Macau Business Daily, 29 May, 2012 by Business Daily

Year I - Number 42 - Tuesday May 29, 2012 Editor-in-chief: Tiago Azevedo Deputy editor-in-chief: José I. Duarte MOP 6.00

Govt urged to rethink telecoms network Page 4

‘INSIDER’ TRADING STIFLING COMMERCIAL PROPERTY MARKET

Worker wage pledge for when firms go bust Page 7

IPOs: HK proposes class actions

ommercial properties are bought and sold in Macau by insiders without the assets ever coming onto the open market, several institutional investors have told Business Daily. That means it’s impossible for outsiders to

New casino patent war turns on court papers What may be a misunderstanding over court paperwork could lead to gaming equipment supplier Shuffle Master being charged with ‘disobeying’ Macau customs. It follows a new flare up of the long-running patent war between Shuffle Master and Macau firm LT Game. That happened during Global Gaming Expo Asia last week. The Customs Service has accused Shuffle Master of ignoring its instructions and a Macau court order by removing covers from its Rapid electronic multi-game during the show. Shuffle Master says it had the court’s permission.

compete on price by offering a higher bid. But many overseas investors would urgently like to get into the Macau property game. Annual capital appreciation for certain grades of property reached 20 percent in 2011 according to some reports. One of the institutional investors spoken to by Business Daily – Platinum Asset – does manage a diverse group of properties in Macau and is in talks with Matrix Asset Management in the United Kingdom about investment here. “The UK market generates stable yields. However, capital appreciation is much faster in Asia,” Platinum Assets’ Joe Liu said. “The big money for property funds comes from retail and office spaces. Residential properties are there to balance the

portfolio,” he said. “However, a lot of the commercial properties are not transacted in the open.” According to media reports commercial property here appreciated by 20 percent in value in 2011 – an estimate Mr Liu finds conservative. “Some commercial and retail deals have gone up 20 percent in a few weeks after being transacted off the market,” he said. “Many of these properties are sold quickly to someone the property agent already knows, and the deal might be done overnight, so the supply is very tight,” he said. His company intends to fill the gap by brokering more crossborder deals. More on pages 2 & 3

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HANG SENG INDEX

18810

Letter activists told zip it for now

18770

18730

Activists were prevented from handing in a letter questioning the integrity of Secretary for Transport and Public Works Lau Si Io and his cabinet yesterday. It related to the La Scala land featured in the latest corruption trial of Mr Lau’s predecessor Ao Man Long.

18690

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May 28

HSI - Movers

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Name

Govt bins plans for waste tender

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www.macaubusinessdaily.com

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The government has renewed the territory’s waste management contract – pushing back a long-promised public tender by another year. The incumbent – Macau Waste Systems Company (CSR) – is a joint venture by Hong Kong’s Swire SITA Waste Services Limited, and local company, H. Nolasco. A director of the latter, Frederico Marques Nolasco da Silva, and two former directors of CSR have been jailed for bribing disgraced secretary for Transport and Public Works, Ao Man Long.

Pages 8 & 9

%Day

CHINA OVERSEAS

4.06

CHINA RES LAND

3.36

CITIC PACIFIC

2.88

WHARF HLDG

2.87

BANK OF CHINA-H

2.45

BANK EAST ASIA

-0.95

WANT WANT CHINA

-0.98

POWER ASSETS HOL

-1.18

TINGYI HLDG CO

-1.44

TENCENT HOLDINGS

-1.57

Source: Bloomberg

Vacant pause – workforce drops 1,600

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Macau’s workforce fell by 1,600 in April – but it’s not clear how many of them left town, retired or simply gave up looking for work. What is clear is that Macau’s labour squeeze is still chronic and needs urgent improvement. As we reported yesterday, the restaurant trade is struggling to fill 15 percent of its vacancies.

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business daily May 29, 2012

macau

Outside property demand unsatisfied Property funds abroad are interested in investing in Macau but find the market here lacking in transparency

apid economic growth and strong buying interest have pushed Macau’s property prices higher in recent years, attracting the attention of property funds abroad, but it is not proving easy for them. They have found it difficult to invest in Macau as many deals are done off the market, Joe Liu, a partner in property investment company Platinum Asset, told Business Daily. Platinum Asset manages a diverse group of properties here and is in talks with Matrix Asset Management from the U.K. about investment in the city. “The UK market generates stable yields. However, capital appreciation is much faster in Asia,” Mr Liu said. But there is one significant hurdle for overseas funds: the property market moves quickly here and many deals are done off the market, according to Mr Liu. “The big money for property funds comes from retail and office spaces. Residential properties are there to balance the portfolio,” he said. “However, a lot of the commercial properties are not transacted in the open.” According to media reports commercial property here appreciated by 20 percent in value in 2011 – an estimate Mr Liu finds conservative. “Some commercial and retail deals have gone up 20 percent in a few weeks after being transacted off the market,” he said. “Many of these properties are sold quickly to someone the property agent already knows, and the deal might be done overnight, so the supply is very tight,” he said. His company intends to fill the gap by brokering more cross-border deals.

Tight access Speymill Macau Property Co Plc, a London-listed property fund

‘The big money for property funds comes from retail and office spaces. Residential properties are there to balance the portfolio. However, a lot of the commercial properties are not transacted in the open’ Joe Liu, partner in Platinum Asset

‘Gaining access to attractive property deals in Macau is difficult for foreign investors unless you have an extensive local network’ Tom Ashworth, co-founder of Sniper Capital

focusing on Macau, has had similar experience here. “When we were managing Speymill as a property fund, we did notice that properties and deals were being sold or developed by insiders,” Speymill Macau director Howard Golden said. ”This is not unique to Macau. Those who live in a country and have been involved in a certain business for years would naturally be the first to hear about a possible transaction and would therefore have an insider advantage,” he said. Speymill Macau is in the process of restructuring after selling its last asset here six months ago – the AIA Tower. It is changing its name to Terra Capital and said that in future it would invest in property here only through a public listed vehicle. Macau Property Opportunity Fund, managed by Sniper Capital, has been active in property investment here since its inception in 2004. “Gaining access to attractive property deals in Macau is difficult for foreign investors unless you have an extensive local network,” said company director Tom Ashworth. “There are often many risks relating to a potential deal. Thorough due diligence through a reputed lawyer is absolutely essential.” The fund sold nine homes in the One Central complex in April this year and 10 in May last year for a total of HK$309.4 million (US$40 million). The fund added to its portfolio in April an 8,236 square foot triplex occupying the top three floors of Tower 3 at One Central. The company paid HK$98 million for the home and said it would sell it at an opportune time. The fund also owns all of One Central’s Tower 6, for which it follows a premium leasing strategy. Other important assets of the fund include The Fountainside and a retailing development in Senado Square. Sniper Capital set up its own five-year Macau Sniper Fund two years ago. The unlisted fund is set to raise US$100 million in equity, and will aim for a mixture of retailing, food and beverage and potentially residential properties, according to the Reuters news agency. Telok Real Estate Partners, a Hong Kong-based property development company and fund manager, offered a different perspective. “There are very limited commercial property stocks in the market that are suitable for institutional investors,” Philip Pang, partner of the company said. However he did not find gaining access in the market too difficult. “The demand is there but commercial properties need large land plots, and it is hard to purchase land in that kind of size in Macau,” he added, commenting on potential commercial developments. The company employs a different strategy comparing to other funds that are focusing on the high-end market. It plans to spend a projected HK$1 billion over the next three years to build up to 20 small to mediumsized residential projects in Macau. X.C.

Investors say a lot of property in Macau is sold behind closed doors

Speymill Macau sold the AIA tower last November, its last asset in the city.

May 29, 2012 business daily | 3

Photo by Manuel Cardoso

MACAU

Speymill Macau abandons property development Real estate fund manager changes name to Terra Capital; leaves property development for foreseeable future

peymill Macau Property Company Plc will change its name to Terra Capital Plc and alter its investment strategy after gaining approval from the board last Thursday. The company’s restructuring is still to be ratified. Under the terms offered, shareholders could sell their shares back to the company at US$0.835 (6.70 patacas) a share. The tender offer to shareholders closed yesterday. Speymill Macau went public in late 2006 at US$1; it traded at a high of US$1.61 in 2007 and closed on Friday at US$0.8275, according to Bloomberg. According to the tender offer, if the company received tenders exceeding 60 percent of the issued ordinary share capital, neither the tender offer nor the restructuring can proceed and the company will put a proposal to wind-up the business to shareholders. But the chance that the 60-percent threshold will be met is low. The

HK$1.26 billion Photo by Manuel Cardoso

Value of the sale of AIA Tower last November

‘The fund will concentrate on listed stocks rather than private equity. If it invests in Macau property, it would be through a listed vehicle rather than by developing property.’ Howard Golden, director of Speymill Macau Property Company Plc.

Terra Partner Group owns 27 percent of the fund, while Invesco, another investment management company, owns 31 percent. If the restructuring goes ahead, Terra would gain control of the entity. “We are confident that the restructuring will be passed,” Howard Golden, director of the fund, said. Speymill Macau recorded a loss of US$5.9 million, a 15-percent increase over the loss of US$5.1 million in 2010, according to last year’s annual report. The company was to have been liquidated following recurring losses. The sale of the company’s last asset in Macau, AIA Tower, saw shareholders delay winding up. The company sold the tower for HK$1.26 billion, having acquired it for HK$600 million in mid-2008. The fund has had its ups and downs. It agreed to finance the development of Bel-Lago in 2007,

a luxury property close to Nan Vam lake. It terminated its involvement in 2008 because planning approval was caught up in the Ao Man Long fraud scandal. The project remains at a standstill. It is unclear if the fund will continue investing in Macau if it is restructured. “The fund will concentrate on listed stocks rather than private equity. If it invests in Macau property, it would be through a listed vehicle rather than by developing property,” Mr Golden told Business Daily. According to the tender offer circular, the restructured fund intends to invest in a variety of smaller and overlooked markets that lack significant foreign institutional analysis. The new investment policy will focus on achieving capital appreciation and reduced risk. It will invest through corporate activism as well as by selecting value and dividend stocks. Terra Partners Asset Management will be its new investment manager. The company’s founders are the team behind Terra Partners Group. They are also the current directors of Speymill Macau. Three of the four existing directors – Mr Golden, Yarden Mariuma and Harald Wengust – will resign from Speymill Macau and become directors of the new fund. Terra Partners Group manages the Worldwide Opportunity Fund, Victoria Falls Investment Fund, and co-manages Discovery Fund. The total assets under management exceed US$131 million. X.C.

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business daily May 29, 2012

macau

Shuffle Master ‘disobeyed’ court order – customs U.S.-based company may face charge for displaying Rapid multi-game at G2E Asia Vítor Quintã

vitorquinta@macaubusinessdaily.com

he Customs Service has accused gaming equipment maker Shuffle Master of disobeying a Macau court order by removing covers from its Rapid electronic multi-game during Global Gaming Expo (G2E) Asia. The service sent a report on the matter to the Public Prosecutor’s Office, newspaper Ponto Final reported yesterday. It claimed Shuffle Master decided to display the product before being notified by a court that it had the right to do so. United States-based Shuffle Master could – according to those who have seen the report – face charges of ‘qualified disobedience’ and of breaking a seal affixed by a public authority. The legal development follows a series of dramatic events last Wednesday – the first full day of the annual trade exhibition in CotaiExpo at the Venetian Macao. And it appears to focus on a technical point regarding a piece of paperwork. That day a Macau court agreed to stay an injunction granted in April to Macau company LT Game that in effect had barred Shuffle Master from displaying its Rapid multigame at the show. LT Game says it sought the injunction on the basis it has a Macau patent on electronic multi-games. Shuffle Master says LT Game does not, adding it has successfully contested this point several times in court in Macau. LT Game was granted its injunction on the basis of an appeal against an earlier hearing. After Shuffle Master reportedly paid a one million-patacas

Covers off - covers on - Shuffle Master’s Rapid multi-game product

(US$125,100) security deposit to the court on that Wednesday, word came from through to the show stand from Shuffle Master’s lawyers at court that the injunction had been lifted. At that point – at around noon – staff duly lifted the covers. But after lunch customs officers returned asking for evidence of the court’s decision.

