Macau Business Daily, March 4, 2013 by Business Daily

Year I Number 231 MOP 6.00 Monday March 4, 2013 Editor-in-chief Tiago Azevedo Deputy editor-in-chief Vitor Quintã

Favoured industries announced for Hengqin www.macaubusinessdaily.com

Possible bump in road for VIP gambling Gambling revenue in Macau rose nearly 12 percent year-on-year in February to 27.1 billion patacas (US$3.4 billion) according to government data. But there are hints of a possible bumpy ride for Macau’s VIP casino business from late spring onward. An index of manufacturing activity in China published by HSBC Holdings Plc and Markit Economics showed a reading of 50.4 for February, the lowest in four months.

he Administrative Committee of Hengqin New Area has published the list of industries it wants to develop on Macau’s near neighbour. It covers seven categories: tourism, logistics and trade, financial services, cultural and creative, medical, scientific research and development, and new high technology services. The director of the committee, Niu Jing, said the list was only the first step, and that more guidance would be released “in due course”, containing important additional information including tax incentives for industries, and policies for the Guangdong-Macau Cooperation Industrial Park. China’s official news agency Xinhua said the industries could “further promote appropriate economic diversification in Macau”. More on page 4

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LVS admits ‘likely violations’ of FCPA Las Vegas Sands Corp. has been responsible for “likely violations of the books and records and internal controls provisions” of the U.S. Foreign Corrupt Practices Act, a law that prevents the bribing of foreign officials. The company said so in its annual report for the financial year ended December 31 2012, filed with the U.S Securities and Exchange Commission on Friday U.S. time.

SMEs fish for talent – in shrinking pool The city’s smaller businesses in the hospitality and tourism sectors confirm they are struggling to fill vacant positions. “We stand no chance in competing with the big enterprises,” the general manager of EGL Tours (Macau) Co Ltd, Sabina Iong told Business Daily. SMEs’ woes were highlighted at a jobs fair held on Friday at the Institute for Tourism Studies.

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March 1

HSI - MOVERS Name

Interview

Casino revenue growth ‘slower’ in 2013 Hoffman Ma Ho Man, deputy chief executive of casino resort Ponte 16, expects a slowdown in gaming revenue growth this year, due to global economic conditions and the recent crackdown by the central government on underground banking. But he thinks there will be substantial expansion of the mass market during the next two years and an extension of the individual visa scheme for mainland Chinese visitors.

Pages 6 & 7

%Day

CHINA RES POWER

6.44

CHINA PETROLEU-H

2.27

BELLE INTERNATIO

2.24

KUNLUN ENERGY CO

1.87

HUTCHISON WHAMPO

1.44

BANK OF CHINA-H

-2.46

CHINA COAL ENE-H

-2.47

HANG LUNG PROPER

-3.16

ALUMINUM CORP-H

-4.78

CITIC PACIFIC

-5.54

Source: Bloomberg

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business daily March 4, 2013

macau Police retirees question Wynn’s university gift A police pension fund in the United States asked a U.S. District judge in Las Vegas for more time to amend a Macau-related lawsuit against Steve Wynn and other directors of Wynn Resorts Ltd. Lawyers for Louisiana Municipal Employees’ Retirement System claim that a 1.1 billion patacas (US$135 million) donation pledged by Wynn Resorts to the University of Macau breached Wynn Resorts’ fiduciary duties and wasted company assets. A new suit will be filed by March 18 seeking the judge’s consent to pursue it, according to a court filing.

Spring VIP revenue possibly heading for bumpy ride A China industrial activity index at four-month low despite near 12 pct gaming growth in February Michael Grimes

michael.grimes@macaubusinessdaily.com

ambling revenue in Macau rose nearly 12 percent yearon-year in February – a period including the Lunar New Year holiday. Gross gaming revenue expanded to 27.1 billion patacas (US$3.4 billion) according to data released by the Gaming Inspection and Coordination Bureau. “This was at the low end of our expected range of 27 billion to 28 billion patacas, although we believe that certain instances of low VIP hold masked what otherwise would likely have been a record month,” said Grant Govertsen of Union Gaming Research Macau in a note. There were hints over the weekend of a possible bumpy ride for Macau’s VIP casino business from late spring onward. An official Chinese manufacturing index fell in February – the second consecutive month – according to the National Bureau of Statistics. A separate China manufacturing gauge from HSBC Holdings Plc and Markit Economics showed a reading of 50.4, the lowest in four months. HSBC’s index is considered by analysts to give a better indication of activity in large private sector firms and among small- and medium-sized businesses. In the past PMI numbers out of China have been an indicator for Macau’s high roller business. Typically there has been a two-month lag between a downward trend in mainland manufacturing activity and that being reflected in the VIP gambling volumes. Since last year however in most months more profitable mass-market gaming has been significantly outpacing the VIP segment’s expansion. In January while the market as a whole grew by 7.3 percent year-on-year, mass-market table gaming in Macau grew 29.3 percent.

Market share Macau GGR market share in February 2013 – according to figures quoted by the Lusa news agency – was: SJM Holdings Ltd 25.5 pct; Sands China Ltd 21.5 pct; Galaxy Entertainment Group Ltd 18.6 pct; Melco Crown Entertainment Ltd 12.5 pct; Wynn Macau Ltd 11.5 pct; MGM China Holdings Ltd 10.1 pct.

Possible downturn – China factory surveys suggesting slowing industrial activity

Some analysts have attributed the stronger performance of the mass segment to its lower base number, and to macroeconomic factors within the mainland that have seen an expansion of China’s middle class and some reduction in the economy’s dependence on export-based manufacturing. They argue this has happened as the country’s huge internal market has grown and spawned an increasing demand for so-called ‘invisibles’ such as insurance, accounting, franchising and domestic tourism. Others take a less sanguine view of the apparent over performance of the Macau mass market at this stage in the feeder market China’s economic and social development. They question whether in fact some VIP players are simply being reclassified as ‘premium mass’ to satisfy a political need in China and Macau to prove that Macau is diversifying its economy away from high stakes baccarat and away for being a playground chiefly for the super rich. “With the China PMI indices usually acting as a two month leading indicator of VIP gambling in Macau, you might expect mass-market revenue figures to adjust at a similar pace to VIP,” says Ben Lee of IGamiX Management & Consulting Ltd, an industry advisory and research firm. “Not only are we seeing mass revenue growth at around 30 percent year-on-

11.5%

Year-on-year growth in gaming revenue for February

year, but that’s being achieved with declining visitor numbers year-onyear in recent months” adds Mr Lee.

Smaller benefits The industry argument against the player reclassification theory – expressed to Business Daily by several senior casino executives – is that there’s no motivation for a VIP currently being offered junket incentives such as rebates on losses and a complimentary hotel suite, to swap to being a high end mass player directly managed by the casino and receiving more modest benefits such as gift vouchers. The VIP versus premium mass debate is against the background of a political transition in China’s leadership. The formal handover of power of the national presidency

to Xi Jinping to is expected to occur tomorrow at the first plenary session of the 18th National People’s Congress (NPC) in Beijing. Shortly before the public appearance of the new Politburo line up at the start of the current NPC session in November, a number of Macau junket executives were reportedly arrested Pansy Ho Chiu King, cochairperson of MGM China Holdings Ltd told Business Daily last week that the rumours of a further crackdown on junkets – possibly linked to a national drive against corruption – were being generated by the media not by facts on the ground. A report last week in the mainland publication Caijing magazine – noted in the past for its good political contacts in China and for breaking important stories – suggested possible links between now disgraced Communist Party official Bo Xilai, former party boss in Chongqing, and the Macau junket investor Neptune Group. The presence of a lot of smoke doesn’t actually mean there’s a fire. But on February 5 The Times, a London newspaper that had previously accurately reported – retrospectively – the Macau junket arrests suggested there might be a repeat performance of arrests or disruption of the city’s VIP trade at or around the time of this week’s plenary session. With Bloomberg News

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MACAU Neptune’s second half profit up 33 pct Neptune Group Ltd, an investor in Macau casino junkets, saw its second half 2012 profit reach HK$306.64 million (US$39.5 million) – 33 percent up on a year earlier. Market wide, the gross from VIP baccarat – Neptune’s core business interest – rose by only 0.93 percent year-on-year in the six months to December 31 according to Gaming Inspection and Coordination Bureau data. In its first half results filing Neptune said it had interests in 51 VIP gaming tables at three Macau casinos. But in August it announced a deal to take over profit share agreements at three junket operations controlling 64 tables.

editorial

Shady negotiations

Steve Jacobs – his lawsuit sparked internal LVS inquiry says U.S. filing

Tiago Azevedo

tiago.azevedo@macaubusinessdaily.com

LVS admits ‘likely violations’ of a U.S. law on overseas bribery Says internal inquiry revealed breaches relating to books, records and internal controls

as Vegas Sands Corp. has been responsible for “likely violations of the books and records and internal controls provisions” of the U.S. Foreign Corrupt Practices Act, a law that prevents the bribing of foreign officials. The company said so in its annual report for the financial year ended December 31, 2012, filed with the U.S Securities and Exchange Commission on Friday U.S. time. It didn’t give specific details of the likely violations, but reiterated that a subpoena from the SEC received in February 2011 “may have emanated from the lawsuit filed by Steven C. Jacobs”. That’s a reference to the suit for wrongful termination filed by Mr Jacobs, a former chief executive for LVS’s Macau unit Sands China Ltd, following his sacking in July 2010. Friday’s filing added that the preliminary finding of likely violations came about because of the firm’s own internal investigation after it received the SEC’s subpoena. The issuing of that legal notice also sparked an investigation into LVS’s Macau business by the U.S. Department of Justice.

LVS’s internal inquiry was conducted by its audit committee made up of three independent members of the LVS board, said the firm in Friday’s filing. LVS added that the possibility of FCPA infringements, reported by audit committee “do not have a material impact on the financial statements of the company” and that the firm had improved its practices on record keeping and internal controls.

