China-US phase one deal could give Hong Kong’s port a much-needed boost

Aerial view of the Hong Kong Container Terminals and the Stonecutters Bridge with the back ground of the Hong Kong island. We’ll be able to plan better and we’ll be able to bring more volume back to Hong Kong.” The Port of Hong Kong was the world’s busiest container port by volume in 2004, according to the Hong Kong Port and Maritime Board. According to the World Shipping Council, Hong Kong Port was the seventh largest in the world in 2018. “There is very little exported from here that is manufa


Aerial view of the Hong Kong Container Terminals and the Stonecutters Bridge with the back ground of the Hong Kong island.
We’ll be able to plan better and we’ll be able to bring more volume back to Hong Kong.”
The Port of Hong Kong was the world’s busiest container port by volume in 2004, according to the Hong Kong Port and Maritime Board.
According to the World Shipping Council, Hong Kong Port was the seventh largest in the world in 2018.
“There is very little exported from here that is manufa
China-US phase one deal could give Hong Kong’s port a much-needed boost Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-15  Authors: grace shao
Keywords: news, cnbc, companies, chinaus, muchneeded, boost, hong, world, according, port, levesque, kong, deal, phase, business, container, china, kongs


China-US phase one deal could give Hong Kong's port a much-needed boost

Aerial view of the Hong Kong Container Terminals and the Stonecutters Bridge with the back ground of the Hong Kong island. Geovien So | SOPA Images | LightRocket | Getty Images

The port of Hong Kong, once the world’s busiest, could get a boost after the phase one trade deal between the U.S. and China is signed, according to the managing director of Modern Terminals. The ambiguity brought on by the trade dispute between China and the U.S. in the last two years has created a lot of uncertainty for businesses, particularly for the port business, said Peter Levesque of Modern Terminals — the second largest container terminal operator in Hong Kong. He added that he hopes both sides can get this initial deal implemented. “It’s almost impossible to put a game plan together when the goal post is moving almost daily,” Levesque told CNBC’s “Squawk Box” on Wednesday. “So we hope that through phase one agreement that we’ll be able to get a lot more certainty around what the future looks like. We’ll be able to plan better and we’ll be able to bring more volume back to Hong Kong.”

Shanghai overtakes Hong Kong as busiest port

Levesque, who has been a resident of Hong Kong for 25 years, said he witnessed the the territory’s handover to China in 1997, as well as China’s rapid economic growth. The Port of Hong Kong was the world’s busiest container port by volume in 2004, according to the Hong Kong Port and Maritime Board. But it has since been overtaken by others in the region — a worrying trend as the port business is one of the key drivers of Hong Kong’s economy. According to the World Shipping Council, Hong Kong Port was the seventh largest in the world in 2018. Four mainland Chinese ports — Shanghai, Ningbo-Zhousan, Shenzhen, Guangzhou — were among the top 5 world container ports by volume in the world that year.

Hopefully both sides can step back … and hopefully we can get there without having any miscommunications and misunderstandings that set us back again. Peter Levesque managing director of Modern Terminals

Hong Kong’s port activities are mostly made up of transshipment businesses, and only about 14% to 15% of that business is trans-pacific to the United States, according to Levesque. “There is very little exported from here that is manufactured in Hong Kong. We’re taking business, we’re moving shipments through China, through Hong Kong to the rest of the world. And then in the opposite direction, through Hong Kong back into China,” he said. Hong Kong’s economy entered a technical recession in the third quarter of 2019, and contracted by 3.2% quarter-on-quarter in real terms, after declining by 0.5% in the preceding quarter. “When China and the United States aren’t agreeing with each other, it actually affects all markets. And that’s just something we hope to rebound with the implementation of phase one,” Levesque added.

Impact of phase one trade deal

“China agreeing to buy another $200 billion worth of goods and services from the United States, and I think more importantly, addressing the issues around IP (intellectual property) protection and forced technology transfer and opening up markets more for financial industry and the insurance industry — those are major positive steps. And the U.S. side then coming back and lowering tariffs,” Levesque said. “Hopefully both sides can step back and take a deep breath and get this phase one into implementation and hopefully we can get there without having any miscommunications and misunderstandings that set us back again,” he said.


Company: cnbc, Activity: cnbc, Date: 2020-01-15  Authors: grace shao
Keywords: news, cnbc, companies, chinaus, muchneeded, boost, hong, world, according, port, levesque, kong, deal, phase, business, container, china, kongs


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How murder, kidnappings and miscalculation set off Hong Kong’s revolt

Carrie Lam, Hong Kong’s chief executive, speaks during a news conference in July 2019 in Hong Kong, China. While on a trip to Taiwan, a Hong Kong man strangled his Hong Kong girlfriend, then returned home and confessed. Xi’s crackdown spilled over dramatically into the streets of Hong Kong in the early hours of January 27, 2017. When she began studying at the University of Hong Kong, Lam intended to be a social worker. Zhang took a “hardline” position, they said, telling the visitors it was urge


Carrie Lam, Hong Kong’s chief executive, speaks during a news conference in July 2019 in Hong Kong, China.
While on a trip to Taiwan, a Hong Kong man strangled his Hong Kong girlfriend, then returned home and confessed.
Xi’s crackdown spilled over dramatically into the streets of Hong Kong in the early hours of January 27, 2017.
When she began studying at the University of Hong Kong, Lam intended to be a social worker.
Zhang took a “hardline” position, they said, telling the visitors it was urge
How murder, kidnappings and miscalculation set off Hong Kong’s revolt Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-21
Keywords: news, cnbc, companies, kongs, revolt, bill, told, chinese, extradition, hong, miscalculation, kidnappings, murder, kong, officials, mainland, lee, lam, set


How murder, kidnappings and miscalculation set off Hong Kong's revolt

Carrie Lam, Hong Kong’s chief executive, speaks during a news conference in July 2019 in Hong Kong, China. Anthony Kwan | Getty Images News | Getty Images

