MBdaily-Nov-21 by Business Daily

Year I Number 167 Wednesday November 21, 2012 MOP 6.00 Editor-in-chief: Tiago Azevedo Deputy editor-in-chief: José I. Duarte

Luxury consumer sales down q-on-q www.macaubusinessdaily.com

I SSN 2226-8294

Public payroll up 50 pct since 1999 T

he city’s public administration now employs more than 28,200 people – an all time record. Legislator Chan Meng Kam said yesterday the number of civil servants has increased by half since the 1999 handover from Portugal, with related public expenditure up four-fold. “But the service quality they provide is still not satisfactory,” he stated in comments to Secretary for Administration and Justice Florinda Chan during discussion of the 2013 Policy Address. Assembly member Ng Kuok Cheong blamed the growth in both civil servants and public bodies on “incompetent leaders”. But Ms Chan defended the government’s approach. She said the expansion – particularly in the security forces and among healthcare professionals – was due to “the city’s development and higher demand from the society”.

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ainland visitors’ hunger for some luxury goods dwindled quarter-on-quarter at the end of September – the first time it’s happened at that time of year since records began in 1998. It contributed to the 14 percent quarter-to-quarter drop in sales of watches and jewellery registered in data released by the Statistics and Census Service yesterday. Nonetheless the retail industry is starting from a healthy base, given the boom in tourists from the mainland seen since 2005. They made up 12.5 million of the 20.9 million visitors in the first nine months and their average spending was consistently the highest. But lower-value shopping at cosmetics retailers and pharmacies registered significant quarter-on-quarter improvement. Sales at the former rose by 16 percent to 351 million patacas (US$44 million) for the quarter while those at the latter went up 13 percent to 377 million patacas. Judged year-on-year total third quarter sales are still heading upward. More on page 3

HANG SENG INDEX

Immigration rules negate labour import reforms Migrant worker groups are said to be “gravely concerned” by loopholes in the planned update to the imported labour law. If enacted, and under a few exceptions, an imported worker would no longer have to leave Macau for six months if his or her contract were ended early. They would in theory have half a year to find a similar post. But unless there’s also a change in the immigration rules it will prove hard to do so, say the worker groups.

21500

21440

21380

21320

21260

21200

November 20

HSI - Movers Name

%Day

TENCENT HOLDINGS

2.28

NEW WORLD DEV

1.68

CNOOC LTD

1.25

Boutique casino’s gaming ‘not yet approved’ – source

CHINA RES ENTERP

1.16

HSBC HLDGS PLC

0.54

HANG LUNG PROPER

-1.30

WANT WANT CHINA

-1.48

COSCO PAC LTD

-1.86

The government has not yet given permission for gaming on land next to the One Oasis residential project on the CotaiColoane border, a person with knowledge of the situation told Business Daily yesterday. A Hong Kong Stock Exchange filing early yesterday said Paul Y. Engineering Group Ltd – a Hong Kong based construction and property management company – plans initially to raise HK$3.2 billion (US$400 million) for the US$800 million casino hotel scheme by issuing shares on the local exchange and by selling convertible bonds.

TINGYI HLDG CO

-3.70

CITIC PACIFIC

-4.33

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Source: Bloomberg

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business daily November 21, 2012

macau

Imported labour law changes prove tricky Legislators expect controversial aspects of amendments to the law on imported labour to delay their passage Stephanie Lai

sw.lai@macaubusinessdaily.com

orry in the Legislative Assembly that amendments to the law on imported labour would unfairly discriminate against non-residents is set to delay their passage until next year. If the amendments were enacted, an imported worker would no longer be obliged to leave Macau for six months if his contracted was ended early. But this would only be the case if the employer and employee agreed to end the contract early, or the employer unilaterally ended early it without due cause. In such circumstances the worker would have six months to take up employment of a similar kind. But he would have only 10 days to find such employment, because that is how long his temporary stay permit is valid for after his contract ends. Members of the assembly are aware of the difficulties this would mean for imported workers in this predicament. The chairman of the assembly’s third standing committee, Cheang Chi Keong, told reporters after the committee met yesterday behind closed doors that members would like to know the reason for the restrictions, particularly the restriction on the kind of employment a worker may take up.

Migrant worker groups are said to be ‘gravely concerned’ by amendments to the imported labour law

“As reflected in media reports and by labour rights groups, there are questions on why the employees have to be limited to the same job type,” said Mr Cheang. “We are concerned about the nondiscrimination principle as well, when we are talking about restrictions on the

mobility of imported labour,” he said. Members and the assembly’s legal advisers now need to check if the amendments comply with the domestic and international labour codes. The amendment bill had its first reading on November 7. Mr Cheang said he expected it to pass the committee stage next year. “I think we will only be able to deliver the opinion on the bill to the president in 2013,” he said. “After some discussion in the committee, we will have government representatives to explain the bill in December,” he said. Cecilia Ho Wing Yin, a lecturer in the social work programme at the Macao Polytechnic Institute, told Business Daily last week that migrant worker groups were “gravely concerned” by the amendments, which they saw as a form of punishment for those seeking to change jobs.

We are concerned about the non-discrimination principle as well, when we are talking about restrictions on the mobility of imported labour Cheang Chi Keong, chairman of the Legislative Assembly’s third standing

business as usual

Lack of respect Paulo A. Azevedo pazevedo@macaubusinessdaily.com

he silent reaction from the government to criticism by the Legislative Assembly’s vice-president, Ho Iat Seng, of the lack of detailed information that would allow its members to analyse the budget properly is deafening. The apparent indifference to criticism of the Executive Council’s role is even noisier. The criticism, however, is completely justified. The Executive Council seems to be on the path to becoming a “governing council”. It has apparently gone beyond its role of merely counselling the chief executive, and it is hard to understand why. Is it because the Executive Council mistrusts Chief Executive Fernando Chui Sai On’s leadership capabilities and those of his secretaries to the extent that it has elevated itself to play an effective political role? Or could it be because its members feel that their talents are so great that they were being wasted on simply giving advice? The conventional wisdom is that respect must be earned and the members of our Legislative Assembly, if they are not respected, have only themselves to blame. As Mr Ho recently pointed out, to have bills analysed by the Executive Council after the assembly has passed them is a clear sign that the government no longer bothers to pretend that it respects our legislators.

November 21, 2012 business daily | 3

MACAU

Tourism drop hits retailing As visitor numbers fall, so do sales of expensive goods such as jewellery and watches Vítor Quintã

vitorquinta@macaubusinessdaily.com

etail sales remain healthy even though they have dropped for a second consecutive quarter as the number of tourists continues to fall. Retailing turnover dropped slightly in the third quarter from the second, but the third quarter was still the industry’s third-best quarter for 12 years. Retail sales were worth 12.5 billion patacas (US$1.6 billion) in the third quarter, falling for a second consecutive quarter for the first time since 2005, according to Statistics and Census Service data released yesterday. The fall came as the number of visitors declined. Sales of expensive products in particular slumped. The value of sales of watches, clocks and jewellery dropped to 3.5 billion patacas, 14 percent less than in the second quarter. But watches and jewellery

remained the most valuable purchases, accounting for 28 percent of all retail sales. The value of goods sold by department stores rose by 6 percent, and accounted for 15 percent of all sales. Visitors seem to be turning to cheaper products such as cosmetics and sanitary goods. The value of sales of such products rose by 16 percent to 351 million patacas. The value of sales of goods found in pharmacies rose by 13 percent to 377 million patacas. Sa Sa International Holdings Ltd, a cosmetics retailer, said last week that the weakness of the euro and the U.S. dollar and the consequent relative cheapness of luxury goods in Europe and the United States was making Macau and Hong Kong less attractive for buyers of luxury brands.

Confident about Q4

14 % Q3 fall in sales of watches and jewellery

Sa Sa International said that even mainland Chinese visitors that stay overnight, who tend to buy more luxury goods, were bowing to “the desire … to save on purchases in a weaker economic environment”. Although retail sales were lower in the third quarter than in the two preceding quarters, they were by 13 percent higher than a year before. The sales figures for the third quarter mean average quarterly sales are now more than double what they were less than three years ago. Sales in the second quarter of this

Visitors are turning from pricey products to cheaper goods (Photo: Luís Almoster)

year were higher than in all of 2006. The value of retail sales for the first nine months of this year was 38.5 billion patacas, 24 percent more than a year before. The lion’s share of spending was by mainland tourists, who made up 12.5 million of the 20.9 million visitors in the first nine months and whose average spending was consistently the highest. Despite fears that the economic slowdown in the mainland will curb

sales, retailers here are confident that the fourth quarter will turn out to be a good one for business. About 82 percent of the retailers surveyed by the Statistics and Census Service expect sales to increase or stay steady in the fourth quarter. Only 18 percent expect sales to decline. About 69 percent of retailers expect prices to remain stable, while 26 percent expect prices to rise and 5 percent expect prices to fall.

‘We’re closely following’ Viva Macau case: U.S. No State Department probe on low-cost demise but diplomats have raised issue Vítor Quintã

vitorquinta@macaubusinessdaily.com

merican authorities are keeping a close eye on the outcome of the court case on the circumstances surrounding the demise of low-cost airline Viva Macau, the United States Consulate General to Hong Kong and Macau said. “We understand that Macau’s Court of Second Instance is in the process of reviewing the legal case filed by Viva Macau,” consulate spokesperson Scott Robinson told Business Daily. The airline claims Secretary for Transport and Public Works, Lau Si Io, issued an illegal administrative act telling flagshipcarrier Air Macau Co Ltd to

revoke the budget carrier’s subconcession contract in 2010. One of Viva Macau’s backers, private investment company MKW Capital Management LP, went even further, accusing Air Macau and jet fuel supplier Nam Kwong Group Co Ltd of conspiring to pull the carrier out of the sky. “This may be the first time the Macau government has expropriated the property of U.S. investors and citizens,” said a letter sent by Democrat representatives to Secretary of State Hillary Clinton. “The apparent expropriation of Viva Macau, one of the only low cost carriers in Asia flying U.S.made Boeing planes, may represent the beginning of anti-American policies,” it said. The complaints reached the United States’ State Department, who looked into it but “there

was no formal ‘investigation’ … into this matter,” Mr Robinson stressed. “But we have followed closely the legal case filed by Viva Macau in Macau,” the official said. “U.S. diplomats at the U.S. Consulate General in Hong Kong continue to raise the matter with Macau officials, including with Macau’s Chief Executive [Fernando Chui Sai On],” he emphasised. “In such meetings, we have stressed the importance of transparency and due process for U.S. investors in Macau,” Mr Robinson said. Meanwhile, the government’s Industrial and Commercial Development Fund has sued Viva Macau’s major shareholder, Hong Kong-based Eagle Airways Holdings Ltd, over an unpaid loan of 212 million patacas (US$26.6 million).

We have stressed the importance of transparency and due process for U.S. investors in Macau United States Consulate General to Hong Kong and Macau spokesperson

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business daily November 21, 2012

macau Portugal investment agency gets new officer

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Maria João Bonifácio will be the new director for Macau and Hong Kong of Portugal’s AICEP – Trade & Investment Agency, Rádio Macau reported yesterday, without quoting any sources. Ms Bonifácio had already worked in Macau in the 1990s as head of a Portuguese chamber of commerce and will return to the city by early 2013, it said. While working for Portugal’s investment agency, she has been stationed in the United States and Canada. Ms Bonifácio will replace Mariana Oom, who has been in Macau for two years.

HOSPITALITY Travelling abroad We usually focus on inflows of visitors. However, travel abroad by people living here is also a good source of income for Macau’s travel agencies. As the city becomes richer and more populous, and as it strengthens its economic ties with the outside world, the number of trips abroad that residents make increases. The Statistics and Census Service has only recently begun publishing figures for such trips. The oldest are from the beginning of last year, so the figures available do not permit analysis in depth. But some features stand out.