Missing paperwork Business Daily understands it was at this point that the offence of ‘qualified disobedience’ allegedly occurred. According to our sources, when Shuffle Master lawyers had returned from the court they had with them a receipt for the deposit, but not the specific court order that the customs men were looking for. As a result customs

ordered the Rapid machines to be covered again. And it wasn’t until approximately 4.55pm – 35 minutes before the show closed for the day – that customs confirmed it had received the court order and allowed the Rapid product to be displayed. Yesterday was a public holiday in the United States so no one from Shuffle Master was available for comment. But Gavin Isaacs, chief executive of Shuffle Master, told Business Daily during G2E Asia his legal advice was his firm was not breaking the law. “I’m very comfortable with what we’re doing,” he said last Wednesday. However Betty Zhao, sales and marketing manager told Business Daily that day: “We consider the uncovering of the Shuffle Master product at the show as a

criminal act.” Her boss Jay Chun, chairman of LT Game, told Business Daily yesterday he was not aware of customs’ report to the public prosecutor. In 2009 Shuffle Master Rapid product was seized at G2E Asia in Macau and company officials detained in the same patent battle. According to Ponto Final, LT Game will file a new suit against Shuffle Master asking for compensation and a ban on the U.S. company’s multi-game products. Frank Fahrenkopf, president of the American Gaming Association, one of the main backers of Global Gaming Expo Asia, said that if gaming suppliers continued to use the event to fight patent battles then the show could be forced to move elsewhere. with Associate Editor

CTM phone network plan ‘detached from reality’ Govt rethink urged after two failures in three months Tony Lai

tony.lai@macaubusinessdaily.com

egislator Ung Choi Kun has urged the government to review its policy of limiting the city’s 2G telecommunications services – those offering voice call and text service-only – to tourists in future. It follows two network blackouts by the main service provider Companhia de Telecomunicações de Macau this year. Mr Ung said in his written enquiry that two service failures in fewer than three months revealed the lack of stability in the city’s telecommunication network. He questioned whether the policy of moving everyone except visitors to the more modern Internet-enabled 3G service is “too progressive” and “detached from reality”. Most 2G services are due to be changed to 3G by July 9. The 2G service will still be available for visitors, as many mainland China consumers have not yet upgraded to 3G smartphones. CTM owns the 2G and 3G telecoms cabling infrastructure in Macau, but two other firms – Hutchison Telecom

Legislator Ung Choi Kun says the two blackouts revealed the lack of stability in the city’s telecoms network

Macau (trading as ‘3’) and SmarTone – Comunicações Móveis, S.A., rent airtime on the CTM network. So if the CTM network fails, then their services also go down. The blackout in February left thousands of customers unable to

use 3G mobile phones, landline telephones and the Internet for at least six hours. While legislators will still waiting for CTM to explain that failure, a second incident – on May 15 knocked out 3G services for more than two

hours. CTM attributed the cause of both incidents to ‘human error’. Both incidents led to ‘planking’ demonstrations – with angry consumers lying down outside CTM’s new shop in Nam Van in the most recent case. Mr Ung said he was concerned what measures and punishment the Bureau of Telecommunications Regulation will impose on CTM for the two incidents – and whether the government will request CTM to compensate the affected customers. The telecommunications regulator has previously said that any compensation is CTM’s “a commercial decision”. Mr Ung also asked how the authority will strengthen its governance over the service providers and improve communication between the companies and the bureau. Earlier this month Macau Cable TV urged the government to let it compete with CTM on broadband Internet services. MCTV said it could use its television cable network to deliver broadband at half the price of the telecoms monopolist.

May 29, 2012 business daily | 5

MACAU

Waste tender delayed again No invitation to tender is in the offing as the present solid waste management contract is extended for a second time Vítor Quintã

vitorquinta@macaubusinessdaily.com

n international public tender for the city’s solid waste management concession has been pushed back by at least one more year after the government renewed its contract with Macau Waste Systems Co (CSR). The contract for the collection and disposal of solid waste is worth 138 million patacas (US$17.3 million), a chief executive’s dispatch published in yesterday’s Official Gazette says. In September 2011 the government extended the contract with the company until March 2012 for 80.6 million patacas and pledged to put the work out to public tender afterwards. The Environmental Protection Bureau said in March it was still “promoting preliminary phase actions on the drafting of documents for the public tender” and stressed it “must be more cautious in analysing the existing contractual provisions and the planning for each detail of the service supply”. Business Daily questions about why the tender had been delayed received no reply from the bureau. CSR is a joint venture set up by the Hong Kong’s Swire SITA Waste Services Ltd and H. Nolasco of Macau. Nolasco director Frederico Marques

Nolasco da Silva and two former directors of CSR have been jailed for bribing Ao Man Long, the secretary for transport and public works at the time, to secure contracts. CSR collected about 264,000 tonnes of solid waste from households and businesses in 2011, up by 3.9 percent from the previous year. Environmental Protection Bureau head Cheong Soi Kei said last September that the new contract would be stricter, especially on selective collection of recyclable materials. the Civil and Municipal Affairs Bureau said CSR collected recyclable waste – except glass – thrice a week on vehicles bought specifically for this purpose. The company even picks up waste daily from some of the 214 sorting spots. The waste is taken to Ilha Verde, where the sorting is doublechecked, and then compressed into blocks of one cubic metre. These blocks are taken to Coloane’s deep-water harbour in Ka Hó and shipped to mainland China. The amount of recyclable waste sent across the border increased by 56 percent last year, yet it amounted to just 535 tonnes.

CSR has had its contract extended to 2013

MOP138

million

Value of the new contract awarded to Macau Waste Systems Co

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business daily May 29, 2012

macau Corporate Social Responsibility

Special golfers teeing up Preparations for the Special Olympics Golf International Tournament are under way

very Thursday the Macau Special Olympics team meets for their practice session on the rolling greens of Caesars Golf Macau. These special practice sessions are meant to raise the athletes to Level I and Level II of the international Special Olympics standards before the Macau Special Olympics Golf International 2012, to be held in July. “[The sessions] are paying off big time in terms of improving skill sets, etiquette, camaraderie and competitive spirit,” said tournament director Stefan Kuehn. “The equipment and practice facilities provided by our valued partners and sponsors are clearly making their mark,” he said. “They are encouraging the athletes to improve their play whilst

enjoying the game even more. “It’s fascinating to see the improvements being made over the last couple of months, and I can’t wait to see them playing their first nine-hole round in June in the run-up to the tournament.” Mr Kuehn said that with just seven more weeks to go there was a lot of work to be done before the community event could take place. “Our team is working hard to align sponsorships, equipment and people for something that will change the acceptance of the special members of our society and hopefully become a testament that resonates far beyond the shores of Macau,” said Mr Kuehn. The tournament will pit 48 Special Olympics athletes, supported by 16 coaches, against 48 corporate players fielded by sponsors in a unified competition format designed to invoke the true spirit of corporate social responsibility. The tournament has been in the making for almost a year. It was shaped by the Charity Association of the Macau Business Readers and is organised by Macau Business SK Events and Caesars Golf Macau. It aims to celebrate the 25th anniversary of Macau Special Olympics. Encouraged by the patrons of the annual Macau Business Charity Golf Tournament, a groundswell of support has enabled the organisers to provide the athletes with an array of

equipment, including sets of clubs that will be given to every national team entering the tournament in July. Mr Kuehn said the Macau athletes could get used to the clubs to ensure that their “hardware comfort level” would be on a par with that of the other teams. This year’s tournament will have eight teams: two each from Hong Kong and South Korea, and one each from Taiwan, Macau, Malaysia and mainland China. It takes place from July 4 to 7 at Caesars Golf Macau. While getting to grips with the facilities, the course and the clubs – and even the feeling of proper golf shoes, provided by the association – on the links of Caesars Golf Macau, Macau’s Special

Olympics athletes have managed to benefit in another way by having their enthusiasm and dedication returned by the Butch Harmon Golf coaches. “The enthusiasm of the athletes and their personal coach at their weekly practice sessions is palpable,” said Mr Kuehn. “But this energy has to be guided and directed to the realistic conditions of competitive match play. “This is where the steady hand of the Butch Harmon Golf coaches is proving invaluable. “Whatever the final match standings, these athletes are absorbing skill sets that will last them a lifetime of golf and interaction.”

Weather Beijing 28/16o C Changchun 29/18o C

Harbin 28/15o C

Xian 25/10o C Shanghai 28/18o C Chengdu 27/17o C Kunming 22/16o C Haikou 31/24o C Sanya 33/27o C

Guangzhou 30/25o C

MACAU (28 May-02 June) Day

Temperature

Humidity

05/28

24/27o C

80/95 %

05/29

24/27o C

80/95 %

05/30

24/28o C

75/90 %

05/31

23/30o C

65/95 %

06/01

24/31o C

65/90 %

06/02

24/31o C

65/90 %

Shenzhen 30/25o C

ASIA (today)

Hong Kong 29/25o C

Manila

TOKYO

Jakarta

33/27o C

32/25o C

24/18o C

31/24o C

Macau 29/24o C

Bangkok

SEOUL

K. lumpur

33/27 C o

SINGAPORE

27/18 C o

34/24 C o

taipei

28/25o C

May 29, 2012 business daily | 7

MACAU

Association questions Lau staff La Scala statement A democratic association tries but fails to petition Secretary Lau Si Io, querying contradictory statements from his staff and public prosecutors Tony Lai

tony.lai@macaubusinessdaily.com

ecurity guards prevented the New Macau Association from delivering yesterday a letter questioning a statement by the staff of the Secretary for Transport and Public Works, Lau Si Io, about land involved in the Ao Man Long graft case. Association president Jason Chao said he was concerned by a public statement by Mr Lau’s staff about the grant in March last year of more land near the airport for the La Scala housing project. During the third trial of Ao, the imprisoned former secretary was accused of taking a bribe of HK$20 million (US$2.5 million) from two Hong Kong businessmen to grant a plot near the airport to offshore company Moon Ocean in 2006. A further grant of land to the developer of La Scala in March last year nearly doubled the construction area of the project from about 390,000 square metres to over 730,000 square metres. Mr Lau’s staff said they had asked the appropriate authorities whether the land was associated with any criminal case before the grant had been approved. But Mr Chao said that the Public Prosecutors Office had denied there had been any enquiry about the land. “So now who is lying and who is saying the truth?” Mr Chao asked. The Commission Against Corruption sent the third set of charges against Ao, now being heard in Court of Final Appeal, to the Public Prosecutors Office in September 2009. Joseph Lau Luen Hung, chairman of La Scala developer Chinese Estates Holdings, and Stephen Lo Kit Sing, original owner of Moon Ocean, have been named as defendants in a corruption case arising from the land concession.

