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Tag: Hong Kong

  • Raimondo: US isn’t seeking to sever economic ties with China

    Raimondo: US isn’t seeking to sever economic ties with China

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    WASHINGTON — The United States isn’t seeking to sever economic ties with China — even as Washington takes steps to protect America’s technological and military prowess from Beijing, U.S. Commerce Secretary Gina Raimondo said.

    Speaking to reporters in advance of a speech Wednesday on the Biden administration’s China policy, Raimondo said: “We’re not seeking the decoupling from China. We want to promote trade and investment in areas that don’t threaten our core economic and national security interests or compromise human rights values.’’

    Relations between the world’s two biggest economies have chilled over the last decade, partly because the communist government in Beijing has cracked down on dissent in Hong Kong and on Muslims in the northwestern region of Xinjiang.

    President Donald Trump imposed massive taxes on Chinese imports in a dispute over the strong-arm tactics — including the alleged theft of trade secrets — that Beijing has used to challenge America’s edge in technology.

    The Biden administration has kept Trump’s tariffs and has stepped up a campaign to keep the Chinese from acquiring sensitive technology that could speed its military buildup. Most notable was the decision last month to block exports of advanced computer chips to China.

    The administration has also sought to make the United States more competitive by investing in infrastructure and pouring more than $50 billion into the semiconductor industry.

    For years, Raimondo said, the United States “pursued a policy of engagement with China,’’ hoping that Beijing would open its economy to foreign competition.

    “But China took a different path,’’ she said. “China’s leaders have made it very clear they don’t plan to pursue political and economic reform and opening. Instead, they are committed to increasing the role of the state in the Chinese society and economy, constraining the free flow of capital and information. Further, they’re accelerating their efforts to fuse their economic and technology policies with their military ambitions.’’

    The result, she said, was that “interdependence with China introduces significant new risks for our national security.’’

    But Raimondo rejected the idea that the United States should seek to isolate its economy completely from China’s.

    “We need to continue to do business with China,’’ she said. “Trade with China supports American jobs.’’

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  • Hong Kong official warns lockdown protests hurt security

    Hong Kong official warns lockdown protests hurt security

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    HONG KONG — Hong Kong’s security minister on Wednesday warned that the city’s protests against China‘s anti-virus restrictions were a “rudiment of another color revolution” and urged residents not to participate in activities that might hurt national security.

    Chris Tang said some events on university campuses and the city’s streets had attempted to incite others to target China’s central government in the name of commemorating a deadly fire in the country’s far west last week.

    “This is not a coincidence but highly organized,” he told reporters at the legislature.

    Protests erupted in major mainland cities over the weekend after the blaze that killed at least 10 in Urumqi, the capital of the Xinjiang region, prompted angry questions about whether firefighters or victims trying to escape were blocked by COVID restrictions.

    Crowds angered by severe restrictions called for leader Xi Jinping to step down in the biggest show of public dissent in decades.

    Smaller protests also emerged at the Chinese University of Hong Kong, the University of Hong Kong, and Central over the past two days. The participants included mainland Chinese students and residents as well as locals. They held up white papers and chanted slogans such as “No PCR tests but freedom!” and “Oppose dictatorship, don’t be slaves!”

    The gatherings were the biggest in the city in more than a year under rules imposed by Beijing to crush a pro-democracy movement in the semi-autonomous Chinese territory, which has a separate legal system from the mainland.

    Tang alleged that some active members of the widespread rallies in 2019 also took part in the latest Hong Kong events, noting some people planned the recent protests via social media platforms including some “anti-China” sites.

    “I have previously mentioned that we face national security risks. Some people are unwilling to give up and always want to endanger our national security and Hong Kong’s security. This is exactly the situation I am talking about,” he said.

    He said the city has to guard against these risks if residents do not want to return to what happened in 2019.

    The 2019 protests were sparked by a since-withdraw extradition bill that would have allowed criminal suspects to be extradited to mainland China. Critics worried the suspects would disappear into China’s opaque and frequently abusive legal system. Opposition morphed into months of violent unrest in the city as the protesters’ demands widened to include universal suffrage and other democratic aspirations.

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  • China markets tank as protests erupt over Covid lockdowns | CNN Business

    China markets tank as protests erupt over Covid lockdowns | CNN Business

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    Hong Kong
    CNN Business
     — 

    China’s major stock indices and its currency have opened sharply lower Monday, as widespread protests against the country’s stringent Covid-19 restrictions over the weekend roiled investor sentiment.

    Hong Kong’s Hang Seng

    (HSI)     Index fell as much as 4.2% in early trading. It has since pared some losses and last traded 2% lower. The Hang Seng

    (HSI)     China Enterprises Index, a key index that tracks the performance of mainland Chinese companies listed in Hong Kong, lost 2%.

    In mainland China, the benchmark Shanghai Composite briefly fell 2.2%, before trimming losses to 0.9% lower than Friday’s close. The tech-heavy Shenzhen Component Index dropped 1.1%.

    The Chinese yuan, also known as the renminbi, plunged against the US dollar on Monday morning. The onshore yuan, which trades in the tightly controlled domestic market, briefly weakened 0.9%. It was last down 0.6% at 7.206 per dollar. The offshore rate, which trades overseas, dropped 0.3% to 7.212 per dollar.

    The plunging yuan suggests that “investors are running ice cold on China,” said Stephen Innes, managing partner of SPI Asset Management, adding that the currency market might be “the simplest barometer” to gauge what domestic and overseas investors think.

    The markets tumble comes after protests erupted across China in an unprecedented show of defiance against the country’s stringent and increasingly costly zero-Covid policy.

    In the country’s biggest cities, from the financial hub of Shanghai to the capital Beijing, residents gathered over the weekend to mourn the dead from a fire in Xinjiang, speak out against zero-Covid and call for freedom and democracy.

    Such widespread scenes of anger and defiance, some of which stretched into the early hours of Monday morning, are exceptionally rare in China.

    Asian markets were also broadly lower. South Korea’s Kospi lost 1%, Japan’s Nikkei 225

    (N225)     shed 0.6%, and Australia’s S&P/ASX 200 fell by 0.3%.

    US stock futures — an indication of how markets are likely to open — fell, with Dow futures down 0.5%, or 171 points. Futures for the S&P 500 were down 0.7%, while futures for the Nasdaq dropped 0.8%.

    Oil prices also dropped sharply, with investors concerned that surging Covid cases and protests in China may sap demand from one of the world’s largest oil consumers. US crude futures fell 2.7% to trade at $74.19 a barrel. Brent crude, the global oil benchmark, lost 2.6% to $81.5 per barrel.

    On Friday, a day before the protests started, China’s central bank cut the amount of cash that lenders must hold in reserve for the second time this year. The reserve requirement ratio for most banks (RRR) was reduced by 25 percentage points.

    The move was aimed at propping up an economy that had been crippled by strict Covid restrictions and an ailing property market. But analysts don’t think the move will have a significant impact.

    “Cutting the RRR now is just like pushing on a string, as we believe the real hurdle for the economy is the pandemic rather than insufficient loanable funds,” said analysts from Nomura in a research report released Monday.

    “In our view, ending the pandemic [measures] as soon as possible is the key to the recovery in credit demand and economic growth,” they said.

    Innes from SPI Asset Management said China’s economy is currently caught in the midst of a tug-of-war between weakening economic fundamentals and increasing reopening hopes.

    “For China’s official institutions, there are no easy paths. Accelerating reopening plans when new Covid cases are rising is unlikely, given the low vaccination coverage of the elderly,” he said. “Mass protests would deeply tilt the scales in favor of an even weaker economy and likely be accompanied by a massive surge in Covid cases, leaving policymakers with a considerable dilemma.”

    In the near term, he said, Chinese equities and currency will likely price in “more significant uncertainty” around Beijing’s reaction to the ongoing protests. He expects social discontent could increase in China over the coming months, testing policymakers’ resolve to stick to its draconian zero-Covid mandates.

    But in the longer term, the more pragmatic and likely outcome should be “a quicker loosening of [Covid] restrictions once the current wave subsides,” he said.

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  • Hong Kong emigres seek milk tea in craving for taste of home

    Hong Kong emigres seek milk tea in craving for taste of home

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    HONG KONG (AP) — In London, Wong Wai-yi misses the taste of home.

    A year ago, the 31-year-old musician was in Hong Kong, earning a good living composing for TV and movies and teaching piano. Today, she makes about half as much in London working part-time as a server alongside her musical pursuits. She chose the job in part because staff meals allow her to save money on food.

    It’s a difficult adjustment. And Wong, who left Hong Kong with her boyfriend in January, has turned to a beloved hometown staple to keep her grounded: milk tea. She brings the beverage to parties with Hong Kong friends and gives bottles to co-workers as gifts.

