Tag Archives: Hong Kong

Hong Kong is criminalizing CBD as a ‘dangerous drug’ alongside heroin


Hong Kong
CNN
 — 

Two years ago, cannabidiol was booming in Hong Kong. The compound, known as CBD, was popping up in cafes, restaurants and stores, with businesses eager to join an exciting new market already well-established in countries around the world.

That all came to an end on Wednesday, when CBD was criminalized in the city and declared a “dangerous drug” on the same level as heroin and fentanyl.

CBD is a chemical found in hemp and marijuana plants. It’s non-psychoactive, meaning it won’t get you high; instead, CBD is often marketed for everything from helping to relieve pain and inflammation to reducing stress and anxiety.

It has surged in global popularity in recent years, with brands adding it to shampoos, drinks, body oils, gummy bears and dog treats. In the United States and Europe, you might find it sold in coffee shops and farmers’ markets, mom-and-pop and high-end department stores, and even drugstore chain CVS.

But last June, draft legislation banning CBD was introduced to Hong Kong lawmakers, and went into effect February 1.

Under the new legislation, possession and consumption of any amount of CBD is punishable by seven years in prison and a fine of 1 million Hong Kong dollars ($127,607). Manufacturing, importing or exporting CBD is punishable by life imprisonment.

Even travelers could face penalties, with the government warning people not to risk “buying these products or bringing them back to Hong Kong.”

The same penalties and conditions apply for cannabis, also known as marijuana.

The ban has forced CBD-focused businesses to close, while other brands have had to roll back or get rid of CBD products.

“It’s a shame because there’s a missed opportunity for sure,” said Luke Yardley, founder of Yardley Brothers Craft Brewery, which had previously sold four products containing CBD – a lager and three nonalcoholic drinks. “I think that anything that you can’t get intoxicated from, and helps you to relax, is probably a good thing.”

The health benefits and risks of CBD have long been debated. In the US, most CBD products are not regulated by the Food and Drug Administration (FDA), which means that people can purchase items off the shelf.

Some research has found that the compound can ease pain and may be useful for those who have trouble sleeping. The FDA has approved one drug with CBD to treat rare, severe forms of epilepsy.

But concerns have also been raised, with some experts saying there isn’t enough scientific research into how CBD works or its potential effects.

In January, the FDA announced CBD products will require a new regulatory pathway in the US, saying: “We have not found adequate evidence to determine how much CBD can be consumed, and for how long, before causing harm.”

In Hong Kong, which has strict cannabis laws, the government’s concern revolves around the possible presence of its sister compound THC (tetrahydrocannabinol) in CBD products. THC is also found in cannabis plants and is responsible for the “high.”

In the US and Europe, CBD products can carry up to 0.3% – a trace amount – of THC, but even that is not acceptable in Hong Kong. And while CBD products could avoid this trace amount by using a pure form of CBD, most manufacturers mix other compounds for higher potency.

From 2019 to early 2022, Hong Kong authorities launched nearly 120 “operations” seizing and testing CBD products from restaurants and shops to warehouses, Secretary for Security Tang Ping-keung said last year. He added that more than 3,800 products were found to contain THC, though did not give further detail on the proportion or percentage of THC in those products.

In a written response to questions raised in the Legislative Council, Tang suggested the government’s traditionally tough stance on THC should be applied to CBD “to protect public heath.”

“We have adopted ‘zero tolerance’ towards drugs and we understand that it is a matter of public concern,” he said. “Therefore, the government plans to control CBD.”

The Action Committee Against Narcotics, a group of representatives from “the fields of social work, education, medical and community service” that advises the government on anti-drug policy, said in a statement last November that it supported the CBD ban and the government’s goal of “a drug-free Hong Kong.”

Many businesses began bracing themselves for regulatory changes in 2022, ahead of the government’s official announcement this January.

Yardley Brothers Craft Brewery stopped making its CBD beverages late last year in anticipation of the ban, and all its leftover products had sold out by December, said Yardley.

He said the CBD drinks had been “very popular,” amounting to roughly 8% of the business, as they offered adults a nonalcoholic option to enjoy when out with friends. At some bars, regulars “come in every weekend for a glass of CBD lemonade,” he said.

Now “there’s less choice for consumers in Hong Kong. That’s not necessarily a step in the right direction,” he said.

Some companies have been forced to shut down completely.

Med Chef, a restaurant that opened in 2021, once boasted of offering Hong Kong’s “first full menu of CBD-infused cocktails, appetizers and entrees.” In a news release during its launch, the restaurant founder emphasized the health and wellness benefits of CBD.

But by early November 2022, it had closed its doors. “We have worked hard in the past to present CBD in its most acceptable form and integrate our food and beverage concepts,” the restaurant wrote in a farewell post on Instagram. “It’s a pity that things didn’t go the way we hoped. Under the latest policies of those in power, we ultimately aren’t able to continue forward with everyone.”

Hong Kong’s first CBD cafe, Found, had also made headlines when it opened in 2020. It sold a variety of CBD products including infused coffee and beers, oils to help sleep, powder to sprinkle into food and pet products to help ease stiff joints.

It closed at the end of September 2022, telling patrons on Instagram that their positive feedback had shown that “CBD could help to cope with the stresses of daily life.”

“Sadly, in spite of the demonstrable positive impact, it has now become apparent that the Hong Kong government intends to adopt new legislation to prohibit the sale and possession of CBD,” it wrote.

Yardley said the government’s concerns about THC were valid – but argued they could have implemented better regulations, such as requiring certifications or standards of safety around CBD samples.

“It’s quite an extreme response to just fully ban it,” he said.

And while the brewery will continue operating, with plans for alternative nonalcoholic beverages to fill the gap, Yardley hopes CBD will be back on the menu. “I hope for the future that it might become legal again,” he said.

