.6 billion ringgit. The government may increase that amount as it considers another cash giveaway to poor households ahead of the elections, which Prime Minister Najib Razak must call by next March. The additional spending put before parliament yesterday is likely to be approved. Just over 11 billion ringgit of the amount is for Ministry of Finance spending, of which 7.9 billion ringgit for subsidies and government handouts, has already been spent, legislators said. Reuters
June 15, 2012 business daily | 11
asia Indonesia’s Bank Jabar to buy 51 small banks
I
A fall in the rupee to a record low may raise import price pressures
Standard & Poor’s this week threatened to downgrade the country’s investment grade sovereign rating to junk, citing weakening economic fundamentals
and policy inaction. It cut the outlook on its long-term rating on India to negative from stable in April. Reuters
Japan to insure Iran oil imports
ndonesia’s biggest provincial lender, PT Bank Pembangunan Jawa Barat & Banten (BJBR), plans to buy a majority stake in 51 rural banks this year in a bid to tap the huge potential of small and micro businesses, its chief executive said yesterday. The bank already expects more than a third of its total loans in 2012 to go to micro businesses and is looking to push further into the fastgrowing but highly competitive market, where rivals include TPG Capital-backed BTPN, Bank Danamon and Bank Rakyat. “The strategy is to become a majority [owner] in all 51 rural banks,” BJBR chief executive Bien Subiantoro told Reuters, adding that BJBR already holds a minority stake in several of the banks it is targeting. “We’re waiting for the central bank’s approval as most of the rural banks are not in a financially good condition but we want to use the banks’ network to expand our micro loan business,” he said in an interview. He did not put a cost on the planned acquisitions. Mr Subiantoro said BJBR, Indonesia’s 16th biggest lender by assets, was also studying a plan to set up a wealth management unit and wanted to move into sharia banking, multifinance and insurance to expand the range of its services. Indonesia has nearly 1,700 rural banks, largely based outside cities and offering loans to micro and small businesses. As of March, 2012 the banks had total assets of 54 trillion rupiah (US$5.72 billion), according to central bank data. BJBR reversed early gains to fall 1.1 percent to 860 rupiah a share yesterday, with a US$888 million market capitalisation, according to Thomson Reuters’ Starmine. The bank is looking to disburse 1.8 trillion rupiah in loans to micro businesses in 2012, a 36 percent share of its total loan disbursement this year. “The banking business is not rocket science as long as we are focused and build a lot of outlets,” Mr Subiantoro said. Reuters
Report says lower house to pass bill today
J
apan’s lower house is set to pass a bill today to provide government guarantees on insurance for Iranian crude cargoes, making it the first of Iran’s big Asian buyers to find a way to keep the oil flowing in the face of tough new EU sanctions. A European Union ban on member countries importing Iranian oil takes effect on July 1 and includes a ban on EU insurance firms from covering Iran’s exports. That is a headache for Japan, South Korea, China and India, who together buy two thirds of Iran’s oil exports and rely on EU companies to insure them. EU and U.S. sanctions aim to cut the oil revenues on which Tehran depends to force the Islamic Republic to curb its nuclear programme. Japan’s special insurance bill is expected to go through the upper house and become law before the parliamentary session ends on June 21, the Yomiuri newspaper reported yesterday. Iranian oil accounted for nearly 9 percent of Japan’s crude imports last year. Japan has reduced the flow already to comply with U.S.
sanctions requiring buyers to make sizeable cuts to Iranian imports, but wants to avoid more drastic reductions that may drive up energy import costs and hurt the world’s third-largest economy. Japan won a waiver from U.S. sanctions for those cuts, which refiners enacted even as they dealt with an increase in overall oil demand after last year’s Fukushima disaster shut down the country’s nuclear power stations. The Japanese government wants to make the bill law this month to provide protection coverage of up to US$7.6 billion per tanker carrying Iranian crude bound for Japan. It is the first time Japan has sought to provide guarantees on marine shipments, said an official in the country’s transport ministry, which is sponsoring the legislation. The official, who helped draft the bill, said he didn’t know when the law will be passed by parliament. The biggest opposition party, the Liberal Democratic Party, and its former partner, the New Komeito, have backed the bill, the Yomiuri report said.
