Year I Number 157 Wednesday November 7, 2012 MOP 6.00 Editor-in-chief: Tiago Azevedo Deputy editor-in-chief: José I. Duarte
Public housing delay needs explanation: critics F
ive years ago the former chief executive promised to build 19,000 public homes by the end of 2012 but on Monday the Housing Bureau director Tam Kuong Man admitted that only 11,300 flats would be ready on time and that some units will only be completed by mid-2014. For critics that had long questioned whether the administration would be able to pull off the ambitious plan, the admission comes as no surprise but it is still expected to ‘leave a dent’ in Chief Executive
Fernando Chui Sai On’s credibility. The burden is now on the government to explain what went wrong either with the planning or during the construction works and hold people accountable, a legislator and a political commentator told Business Daily. In addition, authorities must clearly state when the remaining flats will finally be ready and provide compensation or rental subsidy for the families still on the waiting list for public housing, they added.
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HANG SENG INDEX 22025
21975
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Continuing education gets fail mark: legislator
Budget law revision: behind closed doors
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Insurance staff ‘poaching’ case Page 6
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HSI - Movers Name
Border ‘relaxation’ likely within decade: casino boss Border crossing arrangements between Macau and neighbouring Zhuhai and the rest of the mainland province of Guangdong are likely to be relaxed further within the next decade said Ted Chan, chief operating officer of Macau casino operator Melco Crown Entertainment Ltd yesterday. Mr Chan was speaking on a panel of leading gaming industry executives during the 7th International Teochew Youth Convention at The Venetian Macao.
%Day
TINGYI HLDG CO
2.22
WANT WANT CHINA
1.96
POWER ASSETS HOL
1.35
CNOOC LTD
0.98
SWIRE PACIFIC-A
0.86
BELLE INTERNATIO
-1.76
CHINA RES ENTERP
-2.04
HONG KONG EXCHNG
-2.41
COSCO PAC LTD
-2.99
CHINA MERCHANT
-5.21
Source: Bloomberg
In another conference – the three-day Asia Pacific Conference on Gambling and Commercial Gaming Research Program in Taipa – delegates heard that loan sharking, illegal confinement of indebted gamblers and theft of casino chips have been the most prevalent gambling-related crimes in recent years. They’re likely to remain so, says Sonny Lo Shiu Hing, co-director of Hong Kong’s Centre for Greater China Studies.
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business daily November 7, 2012
macau
Continuing education scheme ‘total failure’ Continuing education subsidies should be scrapped, critics say after a damning audit report Vítor Quintã
vitorquinta@macaubusinessdaily.com
Funding for the continuing education development programme could reach 2 billion patacas
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n audit report has deemed the continuing education development programme too flawed to rescue, but critics expect the government to stick to its guns and merely tweak the scheme to focus on priority areas. The Commission of Audit said on Monday that the programme, public funding for which could reach 2 billion patacas (US$250 million), had serious flaws that had allowed hundreds of courses and exams to be mistakenly approved. The commission’s findings mirror Legislative Assembly member José Pereira Coutinho’s allegations last year that institutions and associations were offering “phoney” courses and
forcibly enrolling elderly people so they could get subsidies. Mr Coutinho said he was not surprised by the commission’s report and said the programme should be cancelled immediately. “We are talking about public money. Even after any kind of change, there would still be abuse and cheating,” Mr Coutinho told Business Daily. He said, for instance, that the report had mentioned a student that had apparently signed up for six courses in three different institutions at which he was also a professor. Mr Coutinho’s criticism was echoed by the head of the University of Macau’s Educational Research
Scheme is ‘strictly regulated’: govt Public money was not “squandered” over the continuing education scheme and all subsidised courses and exams were approved “in strict abidance by administrative regulations,” Kuok Sio Lai said in a press conference. The deputy director of the Education and Youth Affairs Bureau yesterday brushed down a Commission of Audit report that said hundreds of courses were wrongfully approved. Since the three-year scheme was launched in 2011, the bureau has approved about 30,000 courses and exams with 600,000 openings, which could mean a 240 million patacas (US$30 million) investment, secretary for Social Affairs and Culture, Cheong U, said. Ao Kam Meng, head of the education bureau’s continuing education team, admitted to “administrative flaws” in approving courses and promised to rectified the lack of records.
The audit commission also “misunderstood” the bureau’s approval procedure, he said. “For example, when [course] fees worth more than 100 patacas, the staff will rate it as ‘0’ and pass the course for superiors to further analyse before giving the course a final rating,” explained Mr Ao. “But the audit commission thought the ‘0’ courses are the ones that should not be approved,” he added. The bureau has frequently inspected and graded the subsidised institutions and associations and any violation of the regulations will affect their chances of being subsidised the next time around, the official noted. But the grading system is mainly for “internal use”, and is not disclosed to public for fear of “labelling” the subsidised institutions, the director said. S.L.
Centre, Teresa Vong Sou Kuan. The scheme was “a total failure”, Ms Vong said. “But the government will not accept this and will continue to run this programme. After all, there is only one and a half years left before it ends,” she said. Mr Coutinho also believes the government will keep the programme despite the criticism. “It’s all about losing face,” he said.
courses and exams accorded with “Macau’s future developmental shift and the needs of the people and of society,” she said. Mr Coutinho remarked: “This is no isolated incident. The same flaws can be found in all administration bodies that grant subsidies”.
Quality concerns The government has said it will improve the programme (see box). Ms Vong called for the government “to keep only parts of it, instead of promoting an ‘anything goes’ vision”. “When this programme was launched last year, I said it did not have a very clear objective,” she said. “There are no measurable objectives to assess whether or not it will be able to enhance the quality of our citizens,” she said. The Education and Youth Affairs Bureau chose nine criteria for subsidising courses and exams, but only two were officially written down, the audit report says. For the remaining criteria, guidelines were only “shared verbally”, making it difficult “to ensure a homogenous evaluation”, it says. Ms Vong remarked: “That’s not scientific at all. It’s too flexible, and in the end there is no quality assurance for the courses being subsidised.” She said the education bureau had created a special team for the programme but “no one knows how many people were appointed for this project or what is the cost of this set-up”. The programme needed “some kind of orientation”, so subsidised
This is no isolated incident. The same flaws can be found in all administration bodies that grant subsidies José Pereira Coutinho, legislator
There are no measurable objectives to assess whether or not [the programme] will be able to enhance the quality of our citizens Teresa Vong Sou Kuan, director of the University of Macau’s Educational Research Centre
November 7, 2012 business daily | 3
MACAU Sale of CTM stake ‘interesting’ for PT The possible sale of Portugal Telecom SGPS SA’s 28 percent stake in CTM, Companhia de Telecomunicações de Macau SARL would be a “very interesting” deal for the Portuguese telecommunications services provider, CaixaBI analysts wrote. “It might be an opportunity for Portugal Telecom to ... get an important help to its de-leveraging efforts,” says a note to investors released on Monday. Citic Telecom International Holdings Ltd could pay as much as US$410 million (3.3 billion patacas) for Portugal Telecom’s stake, according to media reports.
‘No surprise’ at housing holdup Critics say the government should explain why its public housing programme is behind schedule and, if necessary, compensate the households affected Tony Lai
tony.lai@macaubusinessdaily.com
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he government’s failure to keep a commitment to complete 19,000 homes in public housing this year comes as no surprise to critics, and some say the government must explain the holdup and come up with remedies. “This is no surprise to anybody. When the government first announced this scheme, many people already thought they could not do it,” Legislative Assembly member Kwan Tsui Hang told Business Daily. The promise to build 19,000 homes was first made by in 2007 by the chief executive at the time, Edmund Ho Hau Wah. Chief Executive Fernando Chui Sai On affirmed the completion date of 2012 when he took office in 2009. Housing Bureau director Tam Kuong Man admitted on Monday that only 11,300 of the 19,000 flats would be ready this year, and estimated that the rest would be complete only by the middle of 2014. “Secretary Lau Si Io had guaranteed several times at the assembly that the government could do this, and everybody was waiting for the result,” said Larry So Man Yum, a Macau Polytechnic Institute professor and political commentator. Mr Lau is the secretary for transport and public works
Ilha Verde’s Cheng I public housing complex will not be complete until the middle of 2014 (Photo: Manuel Cardoso)
“The administration must clearly explain the reasons for this delay and somebody from the government or the developers must be held accountable,” Mr So told Business Daily. He said the government should also state clearly when the 7,700 remaining flats would be completed and whether households on the waiting list for public housing could get compensation or rent subsidies. Applicants for public housing for rent get a monthly rent subsidy of between 1,350 patacas
(US$170) and 2,050 patacas from the government, but there is no such subsidy for the more than 4,000 households waiting for subsidised housing.
Reassurance pill Ms Kwan said the government should give a schedule for the completion of the flats so applicants knew when they might be able to move in. “This has cer tainly left a dent in the credibility of the government, but
we have no alternative but to accept this – as long as the 19,000 homes can finally be completed,” she said. Jason Chao Teng Hei, the head of the New Macau Association, which has created a website to track the progress of construction of the homes, said the government had tried to “play tricks” in counting the flats. Mr Chao said the government was pretending it had kept its promise by adding together the number of completed flats and homes already allocated but not yet completed. The 650 subsidised flats in Ilha Verde’s Cheng I complex – part of the 19,000-home programme – will be allocated this month, though the units will completed only by the middle of 2014, according to the Housing Bureau. Ms Kwan said sales of uncompleted public housing were a “reassurance pill for applicants”. Ms Kwan and Mr Chao said the government should review its policy and reopen applications for public housing “very soon” to get a better picture of demand. Sales of over 2,000 subsidised one-bedroom flats have been put on hold because of low demand. Mr So said the government should be more open about the progress of public housing projects.