Legislators query massive increase in public servants Administration shrugs off criticism – claims expansion due to society’s needs Tony Lai

tony.lai@macaubusinessdaily.com

Travel agents arranged about 910,000 trips abroad for residents last year, either on package tours or made-to-order tours. That makes almost two trips per inhabitant. It is a big figure, assuming that residents do not use travel agents to arrange day trips to Hong Kong or Zhuhai or surrounding areas. The number of trips abroad arranged for residents by travel agents in the first nine months of this year has already exceeded the total for last year. If the present trend continues, this year’s figure could be more than 40 percent higher than last year’s. Usually, between two-thirds and three-quarters of all trips abroad arranged for residents by travel agents are made-to-order tours. But an increasing proportion of trips abroad are made on package tours. In the second and third quarters together, the number of trips abroad made on package tours was almost 75 percent higher than in the corresponding period last year. J.I.D.

ith the current number of civil servants already at more than 28,200, legislators are concerned about the public payroll’s “continuous expansion” and how much it is costing the public purse. Legislator Chan Meng Kam raised the issue yesterday with Secretary for Administration and Justice, Florinda Chan during discussion of the 2013 Policy Address. “The number of civil servants has increased by half since the [1999] handover and the related public expenditure has been raised four-fold but the service quality they provide is still not satisfactory,” he said. There were around 18,000 public workers in 1999. Assembly member Ng Kuok Cheong blamed this growth in both civil servants and public bodies on “incompetent leaders”. Fellow legislator José Chui Sai Peng asked: “Will the government regulate the increase of public workers in the next 10 years, like the policy on Macau’s population which is now undergoing consultation?” He added a better plan on human resources in the public sector could help in easing the staff shortages experienced by small- and medium-sized enterprises. Ms Chan told the assembly the government had plans to address the

matter but did not reveal any details. She explained the expansion, particularly in security forces and healthcare professionals, was due to “the city’s development and higher demand from the society”.

Accountability pledge “We only recruit new blood for civil staff when we see such need but not for the sake of expansion,” Ms Chan argued. The civil servants only account for 4.9 percent for the city’s population of 576,700, a ratio similar to the one in Hong Kong, the secretary claimed. She added spending on the public payroll this year – 12.6 billion patacas (US$1.58 billion) – only accounts for 17.2 percent of the overall government budget compared to 20.9 percent last year. The government also pledged to continue providing training for employees to raise their service standards, as well as introducing a performance evaluation mechanism for those in leading positions. Civil servants’ performance will be assessed based on how effective they are at executing the budget and policies assigned to their departments, Ms Chan said. She hopes this can raise the effectiveness of the government policies and increase officials’ accountability.

Ms Chan also said she received a report from the special committee created in 2011 on civil servants’ wages, which “reached a consensus to raise the salaries of public workers next year”. “We will draft a suggestion to the chief executive after analysing the report,” she said, adding the adjustment will be based on four factors – the situation of public finances, the inflation rate, the salary trend in the private sector and society’s response. But the government has yet to decide on the extent of the salary hike, the secretary added.

74.3 %

Year-on-year rise in trips abroad on package tours in Q3

Missing legislative plan Legislators slammed the government for, unlike in the past two years, not providing a timetable on the drafting of law proposals for next year. Secretary for Administration and Justice, Florinda Chan told the Legislative Assembly yesterday this arrangement was made because the government hopes the assembly could put more effort in reviewing the 10 pending laws before next year’s legislative election. But she added the administration would still pass new bills to the assembly for discussion after communicating with top legislator Lau Cheok Va. Legislators were also concerned about the progress of some bills listed in this year’s agenda but that have yet to be submitted to the assembly, such as laws on domestic violence and urban planning. Ms Chan assured they would put out the bills as soon as they were ready but admitted “there is room for improvement in the legislative works”.

T.L.

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November 21, 2012 business daily | 5

MACAU Photo by Manuel Cardoso

land concession from the Macau government. But according to our source a so-called ‘service provider agreement’ – whereby a project can use the gaming rights of an existing concessionaire or sub-concessionaire – “has not yet been approved”.

Important acquisition

Boutique casino for Cotai ‘not yet approved’ Developer plans to raise US$800 million for the project Tiago Azevedo

tiago.azevedo@macaubusinessdaily.com

he government has not yet given permission for gaming on land next to the One Oasis residential project on the Cotai-Coloane border, a person with knowledge of the situation told Business Daily yesterday. A Hong Kong Stock Exchange filing early yesterday said Paul Y. Engineering Group Ltd – a Hong Kong based construction and property management company – plans initially

to raise HK$3.2 billion (US$400 million) for the US$800 million casino hotel scheme by issuing shares on the local exchange and by selling convertible bonds. Business Daily understands it is doing so on the basis that approval for gaming on the site had previously been granted by Macau’s first chief executive Edmund Ho Hau Wa before he left office in 2009 after serving two terms. In 2008, Mr Ho announced a freeze on new land for casinos

but pledged to honour existing agreements with operators. “During that time there were several applications sent to the government, including one for a casino on that land [adjacent to the One Oasis residential project],” a well-placed source told Business Daily yesterday. “But the government did not reply to those applications,” the person added. The project already has access to land and will not rely on a

The Hong Kong filing said Paul Y. Engineering plans to acquire land “on the Cotai Strip in Macau, on which it is proposed to construct and operate a five-star hotel with ancillary retail and entertainment facilities (including but not limited to gaming).” The filing added that PYE was to acquire a private firm called Falloncroft that would indirectly own New Concordia, another private company with “an irrevocable and exclusive power of attorney in respect of the land, located on the Cotai Strip in Macau”. This was a reference to the plot next to One Oasis. When Business Daily approached Francis Tam Pak Yuen, Secretary for Economy and Finance, at an unrelated event yesterday to ask about the status of gaming permission for the site, his reply was ambiguous. “They said [they could start the project]. I think the key is the ‘they said’,” Mr Tam stated, evading any further questions. If all does go to plan, the land and the gaming project asset are to be injected into Hong Kong-listed PYE in a “very substantial acquisition”, added the filing. Two of the principals of the project – former banker Stephen Hung and private equity financier Peter Coker are then to become cochairmen of the PYE entity. With Stephanie Lai

Grand Prix ‘helps casinos rebound’ A smooth leadership transition in China also boosts odds of VIP gaming acceleration: analyst Vítor Quintã

vitorquinta@macaubusinessdaily.com

ith more visitors coming to the city during the recent Macau Grand Prix, some analysts have raised their expectations for November’s gaming revenue growth. Up to November 18 Macau’s table-only gross gaming revenue reached 14.4 billion patacas (US$1.8 billion), Sterne Agee analyst David Bain, based in New York, wrote in a note to investors on November 19, citing checks. Also after carrying out checks, Wells Fargo analyst Cameron McKnight says month-to-date gaming revenue was up by 11 percent year-on-year. This week’s casino revenue results benefited from the Macau Grand Prix, Mr Bain said, which brought 72,000 people to the stands, up by 10.8 percent from last year. Even though visitor figures for the four-day event have yet to be released, the Secretary for Social Affairs and Culture, Cheong U, stated this year’s Grand Prix saw a year-on-year “allaround increase.” Sterne Agee’s note contradicts Hong Kong-based Nomura analysts, who last week wrote that the Grand Prix was likely to have a negative impact on VIP casino gaming revenue, as high-end players tend to steer clear of the Grand Prix. Kenneth Fong of J.P. Morgan in Hong Kong also said the Grand Prix weekend primarily

tends to benefit the city’s nongaming service industries.

Slot revenue When the revenue from slot machines is added to the November revenue numbers, Mr Bain expects gaming revenue to reach 24.9 billion patacas this month, up by eight percent year-on-year – higher than the analyst’s earlier estimate of six percent. Wells Fargo also raised its estimate for November casino revenue from six to eight percent year-on-year to seven to nine percent. J.P. Morgan said according to its channel checks up to Sunday, Macau table gaming revenue was on course for nine percent year-on-year expansion in November.

MOP14.4 bln Gaming revenue up to November 18: Sterne Agee

“Macau market-wide gaming revenue is approximately 15.18 billion patacas till November 18 (9.2 billion patacas till November 11),” wrote Mr Fong. “This represents a daily run rate of 854 million patacas for the past week, which is high despite the Grand Prix in Macau that deterred some VIP players from travelling. If we assume the daily revenue for the rest of the month stays at 830 million patacas, the full month should end at around 25.1 billion patacas or nine percent year-on-year growth.”

Smooth transition With the opening phase of China’s leadership transition concluding apparently without problems, analysts appear generally confident about the medium-term prospects for the territory’s casinos. “Mainland China’s orderly transition of power reduces political and other uncertainty,” Mr Bain wrote. The analyst does not expect major fiscal adjustments such as substantial monetary easing or stimulus in China but says there is potential for some policy adjustments to ensure the country’s economic growth picks up. “Combined with the potential for a rebounding China GDP [gross domestic product], we believe VIP GGR [gross gaming revenue] trends may begin to show acceleration,” he added. Sterne Agee downplayed the

Casinos benefited from Macau Grand Prix – New York analyst

potential impact of the upcoming prison release of notorious gangster Wan Kuok Koi, better known by his nickname ‘Broken Tooth Koi’, on December 2. “We anticipate headline risk, with little substantive disruption,” Mr Bain wrote. “Our understanding is that authorities will be tightly monitoring Mr Wan after his long prison stay.” Hotels and casinos in Macau have been asked to inform local police of any “significant bookings” for parties or gatherings involving 100-plus guests to be held before year-end, Business Daily has been told. The reason is either to prevent any homecoming celebration for Mr Wan or to allow official monitoring of it. With Michael Grimes

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business daily November 21, 2012

macau Brought to you by

Real surprise The composition of the banking industryâ&#x20AC;&#x2122;s workforce is changing. The number of directors and managers is growing faster than the number of any other kind of employee. In other words, the increase is fastest among the ranks of those employees with higher qualifications and greater responsibility. Information about employment in banking is not sufficiently detailed before the first quarter of 2011 for us to track precisely the changes in the workforce before then, but enough information is available to give us some sense of the changes since 2000. Let us compare the data for the third quarters of 2000, 2004, 2008 and 2012, which are important milestones in the evolution of the economy.

Housing construction starts plunge S

tarts were made on building only 1,059 new private homes in the first nine months of this year, one-third fewer than a year before, official data show. The Statistics and Census Service announced last week that in the third quarter starts were made on only 373 homes, 75 percent fewer

than a year before. However, the third-quarter figure is higher than that for the first quarter, when only 28 housing starts were made. The number of new homes coming through the pipeline increased in the first nine months. Over 26,000 homes were in the process of being built, 30 percent

more than a year before. The number of homes completed was 2,404, three times the number homes completed a year before. The average daily wage of construction workers was 556 patacas (US$69.50) in the third quarter, 4 patacas more than in the second but 13 patacas less than a year before. The average daily wage of skilled construction workers was 562 patacas in the third quarter and the average daily wage of skilled construction workers was 364 patacas, the wage differential being about the same as it was in the second quarter. T.L.

Urban planning legislation in the pipeline, says govt The long-awaited bill on urban planning is due to reach the Legislative Assembly soon Tony Lai

tony.lai@macaubusinessdaily.com

The number of people employed in banking grew by 47 percent, from 3,611 to 5,317. However, this growth was not smooth. In the first four years the number decreased slightly. The biggest increase happened between 2004 and 2008, when the number grew by 35 percent. Over the whole period the average earnings of people employed in banking rose by 71 percent. This rise was the result both of increases in pay and the changes in the composition of the workforce. The biggest increase in real average earnings of people employed in banking took place between 2000 and 2004. Real average earnings are average earnings adjusted to reflect the erosion of their purchasing power caused by inflation. The deflationary pressure of that era seems to have done more for the purchasing power of people employed in banking than subsequent pay rises, which were swiftly devalued by inflation. J.I.D.

