HNA Group's Bankruptcy Woes

Almost US$10 billion was embezzled by HNA shareholders

Remember HNA? On the conglomerate's website it says: "Sharing dreams, bring more possibilities to the world".

How about bringing more headaches to creditors and the Chinese government for having such a big company fail spectacularly on the world stage.

Hainan Airlines started in 1993

HNA Group, which owns Hainan Airways, in a very short period of time acquired companies around the world, including Hong Kong Airlines, an office tower in Manhattan, and Red Lion Hotels, and is now bankrupt.

In addition, three units of HNA says in disclosures to stock exchanges that nearly US$10 billion had been embezzled by shareholders. But the identities of these people/companies were not named. They may be revealed later.

The three units are Shanghai-listed Hainan Airlines Holding, HNA Infrastructure Investment Group, and Shenzhen-listed CCOOP Group.

A government-led team completed due diligence earlier this month and now it can move forward into bankruptcy restructuring, that will affect up to 500 companies under HNA. Caixin has previously reported HNA had 2,300 companies.

HNA bought this NYC office tower

Hainan Airlines was founded by Chen Fang and Wang Jian in 1993, and Chen had previously worked in the civil aviation authority. Wang died in 2018 after falling off a wall on a cliff during a holiday in France.

In its early days, the airline stood out from other state-owned Chinese airlines with its punctuality, in-flight service and new fleet, and this quickly won it legions of loyal travelers and expanded. Even US financier George Soros invested in the airline, its largest foreign shareholder that helped the company expand into logistics, tourism and real estate starting in 2006.

By 2017 HNA had ballooned into a global conglomerate with 290,000 employees, and 1 trillion yuan in assets. It went on a US$48 billion spending spree, buying up stakes in Hilton Hotels and Resorts, Deutsche Bank, Frankfurt-Hahn Airport, and 400,000 sq ft at the former Kai Tak Airport site to develop into a residential apartment complex.

Chen wanted HNA to be on the Fortune 100's list of the world's largest companies by assets.

But that all came to an abrupt end in June 2017 when China's financial regulators cracked down on it and other companies that went on their respective spending sprees, like Anbang Group, Dalian Wanda Group and Fosun Group.

Ex-Anbang chairman Wu Xiaohui in prison

For example Anbang tried to take over Starwood Hotels for US$13 billion and is now put under state control, and its former chairman Wu Xiaohui in jail for 18 years for fraud and embezzlement charges.

As of June 2019 HNA had 706.7 billion yuan in debt and has not updated its status since.

Gu Gang, head of the group to restructure HNA, admitted that the expansion at break-neck speed was driven by "hasty decisions", leaving HNA with "one huge bottomless pit after another", that forced it to sell its assets. 

"All we suffered and all of our efforts served only one purpose -- a successful restructuring," Gu said. "It is only through bankruptcy and restructuring that we can be reborn."

Meanwhile Chen has been kicked out of the company's Communist Party committee, a sign that he has nothing to do with the company's restructuring. Does this mean he will face further charges?

What will happen to HNA founder Chen Fang?

Hopefully this will be the end of China's "going out" phase, reckless spending, loose credit and risky leveraging of assets for acquisitions.

So much for dreaming to take over the world...

Govt Wants Real Name Registration for SIM Cards

The government wants to know who is using SIM cards

In a bid to supposedly cut down on crime in the city, the government is proposing every SIM card is registered under a real name along with other personal details.

The proposal was made yesterday to kick off a one-month public consultation, where users of prepaid SIM cards need to provide their full name, a copy of their ID and date of birth.

Many people buy prepaid SIM cards when visiting Hong Kong for a few days, or people with no fixed address prefer to use them, or even those who would rather pay as they use the phone than be obligated to sign a contract for a package with a telecom company.

Pre-paid SIM cards are cheaper than contracts

However, the government seems to think the anonymous pay-as-you-go SIM cards allow criminals to evade detection when committing offenses such as phone scams. The Commerce and Economic Development Bureau added the cards were used in serious and violent crimes that affected public security.