Telecom business weights on Hutchison
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he telecommunications business of Hutchison Whampoa International Ltd, which includes the Macau operations, is a “cash drain” on the conglomerate, Fitch Ratings warned last Monday. The agency gave the company’s proposed US dollar-denominated notes a rating of ‘A- (EXP)’, at the end of the third-best category, which signals that the economic situation could impact repayment. Fitch is still waiting to receive final documents from Hutchison, controlled by tycoon Li Ka Shing, the ninth richest person in the world according to Forbes magazine, to confirm the information already received. A major reason for the rating of Hutchison was the “cash drain from its 3G business” which only began posting operational profits in 2010, Fitch wrote. Still, the ratings agency gave the group a ‘stable’ outlook thanks to the “gradual improvement” of its telecommunications business,
which involves mobile services provider Hutchison Telephone (Macau) Co Ltd. But Fitch warned that “a sharp increase in cash drain from the 3G segment” could trigger a negative rating action in the future. Hutchison’s mobile telecommunications services in Hong Kong and Macau, provided under the “3” brand, announced a 15 percent profit increase to HK$568 million (US$73.2 million) for the first half of this year. The telecommunications business accounted for just 5.6 percent of the conglomerate profits. In Macau, Hutchison is the second largest service provider behind CTM, Companhia de Telecomunicações de Macau SARL. Last month the company announced service discounts to compensate users affected by a seven-hour network disruption on October 17. V.Q.
Mobile services is still no cash-cow for Hutchison Whampoa conglomerate
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business daily November 7, 2012
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HOSPITALITY Mainland ferries The main business of ferries is, well, to ferry people between Hong Kong and Macau. The number of arrivals rose considerably from 2009 to 2010, then decreased a bit. Most of the decrease is due to a drop in the number of sailings from Hong Kong – a drop of more than 1,000 in the past year, or 2.8 fewer sailings per day, on average. Onethird of the decrease is due to a surprising drop in the number of sailings from the mainland. The tide of passenger shipping is rising at the Inner Harbour terminal, where the number of ferry arrivals has increased by about 8 percent. But it is receding at the Outer Harbour terminal (OH in the chart) and the Taipa terminal. Ferry arrivals in the Inner Harbour terminal are not represented in the chart, as all of the sailings are now from Wanzai, just across the harbour, and so are what we might call local services. Only for a short period in 2009 were there services to the Inner Harbour from places other than Wanzai.
The main source of passenger shipping is Hong Kong. Ferries from more distant places in the mainland make up only a small proportion of all arrivals – and a negligible number of the arrivals at the Taipa terminal. Nonetheless, the proportion of ferries coming from the mainland increased slightly in the period under review, and the figures for the first nine months of this year suggest that it may increase a little more. Overall, this year will probably be very like last year. The figures suggest a weaker-than-expected correlation between the number of visitors and the number of ferries arriving. J.I.D.
SHFL seeks injunction against Paradise Entertainment Part of three-year battle over right to sell live dealer electronic baccarat games in Macau
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asino equipment maker Shuffle Master Asia Ltd is seeking a Macau court injunction to prevent rival firm Paradise Entertainment Ltd and its subsidiaries from claiming monopoly rights over multigame electronic table game products here. The news was given in a filing to the Hong Kong Stock Exchange by Paradise Entertainment. The latest legal move is part of a dispute dating back to 2009. There’s a lot of money potentially at stake in the tussle between the two sides. They make rival electronic table game products that offer electronic betting and bet settlement combined with a live dealer. The most popular format with Macau’s gamblers is electronic baccarat. Shuffle Master’s product is called Rapid Baccarat, and Paradise’s product – sold under the branding of its subsidiary LT Game Ltd, is named Live Baccarat The demand for live dealer electronic baccarat games is currently very strong among the Macau casino operators. The 5,500-table cap on live dealer tables until next year is putting pressure on operators to push up minimum bets on their live tables, and to move lower-spending players onto electronic baccarat with smaller minimum bets. The new injunction is being sought by Shuffle Master – whose United States-based parent Shuffle Master Inc. recently changed its name to SHFL entertainment Inc. – from a section of Macau’s Court of First Instance. It aims to restrain the respondents – including Paradise, its subsidiary LT Game and another Paradise unit Natural Noble Ltd – the holder of a Macau
Covered up – SHFL entertainment Inc.’s stand at G2E Asia 2012
patent for certain gaming equipment – from “making any representation or expression on any monopoly right” over multi game electronic table games in Macau, and from “unfairly competing with Shuffle Master”.
Seeking remedy The injunction seeks a permanent remedy to a temporary court order granted to Shuffle Master during the Global Gaming Expo Asia 2012 casino equipment trade show held in Macau in May. That temporary order literally lifted a blanket from some of SHFL’s product. On the first day of G2E Asia 2012, officers from Macau Customs arrived in the exhibition hall at CotaiExpo in The Venetian Macao in response to a complaint of patent
infringement lodged by Jay Chun, the chairman of Paradise Entertainment. The officers ordered SHFL to cover its Rapid Baccarat units. SHFL won an interim court injunction on the second day of the show allowing it again to display the product. The row first came to public attention at the Global Gaming Expo Asia 2009. According to a Shuffle Master regulatory filing, Macau Customs officers detained several of its executives and some of the firm’s equipment – a Rapid Baccarat electronic table game unit – was seized after a complaint from Paradise Entertainment. At G2E Asia 2012, the show organisers publicly appealed to LT Game not to use the trade event as ‘leverage’ in its legal dispute with SHFL. M.G.
Govt seen as weak on gambling crime Gambling-related crime does not receive enough official attention, a crime researcher says Stephanie Lai
sw.lai@macaubusinessdaily.com
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oan sharking, illegal confinement of indebted gamblers and the theft of casino chips were the most prevalent gambling-related crimes in recent years and will remain so, says Sonny Lo Shiu Hing, codirector of Hong Kong’s Centre for Greater China Studies.
Mr Lo, who does research into cross-border crime, said so during a session yesterday of the three-day Asia-Pacific Conference on Gambling and Commercial Gaming Research Programme, which focused on how casino development here had created patterns of crime. Citing reports in the news media
and official data, Mr Lo said loan sharking remained the most serious gambling-related crime. He said it often resulted in illegal confinement of indebted gamblers, especially mainland Chinese or Hongkongers. “The most common cases are gamblers chased by loan sharks
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November 7, 2012 business daily | 5
MACAU
Border ‘relaxation’ likely over next decade: casino boss MPEL’s Ted Chan tells youth convention Macau will be getting lot more visitors
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order crossing arrangements between Macau and neighbouring Zhuhai and the rest of the mainland province of Guangdong are likely to be relaxed further within the next decade said Ted Chan, chief operating officer of Macau casino operator Melco Crown Entertainment Ltd yesterday. Mr Chan was speaking on a panel of leading gaming industry executives during the 7th International Teochew Youth Convention. The Teochew – also known as Chaozhou – are Han Chinese native to the Chaoshan region of eastern Guangdong province that speak the Teochew dialect. Today many Teochew people live outside China in Southeast Asia especially in Singapore, Thailand, Cambodia, Vietnam and Malaysia. Referring to the recent announcement from the mainland authorities that those not registered as residents of several Guangdong cities including Shenzhen would no longer need to return to their home city in China in order to apply for a permit to visit Hong Kong, Mr Chan told the conference: “In the next five to ten years, I truly believe the boundary between Macau and Zhuhai-Guangdong will be relaxed. Just like today in Hong Kong there has been some relaxation in the travel arrangements between the mainland and Hong Kong. We will experience the same thing. So you [Macau] will be receiving a lot more people. And according to the plan in China, we are entering into an age of consumerism. So there is no doubt we will have a lot more customers into Macau, enjoying
and told to pay in Macau. Some are kidnapped and confined by junket operators or triad members here when they fail to pay off debts,” Mr Lo told Business Daily on the sidelines of yesterday’s session. “These offenses are deemed as petty crimes and not given enough attention,” he said. He said that despite some highly publicised convictions in mainland China, few mainland officials that laundered money or gambled here had been caught. Mr Lo said official data showed only a few cases of money laundering had been detected here between 2009 and 2011. “Going by official figures, money laundering cases seem to be falling, though the actual count may be hidden,” he said.
Labour blueprint Mr Lo said Macau’s status as a gaming centre would not be affected by the change of leadership in China expected during the National People’s Congress meeting, as it would not necessarily mean stricter controls on mainland gamblers. On Monday, Steve Vickers, a former chief of Hong Kong’s Criminal Intelligence Bureau, told the Associated Press that anticorruption efforts by the new Chinese leadership could mean tighter control of capital outflows from the mainland into Macau. The head of the Macau
China’s leadership changes will have little effect on casinos here, says Sonny Lo
not only gaming but also consumer activities.”
Challenging times Paul Tse, chairman of the American Chamber of Commerce in Macau and chief advisor of Macao Chaoshan Youth Association, said the Macau government had done a generally good job in difficult circumstances. “The growth rate that Macau has experienced in the last six or seven years is enough to daunt any community, any economy, any government or administration. But this young Macau administration has been totally supportive [of gaming]. There have been cases where obviously mistakes have been made and cases where difficult decisions have been put to one side, but by and large the strong executive-led government has enabled the gaming industry to proceed at a
Sonny Lo
government’s Policy Review Office, Lao Pun Lap, said last week that 150,000 to 200,000 non-resident workers would be needed here until 2036 to sustain economic development. But Mr Lo said protectionist sentiments voiced by traditional associations and the pan-democrats would still hold considerable sway over policy on importing labour. “Interestingly, back in 2002, the concession contracts between the government and the gambling corporations did not mention much about labour policy,” Mr Lo said. “And up until now, we still cannot see a concrete blueprint on human resource planning,” he said. “The government, gambling corporations and legislators should come up with a concrete blueprint on how the human resources policy ought to be shaped,” he said.
pace that is unprecedented,” he told the conference. Ian Coughlan, president of Wynn Macau Ltd, said his company would be doing its best to help realise the government’s aspiration to boost non-gaming facilities on Cotai “Looking at the Wynn Cotai plan as it currently stands, we will have double the number of rooms we have on the peninsula, double the retail, double the food and beverage, but the actual table and slot quotient will be very similar to what we have
currently,” he told the conference. The panel, moderated by Henry Brockman of the British Business Association of Macao, also included Edward Tracy, president and chief executive officer of Sands China Ltd, Grant Bowie, CEO and executive director of MGM China Holdings Ltd, Robert McBain, chief financial officer of SJM Holdings Ltd and Roland To, director, strategic planning for Galaxy Entertainment Group Ltd. M.G.