21.7 %

Rise in the real average earnings of bank employees in the year ended September

There were fewer than 1,100 housing starts in the first nine months

he government intends the long-awaited urban planning bill to reach the Legislative Assembly this year, but has given no schedule for passing regulations on the accreditation of urban planning professionals. Land, Public Works and Transport Bureau director Jaime Carion said in a written reply this month to an inquiry by assembly member Ng Kuok Cheong that the urban planning bill was being discussed by the Executive Council and that the government was striving to start the legislative process in the fourth quarter of this year. The bill is due to reach the

assembly this year, according to the governmentâ&#x20AC;&#x2122;s legislative programme. The government spent four years discussing the bill before inviting public comment on it April. Assembly president Lau Cheok Va said in September that the government must focus on passing important legislation such as the urban planning bill before the assembly is dissolved for elections due late next year. The government has given no schedule for passing regulations for the accreditation of urban planners, civil engineers and architects. Mr Ng said in his inquiry, made in May, that the urban planning bill

should provide for the establishment of an advisory committee composed of professionals to deal with core planning issues. But he also expressed doubt about the effectiveness of such a committee in the absence of a system for the accreditation of urban planning professionals. Mr Carion said that the accreditation regulations had been sent to the Executive Council, but that the council had sent them back for revision. He failed to say when the accreditation regulations might be ready.

We run fast and forward... just like them.

November 21, 2012 business daily | 7

MACAU

Paulina Alves dismissal not revenge, says Tam Changes in the function of the industrial parks development company meant it required a new chief, says government official Stephanie Lai

sw.lai@macaubusinessdaily.com

One-stop MICE website launched

The head of the industrial parks development company was removed as part of a ‘job rearrangement’, Francis Tam says

he removal of Paulina Alves as head of Macau Industrial Parks Development Co Ltd in August was “purely a work rearrangement”, Secretary for Economy and Finance Francis Tam Pak Yuen said yesterday. Ms Alves, a civil servant and lawyer, had called in to a news radio morning show and said she did not understand why she had been removed from the chair of the public corporation. Last year she made a complaint to the Commission against Corruption about a cemetery plots regulation, which led to an investigation that embroiled Secretary for Administration and Justice Florinda Chan. Ms Alves took over the industrial park development company, which managed Coloane’s Concordia

Industrial Park, in 2009. At the same time she was also a legal adviser of the Macau Trade and Investment Promotion Institute. On the radio show Ms Alves also questioned the institute’s recent decision not to renew her contract as legal adviser when it expires next March. Ms Alves said she did want to not speculate about whether her “being sacked” twice within three months had anything to do with the cemetery affair. “The replacement of Ms Alves at the industrial parks development company has absolutely no links to the cemetery case,” Mr Tam said. “The cemetery case took place two or three years ago. If it was about revenge, why was it not done then instead of now?” he said.

“Ms Alves’s replacement is purely about job rearrangement.” The appointment of the former deputy director of the Economic Services Bureau, Lo Ioi Weng, as chairman of the industrial parks development company had been due to a change in the company’s outlook, Mr Tam said. “Now the company has to manage the cross-border industrial zone, and work with Zhuhai to enhance our service sector. It’s a different task that goes beyond running a rental business,” he said. “The leader of the company ought to have experience in governing economic affairs, and Mr Lo is an experienced one that fits the new development with Zhuhai,” Mr Tam said. Trade and Investment Promotion

A new website officially launched yesterday will be a one-stop platform providing all the necessary information on exhibitions and conventions to pull in more event organisers, Macau Trade and Investment Promotion Institute director Jackson Chang noted. The website, available in Chinese, English and Portuguese languages, now combines a meetings, incentives, conferences, and exhibitions (MICE) calendar, a guide on incentive schemes and government contacts. The platform has yet to include information on a bidding centre for international events, which the government has earlier singled out as a means to attract overseas organisers to set up events here. “We still need time to continue to update the website,” said Mr Chang. “We’ll see what the opinions on the website are.” There were 505 MICE events in Macau in the first half of this year, with participants exceeding 290,000, a year-on-year growth of 17 percent, the director added.

S.L.

Institute director Jackson Chang told reporters that the institute had taken on a legal consultant and had no work for Ms Alves at the moment.

Gaming now employs one in four workers Casinos have hired 20,000 since bottom of financial crisis Vítor Quintã

vitorquinta@macaubusinessdaily.com

he number of gaming workers has topped the 80,000-mark for the first time in Macau’s history, according to official data. At the end of the third quarter there were a total of 80,200 workers employed in the city’s 30-plus active casinos, up by 1,600 from the previous quarter, the Statistics and Census Service announced yesterday. The gaming industry accounted for a record high of 23.3 percent of the employed population. Around one-in-four Macau workers is on a casino payroll. The latest figures show a very different picture from just three years ago. At the end of the third quarter 2009 – shortly after what economists consider was the bottom of the most recent global financial crisis – the gaming sector had lost about 7,500 workers in 18 months. Since then casinos have increased their head count by more than a third

by hiring 20,300 people. That’s more than the number of domestic workers currently living in the territory. Also in the past three years, hotels and restaurants have hired 12,300 people and boosted their workforce by almost 30 percent. At the end of September the sector had 54,200 employees, the highest since the statistics bureau began collecting data on hotels and restaurants’ employment in 1998, and accounted for 15.8 percent of the workforce. By contrast the number of construction workers dropped for the first time in two years at the end of the third quarter, falling by 500 to 32,300 people, thanks to a hiatus in the launch of big Cotai resorts. The sector also accounted for a whopping 77.9 percent of the 2,700 underemployed – those doing jobs for which they are overqualified or those that can find only part-time work.

54,200-plus hotel and restaurant staff by end of Sept

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business daily November 21, 2012

GREATER CHINA

China’s FDI inflow slows in Extending the longest run of decline in three years Longyuan weighs US$500m share sale China Longyuan Power Group Corp., the nation’s biggest wind-power producer, may raise about US$500 million by selling shares in Hong Kong, three people with knowledge of the matter said. Longyuan, which said in May that it would offer up to 1.36 billion shares in Hong Kong, is planning to offer about 813 million shares, two of the people said. The company’s advisers have been gauging investor interest in the offering this month, the people said. At its closing price of HK$4.85 apiece yesterday, a sale of 813 million shares would raise about HK$3.9 billion (US$503 million).

Manufacturing sector inflows stood at US$40.4 bln between January and October

HSBC may get US$9.6b for Ping An HSBC Holdings Plc is in talks to sell shares of Ping An Insurance Group Co. to Thailand’s Charoen Pokphand Group for about HK$74 billion (US$9.6 billion), the Shanghai Securities News reported. The Thai company, controlled by billionaire Dhanin Chearavanont, has offered about HK$60 for each share held by Londonbased HSBC, the newspaper said yesterday, citing a person it didn’t identify. Europe’s largest lender by market value said on Monday it is in talks to sell its stake in China’s second-largest insurer, without naming potential buyers.

CITIC, Palmer spar over iron ore project China’s CITIC Pacific has filed a court injunction against Australian tycoon Clive Palmer over disputed royalties at the US$8 billion Sino Iron project in Western Australia, the latest in a long list of hurdles for the troubled mine. The latest dispute relates to the start date for the payment of hundreds of millions of dollars in royalties to Mr Palmer’s private investment company Mineralogy Pty Ltd by the mine’s Chinese developers.

Haitong mulls overseas acquisitions Haitong International Securities Group Ltd, the Hong Kong unit of China’s secondlargest brokerage by market value, may make acquisitions to get a foothold in developed markets such as the U.S. and U.K. The securities firm needs a presence in Singapore and offices in London or New York, as well as other economies where its Chinese clients are investing, chief executive Lin Yong said in an interview in Hong Kong yesterday. Haitong is less interested in smaller markets such as the Philippines, Thailand or Hungary, he said.

oreign direct investment in China fell for the 11th time in 12 months as labour costs rose, an economic slowdown threatened to drag growth to a 13-year low and a territorial dispute with Japan weighed on trade. Investment dropped 0.2 percent in October from a year earlier to US$8.31 billion, the Ministry of Commerce said in Beijing yesterday. FDI inflows in the

first 10 months of the year declined 3.5 percent to US$91.7 billion, while non-financial outbound investment rose 25.8 percent to US$58.2 billion. The decline in inflows highlights challenges for new Chinese leadership headed by Xi Jinping, who took the reins of the ruling Communist Party last week in a once-a-decade power handover, as officials seek to reverse a growth slowdown. The world’s

Cnooc said to agree on Canada’s demands To get approval for its US$15.1 bln takeover of Nexen

nooc Ltd, China’s biggest offshore oil and gas producer, has accepted management and employment conditions set by the Canadian government as it seeks approval for its US$15.1 billion takeover of Nexen Inc., according to two people familiar with the matter. Negotiators for the Canadian government adopted many of the conditions requested by Alberta Premier Alison Redford last month, which include guarantees that at least 50 percent of Nexen’s board and management positions be held by Canadians, the two people said on condition they not be identified because negotiations are confidential. Nexen stock jumped almost 7 percent last week, the biggest weekly gain since state-owned Cnooc bid for the Calgary-based oil company in July, suggesting investors are growing more optimistic the deal will be approved by the Canadian government. Recent statements from Prime Minister Stephen Harper and federal cabinet ministers provide “favourable indications” Cnooc’s takeover of Nexen will soon be approved, as well as the separate bid the government is reviewing

by Malaysia’s state-owned energy company for Calgary-based Progress Energy Resources Corp., said Kyle Preston, an oil and gas analyst at National Bank Financial Group in Calgary. “I think we’re close,” Mr Preston said. “The government is looking at both the Cnooc-Nexen and the Progress-Petronas deals, which I think gives the appearance they’d like to make a decision on both at the same time and outline what the new framework is going to be for this net benefit test.”

second-largest economy may expand by 7.7 percent this year, the weakest pace since 1999, based on the median estimate of analysts surveyed by Bloomberg News. Manufacturing sector inflows meanwhile stood at US$40.4 billion between January and October, down 7.3 percent versus the same period in 2011. “Inward FDI will decelerate much

The Canadian government is reviewing the sale of Nexen under the country’s foreign-takeover law, which specifies transactions need to have a “net benefit” to the country in order to win approval. Canada extended its review of the deal for a second time on November 2, setting the deadline to December 10. While the prime minister has called it a national priority to sell more of his country’s energy resources to Asia, he has said the Nexen sale raises “difficult policy questions” and the government will release a new policy framework on foreign investment when it completes the review of the Nexen takeover. Canada rejected a C$5.2 billion bid by Petroliam Nasional Bhd. for Progress Energy on October 19, giving Petronas, as the Malaysian company is known, 30 days to appeal or make concessions. Last week, Industry Minister Christian Paradis said his decision on the Progress Energy takeover could come after November 18.

Cnooc’s takeover of Nexen might be approved soon – analyst

Bloomberg

November 21, 2012 business daily | 9

GREATER CHINA

n October faster next year,” given the economic slowdown and rising labour costs, said Shen Jianguang, chief Asia economist at Mizuho Securities Asia Ltd in Hong Kong. “Outward FDI will continue the current trend of strong growth” and may surpass inbound investment within one year, Mr Shen said. Despite the slowing rate of inflow, China remains firmly on course to secure more than US$100 billion of FDI for the third successive year, according to data from the United Nations Conference on Trade and Development, which collates FDI statistics globally.

Yuan steps Separately yesterday, People’s Bank of China Governor Zhou Xiaochuan reiterated that the nation will promote the convertibility of the yuan, increase its exchange-rate flexibility and push forward looser controls on interest rates.

