China FDI declines for fifth straight month
Japan vows to give IMF US$60 bln in loans
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Year I | Number 13 | April 18, 2012 Editor-in-chief | Tiago Azevedo Deputy editor-in-chief | José I. Duarte MOP $ 6.00 www.macaubusinessdaily.com
Apply brakes govt urges angry truckers
Mandatory database Galaxy Macau phase two in ‘comfort’ zone Galaxy Entertainment Group says it will be “guided by the government’s needs and what it’s comfortable with” in the on going development of its Cotai resort Galaxy Macau. The firm confirmed some preparatory land work is going on prior to phase two, but declined to give details of when construction might start. Page 2
Food law nears ‘sell by’ date A new food safety law will give Macau’s Civic and Municipal Affairs Bureau power to monitor and control any human food product sold in the city. The draft law was announced yesterday at the Executive Council. Medicine products, Chinese medicine or any medical material sold in traditional Chinese pharmacies will not be covered by the rules. Page 4
PROPERTY SCAM CLAMPDOWN P
roperty registry rules are being tightened in Macau to prevent frauds that have plagued some sections of the real estate market. The scams include developers selling property before construction and then not keeping to the dimensions promised to buyers; selling individual properties to multiple buyers, or simply taking deposits or fees for uncompleted properties and then running off with the money. Under the new rules announced yesterday, any sale in Macau of unfinished property will have to be added to a mandatory database within 30 days to prevent the unit from being sold to other buyers. Currently it’s common for the registration to take place only years after new developments have been completed, sold, and
people have moved in. An example is that residents first moved into the Nova City complex in Taipa in 2006 but in late 2010 the property registration was still “being processed by the government,” developer Shun Tak said at the time. Under a draft law on the road to the Legislative Assembly any developer that starts selling units before receiving proper authorisation will have its sales contracts declared void. The offending company might also have to pay a fine. “The fine will be proportional to the value of the property,” Legal Affairs Bureau director André Cheong Weng Chon said yesterday. Executive Council spokesperson Leong Heng Teng added: “At the moment we have nothing. Unfinished property is sold and bought without any rules. That’s very bad for the end-user.” Some develop-
ers fret the government will dally in approving so-called horizontal property registration, delaying sales. More on page 5 Brought to you by
HANG SENG INDEX 20700
20640
20580
20520
20460
20400
April 18
HSI - Movers Name
Hefty fines for heritage wreckers
Tycoons, state firm claim innocence over Ao link
Rules protecting Macau’s listed buildings are to be beefed up with fines of nearly US$2 million for anyone damaging or demolishing one. It’s part of a campaign to protect the city’s UNESCO World Heritage status. Every year tourists flock to Macau for its unique blend of European and Chinese architecture spending millions of patacas on non-gaming activities. Page 6
N
o crime was committed in the process that led to the concession of a plot near the Macau airport, the two high-profile Hong Kong businessmen named in the latest trial of disgraced former secretary for Transport and Public Works, Ao Man Long, said. However, both Joseph Lau Luen Heung and Steven Lo Kit Sing have confirmed they will be testifying in Mr Ao’s third trial. Meanwhile the local branch of state-owned contractor China Civil Engineering Construction has also denied bribing Mr Ao to get a public contract, laying the blame solely on “a former manager” who has already left the company. More on page 3
%Day
HENGAN INTL
2.00
CHINA MERCHANT
1.62
CHINA RES POWER
1.47
AIA GROUP LTD
1.30
CHINA RES ENTERP
1.10
ALUMINUM CORP-H
-1.60
CHINA RES LAND
-1.74
CHINA OVERSEAS
-1.84
CHINA CONST BA-H
-1.96
WANT WANT CHINA
-3.67
Source: Bloomberg
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2012-4-19
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22˚ 26˚
2012-4-20
22˚ 25˚
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business daily April 18, 2012
MACAU Photo by Manuel Cardoso
Galaxy preps Cotai phase two Funding from cash and operations likely but start date unconfirmed
Associate Editor
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alaxy Entertainment Group says it is doing “some preparatory land works” for phase two of its Galaxy Macau resort in Cotai. But the company declined to give details of when construction would start or how many gaming tables the casino component of phase two would contain. The main issue currently for new casino projects in Macau is not getting rights to bigger gaming areas but getting the tables they need to populate their casinos. That’s because of the government’s table cap policy. Galaxy Macau phase one was given an allocation of 450 tables when it opened in May last year. The main gaming floor at Galaxy Macau phase one occupies only a modest portion of the total development
- 39,000-square metres - around seven percent of the resort’s 550,000-sq metre space. It just seems dominant because it takes up a significant portion of the ground floor. When the VIP gaming areas are added to the calculation, gaming still accounts for under 10 percent of phase one floor space. But that space produces most of the resort’s revenue.
Engine room In mid-March Union Gaming Research estimated Galaxy’s 2012 gross gaming revenue would reach HK$50.4 billion generated by its flagship properties, Galaxy Macau and StarWorld on Macau peninsula. “We note that this implies a 16%
share of market-wide GGR based on 20 percent-plus market growth and adjusting for fair share dilution from new supply coming online beginning in April (Sands Cotai Central),” said Union Gaming. Bob Drake, Galaxy’s chief financial officer, is on record saying the company would not need to raise fresh equity to fund phase two. “We have no plans to raise new equity,” confirmed a Galaxy spokesman yesterday. “We have HK$7 billion cash in the bank, and we have HK$8 billion per annum generated by operations.” Phase one of Galaxy Macau, which opened in May last year, cost around HK$16.5 billion (US$2.13 billion at current exchange rates). Phase two is not expected to exceed that price tag. Francis Lui Yiu Tung, vice chairman of GEG, said recently Galaxy Macau’s second phase would double the property’s
size and add more non-gaming elements to it, including meetings and conventions facilities and more retail space. Unlike the Cotai projects proposed by MGM China, SJM Holdings and Wynn Macau, Galaxy already has its land concession rights for phase two of Galaxy Macau and future development phases. Galaxy’s land bank in Cotai covers 44 hectares. The company confirmed that the land is held by a subsidiary, Nova Galaxy Entretenimento Companhia Limitada, but said this was standard practice to enable gaming companies to form joint ventures with non-gaming service providers such as hotels. “It doesn’t mean we are currently intending to build apartments on the site. We’re guided by the government’s needs and what it’s comfortable with,’ explained the spokesman.
Loan bridges Ponte 16 mass appeal Phase three of casino resort includes mid-range shops and restaurants those on Cotai. Ponte 16, located at the Inner Harbour, is the nearest casino to the tourist hotspot of Macau’s UNESCO World Heritagelisted old town. Ponte 16 currently has a casino used mainly by mass-market customers from neighbouring Zhuhai on the Chinese mainland and from Macau. It has a five-star hotel under the Sofitel brand and also the MJ Gallery, displaying items once used by the singer Michael Jackson; in mainland China a popular and well-recognised artist. But Ponte 16 has been lacking other drivers of foot traffic including mid-range restaurants and shops. The plan was always to add these after some of the costs of the key casino and hotel portions had been paid down. Last year Ponte 16, which cost HK$3.3 billion in the first two phases, saw a positive increase in earnings before interest, taxation, depreciation and amortisation, of approximately 200 percent year-onyear, “We hope to have shops that can attract locals and visitors in the
Photo by Manuel Cardoso
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he owners of Macau casino resort Ponte 16 have signed bank loans worth more than MOP2.4 billion (US$300 million). The money will be used to fund phase three of the resort’s development - which was announced last year - and to refinance existing credit facilities and repay shareholders’ loans. The resort is a joint venture between Hong Kong-listed Success Universe Group and Macau casino operator Sociedade de Jogos de Macau, S.A and uses SJM’s gaming licence. Phase three is expected to cost HK$700 million and be ready by 2014. It will include a shopping mall, restaurants and 20 gaming tables spread across 40,000 square metres of new space. The gaming component is still to be approved by the government. Macau currently has a 5,500-table cap on the casino market until 2013, and thereafter table growth limited to three percent per year. The aim of the resort’s new phase says the management, is to boost the appeal of Ponte 16 as a destination resort in the manner of
Phase three is expected to cost HK$700 million and be ready by 2014
new shopping mall,” said Hoffman Ma Ho Man, Success Universe’s deputy chief executive. Mr Ma made world headlines in 2009 with a successful US$450,000 bid in New York for a rhinestoneencrusted white glove featured in Michael Jackson’s ‘moonwalk’ video. The item is now displayed in the MJ Gallery. The five-year loans to Pier 16 -
Property Development Limited, the entity that owns Ponte 16, are on a syndicated basis among Macau, mainland China and Hong Kong banks. Industrial and Commercial Bank of China (Macau) Limited, is acting as lead arranger. Other participants include The Bank of East Asia, Limited, and Banco Weng Hang, S.A. A.E.
April 18, 2012 business daily | 3
MACAU
HK tycoons plead innocence, say they are ready to testify Two high-profile businessmen refute charges of bribing Ao Man Long in return for the opportunity to develop land near airport Vítor Quintã vitorquinta@macaubusinessdaily.com
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wo Hong Kong businessmen named in the latest trial of the former secretary for Transport and Public Works, Ao Man Long, have rejected all charges of bribery involving the sale of a plot near the Macau’s airport. Both Joseph Lau Luen Hung and Steven Lo Kit Sing have confirmed they will testify in Ao’s third trial for passive corruption and money laundering, which resumes today. The public prosecutor’s indictment, read at the Court of Final Appeal on Monday, says Mr Lau and Mr Lo paid a bribe of 20 million patacas (US$2.5 million) to secure a 78,742-square-metre parcel of land. Mr Lau’s company, Chinese Estates Holdings Ltd., was suspended from trading in Hong Kong throughout most of yesterday’s trading day “pending release of an announcement regarding price-sensitive information of the company”. In an announcement to the Hong Kong Stock Exchange last night, the chief executive of Chinese Estates denied “the allegations in the Macau proceedings, which suggest he or his company might have made an unlawful advancement or
bribe to Mr Ao whatsoever”. Mr Lau also said he was not a co-defendant in the trial and had not been formally charged in either Hong Kong or Macau over the allegations mentioned in the indictment. Chinese Estates said business and operations would not be affected by the trial. The announcement does confirm that the billionaire – the fifth richest person in Hong Kong, according to Forbes magazine – was called by the Court of Final Appeal “to attend the hearing as a witness”. Mr Lo has also denied having breached any Macau law. “I have just been notified by Macau’s Court of Final Appeal, asking me
to be a witness in the case,” the chairman of BMA Investment and the South China Football Club told The South China Morning Post.
High level Both businessmen are members of the 1,193-strong election committee that voted in C.Y. Leung as Hong Kong’s chief executive-elect last month. The plot where Chinese Estates is building the La Scala residential development was originally granted to the Macau International Airport but later transferred to five private companies. The indictment says that in early 2005, Ao promised to grant the
Joseph Lau Luen Hung
Steven Lo Kit Sing
land to Mr Lo and Mr Lau, whom he had met through Ho Meng Fai, who was sentenced for corruption in an earlier trial. Moon Ocean, an offshore company registered in the British Virgin Islands and controlled by Mr Lo and Mr Lau, bid for concession of the plot through Jones Lang LaSalle. The company allegedly paid 200,000 patacas for a visit to the site and submitted the highest tender. The Public Prosecutor’s Office said the evaluation committee doubted the “legitimacy” of the bid and ruled that none of the three bids fulfilled the requirements. It was then that Ao allegedly intervened to ensure that Moon Ocean got the plot, according to the indictment. In return, one of his offshore companies received a 20-million-pataca cheque, the indictment adds. Mr Lo rejected claims that Moon Ocean won the bid due to Ao’s intervention. Also, in 2005, Chinese Estates paid HK$1 million to acquire a 70.01 percent interest in Moon Ocean. In March last year, the company bought the remaining 29.99 percent, its interim report showed.