Mainland fine According to the LVS earnings report for the third quarter of 2010, a company affiliate involved in nongaming marketing activities in the People’s Republic was given notice of a 10.8 million yuan (US$1.7 million) fine in relation to “certain payments made by the company’s wholly foreignowned enterprises to counterparties and other vendors in China”. The SEC in the U.S. has powers independent of the U.S.’s FCPA to sanction American companies found responsible for seeking “improper advantage” from foreign officials. The US Securities Exchange

Act 1934, as amended in October 2010, allows for a securities issuer to be fined a maximum of US$2 million for breaching either of two provisions under Section 30A of the Act, headlined ‘Prohibited Foreign Trade Practices by Issuers’. Section a) (2)(A) of the Act forbids “any officer, director, employee, or agent of such issuer or any stockholder thereof” from “influencing any act or decision of such foreign official in his official capacity, (ii) inducing such foreign official to do or omit to do any act in violation of the lawful duty of such official, or (iii) securing any improper advantage,” on behalf of a US-listed company. Friday’s 2012 annual report filing by LVS mentioned that between March and April 2011 three shareholder derivative actions were issued against the company alleging “breach of fiduciary duties in failing to properly implement, oversee and maintain internal controls to ensure compliance with the FCPA” or substantially similar claims. The company says it intends to defend all three suits “vigorously”. M.G.

ransparency and openness are the sort of words typically heard in official speeches. They were central to the campaign pledges made by Chief Executive Fernando Chui Sai On in 2009. What the public sector has, however, is an opaque structure where decisions are made behind closed doors, despite the public interest attached to the matters discussed by the government and private companies, some providing services to the public. It was brought to the public’s attention last week that ferry operators are negotiating with the Maritime Administration about increasing the fares. Turbojet and Cotai Water Jet have applied for an average fare increase of about 13 percent, the government confirmed on Wednesday. Proposals to increase the fares were submitted to the government in September and October. Four months passed before the public became aware of the proposals. The government should be more open about such matters. We know that this is a matter for the government to decide with the operators but recent cases have demonstrated that the public prefers to know about such increases in advance, instead of being surprised by them. It seems that different government bureaus make the same mistakes, although we would expect them to learn from experience. Last year the Transport Bureau had to freeze an increase of 23 percent in what it pays the bus companies to run the buses. Even though the contracts of the bus companies include a provision allowing for the payment to be revised every year, nobody informed the public. The government froze the increase in the face of a public outcry, with people calling for better bus services before the government began handing more money to the operators. The government later acknowledged that its dealings with the bus companies had not been open enough, Secretary for Transport and Public Works Lau Si Io pledging to make his department’s decision-making more open. The ferry fare increment again shows inadequacies in how information is released to the public. The government has its fair share of shortcomings, mainly failure to be sufficiently open and to make decisions in good time. The ferry operators asked for fare increases last year, but the government has yet to give them an answer. Ferry fares went up by 11 percent in 2011. The head of the Maritime Administration says it is still analysing the proposals for another increase, questioning the figure of 13 percent. If the bureau thinks the increase is too extreme, it should have already made a counter-proposal to the operators. An even worse delay is the government’s response to Macao Water Supply Co Ltd’s request for an increase of 26.2 percent in what the government pays it to supply the city with water. It proposed the increase in May, citing rising costs as the reason. More than 10 months have gone by, and the company is still waiting for a reply. From a business perspective, it is senseless to have to wait for so many months for a decision. The government must be more open about these dealings and it needs to be swifter in making decisions. It has to safeguard the public interest, but it must also provide the right conditions for companies to operate in. Only then will it be able to demand the quality of service that we all look forward to.

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HOSPITALITY Mixed figures Statistics for the meetings, incentives, conferences and exhibitions (MICE) industry in the fourth quarter of last year confirm that the number of MICE events last year decreased compared to 2011. The decline prolongs a decreasing trend since 2010, when the number of events peaked. Contractions have been particularly clear in the number of meetings in general, and in the numbers of incentive gatherings and government meetings in particular. The number of incentive gatherings has fallen by almost 70 percent since 2010, and number of government meetings has fallen by 53 percent. The number of corporate meetings seems somewhat resistant to the downtrend. It was 3 percent higher last year than in 2010. But 2011 was the peak year for corporate meetings, when 643 were held. Last year 634 were held. The number of exhibitions increased. Last year 20 percent more exhibitions were held than in 2011, and 7 percent more than in 2010.

Another positive development last year was the rise in the number of people taking part in MICE events, especially exhibitions. The number rose by 28 percent to nearly 1.5 million people. In the context of other tourism data, this is an exceptional number. The figures are obtained from answers to a questionnaire returned by event organisers, who may have an interest in ‘over-counting’. But assuming that the same counting method is applied consistently and that measures are taken to prevent reporting bias, the rise in the number of people taking part in MICE events is the silver lining of an otherwise gloomy set of data.

J.I.D.

26.9 %

Fall in the number of MICE events since 2010

Hengqin officials make their pitch to industry Critics say there is still long way to go before Macau can take full advantage of the opportunities the island’s development creates Tony Lai

tony.lai@macaubusinessdaily.com

he disclosure of more details from the plan for the economic development of Hengqin Island makes it is easier for Macau companies to try to make best use of opportunities but more needs to be done, critics of the endeavour say. The Administrative Committee of Hengqin New Area announced on Thursday the list of industries it wants to develop on Hengqin, according to the mainland’s official news agency, Xinhua. The long-awaited catalogue, approved by the National Development and Reform Commission, includes 200 industries which Beijing is likely to try to lure to the island by offering incentives. The industries are in seven categories: tourism, logistics and trade, financial services, cultural and creative, medical, scientific research and development, and new high-technology services. Xinhua said these industries could “further promote appropriate economic diversification in Macau” and the integration of industry in Macau, Hong Kong and Guangdong. Macao Association of Economic Sciences chairman Joey Lao Chi Ngai has doubts over the island’s development. “In how many of the proposed industries do Macau businesses have advantages?” Mr Lao said. “We should take advantage of Hengqin to develop industries that complement Macau in developing into a global tourism centre, as stated in the central government’s plan.” He said more options for the development of the island had to be explored.

Streets ahead The director of the Association of Pastry and Souvenir Traders, Alan Ho Hoi Ming, said the association’s members had welcomed the announcement. Xinhua reported that the catalogue included food and retailing industries that fitted in with Macau’s ambitions in the field of tourism. “We always consider the mainland market of great importance and actively seek business opportunities there,” Mr Ho told Business Daily. His association has more than 30 members, including the owners of the Choi Heong Yuen Bakery and Cherikoff brands.

Hengqin Island may one day have a touristy street similar to Taipa’s Rua do Cunha

“We have had many meetings by ourselves or with officials in the past,” he said. “We are now proposing to develop something similar to Rua do Cunha on Hengqin which will include shops for pastries, handmade crafts, and cultural and creative products.” Mr Ho said the association would soon submit its proposal for a Hengqin version of Rua do Cunha to the mainland authorities via the Macau Trade and Investment Promotion Institute. Rua do Cunha, in Old Taipa Village, is popular with tourists shopping for souvenirs.

Trend setting While Macau sellers of pastries and souvenirs are leaping into action, many of the city’s small and medium enterprises are still waiting for the government to take the lead. “There are between 10 and 20 industries in the catalogue in which local SMEs can engage, like food

and beverage, hotels and retailing,” said the vice-chairman of the Macau Small and Medium Enterprises Association, Daniel Iong Ieng Chun. “But we are different from the big enterprises, which can simply invest in developments there. We are limited in terms of capital and scale,” Mr Iong said. He hopes the government will start some projects on the island first and invite SMEs to take part. “This catalogue serves as a framework, but there are still issues we have to know more about, like the registered capital of investments, incentives, tax benefits and other measures,” he said. The director of the Hengqin administrative committee, Niu Jing, said on Thursday that the catalogue was only the first step, and that more guidance would be released in due course, containing information about, for instance, tax incentives for industries and policies for the Guangdong-Macau Cooperation Industrial Park.

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MACAU Re-exports almost double in January Total merchandise exports for January amounted to 1.01 billion patacas (US$126 million), up by 62 percent year-on-year, official data show. However, the hike took place mostly on the back of re-exports (the export of goods produced abroad and initially imported to Macau). The value of re-exports (826 million patacas) increased by 98 percent, but that of domestic exports (181 million patacas) decreased by 11 percent. Total merchandise imports reached 7.22 billion patacas, up by 31 percent year-on-year. The merchandise trade deficit amounted to 6.22 billion patacas for January.

Hotels, restaurants fish for workers in tiny pool A lack of suitable workers is a common problem for businesses, regardless of their size Tony Lai

tony.lai@macaubusinessdaily.com

hether small enterprises or multinationals, companies in the hospitality and tourism industries have a common difficulty: finding suitable employees. “It’s getting more difficult,” the Four Seasons Hotel Macau’s director of human resources, Pernille Baumann, told Business Daily at a job fair on Friday. “When I first got here, there was just over 4 percent unemployment in 2008 or 2009. Unemployment is now standing at 1.9 percent, which is not considered as unemployment anywhere in the world,” Ms Baumann said. The jobless rate is the lowest since the government began collecting data on unemployment, in July 1996.

The Four Seasons was one of 22 businesses that took part in the job fair, held at the Institute for Tourism Studies, where 1,000 jobs were on offer to new graduates. The human resources director of the MGM Grand Macau, Fatima Cou said: “We want to recruit all the graduates majoring in hospitality, but there are not enough of them in the market.” “The supply is not directly proportional to the demand, so it means huge competition for us, the employers, to find good candidates.” Ms Baumann said: “We take one [worker] from others and somebody will take one from us. This is like anywhere in the world. But is it a little bit more competitive here? Yes.” Some of the city’s smaller

businesses in the hospitality and tourism sectors say they are struggling to compete in the labour market and fill vacant positions. “We stand no chance in competing with the big enterprises,” said the general manager of EGL Tours (Macau) Co Ltd, Sabina Iong.

Bright prospects EGL Tours offers monthly pay ranging from 9,000 patacas (US$1,125) to 10,000 patacas for inexperienced employees to arrange tours and conventions in Hong Kong and Macau. But this is less than the 12,000 patacas or so offered by the dominant players in the market, according to

people in the industry. Small World Entertainment Ltd executive director Bruno Simões told Business Daily that bigger companies were offering workers both high salaries and benefits such as health care. “It’s also more difficult to develop a career inside a small company than in those big companies,” he said. Small World has a staff of seven that run team-building exercises and exhibitions. Of course, what is a curse for employers is a blessing for graduates and other workers seeking their first full-time job. “It’s not difficult to find a job now,” said Nardo Wong, a student in his final year at the tourism institute. Mr Wong rates his prospects of finding a job as “very bright”. He expects opportunities to improve over the next few years as the next wave of resorts on the Cotai Strip is completed. The flip-side to such optimism is expressed by figures in the hospitality industry such as Ms Baumann. “We’re all slightly worried about the future,” she said. “It’s about maximising what you can get out of the employees without overworking them. But it is tough.”

Tourism services have room for improvement

The hospitality industry still has thousands of positions vacant, particularly at entry level

he president of the Institute for Tourism Studies believes the services the city provides to tourists can still be better to match up with the facilities. Fanny Vong Chuk Kwan told reporters on Friday, during the Career Day organised by the institute, “There is still room for further improvement. No place can reach a perfect standard.” “We have many big-scale infrastructures here which are at a very high standard,” she said. “High-quality experience, for tourists and residents as well, needs complements from both hardware and software.” The gap between the standard and the price of the services that Macau provides to tourists has been one of the reasons for year-on-year declines in visitor arrivals for nine months in a row, some tourism industry experts have told Business Daily. Macau received over 2.3 million travellers in January, down by 6.1 percent from the same period of last year. With more big resort projects, particularly in Cotai Strip, opening up in next few years, Ms Vong expects the industry to require more professionals. However, whether the institute will recruit more students to help training up the locals depends on its teaching staff and the progress of its expansion, the president said. Kazuo Okada – not going quietly T.L.

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business daily March 4, 2013

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Volatile fuels Macau is absolutely dependent on imported fuel. Prices tend to be subject to frequent and sometimes big changes. This adds a degree of uncertainty to the way the economy works and affects business decisions. The chart below shows the average prices from month to month of three types of fuel: unleaded petrol, gasoil – which includes diesel – and liquefied petroleum gas (LPG). Note that in the case of gasoil we have data only from 2009 onwards. Overall, the prices follow a similar upward trend.

The dawn of the mass market

Ponte 16 – a casino resort on the edge of Macau’s historic old town – is currently awaiting government approval for the project’s third phase. Hoffman Ma Ho Man, the resort’s deputy chief executive officer – and also deputy chairman of Success Universe Group Limited, the main minority investor in Ponte 16 – tells Business Daily there are some changes ahead for the gaming industry in Macau. He believes there will be a slowdown in gaming revenue growth this year, in the light of global economic conditions and the recent crackdown by the central government on underground banking. But he thinks there will be substantial expansion of the mass market during the next two years and that the central authorities will allow more mainland Chinese to get an individual visa for the territory. Luciana Leitão

leitao.luciana@macaubusiness.com

Photo by Manuel Cardoso

For all types of fuel, the difference between the lowest price, registered in 2009, and the highest, registered last year, is pronounced. The difference is smallest in the case of gasoil, but even there the highest price is 52 percent above the lowest. The highest price for petrol is 65 percent above the lowest. The highest price for LPG is 71 percent above the lowest. Prices oscillated between 25 percent above the average and 25 percent below. LPG is less liable to frequent changes in price, but it is the fuel with the biggest swings in price. Two changes are particularly notable. One is the collapse of prices in the second half of 2008, when the average price of petrol dropped by almost 40 percent. The other is the increase of more than 30 percent in the price of LPG between October and November last year. J.I.D. The content of this column is the work of Business Daily’s journalists.