Japan to continue Iran imports after EU insurance ban
Reuters
Sri Lankan Treasury Secretary P.B. Jayasundera
Sri Lanka may cut policy rate – govt
S
ri Lanka may need to consider easing monetary policy if trade data for May and June point to significant weakness in global demand for the island’s goods, the treasury secretary said yesterday. A further export slowdown would put additional pressure on the economy as domestic demand has already shown signs of cooling following a series of tough policy measures earlier this year, P.B. Jayasundera told Reuters in an interview. “Demand has drastically reduced. We must watch May and June data seriously and see whether there is a need for any softening in monetary policy,” said Mr Jayasundera. “A policy rate reduction may be considered in July or August.” The central bank has raised key policy rates twice since February to more than two-year highs, restricted banks’ lending, and allowed flexibility in the rupee exchange rate in a bid to curb inflation, reduce the trade deficit and avert a balance-of-payments crisis. The measures have had mixed results. Imports contracted in April on a year-on-year basis for the first time in 25 months, shrinking 3.3 percent, while exports contracted 9.2 percent. Growth in private sector credit in April, meanwhile, slowed to 18.7 billion rupees (US$141 million), well below the average monthly growth of 51.8 billion rupees in the first quarter of this year. But the move to a more flexible exchange rate has seen the rupee currency tumble to record lows, adding to inflationary pressures and swelling the country’s oil import bill. The currency has skidded nearly 17 percent since November 21, when the government announced a 3 percent devaluation. The rupee was trading at around 132 to the U.S. dollar yesterday. Mr Jayasundera said he believed the rupee has hit a bottom and would recover to around 125 in the medium-term. “In my view, the exchange rate has reached its maximum and will stabilise in the medium term at the earlier expected level,” Mr Jayasundera said. Reuters
12 |
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MARKETS Hang SENG INDEX NAME AIA GROUP LTD ALUMINUM CORP-H BANK OF CHINA-H
PRICE
Day %
VOLUME
25.85
-0.3853565
27369971
3.19
-1.846154
7267700
2.8
0
169473280
BANK OF COMMUN-H
5
0.8064516
15914066
25.35
-1.553398
1174615
12
-2.755267
15718527
BOC HONG KONG HO
22.2
-0.6711409
CATHAY PAC AIR
11.9
CHEUNG KONG CHINA COAL ENE-H
BANK EAST ASIA
PRICE
Day %
VOLUME
CHINA UNICOM HON
10.78
-2.355072
15125438
CITIC PACIFIC
11.04
-0.8976661
1972466
63.2
-0.6289308
2039824
CLP HLDGS LTD CNOOC LTD
Day %
VOLUME
55.4
-0.4492363
1450180
SANDS CHINA LTD
25.45
-4.323308
6831316
SINO LAND CO
10.92
0.1834862
17142816
SUN HUNG KAI PRO
-0.5434783
42428750
9.72
-1.818182
6159562
ESPRIT HLDGS
9.23
-12.42884
101476188
8848180
HANG LUNG PROPER
25.2
0
4702253
TINGYI HLDG CO
-2.618658
4139011
HANG SENG BK
102.6
-0.5813953
1023139
WANT WANT CHINA
89.5
-0.8859358
1997313
HENDERSON LAND D
40.15
-0.7416564
1905017
WHARF HLDG
6.83
-0.5822416
16924269
78.2
0.2564103
1808346
HONG KG CHINA GS
16.28
0.8674102
8725601
HONG KONG EXCHNG
109.5
-1.173285
3083736
-0.2293578
13937301
HENGAN INTL
5.14
0.2226942
309131540
18.88
-2.277433
32676930
CHINA MERCHANT
22.1
-0.4504505
2652712
HSBC HLDGS PLC
65.25
78.5
-1.505646
8554574
HUTCHISON WHAMPO
63.35
-1.400778
5043298
17.22
-1.487414
17815946
IND & COMM BK-H
4.3
-0.2320186
218483624
LI & FUNG LTD
CHINA OVERSEAS
PRICE
POWER ASSETS HOL
14.64
CHINA LIFE INS-H CHINA MOBILE
NAME
COSCO PAC LTD
BELLE INTERNATIO
CHINA CONST BA-H
NAME
SWIRE PACIFIC-A
-0.2242152
1947615
0.9340339
1717646
225
-0.8810573
2309451
18.74
0.1068376
2445188
9.17
-1.820128
8085663
41.95
0
4346628
TENCENT HOLDINGS
MOVERS
7
39
3 19030
INDEX 18808.4
CHINA PETROLEU-H
6.91
-2.81294
99386630
14.82
-2.755906
14216098
HIGH
19029.55
CHINA RES ENTERP
22.7
-2.783726
2094796
MTR CORP
24.9
-0.2004008
1049529
LOW
18719.89
15.44
-1.656051
8410111
NEW WORLD DEV
8.96
0.3359462
9890173
CHINA RES POWER
14.4
-0.4149378
3842818
52W (H) 22835.03
PETROCHINA CO-H
10.28
-0.9633911
37030096
CHINA SHENHUA-H
26.6
-0.5607477
11783066
PING AN INSURA-H
60
-1.315789
12273294
(L) 16170.35
CHINA RES LAND
89 86.45
18710
11-Jun
13-Jun
Hang SENG CHINA ENTErPRISE INDEX NAME
PRICE
DAY %
VOLUME
24.55
-1.603206
15133611
YANZHOU COAL-H
CHINA PETROLEU-H
6.91
-2.81294
99386630
ZIJIN MINING-H
7267700
CHINA RAIL CN-H
5.91
-3.745928
10078300
-2.614379
5570000
CHINA RAIL GR-H
3
-3.225806
15132741
2.8
0
169473280
CHINA SHENHUA-H