CCECC shifts blame to former manager
China Civil Engineering Construction says it has yet to be notified of any charges stemming from Ao fraud trial
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he Macau branch of stateowned contractor China Civil Engineering Construction (CCECC) has denied bribing former top bureaucrat Ao Man Long to win a public contract to construct a building at the Zhuhai-Macau Cross-Border Industrial Park. A spokesperson from CCEECC (Macau) Companhia de Construção e Engenharia Civil China, Limitada told Business Daily the blame lay solely on “a former manager” whose surname is Wang. The executive has left the company and the spokesperson was unable to say whether he was currently in Macau.
The company allegedly paid Ao 4 million patacas (US$500,000) for preferential treatment in the tender process, according to the indictment read on Monday at the third trial of the former secretary for transport and public works. The trial, which resumes today, will most likely lead to another criminal case. But so far the company has not been notified of any charges nor have any of its executives been called to testify, the spokesperson added. Being named in the trial would perhaps bring “negative consequences” for the company, especially
when it comes to “reputation”. Asked about further penalties, the spokesperson said the firm had already been punished in the past by the government. He refused to make further comments. The indictment read on Monday by the president of the Court of Final Appeal and presiding judge Sam Hou Fai, said the company won a 136.7-million-pataca contract because it promised to paid Ao “two or three percent of the contract value”. The Public Prosecutor’s Office claims he received 4 million patacas in cash and detailed the
transaction in one of his so-called “friendship notebooks”. China Civil Engineering Construction is one of the biggest contractors in the mainland and in 2003 it merged with the second largest state-owned construction enterprise, China Railway Construction Corp. In December 2006, just days after Ao was arrested, the head of the Central Government’s Liaison Office in Macau, Bai Zhijian, said any mainland companies connected to the fraud scandal would be punished. V.Q.
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business daily April 18, 2012
macau
HOSPITALITY Visitors pop in, pop out
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ourism arrival statistics now distinguish in greater detail among various kinds of visitors. One thing the statistics reveal is a shift over the years in the relative importance of the city’s source markets for tourists. The main sources of arrivals are the mainland, Hong Kong and Taiwan, together accounting for about 90 percent of all visitors. The next most important source is South Korea, which accounts for fewer than 1.5 percent of all arrivals.
Mainland
HK
Taiwan
S. Korea
Japan
Malaysia
Other There are no big surprises in this chart, but the figures show an increasing dependence on the mainland market. The proportion of mainlanders among all visitors has increased, reaching almost 58 percent last year, five percentage points more than the year before. The proportion of visitors from Hong Kong and Taiwan has decreased. However, the mainland contingent includes many day trippers. And Hong Kong is another source of many visitors that stay for less than 24 hours. They do not make use of accommodation during their stay. The city’s stock of hotel rooms has increased considerably over the past few years and was further boosted last week when Sands Cotai Central opened. The trends suggest that keeping hotel occupancy rates high will require an additional effort to diversify the city’s tourist source markets.
Bill centralising food safety heads for legislature Draft law creates strong, supervisory role for Civic and Municipal Affairs Bureau to oversee food safety standards Tony Lai tony.lai@macaubusinessdaily.com
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he proposed food safety law, which gives power to the Civic and Municipal Affairs Bureau to supervise the manufacture of foodstuffs, is finally on its way to the Legislative Assembly. The draft law was announced yesterday in the Executive Council. Under the proposed law, the government bureau will be given the power to control the management and supervision of any food product – excluding medicines and traditional Chinese remedies or any other product sold in a Chinese pharmacy. When the law comes into force, the bureau will also have the right to inspect any food production site, apart from residents’ units, to inspect, warn the public and recall any food product deemed unsafe. But the draft law does not affect the reach of other government departments. Instead, it seeks to centralise power with the bureau. The bureau will become the “actual execution body” on food safety, and other government departments
should alert it when they find food safety violation, Legal Affairs Bureau director André Cheong Weng Chon said. Currently, the bureau is only responsible for food safety in markets, eateries and for hawkers. Food production and packages in industrial places are under the supervision of the Macau Economic Service. Under the existing legal framework, the Government Tourist Office is responsible for issuing permits and carrying out inspections at restaurants and bars.
Inspection centre Tam Vai Man, head of the Civic and Municipal Affairs Bureau, said the bureau will set up a food safety centre to monitor food products once the law is in effect. “Risk management, risk evaluation and information transmission” on food products are the three main aspects the centre has to work on, said Mr Tam.
He also said the food centre “will announce the standards [for each food product] in different phases,” according to the potential risks and the trend of the products. The new law also criminalises the production and commercialisation of harmful foodstuffs. The new provision acts as a complement to article 269 in Macau’s Criminal Code and has principal and additional penalties for related crimes. Mr Tam said the frequency of inspections by the food centre will be determined by the potential risks to residents. The centre also gets help from the council’s department of environment, hygiene and licensing, and department of food and animal inspection and control. The new centre will have up to 200 employees, Mr Tam said. The council has already recruited 20 staff and commenced their training. The proposed law will head to the Legislative Assembly and should be in force 90 days after it is published in the Official Gazette. Photo by Manuel Cardoso
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J.I.D
A new law to improve food safety standards is heading for approval in the legislature
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Sultan’s ex-wife conned by PA with gambling debts
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personal assistant to the ex-wife of the Sultan of Brunei stole jewels from her after building up gambling debts on trips to London and Macau a court heard. Fatimah Kumin Lim accompanied the Sultan’s former wife - Mariam Aziz - to casinos regularly, the High Court in London was told. Ms Lim stole diamonds worth more than £12million belonging to Ms Aziz and then sold them to pay off gambling debts, the hearing was told. She replaced the jewels with worthless replicas. Ms Aziz was married to the ruler of the oil-rich independent state on the island of Borneo from 1981 to 2003. She took civil action in the British courts for judgement against Ms Lim.
April 18, 2012 business daily | 5
MACAU
Draft rule bans flat sales lacking horizontal registration Proposal would help curb speculation and ‘unhealthy’ practices around the sale of unfinished buildings Vítor Quintã vitorquinta@macaubusinessdaily.com
Legislative Assembly. “There are many cases of people who have bought an apartment for which the horizontal property has yet to be registered,” the official told journalists yesterday.
Greater transparency
Photo by Manuel Cardoso
Mr Cheong said developers were worried that the government would take too long to approve horizontal property registration, delaying sales. He pledged there would be no administrative delays. If the law is approved by the Legislative Assembly and comes into effect, all previous contracts will remain valid. However, developers will have 90 days – or a full year for homeowners – to apply for horizontal property registration. This proposal was first announced in September 2010, with the Secretary for Transport and Public Works, Lau Si Io, pledging to complete it by the end of that year. Mr Leong did not comment on the delay. But he did acknowledge a legal
Sales of unfinished flats will be added to a database under a proposed law to prevent the unit from being sold to another buyer
D
evelopers will no longer be allowed to sell units before completing the horizontal property registration, according to a draft law that establishes rules for the sale of unfinished buildings for the first time. It is currently normal practice for the registration to take place years after the flats have been sold and the first people have moved in. For instance, the first residents moved into Nova City complex in Taipa in 2006 but in late 2010 the registration was still “being processed by the government”, developer Shun Tak had said at the time. The Executive Council has finished discussing the draft law. In its current form, the law would force all developers to seek authorisation from the Land, Public Works and Transport Bureau before selling flats or buildings still under construction. The bureau’s green light would depend on the project receiving a construction licence, completing the foundation, basements and ground floor, as well as horizontal property registration. If the developer starts selling units before receiving the authorisation, the transaction contracts will be void and the company might have
to pay a fine. “The fine will be proportional to the value of the property,” Legal Affairs Bureau director André Cheong Weng Chon said yesterday. Executive Council spokesperson Leong Heng Teng said: “At the moment we have nothing. Unfinished property is sold and bought without any rules. That’s very bad for the end-user.” But Mr Cheong downplayed the issue of horizontal property registration, which last year led the residents of three residential towers to submit a petition to the
90 days
For developers to apply for horizontal property registration
loophole: “In fact, there have unhealthy situations such as the repeated sale of the same property and projects that were left unfinished. And the only solution would be a prolonged lawsuit.” According to the draft law, any transaction contract on unfinished property will have to have a legal model and certified by a notary. It must include the usable area, the building characteristics and who is responsible for maintenance. In addition, any transaction must be recorded in a mandatory database within 30 days to prevent the unit from being sold to other buyers. On the other hand, a special procedure will be created to allow the developer to cancel the database record if the buyer misses the payments. If a real estate agency is involved in the sale of unfinished property, it must sign a mediation contract that stipulates any discounts or commissions. A copy of this contract must be sent to the Land, Public Works and Transport Bureau within five days.
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business daily April 18, 2012
macau
Law proposes MOP15m fine for wrecking heritage sites
Illusory drop in forex reserves
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he preliminary figures show that the foreign exchange reserves were 1.6 percent higher at the end of March than a month before. But compare the latest figure with the March 2011 figure, and you may be surprised. It seems the foreign exchange reserves are back to where they were in late 2008. In February this year the value of the foreign exchange reserves dropped to slightly less than 127 billion patacas, (US$15.9 billion) from more than 280 billion patacas. But these numbers are misleading.
Foreign Exchange Reserves 106 mop 300000 280000 260000 240000 220000 200000 180000 160000 140000 120000 100000
Nov-08
Mar-12
The statistical series was broken last month when the new legal regime governing the financial reserve was introduced. The reserve fund came into being in late January, taking with it a big chunk of assets previously accounted for in the foreign exchange reserves. In other words, the assets vanished from the foreign exchange reserves. They are now accounted for under the heading “other foreign assets”. A more accurate comparison requires further calculation. The Monetary Authority of Macau should provide an additional statistical series that would allow direct comparisons across longer periods. J.I.D
Proposed heritage law imposes large fines for damaging or destroying listed buildings; stricter rules for development in buffer zones Cláudia Aranda claudia.aranda@macaubusinessdaily.com
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bill presented to the Legislative Assembly would punish those guilty of demolishing a building listed as part of Macau’s cultural heritage with a fine of up to 15 million patacas (US$1.9 million). The proposed legislation would also prevent any further construction on the site of a historic building that has been illegally demolished. The only exception would be where an historic building needs to be renovated, in which case the work must be authorised by the Bureau of Land, Public Works and Transport. Defacing buildings of architectural interest, such as writing graffiti on them, would be punishable by a fine up to 100,000 patacas. The use of materials not authorised by the Cultural Institute in heritage buildings might lead to a fine of up to 4 million patacas. The Land, Public Works and Transport Bureau would have the power to stop any construction that might damage listed buildings, even if the work was being done in a buffer zone established to protect listed sites from the encroachment of new development. This provision might cover, for instance, construction of the 80-metre-high tower in Calçada do Gaio. Work was suspended four years ago after the government set height limits for buildings in the vicinity of the Guia Lighthouse. The developer and the government have yet to agree on whether to demolish the offending part of the unfinished building. The bill says a listed site may have a buffer zone “whenever that becomes essential for its defence and promotion”. Any construction in a buffer zone would require the permission of the Cultural Institute. The bill would require generic standards to be set for construction within a buffer zone. These standards do not form part of the legislation.