27.3 %

Extent by which the price of LPG in December was above the average for 2008-2012

Success Group has increased its stake in Ponte 16 after Maruhan Corp decided to sell a five percent stake. Does that mean Ponte 16’s performance is improving at a faster pace than you had imagined? It has been difficult because the project opened in 2008, when the financial crisis happened. Now, after five years, I think we have brought the project on track and we’re very satisfied with the business environment and the performance of our property.

It has always been positive and we have always worked together with them, especially in some of the festive holidays. We tried to work together and bring some food festivals with all of the Macau famous street food to try to promote the local culture to the tourists, [and] the [New Year] countdown every year and some of our tour guides promoting surrounding restaurants; has always led to a close and good relationship with the neighbours.

Why did Maruhan Corp, a leading company in the pachinko industry in Japan, opt to leave? [According to an existing shareholder agreement], it had an option to exit and if it didn’t [exercise now] Maruhan would have to remain a shareholder. Either it decided to exit [now] or they would have to remain forever, so they decided to leave.

The approval on Ponte 16’s third phase has been delayed because former secretary for Transport and Public Works Ao Man Long originally signed it off. Have you had any signs of a positive response from the government? We are still waiting. I think it’s up to the government and how they are working now. We have consulted our appointed architect and also our lawyers to work with the government and they are getting things sorted out.

Ponte 16 is in the middle of an old neighbourhood. Is it still a competitive advantage? I think as a corporation what we have done is choose a good location. We’ve also brought more [employment] opportunities to a local neighbourhood. Business on the [surrounding] streets was quiet when we opened, but now we’re seeing a lot of new restaurants, shops opening in the area. I think that has benefited the local people, because if we had been opening in the middle of nowhere, it wouldn’t be as beneficial to the local economy as what we’re doing now. Have the people living in that area given you a positive feedback?

Do you have any idea of when the government might grant you the approval? We are still working with the government to try to push it forward. You had already announced your intention to begin the construction works in 2012 and finish it by 2014. Do you think it is still possible to deliver the third phase on your deadline? It’s a government procedure, it’s not [something] that I can control. You’ve already stated that the third phase of the development project will bring an extension of the casino

as well as a shopping arcade. Can you tell us more? It’s a shopping arcade and we are thinking of putting in more of the cultural side of the shopping experience in Macau, rather than a big shopping arcade. The mix has to remain a secret at the moment. With the extension of the property, you will ask for a 20 percent increase to the resort’s gaming tables. Considering the cap on gaming table growth, do you believe you will have it? They [the government] probably won’t say anything yet. The application for gaming tables comes when your construction is almost finished. I would say yes because for a new investment for a somewhat big amount of money it’s fair that the government would grant us the tables, just like for any other new property being built in Macau. When you do the math starting from the 5,500 gaming cap and the three percent yearly growth limit, it doesn’t add up. Would you say the gaming cap is flexible to a point it becomes almost fictional? I wouldn’t say it’s flexible, I would interpret it as scientific calculation, meaning the size of the property and the scale of the investment can equal a reasonable amount of tables to be granted. The cap is [just] a benchmark or a reference, otherwise there would be no building permits for any of the new projects, because the cap would not allow the projects to have tables. But then it seems that for every project that is being opened the government has a calculation of how many tables are going to be granted.

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MACAU Macau to compete. The industry is changing quickly considering a lot of places in Asia are thinking of issuing casino licences, such as [South] Korea, Vietnam or even Taiwan, [and] Japan. Who could be Macau’s biggest competitor? I don’t think there will be one major competitor, but there will be a bottleneck when casinos are everywhere, diluting Macau [dominance]. I don’t see anywhere that could compare to Macau being a single city with many [casino] options of an international standard. How about Hainan’s cashless casino that was forced to shut down? Could Hainan be a strong competitor to Macau? Actually no. Considering the location, it can be even more convenient to fly from a lot of mainland China cities to Macau than to Hainan – despite the visa policy [for Macau entry from the mainland]. Considering that it [Macau] is convenient and the [quality] product that is being provided, I don’t see [Hainan as] a big threat to Macau. [But] One issue to be considered is that a lot of these other places will have other reasons for people to visit, such as business opportunities, trading, shopping and supporting infrastructures and Macau needs to provide more than just gaming in the future. Macau is not providing that at the moment? Yes, in a way. A bridge connecting to Hong Kong; with the [Hong

With the recent crackdown of the central government on wealth gained from corruption in China, is the gaming here going to be severely affected? All the news point that this is the direction of the central government, in terms of anticorruption and in terms of illegal underground transfers. I don’t think there will be too much of an impact in terms of the lump sum total revenue, but it will affect the junket operations a little bit. [But not substantially], because I believe the VIP market is mostly the very wealthy people in China and that group of people will only be affected by the economy. The restrictions on government officials coming to Macau have been established early on and the VIP business is now a very small pot [of players]. Considering that activities such as money transfer for gambling are related to the junkets, are these firms still indispensable in this market? Junkets are unique for Macau and also unique if you’re targeting the Chinese market, because China is

I don’t think any of the [casino] operators have gathered enough intelligence [on players] to handle what the junkets are doing now

Kong] airport support is going to be very beneficial but I don’t think Macau is working closely enough with Hong Kong and other surrounding regions. How could Ponte 16 help Macau in promoting services other than gaming? I think bringing up the local flavour and culture is one of the big things. For other casinos, it is very easy to copy [something]. You can build some of the main resorts anywhere identically. But the territory’s history and historical attractions and the food, that’s unique and you cannot copy that anywhere else. That’s been our direction and, as always, we’re going to stand by that. We had a gaming revenue growth slowdown in mid 2012, but the year ended up with a record, yet again. Considering the leadership change in mainland China, what are your predictions for 2013? My guess would be a single-digit to a low double-digit growth in total gaming revenue, with a more substantial mass-market growth and flat VIP revenue. Considering the economy and a lot of worries about China – first the economy and then the anticorruption [drive] – and also the relations with the surrounding neighbours [Japan, Philippines] isn’t that good. People always said that if things get worse, there could be a war and this and that. The environment is not good and people are going to be spending more cautiously with such kind of news floating around.

too big of a country. At this point I don’t think any of the [gaming] operators have gathered enough intelligence [on players] to handle what the junkets are doing now. With the continuous growth of the mass market, will the junkets remain indispensable? It has always been my belief that the mass market is going to get a more substantial growth [than the VIP segment] during the next two to three years. The role of the junkets will not be replaced, but I think the trend of the governance in China will allow more FIT [free independent traveller] individuals than the big-lump-sum VIPs bringing huge amounts of money out of China. You have previously said that you believed the government could reduce the gaming taxes. Why did you say that? The reason I said that was because of the competition on the commission [paid to junkets]. Now that the commission has been capped, I think that the margin [of profit] is very transparent and that [a tax reduction] won’t be necessary anymore. Everybody competes by commission – not only in Macau, but also in surrounding places such as Singapore, the Philippines. Macau is a place where you [operators] compete against each other [on commission], but then there is also regional competition that you need to consider. If the commission were to continue to go up in the surrounding areas [casino jurisdictions] than that might put pressure on the government to be more flexible with the junket commission in order for

Macau at your breakfast table. With Business Daily. Find us in the following newsstands Pacapio at San Ma Lo Opposite HKSB (Nam Van) Beside Luso Bank Building Wen Hang Bank at San Ma Lo In front of Portuguese Bookshop In front CTM at San Ma Lo In front Daiso shop at San Ma Lo Next to S. Lourenço Market Next to Human Resources Dpt Next BNU at Av. Sidonio Pais San Miu, Av. Horta e Costa Next to Metro Park Hotel

8 |

business daily March 4, 2013

macau

Windsor Arch developer running for AL election Businessman says he is not afraid of electoral corruption ties Stephanie Lai

sw.lai@macaubusinessdaily.com

Victory Real Estate Development is building Windsor Arch in Taipa

uan Vai Lam, a local businessman and head of the developer of residential project Windsor Arch, confirmed to Business Daily he is running for the upcoming Legislative Assembly election. The head of Victory Real Estate Development said his election team would mainly contain young professionals from social services and

engineering sectors this time. Mr Kuan’s first attempt at getting a legislator’ seat was in 2009. At the time he was competing along with his eight-member Union for the Progress and Development, a group with figures representing the property sector and charitable associations. “We will no longer use the name Union for the Progress and Development for this coming election,

and actually we are still considering a new name,” said Mr Kuan. “We would like to represent the interests of the middle-class in Macau, and the small and medium businesses,” he added. Mr Kuan’s election team will have a single list of eight to 10 candidates, with two of them coming from the old Union for the Progress and Development list.

But among those will not be businessman Lai Cho Wai, Mr Kuan said. In September of 2009 the Union for the Progress and Development was embroiled in an Commission Against Corruption investigation over a electoral corruption case. As the court ruled in 2011, 11 persons were sent to jail for bribing residents to vote for Mr Lai, the number three on the Union for the Progress and Development’s electoral list. The investigation found that the 11 defendants promised rewards of up to 700 patacas (US$88) to all those who voted for the union, and on election day the voters were arranged to gather at certain restaurants and provided free catering and transportation. Mr Lai, who was representing charitable group ‘Leng Fong’ in the 2009 electoral campaign, is the brother of Lai Tong Sang, currently being trialled in Canada as the leader of a crime triad Mr Kuan believes the 2009 corruption charge would not affect his candidacy this time. “We were not involved in the corruption case,” he stressed. In 200, the Union for Progress and Development could not get a seat in the assembly, as they got only 5,389 votes, about 3.8 percent of the total. Civil Watch, headed by University of Macau scholar Agnes Lam Iok Fong, obtained a similar number of votes (5,329) and also failed to win a seat. Ms Lam told Business Daily that her team “was likely” to take part in the election again this year, though it is yet to come up with a concrete list and other campaign details. Competing for the two new directly-elected seats, both Mr Kuan and Ms Lam’s teams are expected to have a candidate list by the end of the month the soonest, Business Daily has learned. Another property developer, Ung Choi Kun, was the only among the incumbent 12 directly-elected lawmakers to announce he would not run for re-election.