US$91.7 bln Foreign direct investment in the first 10 months

Chinese exports to the U.S. boom Inbound investment in the first 10 months of 2011 rose 15.9 percent; last month’s drop was the smallest since May. Other data are pointing to a growth recovery, with exports rising at the fastest pace in five months and industrial output and retail sales exceeding forecasts. Economists have scrapped projections for any easing of monetary policy in the rest of 2012. Analysts surveyed by Bloomberg News between November 14 and 19 see China holding its reserve- requirement ratio at 20 percent through the end of the year, based on the median estimate. That compares with the median forecast for a 0.5 percentage-point cut in last month’s survey. Tensions from the Japanese government’s purchase of disputed islands in the East China Sea have led to protests in China and boycotts by tourists. Japanese investment in China slowed in October, data from the Commerce Ministry show. Investment rose 10.9 percent in the first 10 months to US$6.08 billion, compared with a 17 percent increase in the JanuarySeptember period to US$5.62 billion. The drop in last month’s inbound FDI “relates to a weak global investment flow and possible delays in Japan investment projects,” said Zhang Zhiwei, chief China economist at Nomura Holdings Inc. in Hong Kong. “China will continue to be a net recipient of FDI flows, although China’s outbound investments will continue to grow at a higher rate than inbound investments.” Bloomberg

Beijing may refrain from reserve-ratio cuts

hinese authorities may refrain from cutting lenders’ reserve requirements for the rest of the year after an economic slowdown subsided and the central bank increased its use of a separate tool to adjust funds in the financial system. The People’s Bank of China will probably keep the reserve- requirement ratio for large lenders at 20 percent, based on the median estimate of economists in a Bloomberg News survey. That compares with the half-point cut projected last month and the full point forecast in September. The shift in projections reflects a second month of pickups in industrial production and retail sales and the government’sreluctancetobooststimulus more aggressively. The PBOC is using socalled reverse-repurchase agreements to temporarilypumpmoneyinandoutofthe bankingsysteminsteadofthelonger-term measure of changing the reserve ratio. “There won’t be any more moves” in the reserve requirement, said Stephen Green, head of Greater China research at Standard Chartered Plc in Hong Kong, who in October projected a half-point cut. “You can provide the liquidity through open-market operations.” Thegovernmentmaylowerthereserve ratio in the first quarter of 2013, while analysts see no interest-rate changes from now through the end of the survey period of the first half of 2014, based on

median estimates. The central bank last cut interest rates in June and July and reduced the reserve ratio three times from November 2011 through May. China can conduct monetary policy easing through “quantitative measures,” including allowing growth in trust loans, said Zhang Zhiwei, chief China economist at Nomura Holdings Inc. in Hong Kong. “It’s quite clear that interest-rate cuts are off the table now, and even for a required-reserve ratio cut, it’s a quite close call,” said Mr Zhang, who previously worked for the Hong Kong Monetary Authority. While he is forecasting one more cut in the ratio this year, “there is a good chance the central bank will not do it,” he said. Meanwhile, the central bank yesterday allowed the yuan to trade slightly stronger, but it was still not enough for a market overloaded with dollars as the yuan moved straight to the limit of its daily trading range. The yuan firmed to 6.2297 per dollar in morning trade, from Monday’s close of 6.2345. The PBOC fixed the official midpoint rate at 6.2926 per dollar, compared to Monday’s fix of 6.2975, allowing the yuan to trade in a stronger range for the first time since last Wednesday, when the Chinese currency hit a record high against the dollar. Bloomberg/Reuters

hina said yesterday that the United States has overtaken the European Union as its biggest export market, as the continent’s debt crisis has sent demand slumping. “The biggest is the U.S. and the EU is second,” Commerce Ministry spokesman Shen Danyang told reporters at a regular briefing, without saying when the reversal occurred. “The EU used to be the biggest,” he added. Chinese customs figures for the first 10 months of this year showed that China’s exports to the United States totalled US$289.3 billion, while shipments to the EU came to US$276.8 billion. Economic growth in the United States remains weak but is

expanding, while the euro zone’s debilitating debt crisis has dragged it back into recession. Mr Shen noted that China will probably miss its full year target of 10 percent foreign trade growth this year due to sluggish overseas demand, particularly in Europe and Japan. “The international economic situation this year has been severe and complicated. There have been many uncertainties, with slack foreign demand being the most severe one,” he said. “It will be indeed very difficult to achieve this year’s 10-percent target for trade growth,” he said, yet added it was premature to conclude what the full year increase would turn out to be. AFP

10 |

business daily November 21, 2012

ASIA Carrefour to sell Indonesia stake Carrefour SA, France’s biggest retailer, agreed to sell its 60 percent stake in its Indonesian unit to local partner CT Corp. for 525 million euros (US$671 million) in the latest move to exit peripheral businesses. The transaction will give CT Corp. full control of Indonesia’s third-largest retailer, which has 84 outlets and had revenue of 1 billion euros in 2011, Carrefour said yesterday in a statement. Carrefour is cutting jobs and exiting overseas markets it doesn’t dominate to generate cash and cut debt as part of a three-year turnaround plan.

Okada’s Philippines casino project might face delays Country’s government probing bribery claims: president’s office

G Summit Holdings Inc. climbed to a record in Manila share trading on speculation the company will bid for the Philippine casino licence held by Kazuo Okada – if the Japanese billionaire’s permit is revoked. As well as the threat to Mr Okada’s US$2 billion Manila Bay Resorts gaming project, he’s also embroiled in multiple lawsuits with Steve Wynn’s Wynn Resorts Ltd. That follows the February cancellation of his 20 percent stake in the Las Vegas and Macau casino operator and his ejection from the Wynn Macau Ltd board on the grounds of being ‘unsuitable’ according to a Wynn regulatory filing. JG Summit rose 5.25 percent to 37.1 pesos (US$0.9), the best performer on the Philippine Stock Exchange Index, heading for an all-time high based on prices going back to August 1993. The stock surged as much as 7.8 percent earlier. The benchmark gauge added one percent to 5,501.72, also bound for a record close.

“The company is considered a prime suspect to compete for Okada’s casino licence,” said Rico Gomez, a fund manager at Rizal Commercial Banking Corp. “Interest in JG Summit is spreading to other gaming plays.”

Bribery claims The Philippines is probing bribery allegations against Mr Okada and might cancel his casino licence if the case is proved, President Benigno Aquino’s spokesman Edwin Lacierda said on Monday. It’s understood he was referring to a Reuters investigative report published at the weekend that linked Mr Okada’s Universal Entertainment Corp. with a number of payments including US$5 million in May 2010 to Rodolfo ‘Boysee’ Soriano, a reported confidante of Efraim Genuino, then chairman of the Philippine Amusement and Gaming Corporation – the country’s regulatorcum-operator of casino gaming that has an important say in any new casino projects there.

This September the Philippines Department of Justice recommended the prosecution of Mr Genuino for 175 counts of malversation of public funds and 174 counts of violation of the Anti-Graft and Corrupt Practices Act. Mr Okada says the payment to Mr Soriano and other payments to Philippine companies amounting to US$40 million were “unauthorised” and made by subordinate employees. Universal has brought lawsuits in Tokyo against them. Robinsons Land Corp., a unit of JG Summit, said last month that talks to develop jointly Mr Okada’s Manila casino resort would conclude in “the next few months”. JG Summit President Lance Gokongwei couldn’t be reached at his office for comment. Gaming companies were among the biggest gainers on the benchmark gauge yesterday. Alliance Global Group Inc., which part owns the operator of Manila’s largest casino – Resorts World Manila – rose

Shirakawa defies easing calls BOJ Governor pushes back on criticism

Masaaki Shirakawa dismisses 3 percent inflation target

ank of Japan Governor Masaaki Shirakawa pushed back against pressure on the central bank, criticising the unlimited easing advocated by opposition leader Shinzo Abe and urging respect for the BOJ’s independence. “I want respect for the BOJ’s independence as it’s doing its utmost to conduct appropriate monetary policy,” Mr Shirakawa told reporters in Tokyo yesterday. Without naming Mr Abe, the

head of the central bank said that unlimited money-printing could worsen th e n a ti o n a l d eb t a n d that a 3 percent inflation goal, also suggested by the opposition leader, would be unrealistic. A shrinking economy and an election on December 16 are encouraging politicians to press the central bank for more aggressive action to spur growth and counter deflation. “These kind of comments from Shirakawa are rare, and were aimed

at Abe,” said Hideo Kumano, chief economist at Dai-Ichi Life Research Institute in Tokyo and a former central bank official. “He wants politicians to respect what the BOJ has done and tone down the pressure.” Mr Abe, head of the Liberal Democratic Party that is leading in polls to win next month’s vote, helped drive the yen to a sevenmonth low yesterday by fuelling speculation that more easing is likely. The government taking office

Manila Bay Resorts completion date due end 2013

two percent to 15.28 pesos. SM Investments Corp., which has a stake in a company that’s building Belle Grande Manila Bay casino resort with Macau casino operator Melco Crown Entertainment Ltd, rose 1.7 percent to 831 pesos. Bloomberry Resorts Corp., which plans to open Solaire Resort & Casino Manila next year, added 1.05 percent to 13.5 pesos. “The issues surrounding Okada could delay the construction of that

after the election will have extra room to reshape policy by choosing the central bank’s top three officials.

BOJ holds fire Mr Shirakawa, criticised by politicians for his perceived failure to reverse more than a decade of deflation, ends a five-year term on April 8. His deputies Hirohide Yamaguchi and Kiyohiko Nishimura exit in March. Central bank policy makers refrained from easing yesterday after a two-day meeting, as the government announced 1 trillion yen (US$12 billion) of spending to support growth. The bank maintained its assessment that the economy is weakening somewhat but warned that the persistent overseas slowdown was weighing on exports, output and business spending. It also offered a slightly bleaker view on the outlook, saying the economy will “remain weak for the time being” before resuming a moderate recovery. Markets barely reacted to the announcement as many had priced in the BOJ decision. But some analysts see a good chance the central bank will boost stimulus at its next rate review on December 19-20, just days after the election. “The pressure on the BOJ is so strong that I don’t think they can avoid easing next month after the results of the election,” said Yasuo Yamamoto, senior economist at Mizuho Research Institute in Tokyo. “Increasing asset purchases is the most obvious option.” The yen rose as much as 0.3 percent to 81.14 per dollar following

November 21, 2012 business daily | 11

ASIA S. Korea closely monitoring inflows South Korea does not believe current market conditions demand new regulations to reduce the risks from rapid foreign capital inflows, Vice Finance Minister Shin Je-yoon said yesterday, boosting the South Korean won. Mr Shin told reporters the current situation does not warrant additional regulation for now, but added that the government is closely watching the market and is prepared to act if necessary. The currency extended its gains following Mr Shin’s remarks. It has risen by more than 6 percent against the dollar so far this year.

Singapore reviews laws for online gambling Minister says city-state to preserve its ‘thrifty values’

particular casino and this could benefit other players,” Astro del Castillo, managing director at First Grade Finance Inc., said yesterday. Philippine gaming revenue will double to about US$3 billion a year by 2015, according to a Citigroup Inc. report in August. Mr Okada’s Universal Entertainment Corp. said it planned to complete construction of Manila Bay Resorts by the end of 2013.

