UPCOMING EVENTS
Joint Business Community Luncheon: 2010-2011 Budget – 12.3.10
Coordinating with the HKGCC, the 2010-2011 Budget Luncheon will be held from 1230 hours to 1400 hours on Friday, 12 March 2010 at the Convention Hall of Hong Kong Convention and Exhibition Centre, Wanchai.
We cordially invite you to attend this important event with the Honourable John Tsang, Financial Secretary, as the honourable speaker. Please come to learn from the Financial Secretary of HKSARG about his further elaboration on this year's budget, the implications and impact on the business community in the new fiscal year.
For details of the luncheon, please read this flyer.
Deadline for booking is Friday, 26 February 2010.
Luncheon seminar “Retail in China in the Current Environment" - Friday, 5.3.10
Organised by the French Chamber of Commerce, a luncheon seminar entitled "Retail in China in the Current Environment" will be held on Friday, 5 March 2010 at 12:15 pm - 2 pm at The China Club, Rms.151-152, 15/F., The Old Bank of China Building, Bank Street, Central.
Dr. Eden Woon will address to us about the captioned topic as the Managing Director of Li & Fung Group’s China Corporate Office, based in Shanghai. He is responsible for representing the Li & Fung Group in China, for advising the Group on China strategy and business development, and for developing and nurturing long-term relationships with government and media in China.
Dr. Woon was the CEO of the Hong Kong General Chamber of Commerce, the oldest and largest business organization in Hong Kong, from 1997 to 2006.
Please read this flyer for more information.
As it is a joint function, seats are limited. Interested members should sign up as early as possible to avoid disappointment either by email or by fax to +852 3003 6506.
Breakfast Seminar “ICT and telecom Industries in Cross Roads: Towards
more value adding Digital Services and better Corporate Situational Awareness” – 26.2.10
Organised by the Finnish Chamber of Commerce, the above seminar will be held on Friday, 26th February 2010 at 8:15 am at the Hong Kong Bankers Club, 43/F., Gloucester Road, Central.
Situational awareness is increasingly recognized as one of the fundamental building blocks of effective decision-making in complex environments - its role in supporting organizations in running their operations smoothly during times of normalcy as well as securing the continuation of operations during a crisis is only likely to rise.
The speaker, Mr. Ojanperä Risto J. S., Vice President, Business Security Consulting (Chief Business Architect) of Elisa Corporation, a leading Nordic communications services provider, will address to us more in details at the seminar.
Please read this flyer for more information.
As it is a joint function, seats are limited. Interested members should sign up as early as possible to avoid disappointment either by email or by fax to +852 3003 6506.
OTHER ACTIVITIES OR INFORMATION
Government launches consultation on mediation development
The HKSAR Government has launched a three-month consultation on the way forward to facilitate the more effective and extensive application of mediation in both commercial disputes and those at the community level. This followed the publication of a report of the cross-sector Working Group on Mediation chaired by the Secretary for Justice, Mr Wong Yan Lung, SC.
The Report of the Working Group and the executive summary are available on the Department of Justice's website (www.doj.gov.hk). Members of the public are welcome to send their comments in writing by May 8, 2010 to the following address:
Department of Justice
1/F, High Block, Queensway Government Offices
66 Queensway, Hong Kong
(Attention: Ms Sou Chiam, Deputy Principal Government Counsel)
Fax: 2869 0720
BUSINESS OPPORTUNITIES
DIY metal furniture
Kam Hing Manufactory Company, a subsidiary of Fortune (Wholesale) Ltd., is a manufacturer of DIY metal furniture such as storage chrome shelf, display rack and industrial rack.
Interested parties please contact Miss Christine Tse on Tel: (852) 2691 9181 /Fax: (852) 2693 6921 /Email: kamhingchina@yahoo.com.hk.
Frozen small intestine of hog
Wo Fung Hong is sourcing the captioned product from Norway. Interested parties please contact Mr. Ivan Kwok on Tel: (852) 2419 9173 /Email: ivan_nck@yahoo.com.hk.
Cordless table lights
Global Zone Limited is a lighting manufacturer specialized in cordless table lights for restaurants and hotels and is looking for distributors/agents in Norway.
Interested parties please contact Mr. David Knight on Tel: (852) 2529 8778 /Fax: (852) 2529 8771 /Email: david@globalzone.com.hk.