Sounds very dramatic.

Nevertheless this proposal is yet another step in mainlandizing Hong Kong. Back in 2017 when my parents and I traveled the Silk Road tour, our fellow travelers and I tried to buy SIM cards in Lanzhou and were immediately denied because we did not have Chinese ID cards. It was virtually impossible for us to get them so we had to rely on wifi in our hotels.

Maybe the government is uneasy about the numbers, as there are currently 11.7 million prepaid SIM cards being used in Hong Kong, though 9.2 million are connected to service plans. That means the total number of mobile subscriptions is 20.9 million, or almost three SIM cards per person.

Apparently many domestic helpers buy stacks of these pre-paid cards as they are on a budget, while travelers (when we had them) would buy them to use in Hong Kong.

Yau says phone scams use prepaid SIM cards

To add ammunition to getting all SIM card users registered, Secretary for Commerce and Economic Development Edward Yau Tang-wah said 90 percent of con artists used prepaid cards for deceptions, while 70 percent of offenders involved in serious crimes such as murder, robbery, burglary and drugs also relied on the cards.

"If we can eliminate these difficulties in detecting crime, actually the new measures do not affect law-abiding citizens but better protect their safety," he said, adding 155 countries had adopted similar regulations.

Does what he said sound familiar when the national security law came out, that it would only affect a small number of people?

However, what is amusing is that the consultation paper suggests each person can have a maximum of three SIM cards per telecom company, and with about 30 in the city, that means someone could have up to 90 SIM cards registered under their name...

Domestic helpers buy stacks of pre-paid cards

While it is understandable the authorities want to crack down on phone scams, with 615 reported in 2018 to 1,108 from January to November in 2020, victims have lost more than HK$563 million.

"The card has become a tool of the criminal," said security undersecretary Sonny Au Chi-kwong. "After committing crimes, they can keep getting a new one to avoid our detection. Without the culprits' identity, investigations became more difficult."

Will find out what happens after the one-month consultation is over, but it's pretty much expected this new regulation will be implemented...

China Tries to Stop Hong Kong Exodus

China says it will not recognize BN(O) passport from Sunday

 

The tit-for-tat between the UK and China went up a notch today when Beijing announced it would not recognize the British National (Overseas) passport as a travel and identification document from Sunday. It comes after the UK will start accepting applications for a pathway to citizenship from 5pm on the same day.

While some say this latest announcement by Beijing is largely symbolic, it could be the start of more restrictions to come, making it harder for Hongkongers to leave the city.

Lo says it could be harder to leave Hong Kong

Lo Kin-hei, chairman of the Democratic Party said in a YouTube video that while one can technically leave Hong Kong using their Hong Kong ID card and BN(O), but the government, and by extension Beijing could pressure the airlines to inspect every passenger for proper travel documents, the BN(O) not being one of them from Sunday.

The BN(O) is recognized by some countries like Japan, Singapore and South Korea, as well as Commonwealth countries, and many European ones. And for people immigrating to the UK, the BN(O) gives them the right of abode in the UK, and now the document will help them process their application to become British citizens in five years.

There is the possibility that 5.4 million Hongkongers could leave for the UK, and that angers Beijing.

"China will no longer recognize the BN(O) passport as a valid travel document or for identification, and we reserve the right to take further actions," foreign ministry spokesman Zhao Lijian said today.

Zhao says HKers could be "second-class citizens"

"In disregard for China's solemn position and the fact that it has been 24 years since Hong Kong returned to the motherland, the British side blatantly violated its commitment, formulated the so-called 'bespoke' policy of abode and citizenship in the UK for BN(O)s, and continued to expand its scope of application.

"The UK's move grossly violates China's sovereignty, interferes in Hong Kong affairs and China's internal affairs, and runs counter to international law and basic norms governing international relations."