KEY POINTS

ingapore’s government is reviewing its regulations and social curbs for online gambling, according to local media reports. Second Minister for Home Affairs S Iswaran said in parliament that online gaming is a growing concern and the government is looking at ways to improve Singapore’s social safeguards, said GamblingCompliance.com, quoting the local sources. As part of the review, the government will study other countries’ online gambling regulations, Mr Iswaran told MPs. “We will study developments in these countries carefully, as well as our own context, as we draw up our framework to address online gambling,” he said. He added: “Online gambling, including gambling on social media platforms and mobile devices, is growing in many countries. Many of the emerging online gambling products are also potentially more addictive. “Our objective remains the same, which is to preserve our values of thrift and hard work, and protect our society, especially the vulnerable, from the potential harms of gambling,” added the minister. The minister stressed problem gambling controls in his keynote speech at the International Association of Gaming Regulators conference last month in Singapore. The online gambling

S Iswaran

announcement comes after Singapore’s Casino Regulatory Authority signed a collaboration agreement last month with regulators in Alderney, a jurisdiction that deals primarily with web-based gambling. Singapore government figures in 2011 said that only one percent of Singapore residents gambled online in the past 12 months, although unofficial estimates put the number higher. Singapore’s announcement of a review on rules for online gambling

is likely to be debated at an online industry conference called the Social Gaming Asia Summit on November 29 at Galaxy Macau. The gathering, organised by Beacon Events, will include speakers from companies offering casino-style and non-casino games on social and mobile platforms. Beacon describes it as the first ever conference in Asia exclusively about how to turn social gaming via social media into business opportunity. GamblingCompliance.com/M.G.

Bank of Japan kept monetary policy steady BOJ warns economy to remain relatively weak Shirakawa criticises unlimited easing Urges respect for the bank’s independence

yesterday’s decision, after touching 81.59 on Monday, its lowest since April 25 as Mr Abe’s comments drove speculation on the prospects of more easing. Mr Abe said on November 17 that he may ask the BOJ to buy construction bonds to support government spending and would choose someone in favour of inflation targets as Mr Shirakawa’s successor, Kyodo News reported. Directly buying government debt “is on the top list of taboos when the International Monetary Fund advises developing nations on their central bank systems,” Mr Shirakawa said at yesterday’s press conference. “No developed nations are doing it.” Reuters/Bloomberg

Shareholders approve Japan bourses merger

Osaka exchange jumped 4.1 percent yesterday

hareholders of Osaka Securities Exchange Co. and Tokyo Stock Exchange Group Inc. approved a US$1.6 billion merger of Japan’s biggest bourses in a bid to reinvigorate the country’s securities markets. Owners of the companies approved the transaction at extraordinary meetings in Tokyo and Osaka. Tokyo Stock Exchange bought 66.7 percent

of the smaller exchange after a tender offer that ended in August, making yesterday’s votes largely procedural. Shares of the Osaka exchange jumped 4.1 percent, the most since the deal was announced last November. The merger is the first step by Japan’s government to create a national exchange trading stocks, commodities and other securities to

cope with equity volumes that have shrunk by more than 3 percent since 2005 as trading shifts to greater China. Exchanges globally are seeking to merge as alternative trading venues gain market share and the demand for faster and cheaper transactions pushes costs up and margins down. “They will need to compete with the rest of Asia,” said Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors Ltd. “They can do it better as a joint force rather than individually.” About 7 billion yen (US$86 million) a year could be saved through integrating information technology systems, the Tokyo and Osaka bourses said in their merger document last November. Japan’s reputation as a financial hub has been battered by the Nikkei 225’s 76 percent slide since 1989, an economy that is threatening to fall into its third technical recession in four years, and accounting scandals at companies including Olympus Corp. “The merger by itself won’t help boost the presence of Japan’s financial market,” said Tatsushi Maeno, head of investment at PineBridge Investments Japan Co. “Investors are looking for economic growth and Japan has lagged behind the rest of Asia.” Bloomberg

