Categories
World News

Asia-Pacific markets rise; Hong Kong’s Hold Seng in bear territory

SINGAPORE – Asia Pacific stocks rose in trading Monday morning as investors look to the Hong Kong opening after the Hang Seng index plunged into a bear market last week.

Japan’s Nikkei 225 rose 0.99% in early trading while the Topix index rose 1.29%.

Kospi from South Korea gained 0.78%. In Australia, the S & P / ASX 200 climbed 0.31%.

MSCI’s broadest index for Asia Pacific stocks outside of Japan traded 0.23% higher.

CNBC Pro Stock Pick and Investment Trends:

Investors will be watching the Hong Kong market, which opens at 9:30 a.m. HK / SIN after the Hang Seng index fell more than 20% from its mid-February high through heavy losses last week as regulatory uncertainty over the outlook continues to cloud for Chinese technology companies.

Other factors that could weigh on investor sentiment include concerns about a possible withdrawal of monetary policy stimulus by the US Federal Reserve and the continued proliferation of the Delta-Covid-19 variant.

Currencies and oil

The US dollar index, which tracks the greenback versus a basket of its competitors, hit 93.485 after its recent surge from below 93.2.

The Japanese yen was trading at 109.85, stronger than levels above 110 against the greenback last week. The Australian dollar was trading at $ 0.7142 after falling above $ 0.729 last week.

Oil prices were higher on the morning of Asian trading hours, with international benchmark Brent crude oil futures rising 0.6% to $ 65.57 a barrel. US crude oil futures rose 0.48% to $ 62.44 a barrel.

Categories
World News

Hong Kong’s Safety Regulation: One 12 months Later, a Metropolis Remade

HONG KONG – With each passing day, the border between Hong Kong and the rest of China is fading faster.

The Chinese Communist Party is rebuilding this city, permeating its once lively, irreverent character with ever more open signs of its authoritarian will. The structure of daily life is attacked as Beijing shapes Hong Kong into something more familiar, more docile.

Local residents are now teeming with police hotlines with reports of disloyal neighbors or colleagues. Teachers were told to fill students with patriotic zeal through 48-volume book sets entitled “My Home Is In China.” Public libraries have withdrawn dozens of books, including one on Rev. Dr. Martin Luther King Jr. and Nelson Mandela.

Hong Kong has always been an improbability. It was a flourishing metropolis on a headland of inhospitable land, an oasis of civil liberties under iron rule. As a former British colony that returned to China in 1997, the city was promised freedom of speech, assembly and press unimaginable on the mainland in an agreement that Beijing called “one country, two systems”.

But under Xi Jinping, China’s leader, the Communist Party is fed up with Hong Kong’s dueling identities. For the party, they made the city unpredictable and even brought it to the brink of rebellion in 2019 when anti-government protests erupted.

Now, armed with the sweeping national security law it imposed on the city a year ago, Beijing is pushing to transform Hong Kong into yet another of its mainland megacities: economic engines that instantly stifle disagreements.

“Hong Kong people from all walks of life have also recognized that ‘one country’ is the foundation and foundation of ‘two systems’,” said Luo Huining, Beijing’s senior official in Hong Kong, this month.

Hong Kong today is a montage of unfamiliar and for many unsettling scenes. Police officers were goose-stepped in the Chinese military style, replacing decades of British-style marching. City guides regularly denounce “external elements” that seek to undermine the country’s stability.

Senior officials in Hong Kong have gathered with their hands raised to pledge allegiance to the country, just as mainland bureaucrats are regularly called to “biao tai”, Mandarin, to “express their position”.

When the government ordered ordinary employees to sign a written version of the oath, HW Li, a seven-year-old civil servant, resigned.

The new requirements not only require loyalty professions; they also warn of dismissal or other vague consequences in the event of violations. Mr. Li heard some supervisors nag their co-workers to fill out the form right away, and employees vie for how quickly they complied.

“The rules that should protect everyone – as employees and as citizens alike – are being weakened,” said Mr. Li.

In some corners of society the rules have been completely rewritten. However, Beijing denies failing to keep its promises to Hong Kong and insists on reiterating them.