At odds The Public Prosecutors Office told broadcaster TDM on May 25 that it

had not received any enquiry from the government about whether the plot for La Scala was associated with Mr Ao’s case. Mr Lau’s legal adviser, Francisca Vong Iok Ip, told the Legislative Assembly this month that his staff had asked the appropriate departments “more than once” whether the plot was associated

KEY POINTS Grant of additional land for the La Scala project queried Lau Si Io’s staff say they asked whether the land was linked to any criminal case The Public Prosecutors Office denies receiving any such enquiry New Macau Association petitions the government Secretary Lau Si Io’s office is located in the Bank of China (Macau) building

with any criminal case, but that they had received no information. Mr Chao said Mr Lau should be held accountable if it was proved that he had lied. He said the government should be aware of any land deal linked to Ao’s corruption cases. Mr Lau denied an allegation last week by member of the Legislative Assembly Paul Chan Wai Chi that he was aware of all the deals Ao had made when he was in office, calling the allegation “unacceptable”. Mr Chao said it was inappropriate for the government to have granted extra land if it had had doubts

about the initial deal, and that the contract should be frozen. In an enquiry this month, Ho Ion Sang called for the government to clarify the land grants involved in the Ao case. He said the decision-making process should be more transparent and that the government should freeze all land grants until a new land law was passed. Security guards outside Mr Lau’s office stopped representatives of the New Macau Association yesterday when they tried to deliver a letter, in an envelope depicting the Mr Lau as Pinocchio, a fictional character

whose nose elongated when he lied. Mr Lau’s office told Business Daily that ”the public can hand in any letter through the government headquarters, but not [through] the office, which is located in a commercial building, to ensure the operation of other companies ... is not affected”. New Macau Association vicepresident Scott Chiang said this was “unacceptable” because Mr Lau’s office should be accessible to the public. Mr Chiang said the association would try again to deliver the letter again.

Labour market grows tighter Legislator calls for wage fund Unemployment remains at a record low; labour force shrinks

Fund to protect employees if employers cannot pay salaries

he labour supply became even tighter last month, with 1,600 people leaving the job market, but the unemployment rate remained unchanged at 2 percent, official data show. After reaching a historical high of 346,800 workers, the labour force dropped by 1,600 to 345,200 between February and April. These 1,600 people are likely to have either retired or left Macau. But an International Labour Organisation report released in January warns that the ageing population will cause the growth to slow. The number of employed people dropped by a similar figure to 338,300. As a result, the percentage of people working in the city dropped

for the second consecutive month to 72.9 percent. The decrease was felt most in the real estate, gaming and retailing industries, the Statistics and Census Service said yesterday. Hotels alone saw their number of workers grow in April. Sands Cotai Central opened last month with 1,800 rooms. In the six months before that, the number of employees in hotels grew to 41,700, a 9.3 percent surge to a three-year high. This sector could easily have far more workers. Even after a hiring spree that pushed hotels’ employee recruitment rate to 13.2 percent in the last half-year, the industry still reported 2,450 vacancies at the end of March. V.Q.

egislator Lee Chong Cheng has called for the establishment of a wage guarantee fund. He said in an enquiry last week that a system providing payment to employees affected by business bankruptcy has found a “social consensus”. The Standing Committee for the Coordination of Social Affairs approved in May last year a proposal for the establishment of a wage guarantee fund. However, no progress has been reported since. Mr Lee believes some employers deliberately do not pay wages. “The bill is picked up by the government,” he said. He called for measures to stop this practice. Ella Lei Cheng I, vice-chairperson

of the Macau Federation of Trade Unions, raised this issue in January. She believes there are flaws in the labour law, especially when a company declares bankruptcy without paying salaries to its workers. Ms Lei says workers have to wait a long time for unpaid wages to be remitted from the Social Security Fund. According to the deliberations of the standing committee, the capital for the fund would come from the government. A committee would also be set up to help employees owed wages to seek financial help if their employers declare bankruptcy or leave Macau. In his 2012 policy address, the secretary for the economy and finance, Francis Tam Pak Yuen, said the wage guarantee fund would be set up in the third quarter of this year. K.C.

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business daily May 29, 2012

GREATER CHINA

Hong Kong proposes class actions Lawsuit to help investors seek damages as IPO disputes increase Debra Mao

ong Kong, where the securities regulator this month proposed introducing civil liability for banks working on initial share sale prospectuses, may also allow classaction lawsuits to help investors seek damages. The city’s Law Reform Commission yesterday recommended legislation to allow a group with a common complaint to sue through a representative. Initially, the class actions should only be for cases such as product liability and consumer fraud, which can be financed by an existing public fund. Hong Kong currently allows multiparty proceedings under rules the city’s then-chief justice Andrew Li criticised as restrictive and inadequate in 2004. Losing parties must pay all or part of their opponent’s legal fees under Hong Kong law, a deterrent for individual investors seeking damages. That means litigation risk for bankers and companies selling

Stocks gain Hong Kong

shares has been relatively low, according to Jeff Maddox, a lawyer who has advised on capital raising in Hong Kong, New York and Singapore stock exchanges. “There’s less than a three percent chance of getting sued after a listing here compared to a 20 to 25 percent chance in the U.S.,” said Mr Maddox, a Hong Kongbased partner at Cadwalader, Wickersham & Taft LLP, citing industry statistics. Allowing class actions was recommended by a subcommittee of the law commission in 2009 following losses by thousands of investors on notes guaranteed by failed Lehman Brothers Holdings Inc.

Criminal liability The need for class actions “most typically arises where a large number of persons have been adversely affected by another’s conduct, but each person’s loss

is too small” to make individual litigation viable, the commission said yesterday. Its final recommendation comes two weeks after the Securities and Futures Commission (SFC), Hong Kong’s market regulator, proposed extending criminal and civil liability laws to initial share sale arrangers who sign off on misleading or inaccurate prospectuses. The SFC said tighter laws are needed to protect investors after finding substandard work by investment banks arranging IPOs. In one case, it alleges that Chinese fabric-maker Hontex International Holdings Co. misled investors in its listings prospectus in 2009. This year there have been at least six disputes between accounting firms and mainland Chinese companies, including Boshiwa International Holding Ltd, a Shanghai-based Harry Potter apparel licensee whose auditor resigned in March due to disagreements over financial information.

China’s stocks rose for the first time in four days on speculation the government will take more steps to bolster economic growth and concern eased that Greece will leave the euro bloc. The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, rose 27.81 points, or 1.2 percent, to 2,361.37, erasing a 1.1 percent loss and set to snap a three-day, 1.7 percent drop. The CSI 300 Index gained 1.6 percent to 2,614.69.

Taiwan Taiwan stocks rose 0.91 percent yesterday, snapping a three-day losing streak, led by banking and tech heavyweights such as TSMC, but market sentiment remained cautious over concerns about the euro zone debt crisis. The main TAIEX index closed up 64.37 points at 7,136.00, recovering from a nearly five-month closing low in prior session. TSMC, the world’s top contract chipmaker, rose 2 percent, and Apple’s major supplier Hon Hai Precision was up 1.6 percent. The Taiwan dollar firmed by T$0.073 to stand at T$29.577.

Value of IPOs by mainland companies in the past decade Market boom Hong Kong has benefited as US$159 billion of IPOs by companies from the mainland in the past decade swelled the value of its stock market. First-time sales peaked at US$58 billion in 2010 before declining by more than half last year, data compiled by Bloomberg show. Civil liability will have a positive influence on the behaviour of market participants, SFC chief executive Ashley Alder said on May 22. The current litigation system can be “off-putting – in part

Gome falls to three-year low Home appliance retail operator said profit slumped 88 percent

Hong Kong shares posted a second straight gain in yesterday’s trade, lifted by strength in Chinese banks and property developers, although weak turnover suggested gains could be short-lived. The Hang Seng Index closed up 0.47 percent at 18,800.99. The China Enterprises Index of top Chinese listings in Hong Kong ended up 1.14 percent at 9,647.79. Chinese financials and developers were among the top boosts on the Hang Seng Index. China Construction Bank Corp gained 1.2 percent, while China Overseas Land & Investments Ltd jumped 4.1 percent.

Shanghai

US$159 billion

Gome closed 4.5 percent lower at HK$1.26 in Hong Kong

ome Electrical Appliances Holding Ltd, China’s second-biggest electronics retailer, fell to its lowest level in almost three years in Hong Kong trading on profit slump. The stock plunged as much as 9.9 percent to HK$1.19, the lowest since June 2009. Gome closed 4.5 percent lower at HK$1.26 in Hong Kong while the benchmark Hang Seng Index gained 0.47 percent. Gome’s stock has dropped more than 30 percent so far this year. The sharp drop in first-quarter profit triggered worries over future earnings, especially given its push into the competitive e-commerce market. “Gome’s top-line weakness in 1Q 12 has been worse than expected,” Bank of America Merrill Lynch wrote in a research note. “Despite the recent share price weakness, we remain cautious given the potential for consensus downgrades, low earnings visibility and the heavy competition in the online business.” It said Gome’s online business was a key concern due to the company’s push to ramp up online sales from the second quarter, despite fierce competition. The bank cut its 2012 and 2013

estimates by 17 and 14 percent, respectively, and lowered its stock price target by 13 percent to HK$1.40. On Friday, the Chinese home appliance retail chain operator reported an 88 percent fall in firstquarter profit to 67.4 million yuan from 552 million yuan a year earlier, as sales dived on the expiry of a government subsidy programme at the end of last year. “The company has suffered

from weak consumer demand especially in the first-tier cities as well as intensifying competition from e-commerce retailers,” Mark Li, an analyst at DBS Vickers in Hong Kong, said in a report. “We believe any improvement will take time to materialise.” Due to the weak macro environment, operational pressure and challenges in the e-commerce sector, Gome recorded a 34.4 percent decline in same-store sales for the first quarter, China International Capital Corp said. “Sales growth will gradually recover for 2H, but intrinsic problems still exist. New government subsidies will have a positive impact, but their influence will not be big,” the Chinese brokerage wrote in a research note. It said manufacturers, rather than distributors, would be the main beneficiaries of the new subsidies. The Chinese brokerage, which cut its 2012 earnings forecast for Gome by 60 percent, expects margins to be squeezed due to a weak sales performance and increased expenses, while a lack of new store openings would put pressure on the company. Reuters/Bloomberg

GOME Electrical Appliances (493 HK) share price 2.2 2.0 1.8 1.6 1.4 1.2

May 29, 2012 business daily | 9

GREATER CHINA because of expense,” he said. There have been no investor lawsuits against Citic Pacific Ltd, which plunged after it announced a potential US$2 billion loss on wrong-way bets in 2008, six weeks after directors first learned of the information. Three retirees tried to pursue the steelmaker and property developer’s former chairman in the small claims tribunal, where parties represent themselves, to avoid the potential legal costs involved in a trial. The case was dismissed on the grounds that it was too complex for the tribunal.

Mindset change “If Hong Kong were to allow class actions, the risk of facing potential shareholder class-action lawsuits might well be a powerful driver for a change in mindset and behaviour in the market,” said Tim Mak, a Hong Kong-based financial services regulatory lawyer at Herbert Smith LLP. “Some might argue that a class-action system would encourage higher standards of corporate governance and listed- company management behaviour,” he said. “Over and above any potential criminal responsibility, the possibility of being on the receiving end of a class action lawsuit would be an additional risk that market participants would need to take seriously,” Mr Mak said. The SFC’s aim with its recent proposals

There’s less than a three percent chance of getting sued after a listing here compared to a 20 to 25 percent chance in the U.S. Jeff Maddox, partner at Cadwalader, Wickersham & Taft LLP

on IPO sponsors is to encourage vigilance not to put bankers in prison, according to Mr Alder.