Zhao warned that Hongkongers would become "second-class citizens' in Britain, and noted that the BN(O) scheme was no longer the one that had been agreed upon by both sides.

He is correct on the latter point: According to the Sino-British Joint Declaration that was signed in 1984, the BN(O) passport was to be a travel document only, and did not entail citizenship.

However, that was back then, and this is now. The UK feels a moral obligation to help Hongkongers and has modified its immigration rules.

One needs a HK passport to leave the city

It's amusing Zhao says Hongkongers will be treated like "second-class citizens" in Britain, as if this will deter them from leaving. Many are willing to make that sacrifice, young and old.

However, China could pressure countries that currently accept BN(O) passports to change their policies. It will be interesting to see how countries like Japan, South Korea and the Philippines handle that pressure.

Nevertheless this week there have been articles about Hongkongers who are already in the UK, many haven't found jobs yet, but do not regret leaving, though they miss the city. Others are planning to leave in the next few months and are having tearful farewells with families and friends. And then there are those who want to leave, but feel moral obligations to look after ageing parents, or they don't have the financial means or language skills to survive in the UK.

One thing's for sure, the exodus will continue, and will grow in the months to come.

Hongkongers Leery on Vaccine Jab

Which of these three vaccines would you want to take?

 

Should we be surprised? More than half of Hongkongers do not want to be vaccinated, up 17 percentage points over the past two months. Only 45.3 percent of people believe vaccines are safe, down from 59.6 percent two months ago.

The citywide poll was conducted by the University of Hong Kong, which also revealed fewer than three in 10 residents were prepared to take the vaccine produced by Chinese company Sinovac Biotech amid fears of its low efficacy at about 50 percent.

Leung says public needs more info on vaccines

Professor Gabriel Leung, dean of HKU's faculty of medicine said the government, the scientific community and the World Health Organization needed to provide "solid scientific evidence" to ease residents' concerns.

"Build trust by being honest, open and transparent and trust science," Leung said on Thursday. "We all need to do more explaining to the public."

The two surveys while conducted over the same period were done with different sampling methods and respondents, but Leung noted the data illustrated similar results.

He noted the proportion of residents in China polled on the same question last year was 88.6 percent, 79.8 percent in South Africa, and 67.9 percent in Singapore. But Leung said global confidence in the inoculations was broadly declining as misinformation and confusion over the shots increased.

The survey showed 55.9 percent of people accepted the Pfizer-BioNTech vaccine, followed by AstraZeneca shots at 35.3 percent. Sinovac at first had 38.2 percent acceptance, but it has now dropped to 29.5 percent after the release of data on its low efficacy.

We're all waiting for Lam to get inoculated first

The acceptance of the vaccines might also have to do with how the Hong Kong government rolled out the campaign. At first Chief Executive Carrie Lam Cheng Yuet-ngor said people would not have a choice of the vaccine and then after an uproar backtracked and said they could have a preference.

And then Sinovac not only did not produce enough vaccines for Hong Kong delivery by the end of January as promised, it also failed to publish comprehensive final phase trial data.

Like we said before, many would feel more confident watching Lam get a jab live and then scrutinizing her everyday for the following two weeks at least to see if she had any adverse side effects. How else is she going to persuade every resident to get the vaccine and reach her goal of zero infections?

 

Xi Wants "Patriots Ruling Hong Kong"

Xi Jinping listens to Carrie Lam give her work report today

 

Hong Kong Chief Executive Carrie Lam Cheng Yuet-gnor gave a virtual work report to her boss, Presideng Xi Jinping today. 

He said he was concerned about the pandemic situation in the city and praised Lam for her efforts, the latest of which have involved "ambush" lockdowns, though Xi was not as pleased as he was with the other Chief Executive, Macau's Ho Iat-seng.

Xi praised Ho's handling of pandemic in Macau

"In the face of the sudden pandemic, you responded quickly, adopted stringent measures and brought it under control within a short period of time," he told Ho, noting Macau had gone more than 300 consecutive days without a local infection.

