More Hong Kong companies say business impacted by mass protests

[cyclone]

More Hong Kong companies say business impacted by mass protests

AUGUST 8, 2019 / 6:13 PM 

HONG KONG (Reuters) - Conglomerate Swire Pacific (0019.HK) became the latest major Hong Kong company to voice concern about the impact of protests in the city on business activity, saying they are having direct and indirect impact on demand on a number of its businesses.

The comments by Swire, whose business spans retail to property to airlines, come after similar concerns raised by Cathay Pacific Airways Ltd (0293.HK) and Hongkong and Shanghai Hotels (0045.HK)’s on Wednesday. Swire owns 45% of Cathay Pacific, Refinitiv data shows.

“The protests in Hong Kong have had some effect on retail sales at our malls, particularly at Pacific Place. If the protests continue, sales are likely to continue to be affected,” Michelle Low, Swire Pacific finance director said in the interim results statement on Thursday, referring to its high-end shopping mall in Admiralty, a financial district where many of the mass protests took place.

“Trading conditions for our hotels are expected to be stable in the second half of 2019, except that occupancy in Hong Kong has been affected somewhat by the protests and this is likely to continue if the situation persists.”

Swire said the global trade tensions were also causing uncertainty.

Millions have taken to Hong Kong streets in anti-government protests that have intensified since mid-June, at times forcing banks, stores, shopping malls, restaurants and even government buildings to close as the demonstrations degenerated into violent clashes between police and activists.

Hong Kong’s Secretary for Commerce and Economic Development Edward Yau said on Thursday the drop in inbound tourists accelerated in the past few weeks, with the first week of August declining 31% from a year ago, compared to just single digit percentage drop in mid-July.

He said the logistics and retail sectors together employ over 1 million people in Hong Kong, and it could hurt the city’s employment if the sectors continue to be under pressure.

Travel Industry Council chairman Jason Wong told Reuters the number of tours from mainland China has fallen 40% to about 140 tours per day in the first week of August, from about 230 tours a day in the same period last year.

Wong also expressed concern that the number of business visitors would reduce as some business meetings and conferences were seen scaling back the size or being canceled.

“Many related workers may need to take no pay leave and their income will be affected,” Wong said.

Also on Thursday, MTR Corp Ltd (0066.HK) and Giordano International Ltd (0709.HK) said in their interim results statement that the current social unrest could weigh on the their business.

More details in https://www.reuters.com/article/us-hongk...UY1BC?il=0

[soros]

It needs the HK trade association and local HK business organisations and members in the legislative to unite and speak out to Carrie Lam , the HK Government has responsibility to protect the "one country two systems policy", the HK$ , HK laws and courts , HK business , HK Tax system etc during the entire 50 years period before 2047.

[soros]

Chief Executive Carrie Lam met reporters at the Government Headquarters, saying that she met with 33 representatives from local business associations, banks, retail industry and the tourism industry, who all worried about the current political and economic environment in Hong Kong.

Participants in the meeting all agreed that the first thing to do right now is to stop the violence and put down disagreements, Lam said.

The Executive Council will resume their meeting session next Tuesday (Aug 13th) in view of needs for members' advice on the current situation, stated Lam, who also mentioned that bold relief measures would be unveiled in the Policy Address which she hopes would recover and add momentum to the economy.

Reported by aastocks website on 9 Aug 2019.

[soros]

Posted on aastocks website on 13 Aug 2019.

Chief Executive Carrie Lam, seeing reporters ahead of Chief Executive in Council meeting this morning (13 August), said the situation of Hong Kong in the past week is worrying, viewing Hong Kong people may still need a bit of time to heal from their wounds.

Choking after delivering her speech, Lam expressed hope that citizens could put aside preconceived ideas, and asked metaphorically whether they want to see the city burning down to ashes.

Lam wished the government could mend rift in society and start dialogue when calmness is restored.