This story has been updated to include details of the draft legislation and its introduction.



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Most Adani bonds rally after Group’s $2.5 billion share sale

Most of the dollar bonds issued by the Adani group of companies gained for a second day Wednesday after its flagship sold $2.5 billion worth of shares in a fully subscribed follow-on offering.
The 2024 note of Adani Green Energy Ltd. gained nearly 5 cents on a dollar to 80.9 cents as of 9:35 a.m. in Hong Kong, recovering from a slump to a record low earlier this week. Eleven out of 15 dollar-denominated bonds by the group tracked by Bloomberg were also higher.
The offering by flagship company Adani Enterprises Ltd. was India’s largest follow-on share sale, and was fully subscribed on the final day. It may help ease investor concerns faced by Adani after fraud allegations from short seller Hindenburg Research sent the group into turmoil.
The conglomerate, backed by Asian’s richest person, have also put up millions of dollars worth of shares to maintain its collateral cover on a $1 billion loan after a steep selloff in shares across the business empire, according to people familiar with the matter.
Still, even after the rally, the yield on the 2024 Adani Green Energy bonds is still close to 20%. The group may struggle to tap the bond market in the near term, given concerns about governance, according to a report by Bloomberg Intelligence.



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Travelers rush to take advantage of China reopening

BEIJING (AP) — After two years of separation from his wife in mainland China, Hong Kong resident Cheung Seng-bun made sure to be among the first in line following the reopening of border crossing points Sunday.

The ability of residents of the semi-autonomous southern Chinese city to cross over is one of the most visible signs of China’s easing of border restrictions, with travelers arriving from abroad also no longer required to undergo quarantine.

“I’m hurrying to get back to her,” Cheung, lugging a heavy suitcase, told The Associated Press as he prepared to cross at Lok Ma Chau station.

Travelers crossing between Hong Kong and mainland China, however, are still required to show a negative COVID-19 test taken within the last 48 hours — a measure China has protested when imposed by other countries.

Hong Kong has been hard-hit by the virus, and its land and sea border checkpoints with the mainland have been largely closed for almost three years. Despite the risk of new infections, the reopening that will allow tens of thousands of people who have made prior online bookings to cross each day is expected to provide a much-needed boost to Hong Kong’s tourism and retail sectors.

On a visit to the station Sunday morning, Hong Kong’s Chief Executive John Lee said the sides would continue to expand the number of crossing points from the current seven to the full 14.

“The goal is to get back as quickly as possible to the pre-epidemic normal life,” Lee told reporters. “We want to get cooperation between the two sides back on track.”

Communist Party newspaper Global Times quoted Tan Luming, a port official in Shenzhen on the border with Hong Kong, saying about 200 passengers were expected to take the ferry to Hong Kong, while another 700 were due to travel in the other direction, on the first day of reopening. Tan said a steady increase in passenger numbers is expected over coming days.

“I stayed up all night and got up at 4:00 a.m. as I’m so excited to return to the mainland to see my 80-year-old mother,” a Hong Kong woman identified only by her surname, Cheung, said on arrival at Shenzhen, where she was presented with “roses and health kits,” the paper said.

Hong Kong media reports said around 300,000 travel bookings from the city to mainland China have already been made.

Limited ferry service had also been restored from China’s Fujian province to the Taiwanese-controlled island of Kinmen just off the Chinese coast.

The border crossing with Russia at Suifenhe in the far northern province of Heilongjiang also resumed normal operations, just in time for the opening of the ice festival in the capital of Harbin, a major tourism draw.

China’s borders remain largely sealed, however, with only a fraction of the previous number of international flights arriving at major airports.

Beijing’s main Capital International Airport was expecting eight flights from overseas on Sunday, according to the airport. Shanghai, China’s largest city, received its first international flight under the new policy at 6:30 a.m. with only a trickle of other international flights to follow.

That number is expected now to tick upward, with booking inquiries for overseas flights overwhelming some online travel services ahead of the Lunar New Year travel rush later this month. Capital International is preparing to reopen arrival halls that have been quiet for most of the past three years.

Shanghai, meanwhile, announced it would again start issuing regular passports to Chinese for foreign travel and family visits, as well as renewing and extending visas for foreigners. Those restrictions have had a particularly devastating effect on foreign businesspeople and students in the key Asian financial center.

China is now facing a surge in cases and hospitalizations in major cities and is bracing for a further spread into less developed areas with the start of China’s most important holiday of the year, set to get underway in coming days.

Authorities say they expect domestic rail and air journeys will double over the same period last year, bringing overall numbers close to those of the 2019 holiday period before the pandemic hit.

Meanwhile, the controversy continues over testing requirements being imposed on Chinese travelers by foreign governments — most recently Germany and Sweden. On Saturday, German Foreign Minister Annalena Baerbock urged citizens to avoid “unnecessary” travel to China, noting the rise in coronavirus cases in the country and saying that China’s Health system is “overburdened.”

The German regulation also allows for spot checks on arrival and Germany, like other European nations, will test wastewater from aircrafts for possible new virus variants. The measures come into force at midnight Monday and are due to last until April 7.

Apparently concerned about its reputation, China says the testing requirements aren’t science-based and has threatened unspecified countermeasures.

Chinese health authorities publish a daily count of new cases, severe cases and deaths, but those numbers include only officially confirmed cases and use a very narrow definition of COVID-19-related deaths.

Authorities say that since the government ended compulsory testing and permitted people with mild symptoms to test themselves and convalesce at home, it can no longer provide a full picture of the state of the latest outbreak.

Government spokespeople have said the situation is under control and reject accusations from the World Health Organization and others that it is not being transparent about the number of cases and deaths or providing other crucial information on the nature of the current outbreak that could lead to the emergence of new variants.