    “It’s like reminding myself I am a Hong Konger. It will be fine as long as we are willing to endure the hardships and work hard,” said Wong, who left as part of an exodus that began after Beijing passed a law in 2020 that curtailed civil liberties.

    As tens of thousands leave Hong Kong for new lives abroad, many are craving a flavor from childhood that’s become a symbol of the city’s culture: the sweet, heavy tea with evaporated milk that’s served both hot and cold at diner-like restaurants called cha chaan tengs. Workshops are popping up to teach professionals to brew tea like short-order cooks, and milk tea businesses are expanding beyond Chinatowns in Britain.

    In Hong Kong, milk tea is an unassuming beverage, something you use to wash down sweet French toast off a plastic plate. It’s so beloved that members of Hong Kong’s protest movement have called themselves part of a “Milk Tea Alliance” with activists from Taiwan, Thailand, and Myanmar, who drink similar beverages.

    Following a law that silenced or jailed most political opposition, over 133,000 residents have secured a special visa that allows them to live and work in the U.K. and apply for British citizenship after six years. Official figures have not been released on how many have gone but most recipients are expected to do so, given the visa’s cost.

    The pathway was introduced last year in response to China’s 2020 enactment of the National Security Law, which the U.K. called “a clear breach” of the 1984 Sino-British Joint Declaration. The declaration included a promise to retain the former British colony’s rights and freedoms for 50 years after it was returned to China’s rule in 1997.

    Exiled activist Lee Ka-wai said that immersing himself at a Hong Kong-style cafe in London with a cup of milk tea was a “luxury.”

    The 26-year-old fled Hong Kong in March last year out of fear of being arrested. He is wanted by the city’s anti-graft body for allegedly inciting others to boycott the legislative election in December 2021. As an asylum seeker in Britain, he is not allowed to work and is living on savings.

    Even if the taste is right, he said, the feel of a cha chaan teng and the sounds of customers chatting in Cantonese cannot be replicated.

    “It’s strange because I can feel a sense of home overseas. But it also has another meaning — there’s something that cannot be replaced,” he said. “What we long for most is to go home and see a better Hong Kong. But we can’t.”

    Some emigrants, like Eric Tam, a 41-year-old manager at an insurance company, enroll in milk tea lessons before leaving. Visiting Hong Kong this month, he stocked up on a milk tea blend, a recipe that evolved from British teas in the colonial era.

    While tea is easy to find in England, he said, the taste isn’t the same: “British milk tea is just watery milk,” said Tam.

    Before moving to Liverpool with his wife and two younger daughters in June, Tam signed up for lessons at the Institution of Hong Kong Milk Tea. The two-year-old organization teaches students skills like pouring tea back and forth between a kettle and a plastic container to enhance its flavor before mixing it with evaporated milk.

    Yan Chan, the school’s founder, estimated that about 40% of the 2,000 people who have studied with her were planning to emigrate.

    Milk tea only began to emerge as a symbol of the Hong Kong identity over the last 15 years, said Veronica Mak, associate professor at the sociology department of Hong Kong Shue Yan University.

    Mak said that many young people began to think about Hong Kong identity after the government removed Queen’s Pier, a landmark from the city’s colonial past, in 2007. Childhood memories, marketing and a fashion for localism came together to make milk tea a totem of Hong Kong culture.

    “When you ask young people what kind of milk tea they like to drink, they will tell you it’s the bubble milk tea,” she said, referring to a drink from Taiwan. “But when you come to the identity part … they will not say the bubble tea but the local style milk tea.”

    Most milk tea lovers interviewed told the Associated Press that milk tea isn’t political. But Tam said it’s a form of silent resistance.

    “We can choose to preserve the culture that we want to keep. It cannot be destroyed even if other people try,” he said.

    Contemporary Asian tea culture is catching on globally. Outside Chinatowns, at least five Hong Kong-style milk tea brands have emerged over the past two years in Britain. One set up a pop-up cafe in the trendy London neighborhood of Shoreditch in September, attracting Londoners and tourists as well as Hong Kong emigres.

    Eric Wong, a tea wholesaler, began selling bottled milk tea in 2021 after moving to the UK, and offers milk tea workshops. He said he’s making 500 to 1,000 bottles of milk tea a week, and his south London business broke even after about six months. His Trini Hong Kong Style Milk Tea products are available online and at major Asian supermarkets.

    The taste of home can provoke strong emotions. A young woman from Hong Kong once shed tears after tasting his tea, Wong said.

    Between people planning to leave and growing interest in local culture, Chan is busy. On Nov. 3, nine people attended her class, none of whom had plans to emigrate.

    Cooking enthusiast Dennis Cheng had a class with her in late September and practiced the signature pouring while preparing to leave Hong Kong with his wife and children.

    He said the taste will help remind him of Hong Kong and friends back home.

    “This may help me feel emigrating overseas isn’t really that sad,” he said. “It’s just that I need more time to adapt to it.”

    ___

    Associated Press photographer Kin Cheung in London contributed to this story.

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  • Hong Kong airport launches new third runway

    Hong Kong airport launches new third runway

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    HONG KONG (AP) — Hong Kong’s airport on Friday officially launched a new third runway which is expected to boost the city’s status as an aviation hub.

    The Airport Authority Hong Kong said about 140 flights a day are already using the new runway, which has been in operation since early July.

    However, the airport is still using only two runways because its center runway was closed in July for reconfiguration.

    The airport is also expanding its Terminal 2 and is building a new concourse and baggage handling system.

    Work is expected to be completed by 2024, after which the airport will use all three runways, giving it more flight capacity. The entire project will cost 145 billion Hong Kong dollars ($18.5 billion), according to Jack So, chairman of the airport authority.

    “The project was funded from the private market and it doesn’t involve any government money,” So said at the launch ceremony. “This proves that the international financial community, banking sector and funds are confident of Hong Kong and its airport.”

    Brendan Sobie, an independent aviation analyst based in Singapore, said that when all three runways are operating, it will allow more planes to land during peak hours, thereby expanding the airport’s capacity.

    “You need that capacity, that infrastructure, because you’d start losing out if others have something you don’t have,” Sobie said.

    He noted that several other airports in Asia, including in Bangkok and Jakarta, are either working on a third runway or have already added one.

    Hong Kong’s additional runway will also facilitate cargo growth.

    The city eased pandemic travel restrictions last month, allowing inbound and outbound travel without mandatory quarantine. However, incoming travelers must have a regular COVID-19 test upon arrival.

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  • Hong Kong finds 90-year-old cardinal guilty over pro-democracy protest fund | CNN

    Hong Kong finds 90-year-old cardinal guilty over pro-democracy protest fund | CNN

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    Hong Kong
    CNN
     — 

    A 90-year-old former bishop and outspoken critic of China’s ruling Communist Party was found guilty Friday on a charge relating to his role in a relief fund for Hong Kong’s pro-democracy protests in 2019.

    Cardinal Joseph Zen and five others, including the Cantopop singer Denise Ho, contravened the Societies Ordinance by failing to register the now-defunct “612 Humanitarian Relief Fund” that was partly used to pay protesters’ legal and medical fees, the West Kowloon Magistrates’ Courts ruled.

    The silver-haired cardinal, who appeared in court with a walking stick, and his co-defendants had all denied the charge.

    The case is considered a marker of political freedom in Hong Kong during an ongoing crackdown on the pro-democracy movement, and comes at a sensitive time for the Vatican, which is preparing to renew a controversial deal with Beijing over the appointment of bishops in China.

    Outside the court, Zen told reporters that he hoped people wouldn’t link his conviction to religious freedom.

    “I saw many people overseas are concerned about a cardinal being arrested. It is not related to religious freedom. I am part of the fund. (Hong Kong) has not seen damage (to) its religious freedom,” Zen said.

    Zen and four other trustees of the fund – singer Ho, barrister Margaret Ng, scholar Hui Po Keung, and politician Cyd Ho – were sentenced to fines of HK$4,000 ($510) each.

    A sixth defendant, Sze Ching-wee, who was the fund’s secretary, was fined HK$2,500 ($320).

    All had initially been charged under the controversial Beijing-backed national security law for colluding with foreign forces, which carries a maximum penalty of life imprisonment. Those charges were dropped and they instead faced a lesser charge under the Societies Ordinance, a century-old colonial-era law punishable with fines of up to HK$10,000 ($1,274) but not jail time for first-time offenders.

    The court heard in September that the legal fund raised the equivalent of $34.4 million through 100,000 deposits.

    In addition to providing financial aid to protesters, the fund was also used to sponsor pro-democracy rallies, such as paying for audio equipment used in 2019 during street protests to resist Beijing’s tightening grip.

