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Economic 'Tsunami' Tarnishes Hong Kong Jewelry Trade

Hong Kong's jewelry market is slumping due to slowing external demand for luxury goods in light of the global economic crisis.

Hong Kong's jewelry market is slumping due to slowing external demand for luxury goods in light of the global economic crisis. Hong Kong is the world's fourth largest jewelry exporter and is a leading center for diamond and pearl auctions. In 2008, jewelry exports totaled $4.7 million dollars, up 10% from the previous year. However, slowing demand from Hong Kong's biggest jewelry importers such as the United States and Europe, have deeply affected exports in the last couple months. Jewelry exports fell 30% in January compared to the same month last year. Hong Kong's economy is currently suffering its first recession in five years.

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Hong Kong's Stimulus Has Been Effective

In a recent visit, the IMF has reported positive changes in Hong Kong's financial system assuring that measures taken by the government have been effective and that Hong Kong's banking system remains, stable, very liquid and well capitalized.

The IMF accredited Hong Kong's financial resilience to a strong monitoring system. The government has placed significant effort on the development of its infrastructure driven stimulus allowing for a forecasted 2% economic growth for Hong Kong this year.

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Hong Kong: CNPC Unit Eyes More Mainland Gas Projects

CNPC Hong Kong Ltd has announced plans to acquire further city-gas distribution projects from China National Petroleum Corp., the country's biggest petroleum producer.

CNPC Hong Kong Ltd has announced plans to acquire further city-gas distribution projects from China National Petroleum Corp., the country's biggest petroleum producer. CNPC is already moving towards the completion of the acquisition of a 97.26% stake in Xinjiang Xinjie Co. CNPC hopes that the acquisitions will benefit the governments goal to double the use of cleaner-burning fuel by the end of 2010. Moreover, CNPC hopes that it will gain from potential increases in China's fuel prices in the future.

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Hong Kong Falls Into Recession

Hong Kong fell into recession in the third quarter as the global economic slowdown continues to impact its economy.

Hong Kong fell into recession in the third quarter as the global economic slowdown continues to impact its economy. Hong Kong's GDP fell 0.5% from the previous quarter and the full year GDP growth is now expected to be between 3-3.5%, much lower than the originally forecast of 4-5%.

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Revival may wait until after Games as stocks plunge

Hong Kong stocks plunged 2.1 percent yesterday to hit a new one-year low, as the recent wave of selling spread to Hong Kong banks and property plays.

First Shanghai Securities strategist Linus Yip Sheung-chi said The Hang Seng Index may fall below 20,000 in the short term after dropping 446.3 points to end the day at 20,484.37. "There is no buying interest in the market," said Tung Tai Securities associate director Kenny Tang Sing-hing, adding that the market may not see a revival until after the Olympics.

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Hong Kong Metals export values up 15.9%

The Census & Statistics Department of Hong Kong reported that the export value of basic metals and fabricated metal products rose by 15.9 percent and also chemicals and chemical products rose 6.4 percent in the second quarter.

According to the Census & Statistics Department of Hong Kong, the domestic export value of basic metals and fabricated metal products rose 15.9 percent and chemicals and chemical products rose 6.4 percent. However,the domestic export value of machinery, equipment, apparatus, parts and components fell 14.1 percent on a year earlier and textiles dropped 35.7 percent in this year. For consumer electrical and electronic products, the domestic export value dipped 15.5%, to $2.9 billion, while wearing apparel fell 26.7%, to $2.7 billion.

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HK's credit ratings upgraded

Hong Kong's flexible economy and sound banking sector expected to maintain a 5% economic growth trend after the upgrade by credit-rating agency, Standard & Poor's.

Hong Kong's foreign currency sovereign rating was recently upgraded by credit-rating agency, Standard & Poor's. The upgrade is linked to Standard & Poor's advancement of mainland China's foreign currency rating from "AA" to "AA+" which could help to integrate Hong Kong's economy and further improvement in the Mainland's credit strengths.

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Hong Kong Oil prices reverse sharply as dollar strengthens UPDATE

Crude Oil price exceeds $120 per barrel.

OPEC President Mr.Chakib Khelil said " the crude prices above $120 a barrel because of the US strong currency and tensions on Iran" Khelil also added, if the dollar continues to strengthen and the political situation in Iran improves, then the long-term prices will be about 78 dollars.

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EFTA , Hong Kong keen on FTA with Malaysia

EFTA and Hong Kong has suggested Malaysia to form FTA blog.

The EFTA which consists of four countries, Switzerland, Norway, Iceland and Lichtenstein has suggested Malaysia to form FTA blog. According to Minister of International Trade and Industry Tan Sri Muhyiddin Yassi,Hong Kong and Switzerland have an eye on new markets in financial services and the high-precision technology industry In Malaysia.

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Hong Kong June exports down 0.6 percent year-on-year UPDATE

Hong Kong exports fall for the first time in 2 years

On Thursday, Hong Kong's government said export sales of goods both to the U.S. and China fell far short of expectations. Hong Kong's exports fell 0.6 percent in June after a 10.3 percent annual increase in last month. Sale of office machines fell 15 percent, and electrical machinery and appliances, which both are Hong Kong's top exports, fell 7.9 percent.Telecommunication gadgets fell 6.5 percent.

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$11b on Table to Ease Hong Kong Inflation Pain

To offset the effects of rising inflation in Hong Kong, Chief Executive Donald Tsang Yamkuen announced an HK$11 billion inflation relief package.

To offset the effects of rising inflation in Hong Kong, Chief Executive Donald Tsang Yamkuen announced an HK$11 billion inflation relief package. Tsang's ten-point plan includes a student subsidy and assistance for lower income groups to buy food. The revaluation of the Hong Kong dollar was also discussed. However, even if the Hong Kong dollar appreciated 10%, inflation would not be significantly lowered.

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$5b Inflation Relief On Way

To curb the effects of inflation in Hong Kong, which stood at 5.7 percent in May, Chief Executive Donald Tsang Yam-kuen is to announce a HK$5 billion inflation relief package.

To curb the effects of inflation in Hong Kong, which stood at 5.7 percent in May, Chief Executive Donald Tsang Yam-kuen is to announce a HK$5 billion inflation relief package. The relief package will include free rent, additional fruit money for the elderly, and an increase in the School Textbook Assistance Scheme. Recipients of Comprehensive Social Security Assistance will receive an extra month's allowance and people in public housing will get an exemption from paying rent for one month.

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Hong Kong Slaughters All Market Poultry

Health officials ordered to kill all the market poultry in Hong Kong on Wednesday to against one of the largest outbreaks of the bird flu virus in years.

Health officials ordered to kill all the market poultry in Hong Kong on Wednesday to against one of the largest outbreaks of the bird flu virus in years. It was unclear how many birds would be killed or how many were infected, but around 3,500 chickens were for sale by nearly 470 retail vendors citywide as of Tuesday night.

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Market Wrap: HSI Down 456 pts on The Slump of China Telecom Firms

Hong Kong's benchmark,Hang Seng Index was down 455.6 pts or 1.8%, at 24,375.8, Hang Seng China Enterprise Index, was down 404.4 pts or 2.9%, at 13,622.0, and the Shanghai Composite Index was down 22.6 pts or 0.65%, at 3,436.4 after China telecom firms announced their restructuring details.

Hong Kong's benchmark,Hang Seng Index was down 455.6 pts or 1.8%, at 24,375.8, Hang Seng China Enterprise Index, was down 404.4 pts or 2.9%, at 13,622.0, and the Shanghai Composite Index was down 22.6 pts or 0.65%, at 3,436.4 after China telecom firms announced their restructuring details. China Unicom (762) plunged $2.6 or 14.1%, at 15.88. China Netcom (906) slumped $3.45 or 12.8%, at $23.6. China Telecom slumped $0.72 or 12.7%, at $4.95.

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Financial Hub Vulnerable as Lax Security Raises Risks

A series of recent security breaches threaten Hong Kong's position as a financial hub.

A series of recent security breaches threaten Hong Kong's position as a financial hub. Police have identified three officers as responsible for the recent leakage of police files and undercover operations. The suspects reportedly copied data onto their PCs in using Foxy file-sharing software.

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Metal Domestic Export Value Up 56.3 Percent

The six major industries of Hong Kong made up 77 percent of its total domestic export value for the first quarter of 2008.

The six major industries of Hong Kong made up 77 percent of its total domestic export value for the first quarter of 2008. The export value of basic metals and metal products went up to 56.3 percent. The major industries include textiles, consumer electrical and electronic products, apparel, chemicals and chemical products, basic metals and fabricated metal products, and machinery, equipment, apparatus, parts, and components.

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Hong Kong’s Exports to Mainland Grow 10 percent 2007

Hong Kong's total exports to the China for processing and exporting rose 10 percent to HKD 451.5 billion.

Hong Kong's total exports to the China for processing and exporting rose 10 percent to HKD 451.5 billion. Hong Kong's imports from China for exporting just rose 1 percent to HKD 780 billion. During the fourth quarter HKD 11.2 billion of total exports to the mainland were for outward processing.

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MTRC Net Earnings up 95.69 percent

The Mass Transit Railway Corporation saw its net earnings rise over 95 percent while revenue rose 12 percent to USD 10.69 billion

The Mass Transit Railway Corporation saw its net earnings rise over 95 percent while revenue rose 12 percent to USD 10.69 billion. Profits in other sectors such as property rose significantly from USD 5.81 billon to USD 8.3 billion.

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Thailand and Philippines Considered Most Corrupt Asian Economies according to Survey

According to the Political and Economic Risk Consultancy (PERC), the Philippines, Thailand, Indonesia and China are among the most corrupt Asian economies.

According to the Political and Economic Risk Consultancy (PERC), the Philippines, Thailand, Indonesia and China are among the most corrupt Asian economies. Singapore and Hong Kong retained their standing as the cleanest economies in Asia. The survey only covers 13 countries and does not include countries notorious for corruption such as Bangladesh and Myanmar. The poll consisted of nearly 1,400 expatriate businessmen and was conducted in January and February of this year.

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Hong Kong based Apparel Company to Invest USD 30 Million in Bangladesh Factories

Kwun Tong Apparels, A Hong Kong based woven apparel factory, is set to invest USD 30 million to expand their production capabilities in Bangladesh and add 8000 new jobs.

Kwun Tong Apparels, A Hong Kong based woven apparel factory, is set to invest USD 30 million to expand their production capabilities in Bangladesh and add 8000 new jobs. The major buyers from Kwun Tong Apparels are currently JC Penny, Wal-Mart and Federated. Kwun Tong Apparels went into production in 2006 with an initial investment of USD 20 million and employs 2000 workers.

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hongkong

Feng Shui Predictions for the Year of the Mouse

The new year in China means big business for Feng Shui experts as they dispense advice, advice often taken seriously by business and government officials.

The new year in China means big business for Feng Shui experts as they dispense advice, advice often taken seriously by business and government officials. The year of the mouse symbolizes a new beginning (mouse is the first of 12 animal signs) to many, for example during the previous 3 mouse years the Hong Kong stock market increased 232 percent, 30 percent, and 18 percent. Even for those that disbelieve any predictions, their influence can be widespread.

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hongkong

Asian Markets Decline

Chinese markets fell Monday Jan 28 following losses in the US at the end of the previous week.

Chinese markets fell Monday Jan 28 following losses in the US at the end of the previous week. The Shanghei Composite Index declined 7.19 percent and the Shenzen Component Index declined 6.45 percent. Other Asian Markets also fell; the Nikkei 225 Index declined 3.97 percent and the Hang Seng Index declined 4.25 percent.

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hongkong

Russian Aluminum Giant Considers an IPO in Hong Kong

Russian aluminum giant Rusal considers IPO in Hong Kong

Russian aluminum giant Rusal considers IPO in Hong Kong. Previously Rusal planned to list in London. However, the listing in Hong Kong is more attractive due to greater demand for the IPO in the east. Stricter securities' regulations in London were also the cause for the change of venue plans. The date of the IPO has not yet been announced.

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Chinese and Asian Stock Markets Fall

Stock markets in China and the rest of Asia were down again Tuesday Jan 22, 2008, following losses the previous day.

Stock markets in China and the rest of Asia were down again Tuesday Jan 22, 2008, following losses the previous day. The Shanghei stock market composite index declined 7.22 percent, Hong Kong's Hang Seng index was down 8.65 percent and Japan's Nikkei 225 index lost 5.65 percent.

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hongkong

PwC Tips Huge $105b Surplus

the government's budget surplus for the current fiscal year may reach an all time high HK$105 billion, more than 4 times the HK$25.4 billion forecast.

Driven by a robust stock market and high land revenues, the government's budget surplus for the current fiscal year may reach an all time high HK$105 billion, more than 4 times the HK$25.4 billion forecast. The accountancy firm sees additional stamp duty and land sales to total more than HK$54 billion, making up half the estimated surplus.

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Changes May be Ahead for Shanghei Stock Exchange

Changes to make the Shanghai Stock Exchange (SSE) more efficient have been recommended in a recent report by the SSE and Hong Kong's Taifook Securities Group.

Changes to make the Shanghai Stock Exchange (SSE) more efficient have been recommended in a recent report by the SSE and Hong Kong's Taifook Securities Group. Recommendations include changes to trading suspension rules, supervision of market irregularities and corporate disclosure. The changes would move the SSE towards a model used by the Hong Kong Stock Exchange.

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Dollar Jitters Catapult Gold to Historic High

Gold yesterday surged to a historic high above US$910 an ounce, as investors rushed into buy the metal on further weakness in the dollar.

Gold yesterday surged to a historic high above US$910 an ounce, as investors rushed into buy the metal on further weakness in the dollar. The gold rally also prompted buyers to snap up other precious metals, with platinum hitting a record high, silver prices touching a 27 year peak and palladium rising to its highest level in more than 2 months. Gold's rapid advance with prices jumping 50 percent in the past year, including a 15 percent rise in the past 30 days, made the metal vulnerable to sharp corrections but it has potential to gain further.

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hongkong

Scheme of Control Deal Fails to Dampen Hopes for Utilities

Benefits to come to Hong Kong power companies despite their projected rate of return.

Hong Kong's two primary power companies will benefit from their new scheme of control agreement with the government despite reducing their rate of return. The Two companies can enjoy a return of 9.99 percent on their fixed assets, down form 13.5-15 percent. Morgan Stanley estimates the new accounting policy can enhance the rate of return by 1 to 2 percent to reach 10.99 percent to 11.99 percent.

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Merchants Bank Beat Forecasts Earning 15b Yuan

Merchants Bank Exceed Expectations

China Merchant Bank reports that they will record a record 110 percent rise in annual earnings to 15 billion Yuan (HK$16.08 billion). This is due to an increase in loans, interest spreads and non-interest income growth. However, the performance of the mainland financials is still clouded by tightening measures. The benchmark h shares financial index dived 2.3 percent to close at 17,038. China Merchants Bank fell 3.22 percent and ended at HK$30.10.

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Jobless Rate Falls to 3.6pc

Hong Kong's unemployment rate dropped to a 9 year record low for September to November.

Hong Kong's unemployment rate dropped to a 9 year record low for September to November. According to the Census and Statistics Department, unemployment hit its lowest level since the 3.9 percent reported for February-April 1998. Economists have speculated that next year's employment rates are highly dependent on the US market.

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Cathay Airlines Flight Attendants Protest

As a result of a new medical plan, Cathay Pacific flight attendants protested on Monday and unions say there could be a Christmas strike.

As a result of a new medical plan, Cathay Pacific flight attendants protested on Monday and unions say there could be a Christmas strike. General secretary for Cathay Pacific Airways flight attendants union, TK Lee, said no meeting was scheduled as of yet to meet with the airline to hold discussions. The new insurance policy will charge HKD 30 for a doctor's consultation and HKD 50 for a specialist, while the old policy did not charge.

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Hong Kong Stocks Increase

Hong Kong's stock market index, the Hang Seng Index rose 725.74 points on Tuesday, December 11, 2007.

Hong Kong's stock market index, the Hang Seng Index rose 725.74 points on Tuesday, December 11, 2007. A few market giants contributed significantly to the increase. China Mobile, China's largest stock on the Honk Kong Stock Exchange contributed 130.44 points to the increase. HSBC (Hong Kong Banking Services), "The world's local bank," lifted the Hang Seng Index 91.78 points.

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Hutchinson Whampoa to Buy Stake in Company

Hutchinson Whampoa will increase it's holding in Hutchinson Telecom

Hutchison Whampoa Ltd, parent company of Hutchinson Telecommunications International Ktd., agreed to buy a 14.2 percent holding of the company held by Orascom Telecom Holdings Ltd. Hutchinson Whampoa will increase it's holding in Hutchinson Telecom from 50.11 percent to 59.33 percent. Upon news of the deal, shares in Hutchinson Telecommunications, who has a customer base of 9.1 million, rose sharply.

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Hong Kong Government Critic of Disneyland

Due to failing visitor numbers, the Hong Kong government has criticized management of Disneyland Hong Kong.

Due to failing visitor numbers, the Hong Kong government has criticized management of Disneyland Hong Kong. While it is one of the largest employers and boosted job opportunities, it has fallen short of the projected 5.5 million visitors in 2006. The government, which owns 57 percent of the theme park, has said Disneyland has had its benefits but will continue to urge management to improve business strategy and operations as well has enlarging the small park.

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The Perks of Living in Hong Kong, Low Income Tax

Hong Kong was named by Mercer's Worldwide Individual Tax Comparator Report as one of the top places having low income tax.

Hong Kong was named by Mercer's Worldwide Individual Tax Comparator Report as one of the top places having low income tax. The personal tax regimes in United Arab Emirates and Russia have also been listed at the top. Hong Kong landed third as tax and social security amounted to 14.2 percent of the gross base salary. Taxes in Hong Kong were better for those who were married with two children as the rate then was 8.9 percent and the rate for those with no children was 11.5 percent.

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McDonald's Hong Kong Director Accused of Taking Bribes

The current managing director of McDonald's in Hong Kong has been charged with taking bribes.

The current managing director of McDonald's in Hong Kong has been charged with taking bribes. Lau Si-sing, who apparently has been accepting bribes from a Thailand based food supplier, faces three counts that include trying to pervert the course of justice and accepting kickbacks. Allegedly he had received almost 10 percent of orders in gifts. McDonald's has claimed they do not support illegal activity and has suspended Lau without pay for the time being.

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Energy Poses a Threat to Batman in Hong Kong

The movie industry is apparently not welcome in Hong Kong, as the cast and crew of Batman discovered.

The movie industry is apparently not welcome in Hong Kong, as the cast and crew of Batman discovered. The producers have come under fire as they have asked tenants in waterfront buildings to keep their lights on during the filming to showcase the city's skyline. Several environmentalists said the request was inappropriate as Hong K ong needs to conserve energy. Gabrielle Ho, of Green Sense said, "It seems like film-making is coming before environmental protection." Other setbacks for the film include Batman's inability to drop into the harbor due to the poor water quality and concerns about potential noise problems. Despite environmentalists discontent over the producers letter to tenants, as the Hong Kong Tourism Board pointed out, it is up to the tenants to participate or not.

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Alibaba.com Debuts in Hong Kong Stock Market

Alibaba.com, an e-commerce portal, witnessed a high debut at the Hong Kong stock market.

Alibaba.com, an e-commerce portal, witnessed a high debut at the Hong Kong stock market. The website allows both Chinese and Overseas investors to trade online. Numerous analysts fear that the soaring debut is unsustainable and the price was not an accurate reflection of Alibaba's true value. Its issue price was HKD13.50 and the price peaked at HKD39.95. Ma Yun, founder of Alibaba.com hopes his company will become a "leading e-commerce platform for China, Asia, and even the world."

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Hong Kong Private Sector Booming

Hong Kong's private business sector proves to be growing despite decreased orders from China.

Hong Kong's private business sector proves to be growing despite decreased orders from China. In October, the Hong Kong PMI was 53, while slightly below September's; a reading above 50 suggests growth in the private sector. The PMI has remained above 50 for 34 straight months and it reached a peak of 54.7 December. While the pace of job creation remains slow, firms are still hiring and wage costs are rising.

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Hong Kong Market Declines at Close

The Hong Kong stock market, which has raised significantly over the past two months due to strong buying interest by both banks and mainland funds, took a sharp decline as it closed Friday.

The Hong Kong stock market, which has raised significantly over the past two months due to strong buying interest by both banks and mainland funds, took a sharp decline as it closed Friday. Hong Kong's Hang Seng lost 2.1 percent. The Industrial and Commercial Bank of China, which fell 4.4 percent to USD6.50, as well as other prominent companies listed in Hong Kong led the decline. Matthew Kwok, research head at Tanrich Securities, has said, "The market has risen so much in the last two months and we expect a correction at some point. It's hard to say when exactly, but the market is likely to consolidate further in the coming week." Warren Buffett reduced Berkshire Hathaway's holding in PetroChina for the seventh time since July, lowering it to 3.1 percent.

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Hong Kong Government Attempts to Revitalize Movie Industry by Investing HKD300 Million

Struggling actors in Hong Kong will have less to worry about as the Hong Kong government has presented a HKD300 million fund to the movie business.

Struggling actors in Hong Kong will have less to worry about as the Hong Kong government has presented a HKD300 million fund to the movie business. By setting numerous restrictions, applicants must be Hong Kong registered countries, post-production should be done in Hong Kong and it must contain local talent, the Hong Kong government is hoping to foster local talent and revive the struggling industry. In addition to the funding, the Chinese Guangdong province will be allowed to import Hong Kong films directly instead of hindering with the national quota of foreign films.

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Hong Kong Market Surpasses HKD20 Trillion Mark

The Hong Kong stock market became one of the strongest performers in the world when the Hang Seng's market capitalization passed HKD20 trillion.

The Hong Kong stock market became one of the strongest performers in the world when the Hang Seng's market capitalization passed HKD20 trillion. The Hang Seng China Enterprise index closed at 17,017 percent, a record high. This success comes after the United States rate cut on September 18. Many foreign investors are looking to Asia as several economists have said Asia will be able to handle the US sub-prime crisis. The continuous growth of consumption in addition to the strength of both the Indian and Chinese economies will allow for Asia to off-set the slowdown of the US. Clients have been told by UBS, a leading investment bank in Hong Kong, that Asian banks have "extremely limited exposure" to the US sub-prime mortgage market.

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Hong Kong Shows Effort to Remain Asia's Financial Center

In an attempt to secure it's role as Asia's financial center, Hong Kong authorities held the Asian Financial Forum.

In an attempt to secure it's role as Asia's financial center, Hong Kong authorities held the Asian Financial Forum. Financial guru's such as former president of World Bank James Wolfensohn, Morgan Stanley Asia chairman Stephen Roach and chief executive of Hong Kong Monetary Authority Joseph Yam, were in attendance to debate Hong Kong's financial future. Shanghai has been threatening to take over as Asia's new financial hub. Lawrence Lau, Vice-Chancellor of Chinese University of Hong Kong has expressed his hope for Hong Kong by stating, "Asia including China will be the global center for raising capital in the next generation based on its high economic growth, savings rate and substantial capital inflow."