Milk powder stirs no panic buying in Macau Customs say there was no change in infant formula carried into the mainland Stephanie Lai

sw.lai@macaubusinessdaily.com

side from a priority access to imported infant formula, Macau’s resident parents are now able to check the price range for the major milk powder brands at the Consumer Council website, updated every month. The council announced on Friday that local parents could now access the agents’ quotation and the retail price range for local pharmacies. The infant formula brands that are covered by council’s price update include Mead Johnson, Cow & Gate, Nestle NAN, Abbott, Wyeth Gold, Friso and Snow Brand. Just as the local government’s rationing scheme on infant formula, the price update is only targeted at the products aimed at children up to one year. About 3,000 parents have signed up for the provisional rationing scheme, which allows local parents to subscribe for at most five tins per month, 1,300 of which have

already purchased the allotted infant formula. The Health Bureau admitted that the number is “lower than expected”. The 3,000 registered subscribers only represent about 40 percent of the 7,315 babies born in the past year. Unlike Hong Kong, the Macau authorities have imposed no limits on the infant formula people can take across the borders. Starting from March 1, Hong Kong requires individuals to carry two tins of infant formula at most. The Macau Customs said they noticed no particular change in the infant formula carried across the border since Hong Kong has adopted the new restrictive measures. “Normally the individuals going across the border carry two to three tins of infant formula at most. In some occasional cases it would be four tins,” said a Customs spokesperson. “This habit still goes on.” However, individuals found

Parallel importers usually take two to three tins of milk powder in each trip, earning roughly 40 patacas

carrying “exceptionally huge” quantities of infant formula across the border, exceeding a value of

5,000 patacas (US$625), could be fined of 1,000 to 50,000 patacas for violating export regulations.

March 4, 2013 business daily | 9

GREATER CHINA Beijing ‘well-prepared’ for currency war China is “fully prepared” for a looming currency war should it, though “avoidable,” really happen, said deputy governor of China’s central bank Yi Gang late Friday. Mr Yi, vice governor of the People’s Bank of China, made the comment as the G20 sharpened their stance against governments trying to drive down their currencies to gain a trade advantage, namely Japan. “In terms of both monetary policies and other mechanism arrangement, China will take into full account the quantitative easing policies implemented by central banks of foreign countries,” Mr Yi said.

China’s State Council stepped up efforts to cool the property market

Monetary tightening pressure eased: central bank adviser Despite slowing inflation and more property curbs, authorities confident on higher growth

ressure on China to tighten monetary policy and macroeconomic controls is easing as inflation will be “relatively low” this month due to slowing foodprice gains, central bank adviser Song Guoqing said. Compared with January and February, the pressure “has in my view, been relieved,” Mr Song said at a forum in Beijing on Saturday. “That’s good news for growth.” He estimated first-quarter economic expansion will accelerate to 8.3 percent. The People’s Bank of China drained cash from the financial system in each of the two weeks since the Lunar New Year holiday ended on February 15, boosting speculation that it was tightening amid concerns inflation was accelerating and real-estate price gains were excessive. The State Council stepped up efforts to cool the property market on Friday, five days before the country’s legislature is due to start its annual meeting that will see Li Keqiang take over from Wen Jiabao as premier. The measures “will lead to downside risks to property prices and investment but the effectiveness of the policy depends on whether the money supply will be tightened as well,” Zhang Zhiwei, chief China economist at Nomura Holdings Inc.

in Hong Kong, said in a Friday note. Monetary policy will probably tighten “in the next several months,” which will slow economic growth, he said.

Control prices Housing minister Jiang Weixin said he was confident the government will be able to control home prices, the Shanghai Securities News reported on its website Saturday. Mr Jiang, a member of the Chinese People’s Political Consultative Conference, spoke in Beijing on the eve of that advisory body’s annual meeting. The legislature, the National People’s Congress, will begin its session on tomorrow. China’s economy expanded 7.9 percent in the final three months of 2012 from a year earlier, the first pickup in two years. Purchasing managers indexes released over the past week indicate the economy’s recovery from a sevenquarter slowdown may have peaked. Mr Song, a professor at Peking University, said Saturday he expects first-quarter growth will be higher “mainly because the comparative base in the first quarter of last year is very low.” The property tightening measures were announced too late to affect expansion for the period, he said.

Gross domestic product climbed 8.1 percent in the first three months of 2012 from a year earlier, down from 9.7 percent in the first quarter of 2011, according to previously released data from the National Bureau of Statistics. Mr Song, one of three academics who sit on the People’s Bank of China monetary policy committee, said “low inflation” is still the main objective for China’s monetary policy. Consumer inflation eased to 2 percent in January from a year earlier after a 2.5 percent increase the previous month, government data show. UBS AG estimated February’s rate was 3.3 percent while Mizuho Securities Asia Ltd. forecast 3 percent, as the Lunar New Year holiday pushed up food prices, according to reports last week.

Price expectations China’s new-home prices rose for a ninth straight month in February, SouFun Holdings Ltd. said Friday, 10 days after Mr Wen told local authorities to “decisively” curb property speculation and ordered cities with rapid price gains to limit home purchases. Property controls “are still in a crucial period and expectations of further gains in housing prices are increasing,” the State Council said

in its Friday statement. It called for higher down payments and interest rates for second-home mortgages in cities with “excessively fast” price gains and ordered stricter enforcement of taxes. Real estate companies found hoarding land or collaborating to push up home prices will be barred from getting new development loans or raising funds in capital markets, it said. Chinese regulators “know well the damage a real-estate bubble can cause to a nation’s growth and treasury,” David Loevinger, former senior coordinator for China affairs at the United States’ Treasury Department, said by e-mail. “With the middle class being priced out of city centers, China can ill afford to again let real estate prices run far ahead of household income,” said Mr Loevinger, now an analyst in Los Angeles at TCW Group Inc, which oversees about US$138 billion. The People’s Bank of China drained a net 5 billion yuan (US$803 million) of capital last week after withdrawing 910 billion yuan the previous week, the most since Bloomberg started compiling the data in 2008. Governor Zhou Xiaochuan said on Friday the cash withdrawal was aimed at removing funds injected before the Lunar New Year festival, according to a report on the Securities Times website. The overnight money-market rate rose 5 basis points on Friday, increasing for a ninth straight day. The rate completed its biggest weekly jump in a year, climbing 190 basis points to 4.10 percent in Shanghai, according to a weighted average rate compiled by the National Interbank Funding Center. Bloomberg News

10 |

business daily March 4, 2013

GREATER CHINA

Cnooc to cede operating control of US assets

nooc Ltd, China’s largest offshore oil and natural gas producer, was barred from controlling Gulf of Mexico oilfields under United States’ terms for its US$15.1 billion takeover of Nexen Inc, people familiar with the matter said. In its purchase of Calgary-based Nexen, Cnooc acquired about 200

deep-water leases in the Gulf with reserves equivalent to about 205 million barrels of oil, one of the largest holdings in the Gulf, according to Nexen’s website. The state-owned Chinese oil explorer surrendered operating control of those assets to quell American national security concerns,

Air China to buy 31 Boeing planes A

ir China signed an agreement Friday to buy 31 Boeing passenger and cargo planes from Boeing, subject to government approval, the Chinese flag carrier said. Air China will purchase 20 Boeing 737-800 aircraft, two Boeing 7478 aircraft, one Boeing 777-300ER aircraft and its unit Air China Cargo

would buy eight Boeing 777 cargo planes, the airline said in a statement. The total value of the deal is US$5.2 billion at current Boeing list prices. “The Boeing Company has granted to the company significant price concessions with regard to the Boeing Aircraft,” Air China said. Air China said the purchase would

said two people familiar with the agreement who asked not to be named because the terms aren’t public. Washington is restricting Chinese transactions when the investment targets are close to military installations or have access to certain kinds of technology. Nexen controlled platforms in the

expand its overall fleet capacity by almost 19 percent and in particular strengthen the airline’s market share in the international market. “The company expects the Boeing Aircraft will deliver more cost-efficient performance and provide more comfortable services to passengers,” it said. Deliveries of the passenger planes are expected in 2014 and 2015, while Air China Cargo anticipated delivery of the 777 Freighters from 2013 to 2015. Boeing spokesman Jim Proulx said the United States aerospace giant would announce the order upon approval from Beijing. “We look forward to working with Air China, a long-time valued customer, to obtain approval,” he said in an email to AFP. China’s leading airline, which last year partnered with American carrier JetBlue Airways, is seeking to expand its business in the United States. Air China has been facing financial headwinds in recent months. According to the latest available earnings report, the carrier posted a 16 percent drop in third-quarter net profit from a year ago while sales edged up 2.2 percent. Boeing, based in Chicago, has not sold more than five 747-8 aircraft a year since 2006, and concern that persistently weak demand could prompt the company to curtail production had been mounting. Boeing expects to increase its deliveries to China by 60 percent this year, the head of its operations in the country was quoted as saying in Saturday’s China Daily. More than 120 aircraft will be delivered to the country’s airlines this year, with single-aisle planes such as the 737 the most popular type, Marc Allen, president of Boeing China, was cited as saying. AFP/Bloomberg News

near-shore West Delta oilfield within 50 miles of the Naval Air Station Joint Reserve Base at Belle Chasse, Louisiana, southeast of New Orleans. “The Chinese are very sensitive about parity in economic relations,” and may retaliate with stronger protections for Chinese companies against U.S. competition, Loren Thompson, chief operating officer of the Lexington Institute, an Arlington, Virginia-based research group, said in a phone interview. Cnooc will still own the assets and be allowed some general oversight, as well as to collect revenue from the properties, according to the people and an e-mail reviewed by Bloomberg sent by Nexen to its employees. The “most significant” term of Cnooc’s agreement with the U.S. committee was its transition to nonoperator from operator, Peter Addy, the president of Nexen’s U.S. unit, wrote in an e-mail to employees on February 20, which was seen by Bloomberg. “In the coming months, we will devote our attention to identifying and developing procedures to remove Nexen from its role as an operator,” Mr Addy wrote in the e-mail. The terms are a “slight negative” for Cnooc, because they probably will force it to seek partners to operate the existing production Nexen had controlled, as well as any exploration on its leases, John Stephenson, a vicepresident and portfolio manager who helps oversee C$2.8 billion (US$2.73 billion) at First Asset Investment Management Inc. in Toronto, said in a phone interview. Bloomberg News

Carlyle-led group buys hotel chain 7 Days Carlyle Group LP, the second-biggest private-equity firm by assets, agreed to buy Chinese budget-hotel operator 7 Days Group Holdings Ltd in a deal valued at US$688 million. Carlyle is joining Sequoia Capital and Actis LLP to pay US$13.80 for each share for the Guangzhou-based company, a 31 percent premium to the closing price on September 25, the day before 7 Days received the original buyout offer at US$12.70 a share. The buyer group received US$120 million in bank financing to help fund the deal, which is expected to close in the second half of 2013.

Taiwan touchpanel maker to invest US$1 bln Taiwan’s TPK Holding, a leading manufacturer of touch screens for Apple, will invest up to Tw$30 billion (US$1.01 billion) this year to meet demand for mobile and other devices, media reported yesterday. The capital will be used to raise production on the island and in mainland China’s Fujian province, company chairman Michael Chiang said while breaking ground for a new plant in central Taiwan. Its existing research and development unit in Taiwan will also be expanded, he said. The company’s touch screens are used in smartphones, tablet PCs, notebook PCs, and other consumer electronic items.

March 4, 2013 business daily | 11

ASIA Philippines may shun borrowing abroad The Philippines may shun the global bond market this year thanks to record-low interest rates at home and flush money supply supports, Treasurer Rosalia de Leon said. “If we see again that we have a good market reception in the domestic auction like last year we can increase the size of our domestic borrowing,” Ms De Leon said. “As much as possible we would like to fund more domestically and if 100 percent is possible, why not?” The Philippines plans to borrow a total of 730 billion pesos (US$17.9 billion) this year, she said.

Japan, EU to launch free trade talks

Japanese prime minister Shinzo Abe

European carmakers fear competition, Japanese exporters more optimistic as yen tumbles

apan and the European Union (EU) are to hold a summit this month to formally launch negotiations on a huge free trade deal, a report said yesterday. European Union president Herman Van Rompuy and European Commission head José Manuel Barroso will visit Tokyo in the last week of March to meet prime minister Shinzo Abe, the Nikkei business daily said. The report said the two sides would reach a final accord to launch longawaited negotiations aiming to liberalise trade and remove barriers on services and investment. The European Union and Japanese leaders also plan to begin separate talks on a “political accord” featuring cooperation on security, the environment and science and technology.