26.6
-0.5607477
11783066
CHINA TELECOM-H
PRICE
DAY %
VOLUME
AGRICULTURAL-H
2.92
0.3436426
106657219
AIR CHINA LTD-H
4.45
-5.52017
41430500
ALUMINUM CORP-H
3.19
-1.846154
22.35
ANHUI CONCH-H BANK OF CHINA-H
NAME CHINA PACIFIC-H
5
0.8064516
15914066
3.54
-0.8403361
22404696
15.04
-1.441678
4635500
DONGFENG MOTOR-H
12.84
-2.283105
9938471
3.9
0.7751938
31418389
GUANGZHOU AUTO-H
6.64
0
5987921
CHINA COAL ENE-H
6.83
-0.5822416
16924269
HUANENG POWER-H
5.47
1.48423
32543006
CHINA COM CONS-H
6.8
-1.018923
16510622
IND & COMM BK-H
4.3
-0.2320186
218483624
CHINA CONST BA-H
5.14
0.2232604
309131540
JIANGXI COPPER-H
16.7
-1.066351
5841595
CHINA COSCO HO-H
3.63
-2.680965
11017259
PETROCHINA CO-H
10.28
-0.9633911
37030096
PICC PROPERTY &
8.96
-2.608696
17278523
60
-1.315789
12273294
7.84
-2.850062
1436000
BANK OF COMMUN-H BYD CO LTD-H CHINA CITIC BK-H
CHINA LIFE INS-H
18.88
-2.277433
32676930
CHINA LONGYUAN-H
5.08
-2.119461
4961491
PING AN INSURA-H
CHINA MERCH BK-H
14.42
-0.2766252
9780271
SHANDONG WEIG-H
NAME
PRICE
DAY %
VOLUME
12.64
-1.710731
25231024
2.72
-0.729927
16158353
ZOOMLION HEAVY-H
10.04
-1.568627
12759206
ZTE CORP-H
15.56
1.699346
7264904
MOVERS
6
2 9660
INDEX 9518.59 HIGH
9658.47
LOW
9437.73
CHINA MINSHENG-H
7.12
-2.864939
23545530
SINOPHARM-H
19
2.37069
16930679
52W (H) 12902.97
CHINA NATL BDG-H
9.07
-2.78671
17968000
TSINGTAO BREW-H
50.9
-0.3913894
382000
(L) 8058.58
11.18
0.1701409
5607138
WEICHAI POWER-H
32.45
-4.83871
2277552
CHINA OILFIELD-H
32
9430
11-Jun
13-Jun
Shanghai Shenzhen CSI 300 PRICE
DAY %
VOLUME
PRICE
DAY %
VOLUME
PRICE
DAY %
VOLUME
AGRICULTURAL-A
2.62
0
64759303
DATANG INTL PO-A
5.65
-2.249135
19203935
SANY HEAVY INDUS
14.8
-0.8042895
17383511
AIR CHINA LTD-A
6.09
-0.9756098
6699137
DONGFANG ELECT-A
21.23
-1.025641
5128798
SHANDONG GOLD-MI
36.19
-0.9849521
11103195
ALUMINUM CORP-A
6.65
-0.4491018
5979759
EVERBRIG SEC -A
14.02
-2.163294
7714454
SHANG PUDONG-A
8.27
-0.2412545
80017463
ANHUI CONCH-A
15.87
-1.489758
18424165
GD MIDEA HOLDING
12.36
0.08097166
19432062
SHANGHAI ELECT-A
5.12
-1.915709
8049334
BANK OF BEIJIN-A
9.33
-1.060445
13151252
GD POWER DEVEL-A
2.73
2.631579
221357502
23.87
-2.92802
12777384
BANK OF CHINA-A
2.83
-1.048951
11420302
GEMDALE CORP-A
7.22
-0.5509642
30838643
SHANXI XINGHUA-A
38.52
2.012712
6173469
BANK OF COMMUN-A
4.45
-0.4474273
23952004
GF SECURITIES-A
31.65
-2.10331
6349084
SHANXI XISHAN-A
16.09
-1.710446
16480286
BAOSHAN IRON & S
4.38
-1.351351
27243898
GREE ELECTRIC
21.55
-1.822323
15030922
SHENZ DVLP BK-A
14.64
-1.347709
13047824
15.12
-2.640052
20843806
SHENZEN OVERSE-A
6.67
-1.185185
27972420
15.24
-0.1310616
980345
-1.343785
25352960 2532614
NAME
NAME
NAME
SHANXI LU'AN -A
23.34
3.411608
5291206
GUANGHUI ENERG-A
CHINA CITIC BK-A
3.96
-1
18588983
GUIZHOU PANJIA-A
28.61
-6.655791
18171770
SINOVEL WIND-A
CHINA CNR CORP-A
4.11
-1.674641
29366304
HAITONG SECURI-A
10.31
-1.996198
45124806
SUNING APPLIAN-A
8.81
CHINA COAL ENE-A
8.28
-1.075269
11285278
HANGZHOU HIKVI-A
26.43
0.07572889
3429937
TSINGTAO BREW-A
39.95
-1.358025
CHINA CONST BA-A
4.42
-0.4504505
14307595
HEBEI IRON-A
2.88
-0.6896552
14165962
WEICHAI POWER-A
31.87
-0.7783313
3543129
CHINA COSCO HO-A
4.81
-0.8247423
3825958
HENAN SHUAN-A
62.65
0.5940912
5359935
WULIANGYE YIBIN
32.94
1.792336
31931685
BYD CO LTD -A
CHINA CSSC HOL-A
23.21
-1.401869
5393121
HUATAI SECURIT-A
11.5
-3.117102
18311734
XIAMEN TUNGSTEN
48.27
-2.857718
10442480
CHINA EAST AIR-A
4.05
-1.459854
10095223
HUAXIA BANK CO
9.17
-1.609442
30866997
YANGQUAN COAL -A
16.98
-2.132565
13694376
CHINA EVERBRIG-A
2.76
-1.779359
28025283
IND & COMM BK-A
3.95
-1.175882
50272624
YANTAI CHANGYU-A
94
2.173913
1733226
CHINA LIFE INS-A
17.81
-0.3914989
20137139
INDUSTRIAL BAN-A
12.44
-1.348136
37795674
YANTAI WANHUA-A
14.96
-0.1335113
9069992
CHINA MERCH BK-A
10.86
-0.2754821
43619884
INNER MONG BAO-A
44.65
-1.932792
41967994
YANZHOU COAL-A
21.55
1.078799
7376991
CHINA MERCHANT-A
12.85
-1.077752
9329685
INNER MONG YIL-A
24.28
1.040366
19979501
YUNNAN BAIYAO-A
57.74
0.4173913
2059722
CHINA MERCHANT-A
25.97
-0.802139
4028117
INNER MONGOLIA-A
6.14
-0.8077544
45322888
ZHONGJIN GOLD
23.72
-0.461603
8637631
CHINA MINSHENG-A
6.01
-1.47541
80871167
JIANGSU HENGRU-A
28.68
-0.6925208
2459566
ZIJIN MINING-A
4.07
-0.4889976
25046302
CHINA NATIONAL-A
6.2
-1.898734
13490955
JIANGSU YANGHE-A
140.05
1.41202
3030836
ZOOMLION HEAVY-A
10.76
-2.536232
33399554
JIANGXI COPPER-A
24.68
-0.8038585
5885910
ZTE CORP-A
14.77
1.512027
24524495
13.57
-1.021152
5764513 14110592
CHINA OILFIELD-A
16.7
-2.453271
5134614
CHINA PACIFIC-A
22.21
0.04504505
34315859
JINDUICHENG -A
CHINA PETROLEU-A
6.41
-0.7739938
22129192
JIZHONG ENERGY-A
CHINA RAILWAY-A
4.47
-1.973684
15392704
KWEICHOW MOUTA-A
