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China tycoon willing to fund Taiwan rail link: report

Fitch cautious on China banks
Singapore (AFP) Jan 31, 2011 - Fitch ratings agency on Monday voiced doubts about the weakening credit profiles of banks in China as Beijing ramps up efforts to tame inflation and cool its booming property sector. Fitch said its general outlook for Asia-Pacific banks this year was "stable", reflecting the agency's expectations for slower but healthier regional growth this year. "Where Fitch has somewhat cautious views on the banks in China and Vietnam... this is because their moderating profitability and relentless growth are pressuring capital, thereby weakening their credit profiles," it said.

The cautious outlook came as state media reported on January 21 that Beijing may further raise interest rates to combat rising inflation during the first half of this year. The government has already introduced a series of moves to curb bank lending as part of efforts to rein in runaway property prices and avert a costly asset bubble. On Friday, China launched a long-awaited property tax in two of the country's biggest cities. People buying higher-end second homes in Shanghai, China's wealthiest city, and Chongqing, home to 30 million people and the country's fastest-growing municipality, now have to pay a 0.4-1.2 percent annual tax, officials said. The government also hiked the minimum downpayment for second homes to 60 percent from 50 percent.

Fitch warned there was a risk Asian policymakers could fall "behind the curve" in fighting inflation as steeply higher commodities prices, including for food and oil, exacerbate the impact of massive capital inflows into the region. "A commodities-inflation shock which is more severe than Fitch expects, and/or policy mis-steps that see authorities 'fall behind the curve' of local inflation expectations, could lead to sharper monetary tightening and a downside risk for Fitch's growth forecasts," it said. The main risk for the region and its banks is a "relapse" in the global economic recovery and a sharp slowdown in China, according to Fitch. This would "likely weaken the sentiment-sensitive property sector and in turn negatively affect banks, given their real estate loan exposures," it added. The risk appears highest in Australia, China, Hong Kong and Singapore, where home prices have seen strong increases in recent years, it said.
by Staff Writers
Taipei (AFP) Jan 31, 2011
China's most famous philanthropist, who is currently visiting Taiwan, has said he would be willing to help finance a rail link between the island and the mainland, Taipei-based media said Monday.

Chen Guangbiao, who has spent nearly a week in Taiwan doling out money to the island's poor, made the suggestion Sunday while speaking to an audience in the northern county of Taoyuan, the China Times newspaper reported.

"I'd sell all my possessions (to raise money for the link) and leave just 100,000 yuan ($15,200) and a house for myself," Chen was quoted as saying. "Anyway, I'd earn the money back in just a few years."

Chen, 42, has got a mixed reception during his tour of the island, with some low-income residents welcoming him, and others seeing his trip as propaganda to make the prospect of reunification with China more palatable to Taiwanese.

Chen was quoted as suggesting that the rail link should be in the form of a tunnel, apparently addressing concerns that a bridge would be impossible given strong winds in the area.

The idea of a link across the Taiwan Strait, which is 130 kilometres (80 miles) wide at its narrowest point, has been aired before, mostly by Chinese, but sceptics doubt whether it is technically feasible.

China claims Taiwan as its territory, despite a separation that has lasted for over 60 years since the end of a civil war.

earlier related report
Macau tycoon 'drops lawsuit against family'
Hong Kong (AFP) Jan 31, 2011 - Macau tycoon Stanley Ho has dropped legal action against his family after accusing them of trying to steal his vast casino empire, according to a statement issued by relatives early Monday.

The move, just days after the 89-year-old Ho filed the claim, is the latest U-turn in a series of bizarre events as the family wrangles over ownership of SJM Holdings, the centrepiece of Ho's $3.1 billion fortune.

The claim sought to prevent a share transfer that would effectively hand over the company to some of Ho's relatives. It also sought unspecified damages against four of the 11 defendants, including three of Ho's children -- two of whom, Pansy and Lawrence Ho, run rival gambling concessions in Macau.

It alleged the group "improperly and/or illegally" moved to change the share structure at Lanceford, a holding company that ultimately controls Ho's flagship firm, whose interests include 17 Macau casinos and several hotels.

The statement early Monday, issued by a public relations company acting for some of Ho's relatives, said the lawsuit had now been dropped.

"Dr Stanley Ho has informed the defendants that he does not see any point in continuing the legal action in the High Court," it said.

"Accordingly, on 29 January 2011, and acting in person, Dr Ho discontinued the action against all 11 defendants."

A court spokeswoman could not be immediately reached to confirm the lawsuit had been quashed.

On Thursday, Gordon Oldham, a lawyer acting for Ho, insisted Ho was coerced into reconciling with family members during a surprise television performance, with the wheelchair-bound tycoon struggling to read a giant cue card.

Oldham, who could not be immediately reached Monday, said Ho was "pressurised" to appear on TV, filing the lawsuit hours later.

The feud has gained international media attention, much of it focused on the colourful tycoon and his complicated family tree, with 17 children born to four women whom he refers to as his wives. Ho was only ever married to two of those women, according to Oldham and a report in the South China Morning Post.

The contentious share transfer appeared to give the bulk of Ho's fortune to his second and third families, at the expense of other relatives.

Ho's daughter Pansy, born to his second wife, issued a statement early Monday, saying a family meeting last week "did not lead to any conclusion nor consensus".

She also disputed earlier comments from Oldham concerning a deal to split Ho's assets equally among his offspring.

"The assertion that I had committed in agreeing to a concept put forward in splitting the shareholding of Lanceford equally is therefore untrue," she said.

Her comments suggested the bitter feud may continue in the clan, which observers said has long been wracked by internal strife, with nasty sibling rivalries and a reputedly tight-fisted patriarch.

Ho, credited as the father of Macau's casino scene, secured a monopoly on the city's casinos from the 1960s until 2002, when licences were granted to rival firms including some major Las Vegas players.

Macau, the only city in China that allows casino gambling, has boomed with about $23.5 billion wagered at its tables last year -- four times as much as the Las Vegas Strip.

Ho was hospitalised in mid-2009 for unspecified reasons and released months later, stoking questions about the future of his gambling empire.



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China police nab hundreds for scalping train tickets
Beijing (AFP) Jan 25, 2011
Police in China have detained more than 600 people for using the Internet to scalp highly sought-after train tickets for the massive Lunar New Year holiday travel period, state media said Tuesday. Demand for train tickets is high ahead of the celebrations, the most important holiday of the year in China, with migrant workers desperate to return to their home villages or towns queueing for ho ... read more







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