Hong Kong leader Carrie Lam says the plan that ignited the revolt in her city was born of a straightforward quest for justice. While on a trip to Taiwan, a Hong Kong man strangled his Hong Kong girlfriend, then returned home and confessed. The city lacked an extradition pact with Taiwan, and Lam argued the only way to send him back for trial was new laws that also would enable sending criminal suspects to mainland China. She dismissed fears about the proposal – which would mean Hong Kong residents could face trial in China’s Communist Party-controlled courts – and pushed ahead. As protests raged this summer, even in private Lam kept to her story that she, not Beijing, was the prime mover, driven by “compassion” for the young victim’s devastated parents. “This is not something instructed, coerced by the central government,” she told a room of Hong Kong businesspeople at a talk in August. A Reuters examination has found a far more complicated story. Officials in Beijing first began pushing for an extradition law two decades ago. This pressure to extend the arm of Chinese law into Hong Kong’s independent British-style legal system intensified in 2017, a year before the slaying and two years before Lam’s administration announced its extradition bill. The impetus came from the Central Commission for Discipline Inspection (CCDI), the Communist Party’s powerful internal anti-corruption body, which has been spearheading Chinese President Xi Jinping’s mass anti-graft campaign. Xi’s crackdown spilled over dramatically into the streets of Hong Kong in the early hours of January 27, 2017. Among the targets of CCDI investigators at the time, two mainland Chinese officials with knowledge of the probe told Reuters, was a Chinese billionaire living in the city named Xiao Jianhua. A businessman with close ties to China’s political elite, Xiao was abducted that morning from his serviced apartment at the luxury Four Seasons Hotel. Unidentified captors whisked him out the entrance in a wheelchair with his head covered, a witness told Reuters. The sensational kidnapping, widely reported at the time, was assumed by most people in this city of 7.5 million to have been the work of Chinese agents; Beijing has never commented publicly on the matter. Frustrated at the lack of legal means to get their hands on Xiao, the two Chinese officials told Reuters, the CCDI that same year began pressing mainland officials in charge of Hong Kong affairs about the urgent need for an extradition arrangement. The CCDI wanted a less politically damaging method than kidnapping for snaring fugitive mainlanders in Hong Kong, the officials said. The two sides failed to strike a deal, but the killing in Taiwan would provide a new opening.

Pro-Beijing lawmakers in Hong Kong championed the calls for justice of the victim’s grieving parents, arranged an emotional news conference for them and pushed Lam’s administration to find a way to extradite the killer. One of China’s top officials for Hong Kong affairs pressed a senior Lam adviser in a private meeting in Beijing on the need to pass the proposal. Early in the crisis, when Lam privately proposed withdrawing the bill to quell the protests, senior Chinese officials rejected the move, only to relent months later as public fury mounted. The extradition law would have been a boost to Chinese interests, a senior mainland official told Reuters, by eliminating the need to resort to kidnappings or other controversial extrajudicial acts in Hong Kong. The move would have helped us “avoid such problems,” he said. This account of how the extradition bill was launched, promoted and ultimately unravelled is based on more than 50 interviews with mainland officials, current and former Hong Kong government officials, members of Lam’s cabinet, associates and friends of the Hong Kong leader from her days as a student activist, and current and former lawmakers and police officers. Reuters also drew on the public record of debates and correspondence regarding the bill in the city’s legislature, the Legislative Council. One finding that emerges is how out of touch the mainland leadership and the people it has hand-picked to run Hong Kong were with public sentiment. When China reclaimed Hong Kong from British rule in 1997, it guaranteed under a “one-country, two-systems” formula that the city would keep its treasured freedoms for 50 years. In effect, the promise postponed a decision on how an authoritarian one-party state would absorb a liberty-loving capitalist city. After two decades of determined grassroots political work by Beijing to win hearts and minds, some of the bill’s leading supporters admit they were stunned by the hostility of so many Hong Kong citizens to Chinese rule. “I was shocked to discover that in fact a very large proportion of us, people in Hong Kong, do not really feel at all comfortable with one-country, two-systems,” said Ronny Tong, a member of Lam’s top advisory body, the Executive Council, in an interview with Reuters. “How do you deal with this lack of confidence if not outright hatred about Beijing? How do you deal with it?”

Hong Kong’s Chief Executive Carrie Lam leaves the chamber as she is heckled by pro-democracy lawmakers at the Legislative Council in Hong Kong on October 16, 2019. Anthony Wallace | AFP | Getty Images

In a written statement to Reuters, Lam’s office said the bill “was initiated, introduced and taken forward” by her administration. The central government in Beijing “understood” why the bill had to be introduced, the statement said, and “respected the view of the Chief Executive” and “supported her all the way.” Chinese government authorities did not respond to questions for this article.

The ‘mystery’ of Carrie Lam

The city’s revolt has dealt a major setback to Xi Jinping, coming as he contends with a damaging trade war with the United States. And in a blow to China’s dreams of reunifying Taiwan with the mainland, the crisis appears to have boosted the popularity of Taiwan’s independence leaning President, Tsai Ing-wen, who faces the polls in January. For Carrie Lam, 62 years old, the miscalculation has been crushing. Her failure to grasp the public’s suspicion of the mainland’s legal system has shattered a reputation for competence built up over a 39-year career in public service. In the past she was sometimes referred to by admirers as Hong Kong’s Iron Lady, for a resolute manner reminiscent of Margaret Thatcher’s. Now, some say a combination of her willfulness and her decades at the top levels of Hong Kong’s insular public service blinded her to the political danger of the extradition bill. “The one mystery, the one puzzle is, how is it possible that Carrie Lam didn’t see the implications of such a proposal?” said Margaret Ng, a barrister who was a longtime lawmaker in the pro-democracy camp. Born into a working class family, Lam grew up in a small apartment in the suburb of Wan Chai on Hong Kong island. Like many of the city’s government elite, she is a Catholic, educated in the city’s Catholic schools, and she remains devout. At St. Francis’ Canossian School and then St. Francis’ Canossian College, she was a star student.

She was a democrat. Just like me. After government, things changed. Lee Wing-tat former Hong Kong lawmaker

In a 2013 radio interview, she revealed a glimpse of a fierce competitive streak. Lam told her interviewer of an enduring memory of her school days: The single occasion she failed to finish at the top of her class in a big exam. She said she cried. When she began studying at the University of Hong Kong, Lam intended to be a social worker. Lee Wing-tat, a former lawmaker from the pro-democracy camp, was a fellow student. He recalls Lam was an activist in those days, taking part in protests. A citation when she was awarded an honorary degree in 2013 described how Lam had campaigned for better treatment for poor Chinese fishing families from the British colonial government. She was intensely interested in welfare for the underprivileged, Lee said. And she was already a talented organizer. “You give her a job and she will deliver results,” he said. In 1979, as post-Maoist China was opening up, students from Hong Kong were invited to send a delegation to Beijing to visit elite universities, Lee said. The Democracy Wall movement was in full swing there, with big posters calling for political and social reform appearing on a long brick wall. The Hong Kong students wanted to meet prominent liberals and soak up the atmosphere, Lee said. Lam was involved in negotiating the visit with the tough Communist bureaucrats at Xinhua News Agency, then Beijing’s unofficial mission in the British colony. “They made it very difficult for her,” Lee recalls. “They didn’t want us to meet them.” The visit went ahead, and a highlight was a banquet Lam attended where a leading liberal journalist was a guest. “At that time, Carrie was not so conservative,” Lee said. “She was a democrat. Just like me. After government, things changed.” Lam abandoned plans to become a social worker and joined the colonial Hong Kong government in 1980 as an administrative officer, the elite cadre of officials who are given broad exposure to different government roles as preparation for promotion to more senior posts. In the Hong Kong civil service, well paid administrative officers have traditionally enjoyed considerable power and prestige in a political system without the scrutiny public servants receive in a full democracy. Lam rose fast and embraced challenging roles. Her critics say she also became arrogant and dismissive of advice from peers and subordinates. “She has never been known to be a team player,” says retired civil servant Anson Chan, who served as Hong Kong’s deputy leader before and after the handover. “That has a lot to do with her character and was also instrumental in her spectacular downfall.” Lam’s office declined to respond to “speculations or third parties’ comments” about her.