UPCOMING TRADE FAIRS & EXHIBITIONS
NORWAY
MAY 31 TO JUNE 3
Eliaden 2010
Organiser: Eliaden
Venue: Norway Trade Fairs Centre, Lillestrøm
Tel: + 47 23 08 76 94 Fax: + 47 22 56 82 12
CHINA
MAY 1 TO 5
International Sourcing Expo-Textile & Clothes Show
Organiser: Guangzhou International Sourcing Centre Co. Limited
Venue: Guangzhou International Sourcing Centre, Guangzhou
Tel: +86-20-38293388
MAY 13 TO 15
China Building
Organiser: CCPIT Building Material Sub-Council
Venue: China National Convention Center, Beijing
Tel: +86-10-88365650 Fax: +86-10-68361826
MAY 19 TO 21
China International Marine, Port & Shipbuilding Fair
Organiser: Jiangsu United Asia International Exhibition Co. Limited
Venue: Nanjing International Exhibition Center, Nanjing
Tel: +86-25-84521101/84521102/84521105/84692611
Fax: +86-25-84692610
MAY 20 TO 23
China International Sporting Goods Show
Organiser: China Sporting Goods Federation
Venue: New China International Exhibition Center, Beijing
Tel: +86-10-87183076/87183963 Fax: +86-10-67102689/67120299
TAIWAN
MAY 8 TO 11
MT Duo (Taiwan CNC Machine Tool & Manufacturing Technology Show)
Organisers: Taiwan External Trade Development Council (TAITRA) and Taiwan Association of Machinery Industry (TAMI)
Venue: Taipei World Trade Center (TWTC) Exhibition Hall, Taipei
Tel: +886-2-27255200 Fax: +886-2-27251959
HONG KONG UPDATE
Currency body forecasts subdued inflation
The Exchange Fund Advisory Committee's Currency Board Sub-committee expects the economic recovery to continue this year and inflation to remain subdued.
It noted growth might be stronger if the recovery in global financial markets and the performance of asset prices in Hong Kong turn out to be stronger than expected.
However, there remains a risk of a double-dip recession in the global economy or an abrupt reversal of fund flows, which might affect market confidence and disrupt local economic activity.
The city's economy has continued to improve with the latest data showing activities will be stronger in the fourth quarter of 2009 than in the third quarter. The Hong Kong-US dollar exchange rate weakened slightly but remained close to the strong side of the Convertibility Zone. The residential property market cooled in the fourth quarter.
Given Hong Kong's particular economic structure, a study showed the effects of an appreciation - or the expectation of an appreciation - in the renminbi on inflation in Hong Kong, through changes in import prices and aggregate demand, are likely to be modest. However, there might be more significant effects through changes in liquidity conditions and asset prices.
(news.gov.hk) 3.2.10
New telecom contract guidelines issued
The Office of the Telecommunications Authority has issued a new code of practice to provide the industry with guidelines on the drawing up of service contracts.
The code will take effect immediately, replacing the two similar codes issued in 2004.
Key issues
Customers can cancel the contract without penalty within a seven-day cool-off period under the new code, subject to certain exceptions. They can terminate if there is any variation of contract terms resulting in material change of service quality or price.
Arrangements for termination of contract must be easy and convenient, while renewals cannot be automatic without customer consent.
A printed copy of the contract must be provided within a reasonable time after an oral agreement, and arrangements for moving premises must not incur more than incidental costs. Arrangements for return of customer equipment must be reasonable.
Voluntary basis
The code is voluntary in nature and service providers are urged to pledge their compliance to it then report on their compliance status bi-annually or annually.
Should their report be found to be inaccurate or misleading, the office can investigate the case.
It will closely monitor the effectiveness of the code. If the number of complaints on contractual disputes remains high it will consider whether more stringent measures should be adopted.
Resolution scheme
A pilot alternative dispute resolution scheme has been launched since September 2008. Selected cases of contractual disputes which cannot be resolved between the service providers and the customers are referred to independent professionals for adjudication on a voluntary basis.
The office will review the pilot scheme soon to see whether it should implement such a scheme long term.
(news.gov.hk) 2.2.10
NORWAY UPDATE
Court decides in favour of shipowners
The Norwegian Supreme Court has awarded in favor of the shipping companies that the retroactive tax imposed in 2007 for the years 1996-2006 was in breach of the Norwegian Constitution.
