Hong Kong financial firms brace for disruptions as protests intensify

[greengiraffe]

HK tycoons can be part of protest solution
Relaxing their grip on special corporate votes could ease divisions over electoral reform

By
Una Galani
LIVE TALK: Pro-democracy protesters watch Hong Kong's Secretary of Justice Rimsky Yuen speak as he is projected onto a large screen outside the Central Government Offices in the Admiralty district on Tuesday. PHOTO: BLOOMBERG
22 Oct5:50 AM
Hong Kong

HONG KONG'S tycoons could play a part in ending the stand-off with pro-democracy activists. The city's business leaders have an outsize influence over local politics. Relaxing their grip on special corporate votes could ease divisions over electoral reform as well as tensions over rampant inequality.

Hong Kong's big businesses have generally resisted electoral reform, in line with China's desire to keep a firm grip on any increased democratic representation in the former colony. Hong Kong Chief Executive Leung Chun-ying summed up that view on Oct 20 when he said that free elections would give poorer residents a dominant voice.

Yet as the protests rumble into their fourth week, that approach looks increasingly unsustainable. For Hong Kong's business leaders, giving up a little now could help avoid a bigger confrontation later.

Protests erupted after Beijing set strict guidelines for the election of the city's next chief executive in 2017, to be conducted by universal suffrage. Under that plan, responsibility for nominating candidates will rest with a 1,200-strong committee similar to the one that currently elects Hong Kong's chief executive.

Most of the committee's members are chosen by a group of around 239,000 voters who represent industries ranging from agriculture and fisheries to finance - a fraction of Hong Kong's registered electorate of 3.5 million people.

Of these, almost 16,000 are corporate voters, where a company, rather than an individual, casts the ballot. Because of the way the seats and votes are allocated, these companies decide more than 40 per cent of the seats even though they hold less than 7 per cent of the votes.

One idea is for companies to loosen their grip on their votes. For example, they could allow ordinary employees to decide how the votes should be cast. Though the system would fall well short of full democracy, it could help to make the committee for selecting Hong Kong's chief executive marginally more representative within the strict parameters set by Beijing.

Business leaders may baulk at such concessions. It's also far from clear that they would be sufficient to mollify protesters. Nevertheless, tycoons have a role to play in ending the current standoff by showing that they are not an obstacle to reform. That could form part of a broader compromise to help restore stability to Hong Kong, and preserve their long-term interests.

[sykn]

Regarding the impact of the HK protests on SGX listed companies based in HK, reporting season is coming next month - I wonder if business in companies like HPH Trust and Valuetronics have been adversely affected in this last month.

[yeokiwi]

Leung said that if candidates were nominated by the public then the largest sector of society would likely dominate the electoral process.

“If it’s entirely a numbers game and numeric representation, then obviously you’d be talking to the half of the people in Hong Kong who earn less than US$1,800 a month [HK$13,964.2],” Leung said in comments published by the WSJ, the FT and the INYT.

Hong Kong = Animal Farm?

"All Hongkongers are equal, but some hongkongers are more equal than others".

[Temperament]

To me though "Animal Farm" is poking fun at communism, i think what ever "ism" or democracies there always have some animals so much more equal than other animals. Only some are not so obvious or blatantly obscene (unfair) only. Go and ask our $Millionaire Ministers.

[Art or Science]

Am in Mongkok. Most of the shops are opened. Hong kongers and tourists are seemingly oblivious to the ongoing demonstrations and tons of police vans as they continue to shop. One street away from Nathan road, some elderly women were begging for money right outside MTR station exit..

[specuvestor]

Looks like David Webb is for the approach of doing within the system as well. We can't always a revolution even though it sounds sexy to the hot blooded youths. Sometimes I think people need to know what they are fighting for: a no-win solution or an acceptable compromise that achieves the objective

"The Basic Law makes clear that a nominating committee is required, so introducing civic nomination to bypass this would involve Basic Law amendment and is practically a non-starter. However, that does not completely rule out the idea of civic recommendation, where a name with sufficient subscribers could be submitted to the Nominating Committee.

The students in today's talks would be well-advised not to keep pushing for civic nomination but instead they should insist on reducing the nomination threshold."

As someone mentioned, HKers didn't have Universal Suffrage under British rule either. So the issue is actually China broke their promise under the agreement that formed the basis of the Basic Law.

They have attained their objective by humiliating Beijing on 1 Oct... think time for them to step down and fight another day. I would be concerned if they continue to fight on substantially after this weekend.

Incidentally Anson Chan also suggested what I think should be the right approach:

"“So whilst we dispute this, we say, ‘Let’s try and see whether we can’t broker a compromise solution.’ So we spent one year checking with the different aspects of the community, listening to their views, and we arrived at a set of proposals that are fully compliant with the Basic Law, with no civil nominations but a chance to broaden the representativeness of the nominating committee. Because this is what the Basic Law prescribes."

http://www.theguardian.com/world/2014/au...n-politics

[CityFarmer]

The last thing HKers want is, the similar situation as in Thailand, a yellow/red confrontation which escalate social unrest. Hong Kong's tycoons should remain silent, in order not to complicate the issue, similarly for China gov.

Hong Kong’s tycoons silent on democracy protests

HONG KONG — As a struggle over Hong Kong’s political future unfolds, the men and women who arguably wield the most influence with Beijing, and financially have the most at stake, have maintained a studied silence on the outcome.

Wary of upsetting China’s leaders, who could dismantle or damage their businesses, and concerned about offending the Hong Kong public, many of whom are already resentful, they have instead retreated behind the tinted windows of their limousines and the elaborate gates of their hillside estates.
...
http://www.todayonline.com/chinaindia/ch...y-protests

[yeokiwi]

Looks like David Webb is for the approach of doing within the system as well. We can't always a revolution even though it sounds sexy to the hot blooded youths. Sometimes I think people need to know what they are fighting for: a no-win solution or an acceptable compromise that achieves the objective

It is a better idea than banging against the Great Wall and definitely more acceptable to CCP.
The hong kong experiment is very important to China. China, despite its current economy achievements, cannot remain in this mode of governance permanently.

[specuvestor]

Like i posted elsewhere, actually from a purely observer and pragmatist point of view, a communist structure for the next 20 years is probably good for China as Chinese by nature is already capitalist enough At best thereafter they follow Singapore's type of loosening rather than go down the slippery road of ineffective governance like Taiwan or India

[CityFarmer]

It seems that Hong Kong protesters is out-of-control, even for their leaders...

Hong Kong protesters scrap poll on what to do next

HONG KONG — An electronic ballot to determine the way forward for the Occupy Central movement was unexpectedly cancelled today (Oct 26) hours before voting was due to start, with leaders of the movement saying they hadn’t properly consulted with the demonstrators before calling the referendum.
...
http://www.todayonline.com/chinaindia/ch...expectedly