Others paint a different picture. Veteran social activist Ho Hei-wah, director of the Society for Community Organization, said he began working closely with Lam in the 1980s, when she led successful efforts to reunite Hong Kong families with mainland relatives. “She is a caring person,” he said. “From the beginning until today.” Ho said he helped persuade Lam to become deputy to the city’s former leader, Leung Chun-ying, in 2012. She had planned to retire to spend more time with her mathematician husband and two sons, Ho said, but agreed to take the post because she felt she could continue to serve the city. Hong Kong had been under mainland rule for 15 years. Xi Jinping was about to assume power. And Beijing was about to begin flexing its muscle more forcefully. In the final months of British rule, Hong Kong had passed laws barring the extradition of suspects to the mainland as an added protection to the freedoms promised under the one-country, two-systems formula. Beijing began making demands to reverse these provisions almost immediately after the handover, according to the Hong Kong government officials involved in talks about the issue. They say their mainland counterparts regarded it as an affront that the newly recovered territory would allow extradition to some foreign countries – even to America and Britain — but not to the motherland. The discussions went nowhere, and on Leung and Lam’s watch, China began taking matters into its own hands.

A billionaire vanishes

One of the first major extralegal arrests to gain public attention was the disappearance in 2015 of five booksellers of local publisher Mighty Current. The publisher specialized in muckraking books on the private lives and business dealings of China’s top leadership, including Xi himself. It later emerged that two of the men had been kidnapped – one in Hong Kong, one from Thailand – and taken to the mainland. A third later detailed how he was grabbed by Chinese agents while visiting southern China and held captive for eight months. He fled to Taiwan this April as Lam’s government sought to ram through the extradition bill.

Hong Kong leaders knew about these extralegal detentions but were unwilling to publicly call out mainland authorities over them. Lam herself was closely informed about one case. In 2013, a Hong Kong resident, Pan Weixi, and his wife were grabbed off the street in the city and smuggled to the mainland by speedboat. The family wrote to Lam describing the abduction in detail and appealing for her help in obtaining the businessman’s release, according to people with knowledge of the case. Hong Kong police confirmed to Reuters that they sent officers to Guangdong who helped secure the wife’s freedom and escorted her home. The family later learned that Pan was sentenced to 16 years in jail in Guangdong Province. A Hong Kong police investigation into the case remains open. After the bookseller abductions sparked an outcry, Hong Kong officials revealed in May 2016 they were in discussions with Beijing over formal extradition procedures. The talks failed, according to lawyers involved, because Beijing was unwilling to accept human-rights and legal safeguards. Then, in early 2017, came the brazen abduction of Xiao, the billionaire who was a target of the powerful anti-graft agency CCDI. A Hong Kong government official said Xiao had crossed the border with the mainland. The city was scandalized.

These controversies didn’t impede Lam’s rise. As Leung’s deputy, she was closely involved in the government’s handling of the Umbrella Movement, a 79-day campaign of civil disobedience in 2014 in which protesters demanding full democracy occupied major thoroughfares. The movement got its name from demonstrators’ use of umbrellas to ward off police. Lam made conciliatory gestures, meeting protesters for talks, but that failed to produce a breakthrough. Police eventually cleared the protesters, and some key leaders were later prosecuted. In March 2017, Lam was handpicked as China’s candidate to succeed Leung and easily won election by a committee of about 1,200 mostly pro-Beijing figures. She won plaudits in China for pushing through some unpopular policies. Within weeks of taking office in July 2017, her administration announced a controversial plan to let mainland officials stationed inside a Hong Kong train terminus enforce Chinese laws on travelers passing through. Critics said this and other moves further eroded the city’s autonomy. Lam’s office rejected the criticism, saying the terminus arrangement made for more convenient travel. Xi later praised Lam for her courage in taking on “difficult challenges,” after the two met in Beijing in December 2018, state media reported. The killing in Taiwan came in February 2018. The two young Hong Kongers – Poon Hiu-wing and her boyfriend, Chan Tong-kai – quarrelled while on a trip to Taipei. Furious, Chan bashed Poon’s head against a wall and strangled her, packed her body in a suitcase and later left it at a park in the Taiwanese capital, according to a Hong Kong court judgment. Chan was arrested in March after returning to Hong Kong and confessed. He was convicted and jailed for crimes committed after his return, including using Poon’s ATM card to withdraw money. But because the slaying took place in Taipei, he would need to be sent to Taiwan to be tried for the killing. Chan’s lawyer didn’t respond to questions for this article. Lam later told a news conference that since the killing, her government had been spending “quite a bit of time” devising extradition proposals. In the meantime, Beijing’s political allies in the city started agitating for change. The initial moves were low-key and attracted little attention. On May 4 last year, a pro-Beijing lawmaker, Priscilla Leung, called on the city’s Legislative Council to consider discussing judicial cooperation with Taiwan and “other places,” according to the minutes of a panel session in the council. Leung, a law professor, chairs a legislative panel on judicial affairs. She had no comment. Within days, Leung’s proposal got a push from two lawmakers with strong links to Beijing. Starry Lee and Holden Chow went further in a letter to Leung, calling on the government to begin moves to conclude an extradition agreement with Taiwan “as soon as possible,” council records show. Lee heads the city’s biggest political party, the Democratic Alliance for the Betterment and Progress of Hong Kong, which hews closely to Beijing’s official line. Chow is a vice chairman and the party’s highest-profile young leader.