When China revised Hong Kong’s electoral system to purge disloyal candidates, Beijing described the change as “Hong Kong’s perfecting electoral system.” When Apple Daily, a major pro-democracy newspaper, was forced to close after police arrested its senior executives, the party said the publication had abused “so-called freedom of the press”. When dozens of opposition politicians organized an informal pre-election, Chinese officials accused them of subversion and arrested them.

China’s power has become so ubiquitous that Chan Tat Ching, once a hero of the Hong Kong democracy movement, spent the past year urging his friends not to challenge Beijing.

Three decades ago, after the Tiananmen Square massacre in 1989, Chan, a Hong Kong businessman, helped direct an operation that smuggled students and academics from the mainland.

But Beijing is more demanding today than it was in 1989, Chan said. It had intimidated Hong Kong without even sending troops; that demanded respect.

He admitted that the security law was enforced too strictly, but said that nothing could be done.

“Some young people don’t understand. They think the Communist Party is a paper tiger, ”he said. “The Communist Party is a real tiger.”

China’s new power has also established itself in the Hong Kong business community. For decades, the mainland economy had tried to catch up with that of Hong Kong, the financial center so proud of its global identity that its government dubbed it “Asia’s metropolis.”

Now China’s economy is booming, and officials are increasingly turning Hong Kong’s global identity towards that one country.

Chinese state-owned companies have recently moved into offices in Hong Kong’s iconic skyscrapers that have been vacated by foreign banks. In November, Meituan, a Chinese grocer, ousted Swire, a British conglomerate, from the city’s main stock index. Financial analysts have called it the end of an era.

The rush on the mainland money has brought some new conditions with it.

After Beijing ruled that only “patriots” could run for office in Hong Kong earlier this year, the Bank of China International – a state-run institution – posted an advertisement for a director-level position stating that candidates should be “the country.” love”.

The central government is trying to convince Hong Kongers that the compromises on the mainland’s promise of prosperity are worthwhile. Officials encourage young Hong Kong residents to study and work in southern China’s cities of Shenzhen and Guangzhou, saying that those who do not go risk missing out on opportunities.

Toby Wong, 23, grew up in Hong Kong and had never considered working on the mainland. Her mother came from the mainland for work decades earlier. The salaries there were significantly lower.

But recently, Ms. Wong saw a subway advertisement promoting open positions in Shenzhen, in which the Hong Kong government promised to subsidize nearly $ 1,300 from a $ 2,300 monthly wage – more than at many entry-level positions at home. A high-speed rail link between the two cities allowed her to return to her mother at the weekend, who has to support Ms. Wong financially.

Ms. Wong applied to two Chinese technology companies.

“It’s not a political question. It’s a practical question, ”she said.

After all, the government is hoping to make the motivation political. At the heart of Beijing’s campaign is an attempt to educate future generations who will never think of separating the party’s interests from their own.

China’s firm grip

    • Behind the Hong Kong acquisition: A year ago, the city’s freedoms were being curtailed at breakneck speed. But the crackdown took years and many signals were overlooked.
    • Mapping China’s Post-Covid Path: China’s leader Xi Jinping tries to balance trust and caution as his country moves forward while other places continue to grapple with the pandemic.
    • A challenge for US global leadership: As President Biden predicts a battle between democracies and their adversaries, Beijing seeks to defend the other side.
    • ‘Red Tourism’ is flourishing: New and improved attractions dedicated to the history of the Communist Party, or an adjusted version of it, draw crowds ahead of the party’s centenary.

The Hong Kong government has issued hundreds of pages of new curriculum guidelines designed to “inspire affection for the Chinese people.” The geography class must confirm China’s control over the disputed areas of the South China Sea. Schoolchildren from the age of 6 learn the criminal offenses according to the Security Act.

Lo Kit Ling, who teaches a citizenship course at a high school, now makes sure to say only positive things about China in class. Although she has always tried to offer multiple perspectives on any subject, she feared that a critical perspective could be taken out of context by a student or parent.

Ms. Lo’s subject is particularly sensitive – city leaders have accused her of poisoning Hong Kong’s youth. The course had encouraged students to critically analyze China and convey the country’s economic successes alongside topics such as the Tiananmen Square raid.

Officials have ordered that the subject be replaced with an abbreviated version that emphasizes the positive.

“It’s not a class. It’s like brainwashing, ”said Ms. Lo. Instead, she will teach an elective in Hospitality Studies.

