Engagement with the Vatican must not be squandered by Beijing

Rapprochement with the Holy See will prove that the communist central government can be a trustworthy partner with major religious authorities around the world


SCMP Editorial Published: 4 Oct, 2020


Pope Francis celebrates Mass in the crypt of the Basilica of St. Francis, in Assisi, Italy on Saturday. Photo: Vatican Media via AP

Beijing and the Vatican are ready to renew a deal on the appointment of Catholic bishops in China. Extending the same terms as the agreement they reached two years ago, both sides are wise to reach out to each other at a time of international turmoil and uncertainty.

Pope Francis’ rapprochement will help improve the position and status of all Catholics in China. Beijing, meanwhile, has much to gain with a friendly state with such spiritual authority. The Holy See has shown courage in resisting unprecedented pressure from Washington and was right to have refused a meeting with US Secretary of State Mike Pompeo ahead of the US election.

America’s top diplomat, who is the most senior Washington official to be so openly hostile to China, has tried to convince the Vatican to scrap the deal and instead to attack the country on human rights and treatment of ethnic minorities. It is unheard of for a top US official – or any senior Western official – to be so open in pressuring the pope, and is another sign of Pompeo’s diplomatic overreach.

Given the Vatican’s commitment in the past two years, Beijing must realise by now that Francis is someone they can do business with and trust. There has been justifiable criticism that the Chinese side has been slow in implementing the full terms of the deal, the details of which have never been published.

The Vatican's Secretary of State, Italian Cardinal Pietro Parolin meets US Secretary of State Mike Pompeo on Thursday. Photo: Vatican Media via AFP

Open engagement with this most sensible and courageous of popes is an opportunity that Beijing must not squander. At a time when Beijing is fighting on so many international fronts, rapprochement with the Holy See will not only be a big score but also prove that the communist central government can be a trustworthy partner with major religious authorities around the world. It will also vindicate the pope’s wise commitment to China.

Critics of the Chinese-Vatican deal almost always overlook that fact that Francis is continuing a long-standing policy that predates his office.

The Vatican has long had similar agreements with the governments of Laos and Vietnam to agree on mutually acceptable bishops for selection. It is simply not the case that Beijing is demanding an exception when other governments comply with the Vatican’s choices.

Pompeo gets Italian promise on 5G security but fails on Vatican-China deal
2 Oct 2020


The Second Vatican Council marks a pivotal reform period in the 1960s. A key document is Christus Dominus, which is the Council’s Decree on the Pastoral Office of Bishops. For the first time, it requests “the civil authorities … voluntarily to renounce the above-mentioned rights and privileges [that is, the selection of bishops] which they presently enjoy by reason of a treaty or custom.”

Not all governments have volunteered. Hence with countries such as Laos, Vietnam and China, the Vatican must pursue and sustain diplomatic engagement, to guarantee the welfare and rights of the faithful in those countries.




SCMP Editorial
Editorials represent the views of the South China Morning Post on the issues of the day.

Hong Kong madam raked in HK$31.5 million profit during nine-year run operating prostitution ring out of Mid-Levels flat with help of domestic workers

But Heidi Wong’s two helpers earned just HK$1,000 a month for their part in the scheme, which used fake images to lure customers

Undercover police busted the ring after arranging a series of liaisons in 2018; sexual services were typically offered starting at HK$6,000

Jasmine Siu Published:  5 Oct, 2020

The District Court on Monday heard that Heidi Wong’s sex syndicate pulled in more than HK$30 million during it’s nine-year run. Photo: Nora Tam

A Hong Kong housewife and her domestic helpers operated a sex syndicate for nine years out of a Mid-Levels residence, raking in profits of up to HK$31.5 million (US$4.1 million), the District Court heard on Monday.

Heidi Wong Pui-ting, 68, admitted to enlisting the help of Filipino domestic workers Jo-an Evera Palpal-Latoc, 42, and Jeanette Villaflores Gallego, 47, to operate the syndicate, which saw her pimp women for sex through six websites that advertised using fake images.

The operation came to light in 2018 after four undercover police officers posed as customers and made multiple calls to the mobile phone numbers listed on the sites between April 16 and May 15 of that year, prosecutors said.

Heidi Wong’s flat in Hong Kong’s Mid-Levels neighbourhood was secretly running a prostitution business worth millions for nearly a decade. Photo: Google

The officers were then connected to Palpal-Latoc or Gallego, who sent them pictures of women from whom they could choose, offering sexual services at negotiable prices based on a standard rate of HK$6,000 when paid in cash, or HK$7,080 via credit card. The difference was attributed to credit card company charges, which, in fact, added just 3 per cent to each transaction.

