Cathay’s ‘unusual position’ makes it ‘vulnerable to pressure’ from Beijing, analyst says

Rupert Hogg, chief executive officer of Cathay Pacific Airways Ltd., attends a news conference in Hong Kong, China, on Wednesday, Mar. The company was recently caught in the Hong Kong protests, where staff reportedly took part in the pro-democracy rallies that have enraged Beijing. Innes-Ker said “companies may find that their employees’ activism turns into a political risk in mainland China, if this campaigning becomes associated with the firm’s brand.” “There are a lot of things within China t


Rupert Hogg, chief executive officer of Cathay Pacific Airways Ltd., attends a news conference in Hong Kong, China, on Wednesday, Mar. The company was recently caught in the Hong Kong protests, where staff reportedly took part in the pro-democracy rallies that have enraged Beijing. Innes-Ker said “companies may find that their employees’ activism turns into a political risk in mainland China, if this campaigning becomes associated with the firm’s brand.” “There are a lot of things within China t
Cathay’s ‘unusual position’ makes it ‘vulnerable to pressure’ from Beijing, analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: grace shao
Keywords: news, cnbc, companies, vulnerable, kong, airline, position, analyst, chinese, political, hong, pressure, mainland, makes, resignation, beijing, protests, unusual, cathays, risk, china


Cathay's 'unusual position' makes it 'vulnerable to pressure' from Beijing, analyst says

Rupert Hogg, chief executive officer of Cathay Pacific Airways Ltd., attends a news conference in Hong Kong, China, on Wednesday, Mar. 13, 2019. The airline announced Hogg’s resignation on Mar.16. Bloomberg | Bloomberg | Getty Images

Cathay Pacific’s CEO Rupert Hogg officially stepped down on Monday amid what the company called “challenging weeks for the airline.” The company was recently caught in the Hong Kong protests, where staff reportedly took part in the pro-democracy rallies that have enraged Beijing. Hogg’s sudden resignation was announced days after China’s Civil Aviation Administration issued a “major aviation safety risk warning” to the airline. Hong Kong, a special administrative region of China, has seen more than 11 weeks of protests over a now-suspended extradition bill that would have allowed people in the territory to be sent to the mainland for trial.

Most firms in Hong Kong that engage in business with mainland China know that there is always a degree of political risk that needs to be navigated. Duncan Innes-Ker The Economist Intelligence Unit

In a statement released Friday, the company said it remains fully committed to Hong Kong under the principle of “One Country, Two Systems” — which allows the territory a certain degree of legal and economic autonomy.

Cathay’s close China links

Two of the airline’s largest shareholders are Swire Group — a Hong Kong and London-based diversified conglomerate that owns 45% of the airline — and Air China, a Chinese state-owned air carrier group which owns 22.65% of Cathay, according to data provided by Refinitiv. Hogg’s sudden resignation is a special case on its own, said Duncan Innes-Ker, regional director for Asia at The Economist Intelligence Unit. “Cathay is in a slightly unusual position in that a large Chinese (state-owned enterprise) has a significant stake in its share ownership,” Innes-Ker said. “Companies that have an SOE as an equity partner are likely to be especially vulnerable to pressure from the Chinese authorities. Cathay’s China routes are also crucial to its business model and future growth, so this makes it doubly susceptible,” he told CNBC. He explained that “most firms in Hong Kong that engage in business with mainland China know that there is always a degree of political risk that needs to be navigated.”

Innes-Ker said “companies may find that their employees’ activism turns into a political risk in mainland China, if this campaigning becomes associated with the firm’s brand.” Just over a week ago, the airline said employees who “support or take part in illegal protests, violent actions, or overly radical behaviour” would be barred from crewing flights to mainland China. The airline also fired two pilots over their involvement in the protests.

External pressure from Beijing

Since the former British colony was handed over to Beijing in 1997, China has very much recognized it needs Hong Kong, David Dodwell, executive director at HK-APEC Trade Policy Group told CNBC in early August. That was especially true when China was still opening up to the rest of the world, he said at that time. “There are a lot of things within China that can’t be done in China, and Hong Kong is indispensable for that,” Dodwell said. The city is not just a financial capital but also an important “headquarter capital, ” he added, explaining that many Chinese and foreign companies use Hong Kong as their headquarters because of the array of services the city offers.