Mixed results Gareth Hughes, a Hong Kong-based disputes lawyer at Ashurst LLP said that a group lawsuit regime has been long-awaited and is welcomed. “That said, the devil is in the detail, not least given the mixed results in other jurisdictions and the scope for abusive claims,” he said. “It may well be some time before such a regime is in place.” The Law Reform Commission, led by Hong Kong Secretary for Justice Wong Yan-lung, includes Chief Justice Geoffrey Ma and 11 other senior lawyers and academics.

Regulators mull tighter laws to protect investors

Bloomberg

InBrief

China Q2 growth to dip below 8 pct: Wang

Yongda said to cancel IPO

NDRC’s senior researcher says economy to hit bottom in June

hina’s annual economic growth is likely to dip below 8 percent in the second quarter and weakness could persist, a government economist said yesterday, affirming rising expectations that the Chinese economy would only hit a bottom in June at the earliest. “The downward trend [of the economy] is far from over,” Wang Jian, a senior researcher with the National Development and Reform Commission (NDRC), the nation’s top planning agency, told Reuters in an interview. “The second-quarter growth is very likely to dip below 8 percent,” he said. He did not give a specific forecast on the second-quarter growth nor predict when economic growth could bottom out. Analysts expect another 100 basis points of cuts this year and annual economic growth to dip to 7.9 percent in the second quarter - the sixth successive quarter of slowdown, but still above an official 2012 growth target of 7.5 percent. Recent comments by Premier Wen Jiabao and other leaders have also fuelled market expectations that the government could roll out more stimulus measures to combat an economic slowdown. Song Guoqing, a central bank adviser, said on Friday that China should step up efforts to spur economic growth, as the government saw tentative signs of a recovery in exports. The economy is haunted by weak demand and overcapacity, which means companies are less enthusiastic about investing and are cautious in borrowing from banks, Mr Wang said.

China Yongda Automobiles Services Holdings Ltd, China’s biggest distributor of BMW cars, cancelled plans to raise as much as US$430 million in an initial public offering in Hong Kong, two people with knowledge of the matter said. Yongda decided to shelve the offering after failing to get enough demand from investors, said the people. “Yongda’s IPO came at a bad time,” Yao Wei, an analyst with Everbright Securities Co. in Shanghai, told Bloomberg. “Auto dealers have been burning money on network expansion and have caused market concern over their cash flows.”

Kwok brothers renew bail

Economic reforms seen as crucial for China to unleash new sources of growth

The downward trend [of the economy] is far from over Wang Jian, a senior researcher with the NDRC

“Stimulative policies won’t boost demand, even with more cuts in banks’ reserve requirement ratio (RRR) and interest rates,” he said. China’s central bank has cut the RRR by a total 150 basis points in three moves since November 2011,

bringing the rate down from a record high of 21.5 percent The government will refrain from unveiling any big fiscal stimulus similar to the 4 trillion yuan pumppriming package it took during the 2008-09 global crisis, Mr Wang said. Economic reforms will be crucial for China to unleash new sources of growth but the government could be wary in taking drastic reform steps this year due to the leadership transition, Mr Wang said. President Hu Jintao and Premier Wen Jiabao are due to hand over power to Vice President Xi Jinping and vice premier Li Keqiang early next year. “China could unleash huge domestic demand only through structural adjustments and largescale urbanisation, but we cannot see any substantial development,” he said. Reuters

Thomas and Raymond Kwok, joint chairmen of Sun Hung Kai Properties, Asia’s biggest developer, appeared briefly yesterday at Hong Kong’s anticorruption agency to renew their bail. Rafael Hui, Hong Kong’s chief secretary from 2005 to 2007, also reported to the Independent Commission Against Corruption (ICAC), leaving after a short stay. More than US$7 billion has been wiped off the company’s market value since the billionaire Kwok brothers were arrested in late March.

JPMorgan eyes China expansion JPMorgan Chase & Co has injected 2.5 billion yuan (US$394.08 million) into its China unit, the latest foreign bank to beef up its Chinese operations. “The additional capital will better position the bank in the evolving regulatory environment and cement our commitment to clients in China,” Zili Shao, chairman and chief executive of J.P. Morgan China, said in a statement yesterday. “The capital will be used to expand the bank’s branch network, develop products, increase corporate lending, and recruit employees,” Mr Shao added.

10 |

business daily May 29, 2012

ASIA

Thai factory output up for first time since 2011 floods Activity likely to remain below par in coming months

Goldman Sachs returning to Japan property Lower risk Tokyo office buildings targeted Junko Fujita

Orathai Sriring and Boontiwa Wichakul

After the flood – Thai factory output up

actory output in Thailand rose in April for the first time since severe flooding disrupted industry late last year, but economists said interest rates would continue to be held down to support the recovery in the face of slowing global demand. Output edged up 0.54 percent in April from a year before, sharply below the 2.8 percent forecast in a Reuters poll. March’s output was revised to a 2.69 percent fall. Output fell 13.84 percent in April from the previous month, but the Industry Ministry said that was because of the large number of holidays during April. “The main sectors hit by the floods have recovered steadily, particularly the car industry, which helped push overall production higher for the first since the flood crisis,” Aphiwat Asamaporn, deputy director general of the ministry’s Office of Industrial Economics, told a briefing. “Output should continue to rise further and we expect to see growth in the second quarter,” he said, noting volatile energy prices and problems in Europe as the main risks. Car production surged 83.12 percent in April from a year earlier, when it was hit by the tsunami in Japan. Output of air conditioners and parts rose 13.8 percent and beer 8.2 percent. The floods had badly hit car and electronics firms, many of whom are big exporters.

Thailand is a regional hub for the world’s top car producers and the world’s second-biggest maker of hard disk drives. At least 72 percent of the 839 affected firms are up and running again, and the authorities say they expect production to fully recover by June. The Industry Ministry has forecast output would rise 6-7 percent this year after a 9.3 percent fall in 2011. Unemployment remained low at 0.73 percent in the first quarter of 2012, compared with 0.83 percent a year before and 0.6 percent in the previous three months, as workers returned to work after the floods. Real wages rose 11.4 percent in the first quarter from a year before, according to the National Economic and Social Development Board (NESDB).

Despite the improvement, industrial output will probably remain below par in coming months, weighing on exports as industrial goods account for about 65 percent of shipments. Customs data on Friday showed exports fell 3.7 percent in April from a year before due to the lingering impact of the floods and sputtering demand from the euro zone. “Weak April export numbers coupled with the trickle of sluggish external sector and production data from the region also point towards a more gradual than estimated recovery in Thai production activity, though it will find some support from reconstruction due to last year’s floods,” said Radhika Rao, an economist at Forecast in Singapore. Reuters

KEY POINTS Thai industry April output +0.54pct y/y vs f’cast +2.8pct First annual rise since severe flooding in late 2011 Annual output -5.24pct in first 4 months 2012 No change in policy rate at June meeting - economists

oldman Sachs is returning to the Japanese property market after a four-year hiatus, looking to raise as much as 400 billion yen (US$5 billion) over four years for a privately held real estate trust, a source said. While the U.S. investment bank snapped up distressed properties from struggling golf courses to hot spring resorts when it was last active in Japan, the latest push will focus on lower risk, less flashy Tokyo office buildings, sources said. The move comes at a time when Japan’s property market has started showing signs of improvement, and is aimed at taking advantage of low-financing costs in yen and the prospect that office rents and vacancy rents are near bottom. Goldman Sachs Asset Management plans to set up the real estate trust in July, seeking money from Japan’s pension funds and other institutional investors, a person with direct knowledge of the situation said. The trust will initially raise around 100 billion yen, with plans to seek more money from foreign investors who are keen to take a position in Japan’s property markets, said the person, asking not to be identified because the plan is not public. A Tokyo-based spokeswoman for Goldman Sachs declined to comment. Foreign investors are reassessing Japan four years after the Lehman bankruptcy and global financial crisis drove many away. Goldman Sachs was among investors such as Morgan Stanley and Aetos Capital that significantly scaled down investments in Japan after 2008. Reuters

Indian PM meets Myanmar president in historic visit Regional powerbroker also seeing Aung San Suu Kyi

ndia’s prime minister held talks with Myanmar’s president on Monday in a historic visit aimed at boosting trade and energy links and contesting the influence of regional rival China. Manmohan Singh, the first Indian premier to visit Myanmar in a quarter of a century, was greeted with a guard of honour as he met President Thein Sein in the capital Naypyidaw. Energy-hungry India is eyeing a raft of agreements with its neighbour after dramatic reforms in Myanmar ended its international isolation. Mr Singh will travel to the main city of Yangon for talks with opposition leader Aung San Suu Kyi on Tuesday, in a move seen as a sign that India also wants to repair links with the veteran activist. New Delhi was once a staunch supporter of the democracy icon, but changed tack in the mid-1990s as it sought closer ties with Myanmar, and drew international criticism for its engagement with the former junta. India has since pointed to recent dramatic reforms under a new quasi-civilian regime, including Ms Suu Kyi’s election to parliament in April by-elections, as a validation of its stance. Mr Singh is the latest in a series of top-level visitors to Myanmar as the international community begins easing sanctions, raising hopes that the impoverished nation could be the next big frontier market. An Indian diplomat who declined to be named told AFP that about 12 agreements were set to be signed during the talks on Monday. Prime Minister Singh is seen as looking to expand India’s influence after half a century of military rule left Myanmar heavily reliant on Chinese investment and political support. AFP

May 29, 2012 business daily | 11

asia

Greek euro exit prospect InBrief cheers Asian markets Hyundai shipyard US$700mn order

South Korean shipbuilding giant Hyundai Heavy Industries has won a US$700 million order from a Norwegian company to build the world’s largest semi-submersible oil rig, it said Monday. Hyundai said the rig would be delivered to Norway’s Fred Olsen Energy in March 2015 and would be used in the North Sea. The world’s largest shipbuilder by sales said the contract includes an option to order an additional rig.

No capital curbs – Indonesia cenbank Indonesia’s central bank said on Monday it has no intention of implementing capital controls but is studying other policy options to manage rupiah and dollar liquidity, as investors dump riskier emerging market assets and flee to the safety of the dollar. Selling of Indonesian stocks, bonds and the rupiah currency has intensified in recent weeks in line with other Asian assets as Europe’s deepening debt crisis and cooling global growth prompt global investors to head for the exits.

Manila Electric, Japan, power plant Manila Electric Co., the power retailer that sold its plants to the Philippine government almost four decades ago, will partner with a Japanese utility to build the Southeast Asian nation’s first natural-gas fired power plant in more than 10 years to help reduce outages. The proposed 1,500-megawatt plant may be built in the southern part of Luzon island with half the project likely to be completed in late 2016.

Clarity on Hellenic tragi-comedy welcomed, risk priced in Adam Haigh

sian stocks rose, with the regional benchmark index climbing from a five-month low, as concern eased that Greece may exit the euro, outweighing a report that profit growth slowed at China’s industrial companies. Nintendo Co., a Japanese maker of game consoles that depends on Europe for a third of its sales, climbed 3.5 percent in Osaka. BHP Billiton Ltd., the world’s biggest mining company, advanced 1.4 percent in Sydney. Renesas Electronics Corp., the world’s biggest maker of microcontrollers for cars, sank 11 percent after a person briefed on the matter said it plans to raise 100 billion yen (US$1.3 billion) and eliminate more than 10,000 jobs. The MSCI Asia Pacific Index climbed 0.6 percent to 112.37 as of 3:57 p.m. yesterday in Tokyo. The gauge is heading for a 10 percent decline this month, the biggest monthly drop since October 2008, as slumping loan demand and factory output in China add to signs of a deeper slowdown in the world’s second-largest economy, and European leaders pressure Greece to meet bailout terms before elections next month.

