Loose Money Party Peaks, Hangover Anticipation Looms.
“Central banks get most of the credit for the calm and upward-moving market over the summer, but I don’t think we can depend on that going forward.”
— Jeff Layman, chief investment officer at BKD Wealth Advisors
Markets in Europe and Asia retreated Monday amid signs the world’s central banks will be less accommodative than previously expected.
“Bourses in Asia closed with steep declines, with shares in Hong Kong off around 3.3%, Shanghai down 1.9%, Japan down 1.7% and Australia down 2.2%.”
“Central banks get most of the credit for the calm and upward-moving market over the summer, but I don’t think we can depend on that going forward,” said Jeff Layman, chief investment officer at BKD Wealth Advisors.
The Stoxx Europe 600 shed 1.9% early in the session, while futures pointed to a 0.6% opening loss for the S&P 500 after its biggest daily drop since the U.K.’s EU referendum.
Bourses in Asia closed with steep declines, with shares in Hong Kong off around 3.3%, Shanghai down 1.9%, Japan down 1.7% and Australia down 2.2%.
Stocks and long-dated government bonds sold off on Friday after comments from Federal Reserve Bank of Boston President Eric Rosengren heightened expectations for an interest rate rise later this year. Read the rest of this entry »
The Cantonese language uses subtly different tones to differentiate between words. The Cantonese pronunciation of ‘seven’ (七) uses a ‘cat1’ tone, according to the Chinese Character Database of Chinese University of Hong Kong.
Apple launched its iPhone 7 and iPhone 7 Plus at a live event in San Francisco this week. One of the technology firm’s biggest market is China, which includes the mainland, Taiwan and Hong Kong.
Apple’s ‘This is 7’ slogan for its new iPhone 7 has a rather unfortunate translation in Hong Kong.
Smartphone users have been mocking the technology firm’s latest marketing line because it sounds just like ‘This is penis’ in Cantonese.
China is one of Apple’s biggest markets, but the translations for its new slogan differ drastically across mainland China, Hong Kong and Taiwan.
“A common example is the Hong Kong’s Chief Executive CY Leung who is nicknamed as ‘689’ after being elected to his post with just 689 votes from an election committee – regrettably missing a ‘seven’.”
Apple boss Tim Cook introduces the iPhone 7 during an Apple special event in San Francisco
While mainlanders and Taiwanese people predominantly speak Mandarin, Hong Kong dwellers typically converse in Cantonese, which is why the comical translation only affects them.
“Earlier this year, Korean technoloy firm Samsung faced similar mockery in Hong Kong following the launch of its Galaxy Note 7.”
Many Cantonese speakers in Hong Kong took to social media to mock the x-rated gaffe, reports Quartz.
Tim Cook unveils newly-designed iPhone 7 at Apple Keynote
“The number ‘seven’ is a common euphemism of a Cantonese profanity word referring to penis, which only differs slightly in the tone. Number ‘seven’ is widely deployed in local politics.”
‘The slogan “7, is here” in China is the best. They got so many “7”s,’ said one Facebook user.
‘Why didn’t people say anything during the launch of Windows 7?’ queried another. Read the rest of this entry »
The deck may be stacked, but the results still matter.
HONG KONGERS head to the polls on September 4th to pick their representatives in what, by China’s standards, is a remarkably democratic institution: the Legislative Council of Hong Kong (Legco). When China took possession of Hong Kong from the British in 1997 it promised the territory a high degree of autonomy for 50 years. In the run-up to these elections, the first since the “umbrella revolution” protests of 2014, local newspapers have been filled with candidates who mistrust those guarantees, and by some who want to renegotiate Hong Kong’s relationship with the mainland. Yet it can be taken for granted that a clutch of parties supported by the government in Beijing will continue to dominate Hong Kong’s political system. How does the territory’s democratic process work?
For more than 30 years Hong Kong’s political parties have been split roughly into two camps. On one side are the “pan-democrats”, who argue that only a democratic system can safeguard the civil liberties the territory enjoyed under the British (whom many of the pan-democrats opposed, before the handover). They stand against the “pro-government” or “pro-Beijing” politicians, who regard themselves as patriotic allies of their counterparts in the rest of China. They tend to say that fair elections are less important than smooth relations with the Communist Party in Beijing. The role of Legco is to debate the laws and budgets put forward by the territory’s executive branch. Read the rest of this entry »
Beijing wants pro-democracy activists to go away. Instead, they’re getting elected.
