Hong Kong

AsiaLynx Top Stories – 1/9/2010

AsiaLynx Top Stories 09.01.2010 Comments Off

Dubai Seeks Chinese Tourists

Dubai Banking On Increased Chinese Tourism: Dubai hopes more Chinese tourists will inject much-needed cash into its tourism industry in 2010: One of the interesting effects of the global economic slowdown has been the growth in outbound tourism among mainland Chinese. Although foreign travel still remains an elite activity despite the large numbers of Chinese tourists appearing in cities like New York, Paris and Tokyo, visa restrictions are easing year by year and rising incomes (as well as a growing middle class) mean that more mainlanders than ever before have the ability to take overseas jaunts. For many retailers, hotels, airlines and tour operators, these Chinese tourists have been a godsend. In an effort to tap into the growing Chinese outbound tourist market, the United Arab Emirates (UAE) stepped up its efforts to woo Chinese tourists in 2009, following the Chinese government’s loosening of visa restrictions. As an article in this week’s National newspaper (Dubai) observes, since last September, tour operators, hoteliers and retailers throughout the emirate have reported an influx of Chinese tourists. (Via Jing Daily :.)

Online shopping boom in China: Shi Fang spends more than 4,000 yuan (588 U.S. dollars) a month shopping, but she rarely goes to the shopping mall. Why need a shopping mall if you have Taobao? I am a Taobaoer,’ says Shi, 28, a freelance writer in Beijing. Taobao, China’s largest online shopping site has become an indispensable part of Shi Fang’ s life. She spends half of her monthly salary to Taobao, logging onto the website every day, even when she doesn’t need anything… (Via China – People’s Daily Online.)

China becomes World’s top exporter: New trade figures released by the German national statistics office show that China is now the world’s leading exporter, ahead of Germany. In the 11 months from January to November, mainland exports reached a total value of US$1.07 trillion. German exports amounted to US$1.05 trillion. (Via RTHK On Internet – Finance News.)

High-speed Hong Kong-Guangzhou railway plan turns political: A plan to build a fast train linking Hong Kong and the Chinese mainland city Guangzhou has snowballed into a political saga for legislators and the public as hundreds of protesters rallied outside the legislature in Hong Kong on Friday. Thousands of people, divided into those supporting and opposing the Guangzhou-Shenzhen-Hong Kong Express Rail Link, a line costing HK$66.9 billion (US$8.6 billion) to build, circled the legislature building while legislators debated in a marathon meeting on funding approval. (Via Kyodo News (Business).)

Acer recalls 22,000 laptop computers: (ChinaPost.com.tw) – Taiwan’s Acer Inc. is recalling about 22,000 laptop computers that could overheat and cause burns. (Via Taiwan Headlines – Business.)

Tags: Acer, Asia business, Asia news, China, computer, Dubai, export, Guangdong, Hong Kong, rail, Taiwan, Taobao, tourism
GM teams up with Shanghai Automotive for $100m joint venture

Hong Kong 05.12.2009 2 Comments

Workers assembling vehicles at the SAIC-GM-Wuling Automobile Co production line in Liuzhou, Guangxi. GM and SAIC together operate eight joint ventures in the country. (Agencies)

By Li Fangfang (China Daily) – General Motors Co on Friday said it has set up a $100 million joint venture in Hong Kong along with Shanghai Automotive Industry Corp Group (SAIC) to focus on the Asian markets.

As part of this, the new venture would bring under its umbrella all the Indian operations of GM including the two vehicle manufacturing facilities, a power train unit and the nationwide distribution network.

GM would also produce and sell small cars and mini-commercial vehicles developed by Shanghai GM and SAIC-GM-Wuling Automobile Co in India under the new joint venture.

“Over the past decade, SAIC and GM have created one of the world’s most successful automotive industry partnerships,” said Nick Reilly, executive vice-president and president of international operations, GM.
“Both companies felt this was the proper time to deepen cooperation beyond China’s borders in order to enhance partnership as part of long-term growth strategies,” he said.

“Changes in the worldwide economy have created new opportunities in emerging markets,” said Hu Maoyuan, chairman of SAIC.