‘This will destroy Hong Kong’

The next month, one of Lam’s top lieutenants dropped a clue that changing the law on extradition was under consideration. In answer to a written question from Starry Lee about the efforts to return the killer to Taipei, Secretary for Security John Lee said Hong Kong was studying how to handle the case. And he reminded her that under the law, the city was barred from sending suspects to any region of the People’s Republic of China. Hong Kong shares Beijing’s view that Taiwan is part of the PRC. Taiwan vehemently disagrees. Lee, 62, was a 33-year veteran of the Hong Kong police. He joined the government’s Security Bureau, which oversees the police and other law enforcement units, as deputy head in 2012 and was promoted to lead the bureau when Lam took office. Cops who served with him describe Lee as a shrewd and incorruptible crime fighter who was trusted with sensitive investigations before and after the handover. As security chief, Lee is responsible for liaison with the mainland’s powerful law enforcement and intelligence agencies. Poon’s family was begging for justice. Their pleas reached Lam. The chief executive said she was moved and promised to help. Lam later gave a tearful television interview to local broadcaster TVB in which she said Poon’s heartbroken father had been persistent, writing five letters to the government seeking justice for his daughter. “That’s why I told John Lee that you can’t just write a letter back to them and only say, ‘Sorry, Mr. Poon, there isn’t a legal basis for this, sorry’,” Lam said. “I said you must find a way, and not let any possibility go.” Poon’s father declined to comment. Starry Lee and Holden Chow continued rallying support for the Poon family and for changing the extradition law. In mid-February, they appeared at a press conference with the mother. “Even though it’s been a year since my daughter was murdered, my husband and I can’t accept this reality,” Poon’s mother, Kui Yin-fun, said, sobbing. “I always think of this cold-blooded and cruel scene. How the murderer dragged a suitcase, and moved the corpse, and then left it in the open, so that wild dogs could eat it.” The only way to help her daughter now, Kui told the media crowd, was justice: extradite the killer. Then Holden Chow and Starry Lee took questions. Asked whether amending the law was the sole way to deal with the case, Starry Lee said: “In principle, without this amendment of the legislation, this cannot be done.” Asked about his championing of the bill, Chow told Reuters the plan was introduced “to deal with the Taiwan murder case and to provide the victim’s family justice.” Unfortunately, he added, the Lam administration was unable to explain the human-rights protections contained in the bill and persuade the public to embrace it. Starry Lee didn’t respond to a request for comment. There was broad support for the Poon family in Hong Kong. But that didn’t translate into support for extradition to the mainland. That same week, a Legislative Council agenda included an item on judicial cooperation with Taiwan and “other places.” The next day, the government showed its hand, revealing in an official briefing note that to resolve the Poon case, it was proposing amendments that would remove the ban on extraditions to other parts of China. The ban, it said, had created “loopholes,” allowing the city to become a haven for criminals. Pro-democracy lawmaker Dennis Kwok was outraged. The next day, he confronted security chief John Lee in a meeting room at the Legislative Council. “I told him don’t do this,” Kwok told Reuters. “I told him it is a crazy idea. I lost my cool with him. I said this will destroy Hong Kong. Don’t do it!” Lee ploughed ahead, telling reporters in March that the restrictions on extradition to other parts of China were a “chain that has been put on my feet.”

Chinese leaders publicly began throwing their weight behind the effort. In March, Chen Zhimin, a former vice minister of public security, linked the bill to Xi’s crackdown. He told Hong Kong public broadcaster RTHK a pact was needed because there were more than 300 fugitives on China’s wanted list hiding in the city. Chen also revealed that before he left his post in 2017, mainland officials had been discussing an extradition pact with their Hong Kong counterparts – including John Lee. In a statement to Reuters, Lee said it was “totally unfounded and erroneous” to suggest that the mainland and pro-Beijing parties were the driving force behind the bill. The alleged abductions of billionaire Xiao and others were irrelevant, he said: The trigger was the Poon killing, which exposed gaps in the law. The central government, he added, respected Lam’s views and “supported her all the way.” By May, higher officials – including a member of the Party’s top decision-making body, the seven-member Politburo Standing Committee – were publicly backing Lam’s bill. Chinese leaders were also mobilizing support behind the scenes. One was Zhang Xiaoming, director of the Hong Kong and Macau Affairs Office, the body that coordinates Beijing’s policy for the city. In May, Ronny Tong, the influential Lam adviser and top barrister, led a delegation of his political allies to the Chinese capital. In a 90-minute meeting, Zhang explained the importance of the extradition bill to China and Hong Kong, according to two delegation members. Zhang took a “hardline” position, they said, telling the visitors it was urgent that Hong Kong pass the measures. Chinese authorities didn’t respond to questions about the roles of Zhang, Chen and other top leaders. Outside of Lam’s circle, alarm was spreading through Hong Kong. Even the normally pro-Beijing business community was unnerved by the bill. People began coming out to protest by the hundreds, then by the thousands, then tens of thousands and more. On June 9, the government was shaken when an estimated one million people took to the streets in a peaceful protest. Demonstrations later turned violent. On June 11, lawmakers were preparing for a second reading of the bill, scheduled for the next day. Pro-Beijing lawmakers had the numbers if the bill came to a vote. That day, protesters began surrounding the Legislative Council building in an effort to block the session.


Company: cnbc, Activity: cnbc, Date: 2019-12-21
Keywords: news, cnbc, companies, kongs, revolt, bill, told, chinese, extradition, hong, miscalculation, kidnappings, murder, kong, officials, mainland, lee, lam, set


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Hong Kong unrest has led to as much as $5 billion in capital outflows, Bank of England says

The unrest in Hong Kong has led to as much as $5 billion of capital outflow from investment funds in the Asian financial hub since April, the Bank of England said. “These political tensions pose risks, given Hong Kong’s position as a major financial center,” the report said. The BoE monitors Hong Kong closely because UK banks such as HSBC and Standard Chartered are also the leading banks in Hong Kong. Analysts at Goldman Sachs said in October that about $4 billion of deposits might have left Hon


The unrest in Hong Kong has led to as much as $5 billion of capital outflow from investment funds in the Asian financial hub since April, the Bank of England said.
“These political tensions pose risks, given Hong Kong’s position as a major financial center,” the report said.
The BoE monitors Hong Kong closely because UK banks such as HSBC and Standard Chartered are also the leading banks in Hong Kong.
Analysts at Goldman Sachs said in October that about $4 billion of deposits might have left Hon
Hong Kong unrest has led to as much as $5 billion in capital outflows, Bank of England says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-17
Keywords: news, cnbc, companies, bank, billion, kong, saidthe, report, unrest, england, capital, kongs, gdp, banks, financial, led, hong, outflows


Hong Kong unrest has led to as much as $5 billion in capital outflows, Bank of England says

The unrest in Hong Kong has led to as much as $5 billion of capital outflow from investment funds in the Asian financial hub since April, the Bank of England said.

The flight of capital, which accounted for nearly 1.25% of the region’s GDP, began after the city’s government pushed for a bill that would allow extradition to Mainland China, according to the central bank’s Financial Stability Report released on Monday.

As protests against the bill intensified and led to violent clashes, retail sales plunged, pushing the city into its first recession in a decade.

“These political tensions pose risks, given Hong Kong’s position as a major financial center,” the report said.

The BoE monitors Hong Kong closely because UK banks such as HSBC and Standard Chartered are also the leading banks in Hong Kong.