Protesters take part in a rally against extradition bill on July 1, 2019 in Hong Kong, China. Billy H.C. Kwok | Getty Images


Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: grace shao
Keywords: news, cnbc, companies, vulnerable, kong, airline, position, analyst, chinese, political, hong, pressure, mainland, makes, resignation, beijing, protests, unusual, cathays, risk, china


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Cathay Pacific suspends pilot for involvement in Hong Kong protests

Cathay Pacific shares fell more than 4% on Monday after the carrier announced it had suspended a pilot for his involvement in Hong Kong’s anti-government protests. The airline said Saturday that employees who “support or take part in illegal protests, violent actions, or overly radical behaviour” would be barred from crewing flights to mainland China. Hong Kong — a former British colony that was returned to Chinese rule in 1997 — has been struggling to end weeks of protests that have in recent w


Cathay Pacific shares fell more than 4% on Monday after the carrier announced it had suspended a pilot for his involvement in Hong Kong’s anti-government protests. The airline said Saturday that employees who “support or take part in illegal protests, violent actions, or overly radical behaviour” would be barred from crewing flights to mainland China. Hong Kong — a former British colony that was returned to Chinese rule in 1997 — has been struggling to end weeks of protests that have in recent w
Cathay Pacific suspends pilot for involvement in Hong Kong protests Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: grace shao
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Cathay Pacific suspends pilot for involvement in Hong Kong protests

Cathay Pacific shares fell more than 4% on Monday after the carrier announced it had suspended a pilot for his involvement in Hong Kong’s anti-government protests.

The airline said Saturday that employees who “support or take part in illegal protests, violent actions, or overly radical behaviour” would be barred from crewing flights to mainland China. It also confirmed that one of its pilots was removed from his duties since July 30.

The pilot was reportedly among over 40 people charged with rioting, during clashes with police near Beijing’s main representative office in the city.

Hong Kong — a former British colony that was returned to Chinese rule in 1997 — has been struggling to end weeks of protests that have in recent weeks turned increasingly violent and disruptive.

The rallies, which were started to protest a bill that would have allowed people to be extradited to mainland China, have snowballed into a democracy movement, with some even demanding full autonomy from Beijing.

The unrest has frequently crippled the Asian financial hub’s transportation system and last Monday, Cathay cancelled hundreds of flights during a general strike.


Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: grace shao
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Violence is escalating in Hong Kong. Here are three possible outcomes

Riot police fire tear gas, after a march to call for democratic reforms in Hong Kong Edgar Su | ReutersBeijing is set to deliver a formal response to the ongoing Hong Kong protests at 3 p.m. local time on Monday. Such a move would “break a lot of beliefs that Hong Kong is autonomous,” he explained, adding that “investors would probably flee initially.” Wong echoed Bland’s assessment, saying “the situation in Hong Kong is not good. But it’s not to an extent that we need the PLA in Hong Kong.” But


Riot police fire tear gas, after a march to call for democratic reforms in Hong Kong Edgar Su | ReutersBeijing is set to deliver a formal response to the ongoing Hong Kong protests at 3 p.m. local time on Monday. Such a move would “break a lot of beliefs that Hong Kong is autonomous,” he explained, adding that “investors would probably flee initially.” Wong echoed Bland’s assessment, saying “the situation in Hong Kong is not good. But it’s not to an extent that we need the PLA in Hong Kong.” But
Violence is escalating in Hong Kong. Here are three possible outcomes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-29  Authors: grace shao
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Violence is escalating in Hong Kong. Here are three possible outcomes

Riot police fire tear gas, after a march to call for democratic reforms in Hong Kong Edgar Su | Reuters