17.19
-2.881356
244.59
2.343194
2870473
41.34
1.34837
11050284
2.57
-0.7722008
10028219
CHINA RAILWAY-A
2.62
-1.132075
26226264
LUZHOU LAOJIAO-A
CHINA SHENHUA-A
23.49
-1.219512
11043801
METALLURGICAL-A
5.6
0.9009009
29007900
NARI TECHNOLOG-A
19.6
0.8230453
10111925
2.55
0.3937008
9666697 58712848
CHINA SHIPBUIL-A CHINA SOUTHERN-A
4.65
-0.6410256
18330882
NINGBO PORT CO-A
CHINA STATE -A
3.38
-1.169591
46433365
PANGANG GROUP -A
7.2
-4.38247
9.18
-0.1088139
MOVERS
70
218
20 2590
INDEX 2560.42
CHINA UNITED-A
3.94
-0.7556675
39509220
PETROCHINA CO-A
9080651
HIGH
2582.66
CHINA VANKE CO-A
9.28
0.1078749
48780246
PING AN INSURA-A
45.13
-0.3312721
34891006
LOW
2531.75
CHINA YANGTZE-A
6.92
0
11492211
POLY REAL ESTA-A
14.71
0.8224812
27639655
CITIC SECURITI-A
13.35
-1.184308
52316333
QINGDAO HAIER-A
12.12
1.084237
19773933
CSR CORP LTD -A
4.73
-1.86722
11548412
QINGHAI SALT-A
30.8
-0.7731959
4425225
DAQIN RAILWAY -A
7.31
-0.9485095
24132399
SAIC MOTOR-A
15.09
1.071668
11161545
PRICE DAY %
Volume
PRICE DAY %
Volume
52W (H) 3140.102 (L) 2254.567
2530
11-Jun
13-Jun
FTSE TAIWAN 50 INDEX NAME
NAME
ACER INC
30.9
1.311475
20777205
FORMOSA PLASTIC
ADVANCED SEMICON
25.4
0.9940358
16450472
FOXCONN TECHNOLO
ASIA CEMENT CORP
36.35 -0.1373626
2694397
ASUSTEK COMPUTER
290.5 -0.6837607
AU OPTRONICS COR
11.85 -0.4201681
CATCHER TECH
188.5
0
11486834
CATHAY FINANCIAL
28.95
0.3466205
8812922
CHANG HWA BANK
15.4 -0.6451613
5592491
CHENG SHIN RUBBE
71.7 -0.1392758
4712209
CHIMEI INNOLUX C
11.9
0.8474576
19728638
MEDIATEK INC
261
1.162791
7649887
CHINA DEVELOPMEN
7.02
-1.126761
31603538
MEGA FINANCIAL H
21.4
-1.154734
21509034
CHINA STEEL CORP
28.35
1.612903
15308664
NAN YA PLASTICS
55.3
2.597403
9617030
CHINATRUST FINAN
16.5
0
38919714
PRESIDENT CHAIN
152.5
-0.974026
619003
CHUNGHWA TELECOM
90.3 -0.1106195
6038425
79.1 -0.6281407
7506987
COMPAL ELECTRON
27.4 -0.3636364
8619750
TAIWAN MOBILE CO
105.5
0.4761905
4104688
TPK HOLDING CO L
FUBON FINANCIAL
28.8
0.3484321
13541358
TSMC
2493267
HON HAI PRECISIO
82.1
0.1219512
14463204
UNI-PRESIDENT
34716040
HOTAI MOTOR CO
192
0.2610966
247000
HTC CORP
361.5
3.285714
12366637
HUA NAN FINANCIA
16.25
0.619195
3980886
LARGAN PRECISION
560
-1.581722
979558
YULON MOTOR CO
LITE-ON TECHNOLO
36.5
-0.273224
1843454
QUANTA COMPUTER
19154396
SILICONWARE PREC
29.45
0
5699682
-1.675978
11830450
SINOPAC FINANCIA
10.9
-1.357466
13177908
FAR EASTERN NEW
28.75
0.5244755
7039248
SYNNEX TECH INTL
69.8
0
3102799
FAR EASTONE TELE
64.3
-2.427921
6468893
TAIWAN CEMENT
34
0
6000911
16.95 -0.5865103
6690788
TAIWAN COOPERATI
17.3
1.169591
3183060
73.6 -0.8086253
4929115
TAIWAN FERTILIZE
65.7
-1.054217
2462942
1142255
TAIWAN GLASS IND
24.3
0
6256563
FIRST FINANCIAL FORMOSA CHEM & F FORMOSA PETROCHE
79
0
PRICE DAY %
-1.733333
88
DELTA ELECT INC
NAME
73.7
Volume
93.6
-1.265823
437.5
0.1144165
4266603 3504071
79.2
-1
30462642
46.9
1.405405
5344072
UNITED MICROELEC
12.15
-1.219512
20843615
WISTRON CORP
37.35
-1.581028
5862507
YUANTA FINANCIAL
13.05 -0.7604563
11436357
MOVERS
51.9
18
25
4885.07
LOW
4830.7
4629710
7 4890
INDEX 4859.11 HIGH
0.5813953
52W (H) 6065.73 4830
(L) 4643.05 11-Jun
13-Jun
June 15, 2012 business daily | 13
MARKETS GAMING STOCKS - DAILY PERFORMANCE (Hong Kong Stock Exchange) 19.6
31.4
12.3
19.4
31.2
12.2
19.2
31
12.1
30.8
12.0
30.6
11.9
19.0 18.8
30.4
11.8
18.6
30.2
11.7
26.4
14.0
18.9
26.2 18.7
26.0
13.9
25.8
18.5
25.6 13.8
25.4
Commodities ENERGY
CURRENCY EXCHANGE RATES
NAME
PRICE
WTI CRUDE FUTURE Jul12
82.88
0.314693779
-16.60293822
111.4899979
77.40000153
BRENT CRUDE FUTR Jul12
97
-0.133841244
-8.170027454
125.6100006
94.34999847
GASOLINE RBOB FUT Jul12
265.34
-0.075318219
-2.258076399
332.1799994
246.4999914
GAS OIL FUT (ICE) Jul12
841.25
-0.737463127
-6.4758199
1045.75
810
2.189
0.183066362
-32.50077089
4.941000462
2.095999956
NATURAL GAS FUTR Jul12 HEATING OIL FUTR Jul12 METALS
DAY %
YTD %
(H) 52W
261.17
0.030640775
-8.126077321
331.9299936
256.3099861
1620.69
0.6502
3.5644
1921.18
1478.78
Silver Spot $/Oz
28.9638
0.303
4.0553
44.2175
26.085
Platinum Spot $/Oz
1480.88
1.989
6.1943
1915.75
1339.25
Palladium Spot $/Oz
620.97
0.0548
-4.9778
848.37
537.54 1955.75
LME ALUMINUM 3MO ($)
1964
-0.203252033
-2.772277228
2675.25
LME COPPER 3MO ($)
7390
-0.067613252
-2.763157895
9905
6635
LME ZINC
1882
0.106382979
2.005420054
2539.5
1718.5
3MO ($)
LME NICKEL 3MO ($) AGRICULTURE ROUGH RICE (CBOT) Jul12
16980
-1.135371179
-9.246392304
25195
15980
13.86
-0.251889169
-9.824333116
19.375
13.72500038
517
1.273261508
-11.81236674
673.5
499
Dec12
WHEAT FUTURE(CBT) Dec12
PRICE
(L) 52W
Gold Spot $/Oz
CORN FUTURE
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
YTD %