Not only school children are asked to watch out for dissenting opinions. In November, Hong Kong police opened a hotline to report suspected security law violations. “#YouCanHelp #SaveHK,” wrote the police on Twitter. An official recently applauded residents for leaving more than 100,000 messages in six months.

Constant neighborhood surveillance by informants is one of the Communist Party’s most effective tools for social control on the mainland. It’s supposed to keep people like Johnny Yui Siu Lau, a radio host in Hong Kong, from being so free in his criticism of China.

Mr. Lau said a producer recently told him that a listener reported him to the Broadcasting Authority.

“It will be a competition or a struggle to see how people in Hong Kong can protect freedom of expression,” Lau said.

Other freedoms that were once at the core of Hong Kong’s identity are disappearing. The government announced that it would censor films that are considered a threat to national security. Some officials have called for works of art by dissidents like Ai Weiwei to be banned from museums.

However, Hong Kong is not just another metropolis on the mainland. Residents have proven extremely reluctant to give up their freedom, and some have rushed to preserve totems of a discreet Hong Kong identity.

Masks labeled “Made in Hong Kong” are very popular. A local boy band, Mirror, has become a source of hope and pride as interest in canto pop resurfaces.

Last summer, Herbert Chow, who owns the children’s clothing chain Chickeeduck, installed a two-meter-tall protester figure – a woman with a gas mask and a protest flag – and other protest art in his shops.

But Mr Chow, 57, has come under pressure from his landlords, several of whom have refused to renew his leases. Last year there were 13 chickeeduck stores in Hong Kong; now there are five. He is unsure how long his city can withstand the burglaries of Beijing.

“Fear – it can make you stronger because you don’t want to live under fear,” he said. Or “it can kill your desire to fight.”

Joy Dong contributed to the research.

Categories
Health

Hong Kong’s First Covid-19 Lockdown Exposes Deep-Rooted Inequality

HONG KONG – When Shirley Leung, 60, woke up in Hong Kong’s first coronavirus lockdown, she overlooked the tiny room she shares with her adult son, which can accommodate a single bed, cardboard boxes and plastic tubs for storing clothes.

She tried to ignore the smell of the ceiling and walls covered with mold. She rationed the fresh vegetables she had at home, dissatisfied with the canned goods and instant noodles the government had provided when it imposed restrictions on Saturday. She looked at the cramped, interconnected nature of her home.

“If a room is infected, how is it possible that cases do not spread to compartmentalized apartments?” Ms. Leung said in a telephone interview. “How can it be safe?”

Hong Kong has long been one of the most unequal places in the world, a city where sleek luxury shopping malls rub shoulders with overcrowded tenement houses, where the bathroom sometimes doubles as a kitchen. In normal times, this inequality is often masked by the glittering surface of the city. But during the coronavirus pandemic, its cost has become unmistakable.

From January 1 to the end of last week, more than 160 confirmed cases were found in the Jordanian neighborhood, out of about 1,100 across the city. The government responded by locking down 10,000 residents in an area of ​​16 blocks. More than 3,000 workers, many in protective suits, came to the area to conduct mass tests.

Hong Kong executive director Carrie Lam said Tuesday the lockdown had been a success, adding that more may follow. Officials announced one soon after in nearby Yau Ma Tei.

Officials suggested that the dilapidated living conditions of many of Jordan’s residents fueled the spread of the virus. Jordan is a crowded neighborhood known for its bustling night market, aging high-rise apartments, and numerous restaurants. This is where some of the city’s highest concentrations of rental apartments are located, the subdivided apartments that are created when apartments are divided into two or more smaller ones.

More than 200,000 of the city’s poorest residents live in units where the average living space per person is 48 square feet – less than a third the size of a parking lot in New York City. Some rooms are so small and restrictive that they are called cages or coffin houses.

The same conditions that may have led to the outbreak also made the lockdown particularly painful for many residents who worried about missing even a work day or feared being trapped in poorly ventilated breeding grounds of transmission. Officials admitted that they did not know exactly how many people were living in the compartmentalized apartments, which made efforts to test everyone difficult. Discrimination against low-income South Asian residents, many of whom are concentrated in the region, has also created problems.