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business daily November 7, 2012
macau
Budget law revision begins
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The changing face of imports Two trends are shaping our trade today: the decline in exports of textiles and the growth in imports of consumer goods. Imports in general have risen by about 70 percent since 2009, but imports of consumer goods have almost doubled. Rough estimates based on the data for the first nine months of this year confirm these upward trends.
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he government has started amending the budget framework law, something that many legislators have asked for, Secretary for Economy and Finance Francis Tam Pak Yuen confirmed. The official met with the Legislative Assembly’s second standing committee yesterday to
These trends mean consumer goods accounted for just under 62 percent of all imports last year, having accounted for 54 percent in 2009. The proportion of consumer goods this year is expected to be similar to what it was last year. The kinds of consumer goods we import are changing. The value of imports of food and beverages has increased by 70 percent to about 8.5 million patacas. But food and beverages now account for only 19.6 percent of consumer goods imported, having accounted for 25.5 percent before. Clothes and shoes made up a mainly stable proportion of the consumer goods imported in the period under review, oscillating between 10 percent and 10.5 percent. Other kinds of consumer items accounted for steadily increasing percentages of the consumer goods imported. They are likely to account for about 70 percent this year. These trends suggest that society is becoming more affluent. Since the city produces little food worth mentioning, the import data are a strong indicator of what we are eating. And if food makes up a decreasing proportion of the goods people consume, it typically indicates rising incomes. J.I.D.
18.1 %
Growth in imports (y-o-y, Jan-Sep)
discuss last year’s public budget execution. “Mr Tam said they have initiated the budget framework law revision mechanism and [he] hopes they can deliver good news to us as soon as possible,” committee chairman Chan Chak Mo told journalists. But no details of the revision were
discussed during the closed-door meeting, Mr Chan said, adding it was “a complicated task”. Legislators have slammed the law, whose main provisions have remained unchanged since 1983, for lagging behind the city’s development. Ho Iat Seng, assembly vicepresident, told media last month that an amendment was necessary to give the body better overseeing powers on the government’s budget. Mr Chan said legal advisors from the assembly would likely participate in the revision discussions to reflect the body’s views. The government also pledged to improve on the low return-oninvestment from the city’s reserves, the legislator said, and the new fiscal reserve established in February allowed for more investment flexibility. Mr Chan also quoted Mr Tam as saying they would give a complete picture of the budget for projects lasting for several years, such as the new Taipa ferry terminal. With only a few issues left unexplained, the budget execution report would be up for final reading early next month, the legislator predicted. T.L.
Education loans soar last quarter Faster loan growth helped banks secure higher profits in third quarter Vítor Quintã
vitorquinta@macaubusinessdaily.com
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ducation loans have more than doubled in the July-September period, helping banks recover from a heavy tumble in July to finish the third quarter with a year-on-year growth in profits. According to data released by the Monetary Authority of Macau on Monday, education loans rose by a staggering 150.7 percent from the second quarter to a record high 356.9 million patacas. The rise was linked to the record high number of students enrolled in tertiary education institutions this academic year: more than 25,000 according to the Education and Youth Affairs Bureau. In addition, loans to restaurants and hotels rose by 9.1 percent and car credit increased by 10.3 percent from the previous quarter. On the contrary, loans for information technology companies and manufacturing industries dropped by 20.8 percent and 13.7 percent respectively during the third quarter.
Macau banks’ operating results increased by 15.7 percent last quarter (Photo: Manuel Cardoso)
In the end, total credit rose by just 0.3 percent in September to 404.7 billion patacas (US$50.7 billion). In the last year loans to nonresidents grew much faster (up by 44.4 percent) than domestic credit (up by 16 percent). But the increase in September was due to a 2 percent rise in loans to residents to 191.4 billion patacas, because credit to outsiders fell by 1.1 percent to 213.3 billion patacas.
With slower loan growth, banks’ operating results reached 429.7 million patacas, up by 15.7 percent from the same month last year. The sector’s profit is a marked drop from the 32.7 percent year-on-year increase registered in August. Still, after taking a heavy tumble – a 30 percent year-on-year drop – in July, the Macau banking sector saw their profits rise by 4 percent during the third quarter to 1.5 billion patacas.
November 7, 2012 business daily | 7
MACAU Airport gets air traffic control training base Macau airport operator ADA – Administration of Airports, Ltd announced on Monday the opening of a training base for air traffic controllers in Shenzhen. The base includes a tower simulator with a 360-degree operational panorama of the Macau International Airport and its air traffic control zone. The base could help “reduce operational risks and increase the overall airport safety and work efficiency,” ADA said. The training base is the result of a cooperation deal signed between ADA and the Shenzhen Air Traffic Management Station last month.
Insurers tussle in court over agent headhunting Judges rule that an insurance company did not poach a rival’s agents Vítor Quintã
vitorquinta@macaubusinessdaily.com
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court case contested by two international insurance groups has shed light on one aspect of the city’s hyper-competitive insurance business, with the courts eventually rejecting one insurer’s allegations that another poached its agents and took data on its policies. The Macau branch of American International Assurance Co (Bermuda) Ltd (AIA) sued the branch here of AXA China Region Insurance Company (Bermuda), Ltd, alleging unfair competition. AIA, the city’s biggest life insurance company by market share, accused two of its former agents and AXA of trying to persuade other AIA agents to switch companies and bring AIA policyholders with them. The Court of First Instance
rejected AIA’s case. AIA appealed, asking the appeal judges to make AXA stop what AIA called AXA’s ”unfair competition”. AIA also accused two of its former agents of downloading information on hundreds of life insurance policies the day before they left the company at the end of 2008. In response, AXA accused AIA of “procedural bad faith”. In the end both parties left the Court of Second Instance empty-handed. The judges upheld the lower court’s decision. The Court of Second Instance’s judgement was pronounced on October 18 but published only yesterday. In its judgement the court said AIA had failed to prove that AXA had in any way “encouraged”
AIA agents to leave or to breach their contracts. The judgement says the main reason they left was “difficult relations” between AIA staff and the company’s regional director, which had previously made 60 of the company’s 1,000 agents leave. AIA’s allegation that former agents downloaded insurance policy information “was only based on suspicion, on a mere presumption, not supported by any evidence”, the judgement says. The judgement says every worker is entitled to search for the best available job. “Otherwise it would be difficult to accept the normal labour-hopping between companies, which in fact, is so common in Macau” it says.
AIA is Macau’s biggest life insurance company by market share
And the winners are… Two charities are considerably better off after the Macau Business Charity Golf Gala Dinner Alex Lee
alexlee@macaubusinessdaily.com
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utting on another great show and exemplifying corporate social responsibility at its best, Macau’s business community stepped onto the golf courses last month to swing their clubs for charity once again. The sixth annual Macau Business Charity Golf Tournament was a success, with many emotional and joyful moments for players,
partners and supporters. After two rounds, one at the Macau Golf and Country Club on October 26, and the other at Caesars Golf Macau on October 28, the Silver Heritage team, made up of Mike Bolsover, Tim Shepherd and Rodney Hall, were the net score tournament winners. At the Macau Business Charity Golf Golf Gala Dinner at the Westin
Tim Shepherd and Mike Bolsover (centre) chose a youth foundation in Nepal
Resort last Friday, the team forwarded their winnings of 100,000 patacas (US$12,527) to Olga’s Promise, an affiliate of the Nepal Youth Foundation. Ryan Beauregard, Dave Williamson and Dennis Hudson, who made up team Wynn I, won the gross score title and gave their tournament winnings of 100,000 patacas to the Cradle of Hope, a Macau charity that
Team Wynn I gave to Cradle of Hope
focuses on the wellbeing of children. BNU Macau, CTM – Companhia de Telecomunicações de Macau SARL, the Portuguese-language news agency Lusa and the Portugueselanguage newspaper Tribuna de Macau made a special donation of 47,000 patacas to the Association of Rehabilitation of Drug Abusers of Macau – ARTM.
José Costa Santos (Lusa) and Nuno Ribeiro (BNU) presenting the cheque to Luís Carvalhais (ARTM)
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business daily November 7, 2012
GREATER CHINA
Economy seen gaining steam Export growth expected to ease in October
C
hina’s factory output and investment may have gained steam in October as government pro-growth policy steps gain traction, a Reuters poll showed, limiting the chances of aggressive stimulus even as inflation stays benign. The m edian forec ast b y 2 6 economists showed China’s factory output in October probably grew 9.4 percent from a year earlier, accelerating from the annual pace of 9.2 percent in September and a threeyear low of 8.9 percent in August. A pair of manufacturing sector surveys on November 1 showed signs the economy began to perk up in October. Annual growth in fixed-asset investment may have also quickened slightly to 20.6 percent in the first 10 months from 20.5 percent in the January-September period. The government only publishes cumulative data on investment. Annual growth in retail sales was expected to have eased a tad to 14 percent in October from September’s 14.2 percent, according to the poll. Consumption has been holding up steady in recent months thanks to rising household incomes. The mainland’s annual economic growth slowed to 7.4 percent in the third quarter from 7.6 percent in the second – the seventh straight quarter of slower expansion, but signs of a modest rebound have emerged since September.