In 2007, after the introduction of a new tax scheme, the Finance Minister demanded that the Norwegian shipowners pay back taxes for a total of 11 years, amounting to NOK 21 million.
The Supreme Court’s ruling concluded that the transitional rules that the Storting decided on in 2007 are in contravention of section 97 of the Norwegian Constitution, which limits the powers of the authorities to introduce legislation with a retrospective effect.
Sturla Henriksen, managing director of the Norwegian Shipowners’ Association, commenting on the Supreme Court’s ruling, said:
"We are relieved to hear the decision of the Supreme Court. The Supreme Court has today confirmed the protection of the Constitution against retrospective legislation. It is a decision of principle of great significance for the protection afforded to us all by the law. This judgement will help to re-establish confidence in Norway as an attractive and stable country for business to invest in.”
"I take into account that the Supreme Court has concluded that latent tax from the old shipping tax scheme not can be collected according to the transitional regulations from 2007", says finance minister Sigbjørn Johnsen.
"The Government must assess the situation and the alternative courses of action, before we can conclude in the matter. We will continue to secure competitive conditions for the Norwegian shipping industry", says Minister Johnsen.
The maritime industry is Norway’s largest industry after oil and gas, and it is one of the most important industries for future Norwegian commercial development and value creation.
"We share the Government’s ambition to promote Norway as an attractive maritime host country. This judgement makes a positive contribution to the work of increasing maritime value creation in Norway,” says Sturla Henriksen.
(NRK/Press releases) 13.2.10
Norway and Sweden to cooperate on el-car grid
Norway and Sweden will cooperate on building a network of charging points for battery-powered cars, with parking lots and related services along the major roads in the two countries.
The Swedish government has already given the go-ahead to its authorities involved to start the project in cooperation with Norwegian opposites, the Swedish news agency TT reports.
The new grid will make it easier to drive el-powered vehicles across the border between the two countries.
(NRK) 8.2.10
New special edition 10-krone coin
To commemorate the 200th anniversary of the birth of Ole Bull, a special edition circulation coin will be issued by Norges Bank today, 5 February 2010. The coin is the same size as the standard 10-krone coin and will be legal tender.
- The coin is being issued to pay tribute to Ole Bull as a world-famous violinist and composer, says Trond Eklund, director of Norges Bank’s Cashier’s Department. He also emphasises Ole Bull’s dedication to traditional Norwegian folk music and his prominent role in the development of a distinctively Norwegian culture after the dissolution of the union with Denmark in 1814.
The obverse of the coin features the portrait of H.M. King Harald V as displayed on other special edition circulation coins in recent years and was created by Ingrid Austlid Rise, designer at Det Norske Myntverket AS (Mint of Norway).
A competition was held for the design of the coin’s reverse. The winning design was created by the sculptor Wenche Gulbransen and features Ole Bull’s portrait fused with part of a sheet of the music of “Seterjentens søndag”, one of Bull’s most famous compositions.
The special edition coin is the same size as the standard 10-krone coin and will be legal tender.
The coin will be issued as part of the Ole Bull 2010 project established by the Art Museums of Bergen foundation. The anniversary celebrations will be officially launched at a gala performance at Den Nationale Scene in Bergen on 12 February. Ole Bull’s birthday will be celebrated at Festplassen in Bergen on February 5th.
(NRK/Press release) 5.2.10
Oslo considering major tunnel project
The Oslo City Council will now consider building a major joint tunnel which will lead all railway and subway lines under the centre of the capital. This was decided at the Council's meeting on Wednesday.
Both services are in need of more tunnel capacity, and earlier this year. Communications Minister Magnhild Meltveit Kleppa announced that a new railway tunnel would be planned.
The City's subway also needs more capacity, and it was therefore natural to decide to look into a joint project, rather than having to build two tunnels, says the City Council's communications councillor, Jøran Kallmyr.
(NRK) 4.2.10
Central Bank: Key policy rate unchanged
As expected by most analysts, the Executive Board of the Norwegian Central Bank (Norges Bank) on Wednesday decided to keep the key policy rate unchanged at 1.75 per cent.
– We have chosen to keep the key policy rate unchanged at this meeting, Governor Svein Gjedrem said.
