Hong Kong’s Consumer Prices Rise for a Third Month

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Bloomberg

Hong Kong’s consumer prices rose for a third month after government subsidies for power and housing costs expired and as the city’s economic recovery encouraged consumer spending.

Prices climbed 0.5 percent in November from a year earlier, the government said today on its Web site, after gaining 2.2 percent in October. The median estimate of seven economists surveyed by Bloomberg News was for a 0.8 percent increase.

Inflation is likely to be restrained in the first half of 2010 by excess global capacity, the Hong Kong Monetary Authority said in a Dec. 16 report. The city’s central bank cautioned that rents have rebounded along with real-estate prices and inflation may pick up “more notably” in the second half of next year.

“Through the first half of next year, inflation should be mild,” said Kelvin Lau, a Hong Kong-based economist at Standard Chartered Plc. “It may start to pick up in the second half due to rising rentals.” Lau forecasts consumer prices will rise 2 percent in 2010.

Lower inflation in November compared with October was partly because of changes to government rental concessions in those months in 2008, Lau said.

Hong Kong snapped three months of deflation in September. Prices are climbing partly because the government ended subsidies for electricity in August and public housing rentals in September. The economy has expanded for two quarters after a yearlong recession and the jobless rate fell to a nine-month low in the three months ended Nov. 30.

The Hong Kong Housing Society, which manages 33,000 flats, said Dec. 18 that it will raise rents 3 percent for the fiscal year starting in April, the first increase in 12 years. The society is a non-profit organization providing subsidized housing.

To contact the reporter on this story: Sophie Leung in Hong Kong at sleung59@bloomberg.net This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Savannah art college opening campus in Hong Kong

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The private school, which already has U.S. campuses in Savannah and Atlanta and an international campus in Lacoste, France, will offer 14 degree programs at the new Chinese campus starting fall 2010. Programs will include photography, advertising, graphic design, illustration and animation.

The new campus is expected to start with 300 students and 14 faculty members. The number of students is expected to grow to 1,500 in the next five years.

Australian musician in critical condition in Hong Kong

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A 21-year-old Australian classical musician remains in critical condition at a hospital in Hong Kong, two days after his room-mate died of a suspected drug overdose.

Staff at a Hong Kong hotel discovered Evan Williams unconscious in his room along with fellow orchestra member Joseph Hall on Saturday.

The men, who had no external injuries, were rushed to hospital where Mr Hall died on arrival.

Local media have reported that the case is being treated as a suspected drug overdose.

The two musicians had been on tour with the Western Australian Youth Orchestra for a series of concerts in Singapore and Hong Kong.

GMA monitoring situation from Hong Kong

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Paolo Romero

President Arroyo is monitoring developments in Albay and the possible eruption of Mayon volcano from Hong Kong where she is spending a three-day vacation with her family, her spokesman said yesterday.

“Although she’s on vacation, as usual she’s on top of major concerns in the country and what’s going on in Mayon volcano,” said presidential economic spokesman Gary Olivar, adding authorities have put in place a “high-level of preparation and readiness” after the alert level for Mayon was raised to 4.

The First Couple, along with their grandchildren, left for Hong Kong on Sunday for a private vacation. Mrs. Arroyo is expected to be back tomorrow.

Meanwhile, the Albay provincial health office has already been coordinating with the Department of Health (DOH) to meet the immediate health needs in the evacuation centers. The World Health Organization (WHO) has pre-positioned Emergency Health Kits containing essential medicine and supplies for Albay residents.

The frequent ash explosions in Albay are a health threat to the residents. Exposure to ash is harmful especially for infants, the elderly and people with respiratory conditions like asthma, emphysema and other chronic lung diseases. Aside from that, crystalline silica in ash particles may cause a respiratory disease called silicosis.

People are encouraged to wear face masks to prevent excessive inhalation of ash particles.

CE commends Hong Kong athletes' outstanding achievements in EAG

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The concerted efforts of all parties involved and the strong determination and great perseverance of the athletes, who set many new EAG records, created the proudest moments of the Games. Hong Kong athletes achieved their best-ever result in the Games by winning a total of 110 medals comprising 26 gold, 31 silver and 53 bronze.

This medal tally meant Hong Kong ranked 4th among the participating countries and regions. To commend the outstanding performances of the Hong Kong athletes, the Government and the Sports Federation & Olympic Committee of Hong Kong, China (SF&OC), today (December 18) held a celebration ceremony at the Hong Kong Central Library. The Chief Executive, Mr Donald Tsang, officiated at the ceremony to present certificates of appreciation to the athletes who won gold medals at the EAG.