China annual GDP growth is expected to accelerate to 7.7 percent in the fourth quarter, according to a Reuters poll of analysts who expected the central bank to hold interest rates steady until 2013 but may still cut RRR once. “Following a pick-up of growth momentum in September, October data will confirm that GDP growth may be on track to a modest recovery in Q4,” said Tao Wang, China economist at UBS in Hong Kong. “With economic recovery gradually taking shape, the need for more policy stimulus has diminished. We expect no major policy moves around the upcoming transition of senior leadership, with continued implementation of existing growth-supportive measures,” she said in a note to clients. Beijing has been following a programme of pro-growth finetuning of economic policies for a year and analysts broadly expect that to remain in place when a new leadership line-up of the ruling Communist Party is unveiled at a Congress this month. China’s export growth may have also moderated in October after September’s bounce, while imports likely perked up on recovering domestic demand, according to the poll. Analysts said milder export growth reflected still anaemic external demand, though the upcoming
China’s factory output in October expected to grow 9.4 percent
Christmas season in western countries may give a temporary boost to new foreign orders in the final quarter. The country’s inflation looks tame, with consumer prices in
October seen rising 1.9 percent from a year go – the same as in September and slightly higher than a 30-month low in July. Reuters
Nissan cuts full-year China Eastern declines profit forecast on downgrade Islands row dents sales in its biggest volume market
Chinese stocks drop most in week
N
hinese stocks fell, dragging down the benchmark index by the most in a week, before the start of the country’s leadership congress and U.S. presidential elections. China Eastern Airlines Corp., the nation’s second-biggest domestic carrier, slid 3.1 percent after Credit Suisse Group AG downgraded the stock to underperform. Liquor maker Kweichow Moutai Co. paced declines for consumer staples producers on speculation recent gains were excessive relative to earnings prospects. Aluminum Corp. of China Ltd and China Coal Energy Co. led losses for metal and energy producers on concern Europe will struggle to contain its sovereign debt problems. The Shanghai Composite Index slid 0.4 percent to 2,105.99 at the close, the biggest decline since October 26. The CSI 300 Index dropped 0.4 percent to 2,292.21. The Hang Seng China Enterprises Index of Chinese companies traded in Hong Kong slipped 0.2 percent. “Investors are cautious ahead of the congressional meeting and U.S. voting,” Hao Hong, managing director of research at Bank of Communications, said in e-mailed comments from Beijing. “Typically, the Chinese market tends to underperform before the meeting.” President Hu Jintao is expected to hand over the Communist Party leadership to Vice President Xi Jinping at a congress that begins November 8.
issan Motor Co Ltd cut its full-year net profit forecast by a fifth to US$3.99 billion, joining rival Honda Motor Co Ltd, after car sales tumbled in China, the world’s biggest autos market, amid anti-Japanese protests over a territorial dispute. Demand for Nissan, Honda and Toyota Motor Corp cars in China was virtually halved due to protests in a row over disputed islets in the East China Sea. Nissan is the most exposed among Japanese carmakers, with China accounting for 27 percent of its vehicle sales. Nissan and its China joint venture sold 64,300 vehicles in China in October, down 41 percent from a year earlier. China is the company’s biggest volume market. July-September net profit rose 7.7 percent to 106 billion yen (US$1.32 billion), Nissan said yesterday, despite lower than expected car sales in the United States and Europe. Nissan trimmed its 2012 China sales forecast to 1.175 million vehicles from a previous 1.35 million. Globally, it said it now expects to sell 5.08 million vehicles in the year to end-March, down from a previous estimate for 5.35 million. “We are gradually seeing signs of recovery [in China]. Customers are gradually coming back to dealerships,” Nissan’s chief operating officer Toshiyuki Shiga
C
told reporters, adding that Nissan’s China market share dipped to 6.3 percent in July-September from 7.5 percent in January-June. In the United States, Nissan’s second-biggest market, the automaker faced production delays around July for its top-selling Altima mid-sized sedan, which faces intense competition in a crowded mid-size family sedan market from Toyota’s Camry, the Honda Accord, Ford’s Fusion, and models from GM, Hyundai Motor and Volkswagen. Nissan’s U.S. sales skidded 3.2 percent in October from a year ago, to 79,685 vehicles. Shares in Nissan, 43.4 percentheld by Renault SA and valued at close to US$39 billion, have slipped 2 percent so far this year, trailing Toyota’s 26 percent gain and Honda’s 3 percent rise. Nissan shares closed down 2 percent at 677 yen yesterday ahead of the earnings. Reuters
China Eastern dropped on concern slumping travel to Japan will hurt profit
China Eastern dropped 3.1 percent to 3.43 yuan, while the Hong Kongtraded shares slid 3.1 percent to HK$2.83 after Credit Suisse cut its recommendation from outperform on concern slumping travel to Japan will hurt profit. China Southern Airlines Co., the nation’s biggest carrier by fleet size, slumped 2.4 percent to 3.63 yuan. Trading volumes in the Shanghai Composite exceeded the 30-day average for this time of day by 7.1 percent, data compiled by Bloomberg show. Thirty-day volatility in the gauge was at 16.4 yesterday, lower than this year’s average of 17.2. The Shanghai index trades at 10 times estimated profit after falling 5.3 percent this year, compared with the 17.8 average multiple since Bloomberg began compiling the weekly data in 2006. Bloomberg
November 7, 2012 business daily | 9
GREATER CHINA
ING to compensate Taiwan govt For investment losses related to irregular-trading
I
NG Groep NV will pay US$8.8 million to Taiwan’s government labour and pension funds to compensate for investment losses related to irregular trading activities at the fund management firm. ING would pay the full compensation sought by the Taiwan government partly for the sake of continuing to develop its business on the island, the Amsterdam-based company said in a statement yesterday. A Financial Supervision Commission official, Rosemary Wang, said yesterday the regulator sent a warning to ING and asked it to fire the employee, surnamed Hsieh, after an investigation. ING’s compensation payment is the latest in a series of penalties levied against financial institutions in Asia. The Japanese Securities Dealers Association last month fined Nomura Holdings Inc. 300 million yen (US$3.7 million) for leaking client information. ING had earlier rejected demands from the government labour and pension funds, with NT$1.97 trillion (US$67 billion) in assets, for compensation, saying the losses related to Hsieh’s activities were limited. The Council of Labour Affairs said on October 31 ING would be banned from investing on behalf of the government for five years.
ING to pay US$8.8 million to keep its Taiwanese business
“I hope this doesn’t set a precedent,” Henry Lin, chairman of the Securities Investment Trust and Consulting Association of the Republic of China wrote in an Economic Daily News opinion piece published yesterday morning. “Just because a fund loses money
doesn’t mean investors can seek compensation. You have to show legal violations.” Taiwan’s securities market regulator has concluded its investigation of the fund management firm, FSC’s Ms Wang said. She declined to comment on
whether prosecutors are pursuing the matter. ING set up its Taiwan venture in 1998 and employs almost 200 people on the island, the most of any foreign asset management firm, according to its statement. Bloomberg
10 |
business daily November 7, 2012
ASIA Thailand aims to be top rice exporter Thailand aims to be the world’s biggest rice exporter in 2013 by shipping 8.5 million tonnes, up from the 7.2-7.5 million tonnes expected to be shipped this year, a senior official at the Commerce Ministry said yesterday. “That means we could retain our position as the world’s number-one exporter because our competitors, such as India and Vietnam, are expected to export around 7-8 million tonnes next year,” said Pranee Siriphand, director general of the Ministry of Commerce’s Department of Foreign Trade. Thailand exported a record of 10.6 million tonnes in 2011.
Japan local economies threatened As government cash dries up amid political standoff Mayumi Otsuma and Kyoko Shimodoi
Can you stimulate economic growth with 400 billion yen of spending when you suspend the allocation of 4 trillion yen? What the central government is doing is just contradictory Keiji Yamada, National Governors’ Association
Public works spending and subsidies in danger as funding dries up
J
apanese local governments are borrowing from banks to cover their outlays as a political standoff over financing legislation adds to risks for the world’s thirdbiggest economy. Hokkaido, the northernmost prefecture, and Wakayama, in the west, face extra interest costs after taking out loans, their finance departments say. Public works spending and subsidies for the poor are in danger as funding dries up, according to Keiji Yamada, governor of Kyoto prefecture and head of the National Governors’ Association. Disruption to spending by local
authorities, which account for about two-thirds of public outlays, could further drag on an economy that is losing steam as exports and industrial production slide. With the central government at risk of running out of money this month, Shinzo Abe, the leader of the opposition Liberal Democratic Party, has signalled that he’ll allow a parliamentary debate on the contentious legislation. “Running short of funds would yield a severe blow to regional economies which are already weakening as populations decrease and companies shift production overseas,” said Takeshi Minami, chief
economist in Tokyo at Norinchukin Research Institute Co. “They have difficulty standing on their feet and have no choice but to depend on money from the central government.”
Contracting economy Japan’s Nikkei 225 Stock Average has fallen 12 percent from this year’s high in March as analysts at Morgan Stanley and Barclays Plc say the economy likely contracted in the third quarter and will do so again in the fourth. The benchmark was down 0.41 percent yesterday. The finance ministry last week
downgraded its assessment of eight of 11 regional economies as weakness in overseas demand, the expiry of government subsidies for car purchases, and strength in the yen hurt manufacturing. Industrial production fell in September by the most since last year’s earthquake and tsunami. “The central government recently announced its spending of 400 billion yen (US$5 billion) for an economic stimulus package, but we have to remember that 4 trillion yen in tax allocations to local governments have been suspended,” Mr Yamada said. “Can you stimulate economic growth
Philippine inflation slows to 4-month low Manila keeps attracting inflows of foreign capital
P
hilippine inflation eased more than expected in October, allowing the central bank to focus on supporting growth and managing capital inflows which have helped turned the peso into emerging Asia’s strongest performing currency this year. The consumer price index rose 3.1 percent in October from a year earlier, the statistics office said yesterday, the lowest since August. “This validates the recent monetary policy decision of the BSP to ease,” deputy governor
Diwa Guinigundo told Reuters in a mobile text message. The latest data brought the average inflation in the 10 months to October to 3.2 percent, below the lower half of the central bank’s 3 to 5 percent target band. This leaves the central bank room to keep policy rates at a record low in the near term. Euben Paracuelles, economist at Nomura in Singapore said the latest inflation data raised the chances of another rate cut in December, although further easing would likely depend on strength of capital inflows
Average inflation remains below the central bank’s target band
into the Philippines. “Whether they think about cutting [rates] again, that is certainly now more possible in December,” Mr Paracuelles said. “Inflation remains benign ... given that condition is in place, what would
trigger the BSP to cut is whether they are concerned about the impact of excessive capital inflows.” Other central banks in Asia are likely to maintain an accommodative policy stance, with inflation under
November 7, 2012 business daily | 11
ASIA Singapore PMI shrinks as orders fall Singapore’s manufacturing activity contracted for a fourth consecutive month in October as orders fell further and employment continued to contract for its 16th consecutive month, a business survey showed. Singapore’s Purchasing Manager’s index (PMI) slipped deeper into negative territory last month, dropping to 48.3 points from September’s 48.7 points, the Singapore Institute of Purchasing & Materials Management (SIPMM) said on Monday. “The dip in the overall PMI was attributed to a further decline in new orders, new export orders as well as production output,” SIPMM said in a statement.
with 400 billion yen of spending when you suspend the allocation of 4 trillion yen? What the central government is doing is just contradictory.”
