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TRADE WARS
Hong Kong lawmakers demand inquiry into city leader
by Staff Writers
Hong Kong (AFP) Nov 05, 2014


Macau casinos see worst-ever drop as China reins in VIPs
Hong Kong (AFP) Nov 05, 2014 - Macau's casinos saw their worst monthly performance in almost a decade as analysts Wednesday blamed China's corruption crackdown for denting the industry's upmarket segment.

Official figures showed that gambling revenues in the world's biggest gaming centre plunged by 23 percent in October to 28.025 billion patacas ($3.51 billion), when compared to the same month last year.

The magnitude of the decline is the highest since such data became available in 2005, analysts say.

They predict that the slump will continue until next year as the city struggles to shift its focus away from its traditional dependence on big-spenders from mainland China.

Chinese high rollers have been reined in by anti-corruption drive initiated by Chinese President Xi Jinping, who has warned graft could destroy the party.

He has vowed to crack down on high-ranking officials, described as "tigers", along with low-level "flies", in a campaign which includes curbing lavish spending.

"(The) VIP (sector) is slowing due to anti-corruption and the tightening of junket liquidity," CLSA analyst Richard Huang told AFP.

Huang said mass market tourism had potential to be a money-spinner for Macau but there were not yet enough facilities available for visitors.

"For the mass market there is a lack of hotel rooms. It's not going to be solved until new casinos open," he said.

Casino operators have plans to expand their operations on the Cotai Strip, a former swamp which is being reclaimed and transformed into mass market resorts.

Barclay's analyst Phoebe Tse said that the anti-corruption drive was mainly to blame for the decline and said it would "last until sometime in the second quarter (of) 2015" when more hotel rooms become available.

Macau is the only part of China where casino gambling is legal.

It overtook Las Vegas as the world's gaming capital in terms of revenue after the sector was opened up to foreign competition in 2002 -- the city's gambling revenue is now multiple times that of the American city.

Revenues hit a yearly record in 2013 at $45 billion, official figures showed.

Hong Kong's democratic lawmakers called for an official inquiry into the city's embattled leader Wednesday, saying he "has no political integrity" after receiving large undeclared payments from an Australian company.

It came hours after the territory's former governor Chris Patten criticised Hong Kong's lack of leadership in the face of mass democracy protests, which have lasted more than a month.

Chief Executive Leung Chun-ying's approval ratings are at an all-time low as demonstrators continue to occupy key parts of the city.

Adding to his woes, Leung was forced to deny allegations made by an Australian newspaper last month that he had failed to declare HK$50 million ($6.5 million), which he received from Australian engineering company UGL while in office.

The payments relate to a deal struck in December 2011 -- months before Leung took office, but a week after he announced his candidacy -- during UGL's purchase of insolvent property services firm DTZ, for which Leung was director and chairman of its regional operations.

Leung's office has said the dealing was "a confidential commercial arrangement and a standard business practice" which did not need to be declared.

But accusations of dishonesty continue to dog him.

"Leung Chun-ying has no political integrity at all... until now he hasn't made it clear why he didn't make a declaration," lawmaker Claudia Mo said Wednesday in the Legislative Council, the city's de facto parliament.

Mo put forward a motion backed by more than 20 other lawmakers for a select committee to investigate. A complaint by members of the city's Democracy Party has already been lodged with the city's corruption bureau.

"Obviously there is something he can't say. Are there details that he doesn't dare come out to talk about? It's not clear to Hong Kong people what he has been doing," Mo said.

Speaking before the UK parliament's Foreign Affairs Committee late Tuesday, Patten -- the last British governor of the territory -- said that there was a "seriously sad" and "extraordinary lack of leadership" from the chief executive in response to the protests which have gripped the city.

"The worry now is that it's become increasingly difficult for anybody to climb down," he said.

Beijing ruled in August that candidates for the city's next leadership elections in 2017 must be vetted by a loyalist committee in what protesters call "fake democracy".

A small group of activists staged a protest outside China's representative office in Hong Kong Wednesday demanding the release of pro-democracy supporters recently arrested on the mainland.

'Times have changed' China tells Hong Kong's last British governor
Beijing (AFP) Nov 05, 2014 - China admonished the last British governor of Hong Kong on Wednesday, after he called on London to do more to encourage democracy in the former colony.

Chris Patten, who oversaw the transfer of Hong Kong from British to Chinese rule in 1997, had said Beijing was wrong to insist the situation in the territory was nothing to do with London, due to the binding agreements signed between the governments.

"He should stop his words and actions that embolden the Occupy Central movement," Beijing's foreign ministry spokesman Hong Lei said at a regular briefing, referring to the demonstrators who have staged street rallies and road blockades for more than a month.

"As the last governor marking the end of the UK's colonial rule over Hong Kong, he should know better and see clearly that the times have changed."

The protestors in Hong Kong are calling for free leadership elections in 2017, when universal suffrage has been promised.

"When China asserts that what's happening in Hong Kong is nothing to do with us, we should make it absolutely clear, publicly and privately, that is absolutely not the case," Patten said Tuesday, adding he was "amazed" that Britain's Foreign Office was not pushing harder at Beijing.

Patten was testifying before parliament's Foreign Affairs Committee, which is looking into Britain's relations with Hong Kong 30 years after the Joint Declaration, the agreement that outlined the city's return to Chinese sovereignty.

"Hong Kong affairs are China's domestic affairs; no foreign government or individual has the right to interfere in Hong Kong affairs in any way," Hong said.


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