Beware of Greeks bearing debts – until they leave the eurozone

capped an eighth straight weekly decline, the longest losing streak since 1977. Bank of Japan board members said they need to avoid any “misunderstanding” that central bank asset purchases will automatically

No exit? “There will be no exit by Greece,” said Binay Chandgothia, a Hong Kong-based portfolio manager at Principal Global Investors, which manages US$250 billion (two billion patacas) globally, speaking on Bloomberg Television. “If they take structurally positive steps, things will be all right in the long run. China is a little bit of a concern but China has policy levers. They can use policy incentive to get growth back on track.” The MSCI Asia Pacific Index, a U.S. dollar denominated gauge, rose as the yen gained for the first time in three days. Japan’s Topix Index slid 0.1 percent. The index last week

KEY POINTS Greek euro exit prospect calms markets Asia stocks up first time in four days MSCI Asia Pacific Index up at start of trading China risk smaller thanks to policy levers

increase, according to minutes of an April 27 policy meeting released today. Hong Kong’s Hang Seng Index gained 0.7 percent and Singapore’s Straits Times Index advanced 0.8 percent. South Korea’s markets are closed today. Australia’s S&P/ASX 200 Index advanced one percent. Greek opinion polls showed voters warming to parties supporting the European Union’s bailout, easing concern the country will exit the currency bloc. The New Democracy party, which supports the plan negotiated with international lenders, led by a margin of as much as 5.7 percentage points over Syriza, the main party opposed to implementing the terms of financial aid packages, according to a poll by Kapa Research SA for To Vima newspaper. Futures on the Standard & Poor’s 500 Index climbed one percent yesterday. The index slid 0.2 percent in New York on May 25, paring its weekly advance as the gauge posted its first weekly rally since April. Bloomberg

Japan’s April auto output soars Sector makes comeback after ‘quake

J Nomura shares slip on insider case no.2 Shares of Nomura Holdings edged lower in early Monday trade after sources said Japan’s largest broker was linked to a second insider trading case involving a fund management arm of Sumitomo Mitsui Trust Holdings. The Securities and Exchange Surveillance Commission found that a fund manager in the Sumitomo Mitsui group sold shares of Mizuho Financial Group with knowledge of the lender’s stock offering in 2010 before it became public, sources told Reuters on Saturday.

apan’s major automakers on Monday reported huge production increases for April, as the hard-hit sector recovers from the devastating impact of last year’s quake-tsunami. Heavyweights Toyota, Nissan, and Honda saw huge jumps in output from the same month a year earlier when they slashed production and shuttered plants due to power shortages and a parts supply crunch after the disaster. Toyota, the nation’s biggest automaker, said output at its factories in Japan surged more than three-fold to 352,973 vehicles last month, while overseas production rose 64.8 percent in the period to 439,988. Honda Motor said its production at home skyrocketed 514.4 percent

to 87,049 vehicles, while foreign output climbed by 112.5 percent to 264,614. Nissan’s production, meanwhile, jumped 94.0 percent to 85,734 at home, while overseas production rose 39.2 percent to 283,788. Japan’s auto sector suffered one

of its worst months on record in April last year, while flooding in Thailand later in the year added to the pain as Japanese manufacturers with plants in the country saw their supply chains hammered. Most automakers returned production to pre-quake levels by the end of 2011. The yen also hit a record high against the dollar last year, hurting exporters whose products become more expensive overseas when the currency strengthens. The latest production figures come less than a week after data showed Toyota regained its position as the world’s number one automaker in the first quarter of 2012, stealing back the lead from U.S. giant General Motors. AFP