Suzanne Sataline writes: In late 2014, Hong Kong protestors used umbrellas to shield themselves as police soaked them with pepper spray. Student leaders demanded elections free of intrusion from the Chinese central government, capturing headlines around the world, but their efforts failed. On Sept. 4, city residents pushed back again. Voters elected several of those young activists to the city’s legislature, a sharp rebuke to Beijing’s increasing encroachment on political life in the city.
“By the terms of its constitution, called the Basic Law, Hong Kong has autonomy, but with an asterisk. Individual residents cannot elect the city’s leader, nor try to change policies through referenda; they pick just half of their lawmakers. “
A record 2.2 million people queued to cast ballots — hundreds reportedly waited at one polling station past two o’clock in the morning — in the financial capital’s first city-wide election since protests two years earlier. Voters tossed several veteran moderates from the Legislative Council (LegCo), and replaced them with six activists who want to wrest Hong Kong from mainland China’s control. While the chamber’s majority still tilts toward Beijing — thanks mostly to voting rules that grant greater power to trade and industry groups — the new term will seat 30 lawmakers who favor democracy in the 70-member chamber. They will collectively pose a greater obstacle to the city’s unpopular chief executive, C.Y. Leung, a man widely considered too deferential to Beijing.
“This arrangement of 19 years — engineered by the British crown, enforced by mainland China after it took Hong Kong back — never sought, and was never given, resident approval. Hence the widespread, youth-driven protests two years ago, quickly dubbed the Umbrella Movement.”
By the terms of its constitution, called the Basic Law, Hong Kong has autonomy, but with an asterisk. Individual residents cannot elect the city’s leader, nor try to change policies through referenda; they pick just half of their lawmakers. This arrangement of 19 years — engineered by the British crown, enforced by mainland China after it took Hong Kong back — never sought, and was never given, resident approval. Hence the widespread, youth-driven protests two years ago, quickly dubbed the Umbrella Movement.
Since then, Beijing appears to be tightening its grip on the semi-autonomous city. Many residents were unsettled when five members of a local book publisher disappeared last year, and yet Hong Kong’s government seemed to do little to help. (One man later resurfaced, sharing details of how he’d been kidnapped by state security and held for months in mainland China; a colleague is still missing.) A sudden demotion and resignations at the city’s independent graft commission signaled that the lauded agency might not be so independent anymore. The central government’s chief lawyer in Hong Kong said in April that the government could deploy British colonial laws still on the books, such as those for treason and sedition, to prosecute independence activists. This summer, the city government’s Electoral Affairs Commission barred six candidates from the LegCo race, five of whom demand either independence, or a vote on the issue among Hong Kong residents. (The commission’s chairman is appointed by the city’s chief executive.)
“Since then, Beijing appears to be tightening its grip on the semi-autonomous city. Many residents were unsettled when five members of a local book publisher disappeared last year, and yet Hong Kong’s government seemed to do little to help.”
But that didn’t stop the election of young upstarts who aim to amend the constitution, expand voting rights, and bolster civil liberties. Sixtus “Baggio” Leung of a new party called Youngspiration thinks Hong Kong should declare independence from China. (None of the Leungs mentioned in this article are related.) Nathan Law, at age 23 the youngest lawmaker in city history, believes residents deserve a vote for self-determination. Beijing officials “are scared of our influence because we are not controllable,” Law, a leader in the 2014 protests, said. “We can mobilize people and arouse people and create enough tension between Hong Kong and China.”
“A sudden demotion and resignations at the city’s independent graft commission signaled that the lauded agency might not be so independent anymore. The central government’s chief lawyer in Hong Kong said in April that the government could deploy British colonial laws still on the books, such as those for treason and sedition, to prosecute independence activists.”