Despite such assertions, the Health Commission on Saturday rolled out regulations for strengthened monitoring of viral mutations, including testing of urban wastewater. The lengthy rules called for increased data gathering from hospitals and local government health departments and stepped-up checks on “pneumonia of unknown causes.”

Criticism has largely focused on heavy-handed enforcement of regulations, including open-ended travel restrictions that saw people confined to their homes for weeks, sometimes sealed inside without adequate food or medical care.

Anger was also vented over the requirement that anyone who potentially tested positive or had been in contact with such a person be confined for observation in a field hospital, where overcrowding, poor food and hygiene were commonly cited.

The social and economic costs eventually prompted rare street protests in Beijing and other cities, possibly influencing the Communist Party’s decision to swiftly ease the strictest measures and reprioritize growth.

As part of the latest changes, China will also no longer bring criminal charges against people accused of violating border quarantine regulations, according to a notice issued by five government departments on Saturday.

Individuals currently in custody will be released and seized assets returned, the notice said.

The Transportation Ministry on Friday called on travelers to reduce trips and gatherings, particularly if they involve elderly people, pregnant women, small children and those with underlying conditions.

___

Associated Press reporters Alice Fung and Karmen Li in Hong Kong and Frank Jordans in Berlin contributed to this report.

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Post-zero-Covid: What the return of Chinese tourists means for the global economy


Hong Kong
CNN
 — 

In the years before Covid, China was the world’s most important source of international travelers. Its 155 million tourists spent more than a quarter of a trillion dollars beyond its borders in 2019.

That largesse fell precipitously over the past three years as the country essentially closed its borders. But, as China prepares to reopen on Sunday, millions of tourists are poised to return to the world stage, raising hopes of a rebound for the global hospitality industry.

Although international travel may not return immediately to pre-pandemic levels, companies, industries and countries that rely on Chinese tourists will get a boost in 2023, according to analysts.

China averaged about 12 million outbound air passengers per month in 2019, but those numbers fell 95% during the Covid years, according to Steve Saxon, a partner in McKinsey’s Shenzhen office. He predicts that figure will recover to about 6 million per month by the summer, driven by the pent-up wanderlust of young, wealthy Chinese like Emmy Lu, who works for an advertising company in Beijing.

“I’m so happy [about the reopening]! ” Lu told CNN. “Because of the pandemic, I could only wander around the country for the past years. It was difficult.”

“It’s just that I’ve been stuck inside the country for a little too long. I’m really looking forward to the lifting of the restrictions, so that I can go somewhere for fun! ” the 30-year-old said, adding that she wanted to visit Japan and Europe the most.

As China announced last month it would no longer subject inbound travelers to quarantine starting January 8, including residents returning from trips abroad, searches for international flights and accommodations immediately hit a three-year high on Trip.com

(TCOM).

Bookings for overseas travel during the upcoming Lunar New Year holiday, which falls between January 21 and January 27 this year, have soared by 540% from a year ago, according to data from the Chinese travel site. Average spending per booking jumped 32%.

The top destinations are in the Asia Pacific region, including Australia, Thailand, Japan and Hong Kong. The United States and the United Kingdom also ranked among the top 10.

“The rapid buildup in … [bank] deposits over the past year suggests that households in China have accumulated significant cash holdings,” said Alex Loo, a macro strategist for TD Securities, adding that frequent lockdowns have likely led to restraints on household spending.

There could be “revenge spending” by Chinese consumers, mirroring what happened in many developed markets when they reopened early last year, he said.

That’s good news for many economies battered by the pandemic.

“We estimate that Hong Kong, Thailand, Vietnam and Singapore would benefit the most if China’s travel service imports were to return to 2019 levels,” said Goldman Sachs analysts。

Hong Kong — the world’s most visited city with just under 56 million arrivals in 2019, most of them from mainland China — could see an estimated 7.6% boost to its GDP as exports and tourism income increase, they said. Thailand’s GDP may be boosted by 2.9%, while Singapore would get a lift of 1.2%.

Elsewhere in the world, Cambodia, Mauritius, Malaysia, Taiwan, Myanmar, Sri Lanka, South Korea and Philippines are also likely to benefit from the return of Chinese tourists, according to research by Capital Economics.

Hong Kong has suffered particularly acutely from the closure of its border with mainland China. The city’s pillar industries of tourism and real estate have been hit hard. The financial hub expects GDP to have contracted by 3.2% in 2022.

The city government announced Thursday that up to 60,000 people would be allowed to cross the border daily each way, starting Sunday.

Several other Southeast Asian countries reliant on tourism have kept entry rules relatively relaxed for Chinese tourists, despite the record Covid-19 outbreak that has swept through China in recent weeks. They include Thailand, Indonesia, Singapore and the Philippines.

“This is one of the opportunities that we can accelerate economic recovery,” Thailand’s health minister said this week.

New Zealand has also waived testing requirements for Chinese visitors, who were the second largest source of tourist revenue for the country before the pandemic.

But other governments are more cautious. So far, nearly a dozen countries, including the United States, Germany, France, Canada, Japan, Australia and South Korea, have mandated testing.

The European Union on Wednesday “strongly encouraged” its members states to require a negative Covid test for visitors from China before arrival.

There is clearly “conflict” between the tourism authorities and the political and health officials in some countries, said Saxon, who leads McKinsey’s travel practice in Asia.

Airlines and airports have already blasted the EU’s recommendations for testing requirements.

The International Air Transport Association, the airline industry’s global lobby group, together with airports represented by ACI Europe as well as Airlines for Europe, issued a joint statement on Thursday, calling the EU move “regrettable” and “a knee-jerk reaction.”

But they welcomed the additional recommendation to test wastewater as a way of identifying new variants of the disease, saying it should be an alternative to testing passengers.

Besides restrictions, it will take time for international travel to fully rebound because many Chinese must renew their passports and apply for visas again, according to analysts.