-0.1104 -0.1735 0.4086 0.391 0.4791 -0.0088 -0.0026 -0.0251 -0.2016 0.0317 -0.156 0.0434 0.0117 -0.2011 0.5863 0.0142 -0.5643 -0.4133 -0.3949 0.0802 0
(H) 52W
-2.4684 -0.045 -1.7079 -2.9242 -3.0383 0.1039 0.116 -1.1852 -4.8994 -0.0634 1.1388 1.1255 2.8263 -4.0216 -0.6838 1.3291 2.9067 1.5556 2.965 -0.1403 0.0097
(L) 52W
1.1081 1.6618 0.9772 1.4578 84.18 8.0449 7.8113 6.4909 56.515 31.96 1.3199 30.716 44.35 9662 88.637 1.24736 0.90835 9.4168 11.6817 117.74 1.0311
0.9388 1.5235 0.7071 1.2288 75.35 7.9823 7.7529 6.2769 43.855 29.63 1.1992 28.661 41.879 8458 72.057 1.00749 0.79505 7.8544 9.8423 95.6 1.0288
(H) 52W
(L) 52W
ARISTOCRAT LEISU
NAME
2.91
-1.689189
32.27272
3.25
1.88
632699
CROWN LTD
8.58
1.060071
6.056858
9.29
7.45
5051389
0.078
0
-10.34483
0.124
0.06
2035500
22.2
-0.6711409
20.65218
24.45
14.24
8848180
0.233
0.4310345
1.304346
0.405
0.204
100000
2.98
0
6.428573
4.39
2.3
10000
CHINA OVERSEAS
17.22
-1.487414
32.66564
17.86
9.99
17815946
CHINESE ESTATES
8.98
-0.1112347
-28.16
13.68
8.3
144000
CHOW TAI FOOK JE
9.03
0.3333333
-35.12931
15.16
8.55
5085925
EMPEROR ENTERTAI
1.17
-0.8474576
5.405404
2.04
0.97
847071
FUTURE BRIGHT
0.82
0
95.2381
1.09
0.3
396000
GALAXY ENTERTAIN
18.82
-4.467005
32.16292
24.95
8.69
11403680 1023139
662
0.379075057
-8.055555556
898
629.5
1314.5
-0.397802614
9.155075773
1400
1115.75
COFFEE 'C' FUTURE Sep12
153.25
-0.616083009
-34.57844184
288.8500061
152.75
SUGAR #11 (WORLD) Oct12
19.59
-0.457317073
-14.19185283
26.03999901
19.23999977
AMAX HOLDINGS LT
COTTON NO.2 FUTR Dec12
70.42
0.014202528
-19.83151184
106.5
64.61000061
BOC HONG KONG HO
PRICE
CENTURY LEGEND CHEUK NANG HLDGS
World Stock MarketS - Indices
DAY %
0.9957 1.5536 0.9544 1.2582 79.32 7.9913 7.7584 6.3705 55.7988 31.57 1.282 29.942 42.635 9449 78.972 1.20083 0.80985 8.0096 10.0539 99.8 1.03
MACAU RELATED STOCKS
SOYBEAN FUTURE Nov12
NAME
18.3
DAY % YTD %
VOLUME CRNCY
COUNTRY
PRICE
DAY %
YTD %
(H) 52W
(L) 52W
DOW JONES INDUS. AVG
US
12496.38
-0.6157248
2.282128
13338.66016
10404.49
NASDAQ COMPOSITE INDEX
US
2818.61
-0.8603376
8.193778
3134.17
2298.89
HANG SENG BK
102.6
-0.5813953
11.3402
125
84.4
FTSE 100 INDEX
GB
5449.11
-0.6327717
-2.210405
6084.08
4791.01
HOPEWELL HLDGS
19.94
0.201005
0.4028167
24.903
18.56
646913
DAX INDEX
GE
6114.93
-0.6104845
3.671875
7523.53
4965.8
HSBC HLDGS PLC
65.25
-0.2293578
10.59322
79.6
56
13937301
NIKKEI 225
JN
8568.89
-0.2206608
1.342819
10255.15
8135.79
HANG SENG INDEX
HK
18808.4
-1.1464
2.02887
22835.03
16170.35
CSI 300 INDEX
CH
2560.421
-0.783334
9.151857
3140.102
2254.567
MGM CHINA HOLDIN
TAIWAN TAIEX INDEX
TA
7075.1
-0.193685
0.04270341
8876.14
6609.11
MIDLAND HOLDINGS NEPTUNE GROUP NEW WORLD DEV SANDS CHINA LTD
KOSPI INDEX
SK
1871.48
0.6540025
2.505285
2192.83
1644.11
S&P/ASX 200 INDEX
AU
4042.239
-0.5302443
-0.3530462
4657.4
3765.9
ID
3791.618
-1.783284
-0.7947171
4234.734
3217.951
FTSE Bursa Malaysia KLCI
MA
1570.94
-0.3356109
2.626849
1609.33
NZX ALL INDEX
NZ
763.701
0.9841879
4.645202
806.015
JAKARTA COMPOSITE INDEX
PHILIPPINES ALL SHARE IX
PH
3335.73
-1.341579
9.546343
3518.96
3.4
0
13.71237
3.71
2.35
1248008
LUK FOOK HLDGS I
HUTCHISON TELE H
14.72
-3.157895
-45.68266
46.15
14.7
3789001
MELCO INTL DEVEL
6.14
-2.073365
6.412479
10.76
4.3
1192004
11.76
-3.448276
22.60021
17.183
7.6
4704146
3.83
-2.046036
-3.137215
5.217
2.887
344003
0.101
-0.9803922
-9.00901
0.153
0.08
0
8.96
0.3359462
43.13099
11.389
6.13
9890173 6831316
25.45
-4.323308
15.94533
33.05
14.9
SHUN HO RESOURCE
1.13
0
13
1.32
0.82
0
1310.53
SHUN TAK HOLDING
2.74
-2.836879
7.067708
4.668
2.241
2447882
700.441
SJM HOLDINGS LTD
13.86
-2.2567
10.83091
20.711
10.079
19154882
14.7
-0.4065041
9.375003
18.5
9.8
900502
18.46
-2.944269
-5.333333
27.48
14.807
4980821
ASIA ENTERTAINME
4.12
0.4878049
-29.93197
10.8692
3.66
42017
BALLY TECHNOLOGI
45.01
-2.554666
13.77654
49.32
24.74
804347 12000
2695.06
SMARTONE TELECOM WYNN MACAU LTD
HSBC Dragon 300 Index Singapor
SI
526.73
0.18
6.12
na
na
STOCK EXCH OF THAI INDEX
TH
1153.01
-0.4498282
12.45368
1247.72
843.69
HO CHI MINH STOCK INDEX
VN
425.28
-0.544889
20.97284
492.44
332.28
BOC HONG KONG HO
2.8
0
16.80355
3.15
1.81
Laos Composite Index
LO
1015.25
0.8422976
12.87328
1107.3
876.33
GALAXY ENTERTAIN
2.5025
0
33.82353
3.24
1.08
1500
INTL GAME TECH
13.22
-2.291205
-23.13954
19.15
13.12
3419296
JONES LANG LASAL
68.49
-2.795913
11.80216
99.89
46.01
275218
LAS VEGAS SANDS
45.25
-1.027997
5.897497
62.09
36.08
7274491
MELCO CROWN-ADR
11.75
-3.132729
22.14137
16.15
7.05
2807413
MGM CHINA HOLDIN
1.64
0
37.61931
2.2131
1.0025
100
MGM RESORTS INTE
10.98
-2.313167
5.273247
16.05
7.4
6882495 611639
Shanghai Shenzhen Composite index is listing the biggest companies by market capitalization. All data supplied by Bloomberg unless otherwise indicated.