Meanwhile today Hong Kong reported 60 new cases, and last night's sudden lockdown in Yau Ma Tei tested some 300 people, yielding only one positive case.

But Xi seemed to be more concerned about Hong Kong's stability and hinted at some possible new measures.

"Hong Kong's significant change from chaos to peace again showed an important rule: We must insist on 'patriots governing Hong Kong', so as to ensure the stable and long-term implementation of 'one country, two systems'," he said, indirectly referring to the anti-government protests in 2019.

Tam says HK had to implement Xi's ideas

Xi said having "patriots ruling Hong Kong" is a "fundamental principle" that affects national sovereignty and security, and that it would also allow "various deep-seated problems" to be effectively resolved and result in greater stability.

Soon after the work report was over, Hong Kong's only delegate to the National People's Congress Standing Committee Tam Yiu-chung, said Xi only set out general principles and it was the task of local and central governments to decide how to implement them.

Political commentator Chung Kim-wah, said Xi's remarks shouldn't be surprising given that it is clear Beijing wants complete control over next year's Chief Executive election, and Hong Kong's situation in general.

But he didn't think Beijing would go so far as to have almost 400 pro-democracy district councillors dismissed from office.

"I don't think they would disqualify all DC members, because that would be too far-reaching and would arouse a lot of condemnation or criticism by the international community," Chung said.

Chung says Beijing wants more control of HK

"But they are trying to kick some people out to ensure that the Election Committee for the election of the CE in the coming year will be fully under control."

The government is currently looking into forcing councillors to take an oath of office to the SAR that could possibly be used as a way to expel them.

It is quite clear what Xi is expecting, and now Lam and her administration will have to do political gymnastics to somehow only have "patriots ruling Hong Kong".

However knowing Lam, she will do whatever it takes to win that praise at the expense of existing election laws in choosing Hong Kong's next leader...

CY Leung Hungry for a Power Grab

Leung wants to spar with Lam over chief executive elections

 

After Leung Chun-ying stepped down as chief executive in 2017 citing family reasons, and was rewarded with the title of vice-chairman of the Chinese People's Consultative Conference -- China's top political advisory body -- most of us assumed he would go off to Beijing and climb further up the ranks.

But the past week Leung, known as a "cunning wolf", has revealed his claws and is taking swipes at his successor and former chief secretary, Carrie Lam Cheng Yuet-ngor.

Every CE has been elected by a committee

Does he really want to be CE again?

God help us.

On January 18, Leung suggested Hong Kong's next leader did not have to be voted on by an electoral committee, but rather through consultation.

He cited Article 45 of the Basic Law that said the chief executive "shall be selected by election or through consultations", and that if the next leader was chosen through the latter process, it would still be legal and the British government could not complain about it.

The following day Lam hit back, saying all previous chief executives had been chosen through an electoral process since 1997.

"I think whether it is from the perspective of historical development, or the social effects of an election, it's better for the chief executive to be elected," she said.

Over 600,000 took part in the July primaries

Currently Hong Kong's chief executive is chosen by an election committee of 1,200 people, not one person, one vote, which triggered the 2014 Occupy Movement.

Interestingly when Lam was chief secretary, she spearheaded an effort to have the chief executive elected by popular ballot by 2017. That did not happen after the 79-day protest.

Meanwhile Leung wrote on his Facebook that the opposition camp's close ties with the United States made him question the necessity of a chief executive election.

"What's the actual situation in Hong Kong in recent years? The major politicians from the opposition camp have refused to recognize their roots... or have even asked the American government to sanction Hong Kong," he wrote.

"If this actual situation causes a puppet of the American government to be elected as chief executive, do we still want an election?"

Leung has some twisted thinking the US would influence the Hong Kong chief executive election, but why would he worry about that when all the members of the Election Committee are pro-Beijing?