He said developments in the Norwegian economy have been broadly in line with projections. The recovery in Norway and abroad has taken hold, and Norges Bank has raised the key rate in two increments to 1.75 per cent. The Executive Board’s strategy is that the key rate should be in the interval 1¼ - 2¼ per cent until the publication of the next report in March.
- Inflation is now slightly below 2.5 per cent. Activity is rising, but there are still available resources in the Norwegian economy. House price inflation is high and household demand is increasing. Exports appear to be picking up somewhat faster than expected. On the other hand, petroleum investment may be lower than projected.
– Unemployment is relatively low, but both employment and the labour force have decreased somewhat further than anticipated, Governor Svein Gjedrem said.
(NRK/Press release) 4.2.10
CHINA UPDATE
Energy official: China to increase LNG import to address shortage
China would make efforts to import more liquefied natural gas (LNG) to cope with supply shortage, said head of China's National Energy Administration (NEA) on Sunday.
Zhang Guobao, also vice-minister of the National Development and Reform Commission, made the statement at a press conference in Beijing.
China would speed up the building of LNG terminals, natural gas pipelines, and storage facilities in the country's coastal areas, Zhang said.
China imported 3.5 million tonnes of LNG in 2009, equal to 5 billion square meters of natural gas, accounting for almost 6 percent of China's total gas consumption in the year, according to Zhang.
At the national work conference in December, Zhang said China would build more LNG terminals in Shandong Province and Zhuhai of Guangdong Province, and boost domestic production by further exploiting offshore reserves and major gas fields in central, western China.
Zhang said China had been diversifying its gas import sources which included Malaysia, Qatar, Papua New Guinea in addition to Australia and Indonesia. He also called on domestic enterprises to sign more long-term LNG import agreements.
(MOFCOM) 8.2.10
China's First Low-carbon and Urban Development Fund Established in Nanchang
It was learned from a news conference held by Nanchang municipal government on February 1 that Nanchang City and China Development Bank (CDK) will cooperate to establish China's first low-carbon and urban development fund to promote low-carbon economy, process of new urbanization and construction of the Poyang Lake ecological and economic zone.
The low-carbon and urban development fund amounted to RMB5b, of which RMB2.5b is invested by entities in Nanchang, RMB2.45b is funded by finance company of CNY, and RMB50m is brought along by fund management company. The fund duration is 12 years, including 9-year investment period and 3-year payback period. The fund will be mainly invested in infrastructure construction, public service facilities and ecological environment construction of key areas in Nanchang City.
(MOFCOM) 3.2.10
Chinese Manufacturing PMI Dropped in January
The survey data issued by China Federation of Logistics and Purchasing on February 1 indicated that in January 2010, the Purchasing Management Index (PMI) of Chinese manufacturing industry was 55.8%, down 0.8 percentage point from the previous month.
The PMI has been above the critical point (50%) for 11 consecutive months, signifying that Chinese manufacturing industry continuously maintains the trend of recovery.
PMI of the manufacturing industry is a comprehensive index reflecting the status of the industry, consisting of 12 indictors such as new orders, production, inventory and manufactured inventory. If PMI is above 50%, it reflects economic expansion in general; and if down 50%, it reflects economic recession.
(MOFCOM) 2.2.10
China Issues Regional Planning Intensively to Promote Balanced Regional Development
Fan Hengshan, director of Regional Department of the National Development and Reform Commission, said on January 28 that in the past two or three years, the State Council had approved and promulgated more than 10 regional planning advice or guidance, primarily to implement the scientific concept of development, serve the major strategies for national development, keep the stable and relatively fast growth of economy, and promote the coordinated development of regions and construction of harmonious society.
In the press conference for Planning of Poyang Lake Ecological Economic Zone which was sponsored by the News Office of the State Council on January 28, Fan Hengshan said that since the late 90s of the last century, China had successively issued a series of regional development strategies, such as western development, the promotion of central China and the revitalization of old industrial bases in northeast China, and the implementation of these strategies had achieved clear success; but because of the vast geographic scope and the great geographical differences of China, the government had gradually introduced a number of regional planning and regional policy documents in the past two or three year to better implement these strategies and make greater effectiveness.