Prosecutor Andrew Raffell said the officers then selected partners and checked into different hotels, where the sex workers would then visit and offer their services.

Payment was made directly to the women, with Wong pocketing half the fee and offering a small percentage – about HK$1,000 – to each of her two helpers every month.

Three of the sex workers, two Russian passport holders and a Venezuelan, were arrested during the final operation on May 15 for breaching their conditions of stay.

Sex syndicate smuggled women from mainland China, used Hong Kong hotels as base: police
22 Aug 2020


On that same day, police raided Wong’s flat, located at Tavistock II, Tregunter Path, and arrested her along with the two domestic workers.

Officers also seized 17 ledgers along with various documents, phones, computers, credit card imprinters and blank invoices.

Ten of the ledgers, which recorded the dates of encounters, names of sex workers deployed, hotels and clients, and credit card details, showed net profits of up to HK$31.5 million. The remaining ledgers had fewer entries and registered HK$5.6 million in income.

Investigations showed one of the websites was registered in Hong Kong by Firstmount Investments, a local company with Wong and her number listed as contacts, and her residence as the billing address.

Five mobile phone numbers shown on the website were also registered by Firstmount, with all of their incoming calls automatically forwarded to three landline numbers registered by another local company, Vardenvale, at the same address.

Coronavirus: ‘I don’t want to infect my children,’ says Hong Kong sex worker
18 Apr 2020


Three bank accounts were used to handle the proceeds, which involved thousands of transactions, adding up to more than HK$48 million, which in whole or in part, directly or indirectly, represented proceeds of crime.

Case officers believed some 20 to 30 prostitutes were engaged each year, but the total number remained unclear, as the ledgers were believed to be incomplete and some workers were identified by multiple names.

Under caution, Palpal-Latoc told police she began answering calls, recording details of the transactions and arranging for the women to meet the clients, upon Wong’s instructions, a month after she started working as her domestic helper in April 2009.

Gallego was jailed for 10 months last October after pleading guilty to one count of conspiracy to live on the earnings of prostitution of others, an offence punishable by 10 years in prison.

On Monday, Wong and Palpal-Latoc pleaded guilty to the same charge, and each admitted to three counts of dealing with property known or believed to represent proceeds of an indictable offence, punishable by a term of 14 years.

Both women had no prior convictions.

Hong Kong sex gang used fake prostitutes to blackmail victims
17 Jul 2020


In mitigation, defence lawyer Charlotte Draycott SC revealed that Wong was once an escort herself, providing sexual services until her age made it difficult for her to continue, at which point she turned to helping friends find clients before starting this operation.

Draycott also claimed Wong, who insisted she was actually in her early 70s, contrary to police records, had not dealt with the business for “many years” because of her mental health, as she was struggling with depression and the onset of dementia.

The counsel argued that this was “a crime with no victim” as Wong had conducted “an honest and decent business” in plain sight, without devising any sophisticated scheme to hide the money, and engaged consulting adults, while pocketing HK$2.5 million a year.

“At no stage has she ever forced anyone to do anything,” Draycott said.

But counsel Mohammed Shah, for Palpal-Latoc, argued that the domestic worker, whose monthly salary was just HK$4,310, was a victim, as she had been told prostitution was legal and it would be alright for her to earn money on the side.

“[Wong] was the mastermind and the boss,” Shah said. “There was a gross breach of trust by [Wong] towards [Palpal-Latoc] by inviting, coaching, and getting [her] involved in the operation.”

District judge Amanda Woodcock will sentence both women on October 12.

Until then, Wong was remanded in custody, while bail was extended for Palpal-Latoc, who had already been remanded for eight months.


This article appeared in the South China Morning Post print edition as: Housewife and two helpers ran sex ring, court told


Jasmine Siu is a reporter who covers Hong Kong courts and legal affairs at the Post.

For shame: Hong Kong again exposed for heartless way it treats foreign domestic workers after Covid-19 payout snub

Abused, disrespected, and treated shamefully. The lack of financial support for this segment of society highlights how little we actually care for the people who have allowed Hong Kong to be successful

Luisa Tam Published: 10:00am, 26 Sep, 2020

I have waited long enough, it’s time to speak an uncomfortable truth.
Once again, the Hong Kong government has chosen to perpetuate systemic discrimination in its latest round of Covid-19 relief measures.

This time round, it is giving a one-time payout of HK$10,000 (US$1,290) to non-permanent residents “in need” by way of a supposedly humanitarian move. However, this so-called compassionate act excludes the foreign domestic workforce of 400,000. How baffling.

