Date
22 October 2017

HKEJ Today: Highlights

Following is a summary of major news and comments in the Hong Kong Economic Journal, the parent publication of EJ Insight, on Thursday, Jan. 23:

TOP STORIES

Macau gaming counters lose on JPMorgan downgrades

Macu gaming stocks slid across the board Wednesday amid downgrades by JPMorgan Chase & Co., with 10 major players losing a total of about HK$68 billion (US$8.77 billion) in their market capitalization. The brokerage said in its report that the possibility of a fall in the share prices of gaming stocks surpasses that of a rise as the current valuations have already priced in positive news such as opening of new projects in Cotai in the next three years. Other analysts said the report may reverse the uptrend of related counters which have outperformed the overall market by 70 percent over the past six months.

Tencent tops in online games income among global peers

Tencent Holdings Ltd. (00700.HK) has become the most profitable company in the world in terms of gains from online games it operates, SuperData Research said. The multimedia giant, which runs the platforms for CrossFire and League of Legends, has generated US$957 million and US$624 million respectively from the games that have been ranked top two in incomes. The company has recently expanded its online businesses to provide its own investment fund product that gives 7.394 percent yield a year to clients using its payment platform, beating the 6.46 percent offered by Alibaba Group Holding Ltd.

CSRC’s Tong says progress made on funds mutual recognition

Substantial progress has been made on the road to starting mutual recognition of investment funds registered in Hong Kong and mainland China, Tong Daochi {童道馳}, director general of international affairs at the China Securities Regulatory Commission, said recently. Authorities of both sides have reached consensus regarding the principles, operational framework and other technical details about the issue, Tong said in an interview with certain local newspapers in the city, noting that under the arrangement, the prerequisite for allowing funds issued by foreign institutions to be traded in the mainland is a registration in Hong Kong.

POLITICS

Leung denies shunning marathon opening because of newspaper ad

Chief Executive Leung Chun-ying has dismissed speculation that he has declined to officiate the opening ceremony of the Hong Kong Marathon next month because the organizer, Standard Chartered Bank, had ignored his request for it to pull out advertisements from the Chinese-language Apple Daily. Leung said the fact that he attended last year’s ceremony does not mean he would do so every year. Home affairs minister Tsang Tak-shing, whose portfolio covers sports, will be the officiating guest. Standard Chartered Bank said it respects the government’s arrangement.

Mainland newspaper casts doubt on PLA handling of intruders in Hong Kong

A Chinese official newspaper has cast doubts on the decision by the People’s Liberation Army in Hong Kong to hand over to Hong Kong police several people who crossed into their barracks in the city last month. The Global Times quoted unnamed academics as saying the PLA could detain and handle the intruders in accordance with the national garrison law. A Hong Kong barrister, Ronny Tong, said the PLA in Hong Kong has handled the case appropriately. Tong said the mainland newspaper has tried to take advantage of the intrusion case to broaden the powers of the PLA.

EDITORIAL

Further quantitative easing imminent in Japan as interest rates kept unchanged

Japan’s central bank kept its interest rates unchanged after its meeting this month, matching market expectation. Also yesterday, the Japanese government revised downward the forecast economic growth for the next budget starting from April to 1.4 percent and inflation for 2015/16 at 1.9 percent. The inflation rate is lower than the 2 percent target set earlier. The latest economic data revision seems to have paved the way for further quantitative easing.

COMMENTS

Hong Kong people cherish more free press in light of Ming Pao row, Lian says

The growing pressure from authorities on Hong Kong media appears to have cast a long shadow over the city’s press freedom. But from a broader perspective, the picture may not be that pessimistic, former HKEJ chief editor Joseph Lian wrote. It can be argued that more Hong Kong people have become aware of the importance of free press because of the recent spate of reports about suppression of newspapers including Ming Pao and AM730.

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