Sunday THE Bank for International Settlements warns that the rapid growth of on-line broking and electronic exchanges was posing significant challenges to traditional stock markets and market regulators. Officials say surveillance and jurisdictional authority need to be addressed. (SCMP) GUANGDONG Investment announces the resignation of director Sun Guan following revelations by the company of alleged irregularities and improper accounting. A Guangdong source says Sun has been detained by mainland authorities for investigation in relation to trading in locally listed companies, part of which has been done through his personal account. (Economic Journal, SCMP) Monday HONG KONG posts its ninth consecutive month of deflation with the consumer price index declining 5.5 per cent year on year last month. Summer discounting by retailers, declining property rents and the Government's one-off reduction in property rates are blamed for the record fall. (SCMP) NINE companies which have been suspended by the stock exchange for more than three years face losing their listings. This follows the delisting of Englong International by the exchange as it gets tough over prolonged suspensions. (SCMP) STANDARD Chartered Bank predicts the price war among banks in the home mortgage market will continue until the end of the year as demand for corporate loans remains sluggish. Peter Wong Tung-sing, the head of consumer banking for the SAR, mainland and Philippines, says the bank does not want rates to fall below the 8.25 per cent prime rate as this would increase risks. (SCMP) Tuesday UNSECURED creditors of collapsed Peregrine group's largest operating arm, Peregrine Fixed Income, will receive 12.5 cents on the dollar, or a total of $1 billion. Liquidator PricewaterhouseCoopers says the payout is slightly higher than a March forecast of at least 10 cents.
(SCMP) PROVISIONAL figures show the volume of retail sales in June was almost unchanged from a year earlier, a sign the 21-month consumer spending slump is stabilising. a Government spokesman says consumer demand is picking up but economists say deep deflation and redundancies continue to depress consumer confidence. (SCMP) THE SAR Government has signed an agreement with Beijing to make local arbitration awards enforceable in the mainland. This is expected to help rebuild Hong Kong's reputation as a leading arbitration venue in the region and bring millions of dollars of business. (SCMP) Wednesday CITIC Pacific reports a disappointing 15.7 per cent year-on-year net profit drop in the first six months to $1.51 billion. Chairman Larry Yung Chi-kin says the company would 'adopt a more aggressive approach [to new investments] than in 1998', surprising analysts. Investments being considered by Citic include power plants. (SCMP) VISITING US diplomat Derek Shearer, a senior fellow at the Economic Strategy Institute, says the SAR Government should resist attempting to force through projects like the Cyber-Port and Silicon Harbour in its efforts to diversify the economy into high-technology industry. Rather, it should concentrate on ensuring suitable economic and business conditions to nurture start-up companies. (SCMP) MALAYSIA'S economy has grown by a better-than-expected 4 per cent year-on-year during the second quarter, putting an end to the country's worst recession in more than 40 years. Despite the bullish figure, Chris Nailer, a regional economist at the Economist Intelligence Unit says 'we would need at least two years of annual growth of this magnitude to make up for the drop in 1998'. (SCMP) Thursday CONGLOMERATE Hutchison Whampoa reports a 69.6 per cent rise in net profit in the first half year to $7.31 billion, helped by a $5 billion one-time gain, from the February sale of a 4 per cent stake in Britain-based mobile-phone operator Orange. Chairman Li Ka-shing expects overseas interests to continue to drive growth in the next two to three years. (SCMP) THE Government unveils a 3 per cent year-on-year rise in value of total exports last month to $122.6 billion, the first monthly rise since March last year. Hong Kong General Chamber of Commerce chief economist Ian Perkin says the SAR appears to be benefiting from the mainland's export performance. (SCMP) HONG KONG'S office rents remain the third most expensive in Asia despite a 15 per cent fall in the past six months, according to a survey by consultancy Cushman & Wakefield. Prime office rent in the territory has fallen to US$63.64 per square foot a year. (SCMP) Friday CITIC Pacific announces it is to sell back a 15 per cent stake in CLP Holdings, bringing to an end prolonged speculation about the course of the two companies' 31-month relationship. After a day of intense market speculation, the two companies announce that CLP would pay $12.78 billion for the stake. (SCMP) LEADING banks raise their prime rates by a quarter of a percentage point to 8.5 per cent, increasing the burden on home-buyers in repaying their mortgages. The move follows a decision the previous day by the Hong Kong Association of Banks to increase savings-deposit interest rates by the same amount to 3.75 per cent after a US rate rise on Tuesday. (SCMP) SOURCES say the futures exchange chief, Randy Gilmore, will probably be forced to resign following the delay in the start of electronic trade in Hang Seng Index futures. Mr Gilmore's three-year term is due to expire at the end of next year, but the source says he is 'likely to quit soon'. (SCMP)