Beijing is set to deliver a formal response to the ongoing Hong Kong protests at 3 p.m. local time on Monday. Demonstrations started eight weeks ago in the city against a legislative push to allow people in Hong Kong to be extradited to Mainland China, but they’ve snowballed into a movement for full democracy and autonomy from Beijing. Over the weekend, protesters again took to the streets, clashing with authorities. A march on Saturday against an assault the previous weekend by suspected triad gang members ended in violent turmoil as riot police waded in to disperse crowds. On Sunday, riot police fired rounds of tear gas and rubber bullets as demonstrators marched toward the Chinese government’s office in the city. As tensions escalate, China watchers are waiting to see how Beijing will respond. According to Ben Bland, director of the Southeast Asia Project at Sydney-based think tank the Lowy institute, there are three possible scenarios how the demonstrations could pan out from here. Three directions Hong Kong could head from here: Authorities wait out protesters Beijing intervenes directly, imposes martial law Authorities make meaningful concessions The most likely outcome, said Bland, is that Beijing and Hong Kong will try to wait out the protests, arrest rally leaders after the momentum slows down and “slowly bring the city back to order.” It’s unlikely, but possible, that Mainland authorities would directly intervene, Bland said, explaining that Beijing could exercise martial law but that would be the end of the “one country, two systems” principle. That concept was promised to Hong Kong when the former British colony was reunited with the mainland, and guarantees that the city maintains a separate economic and legal system. If Beijing were to send the People’s Liberation Army out into Hong Kong’s streets to “stabilize the situation” (which it suggested last week it could do) that would have “a big negative impact” on markets, according to Jackson Wong, asset manager director at Amber Hill Capital. Such a move would “break a lot of beliefs that Hong Kong is autonomous,” he explained, adding that “investors would probably flee initially.” Wong echoed Bland’s assessment, saying “the situation in Hong Kong is not good. But it’s not to an extent that we need the PLA in Hong Kong.”

On the other end of possibilities, Chinese authorities could give “real concessions” and allow Hong Kongers full democracy — the right to an unrestricted vote for their own parliament and leader — which is what many protesters demand, Bland said. A day after protesters stormed the legislative building, demonstration leaders released a statement making five demands: a full withdrawal of the proposed extradition bill; a retraction of the characterization of the movement as a “riot,” a retraction of the charges against anti-extradition protesters, the establishment of an independent committee to investigate the Hong Kong Police Force’s use of force, and the implementation of universal suffrage for the city’s chief executive officer role and its legislature by 2020. Some experts have pointed out that there has not been a singular protest leader with whom authorities could negotiate, but Bland said that isn’t the issue. At the end of the day, he explained, the Mainland Chinese government has not shown interest in negotiating a resolution. “There is no sign yet from Beijing or the Hong Kong government that they are willing to make any meaningful concessions beyond the suspension of the extradition bill which started this,” said Bland. Sean King, senior vice president of public policy and business development strategy firm Park Strategies offered similar analysis to Bland. Citing the mass killing of pro-democracy student protesters at Tiananmen Square 30 years ago, King said, “Beijing will have no moral qualms about” bringing in the military to intervene. But such an act “would totally lose the Hong Kong populace once and for all,” said King. He said he expects the protests to continue on for weeks or even months before any settlement might be reached. As for why Hong Kong Chief Executive Officer Carrie Lam has yet to step down, King said if she resigns then it would symbolize Beijing admitting defeat. “That would be giving into the masses,” said King. He added that, if mainland authorities give Hong Kongers what they demand, which is full fledged democracy, then it’s conceivable that citizens of Beijing, Shanghai and other mainland cities will ask for the same.

Signals from Beijing


Company: cnbc, Activity: cnbc, Date: 2019-07-29  Authors: grace shao
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Hong Kong protesters march again, this time taking their message to mainland Chinese tourists

Protesters march to the West Kowloon railway station during a demonstration in Hong Kong on July 7, 2019. Protesters in Hong Kong gathered for demonstrations again on Sunday afternoon, in a bid to take their message to mainland Chinese visitors in the city about a controversial extradition bill that has led to widespread anger. CCTV, a mouthpiece for the Chinese government, said the “rare scene” was “condemned by people from all walks of life in Hong Kong,” according to a CNBC translation. Previ


Protesters march to the West Kowloon railway station during a demonstration in Hong Kong on July 7, 2019. Protesters in Hong Kong gathered for demonstrations again on Sunday afternoon, in a bid to take their message to mainland Chinese visitors in the city about a controversial extradition bill that has led to widespread anger. CCTV, a mouthpiece for the Chinese government, said the “rare scene” was “condemned by people from all walks of life in Hong Kong,” according to a CNBC translation. Previ
Hong Kong protesters march again, this time taking their message to mainland Chinese tourists Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-07  Authors: weizhen tan
Keywords: news, cnbc, companies, protesters, kowloon, message, taking, chinese, hong, mainland, station, kong, tourists, citys, railway, west


Hong Kong protesters march again, this time taking their message to mainland Chinese tourists

Protesters march to the West Kowloon railway station during a demonstration in Hong Kong on July 7, 2019.

Protesters in Hong Kong gathered for demonstrations again on Sunday afternoon, in a bid to take their message to mainland Chinese visitors in the city about a controversial extradition bill that has led to widespread anger.