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business daily June 15, 2012
Opinion The use and abuse of religious freedom Peter Singer
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Professor of bioethics at Princeton University and Laureate Professor at the University of Melbourne
hat are the proper limits of religious freedom? Marianne Thieme, leader of the Party for the Animals in the Netherlands, offers this answer: “Religious freedom stops where human or animal suffering begins.” The Party for the Animals, the only animal-rights party to be represented in a national parliament, has proposed a law requiring that all animals be stunned before slaughter. The proposal has united Islamic and Jewish leaders in defence of what they see as a threat to their religious freedom, because their religious doctrines prohibit eating meat from animals that are not conscious when killed. The Dutch parliament has given the leaders a year to prove that their religions’ prescribed methods of slaughter cause no more pain than slaughter with prior stunning. If they cannot do so, the requirement to stun before slaughtering will be implemented. Meanwhile, in the United States, Catholic bishops have claimed that President Barack Obama is violating their religious freedom by requiring all big employers, including Catholic hospitals and universities, to offer their employees health insurance that covers contraception. And, in Israel, the ultra-orthodox, who interpret Jewish law as prohibiting men from touching women to
whom they are not related or married, want separate seating for men and women on buses, and to halt the government’s plan to end exemption from military service for full-time religious students (63,000 in 2010).
Freedom scope When people are prohibited from practicing their religion – for example, by laws that bar worshiping in certain ways – there can be no doubt that their freedom of religion has been violated. Religious persecution was common in previous centuries, and still occurs in some countries today. But prohibiting the ritual slaughter of animals does not stop Jews or Muslims from practicing their religion. During the debate on the Party for the Animals’ proposal, Rabbi Binyomin Jacobs, Chief Rabbi of the Netherlands, told members of parliament: “If we no longer have people who can do ritual slaughter in the Netherlands, we will stop eating meat.” And that, of course, is what one should do, if one adheres to a religion that requires animals to be slaughtered in a manner less humane than can be achieved by modern techniques. Neither Islam nor Judaism upholds a requirement to eat meat. And I am not calling upon Jews and Muslims to do any more than I have chosen
to do myself, for ethical reasons, for more than 40 years. Restricting the legitimate defence of religious freedom to rejecting proposals that stop people from practicing their religion makes it possible to resolve many other disputes in which it is claimed that freedom of religion is at stake. For example, allowing men and women to sit in any part of a bus does not violate orthodox Jews’ religious freedom, because Jewish law does not command that one use public transport. It’s just a convenience that one can do with-
When people are prohibited from practicing their religion there can be no doubt that their freedom of religion has been violated. [But in some cases] the appeal to religious freedom is being misused
out – and orthodox Jews can hardly believe that the laws to which they adhere were intended to make life maximally convenient. Likewise, the Obama administration’s requirement to provide health insurance that covers contraception does not prevent Catholics from practicing their religion. Catholicism does not oblige its adherents to run hospitals and universities. (The government already exempts parishes and dioceses, thereby drawing a distinction between institutions that are central to the freedom to practice one’s religion and those that are peripheral to it.) Of course, the Catholic Church would be understandably reluctant to give up its extensive networks of hospitals and universities. My guess is that, before doing so, they would come to see the provision of health-insurance coverage for contraception as compatible with their religious teachings. But, if the Church made the opposite decision, and handed over its hospitals and universities to bodies that were willing to provide the coverage, Catholics would still be free to worship and follow their religion’s teachings.
Difficult issues Religious exemption from military service can be more
difficult to resolve, because some religions teach pacifism. That problem is usually resolved by providing alternative service that is no less arduous than military service (so that such religions do not attract adherents for that reason alone), but that does not involve fighting or killing. Judaism, however, is not pacifist, so, once again, there is no real issue of religious freedom at stake. The ultra-orthodox want exemption for those who spend their time studying the Torah on the grounds that Torah study is as important as military service to Israel’s well-being. Providing the option of non-combatant national service thus will not resolve this dispute, unless it consists of Torah study. But there is no reason why Israel’s secular majority should share the belief that having tens of thousands of ultra-orthodox scholars studying the Torah provides any benefit at all to the nation, and it is certainly not as arduous as military service. Not all conflicts between religion and the state are easy to resolve. But the fact that these three issues, all currently causing controversy in their respective countries, are not really about the freedom to practice one’s religion, suggests that the appeal to religious freedom is being misused. © 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 Chief REPORTER Vitor Quintã Newsdesk Cláudia Aranda, Kristy Chan, Kelsey Wilhelm, Cherry Lee, Terina Cao, Tony Lai Creative Director José Manuel Cardoso Designer Janne Louhikari 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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June 15, 2012 business daily | 15
OPINION
Booming Sweden’s wires free-market solution Business Leading reports from Asia’s best business newspapers
Taipei Times The Taiwan Research Institute (TRI) on Wednesday slashed its GDP growth forecast for this year to 2.52 percent, from the 4.02 percent it estimated in December last year. The institute, however, expects the central bank to keep its policy interest rates unchanged next week. The think tank’s forecast is lower than the 3.03 percent growth forecast issued by the Directorate-General of Budget, Accounting and Statistics last month. The TRI was the second institute to cut its forecast for Taiwan’s economy this year to less than 3 percent. TRI president Wu Tsai-yi blamed worse-than-expected economic conditions in the second quarter for the downward revision.