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Government Limits Amount One can Invest in Hong Kong Equities

The amount that individuals can invest in Hong Kong equities will be limited by the Chinese government under a pilot program known as SAFE, State Administration of Foreign Exchange.

The amount that individuals can invest in Hong Kong equities will be limited by the Chinese government under a pilot program known as SAFE, State Administration of Foreign Exchange. SAFE will allow more money to flow out of China in attempt to relieve the pressure on the yuan to appreciate. Unfortunately, a slump in domestic stock, which is already one of the world's most expensive according to price to earnings ratio, could be caused by the accelerated outflow. The program will re regulated and SAFE will assess market activity after a certain quota is met.

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HKC Net Profit Soars 143 Percent Based On Mainland Property Boom

Property developer HKC has benefited from the China's booming property market, as is evident in the 143 percent surge in net profit to HK$603.3 million for the first half of the fiscal year, ending June 30.

Property developer HKC has benefited from the China's booming property market, as is evident in the 143 percent surge in net profit to HK$603.3 million for the first half of the fiscal year, ending June 30. HKC stated substantial revalutation gains for its property portfolio resulted from increasing property prices. It stated it was able to acquire land at favorable prices despite rising prices in the mainland.

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KPMG Predicts HIBOR To Fall Further

International accounting firm KPMG is predicting that the Hong Kong interbank offered rate (HIBOR) will decrease even further. KPMG is predicting the HIBOR will decline in the long-term, tracking further interest rate cuts in the U.S.

International accounting firm KPMG is predicting that the Hong Kong interbank offered rate (HIBOR) will decrease even further. KPMG is predicting the HIBOR will decline in the long-term, tracking further interest rate cuts in the U.S. HIBOR was slashed 25 bsis points to 4.5 percent on Wednesday, after the U.S. Federal Reserve cut its benchmark lending and discount rates by 50 basis points to 4.75 percent. The HIBOR had previously been rising due to initial public offering activities, which benefited local banks. Chinese banks make up a large proportion of the market capitalization for banks listed in Hong Kong, at 66 percent.

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Hong Kong Blue Chip Stocks Slight Decline Precede U.S. Federal Reserve Meeting

Today, Hong Kong blue chip stocks dropped 1.2%, breaking a three-session record streak. This drop comes one day before the U.S. central bank's rate decision meeting.

Today, Hong Kong blue chip stocks dropped 1.2%, breaking a three-session record streak. This drop comes one day before the U.S. central bank's rate decision meeting. In anticipation of the Fed's rate decision meeting, the benchmark Hang Seng Index ended 298.77 points lower at 24,599.34 on lightmainboard turnover of HK$81.1 billion, comparied to Friday's HK$101.5 billion. In addition to the Hong Kong stock market, most regional stock markets were down, as the Fed's meeting kept many investors on the sidelines.

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Dore Holdings Buys Gaming Profit Rights in Macau for HKD 993.6 Million

In a Hong Kong stock exchange filing on Tuesday, Dore Holdings Ltd., the Hong Kong-based interior decorator and heavy investor in Macau casinos, has bought the rights to earnings from high-roller gambling junkets for HKD 993.6 million (USD 128 million). Dore Holdings will pay cash, new shares and convertible bonds for 60 percent of Triple Gain Group Ltd., which is entitled to the profit of junket operator Nove Sociedade Unipessoal Ltd. Junket operators are promoters who entice high rollers to casinos, occasionally lending funds to their clients. Considering the recent unveiling of Las Vegas Sands Inc.'s new Venetian, the competition between Macau's casinos is rapidly increasing and causing junket commissions to rise in China's only region that permits casinos.

In a Hong Kong stock exchange filing on Tuesday, Dore Holdings Ltd., the Hong Kong-based interior decorator and heavy investor in Macau casinos, has bought the rights to earnings from high-roller gambling junkets for HKD 993.6 million (USD 128 million). Dore Holdings will pay cash, new shares and convertible bonds for 60 percent of Triple Gain Group Ltd., which is entitled to the profit of junket operator Nove Sociedade Unipessoal Ltd. Junket operators are promoters who entice high rollers to casinos, occasionally lending funds to their clients. Considering the recent unveiling of Las Vegas Sands Inc.'s new Venetian, the competition between Macau's casinos is rapidly increasing and causing junket commissions to rise in China's only region that permits casinos.

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Asia Laptop Leader Lenovo Prepared To Enter U.S. Market

Lenovo Group, the largest manufacturer of personal computers in Asia, plans on entering the U.S. market by introducing laptops in January 2008.

Lenovo Group, the largest manufacturer of personal computers in Asia, plans on entering the U.S. market by introducing laptops in January 2008. The entry into the U.S. market will concide with similar launches in France, Russia and South Africa, which will occur several two to three months after the U.S. market entry.

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hongkong

India Improves Economic Freedom but Slips in Worldwide Ranking

Although having improved their index of economic freedom to an all time high of 6.6 out of 10, India has dropped down some places in the overall ranking, sliding from rank 60 to 69. The index, prepared by Canada-based Fraser Institute, examines on an annual basis a list of 141 countries considering their economic freedom. The highest ranks in the recent report are held by Hong Kong, Singapore and New Zealand.

Although having improved their index of economic freedom to an all time high of 6.6 out of 10, India has dropped down some places in the overall ranking, sliding from rank 60 to 69. The index, prepared by Canada-based Fraser Institute, examines on an annual basis a list of 141 countries considering their economic freedom. The highest ranks in the recent report are held by Hong Kong, Singapore and New Zealand.

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hongkong

Hong Kong Hang Seng Index Slides In Wake of Volatile Trading

The benchmark Hang Seng Index in Hong Kong fell 213.97 points today, as Hong Kong stocks pulled back from a new high.

The benchmark Hang Seng Index in Hong Kong fell 213.97 points today, as Hong Kong stocks pulled back from a new high. Investors rushed to lock in gains, after a report was released showing unsold homes in the United States reached a 16-year peak last month, reigniting concerns about the subprime mortage crisis spreading into the broader U.S. economy.

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hongkong

Hovid Bhd to Expand Into Macau, Hong Kong

Hovid Bhd, a Malaysian pharmaceutical company, will expand its presence into Macau and Hong Kong. The company said that rather than depending upon a distributor, it will set up a joint-venture company.

Hovid Bhd, a Malaysian pharmaceutical company, will expand its presence into Macau and Hong Kong. The company said that rather than depending upon a distributor, it will set up a joint-venture company. As China is the ninth largest pharmaceutical market in the world, it is a good choice for Hovid's expansion.

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hongkong

Hong Kong Shares Rise Boosted By Investors From Mainland China

Hong Kong stocks jumped on Wednesday, as investors from mainland China bought up more China concept stocks, just two days after Beijing removed restrictions and allowed its citizens to directly invest in stocks listed in Hong Kong. Hong Kong-listed China stocks advanced 3.2 percent on expectations that mainland China investors would buy companies trading at steep discounts relative to their mainland counterparts.

Hong Kong stocks jumped on Wednesday, as investors from mainland China bought up more China concept stocks, just two days after Beijing removed restrictions and allowed its citizens to directly invest in stocks listed in Hong Kong. Hong Kong-listed China stocks advanced 3.2 percent on expectations that mainland China investors would buy companies trading at steep discounts relative to their mainland counterparts.

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hongkong

Mainland China Investment in Hong Kong Stock Market Predicted to be HK $300 Billion

Now that mainland China has allowed it's citizens to invest in Hong Kong stocks, financial analysts predict a mulitbilliondollar influx of capital. On Monday, the State Administration of Foreign Exchange said mainlanders will be allowed to invest in Hong Kong-listed stocks via the Tianjin branch of Bank of China. The program will be extended to Shanghai next. Deutsche Bank estimates that fund flows from the mainland into Hong Kong equities will double to USD $40 billion (HK $312 billion) between July of this year and June 2008.

Now that mainland China has allowed it's citizens to invest in Hong Kong stocks, financial analysts predict a mulitbilliondollar influx of capital. On Monday, the State Administration of Foreign Exchange said mainlanders will be allowed to invest in Hong Kong-listed stocks via the Tianjin branch of Bank of China. The program will be extended to Shanghai next. Deutsche Bank estimates that fund flows from the mainland into Hong Kong equities will double to USD $40 billion (HK $312 billion) between July of this year and June 2008.

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hongkong

U.S. Federal Reserve's Move To Trim Discount Rate Expected to Boost Hong Kong Stock Market

Hong Kong shares on the Hang Seng Index (HSI) are expected to recover today from the thrashing the market took on Friday, when a wild selling spree was set off by U.S. subprime mortgage market fears and carry-trade jitters. On Friday the HSI fluctuated more than 1000 points. The expectation is that the recovery will be led by the U.S. Federal Reserve's suprise move to trim the discount rate.

Hong Kong shares on the Hang Seng Index (HSI) are expected to recover today from the thrashing the market took on Friday, when a wild selling spree was set off by U.S. subprime mortgage market fears and carry-trade jitters. On Friday the HSI fluctuated more than 1000 points. The expectation is that the recovery will be led by the U.S. Federal Reserve's suprise move to trim the discount rate.

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hongkong

Hong Kong's Wharf Holdings Exceeds Expectations by HKD 2.49 Billion

Hong Kong commercial landlord, Wharf Ltd., said Wednesday that it had seen a 38 percent increase in first half underlying profit, gaining HKD 730 million. The company rose from HKD 1.9 billion to HKD 2.63 billion, overshooting analysts' estimates by more than HKD 2.49 billion. Representatives from Wharf Ltd. said the gains were most likely due to sea-cargo demand and China property sales.

Hong Kong commercial landlord, Wharf Ltd., said Wednesday that it had seen a 38 percent increase in first half underlying profit, gaining HKD 730 million. The company rose from HKD 1.9 billion to HKD 2.63 billion, overshooting analysts' estimates by more than HKD 2.49 billion. Representatives from Wharf Ltd. said the gains were most likely due to sea-cargo demand and China property sales.

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hongkong

Hong Kong's Hang Seng Index Rises 0.53 Percent

Hong Kong's Hang Seng Index rose 116.22 points to 22,007.32 on Tuesday. Francis Lun, general manager at Fulbright Securities said Tuesday: "Most investors are staying on the sidelines as no one knows what will happen next." Analysts attribute the gains to bargain hunting and a second consecutive record close on the Shanghai equities market. Hong Kong shares rose 0.5 percent.

Hong Kong's Hang Seng Index rose 116.22 points to 22,007.32 on Tuesday. Francis Lun, general manager at Fulbright Securities said Tuesday: "Most investors are staying on the sidelines as no one knows what will happen next." Analysts attribute the gains to bargain hunting and a second consecutive record close on the Shanghai equities market. Hong Kong shares rose 0.5 percent.

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Hong Kong: Television Broadcast May Not Obtain Pay-TV License

Hong Kong broadcaster Television Broadcasts may have to surrender its pay-TV license deposit of HKD 50 million (USD 6.39 million). To obtain the license, the broadcaster was required to invest HKD 5 billion in the pay-TV operations by August 23, but so far TVB Pay Vision, an operator owned by Television Broadcasts, has been unable to invest the required amount.

Hong Kong broadcaster Television Broadcasts may have to surrender its pay-TV license deposit of HKD 50 million (USD 6.39 million). To obtain the license, the broadcaster was required to invest HKD 5 billion in the pay-TV operations by August 23, but so far TVB Pay Vision, an operator owned by Television Broadcasts, has been unable to invest the required amount.

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hongkong

Storm in Hong Kong Shuts Down Stock Market, Businesses

Due to strong winds from a tropical cyclone, the Hong Kong stock market was closed almost an hour and a half early on Friday. In addition to the stock market, banks, schools, boat services and government buildings were closed. Andrew Clarke, a sales trader at SG Securities Hong Kong Ltd. said of the storm: "Everything closed so no business is done in Hong Kong, but the pubs will do a roaring trade."

Due to strong winds from a tropical cyclone, the Hong Kong stock market was closed almost an hour and a half early on Friday. In addition to the stock market, banks, schools, boat services and government buildings were closed. Andrew Clarke, a sales trader at SG Securities Hong Kong Ltd. said of the storm: "Everything closed so no business is done in Hong Kong, but the pubs will do a roaring trade."

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HSBC to Build Brand in Rural China

Hong Kong's HSBC will be building a rural bank in China after obtaining regulatory approval. The move will help boost the economies in rural communities, which often had difficulty accessing credit. The government also hopes it will stimulate investment and reduce the income gap. Chairman of HSBC, Stephen Green, said Thursday: "We appreciate this opportunity to further extend HSBC's presence in China and capitalize on the new opportunities in the country's underbanked rural market."

Hong Kong's HSBC will be building a rural bank in China after obtaining regulatory approval. The move will help boost the economies in rural communities, which often had difficulty accessing credit. The government also hopes it will stimulate investment and reduce the income gap. Chairman of HSBC, Stephen Green, said Thursday: "We appreciate this opportunity to further extend HSBC's presence in China and capitalize on the new opportunities in the country's underbanked rural market."

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hongkong

Morgan Stanley Relocates in Hong Kong

Morgan Stanley has announced its plans to relocate to Hong Kong's International Commerce Centre, across Hong Kong's harbor from its previous headquarters. Morgan Stanley will be leaving 200,000 square feet in its two buildings in Central Hong Kong, but will most likely retain meeting facilities in the buildings. Representatives from the company said that rents for the Central Hong Kong buildings have quadrupled since a trough in 2003.

Morgan Stanley has announced its plans to relocate to Hong Kong's International Commerce Centre, across Hong Kong's harbor from its previous headquarters. Morgan Stanley will be leaving 200,000 square feet in its two buildings in Central Hong Kong, but will most likely retain meeting facilities in the buildings. Representatives from the company said that rents for the Central Hong Kong buildings have quadrupled since a trough in 2003.

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Hong Kong Shares Dip Lower With Tension in US Economy

Hong Kong shares dipped 0.1 percent due to subprime mortage problems and the slowing U.S. economy. Tuesday marked its second straight session of falling. The Hong Kong market is waiting to hear a statement by the U.S. Federal Reserve today that will announce whether or not it decides to keep the federal funds rate unchanged. According to associate director at Prudential Brokerage, Kingston Lin, a rate cut "may give a short-lived boost to stock markets."

Hong Kong shares dipped 0.1 percent due to subprime mortage problems and the slowing U.S. economy. Tuesday marked its second straight session of falling. The Hong Kong market is waiting to hear a statement by the U.S. Federal Reserve today that will announce whether or not it decides to keep the federal funds rate unchanged. According to associate director at Prudential Brokerage, Kingston Lin, a rate cut "may give a short-lived boost to stock markets."

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hongkong

Traders in Hong Kong Boycott Cattle Supplier

Hong Kong traders have decided to boycott Ng Fung Hong, the only mainland supplier of cattle. The boycott was brought on by rising costs and short supply by Ng Fung Hong, and will leave Hong Kong without fresh beef for three or more days unless Ng Fung Hong does something to resolve the problems.

Hong Kong traders have decided to boycott Ng Fung Hong, the only mainland supplier of cattle. The boycott was brought on by rising costs and short supply by Ng Fung Hong, and will leave Hong Kong without fresh beef for three or more days unless Ng Fung Hong does something to resolve the problems.

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hongkong

Hong Kong Market Falls Amid US Credit Crunch

The Hong Kong market fell as much as 975 points this weekend after hot money flowed out of the country as a result of hedge funds unwinding their carry trade positions and liquidated equity holdings. Many analysts believe this is a result of fears about the US-driven credit crunch.

The Hong Kong market fell as much as 975 points this weekend after hot money flowed out of the country as a result of hedge funds unwinding their carry trade positions and liquidated equity holdings. Many analysts believe this is a result of fears about the US-driven credit crunch.

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hongkong

Hong Kong Residential Property Wielded HKD 3.98 Billion in Auction

Developing company Kerry Properties won a parcel of residential land in Wong Tai Sin in an auction Tuesday. The final bid was HKD 3.98 billion (USD 508.63 million). Analysts had expected the piece of land to wield up to HKD 5 billion, and Charles Chan Chiu-Kwok, Savils managing director of valuation and professional services, said the market had been over-optimistic with its estimates.

Developing company Kerry Properties won a parcel of residential land in Wong Tai Sin in an auction Tuesday. The final bid was HKD 3.98 billion (USD 508.63 million). Analysts had expected the piece of land to wield up to HKD 5 billion, and Charles Chan Chiu-Kwok, Savils managing director of valuation and professional services, said the market had been over-optimistic with its estimates.

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hongkong

Hong Kong's HKC Selling Shares at a Discount

After its shares fell 5.72 percent on Tuesday, Hong Kong property investment and construction firm HKC has decided to sell shares at a 10.5 percent discount to its Tuesday closing price. The total value of the shares is USD 161.5 million, according to a term sheet. The company was selling 450 million shares handled by BDS and Goldbond Securities valued at HKD 2.80 each.

After its shares fell 5.72 percent on Tuesday, Hong Kong property investment and construction firm HKC has decided to sell shares at a 10.5 percent discount to its Tuesday closing price. The total value of the shares is USD 161.5 million, according to a term sheet. The company was selling 450 million shares handled by BDS and Goldbond Securities valued at HKD 2.80 each.

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hongkong

Hong Kong Sees Tourism Boost

Hong Kong has seen a 6.8 increase in tourism since the previous year, receiving 13.03 million visitors just in the first six months of 2007. According to a statement given by the Tourism Board, over half the tourists come from China. The statement also said that growth this year had been slower than the same period last year, which was 4.3 percent higher.

Hong Kong has seen a 6.8 increase in tourism since the previous year, receiving 13.03 million visitors just in the first six months of 2007. According to a statement given by the Tourism Board, over half the tourists come from China. The statement also said that growth this year had been slower than the same period last year, which was 4.3 percent higher.

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hongkong

Hong Kong Business Community Eyes Middle Eastern Potential

Hong Kong has begun to eye Middle Eastern markets because of the region's steady economic growth due to oil production. Hong Kong's Trade Development Council recently hosted the "Summer Sourcing Show for Gifts, Houseware and Toys" in an effort to give Hong Kong's business community a taste of the Middle Eastern market and help it to recognize business potential.

Hong Kong has begun to eye Middle Eastern markets because of the region's steady economic growth due to oil production. Hong Kong's Trade Development Council recently hosted the "Summer Sourcing Show for Gifts, Houseware and Toys" in an effort to give Hong Kong's business community a taste of the Middle Eastern market and help it to recognize business potential.

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hongkong

Buffett Sells PetroChina Shares

According to the Hong Kong Stock Exchange, Warren Buffett has sold USD 16.9 million shares of PetroChina Co Ltd. on July 12 at about HKD 12.44 and HKD 12.46 each, resulting in the 0.09 percent cut of his share. After the share sale, Buffett's stake in the entire company is about 1.29 percent.

According to the Hong Kong Stock Exchange, Warren Buffett has sold USD 16.9 million shares of PetroChina Co Ltd. on July 12 at about HKD 12.44 and HKD 12.46 each, resulting in the 0.09 percent cut of his share. After the share sale, Buffett's stake in the entire company is about 1.29 percent.

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hongkong

BHP Billiton, Miners Pace Asia-Pacific Index Losses

Slumping metal prices led Australian mining giant BHP Billiton Ltd. to complete its largest 2-day drop in nearly 5 months, joining miners across the region as the industry dragged down the regional benchmark index. Japan's Nippon Electric Glass Co. and Advantest Corp. fell as well, hurt by a downward adjustment in their earnings reports. The Morgan Stanley Capital International Asia-Pacific Index declined by 1.2 percent, hitting 158.64 at 6:04 pm in Tokyo. The key indexes of Australia, Hong Kong, Singapore and Indonesia, all posters of record highs earlier in the week, declined on Thursday. Benchmarks in South Korea and Taiwan suffered their largest declines in over 4 months.

Slumping metal prices led Australian mining giant BHP Billiton Ltd. to complete its largest 2-day drop in nearly 5 months, joining miners across the region as the industry dragged down the regional benchmark index. Japan's Nippon Electric Glass Co. and Advantest Corp. fell as well, hurt by a downward adjustment in their earnings reports. The Morgan Stanley Capital International Asia-Pacific Index declined by 1.2 percent, hitting 158.64 at 6:04 pm in Tokyo. The key indexes of Australia, Hong Kong, Singapore and Indonesia, all posters of record highs earlier in the week, declined on Thursday. Benchmarks in South Korea and Taiwan suffered their largest declines in over 4 months.

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hongkong

Macau, China and Hong Kong Earn Currency Rating Upgrades

Moody's Investors Service, the international ratings agency, announced Thursday that it is upgrading the currency ratings for China, Hong Kong and Macau. China's long-term foreign currency bonds were upgraded from "A1" to "A2", mainly due to the strength of its external payments position and its continued progress in economic reform. Hong Kong's foreign and domestic currency bond ratings were upgraded from "Aa2" to "Aa3", and Macau's foreign and local currency government issuer ratings were upgraded from "Aa3" to "A1".

Moody's Investors Service, the international ratings agency, announced Thursday that it is upgrading the currency ratings for China, Hong Kong and Macau. China's long-term foreign currency bonds were upgraded from "A1" to "A2", mainly due to the strength of its external payments position and its continued progress in economic reform. Hong Kong's foreign and domestic currency bond ratings were upgraded from "Aa2" to "Aa3", and Macau's foreign and local currency government issuer ratings were upgraded from "Aa3" to "A1".

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hongkong

Hang Seng Index Falls From Record High Following Wall Street Drop

The Hang Seng Index reflected the Wall Street Times drop Wednesday, falling 244.32 points from its record-high. Analysts attribute the drop to widespread warnings about an imminent credit crunch. Because of the drop, many investors jumped in to take advantage of the lower prices.

The Hang Seng Index reflected the Wall Street Times drop Wednesday, falling 244.32 points from its record-high. Analysts attribute the drop to widespread warnings about an imminent credit crunch. Because of the drop, many investors jumped in to take advantage of the lower prices.

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hongkong

Mainland Insurers Can Now Increase Investment Overseas

The China Insurance Regulatory Commission announced new rules this week that allow mainland insurers to increase investment in overseas assets in an effort to take pressure off the yuan to appreciate faster and to help lift returns. According to Chan Yuk-keung, fund manager at Phillip Capital Management: "Rule changes are positive for the insurance sector."

The China Insurance Regulatory Commission announced new rules this week that allow mainland insurers to increase investment in overseas assets in an effort to take pressure off the yuan to appreciate faster and to help lift returns. According to Chan Yuk-keung, fund manager at Phillip Capital Management: "Rule changes are positive for the insurance sector."

