Bed, bawd and bolt-hole Money game Government agrees to pay running costs for delayed soccer centre as bill soars
Terror on the streets London attackers were known to security services, British official says
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Friday, May 24, 2013 / See live updates at www.scmp.com / HK$9
PUBLISHED SINCE 1903 / VOLUME LXIX / NO 142
Markets fall as Chinese production weakens
Top of the world – aged 80 Climber adds four years to record to become the oldest to scale Everest
HEALTH
CRIME
H7N9 BIRD FLU FOUND TO SPREAD 7.32% THROUGH THE AIR JAPAN
Nikkei-225 index
Mainland figures fuel fears after US Fed chief hints at pulling back on stimulus measures
Former lawmaker Chim Pui-chung faces the media. Photo: Sam Tsang
Close:
................................................ Victoria Ruan in Beijing victoria.ruan@scmp.com Stock markets slipped from Japan to Australia yesterday as evidence of weakening manufacturing activity in China rocked confidence about the strength of the rebound in the world’s second-biggest economy. The deteriorating outlook on the mainland sent Japan’s Nikkei 225 stock average slumping 7.3 per cent, registering the deepest loss since the 2011 earthquake and tsunami. The Hang Seng Index dropped 2.54 per cent to 22,669.68, its biggest slide in seven weeks. The Shanghai Composite Index fell 1.16 per cent while Australia’s S&P/ASX 200 Index dropped 1.99 per cent. Deepening doubts about China’s economic prospects added to market jitters after Ben Bernanke, chairman of the US Federal Reserve, indicated on Wednesday that the United States might begin winding back stimulus measures by reducing the pace of bond purchases in the autumn. The HSBC flash purchasing managers index for China fell below the 50 – the line which separates expanding from contracting activity – in May for the first time in seven months, slipping to
A slowdown is likely … casting downside risk to China’s fragile growth recovery
14,483.98
Virus can also infect pigs, say HKU researchers, who warn officials to maintain tight scrutiny even though threat seems under control ................................................ Jeanette Wang jeanette.wang@scmp.com
HONG KONG Hang Seng Index
2.54% Close:
22,669.68
AUSTRALIA ASX 200 Index
1.99% Close:
5,062.45
131 The number of humans confirmed to have been infected by bird flu, the WHO says
DIGEST
North Korea open to talks, envoy tells Beijing A North Korean envoy who is making a fence-mending trip to Beijing said Pyongyang would accept China’s proposals that it restart talks to restore a peaceful environment on the Korean peninsula, CCTV reported last night. > CHINA A6
HSBC ECONOMIST QU HONGBIN
49.6 from 50.4 in April. Output still climbed, but at a slower rate, while new export orders dropped. Employment also worsened, the survey conducted by HSBC and UK-based data provider, Markit, showed. Yesterday’s slide took the shine off regional stock markets that benefited from Japan’s efforts to stimulate its economy and an improving US economy. The MSCI Asia Pacific Index declined 3.7 per cent to 138.16 as of 3.57pm in Tokyo. The measure had surged 11 per cent this year. The rise in the value of the Nikkei 225 has been more pronounced. It has rallied 41.5 per cent since Shinzo Abe took office in December, promising to revive the economy. Investors seeking to lock in that gain helps explain why the Nikkei fell so sharply versus other regional markets. Stocks were only slightly lower at midday on Wall Street, but European stocks dropped the most in 10 months. London’s FTSE 100 index of leading shares fell 2.10 percent to 6,696.79 points and in Frankfurt the DAX 30 index slumped 2.10 percent to 8,351.98 points. “A slowdown is likely in the middle [of the second quarter], casting downside risk to China’s fragile growth recovery,” said Qu Hongbin, chief China economist at HSBC. Signs of a faltering job market may alert China’s new national leaders to potential social unrest. President Xi Jinping , met hundreds of soon-to-be university graduates at a job fair in Tianjin on May 14, which was viewed by analysts as a sign of the leadership’s concern about weakness in the labour market.