    Although Zen and the other five defendants were spared from being charged under the national security law, the legislation imposed by Beijing over Hong Kong in June 2020 in a bid to quell the protests has repeatedly been used to curb dissent.

    Since the imposition of the law, most of the city’s prominent pro-democracy figures have either been arrested or gone into exile, while several independent media outlets and non-government organizations have been shuttered.

    The Hong Kong government has repeatedly denied criticism that the law – which criminalizes acts of secession, subversion, terrorism, and collusion with foreign forces – has stifled freedoms, claiming instead it has restored order in the city after the 2019 protest movement.

    Hong Kong’s prosecution of one of Asia’s most senior clergyman has cast the relationship between Beijing and the Holy See into sharp focus.

    Zen has strongly opposed a controversial agreement struck in 2018 between the Vatican and China over the appointment of bishops. Previously both sides had demanded the final say on bishop appointments in mainland China, where religious activities are heavily monitored and sometimes banned.

    Born to Catholic parents in Shanghai in 1932, Zen fled to Hong Kong with his family to escape looming Communist rule as a teenager. He was ordained as a priest in 1961 and made Bishop of Hong Kong in 2002, before retiring in 2009.

    Known as the “conscience of Hong Kong” among his supporters, Zen has long been a prominent advocate for democracy, human rights and religious freedom. He has been on the front lines of some of the city’s most important protests, from the mass rally against national security legislation in 2003 to the “Umbrella Movement” demanding universal suffrage in 2014.

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  • Global investors are bullish again on China as Beijing switches to damage control | CNN Business

    Global investors are bullish again on China as Beijing switches to damage control | CNN Business

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    Hong Kong
    CNN Business
     — 

    Market sentiment on Chinese stocks hit rock bottom just weeks ago after President Xi Jinping secured a historic third term in power and stacked his top team with loyalists in a clean sweep not seen since the Mao era.

    But in the past week, a series of unexpected steps by Beijing — the easing of draconian zero-Covid restrictions, moves to salvage the ailing property sector and Xi’s personal return to the world stage -— have triggered a huge rally.

    Hong Kong’s benchmark Hang Seng

    (HSI)     Index has gained 14% since last Friday, putting it squarely into bull market territory, or more than 20% above its recent low. A key index of Chinese stocks in New York jumped 15% during the same period.

    On the tightly controlled mainland markets, Shanghai and Shenzhen stocks have also advanced more than 2%.

    “China continued to see a barrage of upside activity… as reopening measures are a clear buy signal,” said Stephen Innes, managing partner for SPI Asset Management. “We are in a sea change after China’s more progressive policy evolution arrived unexpectedly.”

    Investors now have a “tactically constructive” view on China after key concerns were addressed by credible policy actions, according to Bank of America’s monthly survey of Asian fund managers released on Wednesday.

    Some investment banks even upgraded their China growth forecasts following the policy changes. On Wednesday, ANZ Research hiked its China GDP forecast to 5.4% for 2023 from 4.2% previously.

    “The changes reflect the party leadership’s intention to stop losses. They want to correct the market’s perception of China’s economic outlook, as President Xi Jinping interacts with global leaders at G20,” it said.

    Investors sold off China stocks in October due to fears that Xi’s tightening grip on power would lead to the continuation of existing policies, such as zero-Covid and the common prosperity campaign, that have dragged down the economy and battered financial markets.

    A leadership team loyal to Xi also suggested that China may continue to prioritize ideology over the kind of pragmatic decision-making that had enabled the country’s swift economic rise over the past four decades.

    But the latest policy shifts, although not a full-throated economic opening, have been enough to excite investors and analysts waiting for any sign of China easing its rules.

    From Bali to Bangkok, Xi returned to the world stage after a near three-year absence. There were encouraging signs, in particular, coming from the historic meeting between Xi and US President Joe Biden on Monday, which fueled expectations for stronger economic ties between the two major world powers.

    “The US’s willingness to set a ‘floor’ on US-China relations likely means the US is keen to find common ground with China to prevent extreme outcomes,” said Jefferies analysts in a research note earlier this week.

    Chinese companies on Wall Street have been hammered by delisting risks since last year because of a simmering spat between the two countries over audits. In December, US regulators finalized rules to ban trading in shares of Chinese companies if they can’t access their audit papers, a request that had been denied by Beijing on national security grounds.

    “We believe the Xi-Biden meeting could reduce the risk of Chinese ADRs being delisted,” the Jefferies analysts added.

    In August, the two countries reached an agreement to allow US officials to inspect the audit papers of those firms, taking a first step toward resolving the dispute.

    Reuters also reported Wednesday that US regulators gained “good access” in their review of auditing work done on New York-listed Chinese firms during a seven-week inspection in Hong Kong.

    Despite this week’s rally, some analysts remain cautious. Qi Wang, CEO of MegaTrust Investment in Hong Kong, said the recovery may be driven by a lot of buying to close out previous short positions and money chasing quick returns.

    “I don’t think the long-term appetite for China and Hong Kong shares will return so quickly. Right or wrong, there were some fatal blows to global investor confidence earlier this year,” Wang said.

    “There is some good news recently, but the big institutional money still need time to assess the situation, including the economic prospect for next year,” he added.

    Including the recent surge, the Hang Seng index is still down 23% this year, making it one of the world’s worst performing indices. The Nasdaq Golden China Index, a popular index tracking Chinese companies in New York, has plunged more than 33% so far in 2022.

    “This week’s rally is a strong over-reaction to mildly positive news,” said Brock Silvers, Hong Kong-based chief investment officer at Kaiyuan Capital, a private equity investment firm. “The market was desperate for good news, but it’s foolish to think that once Covid is behind us we’ll return to the go-go days of high octane growth.”

    Silvers added that the economic factors and political risks that made China “uninvestable” a month ago are still prevalent and are likely to reassert themselves before long.

    China is still dealing with Covid outbreaks and remains firmly committed to measures long abandoned by most other nations. Even more serious is the real estate crisis and the risks that poses for the banking sector, he said, adding that the 16-point rescue plan Beijing announced last Friday did not go far enough.

    Hao Hong, chief economist for Grow Investment Group, described the rally as sentiment-driven and technical in nature, because the market was previously oversold to an epic level.

    But as winter is coming, Covid cases are set to rise.

    “Whether we could deal with the resurgence with adequate medical facilities and without panic remains to be seen,” he said, adding it also remains uncertain how effective the new property support measures are and whether the developers can “rise from ashes.”

    If China re-tightens Covid restrictions or US-China tension flares up again, market sentiment could plummet once more, he said.

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  • Alibaba posts loss, slower revenue amid lower consumption

    Alibaba posts loss, slower revenue amid lower consumption

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    HONG KONG (AP) — Chinese e-commerce company Alibaba Group on Thursday posted net losses and missed market expectations for revenue in its quarter ended September amid a slowing economy and depressed consumer sentiment.

    The company reported net losses of 20.6 billion yuan ($2.87 billion) that it said was due to falling market prices of its equity investments in listed companies.

    Revenue grew 3% compared to the same time last year to 207.2 billion yuan ($29 billion), as the company saw decreased consumer spending as China continued its strict COVID-19 policies with lockdowns and mass-testing.

    “Consumer appetite was weak and we saw a drop in purchasing frequency,” said Alibaba chairman and CEO, Daniel Zhang on an investor call, adding that there was a drop in demand for categories such as consumer electronics and apparel.

    The company also said that it would extend a share repurchase program to its 2025 fiscal year and will buy an additional $15 billion shares on top of an existing $25 billion share buyback program aimed at shoring up investor confidence. Zhang described the expansion of the buyback program as “tangible action towards enhancing shareholder return.”

    Alibaba said it has so far bought back about $18 billion of its U.S.-listed shares.

    The Hangzhou-based company reported its third-quarter financial results just days after the conclusion of its annual Singles’ Day online shopping festival, the world’s largest in terms of sales.

    However, for the first time since it pioneered the festival in 2009, Alibaba did not disclose the final sales results for the shopping festival, suggesting a lower-than-expected result. Rival JD.com also did not release sales numbers this year.

    Alibaba’s NYSE-listed stock was down about 2.8% in premarket trading.

    Alibaba’s U.S.-listed stock has plunged over 70% since a regulatory crackdown on the technology industry in November 2020 that saw regulators halt the initial public offering of its financial arm Ant Group and crack down on anticompetitive practices across the technology industry.

    The e-commerce firm is also facing increased competition from short-video platforms such as Douyin and Kuaishou which also offer e-commerce services on their platforms.

    Alibaba is preparing for a primary listing in Hong Kong, making its shares more accessible to Chinese investors. The company said Thursday that the primary listing will not be completed by the end of 2022 as initially planned, and that it will keep investors updated in due course.