12 |

business daily November 21, 2012

MARKETS Hang SENG INDEX NAME

NAME

PRICE

DAY %

VOLUME

29.75

-0.9983361

30721324

CHINA UNICOM HON

ALUMINUM CORP-H

3.23

-1.223242

13194690

CITIC PACIFIC

BANK OF CHINA-H

3.13

-0.6349206

189066125

AIA GROUP LTD

BANK OF COMMUN-H

5.38

-0.5545287

20953719

BANK EAST ASIA

28.85

0.5226481

1184047

BELLE INTERNATIO

14.62

-1.216216

13644344

BOC HONG KONG HO

23.55

0.212766

4730857

CLP HLDGS LTD

PRICE

DAY %

VOLUME

PRICE

DAY %

VOLUME

11.7

-0.6791171

23792130

NAME POWER ASSETS HOL

67.7

-0.2945508

1086181

9.5

-4.330312

25000866

SANDS CHINA LTD

30.8

0.1626016

7507896

66.5

0.3016591

1904150

13.34

-0.2989537

4622946

SUN HUNG KAI PRO

111

0.09017133

3290309

SWIRE PACIFIC-A

92.6

-0.856531

1152880

251.6

2.276423

4780834

22.1

-3.703704

7288766

10.64

-1.481481

10810395

54.2

0.463392

3179204

SINO LAND CO

CNOOC LTD

16.22

1.248439

49565620

COSCO PAC LTD

10.54

-1.862197

8694623

ESPRIT HLDGS

12.22

-1.132686

10277267

HANG LUNG PROPER

26.55

-1.301115

4894906

TINGYI HLDG CO

TENCENT HOLDINGS

CATHAY PAC AIR

13.68

0.4405286

3988497

HANG SENG BK

114.3

-1.038961

1842552

WANT WANT CHINA

CHEUNG KONG

113.2

-0.4397537

2936140

HENDERSON LAND D

52.65

-0.7540057

2909146

WHARF HLDG

7.45

-0.5340454

23661184

69.3

-1.282051

2740900

HONG KG CHINA GS

20.25

0.4962779

3864814

HONG KONG EXCHNG

122.9

-0.9669621

2699156

HSBC HLDGS PLC

17809314

CHINA COAL ENE-H CHINA CONST BA-H

HENGAN INTL

MOVERS

5.65

-0.877193

265854595

22.05

-1.121076

22351587

-1.287554

5655076

75.05

0.5358339

84.85

-0.4107981

11664846

HUTCHISON WHAMPO

77.7

0.4524887

6149399

CHINA OVERSEAS

20.7

-0.2409639

11554265

IND & COMM BK-H

5.06

150180454

CHINA PETROLEU-H

7.96

-0.2506266

58620007

LI & FUNG LTD

12.32

-0.4846527

12656526

CHINA RES ENTERP

26.25

1.156069

3406170

MTR CORP

30.1

0.5008347

3790213

18.6

-0.6410256

7051714

NEW WORLD DEV

12.1

1.680672

18102280

52W (H) 22149.69922

16.82

-0.942285

5764590

PETROCHINA CO-H

10.16

-0.5870841

58996618

(L) 17613.19922

PING AN INSURA-H

57.75

-1.197605

13045415

PRICE

DAY %

VOLUME

24.05

-1.028807

8536524

CHINA PETROLEU-H

7.96

-0.2506266

58620007

CHINA LIFE INS-H CHINA MERCHANT CHINA MOBILE

CHINA RES LAND CHINA RES POWER CHINA SHENHUA-H

30.55

-0.8116883

11298000

1 21480

INDEX 21228.28 HIGH

21478

LOW

21108.35 21100

16-November

20-November

Hang SENG CHINA ENTErPRISE INDEX NAME

NAME

PRICE

DAY %

VOLUME

AGRICULTURAL-H

3.29

-0.3030303

73621788

AIR CHINA LTD-H

5.11

-0.776699

7302000

ALUMINUM CORP-H

3.23

-1.223242

13194690

CHINA RAIL CN-H

8.36

-1.065089

ANHUI CONCH-H

24.9

-1.190476

8993000

CHINA RAIL GR-H

4.21

BANK OF CHINA-H

3.13

-0.6349206

189066125

CHINA SHENHUA-H CHINA TELECOM-H

CHINA PACIFIC-H

PRICE

DAY %

VOLUME

11.24

-0.5309735

19664154

ZIJIN MINING-H

3.12

-0.3194888

36503148

12608820

ZOOMLION HEAVY-H

9.27

-1.277955

12446516

-2.546296

31375000

ZTE CORP-H

11.14

-0.5357143

2953662

30.55

-0.8116883

11298000

5.38

-0.5545287

20953719

4.17

-0.9501188

53399185

19.12

-3.629032

4675661

DONGFENG MOTOR-H

9.7

-1.020408

12782517

CHINA CITIC BK-H

3.86

-0.2583979

20733088

GUANGZHOU AUTO-H

5.36

-0.7407407

11452924

CHINA COAL ENE-H

7.45

-0.5340454

23661184

HUANENG POWER-H

6.41

11143909

CHINA COM CONS-H

6.72

-1.030928

15556876

IND & COMM BK-H

5.06

150180454

CHINA CONST BA-H

5.65

-0.877193

265854595

JIANGXI COPPER-H

19.28

6494347

CHINA COSCO HO-H

3.51

-0.8474576

12537076

PETROCHINA CO-H

10.16

-0.5870841

58996618

22.05

-1.121076

22351587

PICC PROPERTY &

9.75

-0.8138352

7783618

4.8

-1.030928

11588150

PING AN INSURA-H

57.75

-1.197605

13045415

13.92

0.1438849

11991010

SHANDONG WEIG-H

8.05

-1.709402

20671751

BANK OF COMMUN-H BYD CO LTD-H

CHINA LIFE INS-H CHINA LONGYUAN-H CHINA MERCH BK-H

NAME YANZHOU COAL-H

MOVERS

3 10400

INDEX 10227.24 HIGH

10398.28

LOW

10203.7

CHINA MINSHENG-H

7.24

1.258741

24253114

SINOPHARM-H

24.4

-2.008032

1491004

52W (H) 11916.1

CHINA NATL BDG-H

9.43

-1.462905

24494000

TSINGTAO BREW-H

41.7

0.968523

1703000

(L) 8987.76

CHINA OILFIELD-H

14.9

1.775956

15313720

WEICHAI POWER-H

28.7

1.59292

2840000

10200

16-November

20-November

Shanghai Shenzhen CSI 300 NAME

NAME

PRICE

DAY %

VOLUME

PRICE

DAY %

VOLUME

CSR CORP LTD -A

4.54

-3.198294

37948861

SHANDONG DONG-A

38.41

-1.005155

2264625

7547744

DAQIN RAILWAY -A

6.17

-0.3231018

18740276

SHANDONG GOLD-MI

36.45

0.1648805

5416721

-1.05042

7273511

DATANG INTL PO-A

4.05

-0.9779951

2260703

SHANG PHARM -A

10.68

0.3759398

4443428

0.3757044

8155972

EVERBRIG SEC -A

11.15

-0.2683363

7216796

SHANG PUDONG-A

7.35

-0.2713704

20252986

2.34

-0.4255319

11658582

SHANGHAI ELECT-A

12.12

-1.862348

14273627

SHANXI LU'AN -A

23.05

0.8752735

12404547

SHANXI XINGHUA-A

GUANGHUI ENERG-A

15.3

-1.290323

8983010

HAITONG SECURI-A

8.3

-1.307967

25436250

28.04

-0.8486563

0.2592913

PRICE

DAY %

VOLUME

AGRICULTURAL-A

2.57

0.390625

33755716

AIR CHINA LTD-A

4.55

-0.4376368

ALUMINUM CORP-A

4.71

ANHUI CONCH-A

16.03

BANK OF BEIJIN-A

7.01

-0.284495

14970292

GD POWER DEVEL-A

BANK OF CHINA-A

2.78

0.7246377

38301961

GF SECURITIES-A

BANK OF COMMUN-A

4.16

-0.4784689

16065140

GREE ELECTRIC

BANK OF NINGBO-A

8.89

-0.2244669

3808246

BAOSHAN IRON & S

4.59

-0.2173913

15355893

NAME

3.88

-1.020408

2211858

16.43

-0.8449004

4746632

36.7

2.916433

8876493

11.81

6820657

SHENZEN OVERSE-A

5.74

1.234568

14139312

1173864

SICHUAN KELUN-A

53.55

1.324503

367827

599900

SUNING APPLIAN-A

6.17

-0.3231018

24479296

SHANXI XISHAN-A

15.74

-1.06851

3789554

HANGZHOU HIKVI-A

CHINA CITIC BK-A

3.58

0.5617978

4566378

HENAN SHUAN-A

CHINA CNR CORP-A

4.04

-2.415459

25312339

HONG YUAN SEC-A

16.72

-1.531213

5988341

TASLY PHARMAC-A

51.86

-0.09632055

731673

CHINA COAL ENE-A

6.88

-0.1451379

2962809

HUATAI SECURIT-A

8.08

-2.884615

16277094

TSINGTAO BREW-A

30.19

0.3990688

1002441

BYD CO LTD -A

CHINA CONST BA-A

4.16

-1.187648

20602315

HUAXIA BANK CO

8.33

-0.3588517

8940852

WEICHAI POWER-A

1.156069

8692736

CHINA COSCO HO-A

3.96

-1.492537

5342005

IND & COMM BK-A

3.83

-0.5194805

20214740

WULIANGYE YIBIN

28.99

-0.4122295

25393530

CHINA CSSC HOL-A

18.71

-1.526316

2097374

INDUSTRIAL BAN-A

12.3

-0.6462036

29525402

YANGQUAN COAL -A

12.86

-1.906941

5531393

CHINA EAST AIR-A

3.11

-1.892744

13411637

INNER MONG BAO-A

33.78

0.4161712

46364317

YANTAI CHANGYU-A

40.92

0.7137583

1044967

CHINA EVERBRIG-A

2.57

17802574

INNER MONG YIL-A

20.07

-3.87931

12852217

YANTAI WANHUA-A

12.93

-0.9195402

2583800

5.16

-0.7692308

30222583

YANZHOU COAL-A

16.54

1696202

64.68

1.220657

1075907

17.08

-1.100174

4983337

INNER MONGOLIA-A

CHINA MERCH BK-A

9.83

-0.9072581

21542000

JIANGSU HENGRU-A

28.56

-0.41841

1486799

YUNNAN BAIYAO-A

CHINA MERCHANT-A

8.68

-0.6864989

9572155

JIANGSU YANGHE-A

100.62

-1.352941

1920669

ZHONGJIN GOLD

15.2

-0.06574622

8988467

CHINA MERCHANT-A

21.85

0.9237875

6834970

JIANGXI COPPER-A

20.44

-0.04889976

3271617

ZIJIN MINING-A

3.72

0.2695418

20416107

CHINA MINSHENG-A

6.07

-0.3284072

37982810

JINDUICHENG -A

10.96

-0.6346328

1800356

ZOOMLION HEAVY-A

8.12

-1.096224

23216099

JIZHONG ENERGY-A

10.64

-1.207057

7167411

ZTE CORP-A

8.04

0.124533

6163550

-0.2559181

7983790 3807816

CHINA LIFE INS-A

6.77

0.7440476

23769639

CHINA OILFIELD-A

CHINA NATIONAL-A

15.55

-0.5118362

1590784

KANGMEI PHARMA-A

15.59

CHINA PACIFIC-A

16.48

-1.080432

14986025

KWEICHOW MOUTA-A

215.96

0.8923149

6.02

-0.660066

14714860

LUZHOU LAOJIAO-A

32.95

-0.4531722

9271810

2.01

10309170

-0.4065041

6525919

CHINA PETROLEU-A CHINA RAILWAY-A

5.23

-1.134216

17222943

METALLURGICAL-A

CHINA RAILWAY-A

2.76

-1.779359

26843172

NINGBO PORT CO-A

2.45

CHINA SHENHUA-A

21.37

-1.701932

5361191

PANGANG GROUP -A

3.38

-1.744186

26003878

8.54

-0.2336449

3581627

MOVERS

CHINA SHIPBUIL-A

4.21

-0.9411765

9374399

CHINA SOUTHERN-A

3.32

-1.775148

13353818

PING AN BANK-A

13.08

-0.07639419

7975806

35.33

-3.178953

28155042

HIGH

2217.74

LOW

2150.11

CHINA STATE -A

3.03

20355347

CHINA UNITED-A

3.2

-0.621118

40022915

POLY REAL ESTA-A

11.2

1.910828

26503006

CHINA VANKE CO-A

8.25

0.8557457

30590158

QINGDAO HAIER-A

10.94

-1.084991

3961903

CHINA YANGTZE-A

6.31

-0.6299213

7898402

QINGHAI SALT-A

23.88

0.3783102

2821126

CHONGQING WATE-A

5.13

-0.3883495

1879795

SAIC MOTOR-A

13.16

0.4580153

11273646

10.44

-1.416431

21255718

8.92

-0.5574136

7757409

NAME

PRICE DAY %

Volume

PRICE DAY %

Volume

ACER INC

23.55 -0.6329114

8175163

CITIC SECURITI-A

SANY HEAVY INDUS

15 2190

INDEX 2164.881

PETROCHINA CO-A PING AN INSURA-A

206

52W (H) 2717.825 (L) 2149.538

2145

16-November

20-November

FTSE TAIWAN 50 INDEX

ADVANCED SEMICON ASIA CEMENT CORP ASUSTEK COMPUTER AU OPTRONICS COR CATCHER TECH

NAME

Volume

105.5 -0.4716981

3113825

72.9

2.676056

16596054

FOXCONN TECHNOLO

95.5 -0.5208333

8339806

TPK HOLDING CO L

408

0.3690037

4086577

TSMC

90.4

0.4444444

21474874

UNI-PRESIDENT

51.5 -0.1937984

2494332

UNITED MICROELEC

10.3 -0.9615385

21848454

22.9

0.6593407

27967459

1250526

FUBON FINANCIAL

308

0.1626016

1633338

11.25 -0.8810573

56546064

HTC CORP

31.15

0.6462036

6905267

HON HAI PRECISIO

89.9

0.7847534

20088742

HOTAI MOTOR CO

191.5

-1.033592

457400

TAIWAN MOBILE CO

PRICE DAY %

FORMOSA PLASTIC

139

-2.112676

20404549

236

-3.080082

21778937

WISTRON CORP

28.4 -0.3508772

4044416

CATHAY FINANCIAL

28.95

0.1730104

8826259

HUA NAN FINANCIA

15.35

0.6557377

2044724

YUANTA FINANCIAL

13.4

0.7518797

6953043

CHANG HWA BANK

14.75

3344530

LARGAN PRECISION

686

-1.152738

1464936

YULON MOTOR CO

49.4 -0.2020202

1691618

CHENG SHIN RUBBE

69.9

0.286944

2764652

LITE-ON TECHNOLO

37.55

-0.397878

2915978

CHIMEI INNOLUX C

11.1 -0.4484305

60088827

MEDIATEK INC

308

-1.282051

6586322

CHINA DEVELOPMEN

6.45

0.311042

19207365

MEGA FINANCIAL H

21.4

1.904762

14810209

CHINA STEEL CORP

24.95

8607485

NAN YA PLASTICS

47.8 -0.8298755

5279652

CHINATRUST FINAN

15.55

0.6472492

17202406

PRESIDENT CHAIN

92.7

0.1079914

4312726

QUANTA COMPUTER

COMPAL ELECTRON

18.05

-1.634877

15377169

DELTA ELECT INC

101.5

1.5

4427269

FAR EASTERN NEW

31.8

2.580645

FAR EASTONE TELE

70.4

FIRST FINANCIAL

16.6

FORMOSA CHEM & F FORMOSA PETROCHE

81.1

CHUNGHWA TELECOM

151.5

1.677852

1480975

70.3

1.884058

7279415

SILICONWARE PREC

28.7

0.7017544

5043998

SINOPAC FINANCIA

11.55

0.8733624

6400743

8868677

SYNNEX TECH INTL

55.5

0.5434783

3394924

0.8595989

4402595

TAIWAN CEMENT

36.8

0.5464481

5881143

1.529052

6900647

TAIWAN COOPERATI

15.3

0.3278689

2706401

63.6 -0.1569859

9294924

TAIWAN FERTILIZE

71.4

0.990099

2879746

1268487

TAIWAN GLASS IND

24.8

0.4048583

578529

1.375

MOVERS

3 5050

INDEX 5022.65 HIGH

5045.52

LOW

4978.32

52W (H) 5621.53 4970

(L) 4643.05 16-November

20-November

November 21, 2012 business daily | 13

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

MeLCo CroWn enTerTaInMenT

MgM CHIna HoLDIngS 37.0

28.00

13.6

27.85

13.5 36.4

27.70

13.4

27.55

Max 27.9

average 27.620

Min 27.5

27.40

Last 27.55

SanDS CHIna LTD

13.3 Max 36.95

average 36.785

Min 35.8

Last 36.7

SJM HoLDIngS LTD

31.0

30.8

average 30.958

Min 30.7

30.6

Last 30.8

average 17.993

NAME

PRICE

WTI CRUDE FUTURE Jan13

88.79

-0.548835125

-9.20339503

109.6699982

79.68000031

BRENT CRUDE FUTR Jan13

111.15

-0.492390331

7.391304348

120.7699966

90.15999603

GASOLINE RBOB FUT Dec12

DAY %

YTD %

(H) 52W

273.44

-0.729715012

10.19585718

295.8800077

217.2600031

952.5

-0.10487677

6.276150628

1036.25

799.25

NATURAL GAS FUTR Dec12

3.761

1.129335843

0.106467927

4.350000381

2.90899992

Gold Spot $/Oz Silver Spot $/Oz

306.63

-0.286169555

6.787629728

335.1700068

254.2500019

1732.27

0.503

10.6945

1796.08

1522.75

33.125

1.4393

19.0049

37.4775

26.1513

1577.68

1.0601

13.1359

1736

1339.25

642

1.6627

-1.7598

725.19

553.75

LME ALUMINUM 3MO ($)

1977

1.332649923

-2.128712871

2361.5

1827.25

LME COPPER 3MO ($)

7804

2.61669954

2.684210526

8765

7100.25

1945.5

1.328125

5.447154472

2220

1745

Platinum Spot $/Oz Palladium Spot $/Oz

3MO ($)

LME NICKEL 3MO ($) AGRICULTURE ROUGH RICE (CBOT) Jan13 CORN FUTURE

Mar13

16475

3.226817043

-11.9454837

22150

15236

14.81

-0.235769619

-3.549332465

16.60000038

14.60000038

742.25

-0.033670034

23.65680966

846.25

511

18.1

21.75

18.00

21.50

17.9

21.25

Min 17.92

Last 18

21.00 Max 21.8

average 21.569

Last 21.5

Min 21.2

PRICE MAJORS

ASIA PACIFIC

CROSSES

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

DAY %

1.0397 1.59 0.9423 1.2785 81.23 7.9843 7.752 6.2329 55.075 30.69 1.2248 29.111 41.171 9640 84.426 1.20476 0.80409 7.982 10.2087 103.85 1.03

0.0192 -0.0754 0.1061 0.1253 -0.0739 0.005 0.0013 0.0305 -0.0182 0.0978 0.0082 0.1786 0.0097 -0.083 -0.0545 -0.01 -0.2002 -0.327 -0.1234 -0.1926 0

YTD %

(H) 52W

1.8415 2.2969 -0.4457 -1.3579 -5.3182 0.1916 0.1987 0.9963 -3.6496 2.8022 5.8622 4.0122 6.4827 -5.9232 -7.0997 0.9985 3.6439 1.9068 1.4037 -4.0347 0.0097