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hongkong

US Economic Slowdown Weighs on Asia-Pacific Benchmark Index

Toyota Motor Corp. led the decline in Asian stocks on Wednesday, followed closely by Taiwan Semiconductor Manufacturing Co. as a sub-par outlook on the US economy is expected to last into the first half of 2008. The Morgan Stanley Capital International Asia-Pacific Index lost 0.5 percent to hit 160.67 as of 6:09 pm in Tokyo, eroding a 0.9 percent gain that saw the index hit a record high yesterday. Benchmarks in Australia, Hong Kong and Singapore all fell from record highs.

Toyota Motor Corp. led the decline in Asian stocks on Wednesday, followed closely by Taiwan Semiconductor Manufacturing Co. as a sub-par outlook on the US economy is expected to last into the first half of 2008. The Morgan Stanley Capital International Asia-Pacific Index lost 0.5 percent to hit 160.67 as of 6:09 pm in Tokyo, eroding a 0.9 percent gain that saw the index hit a record high yesterday. Benchmarks in Australia, Hong Kong and Singapore all fell from record highs.

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hongkong

Hong Kong's Bull Market Causes Concern for Analysts

Hong Kong's bull market continued to escalate Tuesday with the blue chips index reaching above 23,500 points by the afternoon. Some analysts have expressed concerns about a "bubble" building in local equities, leaving them vulnerable for a "sharp correction." Analysts have also said the chance of the bubble "bursting" is only 30 percent by the end of the year.

Hong Kong's bull market continued to escalate Tuesday with the blue chips index reaching above 23,500 points by the afternoon. Some analysts have expressed concerns about a "bubble" building in local equities, leaving them vulnerable for a "sharp correction." Analysts have also said the chance of the bubble "bursting" is only 30 percent by the end of the year.

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hongkong

HSBC Shares May Be Undervalued, According to Dubai International Capital

According to the major shareholder Dubai International Capital (DIC), shares of Hong Kong's HSBC Holdings may be undervalued. DIC speculates that the market's obsession with the US subprime mortgage issue may have led the bank to neglect its other segments. According to DIC Chief Executive Sameer al-Ansari, "Everyone ignored all the good things about HSBC and focused on that, so we felt there was an opportunity to get into it."

According to the major shareholder Dubai International Capital (DIC), shares of Hong Kong's HSBC Holdings may be undervalued. DIC speculates that the market's obsession with the US subprime mortgage issue may have led the bank to neglect its other segments. According to DIC Chief Executive Sameer al-Ansari, "Everyone ignored all the good things about HSBC and focused on that, so we felt there was an opportunity to get into it."

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hongkong

Hong Kong: Grand Field Holdings Executives Charged With Alleged Conspiracy to Defraud

Half a dozen former executives of Hong Kong's Grand Field Group Holdings property developer have been charged with alleged conspiracy to defraud shareholders and the stock exchange. The Independent Commission Against Corruption filed allegations after uncovering information through inquiries, and the six defendants will appear in court tomorrow on two counts of conspiracy to defraud.

Half a dozen former executives of Hong Kong's Grand Field Group Holdings property developer have been charged with alleged conspiracy to defraud shareholders and the stock exchange. The Independent Commission Against Corruption filed allegations after uncovering information through inquiries, and the six defendants will appear in court tomorrow on two counts of conspiracy to defraud.

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hongkong

London's RAB Capital to Expand into Hong Kong

RAB Capital, a top hedge fund manager, will soon open its first foreign office in Hong Kong in an effort to expand into China's driving market and take advantage of the surplus of money in the region. RAB is headquartered in London, but has plans to grow beyond Europe.

RAB Capital, a top hedge fund manager, will soon open its first foreign office in Hong Kong in an effort to expand into China's driving market and take advantage of the surplus of money in the region. RAB is headquartered in London, but has plans to grow beyond Europe.

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hongkong

HSBC Expected to Report Increases for the First Half

HSBC is expected to report having increased net profit by 39 percent, to USD 9.79 billion, for the first half. Analysts believe HSBC's net profit will see a 15 percent rise this quarter, particularly because of gains coming from the sale of the HSBC London branch and valuation gains from the IPO of the bank's mainland affiliates. Analysts predict the bank will report revenue at USD 36.32 billion, up 11.2 percent since last year, and net interest income at USD 17.79 percent, up 6 percent.

HSBC is expected to report having increased net profit by 39 percent, to USD 9.79 billion, for the first half. Analysts believe HSBC's net profit will see a 15 percent rise this quarter, particularly because of gains coming from the sale of the HSBC London branch and valuation gains from the IPO of the bank's mainland affiliates. Analysts predict the bank will report revenue at USD 36.32 billion, up 11.2 percent since last year, and net interest income at USD 17.79 percent, up 6 percent.

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hongkong

Hong Kong's Hang Seng Index Lifted to Fresh Record

Hong Kong stocks gained on Friday, pushing the benchmark Hang Seng Index to a new record high. China Mobile Ltd. was the most notable gainer on the market, adding a record number of subscribers in June for the ninth straight month. Ping An Insurance (Group) Co. was also of note, leading all insurers after an announcement that insurance premiums grew 21 percent in the first half. The Hang Seng Index gained 275.70 points, or 1.2 percent, to close at 23,291.90, well above the previous record of 23,099.29 set on July 13.

Hong Kong stocks gained on Friday, pushing the benchmark Hang Seng Index to a new record high. China Mobile Ltd. was the most notable gainer on the market, adding a record number of subscribers in June for the ninth straight month. Ping An Insurance (Group) Co. was also of note, leading all insurers after an announcement that insurance premiums grew 21 percent in the first half. The Hang Seng Index gained 275.70 points, or 1.2 percent, to close at 23,291.90, well above the previous record of 23,099.29 set on July 13.

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hongkong

Hong Kong: China Dragon Fund Rose 20 Percent After Market Debut

The HSBC China Dragon Fund has experienced gains after its market debut on Friday, at which it made a USD 415 million public offering. The fund ended at HKD 12 per unit, up HKD 2 from its HKD 10 offering price. Many investors are eying the fund as a means to tap into China's long-term economic growth, according to a strategist at Phillip Capital Management (HK) Ltd. The Chinese equity fund, which plans to invest in Chinese A shares, was launched by HSBC Investment.

The HSBC China Dragon Fund has experienced gains after its market debut on Friday, at which it made a USD 415 million public offering. The fund ended at HKD 12 per unit, up HKD 2 from its HKD 10 offering price. Many investors are eying the fund as a means to tap into China's long-term economic growth, according to a strategist at Phillip Capital Management (HK) Ltd. The Chinese equity fund, which plans to invest in Chinese A shares, was launched by HSBC Investment.

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hongkong

Rising Cost of Pork a Concern in Hong Kong

The price of pork in Hong Kong has gone up by more than 10 percent, leading to complaints from consumers and sellers. The city's only fresh pork importer, Ng Fung Hong, pushed the wholesale price up to HKD 1,300 to reflect local demand. Sellers expect retail prices to rise tremendously, from its current price of HKD 2 to 4 per catty to HKD 32 per catty.

The price of pork in Hong Kong has gone up by more than 10 percent, leading to complaints from consumers and sellers. The city's only fresh pork importer, Ng Fung Hong, pushed the wholesale price up to HKD 1,300 to reflect local demand. Sellers expect retail prices to rise tremendously, from its current price of HKD 2 to 4 per catty to HKD 32 per catty.

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hongkong

HSBC Expresses Interest in Korea Exchange Bank

Hong Kong's HSBC has contacted the US private equity fund Lone Star about its interest in taking a controlling stake in the Korea Exchange Bank. A deal with Lone Star, a "nonperforming loan investor", according to an analyst with an Asian investment bank, would be a positive move for HSBC's development, and help them to expand into emerging markets. The deal is estimated to cost at least USD 5 billion.

Hong Kong's HSBC has contacted the US private equity fund Lone Star about its interest in taking a controlling stake in the Korea Exchange Bank. A deal with Lone Star, a "nonperforming loan investor", according to an analyst with an Asian investment bank, would be a positive move for HSBC's development, and help them to expand into emerging markets. The deal is estimated to cost at least USD 5 billion.

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hongkong

Hong Kong June Inflation Rising to 1.4 Percent

According to a Reuters survey, Hong Kong's primary inflation index rose about 1.4 percent in June from a year earlier. Hong Kong's CPI rose 1.2 percent since last year as food prices picked up. Analysts believe the inflation data may be warped due to a waiver on property rates that brought the annual inflation rate down from 2.1 percent in the first quarter.

According to a Reuters survey, Hong Kong's primary inflation index rose about 1.4 percent in June from a year earlier. Hong Kong's CPI rose 1.2 percent since last year as food prices picked up. Analysts believe the inflation data may be warped due to a waiver on property rates that brought the annual inflation rate down from 2.1 percent in the first quarter.

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hongkong

Hong Kong Stocks Continue to Advance As Oil Prices Increase

As a reflection of increasing oil prices, Hong Kong stocks advanced for the third time in less than a week. The Hang Seng Index gained 0.5 percent reaching 23,057.30 at the market close on Tuesday. The recent rise was most likely caused by a boost of share-price estimates by the Deutsche Bank AG for oil producers, which caused an increase in Cnooc Ltd.

As a reflection of increasing oil prices, Hong Kong stocks advanced for the third time in less than a week. The Hang Seng Index gained 0.5 percent reaching 23,057.30 at the market close on Tuesday. The recent rise was most likely caused by a boost of share-price estimates by the Deutsche Bank AG for oil producers, which caused an increase in Cnooc Ltd.

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hongkong

Hong Kong Beauty Service Group to Expand After Profit Jump

The largest beauty salon service group in Hong Kong, Modern Beauty Salon Holdings, has announced its plans to expand with 12 new centers in Hong Kong, and 20 more in the mainland. Plans were made after the company reported a 45 percent jump in net profit and a 23 percent rise in revenue for the 2006 fiscal year. Chief Executive of the company, Joyce Tsang Yue, believes the good business was due to expansion and a rise in customers' spending.

The largest beauty salon service group in Hong Kong, Modern Beauty Salon Holdings, has announced its plans to expand with 12 new centers in Hong Kong, and 20 more in the mainland. Plans were made after the company reported a 45 percent jump in net profit and a 23 percent rise in revenue for the 2006 fiscal year. Chief Executive of the company, Joyce Tsang Yue, believes the good business was due to expansion and a rise in customers' spending.

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hongkong

Hong Kong Port Traffic Increases Before Tax Rebate Cut

Hong Kong port operators have seen a 19 percent jump in container volume in June as Chinese exporters send out shipments before a tax rebate cut. The cut, made by the Chinese government, was to curb the country's record trade surplus. According to figures on the Port Development Council's website, the value of China's exports has increased by a massive 27 percent.

Hong Kong port operators have seen a 19 percent jump in container volume in June as Chinese exporters send out shipments before a tax rebate cut. The cut, made by the Chinese government, was to curb the country's record trade surplus. According to figures on the Port Development Council's website, the value of China's exports has increased by a massive 27 percent.

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hongkong

Hong Kong International Airport Reports Increases

The Hong Kong International Airport saw an overall increase in the first half of this year, reporting more passengers, better cargo volumes, and an increase in air traffic movements. From June 2006, passenger and cargo volumes both increased about 5.7 percent. Airport Authority Chief Executive Stanley Hui Hon-chung said Hong Kong can expect even more passengers as "Hong Kong people take summer holidays, plus strong inbound traffic from Europe, the mainland and Southeast Asia."

The Hong Kong International Airport saw an overall increase in the first half of this year, reporting more passengers, better cargo volumes, and an increase in air traffic movements. From June 2006, passenger and cargo volumes both increased about 5.7 percent. Airport Authority Chief Executive Stanley Hui Hon-chung said Hong Kong can expect even more passengers as "Hong Kong people take summer holidays, plus strong inbound traffic from Europe, the mainland and Southeast Asia."

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hongkong

China Mobile Gives Hang Seng Index a Boost

China Mobile, a leading telecom giant, jumped 3.67 percent Friday, pushing the Hang Seng Index forward 140 index points. The HSI closed Thursday at 22,809.02, down from its all-time high close of 22,885.84 on Tuesday. Some analysts, including Eugene Law Sheung-pui, believe the HSI will not break 23,000. "The room for further run-up [for the blue chips and the H-share index] is limited. People were seen to cash out at the highs," said Law.

China Mobile, a leading telecom giant, jumped 3.67 percent Friday, pushing the Hang Seng Index forward 140 index points. The HSI closed Thursday at 22,809.02, down from its all-time high close of 22,885.84 on Tuesday. Some analysts, including Eugene Law Sheung-pui, believe the HSI will not break 23,000. "The room for further run-up [for the blue chips and the H-share index] is limited. People were seen to cash out at the highs," said Law.

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hongkong

New World Development Store Debut Constrained by Profit-Taking

After debuting in Hong Kong, shares of China's New World Department Store Ltd. (0825.HK) rose 2.6 percent on Thursday. Shares rose steadily Thursday morning by 18 percent, but evened out in the afternoon on profit-taking in line with the broader market, closing at HKD 5.95 (USD 0.761). Michael Chung, fund manager at Iventure Investment Management Ltd., said Thursday "Given New World Department's operating track record is not as good as Parkson Retail, its IPO pricing is quite aggressive, which is close to its fair value."

After debuting in Hong Kong, shares of China's New World Department Store Ltd. (0825.HK) rose 2.6 percent on Thursday. Shares rose steadily Thursday morning by 18 percent, but evened out in the afternoon on profit-taking in line with the broader market, closing at HKD 5.95 (USD 0.761). Michael Chung, fund manager at Iventure Investment Management Ltd., said Thursday "Given New World Department's operating track record is not as good as Parkson Retail, its IPO pricing is quite aggressive, which is close to its fair value."

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hongkong

Hong Kong's Anta Sports Products Shares Rise Upon Trading Debut

After shoe retailer Anta Sports Products made their trading debut Tuesday, shares for the company surged 42 percent. Shares for Anta rose as high as HKD 7.91 before settling at HKD 7.50 (about USD 0.96), which is HKD 2.22 above its offer price of HKD 5.28. Hong Kong's Hang Seng Index reached a new high on Wednesday, closing at 22,885.84 after rising 68.41 points.

After shoe retailer Anta Sports Products made their trading debut Tuesday, shares for the company surged 42 percent. Shares for Anta rose as high as HKD 7.91 before settling at HKD 7.50 (about USD 0.96), which is HKD 2.22 above its offer price of HKD 5.28. Hong Kong's Hang Seng Index reached a new high on Wednesday, closing at 22,885.84 after rising 68.41 points.

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hongkong

Strong Asia-Pacific Currencies Lead to Slip in Regional Stocks

The Morgan Stanley Capital International Asia-Pacific Index slipped 0.1 percent on Tuesday to close at 157.81, as Asia-Pacific currencies such as the yen and Australian dollar traded strong. The Aussie dollar traded near an 18-year high while the yen experienced a pause in its weakening trend as it strengthened against both the US dollar and the euro. Markets dropped across the region except in Taiwan, Hong Kong, Indonesia and Thailand. Thailand's SET index was the region's biggest gainer, jumping 1.7 percent.

The Morgan Stanley Capital International Asia-Pacific Index slipped 0.1 percent on Tuesday to close at 157.81, as Asia-Pacific currencies such as the yen and Australian dollar traded strong. The Aussie dollar traded near an 18-year high while the yen experienced a pause in its weakening trend as it strengthened against both the US dollar and the euro. Markets dropped across the region except in Taiwan, Hong Kong, Indonesia and Thailand. Thailand's SET index was the region's biggest gainer, jumping 1.7 percent.

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hongkong

Morgan Stanley Asia-Pacific Index Recovers on Monday

As a number of Asia-Pacific's exchanges surged on Monday, Morgan Stanley's International Asia-Pacific Index jumped 1.1 percent to 157.95, recovering from a 0.1 percent slip on July 6. Japan's Nikkei 225 hit a seven-year high, South Korea's Kospi hit a fourth straight high, Taiwan's Taiex realized a sixth straight day of gains, and Singapore's Straits Times hit an eleven-week high. Benchmarks climbed everywhere in the region except in the Philippines, where the SET Index fell. China's CSI 300 paced all benchmark gains.

As a number of Asia-Pacific's exchanges surged on Monday, Morgan Stanley's International Asia-Pacific Index jumped 1.1 percent to 157.95, recovering from a 0.1 percent slip on July 6. Japan's Nikkei 225 hit a seven-year high, South Korea's Kospi hit a fourth straight high, Taiwan's Taiex realized a sixth straight day of gains, and Singapore's Straits Times hit an eleven-week high. Benchmarks climbed everywhere in the region except in the Philippines, where the SET Index fell. China's CSI 300 paced all benchmark gains.

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hongkong

Hong Kong's Dollar Weakens After Weakening in Interbank Rates

Hong Kong's dollar weakened to 7.8174 against the USD Friday, down from 7.8158 on Thursday. Analysts believe the weakening may have been caused by investors returning to carry trades after a weakening in local interbank rates. The USD has also been strengthening on global markets because of a service sector boost, according to speculations made by a trader at a European bank.

Hong Kong's dollar weakened to 7.8174 against the USD Friday, down from 7.8158 on Thursday. Analysts believe the weakening may have been caused by investors returning to carry trades after a weakening in local interbank rates. The USD has also been strengthening on global markets because of a service sector boost, according to speculations made by a trader at a European bank.

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hongkong

Hong Kong Tax Policy Expired, Not Revoked, For Mainland Firms

Preferential tax policies for the first mainland firms on the Hong Kong Stock Exchange have expired, but have not been cancelled. In 1993, the Ministry of Finance and the State Administration of Taxation granted reduced tax rates to companies like Sinopec Yizheng, Beiren Printing, and Sinopec Shanghai Petrochem. According to Shanghai Petrochem, the group of companies is unable to confirm whether the Ministry of Finance will continue the policy.

Preferential tax policies for the first mainland firms on the Hong Kong Stock Exchange have expired, but have not been cancelled. In 1993, the Ministry of Finance and the State Administration of Taxation granted reduced tax rates to companies like Sinopec Yizheng, Beiren Printing, and Sinopec Shanghai Petrochem. According to Shanghai Petrochem, the group of companies is unable to confirm whether the Ministry of Finance will continue the policy.

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hongkong

Hong Kong's Hang Seng Index Sets Record High

Hong Kong's Hang Seng Index reached a record high on Wednesday, jumping 156.46 points to 22,307.6 before retreating later in the day. Kitty Chan Pui-man of CASH Asset Management says the HSI might not be able to cross the 23,300 level easily because there isn't an across-the-board increase in blue chips, but Analyst Linus Yip Sheung-chi of First Shaghai Securities is hopeful. "The market can only go up, with small retreats in between."

Hong Kong's Hang Seng Index reached a record high on Wednesday, jumping 156.46 points to 22,307.6 before retreating later in the day. Kitty Chan Pui-man of CASH Asset Management says the HSI might not be able to cross the 23,300 level easily because there isn't an across-the-board increase in blue chips, but Analyst Linus Yip Sheung-chi of First Shaghai Securities is hopeful. "The market can only go up, with small retreats in between."

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Merrill Lynch: Strong Emerging Markets

According to Merrill Lynch, emerging markets grew 16.1 percent in the first six months of 2007 while developed markets grew 8 percent. Asia equities rose 17.3 percent and were led by China and South Korea. The industrials and material sectors were the best performers while the consumer staples and IT sectors were the worst performers.

According to Merrill Lynch, emerging markets grew 16.1 percent in the first six months of 2007 while developed markets grew 8 percent. Asia equities rose 17.3 percent and were led by China and South Korea. The industrials and material sectors were the best performers while the consumer staples and IT sectors were the worst performers.

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hongkong

Tourism in Hong Kong Leads to Retail Sale Boom

Tourism in Hong Kong from mainland Chinese travelers has probably contributed to a 7.6 percent increase in retail sales, according to an estimate of 12 economists surveyed by Bloomberg News. The number of tourists from China climbed 16 percent to 1.2 million after China's government began letting visitors travel with individual visas four years ago.

Tourism in Hong Kong from mainland Chinese travelers has probably contributed to a 7.6 percent increase in retail sales, according to an estimate of 12 economists surveyed by Bloomberg News. The number of tourists from China climbed 16 percent to 1.2 million after China's government began letting visitors travel with individual visas four years ago.

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hongkong

Gap Between Rich and Poor Increases in Hong Kong

Hong Kong's economy has grown considerably since its handover from Britain to Chinese rule in 1997, but many analysts believe the growing gap between the poor and wealthy citizens of Hong Kong is increasing at a dangerous speed, and could lead to problems in the future. Ho Hei-wah, director of the Society for Community Organization, says the government has not taken enough initiative to combat this problem. He said he hopes Hong Kong's new chief executive, Donald Tsang, will address Hong Kong's "acute, though somewhat hidden, social problems."

Hong Kong's economy has grown considerably since its handover from Britain to Chinese rule in 1997, but many analysts believe the growing gap between the poor and wealthy citizens of Hong Kong is increasing at a dangerous speed, and could lead to problems in the future. Ho Hei-wah, director of the Society for Community Organization, says the government has not taken enough initiative to combat this problem. He said he hopes Hong Kong's new chief executive, Donald Tsang, will address Hong Kong's "acute, though somewhat hidden, social problems."

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Hong Kong and China Work Towards Social Harmony to Improve Economy

While Hong Kong celebrated the 10th anniversary of its hand-over to China, the president of China, Hu Jintao, announced that China supported Hong Kong's democratic development. Hu also said that the economy was going to be a strong focus for China in the upcoming months, and to achieve stability in the economy Hong Kong and China must find social harmony.

While Hong Kong celebrated the 10th anniversary of its hand-over to China, the president of China, Hu Jintao, announced that China supported Hong Kong's democratic development. Hu also said that the economy was going to be a strong focus for China in the upcoming months, and to achieve stability in the economy Hong Kong and China must find social harmony.

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Nineteen Hong Kong Banks To Receive Punishment for Hot Money Flows to China

Nineteen banks in Hong Kong were punished by the State Administration of Foreign Exchange for aiding with illegal hot money flows into China. China has received USD 5 billion to USD 10 billion in illegal inflows per month, according to Asia Economist Jonathan Anderson. A description of the punishment was not given, but an analyst at an Asian investment bank said that it is likely to have a large affect on foreign bank's bottom lines.

Nineteen banks in Hong Kong were punished by the State Administration of Foreign Exchange for aiding with illegal hot money flows into China. China has received USD 5 billion to USD 10 billion in illegal inflows per month, according to Asia Economist Jonathan Anderson. A description of the punishment was not given, but an analyst at an Asian investment bank said that it is likely to have a large affect on foreign bank's bottom lines.