12 |

business daily May 29, 2012

MARKETS Hang SENG INDEX NAME

PRICE

Day %

VOLUME

24.65

-0.2024291

27747124

ALUMINUM CORP-H

3.21

0.9433962

6975968

BANK OF CHINA-H

2.93

2.447552

389843053

AIA GROUP LTD

BANK OF COMMUN-H BANK EAST ASIA BELLE INTERNATIO BOC HONG KONG HO CATHAY PAC AIR CHEUNG KONG

5.05

12754025

26.05

-0.9505703

1366987

1.5625

10642296

PRICE

Day %

VOLUME

CHINA UNICOM HON

11.08

-0.5385996

19470468

CITIC PACIFIC

11.44

2.877698

3280740

SINO LAND CO

CLP HLDGS LTD

63.8

-0.1564945

1797612

SUN HUNG KAI PRO

CNOOC LTD

14.5

0.4155125

43751516

COSCO PAC LTD

9.22

1.096491

7027447

TENCENT HOLDINGS

ESPRIT HLDGS

12.5

1.957586

4827387

TINGYI HLDG CO WANT WANT CHINA

22.1

2.078522

8501579

HANG LUNG PROPER

12.02

-0.4966887

1937778

HANG SENG BK

92.5

1.092896

2571633

HENDERSON LAND D

CHINA COAL ENE-H

7.23

1.402525

18024088

CHINA CONST BA-H

5.21

1.165049

227493277

CHINA LIFE INS-H

18.2

0.7751938

17874467

CHINA MERCHANT

22.8

-0.4366812

1168782

CHINA MOBILE

NAME

HENGAN INTL

24.9

-0.5988024

4056980

101.2

-0.1972387

591066

39.2

1.950585

2908796

77.1

-0.3232062

596251

HONG KG CHINA GS

18.32

4369097

HONG KONG EXCHNG

109.5

-0.7252947

1550659

62.8

0.1594896

10270540

66.95

0.6010518

2853870

4.67

1.082251

260319980

14.96

-0.1335113

10051315

MTR CORP

25.2

-0.3952569

1140514

HSBC HLDGS PLC

79.65

0.1257071

6897416

CHINA OVERSEAS

16.4

4.060914

27378364

IND & COMM BK-H

CHINA PETROLEU-H

7.09

-0.1408451

31039338

LI & FUNG LTD

CHINA RES ENTERP

24.7

1.229508

2253020

HUTCHISON WHAMPO

NAME

PRICE

Day %

VOLUME

54.6

-1.176471

2868750

10.88

1.682243

4161202

88.2

0.5128205

2518046

84.9

2.412545

2359498

213.6

-1.56682

2083035

19.18

-1.438849

4138527

9.11

-0.9782609

5303535

41.25

2.86783

2720877

POWER ASSETS HOL

SWIRE PACIFIC-A

WHARF HLDG

MOVERS

1 18850

INDEX 18800.99 HIGH

18833.79

LOW

18587.49

CHINA RES LAND

14.14

3.362573

12422550

NEW WORLD DEV

8.24

1.602959

5987412

52W (H) 23707.94

CHINA RES POWER

13.72

0.8823529

2669766

PETROCHINA CO-H

10.2

0.1964637

31650019

(L) 16170.35

CHINA SHENHUA-H

27.85

1.272727

9273746

PING AN INSURA-H

56.7

0.4428698

6430028

PRICE

DAY %

VOLUME

22.45

1.354402

4604800

-0.1408451

31039338

ZIJIN MINING-H

24-May

28-May

18550

Hang SENG CHINA ENTErPRISE INDEX NAME

NAME

PRICE

DAY %

VOLUME

AGRICULTURAL-H

3.17

1.92926

79098709

AIR CHINA LTD-H

4.75

-1.452282

5118000

CHINA PETROLEU-H

7.09

ALUMINUM CORP-H

CHINA PACIFIC-H

NAME YANZHOU COAL-H

PRICE

DAY %

12.76

0.9493671

VOLUME 9464868

2.41

17049136

3.21

0.9433962

6975968

CHINA RAIL CN-H

6.24

-1.265823

19223000

ZOOMLION HEAVY-H

11.54

6.654344

29164120

ANHUI CONCH-H

23.75

3.938731

20401882

CHINA RAIL GR-H

3.07

0.3267974

20591000

ZTE CORP-H

15.04

0.669344

6730935

BANK OF CHINA-H

2.93

2.447552

389843053

CHINA SHENHUA-H

27.85

1.272727

9273746

5.05

12754025

CHINA TELECOM-H

3.63

0.5540166

29684000

15.24

-5.925926

12577500

DONGFENG MOTOR-H

13.48

8.012821

20906528

CHINA CITIC BK-H

3.98

0.2518892

47624006

GUANGZHOU AUTO-H

6.68

2.769231

6689701

CHINA COAL ENE-H

7.23

1.402525

18024088

HUANENG POWER-H

4.89

1.242236

9826000

CHINA COM CONS-H

7.32

1.244813

21550789

IND & COMM BK-H

4.67

1.082251

260319980

CHINA CONST BA-H

5.21

1.165049

227493277

JIANGXI COPPER-H

16.26

0.8684864

7358345

BANK OF COMMUN-H BYD CO LTD-H

3.5

-1.408451

9866000

PETROCHINA CO-H

10.2

0.1964637

31650019

CHINA LIFE INS-H

18.2

0.7751938

17874467

PICC PROPERTY &

8.18

2.122347

14181021

CHINA LONGYUAN-H

4.49

-2.391304

5595164

PING AN INSURA-H

56.7

0.4428698

6430028

CHINA MERCH BK-H

14.64

1.385042

10070351

SHANDONG WEIG-H

7.94

-0.2512563

1144000

CHINA COSCO HO-H

MOVERS

INDEX 9647.79 HIGH

9668.22

LOW

9433.07

CHINA MINSHENG-H

7.01

0.1428571

25184000

SINOPHARM-H

17.66

-1.450893

971312

52W (H) 13317.51

CHINA NATL BDG-H

9.47

3.04679

46809000

TSINGTAO BREW-H

46.65

-1.269841

207417

(L) 8058.58

10.88

1.872659

10960000

WEICHAI POWER-H

32.5

2.362205

1967864

CHINA OILFIELD-H

9700

24-May

28-May

9400

Shanghai Shenzhen CSI 300 PRICE

DAY %

VOLUME

PRICE

DAY %

VOLUME

PRICE

DAY %

VOLUME

AGRICULTURAL-A

2.65

60731201

DATANG INTL PO-A

5.32

-0.5607477

1875676

SHANG PUDONG-A

8.87

0.1128668

46679612

AIR CHINA LTD-A

6.04

-1.145663

11547270

DONGFANG ELECT-A

21.52

0.419972

3804885

SHANGHAI ELECT-A

5.48

0.3663004

5113409

ALUMINUM CORP-A

6.95

2.0558

18421977

EVERBRIG SEC -A

13.39

-2.191381

10875327

SHANXI LU'AN -A

26.86

1.974184

12251316

16.13

0.1863354

17298950

GD MIDEA HOLDING

13.81

1.172161

16250599

SHANXI XINGHUA-A

75.96

3.038524

1787123

31433990

GD POWER DEVEL-A

2.58

-0.3861004

15008325

SHANXI XISHAN-A

17.81

3.426249

33893608

SHENZ DVLP BK-A

15.77

0.3180662

8569485

7.35

-0.6756757

12346259

NAME

ANHUI CONCH-A BANK OF BEIJIN-A BANK OF CHINA-A BANK OF COMMUN-A BAOSHAN IRON & S BYD CO LTD -A

9.77

-0.509165

NAME

0.3344482

8714988

30.5

-4.118202

12067944

4.71

0.856531

34425311

GREE ELECTRIC

21.73

0.4623209

8814415

SHENZEN OVERSE-A

4.8

0.2087683

12340018

GUIZHOU PANJIA-A

31.98

4.441541

8177901

SINOVEL WIND-A

15.38

0.1954397

716214

2995104

HAITONG SECURI-A

9.93

-1.292247

55031525

SUNING APPLIAN-A

9.8

-0.203666

26464092

HANGZHOU HIKVI-A

44.95

-2.705628

1569986

TONGLING NONFE-A

21.45

3.623188

22651820

0.6711409

14588830

TSINGTAO BREW-A

36.76

1.828255

1131292

24.58

1.570248

GF SECURITIES-A

NAME

CHINA CITIC BK-A

4.29

0.4683841

8097510

CHINA CNR CORP-A

4.28

2.884615

100172309

CHINA COAL ENE-A

9.17

1.325967

7127281

HENAN SHUAN-A

62.63

-0.5873016

951027

WEICHAI POWER-A

31.36

0.1277139

3212670

CHINA CONST BA-A

4.52

0.4444444

18576626

HUATAI SECURIT-A

10.51

-3.400735

22392037

WULIANGYE YIBIN

33.96

1.222057

22024196

9.79

-1.706827

40200242

XIAMEN TUNGSTEN

46.6

3.601601

10366391

HEBEI IRON-A

CHINA COSCO HO-A

-0.990099

10694933

HUAXIA BANK CO

CHINA CSSC HOL-A

31.59

-3.777033

13856811

IND & COMM BK-A

4.23

-0.4705882

39166846

XINJIANG GUANG-A

26.98

2.702703

10178311

CHINA EAST AIR-A

4.05

0.4962779

9875131

INDUSTRIAL BAN-A

13.48

0.4470939

26813155

YANGQUAN COAL -A

19.24

-0.1556824

16741889

CHINA EVERBRIG-A

2.95

23754270

INNER MONG BAO-A

44.8

2.775866

92709863

YANTAI CHANGYU-A

96.65

2.069912

743013

CHINA LIFE INS-A

17.78

0.2254791

5427391

INNER MONG YIL-A

22.95

2.227171

8238891

YANTAI WANHUA-A

14.31

1.633523

6300389

CHINA MERCH BK-A

11.64

0.6920415

46862803

INNER MONGOLIA-A

6.36

1.597444

74687876

YANZHOU COAL-A

22.84

0.7498897

6334750

CHINA MERCHANT-A

12.74

-0.5464481

12936709

JIANGSU HENGRU-A

0.3584229

1550090

YUNNAN BAIYAO-A

1.344767

1311673

JIANGSU YANGHE-A

168.08

7.077786

1645242

ZHONGJIN GOLD

22.91

0.9251101

10800754

25.61

1.950637

11486669

ZIJIN MINING-A

4.13

0.2427184

37168755

9.61

35892712

15.59

-2.501563

21029027

CHINA MERCHANT-A

0.9214568

2941985

CHINA MINSHENG-A

6.56

0.9230769

66183957

CHINA OILFIELD-A

18.3

1.779755

5328928

JINDUICHENG -A

13.83

1.54185

6861501

JIZHONG ENERGY-A

19.81

2.113402

15796424

223.19

2.418319

2884345

JIANGXI COPPER-A

CHINA PACIFIC-A

21.1

0.6199332

8143990

CHINA PETROLEU-A

6.98

0.867052

25821767

KWEICHOW MOUTA-A

CHINA RAILWAY-A

2.68

3.076923

55051692

LUZHOU LAOJIAO-A

42.78

2.246654

8739804

CHINA RAILWAY-A

4.36

3.317536

31944565

METALLURGICAL-A

2.64

1.538462

20553122

1.404056

13227933

NARI TECHNOLOG-A

19.79

-1.296758

6041703

CHINA SHIPBUIL-A

5.71

-0.1748252

18714512

NINGBO PORT CO-A

2.66

-5.673759

86235795

CHINA SOUTHERN-A

4.62

-0.4310345

15568024

PANGANG GROUP -A

8.01

3.088803

50760122

9.52

0.1051525

13367933

CHINA SHENHUA-A

CHINA STATE -A

3.25

0.931677

33058259

PETROCHINA CO-A

CHINA UNITED-A

4.1

-0.4854369

43473917

PING AN INSURA-A

41.62

0.5071239

15580665

12.72

-0.0785546

ZOOMLION HEAVY-A ZTE CORP-A

MOVERS

258

8 2630

INDEX 2614.68

CHINA VANKE CO-A

8.67

1.048951

29233305

POLY REAL ESTA-A

11601583

HIGH

2627.52

CHINA YANGTZE-A

6.72

-0.4444444

14121444

QINGDAO HAIER-A

12.03

-0.5785124

18830631

LOW

2551.46

CHONGQING WATE-A

6.31

1.610306

13894499

QINGHAI SALT-A

32.41

1.34459

3221441

CITIC SECURITI-A

12.94

-0.9946442

59987514

SAIC MOTOR-A

15.12

-0.3952569

11857754

CSR CORP LTD -A

4.83

3.426124

60371912

SANY HEAVY INDUS

13.71

0.2192982

17589018

7.5

0.6711409

61296772

SHANDONG GOLD-MI

34.34

0.556369

5819114

PRICE DAY %

Volume

PRICE DAY %

Volume

DAQIN RAILWAY -A

52W (H) 3140.10 (L) 2254.56

2550

24-May

28-May

FTSE TAIWAN 50 INDEX NAME ACER INC

1.694915

8033285

ADVANCED SEMICON

27.6

2.60223

13401741

ASIA CEMENT CORP

34.4

1.176471

2411514

ASUSTEK COMPUTER

286.5

0.1748252

AU OPTRONICS COR

12.1

2.109705

CATCHER TECH

NAME

PRICE DAY %

FORMOSA PLASTIC

79.2

0.7633588

4924205

TAIWAN MOBILE CO

FOXCONN TECHNOLO

100

2.669405

4951806

FUBON FINANCIAL

28.65

0.7029877

2044343

HON HAI PRECISIO

85.4

19331243

HOTAI MOTOR CO

182

-1.030928

TPK HOLDING CO L

403

1.639344

3475084

11086989

TSMC

81.6

28897768

1.545779

15615623

UNI-PRESIDENT

45.5

0.7751938

3628002

0.5524862

211000

UNITED MICROELEC

12.7

0.7936508

20983633

37.1

-0.669344

16678096

13.25

3.11284

21137633

47.5 -0.6276151

3251400

181

2.549575

7413801

HTC CORP

415

0.4842615

5220362

WISTRON CORP

CATHAY FINANCIAL

1.045296

6037134

HUA NAN FINANCIA

15.9

1.273885

3211189

YUANTA FINANCIAL

CHANG HWA BANK

15.3

1.324503

5062189

LARGAN PRECISION

557

-1.763668

1699624

YULON MOTOR CO

CHENG SHIN RUBBE

71.4 -0.1398601

1530596

LITE-ON TECHNOLO

34.6

1.615272

1205685

CHIMEI INNOLUX C CHINA DEVELOPMEN CHINA STEEL CORP

0.8403361

14643008

MEDIATEK INC

259

1.768173

6374458

7.05

2.173913

48787985

MEGA FINANCIAL H

20.3

2.267003

20534114

27.85 -0.1792115

13449559

NAN YA PLASTICS

55.5

1.092896

3132069

PRESIDENT CHAIN

155

1.639344

378754

QUANTA COMPUTER

75.2

-0.397351

17436399

CHINATRUST FINAN

16.3

1.242236

31855136

CHUNGHWA TELECOM

90.9 -0.3289474

6866386

COMPAL ELECTRON

30.95

-1.433121

5921422

SILICONWARE PREC

30.05

3.264605

5203867

82.5

-0.241838

6002838

SINOPAC FINANCIA

9.58

1.590668

9243472

FAR EASTERN NEW

29.25

0.5154639

4731465

SYNNEX TECH INTL

67.6 -0.1477105

2361233

FAR EASTONE TELE

69.5

0.5788712

2540344

TAIWAN CEMENT

32.55

0.1538462

4002190

17.35

1.166181

2251757

66.7

1.832061

1490246

27.35

0.7366483

829965

DELTA ELECT INC

16.75

1.823708

8749191

TAIWAN COOPERATI

FORMOSA CHEM & F

FIRST FINANCIAL

79.7

1.013942

2945574

TAIWAN FERTILIZE

FORMOSA PETROCHE

83.9 -0.1190476

688578

TAIWAN GLASS IND

Volume

MOVERS

0 2630

INDEX 4937.71 HIGH

4948.62

LOW

4874.04

4877091

52W (H) 6247.96 (L) 4643.05

2550

24-May

28-May

May 29, 2012 business daily | 13

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

Max 19.16

Average 19.03

MELCO CROWN ENTERTAINMENT

Min 18.70

19.2

32.00

12.45

19.1

31.88

12.39

19.0

31.76

12.33

18.9

31.64

12.27

18.8

31.52

12.21

18.7

Last 19.06

Max 31.85

SANDS CHINA LTD

Max 26.55

Average 26.22

Average 31.80

Min 31.45

Min 25.90

Last 26.20

Average 12.26

Min 12.18

Last 12.26

WYNN MACAU LTD 18.80

26.44

13.94

18.66

26.28

13.88

18.52

26.12

13.82

18.38

25.96

13.76

18.24

25.80

13.70 Max 13.98

Average 13.88

WTI CRUDE FUTURE Jul12

91.93

1.177635923

-7.496478165

111.4899979

77.40000153

BRENT CRUDE FUTR Jul12

107.93

1.029673313

2.17741172

125.6100006

94.34999847

GASOLINE RBOB FUT Jun12

292.54

1.123440147

6.727471726

336.8899822

245.539999

GAS OIL FUT (ICE) Jul12

908.75

0.608912261

1.028349083

1045.75

810

2.485

-3.232087227

-21.9044626

5.09400034

1.981999993

HEATING OIL FUTR Jun12

284.77

0.668127828

0.063248884

331.5699816

256.0600042

Gold Spot $/Oz

1581.6

0.5467

1.0665

1921.18

1478.78

Silver Spot $/Oz

28.6788

0.5568

3.0314

44.2175

26.085

Platinum Spot $/Oz

1441.37

0.7247

3.3611

1915.75

1339.25

Palladium Spot $/Oz

597.04

1.1984

-8.6396

848.37

537.54

LME ALUMINUM 3MO ($)

2013.5

-0.074441687

-0.321782178

2695

1955.75

7639

0.38107753

0.513157895

9905

6635

1908.5

1.19300106

3.441734417

2539.5

1718.5

LME COPPER 3MO ($) 3MO ($)

LME NICKEL 3MO ($) AGRICULTURE ROUGH RICE (CBOT) Jul12

Min 13.72

Last 13.82

18.10 Max 18.74

Average 18.56

Last 18.40

Min 18.14

Jul12

DAY %

YTD %

(H) 52W

PRICE

(L) 52W

17050

-0.292397661

-8.872260823

25195

16550

14.505

-2.618328298

-5.627846454

19.375

14.07500076

578.5

-12.51417769

795

572.25

MAJORS

ASIA PACIFIC

CROSSES

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

DAY %

0.9879 1.5707 0.9545 1.2595 79.35 7.9951 7.7621 6.3453 55.1375 31.61 1.2744 29.613 43.54 9333 78.391 1.20213 0.80187 7.9793 10.07 99.95 1.03

YTD %

1.24 0.2553 0.5238 0.6232 0.4159 0.01 0.0193 -0.0142 0.4307 0.1898 0.565 0.027 0.5466 1.2965 -0.81 -0.0774 -0.3429 0.094 -0.1688 -0.2001 -0.0097