Some have accused the government of tightening conditions for an outbreak and then imposing persistent measures on a group that can least afford to endure them. Wealthy Hong Kongers have caused outbursts of their own or disregarded socially distant rules with no similar consequences.

“If they did something wrong, it is to be poor, to live in a compartmentalized apartment, or to have a different skin color,” said Andy Yu, an elected officer in the restricted area.

The divided apartments have been a cause for concern since the pandemic began.

Ms. Leung, the retiree, and her son have only one bed to sleep in at night, and their son sleeps during the day after returning from night shifts as a construction worker. A roof beam was cracked, but the landlord had postponed repairs, she said. Shape was also a persistent problem as dirty water dripped from an adjacent unit.

Installation in subdivided apartments is often reconfigured to allow for more bathrooms or kitchens. However, the installation is often incorrect. During the 2002/03 SARS outbreak, more than 300 people were infected in a housing estate and 42 died after the virus spread through broken pipelines.

The government promised reforms after SARS but has recognized that the situation remains dangerous.

“Many of the buildings in the exclusion zone are older and in poor condition,” said Sophia Chan, the secretary for nutrition and health, on Saturday. “The risk of infection in the community is very high.”

The lockdown ultimately lasted only two days until midnight on Sunday the government said it had successfully tested most of the region’s residents. Thirteen people tested positive.

Updated

Jan. 26, 2021, 11:30 p.m. ET

However, experts said the government failed to address the underlying issues.

Wong Hung, deputy director of the Institute of Health Equity at Hong Kong University of China, said the government had not adequately regulated the compartmentalized housing.

“They fear that if they do something, there will be no place where low-income families can find shelter,” said Professor Wong. The real estate market in Hong Kong is consistently rated as the least affordable in the world.

Income inequality in Hong Kong is also closely linked to ethnicity, and the pandemic has exacerbated longstanding discrimination against South Asian residents, who make up around 1 percent of the city’s population. Almost a third of South Asian families with children in Hong Kong are below the poverty line, which, according to government data, is almost twice the proportion of all families in the city.

Many South Asians live in and around Jordan, including in divided dwellings, and as the virus spread, some locals made widespread allegations of unsanitary behavior.

Raymond Ho, a senior health official, was outraged last week when he suggested that Hong Kong’s ethnic minorities boost transmission because “they like to eat, smoke, drink alcohol and chat together”. Ms. Lam, the city’s leader, later said the government had not suggested that the spread of the disease was race related.

Sushil Newa, the owner of a brightly painted Nepalese restaurant in the exclusion zone, showed screenshots on his phone from online commentators comparing his community to animals and suggesting that they be alcoholics.

“We just work hard and pay taxes here. How come we are isolated from Hong Kong?” said Mr. Neva, referring to the discrimination when a clerk shoveled containers of biryani to take away.

Professor Wong said the government also failed to communicate effectively with residents of South Asia, which has led to confusion about the lockdown. The government later said it had sent translators. Other residents said the government provided Muslims with food that was not culturally appropriate, such as pork.

Even so, Mr Neva said he supported the lockdown. Although he lost money, controlling the outbreak is more important, he said.

Other entrepreneurs agreed, but also demanded compensation from the government.

Low Hung-kau, the owner of a corner stall, Shanghai Delicious Foods, said he was forced to ditch ingredients he had prepped for steamed buns – an added blow to the decline in business since the neighborhood outbreak began .

“I’ve lost 60 percent of my business,” he said. “Hardly anyone comes over.”

He spent the day after the lockdown gathering neighboring business owners to ask the government to pay at least some of their losses over the weekend. Government officials have dodged questions about compensation, only hoping employers would not deduct the salaries of workers who missed their jobs.

Activists criticized the government for its relief efforts throughout the pandemic, noting that it did not offer unemployment benefits. In addition, much of the state aid was directed towards employers rather than employees. Some companies have applied for subsidies to keep employees on payroll and then declined that promise.

Despite the risks, some had no choice but to break the lock.

Ho Lai-ha, a 71-year-old street cleaner, said she swept streets and cleared sewers over the weekend just days after they were identified as potential sources of contamination.

“I’m a little scared, but there is no other way,” she said as she dipped a duster into an open grate on Monday. “The area has been closed, but our work continues.”