Some of those activists have been preaching on radio and street corners that Hong Kong is historically and culturally separate from China. The city, they have said, cannot trust China, and city residents should decide their own fate. By July, according to one survey, more than 17 percent of residents, and nearly 40 percent of those aged 15 to 24, said the city should separate from China when the “one-country, two-systems” plan ends in 2047. In August, the banned candidates organized what they called the city’s first independence rally, drawing several thousand people. One of the organizers was Edward Tin-kei Leung, a 25-year-old philosophy student born on the mainland. Read the rest of this entry »
Ilaria Maria Sala writes: The bizarre “One Country, Two Systems” formula under which Hong Kong has been ruled since its handover to Beijing in 1997 has been declared dead many times—but last Sunday’s elections may just have proven its remarkable resilience.
“In many ways, the combination of Hong Kong with China has been like a marriage between two near-strangers, one of whom was brought to the altar without being asked their opinion, and where the power balance is fatally skewed.”
Invented by China’s former paramount leader Deng Xiaoping for China to govern Hong Kong, it was a bold and imperial idea. By allowing Hong Kong to retain its partially democratic system and freedom of expression, it would let the far away “province” govern itself, as long it remained loyal to the center.
“Leaders in Beijing are obsessed with control, and national identity in China is increasingly defined as supporting the Communist Party.”
The current Chinese government has more desire to control and more technology to do so than Deng or the emperors used to, but Hong Kongers are nevertheless guaranteed the right to vote in partial elections, freedom of speech and press, and an independent judiciary, rights citizens on the mainland only wish for.
“The sudden, unlawful arrest of dissidents is no surprise in China, but nothing of the kind had ever happened in Hong Kong.”
In many ways, the combination of Hong Kong with China has been like a marriage between two near-strangers, one of whom was brought to the altar without being asked their opinion, and where the power balance is fatally skewed. Hong Kong, with its long-held democratic aspirations and millions of residents who had fled Communist rule on the mainland, was never going to be an easy addition to China. Leaders in Beijing are obsessed with control, and national identity in China is increasingly defined as supporting the Communist Party.
Unsurprisingly, “One Country Two Systems” has been under severe stress in recent years. Read the rest of this entry »
Candidates from new parties who want greater autonomy for Hong Kong from China won legislative seats in Sunday’s vote–the city’s first major elections since large pro-democracy protests in 2014.
Elections for the Hong Kong Legislative Council were held Sunday with near-record turnout in the city. Many are voting for younger, more democratic candidates who want to become more independent from increasingly authoritative mainland China.
Weston Williams reports: In 1997, when Hong Kong underwent its “handover” from the British government to China, the deal carried with it the promise that, for the next 50 years at least, the former British colony would be largely autonomous from the Chinese mainland. The historic agreement created an unusual bond between the largely democratic island and the authoritarian communist state of which it is now a part.
In recent years, however, the handover that created “one country, two systems” has been called into question, as mainland China has increasingly tried to impose its will on the city.
On Sunday, these questions were brought to the forefront as Hong Kong voters turned out in near-record numbers to decide this term’s members of the Legislative Council of Hong Kong (LegCo). Pro-democracy candidates hope to win enough seats to resist the pro-Beijing establishment in the first election following the student-led “Umbrella Movement” protests in 2014.
At least by Chinese standards, LegCo is a significantly democratic institution. The council consists of 70 seats that accept both pro-Beijing politicians as well as the “pan-democrats,” politicians who support the idea that the civil liberties enjoyed under the British can be preserved only through democratic action. But of those 70 seats, only 40 are directly elected by citizens of Hong Kong. According to the Economist, the remaining 30 seats belong to “functional constituencies,” which are chosen by groups representing business interests, professionals, and rural communities. The design of the constituencies has ensured that the majority of LegCo legislators have been pro-Beijing since the handover.
According to Reuters, Hong Kong’s pan-democratic opposition currently controls just 27 seats in LegCo, giving it the power to block policies and some laws, but little else. While Hong Kong enjoys a great deal more freedom and democratic leeway than mainland China, many citizens feel the Beijing holds too much sway in city elections. Read the rest of this entry »
South China Morning Post reports: Hong Kong police will hold unprecedented election security drills next week ahead of the Legislative Council polls, and mobilise all regional response teams set up after the 2014 Occupy protests to tackle social or political disturbances, the Post has learned.