Previously, the State Council has approved the plans and documents related to the Pearl River Delta, the Yangtze River Delta, the Tianjin Binhai New Area, Western Shore Economic Zone, Guanzhong-Tianshui Economic Zone, Liaoning and Jiangsu coastal areas, the Yellow River Delta, the northern Gulf in Guangxi and Anhui.
(MOFCOM) 1.2.10
TAIWAN UPDATE
Economic planner approves plan for bridge on Kinmen
The country's top economic planner, the Council for Economic Planning and Development, approved Monday a plan for a bridge linking the islands of Kinmen and Lieyu, also known as Xiao Kinmen, in that outlying county.
Construction for the 5.43 km bridge between Hushia in Kinmen and Houtou on Lieyu will begin by the end of this year with a total cost cost of NT$5.7 billion (US$177.59 million) , according to the plan drawn up by the county.
The plan will still require Cabinet approval. With 4.78 km of it stretching over the sea, the bridge will take six years to build, with completion expected in 2105.
Kinmen Magistrate Lee Wo-shih, who was present when the council approved the plan, said the bridge is "necessary for the overall development of the county." Under the plan, the bridge will have two lanes, in addition to one bicycle lane in either direction that could be converted into car lanes if necessary.
The bridge will generate a net value of NT$2.6 billion in transportation cost savings and tourism in the first five years of its opening, which would represent a return of 8.21 percent on the investment, according to Lee.
(eTaiwannews) 8.2.10
Renewable energy policy to start this year: official
Despite considerable difficulties at present in the government's efforts to promote a renewable energy policy, Vice Minister of Economic Affairs Hwang Jung-chiou said Saturday the policy must be implemented this year.
Speaking at a public hearing on the issue held by lawmaker Cheng Lee-wen at the Legislative Yuan and attended by government officials, academics and business representatives, Hwang made it clear that the policy must hit the road in 2010, although he admitted that this will be difficult to implement.
"It might seem an easy task to promote the policy in theory, but it is actually almost a political mission impossible in practice, if we take the ensuing difficulties into consideration, " he explained, adding that persuading Taiwanese households to pay higher monthly water fees after the implementation of the policy would be particularly difficult.
As an example of this, Hwang said, Taipei City once tried to impose a NT$0.5 hike in the unit price for water, but the proposal was met with strong objections from local councilors. At present, each unit in Taipei City costs NT$7.8, lower than the NT$10 charged in the rest of the country.
Taiwan's water price, far below the cost of production, is extremely cheap compared with developed countries.
Taiwanese families spend 0.5 percent-0.6 percent of their annual expenditure on piped water each year, much lower than the 2 percent-4 percent suggested by the World Health Organization, a local water company said.
Environmental Protection Administration Minister Steven Shen, who also attended the hearing, suggested that auxiliary measures should be put in place across the board to be in line with the implementation of the renewable energy policy, following the method used in Germany.
According to Sheng, Germany is the only country in the world that has succeeded in holding on to a renewable energy policy.
(eTaiwannews) 6.2.10
Taiwan consumer prices rise for 1st time in a year
Taiwan's consumer prices rose for the first time in a year as the economy shows signs of recovering from its deepest recession.
The consumer price index rose 0.29 percent in January from a year earlier, the state statistics bureau said yesterday in Taipei. That compared with the median of 11 estimates in a Bloomberg News survey for a 0.3 percent gain. Prices fell a revised 0.22 percent in December.
The central bank will probably maintain record low interest rates to boost investment and private consumption even after the return of inflation, economists say. Governor Perng Fai-nan told reporters Dec. 24 after leaving the discount rate on 10-day loans to banks at 1.25 percent that prices will remain "subdued” over the next three months.
"The governor is signaling that he will keep rates unchanged because inflationary pressure is weak,” said Mill Lin, an economist at Chinatrust Commercial Bank in Taipei.
The island's gross domestic product shrank 1.29 percent in the three months through September, the least in a year, after contracting 6.85 percent in the second quarter. The economy may expand 4.39 percent this year, the cabinet's statistics bureau projected in November.
Yesterday's report was released after the close of trading on the stock exchange. The Taiex index dropped 4.3 percent yesterday to the lowest since Sept. 4.
Food prices fell 0.11 percent from a year earlier after dropping 3.4 percent in December. Education and entertainment costs decreased 3.55 percent and the price of transportation advanced 6.69 percent.