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hongkong

Number of Millionaires in Hong Kong Increases by 12.2 Percent

Hong Kong has seen an increase in the number of millionaires in its population this past year, with numbers rising by 12.2 percent, according to a wealth report. The report said about 86,000 people in Hong Kong are estimated to have at least USD 1 million (HKD 7.8 million) in financial assets. Merrill Lynch and Capgemini reported that the economy of Hong Kong is rapidly growing, contributing to the boost, and that a neutral fiscal policy may have helped as well.

Hong Kong has seen an increase in the number of millionaires in its population this past year, with numbers rising by 12.2 percent, according to a wealth report. The report said about 86,000 people in Hong Kong are estimated to have at least USD 1 million (HKD 7.8 million) in financial assets. Merrill Lynch and Capgemini reported that the economy of Hong Kong is rapidly growing, contributing to the boost, and that a neutral fiscal policy may have helped as well.

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Hong Kong's Shimao International Holding Company to be Privatized

Hong Kong's Shimao International Holding shareholders voted almost across the board in favor of privatizing the company on Wednesday. Chairman Hui Wing-Mau, who already controls 75 percent of the company, will pay between HKD 234 and 252 million to acquire the 209 million shares he does not already own. The procedure is expected to be completed by next month. Hui said he does not intend to privatize any other companies.

Hong Kong's Shimao International Holding shareholders voted almost across the board in favor of privatizing the company on Wednesday. Chairman Hui Wing-Mau, who already controls 75 percent of the company, will pay between HKD 234 and 252 million to acquire the 209 million shares he does not already own. The procedure is expected to be completed by next month. Hui said he does not intend to privatize any other companies.

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Airport Authority Hong Kong Draws in Record Profit for 2006-2007

Airport Authority Hong Kong said that for the 2006-2007 fiscal year the company drew in a record profit of HKD 1.92 billion, a 19 percent increase from the previous year. Take-offs and landings increased by 5 percent, at 283,000. The Airport Authority said that it believes this growth was largely due to global trade and economic growth in the region.

Airport Authority Hong Kong said that for the 2006-2007 fiscal year the company drew in a record profit of HKD 1.92 billion, a 19 percent increase from the previous year. Take-offs and landings increased by 5 percent, at 283,000. The Airport Authority said that it believes this growth was largely due to global trade and economic growth in the region.

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Chinese Yuan-Denominated Bonds Issued in Hong Kong

The China Development Bank has issued Chinese yuan-denominated bonds in Hong Kong with a minimum investment at HKD 20,000. The funds raised will be used to finance infrastructure projects in China. This series of bonds will only be available for retail order until July 6, but Monetary Authority Chief Executive Joseph Yam Chi-kwong said the second issuance of yuan bonds would mostly likely follow shortly after due to high demand.

The China Development Bank has issued Chinese yuan-denominated bonds in Hong Kong with a minimum investment at HKD 20,000. The funds raised will be used to finance infrastructure projects in China. This series of bonds will only be available for retail order until July 6, but Monetary Authority Chief Executive Joseph Yam Chi-kwong said the second issuance of yuan bonds would mostly likely follow shortly after due to high demand.

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hongkong

Hong Kong's Grandtop International Firm Considers Buying Birmingham City Stake

Birmingham City, a Premier League soccer club, invited Hong Kong's Grandtop International investment firm to buy a 30 percent stake in the club. The Grandtop would have to pay GBP 0.613 for each of the shares, or about GBP 15 million total. Birmingham City was just promoted to Premier League last month, and analysts believe TV and sponsorship revenues will contribute to a GBP 60 million bonus for the club.

Birmingham City, a Premier League soccer club, invited Hong Kong's Grandtop International investment firm to buy a 30 percent stake in the club. The Grandtop would have to pay GBP 0.613 for each of the shares, or about GBP 15 million total. Birmingham City was just promoted to Premier League last month, and analysts believe TV and sponsorship revenues will contribute to a GBP 60 million bonus for the club.

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hongkong

Hong Kong Shares Drop After Wall Street Decline

Hong Kong shares declined by 0.1 percent Tuesday, most likely due to a fall in the major bank HSBC, which was caused by a drop on Wall Street. HSBC fell 0.1 percent to HKD 144.10. The blue chip Hang Seng Index fell by 18.78 points, resting at 21,803.57.

Hong Kong shares declined by 0.1 percent Tuesday, most likely due to a fall in the major bank HSBC, which was caused by a drop on Wall Street. HSBC fell 0.1 percent to HKD 144.10. The blue chip Hang Seng Index fell by 18.78 points, resting at 21,803.57.

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hongkong

Hong Kong's Deflationary Period Has Hindered Success

According to researchers at the Bank of East Asia (BEA) in Hong Kong, Hong Kong's economy continues to expand, but the city's success has been hindered by a period of deflation. Between 1997 and 2006, Hong Kong's consumer price index fell by 9.4 percent despite a 35 percent increase in real gross domestic product per capita. The deflation was caused by lower housing rents, which were a result of "the broad economic downturn following the Asian financial crisis," said BEA.

According to researchers at the Bank of East Asia (BEA) in Hong Kong, Hong Kong's economy continues to expand, but the city's success has been hindered by a period of deflation. Between 1997 and 2006, Hong Kong's consumer price index fell by 9.4 percent despite a 35 percent increase in real gross domestic product per capita. The deflation was caused by lower housing rents, which were a result of "the broad economic downturn following the Asian financial crisis," said BEA.

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hongkong

Hong Kong: Personal Loans to Pay Debt No Longer Stigmatized

According to the director of consumer finance at Citibank, Simon Chow Wing, many citizens of Hong Kong engage in the practice of using one credit card to pay off another, accumulating incredible debt. Chow Wing says many more people are taking out personal loans to pay off debts, and that the stigma associated with taking out a loan is no longer prevalent.

According to the director of consumer finance at Citibank, Simon Chow Wing, many citizens of Hong Kong engage in the practice of using one credit card to pay off another, accumulating incredible debt. Chow Wing says many more people are taking out personal loans to pay off debts, and that the stigma associated with taking out a loan is no longer prevalent.

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hongkong

HSBC to Acquire Hong Kong's Hang Seng Bank

Hong Kong's Hang Seng Bank will pay HKD 2.4 billion to be acquired completely by HSBC, which already owns 62 percent of Hang Seng. According to the regional head of insurance for HSBC Insurance, David Fried, the arrangement should allow greater flexibility for both organizations. The companies believe the deal will be completed by the end of August.

Hong Kong's Hang Seng Bank will pay HKD 2.4 billion to be acquired completely by HSBC, which already owns 62 percent of Hang Seng. According to the regional head of insurance for HSBC Insurance, David Fried, the arrangement should allow greater flexibility for both organizations. The companies believe the deal will be completed by the end of August.

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hongkong

Hong Kong's Inflation Slows After Government Waiver

Hong Kong's inflation has slowed after a government waiver on property rates that curbs increases in the housing component of the consumer price index. According to Joe Lo, a senior economist at Citigroup Inc. in Hong Kong, "the inflation rate won't go back to 2 or 3 percent until the fourth quarter." According to the government of Hong Kong, the inflation rate is 1.2 percent, down from 1.3 percent in April.

Hong Kong's inflation has slowed after a government waiver on property rates that curbs increases in the housing component of the consumer price index. According to Joe Lo, a senior economist at Citigroup Inc. in Hong Kong, "the inflation rate won't go back to 2 or 3 percent until the fourth quarter." According to the government of Hong Kong, the inflation rate is 1.2 percent, down from 1.3 percent in April.

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Bank of Beijing to List in Shanghai and Hong Kong

Before the end of 2007, China's Bank of Beijing is expected to list in Shanghai and Hong Kong, according to state media Friday. The bank, whose profit hit CNY 2.06 billion in 2006, expects to sell one billion shares at about six to eight CNY (0.131 US dollar/1 CNY) on the Hong Kong stock exchange. It has hired the Goldman Sachs Group Inc. to be the sponsor for the initial public offering.

Before the end of 2007, China's Bank of Beijing is expected to list in Shanghai and Hong Kong, according to state media Friday. The bank, whose profit hit CNY 2.06 billion in 2006, expects to sell one billion shares at about six to eight CNY (0.131 US dollar/1 CNY) on the Hong Kong stock exchange. It has hired the Goldman Sachs Group Inc. to be the sponsor for the initial public offering.

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hongkong

Hong Kong Stocks on Rising Streak

Hong Kong stocks continue to climb in a five-day rising streak, the longest gaining streak in two months, after China announced its plan to let mainland brokerages buy overseas. Director of Atlantic Investment Management Ltd. Renault Kam believes the impact of China's decision will have a huge impact throughout Asia.

Hong Kong stocks continue to climb in a five-day rising streak, the longest gaining streak in two months, after China announced its plan to let mainland brokerages buy overseas. Director of Atlantic Investment Management Ltd. Renault Kam believes the impact of China's decision will have a huge impact throughout Asia.

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hongkong

Hong Kong Dollar Continues To Rise

The Hong Kong dollar is gradually getting higher because of the expansion of China's QDII scheme. The scheme boosted expectations of fund inflows and pushed the Hong Kong dollar to 7.8130 against 1 US dollar. Analysts believe the Hong Kong dollar will move into a range of 7.8100 and 7.8150 in the near future.

The Hong Kong dollar is gradually getting higher because of the expansion of China's QDII scheme. The scheme boosted expectations of fund inflows and pushed the Hong Kong dollar to 7.8130 against 1 US dollar. Analysts believe the Hong Kong dollar will move into a range of 7.8100 and 7.8150 in the near future.

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hongkong

Hong Kong Shares Surge After PetroChina Announcement

Hong Kong stocks reached their all-time closing high on Wednesday after PetroChina Co. Ltd announced that it planned to raise USD 6 billion in a Shanghai listing. PetroChina's Hong Kong shares rose by 8 percent, surging its market value by approximately USD 252 billion.

Hong Kong stocks reached their all-time closing high on Wednesday after PetroChina Co. Ltd announced that it planned to raise USD 6 billion in a Shanghai listing. PetroChina's Hong Kong shares rose by 8 percent, surging its market value by approximately USD 252 billion.

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hongkong

Alpha Bank in Greece Did Not Receive an Acquisition Offer From HSBC

The Alpha Bank, one of Greece's largest lenders, has not received the acquisition offer from the HSBC banking group in Hong Kong that rumors indicated it would. According to an anonymous official from HSBC, there is no offer from HSBC to Alpha Bank. Alpha Bank Executive General Manager George Aronis would not comment, saying Alpha Bank's policy was to not comment on "speculative rumors."

The Alpha Bank, one of Greece's largest lenders, has not received the acquisition offer from the HSBC banking group in Hong Kong that rumors indicated it would. According to an anonymous official from HSBC, there is no offer from HSBC to Alpha Bank. Alpha Bank Executive General Manager George Aronis would not comment, saying Alpha Bank's policy was to not comment on "speculative rumors."

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hongkong

Insurance Chairman: Taxes Hurting Taiwan

Chu Ping-yu, the chairman of Taiwan Life Insurance Co., suggests that the Taiwan government should ax the inheritance and gift taxes in order to minimize capital outflow and to promote economic equality. Heavy taxes have caused investors to seek international investments that net higher returns. After Hong Kong ended the inheritance tax last year, its tax revenues increased by about 20 percent. Chu believes that tax revenues could also increase substantially if the inheritance and gift taxes were revoked in Taiwan.

Chu Ping-yu, the chairman of Taiwan Life Insurance Co., suggests that the Taiwan government should ax the inheritance and gift taxes in order to minimize capital outflow and to promote economic equality. Heavy taxes have caused investors to seek international investments that net higher returns. After Hong Kong ended the inheritance tax last year, its tax revenues increased by about 20 percent. Chu believes that tax revenues could also increase substantially if the inheritance and gift taxes were revoked in Taiwan.

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hongkong

Widening Income Gap in Hong Kong

Hong Kong is number one among developed nations experiencing dramatic income disparities in their social strata. Results from a recent government census revealed a surge in the number of households earning below HKD 4,000 a month by 80,000 in the past decade, whereas those exceeding HKD 40,000 rose by 100,000. This has sparked fears from academics who have expressed great concern over the possibility of income polarization intensifying if the government does not implement past successful policies such as redistribution of income through taxes and provision of social benefits through housing, health and education.

Hong Kong is number one among developed nations experiencing dramatic income disparities in their social strata. Results from a recent government census revealed a surge in the number of households earning below HKD 4,000 a month by 80,000 in the past decade, whereas those exceeding HKD 40,000 rose by 100,000. This has sparked fears from academics who have expressed great concern over the possibility of income polarization intensifying if the government does not implement past successful policies such as redistribution of income through taxes and provision of social benefits through housing, health and education.

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hongkong

Hong Kong Shares Up 2.7 Percent

Due to strong Chinese financial stock performance amid flush liquidity, Hong Kong stocks rose to a record close of 565.84 points. According to Kitty Chan, director of Celestial Asia Securities, hot money coming into market is fueling buyer interest. Hong Kong stocks were also boosted from the gains in US stocks, as worries of increasing US interest rates and inflation eased.

Due to strong Chinese financial stock performance amid flush liquidity, Hong Kong stocks rose to a record close of 565.84 points. According to Kitty Chan, director of Celestial Asia Securities, hot money coming into market is fueling buyer interest. Hong Kong stocks were also boosted from the gains in US stocks, as worries of increasing US interest rates and inflation eased.

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China Expands Trade Pact with Hong Kong

In order to enhance economic and trade exchanges between the mainland and Hong Kong, the fourth supplement to the Closer Economic Partnership Agreement (CEPA) will be released by the end of this month. According to a study released by the Hong Kong Special Administrative Region, the CEPA has boosted Hong Kong's economy by increasing trade, creating jobs, and attracting investment.

In order to enhance economic and trade exchanges between the mainland and Hong Kong, the fourth supplement to the Closer Economic Partnership Agreement (CEPA) will be released by the end of this month. According to a study released by the Hong Kong Special Administrative Region, the CEPA has boosted Hong Kong's economy by increasing trade, creating jobs, and attracting investment.

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hongkong

Hong Kong: Li & Fung to Foray Into Health and Beauty Business

Hong Kong based global and consumer goods exporter Li & Fung Limited announced that it has entered into an agreement to acquire the shares of CGroup, a Hong Kong based international health, beauty, and cosmetics supply chain company. The purchase consideration is approximately USD 120 million, which will be satisfied in cash and by the issue of new shares in the company.

Hong Kong based global and consumer goods exporter Li & Fung Limited announced that it has entered into an agreement to acquire the shares of CGroup, a Hong Kong based international health, beauty, and cosmetics supply chain company. The purchase consideration is approximately USD 120 million, which will be satisfied in cash and by the issue of new shares in the company.

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hongkong

Hong Kong Shares Rise to New Record

Driven by Chinese banks and insurance providers, Hong Kong shares rose by 0.7 percent or 149.79 points. Francis Lun, the general manager at Fulbright Securities, attributed the increase to money from Chinese retail investors flowing into Hong Kong through unofficial channels. According to traders, the gains in bank shares were also supported by an anticipated cut in the interest-income tax.

Driven by Chinese banks and insurance providers, Hong Kong shares rose by 0.7 percent or 149.79 points. Francis Lun, the general manager at Fulbright Securities, attributed the increase to money from Chinese retail investors flowing into Hong Kong through unofficial channels. According to traders, the gains in bank shares were also supported by an anticipated cut in the interest-income tax.

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hongkong

Hong Kong Industrial Production Continues to Decline

According to the preliminary report published by the Census and Statistics Department, Hong Kong's industrial production fell 1.5 percent from the previous year in the first quarter. Production in wearing apparel, electrical equipment, and professional equipment industries declined significantly, though there was a rise in the food and mineral production industries. The department attributes the decrease to changes in volume of local manufacturing output after discounting the effect of price changes.

According to the preliminary report published by the Census and Statistics Department, Hong Kong's industrial production fell 1.5 percent from the previous year in the first quarter. Production in wearing apparel, electrical equipment, and professional equipment industries declined significantly, though there was a rise in the food and mineral production industries. The department attributes the decrease to changes in volume of local manufacturing output after discounting the effect of price changes.

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hongkong

Hong Kong Emerges as Top Business Center

Hong Kong attains the title of "top business center" in the world title and is ranked fifth among cities in global commerce, according to the 2007 MasterCard Worldwide Centers of Commerce Index. The assessment attributes Hong Kong's success to its well-designed commercial infrastructure, control of the world's second-busiest port, and extensive connection with the international market.

Hong Kong attains the title of "top business center" in the world title and is ranked fifth among cities in global commerce, according to the 2007 MasterCard Worldwide Centers of Commerce Index. The assessment attributes Hong Kong's success to its well-designed commercial infrastructure, control of the world's second-busiest port, and extensive connection with the international market.

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hongkong

Internet Group Expresses Concern Over Hong Kong's Tech Front

According to the Internet Professional Association, Hong Kong is technologically ill-prepared to embrace the future. When measured by the Network Readiness Index (NRI), or how ready a country is to exploit technology, Hong Kong ranks 11th out of 122 countries. In addition, according to a survey by the UN Conference of Trade and Development, only 17.3 percent of internet users go online to provide customer services, while 96.2 percent check e-mails. iProA Policy Committee Vice Chairman Paul Fung states that, unless the government adopts a proactive stance and overcomes its conservative views on Information and Communication Technology, Hong Kong will struggle to remain as a competitive economic powerhouse.

According to the Internet Professional Association, Hong Kong is technologically ill-prepared to embrace the future. When measured by the Network Readiness Index (NRI), or how ready a country is to exploit technology, Hong Kong ranks 11th out of 122 countries. In addition, according to a survey by the UN Conference of Trade and Development, only 17.3 percent of internet users go online to provide customer services, while 96.2 percent check e-mails. iProA Policy Committee Vice Chairman Paul Fung states that, unless the government adopts a proactive stance and overcomes its conservative views on Information and Communication Technology, Hong Kong will struggle to remain as a competitive economic powerhouse.

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hongkong

Hong Kong Shares Fell 57.64 Points

Hong Kong shares dropped and were further lowered by property stocks, which renewed concerns over higher interest rates. The blue chip Hang Seng Index fell 0.3 percent, or 57.64 points, to 20,578.75. According to analysts, the decline in the benchmark would have been steeper if not for the strong performance of mainland Chinese stocks. The companies affiliated with China were among the few blue chips that ended higher early Wednesday.

Hong Kong shares dropped and were further lowered by property stocks, which renewed concerns over higher interest rates. The blue chip Hang Seng Index fell 0.3 percent, or 57.64 points, to 20,578.75. According to analysts, the decline in the benchmark would have been steeper if not for the strong performance of mainland Chinese stocks. The companies affiliated with China were among the few blue chips that ended higher early Wednesday.

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hongkong

Hong Kong: Issuance of Yuan Bonds Small

According to Hong Kong Monetary Authority chief executive Joseph Yam Chi-kwong, the fist wave of yuan bond issuance is likely to be small due the minimal level of yuan deposits in Hong Kong. The impact of yuan bonds will be significant because they will open up a channel of yuan flows between Hong Kong and China. The mainland policy bank, Exim Bank, will become the first Chinese lender to issue 2 billion yuan worth of bonds in Hong Kong this month.

According to Hong Kong Monetary Authority chief executive Joseph Yam Chi-kwong, the fist wave of yuan bond issuance is likely to be small due the minimal level of yuan deposits in Hong Kong. The impact of yuan bonds will be significant because they will open up a channel of yuan flows between Hong Kong and China. The mainland policy bank, Exim Bank, will become the first Chinese lender to issue 2 billion yuan worth of bonds in Hong Kong this month.

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hongkong

Hong Kong Strong in International Investment

According to Hong Kong's Census and Statistics Department, its international investment in 2006 remained solid, with aggregate net external financial assets of HKD 4.2 trillion. The net external financial assets of 2006 were reported to be 282 percent of GDP, which indicates that Hong Kong is a highly externally-oriented economy with considerable cross-territory investments.

According to Hong Kong's Census and Statistics Department, its international investment in 2006 remained solid, with aggregate net external financial assets of HKD 4.2 trillion. The net external financial assets of 2006 were reported to be 282 percent of GDP, which indicates that Hong Kong is a highly externally-oriented economy with considerable cross-territory investments.

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hongkong

Hong Kong's Property Market Transactions Rise

Due to the economic recovery over the last three years, Hong Kong's property market transactions, both commercial and residential, have reached nearly HKD 45 billion last month, representing a significant 35.5 percent year-on-year increase according to a government official. Hong Kong's property stocks are growing steadily despite the slight dip in China's A-share market.

Due to the economic recovery over the last three years, Hong Kong's property market transactions, both commercial and residential, have reached nearly HKD 45 billion last month, representing a significant 35.5 percent year-on-year increase according to a government official. Hong Kong's property stocks are growing steadily despite the slight dip in China's A-share market.

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hongkong

China Releases Rules on Issuing of Yuan Bonds in Hong Kong

Beijing said in January that they would allow Chinese financial institutions to issue yuan (RMB) bonds in Hong Kong. Friday, China published rules governing mainland financial institutions' issuance of yuan bonds. This will be the first time Chinese currency has been used for financial intermediation in the international debt market.

 

Beijing said in January that they would allow Chinese financial institutions to issue yuan (RMB) bonds in Hong Kong. Friday, China published rules governing mainland financial institutions' issuance of yuan bonds. This will be the first time Chinese currency has been used for financial intermediation in the international debt market.

 

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hongkong

Cathay Pacific Rejects Pakistan's Plane Scam Allegations

Hong Kong airline carrier Cathay Pacific on Friday rejected allegations that it provided millions of dollars in kickbacks to an official of Pakistan International Airlines (PIA) during the sale of six second-hand planes. Pakistan's National Accountability Bureau insists that Cathay Pacific caused PIA losses of USD 31 million.

Hong Kong airline carrier Cathay Pacific on Friday rejected allegations that it provided millions of dollars in kickbacks to an official of Pakistan International Airlines (PIA) during the sale of six second-hand planes. Pakistan's National Accountability Bureau insists that Cathay Pacific caused PIA losses of USD 31 million.

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hongkong

Shanghai Shimao Purchase USD 983 Million in Properties From Hong Kong

Shanghai Shimao Co, a luxury apartment developer, will buy commercial properties for about USD 983 million in stock in Hong Kong. The Shanghai-based company known for developing luxury apartments has now shifted their development focus on malls and offices. Analysts claims that this change in the company's focus is to reduce the impact of the government's crackdown limiting inflated prices in the housing market.

Shanghai Shimao Co, a luxury apartment developer, will buy commercial properties for about USD 983 million in stock in Hong Kong. The Shanghai-based company known for developing luxury apartments has now shifted their development focus on malls and offices. Analysts claims that this change in the company's focus is to reduce the impact of the government's crackdown limiting inflated prices in the housing market.