Demonstrators began assembling around 3:30 p.m. HK/SIN, and set off to march through shopping areas popular with Chinese tourists, before ending up at the West Kowloon station, a new high-speed railway station that connects the city with mainland China.

Organizers said about 230,000 people turned out for the demonstration. Police, meanwhile, put the number at roughly 56,000. Hundreds of police lined the route, temporarily closing some roads and diverting public transport.

Organizers of Sunday’s march have said they want to explain their movement to people from the mainland, where news coverage of protests that have wracked Hong Kong for the past month has been heavily restricted.

There was no major coverage of the protests in any Chinese state media until last Tuesday — a day after a group of protesters turned violent and broke into the territory’s legislative council building.

CCTV, a mouthpiece for the Chinese government, said the “rare scene” was “condemned by people from all walks of life in Hong Kong,” according to a CNBC translation.

Lau Wing-hong, one of the protest organizers, told Reuters the rally would be peaceful and would finish after demonstrators arrived at their destination near the train station. There were no plans to enter the station, he said.

Although many of the protesters appeared to have left by nightfall, some continued to march. Live TV footage appeared to show a handful of such demonstrators being detained after being wrestled to the ground by police.

For nearly three weeks now, political tensions in Hong Kong have risen amid protests over an extradition bill that would have allowed some arrested in the city to be sent for trial in mainland China. The bill has since been suspended, but protesters have called for it to be withdrawn completely.

In the most dramatic turn yet, demonstrators ransacked the city’s main legislative building on Monday before they were driven back by police firing tear gas.

Hong Kong was a British colony until 1997, when it became a special administrative region of China under a “one country, two systems” framework with the territory’s legal system independent from the rest of the country. Many citizens of the financial hub have expressed concern that their civil rights are slowly being eroded under Beijing.

The demonstration on Sunday afternoon — finishing at the railway station — was the first protest in the Kowloon area, the peninsula across the city’s harbor. Previous events have been on Hong Kong island, the city’s government and business center.

The development of the West Kowloon station has stirred controversy ahead of its opening last September because passengers go through Chinese immigration and customs inside it. Mainland law applies in the area, roughly a quarter of the station.

While convenient for travelers, some opposition lawmakers argued the move violates the Basic Law, Hong Kong’s mini-constitution under which it retained its own legal system and civil liberties after reverting from British to Chinese rule in 1997.

The high-speed rail network connects Hong Kong to 44 cities in the mainland and that will rise to 58 destinations this week.

Hong Kong’s MTR Corporation, which runs the city’s underground railway, said it would shut all entrances to the station, apart from a specific route for passengers, on Sunday.

— CNBC’s Grace Shao, the Associated Press and Reuters contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-07-07  Authors: weizhen tan
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Hong Kong protest organizers say demonstrations swell to 2 million amid calls for top official to quit

Protesters shine lights from their mobile phones during rally against a controversial extradition law proposal on June 16, 2019 in Hong Kong, China. Hong Kong, June 16, 2019. But demonstrator Man-lok Ng said Hong Kong’s people faced exposure to China’s legal system and, thus, danger. Sunday’s demonstration marks a week of anti-government protests that included scenes of violence — especially on Wednesday – that are rare in Hong Kong. ‘Hong Kong is still alive’


Protesters shine lights from their mobile phones during rally against a controversial extradition law proposal on June 16, 2019 in Hong Kong, China. Hong Kong, June 16, 2019. But demonstrator Man-lok Ng said Hong Kong’s people faced exposure to China’s legal system and, thus, danger. Sunday’s demonstration marks a week of anti-government protests that included scenes of violence — especially on Wednesday – that are rare in Hong Kong. ‘Hong Kong is still alive’
Hong Kong protest organizers say demonstrations swell to 2 million amid calls for top official to quit Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-16  Authors: kelly olsen, vivian kam
Keywords: news, cnbc, companies, china, hong, kong, kongs, million, lam, quit, say, mainland, extradition, crowds, organizers, extraditions, demonstrations, swell, protest, official, plan


Hong Kong protest organizers say demonstrations swell to 2 million amid calls for top official to quit

Protesters shine lights from their mobile phones during rally against a controversial extradition law proposal on June 16, 2019 in Hong Kong, China. Billy H.C. Kwok | Getty Images News | Getty Images

