Da Dong Gone in a New York Minute

A lot of money was spent to open Da Dong in Manhattan two years ago

Da Dong Roast Duck was my favourite place for Peking duck in Beijing over 13 years ago. The location in Dong Si Shi Tiao was fascinating, as you had to pass some imperial granaries before entering the restaurant.

A few years ago my friends treated me to Da Dong kaoya, this time in a new location behind the Worker's Stadium and the gaudy decor with statues of white horses seemed over the top as well as the LED lights representing reeds in the pond were ridiculous.

Da Dong near Worker's Stadium... see the horse in the back?

Inside there was a massive screen showing videos of chef Dong Zhenxiang cooking in France and scenes of people raving about his food. The video and the sound from it overshadowed our dining experience. It was distracting and not very interesting.

Ahhh how the mighty have fallen.

In late November, Michelin launched its first Beijing guide and everyone expected Da Dong to get three stars -- but it was not to be. It only garnered one, at the Dong Si Shi Tiao location.

And now Da Dong in Manhattan has closed, filing for bankruptcy after two years and scathing reviews from New York critics.

There was much talk about the place when the restaurant group announced it would open in the Big Apple, in a space for 400 seats and situated near Bryant Park. The Chinese really like to make a big splash.

The famous roast duck didn't impress Michelin inspectors

But that ambition apparently didn't translate into delicious food, with food critics from the New York Times and New York magazine giving Da Dong zero stars! While New York Post and foodie website Eater tried to find some good things to say about the Chinese restaurant.

Was it really that bad? I will never know because I never got to try it.

Maybe the ducks were not Chinese? Maybe the wood-fired ovens weren't allowed, making it hard to create the same flavourful smell from the wood of cherry and plum trees? Or maybe the restaurant had too much hype, making critics all too eager to take it down to size?

Then over a year ago I went back to Da Dong (albeit on Jinbao Jie, another location) and honestly, the duck wasn't that great. It seemed more oily than I remembered it, and didn't seem so special anymore. The thin pancakes were not warm, and the other dishes we ordered were pedestrian, or even salty.

What will chef Dong Zhenxiang do next?

One wonders what Dong is doing now, licking his wounds from his massive failure in New York. Will he try again elsewhere or just continue to placate the domestic market?

In the meantime the New York restaurant is trying to sell off all of its equipment, crockery, furniture and fixtures. It's a sad flash in the pan for Da Dong, who now knows the meaning of "Go big, or go home".

Problems of the Uber Rich

Mount Nicholson has the most expensive addresses in all of Asia

Yesterday's blog post was about the gob-smacking number of properties one person in Hong Kong owns. Today's is about the buying power of the 1 percent.

In November 2017, one person shelled out HK$1.16 billion (US$149 million) for two units on The Peak in one day. One cost HK$560 million for a 2,424 sq ft four-bedroom unit on the 12th floor of Mount Nicholson, which makes it out to be HK$132,000 per square foot, making it the most expensive real estate in Asia.

The same buyer also bought 4,579 sq ft unit on the same floor for HK$600 million, or HK$131,000 per square foot, making it the second most expensive property in the region.

How does one have US$149 million to spend on two homes? The 99 percent of us will never be able to make that amount in our lifetimes. We can't even fathom the number it's so huge.

But can the uber rich continue to buy luxury homes?

But it looks like those heady days of easily dropping hundreds of millions of dollars are over.

The media are reporting prospective buyers who have put down deposits with the intention of purchasing flats are failing to complete the deals, and as a result are giving up deposits worth tens of millions of dollars.

In one recent case, a buyer forfeited his or her HK$36.09 million (US$4.6 million) deposit after walking away from the a deal to purchase a luxury house on The Peak for HK$721.88 million.                                            

Again -- most of us can't even imagine what it's like to have HK$36 million, let alone giving up that much money.

Regardless, for the real estate market, buyers refusing to complete property transactions is a bad sign.