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hongkong

Hong Kong Shares Slip, Mainland Market Limits Further Losses

Hong Kong shares fell in early trading, tracking declines on Wall Street overnight. The losses were limited by mainland market, which continues to recover from recent losses. Hong Kong's Hang Seng Index fell by 18.45 points, or 0.1 percent, to close at 20,800.16.

Hong Kong shares fell in early trading, tracking declines on Wall Street overnight. The losses were limited by mainland market, which continues to recover from recent losses. Hong Kong's Hang Seng Index fell by 18.45 points, or 0.1 percent, to close at 20,800.16.

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hongkong

China Claims Support for Hong Kong's Capitalist System

The Chairman of China's National Congress, Wu Baoguo, announced to the press that China would not interrupt Hong Kong's successful capitalist system. However, he also feels that democratic reform should be gradual, and Hong Kong should not switch to democracy too quickly.

The Chairman of China's National Congress, Wu Baoguo, announced to the press that China would not interrupt Hong Kong's successful capitalist system. However, he also feels that democratic reform should be gradual, and Hong Kong should not switch to democracy too quickly.

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hongkong

Morgan Stanley: Increase in Taiwan M&A Likely in 2007

According to Morgan Stanley, merger and acquisition activity in Taiwan is likely to increase as domestic firms seek to publicly list themselves in Hong Kong and China's markets. In addition, Taiwanese banks such as Ta Chong Bank and EnTie Bank are looking to be bought out. These banks have had difficulty raising capital as their shares trade at approximately 1.2 times forecast book value, whereas banks in Hong Kong have shares that trade at roughly twice that amount.

According to Morgan Stanley, merger and acquisition activity in Taiwan is likely to increase as domestic firms seek to publicly list themselves in Hong Kong and China's markets. In addition, Taiwanese banks such as Ta Chong Bank and EnTie Bank are looking to be bought out. These banks have had difficulty raising capital as their shares trade at approximately 1.2 times forecast book value, whereas banks in Hong Kong have shares that trade at roughly twice that amount.

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hongkong

Sri Lanka Telecom Takes Milestone Step in Global Expansion

Sri Lanka Telecom (SLT) has announced the inauguration of services of its Hong Kong subsidiary, SLT Hong Kong Ltd. The launch is a significant milestone for Sri Lankan communications, as SLT has ambitious goals of becoming a global IP solution provider. With Hong Kong regarded as a major gateway for China's global access, Hong Kong incorporation should allow SLT to expand into the booming Chinese market and become a telecom facilitator for the entire Asia region.

Sri Lanka Telecom (SLT) has announced the inauguration of services of its Hong Kong subsidiary, SLT Hong Kong Ltd. The launch is a significant milestone for Sri Lankan communications, as SLT has ambitious goals of becoming a global IP solution provider. With Hong Kong regarded as a major gateway for China's global access, Hong Kong incorporation should allow SLT to expand into the booming Chinese market and become a telecom facilitator for the entire Asia region.

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hongkong

Market Plunge Sees Surge in Chinese Fund Redemptions

Triggered by the hike in the stock transaction tax last Wednesday, Chinese investors redeemed their investment fund units as the mainland market continued to plunge on Monday. Many Hong Kong brokerage houses expect more mainland retail investors will find Hong Kong shares increasingly attractive, with a number of brokerages reporting that about 30 percent of their new accounts over the past month are being opened by mainlanders.

Triggered by the hike in the stock transaction tax last Wednesday, Chinese investors redeemed their investment fund units as the mainland market continued to plunge on Monday. Many Hong Kong brokerage houses expect more mainland retail investors will find Hong Kong shares increasingly attractive, with a number of brokerages reporting that about 30 percent of their new accounts over the past month are being opened by mainlanders.

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hongkong

Hong Kong Exchange Seeks Commodities Advisors

Hong Kong Exchange and Clearing Ltd., manager of Asia's third-biggest stock market, plans to choose advisors as early as this month to study the creation of a commodities derivatives exchange, as confirmed by Chairman Ronald Arculli. Arculli plans to focus on commodities such as precious metals and energy, though he will be pitting himself against Singapore's oil-dominating exchange and the Tokyo Commodity Exchange, which handles the region's largest futures markets for precious metals.

Hong Kong Exchange and Clearing Ltd., manager of Asia's third-biggest stock market, plans to choose advisors as early as this month to study the creation of a commodities derivatives exchange, as confirmed by Chairman Ronald Arculli. Arculli plans to focus on commodities such as precious metals and energy, though he will be pitting himself against Singapore's oil-dominating exchange and the Tokyo Commodity Exchange, which handles the region's largest futures markets for precious metals.

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hongkong

Hong Kong Announces Pollution Control

Hong Kong officials announced that they have drafted a set of new targets for pollution control. A study last year estimated that about 4 people die each day from pollution, and it has also cost the city USD 2.5 billion each year for sickness and lose of productivity.

Hong Kong officials announced that they have drafted a set of new targets for pollution control. A study last year estimated that about 4 people die each day from pollution, and it has also cost the city USD 2.5 billion each year for sickness and lose of productivity.

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hongkong

Hong Kong Seeks Trade Relations with Vietnam

A Hong Kong business delegation will depart to Vietnam from June 18-21, according to the Hong Kong Trade Development Council. This delegation will conduct market surveys in Vietnam, the purpose of which is to study Vietnam's investment environment and seek opportunities to develop trade relations between Hong Kong and Vietnam.

A Hong Kong business delegation will depart to Vietnam from June 18-21, according to the Hong Kong Trade Development Council. This delegation will conduct market surveys in Vietnam, the purpose of which is to study Vietnam's investment environment and seek opportunities to develop trade relations between Hong Kong and Vietnam.

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hongkong

Hong Kong's Hang Seng Bank Keen on Mainland Market

Hong Kong's Hang Seng Bank, partly owned by HSBC, is anxious to begin their plan to boost their retail banking business in China. Currently headquartered in Shanghai, Hang Seng is also interested in tapping into China's insurance market.

Hong Kong's Hang Seng Bank, partly owned by HSBC, is anxious to begin their plan to boost their retail banking business in China. Currently headquartered in Shanghai, Hang Seng is also interested in tapping into China's insurance market.

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hongkong

Hong Kong Banks Will Raise Interest Rates

Hong Kong's three-month interbank offered interest rate was raised to 4.567 percent on Tuesday, compared to the 3.9 percent average in January. Research analysts expect that banks may raise their rates even higher in order to offset the high cost of funding.

Hong Kong's three-month interbank offered interest rate was raised to 4.567 percent on Tuesday, compared to the 3.9 percent average in January. Research analysts expect that banks may raise their rates even higher in order to offset the high cost of funding.

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hongkong

APEC to Study State-Owned Oil Firms

Asia-Pacific Economic Cooperation (APEC) energy ministers plan to study the impact of state ownership of oil and gas companies among its 21-member body by focusing on their trade and investment. The study expects to form partnerships between state-controlled and private oil companies in order to efficiently develop reserves.

Asia-Pacific Economic Cooperation (APEC) energy ministers plan to study the impact of state ownership of oil and gas companies among its 21-member body by focusing on their trade and investment. The study expects to form partnerships between state-controlled and private oil companies in order to efficiently develop reserves.

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hongkong

Hong Kong Shares Drop as Chinese Triple Trade Tax

On Wednesday, Hong Kong shares surprisingly dropped after an overnight trading tax change by Chinese authorities. The tripling of the trade tax is aimed to cool down the red hot mainland stock market. Hong Kong traders have different views on this sudden drop in shares.

On Wednesday, Hong Kong shares surprisingly dropped after an overnight trading tax change by Chinese authorities. The tripling of the trade tax is aimed to cool down the red hot mainland stock market. Hong Kong traders have different views on this sudden drop in shares.

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hongkong

Chinese Stock Market Influences Hong Kong Economy

Hong Kong bankers discussed the influence of the Chinese stock market on Hong Kong's economy. They say, the volatile Chinese stock market might put Hong Kong's stock market at risk. In fact, mainland companies listed in Hong Kong by April accounted for 47% of Hong Kong stock market's capitalization.

Hong Kong bankers discussed the influence of the Chinese stock market on Hong Kong's economy. They say, the volatile Chinese stock market might put Hong Kong's stock market at risk. In fact, mainland companies listed in Hong Kong by April accounted for 47% of Hong Kong stock market's capitalization.

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hongkong

Mainland China Plans to Issue Bond in Hong Kong

One of the nation's largest lenders, Bank of China, has confirmed that they plan to issue up to 3 billion yuan (USD390 million) of bonds in Hong Kong. The issue in yuan will be subject to approval on June 14 during a shareholders meeting in Beijing. Other than Bank of China, other large Chinese banks, including Industrial and Commercial Bank of China, have applied to issue yuan bonds in Hong Kong as well.

One of the nation's largest lenders, Bank of China, has confirmed that they plan to issue up to 3 billion yuan (USD390 million) of bonds in Hong Kong. The issue in yuan will be subject to approval on June 14 during a shareholders meeting in Beijing. Other than Bank of China, other large Chinese banks, including Industrial and Commercial Bank of China, have applied to issue yuan bonds in Hong Kong as well.

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hongkong

Hong Kong Dollar Recoups Early Losses

The Hong Kong dollar has suffered selling pressure amid the repatriation of funds raised from recent initial public offerings by Chinese companies, leading arbitrage traders to take advantage of an interest rate differential with that of the United States. Most interbank rates edged higher, leaving dealers concerned that the interbank rates will eventually push local banks to raise their own rates.

The Hong Kong dollar has suffered selling pressure amid the repatriation of funds raised from recent initial public offerings by Chinese companies, leading arbitrage traders to take advantage of an interest rate differential with that of the United States. Most interbank rates edged higher, leaving dealers concerned that the interbank rates will eventually push local banks to raise their own rates.

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hongkong

Asian Stocks Fall on US Rate Speculation

Speculation that interest rates will be adjusted downward in the US, Asia's largest export market, has all but dissipated, especially with an unexpected surge in US home sales. The result was the largest drop in Asian stocks in the past five weeks, with only the benchmark indexes of China, India, Pakistan, and Sri Lanka advancing in the region. Hong Kong's Hang Seng Index fell 1.3 percent, while Japan's Nikkei 225 Stock Average took its largest hit of the month at 1.2 percent.

Speculation that interest rates will be adjusted downward in the US, Asia's largest export market, has all but dissipated, especially with an unexpected surge in US home sales. The result was the largest drop in Asian stocks in the past five weeks, with only the benchmark indexes of China, India, Pakistan, and Sri Lanka advancing in the region. Hong Kong's Hang Seng Index fell 1.3 percent, while Japan's Nikkei 225 Stock Average took its largest hit of the month at 1.2 percent.

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hongkong

China's Widening QDII Quota Encourages Hong Kong

The China Banking Regulatory Commission (CBRC) has announced that it will extend the spectrum of Qualified Domestic Institutional Investors' (QDII) products to overseas stocks, and analysts believe that the widening will boost Hong Kong's equity market. At the same time, further relaxation could transfer excess liquidity and decrease foreign reserve pressure for the Chinese mainland.

The China Banking Regulatory Commission (CBRC) has announced that it will extend the spectrum of Qualified Domestic Institutional Investors' (QDII) products to overseas stocks, and analysts believe that the widening will boost Hong Kong's equity market. At the same time, further relaxation could transfer excess liquidity and decrease foreign reserve pressure for the Chinese mainland.

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hongkong

Hong Kong Dollar Reaches Near 22-Year Low

Under selling pressure from interest rate arbitrage and anticipation of the impending US-China talks, the Hong Kong dollar has dropped to 7.823 against the US dollar. Expectations are that, in the short term, rates will continue to fall as arbitrage trading continues amidst expected improving market liquidity, and while commercial interest in the US dollar continues.

Under selling pressure from interest rate arbitrage and anticipation of the impending US-China talks, the Hong Kong dollar has dropped to 7.823 against the US dollar. Expectations are that, in the short term, rates will continue to fall as arbitrage trading continues amidst expected improving market liquidity, and while commercial interest in the US dollar continues.

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hongkong

Hong Kong: A Better Investment?

Stock Investment Management chief investment officer warns that mainland China's high trade shares might be a bubble ready to burst and that investment would be better placed with some of Hong Kong's most lucrative companies. Peter Stock, the firm's president, suggests a few Hong Kong companies that would serve as a safer hold for investors' money while still maintaining high levels of return for their value.

Stock Investment Management chief investment officer warns that mainland China's high trade shares might be a bubble ready to burst and that investment would be better placed with some of Hong Kong's most lucrative companies. Peter Stock, the firm's president, suggests a few Hong Kong companies that would serve as a safer hold for investors' money while still maintaining high levels of return for their value.

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hongkong

Hong Kong's Blue Chip Decline Leads to Drop in Shares

Declines in major blue chips and China-registered companies led to a fall in both major Hong Kong indices Tuesday, with the Hang Seng Index dropping 0.4 percent to 20,843.92 and the H-share Index dropping 0.4 percent to 10,838.36. Investors raced to secure profits when the benchmark Hang Seng topped 21,000.00 points, but traders are confident that high liquidity and a strong mainland economy will be enough to support the Hong Kong market.

Declines in major blue chips and China-registered companies led to a fall in both major Hong Kong indices Tuesday, with the Hang Seng Index dropping 0.4 percent to 20,843.92 and the H-share Index dropping 0.4 percent to 10,838.36. Investors raced to secure profits when the benchmark Hang Seng topped 21,000.00 points, but traders are confident that high liquidity and a strong mainland economy will be enough to support the Hong Kong market.

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hongkong

Hong Kong, Singapore Banks to Start Local Business in China

Hong Kong-based Hang Seng Bank and Singapore's DBS Group Holdings announced that they have been allowed by the China Banking Regulatory Commission (CBRC) to start local incorporation and engage in China's currency retail business. The two banks say they will begin business shortly and provide their full range of wealth management services to mainland Chinese customers.

Hong Kong-based Hang Seng Bank and Singapore's DBS Group Holdings announced that they have been allowed by the China Banking Regulatory Commission (CBRC) to start local incorporation and engage in China's currency retail business. The two banks say they will begin business shortly and provide their full range of wealth management services to mainland Chinese customers.

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hongkong

Hong Kong's GDP Continues Uninterrupted Growth

Exceeding the government's target for the first quarter of fiscal year 2007, Hong Kong's GDP rose 6.4% from a year earlier, the fifteenth consecutive quarter of uninterrupted growth. The steady increase in consumer spending was encouraged by Hong Kong's falling unemployment rate, which fell to as low as 4.3%, and booming stock and housing markets. Average daily trading is up 70% from last year, while the value of residential units changing hands soared by 94.8% over the same period.

Exceeding the government's target for the first quarter of fiscal year 2007, Hong Kong's GDP rose 6.4% from a year earlier, the fifteenth consecutive quarter of uninterrupted growth. The steady increase in consumer spending was encouraged by Hong Kong's falling unemployment rate, which fell to as low as 4.3%, and booming stock and housing markets. Average daily trading is up 70% from last year, while the value of residential units changing hands soared by 94.8% over the same period.

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hongkong

China and Hong Kong's Stocks Fall Down

Influenced by Japanese core machinery order data, most Asian markets fell on Tuesday, including Mainland China and Hong Kong. Profit taking made the Hang Seng Index fall by 11.09 points or 0.53 percent but the index still has an upward trend. At the same time, due to the allowance of banks to invest in overseas stocks and the urge of local branches to educate investors about risks in stocks, China's shares also went down.

Influenced by Japanese core machinery order data, most Asian markets fell on Tuesday, including Mainland China and Hong Kong. Profit taking made the Hang Seng Index fall by 11.09 points or 0.53 percent but the index still has an upward trend. At the same time, due to the allowance of banks to invest in overseas stocks and the urge of local branches to educate investors about risks in stocks, China's shares also went down.

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hongkong

Investment Negotiations between Kazakhstan and Hong Kong

The Almaty Regional Financial Center (ARFC) and Hong Kong have agreed on the establishment of a conjoint fund enabling investments from Kazakhstan in Hong Kong and vice versa. As the fund shall be set up in 2008, negotiations concentrate on how it will be set up.

The Almaty Regional Financial Center (ARFC) and Hong Kong have agreed on the establishment of a conjoint fund enabling investments from Kazakhstan in Hong Kong and vice versa. As the fund shall be set up in 2008, negotiations concentrate on how it will be set up.

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hongkong

China's Ping An Insurance Co. to Join Hang Seng Index

After carefully reviewing Hong Kong's stock benchmark, Ping An Insurance (Group) Co., China mainland's second-biggest insurer, has made a decision to join the Hang Seng Index (HSI). As the sixth Chinese mainland stock adds to Hang Seng, Ping An's joining will promote HSI, especially with H shares in terms of market cap and turnover.

After carefully reviewing Hong Kong's stock benchmark, Ping An Insurance (Group) Co., China mainland's second-biggest insurer, has made a decision to join the Hang Seng Index (HSI). As the sixth Chinese mainland stock adds to Hang Seng, Ping An's joining will promote HSI, especially with H shares in terms of market cap and turnover.

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hongkong

Taiwanese Firms Diminishing in Capital Markets

Taiwan's influence on global capital markets is diminishing as fewer Taiwanese companies have been seen on the list of top 1,000 Greater China enterprises. Compared to last year, a reduction of 40 per cent of Taiwanese companies was seen on the list. Moreover, Chinese firms are beginning to increase, indicating that new companies have been listed within China and share prices of older companies have gone up.

Taiwan's influence on global capital markets is diminishing as fewer Taiwanese companies have been seen on the list of top 1,000 Greater China enterprises. Compared to last year, a reduction of 40 per cent of Taiwanese companies was seen on the list. Moreover, Chinese firms are beginning to increase, indicating that new companies have been listed within China and share prices of older companies have gone up.

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hongkong

Hong Kong's Cargo Volume Goes Down

Hong Kong's port operators fell 8.8 percent boxes in March and experienced the biggest drop in nine months. The reasons are China's slowing trade growth and increased competition between mainland ports and Hong Kong ports.

Hong Kong's port operators fell 8.8 percent boxes in March and experienced the biggest drop in nine months. The reasons are China's slowing trade growth and increased competition between mainland ports and Hong Kong ports.

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hongkong

Macau Bank Objects to US Debarment over North Korean Nuclear Disarmament Conflict

The Macau Bank has filed a petition to the US Treasury Department, requesting to overturn the decision of barring them from businesses with US banks. Marrow of the dispute has been the consideration of the bank as a "primary money-laundering concern" for North Korea and the US instigation to freeze North Korea's money whereupon North Korea missed a deadline for shutting down a nuclear reactor.

The Macau Bank has filed a petition to the US Treasury Department, requesting to overturn the decision of barring them from businesses with US banks. Marrow of the dispute has been the consideration of the bank as a "primary money-laundering concern" for North Korea and the US instigation to freeze North Korea's money whereupon North Korea missed a deadline for shutting down a nuclear reactor.

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hongkong

APEC's Free Trade Area Woes

The Asia Pacific Economic Cooperation (APEC) forum held in Hanoi from November 17 to 19 resulted in renewed discussions on trade. APEC leaders drafted a statement on the WTO's Doha Development Agenda and the Hanoi Action Plan. The leaders agreed on the need to continue the stalled round of Doha trade negotiations. However, they refuse to empower negotiators to execute this goal until all members are better prepared for liberalization.

The longer APEC nations put off negotiating a multilateral agreement, the more difficulties they are likely to face. It will be considerably harder to catch up with developed nations and trade blocs such as the EU. APEC will also be losing potential profits. To prevent unequal economic gains, protection of smaller, vulnerable nations is necessary. However, all will lose if Asian economies continue to interact with one another as inefficiently as they currently do. If these nations are going to remain internationally competitive, they must consolidate economic power.

The slow pace of progress invites criticism. Is APEC really as inefficient as its detractors claim? APEC allows smaller nations to balance against stronger players such China and the US, while still cooperating with them for economic gain. With the kinds of obstacles that the leaders face, some wariness is justified. A free trade area only has potential if developing countries in APEC take necessary precautions. They must be strong enough to withstand fluctuations in international markets before they open their economies to free trade. Capacity-building measures and the flexibility for leaders in determining national trade policies will prevent an agreement from benefiting members unequally.

APEC nations should not delay too long, or they risk lagging behind economically. A free trade agreement between APEC nations would facilitate trade within the bloc and internationally. These countries already control nearly half the world's trade and 56 percent of global gross domestic product. WTO negotiations had come to a halt because of disagreement on subsidies. In Hanoi, the US and Japan did not complete unfinished discussions on reductions in agricultural subsidies. China and Australia also have yet to consider further tariff cuts on industrial goods. The conference, however, did open debate for the first time since Doha and concessions are likely to follow. The Hanoi Action Plan outlines details of a multinational agreement. The agreement will streamline the negotiation process and replace 50 bilateral treaties. It proposes that members institute measures which will prepare economies for trade liberalization. The Plan also identifies corruption as an obstacle to growth. The leaders also focused on energy security. Development of renewable technologies and cleaner use of fossil fuels are among the issues of concern. The difficulties in WTO negotiations have made leaders wary.

The chances for success may be higher for a regional trade area. The EU for instance has proved more successful, but APEC will face different challenges. Singapore's Prime Minister Lee Hsien Loong thinks that the EU trade bloc was easier to create because of greater political similarities between nations. APEC includes some of the world's richest and poorest countries. The disparity in economic backgrounds also makes it difficult to find common ground. The conference agenda included discussions of pandemic diseases such as AIDS and disaster response plans. Vietnamese President Nguyen Minh Triet issued a statement on North Korea's nuclear arsenal. Some are critical of the meeting's success since no declaration was issued. APEC does provide a forum for world leaders to discuss pressing concerns, but international security is not the organization's primary focus. Those types of discussions would diffuse its main purpose which is to discuss economic development and trade.

APEC should begin negotiations much sooner than it plans. It can simultaneously help its smaller members strengthen their economies. The bloc could integrate weaker economies, seeking to strengthen vulnerable industries, at a slower pace. Other necessary measures include improving infrastructure and reforming laws. Meanwhile, nations can continue to sign bilateral or even smaller multilateral agreements. They can also provide aid to some of the lesser developing nations. APEC should also begin to develop enforcement procedures. As a trade bloc, the organization could later leverage its influence to more effectively address security and health issues.

 

The Asia Pacific Economic Cooperation (APEC) forum held in Hanoi from November 17 to 19 resulted in renewed discussions on trade. APEC leaders drafted a statement on the WTO's Doha Development Agenda and the Hanoi Action Plan. The leaders agreed on the need to continue the stalled round of Doha trade negotiations. However, they refuse to empower negotiators to execute this goal until all members are better prepared for liberalization.

The longer APEC nations put off negotiating a multilateral agreement, the more difficulties they are likely to face. It will be considerably harder to catch up with developed nations and trade blocs such as the EU. APEC will also be losing potential profits. To prevent unequal economic gains, protection of smaller, vulnerable nations is necessary. However, all will lose if Asian economies continue to interact with one another as inefficiently as they currently do. If these nations are going to remain internationally competitive, they must consolidate economic power.