Seeking support The deficit financing legislation covers 38.3 trillion yen, or about 40 percent of budget spending for the fiscal year through March 31. Prime Minister Yoshihiko Noda failed last month to persuade opposition leaders to support the measures without him specifying a date for elections. Mr Noda pledged in August to call an election “soon”. The parliament needs to pass a bill by November 26 to ensure a smooth government bond auction on December 4, said Chotaro Morita, chief strategist for fixed income at Barclays Plc in Tokyo. Moody’s Investors Service said last week that the political impasse is negative for the country’s debt rating, and that smooth functioning of the bond market is crucial. Ichita Yamamoto, an upper house member of the main opposition LDP, said last week in an interview that lawmakers are “heading in the direction” of a compromise. “The LDP has to move first as they rely on support from the regions and from old people,” said Hiroshi Watanabe, a senior economist at SMBC Nikko Securities. “Local economies are weakening across the nation and their revenues are falling.” Hokkaido’s short-term bank borrowing since late September will incur an extra 15 million yen in interest and the prefecture pushed forward the sale of 39 billion yen of municipal bonds, according to its finance department. Kyoto prefecture may have to delay a winter bonus payment for its officials, Mr Yamada said. “Given that the economy is worsening now and many problems need to be resolved, Japanese people want legislators to make decisions,” Mr Yamada said. “If they can’t decide, politicians will lose public trust.” Bloomberg
control and given lingering concern about the global economy. Southeast Asia’s biggest economy, Indonesia, said last week its inflation picked up more than expected in October, but the level was still within the central bank’s target range. On October 25, the Bangko Sentral ng Pilipinas cut its key policy rate for a fourth time this year to protect domestic demand and deal with capital inflows, which could intensify after Moody’s Investors Service raised its credit rating for the Philippines on October 29. Manila, thanks to its sound macroeconomic fundamentals, is attracting inflows of foreign capital and these have kept the peso rising against the dollar and made the stock market one of Asia’s best performer this year. While a strong peso helps moderate imported price pressures, it has the undesired effect of making Philippine exports less competitive and reducing the buying power of foreign currency remittances, key drivers of growth. Reuters
RBA holds rate on signs of economy stabilising Australia central bank leaves door open for more stimulus Wayne Cole
A
ustralia’s central bank skipped a chance to ease and held rates at 3.25 percent yesterday citing higher inflation at home and an improved global background, though it still left the door open for more stimulus if needed. The Australian dollar jumped half a cent as the market had been divided on whether the Reserve Bank of Australia (RBA) would choose to reinforce the impact of its October easing with a cut to 3 percent. In the end, it chose to pause. “At today’s [yesterday’s] meeting, with prices data slightly higher than expected and recent information on the world economy slightly more positive, the Board judged that the stance of monetary policy was appropriate for the time being,” RBA Governor Glenn Stevens said after the bank’s monthly policy meeting. Analysts saw the use of “for the time being” as a sign the bank still had an easing bias and might yet chose to move in December or perhaps February depending on incoming data. “There are a few things they are worried about, but not sufficiently so that they have to do anything about it right now,” said Stephen Walters, chief economist at JPMorgan. “We do think they’ll cut. We’ve got December.” A majority of economists polled by Reuters had expected a cut this week, but markets had been less sure, pricing in around a 50-50 chance of a move. The steady decision saw the Australian dollar climb to a fiveweek high on its U.S. counterpart at A$1.0426, while the euro sank to a two-month trough at A$1.2256. Investors rowed back wagers on the
The RBA reduced its key rate by a total of 1 percentage point from May to October
scale of future easing with interbank futures now implying a 56 probability of a cut by Christmas, down from almost 100 percent previously. Overnight indexed swaps, which essentially show where the market thinks the cash rate is heading, put rates at 2.87 percent in 12 months against 2.74 percent on Monday.
Peak on horizon Leaning against a cut this week was a surprisingly high reading for underlying inflation in the third quarter, which picked up to an annual 2.5 percent to be back in the middle of the RBA’s long-term target band of 2 to 3 percent. The global outlook has also become a shade less gloomy, with data pointing to some stabilisation in China and steady, if slow,
improvement in the United States. The RBA has already eased by 150 basis points in the past year but Australian rates remain high relative to most of its rich-world peers. With rates near zero in the United States, Japan and U.K., those countries have had to take ever more exotic stimulus measures by buying massive amounts of government debt. Still, RBA chief Stevens did note that lower prices for some of Australia’s key resource exports, notably iron ore and coal, impacted the outlook for mining investment. “Looking ahead, the peak in resource investment is likely to occur next year, at a lower level than expected six months ago. As this peak approaches, the Board will be monitoring the strength of other components of demand,” he said. Reuters
Suzuki shutters U.S. car business
J
apan’s Suzuki Motor Corp will pull the plug on its unprofitable automobile sales business in the United States after nearly three decades, hurt by a strong yen and a limited choice of vehicles that failed to excite consumers. Suzuki said yesterday it would use a Chapter 11 bankruptcy filing by its U.S. subsidiary in federal court in California to shut down the auto business and to focus instead on sales of motorcycles, All-Terrain Vehicles (ATV) and boats. The departure of Suzuki ends a 27-year effort to gain traction in the world’s second-largest auto market. The bankruptcy could allow Japan’s No.4 automaker to step away from its contractual responsibilities
to the more than 200 dealers who maintain franchises, much as General Motors Co and Chrysler Group LLC were able to drop dealerships in their 2009 bankruptcies. Suzuki models did not catch on in the United States, and the company suffered from a lack of investment in new vehicles. It also struggled from the strong yen that makes it more expensive to export products from Japan. It sold 21,188 vehicles in the United States through October this year, a 5 percent drop from the previous year at a time when the overall market was up by 14 percent. Suzuki, which had marketed the Kizashi sedan and the Grand Vitara SUV in the United States, said it
would continue to honour warranties during the bankruptcy and did not see the need for outside financing during the restructuring. American Suzuki Motor Corp, the sole distributor of Suzuki vehicles in the continental United States, will file for bankruptcy with US$346 million in debt, of which US$173 million is owed to Suzuki group companies, the company said. The Japanese parent company plans to buy the motorcycle, ATV and outboard engine operations out of bankruptcy and shift its auto business to service existing vehicles on the road. The new U.S. operating unit plans to keep the American Suzuki name, it said. Reuters
12 |
business daily November 7, 2012
MARKETS HANG SENG INDEX NAME
NAME
PRICE
DAY %
VOLUME