The banks have passed the BoE’s stress test, which modeled a fall of almost 8% in Hong Kong’s GDP and a slump in property prices by more than half.

Analysts at Goldman Sachs said in October that about $4 billion of deposits might have left Hong Kong for Singapore between June and August.

However, the Hong Kong Monetary Authority, the central bank in the Chinese-ruled territory, has repeatedly said there are no apparent signs of significant capital outflows from the city.


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Hong Kong unrest hits 6-month milestone, protesters’ demands see little response from government

Social unrest in the city has since taken on broader anti-government sentiment as protesters push for greater democracy in Hong Kong. Cloud of smoke from an explosion on the footbridge on the drive way in front of Hong Kong Coliseum and Hong Kong harbor during the protests on Nov. 18. The Hong Kong government introduced four rounds of relief measures worth 25 billion Hong Kong dollars ($3.19 billion), with most of that expected to go toward the hardest hit sectors like tourism and retail. But bu


Social unrest in the city has since taken on broader anti-government sentiment as protesters push for greater democracy in Hong Kong.
Cloud of smoke from an explosion on the footbridge on the drive way in front of Hong Kong Coliseum and Hong Kong harbor during the protests on Nov. 18.
The Hong Kong government introduced four rounds of relief measures worth 25 billion Hong Kong dollars ($3.19 billion), with most of that expected to go toward the hardest hit sectors like tourism and retail.
But bu
Hong Kong unrest hits 6-month milestone, protesters’ demands see little response from government Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-08  Authors: vivian kam
Keywords: news, cnbc, companies, city, little, protests, hits, marched, 6month, kong, protesters, hong, milestone, demands, kongs, response, economic, think, unrest


Hong Kong unrest hits 6-month milestone, protesters' demands see little response from government

Hong Kongers marched again on Sunday, chanting “five demands, not one less” as the city’s anti-government protests approached their six-month milestone. Demonstrators have been locked in a stalemate with the local government since early June amid protests initially sparked by a bill that would have enabled extradition to mainland China. On June 9, a million people marched through the financial center to demonstrate their opposition. Approximately 2 million people marched in protest a week later. While Hong Kong leader Carrie Lam has since retracted the bill, fulfilling one of the five demands, critics regarded the move as too little, too late. Social unrest in the city has since taken on broader anti-government sentiment as protesters push for greater democracy in Hong Kong. Government opposition was fueled by anger with police conduct as well as how Lam’s administration dealt with the protests, Ma Ngok, associate professor in the department of government and public administration at the Chinese University of Hong Kong, told CNBC. “The government hasn’t actually responded, so a lot of people think they just cannot give up on the protest” Ma said.

Cloud of smoke from an explosion on the footbridge on the drive way in front of Hong Kong Coliseum and Hong Kong harbor during the protests on Nov. 18. May James | SOPA Images | LightRocket | Getty Images

Hong Kong’s economic troubles

The unrest adds further pressure on Hong Kong’s economy, already hit by global uncertainty amid the U.S.-China trade war. The city entered a technical recession in the third quarter, posting a year-over-year decline of 2.9%. The government estimated that the protests alone contributed 2 percentage points to the economic contraction.

The Hong Kong government introduced four rounds of relief measures worth 25 billion Hong Kong dollars ($3.19 billion), with most of that expected to go toward the hardest hit sectors like tourism and retail. That extra spending will lead the city to post its first budget deficit in 15 years, Hong Kong’s financial secretary said. The government lowered its full-year forecast and now expects Hong Kong’s economy to contract 1.9% during this fiscal year. But business in Hong Kong remains largely normal, according to Edward Yau, Hong Kong’s secretary for Commerce and Economic Development. “We hope that, well with the easing of the social unrest, law and order back to normal. Then I think we’re heading towards a rebound” Yau said in an interview with CNBC. “But more importantly, I think we also need to tackle the wider picture, which I think Hong Kong and our neighboring region also suffer, which is U.S.-China trade war.”

Establishment’s weak mandate

Lam, the city’s leader, has insisted that escalating violence would not force her administration to yield to protester demands. Her popularity, however, has taken a drastic nosedive. Lam’s approval rating plunged to just 19.7% in November, the lowest of Hong Kong’s leaders, according to the most recent figures from the Hong Kong Public Opinion Research Institute.


Company: cnbc, Activity: cnbc, Date: 2019-12-08  Authors: vivian kam
Keywords: news, cnbc, companies, city, little, protests, hits, marched, 6month, kong, protesters, hong, milestone, demands, kongs, response, economic, think, unrest


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US law backing Hong Kong protests could end up hurting everyone — the US, China and Hong Kong

Anthony Wallace | AFP | Getty ImagesU.S. President Donald Trump signed into law two bills supporting Hong Kong protesters on Wednesday. The laws were introduced to preserve Hong Kong’s rights and autonomy, but one of them actually contains provisions that could end up hurting the economies of the U.S., China and Hong Kong. Losing special statusAs a special administrative region of China, Hong Kong is governed under the “one country, two systems” principle. On trade, Hong Kong has been a major de


Anthony Wallace | AFP | Getty ImagesU.S. President Donald Trump signed into law two bills supporting Hong Kong protesters on Wednesday.
The laws were introduced to preserve Hong Kong’s rights and autonomy, but one of them actually contains provisions that could end up hurting the economies of the U.S., China and Hong Kong.
Losing special statusAs a special administrative region of China, Hong Kong is governed under the “one country, two systems” principle.
On trade, Hong Kong has been a major de
US law backing Hong Kong protests could end up hurting everyone — the US, China and Hong Kong Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-29  Authors: yen nee lee
Keywords: news, cnbc, companies, mainland, hong, china, status, kong, backing, rights, hurting, law, special, financial, chinese, kongs, protests, end


US law backing Hong Kong protests could end up hurting everyone — the US, China and Hong Kong

Secondary school students attend a rally at Edinburgh Place in Hong Kong on August 22, 2019. Anthony Wallace | AFP | Getty Images

U.S. President Donald Trump signed into law two bills supporting Hong Kong protesters on Wednesday. The laws were introduced to preserve Hong Kong’s rights and autonomy, but one of them actually contains provisions that could end up hurting the economies of the U.S., China and Hong Kong. Trump signed two bills on Wednesday pertaining to Hong Kong: One involves an annual review of the city’s autonomy from China; the another bars the sale of munitions to Hong Kong police, such as tear gas and rubber bullets. It is the first — the Hong Kong Human Rights and Democracy Act of 2019 — that could lead to the removal of the so-called special status that Hong Kong currently enjoys, and that could hurt the Chinese territory’s economic prospects and businesses that operate there. Hong Kong, a former British colony that returned to Chinese rule in 1997, has seen widespread demonstrations since June, some of which have led to violent clashes between protesters and the police. The protests were initially sparked by a proposed law that would have allowed extradition to mainland China, but the unrest later morphed into broader anti-government demonstrations that include demands such as greater democracy and universal suffrage. The two U.S. laws come amid widespread criticism of heavy-handed treatment of protesters by the Hong Kong police and government, which Beijing supports.

