The Hype of Pandas Coming to HK

HK and Chinese officials are excited about pandas coming

As if a distraction from Hong Kong's struggling economy, there's a lot of attention focused on the city getting a pair of pandas from China. Even Chief Executive John Lee Ka-chiu has flown to Sichuan to see pandas, though it's not clear if he's seen the pandas chosen for Hong Kong.

"The male panda weights 120kg and has been described as agile, clever and active, while the female is around 100kg and is gentle and adorable, with a mild temperament," Lee said. 

Hmm... sounds like what he expects male-female relationships to be like... whatever the species...

Lee (far left) seeing pandas in Sichuan

Lee hopes the pair will produce offspring to bring "even more joy and warmth" to the public.

Before the pandas come to Hong Kong, they need to be quarantined for 30 days in China and another 30 days in Hong Kong before the public can see them.

Again where did this 60-day quarantine number come from?

The Chief Executive hopes to have the pandas by -- you guessed it -- October 1, National Day.

Communist Party secretary of Sichuan Wang Xiaohui met the Hong Kong delegation on Monday and said the central government's move to give the pair of pandas to Hong Kong showed its care and support.

"Sichuan is the hometown of giant pandas, and the pandas gifted to Hong Kong by the central government all come from Sichuan," Wang said. "Giant pandas have become special envoys and a bond of friendship between the people of Sichuan and Hong Kong.

"Under the unified arrangements of the central government, we will fully cooperate and make all necessary preparations to ensure that the giant pandas can soon arrive and meet with the people of Hong Kong."

The hype is growing...

HK Market Sees Spectacular Trading Flop Debut

Chabaidao had biggest debut flop in Hong Kong since 2015

Hong Kong Exchanges and Clearing, which operates Asia's third-largest stock market, had a 13 percent drop in profit for the first quarter with fewer new listings and lower turnover. 

From January to March this year, net profit was HK$2.97 billion (US$380 million). 

Hopefully the second quarter gets better?

Bloomberg followed Chabaidao's first trading day

The city's largest IPO in 2024 was a Chinese bubble tea chain, Sichuan Baicha Baidao or Chabaidao (2555), which raised HK$2.59 billion (US$330 million), or HK$17.50 per share back in November.

How did it do on its first day of trading yesterday?

Soon after the markets opened, it plunged 38 percent to HK$10.80 before finishing the day slightly higher at HK$12.80.

It was considered the worst debut since 2015 for a company that had raised at least US$300 million, according to Bloomberg.

Yikes. 

Another company, Tianjin Construction Development Group also made its debut in the market and it also tanked, dropping more than 30 percent in value after having raised US$20 million in its IPO.

Not exactly what the Hong Kong government had in mind when it had hoped the stock market would help reboot the city's trading market, which has seen a drop in new listings for four consecutive years.

Lee optimistic the market will be bullish 

However, Chief Executive John Lee Ka-chiu remains optimistic that new measures by China's securities regulator will help boost sentiment.

"Dozens of companies have applied to the mainland regulators for going public in Hong Kong, including large companies from traditional industries like manufacturing and logistics, as well as key companies from high value-added industries like AI and fintech," he said.

"We have also been actively promoting financing in Hong Kong to top unicorn companies in the mainland," Lee said, referring to startups worth at least US$1 billion.

Last year the Hong Kong exchange only saw 73 IPOs, raising HK$46.3 billion...

Mocking Incident Puts Cathay Pacific on Damage Control

Three Cathay flight attendants were fired for mocking passengers

Cathay Pacific's problems continue to prevent it from getting itself out of the rut of the pandemic and now it has to do major reputation rebuilding after some flight attendants verbally mocked some Chinese passengers.

On a recent flight from Chengdu, Sichuan province to Hong Kong, three crew members were accused of making fun of passengers' language abilities by saying in English, "If you cannot say 'blanket', you cannot have it."

A Mandarin-speaking passenger complained about the incident which at first led the trio to be suspended, and then fired.

Lee warned Lam not to repeat the incident

But that was not enough.

Hong Kong Chief Executive John Lee Ka-chiu waded into the issue, saying he was angered and disappointed, and that he had personally instructed Cathay Pacific management to handle the incident seriously, and that the airline must review staff training and improve its customer service culture.