12.2
-0.3267974
22652803
CITIC PACIFIC
10.12
-0.1972387
6649197
PRICE
DAY %
VOLUME
31.15
-0.1602564
21570234
CHINA UNICOM HON
ALUMINUM CORP-H
3.44
-0.8645533
12312040
BANK OF CHINA-H
3.23
0.310559
266967423
BANK OF COMMUN-H
5.61
-0.3552398
18211862
29.55
0.3395586
2796542
AIA GROUP LTD
BANK EAST ASIA
NAME
PRICE
DAY %
POWER ASSETS HOL
67.8
1.345291
4796082
SANDS CHINA LTD
31.2
-1.265823
9131907 8846493
CLP HLDGS LTD
66.45
0.5295008
3095552
SINO LAND CO
13.34
-1.477105
CNOOC LTD
16.44
0.982801
29071378
SUN HUNG KAI PRO
110.8
0.1808318
2926053
COSCO PAC LTD
11.04
-2.987698
12507181
SWIRE PACIFIC-A
94.05
0.8579088
1861112
275.8
0.07256894
2285238
23
2.222222
4631562
11.44
1.960784
11758313
55
0.456621
5370564
BELLE INTERNATIO
14.52
-1.759134
13968520
ESPRIT HLDGS
10.88
0
9347130
TENCENT HOLDINGS
BOC HONG KONG HO
24.05
0.2083333
5140240
HANG LUNG PROPER
27.65
0.5454545
4173164
TINGYI HLDG CO
CATHAY PAC AIR
14.14
-0.8415147
3081450
HANG SENG BK
119.1
0.08403361
929051
CHEUNG KONG
115.5 -0.08650519
2608724
CHINA COAL ENE-H
8.09
0.2478315
33829574
CHINA CONST BA-H
5.92
0.3389831
234057227
HENDERSON LAND D
54.95 -0.09090909
4055615
HENGAN INTL
70.35
-0.2834869
4713507
HONG KG CHINA GS
20.75
0.7281553
4329662
129.6
-2.409639
7342299
76.7
-1.350482
19115428
CHINA LIFE INS-H
23.7
-1.043841
33247932
HONG KONG EXCHNG
CHINA MERCHANT
24.55
-5.212355
40794362
HSBC HLDGS PLC
CHINA MOBILE
87.4
0.1719198
11926306
HUTCHISON WHAMPO
21.45
-0.9237875
16898217
IND & COMM BK-H
CHINA PETROLEU-H
8.22
-0.7246377
82109188
LI & FUNG LTD
CHINA RES ENTERP
26.45
-2.037037
4310784
MTR CORP
CHINA OVERSEAS
79.75
0.1255493
6944035
5.15
-0.5791506
207067100
13.36
0.3003003
27464573
29.9
-0.4991681
3824974
WANT WANT CHINA WHARF HLDG
MOVERS
22
26
1 22140
INDEX 21944.43 HIGH
22136.66
LOW
21840.21
18.6
0.5405405
6093232
NEW WORLD DEV
12.34
-0.9630819
14769788
52W (H) 21847.69922
CHINA RES POWER
16.72
-0.7125891
3881500
PETROCHINA CO-H
10.56
0.1897533
43611960
(L) 17613.19922
CHINA SHENHUA-H
33.35
-1.038576
10450246
PING AN INSURA-H
62.15
-1.192369
10070923
PRICE
DAY %
VOLUME
25.05
-0.3976143
5583700
CHINA RES LAND
VOLUME
21820
2-November
6-November
HANG SENG CHINA ENTERPRISE INDEX NAME
NAME
PRICE
DAY %
VOLUME
AGRICULTURAL-H
3.46
1.466276
120978294
AIR CHINA LTD-H
5.34
-1.838235
12546000
CHINA PETROLEU-H
8.22
-0.7246377
82109188
ZIJIN MINING-H
ALUMINUM CORP-H
3.44
-0.8645533
12312040
CHINA RAIL CN-H
8.05
-2.777778
18517500
28
-1.060071
8575025
CHINA RAIL GR-H
4.14
1.970443
27020542
BANK OF CHINA-H
3.23
0.310559
266967423
CHINA SHENHUA-H
33.35
-1.038576
10450246
BANK OF COMMUN-H
5.61
-0.3552398
18211862
CHINA TELECOM-H
4.44
-0.8928571
56952000
BYD CO LTD-H
17.5
4.665072
6254187
DONGFENG MOTOR-H
10.02
-1.183432
21406747
CHINA CITIC BK-H
4.03
-0.4938272
19717811
GUANGZHOU AUTO-H
5.3
-1.303538
2820181
CHINA COAL ENE-H
8.09
0.2478315
33829574
HUANENG POWER-H
6.14
-0.1626016
12518000
CHINA COM CONS-H
7.31
-2.141901
19234626
IND & COMM BK-H
5.15
-0.5791506
207067100
20.25
-0.9779951
7165747 43611960
ANHUI CONCH-H
CHINA PACIFIC-H
NAME
PRICE
DAY %
VOLUME
12.22
-0.6504065
22357000
3.08
0.3257329
21059400
ZOOMLION HEAVY-H
10.72
-0.3717472
12167138
ZTE CORP-H
11.82
2.961672
12118461
YANZHOU COAL-H
MOVERS
5.92
0.3389831
234057227
CHINA COSCO HO-H
3.89
-0.7653061
15294000
PETROCHINA CO-H
10.56
0.1897533
CHINA LIFE INS-H
23.7
-1.043841
33247932
PICC PROPERTY &
10.54
0.1901141
7898181
CHINA LONGYUAN-H
5.14
1.181102
11092000
PING AN INSURA-H
62.15
-1.192369
10070923
CHINA MERCH BK-H
14.56
-0.4103967
8440499
SHANDONG WEIG-H
10.7
-0.3724395
1890800
26.5
0.952381
1822800
52W (H) 11916.1 (L) 8987.76
7.45
-0.4010695
23437389
CHINA NATL BDG-H
10.6
0.3787879
42424360
TSINGTAO BREW-H
42.75
-0.5813953
868900
CHINA OILFIELD-H
14.2
-0.6993007
10049640
WEICHAI POWER-H
30.2
-1.30719
3218620
0 10890
CHINA CONST BA-H
CHINA MINSHENG-H
27
INDEX 10734.42
JIANGXI COPPER-H
SINOPHARM-H
13
HIGH
10885.94
LOW
10649.97 10640
2-November
6-November
SHANGHAI SHENZHEN CSI 300 PRICE
DAY %
VOLUME
PRICE
DAY %
VOLUME
PRICE
DAY %
AGRICULTURAL-A
2.57
0.390625
66408069
DATANG INTL PO-A
4.18
-0.2386635
3175946
SHANDONG DONG-A
41.13
-0.3633721
3490731
AIR CHINA LTD-A
5.01
-2.339181
11979536
DONGFANG ELECT-A
13.6
-0.9468318
4316379
SHANDONG GOLD-MI
37.6
1.320399
10116327
NAME
NAME
4.89
-1.012146
11064696
EVERBRIG SEC -A
ANHUI CONCH-A
16.78
-1.177856
16095616
GD POWER DEVEL-A
BANK OF BEIJIN-A
7.27
0
22603334
BANK OF CHINA-A
2.8
1.083032
20014968
BANK OF COMMUN-A
4.34
-0.2298851
BAOSHAN IRON & S
4.67
-0.4264392
ALUMINUM CORP-A
BYD CO LTD -A
15.57
2.434211
NAME
VOLUME
12.16
0
9736918
SHANG PHARM -A
11.19
-0.8857396
6631911
2.46
0.4081633
19560469
SHANG PUDONG-A
7.68
-0.6468305
42177128
GF SECURITIES-A
13.26
0.6833713
36640165
SHANGHAI ELECT-A
4.23
-0.2358491
4582281
GREE ELECTRIC
23.29
0
21770735
SHANXI LU'AN -A
17.66
-0.9534492
8930546
37485132
GUANGHUI ENERG-A
16.26
-1.514234
26362333
SHANXI XINGHUA-A
43.85
-0.5668934
3312849
26563045
HAITONG SECURI-A
9.15
0.1094092
44887550
SHANXI XISHAN-A
12.81
-1.157407
9994478
7576309
HANGZHOU HIKVI-A
30.09
-0.3642384
3987392
SHENZEN OVERSE-A
5.99
-1.155116
18620159
CHINA CITIC BK-A
3.65
-0.8152174
11787903
HENAN SHUAN-A
61.99
-0.1449742
1793838
SICHUAN KELUN-A
55.66
-1.136767
1375210
CHINA CNR CORP-A
4.08
-0.9708738
46532694
HONG YUAN SEC-A
18.44
1.653804
15513587
SUNING APPLIAN-A
6.87
0.4385965
22691561
CHINA COAL ENE-A
7.19
-0.8275862
6848825
HUATAI SECURIT-A
9.41
0
15359165
TASLY PHARMAC-A
51.92
0.5422153
1457748
8.71
-0.6841505
26134081
TSINGTAO BREW-A
31.36
-1.228346
960686
CHINA CONST BA-A
4.25
0.4728132
25332341
HUAXIA BANK CO
CHINA COSCO HO-A
4.21
-1.173709
8749880
IND & COMM BK-A
3.88
-0.5128205
53279346
WEICHAI POWER-A
20.95
-1.781528
7563696 26429924
CHINA CSSC HOL-A
19.73
-1.152305
2651046
INDUSTRIAL BAN-A
12.71
-0.7806401
44384966
WULIANGYE YIBIN
33.02
-1.988721
CHINA EAST AIR-A
3.43
-3.107345
21298862
INNER MONG BAO-A
31.98
2.92887
47852031
YANGQUAN COAL -A
14.2
-1.86593
9979730
CHINA INTERNAT-A
31.66
-0.126183
5003850
INNER MONG YIL-A
21.8
-0.6381039
9104911
YANTAI CHANGYU-A
44
-1.345291
1799336 9097350
CHINA LIFE INS-A
18.41
0.05434783
10116014
INNER MONGOLIA-A
5.46
-1.798561
57409392
YANTAI WANHUA-A
13.92
1.236364
CHINA MERCH BK-A
10.38
-0.3838772
25616913
JIANGSU HENGRU-A
30.13
-0.5938634
1593736
YANZHOU COAL-A
18.07
-1.41844
3027889
CHINA MERCHANT-A
9.79
0.2047083
12757368
JIANGSU YANGHE-A
116.25
-2.930862
1181400
YUNNAN BAIYAO-A
65.87
-0.408225
2346643
CHINA MERCHANT-A
23
-1.960784
8123166
JIANGXI COPPER-A
21.25
0.09420631
4771905
ZHONGJIN GOLD
16.06
1.968254
20976183
11.32
-0.7017544
2545602
ZIJIN MINING-A
3.87
0.78125
37776481
ZOOMLION HEAVY-A
8.69
-1.025057
27845246
ZTE CORP-A
8.53
-0.6984866
12432917
CHINA MINSHENG-A
6.15
0
73132858
JINDUICHENG -A
CHINA NATIONAL-A
6.59
-1.641791
21491189
JIZHONG ENERGY-A
12.02
-1.394586
9745646
CHINA OILFIELD-A
16.24
-0.1230012
2649015
KANGMEI PHARMA-A
16.78
0.1791045
11507239
CHINA PACIFIC-A
18.38
-0.8629989
9663572
KWEICHOW MOUTA-A
235.93
-2.877491
4171323
6.36
-0.7800312
13848731
LUZHOU LAOJIAO-A
37.96
-2.366255
8819118
2.09
-0.9478673
18249263
CHINA PETROLEU-A CHINA RAILWAY-A
5.17
-1.711027
28034142
METALLURGICAL-A
CHINA RAILWAY-A
2.76
-0.3610108
37586624
NARI TECHNOLOG-A
17.74
0
20835387
CHINA SHENHUA-A
23.26
-0.4706889
5930988
NINGBO PORT CO-A
2.48
0
9522246
4.5
-0.4424779
20517549
PANGANG GROUP -A
3.75
-1.315789
39884979
8.78
-0.1137656
10545472 13017945
CHINA SHIPBUIL-A
MOVERS
69
CHINA SOUTHERN-A
3.63
-2.419355
45722051
CHINA STATE -A
3.17
0.3164557
46881913
PING AN BANK-A
13.58
-0.2204262
CHINA UNITED-A
3.64
-0.2739726
47747764
PING AN INSURA-A
39.14
0.9803922
21302246
HIGH
2315.4
CHINA VANKE CO-A
8.61
-0.6920415
40986303
POLY REAL ESTA-A
11.6
-1.276596
34784173
LOW
2266.16
CHINA YANGTZE-A
6.5
-0.6116208
10113278
QINGDAO HAIER-A
11.6
1.22164
9841623
CITIC SECURITI-A
11.27