“By leveraging our individual assets and those of our China joint ventures, SAIC and GM are in a strong position to introduce competitive products outside China that will satisfy the needs of consumers in India and other high-potential global markets,” he said. – read more at ChinaDaily.com…

Tags: automobile, China, GM, Hong Kong, SAIC, Shanghai
Hong Kong’s Disneyland says no expansion plans

Hong Kong 30.11.2009 Comments Off

Hong Kong Disneyland

HONG KONG (ChannelNewsAsia): Hong Kong’s Disneyland on Monday dismissed a report that it is mulling a further expansion in a bid to compete with a planned new park in Shanghai.

The Hong Kong Economic Times cited an unnamed source as saying that Disneyland is considering a further enlargement, after it announced a deal in July to expand the venue by almost one quarter.

But a Disneyland spokeswoman said there was no such plan.

“The current position is to implement the extension plan as agreed in July with the development of the three themed areas in phases. There has been no discussion on further expansion,” she told AFP.

Under the deal announced in July, Disney would invest 6.2 billion Hong Kong dollars (795 million US) to build 30 new attractions over the next five years.

The government will retain control of the park with a 52 per cent ownership stake.

Since its opening in 2005, Hong Kong Disneyland has been desperate to boost the number and quality of its attractions at the three billion US dollar venue as it struggles to attract visitors. – read more at ChannelNewsAsia.com…

Tags: Disney, Disneyland, Hong Kong, Shanghai
Cathay Pacific seeks deal on Hong Kong airport charges

Hong Kong 24.11.2009 Comments Off

Cathay Pacific jets in Hong Kong

Mandy Lo (The Standard) – Cathay Pacific Airways is in talks with the Hong Kong Airport Authority to extend concessions on parking and landing charges so as to “keep a very close eye on costs.”

“The rebate applies to the end of December and we are now asking the Airport Authority to extend it into next year, which would be welcomed by all airlines using Hong Kong International Airport,” said chief operating officer John Slosar.

The authority introduced a relief package in April to help airlines using Chek Lap Kok. The concessions comprised a 10 percent cut in landing and parking fees, which will cost the authority HK$200 million, and an interest-free deferral of rental payments.

The authority is studying a request by the industry group, the Board of Airline Representatives, to extend the discounts.

Cathay’s landing, parking and route costs declined 8.3 percent to HK$5 billion for the first half of the year, accounting for 17.05 percent of its total operating expenses.

“The concessions did help Cathay but it can only save a very insignificant amount from a 10 percent discount in landing and parking fees,” Quam analyst Allen Wong Kin-sing said.

Slosar said: “If we face a situation where costs like oil are rising as our revenues remain flat, we will surely see the squeeze on our margins continue.” Brent spot doubled to US$80 (HK$624) a barrel from US$40 in January.

Hong Kong’s largest airline had one of its strongest weeks last week on improving cargo business and more premium traffic, Slosar said.

“Looking ahead, December bookings are marginally ahead of 2008 in economy class but remain flat in the front end. January and February are still looking slow but that may be because of the current trend for late bookings,” he said.

Demand for cargo business is very strong with a “big backlog” in Hong Kong. – read more TheStandard.com…

Tags: Airlines, Cathay Pacific, Chek Lap Kok, Hong Kong
eBay plans to more than double business in Asia over next few years: CEO

Hong Kong 23.11.2009 1 Comment

eBay headquarters in Singapore

By Rachel Kelly, Channel NewsAsia – SINGAPORE: The world’s largest online marketplace eBay is planning to expand beyond Hong Kong and more than double its business in Asia over the next few years.

The aggressive plans come after the company saw its mainstay e-commerce business as well as its money transfer arm PayPal grow strongly despite the economic crisis.

Almost half of the world’s internet users live in Asia and the growing affluence in the region represents a significantly untapped market for the online marketplace eBay.

It predicts that more consumers are looking to stretch their dollar through online shopping.

With that, eBay’s money transfer business PayPal, which accounts for a third of its revenues, is also expected to do well.