The reason for extending the relief scheme is to aid newcomers, namely arrivals from mainland China who haven’t lived in Hong Kong for seven years to qualify for permanent residency, in a bid to acknowledge them as a part of the city’s fabric.

Welfare chief Dr Law Chi-kwong specifically pointed out that the government was obliged to help all who are “bona fide” residents. So, if that’s the case, what makes the foreign domestic workers not qualify as bona fide residents?

A domestic helper crosses the road with an elderly woman in Sai Ying Pun. Photo: Jonathan Wong

From this, is the government inferring they are not sterling members of our society because their contributions are negligible.

I beg to differ, because it’s not only far from the truth, it’s also insulting to this significant segment of our population.

These migrant workers contributed an estimated US$12.6 billion to our economy in 2018 alone, by freeing Hong Kong women from childcare and household responsibilities. And as a result, it has allowed tens of thousands of households to benefit from a dual income.

The presence of the migrant domestic workforce has many knock-on effects throughout the local economy and society.

First, it helps families earn a higher household income, and with more money, they can afford a better quality of life, and provide a better education for their children to help them secure a better future, which can indirectly benefit society as a whole.

It is utterly heartless for our government to say these workers haven’t contributed enough to the city to warrant help

And at the end of the day, how do we repay our benefactors? Shamefully, I would say.

First, we don’t give them a respectable wage; they earn a monthly salary of HK$4,630, but the minimum wage in Hong Kong is HK$37.5 an hour, and if we use that as a benchmark, a legal monthly wage for these migrant workers should be about HK$12,000, because they work at least 12 hours a day, six days a week.

We don’t bestow upon them the same right to be eligible for permanent residency after living here for seven years as we give other foreign employees.

We don’t give them the respect they deserve; in this day and age, we sometimes still see some places that implicitly don’t welcome migrant domestic workers. They are prohibited from using some public spaces and facilities like toilets.

Domestic helpers in Hong Kong pitch in to try and stop the spread of coronavirus in the city

Like in the aforementioned cash relief scheme, we don’t reciprocate and reward them for all the good they have done for our city.

Conversely, our government quite often turns a blind eye and allows unscrupulous employment agencies to exploit them, or employers to abuse them by making them work long hours with a lack of proper rest or holidays.

Foreign domestic workers are saviours wherever they go; just look at Singapore and Malaysia where they are commonly employed. They contributed US$8.2 billion to Singapore’s economy, and US$900 million to Malaysia’s in 2018.

They bring positive economic and social benefits to our city, and yet, they are often excluded financially and socially.

Hong Kong’s reputation as one of the world’s most expensive cities to live has also burdened migrant domestic workers with heavy debts that have accumulated over the course of their employment.

Helpers’ live-in rule in Hong Kong should be relaxed
25 Sep 2020


According to Justice Centre Hong Kong, a non-profit human rights organisation, eight in 10 migrant domestic workers in Hong Kong reported being in debt, compared to 34 per cent in Singapore, and 65 per cent in Malaysia.

Most of their debts are incurred because of recruitment costs, and the situation is particularly serious in Hong Kong. These workers often have to borrow money to cover these costs so they can work with the hope that if they stay long enough in their chosen city, they will be able to save and provide for their families back home after repaying the initial loans.

It is utterly heartless for our government to say these workers haven’t contributed enough to the city to warrant help. To be honest, it is the other way around; they have and continue to help our city to grow and flourish more than we have cared to reciprocate.

They are not just part of our city’s fabric, they are part of its foundation.

Migrant domestic workers have helped many families attain a more comfortable life and our city grow its economic prowess over the years. It’s time for us to make their lives a little bit better and the cash payout is a good starting point.

Luisa Tam is a Post correspondent who also hosts Cantonese-language video tutorials on Cantonese language that are now part of Cathay Pacific’s in-flight entertainment programme

Luisa Tamhas been a journalist for more than 30 years. She has held a variety of roles during her career, including working as a producer for NDR German TV, a media campaigner with Greenpeace, and as the deputy managing editor of Eastern Express. She previously worked at the Post from 1988 to 1990, before rejoining in her current role in 2015.

 

MORE TRUMP QUACKERY

HIS SO CALLED DOCTOR IS A BONE CRUNCHER,

A CHIROPRACTOR BY ANY OTHER NAME 

which may be why the media does not clarify

his lack of credentials for public health, 

or epidemiology 

Fake Medicine in the US Navy, say it ain't so, wait it is also practiced by former navy Captain Ron Hubbard.

Osteopathy
From Wikipedia, the free encyclopedia

For the American medical practice of osteopathic physicians in the United States, see Osteopathic medicine in the United States.

For diseases of the bone, see bone disease and osteology.