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  • Blizzard, NetEase gaming partnership in China to end

    Blizzard, NetEase gaming partnership in China to end

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    HONG KONG — American game developer Blizzard Entertainment said Thursday that it will suspend most of its game services in mainland China after current licensing agreements with Chinese games company NetEase end, sending NetEase’s shares tumbling.

    Blizzard, which partnered with NetEase in 2008 to offer popular games like World of Warcraft, Overwatch and Diablo in mainland China, said in a statement the two companies did not reach a deal to renew the agreements “that is consistent with Blizzard’s operating principles and commitments to players and employees.”

    The partnership is set to expire in January next year. Blizzard said that new sales will be “suspended in the coming days.”

    NetEase shares plunged as much as 15% in Hong Kong following the news.

    In a statement, NetEase said that the expiration of its licenses with Blizzard would have “no material impact” on the company’s financial results.

    The company said revenues and income from the licensed Blizzard games represented “low single digits” as a total percentage of NetEase’s total revenues and income last year, and in the first three quarters of 2022.

    “We have put in a great deal of effort and tried with our utmost sincerity to negotiate with Activision Blizzard so that we could continue our collaboration and serve the many dedicated players in China,” William Ding, CEO of NetEase, said in the statement. “However, there were material differences on key terms and we could not reach an agreement.”

    Blizzard Entertainment CEO Mike Ybarra said that the firm is looking for alternatives to bring the games back to Chinese players in the future.

    “We’re immensely grateful for the passion our Chinese community has shown throughout the nearly 20 years we’ve been bringing our games to China through NetEase and other partners,” Ybarra said.

    The games affected by the suspension are World of Warcraft, the StarCraft series, Hearthstone, Heroes of the Storm, Overwatch and Diablo III.

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  • Rishi Sunak to meet Xi Jinping as he strikes conciliatory tone on China

    Rishi Sunak to meet Xi Jinping as he strikes conciliatory tone on China

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    BALI, Indonesia — Rishi Sunak will invite Xi Jinping to collaborate more closely on global challenges in the first meeting between a British prime minister and Chinese president in nearly five years.

    Sunak and Xi will hold a bilateral meeting Wednesday on the margins of the G20 leaders’ summit in Bali.

    Ahead of the meeting — confirmed only 24 hours before it was due to take place — Downing Street insisted it was “clear-eyed in how we approach our relationship with China.”

    The prime minister’s spokesman said there was a need “for China and the U.K. to establish a frank and constructive relationship,” but stressed that “the challenges posed by China are systemic” and “long-term.”

    The two leaders are likely to discuss the war in Ukraine, energy security and climate change among other issues, No. 10 said.

    Theresa May was the last prime minister to meet Xi, during a visit to Beijing in January 2018, at a time when Downing Street was still referring to the “golden era” of relations supposedly ushered in by David Cameron and George Osborne.

    U.K.-China relations have worsened in the wake of China’s crackdown on democratic freedoms in Hong Kong, the oppression of the Uyghur Muslim minority of Xinjiang province, and concerns about the security implications of allowing Chinese companies to build critical national infrastructure in the U.K.

    News of the meeting comes after Sunak softened his language on China and suggested he was abandoning plans to declare the country a “threat” as part of a major review of British foreign policy.

    In response to questioning from POLITICO during the trip, Sunak described China as “a systemic challenge” but stressed that dialogue with Beijing was essential to tackling global challenges such as climate change.

    Speaking to Sky News Tuesday, the PM said: “I think our approach to China is one that is very similar to our allies, whether that’s America, Australia and Canada — all countries that I’m talking about exactly this issue with while we’re here at the G20 summit.”

    Sunak’s spokesman said Tuesday that the prime minister would “obviously raise the human rights record with President Xi” at the meeting.

    But he added: “Equally, none of the issues that we are discussing at the G20 — be it the global economy, Ukraine, climate change, global health — none of them can be addressed without coordinated action by the world’s major economies, and of course that includes China.”

    Xi has already held bilateral talks with various leaders during the summit | Kevin Frayer/Getty Images

    Xi has already held bilateral talks with U.S. President Joe Biden, French President Emmanuel Macron and Australian Prime Minister Anthony Albanese among other leaders during the summit.

    In addition to the talks with Xi, Sunak will also hold meetings with Biden, Albanese, Indian Prime Minister Narendra Modi, Japanese Prime Minister Fumio Kishida and Indonesian President Joko Widodo.

    Iain Duncan Smith, the former Tory leader and co-chair of the Inter-Parliamentary Alliance on China, warned that the U.K. was “drifting into appeasement” with Xi.

    “I am worried that the present prime minister, when he meets Xi Jinping, will be perceived as weak because it now looks like we’re drifting into appeasement with China, which is a disaster as it was in the 1930s and so it will be now,” he said. “They’re a threat to our values, they’re a threat to economic stability.”

    Bob Seely, another Tory MP and member of the Inter-Parliamentary Alliance on China, added: “We need to talk to nations, especially those that may challenge our values and stability, but it is dangerous to normalize relations when they are not normal.”

    But Alicia Kearns, chair of the Commons foreign affairs select committee and a member of the China Research Group, welcomed Sunak’s meeting with Xi. “It is important they meet to prevent miscalculations,” she said. “We cannot simply cut off China, we must work to create the space for dialogue, challenge and cooperation.”

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  • Hong Kong protest song plays instead of China anthem in rugby final mix-up | CNN

    Hong Kong protest song plays instead of China anthem in rugby final mix-up | CNN

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    Hong Kong
    CNN
     — 

    The Hong Kong government on Monday demanded an investigation after a song associated with the city’s pro-democracy movement was played instead of the Chinese national anthem before a rugby sevens match between Hong Kong and South Korea.

    Event organizers played an instrumental version of “Glory to Hong Kong” as the teams lined up for the men’s final of the Asia Rugby Sevens Series in Incheon, South Korea on Sunday. The song, an unofficial anthem of the city’s 2019 pro-democracy protests, includes lyrics that a Hong Kong court has previously ruled could incite secession – a national security offense.

    Clips of the incident, in which the team is shown standing to attention on the field as the song plays, circulated widely on social media Monday, threatening to overshadow the Hong Kong team’s 19-12 victory.

    In a statement, the Hong Kong government said it “strongly deplores and opposes” the playing of the song, which it said was “closely associated with violent protests and the ‘independence’ movement in 2019.”

    “We have already written to the Hong Kong Rugby Union last evening demanding them to deal with this matter seriously, launch a full and in-depth investigation and submit a detailed report, and convey our strong objection to Asia Rugby, who is the organizer of the Series,” a government spokesperson said, according to the statement.

    The match’s local organizer, Korea Rugby Union (KRU), told CNN the mistake occurred when a worker searched online for a Hong Kong anthem and added the top result to a folder labeled “Hong Kong.” The broadcasting room staff played the music file in the Hong Kong folder instead of one labeled “China,” the organization said.

    The organizer apologized through the stadium speaker and played the Chinese national anthem at the end of the match, according to KRU.

    “Korea Rugby Union will take all measures to prevent a repeat of such an occurrence in future matches,” the organization said, adding that its “Hong Kong” folder has now been erased.

    In a statement, the Hong Kong Rugby Union (HKRU) said it “expressed its extreme dissatisfaction” over the incident to the organizers. “Whilst we accept this was a case of human error it was nevertheless not acceptable,” the statement said.

    Last week, a woman who waved a British colonial-era flag to celebrate Hong Kong claiming Olympic gold became the first person in the city to be jailed on a charge of insulting the Chinese national anthem.

    Hong Kong, a former British colony handed over to Beijing’s rule in 1997, sends its own representative teams separate from mainland China to a wide range of sporting events, including the Olympics.

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  • Chinese are criticizing zero-Covid — in language censors don’t seem to understand | CNN

    Chinese are criticizing zero-Covid — in language censors don’t seem to understand | CNN

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    Hong Kong
    CNN
     — 

    In many countries, cursing online about the government is so commonplace nobody bats an eye. But it’s not such an easy task on China’s heavily censored internet.

    That doesn’t appear to have stopped residents of Guangzhou from venting their frustration after their city – a global manufacturing powerhouse home to 19 million people – became the epicenter of a nationwide Covid outbreak, prompting lockdown measures yet again.

    “We had to lock down in April, and then again in November,” one resident posted on Weibo, China’s restricted version of Twitter, on Monday – before peppering the post with profanities that included references to officials’ mothers. “The government hasn’t provided subsidies – do you think my rent doesn’t cost money?”

    Other users left posts with directions that loosely translate to “go to hell,” while some accused authorities of “spouting nonsense” – albeit in less polite phrasing.