The NSL has led to arrest of ex-lawmakers

He continued his campaign again this week, claiming the opposition still had a chance of winning more seats in the Election Committee when the pan-democrats have been completely decimated in the Legislative Council, last September's elections were postponed because of the pandemic, and the national security law led to the arrest of many former lawmakers for taking part in last July's primaries.

In addition, Leung seemed to believe pro-democracy people were becoming more politically involved in the governing bodies of professional groups, such as the Bar Association and the Institute of Certified Public Accountants.

"Forgive me for saying this, but the [candidates] are all anti-establishment, not just pro-democracy," he said. "All professional bodies seem to be like this, and you can say that the silent majority just won't come out."

Asked to comment about Leung's latest argument, Lam did not want to argue with her predecessor in the media, and that his suggestion would require changes to the Basic Law.

Lu Ping insisted on "consultation" in Article 45

Meanwhile Martin Lee Chu-ming who helped draft the Basic Law before the handover, explained the word "consultation" was added in Article 45 to mirror the wording in the Sino-British Joint Declaration.

"Lu Ping insisted we should stick to the exact wording of the joint declaration," Lee recalled, referring to the senior Chinese delegate involved in the negotiations with Britain over the transfer of the city's sovereignty.

"Back then, not a single one sitting on the Basic Law drafting committee called for picking the city leader through consultations. No one opposed the inclusion of 'consultations' [in Article 45], as we all were well aware that eventually elections would be held after the handover."

Lee said in the 1980s, Beijing was determined to hold chief executive elections after the handover to secure the confidence of foreign businesses and Hongkongers, to convince them to stay.

Lee suggests Leung wants to become CE again

However, Lee believes Leung's latest comments are a bid for him to try to make a comeback.

"He fears he may not win the election and so proposes doing it through consultations," he added.

Ouch.

Perhaps Leung is still sore from only securing 689 votes compared to his successor's 777?

Both choices were hardly stellar for Hong Kong... anyone else willing to take on Leung in 2022?

 

Hunt for the Virus in Lam Tin

Over 10 cases were found in Block 5 of Laguna City, Lam Tin

Hong Kong logged 73 new coronavirus cases today, and some are related to a colleague who lives in Laguna City in Lam Tin, Kowloon.

The developing has 38 towers with more than 8,000 residential units, and in Block 5 there are at least 10 cases, mostly in E flats on various floors. This led to a mass evacuation of all residents in the tower living in flat E. Those who tested negative were sent to quarantine camps, those with symptoms to hospital.

Yuen notes possible "chimney effect" virus spread

That's because microbiologist and government health advisor Professor Yuen Kwok-yung from the University of Hong Kong believes there is a "chimney effect" of vertically transmitting the virus.

It was also reported two security guards who were confirmed with the virus, one of whom lived in Reclamation Street in Yau Ma Tei where there have been some outbreaks.

That guard may have brought the virus to the apartment block.

Another possibility is that on January 9 a family of four on the 16th floor in Flat E had a gathering with all of them testing positive, which could be because one of the guests was positive.

My colleague has friends in that block living in flat E so they had to be evacuated today. It's worrying for her wondering if the virus has spread to other blocks like hers. 

Chinese New Year and Valentine's Day to be quiet

People were hoping the number of cases would go down by Chinese New Year and Valentine's Day, but that hardly looks likely at all at this rate.

As I said before the Year of the Ox is going to be a dull one... if people don't heed advice to not gather during the public holiday, there will be another spike in cases, and the chances of restaurants opening for dinner are going to be near impossible.

 

Was Lockdown Worth 13 Positive Cases?

Lockdown area near Jordan was crawling with health workers

 

Residents in the locked down area in Jordan are free to come and go now after over 7,000 people were tested. Of them 13 were found to have positive tests. That's a rate of 0.17 which is on the low side.

Over 7,000 were tested, 13 came up positive

Is that good or bad?

While it was good to catch those 13 cases, it seems like an extensive 48-hour ordeal that caused a lot of grief and stress.

A bit worrying is that several hundred people were not found in the door-to-door testing and one wonders if the government statistics are correct, or that many people fled before the lockdown.

