Hong Kong financial firms brace for disruptions as protests intensify

[sgd]

damaging in terms of road blocks and diversion. My friend just came back from HK said went to see the "occupy central" saw people just sitting around.

President Xi government really hawkish.

[brattzz]

hope Beijing just leave the protesters alone, after a few days, they will be tired and will want to go home....

[Dosser]

There may be a lull, but the problems are too deep rooted for it all just to go away.

Hong Kong society has ossified into three broad groups. At the top are the tycoons (plus HSBC and the Jockey Club), a very small group that control a huge proportion of the economy. Then there is a professional/managerial elite. This group is mostly fluently bilingual (Cantonese/English) or trilingual (Cantonese/English/Mandarin). Many of them are part of the pre-1997 diaspora that returned after 1997, but hold onto their Australian/Canadian/British passports, send their kids to International schools and to overseas universities. For historical reasons, fluent English is a huge advantage in the professions and the civil service, as well as international companies.The mass of the population, with, at best, very limited English or Mandarin has limited opportunities. These broad categories of society are now effectively hereditary, creating a society more rigid than Edwardian England. The benefits flow to the top two groups, while the mass is squeezed.

Much of this comes from history and global forces, but the government should at least take measures to improve the lot of the mass, and provide better opportunities for them. The reverse has happened, or is perceived to have happened. A key issue is housing. The problem is only superficially due to Mainlanders buying up property - it is the supply side that has failed. The government greatly reduced the building of public housing after 2000, and even sold off land previously designated for public housing to private developers....and failed to develop a new land bank. To be fair to CY this is an area he has been doing a lot to address, but he started with a bare cupboard, so it is taking time. The government introduced a Mandatory Provident Fund, but it seems to me to be poorly designed for the contributor, while giving the providers significant fee income. [I put my MPF into a tracker fund, only to find that the fund significantly under performs the Index. How is it possible to have a tracker fund that does not track??? I much prefer the CPF scheme in Singapore.] Other things help to build the impression that the system is gamed in favour of the tycoons and status quo: for example, the Rafael Hui case, direct consultations between Beijing and the top Tycoons.

One of the effects of the disassociation of government and the general populace has been widespread law breaking, or at least failure to observe the law. This can be seen all over the New Territories in illegal structures, plus cases of villagers blocking off public access, destroying protected areas of mangrove.

hope Beijing just leave the protesters alone, after a few days, they will be tired and will want to go home....

[CityFarmer]

One cleared, and more to be cleared...

Traffic flows back into HK business district after police remove barriers

HONG KONG - Hong Kong police reopened one of the city's main thoroughfares to traffic on Tuesday after clearing barricades erected by democracy protesters who have occupied streets in the heart of the Chinese-ruled city for two weeks.
...
http://www.todayonline.com/world/traffic...e-barriers

[greengiraffe]

No worries... sure to clear all and will be remember as another historical event.

HK has never been a democracy since the colonial days.

Its just a $ making place where people just try to make as much as possible.

Reality will return and all shall be normal. All hail $ and the need for survival.

Personally, political inclination in a modern peaceful world is about $ and the power to control it.

No Vested Political Interests
In Godfathers I Trust
GG

One cleared, and more to be cleared...

Traffic flows back into HK business district after police remove barriers

HONG KONG - Hong Kong police reopened one of the city's main thoroughfares to traffic on Tuesday after clearing barricades erected by democracy protesters who have occupied streets in the heart of the Chinese-ruled city for two weeks.
...
http://www.todayonline.com/world/traffic...e-barriers

[greengiraffe]

Protests likely to benefit Singapore

Max Mason
587 words
15 Oct 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.

Singapore's financial markets could stand to benefit from the mass ­pro-democracy protests that have risen up across Hong Kong, Saxo Capital ­Markets Asia Macro Strategist Kay Van-Petersen says.

While many market pundits have pointed to Shanghai's outperformance of both Hong Kong's Hang Seng Index and Singapore's Strait Times Index in the last month, Mr Van-Petersen said the call was too early.

Since the beginning of September, Shanghai's composite index has jumped nearly 6 per cent, while Hong Kong has slumped close to 7 per cent and ­Singapore has dipped nearly 3 per cent.

"People have been talking about Shanghai taking over Hong Kong for years and until the rule of law ­and transparency in doing business improves drastically in Shanghai and the mainland, it's just not going to ­happen," Mr Van-Petersen told The ­Australian Financial Review.

There is still a lot work to be done within China to convince investors that it has the proper checks and balances in place to make sure investors are not fleeced. But desire for exposure to China has driven investors to Hong Kong and Singapore markets.

Earlier this year, Singapore became just the second place able to have Chinese companies list directly on its exchange. Hong Kong is the only other market.

To list on the Singapore Exchange, Chinese companies need to pass ­regulatory hurdles that are required for Singaporean companies, providing investors with a more regulated and transparent exposure to China.