    Such colorful posts are remarkable not only because they represent growing public frustration at China’s unrelenting zero-Covid policy – which uses snap lockdowns, mass testing, extensive contact-tracing and quarantines to stamp out infections as soon as they emerge – but because they remain visible at all.

    Normally such harsh criticisms of government policies would be swiftly removed by the government’s army of censors, yet these posts have remained untouched for days. And that is, most likely, because they are written in language few censors will fully understand.

    These posts are in Cantonese, which originated in Guangzhou’s surrounding province of Guangdong and is spoken by tens of millions of people across Southern China. It can be difficult to decipher by speakers of Mandarin – China’s official language and the one favored by the government – especially in its written and often complex slang forms.

    And this appears to be just the latest example of how Chinese people are turning to Cantonese – an irreverent tongue that offers rich possibilities for satire – to express discontent toward their government without attracting the notice of the all-seeing censors.

    People in face masks wait in line for Covid-19 tests in Beijing, China, on November 10.

    In September this year, US-based independent media monitoring organization China Digital Times noted numerous dissatisfied Cantonese posts slipping past censors in response to mass Covid testing requirements in Guangdong.

    “Perhaps because Weibo’s content censorship system has difficulty recognizing the spelling of Cantonese characters, many posts in spicy, bold and straightforward language ​​still survive. But if the same content is written in Mandarin, it is likely to be blocked or deleted,” said the organization, which is affiliated with the University of California, Berkeley.

    In nearby Cantonese-speaking Hong Kong, anti-government demonstrators in 2019 often used Cantonese wordplay both for protest slogans and to guard against potential surveillance by mainland Chinese authorities.

    Now, Cantonese appears to be offering those fed-up with China’s continuous zero-Covid lockdowns an avenue for more subtle displays of dissent.

    Jean-François Dupré, an assistant professor of political science at Université TÉLUQ who has studied the language politics of Hong Kong, said the Chinese government’s shrinking tolerance for public criticism has pushed its critics to “innovate” in their communication.

    “It does seem that using non-Mandarin forms of communication could enable dissenters to evade online censorship, at least for some time,” Dupré said.

    “This phenomenon testifies to the regime’s lack of confidence and increasing paranoia, and of citizens’ continuing eagerness to resist despite the risks and hurdles.”

    Though Cantonese shares much of its vocabulary and writing system with Mandarin, many of its slang terms, expletives and everyday phrases have no Mandarin equivalent. Its written form also sometimes relies on rarely used and archaic characters, or ones that mean something totally different in Mandarin, so Cantonese sentences can be difficult for Mandarin readers to understand.

    Compared to Mandarin, Cantonese is highly colloquial, often informal, and lends itself easily to wordplay – making it well-suited for inventing and slinging barbs.

    When Hong Kong was rocked by anti-government protests in 2019 – fueled in part by fears Beijing was encroaching on the city’s autonomy, freedoms and culture – these attributes of Cantonese came into sharp focus.

    “Cantonese was, of course, an important conveyor of political grievances during the 2019 protests,” Dupré said, adding that the language gave “a strong local flavor to the protests.”

    He pointed to how entirely new written characters were born spontaneously from the pro-democracy movement – including one that combined the characters for “freedom” with a popular profanity.

    Other plays on written characters illustrate the endless creativity of Cantonese, such as a stylized version of “Hong Kong” that, when read sideways, becomes “add oil” – a rallying cry in the protests.

    Protesters also found ways to protect their communications, wary that online chat groups – where they organized rallies and railed against the authorities – were being monitored by mainland agents.

    For example, because spoken Cantonese sounds different to spoken Mandarin, some people experimented with romanizing Cantonese – spelling out the sounds using the English alphabet – thereby making it virtually impossible to understand for a non-native speaker.

    Protesters at a rally against a proposed extradition law in Hong Kong on May 4, 2019.

    And, while the protests died down after the Chinese government imposed a sweeping national security law in 2020, Cantonese continues to offer the city’s residents an avenue for expressing their unique local identity – something people have long feared losing as the city is drawn further under Beijing’s grip.

    For some, using Cantonese to criticize the government seems particularly fitting given the central government has aggressively pushed for Mandarin to be used nationwide in education and daily life – for instance, in television broadcasts and other media – often at the expense of regional languages and dialects.

    These efforts turned into national controversy in 2010, when government officials suggested increasing Mandarin programming on the primarily-Cantonese Guangzhou Television channel – outraging residents, who took part in rare mass street rallies and scuffles with police.

    It’s not just Cantonese affected – many ethnic minorities have voiced alarm that the decline of their native languages could spell an end to cultures and ways of life they say are already under threat.

    In 2020, students and parents in Inner Mongolia staged mass school boycotts over a new policy that replaced the Mongolian language with Mandarin in elementary and middle schools.

    Similar fears have long existed in Hong Kong – and grew in the 2010s as more Mandarin-speaking mainlanders began living and working in the city.

    “Growing numbers of Mandarin-speaking schoolchildren have been enrolled in Hong Kong schools and been seen commuting between Shenzhen and Hong Kong on a daily basis,” Dupré said. “Through these encounters, the language shift that has been operating in Guangdong became quite visible to Hong Kong people.”

    He added that these concerns were heightened by local government policies that emphasized the role of Mandarin, and referred to Cantonese as a “dialect” – infuriating some Hong Kongers who saw the term as a snub and argued it should be referred to as a “language” instead.

    In the past decade, schools across Hong Kong have been encouraged by the government to switch to using Mandarin in Chinese lessons, while others have switched to teaching simplified characters – the written form preferred in the mainland – instead of the traditional characters used in Hong Kong.

    There was further outrage in 2019 when the city’s education chief suggested that continued use of Cantonese over Mandarin in the city’s schools could mean Hong Kong would lose its competitive edge in the future.

    “Given Hong Kong’s rapid economic and political integration, it wouldn’t be surprising to see Hong Kong’s language regime be brought in line with that of the mainland, especially where Mandarin promotion is concerned,” Dupré said.

    It’s not the first time people in the mainland have found ways around the censors. Many use emojis to represent taboo phrases, English abbreviations that represent Mandarin phrases, and images like cartoons and digitally altered photos, which are harder for censors to monitor.

    But these methods, by their very nature, have their limits. In contrast, for the fed-up residents of Guangzhou, Cantonese offers an endless linguistic landscape with which to lambast their leaders.

    It’s not clear whether these more subversive uses of Cantonese will encourage greater solidarity between its speakers in Southern China – or whether it could encourage the central government to further clamp down on the use of local dialects, Dupré said.

    A delivery worker delivers a package to the entrance of a locked-down neighborhood in Liwan, Guangzhou, on November 9.

    For now though, many Weibo users have embraced the rare opportunity to voice frustration with China’s zero-Covid policy, which has battered the country’s economy, isolated it from the rest of the world, and disrupted people’s daily lives with the constant threat of lockdowns and unemployment.

    “I hope everyone can maintain their anger,” wrote one Weibo user, noting how most of the posts relating to the Guangzhou lockdowns were in Cantonese.

    “Watching Cantonese people scolding (authorities) on Weibo without getting caught,” another posted, using characters that signify laughter.

    “Learn Cantonese well, and go across Weibo without fear.”

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  • Hong Kong says it’s back open for business. Will the world buy it? | CNN

    Hong Kong says it’s back open for business. Will the world buy it? | CNN

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    Hong Kong
    CNN
     — 

    At a glitzy finance summit in Hong Kong this week, the city’s leader triumphantly told a room packed with top Wall Street executives that the Asian hub was back in business. “The worst is behind us,” he declared.

    Two days later, tens of thousands of rugby fans descended on the city’s largest stadium for the Hong Kong Sevens, its biggest (and usually booziest) annual sporting event, which had been suspended since 2019 due to political unrest, and, later, Covid-19.

    The two high-profile international events sent a clear message: After almost three years of border closures, mandatory quarantines, and restrictions on businesses and social gatherings, Hong Kong was finally reopening.

    For much of the pandemic, the semi-autonomous Chinese city maintained some of the region’s most stringent restrictions, including one of the world’s longest mandatory quarantines for international arrivals. With the economy tanking and concerns mounting that Hong Kong was being left behind as the world moved on, the government finally threw open the city’s doors in September and ended formal quarantine to the relief of millions of people.

    “We were, we are and we will remain one of the world’s leading financial centers,” vowed Hong Kong leader John Lee at Wednesday’s summit, attended by more than 200 investors from 20 countries. “You can take that to the bank.”

    Speaking on Friday ahead of the kickoff of the Sevens, Hong Kong Rugby Union CEO Robbie McRobbie hailed the return of the tournament as a “catalyst, watershed,” a symbol that “Hong Kong is still a vibrant, resilient city.”

    But experts warn the push to revive Hong Kong, while welcome and long overdue, faces many challenges ahead.