European Union trade ministers agreed in November to launch free trade talks with Tokyo while pledging to safeguard Europe’s struggling carmakers. European car and car parts manufacturers fear the removal of tariffs will lead to a rise in Japanese car imports, pointing to a previous trade deal with South Korea that bumped up sales of South Korean vehicles in Europe. European Union trade ministers have pledged to safeguard struggling carmakers but auto companies have criticised the envisaged deal, with the European Automobile Manufacturers’ Association calling it “a one-way street’ for Japanese cars. According to a survey of companies released by the Cabinet Office, Japanese exporters expect to be

profitable as a weaker currency helps boost the yen value of their overseas earnings. Shipments will yield profit if the exchange rate averages 83.9 yen against the dollar, according to the survey of 2,374 companies in January. The yen will probably trade at 88.4 per dollar in one year’s time, according

to the average expectation of companies in the survey. The numbers compare with a forecast of profitability at 82 yen versus an expected exchange rate of 80.3 yen, in a similar survey a year earlier. Toyota Motor Corp., Fuji Heavy Industries Ltd., the maker of Subaru cars,

Nintendo Co. have all raised their profit forecasts for the fiscal year that ends in March as the weaker yen boosts overseas sales when earnings are repatriated. The yen closed at 93.59 to the dollar on March 1, depreciating from 78.39 six months earlier. AFP/ Bloomberg News

Judge slashes Samsung’s Apple penalty in half Mobile giants may again face off in new damages trial

pple Inc had a major setback in its ongoing mobile patents battle with Samsung Electronics on Friday, as a federal judge slashed a US$1.05 billion jury award by more than 40 percent and set a new trial to determine damages. Apple won the award last year against Samsung in what was the biggest and highest-profile of a number of legal trials around the world, centered on the use and alleged abuse of patents in a highly competitive mobile market. The iPhone maker convinced the jury that the Korean company, which in 2012 overtook Apple as the global smartphone leader, had infringed on its iPhone and iPad patents. “We are pleased that the court decided to strike US$450,514,650 from the jury’s award,” the Korean company said in a statement. “Samsung intends to seek further review as to the remaining award.” Apple declined to comment. Friday’s ruling by Judge Lucy Koh of the United States’ District Court

Northern District of California in San Jose means the two mobile electronics companies may once again square off in a California court to decide how much of the US$450.5 million struck from the damages, associated with 14 Samsung products, should stand. Ms Koh said the jury had incorrectly calculated part of the damages and that a new trial was needed to determine the actual, final dollar amount. That could end up less than or more than the original US$450.5 million set by the jury. Ms Koh, rejecting Apple’s motion for an increase in the jury’s damages award, ordered a new trial on damages for the 14 devices, which include the Galaxy SII. The jury’s award to Apple for 14 other separate products, totaling almost US$599 million, was maintained. “The court has identified an impermissible legal theory on which the jury based its award and cannot reasonably calculate the amount of excess while effectuating the intent of the jury,” Ms Koh said in her ruling.

Samsung and Apple are fighting in court over alleged abuse of patents

Apple and Samsung account for one in two mobile phones sold. They also rely on each other for components and business. Their legal tussle has been viewed

as a proxy war between Apple and Google Inc as Samsung’s flagship Galaxy smartphones and tablets run on Google’s Android operating system. Reuters