Photo by Manuel Cardoso
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Heavy fines under a proposed law will better protect the city’s listed architecture and lead to an intangible cultural heritage list
They would be set and enforced by Secretary for Social Affairs and Culture Cheong U after consulting a new advisory body, the Council of Cultural Heritage. The council would, among other things, give its opinion on heritage listings for buildings. The composition, organisation and functioning of the council would be defined by a subsequent bylaw. If passed into law, the bill would
formally create a list of “intangible cultural heritage” that will be compiled by the Cultural Institute. The list would include “oral traditions and forms of expression, including language” – perhaps even the Macanese dialect, Patuá. At present there is an informal list of six items of intangible cultural heritage in Macau, which are also on the mainland’s intangible cultural heritage list.
Weather Beijing 26/15o C Changchun 23/9o C
Harbin 25/9o C
Xian 25/8o C Shanghai 19/13o C Chengdu 22/15o C Kunming 26/12o C Haikou 30/24o C Sanya 32/27o C
Guangzhou 25/22o C
MACAU (16-21 April) Day
Temperature
Humidity
04/16
23/27o C
75/95 %
04/17
21/26o C
80/95 %
04/18
21/25o C
80/95 %
04/19
21/24o C
85/95 %
04/20
19/23o C
70/95 %
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18/25o C
50/85 %
Shenzhen 30/22o C
ASIA (today)
Hong Kong 29/23o C
Manila
Macau 22/26o C
TOKYO
Jacarta
33/26 C
30/26o C
20/10o C
32/25o C
Bangkok
SEOUL
K. lumpur
o
36/28 C o
SINGAPORE
20/10o C
19/11o C
taipei
25/22o C
April 18, 2012 business daily | 7
MACAU
Truck drivers shelve strike as talks with govt continue Drivers, govt reach compromise to tighten penalties against rogue truckers Cláudia Aranda claudia.aranda@macaubusinessdaily.com
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raffic is expected to get back to normal at the crossborder bridge between Cotai and Zuhai today, with striking
truck drivers likely to stop their blockade after agreeing to continue talks with the government. The drivers went on strike to press
More mainland tourists on the move to Macau
Cherry Lee ceci-lqq@macaubusinessdaily.com
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he mainland is set to become the world’s biggest source of tourists and Macau is a prime destination, according to a report released by the national tourism authority last week. The Annual Report of China Outbound Tourism Development 2012, released by the China National Tourism Administration and China Tourism Academy, said mainland tourists made 70 million trips across its borders last year, up by 22 percent from 2010. Macau was the second most popular overseas destination for mainland tourists last year, with 19.8 million visitors, the report says. The report forecasts 78 million overseas trips by mainland tourists this year, a 12-percent increase from last year. They are expected to spend US$80 billion (639.4 billion patacas) overseas this year, up from an estimated US$69 billion last year. “In the near future, the world’s largest source market of international trips will take shape in China,” Jiang Yiyi, director of China Tourism Academy’s International
Tourism Development Institute told the China Daily. “Domestic inflation and the appreciation of the yuan against the US dollar have worked together to strengthen the yuan’s purchasing power abroad. That has bolstered people’s willingness to travel.” According to Macau’s Statistics and Census Service, last year the city received almost 16.2 million mainland visitors - a 23.5-percent increase year-on-year. So far this year, the trend has continued. About 2.8 million mainland tourists have crossed the border, an increase of 14.7 percent. The opening of the Gongbei station on the Guangzhou-Zhuhai Intercity Railway, scheduled for later this year, is also expected to boost in visitor arrivals here, including arrivals form the mainland’s more distant provinces and autonomous regions. The percentage of tourists destined for Macau who speak no Cantonese will increase. According to data from last year’s census, less than half of Macau residents can speak Mandarin.
for the cancellation of the special driving permits that allow mainland truck drivers to cross into Macau. The drivers “have already accepted dialogue, which means that the door is open for negotiations”, said Transport Bureau head Wong Wan at a press conference yesterday. “We want to have a rational dialogue, to create more organised and constructive solutions that do not affect people’s lives.” However, the official said it would be impossible to accept the truck drivers’ primary demand and immediately cancel all special driving licences. “They should understand how difficult it is, as we have to consider the interests of the different parts involved and also the interests of the community,” he said. Lee In Leong, president of Associação de Transporte de Mercadorias Além Fronteiras - Macau – the truck drivers’ group that voted to launch the three-day strike – told Business Daily they were confident the government would give them concrete responses to their demands. But Mr Wong maintained the gov-
ernment must also meet the city’s broader needs. “We know that China is our major supplier. When we have to import products for daily consumption, we have to go to China. We cannot prevent the drivers from doing their job,” he said. Truck drivers here have accused mainland drivers of breaking a rule introduced by the Transport Bureau this year that restricts them to delivering cargo directly to one of the two destinations designated by the company they drive for. Mr Wong announced yesterday that the bureau had finished revising the relevant legislation. “We want to safeguard the employment opportunities and interests of the drivers and transport sector in Macau,” he said. He said that in 2005 and 2007, the bureau cancelled quotas for mainland drivers, which reduced truck movements across the border and led to a decline in the turnover of goods. The bureau also has to consider the interests of those who want to continue to have the special licence, he said.
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business daily April 18, 2012
GREATER CHINA
Taiwan stocks down, HTC’s shares tumble
InBrief People’s Daily to raise US$245 mln
Taiwan stocks were the worst performer in Asia yesterday, as HTC Corp fell on concerns over the replacement of its CFO
The online news portal of Chinese stateowned newspaper People’s Daily will raise up to 1.55 billion yuan (US$245.45 million) in its Shanghai initial public offering, almost triple its fundraising target, reflecting investor enthusiasm toward government-backed media despite a sluggish market. The website People.cn will sell 69.1 million shares at 20.00-22.50 yuan apiece, enabling it to raise 1.38 billion-1.55 billion yuan, the company said in an exchange filing yesterday. People.cn said earlier said it aimed to raise about 527 million yuan to fund expansion.
Key money rate eases, still high China’s short-term borrowing rates eased yesterday, with dealers citing relatively ample liquidity, but concern over the effect of annual corporate tax payments due in April and May kept the key seven-day repo rate at a high level. Traders said money conditions improved this week after the central bank refunded capital to banks that was previously set aside to meet reserve requirement changes. The benchmark seven-day bond repurchase rate fell to 3.7617 percent from 3.8061 percent but remained above 3.5 percent, signifying a relatively higher degree of caution.
HTC’s shares closed 6.2 percent down yesterday
T
aiwan stocks closed 1.86 percent lower yesterday, the worst performer in Asia, with HTC Corp losing 6.2 percent on concerns over its recovery following its replacement of its CFO and amid increased competition. The main TAIEX index fell 143.99 points to 7,585.87, after opening flat. Shares of HTC Corp fell after a change in its chief financial officer and the imminent launch of a new phone by arch rival Samsung Electronics raised concerns over the Taiwanese firm’s recovery. HTC has been losing market share to Samsung and Apple Inc in the cut-throat smartphone market as its products failed to excite consumers, and its results have lagged forecasts since the fourth quarter of last year.
“When a company changes its CFO, it often indicates that the company’s operations or financials have reached a bottleneck,” said Tom Tang, a vice president at Masterlink Investment Advisory in Taipei. HTC said in a statement on Monday it had appointed ChiaLin Chang, a former partner at Goldman Sachs in Taiwan who has also worked as an engineer at Motorola, as new chief financial officer, replacing Winston Yung. The company did not give reason for the change. Yung will take up a new role in corporate development, HTC said. Former contract maker HTC had a fairytale ride in 2010 and early 2011, when its shares more than tripled in the 14 months to April 2011 and sales grew fourfold in 1-1/2 years as consumers
HTC Corp (2498 TT)
unit: TWD 1400 1200 1000 800 600 400 200
18-Apr-11
17-Apr-12
snapped up its innovative phones with their distinctive large clock numerals. But it suffered an equally rapid fall from grace as its phones failed to keep up with Apple’s iPhones and Samsung’s Galaxy range. It shocked investors in November by slashing its earnings forecast, and its stock ended up as the worst performer among global smartphone companies last year, down 42 percent. The world’s No.5 smartphone maker reported a 70 percent tumble in net profit in the first quarter to T$4.464 billion (US$152 million), just below forecasts. It will hold a briefing for investors on its first-quarter results on April 24. HTC now faces another challenge after the earlier than expected roll-out of Samsung’s thirdgeneration flagship smartphone Galaxy S, which will leave HTC less opportunity to claw back market share. The Korean firm said on Monday it is set to launch the new gadget in London on May 3, a month earlier than an expected late May-early June timeline. Overall, car makers were the biggest laggards, down 5.37 percent, with flat panel makers down 3.72 percent. Electronics shares lost 2.35 percent, while banking shares slipped 1.2 percent. The Taiwan dollar was up by T$0.050 to trade at T$29.514. Foreign investors were net sellers on Monday, bringing their total selling to T$34.75 billion this month. Reuters
Trade performance to improve: ministry China’s Ministry of Commerce said yesterday it was confident of achieving its targeted rate of growth in international trade in 2012. Shen Danyang, the spokesman for the ministry, said China’s first quarter exports, although weak, were better than expected, and China’s trade in the second quarter are expected to be stronger. “We are still confident that we can achieve the trade growth target for this year,” Shen told a news conference. “But we are still confident of meeting our foreign trade development objectives, namely stabilising growth, promoting balance and adjusting its structure.”
Nonferrous Metal eyes US$500 mln IPO China Nonferrous Metal Mining (Group) plans to list its Zambia copper assets in Hong Kong, aiming to raise about US$500 million, the Chineselanguage Ming Pao Daily reported yesterday, citing market sources. The state-owned metals group is expected to launch the initial public offering as early as next week, the report said. CNMC, which delayed the listing plan late last year because of uncertain market conditions, is expected to cut the size of the deal to about half of its original plan, the newspaper said. CNMC received approval from the Hong Kong stock exchange late last year for a US$1 billion IPO, Thomson Reuters publication IFR reported.
April 18, 2012 business daily | 9
GREATER CHINA
China FDI signals overseas uptick Zhou Xin and Nick Edwards
nothing to suggest in recent data that equity investors should be positioning for a strong rebound or anything like a V-shaped recovery,” Thornton said.
External demand
The first quarter FDI inflow leaves China on course to surpass last year’s record
C
hina bagged foreign direct investment at a recordsetting pace in the first three months of 2012, but an easing in its monthly momentum and a difficult trade outlook will keep monetary policy poised to compensate for any dip in capital inflows. The first quarter inflow of US$29.8 billion leaves China on course to surpass 2011’s US$116 billion record, even though inflows compared with a year earlier have fallen for five successive months, Commerce Ministry data showed yesterday.