Core consumer prices, a category excluding vegetables, fruit, fish and energy, slid 1.11 percent after falling a revised 0.74 percent in December.
Wholesale prices, which track the cost of goods sold to retailers and producers, rose 6.68 percent from a year earlier, compared with a revised 5.75 percent rise in December.
(Taiwan Headlines) 6.2.10
Taiwan airport upgrade to boosts property market: CLSA
Taiwan property prices may rise at least 30 percent near the island's main airport once the government renovates terminals and completes a rail link to the capital city, according to CLSA Ltd.
"This will be a big boost,” Tayher Lim, a property analyst at CLSA, said Jan. 29. “Once the train is ready, a 30 percent surge in housing prices won't be a problem.”
Remodeling of Taoyuan International Airport's first terminal will be completed by August next year, Transportation and Communications Deputy Minister Yeh Kuang-shih said in a phone interview Jan. 29. A new rapid transit system to the airport will be ready between 2014 and 2015, Yeh said.
The government has budgeted NT$293.7 billion over eight years to overhaul airport infrastructure including roads to boost the economy. The upgrade will help absorb surging traffic amid improved relations with the mainland, the largest exporter to the island.
The Taoyuan airport overhaul was among President Ma Ying-jeou's election campaign pledges before taking office in May 2008. His 12 “Love Taiwan” infrastructure projects will cost an estimated NT$3.99 trillion over eight years. The government is hoping for a turnaround in its economy, which shrank 1.29 percent in the third quarter.
Taiwan and China resumed direct flights, shipping and postal services in December 2008, ending a ban that had been in place since Chiang Kai-shek's Kuomintang, or Nationalists, fled to the island after being defeated by Mao Zedong's Communists in 1949. Direct flights operated exclusively by Taiwanese and Chinese carriers more than doubled to 270 a week in December from August.
China halted planned military exchanges with the U.S. over the weekend and said it will punish companies involved in a Pentagon plan to sell weapons worth US$6.4 billion to Taiwan. The plan "harms China's peaceful reunification efforts,” according to a statement on the Web site of the Foreign Ministry in China, which quoted Vice-Foreign Minister He Yafei.
The Beijing-based Taiwan Affairs Office of the State Council also said the planned U.S. arm sales would “instigate the pro-independence forces in the island and hamper the peaceful development of cross-strait relations.” Ties are at their warmest since a civil war six decades ago, after Taiwan's President Ma took office almost two years ago and abandoned his predecessor's pro-independence stance.
The investments at Taiwan airport will boost the property market in the “long term,” said Peter Tseng, a manager at Sinyi Realty Co., Taiwan's biggest real estate broker. “We can see a surge after the entire project is completed,” he said.
The train system now under construction will ease congestion and pare traveling times, while an aviation park will offer businesses a free-trade zone, including tax breaks and exemptions, Deputy Minister Yeh said.
"There's limited land around that area so the demand will cause land prices to spike,” Monika Yang, who helps oversee US$2 billion at Hamon Asset Management Ltd. in Hong Kong, said by telephone in Hong Kong. “The business people would also want to buy apartments near the airport to facilitate their travel.”
Tourist arrivals from China surged more than threefold last year to 970,000, and the tourism bureau is expecting 1.1 million this year, Wayne Liu, a spokesman for Taiwan's tourism bureau, said in a phone interview in Taipei. A total of 4.8 million overseas visitors are expected this year, from 4.4 million last year, Liu said.
The airport's first “facelift” in more than 20 years has become more urgent as the government aims to double the total number of users to more than 50 million when the project is completed, from the 20 million now, said Deputy Minister Yeh.
"The first impression a foreigner gets when he comes to Taiwan will be the airport,” Hamon Asset's Yang said. “Our airport must be one of the oldest in the world. It even has a smell to it. This is not good for Taiwan's image.”
(Taiwan Headlines) 2.2.10
CONTACTING THE CHAMBER
Mr. Sidney Wong, Executive Secretary, at Tel.: (852) 2546 9881 / Fax: (852) 3003 6506, e-mail: info@ncchk.org.hk. Address: c/o Royal Norwegian Consulate, Rooms 1510-12, West Tower, Shun Tak Centre, 168-200 Connaught Road Central, Hong Kong.
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