12 |

business daily March 4, 2013

MARKETS Hang SENG INDEX NAME

NAME

PRICE

DAY %

Volume

CHINA UNICOM HON

11.04

-1.252236

16452925

POWER ASSETS HOL

CITIC PACIFIC

11.26

-5.536913

20705990

SANDS CHINA LTD

PRICE

DAY %

VOLUME

AIA GROUP LTD

33.6

95605089

ALUMINUM CORP-H

3.19

-4.776119

151121788

BANK OF CHINA-H

3.57

-2.459016

381141751

BANK OF COMMUN-H

6.04

-1.628664

64247009

BANK EAST ASIA

31.7

8692951

BELLE INTERNATIO

14.6

2.240896

43951865

ESPRIT HLDGS

BOC HONG KONG HO

26.3

0.5736138

14589613

HANG LUNG PROPER

CATHAY PAC AIR

14.56

0.5524862

3517608

CHEUNG KONG

118.9

-1.409619

4307140

7.5

-2.470741

30077159

CHINA COAL ENE-H CHINA CONST BA-H

6.34

-0.9375

265415973

CHINA LIFE INS-H

23.15

-0.6437768

53487314

CHINA MERCHANT

26.8

-0.3717472

2448436

CHINA MOBILE

CLP HLDGS LTD

67.55

1.198502

7558283

CNOOC LTD

14.88

-2.362205

102535250

COSCO PAC LTD

12.32

-0.805153

4230456

HANG SENG BK

-0.2304147

8335312

0.4301075

3812221

85.3

-0.6406523

25690630

12852874

HUTCHISON WHAMPO

-1.910828

16403427

IND & COMM BK-H

CHINA PETROLEU-H

9.02

2.267574

242315876

LI & FUNG LTD

TENCENT HOLDINGS

268.6

0.1491424

3191203

20.4

0.2457002

5657927

10.96

0.7352941

12724226

66.8

-1.474926

6550493

WHARF HLDG

21.65

-1.053248

1147889

WANT WANT CHINA

140.1

23.1

-0.3496503

2111480

HONG KG CHINA GS

84.55

6283420

99.75

0.6379585

HONG KONG EXCHNG

84.75

1.436266

8997628

5.52

-0.8976661

212365879

10.48

0.7692308

16528179

3239463

CHINA RES ENTERP

24.8

-1.587302

2966620

MTR CORP

CHINA RES LAND

22.6

-0.2207506

5824796

NEW WORLD DEV

14.2

-0.5602241

14625099

CHINA RES POWER

22.3

6.443914

8497712

PETROCHINA CO-H

10.5

-1.500938

70339118

CHINA SHENHUA-H

-1.360544

18141164

PING AN INSURA-H

64.25

-1.001541

9349909

8557851

SWIRE PACIFIC-A

126.2

2871725

12504651

-1.916667

TINGYI HLDG CO

2592972

4855955

-0.405954 -0.2836879

9350806

-1.297498

1.301518

36.8 117.7

12302029

-0.6988564

70.05 14.06

-3.161398

53.25

Volume

SINO LAND CO

-1.185771

78.15

DAY %

SUN HUNG KAI PRO

HENDERSON LAND D

CHINA OVERSEAS

PRICE

29.1

HENGAN INTL

HSBC HLDGS PLC

NAME

MOVERS

3 23035

INDEX 22880.22 HIGH

23031.69

LOW

22461.56

52W (H) 23944.74 (L) 18056.4

22460

27-February

1-March

Hang SENG CHINA ENTErPRISE INDEX PRICE

DAY %

VOLUME

PRICE

DAY %

Volume

AGRICULTURAL-H

3.97

-0.75

71938390

CHINA PACIFIC-H

28.1

-1.748252

14508752

AIR CHINA LTD-H

6.5

3.503185

27760000

CHINA PETROLEU-H

9.02

2.267574

242315876

ALUMINUM CORP-H

3.19

-4.776119

151121788

CHINA RAIL CN-H

8.2

0.8610086

13641352

ANHUI CONCH-H

29.2

2.998236

19128964

CHINA RAIL GR-H

4.27

1.425178

31362412

BANK OF CHINA-H

3.57

-2.459016

381141751

CHINA SHENHUA-H

-1.360544

18141164

CHINA TELECOM-H

NAME

6.04

-1.628664

64247009

4.01

-0.2487562

38940654

27.85

1.272727

4772664

DONGFENG MOTOR-H

11.56

1.760563

20584452

4.87

-2.208835

37749622

GUANGZHOU AUTO-H

6.37

-1.393189

5362210

CHINA COAL ENE-H

7.5

-2.470741

30077159

HUANENG POWER-H

8.05

0.877193

20869140

CHINA COM CONS-H

7.26

-1.089918

17260067

IND & COMM BK-H

5.52

-0.8976661

212365879

CHINA CONST BA-H

6.34

-0.9375

265415973

JIANGXI COPPER-H

18.12

-2.47578

11738641

CHINA COSCO HO-H

4.11

-1.201923

12647521

PETROCHINA CO-H

10.5

-1.500938

70339118

23.15

-0.6437768

53487314

PICC PROPERTY &

11.26

1.077199

16979417

CHINA LONGYUAN-H

7.19

1.697313

26747070

PING AN INSURA-H

64.25

-1.001541

9349909

CHINA MERCH BK-H

16.58

-1.426873

24779280

SHANDONG WEIG-H

7.2

-0.1386963

8024000

BANK OF COMMUN-H BYD CO LTD-H CHINA CITIC BK-H

CHINA LIFE INS-H

CHINA MINSHENG-H

10.74

-0.5555556

37371700

SINOPHARM-H

23.95

-2.244898

2305155

CHINA NATL BDG-H

12.14

2.533784

39302395

TSINGTAO BREW-H

48.6

0.1029866

2244277

CHINA OILFIELD-H

15.94

-3.159174

7312675

WEICHAI POWER-H

29.45

0.170068

3919785

NAME

PRICE

DAY %

Volume

11.84

-1.497504

28183651

2.65

-0.7490637

51247301

ZOOMLION HEAVY-H

10.04

-1.953125

13915480

ZTE CORP-H

12.76

-3.625378

20461980

YANZHOU COAL-H ZIJIN MINING-H

MOVERS

1 11450

INDEX 11344.24 HIGH

11448.63

LOW

11056.71

52W (H) 12354.22 11050

(L) 8987.76 27-February

1-March

Shanghai Shenzhen CSI 300 PRICE

DAY %

VOLUME

PRICE

DAY %

Volume

PRICE

DAY %

Volume

AGRICULTURAL-A

2.95

-1.666667

143711219

CITIC SECURITI-A

14.77

0.8191126

126950322

SANY HEAVY INDUS

11.78

-0.08481764

40374884

AIR CHINA LTD-A

5.51

-0.7207207

15997485

CSR CORP LTD -A

4.76

-0.6263048

32946387

SHANDONG DONG-A

49.02

2.983193

5351703

ALUMINUM CORP-A

4.86

-0.8163265

14642467

DAQIN RAILWAY -A

7.9

0.6369427

45017659

SHANDONG GOLD-MI

-0.8498584

10928608

19.87

2.475503

38365860

DATANG INTL PO-A

42078073

EVERBRIG SEC -A

NAME

ANHUI CONCH-A BANK OF BEIJIN-A

9.54

-1.242236

NAME

4.17

-0.7142857

8565527

SHANG PHARM -A

13.68

2.548726

15405120

15.41

0.3908795

22133110

SHANG PUDONG-A

11.17

0.994575

223208905

BANK OF CHINA-A

2.99

-0.6644518

53638096

GD POWER DEVEL-A

2.77

0.7272727

44125979

SHANGHAI ELECT-A

BANK OF COMMUN-A

4.98

-0.9940358

87715593

GEMDALE CORP-A

7.13

-1.655172

71422846

SHANXI LU'AN -A

11.53

-1.452991

22534428

GF SECURITIES-A

16.11

-0.06203474

53674354

25765162

GREE ELECTRIC

29.66

2.099828

19131135

BANK OF NINGBO-A BAOSHAN IRON & S

-0.1996008

4.1

4901542

21.59

-0.8268259

16900084

SHANXI XINGHUA-A

36.61

-0.2995643

5619122

SHANXI XISHAN-A

12.97

-1.593323

19395523 58499318

25.55

1.308485

6911830

GUANGHUI ENERG-A

19.5

4.055496

59688373

SHENZEN OVERSE-A

6.5

-2.108434

CHINA CITIC BK-A

4.72

-0.6315789

31092376

HAITONG SECURI-A

12.67

1.278977

137872969

SICHUAN KELUN-A

68.87

-0.1739383

779474

CHINA CNR CORP-A

4.75

-0.8350731

38196163

HANGZHOU HIKVI-A

34.48

4.706954

6129964

SUNING APPLIAN-A

6.55

-1.206637

63309887

CHINA COAL ENE-A

7.54

-1.049869

13728002

HENAN SHUAN-A

71.1

-0.5594406

1738512

TASLY PHARMAC-A

63.52

0.9696392

2203067

20.26

-0.5888126

16736167

TSINGTAO BREW-A

35.06

0.3147353

1679367

BYD CO LTD -A

CHINA CONST BA-A

4.7

-0.2123142

38712530

HONG YUAN SEC-A

CHINA COSCO HO-A

4.15

-0.7177033

11767691

HUATAI SECURIT-A

11.38

2.430243

127185271

WEICHAI POWER-A

25.15

-1.604069

9666609

CHINA CSSC HOL-A

24.04

-0.9068425

11181284

HUAXIA BANK CO

11.18

-0.5338078

46358774

WULIANGYE YIBIN

24.56

0.4909984

30673429

CHINA EAST AIR-A

3.41

-0.2923977

14279635

IND & COMM BK-A

4.17

-0.9501188

59157854

YANGQUAN COAL -A

14.85

-1.720715

19467184

CHINA EVERBRIG-A

3.41

-0.5830904

135622138

INDUSTRIAL BAN-A

20.16

1.459487

167518280

YANTAI WANHUA-A

17.22

-0.3472222

10172595

CHINA INTL MAR-A

13.33

-1.186064

9911499

INNER MONG BAO-A

32.99

-0.9011715

23548623

YANZHOU COAL-A

17.48

-1.242938

6229219

CHINA LIFE INS-A

18.36

-2.857143

39955398

INNER MONG YIL-A

27.47

-0.3627131

8051587

YUNNAN BAIYAO-A

76.94

1.303489

1410598

CHINA MERCH BK-A

13.07

-1.729323

127952678

INNER MONGOLIA-A

4.99

-0.3992016

31948171

ZHONGJIN GOLD

15.25

-0.3919007

21782632

CHINA MERCHANT-A

14.29

75116381

JIANGSU HENGRU-A

33.86

2.76176

5382996

ZIJIN MINING-A

3.69

-0.2702703

46937938

14995761

JIANGSU YANGHE-A

78.7

-0.1269036

5388437

ZOOMLION HEAVY-A

9.36

-0.2132196

43473736

JIANGXI COPPER-A

24.31

-1.419303

17425988

ZTE CORP-A

9.91

1.122449

28737138

JINDUICHENG -A

12.08

-1.064701

8228621

CHINA MERCHANT-A

28.18

0.4634581

CHINA MINSHENG-A

10.18

-1.737452

374031888

CHINA NATIONAL-A

8.39

0.4790419

30981701

-0.8168028

4116376

JIZHONG ENERGY-A

15.38

-1.913265

32385788

19.69

-2.621167

28054527

KANGMEI PHARMA-A

17.18

1.356932

15786885

173.82

-0.6742857

3800345

CHINA OILFIELD-A CHINA PACIFIC-A CHINA PETROLEU-A

7.21

-0.2766252

35827230

KWEICHOW MOUTA-A

CHINA RAILWAY-A

5.63

-0.3539823

19285549

LUZHOU LAOJIAO-A

31.87

0.3779528

8997392

CHINA RAILWAY-A

3.06

-0.3257329

28668042

METALLURGICAL-A

2.13

-0.9302326

22226604

2.54

-0.3921569

14159374

MOVERS 112

CHINA SHENHUA-A

22.64

-1.350763

17988186

CHINA SHIPBUIL-A

5.48

1.107011

66745397

PETROCHINA CO-A

9.01

-0.441989

16535536

23.06

0.2608696

103782380

HIGH

2678.89

LOW

2576.05

CHINA SOUTHERN-A

3.77

-0.7894737

34808436

CHINA STATE -A

3.83

-1.542416

97775811

PING AN INSURA-A

45.95

-2.379435

47742744

CHINA UNITED-A

3.53

-0.8426966

80499752

POLY REAL ESTA-A

12.63

-1.482059

55045994

12.04

0.3333333

87506614

QINGDAO HAIER-A

13.24

0.4552352

24201359

7.2

-0.9628611

21245437

QINGHAI SALT-A

26.97

-0.9911894

6886023

8.71

0.2301496

17327807

SAIC MOTOR-A

16.48

-2.137767

46408221

PRICE DAY %

Volume

PRICE DAY %

Volume

CHINA VANKE CO-A CHINA YANGTZE-A CHONGQING CHAN-A

10 2680

INDEX 2668.836

NINGBO PORT CO-A PING AN BANK-A

178

52W (H) 2791.303 (L) 2102.135

2570

27-February

1-March

FTSE TAIWAN 50 INDEX NAME ACER INC

NAME

PRICE DAY %

-1.701323

26744710

FORMOSA PLASTIC

76.8

2.4

7514631

TAIWAN MOBILE CO

ADVANCED SEMICON

25.15

2.235772

22537092

FOXCONN TECHNOLO

81.5

5404488

ASIA CEMENT CORP

36.85 -0.4054054

5255814

FUBON FINANCIAL

40.4

TPK HOLDING CO L

563

0.1779359

3020513

26814913

TSMC

105

0.4784689

35081170

UNI-PRESIDENT

57.3

ASUSTEK COMPUTER

366.5

1.805556

4440394

HON HAI PRECISIO

81.6

-0.122399

39584092

AU OPTRONICS COR

13.05

1.162791

75318497

HOTAI MOTOR CO

233.5

3.318584

722520

135

0.7462687

3532010

HTC CORP

280

1.083032

12122018

38.05

1.196809

25128695

HUA NAN FINANCIA

17.3 -0.2881844

6362974

CHANG HWA BANK

17.2 -0.8645533

10508165

LARGAN PRECISION

817

2.125

2023642

CHENG SHIN RUBBE

81.1

0.6203474

5690881

LITE-ON TECHNOLO

45.55 -0.4371585

9140447

CHIMEI INNOLUX C

16.6

1.219512

74558605

MEDIATEK INC

338.5

1.49925

8561292

CHINA DEVELOPMEN

8.85

0.2265006

34157892

MEGA FINANCIAL H

24.95

2.04499

22028772

CHINA STEEL CORP

27.65

1.654412

18664505

NAN YA PLASTICS

57.5

1.054482

10085855

CHINATRUST FINAN

17.65

0.5698006

32890147

PRESIDENT CHAIN

164.5

0.304878

2476561

CHUNGHWA TELECOM

92.4

0.2169197

10696879

QUANTA COMPUTER

63.9

0.9478673

5042879

COMPAL ELECTRON

20.9

0.7228916

18049086

SILICONWARE PREC

32.4

1.726845

14923473

DELTA ELECT INC

111.5

0.9049774

3362847

SINOPAC FINANCIA

13.75

1.851852

20063121

FAR EASTERN NEW

33.25

1.06383

4332763

SYNNEX TECH INTL

59.9 -0.1666667

3440709

FAR EASTONE TELE

0.4366812

7724998

TAIWAN CEMENT

CATCHER TECH CATHAY FINANCIAL

FIRST FINANCIAL

38.85

2.102497

8099416

0.5291005

14490199

TAIWAN COOPERATI

17.1

0.5882353

4661264

FORMOSA CHEM & F

76.1

0.6613757

5175122

TAIWAN FERTILIZE

71.5 -0.5563282

4294999

FORMOSA PETROCHE

82.4 -0.1212121

2036997

TAIWAN GLASS IND

28.5

1339898

1.604278

Volume

103.5

4996002

3.243243

13511749

UNITED MICROELEC

11.05 -0.4504505

27581805

WISTRON CORP

33.25

0.7575758

13799517

YUANTA FINANCIAL

15.5

0.9771987

11656513

YULON MOTOR CO

53.9

1.506591

3022161

MOVERS

2 5575

INDEX 5570.71 HIGH

5570.71

LOW

5497.81

52W (H) 5639.93 5490

(L) 4719.96 26-February

1-March

March 4, 2013 business daily | 13

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

Max 32.9

Average 32.666

Min 32.5

33.00

50.20

19.6

32.85

49.85

19.4

32.70

49.50

19.2

32.55

49.15

19.0

32.40

Last 32.55

Max 50.1

Average 49.685

Min 48.9

37.5

37.2

36.9

Max 37.45

Average 37.239

Min 36.8

36.6

Last 36.8

Max 19.72

Average 19.536

Commodities PRICE

DAY %

YTD %

(H) 52W

(L) 52W

WTI CRUDE FUTURE Apr13

90.68

-1.488321564

-2.210719293

108.4599991

BRENT CRUDE FUTR Apr13

110.4

-0.879870713

1.22868146

118.2900009

GASOLINE RBOB FUT Apr13

312.86

0.543111482

7.864161351

334.4000101

238.2400036

GAS OIL FUT (ICE) Apr13

922.5

-1.757188498

0.27173913

1010.5

800.25

NATURAL GAS FUTR Apr13

3.456

-0.860585198

1.557449309

3.997000217

3.032000065

HEATING OIL FUTR Apr13 METALS

293.01

-1.020166875

-2.186540259

326.7999887

254.189992

Gold Spot $/Oz

1576.18

-0.7912

-5.3038

1796.08

1527.21

Silver Spot $/Oz

28.6075

-1.1148

-4.99

35.365

26.1513

Platinum Spot $/Oz

1573.1

-1.3545

3.6468

1742.8

1379.05

Palladium Spot $/Oz

723.5

-2.1477

3.4074

777.38

553.75

LME ALUMINUM 3MO ($)

1975

-1.496259352

-4.727448143

2361.5

1827.25

LME COPPER 3MO ($)

7703

-1.433141395

-2.874795108

8702.75

7219.5

LME ZINC

2020

-2.179176755

-2.884615385

2230

1745

3MO ($)

LME NICKEL 3MO ($) AGRICULTURE ROUGH RICE (CBOT) May13 CORN FUTURE

Min 19.2

Last 19.22

May13

16605

0.030120482

-2.667057444

19935

15236

15.775

-0.031685678

1.87278011

16.95000076

15.22999954

708.5

0.710732054

1.17815066

838

520.25

Average 19.144

Min 18.82

Last 19.14

20.8

19.65

20.7

19.50

20.6

19.35

20.5

19.20

Max 20.8

Average 20.560

Min 20.4

Last 20.45

COUNTRY MAJOR

ASIA PACIFIC

CROSSES

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

PRICE

DAY %

1.0203 1.5038 0.9429 1.3022 93.59 7.9871 7.7548 6.223 54.905 29.76 1.2404 29.633 40.686 9682 95.492 1.22799 0.866 8.145 10.41 121.87 1.03

-0.5459 -0.9354 -1.2302 -0.6485 -1.5386 0.0263 0.0193 -0.0209 -0.9926 0 -0.395 0.0135 -0.0639 -0.1343 -0.9969 -0.6002 -0.2921 0.3818 0.5879 -0.8944 0