A 53 percent leap in inflows to US$11.8 billion in March from February - typical after the Lunar New Year - was a fresh sign that capital flow is firming enough to underpin money supply growth, following a US$124 billion firstquarter jump in foreign exchange reserves, providing policy stays on its current pro-growth bias. “I don’t think this changes anything for monetary policy,” Alistair Thornton, economist at IHS Global Insight in Beijing, told Reuters. China’s government has been finetuning economic policy settings
since the autumn of last year as the outlook for the global economy darkened, export growth sank and capital inflows - a core component of money supply - stalled. The People’s Bank of China (PBOC) has cut by 100 basis points the ratio of deposits banks are required to keep as reserves (RRR) to keep credit and money supply growth steady. The two moves added an estimated 800 billion yuan (US$127 billion) of lending capacity to the economy. “There are signs that the economy has reached a bottom, but there’s
China’s economic growth has slowed for five straight quarters. The annual growth rate in the first quarter eased to 8.1 percent from 8.9 percent in the previous three months, below an 8.3 percent consensus forecast in a Reuters poll. Reasonably strong FDI and a return to an overall trade surplus of US$5.35 billion in March heralds the prospect that a revival in global growth is lifting overseas demand just in time to compensate for a slowdown in the pace of domestic activity. Beijing targets 10 percent growth for exports and imports in 2012, but both goals were missed in March when imports rose 5.3 percent and exports increased 8.9 percent over a year earlier. Beijing targets US$120 billion in FDI inflows for each of the next four years, drawing up new rules to encourage foreign investment in strategic emerging industries, particularly those that bring new technology and know-how to China. The Q1 numbers are on course to achieve that. “For foreign investors, China remains attractive compared to other countries,” Zhao Hao, economist at ANZ Bank in Shanghai, said. China’s efforts to expand its own direct investments in foreign countries are surging. Outbound FDI rose 94.5 percent in the first quarter versus a year earlier to $16.55 billion. “In the future, the trend is that FDI inflows will pick up while outbound FDI will rise even faster, so the net inflows will fall,” Zhao said. Reuters
Haitong IPO tests demand for listings Haitong selling up to 1.229 billion new shares at an indicative price range of HK$10.48 to HK$11.18 each Elzio Barreto
H
aitong Securities Co Ltd, China’s No.2 brokerage by assets, launched yesterday an up to US$1.77 billion Hong Kong share offering, testing investor appetite as the market emerges from a rough patch that scuppered similar plans last year. At the top end of the indicative range the deal is set to be Asia’s biggest public offering so far this year and its outcome will be closely watched by a growing list of companies eager to tap equity capital markets in Asia’s top destination for IPOs. Last year’s market turmoil forced Haitong to pull
a similar-sized offer in December but an 11 percent rally in Hong Kong’s benchmark Hang Seng index since the beginning of the year has emboldened companies such as China Everbright Bank and construction giant Sany Heavy Industry Co Ltd to revive their listing plans. Others, like London-based high-end jeweller Graff Diamonds, have taken initial steps on planned listings, prompting investment bankers to bet on a booming second quarter of 2012. Still, the structure of the Haitong offer shows the company and its advisers
are taking no chances after December’s flop, setting aside about one-third of the deal for so-called cornerstone investors. That structure “definitely helps to ensure that the deal will go through,” said Rachel Li, an analyst at Macquarie Capital Securities in Hong Kong. “The pricing is very reasonable in an environment like this and you still have a short-term catalyst coming up,” she added, referring to an expected rebound in Chinese stock markets. The company is selling up to 1.229 billion new shares at an indicative price range of HK$10.48 to HK$11.18 each, it said in a securities filing. At the top of the range, the stock sale would total HK$13.74 billion (US$1.77 billion), making it the largest public offering in Asia Pacific so far this year and the largest in Hong Kong
Haitong launched yesterday an up to US$1.77 billion Hong Kong share offering
since the US$1.9 billion New China Life Insurance Co Ltd dual listing in the city and Shanghai in December. Haitong is offering the Hong Kong shares at a price to book ratio of 1.30 to 1.38 times, below 1.9 for its Shanghai listed shares and 1.5 for larger rival Citic Securities. Chinese brokerages in Shanghai trade at an average P/B
ratio of 2.19, according to Deutsche Bank estimates. Haitong is slated to price the offer on Friday, with shares beginning to trade in Hong Kong on April 27. According to a prospectus Haitong plans to use the proceeds to fund overseas takeovers and grow its margin finance, hedge fund and private equity businesses. Reuters
10 |
business daily April 18, 2012
ASIA
Bank of India cuts interest rates Move meant to boost the economy, follows business calls for policy easing
I
ndia’s central bank cut its main interest rates by 50 basis points yesterday - its first reduction in three years. Growth has been hurt by declining investment and moderating consumer spending after the Reserve Bank raised rates by a record 3.75 percentage points from March 2010 to October last year to fight inflation, undertaking the most aggressive monetary policy tightening drive of all major economies. Rates have been on hold since December last year. The stock markets cheered the rate Duvvuri Subbarao said cut, with the ofbenchmark 30-share the probability an Sensex index comprising blue-chips ‘implosion’ was low up 0.72 percent at 17,274.54 points. Business leaders had been clamouring for interest rates to be reduced to boost the
economy, which is expected by the government to grow 6.9 percent in the current year to March 31, its slowest pace since the 2008 global financial crisis. “This (rate cut) is a more strong and definitive move. We could however expect the bank to pause in rates from here on,” said Siddhartha Sanyal, chief India economist at Barclays Capital. The bank’s decision comes as India’s inflation climbed unexpectedly in March, data showed on Monday, fuelled by rises in food and fuel prices.
Price strains Uncertainty about global commodity prices, particularly crude oil, India’s fiscal shortfall, a “very high” current-account deficit and food
inflation are among risks to the outlook, the Reserve Bank said. Higher raw material costs and the rupee’s decline are leading companies including steel makers to raise prices. Steel Authority of India Ltd., the nation’s secondlargest producer, increased tariffs in April for the fourth time in three months. Prime Minister Manmohan Singh’s government, grappling with fiscal and trade gaps and depressed industrial output, faces one of the most challenging periods since taking office in 2004. In the budget on March 16, the administration announced record borrowing needs to plug a fiscal shortfall estimated at 5.1 percent of gross domestic product in 20122013. The current-account deficit
reached $19.6 billion in the three months through December, the worst quarterly performance on record. “From the perspective of vulnerabilities emerging from the fiscal and current account deficits, it is imperative for macroeconomic stability that administered prices of petroleum products are increased to reflect their true cost of production,” the Reserve Bank said. A current-account gap at 4.3 percent of gross domestic product in the fourth quarter of 2011 is unsustainable, it said. Policy reversals have further hindered Singh’s economic agenda, including the suspension of plans in December to open India’s retail industry to foreign companies. Bloomberg
Philippines urges China to bring shoal row to court
T
Singapore exports to China slowing down
S
ingapore exports to China showed a surprising year-on-year dip, highlighting the risk a slowing Chinese economy could have on the rest of Asia. While exports to Europe, the United States and Japan rose, shipments to China fell 0.9 percent from a year earlier due to a decline in semiconductor components, petrochemicals and food preparations. “The drop in exports to China, coupled with recent Chinese trade numbers, show the key risk to Asian growth is China”, said Selena Ling, head of treasury research at Oversea-Chinese Banking Corp, Southeast Asia’s second-largest lender by assets. China reported a lower-than-expected 5.3 percent rise in imports for March as its trade balance returned to surplus.
Beijing also said the economy grew at its slowest pace in nearly three years in the first quarter, raising concerns of softness in the world’s secondlargest economy. Singapore’s non-oil domestic exports fell unexpectedly by 4.3 percent in March, as a recovery in electronics, with a 2.8 percent rise, and a strong showing by pharmaceuticals, which soared 43 percent, were weighed down by a sharp drop in ship and oil rig sales. The latter tend to vary sharply from month to month. Singapore said last week its economy grew at an annualised and seasonally adjusted 9.9 percent quarter-on-quarter pace in January to March, beating economists’ forecasts and avoiding a technical recession. Reuters
he Philippines and China traded fresh accusations yesterday of illegal incursions in a disputed area of the South China Sea, while refusing to compromise on their territorial claims. The Philippines said it had lodged a new diplomatic protest, accusing Chinese vessels of harassing a Filipino-flagged archaeological research ship at Scarborough Shoal. The shoal is the same area where Chinese vessels last week blocked a Filipino warship from arresting the crews of eight Chinese fishing boats. “We lodged the protest yesterday afternoon. The harassment of the vessel is part of the continued intrusion and illegal activities being done by China in our area,” Department of Foreign Affairs spokesman Raul Hernandez told AFP. He said the ship was manned by scientists, including nine French nationals. The Philippines provided no other details about their research and when they specifically arrived in the area, but Hernandez said the boat was still there. “It is doing research, which is well within our rights,” he said. In return, Zhang Hua, spokesman for the Chinese embassy in Manila, insisted China owned Scarborough. “We urge the archaeological vessel to leave the area immediately,” Chang said in a statement. China claims all of the South China Sea as its own on historical grounds, even waters approaching the coasts of the Philippines and other Southeast Asian countries. Meanwhile, Foreign Affairs Secretary Albert del Rosario said that international law “would be the great equaliser” as he urged Beijing to raise the issue before the International Tribunal on the Law of the Sea (ITLOS). “In pursuing a peaceful settlement of the Scarborough Shoal issue, we fully intend to humbly invite our Chinese friends to join us in the International Tribunal on the Law of the Sea,” said Del Rosario. AFP
April 18, 2012 business daily | 11
ASIA
Japan vows US$60 bln to boost IMF firepower
InBrief
Japanese finance minister says hopes other nations to follow ahead of the G20 finance leaders’ gathering later this week Tetsushi Kajimoto
J
apan said yesterday it will provide US$60 billion in loans to the International Monetary Fund, becoming the first non-European nation to commit money to boost the fund’s financial firepower to contain the euro zone debt crisis. Finance Minister Jun Azumi said Japan hoped Tokyo’s contribution, which will be formally announced at a Group of 20 financial leaders’ meeting later this week, will encourage other countries to follow suit. Indeed, IMF Managing Director Christine Lagarde was quoted as saying she hoped to secure government agreements this week to raise the IMF’s funds by more than US$400 billion, about twothirds of the amount the Fund had said in January it would need. “I really hope this week we’ll reach the critical mass of more than US$400 billion. We are determined to do all we can,” she was quoted as telling Italy’s main financial newspaper Il Sole 24 Ore, though she also said finally sealing the funds might take a bit longer. Japan’s announcement comes ahead of the IMF and World Bank Spring Meeting and a G20 finance leaders’ gathering in Washington, which run from Friday to Sunday. “Following a series of euro zone’s policy responses, it is important to strengthen IMF funding and pave the way for ensuring an end to the crisis not only for the euro zone but also for Japan and Asian countries,” Azumi told a regular news conference after a cabinet meeting. “I am confident that many other countries will pledge contributions to the IMF,” he said.
Additional funds The IMF, which acts as a lender of last resort for governments, said in January it would need US$600 billion in new resources to help “innocent bystanders” who might be affected by economic and financial spillovers from Europe. Lagarde said last week the IMF might not need as much money as it had thought because economic risks had waned. G20 officials told Reuters the world’s major economies were likely to agree to provide between US$400 billion and US$500 billion.
Key Points
*
First non-European nation to commit new funds
*
Japan commitment comes ahead of IMF, G20 meetings
* *
IMF head hopes for more than US$400 bln in pledges this week Would boost IMF ability to deal with euro zone debt crisis
“I am grateful for Japan’s leadership and strong commitment to multilateralism, and I call on the broader fund membership to follow Japan’s lead,” Lagarde said after Japan’s pledge. Japan’s US$60 billion pledge takes overall commitments to
about US$310 billion. Eurozone countries have committed about US$200 billion and other European Union nations an additional US$50 billion.