Protecting Hong Kong

The Hong Kong Human Rights and Democracy Act of 2019 include the following provisions: Requiring the U.S. State Department to annually review whether Hong Kong is “sufficiently autonomous” from China to justify its “unique treatment” under U.S. law

Requiring the American president to impose sanctions on individuals found violating human rights in Hong Kong by freezing their assets and denying them entry into the U.S.

U.S. visas to Hong Kong applicants may not be denied because they’ve been arrested or detained for taking part in pro-democracy protests The bill was touted by Congress as a way to deter Beijing’s influence and interference in Hong Kong’s internal affairs. But many analysts have said it’s largely “symbolic” in nature.

“I think it’s (a) significant but symbolic step,” Ben Bland, director of the Southeast Asia Project at Australian think tank Lowy Institute, said last week before Congress passed the two bills. “It’s really important for the Hong Kong democracy movement. Many people on the streets have been calling for the U.S. to signal its support and to signal its dissatisfaction with what the Chinese government has been doing in Hong Kong over the last few years: Squeezing the city’s freedom and autonomy,” he told CNBC’s “Squawk Box Asia.”

Losing special status

As a special administrative region of China, Hong Kong is governed under the “one country, two systems” principle. Under that structure, Hong Kong is given self-governing power, a largely separate legal and economic framework from China, and various freedoms including limited election rights. Such a system underpins Hong Kong’s status as a global financial and business center, especially as a middleman between China and the world. The city’s autonomy from China is also a reason why the U.S. treats it differently from other Chinese cities. For example, elevated U.S. tariffs imposed on China in the trade war don’t apply to Hong Kong.

Hong Kong’s importance to the Chinese economy is disproportionate to its size. Tianlei Huang Peterson Institute for International Economics

Losing that special treatment would damage the city’s economy, and its repercussions could potentially feed through the global financial system. To be sure, the Hong Kong Human Rights and Democracy Act of 2019 by itself doesn’t mandate the removal of the territory’s special status if the U.S. finds that Hong Kong is not sufficiently autonomous from China. The revocation has to come from Trump through an executive order, or Congress via the United States-Hong Kong Policy Act of 1992, which spells out Washington’s special treatment of the city. Nevertheless, analysts said Washington is not likely to go so far as to revoke the city’s special status, given the economic stake the U.S. has in Hong Kong.

US interests in Hong Kong

One reason why Washington wouldn’t cancel Hong Kong’s special status is the tight trade and financial relationship between the two, observers said. On its website, the State Department said that more than 1,300 American firms operate in Hong Kong, of which 300 base their Asian regional operations there. Nearly all major U.S. financial firms have a presence there.

On trade, Hong Kong has been a major destination for U.S. legal and accounting services, according to the State Department. Last year, the U.S.’s largest goods trade surplus worldwide — at $31.1 billion — was with Hong Kong, the State Department said. Many of those relationships were built on Hong Kong’s trusted position as a relatively safe place to access China — the world’s second-largest economy with much untapped business opportunities. The American Chamber of Commerce in Hong Kong has said that anything that changes the status of the city would have “a chilling effect” on U.S. trade and investment in the city, reported Reuters.

Hong Kong’s importance to China

Hong Kong’s economic growth contribution to China has diminished through the years, but the city has remained an important financial center for mainland businesses. Given its openness to foreign investors, Hong Kong has for years been the place where mainland Chinese companies raise funds through listing on the Hong Kong stock market and issuing bonds.

Hong Kong’s role as the China’s financial arm for the rest of the world has helped mainland China in keeping its financial sector insulated … French investment bank Natixis

In recent years, Hong Kong has become the gateway for foreign investors to buy Chinese financial assets through the stock and bond connect programs. The city is also one of the few places where the Chinese yuan is traded outside the mainland, facilitating the internationalization of the currency. “Hong Kong’s role as the China’s financial arm for the rest of the world has helped mainland China in keeping its financial sector insulated without suffering the negative consequences of such isolation, i.e. limited access to finance or difficult access to assets in the rest of the world,” French investment bank Natixis wrote in an August report.


Company: cnbc, Activity: cnbc, Date: 2019-11-29  Authors: yen nee lee
Keywords: news, cnbc, companies, mainland, hong, china, status, kong, backing, rights, hurting, law, special, financial, chinese, kongs, protests, end


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Hong Kong markets jump as pro-democracy candidates surge to ‘stunning’ election victory

Shares in Asia were higher on Monday, as investors reacted to Hong Kong’s district council elections amid months of civil unrest in the city. Hong Kong’s Hang Seng index led gains among major markets regionally as it jumped 1.5% to close at 26,993.04, with shares of life insurer AIA surging 3.62%. The moves came after pro-democracy candidates surged to a landslide victory following a record voter turnout, Reuters reported. One analyst said the development was a “stunning victory” for pro-democra


Shares in Asia were higher on Monday, as investors reacted to Hong Kong’s district council elections amid months of civil unrest in the city.
Hong Kong’s Hang Seng index led gains among major markets regionally as it jumped 1.5% to close at 26,993.04, with shares of life insurer AIA surging 3.62%.
The moves came after pro-democracy candidates surged to a landslide victory following a record voter turnout, Reuters reported.
One analyst said the development was a “stunning victory” for pro-democra
Hong Kong markets jump as pro-democracy candidates surge to ‘stunning’ election victory Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-25  Authors: eustance huang
Keywords: news, cnbc, companies, hong, shenzhen, victory, candidates, jump, kong, unrest, election, months, markets, kongs, shares, prodemocracy, surge, sent, stunning, howie


Hong Kong markets jump as pro-democracy candidates surge to 'stunning' election victory

Shares in Asia were higher on Monday, as investors reacted to Hong Kong’s district council elections amid months of civil unrest in the city.

Hong Kong’s Hang Seng index led gains among major markets regionally as it jumped 1.5% to close at 26,993.04, with shares of life insurer AIA surging 3.62%. The moves came after pro-democracy candidates surged to a landslide victory following a record voter turnout, Reuters reported.

That comes following months of civil unrest that have rocked the city and periodically degenerated into violence.

One analyst said the development was a “stunning victory” for pro-democracy candidates.

“I don’t think anyone expected this,” Fraser Howie, an independent analyst, told CNBC’s “Street Signs” on Monday. “Here is a very clear sign, three million Hong Kongers came out in a very orderly fashion, made their votes and sent a very clear signal to the establishment.”

“The message has been sent across the board, across almost every … constituency, is that there is great distrust and frustration with the government and with (Hong Kong Chief Executive) Carrie Lam,” Howie said.