    The past few years of isolation, which coincided with an ongoing political crackdown, have taken their toll, they said. Despite what Lee and other leaders insist, the Hong Kong that’s reopening is not the same city the world knew before the pandemic – and the true impact of that change remains to be seen.

    Last year, as many destinations reopened to travelers and relaxed restrictions, Hong Kong appeared to be stuck in a different reality.

    Restaurants, bars and gyms were frequently forced to shutter or limit their hours. Residential buildings were placed under lockdown for days. At one point, public gatherings were capped at two people. And most residents didn’t leave the city for years, unable or unwilling to spend up to three weeks in hotel quarantine at their own cost upon return.

    Businesses were hit hard. The Sevens tournament makes up 95% of the Hong Kong Rugby Union’s revenue, so “we’ve had three years of redundancies and cutbacks,” said McRobbie.

    Many disillusioned residents chose to leave permanently; this past year, the city recorded its steepest drop in population since records began in 1961. Companies, too, began eyeing other locations – most notably Singapore, Hong Kong’s longtime regional rival.

    But Hong Kong authorities, eager to reopen the border with mainland China – which still shows no sign of easing its strict zero-Covid policy that aims to stamp out infections – remained reluctant to loosen restrictions for fear cases would spike and close that door.

    Then, a severe outbreak fueled by the highly contagious Omicron variant at the start of the year put an end to Hong Kong’s hope of maintaining zero daily cases.

    Under mounting public pressure, the government lifted flight bans with certain countries and shortened hotel quarantine in March – but these small concessions did little to lure people back.

    According to media reports in August, some Wall Street banks warned their executives would only attend Wednesday’s finance summit if there was quarantine-free travel – a widely-speculated factor behind the government’s ultimate decision to scrap quarantine.

    Finance leaders in the city breathed a sigh of relief at the news.

    “We’ve been closed for too long,” said Sebastian Paredes, CEO of Singaporean bank DBS’ Hong Kong operations. “We are beginning to open up following the other parts of the world that have already opened up. And this is a tangible demonstration that Hong Kong is back.”

    Attendees at the Global Financial Leaders' Investment Summit in Hong Kong on November 2.

    Alicia Garcia-Herrero, chief Asia Pacific Economist of French investment bank Natixis, agreed the week’s dual big events were “a big sign of Hong Kong moving away from Covid restrictions to a new world.”

    However, the remaining restrictions pose a competitive disadvantage.

    International visitors must take Covid tests for seven straight days after arrival in Hong Kong, and for the first three days are barred from restaurants, bars and gyms. But the testing doesn’t stop there – bars and clubs that don’t serve food require proof of a negative rapid antigen test from all patrons.

    A mask mandate – indoors and outdoors – is also in effect, though photos of the finance summit show attendees sitting at tables without face coverings. They included the city’s Financial Secretary Paul Chan, who was declared a “recovered case” by health authorities after testing positive for Covid upon arrival from a trip abroad on Tuesday.

    Hong Kong's Financial Secretary Paul Chan makes a speech at the Global Financial Leaders Investment Summit in Hong Kong on November 2, 2022.

    These rules are “still largely prohibiting the overseas travel market,” said McRobbie, the Hong Kong rugby chief. Before the pandemic, roughly half the fans at the Sevens came from abroad; this year, that number is “negligible,” he said.

    The long stretch of isolation and financial hardship has also created challenges for companies hoping for a comeback. Many people have left the sports and events sectors in the past few years in favor of more stable jobs, leaving the industry short staffed, McRobbie added.

    This partial reopening has left the city in an awkward Covid limbo, said Vera Yuen, an economics lecturer at the University of Hong Kong.

    “If we want to open up our border with the Mainland China, our restriction is too lenient … so it’s not allowed,” she said. “But then if we want to open ourselves up to the world, we are still too stringent. We are now stuck in between, hoping to see better policies in the future.”

    Others also warn of growing political challenges. “Clouds are certainly coming to Hong Kong from different angles,” said banker Garcia-Herrero, pointing to the West’s response to the sweeping national security law Beijing imposed on Hong Kong in 2020.

    Under this law, pro-democracy activists have been jailed or exiled, independent newsrooms shut down, and former lawmakers targeted. Meanwhile, authorities have changed school curricula to emphasize Chinese history and culture, and pushed greater economic cooperation in the Greater Bay Area, a national scheme to link China’s southern Guangdong province closer with Hong Kong and Macao.

    The law has been widely criticized by foreign governments and human rights organizations, with the United States sanctioning Lee and other top Hong Kong officials over their role in the crackdown. Hong Kong authorities have repeatedly claimed the law has restored order and stability after the city’s 2019 anti-government, pro-democracy protests.

    For the US and the European Union, the national security law and crackdown represent “a change in the rules of the game in what was agreed upon,” said Garcia-Herrero.

    These rising tensions could spell trouble for Hong Kong’s trade and diplomatic relationships with other countries. Hong Kong is afforded more freedoms than other Chinese cities, thus has long been seen as a gateway between the mainland and the West – a position that looks increasingly precarious as its civil liberties erode.

    “The West would now understand that Hong Kong is not only part of China, but it’s closer to China than before,” said Yuen, the economics lecturer. “The worst scenario is that the West would treat Hong Kong as the same as the mainland China, and then Hong Kong would suffer the kind of sanctions.”

    And this drawing closer together is likely to continue. In an effort to stem the brain drain, the government is spending 30 billion Hong Kong dollars ($3.8 billion) to draw in global businesses and fresh talent – which Yuen said is expected to “attract a lot of mainland workers” who may be eager to escape an even more dire job market across the border.

    Despite these geopolitical frictions, some argue Hong Kong’s innate advantages will allow a revival – even if the city is heading in a different direction than before.

    Asia doesn’t have many other financial centers that can match Hong Kong’s open regulatory environment, low salaries tax and existing financial infrastructure – “therefore, even if the image may be tarnished a little bit, there are not many other places to go,” said Garcia-Herrero.

    Yuen echoed this point, saying the city’s proximity to China remains appealing to businesses and investors hoping to tap into the vast and lucrative mainland market.

    Travelers in the departure hall at Hong Kong International Airport following the government's scrapping of hotel quarantine, on September 26.

    “We can plug into China and sort of maintain the status as having a little bit of autonomy, and (being) different from them, given different Covid policies and (systems of) governance,” she said.

    But, both experts acknowledged, the path forward is now fraught with new risks. International businesses may come to Hong Kong, but be warier in how much they invest in the city, keeping in mind the threat of US sanctions and regional conflict.

    Today’s Hong Kong is increasingly under Beijing’s control, with China growing more assertive on the world stage as leader Xi Jinping enters a third term in power surrounded by loyalists. Those rising tensions between China and its rivals have caused growing divides “as the world deglobalizes,” said Garcia-Herrero – effects that inevitably spill over into Hong Kong, caught in the middle.

    “It will never be, in my opinion, what it used to be in terms of the openness of Hong Kong to both the West and the East,” she said.

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  • Revelers return to Hong Kong 7s for 1st time since pandemic

    Revelers return to Hong Kong 7s for 1st time since pandemic

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    HONG KONG — Revelers returned to Hong Kong Stadium on Friday to enjoy a highly-anticipated international rugby sevens tournament for the first time since the COVID-19 pandemic began.

    It wasn’t a celebration for everyone, though, with some international fans unaware of the city’s pandemic restrictions turned away at the gates.

    The Hong Kong Sevens, a popular stop on the World Rugby Sevens Series circuit, is part of the government’s drive to restore the city’s image as a vibrant financial hub after it scrapped mandatory hotel quarantine for travelers.

    Hundreds of spectators, some in fancy dress and superhero costumes, had gathered by mid-afternoon and the crowd was expected to build up during the evening sessions.

    The city’s pandemic rules require spectators to show a photo of their rapid virus test results and scan a risk notification app upon entry. Fans were required to wear masks except when eating or drinking in their seats. The stadium in Causeway Bay will be capped at 85% of its 40,000 capacity.

    The world’s leading teams are competing in Hong Kong, where the tournament for the condensed rugby format started in the 1970s and really took hold in the 80s, accelerating rugby seven’s eventual inclusion in the Olympics in 2016.

    The two-time Olympic champion and defending World Cup Sevens champion Fijians will be in action, along with 2022 world series champion Australia, which finishes the program on Day 1 against host Hong Kong.

    Overseas patrons, who used to account for a significant percentage of ticket sales in what has always been a party-like atmosphere at the stadium, need to comply with extra rules set for arrivals, such as undergoing other COVID tests and monitoring their health. Restaurant and bar visits are not allowed during their first three days in the city.

    While some local fans and international spectators weren’t bothered by the controls, the rules proved to be an upsetting experience for others.