Voting power The United States, heading towards a presidential election in November in which the country’s hefty budget deficit is a key topic, has said it won’t offer new funds. Canada has insisted it is not interested in contributing to a fund to bail out Europe, which it says has enough of its own resources to deal with the crisis. Other economies, including major emerging markets China, Brazil and Russia, have said they are willing to chip in but were looking to get more voting power in return. Azumi said he consulted with Chinese Vice Premier Wang Qishan on Monday and that there was no gap between the two countries on IMF funding. Azumi acknowledged it would be difficult to secure commitments from all countries this week towards boosting the IMF’s financial firepower and he underlined Japan’s long-standing position that Europe needed to do more to combat the debt crisis. “I don’t think Europe has made enough efforts on their own,” Azumi said. “I must urge them to beef up their firewall further. At the same time the world is in need of strengthening IMF lending, so Japan has been taking the lead in coordinating opinions with other countries concerned.” Reuters
Indonesia planning dollar bonds sale Indonesia is planning to sell 10-year dollar bonds, tapping global investors to spur economic growth for the second time this year after winning an investment-grade rating. The notes are being offered to investors to yield about 4.05 percent, according to a person familiar with the matter. The country is also marketing an increase to its existing 5.25 percent bonds due 2042, the person said. The additional notes are being offered at a yield of about 4.982 percent and that sale will raise at least US$500 million, according to the person.
Japan: no nuclear power after May 5 Japan will within weeks have no nuclear power for the first time in more than 40 years, after the trade minister said two reactors idled after the Fukushima disaster would not be back online before the last reactor currently operating is shut down. Trade Minister Yukio Edano signalled it would take at least several weeks before the government can give a final go-ahead to restarts, meaning Japan is set on May 6 to mark its first nuclear power-free day since 1970. “If we thoroughly go through the procedure, it would be (on or) after May 6 even if we could restart them,” Edano told a news conference.
Won turns weaker on dividends The South Korean won fell slightly yesterday, pressured by foreign investors repatriating dividends from local companies, which sparked short-covering by banks that pulled the local currency down further. The won was quoted at 1,140.5 against the dollar at the end of domestic trade, versus Monday’s close at 1,138.5. Trade bounced within a tight range until just before noon as stronger-than-expected U.S. retail sales data was offset by soaring Spanish debt costs, market players said.
Ruak elected E.Timor president
IMF Managing Director Christine Lagarde urged other members ‘to follow Japan’s lead’
Former guerrilla Taur Matan Ruak has won East Timor’s presidential run-off by a wide margin, preliminary results showed yesterday, in a pivotal year for the nation almost a decade after independence. Ruak won 61.23 percent of the vote, according to figures from the elections secretariat, which organised Monday’s polls. His challenger Francisco “Lu Olo” Guterres trailed far behind with 38.77 percent, according to the count. All the results have been counted but they must be examined by the court of appeals before they are officially announced.
12 |
business daily April 18, 2012
MARKETS Ticker NAME
Hang SENG INDEX Ticker NAME
PRICE
13
HUTCHISON WHAMPO
1398
IND & COMM BK-H
494
LI & FUNG LTD
PRICE
Day %
VOLUME
(H) 52W
(L) 52W
74.05
-0.8037508
6248500
93.1
53.6
5.17
0
284366202
6.75
3.46
16.98
1.071429
18052983
20.15
10.82
Day %
VOLUME
(H) 52W
(L) 52W
27.3
1.298701
26705717
29.9
19.84
66
MTR CORP
27.1
-0.5504587
1658009
28.9
22.45
3.7
-1.595745
16260000
7.74
3.2
17
NEW WORLD DEV
9.22
-0.9667025
7425919
13.061
6.13
1299
AIA GROUP LTD
2600
ALUMINUM CORP-H
3988
BANK OF CHINA-H
3.24
0.3095975
233167066
4.43
2.2
857
PETROCHINA CO-H
11.04
0.1814882
41882998
11.94
8.59
3328
BANK OF COMMUN-H
5.89
0
23534839
7.736
4.15
2318
PING AN INSURA-H
61.5
-0.5658852
9016784
87.9
37.35
23
BANK EAST ASIA
28.9
-0.3448276
916596
34.45
21.85
6
POWER ASSETS HOL
57.8
0.2601908
1835485
64.8
52
1880
BELLE INTERNATIO
14.52
-1.492537
11162034
17.54
11.38
83
SINO LAND CO
13.42
0.2989537
5421294
14.16
8.482
2388
BOC HONG KONG HO
293
CATHAY PAC AIR
1 1898
23.1
1.094092
23950073
25
14.24
16
SUN HUNG KAI PRO
13.44
0.4484305
4957990
20.15
11.8
19
SWIRE PACIFIC-A
CHEUNG KONG
99.8
-0.4985045
3425253
128.5
79.1
700
CHINA COAL ENE-H
8.66
0
13600000
11.66
6.59
322
939
CHINA CONST BA-H
5.99
-1.963993
417555534
7.55
4.41
2628
CHINA LIFE INS-H
20.4
-0.2444988
20638174
29.85
17.04
144
CHINA MERCHANT
25.15
1.616162
3481000
37.6
19
941
CHINA MOBILE
85.45
-0.1168907
8387508
87.5
68.05
688
CHINA OVERSEAS
16.02
-1.838235
19653713
17.86
9.99
386
CHINA PETROLEU-H
8.2
-0.36452
81712130
9.67
6.22
291
CHINA RES ENTERP
27.5
1.102941
3807810
35.5
24
1109
CHINA RES LAND
14.7
-1.737968
9317500
15.6
7.28
836
CHINA RES POWER
13.8
1.470588
3347500
16.2
10.82
1088
CHINA SHENHUA-H
33.35
0.6033183
12147581
40.2
27.1
762
CHINA UNICOM HON
13.24
1.068702
30066940
17.68
12.6
267
CITIC PACIFIC
12.86
-0.1552795
5100604
24.05
10.26
2
CLP HLDGS LTD
883
CNOOC LTD
66
-0.3021148
1532216
75.2
62.1
15.56
-0.6385696
52929790
20.1
11.2 7.52
1199
COSCO PAC LTD
10.96
0.7352941
6134055
17.16
330
ESPRIT HLDGS
15.94
-1.239157
14320229
34.8
7.55
101
HANG LUNG PROPER
28.85
0.3478261
6412430
35.7
20.85
11
HANG SENG BK
104.2
0.3853565
1061667
125
84.4
12
HENDERSON LAND D
45
-0.7717751
2047761
55.8
33.2
1044
HENGAN INTL
81.6
2
2617986
82
56.8
3
HONG KG CHINA GS
20.2
-0.7371007
2810384
20.65
16.68
388
HONG KONG EXCHNG
129.5
-1.069519
2303750
184.2
99.15
5
HSBC HLDGS PLC
67.1
0.2240478
14704542
85.35
56
Shanghai Shenzhen CSI 300 NAME
93.5
-1.058201
9133232
124.4
85.45
86.85
-0.6292906
992382
103.387
69.321
TENCENT HOLDINGS
229
-0.1743679
3101523
232.2
139.8
TINGYI HLDG CO
21.5
-0.6928406
5004964
26
17.84
151
WANT WANT CHINA
8.66
-3.670745
12438817
9.07
6.03
4
WHARF HLDG
42.6
0.2352941
2758887
59
33.15
INDEX 20562.31 52W (H) 24260.76 (L) 16170.35 MOVERS 45 2 1
IN FOCUS TW50 index 5450 5400 5350 5300 5250 17-Apr-2012
12-Apr-12
PRICE
DAY %
VOLUME
AGRICULTURAL-A
2.68
0.7518797
52758440
AIR CHINA LTD-A
6.13
-0.6482982
ALUMINUM CORP-A
6.76
-1.02489
NAME
NAME
5200
PRICE
DAY %
VOLUME
PRICE
DAY %
VOLUME
CHINA UNITED-A
4.24
-0.7025761
37419963
PANGANG GROUP -A
7.39
-4.025974
79899197
7541709
CHINA VANKE CO-A
8.37
-2.333722
46033870
PETROCHINA CO-A
9.79
0
8793356
9235343
CHINA YANGTZE-A
6.48
0.3095975
9987430
PING AN INSURA-A
38.88
-1.519757
11996398 17597064
ANGANG STEEL-A
4.38
0
10839176
CITIC SECURITI-A
12.78
-3.034901
91359061
POLY REAL ESTA-A
11.64
-2.919099
ANHUI CONCH-A
16.6
-3.150525
29056335
CSR CORP LTD -A
4.53
-0.2202643
30189715
QINGHAI SALT-A
33.6
0
4792618
BANK OF BEIJIN-A
9.76
-0.7121058
10485446
DAQIN RAILWAY -A
7.39
-0.2699055
37282309
SAIC MOTOR-A
15.25
-1.294498
16722546 18494431
BANK OF CHINA-A
3.05
0.3289474
19228854
DATANG INTL PO-A
5.04
1.002004
6823490
SANY HEAVY INDUS
13.71
-2.350427
BANK OF COMMUN-A
4.71
-0.2118644
30935569
DONGFANG ELECT-A
21.7
-1.273885
4250633
SHANDONG GOLD-MI
32.92
0
4485720
4.8
-0.2079002
25345659
EVERBRIG SEC -A
12.75
-2.968037
12631010
SHANG PUDONG-A
8.93
-1.434879
49466011
BAOSHAN IRON & S BBMG CORPORATI-A
8.31
-1.540284
15221815
GD MIDEA HOLDING
12.95
-1.670463
19099723
SHANGHAI ELECT-A
5.39
-1.100917
3553948
30.66
0
4571290
GD POWER DEVEL-A
2.55
-1.162791
25317666
SHANXI LU'AN -A
26.39
-2.977941
9388478
CHINA CITIC BK-A
4.33
-0.2304147
11007128
GF SECURITIES-A
30.1
-3.059581
14903152
SHANXI XINGHUA-A
71.05
0.5234861
975887
CHINA CNR CORP-A
4.21
-0.2369668
37778412
GREE ELECTRIC
21.05
-2.995392
8462631
SHANXI XISHAN-A
16.58
0
28750527
CHINA COAL ENE-A
9.06
-0.8752735
5495467
GUIZHOU PANJIA-A
29.45
-1.340034
3099043
SHENZ DVLP BK-A
15.99
-1.174289
11895119
CHINA CONST BA-A
4.68
-1.057082
29281988
HAITONG SECURI-A
9.89
-3.323558
94254670
7.29
-1.884253
30281160
BYD CO LTD -A
CHINA COSCO HO-A
5.13
-0.965251
10529563
CHINA CSSC HOL-A
32.47
-0.7337206
5718727
HANGZHOU HIKVI-A HEBEI IRON-A
CHINA EAST AIR-A
3.7
-1.856764
11487246
HENAN SHUAN-A
CHINA EVERBRIG-A
2.87
0.3496503
22842409
HUATAI SECURIT-A
43
-0.8988246
468494
3.04
-1.298701
24857829
70.02
0.01428367
1293093
9.6
-4.095904
23118166
SHENZEN OVERSE-A SINOVEL WIND-A
15.95
-0.931677
1812781
SUNING APPLIAN-A