The slow pace of progress invites criticism. Is APEC really as inefficient as its detractors claim? APEC allows smaller nations to balance against stronger players such China and the US, while still cooperating with them for economic gain. With the kinds of obstacles that the leaders face, some wariness is justified. A free trade area only has potential if developing countries in APEC take necessary precautions. They must be strong enough to withstand fluctuations in international markets before they open their economies to free trade. Capacity-building measures and the flexibility for leaders in determining national trade policies will prevent an agreement from benefiting members unequally.

APEC nations should not delay too long, or they risk lagging behind economically. A free trade agreement between APEC nations would facilitate trade within the bloc and internationally. These countries already control nearly half the world's trade and 56 percent of global gross domestic product. WTO negotiations had come to a halt because of disagreement on subsidies. In Hanoi, the US and Japan did not complete unfinished discussions on reductions in agricultural subsidies. China and Australia also have yet to consider further tariff cuts on industrial goods. The conference, however, did open debate for the first time since Doha and concessions are likely to follow. The Hanoi Action Plan outlines details of a multinational agreement. The agreement will streamline the negotiation process and replace 50 bilateral treaties. It proposes that members institute measures which will prepare economies for trade liberalization. The Plan also identifies corruption as an obstacle to growth. The leaders also focused on energy security. Development of renewable technologies and cleaner use of fossil fuels are among the issues of concern. The difficulties in WTO negotiations have made leaders wary.

The chances for success may be higher for a regional trade area. The EU for instance has proved more successful, but APEC will face different challenges. Singapore's Prime Minister Lee Hsien Loong thinks that the EU trade bloc was easier to create because of greater political similarities between nations. APEC includes some of the world's richest and poorest countries. The disparity in economic backgrounds also makes it difficult to find common ground. The conference agenda included discussions of pandemic diseases such as AIDS and disaster response plans. Vietnamese President Nguyen Minh Triet issued a statement on North Korea's nuclear arsenal. Some are critical of the meeting's success since no declaration was issued. APEC does provide a forum for world leaders to discuss pressing concerns, but international security is not the organization's primary focus. Those types of discussions would diffuse its main purpose which is to discuss economic development and trade.

APEC should begin negotiations much sooner than it plans. It can simultaneously help its smaller members strengthen their economies. The bloc could integrate weaker economies, seeking to strengthen vulnerable industries, at a slower pace. Other necessary measures include improving infrastructure and reforming laws. Meanwhile, nations can continue to sign bilateral or even smaller multilateral agreements. They can also provide aid to some of the lesser developing nations. APEC should also begin to develop enforcement procedures. As a trade bloc, the organization could later leverage its influence to more effectively address security and health issues.

 

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hongkong

Asian Markets Fall Again After Rebound

Chinese stocks fell again after rebounding Wednesday from their biggest drop in a decade. Elsewhere, Japan, Taiwan, Hong Kong, Singapore, Australia, and New Zealand markets were all down. The Philippines, India, Pakistan, Thailand and Indonesia indices were up, with the Philippines' rise as the region's biggest gain of the day after seeing Asia's biggest drop Wednesday at 7.9 percent.

Chinese stocks fell again after rebounding Wednesday from their biggest drop in a decade. Elsewhere, Japan, Taiwan, Hong Kong, Singapore, Australia, and New Zealand markets were all down. The Philippines, India, Pakistan, Thailand and Indonesia indices were up, with the Philippines' rise as the region's biggest gain of the day after seeing Asia's biggest drop Wednesday at 7.9 percent.

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hongkong

The Asian Stock Markets: Boom or Bust?

The year 2006 for the Asian stock markets saw unprecedented gains of the kind rarely witnessed. The stock markets of China, Hong Kong, Singapore, India, Indonesia, Malaysia, New Zealand and Vietnam hit record highs while Japan, South Korea and Taiwan also posted muted though respectable gains. With this state of affairs, it was perhaps unsurprising that global investors flocked to the Asian markets just hoping to reap some of the big rewards. However, some people feel that the amazing growth of these stock markets needs to be tempered with a healthy dose of caution since the nightmarish memories of the 1997-meltdown in the region's equity markets just refuse to die out. This has raised a few doubts among analysts studying the region and has prompted many to be skeptical about the potential growth prospects of these markets in the future.

A Year of Skyrocketing Growth

During the last few years, many stock markets in Asia have been rising rapidly. In China, during 2006, stocks in the home market sizzled, at long last reflecting the country's gathering economic might after years of paltry returns. The MSCI China A, an index of domestically listed stocks, soared 128 percent.1 The scenario was also quite rosy in India when the Bombay stock exchange rocketed another 46.7 percent in 2006.2 Elsewhere in the region, markets bolted ahead on sound economic fundamentals, with markets in Indonesia, the Philippines and Singapore returning 55.3 percent, 42.3 percent and 27.2 percent, respectively.3 Even the so-called stragglers, Taiwan and Malaysia, clocked returns of 19.5 percent and 21.8 percent in 2006, a reflection of just how turbo-charged the growth trend has been. The only disappointments were South Korea which rose by a modest 4 percent last year and Japan, which, contrary to expectations, managed to end the year up only 6.9 percent. This is creditable given that these enormous returns occurred despite a plunge in the region's stock markets during May and June, when foreign investors were spooked by the prospect of rising interest rates and fled riskier assets.4 With massive investor confidence and a huge amount of global liquidity, it is no wonder that there has been a mad rush by global investors to invest in the region.

Factors Driving the Growth

Many changes have transformed the domestic economies of the Asian region radically over the last decade. Many market watchers believe that these emerging economies are on a much surer financial footing than in the past. Many have pared their deficits, increased their reserves and reduced their dependence on exports to the US, thereby decreasing their vulnerability to a potential US economic slowdown.5 Some investors believe that these countries are finally beginning to decouple from the US economy either by trading more among themselves or relying more on local consumer demand.6 Skeptics discount this hypothesis and consider it too early to draw conclusions. A slow US economy could still trigger a region-wide recession in the near future.

Impediments to Sustainable Growth

Despite all the hype and hoopla surrounding the Asian economies and their booming stock markets, the future growth outlook for these economies is strangely benign. Experts believe that even though Asia is presently more resilient to a US slowdown than in the past, a drastic slowdown to the US economy might seriously upset the status quo. Currently, investor sentiment remains strong as evidenced by several positive factors like lower international oil prices and a recovery staged by Wall Street after the mid-year slump in 2006. However, financial markets might feel the impact if institutional investors in the US and Europe become more risk-averse, or if the global liquidity that has been funding portfolio investment in Asia dries up.7 The region is still highly export-dependent and vulnerable to developments in the US. In fact, many of the goods traded within Asia are still used as inputs for products that are ultimately sold to the US and other OECD economies.8 These emerging economies are currently characterized by weak inflation levels, strong growth, solvent governments and a lesser degree of dependence on foreign money to finance their investment requirements.9 Although the domestic economies in Asia seem to be in impressive shape, they remain vulnerable to disruption if investment-positive factors begin to wane. Potential investors should exercise a significant degree of caution and restraint while deciding whether or not to invest their money in Asia's growing bourses.

 

This article was originally published in Asia Economic Institute Vol. 1 No. 5.

 

Tell us what you think about this issue by adding a comment.

The year 2006 for the Asian stock markets saw unprecedented gains of the kind rarely witnessed. The stock markets of China, Hong Kong, Singapore, India, Indonesia, Malaysia, New Zealand and Vietnam hit record highs while Japan, South Korea and Taiwan also posted muted though respectable gains. With this state of affairs, it was perhaps unsurprising that global investors flocked to the Asian markets just hoping to reap some of the big rewards. However, some people feel that the amazing growth of these stock markets needs to be tempered with a healthy dose of caution since the nightmarish memories of the 1997-meltdown in the region's equity markets just refuse to die out. This has raised a few doubts among analysts studying the region and has prompted many to be skeptical about the potential growth prospects of these markets in the future.

A Year of Skyrocketing Growth

During the last few years, many stock markets in Asia have been rising rapidly. In China, during 2006, stocks in the home market sizzled, at long last reflecting the country's gathering economic might after years of paltry returns. The MSCI China A, an index of domestically listed stocks, soared 128 percent.1 The scenario was also quite rosy in India when the Bombay stock exchange rocketed another 46.7 percent in 2006.2 Elsewhere in the region, markets bolted ahead on sound economic fundamentals, with markets in Indonesia, the Philippines and Singapore returning 55.3 percent, 42.3 percent and 27.2 percent, respectively.3 Even the so-called stragglers, Taiwan and Malaysia, clocked returns of 19.5 percent and 21.8 percent in 2006, a reflection of just how turbo-charged the growth trend has been. The only disappointments were South Korea which rose by a modest 4 percent last year and Japan, which, contrary to expectations, managed to end the year up only 6.9 percent. This is creditable given that these enormous returns occurred despite a plunge in the region's stock markets during May and June, when foreign investors were spooked by the prospect of rising interest rates and fled riskier assets.4 With massive investor confidence and a huge amount of global liquidity, it is no wonder that there has been a mad rush by global investors to invest in the region.

Factors Driving the Growth

Many changes have transformed the domestic economies of the Asian region radically over the last decade. Many market watchers believe that these emerging economies are on a much surer financial footing than in the past. Many have pared their deficits, increased their reserves and reduced their dependence on exports to the US, thereby decreasing their vulnerability to a potential US economic slowdown.5 Some investors believe that these countries are finally beginning to decouple from the US economy either by trading more among themselves or relying more on local consumer demand.6 Skeptics discount this hypothesis and consider it too early to draw conclusions. A slow US economy could still trigger a region-wide recession in the near future.

Impediments to Sustainable Growth

Despite all the hype and hoopla surrounding the Asian economies and their booming stock markets, the future growth outlook for these economies is strangely benign. Experts believe that even though Asia is presently more resilient to a US slowdown than in the past, a drastic slowdown to the US economy might seriously upset the status quo. Currently, investor sentiment remains strong as evidenced by several positive factors like lower international oil prices and a recovery staged by Wall Street after the mid-year slump in 2006. However, financial markets might feel the impact if institutional investors in the US and Europe become more risk-averse, or if the global liquidity that has been funding portfolio investment in Asia dries up.7 The region is still highly export-dependent and vulnerable to developments in the US. In fact, many of the goods traded within Asia are still used as inputs for products that are ultimately sold to the US and other OECD economies.8 These emerging economies are currently characterized by weak inflation levels, strong growth, solvent governments and a lesser degree of dependence on foreign money to finance their investment requirements.9 Although the domestic economies in Asia seem to be in impressive shape, they remain vulnerable to disruption if investment-positive factors begin to wane. Potential investors should exercise a significant degree of caution and restraint while deciding whether or not to invest their money in Asia's growing bourses.

 

This article was originally published in Asia Economic Institute Vol. 1 No. 5.

 

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hongkong

HK Taxpayers To Get Part of Surplus

Facing a larger than expected surplus, the Hong Kong government is considering ways to share the windfall with taxpayers. In an election year, the government is considering either cutting income and coporate tax rates, not collecting taxes for a period, raising the minimum taxable income, or other options to spread the wealth of the surplus.

Facing a larger than expected surplus, the Hong Kong government is considering ways to share the windfall with taxpayers. In an election year, the government is considering either cutting income and coporate tax rates, not collecting taxes for a period, raising the minimum taxable income, or other options to spread the wealth of the surplus.

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hongkong

HK and Singapore Tops for Entrepreneurs

Hong Kong and Singapore ranked as the top two countries for encouraging entrepreneurial activity. The Milken Institute Capital Access Index ranks countries in terms of their financial infrastructure for investment activity. Hong Kong moved from 2nd in 2005 to first based on its sound banking system, large equity market, and diversified sources of funding.

Hong Kong and Singapore ranked as the top two countries for encouraging entrepreneurial activity. The Milken Institute Capital Access Index ranks countries in terms of their financial infrastructure for investment activity. Hong Kong moved from 2nd in 2005 to first based on its sound banking system, large equity market, and diversified sources of funding.

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hongkong

HK Inflation Slows in January

Consumer prices rose 2% in January compared to a year earlier the government reported today. Inflation has held at 2% or more for four straight months in Hong Kong after six years of deflation ended in 2005. Some of the inlfation slowdown was credited to the Lunar New Year holiday falling in February this year as opposed to January.

Consumer prices rose 2% in January compared to a year earlier the government reported today. Inflation has held at 2% or more for four straight months in Hong Kong after six years of deflation ended in 2005. Some of the inlfation slowdown was credited to the Lunar New Year holiday falling in February this year as opposed to January.

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hongkong

Citigroup to Invest in India and China

A Hong Kong-based team from Citigroup has raised $1.29 billion for its first fund to invest in real estate in Asia, with a focus on China and India. This announcement comes a day after Citigroup announced plans to invest $3.5 billion in companies in emerging markets, including India and China.

A Hong Kong-based team from Citigroup has raised $1.29 billion for its first fund to invest in real estate in Asia, with a focus on China and India. This announcement comes a day after Citigroup announced plans to invest $3.5 billion in companies in emerging markets, including India and China.

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hongkong

Asian Markets Close with Mixed Results

Asian stock markets closed with mixed results Friday. Japanese shares fell after a five-session winning streak. Thailand's shares suffered the same fate, slipping 0.8 percent. The Philippines' shares also declined as investors cashed in gains during the last two sessions. The big winners were Malaysia, where stocks surged to the highest mark this year and Hong Kong, with shares edging up ahead of the Lunar New Year holiday.

Asian stock markets closed with mixed results Friday. Japanese shares fell after a five-session winning streak. Thailand's shares suffered the same fate, slipping 0.8 percent. The Philippines' shares also declined as investors cashed in gains during the last two sessions. The big winners were Malaysia, where stocks surged to the highest mark this year and Hong Kong, with shares edging up ahead of the Lunar New Year holiday.

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hongkong

Singapore Cuts Taxes to Compete with Hong Kong

Singapore announced plans to cut its corporate tax rate by 2% in 2008 in order to lure corporate operations away from Hong Kong. The decrease will put Singapore's top corporate tax rate at 18%, in order to better compete with HK's 17.5% rate. To compensate for the loss in tax revenue, the goods and services tax will be raised by 2%. Singapore hopes to attract US$7.8 billion in investment with the move.

Singapore announced plans to cut its corporate tax rate by 2% in 2008 in order to lure corporate operations away from Hong Kong. The decrease will put Singapore's top corporate tax rate at 18%, in order to better compete with HK's 17.5% rate. To compensate for the loss in tax revenue, the goods and services tax will be raised by 2%. Singapore hopes to attract US$7.8 billion in investment with the move.

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hongkong

Hong Kong Exchanges & Clearing Ltd Softens Suspension Rule

Hong Kong Exchanges & Clearing Ltd may let companies resume trading the same day their shares are suspended instead of after they publish newspaper announcements, the operator of Asia's second-biggest stock market said. The exchange is studying the possibility and may make an announcement this month, Richard Williams, head of the exchange's listing division, told reporters yesterday.

Hong Kong Exchanges & Clearing Ltd may let companies resume trading the same day their shares are suspended instead of after they publish newspaper announcements, the operator of Asia's second-biggest stock market said. The exchange is studying the possibility and may make an announcement this month, Richard Williams, head of the exchange's listing division, told reporters yesterday.

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hongkong

Hong Kong's Foreign Reserve Hit US$133.7b

Hong Kong's foreign currency reserve assets rose to 133.7 billion U.S. dollars in January, up 500 million U.S. dollars from December, the Monetary Authority said Wednesday. This represented over six times the currency in circulation, or about 37 percent of Hong Kong dollar M3.

Hong Kong's foreign currency reserve assets rose to 133.7 billion U.S. dollars in January, up 500 million U.S. dollars from December, the Monetary Authority said Wednesday. This represented over six times the currency in circulation, or about 37 percent of Hong Kong dollar M3.

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hongkong

Emerging Asia’s Growth and Integration - How Autonomous are Business Cycles?

Against the background of the rapid integration of emerging Asia into the global economy, this paper investigates the role of domestic and external factors in driving individual emerging economies in Asia. We estimate VAR models for ten countries over the period 1979Q1-2003Q4, controlling for external factors, and use sign restrictions to identify structural domestic shocks. Variance decompositions indicate that Asian emerging economies are to a large part driven by external developments, and even more so employing a more recent sample. We analyse to what extent structural domestic shocks exhibit a regional dimension by comparing shocks across countries using correlation and principal component analysis. The extent of regional co-movement between structural shocks is relatively limited. While the principal components analysis indicates a moderate increase in co-movement over time, the correlation analysis finds a decline. This may reflect a broadening of regional integration at the expense of bilateral economic ties.

Against the background of the rapid integration of emerging Asia into the global economy, this paper investigates the role of domestic and external factors in driving individual emerging economies in Asia. We estimate VAR models for ten countries over the period 1979Q1-2003Q4, controlling for external factors, and use sign restrictions to identify structural domestic shocks. Variance decompositions indicate that Asian emerging economies are to a large part driven by external developments, and even more so employing a more recent sample. We analyse to what extent structural domestic shocks exhibit a regional dimension by comparing shocks across countries using correlation and principal component analysis. The extent of regional co-movement between structural shocks is relatively limited. While the principal components analysis indicates a moderate increase in co-movement over time, the correlation analysis finds a decline. This may reflect a broadening of regional integration at the expense of bilateral economic ties.

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hongkong

Outsourcing Tariff Evasion: A New Explanation for Entrepot Trade

Traditional explanations for indirect trade through an entrepot have focused on savings in transport costs and on the role of specialized agents in processing and distribution. We provide an alternative perspective based on the possibility that entrepots may facilitate tariff evasion. Using data on direct exports to mainland China and indirect exports via Hong Kong SAR, we find that the indirect export rate rises with the Chinese tariff rate, even though there is no legal tax advantage to sending goods via Hong Kong SAR. We undertake a number of extensions to rule out plausible alternative hypotheses based on existing explanations for entrepot trade.

Traditional explanations for indirect trade through an entrepot have focused on savings in transport costs and on the role of specialized agents in processing and distribution. We provide an alternative perspective based on the possibility that entrepots may facilitate tariff evasion. Using data on direct exports to mainland China and indirect exports via Hong Kong SAR, we find that the indirect export rate rises with the Chinese tariff rate, even though there is no legal tax advantage to sending goods via Hong Kong SAR. We undertake a number of extensions to rule out plausible alternative hypotheses based on existing explanations for entrepot trade.

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hongkong

Volatility Transmission in Financial Markets:A New Approach

In this paper we suggest ways to characterize the transmission mechanisms of volatility between markets by making use of a new Markov Switching bivariate model where the state of one variable feeds into the transition probability of the state of the other. The comparison between this model and other Markov Switching models allows us to derive statistical tests stressing the role of one market relative to another (contagion, interdependence, comovement, independence, Granger causality). We estimate the model on the weekly high–low range of several Asian markets, with a specific interest in the role of Hong Kong.

In this paper we suggest ways to characterize the transmission mechanisms of volatility between markets by making use of a new Markov Switching bivariate model where the state of one variable feeds into the transition probability of the state of the other. The comparison between this model and other Markov Switching models allows us to derive statistical tests stressing the role of one market relative to another (contagion, interdependence, comovement, independence, Granger causality). We estimate the model on the weekly high–low range of several Asian markets, with a specific interest in the role of Hong Kong.

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hongkong

Currency Futures Volatility During the 1997 East Asian Crisis: An Application of Fourier Analysis

We analyze a recently proposed method to estimate volatility and correlation when prices are observed at a high frequency rate. The method is based on Fourier analysis and does not require any data manipulation, leading to more robust estimates than the traditional methodologies proposed so far. In the first part of the paper, we evaluate the performance of the Fourier algorithm to reconstruct the time volatility of simulated univariate and bivariate models. In the second part, the Fourier method is used to investigate the volatility and correlation dynamics of futures markets over the Asian crisis period, with the purpose of detecting possible interdependencies and volatility transmissions across countries amid a period of financial turmoil.

We analyze a recently proposed method to estimate volatility and correlation when prices are observed at a high frequency rate. The method is based on Fourier analysis and does not require any data manipulation, leading to more robust estimates than the traditional methodologies proposed so far. In the first part of the paper, we evaluate the performance of the Fourier algorithm to reconstruct the time volatility of simulated univariate and bivariate models. In the second part, the Fourier method is used to investigate the volatility and correlation dynamics of futures markets over the Asian crisis period, with the purpose of detecting possible interdependencies and volatility transmissions across countries amid a period of financial turmoil.

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hongkong

Cable-failure Alert System to be Implemented in Pipeline

Since a series of earthquakes near Taiwan caused tremendous damages in East Asia's E-commerce and online technical support, Hong Kong Telecommunications plans to implement a cable-failure alert system to inform the public of future network failures. The new alert system is expected to effectively deal with submarine-cable emergencies so as to diminish negative influences on East Asia's economies.

Since a series of earthquakes near Taiwan caused tremendous damages in East Asia's E-commerce and online technical support, Hong Kong Telecommunications plans to implement a cable-failure alert system to inform the public of future network failures. The new alert system is expected to effectively deal with submarine-cable emergencies so as to diminish negative influences on East Asia's economies.

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hongkong

Company-law Rewrite to Benefit HK

As in most English common law jurisdictions, Hong Kong catches up the trend of company-law reform. The rewrite of the Companies Ordinance will bring significant benefits to Hong Kong in strengthening its status as a global business and financial centre, Secretary for Financial Services & the Treasury Frederick Ma says. Policymakers hope company-law reform will inject new vitality into Hong Kong's economy and spread positive externalities to China mainland.

As in most English common law jurisdictions, Hong Kong catches up the trend of company-law reform. The rewrite of the Companies Ordinance will bring significant benefits to Hong Kong in strengthening its status as a global business and financial centre, Secretary for Financial Services & the Treasury Frederick Ma says. Policymakers hope company-law reform will inject new vitality into Hong Kong's economy and spread positive externalities to China mainland.

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hongkong

An Empirical Study of Asian Stock Volatility Using Stochastic Volatility Factor Model: Factor Analysis and Forecasting

This paper is an empirical study of Asian stock volatility using stochastic volatility factor (SVF) model of Cipollini and Kapetanios (2005). We adopt their approach to carry out factor analysis and to forecast volatility. Our results show some Asian factors exhibit long memory that is in line with existing empirical findings in financial volatility. However, their local-factor SVF model is not powerful enough in forecasting Asian volatility. This has led us to propose an extension to a multi-factor SVF model. We also discuss how to produce forecast using this multi-factor model.