"It is definitely not good news for the market," said JLL executive director Joseph Tsang. "There are stories about buyers walking away from their purchases every day, but this one is more eye catching."

He is also concerned about the rising number of homes being repossessed by banks and the growing number of companies filing for bankruptcy. "This is a reflection of the worsening economy, although it is still too early to say whether it would trigger a wave of defaults."

That sadly has a trickle down effect on the rest of us ordinary folk, which means Hong Kong's economy is far from stable for 2019. Not all is well with the uber rich...

                            

Fancy a Jet or Two on Taobao?

Two jets from Jade Cargo International were auctioned off on Taobao

You can buy just about anything on Taobao, the Chinese online shopping site -- even an airplane -- or two.

On Tuesday two Boeing 747-400 freighters were sold on Taobao for 332.8 million yuan (US$49 million), the first time in the world such planes have ever been sold in this online auction format.

They were sold after six failed attempts to sell them in offline private auctions organized by the seller -- a state court -- in the past few years.

You can find just about anything on shopping site Taobao

China's largest private courier, SF Express confirmed it had bought the two jets from the Intermediate People's Court in Shenzhen, which seized them after Jade Cargo International filed for bankruptcy in 2013.

Originally there were three Boeing 747-400s up for auction, but one was unsold (at 122.6 million yuan), which is parked at Shenzhen Baoan International Airport. The other two are at Shanghai Pudong International Airport, with an opening bid of 133.8 million yuan and 135 million yuan.

The final prices of the two planes were 160.8 million yuan and 162 million yuan, up 20 percent from the opening bids.

One of the winning bids for one of the Boeing 747-400

Before the auction started, the bidders had to make security deposits of over 6 million yuan for each plane, and the winning bidder has to send the full payment within 15 days.

The Shenzhen court has been trying to sell off the planes since 2015 for a total of 1.32 billion yuan, and in September it finally put them on Taobao at a much cheaper total price of 391 million yuan.

Interesting to note that demand for Boeing 747s is dropping, with airlines phasing them out by the end of the year. But why not as a courier plane? SF Express said earlier this year that it would spend 2.7 billion yuan on buying planes and recruiting pilots.

Will There be Justice?

DSC boss Hui Ming-shun returned to Hong Kong was arrested yesterday

We are glad to hear the boss of defunct furniture and home electronics retailer DSC and his wife were arrested yesterday from arriving from Macau, a week after they disappeared. They conveniently covered themselves up with face masks, baseball caps and hoods.

One wonders what they were doing in Macau -- perhaps trying to double down to win back more money?

Hui Ming-shun, 61, and his wife and co-founder Lin Wai-yin, 55, were arrested on suspicion of conspiracy to defraud and still remain in police custody.

Meanwhile the staff are still waiting for their unpaid salaries and marched to Hong Kong government headquarters at Tamar to demand the authorities speed up the process of getting their money.

Secretary for Labour and Welfare Matthew Cheung Kin-chung came out to speak to the 70 or so DSC employees, but he didn't give them much good news.

"This morning we contacted the lawyer of Mr Hui to demand him to sign a declaration of insolvency and to determine as soon as possible the amount of money he owed to his employees," Cheung said.

"Once we receive Mr Hui's declaration, the Labour Department will help the employees to apply for legal aid to petition to wind up the company."

What happens if Hui doesn't care to declare bankruptcy? Does that mean he doesn't have to pay the staff what they are entitled to?

In the meantime the government says it will start determining how much money each employee is entitled to receive from the Protection of Wages on Insolvency Fund, with a maximum of HK$289,000 per person.

It seems Hui and Lin owe some HK$10 million in wages, and another HK$10 million to landlords and suppliers. They recently sold their Kowloon Tong flat, but who knows what other debts they have, or if they have squirreled their money away elsewhere.

The Labour Tribunal hearing on this case will be on August 21. It will be interesting to hear what Hui has to say in his defense...