0
57659836
QINGHAI SALT-A
25.35
-1.246591
3317783
4.54
-1.089325
22472365
SAIC MOTOR-A
13.5
1.047904
16658744
DAQIN RAILWAY -A
6.14
-0.1626016
15737881
SANY HEAVY INDUS
9.38
0
21822751
NAME
PRICE DAY %
VOLUME
PRICE DAY %
VOLUME
ACER INC
26.95 -0.9191176
12140253
FORMOSA PLASTIC
77.6
-2.143758
11851104
ADVANCED SEMICON
21.15
-1.398601
14821938
FOXCONN TECHNOLO
104
-1.421801
36.8
0
1684382
FUBON FINANCIAL
31.75
305
0.1642036
3040867
11.65
0
62332662
139
4.511278
14358017
HTC CORP
30.85
-1.121795
17287593
HUA NAN FINANCIA
CHANG HWA BANK
15.2 -0.6535948
4940698
LARGAN PRECISION
596
CHENG SHIN RUBBE
73.7
0.2721088
4104782
LITE-ON TECHNOLO
CHIMEI INNOLUX C
11.5
0.4366812
55072413
MEDIATEK INC
CHINA DEVELOPMEN
6.99 -0.8510638
23103828
MEGA FINANCIAL H
CHINA STEEL CORP
25.8 -0.9596929
10208185
NAN YA PLASTICS
54.8
-1.615799
2211113
12218943
PRESIDENT CHAIN
149 -0.6666667
2175194
18 2320
INDEX 2292.206
PETROCHINA CO-A
CSR CORP LTD -A
213
52W (H) 2781.99 (L) 2172.878906
2260
2-November
6-November
FTSE TAIWAN 50 INDEX
ASIA CEMENT CORP ASUSTEK COMPUTER AU OPTRONICS COR CATCHER TECH CATHAY FINANCIAL
CHINATRUST FINAN
NAME
PRICE DAY %
VOLUME
TAIWAN MOBILE CO
104 -0.4784689
4086226
8435891
TPK HOLDING CO L
382 -0.9079118
2748488
-0.78125
9289677
TSMC
86 -0.8073818
20042789
HON HAI PRECISIO
85.1 -0.8158508
34566357
HOTAI MOTOR CO
212
0.4739336
166744
258
0.3891051
15.85 -0.6269592
8898350
WISTRON CORP
31.15
0.9724473
6979610
7256032
YUANTA FINANCIAL
13.9 -0.7142857
10514423
-1.487603
1159640
YULON MOTOR CO
54.3
37.3 -0.5333333
1774486
0.7727975
5572695
21.95 -0.2272727
326
10919929
92.1
0.1086957
4441098
QUANTA COMPUTER
69
0
COMPAL ELECTRON
20.8
-0.952381
11551601
SILICONWARE PREC
30.9
0.4878049
6712132
DELTA ELECT INC
101
0
6193718
SINOPAC FINANCIA
11.3
-1.73913
13006288
31.95 -0.4672897
3956927
SYNNEX TECH INTL
65.3
1.872075
1907790
0.727802
7410081
TAIWAN CEMENT
37.8
0.5319149
11076636
FIRST FINANCIAL
4359143
0
CHUNGHWA TELECOM
69.2
51.5 -0.9615385 11.15
-0.297619
FAR EASTONE TELE
UNI-PRESIDENT UNITED MICROELEC
16.75
FAR EASTERN NEW
NAME
6501333
17.35 -0.5730659
4127433
TAIWAN COOPERATI
15.8 -0.3154574
6426352
FORMOSA CHEM & F
73.6 -0.8086253
3684264
TAIWAN FERTILIZE
75.6
0.8
1619756
FORMOSA PETROCHE
84.3 -0.8235294
1127411
TAIWAN GLASS IND
27.95 -0.3565062
1012427
MOVERS
34
10
0.1845018
21999748
2485657
6 5080
INDEX 5077.68 HIGH
5077.68
LOW
5020.86
52W (H) 5621.53 5010
(L) 4643.05 2-November
6-November
November 7, 2012 business daily | 13
MARKETS GAMING STOCKS - DAILY PERFORMANCE (Hong Kong Stock Exchange) GALAXY ENTERTAINMENT
MELCO CROWN ENTERTAINMENT
MGM CHINA HOLDINGS
28.8 28.6
38.5
14.4
38.0
14.2
37.5
14.0
28.4 28.2
Max 28.7
Average 28.410
Min 28.25
Last 28.65
28.0
SANDS CHINA LTD
Max 38.35
Average 38.075
Min 38.5
37.0
Last 38
SJM HOLDINGS LTD
Max 14.26
Average 14.056
Min 13.92
Last 13.92
WYNN MACAU LTD 18.0
31.7 31.5
23.6 23.4
17.8
31.3
23.2 17.6
31.1
Average 31.281
Max 31.65
Min 31
Last 31.2
30.9
Average 17.717
Min 17.66
Last 17.7
NAME
PRICE
WTI CRUDE FUTURE Dec12
85.62
-0.03502627
-12.7306085
110.25
79.11999512
BRENT CRUDE FUTR Dec12
107.37
-0.334168755
3.349696795
122.0999985
89.84999847
GASOLINE RBOB FUT Dec12
262.31
0.110678574
5.710486016
295.8800077
217.2600031
927
0.760869565
3.402119353
1040.25
798
3.527
-0.759707372
-6.121905776
4.440999985
2.90899992
NATURAL GAS FUTR Dec12 HEATING OIL FUTR Dec12
DAY %
YTD %
(H) 52W
297.22
-0.358711321
3.510482691
335.1700068
254.2500019
1688.31
0.4576
7.8854
1803
1522.75
Silver Spot $/Oz
31.255
1.0834
12.2867
37.4775
26.1513
Platinum Spot $/Oz
1549.05
0.3804
11.0828
1736
1339.25
Palladium Spot $/Oz
614.5
2.5705
-5.9679
725.19
553.75
LME ALUMINUM 3MO ($)
1906
-0.987012987
-5.643564356
2361.5
1827.25
LME COPPER 3MO ($)
7650
-0.195694716
0.657894737
8765
7100.25
LME ZINC
1868
-0.320170758
1.246612466
2220
1745
3MO ($)
LME NICKEL 3MO ($)
PRICE
(L) 52W
Gold Spot $/Oz
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
15900
-0.469483568
-15.01870657
22150
15236
0.362796834
-0.911755129
16.60000038
14.60000038
738.75
0.441876275
26.01279318
849
499
WHEAT FUTURE(CBT) Dec12
872.5
0.750577367
21.18055556
953.25
629.5
SOYBEAN FUTURE Jan13
1518
0.981207384
25.1442704
1781.5
1126.75
150.95
0.033134526
-36.03813559
248.25
150.8000031
CROWN LTD
SUGAR #11 (WORLD) Mar13
19.28
-0.258665287
-17.46575342
25.12999916
19.18000031
AMAX HOLDINGS LT
COTTON NO.2 FUTR Dec12
71.01
0.866477273
-19.15983607
97.98999786
64.61000061
BOC HONG KONG HO CENTURY LEGEND
0.265 4.28
CHINA OVERSEAS
21.45
CHINESE ESTATES
12.8
CHOW TAI FOOK JE
Dec12
COFFEE 'C' FUTURE Dec12
WORLD STOCK MARKETS - Indices DOW JONES INDUS. AVG
Last 22.95
Min 22.95
COUNTRY
PRICE
DAY %
YTD %
(H) 52W
(L) 52W
US
13112.44
0.1472525
7.324547
13661.87
11231.56
0.7344 -0.0438 -0.2539 -0.2031 0.0748 0 0 -0.0032 0.1697 0.0975 0.1716 -0.0239 0.0971 0.0727 -0.6599 -0.0522 0.1613 0.0464 0.1942 0.2732 0
YTD %
(H) 52W
2.1158 2.7601 -0.7512 -1.4505 -4.15 0.2117 0.2219 0.7926 -2.6598 2.5016 5.9573 3.5109 6.369 -5.7864 -6.2334 0.7902 4.2102 1.963 1.5201 -2.7612 0.0097
(L) 52W
1.0857 1.6309 0.9972 1.3859 84.18 8.0308 7.7979 6.3964 57.3275 32 1.315 30.5 44.35 9662 88.637 1.24569 0.86648 8.7923 11.089 111.44 1.0311
0.9582 1.5235 0.8923 1.2043 76.03 7.9823 7.7498 6.234 48.6088 30.2 1.2152 29.084 41.118 8875 74.482 1.19995 0.77553 7.7018 9.6245 94.12 1.029
MACAU RELATED STOCKS NAME ARISTOCRAT LEISU
CHEUK NANG HLDGS
NAME
Average 23.152
DAY %
1.0425 1.5972 0.9452 1.2773 80.24 7.9827 7.7502 6.2455 54.515 30.78 1.2237 29.252 41.215 9626 83.646 1.20725 0.79972 7.9776 10.197 102.49 1.03
15.215
AGRICULTURE ROUGH RICE (CBOT) Jan13 CORN FUTURE
22.8 Max 23.45
CURRENCY EXCHANGE RATES
GAS OIL FUT (ICE) Dec12
METALS
23.0
17.4 Max 17.84
COMMODITIES ENERGY
EMPEROR ENTERTAI
PRICE
(H) 52W
(L) 52W
2.77
-0.3597122
DAY % YTD % 25.90909
3.25
2.16
VOLUME CRNCY 612672
9.8
1.135191
21.1372
10.03
7.92
838255
0.069
-1.428571
-20.68965
0.119
0.055
4853500
24.05
0.2083333
30.70652
25
16.24
5140240
0
15.21739
0.335
0.204
0
-0.4651163
52.85715
4.36
2.5
165080
-0.9237875
65.44035
21.95
11.507
16898217
2.4
2.4
13.26
8.3
165000
10.48
-0.1904762
-24.71264
15.16
8.4
6543700 1005000
1.5
-0.6622517
35.13513
1.57
0.99
1.25
-0.7936508
197.6191
1.36
0.37
318000
GALAXY ENTERTAIN
28.65
-0.5208333
101.1938
29.35
13.2
13042610
FUTURE BRIGHT
NASDAQ COMPOSITE INDEX
US
2999.663
0.587868
15.14359
3196.932
2441.48
HANG SENG BK
119.1
0.08403361
29.24579
120
91.05
929051
FTSE 100 INDEX
GB
5864
0.4271235
5.235204
5989.07
5075.22
HOPEWELL HLDGS
28.65
0.5263158
46.15738
31.091
18.319
1099000
DAX INDEX
GE
7364.61
0.5205781
24.85881
7478.53
5366.5
HSBC HLDGS PLC
76.7
-1.350482
30
78
56
19115428
HUTCHISON TELE H
3.21
-0.310559
7.357859
3.88
2.81
8204000
LUK FOOK HLDGS I
20.6
-2.600473
-23.98524
37.1
14.7
4130000
MELCO INTL DEVEL
7.74
-1.149425
34.14211
8.28
5.12
1436000
NIKKEI 225
JN
8975.15
-0.3584814
6.147597
10255.15
8135.79
HANG SENG INDEX
HK
21944.43
-0.2815999
19.04071
22149.69922
17613.19922
CSI 300 INDEX
CH
2292.206
-0.4202652
-2.282258
2781.99
2172.878906
MGM CHINA HOLDIN
13.92
-1.55587
45.11861
14.76
9.347
4999260
TAIWAN TAIEX INDEX
TA
7236.68
0.71423
2.327464
8170.72
6609.11
MIDLAND HOLDINGS
3.91
-1.262626
-1.113972
5.217
3.249
2108000
NEPTUNE GROUP
0.153
-3.164557
37.83784
0.222
0.08
5170000
NEW WORLD DEV
12.34
-0.9630819
97.12459
13.2
6.13
14769788
SANDS CHINA LTD
31.2
-1.265823
42.14123
33.05
19.96
9131907
SHUN HO RESOURCE
1.21
-4.724409
21
1.37
0.95
20000
SHUN TAK HOLDING
3.18
0
24.26106
3.51
2.418
3634503
KOSPI INDEX
SK
S&P/ASX 200 INDEX
AU
4484.798
0.2386615
10.55666
4581.8
3973.8
ID
4314.265
0.2632154
12.88002
4366.856
3618.969
FTSE Bursa Malaysia KLCI
MA
1645.63
-0.508452
7.506225
1679.37
1424.19
JAKARTA COMPOSITE INDEX
13.8
1928.17
1.045477
5.610331
2057.28
1750.6
SJM HOLDINGS LTD
17.7
-1.227679
41.53732
18.18
11.519
2591000
16.22
0.8706468
20.68453
17.5
11.72