John Donahoe, president & CEO, eBay, said: “Even in the face of the global economic recession, both eBay and PayPal cross border business are growing greater than 50 per cent.

“So we have set goals to more than double in the Asian region over the next three years and I’m more than comfortable that we are going to exceed that.”

Declining to give actual figures, eBay does say that in 2009, more than half of PayPal’s growth is expected to come from outside the US.

There are about 12 million PayPal accounts currently in Asia and that number is set to grow.

To cater to regional demand, eBay has already boosted the number of currencies that PayPal can transact in.

Just this month, it added the Taiwan dollar, Philippine Peso, Malaysian Ringgit and Thai Baht to the existing stable, which include the Japanese Yen, Chinese Yuan and Singapore Dollar.

The other existing currencies are the New Zealand Dollar, Australian Dollar and Hong Kong Dollar. – read more at ChannelNewsAsia.com…

Tags: Asia, eBay, Hong Kong, PayPal
New Hong Kong rail station “like having another airport”

Hong Kong 17.11.2009 1 Comment

The West Kowloon Express Rail station, scheduled for completion in 2015

Patsy Moy (The Standard) – The West Kowloon terminal for the Express Rail Link will be more than two-thirds the size of the Hong Kong Airport Terminal 1, though much of it will be underground.

It will feature greener designs and be packed with energy-saving devices, although the upper floor and roof will use glass panels to allow as much natural light as possible, MTR Express Rail Link general manager Paul Lo Po-hing said yesterday.

The four-story building will provide more open spaces and green zones at ground level, instead of the conventional wall effect of a tall building, with nine platforms for long-haul trains and six for short- haul, 144 immigration counters and 600 car parks to accommodate 10,000 travelers per hour.

The company has also reserved an area for a one-stop immigration clearance point.

The gross floor area is around 380,000 square meters.

“It will be like having another airport in terms of its size and function,” design manager Frank Yuen Cheung-fan said.

Yuen said the size of the station is more than 70 percent of the airport’s Terminal 1 and more than double Hong Kong Station.

Construction of the station, part of the HK$55 billion Guangzhou-Shenzhen-Hong Kong Express Rail Link project, will begin at the end of the year and is scheduled to be completed in 2015.– read more at The Standard…

Tags: Express Rail, Hong Kong, Kowloon, Railroads
Hong Kong’s Harbour City hopes Christmas surge will deliver sales record

Hong Kong 09.11.2009 Comments Off

Hong Kong's Harbour City

Nickkita Lau (The Standard) – High-end sales helped Hong Kong’s giant Harbour City shopping center to grow more than 10 percent in the first nine months of the year with a total of HK$10.4 billion in turnover.

The Canton Road shopping center in Tsim Sha Tsui is hoping the spike in sales will continue and has budgeted HK$13 million for Christmas promotion.

“This growth could be attributed to the revival of consumer confidence,” assistant general manager (leasing) Canis Lee Lai-yi said yesterday.

According to her, the growth in the first six months was rather slow at 6 percent, but it bounced back strongly as shoppers have adapted to the human swine flu pandemic and signs of economic recovery have surfaced.

Lee said based on the current performance and the expected surge in retail sales in the Christmas peak season, annual retail sales are likely to break last year’s record of HK$13.4 billion.

The rent for new tenants and renewed leases has increased 25 percent, with the per- square-foot rents starting at HK$200 to HK$600 or even higher.

Lee said as long as sales are satisfactory, tenants are willing to pay a reasonable rent.

Lee does not consider the opening of more malls in the area as a threat to Harbour City since the formation of a retail cluster will boost the appeal of Tsim Sha Tsui as a shopping destination for tourists. read more at The Standard…

Tags: Christmas, Harbour City, Hong Kong, retail
Failure of San Francisco’s United Commercial Bank extends to Hong Kong, Shanghai

Hong Kong 08.11.2009 Comments Off

United Commercial Bank - San Francisco

United Commercial Bank, San Francisco, which has 63 branches in the U.S., along with extensive locations in Hong Kong and China, was closed Friday by the California Department of Financial Institutions.

The state authority appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.