“We will discuss tactics to be used during the elections. They need to update their knowledge about the latest equipment. So that everyone is on the same page about the operation. We learned a lesson from the Mong Kok riot. We want no blunders.”
Some 2,000 officers in five Regional Response Contingents drawn from the elite Police Tactical Unit and Emergency Units, among others, will be on standby for any mob violence on September 4, when more than 3.7 million eligible voters fan out across 595 polling stations to vote in the city’s most critical elections to date.
A senior police source told the Post that the risk level during the election period was “not very high”, based on initial assessments, but the force would not take any chances, especially given concerns about protest action by radical localists.
“The five regional teams will stand by during this period and will be deployed immediately in case of any trouble. They know their districts the best and have laid out clear manpower arrangements. A heavy police presence could put pressure on voters and impact the way they vote. So we have to be very careful.”
“Potential threats are there, especially with two returning officers receiving threatening letters just recently after disqualifying localist hopefuls,” the source said.
“The five regional teams will stand by during this period and will be deployed immediately in case of any trouble. They know their districts the best and have laid out clear manpower arrangements.” But the source also noted: “A heavy police presence could put pressure on voters and impact the way they vote. So we have to be very careful.”
The backlash so far has not been violent against the government’s recent decision to disqualify Legco candidates who advocate independence for Hong Kong, but some election officials responsible have received threats by mail.
The manpower arrangements were adopted as part of lessons learned during the 2014 civil disobedience campaign and the Mong Kok riot in February. The force established the response teams in the Hong Kong Island, Kowloon East and West, and New Territories North and South regions last year. Read the rest of this entry »
For the first time, a crop of fresh-faced candidates who cut their political teeth during the pro-democracy Umbrella Movement in 2014 are hoping to bring to the lawmaking body their battle to emancipate Hong Kong from Beijing’s increasingly authoritarian control.The activists, most of whom are in their 20s, no longer believe in the promises of the “one country, two systems” principle set out in the Basic Law. Even after paralyzing major traffic hubs in the city for 79 days in 2014, they failed to obtain any concession to democratize the rules by which the head of Hong Kong’s government, the chief executive, is nominated and elected. They concluded from the experience that democracy is impossible in Hong Kong as long as the territory remains under Chinese sovereignty. Read the rest of this entry »
China’s Nationalist Fervor & Fear-Mongering Paranoid Xenophobic Bloodthirsty Racist West-Bashing Reaches Dangerous New LevelsPosted: August 11, 2016
This kind of propaganda is highly effective and gives licence to ordinary people to indulge their most primitive prejudices. By convincing its people that many of China’s ills are the work of foreign spies and conspiracies, Beijing could eventually be forced to hit back against such perceived enemies in order to placate popular outrage.
Across much of the world, fear-mongering and xenophobia are creeping into public and political discourse.
In liberal democracies with traditions of free speech, vociferous denunciations of these attitudes can act as a counterweight. But in authoritarian countries where alternative narratives are forbidden, official attempts to demonise foreigners and “others” can be especially dangerous. In the past week, the Chinese government has launched several viral online videos that blame “western hostile forces” for a host of ills and supposed conspiracies within China.
“In the past, most foreigners in China enjoyed a certain level of unstated protection and privilege. In business and in everyday life ‘foreign friends’ were welcomed and often treated with kid gloves by the authorities. Some of them undoubtedly took advantage of this to flout the rules or behave badly without fear of retribution.”
The videos are crude but exceptionally powerful in their simplicity and emotional appeal. One video promoted by the Supreme People’s Procuratorate and Communist Youth League, two of the most powerful state bodies, begins with heartbreaking scenes of orphans and victims of the wars in Iraq and Syria, and then jumps to an assertion that the west, led by the US, is trying to subject China to the same fate.
“Today, that informal immunity seems to have vanished. In its place are hints of a backlash that many long-term foreign residents will tell you can be very ugly, ranging from casual discrimination and racial slurs, to physical altercations that take on a racist dimension.”
“Under the banner of ‘democracy, freedom and rule of law’ western forces are constantly trying to create societal contradictions in order to overthrow the [Chinese] government,” the subtitles read over pictures of democracy protesters in Hong Kong and President Barack Obama meeting the Dalai Lama.