Osteopathy

OMT technique for the treatment of impotence in the 1898 Osteopathy Complete manual
Alternative therapy
Benefits Placebo
MeSH D026301
ICD-10-PCS 7
ICD-9-CM 93.6

This article is part of a series on
Alternative medicine


General information[show]

Fringe medicine and science

Traditional medicine

Osteopathic medicine in the United States

Andrew Taylor Still (founder)

Doctor of Osteopathic Medicine (DO)
Medicine
US Medical education
Schools
Physicians
Osteopathic Manipulative Medicine
AOA
AACOM
AAO
COMLEX
MD & DO Comparison
Specialty Colleges
AOA BOS


Osteopathy is a type of alternative medicine that emphasizes physical manipulation of muscle tissue and bones.[1][2] Practitioners of osteopathy are referred to as osteopaths.[3][4][5] Its name derives from Ancient Greek "bone" (ὀστέον) and "sensitive to" or "responding to" (-πάθεια).[6][7][8]

Osteopathic manipulation is the core set of techniques in osteopathy.[9] Parts of osteopathy, such as craniosacral therapy, have no therapeutic value and have been labeled as pseudoscience.[10][11] The techniques are based on an ideology created by Andrew Taylor Still (1828–1917) which posits the existence of a "myofascial continuity"—a tissue layer that "links every part of the body with every other part". Osteopaths attempt to diagnose and treat what was originally called "the osteopathic lesion", but which is now named "somatic dysfunction",[9] by manipulating a person's bones and muscles. Osteopathic Manipulative Treatment (OMT) techniques are most commonly used to treat back pain and other musculoskeletal issues.[9][12]

In the United States, the 21st century training of osteopathic physicians (who practice osteopathic medicine, not osteopathy) is equivalent to that of Doctor of Medicine (MD) physicians.[13][14] While osteopathic manipulation is still included in the curricula of osteopathic physicians, and is promoted as a unique aspect of DO (Doctor of Osteopathic Medicine) training, this has been described as nothing more than "'extra' training in pseudoscientific practices".[15] Osteopathic medical schools have been criticized as weaker in research than MD schools with regard to research and the understanding of scientific inquiry. In the US, graduates of osteopathic medical schools have the option to sit for both the osteopathic physician-specific COMLEX medical licensing exam and the general USMLE licensing exam.

chiropractic - The Skeptic's Dictionary - Skepdic.com

www.skepdic.com › chiro

Jul 28, 2011 — "A Skeptical Consumer's Look at chiropractic Claims: Flimflam in Florida?" Skeptical Inquirer. Jan/Feb. Consumer Reports (September 1995), ...

Chiropractic: A Skeptical View | Quackwatch

quackwatch.org › chiropractic › general › skeptic

by WT Jarvis · ‎Cited by 13 · ‎Related articles

Apr 28, 2000 — No chiropractor ever defined, either quantitatively or qualitatively, what chiropractic means by perturbation of nervous impulses. Is it their number, ...

Chiropractic controversy and criticism - Wikipedia

en.wikipedia.org › wiki › Chiropractic_controversy_and_criticism

Throughout its history chiropractic has been the subject of internal and external controversy ... D.D. Palmer defined chiropractic as "a science of healing without drugs" and considered ... Chirobase: Skeptical guide to chiropractic history, theories, and current practices – Stephen Barrett, MD, and Samuel Homola, DC ...

‎Historical controversy and ... · ‎Ethics and claims · ‎Evidence for safety and ...

Chiropractic Skepticism - Encyclopedia - The Free Dictionary

encyclopedia2.thefreedictionary.com › Chiropractic+Skepticism

Looking for Chiropractic Skepticism? Find out information about Chiropractic Skepticism. medical practice based on the theory that all disease results from a ...

Chiropractic – Science-Based Medicine

sciencebasedmedicine.org › reference › chiropractic

The Skeptic's Dictionary has a substantial chiropractic entry. As important as the subject is, there are only a few books criticizing chiropractic. Chiropractic books ...

Trump's Doctor Dodged Questions About The President's Coronavirus Diagnosis
Dr. Sean Conley's answers and statements to reporters were unclear about whether the president has ever needed oxygen to combat COVID-19.