    Businessman Renier du Plessis from South Africa arrived in the city with three friends on Thursday to watch the tournament but he was barred from entering the stadium because he failed to meet the health code requirements.

    They were unaware of the rules partly because they bought the tickets months ago, du Plessis said.

    “It’s disappointing, you know, the fact that we cannot do anything. I’m not allowed anywhere. So where am I supposed to be for the next three days?” he said.

    Some German exchange students were already used to the precautionary rules and did not find them troublesome.

    “It’s probably one of the biggest events that we will attend in Hong Kong over our time, and we only have one month left. So we’re really looking forward to this,” 21-year-old university student Bella Müller said.

    Hong Kongers, who mostly came in groups, were excited to attend a long-awaited large scale event. IT specialist Janssen Chow, 26, was happy that he could at least eat and drink in an enjoyable atmosphere.

    “It’s already better than just sitting here,” he said.

    At a separate forum Friday, Regina Ip, a leading member of Hong Kong’s cabinet, the Executive Council, described the Hong Kong Sevens as a “test.” If the infection figures have not surged rapidly after the three-day event, she said that the city would have the conditions to further open up.

    The former British colony also kicked off a five-day “FinTech Week,” and a major financial conference that featured more than 200 global financial executives this week.

    ———

    More AP rugby: https://apnews.com/hub/rugby and https://twitter.com/AP—Sports

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  • Hong Kong customs seize record meth haul worth $140 million

    Hong Kong customs seize record meth haul worth $140 million

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    HONG KONG — Hong Kong customs seized 1.8 metric tons (2 tons) of liquid methamphetamine in the city’s biggest-ever meth bust, authorities said Saturday.

    The drugs, which were seized Oct. 23, had been concealed in bottles labeled as coconut water in a cargo shipment that arrived in Hong Kong by sea, according to a government statement. The haul is estimated to be worth 1.1 billion Hong Kong dollars ($140 million).

    Authorities found that 1,800 bottles out of the total 7,700 bottles contained liquid meth. The bust is the largest on record among meth cases in terms of the amount and market value.

    Authorities are still investigating the case, and no arrests have been made.

    The stash of drugs were bound for Australia, and had been shipped from Mexico via Hong Kong, according to authorities who spoke Saturday at a news conference. In Australia, the market value of the drugs could reach about HK$8 billion ($1 billion).

    The cargo had raised suspicion as it was unusually large for a coconut water shipment from Mexico.

    The meth haul is the second found in shipments from Mexico to Australia in less than two weeks.

    Custom officials earlier this month seized about $5.9 million worth of crystal meth concealed in a shipment of electrical transformers that were also bound for Australia from Mexico.

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  • Hong Kongers who clapped in court found guilty of sedition

    Hong Kongers who clapped in court found guilty of sedition

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    HONG KONG — Two Hong Kongers were found guilty on a sedition charge on Thursday after they clapped and criticized the judge during a previous trial over a banned Tiananmen Square vigil in the city.

    Garry Pang Moon-yuen, a pastor, and Chiu Mei-ying, a housewife, were arrested in April for disturbances they made in a court hearing in January when a leader of the group that organized the Hong Kong vigil was sentenced for inciting others to join the prohibited event last year.

    Hong Kong is undergoing a political crackdown following widespread protests in 2019 and the imposition of a sweeping national security law in 2020, with many prominent activists in the pro-democracy camp having been arrested or jailed.

    Besides the national security law, a growing number of dissidents have also been charged for colonial-era sedition offenses.

    Pang and Chiu, instead of being charged with contempt of court, were charged with uttering seditious words. Pang reportedly told the judge “you have lost your conscience” and Chiu reportedly accused the magistrate of not complying with the law and deciding the case arbitrarily.

    Magistrate Cheng Lim-chi convicted the pair over the intent to incite others to hate and contempt against the administration of justice, saying their comments were “definitely not a slip of tongue.”

    Pang was also found guilty on an additional charge of acting with seditious intention for YouTube videos he published between 2020 and this year. In the videos he criticized how judges handled other cases, the court heard.

    Sedition is punishable by up to two years in jail for a first offense and three years for a subsequent offense.

    For decades, Hong Kong and nearby Macao were the only places in China allowed to commemorate the violent suppression by army troops of student protesters demanding greater democracy in Beijing’s Tiananmen Square on June 4, 1989. Hundreds, if not thousands, were killed.

    In June, authorities banned the commemoration for a third consecutive year in what was seen as part of a move to snuff out political dissent and a sign that Hong Kong is losing its freedoms as Beijing tightens its grip over the semi-autonomous Chinese city.

    On Wednesday, Hong Kong fell three places to 22nd in the world in the latest Rule of Law Index compiled by the World Justice Project.

    A Hong Kong government spokesman on Wednesday said the city’s ranking was still better than some Western countries, which he said have “unreasonably” criticized the rule of law in Hong Kong. He said the ranking change in some areas of the index could stem from a lack of understanding about the city.

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  • China’s yuan tumbles to all-time low amid fears about Xi’s third term | CNN Business

    China’s yuan tumbles to all-time low amid fears about Xi’s third term | CNN Business

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    Hong Kong
    CNN Business
     — 

    China’s yuan tumbled to an all-time low on international markets on Tuesday, as investors fled Chinese assets amid fears about Xi Jinping’s shocking move to tighten his grip on power at a major leadership reshuffle.

    In trading outside of mainland China, the yuan briefly plunged to around 7.36 per dollar early Tuesday, the lowest level on record, according Refinitiv, which has data going back to 2010. It then pared losses, trading at 7.33 by 1 pm Hong Kong time.

    On the tightly managed domestic market, the yuan also dropped sharply on Tuesday, hitting the weakest level in nearly 15 years.

    The declines came alongside a historic market rout for Chinese assets worldwide. On Monday, Chinese stocks plummeted in Hong Kong and New York, wiping out billions of dollars in their market value. Hong Kong’s benchmark Hang Seng

    (HSI)     Index closed down 6.4%. The Nasdaq Golden Dragon China Index also dived more than 14%. On Tuesday, the Hang Seng

    (HSI)     rebounded slightly, up 0.8% by noon.

    The huge sell-offs came just days after the ruling Communist Party unveiled its new leadership for the next five years. In addition to securing an unprecedented third term as party chief, Xi packed his new leadership team with staunch loyalists.

    A number of senior officials who have backed market reforms and opening up the economy were missing from the new top team, stirring concerns about the future direction of the country and its relations with the United States.

    International investors spooked by the outcome of the Communist Party’s leadership reshuffle dumped Chinese assets despite the release of stronger-than-expected GDP data. They’re worried that Xi’s tightening grip on power will lead to the continuation of Beijing’s existing policies and further dent the economy.

    China’s leadership reshuffle “sparked worries about the continuation of market-unfavourable policies and increasing risk of policy mistakes under President Xi’s power domination in coming years,” said Ken Cheung, chief Asian forex strategist at Mizuho Bank.

    “Foreign investors took action to cut their exposure on Chinese assets,” he said, adding that the Chinese currency was faced with mounting capital outflow pressure.

    The Chinese yuan, together with other major global currencies, has weakened rapidly against the dollar in recent months. The greenback has surged to the highest level in two decades against a basket of major counterparts, boosted by a hawkish Fed that attempts to contain runaway inflation.

    So far this year, the yuan has slumped more than 15% against the dollar, on track to log its worst year since 1994 — when China devalued its currency by 33% overnight as part of market reforms.

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  • Hong Kong stocks plunge 6% as fears about Xi’s third term trump China GDP data | CNN Business

    Hong Kong stocks plunge 6% as fears about Xi’s third term trump China GDP data | CNN Business

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    Hong Kong
    CNN Business
     — 

    Hong Kong stocks had their worst day since the 2008 global financial crisis, just a day after Chinese leader Xi Jinping secured his iron grip on power at a major political gathering.

    Foreign investors spooked by the outcome of the Communist Party’s leadership reshuffle dumped Chinese equities and the yuan despite the release of stronger-than-expected GDP data. They’re worried that Xi’s tightening grip on power will lead to the continuation of Beijing’s existing policies and further dent the economy.

    Hong Kong’s benchmark Hang Seng

    (HSI)     Index plunged 6.4% on Monday, marking its biggest daily drop since November 2008. The index closed at its lowest level since April 2009.

    The Chinese yuan weakened sharply, hitting a fresh 14-year low against the US dollar on the onshore market. On the offshore market, where it can trade more freely, the currency tumbled 0.8%, hovering near its weakest level on record, even as the Chinese economy grew 3.9% in the third quarter from a year ago, according to the National Bureau of Statistics. Economists polled by Reuters had expected growth of 3.4%.