Massive crowds took to the streets of Hong Kong on Sunday in a rally which organizers say drew almost 2 million people to demand the city’s top official resign a day after she suspended — but did not withdraw — unpopular legislation to allow extraditions to China that opponents say must be scrapped. Citizens, many dressed in black, packed subway carriages as they made their way to participate in the march beginning in the late afternoon in hot, muggy weather. It followed a similar one last Sunday in which hundreds of thousands turned out. Crowds also lined up to take ferries across the city’s famed harbor to join the demonstration. The estimate in a statement by the Civil Human Rights Front, the pro-democracy political advocacy group that organized the protest, was almost double what it gave for last week’s. Police, however, announced a considerably lower count, estimating a peak crowd of 338,000 people but qualified that by stressing the figure was for the “original agreed procession route.” The discrepancy was similar to last week when the organizers said a little over one million participated, while police counted 240,000. Huge crowds walked along the approved thoroughfare but others spilled over into adjacent streets. Marchers held numerous signs including ones demanding that Chief Executive Carrie Lam quit, with others denouncing the extradition proposal and alleged police brutality. “Stop killing us,” read one. Marchers also chanted slogans such as “withdraw it” in reference to the legislation.

‘Apologized to the people’

Lam had vowed to press ahead with amendments to local law to allow extraditions to places with which the city has no such arrangements — including mainland China, where many in Hong Kong fear possible entanglement with its courts. But citing injuries to police and protesters in demonstrations that turned violent Wednesday and what Lam called divisions in society wrought by the plan, she announced Saturday at a press conference she was putting the legislation on indefinite hold. And while refusing calls to step down, on Sunday she offered an apology — via a government spokesperson — after avoiding one the day before. In a statement, the spokesperson said that Lam “admitted” that the government had caused “disappointment and grief” to Hong Kong’s people. “The chief executive apologized to the people of Hong Kong for this and pledged to adopt a most sincere and humble attitude to accept criticisms and make improvements in serving the public.” Many in the Asian trade and finance center of 7.4 million people oppose the extradition plan, worrying their legal system and freedoms – legacies of the territory’s history as a British colony – would be compromised by closer judicial ties with China. Hong Kong was guaranteed a high degree of control over its own affairs for at least 50 years under a “one country, two systems” arrangement when Britain ceded sovereignty to China on July 1, 1997. But local unease over increasing mainland influence has steadily grown.

A crowd of protesters marches in Hong Kong, part of an anti-government demonstration demanding the withdrawal of proposed legislation that would allow extraditions to mainland China. Hong Kong, June 16, 2019. Kelly Olsen | CNBC

Foreign business groups and governments, including the United States, also oppose the extradition plan, stressing concerns that any erosion to Hong Kong’s legal system could make it a less attractive place for banks and companies to operate. Lam and other government officials repeatedly offered assurances that adequate safeguards would guarantee protection from possible human rights abuses and that only fugitives accused of serious crimes could be extradited. The government also eliminated a number of economic-related offenses from the bill to lessen concern in the business community. China supported the plan and said that Hong Kong’s rights and freedoms are safe. But demonstrator Man-lok Ng said Hong Kong’s people faced exposure to China’s legal system and, thus, danger. “So anyone of us could be at risk if this bill would be passed,” he told CNBC.

A mourner lays flowers at the site of a makeshift shrine in Hong Kong near where a man reportedly fell to his death after protesting against a government proposal to allow extraditions to mainland China. Hong Kong, June 16, 2019. Kelly Olsen | CNBC

The mood on Sunday was one of anger at Lam but also sorrow after the death of a protester on Saturday after he reportedly fell from the top of a shopping mall where he had unfurled a banner demanding the plan be withdrawn. Ahead of the protest, hundreds of people paid their respects at a makeshift memorial set up outside the mall, offering flowers, prayers and incense. Numerous marchers carried white flowers they planned to offer when passing by. Kelly Wong, who thinks Hong Kong is completely under China’s control, said she felt “angry” at Lam for saying she would listen more to the opinions of citizens but with the aim of still eventually passing the bill. “So I think we should come out and express our voice,” Wong said near the memorial before the protest. Sunday’s demonstration marks a week of anti-government protests that included scenes of violence — especially on Wednesday – that are rare in Hong Kong. Crowds on that day estimated by police at more than 10,000 people surrounded the local legislature to stop debate on the bill.