Nevertheless, Secretary for Food and Health Sophia Chan Siu-chee defended the move and wouldn't rule out doing something similar again.

Chan does not rule out lockdown testing again

"I think the compulsory testing and also the testing within an area with the restriction of movement is effective to identify and isolate these cases. Also the close contacts will be quarantined. So I think it's an effective method," she said.

Some critics wonder if this first lockdown was a test run to see how the public would react and using these residents -- mostly ethnic minorities -- as guinea pigs.

This compares to the beginning of the fourth wave started by the dancing cluster of mostly members of the wealthier echelon of society where they even refused to divulge where they were and with whom -- and were able to get away with not disclosing any information. 

With Covid-19 still hardly under control, Dr David Hui Shu-cheong, a government advisor on the pandemic, suggests the government quickly move to test the area around the Yau Ma Tei wholesale fruit market which is near the Jordan area. 

Hui says less notice should be given ahead of time

In a TV program Hui said he was concerned about those people who disappeared before the lockdown may be elsewhere spreading the virus, and said in future there should be less notice given to contain as many people as possible.

However, when hearing the word "lockdown", the immediate images come to mind are of the mainland Chinese ones, welding people's doors shut, or even dragging them out to the hospital which is probably what worried residents; perhaps some are refugees or illegal immigrants with language and cultural barriers.

The government also received a lot of criticism for supplying canned food when many didn't have can openers, and don't eat pork or meat. While some were forgiving, saying the authorities tried their best, others felt the authorities should know by now what Muslims and Indians eat, while elderly people had no kitchen whatsoever and were used to receiving hot meals delivered by social workers.

So it seems even social workers were left in the dark as to what was going on and couldn't reassure their clients, let alone ferry hot meals to them.

Each family got lots of instant noodles and cans

Was this whole exercise worth it in the end? Seems like a mixed bag.

In the meantime, residents who were released are celebrating by eating some decent food... they deserve it!

 

Lam's Lockdown Plans Need Tweaking

Lam addressed media this afternoon, admitted could be better

Just over a year since the first case of the coronavirus was reported in Hong Kong, the city now has over 10,000 cases and is desperately trying to clamp down on a surge in cases in the Jordan area in Yau Tsim Mong district.

Late last night the government imposed a lockdown at over 100 buildings with streets cordoned off and monitored by police. That meant people coming back late could not go home, while those in their flats could not go out.

Goal was to test 10,000 with results by Monday

Meanwhile healthcare workers went door to door testing people.

The residents in lockdown were given food but there were lots of complaints -- as Hongkongers like to do, but in this case it was quite valid. They were given instant noodles, oranges, white bread, uncooked pasta and canned items like sardines and baked beans.

Instant noodles are hardly nutritious as well as white bread, and what are residents going to cook pasta with if there's no sauce? However, government officials didn't think to ask or know that many of the elderly living in this neighbourhood don't have can openers let alone a kitchen to cook.

They usually depend on social workers to deliver hot food to them, and now they can't come in to help feed them. District councillor Owan Li said the government should have considered delivering hot meals to them.

Lots of instant noodles, oranges and canned food

Nevertheless the food they were given is such a hodge podge... how do you even make a decent meal out of that?

This afternoon Chief Executive Carrie Lam Cheng Yuet-ngor gave a press conference near the lockdown area, wearing a black hoodie, while Secretary for Food and Health Sophia Chan Siu-chee wore a puffy jacket -- in 25 degree weather?!

Lam admitted there was room for improvement. She said the lockdown was difficult to execute without residents knowing, as 3,000 people are involved in administering the operation, and that perhaps people would be less anxious if they knew the lockdown was only for 48 hours and that food would be provided to them, though now we know it wasn't adequate.

She also said the lockdown was nothing like those on the mainland and preferred to call the scheme "restriction testing declaration", and that it would be lifted after testing was completed.

Lam visited the area but was she welcomed?