According to the video, western plots and the “dark shadow of the Stars and Stripes” are also to blame for everything from attacks on Chinese peacekeepers in Africa, to farmers’ riots in China’s hinterland, to the Tibetan independence movement. The effect is heightened by ominous music and juxtaposition of chaos elsewhere with heroic images of Chinese soldiers and weaponry.
“In the past week, the Chinese government has launched several viral online videos that blame ‘western hostile forces’ for a host of ills and supposed conspiracies within China. The videos are crude but exceptionally powerful in their simplicity and emotional appeal.”
In some ways this is a mirror of the populist, jingoistic tilts happening elsewhere in the world. While not a direct reaction to the assertive Trumpism emanating from the US or the rise of rightwing nationalism in Europe, some of the same collective animus is taking hold in China, partly at the instigation of the ruling Communist party.
“According to the video, western plots and the ‘dark shadow of the Stars and Stripes’ are also to blame for everything from attacks on Chinese peacekeepers in Africa, to farmers’ riots in China’s hinterland, to the Tibetan independence movement.“
Many of those propagating this message are the shallowest of nationalists — the kind of party apparatchiks who are diversifying their (often ill-gotten) assets abroad as fast as they can and sending their children to study in Australia, the US, Canada or the UK.
“The effect is heightened by ominous music and juxtaposition of chaos elsewhere with heroic images of Chinese soldiers and weaponry.”
Indeed, one of the main producers of the video on western plots is a 29-year-old PhD student from China now living in Canberra, Australia. Meanwhile, the party has called for the rejection of western values and concepts in favour of Marxism — an ideology named after a German living in London and refracted into China via Moscow. Read the rest of this entry »
Since Xi Jinping came came to power nearly four years ago, hundreds of activists, lawyers, writers, publishers and employees of nongovernmental groups have been rounded up. Many more have been threatened and intimidated. Internet news sites have been ordered to stop publishing reports from sources that aren’t sanctioned by the state.
Julie Making reports: For five days last week, the confessions poured forth from Chinese human rights activists and attorneys rounded up last summer and held incommunicado for a year. Four men, facing trial for subversion, cowered before a court where they were represented by lawyers they didn’t choose.
A fifth person, knowing her husband was detained and teenage son under surveillance, declared her wrongs in a videotaped interview.
“As an old timer who’s been studying China since the Mao era, I have to say it’s the worst I’ve seen since then. It’s very discouraging.”
— Susan L. Shirk, chair of the 21st Century China Program at UC San Diego
China is in the midst of what many overseas scholars say is its harshest crackdown on human rights and civil society in decades. Since Xi Jinping came came to power nearly four years ago, hundreds of activists, lawyers, writers, publishers and employees of nongovernmental groups have been rounded up. Many more have been threatened and intimidated. Internet news sites have been ordered to stop publishing reports from sources that aren’t sanctioned by the state.
“I want to remind everybody to wipe their eyes and clearly see the ugly faces of hostile forces overseas. Never be fooled by their ideas of ‘democracy,’ ‘human rights’ and ‘benefiting the public.’”
— Zhai Yasmin, one of the defendants
Even as China has been touting its efforts to boost the “rule of law,” some critics of the government have vanished under mysterious circumstances in places like Thailand and Hong Kong, only to surface months later in Chinese custody, claiming rather unbelievably they had turned themselves in voluntarily. Many of those detained have appeared on state-run TV confessing to crimes before they have had a day in court.
“Xi likes to underscore his status as the new Mao Tse-tung by not giving a damn about what the major Western leaders, authors or media are saying about China.”
“As an old timer who’s been studying China since the Mao era, I have to say it’s the worst I’ve seen since then,” said Susan L. Shirk, chair of the 21st Century China Program at UC San Diego. “It’s very discouraging.”
The activists and lawyer prosecuted last week confessed to having illegally organized protests and drawn attention to sensitive cases at the behest of “foreign forces” in order to “smear the [Communist] party and attack the Chinese government.” They had erred in accepting interviews with international journalists, they added, and traveled abroad to participate in interfaith conferences and law seminars infiltrated by separatists and funded by enemies of China. Read the rest of this entry »
Julie Making reports: A prominent Chinese lawyer who had taken on sensitive, high-profile cases involving activists and victims of a tainted infant formula scandal was sentenced Thursday to seven years in prison on charges of subversion.