Asahi Shimbun Japan’s government nominated two economists who have consistently called for more aggressive monetary-easing measures as members of the Bank of Japan’s policy board. Members of the ruling and opposition parties have persistently called for such measures to propel an economic recovery before Prime Minister Yoshihiko Noda carries out his plan to increase the consumption tax rate. Takahide Kiuchi, 48, with Nomura Securities Co., and Takahiro Sato, 50, of Morgan Stanley MUFG Securities Co., were appointed on Tuesday. The new appointment comes as the previous nominee, Ryutaro Kono, a chief economist at BNP Paribas Securities (Japan) Ltd, was voted down in April.
Business Inquirer Financial services firm DBS Group said the outlook on Philippine exports for the second half of the year is “decidedly cloudy” and that it did not expect that an electronics-led surge in exports could be sustained. A policy leeway for possible moves to stimulate economic growth, which monetary authorities enjoy, may cushion the downward pressure that weak exports will have on growth this year, the Singapore-based group said in a research note. But the Philippine Central Bank is expected to keep its overnight borrowing rate unchanged at 4 percent during the policy rate-setting and to maintain a neutral stance for the rest of the year, it added.
Anders Aslund
Senior fellow at the Peterson Institute for International Economics
N
ot so long ago, Sweden could claim world leadership in unmitigated Keynesian economics, with a 90 percent marginal tax rate and a welfare state second to none. Now Swedes look at the conflict between the U.S. and German examples over whether more spending or more austerity is the key to financial salvation, and for them the choice is easy: Germany was right. Northern Europe harbours no sympathy for the spendthrifts of Southern Europe. Americans still think of Sweden as a tightly regulated socialwelfare state, but in the last two decades the country has been reformed. Public spending has fallen by no less than one-fifth of gross domestic product, taxes have dropped and markets have opened up. The situation is similar in the other Scandinavian countries, the Baltic nations and Poland. But no turnabout has been as dramatic as Sweden’s. From 1970 until 1989, taxes rose exorbitantly, killing private initiative, while entitlements became excessive. Laws were often altered and became unpredictable. As a consequence, Sweden endured two decades of low growth. In 1991-93, the country suffered a severe crash in real estate and banking that reduced GDP by 6 percent. Public spending had surged to 71.7 percent of GDP in 1993, and the budget deficit reached 11 percent of GDP.
Turning point The combination of the crisis and the non-socialist government under Carl Bildt from 1991 to 1994 broke the trend and turned the country around. In 1994, the Social Democrats returned to power and stayed until 2006. Instead of revoking the changes, they completed the fiscal tightening. In 2006, a non-socialist government returned, and Finance Minister Anders Borg, with his trademark ponytail and earring, has led further reforms. Sweden successfully weathered the global financial crisis that started in 2008, and the Financial Times named Borg Europe’s best finance minister last year. Before 2009, Sweden had a budget surplus, and it has one again. For the past two years, economic growth has been 4 percent on average, and the current-account surplus was 6.7 percent in 2011. The only concerns are the depressed demand for exports caused by the current euro crisis and an unemployment rate that is about 7.5 percent. Sweden’s traditional scourge is taxes, which used to be the highest in the world. The current government has cut them every year and abolished wealth taxes. Inheritance and
gift taxes are also gone. Until 1990, the maximum marginal income tax rate was 90 percent. Today, it is 56.5 percent. That is still one of the world’s highest, after Belgium’s 59.4 and there is strong public support for a cut to 50 percent. The 26 percent tax on corporate profits may seem reasonable from an American perspective, but Swedish business leaders want to reduce it to 20 percent. Tax competition is fierce in some parts of Europe. Most East European countries, for example, have slashed corporate taxes to 15-19 percent.
The values are competition, openness and efficiency, while social and environmental values remain – a social-welfare society without the social-welfare state
In the bad old days, the annual centralised-wage bargaining between the Trade Union Confederation and the Swedish Employers’ Confederation was a prized custom. But in the 1970s, this system led to both inflation and strikes. Today, it is long gone. Wage bargaining is still collective, but it is decentralised. Wage inflation is no longer a concern and strikes are extremely rare. The employers have won, but real wages are rising with productivity, so the workers are benefiting, as well. As everywhere, trade unions are losing members, money and power.
Debt averse Sweden has belonged to the European Union since 1995, but it isn’t a member of the euro area, and the exchange rate of its krona floats freely. Finance Minister Borg argues against a more expansionary policy in Sweden in case Europe faces a real meltdown. After the Keynesian financial and monetary stimulus in the 1970s and ’80s, which led to inflation, repeated devaluations and low growth, Swedes believe in fiscal discipline. They are scared of huge national debt and budget deficits – especially at the levels they are in the U.S. Where are the left-wing intellectuals to challenge this new
order? They have disappeared. The old socialist research organisations have closed down. The Center for Labor Market Studies was a state institution that generated propaganda, not research, and the government closed it. The Trade Union Confederation had a sophisticated research institute, which it eliminated for not being sufficiently political. The union economists, who dominated Swedish economic debate in the 1970s and ’80s, have been replaced by bank economists. The free-market right has influential research centres in Stockholm. After many years of absence from the debate, I attended a conference on the Swedish economy in the southern city of Malmo last month. Swedbank, a large bank, was the organiser, and the 180 speakers represented the full range of Swedish views. I was amazed to hear how far the consensus had moved to the free-market right, even among Social Democrats and trade-union leaders. The values are competition, openness and efficiency, while social and environmental values remain – a social-welfare society without the social-welfare state. The idea is to make it more efficient through competition among private providers. The name of the conference said it all: “Growth Days.” Wanja Lundby-Wedin, the president of the Trade Union Confederation, declared without hesitation: “We want flex-
ibility in the labour market.” She complained that the media no longer pay attention to the labour market. The reason is that it functions so well. During the global financial crisis, the metalworkers’ union quietly agreed to major wage cuts to safeguard their real incomes in the long run. The leader of that union, Stefan Lofven, has just been elected chairman of the Social Democratic Workers’ Party.