Lu from Beijing said she was still considering her travel plans, taking into consideration the various testing requirements and the high price of flying.

“The restrictions are normal, because everyone wants to protect people in their own country,” she said. “I’ll wait and see if some policies will be eased.”

Liu Chaonan, a 24-year-old in Shenzhen, said she had initially wanted to go to the Philippines to celebrate the Chinese New Year, but didn’t have time to apply for the visa. So she switched to Thailand, which offers quick and easy electronic permits.

“Time is short and I need to leave in about 10 days. People may choose some visa-friendly places and countries to travel to,” she said, adding that she plans to learn scuba diving and wants to buy cosmetics. Her total budget for the trip could exceed 10,000 yuan ($1,460).

Saxon said he expected China’s outbound international travel to fully recover by the year end.

“Generally, individuals are pragmatic and countries will welcome Chinese tourists due to their spending power,” he said, adding that countries may remove restrictions quickly when the Covid situation improves in China.

“It will take time for international tourism to get going, but it will come rushing back, when it happens.”

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Why people in China are panic buying canned yellow peaches as Covid surges


Hong Kong
CNN
 — 

An unprecedented wave of Covid cases in China has sparked panic buying of fever medicines, pain killers, and even home remedies such as canned peaches, leading to shortages online and in stores.

Authorities said Wednesday they had detected 2,249 symptomatic Covid-19 cases nationally through nucleic acid testing, 20% of which were detected in the capital Beijing. CNN reporting from the city indicates the case count in the Chinese capital could be much higher than recorded.

Demand for fever and cold medicines, such as Tylenol and Advil, is surging nationally as people rush to stockpile drugs amid fears they may contract the virus.

Canned yellow peaches, considered a particularly nutritious delicacy in many parts of China, have been snapped up by people looking for ways to fight Covid. The product is currently sold out on many online shops.

Its sudden surge in popularity prompted Dalian Leasun Food, one of the country’s largest canned food manufacturers, to clarify in a Weibo post that canned yellow peaches don’t have any medicinal effect.

“Canned yellow peaches ≠ medicines!” the company said in the post published Friday. “There is enough supply, so there is no need to panic. There is no rush to buy.”

The People’s Daily, the mouthpiece of the Communist Party, also tried to set the record straight. It published a long Weibo post on Sunday urging the public not to stockpile the peaches, calling them “useless in alleviating symptoms of illness.”

Authorities also pleaded with the public not to stockpile medical supplies. On Monday, the Beijing city government warned residents that it was facing “great pressure” to meet demand for drug and medical services because of panic buying and an influx of patients at clinics.

It urged the public not to hoard drugs or call emergency services if they have no symptoms.

The rising demand and shortage of supply of Covid remedies have fueled bets on drugmakers.

Shares of Hong Kong-listed Xinhua Pharmaceutical, China’s largest manufacturer of ibuprofen, have gained 60% in the past five days. The stock has so far jumped by 147% in the first two weeks of this month.

“Our company’s production lines are operating at full capacity, and we are working overtime to produce urgently needed medicines, such as ibuprofen tablets,” Xinhua Pharmaceutical said Monday.

Ibuprofen is an anti-inflammatory drug used to treat pain and fever. It is also known as Advil, Brufen, or Fenbid.

The drug shortage has spread from mainland China to Hong Kong, a special administrative region which has a separate system of local government. On Sunday, the city’s health chief urged the public to refrain from panic buying cold medicines they do not need and urged residents “not to overact.”

In some Hong Kong drugstores, fever drugs such as Panadol, the local brand name for Tylenol, have sold out. Most of the buyers were sending the medicines to their families and friends in the mainland, sales representatives told CNN.

Shares of Shenzhen-listed Guizhou Bailing Group Pharmaceuticals, known for making cough syrup, have gained 21% this week and risen 51% so far this month. Yiling Pharmaceutical, the sole producer of Lianhua Qingwen, a traditional Chinese medicine recommended by the government for treating Covid, has also jumped more than 30% in the past month.

Even providers of funeral services and burial plots have gotten a huge boost. Shares in Hong Kong-traded Fu Shou Yuan International, China’s largest burial service company, have soared more than 50% since last month.

There is “strong pent-up demand for burial plots” in 2023, analysts from Citi Group said in a recent research report, adding that they’ve noticed increasing investor interest in the sector.

They cited the existence of hundreds of thousands of cremated remains, which are being temporarily stored in government facilities awaiting burial. Lockdowns across much of the country have halted funeral services, they said.

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China lockdown protests pause as police flood city streets

HONG KONG (AP) — With police out in force, there was no word of additional protests against strict government anti-pandemic measures Tuesday in Beijing, as temperatures fell well below freezing. Shanghai, Nanjing and other cities where online calls to gather had been issued were also reportedly quiet.

Rallies against China’s unusually strict anti-virus measures spread to several cities over the weekend in the biggest show of opposition to the ruling Communist Party in decades. Authorities eased some regulations, apparently to try to quell public anger, but the government showed no sign of backing down on its larger coronavirus strategy, and analysts expect authorities to quickly silence the dissent.

Police were checking making random checks on phones at the People’s Square subway station in Shanghai Monday evening, an eyewitness said. The person declined to give his name out of fear of retribution, as he was en route to a planned protest near the station, which he did not find.

In Hong Kong Monday, about 50 students from mainland China sang at the Chinese University of Hong Kong and some lit candles in a show of support for those in mainland cities who demonstrated against restrictions that have confined millions to their homes. Hiding their faces to avoid official retaliation, the students chanted, “No PCR tests but freedom!” and “Oppose dictatorship, don’t be slaves!”

The gathering and a similar one elsewhere in Hong Kong were the biggest protests there in more than a year under rules imposed to crush a pro-democracy movement in the territory, which is Chinese but has a separate legal system from the mainland.