The H7N9 bird flu virus can be transmitted not only through close contact but by airborne exposure, a team at the University of Hong Kong found after extensive laboratory experiments. Though the virus appears to have been brought under control recently, the researchers urged the Hong Kong authorities to maintain strict surveillance, which should include not only poultry but humans and pigs. “We also found that the virus can infect pigs, which was not previously known,” said Dr Maria Zhu Huachen, a research assistant professor at HKU’s School of Public Health. There have been 131 confirmed human infections, with 36 deaths, the World Health Organisation said. All but one of the cases was on the mainland. The virus appears to have been brought under control largely due to restrictions at bird markets and there have been no new confirmed cases since May 8. But Zhu said that although
there was no evidence of sustained human-to-human transmission, their study provided evidence that H7N9 was infectious and transmissible in mammals. In the study, to be published today in the journal Science, ferrets were used to evaluate the infectivity of H7N9. It was found the virus could spread through the air, from one cage to another, albeit less efficiently. Inoculated ferrets were infected before the appearance of most clinical symptoms. This means there may be more cases than have been detected or reported. “People may be transmitting the virus before they even know that they’ve got it,” Zhu said.
Peng Liyuan on Forbes list of powerful women TAIWAN TAIEX Index
1.92% Close:
8,237.83
China’s first lady, Peng Liyuan , is ranked the 54th most powerful woman in the world by Forbes magazine. German Chancellor Dr Angela Merkel was first for the third year. > CHINA A7
Air New Zealand halts shark fin cargo Air New Zealand has stopped carrying shark fin after environmentalists complained the carrier was sending the product to Hong Kong. Cathay Pacific banned the trade last year. > CITY C1
Beijing lining up interest rate reform Beijing may be preparing to scrap the floor for lending rates as early as the end of this year, which would give new impetus to plans to gradually unshackle the yuan. > BUSINESS B1
FOCUS CHINA CSI 300 Index
1.34% Close:
2,582.85
THE DANGERS OF SETTING THE YUAN FREE > PAGES A4-5
WORLD Bloomberg Asia Pacific Developed Markets Index
Thinking outside % the box
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WORLD
‘Crack lies’ no laughing matter Rare support for derided Toronto mayor caught up in drug scandal > PAGE A12
Additional tests using pigs, a major host of influenza viruses, showed that they could also get infected with H7N9. Zhu warned that H7N9 may combine with pig viruses to generate new variants. On a more positive note, it was found that the virus is relatively mild. “Most of the fatal H7N9 cases had underlying medical conditions, so there are probably some other factors that contribute to this kind of fatality,” Zhu said. To avoid H7N9 becoming endemic in poultry populations, which would create a greater opportunity for human transmission, the researchers suggested a rethink on how live poultry markets are managed. Zhu believed the Hong Kong government had “done a very good job” in this area and should continue to do so. The government implemented a surveillance programme on local and imported poultry in 1998. It includes monitoring the live poultry supply chain, pet shops, parks and the wild bird environment. She said the government had collaborated with HKU on intensive surveillance of both birds and pigs. Zhu added that people who regularly had close contact with live poultry or pigs should take precautions, have routine body checks and report their case immediately if they feel unwell.
Three charged in connection with HKMEx inquiry Fourth man still being questioned as financiers doubt rescue bid for failed commodities agency ................................................ Olga Wong, Gary Cheung, Ada Lee and Enoch Yiu Three men were charged last night in connection with the probe into the failed Hong Kong Mercantile Exchange (HKMEx) founded by executive councillor Barry Cheung Chun-yuen. A 55-year-old man surnamed Dai, a 50-year-old surnamed Li and another 50-year-old surnamed Lian were charged with possession of false documents. They will appear in Kowloon City Court today. Another man, 60, is still being questioned. The news came as financiers and a key shareholder of the HKMEx said they were reluctant to be part of a US$100 million capital-raising effort planned by Cheung. Many said they needed
more time to judge the viability of the exchange’s business model. Cheung has become embroiled in an escalating political and financial controversy after the Securities and Futures Commission (SFC) launched an investigation into the HKMEx. The SFC referred the case to police after finding irregularities. Cheung was forced to return the exchange’s trading licence and took immediate leave of absence from all public positions. While he insisted he would not fold the company or resign from his official posts, his political career and the future of the HKMEx is increasingly in doubt. It is estimated the exchange will need several million dollars a month to keep running. Former lawmaker Chim Pui-chung, who > CONTINUED ON A3