25 August 2019

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 Friday, March 28:


Tencent, IGG tumble amid sell-off in US tech plays

Tencent Holdings Ltd. (00700.HK) and IGG Inc. (08002.HK) have been severely hit, along with other technology and internet counters, following a sell-off in similar shares on Wall Street amid a disappointing US trading debut of King Digital Entertainment Plc., the maker of mobile phone game Candy Crush. Tencent and IGG lost 6 percent and 14 percent, respectively. Analysts said the declines reflect overvaluation in the sector, yet the adjustment is likely to be temporary, providing investors with fresh opportunities to tap the market.

Wharf seeks to attract more non-mainland shoppers

Wharf Holdings Ltd. (00004.HK) is considering plans to attract more non-mainland customers to its shopping malls in a bid to mitigate the risk of over-reliance on mainland tourists as there has been a downtrend in the number of individual mainland visitors to Hong Kong, said deputy chairman Stephen Ng. Meanwhile, the company has set a 23 billion yuan (US$3.7 billion) sales target for its residential development business in the mainland this year. The figure compares with a 2.09 billion yuan worth of contracted sales last year.

Lenovo vows to turn around Motorola handset business, Liu says

Lenovo Group Ltd. (00992.HK) is capable of turning around the loss-making mobile manufacturing business it recently bought from Motorola Inc., given the Chinese personal computer maker’s expertise in cost control, said honorary chairman Liu Chuanzhi {柳傳志}. Liu said Lenovo’s mobile gadget division should be focused on application software and handset hardware. Meanwhile, Liu said the mainland economy is likely to move to a consumer-driven model that will raise demand for consumer services and financial services.


Pan-democrat lawmakers undecided on Shanghai trip

Pan-democratic legislators are still undecided on whether to join a visit to Shanghai next month, which features a half-day meeting with the key Chinese official in charge of Hong Kong affairs on universal suffrage for the 2017 chief executive election. They said their request for an exclusive meeting with mainland officials on reform has yet to be confirmed. The Legislative Council House Committee will discuss the itinerary of the two-day meeting. Legco President Tsang Yok-sing said Chinese officials were aware of the democrats’ request and that pro-government members have no objections.

Tsang hints pan-democrats may get green light to run in 2017 chief executive race

Legislative Council President Tsang Yok-sing said yesterday a mainland official has told him they would not oppose a candidate who gets strong support from the people but who doesn’t meet the “love China, love Hong Kong” standard to be named by a nominating committee to stand for the 2017 chief executive election. He said Beijing would have to pay a huge political price if they drop a person with huge popularity from joining the fray. Tsang hinted that pan-democrats have a chance to stand for the election if they get strong public support.


China likely to miss 7.5 percent GDP growth target for 1Q on weak industrial growth

Mainland industrial businesses saw their profits rise 9.4 percent in the first two months of 2014 from a year earlier, 3 percentage points lower than the monthly average last year. It is a further sign of growing downward pressure on the economy. In view of the economy’s weak performance in the first two months, the gross domestic product in first quarter looks set to fall below the annual target growth of 7.5 percent even if the economy sees slight improvement in March. The possibility of fresh stimulus to spur growth in the second quarter cannot be ruled out.

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