This paper is an empirical study of Asian stock volatility using stochastic volatility factor (SVF) model of Cipollini and Kapetanios (2005). We adopt their approach to carry out factor analysis and to forecast volatility. Our results show some Asian factors exhibit long memory that is in line with existing empirical findings in financial volatility. However, their local-factor SVF model is not powerful enough in forecasting Asian volatility. This has led us to propose an extension to a multi-factor SVF model. We also discuss how to produce forecast using this multi-factor model.

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hongkong

Real Estate and the Asian Crisis

This paper suggests that activities in the real estate markets in Southeast and East Asian economies were an important contributing force to the financial crises of 1997 in the Asian economies. The analysis relies upon unpublished data reported contemporaneously by financial institutions and market watchers to document the extent of the imbalances in the real property market that were evident to informed observers at the time of the financial collapse. The analysis argues that a series of reforms in the regulation of the property market and the treatment of real property loans by financial institutions are necessary to prevent the recurrence of the kind of speculative bubble that contributed to the financial crises in Asia. Given the recentness of the crisis, the nature of the data and the absence of definitive statistical sources, the results are tentative, but they are certainly consistent with a financial collapse whose proximate cause was unchecked activity in the property market.

This paper suggests that activities in the real estate markets in Southeast and East Asian economies were an important contributing force to the financial crises of 1997 in the Asian economies. The analysis relies upon unpublished data reported contemporaneously by financial institutions and market watchers to document the extent of the imbalances in the real property market that were evident to informed observers at the time of the financial collapse. The analysis argues that a series of reforms in the regulation of the property market and the treatment of real property loans by financial institutions are necessary to prevent the recurrence of the kind of speculative bubble that contributed to the financial crises in Asia. Given the recentness of the crisis, the nature of the data and the absence of definitive statistical sources, the results are tentative, but they are certainly consistent with a financial collapse whose proximate cause was unchecked activity in the property market.

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hongkong

Monetary and Exchange Rate Stability in South East Asia

Regaining exchange rate stability has been a major monetary policy goal of East Asian countries in the aftermath of the 1997/98 currency crisis. While most countries have abstained from re-establishing a formal US Dollar peg, they have typically managed the US Dollar exchange rate de facto. We show that most of these countries were able to regain their monetary credibility within a relatively short time period. The Argentine crisis in 2001 caused a minor setback in this process for some countries. We measure the credibility of monetary policy by separating the fundamental and excess volatility of the exchange rate on the basis of a chartist fundamentalist model. The degree of excess volatility is interpreted as the ability of the central bank to manage the exchange rate via the coordination channel.

Regaining exchange rate stability has been a major monetary policy goal of East Asian countries in the aftermath of the 1997/98 currency crisis. While most countries have abstained from re-establishing a formal US Dollar peg, they have typically managed the US Dollar exchange rate de facto. We show that most of these countries were able to regain their monetary credibility within a relatively short time period. The Argentine crisis in 2001 caused a minor setback in this process for some countries. We measure the credibility of monetary policy by separating the fundamental and excess volatility of the exchange rate on the basis of a chartist fundamentalist model. The degree of excess volatility is interpreted as the ability of the central bank to manage the exchange rate via the coordination channel.

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hongkong

Proposed Rules of Origin in Emerging Asia-Pacific Preferential Trade Agreements: Will PTAs Promote Trade and Development?

World trade is increasingly being dominated by preferential trade agreements that have taken precedence over multilateral trade negotiations. Within Asia and the Pacific an explosion of bilateral deals is taking place that seems likely to produce a tangle of hub-spoke trade blocs centered on major Asian or Pacific countries.

World trade is increasingly being dominated by preferential trade agreements that have taken precedence over multilateral trade negotiations. Within Asia and the Pacific an explosion of bilateral deals is taking place that seems likely to produce a tangle of hub-spoke trade blocs centered on major Asian or Pacific countries.

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hongkong

Hong Kong Firms Face Copious Amounts of Fraud

Global audit firm KPMG has confirmed that 43% of Hong Kong firms operating on the mainland have been hit with Fraud. These firms are mostly concerned with payroll fraud and the theft of equipment. Although these incidents are not going unnoticed many of the firms simply do not have the resources to run thorough investigations.

Global audit firm KPMG has confirmed that 43% of Hong Kong firms operating on the mainland have been hit with Fraud. These firms are mostly concerned with payroll fraud and the theft of equipment. Although these incidents are not going unnoticed many of the firms simply do not have the resources to run thorough investigations.

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hongkong

China Agreed to Issue Yuan Bond in Hong Kong

The Chinese government has agreed to allow qualified mainland financial institutions to issue yuan bonds in Hong Kong, in a significant move that analysts say will strengthen Hong Kong's position as an international financial hub. This will be the first time any financial bonds based on the Chinese currency, which is still under tight government control, are allowed to be issued outside the mainland.

The Chinese government has agreed to allow qualified mainland financial institutions to issue yuan bonds in Hong Kong, in a significant move that analysts say will strengthen Hong Kong's position as an international financial hub. This will be the first time any financial bonds based on the Chinese currency, which is still under tight government control, are allowed to be issued outside the mainland.

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hongkong

China's Yuan Breaks 7.8 Mark Against U.S. Dollar

China's yuan advanced 0.16 percent to 7.7949 per US dollar at 5:30 p.m. on January 10, 2007 in Shanghai. The yuan has advanced 6.2 percent after decade-long fixed rater of 8.3 yuan per dollar was scrapped in July 2005. The advance on January 10 also makes China's yuan climb above the Hong Kong dollar's fixed rate for the first time in 13 years.

China's yuan advanced 0.16 percent to 7.7949 per US dollar at 5:30 p.m. on January 10, 2007 in Shanghai. The yuan has advanced 6.2 percent after decade-long fixed rater of 8.3 yuan per dollar was scrapped in July 2005. The advance on January 10 also makes China's yuan climb above the Hong Kong dollar's fixed rate for the first time in 13 years.

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hongkong

Asian Stock Markets Fell

Asian stocks and regional currencies declined due to the proposed nationalization of Venezuela's utilities and the fall of oil prices to a 15-month low. Among the Asian stock markets, Jakarta was hard-hit losing 3.96% or 70.51 points to 1710.36. In addition, the country's currency also fell 0.55 percent to a two-week low. Other bursars in the region also did not perform well.

Asian stocks and regional currencies declined due to the proposed nationalization of Venezuela's utilities and the fall of oil prices to a 15-month low. Among the Asian stock markets, Jakarta was hard-hit losing 3.96% or 70.51 points to 1710.36. In addition, the country's currency also fell 0.55 percent to a two-week low. Other bursars in the region also did not perform well.

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hongkong

Understanding the Latest Wave and Future Shape of Regional Trade and Cooperation Agreements in Asia

Asia accounts for more than 30% of world GDP and contributes half of the global growth in recent years. Despite high growth rates, Asia is still facing considerable socio-economic challenges. If Asia is to reemerge as a major power in the global economy and in order for the region to successfully address its own challenges and issues there is a need to make the region's economies more integrated regionally and internationally. Following the recent global trend, Asia witnessed a wave of subregional and bilateral trade agreements. This paper analyzes the recent trends and patterns and nature of regional trade and cooperation agreements (RTCAs) in Asia and associated problems and prospects. It also attempts to understand the latest wave and the future shape of RTCAs and examines if these RTCAs provide the basis for a new Asia-wide cooperation or for the emergence of new regional trade in blocs of several subregional groupings.

Asia accounts for more than 30% of world GDP and contributes half of the global growth in recent years. Despite high growth rates, Asia is still facing considerable socio-economic challenges. If Asia is to reemerge as a major power in the global economy and in order for the region to successfully address its own challenges and issues there is a need to make the region's economies more integrated regionally and internationally. Following the recent global trend, Asia witnessed a wave of subregional and bilateral trade agreements. This paper analyzes the recent trends and patterns and nature of regional trade and cooperation agreements (RTCAs) in Asia and associated problems and prospects. It also attempts to understand the latest wave and the future shape of RTCAs and examines if these RTCAs provide the basis for a new Asia-wide cooperation or for the emergence of new regional trade in blocs of several subregional groupings.

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hongkong

Asian Economic Integration: ASEAN+3+1 or ASEAN+1s?

In this paper an attempt is made to evaluate the most efficient approach to regional economic integration in Asia. For the purpose, Asia is defined as inclusive of ASEAN, the plus three economies of China, Japan, Korea and India that is the ASEAN plus four. Given that ASEAN is an existing regional bloc in Asia, alternative approaches to the alignment of the plus four economies with ASEAN for the formation of the ASEAN+4 trade bloc have been evaluated to determine if there are efficiency costs by way of distortion in the patterns of trade away from those expected on the basis of comparative advantage. The findings of our analysis underscore the efficiency of a prior alignment with ASEAN for all the plus four economies.

In this paper an attempt is made to evaluate the most efficient approach to regional economic integration in Asia. For the purpose, Asia is defined as inclusive of ASEAN, the plus three economies of China, Japan, Korea and India that is the ASEAN plus four. Given that ASEAN is an existing regional bloc in Asia, alternative approaches to the alignment of the plus four economies with ASEAN for the formation of the ASEAN+4 trade bloc have been evaluated to determine if there are efficiency costs by way of distortion in the patterns of trade away from those expected on the basis of comparative advantage. The findings of our analysis underscore the efficiency of a prior alignment with ASEAN for all the plus four economies.

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hongkong

The Evolution of the East Asian Currency Baskets – Still Undisclosed and Changing

Both before and after the Asian crisis, the dollar has been the dominant anchor and reserve currency in East Asia. Due to underdeveloped capital markets and the limited international role of their domestic currencies, the East Asian countries (except Japan) are likely to continue to stabilize exchange rates and to accumulate international reserves. Yet expectations of further dollar depreciation may trigger a re-orientation of exchange rate policies based on basket strategies. Rolling econometric estimations of the basket structures in East Asia suggest growing weights for the Japanese yen in most East Asian currency baskets. The role of the euro as a reserve currency in East Asia remains uncertain.

Both before and after the Asian crisis, the dollar has been the dominant anchor and reserve currency in East Asia. Due to underdeveloped capital markets and the limited international role of their domestic currencies, the East Asian countries (except Japan) are likely to continue to stabilize exchange rates and to accumulate international reserves. Yet expectations of further dollar depreciation may trigger a re-orientation of exchange rate policies based on basket strategies. Rolling econometric estimations of the basket structures in East Asia suggest growing weights for the Japanese yen in most East Asian currency baskets. The role of the euro as a reserve currency in East Asia remains uncertain.

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hongkong

Asian Equity Markets: Growth,Opportunities, and Challenges

Asian equity markets have grown significantly in size since the early 1990s, driven by strong international investor inflows, growing regional financial integration, capital account liberalization, and structural improvements to markets. The development of equity markets provides a more diversified set of channels for financial intermediation to support growth, thus bolstering medium-term financial stability. At the same time, as highlighted by the May-June 2006 market corrections, the increasing role of stock markets potentially changes the nature of macroeconomic and financial stability risks, as well as the policy requirements for dealing with these risks.

Asian equity markets have grown significantly in size since the early 1990s, driven by strong international investor inflows, growing regional financial integration, capital account liberalization, and structural improvements to markets. The development of equity markets provides a more diversified set of channels for financial intermediation to support growth, thus bolstering medium-term financial stability. At the same time, as highlighted by the May-June 2006 market corrections, the increasing role of stock markets potentially changes the nature of macroeconomic and financial stability risks, as well as the policy requirements for dealing with these risks.

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hongkong

Is Asia Prepared for an Aging Population?

Many Asian countries (such as China, Singapore, Korea, Thailand, Malaysia, Indonesia, India, and the Philippines) will experience a significant aging of their populations during the next several decades. This paper explores how these aging Asian countries are addressing and anticipating the challenges of an aging society. It suggests that Asia's preparedness for an aging population is decidedly mixed. While growth policies have been successful, much work is still needed in many countries to establish an adequate and farsighted policy framework in the areas of pensions, health insurance, and labor market policies.

Many Asian countries (such as China, Singapore, Korea, Thailand, Malaysia, Indonesia, India, and the Philippines) will experience a significant aging of their populations during the next several decades. This paper explores how these aging Asian countries are addressing and anticipating the challenges of an aging society. It suggests that Asia's preparedness for an aging population is decidedly mixed. While growth policies have been successful, much work is still needed in many countries to establish an adequate and farsighted policy framework in the areas of pensions, health insurance, and labor market policies.

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hongkong

IBOR Rates in Asia

Inter Bank Offered Rates (Ibor Rates), Benchmark Rates, and Date Last Changed.

Inter Bank Offered Rates (Ibor Rates), Benchmark Rates, and Date Last Changed.

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hongkong

HK's Financial Secretary Promises a Prudent Last Budget

As Hong Kong's economy booms, Finanacial Secretary Henry Tang Ying-yen, syas he will draft a prudent budget in FY'07. Tnag belives that Hong Kong must prepare for potential challenges and should have a balanced approach in doing so.

As Hong Kong's economy booms, Finanacial Secretary Henry Tang Ying-yen, syas he will draft a prudent budget in FY'07. Tnag belives that Hong Kong must prepare for potential challenges and should have a balanced approach in doing so.

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hongkong

Economic Integration in Asia: Bilateral Free Trade Agreements Versus Asian Single Market

Institutional regionalisation has come late to East Asia compared to Europe, but its pace has accelerated since the mid-1990s. Many agreements, including bilateral ones such as those signed between Singapore and Japan, and plurilateral ones such as those between ASEAN countries (e.g. ASEAN Free Trade Agreement (AFTA below)), cover an ever-increasing portion of the East Asian region, including China. We first analyse regional economic integration in East Asia, questioning the notion of open regionalism. In a second part we explore the possible consequences of different kind of agreements. We rely on the CEPII's CGE model (MIRAGE), adapted to the specificity of Asia's economic integration. As regards the geometry of the agreement(s), two sets of scenarios are considered, following a Hub-and-Spoke versus a Full-FTA assumption, with or without sensitive products inclusion.
Among the main results, we find that Asian countries do have diverging interests. While ASEAN maximises its benefit in the bilateral scenario including agricultural liberalisation (SC1); Japan and Korea are the best in the Asia global agreement scenario, including sensitive products for Japan (SC2) but excluding these products for Korea (SC 4). For EU- 25, it appears that increased competition within Asia has a negative impact on its goods exports but positive impact on its service exportations. The main losers are the close countries and primary goods producers such as Taiwan, South Asia (excluding India), North of Africa, South America.

Institutional regionalisation has come late to East Asia compared to Europe, but its pace has accelerated since the mid-1990s. Many agreements, including bilateral ones such as those signed between Singapore and Japan, and plurilateral ones such as those between ASEAN countries (e.g. ASEAN Free Trade Agreement (AFTA below)), cover an ever-increasing portion of the East Asian region, including China. We first analyse regional economic integration in East Asia, questioning the notion of open regionalism. In a second part we explore the possible consequences of different kind of agreements. We rely on the CEPII's CGE model (MIRAGE), adapted to the specificity of Asia's economic integration. As regards the geometry of the agreement(s), two sets of scenarios are considered, following a Hub-and-Spoke versus a Full-FTA assumption, with or without sensitive products inclusion.
Among the main results, we find that Asian countries do have diverging interests. While ASEAN maximises its benefit in the bilateral scenario including agricultural liberalisation (SC1); Japan and Korea are the best in the Asia global agreement scenario, including sensitive products for Japan (SC2) but excluding these products for Korea (SC 4). For EU- 25, it appears that increased competition within Asia has a negative impact on its goods exports but positive impact on its service exportations. The main losers are the close countries and primary goods producers such as Taiwan, South Asia (excluding India), North of Africa, South America.

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hongkong

An Economic Analysis of the Pre- and Post-1997 Hong Kong

Between 1978 and 1997, Hong Kong experienced various new economic opportunities. Mainland China's economic reform policy initiated by the late Deng Xiaoping provided Hong Kong with a new role in trade and investment. By the early 1990s, Hong Kong has turned itself into a full fetched service economy, with over eighty percent of GDP derived from the service industries. Hong Kong is undergoing a process of economic integration with Mainland China. Economic stability and prosperity was under severe challenge soon after the hand over of sovereignty. The fall in property price in late 1997 triggered the burst of the economic bubble. The outbreak of the Asian financial crisis that began on July 2, 1997 led to massive withdrawal of funds in the first half of 1998. The Hong Kong economy experienced setbacks, and deflation coexisted with high unemployment and budget deficit in 1998.

Between 1978 and 1997, Hong Kong experienced various new economic opportunities. Mainland China's economic reform policy initiated by the late Deng Xiaoping provided Hong Kong with a new role in trade and investment. By the early 1990s, Hong Kong has turned itself into a full fetched service economy, with over eighty percent of GDP derived from the service industries. Hong Kong is undergoing a process of economic integration with Mainland China. Economic stability and prosperity was under severe challenge soon after the hand over of sovereignty. The fall in property price in late 1997 triggered the burst of the economic bubble. The outbreak of the Asian financial crisis that began on July 2, 1997 led to massive withdrawal of funds in the first half of 1998. The Hong Kong economy experienced setbacks, and deflation coexisted with high unemployment and budget deficit in 1998.

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hongkong

Hong Kong Stock Market Hits Record High

Hong Kong stock market's Hang Seng index reached a record closing high of 19265.32 on Nov. 23, with The H-shares Index reaching a record closing high of 9430.28 on Wednesday (Dec. 20), according to the statement of Hong Kong Exchanges and Clearing Limited (HKEx). The total market capitalization of Hong Kong stock market had exceeded 12 trillion HK dollars, surpassing that of Germany's and ranking Hong Kong stock market the seventh largest in the world.

Hong Kong stock market's Hang Seng index reached a record closing high of 19265.32 on Nov. 23, with The H-shares Index reaching a record closing high of 9430.28 on Wednesday (Dec. 20), according to the statement of Hong Kong Exchanges and Clearing Limited (HKEx). The total market capitalization of Hong Kong stock market had exceeded 12 trillion HK dollars, surpassing that of Germany's and ranking Hong Kong stock market the seventh largest in the world.

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hongkong

Choice Of Exchange Rate Regime: Currency Board (Hong Kong) Or Monitoring Band (Singapore)?

Following the East Asian crisis, some prominent economists have advocated that small and open economies in Asia adopt an irrevocably fixed regime. Such a hard peg, it is argued, signals greater commitment to rule out arbitrary exchange rate adjustments as well as the authorities' willingness to subordinate domestic policy objectives such as output and employment growth to the maintenance of the pegged exchange rate. But is this a reasonable position to adopt? In order to answer this question, we consider
and contrast the experiences of Hong Kong and Singapore. While both of these economies share a number of similarities, the former operates a US dollar-linked currency board arrangement and the latter maintains an adjustable peg in the form of a monitoring band arrangement with the central parity based on an undisclosed trade-weighted currency basket.

Following the East Asian crisis, some prominent economists have advocated that small and open economies in Asia adopt an irrevocably fixed regime. Such a hard peg, it is argued, signals greater commitment to rule out arbitrary exchange rate adjustments as well as the authorities' willingness to subordinate domestic policy objectives such as output and employment growth to the maintenance of the pegged exchange rate. But is this a reasonable position to adopt? In order to answer this question, we consider
and contrast the experiences of Hong Kong and Singapore. While both of these economies share a number of similarities, the former operates a US dollar-linked currency board arrangement and the latter maintains an adjustable peg in the form of a monitoring band arrangement with the central parity based on an undisclosed trade-weighted currency basket.

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hongkong

Hong Kong, Singapore And The East Asian Crisis: A First Look At The Importance Of Trade Spillovers

The literature on the East Asian crisis has concentrated almost exclusively on the five crisis-hit econmoies of Indonesia, Korea, Malaysia, Thailand and the Philippines (Asia-5). Relatvely scant attention has been paid to Hond Kong and Singapore, both of which also suffered from contagious fallout from the crisis despite being well acknowledged as having relatively sound finacial and economical fundamentals.This paper examines the extent to wihich trade spillovers, both direct and indirect, have been impprtant in transmitting the regional downturn from the Asia-5 economies to Kong Kong and Singapore.

The literature on the East Asian crisis has concentrated almost exclusively on the five crisis-hit econmoies of Indonesia, Korea, Malaysia, Thailand and the Philippines (Asia-5). Relatvely scant attention has been paid to Hond Kong and Singapore, both of which also suffered from contagious fallout from the crisis despite being well acknowledged as having relatively sound finacial and economical fundamentals.This paper examines the extent to wihich trade spillovers, both direct and indirect, have been impprtant in transmitting the regional downturn from the Asia-5 economies to Kong Kong and Singapore.

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hongkong

Global Imbalances and Emerging Markets

There has been a massive increase in foreign currency reserves held by a group of ten East Asian economies since the 1997-98 crises. At the end of March 2006, the reserves of this group stood at $2.6 trillion, accounting for 57 percent of total global reserves.

There has been a massive increase in foreign currency reserves held by a group of ten East Asian economies since the 1997-98 crises. At the end of March 2006, the reserves of this group stood at $2.6 trillion, accounting for 57 percent of total global reserves.

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hongkong

Monetary Cooperation in East Asia: How Far Can East Asian Countries Go?

The paper intends to discuss monetary cooperation in East Asia by answering the following three questions: (1) Do the member countries of the Chiang Mai Initiative (CMI) have potentials to form an Optimal Currency Area (OCA)? (2) What are the obstacles for establishing an institutionalized monetary regime from practical point of view? (3) What is the timeline for forming a monetary union in the region?

The paper intends to discuss monetary cooperation in East Asia by answering the following three questions: (1) Do the member countries of the Chiang Mai Initiative (CMI) have potentials to form an Optimal Currency Area (OCA)? (2) What are the obstacles for establishing an institutionalized monetary regime from practical point of view? (3) What is the timeline for forming a monetary union in the region?

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hongkong

Chinese Perspective of East Asian Exchange Rate Coordination

The paper discussed the Necessity for East Asia and China to Participate and Promote The Regional Exchange Rate Coordination, the possible pace of the exchange rate coordination in East Asia and how to start this process.

The paper discussed the Necessity for East Asia and China to Participate and Promote The Regional Exchange Rate Coordination, the possible pace of the exchange rate coordination in East Asia and how to start this process.

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hongkong

Manila Postpones ASEAN Summit to January

An official announcement released by Ambassador Marciano Paynor, head of the Philippine organizing committee, said that the 12th Association of Southeast Asian Nations (ASEAN) summit, scheduled next week in Cebu, has been postponed to January due to a strong storm heading the island. The ambassador also denied reports that the postponement was made due to possible terrorist attacks at the site of the summit.

An official announcement released by Ambassador Marciano Paynor, head of the Philippine organizing committee, said that the 12th Association of Southeast Asian Nations (ASEAN) summit, scheduled next week in Cebu, has been postponed to January due to a strong storm heading the island. The ambassador also denied reports that the postponement was made due to possible terrorist attacks at the site of the summit.