Mainland Chinese stocks were mixed on the day. The Shanghai composite rose 0.72% to around 2,906.17, while the Shenzhen component was just below the flatline at 9,626.36. The Shenzhen composite also shed 0.439% to approximately 1,600.45.


Company: cnbc, Activity: cnbc, Date: 2019-11-25  Authors: eustance huang
Keywords: news, cnbc, companies, hong, shenzhen, victory, candidates, jump, kong, unrest, election, months, markets, kongs, shares, prodemocracy, surge, sent, stunning, howie


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Despite a landslide win for Hong Kong’s pro-democracy parties, the ‘root’ of the problem remains

“The root cause of Hong Kong’s problem is still there, particularly (as) Beijing is very assertive about Hong Kong’s situation,” Wu told CNBC’s “Capital Connection.” Hong Kong pro-democracy parties took 390 out of 452 district council seats — winning nearly 90% of the seats, according to Reuters which cited local broadcaster RTHK on Monday. That’s almost double the number in the previous election four years ago, according to Reuters. Hong Kong, a former British colony, has been operating under t


“The root cause of Hong Kong’s problem is still there, particularly (as) Beijing is very assertive about Hong Kong’s situation,” Wu told CNBC’s “Capital Connection.”
Hong Kong pro-democracy parties took 390 out of 452 district council seats — winning nearly 90% of the seats, according to Reuters which cited local broadcaster RTHK on Monday.
That’s almost double the number in the previous election four years ago, according to Reuters.
Hong Kong, a former British colony, has been operating under t
Despite a landslide win for Hong Kong’s pro-democracy parties, the ‘root’ of the problem remains Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-25  Authors: huileng tan
Keywords: news, cnbc, companies, seats, prodemocracy, election, previous, remains, parties, despite, kongs, kong, elections, months, win, local, landslide, root, hong, problem


Despite a landslide win for Hong Kong's pro-democracy parties, the 'root' of the problem remains

Ballots are being displayed for counting at a polling station. Nearly 3 million Hong Kong citizens cast their ballots on Sunday’s district council elections in the referendum race between the pro-democracy camp and pro-Beijing camp after more than five months of turmoil in the city.

Hong Kong’s pro-democracy candidates won big in local elections on Sunday, but there will be no easy solutions to the issues hanging over the territory as protesters stand up to China’s growing influence, analysts told CNBC on Monday.

“It’s very clear that people are not happy with the government, so they try to support the pro-democracy camp in this election,” said Alfred Wu, associate professor at the Lee Kuan Yew School of Public Policy in Singapore.

The polls come after six months of anti-government, pro-democracy protests that have turned increasingly violent, and as Hong Kong struggles to overcome its most serious political crisis in decades. The local elections have been widely viewed as a barometer of public sentiment.

“The root cause of Hong Kong’s problem is still there, particularly (as) Beijing is very assertive about Hong Kong’s situation,” Wu told CNBC’s “Capital Connection.”

“Also, lots of young people are very much politically active,” he added. “They want (the) government to make a change, but unfortunately over the past few months, (the) government still adopt the previous line so it’s hard to say it will have a dramatic change in the near future.”

Hong Kong pro-democracy parties took 390 out of 452 district council seats — winning nearly 90% of the seats, according to Reuters which cited local broadcaster RTHK on Monday. Democratic candidates secured just 100 seats at the previous elections four years ago.

According to the office of the Chief Executive Carrie Lam, about 2.94 million registered electors cast their votes in the district council election on Sunday — a record turnout of about 71.2%. That’s almost double the number in the previous election four years ago, according to Reuters.

Hong Kong, a former British colony, has been operating under the “one country, two systems” principle since its return to Chinese rule in 1997. That framework gives the international financial hub self-governing power and various freedoms, including limited election rights. Hong Kong citizens also enjoy a higher degree of autonomy compared to citizens of mainland China.


Company: cnbc, Activity: cnbc, Date: 2019-11-25  Authors: huileng tan
Keywords: news, cnbc, companies, seats, prodemocracy, election, previous, remains, parties, despite, kongs, kong, elections, months, win, local, landslide, root, hong, problem


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Hong Kong markets jump as pro-democracy candidates surge to ‘stunning’ election victory

Shares in Asia were higher on Monday, as investors reacted to Hong Kong’s district council elections amid months of civil unrest in the city. Hong Kong’s Hang Seng index led gains among major markets regionally as it jumped 1.5% to close at 26,993.04, with shares of life insurer AIA surging 3.62%. The moves came after pro-democracy candidates surged to a landslide victory following a record voter turnout, Reuters reported. One analyst said the development was a “stunning victory” for pro-democra


Shares in Asia were higher on Monday, as investors reacted to Hong Kong’s district council elections amid months of civil unrest in the city.
Hong Kong’s Hang Seng index led gains among major markets regionally as it jumped 1.5% to close at 26,993.04, with shares of life insurer AIA surging 3.62%.
The moves came after pro-democracy candidates surged to a landslide victory following a record voter turnout, Reuters reported.
One analyst said the development was a “stunning victory” for pro-democra
Hong Kong markets jump as pro-democracy candidates surge to ‘stunning’ election victory Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-25  Authors: eustance huang
Keywords: news, cnbc, companies, surge, prodemocracy, election, hong, howie, candidates, shenzhen, sent, markets, kongs, kong, victory, jump, stunning, shares, months, unrest


Hong Kong markets jump as pro-democracy candidates surge to 'stunning' election victory

Shares in Asia were higher on Monday, as investors reacted to Hong Kong’s district council elections amid months of civil unrest in the city.

Hong Kong’s Hang Seng index led gains among major markets regionally as it jumped 1.5% to close at 26,993.04, with shares of life insurer AIA surging 3.62%. The moves came after pro-democracy candidates surged to a landslide victory following a record voter turnout, Reuters reported.

That comes following months of civil unrest that have rocked the city and periodically degenerated into violence.

One analyst said the development was a “stunning victory” for pro-democracy candidates.

“I don’t think anyone expected this,” Fraser Howie, an independent analyst, told CNBC’s “Street Signs” on Monday. “Here is a very clear sign, three million Hong Kongers came out in a very orderly fashion, made their votes and sent a very clear signal to the establishment.”

“The message has been sent across the board, across almost every … constituency, is that there is great distrust and frustration with the government and with (Hong Kong Chief Executive) Carrie Lam,” Howie said.

Mainland Chinese stocks were mixed on the day. The Shanghai composite rose 0.72% to around 2,906.17, while the Shenzhen component was just below the flatline at 9,626.36. The Shenzhen composite also shed 0.439% to approximately 1,600.45.