"I personally don't think that [the Hong Kong protests] tilts anything in favour of Shanghai. If anyone is to gain from this, it's Singapore," Mr Van-Petersen said.

"If you and I were to quit our jobs today and open up some kind of quasi hedge fund media venture and we're trying to pick between Hong Kong and Singapore, why take that additional risk that we've just seen in Hong Kong?"

In order for Shanghai to truly compete with Hong Kong, the rule of law and ease of doing business need to be improved, Mr Van-Petersen said.

"[There is also] the currency risk, in Hong Kong you don't have that, you know the risks because it's pegged to the US ­dollar, Singapore is the same. In China, that's another element that's not as transparent as other pegged regimes and that's something that has to change over time, and granted it is changing."

Protests in the formerly British-controlled city have escalated since last ­September when the Chinese government outlined a new election framework for the election of Hong Kong's chief ­executive in 2017.

But the protests are at risk of losing momentum, with analysts noting the majority of Hong Kong's businesses is getting tired of the interruptions.

"In the end it was very strategic for them to take a step back and let ­people vent out their frustration and have their say, but we are now also getting to a point where businesses are suffering and people just want to get back to it," Mr Van-Petersen said.

"As soon as the world started to catch on and it was on everyone's news ­channel, there was no way that China was going to let them have their way. Because people would say, 'well, Hong Kong ­managed to change their mind', then Macau would be next and then you'd see more protesting in Beijing and ­Shanghai."


Fairfax Media Management Pty Limited

Document AFNR000020141014eaaf00024

[CityFarmer]

Stability is the enemy of financial market, even so for financial hub. Hong Kong and Singapore are the key two hubs which will benefit from China financial liberalization. If Hong Kong can't sustain its stability, Singapore will benefit.

That is the key part of my SGX story. I didn't foresee the protest, but I did foresee more other instability factors in play in Hong Kong, especially in politic.

(vested in SGX)

Protests likely to benefit Singapore

Max Mason
587 words
15 Oct 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.

Singapore's financial markets could stand to benefit from the mass ­pro-democracy protests that have risen up across Hong Kong, Saxo Capital ­Markets Asia Macro Strategist Kay Van-Petersen says.
...

[CityFarmer]

A tough job for the police officer. The need to remain calm and patience, amid the prolonged protest, is a very challenging act. Having said so, the beating and kicking a handcuffed protester, isn't right...

Hong Kong tension rises with police beating of protester

HONG KONG - Hong Kong authorities said on Wednesday police involved in the beating of a pro-democracy protester would be removed from their positions after footage of the overnight incident went viral, sparking outrage from some lawmakers and the public.

Police said they arrested 45 protesters in the early hours, using pepper spray on those who resisted, as they cleared a main road in the Chinese-controlled city that had been barricaded by pro-democracy demonstrators with concrete slabs.

Several officers appeared to beat and kick a handcuffed protester for several minutes after dragging him to a dark corner next to the protest site in footage aired by television broadcaster TVB.
...
http://www.todayonline.com/world/hong-ko...-arrest-45

[greengiraffe]

Li Ka-shing tells HK protesters to 'follow the law'
DOW JONES NEWSWIRES OCTOBER 15, 2014 9:15PM

Hong Kong tycoon Li Ka-shing said on Wednesday that the pro-democracy student protesters in Hong Kong have succeeded in conveying their message, and urged them to immediately return home to their families.

In his first comments since the protests began nearly three weeks ago, Asia's richest man said he understands the passion conveyed by the Hong Kong students. "But their pursuit should be guided by wisdom; everyone should follow the law," he said in a statement.

He said since the city's handover to China from the U.K. in 1997, the "one country, two systems" regime has helped preserve Hong Kong's way of life.

Mr Li, aged 86, is the most conspicuous of Hong Kong's tycoons, who collectively dominate the city's economy and all have significant business interests in mainland China. They have generally backed or been silent on Beijing's policies, and the group -- including business leaders in real estate, banking and manufacturing -- has significant power in choosing Hong Kong's leaders.

Mr Li, who controls many Hong Kong businesses ranging from supermarkets to a power utility, pleaded for the protesters to remain calm, urging them "not to let today's passion become tomorrow's regret."

His comments come on the same day that a video depicting police officers allegedly beating a protestor drew public outrage, and offered the potential to inject fresh momentum into the movement.

[CityFarmer]

Latest update...

Hong Kong police clear barricades in Mong Kok area, meet little resistance

HONG KONG - Hong Kong police carried out a dawn raid to remove barricades and other obstacles erected by pro-democracy protesters around the bustling area of Mong Kok, moving in while many demonstrators were still asleep.

Friday's operation, across the harbour from the main demonstration site near the office of Hong Kong's leader, was the latest to dismantle barricades after nearly three weeks of protests that have paralysed parts of the Asian financial hub.

Police encountered little resistance, unlike recent days when there has been violent clashes at other protest sites.
...
http://www.todayonline.com/world/hong-ko...-arrest-45