When questioned by reporters if residents who were inconvenienced by the scheme would be compensated, particularly if they could not get to their jobs, Lam would only reply that residents were supplied with food and there was a hotline to call if they had any questions.

The aim of the lockdown -- I mean "restriction testing declaration" -- is to test 10,000 people by tonight so that they will be able to get back to work by Monday morning. Again the government is oblivious to the possibility that some people work weekends...

What is scary is that Secretary for the Environment Wong Kam-sing reported nearly 90 percent of the sewage samples collected from 40 buildings in this area tested positive for the virus. So having them continue to live in these contaminated places is hardly ideal. 

However, where do you mover 10,000 people? And how can their sewage pipes be fixed?

Covid-19 is not going away in Hong Kong anytime soon, despite wearing your mask everyday, washing your hands and social distancing. The virus has revealed there are too many structural issues causing such a big spread of the virus...

Unprecedented Lockdown in Yau Tsim Mong

Police cordon off the area in a Yau Tsim Mong street tonight

 

An unprecedented lockdown has just begun at midnight in 150 buildings in Yau Tsim Mong district (Yau Ma Tei, Tsim Sha Tsui and Mongkok) because of the unprecedented number of coronavirus cases. However there is a lot of confusion of what is exactly meant by this lockdown and how long it will last.

District councillor Andy Yu said in this evening's press conference that the residents in the affected buildings are uninformed as to what will happen -- have their moments been severely curtailed or can they still venture out for food and medical appointments?

150 buildings will be under lockdown in this area

"Most of them would like to know more about what's happening and they still need to deal with the changes. Maybe some people... they have to go to work tomorrow, or they have to go to the hospital... so many different kinds [of complaints] that we have received, said Frank Ho, another councillor, who reports those who have contacted him are scared.

So far there has been no word at all from the government for clarification of what the lockdown will entail. As a result, many have gone out today to stock up on supplies, while others even fled the district.

Media reports say only those with negative test results are allowed to leave and come back, but as another district councillor, Suzanne Wu pointed out, someone negative could catch Covid-19 while out, and locking people up in the building when the spread is possibly caused by the environment is not a good idea.

Dr Leung says the lockdown is "too late"

Indeed respiratory disease specialist Dr Leung Chi-chiu says a stay-at-home order is "too late" and "rather meaningless" as most residents have already been tested, and suggested instead expanding the scope of testing to nearby buildings to uncover possible clusters.

The Hong Kong Association for Democracy and People's Livelihood, an opposition party focused on lower-income groups, blasted the lockdown plan and urged authorities to support residents by inspecting plumbing systems in buildings and updating them if necessary.

"The government seems headstrong in committing to ineffective measures. Its latest proposal to lock down a whole zone will cause the stigmatization of the area and its residents, disrupt residents' daily lives and severely undermine local economic activity," it said.

So basically this lockdown is a mess -- no one has any details of how it is supposed to work,  and there are questions as to how effective it will be.

Many are ethnic minorities in tenement buildings

There will be lots of questions about accountability and transparency this weekend and especially Tuesday morning when Chief Executive Carrie Lam Cheng Yuet-ngor holds a press briefing...

 

 

 

 

Hong Kong's Vaccine Guinea Pig

Tam Yiu-chung speaking with Starry Lee today on Facebook

Possibly the first Hongkonger to get a vaccine is Tam Yiu-chung, the sole local delegate to the National People's Congress Standing Committee. He is currently in Beijing for NPCSC meetings and got the Sinopharm jab there, which so far has 79 percent efficacy.

In a Facebook live broadcast, Tam told Starry Lee Wai-king, chairperson of the pro-Beijing DAB party that he will take the second dose in about two to four weeks' time and he can get it either in the Chinese capital or Shenzhen.

Sinopharm's vaccine has 79 percent effectiveness

Interesting he was able to access Facebook since it's banned on the mainland. 

Nevertheless, Tam reported he felt find so far and didn't have any side effects.