Trump’s Doctors Gave More Conflicting Information On His Health, And Revealed He’s On A Steroid Used For Severe COVID-19
Dr. Sean Coley continued to give conflicting information and evasive answers on the president’s health in a briefing on Sunday

KENNEY'S ALBERTA MEME

 

In Thailand, ‘Egg Boy’ believers ask temple-dwelling spirit to grant their wishes

Hundreds of thousands of visitors are flocking to a temple in the country’s south to see if a mysterious child spirit can make their dreams come true

The popularity of ‘Egg Boy’ has been a boon to the local tourism industry but critics dismiss it as a religious fad designed to monetise superstition at a time of unrest

Jitsiree Thongnoi Published: 4 Oct, 2020

Believers pray to Ai Khai’s statue in the Wat Chedi temple. Photo: Facebook

Winning the lottery, finding a lost item, landing a promotion or finally closing a real estate deal: these are just some of the wishes that Thailand’s “Egg Boy” – a spirit said to reside in an ancient temple deep in the country’s south – has been asked to grant.

Ai Khai, as the spirit is known locally, has attracted almost 1 million visitors to his shrine at Wat Chedi temple in Nakhon Si Thammarat, 780km south of Bangkok, since Thailand emerged from its coronavirus lockdown in July, according to tourism authorities’ estimates.

The phenomenon coincides with a period of economic and political turmoil in Thailand. The government has been promoting domestic tourism to support an industry that is normally the backbone of the Thai economy but has been badly damaged by the pandemic.

Meanwhile, the capital has been rocked by student-led protests calling for political reform, including rewriting the constitution, holding new elections and curbing the influence of the kingdom’s monarchy.

Some analysts, as well as social media posters, have lamented the Egg Boy fad as a superstitious response to the unrest on both fronts.

Although the number of visitors to the shrine at Wat Chedi falls far short of the almost 40 million foreign tourists the country welcomed last year, the influx has turned the once-sleepy seaside town into a bustling tourist magnet, offering the industry as a whole hope of recovery.

Thailand has allowed no foreign visitors since it closed its borders to non-nationals in April but there are plans to allow a limited number of foreigners to return, starting in October.

Southeast Asia dodged worst of Covid-19, but economic devastation may last for years
30 Sep 2020


The government on Monday approved the entry of long-stay tourists and business travellers without a work permit, as well as holders of an Asia-Pacific Economic Cooperation Business Travel Card from low-risk countries, a move welcomed by tour operators and hotels across Thailand.

This might be good news for the once booming tourism hotspots of Phuket, Krabi, Pattaya and Chiang Mai, but Nakhon Si Thammarat seems content to rely on the legions of locals coming to see Egg Boy – who apparently excels at generating revenue as well as granting wishes.

“We expect that by the end of September, 800,000 visitors will have made the trip here, garnering over 800 million baht [US$25.2 million] in revenue.” said Pitsinee Tatniyom, provincial director with the Tourism Authority of Thailand. “There have been some 400,000 visitors already in September alone.”

Why Thais wear so many good luck charms, and why some cost so much
20 May 2019


Nakhon Si Thammarat “is being lit up”, she said, thanks in large part to the intertwining of religion and tourism in what she referred to as “faith marketing”. Whereas the province’s airports used to accept about a dozen flights each day from elsewhere in the country, that number rose to 50 by the end of September.

With about 10,000 visitors every day during the week, rising to 25,000 per day at the weekends, Wat Chedi has recorded a surge in revenue from donations and the sale of items such as Egg Boy amulets and pieces of holy cloth. Hundreds of people often queue through the night to get their hands on the items before they sell out.

Criticisms of the Egg Boy shrine include the questionable morality of exploiting people’s faith to make money. Photo: Facebook

Believers pray to the spirit’s statue in the temple and if their wish is granted, they usually return to perform kae bon, a thanksgiving ceremony which often involves firecrackers and more donations.

Even those who do not visit the shrine sometimes have their wishes granted, according to Benjapop Benjathammatorn, owner of the nearby Sichon Cabana beach resort.

“One of my customers lost a necklace at the beach and after praying to Egg Boy for help, the necklace was found the next morning,” he said.

The local tourism industry is thriving, with many businesses welcoming repeat customers as well as those who have been urged to visit by friends or relatives.

At Thai protests, LGBT activists strengthen calls for marriage equality
21 Sep 2020

Leng Khanom, who works at an Egg Boy amulet shop in Nakhon Si Thammarat, said the trinkets can fetch as much as 100,000 baht (US$3,155) depending when they were made – the oldest, dating back to 1983, are usually the most expensive.

According to local legend, the temple at Wat Chedi is hundreds of years old but it had been reduced to a pile of ruins until it was rebuilt about 60 years ago.

Egg Boy’s reputation has now grown to the point where a statue has been erected in other provinces and his amulets are also reproduced elsewhere, prompting the abbot of Wat Chedi in September to obtain the copyright for the various items the temple produces and sells.

One Twitter user asked: “Registering for Ai Khai copyrights means the spirit is completely commercialised. Shouldn’t the temple be scrutinised?”