“I’ve wanted to speak up for a long time, but I did not get the chance to,” said James Cai, a 29-year-old from Shanghai who attended a Hong Kong protest and held up a piece of white paper, a symbol of defiance against the ruling party’s pervasive censorship. ”If people in the mainland can’t tolerate it anymore, then I cannot as well.”

It wasn’t clear how many people have been detained since the protests began in the mainland Friday, sparked by anger over the deaths of 10 people in a fire in the northwestern city of Urumqi. That prompted angry questions online about whether firefighters or victims trying to escape were blocked by locked doors or other anti-virus controls. Authorities denied that, but the incident became a target for public frustration about the controls.

Without mentioning the protests, the criticism of Xi or the fire, some local authorities eased restrictions Monday.

The city government of Beijing announced it would no longer set up gates to block access to apartment compounds where infections are found.

“Passages must remain clear for medical transportation, emergency escapes and rescues,” said Wang Daguang, a city official in charge of epidemic control, according to the official China News Service.

Guangzhou, a manufacturing and trade center that is the biggest hot spot in China’s latest wave of infections, announced some residents will no longer be required to undergo mass testing.

The U.S. Embassy advised citizens to prepare for all eventualities and said Ambassador Nicholas Burns and other American diplomats have “regularly raised our concerns on many of these issues directly.”

“We encourage all U.S. citizens to keep a 14-day supply of medications, bottled water, and food for yourself and any members of your household,” the Embassy said in a statement Monday.

In Washington, White House National Security Council spokesman John Kirby “obviously, there are people in China that — that have — have concerns about that,” referring to lockdowns.

“And they’re protesting that, and we believe they should be able to do that peacefully,” Kirby said at a Monday briefing.

Urumqi, where the fire occurred, and another city in the Xinjiang region in the northwest announced markets and other businesses in areas deemed at low risk of infection would reopen this week and public bus service would resume.

“Zero COVID,” which aims to isolate every infected person, has helped to keep China’s case numbers lower than those of the United States and other major countries. But tolerance for the measures has flagged as people in some areas have been confined at home for up to four months and say they lack reliable access to food and medical supplies.

The ruling party promised last month to reduce disruption by changing quarantine and other rules known as the “20 Guidelines.” But a spike in infections has prompted cities to tighten controls.

On Tuesday, the number of daily cases dipped slightly to 38,421 after setting new records over recent days. Of those, 34,860 were among people who showed no symptoms.

The ruling party newspaper People’s Daily called for its anti-virus strategy to be carried out effectively, indicating Xi’s government has no plans to change course.

“Facts have fully proved that each version of the prevention and control plan has withstood the test of practice,” a People’s Daily commentator wrote.

In Hong Kong, protesters at Chinese University put up posters that said, “Do Not Fear. Do Not Forget. Do Not Forgive,” and sang including “Do You Hear the People Sing?” from the musical “Les Miserables.” Most hid their faces behind blank white sheets of paper.

“I want to show my support,” said a 24-year-old mainland student who would identify herself only as G for fear of retaliation. “I care about things that I couldn’t get to know in the past.”

University security guards videotaped the event but there was no sign of police.

At an event in Central, a business district, about four dozen protesters held up blank sheets of paper and flowers in what they said was mourning for the fire victims in Urumqi and others who have died as a result of “zero COVID” policies.

Police cordoned off an area around protesters, who stood in small, separate groups to avoid violating pandemic rules that bar gatherings of more than 12 people. Police took identity details of participants but there were no arrests.

Hong Kong has tightened security controls and rolled back Western-style civil liberties since China launched a campaign in 2019 to crush a pro-democracy movement. The territory has its own anti-virus strategy that is separate from the mainland.

Hong Kong’s Chief Executive John Lee is a law-and-order hardliner who led the crackdown on protesters, including on university campuses.

Both the Hong Kong government and the State Council, China’s Cabinet, issued statements Monday pledging to uphold public order and the authority of the National Security Law, which gives authorities sweeping powers to charge demonstrators with crimes including sedition.

Protests also occurred over the weekend in Guangzhou near Hong Kong, Chengdu and Chongqing in the southwest, and Nanjing in the east, according to witnesses and video on social media. Guangzhou has seen earlier violent confrontations between police and residents protesting quarantines.

Most protesters have complained about excessive restrictions, but some turned their anger at Xi, China’s most powerful leader since at least the 1980s. In a video that was verified by The Associated Press, a crowd in Shanghai on Saturday chanted, “Xi Jinping! Step down! CCP! Step down!”

The British Broadcasting Corp. said one of its reporters was beaten, kicked, handcuffed and detained for several hours by Shanghai police but later released.

The BBC criticized what it said was Chinese authorities’ explanation that its reporter was detained to prevent him from contracting the coronavirus from the crowd. “We do not consider this a credible explanation,” the broadcaster said in a statement.

Chinese Ministry of Foreign Affairs spokesman Zhao Lijian said the BBC reporter failed to identify himself and “didn’t voluntarily present” his press credential.

“Foreign journalists need to consciously follow Chinese laws and regulations,” Zhao said.

Swiss broadcaster RTS said its correspondent and a cameraman were detained while doing a live broadcast but released a few minutes later. An AP journalist was detained but later released.

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Associated Press writer Joe McDonald in Beijing contributed.

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China markets tank as protests erupt over Covid lockdowns


Hong Kong
CNN Business
 — 

China’s major stock indices and its currency have opened sharply lower Monday, as widespread protests against the country’s stringent Covid-19 restrictions over the weekend roiled investor sentiment.

Hong Kong’s Hang Seng

(HSI) Index fell as much as 4.2% in early trading. It has since pared some losses and last traded 2% lower. The Hang Seng

(HSI) China Enterprises Index, a key index that tracks the performance of mainland Chinese companies listed in Hong Kong, lost 2%.