(H) 52W

-3.2324 1.0551 -1.7182 -2.8239 -3.075 0.0563 0.0683 -0.7927 -3.7588 -0.1898 1.742 2.249 0.689 -2.8287 0.0523 1.2195 3.9308 1.9413 2.8004 -0.2901 0.0097

(L) 52W

1.1081 1.6618 0.9612 1.4697 84.18 8.0449 7.8113 6.4909 56.3875 31.96 1.3199 30.716 44.35 9534 88.637 1.24736 0.90835 9.514 11.7768 117.9 1.0311

0.9388 1.5235 0.7071 1.2496 75.35 7.9823 7.7529 6.2769 43.855 29.63 1.1992 28.562 41.879 8458 72.057 1.00749 0.79505 7.9406 10.0097 97.04 1.0288

MACAU RELATED STOCKS

WHEAT FUTURE(CBT) Jul12

680

2.564102564

-0.910746812

957.5

592.25

NAME

(H) 52W

(L) 52W

SOYBEAN FUTURE Jul12

1382

0.436046512

12.63243684

1512.5

1125.5

ARISTOCRAT LEISU

2.91

32.27272

3.25

1.88

860057

COFFEE 'C' FUTURE Jul12

167.8

0.539245057

-27.73471146

290.75

165.0999908

CROWN LTD

8.45

-1.053864

4.449936

9.29

7.45

2176084

SUGAR #11 (WORLD) Jul12

19.62

0.204290092

-13.03191489

27.02999878

19.3599987

AMAX HOLDINGS LT

0.084

3.703704

-3.448273

0.131

0.06

3193000

COTTON NO.2 FUTR Jul12

73.62

-0.432769872

-19.37356259

117

70.52999878

BOC HONG KONG HO

22.1

2.078522

20.1087

24.45

14.24

8501579

PRICE

CENTURY LEGEND

World Stock MarketS - Indices NAME

DAY % YTD %

VOLUME CRNCY

0.233

1.304346

0.41

0.204

CHEUK NANG HLDGS

2.97

-1.655629

6.07143

4.79

2.3

44713

CHINA OVERSEAS

16.4

4.060914

26.34823

17.86

9.99

27378364

CHINESE ESTATES

8.99

-1.10011

-28.08

14.1

8.3

1247050

CHOW TAI FOOK JE

9.64

0.6263048

-30.74713

15.16

9.46

2716400

EMPEROR ENTERTAI

1.17

-0.8474576

5.405404

2.09

0.97

360000

FUTURE BRIGHT

0.83

-2.352941

97.61905

1.09

0.3

366000

GALAXY ENTERTAIN

19.06

1.167728

33.84832

24.95

8.69

9798988 591066

COUNTRY

PRICE

DAY %

YTD %

(H) 52W

(L) 52W

DOW JONES INDUS. AVG

12454.83

-0.5979369

1.942045

13338.66016

10404.49

NASDAQ COMPOSITE INDEX

2837.53

-0.06515507

8.920029

3134.17

2298.89

HANG SENG BK

101.2

-0.1972387

9.820942

125

84.4

FTSE 100 INDEX

5410.08

1.09408

-2.910832

6084.08

4791.01

HOPEWELL HLDGS

20.55

1.231527

3.474317

24.903

18.56

418000

DAX INDEX

6398.26

0.9198825

8.475415

7523.53

4965.8

HSBC HLDGS PLC

62.8

0.1594896

6.440678

82.15

10270540

NIKKEI 225

8593.15

0.1487112

1.629747

10255.15

8135.79

4190974

HANG SENG INDEX

18800.99

0.4680066

1.988672

23707.94922

16170.35

CSI 300 INDEX

2614.689

1.616181

11.46533

3140.102

2254.567

TAIWAN TAIEX INDEX

7136

0.9102569

0.9038348

9089.47

6609.11

HUTCHISON TELE H

3.4

-2.017291

13.71237

3.71

2.33

LUK FOOK HLDGS I

18.08

-1.632209

-33.28413

46.15

16.56

1681000

MELCO INTL DEVEL

6.51

0.462963

12.82496

10.76

4.3

1598000

MGM CHINA HOLDIN

12.26

-1.288245

27.8128

17.183

7.6

7762200

MIDLAND HOLDINGS

3.79

1.88172

-6.188118

5.48

2.95

798000

NEPTUNE GROUP

0.101

5.208333

-9.00901

0.157

0.08

150000

NEW WORLD DEV

8.24

1.602959

31.62939

12.381

6.13

5987412

SANDS CHINA LTD

26.2

0.9633911

19.36218

33.05

14.9

14223231

SHUN HO RESOURCE

1.18

1.32

0.82

2.8

0.7194245

9.412256

4.686

2.241

2200265 6775000

KOSPI INDEX

1824.17

0.5345914

-0.08598959

2192.83

1644.11

S&P/ASX 200 INDEX

4068.025

0.9624381

0.2826127

4724.8

3765.9

3918.685

0.4145283

2.529914

4234.734

3217.951

FTSE Bursa Malaysia KLCI

1554.94

0.2462737

1.581596

1609.33

1310.53

SHUN TAK HOLDING

NZX ALL INDEX

774.756

-0.6061726

6.159999

806.015

700.441

SJM HOLDINGS LTD

13.82

0.4360465

10.51106

20.711

10.079

SMARTONE TELECOM

14.64

8.928575

18.5

9.8

278500

18.4

0.2178649

-5.641026

27.48

14.807

4365832

JAKARTA COMPOSITE INDEX

PHILIPPINES ALL SHARE IX

12.15

14.00

PRICE

CORN FUTURE

Max 12.42

26.60

NAME

LME ZINC

31.40

CURRENCY EXCHANGE RATES

NATURAL GAS FUTR Jun12

METALS

Last 31.85

SJM HOLDINGS LTD

Commodities ENERGY

MGM CHINA HOLDINGS

3312.18

0.5625977

8.772951

3518.96

2695.06

WYNN MACAU LTD

HSBC Dragon 300 Index Singapor

524.73

-0.53

5.72

ASIA ENTERTAINME

4.17

2.962963

-29.08163

10.8692

3.66

142316

STOCK EXCH OF THAI INDEX

1139.93

0.6267489

11.17798

1247.72

843.69

BALLY TECHNOLOGI

45.38

-0.4824561

14.71183

49.32

24.74

357323

HO CHI MINH STOCK INDEX

435.48

-0.4344049

23.87428

492.44

332.28

BOC HONG KONG HO

2.83

1.798561

18.05501

3.15

1.81

1150

Laos Composite Index

995.62

10.69086

1146.63

876.33

GALAXY ENTERTAIN

2.38

0.8474576

27.27273

3.24

1.08

2000

INTL GAME TECH

14.13

0.07082153

-17.84884

19.15

13.38

1697997

JONES LANG LASAL

72.24

0.08312552

17.92361

99.89

46.01

203543

LAS VEGAS SANDS

47.92

12.14603

62.09

36.08

5655099

MELCO CROWN-ADR

12.1

-1.545972

25.77963

16.15

7.05

4072916

MGM CHINA HOLDIN

1.66

39.2976

2.21314

1.00254

4000

MGM RESORTS INTE

10.8

-0.3690037

3.547456

16.05

7.4

5139784

15.86

2.45478

35.32423

18.77

7.35

373525

1.75

8.859767

2.60368

1.26239

5500

102.04

-1.152766

-7.647749

165.4931

98.26

1382846

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

SHUFFLE MASTER SJM HOLDINGS LTD WYNN RESORTS LTD

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business daily May 29, 2012

Opinion Is college’s stone age about to end?

Mark C. Taylor

Chairman of the department of religion at Columbia University and professor emeritus at Williams College

xcessive specialisation has created a culture of expertise that has distorted higher education and had a negative impact on faculty members, students and the broader society. While global transportation, communications and information technologies have created interconnection, academic disciplines and fields have, paradoxically, become more fragmented and isolated. Universities boast of their global expansion and vision, but they are mostly siloed institutions ill-adapted to a networked world. While academic specialisation has long been decried and ridiculed, insufficient attention has been paid to the influence that narrowly defined research has had on undergraduate teaching and the structure of colleges and universities. With online education taking off at traditional institutions, the hope is that learning breaks out of these cocoons. But as we have already discovered in the political arena, increased connectivity can create new divisions that deepen social discord. The rise of online learning may create more rifts in fields and curricula, or it may reorganise higher education for the better. Hyper-specialisation has both natural and external causes. As knowledge evolves and expands, it diversifies and in some cases leads to beneficial results, as with innovations and discoveries in medical research, engineering, information and communications technology, for example.

Subfields hurt learning But the downside is that as disciplines divide and subdivide, the curriculum expands without planning or oversight. In the department where I teach, there are 11 faculty members and eight subfields, some of which are further divided into as many as four sub-subfields. Until recently, the entire education of a graduate student from admission through comprehensive examinations to thesis was restricted to a single subfield or subfield within a subfield. This situation is not unique. An important contributor to academic fragmentation is the pressure on faculty members to produce and publish original research, a development that took off in the 1970s. The pressure is greatest at research universities but is felt at all universities and colleges. When I started teaching at Williams College in 1972, many of my senior colleagues who were superb teachers and genuine intellectuals had never published a single word. By the time I came up for tenure a few years later, I was expected to have published a book and several articles. What changed was the job market, which suddenly dried up in 1970. With

fewer jobs and increasing competition among candidates, colleges and universities needed new ways to evaluate faculty members. Research and publication became the gold standard for hiring and promotion and spawned specialised conferences, journals and book series intended to encourage communication among people with the same interests. More people started publishing because they had to, rather than because they had something to say. The system of peer review – in which articles and books are evaluated exclusively by other specialists in the field – has also worsened the overspecialisation problem. The same procedure is used for promotion and tenure. The tenure process at Columbia, for example, requires letters of assessment from 20 to 25 experts in the candidate’s field or subfield. It is standard in academia that someone from another subfield or discipline is regarded as unqualified to judge a person’s work. While nominal attention is paid to teaching ability and other qualities, the judgment of these specialised scholars is critical in making personnel decisions.

Echo chambers Life in the intellectual silos makes it more difficult for people working in different fields and disciplines to communicate with each other. There are always exceptions, but for the most part scholars remain in echo chambers talking to themselves. This system is self-perpetuating and resistant to change.

Just as a networked infrastructure transformed financial markets for better and worse, so the networking of higher education will transform how teachers teach and what students learn

A familiar complaint is that as the importance of research and publication has increased, the value of teaching has tended to decrease. At research universities, prestige is often measured by how little you teach. This creates an incentive for faculty members to design courses that are closely related to their research. Many fine teachers are devoted to the needs and interests of their students, but too many courses are based on what the professor wants to teach rather than what the student needs to learn.

Facing professional pressure, faculty members are not able or eager to guide and advise undergraduate students to craft a coherent education. When education is more and more about less and less, it becomes counterproductive. Universities have moved at a glacial pace but change is now occurring at warp speed. The way knowledge and institutions are structured is not set in stone but changes with new technologies of production and reproduction. Just as a networked infrastructure transformed financial markets for better and worse, so the networking of higher education will transform how teachers teach and what students learn. Disciplines will need to be reconfigured. Departments can be transformed or abolished. Research and teaching that encourage faculty members and students to approach problems from multiple perspectives must be encouraged and rewarded. The wall separating the university from the world has to be torn down to produce students with the knowledge and skills they need in the rest of the 21st century. In the final article in this series, I will consider the implications of these changes and describe what wired higher education will do to colleges and learning. (This is the second of three articles on how online education may revolutionise learning and college life. It follows yesterday’s article ‘How competition is killing higher education’) Bloomberg View

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May 29, 2012 business daily | 15

OPINION Business

My speech to the finance graduates

Leading reports from Asia’s best business newspapers

Robert J. Shiller

Professor of Economics and Finance at Yale University

wires Yomiuri Shimbun The government plans to promote so-called microcompact cars – single- or twin-seater cars smaller than light vehicles – by creating a new vehicle category for them. The government expects such cars to draw particular attention from elderly people, who could use them to easily visit places in their neighbourhoods and other nearby locations. It plans to establish an authorisation system for microcompact cars this fiscal year. Automakers such as Nissan Motor Co. and Daihatsu Motor Co. are currently developing microcompact cars.