    The sharp sell-off came one day after the ruling Communist Party unveiled its new leadership for the next five years. In addition to securing an unprecedented third term as party chief, Xi packed his new leadership team with staunch loyalists.

    A number of senior officials who have backed market reforms and opening up the economy were missing from the new top team, stirring concerns about the future direction of the country and its relations with the United States. Those pushed aside included Premier Li Keqiang, Vice Premier Liu He, and central bank governor Yi Gang.

    “It appears that the leadership reshuffle spooked foreign investors to offload their Chinese investment, sparking heavy sell-offs in Hong Kong-listed Chinese equities,” said Ken Cheung, chief Asian forex strategist at Mizuho bank.

    The GDP data marked a pick-up from the 0.4% increase in the second quarter, when China’s economy was battered by widespread Covid lockdowns. Shanghai, the nation’s financial center and a key global trade hub, was shut down for two months in April and May. But the growth rate was still below the annual official target that the government set earlier this year.

    “The outlook remains gloomy,” said Julian Evans-Pritchard, senior China economist for Capital Economics, in a research report on Monday.

    “There is no prospect of China lifting its zero-Covid policy in the near future, and we don’t expect any meaningful relaxation before 2024,” he added.

    Coupled with a further weakening in the global economy and a persistent slump in China’s real estate, all the headwinds will continue to pressure the Chinese economy, he said.

    Evans-Pritchard expected China’s official GDP to grow by only 2.5% this year and by 3.5% in 2023.

    Monday’s GDP data were initially scheduled for release on October 18 during the Chinese Communist Party’s congress, but were postponed without explanation.

    The possibility that policies such as zero-Covid, which has resulted in sweeping lockdowns to contain the virus, and “Common Prosperity” — Xi’s bid to redistribute wealth — could be escalated was causing concern, Cheung said.

    “With the Politburo Standing Committee composed of President Xi’s close allies, market participants read the implications as President Xi’s power consolidation and the policy continuation,” he added.

    Mitul Kotecha, head of emerging markets strategy at TD Securities, also pointed out that the disappearance of pro-reform officials from the new leadership bodes ill for the future of China’s private sector.

    “The departure of perceived pro-stimulus officials and reformers from the Politburo Standing Committee and replacement with allies of Xi, suggests that ‘Common Prosperity’ will be the overriding push of officials,” Kotecha said.

    Under the banner of the “Common Prosperity” campaign, Beijing launched a sweeping crackdown on the country’s private enterprise, which shook almost every industry to its core.

    “The [market] reaction in our view is consistent with the reduced prospects of significant stimulus or changes to zero-Covid policy. Overall, prospects of a re-acceleration of growth are limited,” Kotecha said.

    On the tightly controlled domestic market in China, the benchmark Shanghai Composite Index dropped 2%. The tech-heavy Shenzhen Component Index lost 2.1%.

    The Hang Seng Tech Index, which tracks the 30 largest technology firms listed in Hong Kong, plunged 9.7%.

    Shares of Alibaba

    (BABA)     and Tencent

    (TCEHY)     — the crown jewels of China’s technology sector — both plummeted more than 11%, wiping a combined $54 billion off their stock market value.

    The sell-off spilled over into the United States as well. Shares of Alibaba and several other leading Chinese stocks trading in New York, such as EV companies Nio

    (NIO)     and Xpeng, Alibaba rivals JD.com

    (JD)     and Pinduoduo

    (PDD)     and search engine Baidu

    (BIDU)    , were all down sharply Thursday afternoon.

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  • Strict COVID-19 policies drive people out of Hong Kong

    Strict COVID-19 policies drive people out of Hong Kong

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    Large numbers of people have left Hong Kong not only due to political unrest, but also strict COVID-19 policies. Over the past year, more than 100,000 people have left — a record.

    The exodus includes many who work in business and banking, who form the lifeblood of the city. Hong Kong is one of the world’s most important financial hubs and the main pipeline for money moving in and out of Asia, especially China.

    Multinational companies are looking elsewhere, too.

    More than a third of the Hong Kong Investment Funds Association’s members say they have already moved jobs to other countries. They’re going places like Singapore, Dubai, Australia and Japan, said Sally Wong, CEO of the association.

    The COVID-19 pandemic hit Hong Kong hard. For a while this spring, it had the highest COVID-19 mortality rate on Earth. 

    Things are much better now, but as the rest of the world moves on from the pandemic, people in Hong Kong still have to be fully masked and use an app-based control system that’s similar to mainland China’s. 

    They have to scan into public places with a QR code, including restaurants, and new arrivals can’t enter restaurants at all for three days.

    “This ability or the inability to travel freely in and out definitely affects Hong Kong,” said Wong. “We need to move back to normalcy, 100%.”

    This week, Hong Kong’s Chief Executive John Lee made a pitch that he hopes will reverse the talent outflow, by offering open work visas to college graduates from abroad. 

    But it may not be enough.

    In spite of the damage to Hong Kong’s economy and reputation, political observers think nothing will change until Chinese leaders on the mainland, who call the shots in Hong Kong, lift their zero COVID policy, and so far there’s no sign of that. 

    Elizabeth Palmer


    Elizabeth Palmer

    Elizabeth Palmer has been a CBS News correspondent since August 2000. She has been based in London since late 2003, after having been based in Moscow (2000-03). Palmer reports primarily for the “CBS Evening News.”

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  • UK summons Chinese diplomat over Manchester consulate violence

    UK summons Chinese diplomat over Manchester consulate violence

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    Envoy told the right to peaceful protest must be respected after Hong Kong protest was attacked and one man assaulted.

    The United Kingdom has summoned a top Chinese diplomat over violence at a Hong Kong pro-democracy protest outside the Chinese consulate in Manchester, where a man appeared to be pulled into the consulate grounds and assaulted.

    British police are investigating the incident, which took place during a demonstration against Chinese President Xi Jinping. Officers from Greater Manchester Police entered the consulate grounds to rescue a man who they said “was dragged” inside and assaulted by several men.

    “We have serious concerns about the footage that we have seen showing an incident at the Chinese Consulate-General,” said foreign office minister Zac Goldsmith.

    “Today we have made our view clear to the Chinese authorities: the right to peaceful protest in the UK must be respected,” he added.

    China’s ambassador to the UK is not currently in the country, so Charge d’Affaires Yang Xiaoguang was summoned to the foreign ministry to explain the incident. He met a foreign office official who told him all diplomats and consular staff must respect UK laws and regulations.

    Earlier, in Beijing, a Chinese foreign ministry spokesperson, Wang Wenbin, blamed the protesters for the incident.

    “Disturbing elements illegally entered the Chinese Consulate General in Manchester and endangered the security of Chinese diplomatic premises,” he said at a daily press briefing.

    “Diplomatic institutions of any country have the right to take the necessary measures to safeguard the peace and dignity of their premises.”

    Video footage from the incident showed a grey-haired man in a hat and face mask kicking protesters’ banners — one of which showed a near-naked Xi in a crown — and scuffling with a group of demonstrators at the gates of the consulate.

    A group of men were then shown punching a protester lying on the ground inside the mission’s gates as a police officer tried to stop the attack. Photos of the scuffles also showed a man being pulled towards the grounds by one group of men as police officers and other protesters try to pull him the other way.

    Speaking in parliament, Alicia Kearns, the newly appointed chair of the UK parliament’s foreign affairs committee, accused Chinese Consul-General Zheng Xiyuan, one of China’s most senior diplomats in the UK, of being at the scene.

    “Those involved should be expelled or charged within the week,” she wrote later on Twitter.

    China has not responded to the allegations against Zheng.

    ‘Like gangsters’

    Greater Manchester Police said in a statement that about 40 people had gathered outside the consulate on Sunday for a peaceful protest.

    Shortly before 4:00pm local time (15:00 GMT), “a small group of men came out of the building and a man was dragged into the consulate grounds and assaulted”, police said.

    “Due to our fears for the safety of the man, officers intervened and removed the victim from the consulate grounds.”

    The protest took place as China opened its five-yearly Communist Party Congress, where Xi is widely expected to be handed an unprecedented third term in power.

    The victim spent the night in hospital for treatment, and an investigation is ongoing, the British police added in a statement.

    The man, whose first name is Bob, is in his 30s and emigrated to the UK from Hong Kong recently, according to a friend close to him.

    The October 17 incident is being investigated by Manchester police. The man who was assaulted said he was “dragged inside” the consulate grounds and beaten [Matthew Leung/The Chaser News via Reuters]

    Interviewed by British broadcaster Sky News, Bob said he feared for his life, and showed cuts to his face and bruises on his body as a result of the assault.

    “They are like gangsters, you know, doing things like gangsters. It shouldn’t be like that. It’s not in China you know. This is the UK,” Bob told the news channel.

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