Wat Chedi welcomes 10,000 visitors every day during the week and 25,000 per day on the weekends. Photo: Facebook

Other criticisms of the Egg Boy shrine include the questionable morality of exploiting people’s faith to make money, and the dismissal of the craze as mere superstition.

“#AiKhai says how desperate the people in this country are with the daily grind that they have to ask for money from leaves and trees,” another Twitter user wrote. “Is politics not involved?”

Phra Maha Paiwan Warawanno, a monk and social critic, said the Egg Boy fad will eventually fade. “This sort of popularity is superficial as we have seen from the previous phenomena in Thailand,” he said, pointing to other once fashionable items such as Jatukham Rammathep amulets, believed to provide protection and good fortune, or the Luk Thep baby dolls believed to be possessed by auspicious spirits.

Thai student protesters gain upper hand as Prayuth reels from Covid-19, tourism crash
25 Sep 2020


“It is human nature to want to have hope and holy items are an accessible source of hope. But in the long run, the roles of temples can be distorted. Temples should provide people with intellect and an ability to see things with reason.”

Pipad Krajaejun, a history lecturer at Thammasat University, noted that Egg Boy’s fame had coincided with the coronavirus pandemic “which caused the economy to crash and people to lose hope”.

According to Pipad, Ai Khai’s popularity reflects a society where wealth has grown increasingly concentrated among Thailand’s elite, curtailing the prospects of regular Thais.

“Thailand has to remodel its political and economic structure to allow people to acquire well-being and opportunity in order to be less attached to praying for wealth and materialism,” he said.

Beijing’s attack on HSBC is a blow to Hongkongers, but all is not lost

In addition to regulatory hurdles and, more recently, the pandemic, HSBC has been caught up in the US-China tussle. 

Rumours that the bank may be placed on China’s ‘unreliable entity list’ have done the bank’s stock and its many local investors no favours

HSBC can turn the tide by moving its headquarters to Hong Kong, shaving off non-performing assets and focusing on Asia-Pacific


Albert Cheng Published: 2 Oct, 2020

Hongkongers wait for a tram in front of a HSBC advertisement in Central on September 28. Photo: Nora Tam

HSBC shares have plunged to a record low, falling below the HK$28 per share price during its rights issue during the global financial crisis. While shareholders grieve, for many Hongkongers, the stock’s recent decline indicates the end of the Hong Kong-bred bank’s heydey.

Both the global and local political climate have played a role in HSBC’s downfall. After the 2008 financial crisis, HSBC, which once went global with the vision of being “the world’s local bank”, met its Waterloo in the United States and Europe.

Following the Covid-19 outbreak in March, the US and European Union have tried to boost their economies with monetary easing. The  zero-to-negative interest rate policy has severely hurt the profits of the banking sector.

In addition, after moving its headquarters to London, HSBC has had to adhere to the Bank of England’s policies. To offset the financial burden caused by the rapid increase of non-performing loans, banks must retain capital. The Bank of England’s instruction to British financial institutions to suspend dividend payments has put HSBC’s stock price under pressure.

Since the financial crises and the September 11 attacks, Western countries have tightened regulation of the banking sector. HSBC had to separate its investment and retail banking businesses, and also paid billions of dollars to the US regulators to settle money laundering and tax evasion cases.


HSBC sees second-quarter profits plunge by 82 per cent thanks to coronavirus

Today, Hong Kong is caught in the middle of escalating US-China tensions. Given that HSBC is an iconic symbol of Hong Kong as an international financial centre, the bank was unlikely to remain unscathed.

Not only has it been criticised in the West for its dealings with Huawei chief financial officer Meng Wanzhou, in an effort to counter US sanctions, a report in China’s Global Times cited a government source saying HSBC could be listed on an “unreliable entity” list. These developments have done HSBC’s stock no favours.

Huawei to double down on HSBC as Meng Wanzhou’s legal battle intensifies
29 Jul 2020

HSBC has been one of Hong Kong’s most successful brands. It has witnessed Hong Kong’s ups and downs over more than 150 years. Hongkongers are not only proud of HSBC, they are also the biggest contributors to its profits.

HSBC, and its subsidiary Hang Seng Bank, account for the largest number of depositors in Hong Kong. Individuals, companies, charities and Mandatory Provident Fund investment managers have long held HSBC stock for the stable dividends. Many Hongkongers invest their life savings in HSBC stock as part of their retirement plan. Some believe holding tens of thousands of HSBC shares is equivalent to owning a property or a
taxi licence.

In fact, HSBC has an employee share purchase plan, under which the bank matches one share for every three shares an employee holds . It was initially beneficial to employees, which is why thousands of employees have joined the scheme. However, as the company’s stock plummets, employees have suffered losses, impacting morale.

