HONG KONG BRIEFING May 2005

News this month

Chief executive row

Beijing's national legislature has been called in to settle a dispute over the length of term for Hong Kong's chief executive, fuelling concerns over the island's autonomy. Donald Tsang Yam-kuen, who stepped in as chief executive when Tung Chee-hwa resigned in March, directly asked for Beijing's interpretation of the Basic Law, which governs relations between China and Hong Kong. Many have criticised Mr Tsang's controversial decision to bypass Hong Kong's courts.

At issue is whether Ms Tsang should automatically serve the two years remaining in Mr Tung's five-year term, or if he should stand for fresh elections in July. Wen Jiabao, China's premier, said a swift interpretation of the Basic Law is essential to the island's stability and prosperity. The legislature is expected to give its decision during a four-day session that opens on April 25th.

growling tiger

Spring brought plenty of good news for Hong Kong's economy. It grew by 5.3% in the year's first quarter, according to the Hong Kong Macroeconomic Forecast, released by the Apec Study Centre on April 7th. This surpasses an earlier forecast of 4.4%. And in March, the Tourism Board announced that it expects more tourists this year, increasing its forecast to 23.4m from 22.9m. This statement was in response to the March 16th annual budget, which allocated HK$500m to promote tourism.

Henry Tang Ying-yen, Hong Kong's financial secretary, has produced the first fiscal surplus since 1999-2000. He predicts the deficit of more than $13 billion will be fully balanced by 2007-08. Mr Tang also warned that a goods and services tax would be put to public consultation after the new chief executive is elected in July. In other good news, the city's unemployment rate is shrinking. It remained at 6.1% for the first quarter, the lowest rate since November 2001. In the city of 6.8m, the number of employed people rose to a record 3.35m, the government reported on April 19th.

Restoring ties

Bishop Joseph Zen, the outspoken leader of Hong Kong's Catholics, has urged China to restore diplomatic ties with the Vatican. In return, he promised, the Holy See would end relations with Taiwan. When China cut diplomatic relations with the Vatican in 1951, the Holy See became the only European state to recognise an independent Taiwan. On April 8th, Mr Zen said that “if China allows, [the Vatican] would move its embassy in Taipei to Beijing. We are not talking about tomorrow. We can do it today.”

When the late pope kept a newly appointed cardinal's name in pectore, or in secret, in 2003, many speculated it was Bishop Zen, who, as the head of Hong Kong's 224,000 Catholics, has the only diocese on Chinese soil. His relentless defence of the estimated 10m secretly-practicing Catholics in China has won him permanent dismissal from the mainland.

Getting richer

Hutchison Whampoa, the Hong Kong-based flagship conglomerate of Li Kai-shing, Asia's richest man, reported a 38% rise in profits during 2004, after asset sales offset losses from its third-generation mobile-phone unit. Hutchison reported a net profit of HK$16.13 billion ($2.06 billion) last year, up from HK$11.68 billion in 2003. Chueng Kong, Mr Li's real-estate holding company, earned HK$12.38 billion, 42% more than in 2003. Its biggest losses came from its telecom unit—even though the number of 3G subscribers rose—and from a joint venture with Procter & Gamble in China. Announcing the results on March 31st, Mr Li said the 3G network may post a profit as early as 2006. “I see the future with immeasurable confidence,” he beamed. “This is the first time I said this.”

Lo and behold

A 67-year old public-housing tenant is proceeding to Hong Kong's top court to fight development plans, delaying the government's sale of a $2.7 billion property trust, one of the world's largest. Lo Siu-lan, a welfare recipient, alleges the listing of 79,000 government-run parking spaces and 950,000 square metres of retail space breaches Hong Kong's housing code by threatening public-housing facilities. Though a court rejected her suit in December, on April 18th the Court of Appeal allowed it to proceed to the Court of Final Appeal, leaving investors jittery, and postponing the sale by the financially troubled Housing Authority. The initial stock offering was 130 times oversubscribed; more than 500,000 investors placed $36 billion in orders. The case is unlikely to be resolved before this summer.

Dangerous dim sum?

Hong Kong’s national dish of dim sum (translated as “touch your heart”) may actually place diners’ hearts at risk of ill health. The bite-sized snacks popular in restaurants and tea houses are so high in fat and sodium that they put diners at increased risk of obesity and cardiovascular illnesses, according to a study by the local food and environmental health department.
The Hong Kong government issued a health warning against regular consumption of the culinary staple after its researchers found that some dim sum snacks were up to one-third fat. “You definitely cannot have a dim sum meal every day,” said Dr Ho Yuk-yin, a department consultant. He recommended that diners instead opt for steamed buns and boiled vegetables, and select fewer pan-fried and deep-fried items.

Catch if you can

May 2005

From Eastern Han to High Tang

Until June 10th 2005

This $2 billion exhibition showcases 300 national treasures, and traces the development of China from the Eastern Han Dynasty (25-220AD) to the peak of the Tang Dynasty in 755. Some of the most famous images from Chinese culture come from the Tang Dynasty (616-907AD), when the Middle Kingdom was the world's most advanced civilisation, spreading wealth and ideas through the Silk Road. The fall of the Eastern Han led to an era of political instability, but also cultural openness, particularly in assimilating ideas from Western and Central Asia.

This travelling show covers 14 Chinese regions; it came from New York's Metropolitan Museum, and will move on to Japan. Highlights include a Han Dynasty pottery watch tower, a marble sarcophagus excavated from Shanxi Province in 1999, and a chariot whose driver reaches for the reins—the largest Han wood sculpture ever found.

Hong Kong Heritage Museum, 1 Man Lam Rd, Sha Tin. Tel: +852 2180-8188. Open: Mon, Weds-Sat: 10am-6pm; Sundays and holidays: 10am-7pm. Entry: HK$10.

For more information, visit the museum's website.

More from the Hong Kong cultural calendar