“This wave of trials against lawyers and activists are a political charade. Their fate was sealed before they stepped into the courtroom and there was no chance that they would ever receive a fair trial.”
Zhou Shifeng, a human-rights lawyer and director of the Beijing Fengrui Law firm, was arrested in July 2015 in a wide-reaching crackdown that saw hundreds of people detained.
“The Chinese authorities appear intent on silencing anyone who raises legitimate questions about human rights and uses the legal system to seek redress.”
State-run media accused him of operating a “criminal syndicate” that masterminded serious illegal activities to incite “social disorder” all in the name of making money.
Authorities accused Zhou of drawing unwarranted amounts of public attention to “sensitive cases” by publishing information about them online and encouraging people to appear outside courthouses where trials of such cases were being held.
Fengrui gained a reputation as a firm that would take on the most difficult, and from the government’s perspective, nettlesome cases. Outspoken artist Ai Weiwei turned to the firm when he was slapped with a tax evasion case; the firm also represented Ilham Tohti, a scholar from the Uighur ethnic minority who was accused of separatism and sentenced to life in prison in 2014. And when contaminated baby formula sickened thousands and led to multiple deaths in 2008, Fengrui represented families seeking redress. Read the rest of this entry »
In a city where land is everything, a housing crunch is brewing.
Annie Zheng reports: According to a new study by think tank Our Hong Kong Foundation, the amount of new, developable land in the former British colony is shrinking. Add in a growing population that will outpace the supply of new apartment units, and there’s a pressing need for the creation of more land, says the think tank, led by former Chief Executive Tung Chee-hwa.
“We see a substantial shortage in land and housing resources,” said William Tsang, senior researcher and author of the study. “The government is increasingly relying on changing the use of old land. This means the amount of buildable land is dwindling. When that runs out, what’s next?”
The study found that in 2012, 73% of the nine million square feet of public land for bidding was reclaimed land; by 2015 that had dropped to 50% of the 7.8 million square feet on offer. As a result, the government is relying more on selling converted forms of land, such as work sites, slopes and former staff quarters.
Public land sales in the form of 50-year land grants are a major source of revenue for the government and one way developers secure land on which to build. In recent years, a flurry of new developers including mainland Chinese have entered the bidding process as the government has put up smaller and more pieces of land. Read the rest of this entry »
Hong Kong stocks dived on Friday morning after vote counting indicated a win for the “Leave” camp in the referendum on Britain leaving the European Union.
The Hang Seng index nosedived 4.67 per cent or 974.22 points, trading at 20,132.02 at Friday’s morning close. At one point, the index lost 1,023.34 points or 4.9 per cent. The H-share Index also fell 4.58 per cent or 402.21 points to 8,382.86.
Pound sterling fell sharply by more than 12 per cent in morning trade to its lowest level in 30 years on the Brexit news, with analysts believing the currency has no hope to bounce back in the near term.
Chinese yuan also fell to a five year low with onshore yuan down 0.54 per cent to trade at 6.6101 before bouncing back to 6.6091 yuan per US dollar at 12.30am, while the offshore yuan down 0.79 per cent to trade at 6.6360 yuan per US dollar. Read the rest of this entry »
The city has gone to great lengths to contain protests during Mr. Zhang’s visit, but pro-democracy messages have slipped through.
BEIJING — Jason Lam reports: For more than a minute on Tuesday night, nine-digit numbers were displayed across the facade of Hong Kong’s tallest skyscraper, the International Commerce Center. Towering above Victoria Harbor, the glowing white digits blinked against the night sky: 979,012,493… 979,012,492… 979,012,491…
“Due to the high level of security, there’s almost no channel for the Hong Kong people to voice and protest.”
The seemingly innocuous numbers contained a subversive statement. The animation is a countdown of the seconds until when the “one country, two systems” framework — a guarantee that Hong Kong, a former British colony, would keep its civil liberties and a high degree of autonomy for 50 years after its return to Chinese sovereignty in 1997 — is set to expire.