HSBC, as a long-standing Hong Kong brand, in a way, belongs to Hongkongers. However, instead of protecting the bank, Beijing has deliberately spread rumours it could be listed as an unreliable entity. This is extremely damaging not only to the company but also the interests of the general public and various organisations in Hong Kong.

Even more disturbing, Ping An Insurance
has been absorbing HSBC shares during the period, upping its stake in the bank to an 8 per cent shareholding. Although HSBC stock may still drop further, Ping An’s investment could signal to investors that HSBC stock is still desirable, as are Hong Kong’s prospects.

It is not impossible for HSBC to turn the tide. All it has to do is to get rid of the non-performing assets and businesses, and resume paying dividends. HSBC should
move its headquarters back to Hong Kong and focus on the more profitable Asia-Pacific markets, so that it is no longer bound by EU restrictions.

In the face of adversity, Hong Kong and HSBC share the same destiny; as long as one stays hopeful, every day is a new day.


Albert Cheng King-hon is a political commentator

Albert Cheng is the founder of Digital Broadcasting Corporation Hong Kong Limited, a current affairs commentator and columnist. He was formerly a direct elected Hong Kong SAR legislative councillor. Mr Cheng was voted by Time Magazine in 1997 as one of "the 25 most influential people in new Hong Kong" and selected by Business Week in 1998 as one of "the 50 stars of Asia".

In the Philippines, ABS-CBN network shut by Duterte faces uncertain future

Eugenio Lopez has walked away from the station and the family business empire, seemingly relenting in his battle with the country’s president

Lopez was the latest in a line of tycoons in the Philippines to run afoul of Duterte, who made bringing down ‘oligarchs’ one of his campaign promises

Raissa Robles
Published: 3 Oct, 2020

Writers and editors of ABS-CBN in the newsroom at their Manila headquarters following orders by the telecoms regulator to cease operations. Photo: Reuters

Eugenio “Gabby” Lopez III’s September 24 resignation as chairman emeritus of ABS-CBN, with the Philippines’ biggest broadcast network now on the verge of collapse, is seen as a lesson in what happens to tycoons who cross paths with President Rodrigo Duterte.

ABS-CBN’s 25-year broadcast licence lapsed in May, and two months later pro-Duterte lawmakers blocked the issuance of a new one – fulfilling a threat the president had made two years ago.

At the end of last year, the network had a 42 per cent share of viewers nationwide – outstripping the 30 per cent share of its closest rival, GMA Network – according to ratings firm Kantar Media Philippines. Kantar managing director Jay Bautista estimated that ABS-CBN’s received the lion’s share of the industry’s advertising revenue at the time, which was upwards of 500 billion pesos (US$10.3 billion).

What next for ABS-CBN, the network that fell afoul of Duterte?
15 Jul 2020


By the end of August, the network was a shell of its former self. It had started slashing its workforce of 11,000 and had also closed all of its radio and television outlets, leaving only a skeleton crew for news and migrating content to the internet, said Jing Reyes, head of ABS-CBN’s integrated news and current affairs division. More lay-offs could still follow, she added.

Duterte has had the knives out for ABS-CBN since his presidential campaign in 2016. He has said he paid for a campaign advertisement that year, but the network never ran the material and sparked the president’s ire by being slow to pay back the fee. It did, however, broadcast an advertisement by an opposition senator that stressed Duterte’s penchant for expletives, and ran stories about the president’s alleged secret bank accounts.

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In March 2017, he publicly railed against the Philippine Daily Inquirer, the country’s largest newspaper, and ABS-CBN for “rude”, “unfair” and “trash” reporting, especially concerning his war on drugs. He also warned the Prieto and Lopez families, the respective owners of the Inquirer and ABS-CBN, of payback by way of “karma”. The Prieto family sold their stake in the Inquirer in November 2017.

As for ABS-CBN, Duterte said of the company in 2018: “I will not let it pass. Your franchise will end. You know why? Because you are thieves.”

‘HE WILL TREAT YOU WORSE’

This was not Lopez’s first encounter with a difficult president. Duterte’s predecessor, Benigno Aquino III, “was not happy with ABS-CBN”, as was the case with most administrations, according to a prominent member of the Philippine business community, who spoke on condition of anonymity.

Lopez first tried to renew ABS-CBN’s franchise in 2014, during the Aquino administration. He withdrew the application after the then president signalled he would not back it, a source said, though Aquino’s former presidential spokesman Edwin Lacierda has denied this.

President Rodrigo Duterte at the Malacanang presidential palace in Manila in September. Photo: AP

While his relationship with Duterte got off to a rocky start, Lopez for years had seemed untroubled by the president’s threats. In fact, during an ABS-CBN shareholders’ meeting in April 2017, the media magnate was bullish about the possibility of obtaining a new licence.