As to reporters' inquiry about the disability of HKSAR government to withdraw the bill of the amendment on Fugitive Offenders Ordinance (FOO), Lam declined to give any response.

http://www.aastocks.com/en/stocks/news/a...1/top-news

[soros]

Do you know about Greek Mythology ? Have you heard about Pandora's box ? The meaning , copied below , was posted on the internet.

" The god Prometheus stole fire from heaven to give to the human race, which originally consisted only of men. To punish humanity, the other gods created the first woman, the beautiful Pandora. As a gift, Zeus gave her a box, which she was told never to open. However, as soon as he was out of sight she took off the lid, and out swarmed all the troubles of the world, never to be recaptured. Only Hope was left in the box, stuck under the lid. Anything that looks ordinary but may produce unpredictable harmful results can thus be called a Pandora's box."

I think Carrie Lam's Extradition bill has become a Pandora's box in 2019 and released all of the troubles faced by HK residents into the world .

If Carrie has heard about Pandora's box and Hope was stuck under the lid , she would realise that she has to open the lid more and release some HOPE.

[BRT]

'When will you die?' Hong Kong leader grilled at press conference
https://www.businesstimes.com.sg/governm...conference

messy times

[cyclone]

Hong Kong protests spark capital outflow fears, unnerve markets

Noah Sin
AUGUST 13, 2019 / 4:21 PM

HONG KONG (Reuters) - Apprehension over capital outflows triggered by escalating political unrest has driven Hong Kong’s stock market to its lowest this year and pressured its currency, with analysts warning of more weakness.

The Hang Seng Index .HSI fell 2.1% to 25,281.30 points on Tuesday, down 16% from the year's peak, and is at lows last seen in early January.

It has fallen over 8% since June 12, when street clashes escalated between anti-government demonstrators and the police.

Now into their third month, those protests ground Hong Kong’s airport to a halt this week and forced flight cancellations even as both protester and police tactics turned increasingly violent.

Concerns over China’s slowdown, as the Sino-U.S. trade war remains unresolved, have also dragged on Hong Kong’s economy. The Hang Seng is Asia’s second-worst performer after South Korea’s this quarter.

Other risk indicators in markets are flashing red.

The Hong Kong dollar HKD=D3, pegged to the greenback at 7.75-7.85, was trading at 7.8465.

“The recent mounting social unrest was fuelling political risk and in turn capital outflow pressure,” Ken Cheung, chief Asian FX strategist at Mizuho Bank, said in a note on Tuesday. “We do not rule out HKD falling to 7.85 level again.”

Hong Kong leader Carrie Lam pleaded on Tuesday for a stop to the protests, having warned of an economic “tsunami” engulfing the city last week.

The protests have angered Beijing, which called them “sprouts of terrorism”.

“Dropping the ‘T’ word is particularly disturbing as it does suggest a more aggressive mainland response, which triggered a wave of risk aversion across global markets,” said Stephen Innes, managing partner at VM Markets in Singapore, referring to Beijing’s response.

More details in https://www.reuters.com/article/us-hongk...SKCN1V30PI

[dreamybear]

HK stocks may be further depressed down the road due to the persistent unrest ....  

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Hong Kong billionaire breaks silence, urges protesters to ease off
Tue, Aug 13, 2019 - 2:49 PM

[HONG KONG] Ten weeks into the protests that have rattled the Asian financial hub to its core, Hong Kong's billionaires are beginning to break their silence as the costs of escalating violence mount.

Peter Woo, the largest shareholder and former chairman of developer Wheelock & Co., on Monday called on protesters to ease off after they notched a victory by blocking the government's extradition bill. Sun Hung Kai Properties Ltd., controlled by the city's wealthiest clan -- the Kwoks -- issued a statement Tuesday condemning the violent protests and calling for rationality.

Mr Woo's comments, published in the Hong Kong Economic Journal, come as the city's airport cancelled flights after a night of clashes that saw riot cops fire tear gas in a subway station and protesters lash out at undercover officers. Two months of unrest have also weighed on the territory's stock market, wiping more than US$1 billion from Mr Woo's personal wealth.....