Company: cnbc, Activity: cnbc, Date: 2019-11-25  Authors: eustance huang
Keywords: news, cnbc, companies, surge, prodemocracy, election, hong, howie, candidates, shenzhen, sent, markets, kongs, kong, victory, jump, stunning, shares, months, unrest


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China likely to ‘intervene’ in Hong Kong’s affairs more following the protests: Bank of America Merrill Lynch

A fire is seen in front of a store vandalized by protesters in Hong Kong on October 4, 2019. Laurel Chor | Getty Images News | Getty ImagesThe ongoing protests in Hong Kong are likely to spur China to meddle in the city’s affairs more, according to one strategist that spoke to CNBC on Wednesday. “I think the old strategy was to, you know, let Hong Kong — particularly the elites — run Hong Kong,” he said, to serve as a “great example for Taiwan to come back to the motherland.” Hong Kong — a forme


A fire is seen in front of a store vandalized by protesters in Hong Kong on October 4, 2019.
Laurel Chor | Getty Images News | Getty ImagesThe ongoing protests in Hong Kong are likely to spur China to meddle in the city’s affairs more, according to one strategist that spoke to CNBC on Wednesday.
“I think the old strategy was to, you know, let Hong Kong — particularly the elites — run Hong Kong,” he said, to serve as a “great example for Taiwan to come back to the motherland.”
Hong Kong — a forme
China likely to ‘intervene’ in Hong Kong’s affairs more following the protests: Bank of America Merrill Lynch Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-13  Authors: eustance huang
Keywords: news, cnbc, companies, merrill, cui, kong, think, likely, intervene, hong, kongs, bank, protests, china, strategist, strategy, returned, recent, following, lynch


China likely to 'intervene' in Hong Kong's affairs more following the protests: Bank of America Merrill Lynch

A fire is seen in front of a store vandalized by protesters in Hong Kong on October 4, 2019. Laurel Chor | Getty Images News | Getty Images

The ongoing protests in Hong Kong are likely to spur China to meddle in the city’s affairs more, according to one strategist that spoke to CNBC on Wednesday. The comments follow a recent escalation in violence in the embattled city, which has been plagued by civil unrest that has now stretched on for more than five months. “I think what the protests in recent months made, the biggest change, is I think Beijing … will intervene in Hong Kong’s affair(s) a lot more,” David Cui, head of China equity strategy at Bank of America Merrill Lynch, told CNBC’s “Street Signs.” “There could be very meaningful wealth and income redistribution measures,” Cui said.

“The policies for the past 20 years (are) probably going to get turned upside down.” David Cui head of China equity strategy, Bank of America Merrill Lynch

The strategist said the demonstrations have shown that Beijing’s previous policy with Hong Kong, which he described as “reasonably hands-off” since the city returned to China in 1997, has not worked. “I think the old strategy was to, you know, let Hong Kong — particularly the elites — run Hong Kong,” he said, to serve as a “great example for Taiwan to come back to the motherland.” Hong Kong — a former British colony returned to Chinese rule in 1997 — has been crippled by widespread demonstrations since early June. It operates as a semi-autonomous territory under the “one country, two systems” principle — a structure that grants Hong Kong citizens some degree of financial and legal independence from the mainland.


Company: cnbc, Activity: cnbc, Date: 2019-11-13  Authors: eustance huang
Keywords: news, cnbc, companies, merrill, cui, kong, think, likely, intervene, hong, kongs, bank, protests, china, strategist, strategy, returned, recent, following, lynch


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Hong Kong’s CK Life Sciences bets on skin cancer drug as its stock soars more than 200%

Shares of biotech company CK Life Sciences soared more than 200% last week on news that the Hong Kong-based firm has made significant headway in a skin cancer drug trial. Trials showed a lower recurrence rate of 41% for patients on the drug, compared to a group being administered a placebo. Most products in the market are currently for patients already progressed to the latter third and fourth stages, CK Life said. The largest markets for the company’s drug would be the United States and Europe,


Shares of biotech company CK Life Sciences soared more than 200% last week on news that the Hong Kong-based firm has made significant headway in a skin cancer drug trial.
Trials showed a lower recurrence rate of 41% for patients on the drug, compared to a group being administered a placebo.
Most products in the market are currently for patients already progressed to the latter third and fourth stages, CK Life said.
The largest markets for the company’s drug would be the United States and Europe,
Hong Kong’s CK Life Sciences bets on skin cancer drug as its stock soars more than 200% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-12  Authors: weizhen tan
Keywords: news, cnbc, companies, skin, stock, company, sciences, drug, firm, patients, hong, kongs, companys, soars, cancer, biotech, life


Hong Kong's CK Life Sciences bets on skin cancer drug as its stock soars more than 200%

Shares of biotech company CK Life Sciences soared more than 200% last week on news that the Hong Kong-based firm has made significant headway in a skin cancer drug trial.

The firm — part of major conglomerate CK Hutchison, which was founded by retired billionaire Li Ka-shing — announced on Nov. 6 that its phase three clinical trial produced positive results. Trials showed a lower recurrence rate of 41% for patients on the drug, compared to a group being administered a placebo.

After the announcement on Wednesday, shares of the company climbed for two straight days.

It reached an intra-day high of HK$1.34 on Thursday, representing a 277% jump from HK$0.355 at last Tuesday’s close. It has since pared some gains and was hovering around HK$0.96 on Tuesday afternoon.

CK Life’s Chief Operating Officer Alan Yu pointed to the company’s “fairly sustainable” model of having two cash-generating streams of business — healthcare and agriculture.

“Unlike other biotech companies, we have two streams of revenue to derive to support our R&D (research and development) programs,” he told CNBC in a phone interview last week. “A lot of biotech companies live from hand-to-mouth, because they don’t have cash-generating streams.”

Responding to the strong market reaction, Yu said investors might be starting to appreciate the potential of the company’s research projects.

“But people are beginning to take notice that these projects are starting to show some promise,” he said, suggesting that the firm is undervalued.

Developed by its U.S.-based subsidiary Polynoma, the drug targets patients with early-stage melanoma — the deadliest form of skin cancer, and a group the company says is under-served. Most products in the market are currently for patients already progressed to the latter third and fourth stages, CK Life said.

The largest markets for the company’s drug would be the United States and Europe, said Yu adding that a third of the world’s skincare cancer patients are diagnosed in the U.S.

Looking ahead, CK Life will be betting big on health care, as populations in many advanced economies age rapidly, Yu said.

“Health care costs around the world are rising, and in some countries rising very rapidly,” he said. “Definitely, health-related products present a significant opportunity, especially with aging populations.”


Company: cnbc, Activity: cnbc, Date: 2019-11-12  Authors: weizhen tan
Keywords: news, cnbc, companies, skin, stock, company, sciences, drug, firm, patients, hong, kongs, companys, soars, cancer, biotech, life


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