"These disrespectful words and deeds have hurt the feelings of compatriots in Hong Kong and the mainland, and also undermined the city's existing culture and values of respect, courtesy and inclusiveness," he said.

"I am outraged and disappointed by the fact these bad deeds happened on a Hong Kong flight."

He told Cathay Pacific's CEO Ronald Lam Siu-por the incident was serious and had damaged Hong Kong's image, and urged Lam to ensure the incident would not be repeated again.

For his part Lam apologised in Mandarin to passengers who were affected by the incident as well as the wider community, and vowed to prevent a repeat of the situation.

Lam will ensure training and "customers first"

The CEO said he would lead a cross-department task force to enhance the company's "customers first" culture, and ensure its service had a solemn and polite image, and improve its quality.

Does Lee know that Hong Kong residents disparage mainland tourists on a daily basis? Is he going to punish them too?

Post-Covid there are complaints from the tourism sector that the city is getting the cheap Chinese tourists, the ones who have never visited Hong Kong before and don't mind seeing only the free landmarks and eating rice boxes. 

That's because the tensions between mainlanders and locals were never resolved as far back as a decade ago -- remember the term "locusts"? -- and so it's no wonder these situations have flared up again. 

Trying to get Hongkongers to shut up will be very hard, despite the dependence on these cross-border tourists to get the hospitality industry back on its feet again. 

It's a pity Hong Kong has put most of its eggs in this China basket, when all investors know it's better to diversify to ensure more balanced returns...

Covid-19 Priorities in China, Hong Kong

Firefighter getting a PCR test, with wildfires burning nearby

Imagine you're a firefighter in Chongqing, Sichuan province, and there are wildfires just outside the city in the mountains.

So you and your fire brigade rush to the area -- only to be forced to take PCR tests for Covid-19 first.

Even though the forests are burning in the distance since August 2 caused by the heatwave there, fighting the pandemic takes priority.

One would think being outside and wearing oxygen masks there would not be the need to be tested for Covid-19.

But that's China's zero-Covid policy.

Lo scaremongering the public in Hong Kong

While Hong Kong doesn't have wildfires, its authorities are trying to scaremonger its residents into staying at home and locking themselves in their own homes until the pandemic is over.

Secretary for Health Lo Chung-mau gave such a warning in yesterday's press conference. 

"We cannot promise that there may not be other social-distancing measures. In fact if you look at the whole world, there are different emerging diseases coming up, from SARS to the avian flu, we have different Ebola viruses, we have different emerging diseases coming up, and then this Covid came out two and a half years ago. Nobody would imagine it would stay for so long. and now we also have the monkey pox," he says, piling on a laundry list of viruses. 

"So there is no reason that the government can promise that we would not introduce other measures to control emerging infectious diseases," he continues. 

"Covid is still mutating, we are seeing new mutants coming up and in case there is a more virulent Covid coming up, mutant coming up, we cannot guarantee there will not be other social-distancing measures to control the pandemic or a new emerging disease."

If you are someone who doesn't have friends overseas telling you the Omicron strain is not that severe if as long as you are vaccinated, or if you don't read the news reports from other countries explaining the mutated virus is more transmissible but less severe -- you would be so terrified of even opening your door and going outside your home.

Then on top of that 30 percent of Hong Kong's elderly population over 80 have not even been vaccinated. Lo admitted as much. 

"If they contract Covid, the mortality rate is in the region of 16 percent. And we have to learn from history, in the fifth wave, we do suffer a serious situation with a high mortality of over 9,000 deaths. And the whole public health system is overworked," he says. 

"So I would urge you -- anyone who said that we can easily lift with the virus now as other countries I would submit I cannot agree with that as a responsible government we have to protect the health of our people, even though they are elderly, every life matters."

One can surmise that Lo is saying the entire Hong Kong population is being held hostage by these elderly people who refuse to get jabbed. 

What a responsible and caring government... one that is willing to slash and burn its own economy, its next generation and its future by continuing to shut Hong Kong down for the sake of the elderly.

It's a message not many people aren't going to understand and accept...