Moving right The Social Democrats haven’t only joined the free-market consensus, but seem to attack the current government from the right, pushing for a better business environment. Gone are demands for the restoration of social benefits. Opinion polls have rewarded the Social Democrats for their right turn with sharply improved ratings. Sweden is still offering good social welfare, but more efficiently and sensibly and increasingly through the private sector. This model of falling taxes and public spending is rapidly proliferating from the north of Europe toward the south, and the northern Europeans have little tolerance for the statist conservatism and fiscal negligence of Southern Europe. Nor do the Swedes understand the fiscal irresponsibility of the U.S., while they still admire American research and innovation. Bloomberg View
16 |
business daily June 15, 2012
CLOSING Nokia to cut 10,000 jobs
Dissident death ‘suspicious’: Tsang Departing Hong Kong Chief Executive Donald Tsang said the death of deaf Chinese dissident Li Wangyang was “suspicious” and he has expressed his opinion to the Chinese government. Mr Tsang said he “understands the views of Hong Kong people” after thousands took to the streets over the death of Mr Li, who was found dead in a hospital ward in the Chinese city of Shaoyang on June 6. In his last scheduled address to the Legislative Council, he said yesterday the most important thing is to ensure Hong Kong people can express their views freely.
Loss-making Finnish cellphone maker Nokia plans to cut another 10,000 jobs globally in its biggest revamp in recent history, while it warned the second-quarter loss from its cellphone business would be larger than expected. The cuts, which include the closure of Nokia’s only plant in Finland, bring total planned job cuts at the group since Stephen Elop took over as chief executive in 2010 to more than 40,000. Nokia said yesterday that it would book additional restructuring charges of around 1 billion euros (US$1.3 billion) by the end of 2013.
China, HK, new steps to boost offshore yuan market Includes ‘dim sum’ bonds and ‘swap lines’ James Pomfret and Victoria Bi
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hina and Hong Kong announced a flurry of measures on Thursday to deepen international participation in the yuan market and make trading in the currency easier, including plans to sell yuan-denominated bonds directly to foreign central banks for the first time. The mainland’s finance ministry said it would issue 23 billion yuan (US$3.6 billion) in offshore yuan bonds, known as “dim sum” bonds, in Hong Kong later this month. China already allows foreign central banks to purchase yuan bonds onshore through swap lines with the People’s Bank of China, but it was the first time Beijing has sent such a clear signal to the international community by setting aside 2 billion yuan specifically for central banks for a dim sum issue in Hong Kong. Beijing is using the Asian financial centre as a test bed for its growing efforts to internationalise the yuan, which could eventually pave the way for it to become a fully convertible global currency. In a move to further increase the supply of yuan funds in the city and allow the offshore yuan market to operate more smoothly, Hong Kong authorities said they would allow banks to borrow yuan term funds
from an existing ‘swap line’ with the PBOC to counter any supply tightness in future, thus reducing market volatility. A swap line is another term for a temporary reciprocal currency arrangement between central banks. They agree to keep a supply of their jurisdiction’s currency available to trade to other central banks at the going exchange rate.
Yuan funds With effect from today, the Hong Kong Monetary Authority will provide yuan funds against necessary collateral to banks involved in offshore yuan business, the territory’s de-facto central bank said in a notification posted on its website. The swap line between Hong Kong and the People’s Bank of China is the biggest at 400 billion yuan (US$62.8 billion) among the many swap lines Beijing has signed with various central banks across the world. “The facility would serve to address short-term yuan liquidity tightness which may arise from time to time, for example, due to capital market activities or sudden need for yuan liquidity by Participating AIs’ overseas bank customers,” Peter Pang, deputy chief executive at the HKMA, said in a statement.
Revolutionary moves – China and HK to boost offshore yuan trade
“It would help reduce potential market disruptions and hence enhance market confidence at all times and support the long-term development of the offshore RMB market,” he said. Retail investors; companies that are eyeing China investments; and speculators have flocked to the yuan
Suu Kyi calls for Myanmar job investment Democracy leader ‘moved’ by reception on European tour
M
yanmar democracy leader Aung San Suu Kyi called for international investment to create jobs for her country’s youth at the start of a landmark tour of Europe following years under house arrest. Ms Suu Kyi, who arrived at the UN offices in Geneva to flowers and applause, appealed for the investment in a speech to delegates at the International Labour Organization conference. “It’s not so much joblessness as
hopelessness that threatens our future,” she said, making her first visit to Europe since in effect being barred from foreign trips 24 years ago and subsequently placed under house arrest. “Unemployed youth lose confidence in the society that has failed to give them the chance to realise their potential. “Foreign direct investment that results in job creation should be invited,” she added. Ms Suu Kyi also spoke of the
plight of migrant workers from Myanmar in Thailand, calling for coordinated social, political and economic policies “that will put our country once again on the map of the positive and the successful.”
Unexpected reception She told her audience she was “profoundly moved” by the “totally unexpected, very warm welcome” she had received as she began a five-country tour which will include
and a spate of new yuan-related investment products in recent years on expectations that Beijing would continue to let its currency appreciate against the U.S. dollar. But retail interest has waned in recent months as the yuan weakened to near six-month lows. Reuters
a speech in Oslo to accept the 1991 Nobel Peace Prize she was unable to receive at the time. Her visit marks a new milestone in the political changes that have swept the country formerly known as Burma since decades of military rule ended last year, bringing to power a new quasicivilian government. She also told reporters that she thought French and US oil giants Total and Chevron, long a target of human rights activists for their activities in Myanmar, should continue to operate there. But she urged foreign governments not to allow their companies to do joint ventures with Myanmar’s state-owned oil and gas company until it improved transparency and accountability. Ms Suu Kyi said: “The Myanmar Oil and Gas Enterprise... with which all foreign participation in the energy sector takes place through joint venture arrangements, lacks both transparency and accountability at present.” Reuters/AFP