Hui's Fall from Grace

Rafael Hui was found guilty of bribery thanks to his materialistic longings

It seems former chief secretary Rafael Hui Si-yan was addicted to the high life and thought of himself as a discerning consumer even though his salary wasn't enough to pay for his lavish tastes.

The 131-day trial of Hui, and Sun Hung Kai Properties co-chairmen and brothers Thomas Kwok Ping-kwong and Raymond Kwok Ping-luen is over, with Hui and Thomas Kwok found guilty of bribery.

Somehow Raymond Kwok was acquitted on all four charges against him and walked free.

It basically boils down to Hui acquiring hyper materialistic tastes and not being able to live on a budget, and supposedly succumbed to bribes from the Kwok brothers to maintain his lavish lifestyle.

Thomas Kwok was also convicted of bribery

In court it was revealed Hui liked to spend money traveling to Europe and Japan to attend exclusive operatic performances, once dropping HK$150,000 to stay in London's Dorchester Hotel.

He also spent HK$2 million at one music store for several years, and had no qualms going on a HK$200,000 shopping spree in one store on CDs and vinyl records. At that time his annual income was HK$4.6 million.

But after then chief executive Donald Tsang Yam-kuen was re-elected in 2007, Hui became a non-official executive council member and his salary dropped to HK$105,000 a month. However he continued to withdraw HK$1 million a month using overdraft facilities, and on his credit card bills he would only pay the minimum amount.

"Basically I did not have any savings. I spent almost everything I had," Hui said on the first day of his testimony.

Is that supposed to be considered a badge of honour? For a financial secretary to not pay off his credit card bills every month is shocking not to mention spending way beyond his means.

The writing was on the wall for Hui when the ICAC charged him with bribery and misconduct in office in July 2012; then creditors came calling, including Hang Seng Bank, Standard Chartered, and even Honour Finance, a subsidiary of SHKP.

As a result, Hui declared bankruptcy in November last year, not being able to repay Bank of East Asia. There were media reports he racked up debts of up to almost HK$75 million.

Not only was he a carefree spender, but also apparently a philanderer, cheating on his wife of more than 40 years.

"In 2008, I gave some money to a female friend in Shanghai," he confessed in court. "I do not recall the exact amount -- but I think at least HK$7 million or HK$8 million... some of which for purchasing properties, some for investments."

If this isn't a massive fall from grace, I don't know what is.

It will be interesting to see what sentence the judge metes out for Hui, as he will hardly be able to pay off his debts. What punishment would be suitable for someone like this?

While this trial is over, all eyes are now on Tsang, who has been very low key in the last few years. After he was caught on a yacht hanging out with tycoons, the former chief executive may be the next one in the dock.

How many other senior civil servants took advantage of their positions too? If the Hong Kong government wants to regain any kind of credibility, especially post-Occupy, surely it needs to clean up house too...

Steep Fall from Grace

Happier times when Rafael Hui (centre) was chief secretary... but now bankrupt

If you file for bankruptcy in Hong Kong because you owe say, HK$75 million, then you aren't allowed to take a taxi or use a credit card.

That's the fate that has fallen on former chief secretary Rafael Hui Si-yan, 65, who is involved in a corruption case with Sun Hung Kai Properties co-chairmen Thomas Kwok Ping-kwong and Raymond Kwok Ping-luen.

Yesterday the High Court declared Hui bankrupt for failing to repay unspecified debts to the Bank of East Asia, but he also owes money to other lenders: Hang Seng Bank, Honour Finance (a company owned by Sun Hung Kai Properties), Chong Hing Bank and Standard Chartered Bank.

Some media reports suggest the debts amount to HK$75 million, with an unconfirmed HK$60 million to BEA. One wonders what he used the money for.

Other non-benefits of being bankrupt is that you can't use credit cards, can't hire an expensive lawyer unless your family will foot the bill, and you can't live in a big house either again unless your family owns it.

We will probably eventually find out how Hong Kong's former No. 2 official got into such a deep financial hole, but in the meantime, it's public transport for Hui like the rest of us plebs.