2799339
WYNN MACAU LTD
23
-1.498929
17.94872
25.5
14.62
7917200
ASIA ENTERTAINME
4.065
-2.048193
-30.86735
7.49
2.4
135794
BALLY TECHNOLOGI
49.19
-0.06095083
24.34277
51.16
34.88
353005
3
-5.063291
25.14666
3.3
2
5000
3.69
0.5449591
97.3262
3.7
1.68
1000
12.99
0.4640371
-24.47675
18.1701
10.92
2049531
JONES LANG LASAL
79.36
0.9540771
29.5462
87.52
55.88
148651
LAS VEGAS SANDS
44.39
-3.709328
3.88486
62.09
34.72
10667364
MELCO CROWN-ADR
14.78
-0.7387508
53.63826
16.02
8.18
3317260
MGM CHINA HOLDIN
1.88
0
57.75873
1.96
1.1917
5200
MGM RESORTS INTE
10.1
-1.463415
-3.163953
14.9401
8.83
10917206
SHFL ENTERTAINME
13.76
0.3646973
17.40614
18.77
10.22
313986
SJM HOLDINGS LTD
2.302
4.636364
43.19725
2.302
1.4695
9500
WYNN RESORTS LTD
111.52
-7.680591
7.643228
129.6589
84.4902
2148593
NZX ALL INDEX
NZ
856.809
0.4340609
17.40322
874.107
712.548
PHILIPPINES ALL SHARE IX
PH
3595.47
0.3152752
18.07628
3607.89
2944.08
HSBC Dragon 300 Index Singapor
SI
592.12
-0.28
19.3
NA
NA
STOCK EXCH OF THAI INDEX
TH
1298.73
-0.6099334
26.66582
1314.64
951.98
HO CHI MINH STOCK INDEX
VN
376.95
-0.08481989
7.225153
492.44
332.28
BOC HONG KONG HO
Laos Composite Index
LO
1103.88
1.685735
22.72697
1103.88
876.33
GALAXY ENTERTAIN INTL GAME TECH
Shanghai Shenzhen Composite index is listing the biggest companies by market capitalisation. All data supplied by Bloomberg unless otherwise indicated.
SMARTONE TELECOM
AUD HKD
USD
16 |
business daily November 7, 2012
CLOSING Indonesia to review ore export rules
S. Korea extends nuclear probe
Indonesia will review its rules on the export of unprocessed metal ores after a Supreme Court ruling that upheld a challenge to a government ban on such shipments, Energy and Mineral Resources Minister Jero Wacik said yesterday. The court decision could pave the way for a resumption of exports by small mining companies that were hit very hard by the restriction imposed in May. The ruling is likely to prompt further uncertainty in a US$93 billion sector reeling from a series of regulatory changes this year.
South Korea’s main nuclear power supervisor extended an investigation into forged safety certificates for reactor components to three more facilities yesterday, a day after shutting down two reactors. South Korea generates 30 percent of its electricity from 23 nuclear reactors at state-owned plants, and the government warned of the potential for unprecedented power shortages due to the shutdowns as demand peaks in winter. Authorities were at pains to stress that the parts involved related to non-crucial aspects of the plants’ operation and posed no risk to safety.
Euro-area factory, services output contracts Economy contracting by the 9th consecutive month
E
uro-area services and manufacturing output contracted for a ninth month in October, adding to evidence that the single-currency bloc’s economy is in a recession. A composite index based on a
survey of purchasing managers in both industries dropped to 45.7 from 46.1 in September, London-based Markit Economics said yesterday. That’s below an initial estimate of 45.8 on October 24. A reading below 50 indicates contraction.
“The euro-zone downturn appears, if anything, to be deepening rather than easing,” said Howard Archer, an economist at IHS Global Insight in London. “It already looks highly probable that the euro zone is headed for further economic
contraction in the fourth quarter.” At least five euro area countries are already in recession, and fiscal turmoil is showing signs of spreading to the region’s core nations. Economic confidence fell for an eighth month to the lowest in more than three years in October, adding to signs the slump extended into the fourth quarter. “The final euro-zone PMI reading came in at a level historically consistent with the region’s economy contracting at a quarterly rate of around 0.5 percent, confirming the picture painted by the earlier flash estimate,” Markit senior economist Rob Dobson said in the report. “Sentiment is still being hit hard as companies worry about the dual impact of weak domestic demand and a slowing global economy.” European companies are facing a struggle to maintain sales as demand from consumers in Europe weakens. Continental AG Chief Executive Officer Elmar Degenhart said on October 31 that “the road is becoming rockier” as Europe’s second-largest maker of car parts stuck to 2012 earnings targets after growth in North America and Asia offset weakness at home. Meanwhile Banco Bilbao Vizcaya Argentaria SA, Spain’s second-biggest bank, said on October 31 that third-quarter profit fell 82 percent as it continued to purge soured real estate assets. The European Central Bank, which has pledged to purchase government bonds along with the euro-area rescue fund to fight the fiscal crisis, is forecast to leave its benchmark rate unchanged at its November 8 meeting, according a Bloomberg survey of 63 economists. Bloomberg
Putin fires defence minister in corruption scandal
R
ussian President Vladimir Putin yesterday fired his defence minister over a corruption scandal, the most dramatic change to the government since he returned for a third Kremlin term amid rising discontent. Putin replaced defence minister Anatoly Serdyukov—who had been implementing an unpopular but Kremlin-backed military reform —with Moscow region governor and former emergencies minister Sergei Shoigu. Analysts said that the sacking of a top official who had enjoyed Mr Putin’s unconditional support was aimed at instilling fear in the elites as the Russian strongman struggles with the worst political crisis of his almost 13-year rule. Mr Putin said Mr Serdyukov, one of three people in Russia with access to nuclear launch codes, had been relieved of his duties so that a thorough investigation can proceed into a suspected US$100 million
property scam at a defence ministry holding company. “Taking into consideration the situation around the defence ministry I have made a decision to relieve defence minister Serdyukov of his post in order to create conditions for an objective investigation of all the issues,” Mr Putin said in televised remarks. A former furniture salesman who rose to head the Russian tax authority, Mr Serdyukov became the first civilian to serve as post-Soviet Russia’s defence minister when he was appointed in 2007. His lack of military credentials and controversial military reform programme earned him derision in the defence ministry as he tried to push through the army overhaul. In the past Mr Putin had repeatedly resisted calls from within the military for Mr Serdyukov to leave his post, even though he is believed to have made powerful enemies in the government and the Kremlin administration. Mr Serdyukov is the son-in-law of Viktor Zubkov, a former Russian
President Putin and Defence Minister Serdyukov in better times
deputy prime minister and a long-time Mr Putin ally. “There are no indispensable people for Putin,” a defence ministry source told AFP, adding that the military greeted Mr Serdyukov’s sacking with “moderate joy.” “This decision is very much in the spirit of Stalin,” Pavel Felgenhauer, a military commentator for opposition newspaper Novaya Gazeta, told AFP. “You need to keep the elites in fear.” “Putin has decided to turn Serdyukov into an example of the fight against ‘elite’ corruption,” he added, noting he did not rule out that
Mr Serdyukov would be arrested and eventually prosecuted. The Interfax news agency reported, citing the spokesman for the influential Investigative Committee, Vladimir Markin, that Mr Serdyukov might be questioned as part of the on-going probe. Russian investigators had on October 25 searched the offices of defence ministry holding company Rosoboronservis, in a highly unusual move after opening a criminal probe into a suspected US$100 million property scam. AFP