United Commercial was one of five banks seized by regulators on Friday, and one of 120 seized this year. It was by far the biggest bank closed Friday. The closure will cost the FDIC fund around $1.4 billion.

To protect the depositors of United Commercial Bank, the FDIC has entered into a purchase and assumption agreement with East West Bank, of Pasadena, California, to assume all of the deposits of United Commercial Bank. This agreement included all U.S. branches of United Commercial Bank, the Hong Kong branch of United Commercial Bank, and the subsidiary of United Commercial Bank headquartered in Shanghai, China, United Commercial Bank (UCB-China).

The 63 U.S. branches of United Commercial Bank will reopen during their normal business hours Saturday as branches of East West Bank. All locations in Hong Kong and China will reopen on Monday, according to normal business hours. In addition, UCB-China, the Shanghai, China, subsidiary of United Commercial Bank, which was also part of Friday’s transaction, will continue its regular banking operations without interruption with the full support of its parent company, East West Bank, whose qualification, according to an FDIC statement, has already passed the preliminary review by the China Banking Regulatory Commission.

Depositors of United Commercial Bank will automatically become depositors of East West Bank. Domestic deposits will continue to be insured by the FDIC, and the Hong Kong deposits will continue to be covered by the Hong Kong Deposit Protection Scheme and the full deposit guarantee currently in force in Hong Kong. The FDIC says it is in close cooperation with the Chinese banking regulatory authority regarding regular operations of UCB-China. read more at HongKongHerald.com

Tags: bank failure, Hong Kong, San Francisco, Shanghai, United Commercial Bank
Macau funds employers to hire young people

Hong Kong 31.10.2009 1 Comment

Macau at Night

MACAU, Oct. 30 (Xinhua) — The government of the Macau Special Administrative Region (SAR) has provided allowances to local employers who hire young people aged below 26 and with no working experience, the Macau Daily Times reported on Friday, quoting the SAR’s labor chief as saying.

The authorities attached importance to issues concerning young people employment and have used different channels to provide teenagers with up-to-date employment information, the daily quoted the SAR’s Labour Affairs Bureau Director Shuen Ka Hung as saying.

According to Shuen, the bureau not only set up “recruitment and employment matching” on the Internet, but also held career talks so as to help improve local young people’s understanding of Macao’s employment market. read more at news.xinhuanet.com…

Tags: employment, Hong Kong, Macau
Hong Kong administration ready to step in if property overheats

Hong Kong 28.10.2009 Comments Off

Hong Kong's developers want cheaper plots from the government

Alfred Liu , The Standard, Wednesday, October 28, 2009 – The Hong Kong administration “will step in decisively” to prevent unfairness and instability emerging in the real estate market, which has seen prices climbing to record highs amid land supply shortage, a government source told The Standard.

After meeting Financial Secretary John Tsang Chun-wah yesterday, the city’s biggest property developers said they want cheaper plots from the government, which is set to fine-tune its land supply policy. Executives including Cheung Kong (Holdings) deputy chairman Victor Li Tzar-kuoi, Sun Hung Kai Properties vice chairman Thomas Kwok Ping-kwong, Sino Land chairman Robert Ng Chee-siong and Great Eagle chairman Lo Ka- shui met Tsang at government headquarters for about an hour.

Tsang discussed issues concerning Hong Kong’s land supply system and property prices, telling the developers he is concerned soaring prices for luxury homes may lead to price surges in the mass market, according to the source.

The government still hopes prices will adjust through market mechanism.

“But if there is anything unfair or unhealthy happening in the property market that affects economic development or people’s livelihood, the government will step in decisively,” the source said.

Given the difficulty of meeting the government’s land auction requirements, representatives from the Real Estate Developers Association stressed they support the government’s land sale application list system, while seeking changes.

“The developers are asking the government to assess the value of land sites closer to prevailing market prices for developers, to trigger them easier from the application list,” said association vice chairman Stewart Leung Chi- kin, who is also an executive director at New World Development.

The developers also hope the government will increase the opportunities for selling land via applications, Leung said. read more at TheStandard.com.hk…

Tags: Hong Kong, real estate