10.66
0.1879699
64966479
TSINGTAO BREW-A
34.45
-0.691842
3355771
WEICHAI POWER-A
31.31
-1.07425
4417509 12611851
CHINA LIFE INS-A
16.83
-1.865889
9324767
HUAXIA BANK CO
10.94
0
11960639
WULIANGYE YIBIN
33.75
-1.689484
CHINA MERCH BK-A
11.85
-0.5872483
22383407
IND & COMM BK-A
4.34
-0.4587156
45788496
XINJIANG GUANG-A
25.1
0.4
9932893
CHINA MERCHANT-A
12.29
-4.357977
23069191
INDUSTRIAL BAN-A
13.17
-0.9029345
26372854
YANGQUAN COAL -A
18.36
-2.027748
10033620
CHINA MERCHANT-A
21.8
0
9636606
INNER MONG BAO-A
69.53
-0.4296148
18127444
YANTAI CHANGYU-A
94.34
-0.56914
581406
CHINA MINSHENG-A
6.35
-0.4702194
63753666
INNER MONG YIL-A
22.8
-1.596893
6709830
YANTAI WANHUA-A
13.88
0.1443001
8352098
6.48
-1.966717
20162787
INNER MONGOLIA-A
6.07
-2.411576
89532014
YANZHOU COAL-A
23.02
-1.286449
3622184
CHINA OILFIELD-A
CHINA NATIONAL-A
16.38
-3.647059
7901360
JIANGSU HENGRU-A
27.45
0.660066
3805467
YUNNAN BAIYAO-A
49.05
0.3272653
1531536
CHINA PACIFIC-A
19.48
-3.612073
18621014
JIANGSU YANGHE-A
157.95
0.01899696
509785
ZHONGJIN GOLD
22.68
0
16242932
7.23
-0.5502063
15600448
JIANGXI COPPER-A
24.45
-1.530407
6617138
ZIJIN MINING-A
4.22
-0.9389671
34571305
CHINA PETROLEU-A CHINA RAILWAY-A
2.57
-0.3875969
18194432
JINDUICHENG -A
13.25
-1.779096
10237103
CHINA RAILWAY-A
4.24
-0.4694836
16310761
JIZHONG ENERGY-A
18.76
-2.494802
7750692
CHINA SHENHUA-A
25.91
-1.744407
11412653
KWEICHOW MOUTA-A
CHINA SHIPBUIL-A
5.85
0
23170780
LUZHOU LAOJIAO-A
210.18
-1.245125
1787226
40.7
-3.095238
5627967
CHINA SHIPPING-A
3.14
2.28013
31266871
METALLURGICAL-A
2.57
-1.153846
21068999
CHINA SOUTHERN-A
4.56
-1.511879
28326339
NARI TECHNOLOG-A
19.6
0.102145
4978516
CHINA STATE -A
3.11
-1.269841
46058741
NINGBO PORT CO-A
2.6
1.5625
90566381
Hang SENG CHINA ENTREPRISE INDEX NAME
NAME
ZOOMLION HEAVY-A
9.53
-3.248731
40378767
ZTE CORP-A
16.1
-1.105651
11493425
INDEX 2574.044 52W (H) 3378.106 (L) 2254.567 MOVERS 189 96 15
PRICE
DAY %
VOLUME
PRICE
DAY %
VOLUME
CHINA LONGYUAN-H
6.08
0.6622517
4819000
PETROCHINA CO-H
11.04
0.1814882
41882998
CHINA MERCH BK-H
16.28
-0.4889976
12601202
PICC PROPERTY &
9.51
4.505495
37454554
CHINA MINSHENG-H
7.58
0
42590230
PING AN INSURA-H
61.5
-0.5658852
9016784
CHINA NATL BDG-H
10.36
-4.954128
82488507
SHANDONG WEIG-H
8.35
2.959309
4398000
NAME
PRICE
DAY %
VOLUME
AGRICULTURAL-H
3.49
-0.8522727
115741449
AIR CHINA LTD-H
5.12
-0.967118
9766953
CHINA OILFIELD-H
11.42
0.3514938
3660588
SINOPHARM-H
20.2
-1.941748
1735324
3.7
-1.595745
16260000
CHINA PACIFIC-H
24.75
-0.4024145
5805577
TSINGTAO BREW-H
46.25
0.5434783
1467314
ANHUI CONCH-H
24.7
-3.891051
24519003
CHINA PETROLEU-H
8.2
-0.36452
81712130
WEICHAI POWER-H
36.4
-0.4103967
3498643
BANK OF CHINA-H
3.24
0.3095975
233167066
CHINA RAIL CN-H
5.74
-0.6920415
10475000
YANZHOU COAL-H
16.72
-0.4761905
9821293
BANK OF COMMUN-H
5.89
0
23534839
CHINA RAIL GR-H
2.99
0.6734007
29381800
ZIJIN MINING-H
3.01
-1.633987
25746400
11.38
0.1760563
18047611
19.1
-1.444788
5078478
ALUMINUM CORP-H
21.55
-2.488688
3310092
CHINA SHENHUA-H
33.35
0.6033183
12147581
ZOOMLION HEAVY-H
CHINA CITIC BK-H
BYD CO LTD-H
4.75
-1.041667
28730223
CHINA TELECOM-H
4.15
-0.4796163
20202089
ZTE CORP-H
CHINA COAL ENE-H
8.66
0
13600000
DONGFENG MOTOR-H
14.38
-1.641587
7063052
CHINA COM CONS-H
7.37
-1.733333
12708883
GUANGZHOU AUTO-H
8
0.8827238
2665430
CHINA CONST BA-H
5.99
-1.963993
417555534
HUANENG POWER-H
4.31
0
10385101
CHINA COSCO HO-H
4.71
-1.875
16795600
IND & COMM BK-H
5.17
0
284366202
CHINA LIFE INS-H
20.4
-0.2444988
20638174
JIANGXI COPPER-H
18.28
-1.614639
12287197
NAME
PRICE DAY %
FTSE TAIWAN 50 INDEX NAME ACER INC
PRICE DAY %
Volume
Volume
INDEX 10794.6 52W (H) 13721.26 (L) 8058.58 MOVERS 36 4 0
NAME
FAR EASTERN NEW
33.15
-0.748503
3212278
SINOPAC FINANCIA
FAR EASTONE TELE
65
4.166667
12672538
SYNNEX TECH INTL
FIRST FINANCIAL
17 -0.2932551
11684335
TAIWAN CEMENT
FORMOSA CHEM & F
82.6 -0.6016847
5815574
TAIWAN COOPERATI
FORMOSA PETROCHE
85.6 -0.2331002
1846268
TAIWAN FERTILIZE
83.4
-1.301775
6915291
TAIWAN GLASS IND
36.55
-3.815789
15200089
ADVANCED SEMICON
28.9
-1.70068
8396792
FORMOSA PLASTIC
ASIA CEMENT CORP
35.9 -0.5540166
3046142
FOXCONN TECHNOLO
103.5
-5.045872
11046283
TAIWAN MOBILE CO
ASUSTEK COMPUTER
272 -0.9107468
3359559
FUBON FINANCIAL
31.65
-1.24805
19120823
TPK HOLDING CO L
50709518
AU OPTRONICS COR
14.25
-3.716216
59019110
HON HAI PRECISIO
110
-3.930131
CATCHER TECH
PRICE DAY % 9.81
Volume
-1.506024
10428592
72 -0.4149378
2858914
35.1
-1.404494
6841441
17.15
-1.152738
6246503
71.8
-2.445652
4276762
31.85 -0.1567398
2554151
89.2
0.1122334
425.5
-6.483516
4434808 5160363
TSMC
83.8
-1.295642
29502643
UNI-PRESIDENT
41.6 -0.8343266
9120837
UNITED MICROELEC
14.2 -0.3508772
23829637
203.5
-5.348837
17826694
HOTAI MOTOR CO
181
-6.701031
2493649
CATHAY FINANCIAL
31.1
-1.426307
15903091
HTC CORP
485
-6.189555
14925291
CHANG HWA BANK
16.05
-1.230769
10573440
HUA NAN FINANCIA
16.1
-1.226994
7345059
WISTRON CORP
41.95
-3.673938
16592759
CHENG SHIN RUBBE
69.4
-1.280228
7875994
LARGAN PRECISION
549
-3.684211
1577476
YUANTA FINANCIAL
14.25
-1.384083
32588475
CHIMEI INNOLUX C
13.5
-2.877698
26124382
LITE-ON TECHNOLO
33.9 -0.7320644
6185122
YULON MOTOR CO
49
-2.970297
9865195
CHINA DEVELOPMEN
7.97
-2.44798
32792454
MEDIATEK INC
274
-2.836879
9922716
CHINA STEEL CORP
28.8 -0.5181347
24093319
MEGA FINANCIAL H
21.5
0.2331002
27926951
CHINATRUST FINAN
17.8
-1.111111
31830971
NAN YA PLASTICS
59.8 -0.8291874
5668850
90 -0.3322259
19636259
PRESIDENT CHAIN
157.5 -0.3164557
1858858
CHUNGHWA TELECOM COMPAL ELECTRON
31.2
-6.586826
8105944
QUANTA COMPUTER
74.4
-1.32626
9280160
DELTA ELECT INC
86.4
-3.030303
5413792
SILICONWARE PREC
34.4
-1.149425
8994513
INDEX 5367.31 52W (H) 6265.48 (L) 4643.05 MOVERS 46 1 3
April 18, 2012 business daily | 13
MARKETS GAMING STOCKS - DAILY PERFORMANCE (Hong Kong Stock Exchange) gaLaXy eNTerTaINMeNT
Max 23.55
average 23.20
MeLCo CroWN eNTerTaINMeNT
Min 22.90
23.60
36.8
14.30
23.46
36.7
14.24
23.32
36.6
14.18
23.18
36.5
14.12
23.04
36.4
14.06
22.90
Last 23.25
Max 36.70
SaNDS CHINa LTD
Max 31.15
average 30.95
MgM CHINa HoLDINgS
average 36.60
Min 36.35
Last 36.45
36.3
SJM HoLDINgS LTD
Min 30.75
22.50
31.11
16.4
22.35
31.02
16.3
22.20
30.93
16.2
22.05
30.84
16.1
21.90 21.75
16.0 Max 16.36
average 16.17
Min 16.08
Last 16.30
Max 22.45
average 21.97
Min 21.80
Last 22.10
CURRENCY EXCHANGE RATES 10
MAJORS
8 6
ASIA PACIFIC
4 2
IDR PHP MYR THB KRW TWD HKD SGD
JPY
0
MACAU RELATED STOCKS PRICE
14.00
Last 14.10
16.5
PRICE
DAY %
YTD %
(H) 52W
(L) 52W
AUD
1.0347
-0.0483
1.3517
1.1081
0.9388
GBP
1.5954
0.7451
2.6443
1.6747
1.5235
CHF
0.914
0.9956
2.6368
0.9596
0.7071
EUR
1.3149
0.9675
1.4505
1.494
1.2624
JPY
80.62
0.1364
-4.6018
84.18
75.35
MOP
7.9942
-0.0238
0.0675
8.0449
7.9823
HKD
7.7606
-0.0129
0.0876
7.8113
7.7529
CNY
6.302
0.211
-0.1111
6.5391
6.2846
INR
51.525
0.296
2.9888
54.305
43.855
THB
30.79
0.0325
2.4683
31.96
29.63
SGD
1.2516
0
3.5954
1.3199
1.1992
TWD
29.508
0.0508
2.6129
30.716
28.48
PHP
42.65
0.3165
2.7902
44.35
41.879
IDR
9173
0.1635
-1.1338
9367
8458
AUDJPY
83.419
0.1906
-5.9783
89.601
72.057
EURCHF
1.20174
0.0383
1.2524
1.29736
1.00749
EURGBP
0.82419
-0.2184
1.1162
0.90835
0.82103
EURCNY
8.2757
-0.7443
-1.7098
9.6769
7.9674
EURMOP
10.5112
-0.9732
-1.5146
11.9509
10.1031
EURJPY
106.01
-0.8112
-5.99
121.84
97.04
HKDMOP
1.0301
-0.0097
0
1.0311
1.0288
Asian currencies - Three-month deposit rates
NAME
Min 14.02
31.20
30.75
Last 30.75
average 14.14
WyNN MaCaU LTD
IN FOCUS
INR CNY
Max 14.30
DAY % YTD %
(H) 52W
(L) 52W
VOLUME CRNCY
ARISTOCRAT LEISU
3.16
0.6369427
43.63636
3.25
1.88
2085805
CROWN LTD
8.94
1.131222
10.5068
9.2
7.45
3026818
AMAX HOLDINGS LT
0.087
0
0
0.147
0.06
1968000
BOC HONG KONG HO
23.1
1.094092
25.54348
25
14.24
23950073
CENTURY LEGEND
0.26
0
13.04348
0.43
0.204
0
CHEUK NANG HLDGS
3.18
1.273885
13.57143
4.79
2.3
185816
CHINA OVERSEAS
16.02
-1.838235
23.42065
17.86
9.99
19653713
CHINESE ESTATES
10.8
0
-13.6
14.88
10.2
0
CHOW TAI FOOK JE
11.94
-0.5
-14.22414
15.16
11.66
3810867
EMPEROR ENTERTAI
1.37
-1.438849
23.42342
2.09
0.97
910000
FUTURE BRIGHT
0.74
-2.631579
76.19048
0.81
0.3
17772000
GALAXY ENTERTAIN
23.25
-0.4282655
63.27247
23.7
8.69
18519045
HANG SENG BK
104.2
0.3853565
13.0765
125
84.4
1061667
HOPEWELL HLDGS
20.85
-0.7142857
4.984891
24.903
18.56
585521
HSBC HLDGS PLC
67.1
0.2240478
13.72881
85.35
56
14704542
HUTCHISON TELE H
3.32
1.219512
11.03679
3.6
2.13
3624070
LUK FOOK HLDGS I
21.45
-2.5
-20.84871
46.15
19.2
3097682
CROSSES
AUD HKD
World Stock MarketS - Indices COUNTRY
PRICE
DAY %
YTD %
(H) 52W
(L) 52W
DOW JONES INDUS. AVG
NAME
US
12921.41
0.5589283
5.760975
13297.11
10404.49
NASDAQ COMPOSITE INDEX
US
2988.4
-0.7614576