YTD %

(H) 52W

20.4

-1.6863 -7.0351 -2.9165 -1.2737 -8.003 -0.0488 -0.0542 0.1221 0.1639 2.7554 -1.5318 -2.0248 0.7841 1.1465 -6.456 -1.6702 -5.8406 0.8901 1.1566 -6.8105 -0.0097

(L) 52W

1.0744 1.6381 0.9972 1.3711 94.77 8.0039 7.7713 6.3964 57.3275 32 1.2971 30.203 43.975 9904 97.728 1.25692 0.88151 8.4957 10.9254 127.71 1.0314

0.9582 1.4986 0.9002 1.2043 77.13 7.9824 7.7498 6.2105 49.695 29.63 1.2152 28.913 40.54 9095 74.482 1.19995 0.77553 7.7018 9.6245 94.12 1.029

MACAU RELATED STOCKS (H) 52W

(L) 52W

0.8064516

19.04762

3.94

2.29

1102654

CROWN LTD

11.91

-0.8326395

11.62137

12.12

8.06

1272107

17.67000008

AMAX HOLDINGS LT

0.073

1.388889

4.285714

0.104

0.055

5877000

68.18999481

BOC HONG KONG HO

26.3

0.5736138

9.128629

27.1

20.8

14589613 177000

720.5

0.839748076

-8.53697239

938

665

SOYBEAN FUTURE May13

1443.5

-0.602513341

3.162408433

1639.5

1218.75

COFFEE 'C' FUTURE May13

143.35

0.104748603

-2.283571915

215.5

137.5999908

SUGAR #11 (WORLD) May13

17.91

-2.610114192

-8.62244898

24.56999969

COTTON NO.2 FUTR May13

85.4

0.128971743

12.57579752

92.62999725

NAME ARISTOCRAT LEISU

CENTURY LEGEND

World Stock MarketS - Indices

PRICE

DAY % YTD %

VOLUME CRNCY

0.355

-2.739726

33.96227

0.42

0.215

CHEUK NANG HLDGS

6.34

-3.206107

5.843076

6.74

2.8

65009

CHINA OVERSEAS

23.1

-1.910828

25.6

14.124

16403427

CHINESE ESTATES

11.54

-2.861953

-4.859412

12.964

7.697

23286

CHOW TAI FOOK JE

11.3

-0.3527337

-9.163984

13.4

8.4

2777200

EMPEROR ENTERTAI

2.02

-0.4926108

6.878308

2.15

1.1

815000

FUTURE BRIGHT

2.25

1.809955

84.42623

2.26

0.485

6340200 6967581

COUNTRY

PRICE

DAY %

YTD %

(H) 52W

(L) 52W

DOW JONES INDUS. AVG

14089.66

0.2502403

7.520681

14149.15

12035.08984

GALAXY ENTERTAIN

32.55

7.248763

35.7

16.94

NASDAQ COMPOSITE INDEX

3169.744

0.3023236

4.975312

3213.595

2726.68

HANG SENG BK

126.2

0.6379585

6.318453

129

99.2

2111480

FTSE 100 INDEX

6378.6

0.2796814

8.15201

6412.44

5229.76

HOPEWELL HLDGS

34.4

1.474926

3.458647

35.3

19.049

1832512

DAX INDEX

7708.16

-0.4332382

1.258081

7871.79

5914.43

HSBC HLDGS PLC

85.3

-0.6406523

4.920045

88.45

59.8

25690630

HUTCHISON TELE H

3.81

7.022474

3.92

2.98

7280000

LUK FOOK HLDGS I

25.8

0.1941748

5.737707

30.05

14.7

2817000

MELCO INTL DEVEL

12.38

0.1618123

37.40288

13.96

5.12

4542460

MGM CHINA HOLDIN

19.14

2.134472

36.51925

19.48

10.04

14466025

NIKKEI 225

11606.38

0.4067699

11.65156

11662.51953

8238.96

HANG SENG INDEX

22880.22

-0.6083769

0.9855744

23944.74

18056.4

CSI 300 INDEX

2668.836

-0.1679929

5.782276

2791.303

2102.135

TAIWAN TAIEX INDEX

7964.63

0.8438867

3.443469

8170.31

6857.35

3.4

-2.857143

-8.108109

3.249

3668000

NEPTUNE GROUP

MIDLAND HOLDINGS

0.179

10.49383

17.76316

0.226

0.084

152860000

NEW WORLD DEV

14.2

-0.5602241

18.13643

15.12

7.95

14625099

SANDS CHINA LTD

36.8

-0.405954

8.394696

39.95

20.65

12504651

SHUN HO RESOURCE

1.6

-0.621118

14.28572

1.67

1.03

KOSPI INDEX

2026.49

1.120237

1.474171

2057.28

1758.99

S&P/ASX 200 INDEX

5086.134

-0.3516011

9.403921

5112.5

3985

4811.613

0.3299561

11.46541

4817.914063

3635.283

FTSE Bursa Malaysia KLCI

1637.44

-0.01160213

-3.049824

1699.68

1526.6

SHUN TAK HOLDING

4.4

2.088167

5.011932

4.65

2.56

15693191

NZX ALL INDEX

934.196

-0.03852097

5.911551

934.988

751.011

SJM HOLDINGS LTD

19.22

-0.8255934

6.777778

22.15

12.34

11444167

PHILIPPINES ALL SHARE IX

4173.55

-0.5288698

12.82975

4196.63

3238.77

SMARTONE TELECOM

13.38

-5.508475

-4.97159

17.5

13.16

3131905

WYNN MACAU LTD

20.5

0.2444988

-2.147975

25.5

14.62

6585021

ASIA ENTERTAINME

3.83

3.794038

25.1634

6.95

2.4

177647

BALLY TECHNOLOGI

47.48

-0.565445

6.195484

51.16

41.74

615129 7000

JAKARTA COMPOSITE INDEX

18.8

19.80

3.75

WHEAT FUTURE(CBT) May13

NAME

Max 19.46

CURRENCY EXCHANGE RATES

NAME ENERGY

48.80

Last 50.1

HSBC Dragon 300 Index Singapor

633.45

0.32

1.99

STOCK EXCH OF THAI INDEX

1539.6

-0.1284397

10.609

1549.82

1099.15

HO CHI MINH STOCK INDEX

477.15

0.5457687

15.32883

497.87

372.39

BOC HONG KONG HO

3.379

10.06515

3.55

2.68

Laos Composite Index

1437.51

-0.07090572

18.33598

1455.82

924.63

GALAXY ENTERTAIN

4.2375

6.738034

4.57

2.25

1500

INTL GAME TECH

16.24

1.882058

14.60833

17.37

10.92

3543008

JONES LANG LASAL

96.77

0.1345199

15.28472

100.33

61.39

328998

LAS VEGAS SANDS

51.31

-0.3495824

11.15685

58.3216

32.6127

4939606

MELCO CROWN-ADR

19.39

0.9895833

15.14252

21.475

9.13

3869919

MGM CHINA HOLDIN

2.44

31.89189

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392

MGM RESORTS INTE

12.43

-0.4803843

6.786938

14.8

8.83

7232600

SHFL ENTERTAINME

15.84

-0.1261034

9.241379

18.77

11.75

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SJM HOLDINGS LTD

2.62

13.41992

2.85

1.65

4730

116.57

-0.2822926

3.626991

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84.4902

1041064

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business daily March 4, 2013

Opinion

The coming Atlantic century Anne-Marie Slaughter

Former director of policy planning in the U.S. State Department, is Professor of Politics and International Affairs at Princeton University

As former Secretary of State Hillary Clinton declared in one of her last foreignpolicy speeches, the U.S. is not planning to pivot away from Europe to Asia, but rather with Europe to Asia

he United States is rising; Europe is stabilising; and both are moving closer together. That was the principal message last month at the annual Munich Security Conference (MSC), a high-powered gathering of defence ministers, foreign ministers, senior military officials, parliamentarians, journalists, and national-security experts of every variety. The participants come primarily from Europe and the U.S.; indeed, when the conference began in 1963, it was focused entirely on NATO members. This year, however, senior government officials from Brazil, China, India, Nigeria, Singapore, Qatar, and Saudi Arabia also joined, an important sign of the times. John McCain, the U.S. senator and 2008 presidential candidate, always leads a large congressional delegation to Munich. The U.S. administration also typically sends the Secretary of Defence or the Secretary of State to deliver a ritual speech reassuring the Europeans of the strength of the transatlantic alliance. This year, Vice President Joe Biden did the honours, bumping the U.S. representation up a notch. The conference also featured a panel on an unusual subject – “The

American Oil and Gas Bonanza: The Changing Geopolitics of Energy”. U.S. Special Envoy and Coordinator for International Energy Affairs Carlos Pascual described “the U.S. internal energy revolution”: a 25 percent increase in natural-gas production, which should push down U.S. gas prices, and enough oil output to reduce oil imports from 60 percent to 40 percent of consumption, with an additional 10 percent increase projected. Pascual projected that the U.S. will be able to import all of its energy needs from within the Americas by 2030. A recent confidential study by the German Intelligence Agency raises the possibility that the U.S. could actually become an oil and gas exporter by 2020, in contrast to its present position as the world’s largest energy importer. That honour would likely fall to China, which would become increasingly dependent on the Middle East. As an extra bonus, the higher U.S. proportion of gas use has reduced U.S. carbon emissions to 1992 levels.

LNG solution The sense of U.S. good fortune, a phrase that is not often heard around the world these days, increased with

the panellists’ description of how lower energy prices for U.S. manufacturing has a broad positive impact on the American economy’s competitiveness. As a result, the country’s energy reserves have also become an investment magnet. German Minister of Economics and Technology Philipp Rösler said that many German firms are already relocating to the U.S. because of lower energy prices. Equally important, the panellists reported on the rising importance of liquid natural gas relative to pipeline gas, which has enormous geopolitical implications. In a nutshell, if gas is exported in liquid form, it is fungible. In other words, if Russia restricts the flow of gas to Ukraine for political reasons, but the rest of Europe has gas from other sources, they can simply resell their gas to Ukraine and export it via the Baltic Sea. Jorma Ollila, chairman of Royal Dutch Shell, described the global map of major shale oil and gas deposits. Ukraine itself has the third-largest reserves in Europe; other countries with large deposits include Poland, France, China, Indonesia, Australia, South Africa, Argentina, and Mexico. And the U.S. has already taken over from Russia as the world’s

largest gas producer. All of this data got Brazilian Foreign Minister Antonio de Aguiar Patriota’s attention. On a panel entitled “The Rising Powers and Global Governance,” Patriota referred to the energy discussion and noted that the rising powers should remember that “the established powers are not sinking powers.” In short, the pervasive narrative of Western decline suddenly reversed itself.

