Hong Kong and France sign Trade Agreement

Hong Kong has recently signed a Memorandum of Understanding on cooperation in wine-related businesses with French city Bordeaux. For Bordeaux, it is first official deal with a wine-growing region.

The above-mentioned document was signed on October 8 by Permanent Secretary for Commerce & Economic Development (Commerce, Industry & Tourism), Yvonne Choi form Hong Kong side and Laurent Courbu, president of the Bordeaux Chamber of Commerce & Industry form French side. 

The Memorandum of Understanding covers cooperation in wine-related tourism, the transfer of technologies relating to wine storage and manpower training, trade and investment promotion, and unique and specific deliverables typical of Bordeaux. Also, the future cooperation will include a wine festival in Hong Kong that will be held in 2009 with a reference to the Wine Festival in Bordeaux.

As wine duty was abolished in February, Hong Kong became the 1st free wine port among major countries. In the 1st 5 months after reducing the duty wine imports have increased 95% in value as copared with the same period last year. As to wine imports from France, they have grown 116% in value.

Filed under: International Business Environment

Banking Sector Outlook becomes less promising in Hong Kong

In accordance with a Monetary Authority publication, the outlook for the Hong Kong banking sector for the rest of the year 2008 has become less promising.

Quarterly Bulletin September issue published by the Monetary Authority says that the loan portfolios of retail banks are going on expanding rapidly in the quarter, however its further growth might be limited by sluggish deposit gains.

The aggregate value of classified loans increased 14.3% in the 2nd quarter, while a 1.3% rise was observed in the 1st quarter. The classified loan ratio grew from 0.81%to 0.88%. The ratio of overdue and rescheduled loans went on falling to 0.53%.

It also should be mentioned that Hong Kong dollar deposits decreased to 2% in the 2nd quarter, which pushed the Hong Kong-dollar loan-to-deposit ratio to 74.9% – this is an increase from 71.1% in the 1st quarter and 65.1% in the 4th quarter of 2007.

Filed under: Banking Services

Real-Time Stock-Price Web Tool to be developed by HKEx

It was announced on September 17 that Hong Kong Exchanges and Clearing (HKEx) is looking for expressions of interest from the market in developing a business model for the free dissemination of basic real-time market prices on Internet sites.

HKEx aims at raising the local market profile in the Mainland to prepare for closer integration of the 2 markets, increasing market transparency, and exploring a new revenue stream.

The request was posted on the HKEx website on September 18. Also, it was published in 2 Hong Kong and 2 Mainland newspapers. The deadline for responses to this request October 17.

Filed under: HK as a Financial Centre

HK Securities Industry becomed less profitable

In accordance with the latest issue of the Financial Review of the Securities Industry produced by the Securities and Futures Commission (SFC), Hong Kong’s securities industry reported a profitability decline in the 1st 6 months of year 2008, compared to the 2nd half of year 2007.

The report that was compiled from monthly financial returns filed by the financial industry describes the financial position of all licensed securities dealers and securities margin financiers, including non-participants of the Stock Exchange of Hong Kong Limited (SEHK).

The report issued by the SFC gives an account of all SEHK participants’ performance that is categorised by turnover. Net profit of all SEHK participants was HK$ 21.3 billion in the 2nd half of last year, while it was HK$ 9.6 billion In the 1st half of 2008.

It is also noted in the report that daily average market turnover in the 1st 6 months amounted to just HK$ 87 billion, compared with HK$ 116 billion for the half-year period ended December 31, 2007.

Filed under: Investor's news