‘Hong Kong is still alive’


Company: cnbc, Activity: cnbc, Date: 2019-06-16  Authors: kelly olsen, vivian kam
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Shares in China jump on news of boost to infrastructure investment

Shares in mainland China surged on Tuesday, as a signal of an infrastructure boost from Beijing outweighed comments from U.S. President Donald Trump on the ongoing trade war between the two economic powerhouses. The Shanghai composite rose 2.58% to close at about 2,925.72 and the Shenzhen component jumped 3.74% to finish its trading day at 9,037.67. The CSI 300, which tracks the largest companies on the mainland, also gained 3.01% to close at approximately 3,719.28. Hong Kong-listed shares of Ch


Shares in mainland China surged on Tuesday, as a signal of an infrastructure boost from Beijing outweighed comments from U.S. President Donald Trump on the ongoing trade war between the two economic powerhouses. The Shanghai composite rose 2.58% to close at about 2,925.72 and the Shenzhen component jumped 3.74% to finish its trading day at 9,037.67. The CSI 300, which tracks the largest companies on the mainland, also gained 3.01% to close at approximately 3,719.28. Hong Kong-listed shares of Ch
Shares in China jump on news of boost to infrastructure investment Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-11  Authors: eustance huang
Keywords: news, cnbc, companies, mainland, close, investment, shenzhen, boost, china, trading, shares, jump, rose, soared, infrastructure, index, local


Shares in China jump on news of boost to infrastructure investment

Shares in mainland China surged on Tuesday, as a signal of an infrastructure boost from Beijing outweighed comments from U.S. President Donald Trump on the ongoing trade war between the two economic powerhouses.

The Shanghai composite rose 2.58% to close at about 2,925.72 and the Shenzhen component jumped 3.74% to finish its trading day at 9,037.67. The Shenzhen component soared 3.708% to close at 1,538.23. The CSI 300, which tracks the largest companies on the mainland, also gained 3.01% to close at approximately 3,719.28.

The moves on the mainland came after state news agency Xinhua reported Monday that China would enable local governments to use special bonds to finance certain investment projects, citing a “notice on local government bonds.”

Over in Hong Kong, the Hang Seng index added 0.83%, as of its final hour of trading. Hong Kong-listed shares of China Construction Bank rose 1.43%.

Elsewhere, Japan’s Nikkei 225 close 0.33% higher to close at 21,204.28, while the Topix index added 0.54% to finish its trading day at 1,561.32. South Korea’s Kospi rose 0.59% to close at 2,111.81 as shares of LG Electronics soared 6.03%.

Over in Australia, shares traded higher after returning from a holiday. The ASX 200 advanced 1.59% to close at 6,546.30 as most sectors saw gains.


Company: cnbc, Activity: cnbc, Date: 2019-06-11  Authors: eustance huang
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HSBC plans more China tech jobs in push for market share

HSBC Holdings PLC plans to add more than a 1,000 jobs this year at its technology development center in China, as the Asia-focused lender seeks to bolster its presence in the world’s second largest economy. Europe’s biggest bank by assets will boost headcount at its technology centers in Guangzhou, Shanghai and Xi’an by 14% from a current 7,000-strong workforce, said HSBC Chief Information Officer Darryl West. HSBC’s expansion plan in China, a key market for the bank, comes amid growing use of t


HSBC Holdings PLC plans to add more than a 1,000 jobs this year at its technology development center in China, as the Asia-focused lender seeks to bolster its presence in the world’s second largest economy. Europe’s biggest bank by assets will boost headcount at its technology centers in Guangzhou, Shanghai and Xi’an by 14% from a current 7,000-strong workforce, said HSBC Chief Information Officer Darryl West. HSBC’s expansion plan in China, a key market for the bank, comes amid growing use of t
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HSBC plans more China tech jobs in push for market share

HSBC Holdings PLC plans to add more than a 1,000 jobs this year at its technology development center in China, as the Asia-focused lender seeks to bolster its presence in the world’s second largest economy.

Europe’s biggest bank by assets will boost headcount at its technology centers in Guangzhou, Shanghai and Xi’an by 14% from a current 7,000-strong workforce, said HSBC Chief Information Officer Darryl West.

In recent years the London-based bank has spent $3 billion annually on its group technology operations which employ 40,000 people worldwide, and West said annual investments of $3-$3.5 billion are planned over the next few years.

Many global banks set up low-cost hubs in China and India more than a decade ago to maintain their complex worldwide information technology networks, but these centers have now become a core part of their operations.

The centers develop and implement risk and fraud management technologies, as well as digital applications that make it easier for banks to attract customers and deliver faster and more secure services.

