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The Week May 21 - May 26

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Shift in view helps Air NZ win rights for London route

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Air New Zealand was given the go-ahead by the SAR Government to begin competing on the important Hong Kong to London route, facilitated by a shifting view on economic competition. Air NZ is believed to be starting a service on the well-travelled route by the end of the year. It will also expand its Auckland to Hong Kong services to a daily schedule. Entry to the route followed a substantial expansion of New Zealand's air-traffic rights into Hong Kong through the Government, including the right to pick up passengers at Chek Lap Kok for transit to a further destination, which is effective immediately.

Investment banks oppose bill on derivative disclosures

Nine investment banks voiced opposition to the proposed Securities and Futures Bill, saying the proposals for derivative trading disclosure are tougher than elsewhere in the world. They asked the Government to amend the bill to exclude disclosure on some derivatives and ensure the disclosure regime 'reflected more closely the existing laws in Hong Kong and other markets'. The banks feared the legislation would discourage international investors from trading in Hong Kong shares, undermining the SAR's position as an international market.

Beijing may carve up China Telecom to boost competition

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China Telecom - the mainland's monopoly fixed-line operator - may be split up to boost competition in the country's telecommunications industry. On Monday, Beijing confirmed major changes were in the offing at the company. Options are believed to include splitting it into two regional entities - one based in the north of China, the other in the south - and carving it up into separate businesses along different product lines. The drastic move, if approved, could push back to next year China Telecom's overseas listing, originally expected in the third quarter this year.

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