Signs of economic fallout from the constant turmoil are starting to show. Flanked by business leaders on Aug. 9, Ms Lam said the aftershocks could hit Hong Kong's economy like a "tsunami."

The Real Estate Developers Association of Hong Kong issued a statement Aug. 8 condemning violence and calling for peace. Seventeen members co-signed, including Woo's Wheelock, as well as Sun Hung Kai and Li Ka-Shing's Hutchison Properties. Another appeal published in Chinese-language papers was issued on Aug. 10, with co-signers including Kwok family members as well as billionaire Henry Cheng of New World Development.

Mr Woo, Mr Li and Mr Cheng also were among billionaires who opposed plans for a mass sit-in at the city's financial district in 2014. Mr Cheng said at the time that the protests -- led by an activist group known as Occupy Central With Love and Peace -- could offend Communist Party leaders in Beijing and hurt the company's jewelry sales in Hong Kong.

Last week, Wheelock's Wharf Holdings reported falling underlying profit and said demand in Hong Kong weakened due to "travel advisories, economic slowdown, contracting exports/re-exports, falling retail sales, stock market jitters and the threat to employment."

Sun Hung Kai, Hong Kong's biggest developer, faced criticism after clashes last month at one of its malls in Sha Tin. The company denied protesters' allegations that the firm invited the police into New Town Plaza. At the Harbour City center in Tsim Sha Tsui, owned by a unit of Mr Woo's Wheelock, protesters cancelled a plan to swarm the mall in the wake of the New Town Plaza incident after management put up signs asking police not to enter unless a crime was taking place......

More details : https://www.businesstimes.com.sg/governm...o-ease-off

[karlmarx]

It is clear that Lam and Beijing are not conceding to any of the protesters's demands. To do so will allow the impression of a China that is amenable to changing its position, if sufficient pressure is applied. In major diplomatic skirmishes such as those involving the South China Seas and trade wars, China has not given any inch at all. She never allowed herself to appear to be seen as weak. If Lam/Beijing concedes to even a single of the protesters' request, all of the countries involved in conflict with China (US, Vietnam, Philippines, Taiwan, etc) will start closing in on her. That will be disastrous for XJP, who has plans to be firmly in power for a long time, and to elevate China to global supremacy.

So, my take on Lam/Beijing is that they are not going to give an inch.

It has been 10 weeks of protest/demonstrations, and most of the Lam/Beijing bloc would have guess that, by now, the protesters/demonstrators are tired. And will soon cease their destructive activities. But from what has been reported, it appears that this is not the case. My impression of the protests is that the 'hardcore' and violent participants number perhaps only a few thousands. I believe, as Lam herself has mentioned, that these small number of hardcore participants, indeed "do not have a stake in society." After all, why else would they not be doing something productive? They'd have to be very very unhappy to protest as though it is their mission to bring down Lam/Beijing. The cause of their unhappiness, without doubt, lies with HK's government/administration. Disenfranchised people, and their concomitant civil disobedience, is the cost of unrestrained capitalism.

Lam/Beijing's hope is that protesters eventually wear themselves out. So as to avoid an escalation of violence.

If protesters have the fortitude to carry on -- assuming that there will still be any meaningful number of them left after the arrests -- then the conclusion is likely to be escalated physical confrontation, which will end in bloodshed.

Madrid used to be the city of the world, then London, then New York. Will Hong Kong still hold economic significance, or is this the start of an eventual decline? If you were Beijing, what would be your long-term economic policy of HK?

[specuvestor]

'When will you die?' Hong Kong leader grilled at press conference
https://www.businesstimes.com.sg/governm...conference

messy times

normal HK curtness actually... sometimes I wonder if they can do better if they were the government, and like UK doesn't want anything to do with the mainland. Shenzhen GDP already surpassed HK. So how will they position themselves vs hundreds of Chinese cities along the same east coast?

Singapore seems to be used as an example except that they didn't read properly that we actually wanted to be part of Malaysia.