In Beijing he asked the central government to quickly distribute mainland vaccines to Hongkongers. The Hong Kong government has procured vaccines from another Chinese manufacturer, Sinovac (that has only 50 percent effectiveness), BioNTech, and AstraZeneca.

What is the point of rushing vaccines to Hong Kong when a recent survey found only about 37 percent of residents were keen to get the jab?  

A lot of it has to do with distrust in the government, not in the speed at which the vaccines will arrive in Hong Kong. We're in no hurry to get the vaccine yet and would rather wait for more data to come out and be analyzed.

The Sinovac vaccine is only 50 percent effective

So how about Tam passing this word along to the NPC standing committee?

In the meantime we will watch him carefully for any side effects from the vaccine he hasn't reported yet...

Top UK Barrister Quits Prosecution Case

QC David Perry has prosecuted many cases in Hong Kong

A few days ago there was a lot of surprise when the Hong Kong government announced it had hired a top barrister from the UK to prosecute nine high profile pro-democracy activists including Apple Daily founder Jimmy Lai Chee-ying, Martin Lee Chu-ming, Margaret Ng Ngoi-yee, and Lee Cheuk-yan for illegal assembly in Causeway Bay on August 18, 2019.

Queen's Counsel David Perry is considered a "top silk" and he has successfully prosecuted many other cases for the government, such as former chief executive Donald Tsang Yam-kuen for misconduct in public office, former chief secretary Rafael Hui Si-yan for bribery, Nancy Kissel the "milkshake murderer", and former feng shui master Peter Chan.

Protest march in Victoria Park, August 18, 2019

When the Hong Kong government made the announcement on January 12, Perry had already agreed to take on the case, but there were a lot of questions.

One is, why couldn't a top lawyer in Hong Kong be found instead as he or she is being paid with taxpayer money, but it seems the government is keen on draining the city's coffers wherever possible.

Second we're in the midst of a pandemic -- and the UK is in a terrible wave at the moment barring all Hong Kong residents from returning for now. Is it really prudent to have Perry come over and be exempted from quarantine?

Third, the global optics of a Brit prosecuting democracy activists in Hong Kong who are trying to uphold the rights and freedoms enshrined in the Basic Law is ironic. 

Lawyer Ng was charged with illegal assembly

Fourth, does Perry understand his client is really Beijing and paying him to do its bidding? Can he sleep at night knowing this?

But as soon as word got out in the UK, there was a massive uproar with British Foreign Minister Dominic Raab leading the charge.

He said he couldn't understand how anyone in good conscience could take up such a case, adding that people would regard the move as being "pretty mercenary".

Raab, who is a former lawyer himself, also said getting Perry to take up the case was a "serious PR coup" for Beijing. Not to mention the fat payment he would have received for his services.

So today it was surprising to hear the news that Perry had pulled out of the case. Hong Kong's Department of Justice said on Wednesday that Perry "expressed concerns about such [political] pressures and the exemption of quarantine, and indicated that the trial should proceed without him."

Perhaps Perry at first thought it was a good gig, but the political pressure was too much to bear. Or that it looked bad he would be exempt from quarantine and the criticism wouldn't end? 

Lai was also charged in the same case

In any event the DOJ has said a local barrister has been hired, but no name revealed.

Secretary for Justice Teresa Cheng Yeuk-wah said she was shocked -- shocked -- at the "disgraceful" attacks and political pressure.

"For such a reputable British Queen's Counsel to come to Hong Kong for a case which, in turn, surprisingly attracted so much unfair and biased attacks and views in Britain, it was not us underestimating [the backlash] at all," she said. "We are just shocked and could not have seen it coming."

It is bizarre that Cheng could not forsee the possible backlash of hiring Perry -- everything these days is political in Hong Kong. Even where you shop and eat represents your political stripes.

In fact the prosecution of these pro-democracy activists is a political act in itself.

Cheng was "shocked" Perry would be attacked

Did she not think about that?