(L) 52W

1.0857 1.6309 0.9972 1.3569 84.18 8.0308 7.7979 6.3964 57.3275 32 1.315 30.5 44.35 9662 88.637 1.24438 0.86648 8.613 10.887 111.44 1.0311

0.9582 1.5235 0.8931 1.2043 76.03 7.9823 7.7498 6.2202 48.6088 30.2 1.2152 28.914 40.996 8875 74.482 1.19995 0.77553 7.7018 9.6245 94.12 1.029

MACAU RELATED STOCKS (H) 52W

(L) 52W

-1.515152

18.18182

3.25

2.16

2827351

CROWN LTD

10.04

1.825558

24.10383

10.2

7.92

1414677

18.65999985

AMAX HOLDINGS LT

0.062

-28.73563

0.119

0.055

6034000

66.84999847

BOC HONG KONG HO

23.55

0.212766

27.98913

16.24

4730857 28000

854.75

-0.349752259

16.45095368

948.25

652

1392.5

-0.161319233

14.79802143

1781.5

1126.75

COFFEE 'C' FUTURE Mar13

156.85

-0.349428208

-34.0827905

249

149.4499969

SUGAR #11 (WORLD) Mar13

19.83

-0.551654965

-15.11130137

25.12999916

COTTON NO.2 FUTR Mar13

71.98

-0.111018596

-18.67585584

98.5

World Stock MarketS - Indices

NAME ARISTOCRAT LEISU

PRICE

DAY % YTD %

VOLUME CRNCY

CENTURY LEGEND

0.25

-1.960784

8.69565

0.335

0.204

CHEUK NANG HLDGS

4.15

-0.1203369

48.21429

4.36

2.5

11000

CHINA OVERSEAS

20.7

-0.2409639

59.65573

21.95

11.507

11554265

CHINESE ESTATES

11.64

3.191489

-6.88

13.26

8.3

8500

CHOW TAI FOOK JE

10.04

0.9045226

-27.87356

15.16

8.4

5155400

EMPEROR ENTERTAI

1.63

46.84684

1.65

0.99

605000

FUTURE BRIGHT

1.26

200

1.36

0.37

438000

GALAXY ENTERTAIN

27.55

93.4691

29.45

13.2

9484500 1842552

COUNTRY

PRICE

DAY %

YTD %

(H) 52W

(L) 52W

DOW JONES INDUS. AVG

12795.96

1.649546

4.734173

13661.87

11231.56

NASDAQ COMPOSITE INDEX

2916.07

2.205963

11.93483

3196.932

2441.48

HANG SENG BK

114.3

-1.038961

24.03689

120

91.05

FTSE 100 INDEX

5723.74

-0.2426076

2.718106

5989.07

5075.22

HOPEWELL HLDGS

28.9

0.1733102

47.43275

31.091

18.319

1292844

DAX INDEX

7120.26

-0.0502538

20.71613

7478.53

5366.5

HSBC HLDGS PLC

75.05

0.5358339

27.20339

17809314

NIKKEI 225

9142.64

-0.1153695

8.128464

10255.15

8135.79

HANG SENG INDEX

21228.28

-0.1588745

15.15585

22149.69922

17613.19922

CSI 300 INDEX

2164.881

-0.4645549

-7.710176

2717.825

2149.538

TAIWAN TAIEX INDEX

7145.77

0.234674

1.041984

8170.72

6609.11

KOSPI INDEX

1890.18

0.6432032

3.529531

2057.28

1750.6

S&P/ASX 200 INDEX

4385.678

0.5555494

8.113219

4581.8

3973.8

4300.874

-0.2912989

12.52965

4366.856

3618.969

FTSE Bursa Malaysia KLCI

1623

-0.01909678

6.027844

1679.37

1424.19

NZX ALL INDEX

865.349

0.694922

18.5734

874.107

712.548

JAKARTA COMPOSITE INDEX

13.2

22.00

2.6

WHEAT FUTURE(CBT) Mar13 SOYBEAN FUTURE Jan13

NAME

Last 13.26

18.2

(L) 52W

GAS OIL FUT (ICE) Jan13

LME ZINC

Min 13.22

CURRENCY EXCHANGE RATES

HEATING OIL FUTR Dec12 METALS

average 13.272

17.8 Max 18.1

Commodities ENERGY

Max 13.54

Wynn MaCaU LTD

31.2

Max 31.15

35.8

HUTCHISON TELE H

3.39

13.37793

3.88

2.81

7082000

LUK FOOK HLDGS I

20.8

2.970297

-23.24723

34.3

14.7

3443000

MELCO INTL DEVEL

7.76

2.105263

34.48874

8.28

5.12

1938000

MGM CHINA HOLDIN

13.26

-0.4504505

38.23799

14.76

9.347

1855856

MIDLAND HOLDINGS

3.33

-4.584527

-15.78249

5.217

3.249

6336000

NEPTUNE GROUP

0.153

37.83784

0.222

0.08

1080000

NEW WORLD DEV

12.1

1.680672

93.29073

13.2

6.13

18102280

SANDS CHINA LTD

30.8

0.1626016

40.3189

33.05

19.96

7507896

SHUN HO RESOURCE

1.22

1.37

0.95

SHUN TAK HOLDING

3.24

1.25

26.60561

3.51

2.418

4751414

SJM HOLDINGS LTD

0.896861

43.93625

18.18

11.519

4557000

14.92

0.2688172

11.01191

17.5

11.72

1855611

WYNN MACAU LTD

21.5

2.380952

10.25641

25.5

14.62

4063200

ASIA ENTERTAINME

3.43

-4.98615

-41.66667

7.24

2.4

122686

BALLY TECHNOLOGI

45.07

1.349224

13.92821

51.16

35.79

494689 2000

SMARTONE TELECOM

PHILIPPINES ALL SHARE IX

3609.79

0.7839831

18.54655

3613.26

2952.17

HSBC Dragon 300 Index Singapor

576.49

0.57

16.15

STOCK EXCH OF THAI INDEX

1278.71

-0.3848401

24.71326

1314.64

965.07

HO CHI MINH STOCK INDEX

385.1

0.464364

9.543456

492.44

332.28

BOC HONG KONG HO

3.15

31.40399

3.3

Laos Composite Index

1233.05

-0.5757182

37.08781

1249.34

876.33

GALAXY ENTERTAIN

3.471

-0.2586207

85.61497

3.73

1.68

961

INTL GAME TECH

13.01

2.199529

-24.36047

18.1

10.92

5393049

JONES LANG LASAL

76.59

2.133618

25.02449

87.52

55.88

153811

LAS VEGAS SANDS

43.43

2.744263

1.638194

62.09

34.72

7794739

MELCO CROWN-ADR

14.4982

4.831526

50.70894

16.02

8.18

6024739

MGM CHINA HOLDIN

1.76

47.68902

1.96

1.1917

2000

MGM RESORTS INTE

9.6

-0.4149378

-7.957817

14.9401

8.83

12861651

SHFL ENTERTAINME

13.7

5.955143

16.8942

18.77

10.22

358579

SJM HOLDINGS LTD

2.34

0.862069

45.56106

2.34

1.4695

1000

105.79

1.399406

2.11242

129.6589

84.4902

1338259

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

WYNN RESORTS LTD

AUD HKD

USD

14 |

business daily November 21, 2012

Opinion Inside Africa’s consumer revolution David Fine

Director at McKinsey & Company and leads McKinsey’s office in South Africa

owadays, Africa’s economic potential – and the business opportunities that go with it – is widely acknowledged. Poverty and unemployment are still more widespread than in other emerging markets, but accelerating growth since 2000 has made Africa the world’s second-fastest-growing region (after emerging Asia and equal to the Middle East). With rapid economic growth have come more prosperous consumers – and vice versa: 45 percent of Africa’s total GDP growth in the 2000’s (before the financial crisis erupted in 2008) came from consumer-related sectors of the economy. It is expected that, by 2020, more than half of African households – almost 130 million – will have discretionary income to spend (or save), up from 85 million today. Moreover, Africa has the world’s fastest-growing population – and the youngest, with more than half under 20 years old, compared to 28 percent in China. The United Nations estimates that the continent will account for more than 40 percent of global population growth through 2030, with the workingage population expected to surpass that of China by 2040. Given these trends, the continent’s consumer industries are expected to grow a further US$410 billion by 2020 – more than half the total revenue increase that all businesses are expected to generate in Africa by the end of the decade. But, for many companies entering Africa or seeking to expand there from a local base, the challenge now is to obtain a better understanding of the market and its consumers.

than in particular countries. Indeed, with 40 percent of its population living in cities, Africa is more urbanised than India (30 percent), and nearly as urbanised as China (45 percent). By 2016, more than 500 million Africans will live in urban centres, and the number of cities with more than one million people is expected to reach 65, up from 52 in 2011 (on par with Europe and higher than India and North America). This development is critically important for consumer companies. Urban household spending in Africa is increasing twice as fast as rural spending, with urban per capita incomes, on average, 80 percent higher than those of countries as a whole. Befitting the continent’s strong macro trends, the survey found a high degree of optimism among urban African consumers: 84 percent of respondents expect their households to be better off in two years. Sub-Saharan Africans are the most optimistic – 97 percent of Ghanaians, for example, expect to be much better off in two years. (For North Africans, however, that figure drops to only 10-15 percent, which is unsurprising given the uncertainty generated by the region’s recent political turmoil.) Overall, consumers are increasing their spending across most retail categories. Up to 30 percent of the more optimistic consumers in some

countries say that they are shopping more frequently and purchasing new and more expensive products. And half of all respondents claim to make daily sacrifices to save for major expenditures. This suggests that companies offering cheap, poor-quality, unbranded products are unlikely to succeed in the long term. For apparel consumers, for example, quality is second only to price when choosing a store, and second only to fashion when choosing a specific item. And, in both North and SubSaharan Africa, brand loyalty is strong, averaging 58 percent. But quality and brand must be delivered at the right price. Even though Africans value

Africa has the world’s fastest-growing population – and the youngest, with more than half under 20 years old

brands and product quality, affordability remains crucial. To succeed, companies should work to reach consumers’ price points through a combination of product reengineering (such as removing low-value-added features), smaller package sizes, and low-cost operating models. Moreover, timing is crucial when choosing where to play. Demand for consumer products typically follows an S-curve. As incomes rise, categories reach a takeoff point where demand accelerates by 3-5 times. At higher levels of income, markets become saturated and growth slows. Different products and categories enter the “hot zone” at different moments: those with low price points, such as snacks and beverages, typically take off relatively early; beauty products somewhat later; and luxury goods, such as branded fashion, later still. Not surprisingly, in most African markets, few categories have entered the slower-growth “chill-out” zone.