“We haven’t gone through an administration that, at one point or another, has not had some issue with the media in general and ABS-CBN in particular,” Lopez said at the meeting. “So it is part and parcel of our work being a media institution. Suffice to say, the way we will deal with these problems will be not in the public eye but privately.”

This February, during a Senate hearing on renewing ABS-CBN’s franchise, Duterte’s former chief aide, Senator Christopher Go, gave the company another warning sign. “All the president wants is fair reporting,” he said. “If you are bad towards the president, he will treat you worse.”

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ABS-CBN sources told This Week in Asia that Lopez had made a mistake in being slow to return the money Duterte had paid for the unaired advertisements. The company had paid a first portion of the fee back to Durterte, but when it sent the second and final portion, Go – who was still working for the president at the time – told ABS-CBN to hold on to it, which the sources said gave Duterte ammunition to go after Lopez and the network.

It was a meeker Lopez who appeared before the House of Representatives in June to beg for the franchise in a session that also saw him face a barrage of questions, including on his citizenship. The Philippine constitution bars foreigners from owning media outlets, and Lopez had been travelling using an American passport.

It took his legal counsel to explain that since Lopez was born in Boston to Filipino parents, he was allowed to hold dual American-Filipino citizenship, but not before he had been asked to recite the Patriotic Oath – the Philippines’ national pledge.

Despite submitting himself to the intense and at times humiliating questioning, the House committee voted 70-11 on July 10 to reject the issuance of a new franchise for ABS-CBN.

‘DESTROY THE OLIGARCHS’

There is still much speculation as to the reasons behind Lopez’s resignation. Some analysts said it could have been a way to take the heat off, or perhaps protect, the family’s business empire, which also includes the power company First Gen, real estate developer Rockwell Land and several industrial estates.

When he resigned on September 24, also giving up his role as director in all other companies owned by his family, Lopez said he was doing so for “personal reasons”. He could not be reached for comment on the matter. But to observers, he had suffered the fate of other tycoons who had rubbed Duterte the wrong way.

Duterte targeted ABS-CBN for its news coverage critical of him. Photo: AP

The ABS shutdown “certainly sends a signal”, said the prominent Philippine business-person. “It’s a purely authoritarian play. If you had a company to take care of, shareholders and employees, [standing up to Duterte] would give you second thoughts. The business community is the easiest community to scare.”

Ron Acoba, the founder and managing director at Trading Edge Training and Consultancy, said what happened to Lopez was “more or less the same scenario” as had befallen Roberto Ongpin, whom Duterte had singled out upon assuming office as an “oligarch” whom he wanted to “destroy” by way of example.

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Ongpin, who once sat on the board of the South China Morning Post, owned online gaming company Philweb before its licence was revoked by the Duterte government in 2016, after the president railed against “oligarchs who get privileges, concessions, franchise with their saliva only as their capital”.

“Similar to Philweb, [ABS-CBN] was also pushed against the wall with the government not renewing their licence,” Acoba said.

“Roberto Ongpin was essentially ‘forced’ to resign, with the president calling him out in public. His stake was later on sold to Gregorio Araneta, who was on friendlier terms with the [Duterte] administration. The company has since then received a licence to operate. Lopez’s resignation may be a step in a similar direction.”

Ironically, Araneta is from a wealthy and politically powerful family. He owns at least 19 companies in property management, mining, oil and gas and transport, and his wife is Irene Marcos, sister of former senator Ferdinand “Bongbong” Marcos Jnr and current Senator Imee Marcos, who are both close Duterte allies.

“If you study all the biggest business houses in Southeast Asia, most, if not all of them, unfortunately, have a patronage with the government,” Acoba said.

In his opinion, because Lopez and ABS-CBN did not play ball with Duterte, the company no longer has “a viable future”, with its share price now down about 90 per cent since its peak in 2016.

For Jing Reyes, the news chief at ABS-CBN, all that is left for the company to do is continue to cover the news while hanging on to existence by a thread.

“We are all trying to survive, basically,” she said. ■




Raissa Robles has written for the SCMP since 1996. A freelance journalist specialising in politics, international relations, business and Muslim rebellion, she has contributed to Reuters, the Economist Intelligence Unit, Daily Mail, Times of London, Radio Netherlands and Asiaweek. She runs the award-winning investigative and opinion blog, raissarobles.com. Her book, Marcos Martial Law: Never Again, a brief history of the dictatorship won the 2017 National Book Awards for Non-Fiction. Her Twitter handle is @raissawriter.