In mainland China, the benchmark Shanghai Composite briefly fell 2.2%, before trimming losses to 0.9% lower than Friday’s close. The tech-heavy Shenzhen Component Index dropped 1.1%.

The Chinese yuan, also known as the renminbi, plunged against the US dollar on Monday morning. The onshore yuan, which trades in the tightly controlled domestic market, briefly weakened 0.9%. It was last down 0.6% at 7.206 per dollar. The offshore rate, which trades overseas, dropped 0.3% to 7.212 per dollar.

The plunging yuan suggests that “investors are running ice cold on China,” said Stephen Innes, managing partner of SPI Asset Management, adding that the currency market might be “the simplest barometer” to gauge what domestic and overseas investors think.

The markets tumble comes after protests erupted across China in an unprecedented show of defiance against the country’s stringent and increasingly costly zero-Covid policy.

In the country’s biggest cities, from the financial hub of Shanghai to the capital Beijing, residents gathered over the weekend to mourn the dead from a fire in Xinjiang, speak out against zero-Covid and call for freedom and democracy.

Such widespread scenes of anger and defiance, some of which stretched into the early hours of Monday morning, are exceptionally rare in China.

Asian markets were also broadly lower. South Korea’s Kospi lost 1%, Japan’s Nikkei 225

(N225) shed 0.6%, and Australia’s S&P/ASX 200 fell by 0.3%.

US stock futures — an indication of how markets are likely to open — fell, with Dow futures down 0.5%, or 171 points. Futures for the S&P 500 were down 0.7%, while futures for the Nasdaq dropped 0.8%.

Oil prices also dropped sharply, with investors concerned that surging Covid cases and protests in China may sap demand from one of the world’s largest oil consumers. US crude futures fell 2.7% to trade at $74.19 a barrel. Brent crude, the global oil benchmark, lost 2.6% to $81.5 per barrel.

On Friday, a day before the protests started, China’s central bank cut the amount of cash that lenders must hold in reserve for the second time this year. The reserve requirement ratio for most banks (RRR) was reduced by 25 percentage points.

The move was aimed at propping up an economy that had been crippled by strict Covid restrictions and an ailing property market. But analysts don’t think the move will have a significant impact.

“Cutting the RRR now is just like pushing on a string, as we believe the real hurdle for the economy is the pandemic rather than insufficient loanable funds,” said analysts from Nomura in a research report released Monday.

“In our view, ending the pandemic [measures] as soon as possible is the key to the recovery in credit demand and economic growth,” they said.

Innes from SPI Asset Management said China’s economy is currently caught in the midst of a tug-of-war between weakening economic fundamentals and increasing reopening hopes.

“For China’s official institutions, there are no easy paths. Accelerating reopening plans when new Covid cases are rising is unlikely, given the low vaccination coverage of the elderly,” he said. “Mass protests would deeply tilt the scales in favor of an even weaker economy and likely be accompanied by a massive surge in Covid cases, leaving policymakers with a considerable dilemma.”

In the near term, he said, Chinese equities and currency will likely price in “more significant uncertainty” around Beijing’s reaction to the ongoing protests. He expects social discontent could increase in China over the coming months, testing policymakers’ resolve to stick to its draconian zero-Covid mandates.

But in the longer term, the more pragmatic and likely outcome should be “a quicker loosening of [Covid] restrictions once the current wave subsides,” he said.

Read original article here

Guangzhou lockdown: Chinese are criticizing zero-Covid — in language censors don’t seem to understand


Hong Kong
CNN
 — 

In many countries, cursing online about the government is so commonplace nobody bats an eye. But it’s not such an easy task on China’s heavily censored internet.

That doesn’t appear to have stopped residents of Guangzhou from venting their frustration after their city – a global manufacturing powerhouse home to 19 million people – became the epicenter of a nationwide Covid outbreak, prompting lockdown measures yet again.

“We had to lock down in April, and then again in November,” one resident posted on Weibo, China’s restricted version of Twitter, on Monday – before peppering the post with profanities that included references to officials’ mothers. “The government hasn’t provided subsidies – do you think my rent doesn’t cost money?”

Other users left posts with directions that loosely translate to “go to hell,” while some accused authorities of “spouting nonsense” – albeit in less polite phrasing.

Such colorful posts are remarkable not only because they represent growing public frustration at China’s unrelenting zero-Covid policy – which uses snap lockdowns, mass testing, extensive contact-tracing and quarantines to stamp out infections as soon as they emerge – but because they remain visible at all.

Normally such harsh criticisms of government policies would be swiftly removed by the government’s army of censors, yet these posts have remained untouched for days. And that is, most likely, because they are written in language few censors will fully understand.

These posts are in Cantonese, which originated in Guangzhou’s surrounding province of Guangdong and is spoken by tens of millions of people across Southern China. It can be difficult to decipher by speakers of Mandarin – China’s official language and the one favored by the government – especially in its written and often complex slang forms.

And this appears to be just the latest example of how Chinese people are turning to Cantonese – an irreverent tongue that offers rich possibilities for satire – to express discontent toward their government without attracting the notice of the all-seeing censors.

In September this year, US-based independent media monitoring organization China Digital Times noted numerous dissatisfied Cantonese posts slipping past censors in response to mass Covid testing requirements in Guangdong.

“Perhaps because Weibo’s content censorship system has difficulty recognizing the spelling of Cantonese characters, many posts in spicy, bold and straightforward language ​​still survive. But if the same content is written in Mandarin, it is likely to be blocked or deleted,” said the organization, which is affiliated with the University of California, Berkeley.

In nearby Cantonese-speaking Hong Kong, anti-government demonstrators in 2019 often used Cantonese wordplay both for protest slogans and to guard against potential surveillance by mainland Chinese authorities.

Now, Cantonese appears to be offering those fed-up with China’s continuous zero-Covid lockdowns an avenue for more subtle displays of dissent.