14.71125
3134.17
2298.89 4791.01
FTSE 100 INDEX
GB
5692.73
0.4667966
2.161596
6103.73
DAX INDEX
GE
6661.01
0.5406637
12.93005
7600.410156
4965.8
JN
9464.71
-0.06261456
11.93754
10255.15
8135.79
7.6
-1.041667
31.71577
10.76
4.3
4424039
NIKKEI 225
MGM CHINA HOLDIN
14.1
-0.8438819
46.99514
17.183
7.6
2081398
HANG SENG INDEX
HK
20562.31
-0.2344905
11.54321
24260.76953
16170.35
MIDLAND HOLDINGS
3.98
-2.45098
-1.485148
5.976
2.95
1486033
NEPTUNE GROUP
0.108
1.886792
-2.702704
0.158
0.08
250000
CSI 300 INDEX
CH
2541.883
-1.249435
8.361581
3378.106
2254.567
NEW WORLD DEV
9.22
-0.9667025
47.28434
13.061
6.13
7425919
TAIWAN TAIEX INDEX
TA
7585.87
-1.862776
7.265049
9099.75
6609.11
SANDS CHINA LTD
MELCO INTL DEVEL
30.75
-1.284109
40.09111
32.55
14.9
14948151
SHUN HO RESOURCE
1.2
0
20
1.32
0.82
0
SHUN TAK HOLDING
3.13
-0.6349206
22.30727
4.686
2.241
3614572
SJM HOLDINGS LTD
16.3
-0.4884005
28.54889
21
10.22
8121383
SMARTONE TELECOM
16.4
-0.6060606
22.02381
18.5
9.8
482530
WYNN MACAU LTD
22.1
-0.6741573
13.33333
27.48
14.807
6172600
ASIA ENTERTAINME
5.9
-1.666667
0.3401341
10.8692
4.72
37058
BALLY TECHNOLOGI
46.48
-0.1074576
17.49241
47.6
24.74
289053
BOC HONG KONG HO
2.94
0
22.64372
3.21
1.81
15525
GALAXY ENTERTAIN
2.98
2.405498
59.35829
3.02
1.08
17467
INTL GAME TECH
16.11
-1.528117
-6.337213
19.15
13.38
2053916
JONES LANG LASAL
78.65
-1.515152
28.38721
107.84
46.01
354045
LAS VEGAS SANDS
58.91
-3.044766
37.86567
62.09
36.08
8825582
MACAU CAPITAL IN
0.11
0
9.999998
0.11
0.11
500
14.185
-0.6652661
47.45322
16.15
7.05
6184087
MELCO CROWN-ADR MGM CHINA HOLDIN
1.9
0
59.43701
2.21314
1.00254
16000
MGM RESORTS INTE
13.72
-1.436782
31.54362
16.05
7.4
9154099
SHUFFLE MASTER
16.84
-0.9411765
43.686
18.77
7.35
457200
2.12
0.4739336
30.06135
2.64
1.28
8022
123.37
-1.681543
11.65717
165.4931
101.02
1370777
SJM HOLDINGS LTD WYNN RESORTS LTD
KOSPI INDEX
SK
1985.3
-0.3678555
8.739473
2231.47
1644.11
S&P/ASX 200 INDEX
AU
4288.786
-0.314922
5.724691
4930.6
3765.9
JAKARTA COMPOSITE INDEX
USD
ID
4148.92
0.05640792
8.553864
4232.923
3217.951
FTSE Bursa Malaysia KLCI
MA
1595.64
-0.1170572
4.240463
1609.33
1310.53
NZX ALL INDEX
NZ
776.516
0.1841079
6.401162
814.431
700.441 2695.06
PHILIPPINES ALL SHARE IX
PH
3420.91
0.226475
12.34368
3465.89
HSBC Dragon 300 Index Singapor
SI
579.36
-0.11
16.73
N/A
N/A
STOCK EXCH OF THAI INDEX
TH
1158.1
-0.9705417
12.95011
1214.31
843.69
HO CHI MINH STOCK INDEX
VN
472.84
0.9780891
34.5015
488.02
332.28
Laos Composite Index
LO
998.77
0.8563148
11.04107
1348.88
876.33
Shanghai Shenzhen Composite index is listing the biggest companies by market capitalization. All data supplied by Bloomberg unless otherwise indicated.
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CVV2/CVC2
14 |
business daily April 18, 2012
Opinion
North K rea’s NuclearParable
Jaswant Singh Former Indian finance minister, foreign minister and defense minister
O
ne of the great ironies of the twentieth century is that so significant a scientific advance as the ability to split the atom did not bring greater security. While North Korea has grabbed world headlines again with its failed launch of a longrange missile, and its threats to stage an underground nuclear test, Indians are protesting against the construction of nuclear power plants, owing to growing concerns about safety. The nuclear bomb was the first technological advance to follow from splitting the atom, and countries that could adopt it quickly did so, without fully understanding its destructive power. Today, the complex engineering capacity needed to produce nuclear weapons – skills restricted to a few countries through the 1970’s – is rather commonplace. The number of countries that can build such devices has multiplied, as has the destructive power of these weapons. This democratization of nuclear capacity has fueled anxiety about weapons proliferation among states – even a basket-case economy like North Korea has joined the club – and of “privatization” of weapons by terrorist groups. As a result, in October 2010, the United States and Russia – the world’s two largest nuclear powers – joined 80 other countries in the Global Initiative to Combat Nuclear Terrorism. In turn, retired US and Russian military and intelligence established the Elbe Group, named for the river where the two countries’ forces met
in the closing days of World War II. By May 2011, the group produced a “Joint Threat Assessment on Nuclear Terrorism,” which outlines the threat in graphic detail.
When, not if The report reflects a growing consensus that “terrorists could obtain nuclear materials and use them,” concluding gravely: “If current approaches toward eliminating the threat are not replaced with a sense of urgency and resolve, the question will become not if, but when, and on what scale, the first act of nuclear terrorism occurs.” After Osama bin Laden was killed in May 2011, an illusion took hold that, with al-Qaeda diminished, the threat of nuclear terrorism had receded as well. But terrorist groups abound in
The more nuclear capacity there is around the world, the greater the danger that terrorists will gain access to it
Pakistan, and the country is increasing its stockpile of fissile material faster than anyone else in the world. Indeed, Pakistan has begun producing tactical nuclear weapons, which must be kept dispersed, and are thus less secure. Seizures of illegal fissile material have declined since the 1990’s, when nuclear states disposed of roughly 480 kilograms of highly enriched uranium – a building block for a nuclear bomb. Kazakhstan led the way. Graham Allison of Harvard, an authority on nuclear terrorism, recounts that as assistant secretary of defense in the Clinton administration in early 1993, he received a phone call from William Courtney, the ambassador in Kazakhstan, who said that a stash of highly enriched uranium had been found in a warehouse in Almaty, secured with only a padlock. Reportedly, enough uranium to produce 35 or 40 bombs was retrieved. Do other forgotten stores lie around the globe? One site that has not been forgotten is North Korea. Having agreed in February to halt nuclear tests, uranium enrichment, and long-range-missile launches in exchange for food aid, the country nonetheless attempted to launch its most powerful rocket yet. Moreover, the launch’s failure may have made a third nuclear weapons test more likely.
Good intentions not enough There are two main obstacles to eradicating threats like those posed
by North Korea: the sense that a nuclear weapon is the trump card in defense of national sovereignty, and insufficient progress on nuclear disarmament by the world’s main nuclear states (the US, Russia, China, France, and the United Kingdom). Indeed, the US and Russia have merely repeated their commitment, made in 2010, to dispose of 68 tons of weapons-grade plutonium. When they will do so is unknown. But if they do not act, no one else will. Such inertia is unacceptable. Perhaps the newly restarted nuclear talks with Iran can break the ice and advance the process of global nuclear disarmament, but that seems a slim hope, at best. Even Brazil, once a staunch advocate for nuclear nonproliferation, now insists that all states have an inalienable right to enrich uranium for peaceful purposes. It is difficult to imagine where a catalyst for change will arise. A nuclear summit in Seoul last month generated little momentum to diminish the threat posed by rogue and unstable nuclear power. Roughly 40 countries are operating or constructing nuclear reactors to meet their energy needs. What if all wish to become nuclear weapons states? In fact, their intentions might not matter. The more nuclear capacity there is around the world, the greater the danger that terrorists’ will gain access to it. And now, I fear, we have reached the point at which the question is no longer whether that will happen, but when. ©Project Syndicate
editorial council Paulo A. Azevedo, Tiago Azevedo, Duncan Davidson, Emanuel Graça, Cris Jiang Founder & Publisher Paulo A. Azevedo | pazevedo@macaubusinessdaily.com Editor-in-Chief Tiago Azevedo DEputy Editor-in-Chief José I. Duarte Chief REPORTER Vitor Quintã Newsdesk Cláudia Aranda, Kristy Chan, Kelsey Wilhelm, Cherry Lee, Terina Cao, Tony Lai EDITION AT LARGE Michael Hoare Creative Director José Manuel Cardoso Designer Janne Louhikari Photography Carmo Correia, John Si, Manuel Cardoso Assistant to the publisher Laurentina da Silva | ltinas@macaubusinessdaily.com office manager Elsa Vong | elsav@macaubusinessdaily.com Agencies Bloomberg, Reuters, AFP, Xinhua, Lusa, Project Syndicate Printed in Macau by Welfare Ltd.