Straits Times Italian automaker Fiat said on Friday that it and subsidiaries will immediately halt sales to Iran, following similar moves by other carmakers under pressure to cut ties to Teheran over its disputed nuclear programme. The international community has been toughening sanctions on the Islamic Republic – including on its main cash cow, oil – because of fears that it plans to build nuclear weapons. The auto industry has been under pressure to cut off business dealings with Iran.

Daily Inquirer San Miguel Corp.-led flag carrier Philippine Airlines (PAL) is considering flights to London’s Heathrow airport once the country’s carriers are finally allowed to fly back to European Union member states. There are currently no direct flights between any point in Europe and the Philippines. Earlier this year, Air France/KLM stopped its direct service between Manila and Amsterdam after complaining about high airline taxes that targeted foreign carriers with long-haul flights out of the country.

Bangkok Post Toshiba Carrier (Thailand) will build a new plant, at a cost of 2 billion baht (US$63.2 million), in Bangkadi Industrial Park, Pathum Thani province. Company managing direxctor Akio Ozaka said last week that his firm is now moving ahead with its planned second air conditioner production base in Thailand. The construction of the new factory is expected to be complete and production started in February 2013. This would make Thailand the Toshiba Group’s largest air conditioner production base anywhere.

t this time of year, at graduation ceremonies in America and elsewhere, those about to leave university often hear some final words of advice before receiving their diplomas. To those interested in pursuing careers in finance – or related careers in insurance, accounting, auditing, law, or corporate management – I submit the following address: Best of luck to you as you leave the academy for your chosen professions in finance. Over the course of your careers, Wall Street and its kindred institutions will need you. Your training in financial theory, economics, mathematics, and statistics will serve you well. But your lessons in history, philosophy, and literature will be just as important, because it is vital not only that you have the right tools, but also that you never lose sight of the purposes and overriding social goals of finance. Unless you have been studying at the bottom of the ocean, you know that the financial sector has come under severe criticism – much of it justified – for thrusting the world economy into its worst crisis since the Great Depression. And you need only check in with some of your classmates who have populated the Occupy movements around the world to sense the widespread resentment of financiers and the top 1 percent of income earners to whom they largely cater (and often belong). While some of this criticism may be over-stated or misplaced, it nonetheless underscores the need to reform financial institutions and practices. Finance has long been central to thriving market democracies, which is why its current problems need to be addressed. With your improved sense of our interconnectedness and diverse needs, you can do that. Indeed, it is the real professional challenge ahead of you, and you should embrace it as an opportunity.

Finance and society Young finance professionals need to familiarise themselves with the history of banking, and recognise that it is at its best when it serves ever-broadening spheres of society. Here, the savingsbank movement in the United Kingdom and Europe in the nineteenth century, and the microfinance movement pioneered by the Grameen Bank in Bangladesh in the twentieth century, comes to mind. Today, the best way forward is to update financial and communications technology to offer a full array of enlightened banking services to the lower middle class and the poor.

Over the course of your careers your training in financial theory, economics, mathematics, and statistics will serve you well. But your lessons in history, philosophy, and literature will be just as important

Graduates going into mortgage banking are faced with a different, but equally vital, challenge: to design new, more flexible loans that will better help homeowners to weather the kind of economic turbulence that has buried millions of people today in debt. Young investment bankers, for their part, have a great opportunity to devise more participatory forms of venture capital – embodied in the new crowd-funding Web sites – to spur the growth of innovative new small businesses. Meanwhile, opportunities will

abound for rookie insurance professionals to devise new ways to hedge risks that real people worry about, and that really matter – those involving their jobs, livelihoods, and home values. Beyond investment banks and brokerage houses, modern finance has a public and governmental dimension, which clearly needs reinventing in the wake of the recent financial crisis. Setting the rules of the game for a robust, socially useful financial sector has never been more important. Recent graduates are needed in legislative and administrative agencies to analyse the legal infrastructure of finance, and regulate it so that it produces the greatest results for society. A new generation of political leaders needs to understand the importance of financial literacy and find ways to supply citizens with the legal and financial advice that they need. Meanwhile, economic policymakers face the great challenge of designing new financial institutions, such as pension systems and public entitlements based on the solid grounding of intergenerational risk-sharing.

Democratisation of finance Those of you deciding to pursue careers as economists and finance scholars need to develop a better understanding of asset bubbles – and better ways to communicate this understanding to the finance profession and to the public. As much as Wall Street had a hand in the current crisis, it began as a broadly held be-

lief that housing prices could not fall – a belief that fuelled a full-blown social contagion. Learning how to spot such bubbles and deal with them before they infect entire economies will be a major challenge for the next generation of finance scholars. Equipped with sophisticated financial ideas ranging from the capital asset pricing model to intricate options-pricing formulas, you are certainly and justifiably interested in building materially rewarding careers. There is no shame in this, and your financial success will reflect to a large degree your effectiveness in producing strong results for the firms that employ you. But, however imperceptibly, the rewards for success on Wall Street, and in finance more generally, are changing, just as the definition of finance must change if is to reclaim its stature in society and the trust of citizens and leaders. Finance, at its best, does not merely manage risk, but also acts as the steward of society’s assets and an advocate of its deepest goals. Beyond compensation, the next generation of finance professionals will be paid its truest rewards in the satisfaction that comes with the gains made in democratising finance – extending its benefits into corners of society where they are most needed. This is a new challenge for a new generation, and will require all of the imagination and skill that you can bring to bear. Good luck in reinventing finance. The world needs you to succeed. © Project Syndicate

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business daily May 29, 2012

CLOSING Beijing should open services

Japan must drop nuclear: ex-PM

China should further open its fledgling services sector to foreign investment to help sustain its economic rise, World Trade Organisation (WTO) director general Pascal Lamy said yesterday. “The WTO needs China to take the lead in pursuing greater services opening,” Mr Lamy said at a services trade fair in Beijing. China’s services sector makes up just 43 percent of gross domestic product, compared with more than 70 percent in Western economies. China wants to increase the share to 47 by 2015, the state-run Xinhua news agency said.

Most of the blame for the Fukushima disaster lays with the state for its unquestioning support for nuclear power, the prime minister at the time of last year’s catastrophe said yesterday. At a parliamentary inquiry, Naoto Kan said plant operator and the Federation of Electric Power Companies of Japan controlled “the nation’s nuclear administration over the past 40 years”. “They ousted experts, politicians and bureaucrats critical of nuclear energy from the mainstream.” Mr Kan said Japan should abandon nuclear technology.

Slowing inflation to boost China rating Moody’s confirmed the nation’s A3 sovereign rating last month

hina’s moderating inflation rate bodes well for its sovereign credit rating in spite of uncertainty about the impact of deepening economic stresses emanating from Europe, Moody’s Investors Service said yesterday. Easing price pressures were probably the most significant development for the Chinese economy since Moody’s issued its last formal credit analysis of the country’s finances on April 26, said Thomas Byrne, Singapore-based senior vice president and regional credit officer in the firm’s sovereign risk group. “Inflation has come down. That’s a definite positive as it gives the monetary authorities a bit more scope to stimulate the economy,” Mr Byrne told reporters in Beijing, where Moody’s is holding a client conference today. “That’s probably the biggest change to the positive.” Moody’s last month confirmed China’s A3 sovereign rating and said the outlook for it remained positive, supported by favourable mediumterm growth prospects and strong government debt dynamics, adding that trade and financial exposures to problems in the euro zone were moderate to low. Mr Byrne said China’s ratio of debt

to gross domestic product (GDP), including local government debt that is the direct responsibility of the central government, is about 33 percent, with maybe another 8 percent of GDP in contingent liabilities. That is low by global standards, he added. He said strong growth dynamics with relatively low inflation gave China a very strong credit profile from a pure economics point of view and was largely the reason why Moody’s maintained a positive outlook on its rating.

Dented exports But there were risks to the world’s second-biggest economy that were not yet fully understood, Mr Byrne said. “On the other side of the balance sheet, the negative development has been the drop in demand from the European Union. This has had adverse consequences on Chinese exports,” he said. “That’s the source of our new concern – what are the long term implications of the continuing economic stress in Europe on China?” China aims for annual growth of 10 percent in exports and imports this year but the first four months of 2012 saw exports grow 6.9 percent on the previous year, while imports

Strong growth dynamics with relatively low inflation gives China a very strong credit profile, says Thomas Byrne from Moody’s

grew 5.1 percent. A flurry of other economic data for April also missed expectations and prompted the central bank to lower banks’ required reserve ratio on May 12 by 50 basis points to 20 percent, the third move since November 2011. Inflation dropped to 3.4 percent in April, slightly above economists’

expectations but down from the 3.6 percent pace logged in March, giving Beijing more scope to loosen policy. China has since fast-tracked infrastructure investment and restated its intention to boost private participation in state-controlled sectors, including electricity, oil and natural gas. Reuters

Spain bank cleanup higher than estimate Investors have made Spain’s debt the riskiest it has been

he premium for Spain’s 10-year bond over its German equivalent rose to 5.05 percentage points, the highest since the euro was formed as fears grow over the health of the country’s banking sector. While most European shares

gained, Spanish and Greek stocks fell. The Spanish prime minister admitted yesterday that the current situation in Spain is “extremely difficult”. Spain’s two-week effort to overhaul its lenders and estimate for what it will cost

Spain may recapitalise Bankia with sovereign paper, govt sources said

taxpayers may already look out of date. Economy minister Luis de Guindos said May 11 that a law tightening provisioning rules, his second in three months, would require public funds of less than 15 billion euros

(150.8 billion patacas). BFA-Bankia, the bank nationalised the same week, said on May 25 it was taking 8.5 billion euros of provisions on top of those demanded by the two decrees, as it sought a 19 billion-euro state bailout. “They’ve done two reforms already and there will probably be more; I don’t know how many more,” Javier Diaz-Gimenez, a professor at the IESE business school in Madrid, said in a telephone interview. “They have zero credibility.” Spain is seeking to clean up banks and help its cash-strapped regions just as its own access to capital markets has narrowed and depends increasingly on domestic lenders. The nation’s bank-rescue fund has 5 billion euros in cash, Mr Guindos said this month, leaving its ability to bail out lenders dependent on Spain’s

access to markets. Spain may recapitalise Bankia with sovereign paper in return for shares in the bank and could use this method to prop up other troubled lenders, government sources told Reuters. The recapitalisation needs of Spain’s banks could amount to as much as 60 billion euros, Daragh Quinn, an analyst at Nomura International said in a report yesterday. But prime minister Rajoy again ruled out seeking outside aid to revive a banking sector laid low by a property boom that has long since bust. “There will not be any [European] rescue for the Spanish banking system,” Mr Rajoy said in a press conference yesterday, before backing calls for the eurozone bailout fund, which will be in place from July, to be able to lend to banks direct. Reuters/Bloomberg