HSBC’s expansion plan in China, a key market for the bank, comes amid growing use of technology in the financial sector – from payments to transactions.

At stake is a bigger share of the billions of dollars worth of retail and corporate banking business in a major financial market with a growing customer base.

“There is a lot more we can do with technology in mainland China. The level of technology adoption and innovation in China is way ahead of other markets,” West told reporters during a tour of HSBC’s technology center in the southern city of Guangzhou last week.

“We see mainland China as a tremendous source of talent, not just for the local market but our technology operations globally. We are hiring very aggressively here,” he added.


Company: cnbc, Activity: cnbc, Date: 2019-05-21
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Mainland China shares bounce as stimulus measures boost confidence

Mainland Chinese shares bounced strongly on Wednesday afternoon as markets took hope in stimulus measures announced by Beijing on Tuesday. The Shanghai composite surged 1.57 percent to close at 3,102.10 and the Shenzhen component rose 1.09 percent to end the day at 9,700.49. Stimulus measures announced by Beijing on Tuesday included infrastructure spending and cuts in taxes and fees worth nearly 2 trillion yuan ($289.28 billion). Shares of Fast Retailing, the company behind the Uniqlo chain of a


Mainland Chinese shares bounced strongly on Wednesday afternoon as markets took hope in stimulus measures announced by Beijing on Tuesday. The Shanghai composite surged 1.57 percent to close at 3,102.10 and the Shenzhen component rose 1.09 percent to end the day at 9,700.49. Stimulus measures announced by Beijing on Tuesday included infrastructure spending and cuts in taxes and fees worth nearly 2 trillion yuan ($289.28 billion). Shares of Fast Retailing, the company behind the Uniqlo chain of a
Mainland China shares bounce as stimulus measures boost confidence Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-06  Authors: eustance huang
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Mainland China shares bounce as stimulus measures boost confidence

Mainland Chinese shares bounced strongly on Wednesday afternoon as markets took hope in stimulus measures announced by Beijing on Tuesday.

The Shanghai composite surged 1.57 percent to close at 3,102.10 and the Shenzhen component rose 1.09 percent to end the day at 9,700.49. The Shenzhen composite jumped 1.49 percent to close at 1,660.41.

Hong Kong’s Hang Seng index also traded in positive territory, adding 0.17 percent.

Stimulus measures announced by Beijing on Tuesday included infrastructure spending and cuts in taxes and fees worth nearly 2 trillion yuan ($289.28 billion).

The rest of Asia was more subdued. Japan’s Nikkei 225 declined 0.6 percent to close at 21,596.81, and the Topix slipped 0.25 percent to end at 1,615.25. Shares of Fast Retailing, the company behind the Uniqlo chain of apparel stores, fell more than 2 percent.

In South Korea, the Kospi slipped 0.17 percent to close at 2,175.60 with industry heavyweight Samsung Electronics recovering slightly to slip 0.56 percent, from steeper declines earlier.

Australia’s ASX 200 rose 0.64 percent, but the Australian dollar dropped to a two-month low of $0.7031, last changing hands at $0.7034. Data on Wednesday showed the country’s economy slowed sharply in the second half of last year.

“Overall, it was a pretty weak print,” Diana Mousina, senior economist at AMP Capital, told CNBC’s “Squawk Box” on Wednesday following the release of Australian GDP data.

“It’s really in line with the slowing global growth that we’ve had over the second half of the year and I guess that the difficulty for us is reconciling the very strong employment numbers that Australia has had with the weakness in GDP numbers,” Mousina said.


Company: cnbc, Activity: cnbc, Date: 2019-03-06  Authors: eustance huang
Keywords: news, cnbc, companies, bounce, measures, rose, mainland, shares, confidence, close, boost, second, mousina, shenzhen, slipped, half, stimulus, numbers, china


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Mainland Chinese stocks are gaining influence on global indexes. That may drive money into China

Global index provider MSCI’s announcement that it will quadruple the weighting of large-cap Chinese shares in its benchmark indexes is likely to drive more money into the still highly regulated mainland market, investors and analysts said. In a widely expected move, MSCI said Thursday that it will increase the weighting of China A-shares — yuan-denominated stocks traded on the mainland — from 5 percent to 20 percent in three steps to November of this year. Investors and analysts welcomed the new