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hongkong

ADB: Economic Growth in East Asia to Remain Strong in 2007

Asian Development Bank (ADB) predicted that East Asia's economic growth will continue to be strong next year after the expected robust performance of East Asian economies this year. However, the bank warned that the danger of financial market turbulence which could affect Asia is also increasing. Also, ADB suggested that there could be a slight decrease on the demand for East Asia's exports, due to an expected slowdown in growth in the US and euro area. Coupled with strong domestic consumption, this should maintain economic expansion across the East Asian region, the lender bank argued.

Asian Development Bank (ADB) predicted that East Asia's economic growth will continue to be strong next year after the expected robust performance of East Asian economies this year. However, the bank warned that the danger of financial market turbulence which could affect Asia is also increasing. Also, ADB suggested that there could be a slight decrease on the demand for East Asia's exports, due to an expected slowdown in growth in the US and euro area. Coupled with strong domestic consumption, this should maintain economic expansion across the East Asian region, the lender bank argued.

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hongkong

US and Asian Economies Differ Over Free Trade Bloc Process

The United States and Asian economies are at odds on how to implement a plan to set up a Asia-Pacific free trade area. The Asian economies want to start a free trade area among themselves before considering a free trade area for the Asia-Pacific. However, the US government wants to implement these plans simulataneously. Washington is pushing a prompt implementation of the Asia-Pacific plan because it would jolt non-Apec members, such as Brazil and India, to restart talks for a new global trace pact.

The United States and Asian economies are at odds on how to implement a plan to set up a Asia-Pacific free trade area. The Asian economies want to start a free trade area among themselves before considering a free trade area for the Asia-Pacific. However, the US government wants to implement these plans simulataneously. Washington is pushing a prompt implementation of the Asia-Pacific plan because it would jolt non-Apec members, such as Brazil and India, to restart talks for a new global trace pact.

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hongkong

China Cannot Rule Out Further Interest Rate Hikes

China cannot rule out further interest rate hikes in the coming months, state press reported yesterday, citing a leading central bank advisor. The possibility of rate hikes cannot be ruled out given the need to maintain curbs on investment and credit growth, the 21st Century Business Herald cited central bank advisor Fan Gang as saying. Fan added that the pressure for rate hikes was not strong, with inflation at just over 1 per cent compared with 4-5 per cent in 2004 and 6 per cent in early 2005, the paper said.

China cannot rule out further interest rate hikes in the coming months, state press reported yesterday, citing a leading central bank advisor. The possibility of rate hikes cannot be ruled out given the need to maintain curbs on investment and credit growth, the 21st Century Business Herald cited central bank advisor Fan Gang as saying. Fan added that the pressure for rate hikes was not strong, with inflation at just over 1 per cent compared with 4-5 per cent in 2004 and 6 per cent in early 2005, the paper said.

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hongkong

China Changes Regulations for Foreign-Funded Banks

New regulations taking effect December 11th remove many restrictions on RMB and Foreign Currency transactions for foreign-owned and joint-venture banks. Chinese branches of foreign based banks, however, will be unable to perform RMB transaction services for clients with smaller accounts and clients which have not yet been approved by the banking regulatory body. Also, new minimum registered capital and operating fund restrictions shield smaller banks from entering the Chinese banking sector.

New regulations taking effect December 11th remove many restrictions on RMB and Foreign Currency transactions for foreign-owned and joint-venture banks. Chinese branches of foreign based banks, however, will be unable to perform RMB transaction services for clients with smaller accounts and clients which have not yet been approved by the banking regulatory body. Also, new minimum registered capital and operating fund restrictions shield smaller banks from entering the Chinese banking sector.

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hongkong

APEC Shelves Free Trade Zone Plans

The Asian Pacific Economic Co-operation forum has shelved plans to create a "vast free trade area" that would aggregate the numerous bi-lateral and regional tarde agreements in the region. The ambitious proposal lost mometum to various side deals at the forum. APEC has shifted its focus to resurrecting talks on the Doha round of the WTO.

The Asian Pacific Economic Co-operation forum has shelved plans to create a "vast free trade area" that would aggregate the numerous bi-lateral and regional tarde agreements in the region. The ambitious proposal lost mometum to various side deals at the forum. APEC has shifted its focus to resurrecting talks on the Doha round of the WTO.

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hongkong

Managing Business Risks When Investing In China

Investing in China's rapidly developing economy can be a risky business move. Promises of huge payout underpinned by reports of double digit GDP growth often lead uninformed investors down a dangerous path. This month the China Business Review offers tips on how to mitigate the legal, financial, political, and environmental risks investors encounter while investing in China's booming economy.

Investing in China's rapidly developing economy can be a risky business move. Promises of huge payout underpinned by reports of double digit GDP growth often lead uninformed investors down a dangerous path. This month the China Business Review offers tips on how to mitigate the legal, financial, political, and environmental risks investors encounter while investing in China's booming economy.

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hongkong

Fresh High for Yuan on Central Bank Remarks

The yuan hits record high for its third day in a row. Remarks by China's central bank about diversifying its foreign exchange reservesmay have led to the yuan's rise and to a depressed dollar that remains low against the euro. Economist suggest the yuan is still undervalued and an appreciation could reduce China's external imbalances.

The yuan hits record high for its third day in a row. Remarks by China's central bank about diversifying its foreign exchange reservesmay have led to the yuan's rise and to a depressed dollar that remains low against the euro. Economist suggest the yuan is still undervalued and an appreciation could reduce China's external imbalances.

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hongkong

Warning of "Rate Shock" Scenario

China's State Council's top advisor warns of a Hong Kong "interest rate shock". The recent influx of foreign investment based on speculation about the yuan's revaluation is said to be the cause of the potential interest rate instability.

China's State Council's top advisor warns of a Hong Kong "interest rate shock". The recent influx of foreign investment based on speculation about the yuan's revaluation is said to be the cause of the potential interest rate instability.

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hongkong

Asian Market: Potential Risks Ahead

Although Asian stock markets have performed very well this past year, analysts foresee a risk ahead. The next 12 months are said to prove extremely volatile for equity markets in Asia, as regional instability increases.

Although Asian stock markets have performed very well this past year, analysts foresee a risk ahead. The next 12 months are said to prove extremely volatile for equity markets in Asia, as regional instability increases.

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hongkong

Asian Markets End Broadly Higher

Most Asian markets ended slightly higher Wednesday, particularly in Singapore and Shanghai's exchanges. Unfortunately the same news can not be shared for Japan's Nikkei, which edged 0.2% lower to 16,375.26.

Most Asian markets ended slightly higher Wednesday, particularly in Singapore and Shanghai's exchanges. Unfortunately the same news can not be shared for Japan's Nikkei, which edged 0.2% lower to 16,375.26.

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hongkong

China Bank Market Debut

The Industrial and Commercial Bank of China made a dual market debut this week, opening in both China and Hong Kong. The stock in Hong Kong rose 15%, but the hopes up the IPO boosting the HK market today were deflated as the market went down. However, this was the largest IPO ever, reaching a record $19 billion US dollars.

The Industrial and Commercial Bank of China made a dual market debut this week, opening in both China and Hong Kong. The stock in Hong Kong rose 15%, but the hopes up the IPO boosting the HK market today were deflated as the market went down. However, this was the largest IPO ever, reaching a record $19 billion US dollars.

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hongkong

Oasis Airline Finally Leaves London Successfully

Oasis, Hong Kong's first budget airline, finally debuts its flight from London. Although the flight was two hours late the crew had few complaints, after having been delayed by more than a day.

Oasis, Hong Kong's first budget airline, finally debuts its flight from London. Although the flight was two hours late the crew had few complaints, after having been delayed by more than a day.

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hongkong

HK's Budget Airline Forced to Cancel First Flight

Hong Kong's first budget airline, Oasis, was unable to make it off the ground yesterday for its first scheduled flight. After being delayed by Russia's refusal to fly over their territory, the passengers were forced to disembark the plane. Unlike many other low-cost carriers, Oasis offers food and economy class tickets for as low as US$200 including tax. They also intend to concentrate on long-haul routes. Oasis plans to fly within London for a few months and then move on to other destinations including the US and Europe.

Hong Kong's first budget airline, Oasis, was unable to make it off the ground yesterday for its first scheduled flight. After being delayed by Russia's refusal to fly over their territory, the passengers were forced to disembark the plane. Unlike many other low-cost carriers, Oasis offers food and economy class tickets for as low as US$200 including tax. They also intend to concentrate on long-haul routes. Oasis plans to fly within London for a few months and then move on to other destinations including the US and Europe.

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hongkong

Hong Kong Market Hits 6 Year High

While Asian markets ended mixed Tuesday, the Hong Kong Market hit a 6 year high. The bluechip Hang Seng Index rose 63.56 points to close the day at 18,153.41. However, experts say that the Hong Kong Market is overvalued and due for correction.

While Asian markets ended mixed Tuesday, the Hong Kong Market hit a 6 year high. The bluechip Hang Seng Index rose 63.56 points to close the day at 18,153.41. However, experts say that the Hong Kong Market is overvalued and due for correction.

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hongkong

Index Makes 18,000 Quietly

The Hang Seng Index closed just above 18,000 Monday for the first time in over six years.

The Hang Seng Index closed just above 18,000 Monday for the first time in over six years.

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hongkong

Profit-taking Weighs on Nikkei; South Korea Lower

Asian stocks finished mixed Wednesday, with Japan's Nikkei sinking to a multi-month low.

Asian stocks finished mixed Wednesday, with Japan's Nikkei sinking to a multi-month low.

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hongkong

China's Currency Update

As the RMB Yuan slowly appreciates under watchful eye of the PRC Governement the Hong Kong Dollar has remain pegged at 7.75 to 7.85 HKD/US$. The Yuan, now floating to below 8 yuan/US$, may soon meet the value of the Hong Kong Dollar. TheStreet.com talks about what the PRC will do as the Yuan surpassed the Hong Kong Dollar in value. 

As the RMB Yuan slowly appreciates under watchful eye of the PRC Governement the Hong Kong Dollar has remain pegged at 7.75 to 7.85 HKD/US$. The Yuan, now floating to below 8 yuan/US$, may soon meet the value of the Hong Kong Dollar. TheStreet.com talks about what the PRC will do as the Yuan surpassed the Hong Kong Dollar in value. 

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hongkong

Hong Kong Retail Sales Climb at Fastest Pace in Four Months

Retail sales in Hong Kong during the month of August grew the fastest pace in four months as more tourists visited the region, and local unemployment rates fell to the lowest in five years. Retail sales rose 8.3% from a year earlier, following a gain of 7.1% in July. Hong Kong consumers are buying more, riding on confidence in booming stocks and higher wages. Tourist arrivals also jumped 11.2% in the month of August, compared to a year earlier. Such positive performance has been reflected in the benchmark Hang Seng Index which hit a six year high on August 16th.

Retail sales in Hong Kong during the month of August grew the fastest pace in four months as more tourists visited the region, and local unemployment rates fell to the lowest in five years. Retail sales rose 8.3% from a year earlier, following a gain of 7.1% in July. Hong Kong consumers are buying more, riding on confidence in booming stocks and higher wages. Tourist arrivals also jumped 11.2% in the month of August, compared to a year earlier. Such positive performance has been reflected in the benchmark Hang Seng Index which hit a six year high on August 16th.

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hongkong

Hong Kong Shares Rebound from Tuesday

Hong Kong shares rebounded Wednesday, as falling U.S. bond yields increased demand for regional banking and property companies.  The Hang Seng index rose 1.2% which recovers most of Tuesday's 1.4% loss.  Banking and property companies led the day's gains, as funds continue to flow into the equities market.

Hong Kong shares rebounded Wednesday, as falling U.S. bond yields increased demand for regional banking and property companies.  The Hang Seng index rose 1.2% which recovers most of Tuesday's 1.4% loss.  Banking and property companies led the day's gains, as funds continue to flow into the equities market.

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hongkong

Oil Prices Fall Below $60 in Asia

Crude oil fell to below $60 a barrel this morning in the Asian markets. Oil prices have dropped nearly 25% since mid July. Experts say this is still a strong price, but some say its expected to rise before the end of the year.

Crude oil fell to below $60 a barrel this morning in the Asian markets. Oil prices have dropped nearly 25% since mid July. Experts say this is still a strong price, but some say its expected to rise before the end of the year.

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hongkong

China Merchant Bank Shares Soar Nearly 30% in Market Debut

Debuting in the Hong Kong market today, the China Merchant Bank gained nearly 30%, increasing from HK$8.44 to HK$11.14. This is the biggest first day gain of any of the Chinese banks in the Hong Kong market. China Merchant Bank is the 6th largest lender in China and has been gaining momentum by targeting niche markets and offering higher-margin products such as dual- currency credit cards.

Debuting in the Hong Kong market today, the China Merchant Bank gained nearly 30%, increasing from HK$8.44 to HK$11.14. This is the biggest first day gain of any of the Chinese banks in the Hong Kong market. China Merchant Bank is the 6th largest lender in China and has been gaining momentum by targeting niche markets and offering higher-margin products such as dual- currency credit cards.

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hongkong

Employment Population Reaches New High

Driven by continuous economic expansion, the labor forced reached a record high of 3.6 million. Fueled by sectors like construction, business services, and community services, Hong Kong reached its lowest unemployment rate in 5 years. In hopes to keep unemployment low, Hong Kong will look to economic growth in the corporate sector to keep supplying jobs.

Driven by continuous economic expansion, the labor forced reached a record high of 3.6 million. Fueled by sectors like construction, business services, and community services, Hong Kong reached its lowest unemployment rate in 5 years. In hopes to keep unemployment low, Hong Kong will look to economic growth in the corporate sector to keep supplying jobs.

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hongkong

Most Asian Markets Rise as Lower Oil Prices Boost Shares in Tokyo

Indices in Hong Kong and Japan rebounded from recent loss-streaks as a fall in crude oil prices has alleviated market tension, boosting investor confidence and increasing activity.  Most east-Asian exchanges shared similar change of pace while trade in Southeast Asia remained relatively flat or declined slightly.

Indices in Hong Kong and Japan rebounded from recent loss-streaks as a fall in crude oil prices has alleviated market tension, boosting investor confidence and increasing activity.  Most east-Asian exchanges shared similar change of pace while trade in Southeast Asia remained relatively flat or declined slightly.

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hongkong

ASIA DEVELOPMENT OUTLOOK 2007

Despite challenges from rising oil costs, commodity costs, and interest rates, the Asia Development Bank expects 7.7% growth for 2007.

Despite challenges from rising oil costs, commodity costs, and interest rates, the Asia Development Bank expects 7.7% growth for 2007.

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hongkong

"Financial Watchdog" in the Works in China

The Government of the People's Republic of China is considering the establishemnt of a high-tech regulatory body to monitor banking and finance industries.  This would be a crucial step in developing transparency which would attract further investment both domestically and outside of China.  The decision, however, is hampered by beauricratic infighting among self-interested officials.

The Government of the People's Republic of China is considering the establishemnt of a high-tech regulatory body to monitor banking and finance industries.  This would be a crucial step in developing transparency which would attract further investment both domestically and outside of China.  The decision, however, is hampered by beauricratic infighting among self-interested officials.

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hongkong

China Brokers to Begin Trading Futures Abroad

Six Chinese brokers will soon become the first to legally conduct business in futures and options on commodities, as well as financial products.  It is the first time that Chinese brokers have been allowed to conduct such business outside China, and it promises to boost the presence of Chinese money in derivatives exchanges worldwide.  Branches are already being set up in Hong Kong and Shanghai to prepare for the oncoming demand for Chinese investment in these global markets.

Six Chinese brokers will soon become the first to legally conduct business in futures and options on commodities, as well as financial products.  It is the first time that Chinese brokers have been allowed to conduct such business outside China, and it promises to boost the presence of Chinese money in derivatives exchanges worldwide.  Branches are already being set up in Hong Kong and Shanghai to prepare for the oncoming demand for Chinese investment in these global markets.

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hongkong

Las Vegas Mogul Opens Wynn Macau Hotel & Casino

The Wynn Macau, a US$1.2 billion dollar mega-luxury casino opens today in what experts expect to become the gambling capital of the world. Macau has already surpassed Las Vegas, recieving 10 million visitors each year from mainland China alone.

The Wynn Macau, a US$1.2 billion dollar mega-luxury casino opens today in what experts expect to become the gambling capital of the world. Macau has already surpassed Las Vegas, recieving 10 million visitors each year from mainland China alone.

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hongkong

Asian Stocks Up During U.S. Trading

Asian stocks rose due to heavy US trading for third day in a row.  Precious Metals also rallied.

Asian stocks rose due to heavy US trading for third day in a row.  Precious Metals also rallied.

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hongkong

Tycoons Lining Up for China Merchants Bank Float

China Merchants Bank has attracted interest from some Hong Kong tycoons for its planned HK$19 billion initial public offering in the SAR, with sources saying the institutional tranche has been 12 times subscribed.

China Merchants Bank has attracted interest from some Hong Kong tycoons for its planned HK$19 billion initial public offering in the SAR, with sources saying the institutional tranche has been 12 times subscribed.

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hongkong

Henderson Likely to Face $800m Premium for Site

Henderson Land Development could be faced with paying a land premium of nearly HK$800 million for the right to build residential flats at a North Point site it bought last year.

Henderson Land Development could be faced with paying a land premium of nearly HK$800 million for the right to build residential flats at a North Point site it bought last year.

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hongkong

Hang Seng Dips Despite Property Lift

Hong Kong stocks Tuesday consolidated recent gains that had lifted the market to fresh six-year peaks, but Agile Property and other mainland real estate issues continued to rise, a day after the yuan set a post-revaluation high versus the US dollar.

Hong Kong stocks Tuesday consolidated recent gains that had lifted the market to fresh six-year peaks, but Agile Property and other mainland real estate issues continued to rise, a day after the yuan set a post-revaluation high versus the US dollar.

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editor picks 

Other Important News In Hongkong


Hong Kong's Stimulus Has Been Effective

In a recent visit, the IMF has reported positive changes in Hong Kong's financial system assuring that measures taken by the government have been effective and that Hong Kong's banking system remains, stable, very liquid and well capitalized.

The IMF accredited Hong Kong's financial resilience to a strong monitoring system. The government has placed significant effort on the development of its infrastructure driven stimulus allowing for a forecasted 2% economic growth for Hong Kong this year.

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Hong Kong: CNPC Unit Eyes More Mainland Gas Projects

CNPC Hong Kong Ltd has announced plans to acquire further city-gas distribution projects from China National Petroleum Corp., the country's biggest petroleum producer.

CNPC Hong Kong Ltd has announced plans to acquire further city-gas distribution projects from China National Petroleum Corp., the country's biggest petroleum producer. CNPC is already moving towards the completion of the acquisition of a 97.26% stake in Xinjiang Xinjie Co. CNPC hopes that the acquisitions will benefit the governments goal to double the use of cleaner-burning fuel by the end of 2010. Moreover, CNPC hopes that it will gain from potential increases in China's fuel prices in the future.

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Hong Kong Falls Into Recession

Hong Kong fell into recession in the third quarter as the global economic slowdown continues to impact its economy.

Hong Kong fell into recession in the third quarter as the global economic slowdown continues to impact its economy. Hong Kong's GDP fell 0.5% from the previous quarter and the full year GDP growth is now expected to be between 3-3.5%, much lower than the originally forecast of 4-5%.

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Revival may wait until after Games as stocks plunge

Hong Kong stocks plunged 2.1 percent yesterday to hit a new one-year low, as the recent wave of selling spread to Hong Kong banks and property plays.

First Shanghai Securities strategist Linus Yip Sheung-chi said The Hang Seng Index may fall below 20,000 in the short term after dropping 446.3 points to end the day at 20,484.37. "There is no buying interest in the market," said Tung Tai Securities associate director Kenny Tang Sing-hing, adding that the market may not see a revival until after the Olympics.

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Hong Kong Metals export values up 15.9%

The Census & Statistics Department of Hong Kong reported that the export value of basic metals and fabricated metal products rose by 15.9 percent and also chemicals and chemical products rose 6.4 percent in the second quarter.

According to the Census & Statistics Department of Hong Kong, the domestic export value of basic metals and fabricated metal products rose 15.9 percent and chemicals and chemical products rose 6.4 percent. However,the domestic export value of machinery, equipment, apparatus, parts and components fell 14.1 percent on a year earlier and textiles dropped 35.7 percent in this year. For consumer electrical and electronic products, the domestic export value dipped 15.5%, to $2.9 billion, while wearing apparel fell 26.7%, to $2.7 billion.

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HK's credit ratings upgraded

Hong Kong's flexible economy and sound banking sector expected to maintain a 5% economic growth trend after the upgrade by credit-rating agency, Standard & Poor's.

Hong Kong's foreign currency sovereign rating was recently upgraded by credit-rating agency, Standard & Poor's. The upgrade is linked to Standard & Poor's advancement of mainland China's foreign currency rating from "AA" to "AA+" which could help to integrate Hong Kong's economy and further improvement in the Mainland's credit strengths.

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Hong Kong Oil prices reverse sharply as dollar strengthens UPDATE

Crude Oil price exceeds $120 per barrel.

OPEC President Mr.Chakib Khelil said " the crude prices above $120 a barrel because of the US strong currency and tensions on Iran" Khelil also added, if the dollar continues to strengthen and the political situation in Iran improves, then the long-term prices will be about 78 dollars.

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EFTA , Hong Kong keen on FTA with Malaysia

EFTA and Hong Kong has suggested Malaysia to form FTA blog.

The EFTA which consists of four countries, Switzerland, Norway, Iceland and Lichtenstein has suggested Malaysia to form FTA blog. According to Minister of International Trade and Industry Tan Sri Muhyiddin Yassi,Hong Kong and Switzerland have an eye on new markets in financial services and the high-precision technology industry In Malaysia.

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Hong Kong June exports down 0.6 percent year-on-year UPDATE

Hong Kong exports fall for the first time in 2 years

On Thursday, Hong Kong's government said export sales of goods both to the U.S. and China fell far short of expectations. Hong Kong's exports fell 0.6 percent in June after a 10.3 percent annual increase in last month. Sale of office machines fell 15 percent, and electrical machinery and appliances, which both are Hong Kong's top exports, fell 7.9 percent.Telecommunication gadgets fell 6.5 percent.

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$11b on Table to Ease Hong Kong Inflation Pain

To offset the effects of rising inflation in Hong Kong, Chief Executive Donald Tsang Yamkuen announced an HK$11 billion inflation relief package.

To offset the effects of rising inflation in Hong Kong, Chief Executive Donald Tsang Yamkuen announced an HK$11 billion inflation relief package. Tsang's ten-point plan includes a student subsidy and assistance for lower income groups to buy food. The revaluation of the Hong Kong dollar was also discussed. However, even if the Hong Kong dollar appreciated 10%, inflation would not be significantly lowered.

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