Indispensable partners The horizon seemed brighter on the European side as well. In the opening panel on “The Euro Crisis and the Future of the EU,” cautious optimism prevailed. No one thought that the European Union’s troubles were resolved, but no one thought that the euro zone was coming apart, either. On the contrary, German Finance Minister Wolfgang Schäuble made clear that German resolve to see the euro zone through its troubles was firm. And a prominent economist in the audience who has often predicted the euro zone’s demise was backtracking rapidly. Aside from reports of a rising U.S. (fiscal woes notwithstanding) and a stabilising Europe (despite the

common currency’s troubles), the conference featured a speech by Biden that went far beyond the reassuring rhetoric that U.S. policymakers typically offer in European capitals. Biden told the audience that he and U.S. President Barack Obama believe that “Europe is the cornerstone of our engagement with the rest of the world” and “the catalyst for our global cooperation.” He pointed out that “Europe is America’s largest economic partner,” recalling figures that the Asia-focused Obama administration has often seemed to forget: “over US$600 billion in annual trade that creates and sustains millions of jobs on the continent and at home, and a US$5 trillion overall commercial relationship”. Biden went on to suggest a “comprehensive transatlantic trade and investment agreement”; a week later, in his State of the Union Address, Obama announced the launch of negotiations for precisely such an agreement. Biden concluded with a flourish. “Europe remains America’s indispensable partner of first resort,” he declared. “And, if you forgive some presumptuousness, I believe we remain your indispensable partner”. Those strong words reflect a new sensibility in Washington. As former Secretary of State Hillary Clinton declared in one of her last foreign-policy speeches, the U.S. is not planning to pivot away from Europe to Asia, but rather with Europe to Asia. Western fortunes are rising, slowly but surely. Together, Europe and the U.S. account for more than 50 percent of global GDP, have the largest military force in the world by many multiples, and control a growing proportion of global energy reserves. They also have a formidable diplomatic and development-assistance capacity, representing a peaceful community of democracies that share a common commitment to the rights, dignity, and potential of all human beings. Imagine that community spreading down the east coast of Latin America and the west coast of Africa. It might be an Atlantic century after all. © Project Syndicate

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March 4, 2013 business daily | 15

OPINION

Italy’s post-election chaos wires isn’t what you think Business

Leading reports from Asia’s best business newspapers

The Korea Herald The Association of Southeast Asian Nations has replaced the United States and Europe as South Korea’s biggest export market for the second month in a row in January, government data showed Sunday. ASEAN’s 10 member countries accounted for 14.5 percent of South Korea’s exports in January, according to the Korea International Trade Association. “The ASEAN countries are showing strong growth momentum among major economic blocs. Korea’s exports to those nations are likely to follow a rising trend in the long term,” Park Sanghyun, a senior economist at HI Investment & Securities Co.

Carlo Bastasin

Bloomberg View columnist

just misses the point. A bigger budget deficit wouldn’t do much to stimulate demand, because the real problem is the breakdown in Italy’s supply of credit. From the beginning of the euro crisis three years ago, Italy has seen a faster shrinkage in total credit supply than most euro-area countries, as foreign banks have repatriated their loans. This widespread lack of credit has crushed the private economy. Businesses and households can’t get loans and are cutting investments and consumption at an unprecedented rate.

Jakarta Globe Indonesia’s unhusked rice production climbed 5 percent last year thanks to expanding fields and higher productivity, as the country attempts to achieve self-sufficiency. The Central Statistics Agency announced on Friday that production of paddy or unhusked rice stood at 69.05 million metric tons. Indonesians consume around 139 kilograms of rice per capita each year, making the country one of the highest consumers of rice in the world. Indonesia’s reliance on rice imports, including from Thailand, to meet domestic demand has prompted calls for a dietary shift toward cassava plants.

The Myanmar Times Telecommunications companies have until April 4 to file bids to pass prequalification requirements for two national telecommunications licences being awarded in Myanmar, the Telecommunications Operator Tender Evaluation and Selection Committee announced. The government body said more than 90 telecoms companies from around the world had submitted expressions of interest for the tender. Bidders are required to have four million subscribers in one country and generate annual gross revenues of at least US$400 million.

Thanh Nien News High overheads have made it difficult for private carriers in Vietnam to make profit and the future looks bleak. Five private airlines have been licensed in Vietnam since 2007, but just one of them, VietJet Air, is still in business, struggling to make ends meet. Two have ceased operations after prolonged losses and the other two have never taken off. However, rising incomes of its citizens and its political stability make Vietnam an aviation market with potential for carriers with a realistic, reasonable business strategy and deep pockets to absorb losses for a few years, experts say.

Effective answers

General elections in Italy

o parliament, no government, no president of the republic. And now not even a pope. The situation in Italy resembles a house of cards in a perfect storm. It’s not just a matter of politicians, scenarios and furniture flying all over the place until the storm subsides. The problem is deeper than that. The new Italian Parliament has three minorities that are unable to form a majority. It is a power game in which Pier Luigi Bersani, the electoral winner, is the political loser, and the electoral losers, former Prime Minister Silvio Berlusconi and ex-comic Beppe Grillo, are the political winners.

[Italians] are angry about the tax increases introduced under the banner of Europe and austerity. If austerity means fiscal discipline, Italians actually want more of it

Consider this. Almost half of those Italians who cast their ballots for one of the traditional parties switched their vote this time. You think Americans are fed up with Congress? In Italy, trust in the government stands at 5 percent, and trust in Parliament at 8 percent. The rate of abstentions is high. The party holding the majority of seats in the Chamber of Deputies – 54 percent, as required by law -- won the support of just 20 percent of the electorate. On top of all this, the timeline to form a new government is tight. The Parliament convenes for the first time March 15. Amid all the confusion, the parties must agree within 10 days on the leaders of the Chamber of Deputies and the Senate. Then they have to nominate a prime minister, who must form a government and take an oath in front of the president of the republic. All this before April 15, when the Parliament meets to elect a new president of the republic.

Against everything So I can sympathize with those who despair and say Italy has chosen nihilism, or who say, in effect, that Italians voted against everything -including Europe and austerity, which they had come to believe in before the debt crisis. I understand why people are saying Italy could bring down the whole euro project. But I disagree with them. Italians remain proEuropean, and fewer people than you would suppose are seriously thinking of relinquishing either the euro or the economic-policy

commitments that come with it. Discontent is focused, above all, on taxes. They are among the highest in the euro area. Taxes on business are the highest of any euro member, and they are severely hurting a weakened economy. Italians see excessive taxes mainly as the consequence of bad political management. It’s not that they object to Europe and austerity. Rather, they are angry about the tax increases introduced under the banner of Europe and austerity. If austerity means fiscal discipline, Italians actually want more of it. This is why New York Times columnist Paul Krugman is wrong to say Italians shunned an intelligent and credible man such as Prime Minister Mario Monti because he was “the proconsul installed by Germany to enforce fiscal austerity on an already ailing economy.” In Italy’s case, however, the argument about fiscal stimulus

Reviving the market for credit is the first job. This would be far more effective than delivering a new fiscal stimulus. In fact, continued budget discipline is vital in ending the credit crunch. The new government must negotiate a deal with the European Union and with the European Central Bank, so that the ECB can support the Italian banks. But this can’t happen unless the ECB is sure that it has a reliable partner in the Italian state and that Italy will remain as fiscally stable as possible. Italians understand this, and so the political crisis may be a little easier to resolve than many think. Under the pressure of markets, Italian parties are likely to close ranks behind another technical prime minister, just as they did in November 2011 behind Monti. They will nominate someone familiar with financial issues -- some high official at the Bank of Italy, or maybe even Monti himself. They will call it an “institutional government” and ask it to make the political system more honest and functional, reining in the anger and recrimination of the citizens. It’s a strange way to run a country – but don’t write off Italy. Bloomberg View

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business daily March 4, 2013

CLOSING Arsenal rejects report of takeover bid

Colombia hikes coffee subsidies to end strike

Arsenal football club said it has had no contact with any group in connection with a takeover, after the Telegraph reported that Arsenal might be bought out by a Middle East group for 1.5 billion pounds (US$2.3 billion). Majority shareholder Stan Kroenke is committed to the club for the long term, a club spokesman said in a text message yesterday. The cash offer would include about 830 million pounds for Mr Kroenke’s 66.8 percent stake and would be backed by funds from Qatar and the United Arab Emirates, the report added.

Colombia’s government raised a subsidy to coffee farmers on Saturday and called for them to end a strike, but farm leaders said they would continue protesting and blocking roads because they want buyers to pay a minimum price for beans. Coffee growers in Colombia, the world’s top producer of high-quality Arabica beans, are demanding more help from the government after being hit by years of poor weather, crop disease and a strong currency. They have been blocking key highways and secondary roads since Monday, especially in the coffee producing provinces of Huila and Cauca.

Mainland maids’ hiring pushed back

Barclays planning for Middle East expansion Fast-growing region spared from troubled bank’s cost cutting efforts

arclays Plc, which is cutting 3,700 jobs as it reduces costs by US$2.6 billion a year, said it plans further expansion in the Middle East and North Africa on rising demand for wealth management and investment banking services. Barclays, which employ’s about 1,000 people in the region, expects to hire about 100 more this year and has a “healthy pipeline” of debt capital market and merger and acquistion deal mandates, John Vitalo, the bank’s chief executive officer for the Middle East and North Africa, said in an interview in Dubai last week. The London-based bank announced global job cuts and a plan to cut costs last month as chief executive officer Antony Jenkins revamps the lender after its 290 million-pound (US$436 million) fine for interest- rate manipulation and first annual loss in two decades. In the Middle East, Barclays plans to hire in wealth management, investment banking and retail, and Mr Vitalo said he’s “cautiously

optimistic” on the fee pool for capital markets and advisory. “This region is one of the world’s few macroeconomic bright spots and we’re fortunate to be in a position to take advantage of that,” Mr Vitalo said. “The 3,700 job cuts Anthony referred to are not targeted at the Middle East.” Barclays is among investment banks hiring after Europe’s debt crisis led firms including Credit Suisse Group AG, Nomura Holdings Inc. and Morgan Stanley to trim their presence in the Middle East and North Africa.

‘Personal wealth’ Economic expansion and high oil prices are driving prosperity in the region. Private wealth in the Middle East and Africa may rise 6.6 percent annually to US$6.1 trillion in 2016 as the region’s oil-rich economies continue to prosper, the Boston Consulting Group said in June. Wealth in the region increased to US$4.5 trillion last year, up 4.7

percent from US$4.3 trillion in 2010. “That personal wealth is a great opportunity for our wealth management business, but also in the U.A.E. [United Arab Emirates] for retail banking which is focused on the affluent sector,” he said. “There’s opportunity just about everywhere we look.” Mr Vitalo said the fee pool in the Middle East is recovering after falling “consistently” from its peak between 2007 and 2008 and he’s “cautiously optimistic” on its growth for 2013. Barclays has reviewed 75 of its units to weed out those that pose a reputational risk or don’t make profits. The firm will shut about four that consume about 90 billion pounds of assets and may close a further 17 that generate about 2 billion pounds of income, Mr Jenkins told reporters in London last month. About 1,800 positions will go this year at the firm’s investment bank and 1,900 in its loss-making European consumer and businessbanking unit, Barclays has said. Bloomberg News

omestic helpers from Guangdong and Fujian provinces will only arrive in Macau in the second half of this year, Secretary for Economy and Finance Francis Tam Pak Yuen told media. In January the official had said mainland Chinese helpers would be allowed in still during the first half of this year. On Saturday Mr Tam stressed that the importation of domestic helpers from the mainland is “in no way a plan for local residents to apply for their mainland relatives to come to Macau”. A vocal family-reunion group has repeatedly asked the government to allow their adult children to live in the territory. “Once we get the final confirmation from the Central Government on the application procedures [for hiring mainland domestic helpers], we can announce the details within this month,” said Mr Tam. The Beijing authorities will set standards for local residents applying to employ mainland domestic helpers, for instance giving priority to applicants with elderly household members or by drawing lots, Mr Tam suggested. The secretary made no confirmation on the number of mainland domestic helpers coming to Macau, only adding that it will be a “fixed quota”. Two-thirds of the first batch of domestic helpers coming here will be from Guangdong, and the remaining ones from Fujian province, he reiterated. Mr Tam, also a member of the Chinese People’s Political Consultative Conference, was speaking on the sidelines of a banquet gathering all of Macau’s delegates to the conference in Beijing. S.L.

Secretary for Economy and Finance Francis Tam Pak Yuen