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April 18, 2012 business daily | 15
OPINION
Macau’s residential market remains positive Gregory Ku Jones Lang LaSalle’s Managing Director in Macau
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ince the government of Macau launched a series of policies such as the Special Stamp Duty and amended the transfer of title, from 0.5 percent to full pay of 3 percent stamp duty, to cool down the residential market in the second quarter of last year, residential market sentiment has slowed down with a significant drop in the number of residential sales transactions in the second half. Amidst the fall of residential sales volume due to subdued market sentiment, the average residential price remained stable – supported by the phenomenal economy and investors’ strong holding power. A number of real estate agency firms were pessimistic about the residential market. They expected that Macau’s residential price would drop this year. According to Jones Lang LaSalle’s quarterly research publication – Asia Pacific Property Digest, which provides a brief update on the property markets in key cities in the Asia-Pacific region, the outlook for Macau’s residential market remained positive. We believe that home sales will gradually pick up this year, with more investors eyeing long-term capital value growth and steady rental return. We
anticipate a modest growth record in capital values despite global economic uncertainty. The reasons behind the market outlook were: • low interest rate environment; • high inflation; • consecutive growth of residential rental value; • appreciation of the yuan; • limited physical residential supply in the next three years; and • most of the secondary market residential stocks were locked up by Special Stamp Duty. Reviewing Macau’s residential market in the first quarter, the market sentiment has, in fact, improved. It was attributed to long-term investment and upgrading demand. With the ground breaking of the LRT project in March and the opening of Sands Cotai Central this month, it is not surprising to see Macau’s economy remaining on its strong growth track in the short term despite more uncertainties with the external economic environment. For the remaining three quarters of the year, we expect Macau’s residential market to continue to be positive and maintain a healthy growth.
Macau ablaze: developing future servant leaders Zen Udani
Assistant Professor of Management, University of Macau
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ervant leaders are in big demand for both business and society. They are the type whose foremost concern is to serve people well with their proven competence, impeccable character and compelling vision for the common good. They are not perverted or intoxicated with lust for money, power and pleasure. They are genuine servants who uphold leadership in order to serve people better. Jeremie Kubicek, the author of “Leadership is Dead: How Influence is Reviving It”, asserts: “Leadership is dead when it is focused on you. “When you give it away, it comes alive … Leadership is alive when it is about other people. But it will die if you are consumed with yourself, in making
Business
wires Leading reports from Asia’s best business newspapers
yourself great at the expense of those that you lead.” Servant leadership sounds like an oxymoron, with no place in business and society. But such leaders exist and often shun the limelight. And they are effective to the extent that they are helpful, and not hurtful, to others. In order to serve truly, servant leaders know that they have to be useful to others. They have to care genuinely for people, help transform them into better people and continuously improve their plight. On the other hand, they would be rogue, stinking Machiavellian leaders if all they knew and did was to use other people like sacrificial pawns in a chess game.
Hong Kong’s recent electoral experience has shown how demanding the people are in their choice of a chief executive. The masses, who did not have a vote, wanted a chief executive that was competent, clean, and pro-people. Even the mass media were unforgiving in exposing the candidates’ personal lives to public scrutiny. Macau’s public and private sectors need leaders who are competent, honest and action-oriented visionaries. While the region’s human resources are scarce, potential servant leaders abound among young professionals and university students. I am fortunate to be engaged in the training and development of Macau’s future leaders as a teaching fellow of the Honours College of the University of Macau. The college’s vision is “to provide high-achieving undergraduates [with] the opportunities, knowledge and skills to achieve academic excellence, build multi-disciplinary experience and international perspective, and establish leadership and social responsibility”. It envisages: “Graduates of the college would be ready to enter internationally competitive graduate schools, pursue successful careers, lead fulfilling personal and civic lives and be future leaders for Macau and beyond.” The third batch of select students has devoted ample time and effort to learning and applying the principles of
servant leadership through a unique course entitled “Development of Leadership Skills”. Students had a hand in choosing the platform for honing their social and leadership skills, discovering and enhancing their talents, and serving people without expecting anything in return. One wrote in his blog after an outreach project on campus: “To be honest, I’ve never thought of the concept of the ‘Servant Leader’ and I did not recognise the importance of serving. But now, I have to say I really appreciate this kind of idea, which I think plays a crucial role in one’s leadership and personal development.” Another student conveyed a similar idea in her blog: “It is very true that when you are giving and serving others you are extremely happy. So the quote: ‘It is more blessed to give than receive.’ I feel especially happy when I’m doing things for others. It’s in those moments that I really forget myself and all my problems and I focus on others and making them happy.” Among the third and the previous batches of students, I’m optimistic about seeing future servant leaders of Macau making a positive difference in the fields of public administration, education, business, law, social sciences, the humanities and technology. I am hopeful and ablaze about the future of Macau’s youth. The best is yet to come.
The Straits Times Asahi Shimbun
Jakarta Globe
Taipei Times
A Japanese businessman resident in Singapore was ordered to pay US$1.9 million to Marina Bay Sands on Monday to cover his gambling debts. Shinichi Takami, 41, had disputed the casino’s ability to extend him credit and had already missed one court deadline to pay up. The report said the judgement against Mr Takami was the first issued by a Singapore court against a foreign high-roller.
Former Health Minister Siti Fadilah Supari has been named as a suspect in an inquiry into a corruption case being heard at Jakarta AntiCorruption Court. National Police chief detective Sutarman said Supari had been named in connection with a deal to buy health equipment in 2005 that allegedly cost 6.1 billion rupiah (US$665,000) in losses.
The opposition Democratic Progressive Party alleged on Monday that Taiwan Power Corp. had wasted millions of dollars building unnecessary reserve capacity. “If the reserve capacity rate had been reduced to 16 percent or lower, Taipower would be profitable, so that it wouldn’t have to raise electricity prices,” former premier Frank Hsieh told a press conference.
A survey by the newspaper found that the majority of Japanese oppose government moves to restart the reactors at the Oi nuclear power plant in Fukui Prefecture in the central region of Honshu. Meanwhile, Industry Minister Yukio Edano said all reactors would be offline temporarily from May 6, underscoring the difficulties the government faces in restarting the idle Fukui reactors.
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business daily April 18, 2012
CLOSING Goldman profits decline to US$2.1bln
EU voices concern over YPF seizure
Goldman Sachs Group Inc., the fifth-biggest U.S. bank by assets, said profit fell 23 percent as revenue from trading bonds, currencies and commodities lagged behind Citigroup Inc. and JPMorgan Chase & Co.First-quarter net income dropped to US$2.11 billion from US$2.74 billion a year earlier, the New York-based bank said yesterday in a statement. Earnings per share of US$3.92 beat the US$3.55 average estimate of 24 analysts surveyed by Bloomberg. The bank boosted its quarterly dividend 31 percent to 46 cents a share, the first increase since 2006.
EU officials expressed serious concern at Argentina’s plan to seize control of oil firm YPF from Spanish energy major Repsol while cautioning that current EU rules limited their possible responses. Argentine President Cristina Fernandez unveiled plans on Monday to nationalise a majority stake in YPF. “We expect Argentinian authorities to uphold their international commitments and obligations, in particular those resulting from a bilateral agreement on the protection on investments in Spain,” said European Commission President Jose Manuel Barroso.
earlier, as domestic demand drops and Europe’s debt woes curb business activity.
The IMF upgraded the forecast for Japan’s economy from 1.7 percent to 2.0 percent growth this year
Energy concerns
Asia to weather global storms: IMF Asia’s growth prospects have dimmed but the region will avoid a hard landing thanks to strong domestic demand and monetary flexibility Stephen Coates
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he International Monetary Fund’s World Economic Outlook report for 2012 said recessions in Europe and turmoil in the Middle East had hit Asia’s export markets, forcing downward revisions to regional growth forecasts. But it said resilient domestic demand in China, the world’s second biggest economy, and the capacity of Asian banks to fill
the liquidity gap left by constrained European lending would help growth recover in 2013. “Although the external environment is challenging, a soft landing is projected under the baseline forecast given robust domestic demand, favourable financial conditions and room for policy easing,” the report said. Regional growth would flatten out at six percent this
year, from 5.9 percent in 2011, before reviving to 6.5 percent in 2013, it said. Emerging Asia - excluding the advanced economies of Australia, Japan and New Zealand - would see growth fall 0.5 percent this year to 6.8 percent, before rising to 7.4 percent next year. Despite the blow to its export industries due to “spillovers from Europe”, China’s economy would post
IKEA into electronics with China venture
Photo by AFP/HO/TEPCO
Swedish furniture maker plans to launch a line of furniture with integrated connected television and sound systems Anna Ringstrom
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weden’s IKEA, the world’s largest furniture maker, is set to enter the consumer electronics market with products developed in co-operation with China-based TCL Multimedia, IKEA officials said. IKEA, known the world over for low-price, self-assembly flat-packed furniture, plans to launch a line of furniture with integrated connected television and sound systems in five European cities in June, throughout seven European countries this autumn, and in its remaining markets in the summer of 2013.
The televisions, wireless sound systems and built-in CD/DVD/Blu-ray players with this line of furniture is designed specifically for IKEA. “This is a large step for us. We will have an offer that is unique in the market,” IKEA’s living room chief Magnus Bondesson told Reuters. “We are launching a new concept where you in one place can buy your furniture and your electronics - designed for and matched with each other from start.” The furniture aims to solve the challenge of living room clutter of cords and remote controls, he said.
growth of more than eight percent in 2012 and 2013 thanks to “robust” domestic consumption and investment. The Fund said the Chinese economy was expected to grow by 8.2 percent this year - above the Chinese government’s target of 7.5 percent - and by 8.8 percent in 2013. Growth in China has slowed recently, falling to 8.1 percent in the first quarter from 9.7 percent a year
Tolga Oncu, sales chief at IKEA Sweden, said prices will start at around 6,500 Swedish crowns (US$960) for the simplest combination bench unit, television and sound system. “We’ve had very clear signals from customers that there is a need to be able to buy and integrate home electronics with the furniture in a simple way,” Oncu said. “With the way IKEA works, the way we can offer our products at the lowest prices on the market, we are convinced that this will be a really big success.” He declined to comment on costs or sales and profit outlook for the new range of furniture. The co-operation with TCL isn’t IKEA’s first venture outside the furniture sector. For a decade it has sold appliances developed in cooperation with Whirpool, and for the last three years it has sold appliances developed in cooperation with Electrolux. The foundation-owned group, with
The IMF upgraded its growth forecast for Japan’s economy from 1.7 percent to 2.0 percent growth this year, reversing a 0.7 percent decline in 2011, saying the country would receive a “timely boost” from spending on reconstruction following last year’s catastrophic earthquake and tsunami. But it said Japanese growth would fall to 1.75 percent in 2013. “The crisis in Europe and problems regarding energy supply are likely to dampen Japanese economic activity and exports,” the report said. The report had some tough words for emerging giant India, saying its slowdown from 7.2 percent growth in 2011 to a projected 6.9 percent this year had as much to do with “domestic factors” as external headwinds. It cited “policy uncertainty and supply bottlenecks” for deteriorating business sentiment in the South Asian power, along with higher interest rates and wobbly export markets. Thailand’s devastating floods were another domestic source of weakness for the region last year, cutting two percent off the country’s annual growth. The IMF warned of “significant downside risks” to the regional outlook this year, including a possible escalation in the eurozone debt crisis. A worst-case scenario in Europe had the potential to slash 1.75 percent off Japanese output, it said. AFP
The IMF upgraded the forecast for Japan’s economy from 1.7 percent to 2.0 percent growth this year
294 stores in 26 countries, grew net profit by 10 percent in its 2010/11 fiscal year to a record 2.97 billion euros (US$3.88 billion). TCL Multimedia sells televisions and other multimedia electronics under the brands TCL, ROWA, Thomson and RCA, according to its website. It reported an operating profit of 883 million Hong Kong dollars (US$113.81 million) in 2011. Reuters