Jean-François Dupré, an assistant professor of political science at Université TÉLUQ who has studied the language politics of Hong Kong, said the Chinese government’s shrinking tolerance for public criticism has pushed its critics to “innovate” in their communication.

“It does seem that using non-Mandarin forms of communication could enable dissenters to evade online censorship, at least for some time,” Dupré said.

“This phenomenon testifies to the regime’s lack of confidence and increasing paranoia, and of citizens’ continuing eagerness to resist despite the risks and hurdles.”

Though Cantonese shares much of its vocabulary and writing system with Mandarin, many of its slang terms, expletives and everyday phrases have no Mandarin equivalent. Its written form also sometimes relies on rarely used and archaic characters, or ones that mean something totally different in Mandarin, so Cantonese sentences can be difficult for Mandarin readers to understand.

Compared to Mandarin, Cantonese is highly colloquial, often informal, and lends itself easily to wordplay – making it well-suited for inventing and slinging barbs.

When Hong Kong was rocked by anti-government protests in 2019 – fueled in part by fears Beijing was encroaching on the city’s autonomy, freedoms and culture – these attributes of Cantonese came into sharp focus.

“Cantonese was, of course, an important conveyor of political grievances during the 2019 protests,” Dupré said, adding that the language gave “a strong local flavor to the protests.”

He pointed to how entirely new written characters were born spontaneously from the pro-democracy movement – including one that combined the characters for “freedom” with a popular profanity.

Other plays on written characters illustrate the endless creativity of Cantonese, such as a stylized version of “Hong Kong” that, when read sideways, becomes “add oil” – a rallying cry in the protests.

Protesters also found ways to protect their communications, wary that online chat groups – where they organized rallies and railed against the authorities – were being monitored by mainland agents.

For example, because spoken Cantonese sounds different to spoken Mandarin, some people experimented with romanizing Cantonese – spelling out the sounds using the English alphabet – thereby making it virtually impossible to understand for a non-native speaker.

And, while the protests died down after the Chinese government imposed a sweeping national security law in 2020, Cantonese continues to offer the city’s residents an avenue for expressing their unique local identity – something people have long feared losing as the city is drawn further under Beijing’s grip.

For some, using Cantonese to criticize the government seems particularly fitting given the central government has aggressively pushed for Mandarin to be used nationwide in education and daily life – for instance, in television broadcasts and other media – often at the expense of regional languages and dialects.

These efforts turned into national controversy in 2010, when government officials suggested increasing Mandarin programming on the primarily-Cantonese Guangzhou Television channel – outraging residents, who took part in rare mass street rallies and scuffles with police.

It’s not just Cantonese affected – many ethnic minorities have voiced alarm that the decline of their native languages could spell an end to cultures and ways of life they say are already under threat.

In 2020, students and parents in Inner Mongolia staged mass school boycotts over a new policy that replaced the Mongolian language with Mandarin in elementary and middle schools.

Similar fears have long existed in Hong Kong – and grew in the 2010s as more Mandarin-speaking mainlanders began living and working in the city.

“Growing numbers of Mandarin-speaking schoolchildren have been enrolled in Hong Kong schools and been seen commuting between Shenzhen and Hong Kong on a daily basis,” Dupré said. “Through these encounters, the language shift that has been operating in Guangdong became quite visible to Hong Kong people.”

He added that these concerns were heightened by local government policies that emphasized the role of Mandarin, and referred to Cantonese as a “dialect” – infuriating some Hong Kongers who saw the term as a snub and argued it should be referred to as a “language” instead.

In the past decade, schools across Hong Kong have been encouraged by the government to switch to using Mandarin in Chinese lessons, while others have switched to teaching simplified characters – the written form preferred in the mainland – instead of the traditional characters used in Hong Kong.

There was further outrage in 2019 when the city’s education chief suggested that continued use of Cantonese over Mandarin in the city’s schools could mean Hong Kong would lose its competitive edge in the future.

“Given Hong Kong’s rapid economic and political integration, it wouldn’t be surprising to see Hong Kong’s language regime be brought in line with that of the mainland, especially where Mandarin promotion is concerned,” Dupré said.

It’s not the first time people in the mainland have found ways around the censors. Many use emojis to represent taboo phrases, English abbreviations that represent Mandarin phrases, and images like cartoons and digitally altered photos, which are harder for censors to monitor.

But these methods, by their very nature, have their limits. In contrast, for the fed-up residents of Guangzhou, Cantonese offers an endless linguistic landscape with which to lambast their leaders.

It’s not clear whether these more subversive uses of Cantonese will encourage greater solidarity between its speakers in Southern China – or whether it could encourage the central government to further clamp down on the use of local dialects, Dupré said.

For now though, many Weibo users have embraced the rare opportunity to voice frustration with China’s zero-Covid policy, which has battered the country’s economy, isolated it from the rest of the world, and disrupted people’s daily lives with the constant threat of lockdowns and unemployment.

“I hope everyone can maintain their anger,” wrote one Weibo user, noting how most of the posts relating to the Guangzhou lockdowns were in Cantonese.

“Watching Cantonese people scolding (authorities) on Weibo without getting caught,” another posted, using characters that signify laughter.

“Learn Cantonese well, and go across Weibo without fear.”

Read original article here

Guangzhou lockdown: Chinese are criticizing zero-Covid — in language censors don’t understand


Hong Kong
CNN
 — 

In many countries, cursing online about the government is so commonplace nobody bats an eye. But it’s not such an easy task on China’s heavily censored internet.

That doesn’t appear to have stopped residents of Guangzhou from venting their frustration after their city – a global manufacturing powerhouse home to 19 million people – became the epicenter of a nationwide Covid outbreak, prompting lockdown measures yet again.