Mr Tsang praised the Hong Kong athletes for their perseverance and the true sportsmanship they demonstrated at the Games. Also officiating at the celebration ceremony were the Secretary for Home Affairs, Mr Tsang Tak-sing, and the President of the SF&OC, Mr Timothy Fok. They presented certificates of appreciation to the athletes who won silver and bronze medals at the EAG.

Speaking at the ceremony, Mr Timothy Fok said that with the support of the whole community, the Hong Kong delegation achieved the best results ever since it first took part in the multi-sport event, living up to people's expectations. He said he believed that all members of public would agree that Hong Kong athletes had created a legend. Their adventurous spirit and arduous training had set an example for others.

The EAG is held every four years. The 5th EAG was held in Hong Kong between December 5 and 12. About 2,300 elite athletes from nine countries and regions competed for 262 gold medals in 22 sports.

The nine participating countries and regions were: China; the Democratic People's Republic of Korea; Mongolia; Japan; Korea; Chinese Taipei; Macau, China; Guam, and Hong Kong, China. The Hong Kong delegation, comprising about 380 athletes, competed in all 22 sports at the 5th EAG. At the 1st EAG, the Hong Kong delegation won one gold, two silver and eight bronze medals; it won one gold, five silver and four bronze medals at the 2nd EAG.

Participating in the 3rd EAG in the name of Hong Kong, China, the Hong Kong delegation won three gold, four silver and eight bronze medals. At the 4th EAG held in Macau in 2005, the Hong Kong delegation scored two gold, two silver and nine bronze medals.

Hong Kong Residential Property to See Further Price Gains

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PRNewswire-Asia

The latest update on residential property market activity in Hong Kong is due shortly as the Hong Kong Monetary Authority publishes the November mortgage survey. Furthermore, a sharp increase in retail sales and imports in October and November respectively indicate much improved consumer sentiment. With the labour market also on the mend, house prices will gain momentum.

UK commercial property may see double digit returns in 2010

The recovery in UK commercial property prices gained momentum in November. This week's release from IPD showed a 2.4% rise in capital values which was the largest monthly gain since March 1994. An additional positive for the market, is the nascent improvement in lettings activity which was recorded in the latest RICS UK commercial property survey.

Euro area mortgage lending to grow modestly at best in 2010

Euro area M3 lending data for November is due from the ECB on Wednesday 30th. Annual growth in M3 lending is currently running at 0.3%. This is the lowest figure on record (the series began in January 1980) and compares to the peak of 12.5% in October 2007. Over the next 12 - 18 months, we are likely to see only modest growth in mortgage lending at best, rather than a fully fledged recovery.

Hungarian home loans continue to slip but interest rates head lower

The Hungarian central bank (MNB) meets again on Monday 21st having cut interest rates last month to their lowest level since June 2006.

Please download from the following for the complete report content: http://www.creativegp.com/RICS/RICSGlobalRealEstateWeekly-Dec18.pdf

David Webb Calls Time on His Hong Kong Christmas Stock Pick

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Bloomberg

David Webb, a Hong Kong-based shareholder activist whose stock recommendations have outperformed Hong Kong’s benchmark index in eight of the past ten years, called an end to his “Christmas Pick” tradition.

“It has become something of a distraction to our main goal of raising the standards of Hong Kong’s corporate and economic governance,” the publisher of Webb-site.com said in a posting on his Web site today. “We think this is a suitable time to call an end to this before it gets out of hand.”

Webb, an Oxford University graduate and full-time investor served five years on the board of the city’s stock exchange before quitting in May 2008, citing political interference and poor corporate governance. Webb today said he’s being asked to set up a “Good Governance Fund” for investors, which he would review.

“We will continue to issue warnings about listed companies which may often be considered as ‘sell’ notes by those who own them and ‘don’t buy’ notes to those who don’t, but the good stuff we will keep to ourselves,” Webb said.

Alco Holdings Ltd. jumped 23 percent last year after Webb had named it as his Christmas pick. The shares of the consumer- electronics supplier rose 132 percent this year, outperforming the 47 percent increase in the benchmark Hang Seng Index.

To contact the reporter on this story: Sophie Leung in Hong Kong at sleung59@bloomberg.net