“Most of the animations shown on the I.C.C. are ad-like, meaningless videos. We wanted to show something relevant to the social situation of Hong Kong.”
The artists planned the display to coincide with a three-day visit to Hong Kong by Zhang Dejiang, a member of China’s governing Politburo Standing Committee, which began on Tuesday. Mr. Zhang is the highest-ranking official from mainland China to visit Hong Kong since the pro-democracy demonstrations in 2014 known as the Umbrella Movement.
The city has gone to great lengths to contain protests during Mr. Zhang’s visit, but pro-democracy messages have slipped through. At least seven members of the League of Social Democrats party were arrested on Tuesday in connection with at least two banners appearing in public — one on a hillside, the other along the route taken by Mr. Zhang’s motorcade — reading “I Want Genuine Universal Suffrage” and “End Chinese Communist Party Dictatorship.”
“Due to the high level of security, there’s almost no channel for the Hong Kong people to voice and protest,” Mr. Wong said. Read the rest of this entry »
New York judge bans eight parties from sending promotional materials, including a company with a branch in Sheung Wan.
US authorities have shut down a long-running international “psychic” mail fraud ring linked to a Hong Kong company that cheated over a million Americans out of more than US$180 million.
“This widespread scam targeted more than one million Americans, many of whom were elderly or in financial distress.”
— Benjamin C. Mizer, head of the Justice Department’s Civil Division
It was understood Hong Kong police have not received any complaints about such a scam or the local firm, Destiny Research Center Limited.
A federal judge from the Eastern District of New York approved a consent decree on Monday, permanently banning eight parties, including Destiny Research Center and its president, Martin Dettling of Zurich, from using the US mail system to send ads, promotional materials and solicitations on behalf of self-styled psychics, astrologers and clairvoyants.
Since 2000, the defendants allegedly preyed upon vulnerable Americans’ superstitions and sent them over 56 million letters through the US mail purported to have been written by French psychics Maria Duval and Patrick Guerin. The letters predicted the recipients would become rich through means such as winning the lottery if they bought products and services to secure good fortune.
One such letter touted how Duval and Guerin shared “clear visions” that recipients would come into “massive sums of money on games of chance” if they paid US$50 for a “mysterious talisman” and a copy of “My Invaluable Guide to My New Life”. Read the rest of this entry »
A record net $674 billion left China last year, the International Institute of Finance estimates. A further $175 billion left China in the first quarter.
Saint Chatterjee reports: Hong Kong is conducting a multi-pronged customs, shipping and financial sector crackdown against so-called fake trade invoicing that allows billions of dollars of capital to leave China illegally.
Hong Kong’s central bank told Reuters it has beefed up its scrutiny of banks’ trade financing operations, while customs officials are doing more random checks on shipments crossing border posts and conducting raids on warehouses to ensure the authenticity of goods, senior officials working in shipping, logistics and banking said. The head of a logistics company said surprise customs inspections at Hong Kong border posts had doubled.
The sources declined to be identified given the sensitivity of the issues.
They said the increased efforts began this year and reflected concerns about billions of dollars in illicit cash authorities suspect are being channeled through Hong Kong following a stock market crash in China last year.
“Examinations and investigations reflect one of the strongest trends we are seeing now in the financial sector,” said Urszula McCormack, a partner at law firm King & Wood Mallesons, which helped co-author a report published by The Hong Kong Association of Banks in February that highlighted shipping as a sector where fake invoicing can thrive.
China has become increasingly concerned about capital outflows since the middle of last year when Chinese rushed to get money offshore for safekeeping or to invest following the stock market slump and unexpected yuan devaluation.
Hong Kong is the most popular route, analysts say, because of its proximity to China.
Chinese authorities have tried to staunch the outflows by tightening cross-border investment quotas, stepping up enforcement action of existing rules and restricting residents from buying financial products, such as insurance policies, offered in Hong Kong. But the trade channel had largely been left untouched given the complexity and magnitude of transactions involved.
A record net $674 billion left China last year, the International Institute of Finance estimates. A further $175 billion left China in the first quarter. China had been a long-term net importer of dollars. Read the rest of this entry »