Urban focus This is where understanding opportunities at a city level is vital. Country-level planning and resource allocation is still the rule for most businesses operating in Africa, resulting in inefficient allocation of human and capital resources. By creating detailed profiles of the most promising urban

opportunities, companies could target their investments more effectively. Identifying growth hot spots is only the start. Substantial differences among and within Africa’s countries imply the need for a much deeper and finer-grained understanding of consumer preferences and affordability profiles by product category. Likewise, many markets are still in early stages of development, and must be built through concerted consumer education and trial. Here, Africa’s youth merit special attention: the survey found that the 16-34 age group already accounts for 53 percent of income in urban centres. Young people’s consumption habits are quite different from their elders’. They are more than twice as likely to search for information online and to seek products and stores that reflect the “right image.” They are also more educated, with 40 percent of 16-24 year olds having completed high school, compared with only 27 percent of the 45-and-older group. These characteristics point to a major change in African consumption habits as this cohort ages, its incomes increase, and its behaviours and decision criteria become the societal norm. Many companies – particularly multinational firms accustomed to old and aging populations in the advanced countries – will have to adapt accordingly. © Project Syndicate

Consumer trends In one of the first studies of its kind, the McKinsey Africa Consumer Insights Centre surveyed 13,000 individuals from 15 cities in ten of the continent’s 54 countries in 2011 and 2012. The ten countries – Algeria, Angola, Egypt, Ghana, Kenya, Morocco, Nigeria, South Africa, Sudan, and Tunisia – accounted for 81 percent of Africa’s private consumption in 2011. But, throughout the continent, market opportunities for consumer-facing companies are concentrated more in cities

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November 21, 2012 business daily | 15

OPINION Christine Lagarde’s uncharted wires Asian territory Business

Leading reports from Asia’s best business newspapers William Pesek

Jakarta Globe

Bloomberg View columnist

Bank Indonesia is studying a policy that will require domestic lenders to impose a rating system for customers of corporate loans in a bid to improve prudent banking practices in the country. A rating system would allow banks to reduce loan provisions for companies, based on the assessed risks. Under the existing regulation, unrated companies are subjected to a risk weight of 100 percent. Banks can undertake their own rating toward corporate clients, based on the standard set by the Basel Committee on Banking Supervision

Korea Herald Spending by South Korean households on food and other groceries surged to the highest level in 11 years in the first half of this year amid a prolonged economic slump. According to the data released by the Bank of Korea, the country’s total household spending rose 4.7 percent from a year earlier to nearly 324 trillion won (US$298 billion) in the January-June period. Of the total, the amount spent on food and non-alcoholic beverages came to 44 trillion won, up 6.3 percent.

Business Times SCOMI Engineering wants to take the governmentowned Kuala Lumpur monorail system private and expand the services in a deal that could be worth over 3 billion ringgit (US$982 million). The project was built at a cost of 1.18 billion ringgit by KL Infrastructure Group, which had a 40-year concession. Government-owned Syarikat Prasarana Negara stepped in and took over the monorail system in December 2007 after KL Infrastructure suffered financial constraints. The system is now operated by Prasarana’s wholly-owned unit, KL StarRail.

Daily Tribune The Bangko Sentral ng Pilipinas (BSP) yesterday said the dollars are awash in the market. “Plenty of dollars are coming in. More dollars are coming in because we are able to sell exports, receive more worker’s remittances, more tourists visiting and more foreign investments,” BSP deputy governor for monetary stability sector Diwa Guinigundo said. The peso has been below P42 for the past 11 months because of strong macro fundamentals of the economy, and the BSP is now buying dollars to temper its strength.

hristine Lagarde’s Asia charm offensive ended on a rather discordant note. The head of the International Monetary Fund cut short her Asia trip to attend the umpteenth meeting of euroarea finance ministers on Greece. It was a stark reminder that with the West either in recession or political paralysis, the IMF is giving short shrift to Asia, a place that could use more face time with the woman in charge of the world’s economic rescue squad. Lagarde’s Asia trek was meant to woo a region that, 15 years after its own crisis, helps power the world economy. She got in a bit of wooing in Malaysia and the Philippines. In Kuala Lumpur, she stood shoulder-to-shoulder with Zeti Akhtar Aziz, Malaysia’s internationally respected central-bank governor. In Manila, Lagarde paid her respects to Finance Secretary Cesar Purisima and centralbank head Amando Tetangco for their success in reviving the perennial sick man of Asia.

It is important for IMF officials to focus on Asia, a region on the front lines of every risk facing the global economy

And then, poof, she was gone. Her trip to Cambodia for the East Asia Summit was scrapped, along with a rare chance to catch up with leaders

from Australia, India, Japan, New Zealand, Russia and South Korea. All for another European debt confab that will resolve what? A summit bubble, anyone? I’m a big believer in the inverse relationship between the number of summits and the result each produces. No one doubts Lagarde’s sincerity about this next one in which 17 euro countries will get together in an effort to cut Greece’s debt to sustainable levels. But let’s be real. None of the countless powwows have done so. A year or two from now, Europe will still be duelling with Athens and its debt.

Asia’s importance All this says two things about today’s IMF. One, like too many European leaders, IMF officials are living in denial about the magnitude of the West’s problems if they think another gathering and yet another communique matter. Two, they don’t grasp the importance of Asia and its growing challenges. The IMF’s defenders will surely take exception. But Lagarde missed a perfect chance to address Asian leaders directly on their turf on everything from weak global growth to financial instability to widening income gaps to optimal regulatory approaches. She missed out on pressing China on reforms after its leadership change; India and Indonesia on attacking corruption and weathering surging food prices; Vietnam on its latest market crash; Laos on its bid for World Trade Organization membership; and Singapore on a possible chill in its immigration policies. Her time in Phnom Penh, Cambodia, would have been a timely opportunity to feel out Japanese and South Korean officials on next month’s elections. Or talk some sense into Asia over the territorial disputes driving it apart.

Why not debate the logic of the currency-reserves arms race that has occurred since Asia’s 1997 crisis and discuss the pros and cons of capital controls? The mix of recession, poverty and increasing hunger among Asia’s billions might make Europe’s crisis seem manageable by comparison. Lagarde could have worked the room at the East Asia Summit to see what Europe can learn from Asia’s crisis response. Europe could do worse than emulate how quickly countries such as South Korea confronted the magnitude of their debt and structural flaws, implemented sweeping changes and began thriving. It hasn’t escaped notice in Asia that the IMF is treating Europe very differently. Fifteen years ago, the IMF demanded that Asia raise interest rates, boost currencies, cut debt, force banks to write down bad loans and let companies fail in exchange for bailouts.

Coddling Europe Now Asia looks on, often aghast, at how the IMF coddles Europe with ever-growing amounts of aid and misplaced patience. In Manila last week,

Lagarde said discussion on Greece “isn’t over till the fat lady sings.” Well, she won’t sing for a long, long time because IMF policies defer the needed reforms. The IMF needs Asia. No big economic or environmental issue can be solved without China’s participation. It also needs money from Japan, China, India, Australia, South Korea and other economies in the region. Lagarde’s visits to Malaysia and the Philippines were, in part, to show appreciation for their contributions to a US$461 billion increase in the IMF’s resources this year, when the U.S. and Canada abstained. I like and respect Lagarde. I believe the IMF has benefited greatly from her presence in Washington. And granted, Lagarde is a busy person with Europe’s mess, the U.S. teetering on its self-inflicted fiscal cliff and sparks flying in the Arab world. Her resources are stretched a bit thin. It is important, though, for IMF officials to focus on Asia, a region on the front lines of every risk facing the global economy. Lagarde may be courting bigger trouble if she doesn’t spend more time there. Bloomberg View

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business daily November 21, 2012

CLOSING Greece imposes spending controls

New leaders for Shanghai, Chongqing

Greece approved laws to enforce budget targets and ensure privatisation proceeds are used to pay off debt, seeking to appease foreign lenders before a critical meeting of euro zone finance ministers. Athens said the decrees – in addition to an austerity package passed this month – completed its obligations to lenders before yesterday’s Eurogroup meeting, which it hopes will unlock more aid to stave off bankruptcy. The government decrees – which go into force immediately and do not require parliamentary approval – stipulate proceeds from privatisation go into a special escrow account and impose automatic cuts on public sector units that miss budget targets.

China yesterday named new leaders for its commercial hub Shanghai and the southwestern mega-city of Chongqing, where the disgraced former official Bo Xilai ruled until his downfall earlier this year. Businessfriendly Shanghai Mayor Han Zheng (pictured) was promoted to the city’s top post as Communist Party chief after serving as mayor since 2003, the official Xinhua news agency said. Mr Han is credited with guiding Shanghai through the successful World Expo in 2010. Up-and-coming politician Sun Zhengcai, a former minister of agriculture, was named top Communist Party official in Chongqing, Xinhua said in a separate report.

ties between Asia’s biggest economies as Europe’s sovereign debt crisis and the U.S. fiscal cliff threaten global growth. Japan this month said it would bolster military ties with the U.S. after its purchase of islands claimed by China rattled a US$340 billion trade relationship.

Asean divide

Obama meets China, Japan leaders As sea spats threaten economic ties

resident Barack Obama met with leaders from China and Japan yesterday as Asian countries struggle to resolve territorial disputes in sea lanes vital to world trade that threaten to disrupt economic ties. Mr Obama called the U.S.Japan alliance the “cornerstone” of

regional security in a meeting with Prime Minister Yoshihiko Noda, who emphasised the importance of relations given the “increasing severity” of the security environment in Asia. Chinese Premier Wen Jiabao said he wanted his meeting with Mr Obama to send a “positive message to the world.”

“It’s important that our two countries cooperate to build a more secure, prosperous future” for the Asia-Pacific region and the world, Mr Obama told reporters as he began the meeting with China’s premier in Phnom Penh, Cambodia. “As the two largest economies in the world we have a special responsibility to lead the way in ensuring sustained and balanced growth.” The relationship between the U.S. and China is one of the most important in the world, and developing the ties will “contribute to peaceful development and prosperity in the Asia-Pacific,” Chinese Foreign Ministry spokeswoman Hua Chunying said yesterday. Tensions over China’s territorial claims risk disrupting commercial

Southeast Asian nations on Monday split over handling maritime conflicts with China, reflecting divisions that surfaced in a July meeting when the Association of Southeast Asian Nations failed to release a communique for the first time ever. “We are not going to allow the issue to cloud or to affect other pursuits that we are doing here,” Surin Pitsuwan, Asean’s secretary-general, told reporters yesterday, referring to the island disputes. “But of course any other member states who would like to carry this issue in its own way, to pursue its own interests, those states have the right to do so.” Mr Noda on Monday told Asean leaders he would seek to resolve differences with China in a “calm and peaceful manner,” according to a government statement, China has demanded that Japan withdraw from its September purchase of the islands, known as Senkaku in Japan and Diaoyu in China. Mr Wen urged Asean members to avoid discussing island disputes because China prefers to deal with individual claimants directly, foreign ministry spokesman Qin Gang told reporters. China proposed setting up a group of experts to find ways to resolve sea tensions, he said. Bloomberg

France downplays credit rating cut Moody’s cuts top French rating, terms outlook negative

he French government has downplayed the importance of rating agency Moody’s Investors Service’s decision to deprive the country of its top triple-A credit rating. Moody’s downgraded France’s debt from Aaa to Aa1, and kept its negative outlook, meaning it could be cut again. The Moody’s downgrade follows one by Standard & Poor’s in January and increases pressure on President Francois Hollande to find ways to bolster growth. “France’s fiscal outlook is uncertain as a result of its deteriorating economic prospects, both in the short term due to subdued domestic and external demand” and “structural

rigidities” in the longer term, Moody’s said in a statement in Frankfurt. “Judge us on our results,” French Finance Minister Pierre Moscovici said. “The rating in no way places a question over the fundamentals of our country’s economy – neither the reforms undertaken by the government, nor the quality of the signature on our debt,” he added. He pointed to the fact that Moody’s had only downgraded its rating of the country’s long-term debts by one notch, and still gave France’s shortterm debts its top rating. The finance minister said Moody’s decision reinforced the need for the government to pass a package of economic reforms that is proving

unpopular with voters. The ratings agency’s move had not affected sentiment on the financial markets, which still held French debts in high regard, the government claimed. Moody’s said the primary reason for the downgrade had been France’s “persistent structural economic challenges” and the threats they pose to economic growth and the government’s coffers. “These include the rigidities in labour and services markets, and low levels of innovation, which continue to drive France’s gradual but sustained loss of competitiveness and the gradual erosion of its export-oriented industrial base,” Moody’s said. Mr Moscovici said the

Pierre Moscovici said the downgrade was motivation to pursue structural reforms

downgrade was motivation to pursue structural reforms. He also blamed the downgrade on the economic management of previous governments and added that France was still committed to cutting its public deficit to 3 percent of output next year. Reuters