Global index provider MSCI’s announcement that it will quadruple the weighting of large-cap Chinese shares in its benchmark indexes is likely to drive more money into the still highly regulated mainland market, investors and analysts said. In a widely expected move, MSCI said Thursday that it will increase the weighting of China A-shares — yuan-denominated stocks traded on the mainland — from 5 percent to 20 percent in three steps to November of this year. Investors and analysts welcomed the new
Mainland Chinese stocks are gaining influence on global indexes. That may drive money into China Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-01  Authors: kelly olsen, china tourism press, the image bank, getty images
Keywords: news, cnbc, companies, weighting, influence, chinese, note, markets, shares, mainland, money, stocks, gaining, indexes, china, opening, global, drive, market, msci


Mainland Chinese stocks are gaining influence on global indexes. That may drive money into China

Global index provider MSCI’s announcement that it will quadruple the weighting of large-cap Chinese shares in its benchmark indexes is likely to drive more money into the still highly regulated mainland market, investors and analysts said.

In a widely expected move, MSCI said Thursday that it will increase the weighting of China A-shares — yuan-denominated stocks traded on the mainland — from 5 percent to 20 percent in three steps to November of this year.

Chinese shares, which slumped sharply in 2018, have been on a tear this year, rising 14 percent in February alone on factors including optimism over progress in ending the U.S.-China trade war and expectations for the expanded MSCI inclusion.

Investors and analysts welcomed the news as a significant step in the broader opening of Chinese markets to international funds. They still remain subject to tight capital controls.

“Overall, the final inclusion plan continues to look as aggressive as its proposal, marking another milestone in China’s capital market opening up,” Citi China equity strategist Jerry Peng said in a note dated Thursday, adding that the U.S. bank expects “strong foreign inflows to China’s onshore market.”

Chinese A-shares were included in the MSCI Emerging Markets Index for the first time last year. Investors can access them through an arrangement between the Hong Kong and mainland Chinese markets.

Gao Ting, head of China strategy at UBS Securities, said in a note Friday that the MSCI changes would likely spur $67 billion in inflows to the A-share market this year alone.


Company: cnbc, Activity: cnbc, Date: 2019-03-01  Authors: kelly olsen, china tourism press, the image bank, getty images
Keywords: news, cnbc, companies, weighting, influence, chinese, note, markets, shares, mainland, money, stocks, gaining, indexes, china, opening, global, drive, market, msci


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China’s ‘pent up demand’ may prop up Hong Kong’s property market in 2019

Hong Kong property prices have fallen sharply and look set to continue their downward trend until the end of 2019— but there’s no danger of an all-out crash, experts said Monday. That’s because resilient local economic fundamentals and pent-up demand from mainland Chinese who have moved to Hong Kong will likely stem the decline next year, they told CNBC. “If you look at the basic fundamentals, unless we get a financial crisis in China or something like that, I think we’re looking at a correction


Hong Kong property prices have fallen sharply and look set to continue their downward trend until the end of 2019— but there’s no danger of an all-out crash, experts said Monday. That’s because resilient local economic fundamentals and pent-up demand from mainland Chinese who have moved to Hong Kong will likely stem the decline next year, they told CNBC. “If you look at the basic fundamentals, unless we get a financial crisis in China or something like that, I think we’re looking at a correction
China’s ‘pent up demand’ may prop up Hong Kong’s property market in 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: kelly olsen, getty images, -peter churchouse
Keywords: news, cnbc, companies, fundamentals, mainland, kong, end, crisis, china, kongs, economic, 2019, property, look, hong, demand, market, chinas, pent, prop


China's 'pent up demand' may prop up Hong Kong's property market in 2019

Hong Kong property prices have fallen sharply and look set to continue their downward trend until the end of 2019— but there’s no danger of an all-out crash, experts said Monday.

That’s because resilient local economic fundamentals and pent-up demand from mainland Chinese who have moved to Hong Kong will likely stem the decline next year, they told CNBC.

“If you look at the basic fundamentals, unless we get a financial crisis in China or something like that, I think we’re looking at a correction — not a crisis in the Hong Kong property market,” said Peter Churchouse, founder of Hong Kong-based real estate investment firm Portwood Capital.

Housing is a key economic component in crowded and land-scarce Hong Kong, where about 7.4 million people inhabit small, mountainous islands and a craggy peninsula bordering the southern end of mainland China.


Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: kelly olsen, getty images, -peter churchouse
Keywords: news, cnbc, companies, fundamentals, mainland, kong, end, crisis, china, kongs, economic, 2019, property, look, hong, demand, market, chinas, pent, prop


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