“We had to lock down in April, and then again in November,” one resident posted on Weibo, China’s restricted version of Twitter, on Monday – before peppering the post with profanities that included references to officials’ mothers. “The government hasn’t provided subsidies – do you think my rent doesn’t cost money?”

Other users left posts with directions that loosely translate to “go to hell,” while some accused authorities of “spouting nonsense” – albeit in less polite phrasing.

Such colorful posts are remarkable not only because they represent growing public frustration at China’s unrelenting zero-Covid policy – which uses snap lockdowns, mass testing, extensive contact-tracing and quarantines to stamp out infections as soon as they emerge – but because they remain visible at all.

Normally such harsh criticisms of government policies would be swiftly removed by the government’s army of censors, yet these posts have remained untouched for days. And that is, most likely, because they are written in language few censors will fully understand.

These posts are in Cantonese, which originated in Guangzhou’s surrounding province of Guangdong and is spoken by tens of millions of people across Southern China. It can be difficult to decipher by speakers of Mandarin – China’s official language and the one favored by the government – especially in its written form.

And this appears to be just the latest example of how Chinese people are turning to Cantonese – an irreverent tongue that offers rich possibilities for satire – to express discontent toward their government without attracting the notice of the all-seeing censors.

In nearby Cantonese-speaking Hong Kong, anti-government demonstrators in 2019 often used Cantonese wordplay both for protest slogans and to guard against potential surveillance by mainland Chinese authorities.

Now, Cantonese appears to be offering those fed-up with China’s strict zero-Covid policies an avenue for more subtle displays of dissent.

Jean-François Dupré, an assistant professor of political science at Université TÉLUQ who has studied the language politics of Hong Kong, said the Chinese government’s shrinking tolerance for public criticism has pushed its critics to “innovate” in their communication.

“It does seem that using non-Mandarin forms of communication could enable dissenters to evade online censorship, at least for some time,” Dupré said.

“This phenomenon testifies to the regime’s lack of confidence and increasing paranoia, and of citizens’ continuing eagerness to resist despite the risks and hurdles.”

Though Cantonese shares much of its vocabulary and writing system with Mandarin, many of its slang terms, expletives and everyday phrases have no Mandarin equivalent. Its written form also sometimes relies on rarely used and archaic characters, or ones that mean something totally different in Mandarin, so Cantonese sentences can be difficult for Mandarin readers to understand.

Compared to Mandarin, Cantonese is highly colloquial, often informal, and lends itself easily to wordplay – making it well-suited for inventing and slinging barbs.

When Hong Kong was rocked by anti-government protests in 2019 – fueled in part by fears Beijing was encroaching on the city’s autonomy, freedoms and culture – these attributes of Cantonese came into sharp focus.

“Cantonese was, of course, an important conveyor of political grievances during the 2019 protests,” Dupré said, adding that the language gave “a strong local flavor to the protests.”

He pointed to how entirely new written characters were born spontaneously from the pro-democracy movement – including one that combined the characters for “freedom” with a popular profanity.

Other plays on written characters illustrate the endless creativity of Cantonese, such as a stylized version of “Hong Kong” that, when read sideways, becomes “add oil” – a rallying cry in the protests.

Protesters also found ways to protect their communications, wary that online chat groups – where they organized rallies and railed against the authorities – were being monitored by mainland agents.

For example, because spoken Cantonese sounds different to spoken Mandarin, some people experimented with romanizing Cantonese – spelling out the sounds using the English alphabet – thereby making it virtually impossible to understand for a non-native speaker.

And, while the protests died down after the Chinese government imposed a sweeping national security law in 2020, Cantonese continues to offer the city’s residents an avenue for expressing their unique local identity – something people have long feared losing as the city is drawn further under Beijing’s grip.

For some, using Cantonese to criticize the government seems particularly fitting given the central government has aggressively pushed for Mandarin to be used nationwide in education and daily life – for instance, in television broadcasts and other media – often at the expense of regional languages and dialects.

These efforts turned into national controversy in 2010, when government officials suggested increasing Mandarin programming on the primarily-Cantonese Guangzhou Television channel – outraging residents, who took part in rare mass street rallies and scuffles with police.

It’s not just Cantonese affected – many ethnic minorities have voiced alarm that the decline of their native languages could spell an end to cultures and ways of life they say are already under threat.

In 2020, students and parents in Inner Mongolia staged mass school boycotts over a new policy that replaced the Mongolian language with Mandarin in elementary and middle schools.

Similar fears have long existed in Hong Kong – and grew in the 2010s as more Mandarin-speaking mainlanders began living and working in the city.

“Growing numbers of Mandarin-speaking schoolchildren have been enrolled in Hong Kong schools and been seen commuting between Shenzhen and Hong Kong on a daily basis,” Dupré said. “Through these encounters, the language shift that has been operating in Guangdong became quite visible to Hong Kong people.”

He added that these concerns were heightened by local government policies that emphasized the role of Mandarin, and referred to Cantonese as a “dialect” – infuriating some Hong Kongers who saw the term as a snub and argued it should be referred to as a “language” instead.

In the past decade, schools across Hong Kong have been encouraged by the government to switch to using Mandarin in Chinese lessons, while others have switched to teaching simplified characters – the written form preferred in the mainland – instead of the traditional characters used in Hong Kong.

There was further outrage in 2019 when the city’s education chief suggested that continued use of Cantonese over Mandarin in the city’s schools could mean Hong Kong would lose its competitive edge in the future.

“Given Hong Kong’s rapid economic and political integration, it wouldn’t be surprising to see Hong Kong’s language regime be brought in line with that of the mainland, especially where Mandarin promotion is concerned,” Dupré said.

It’s not the first time people in the mainland have found ways around the censors. Many use emojis to represent taboo phrases, English abbreviations that represent Mandarin phrases, and images like cartoons and digitally altered photos, which are harder for censors to monitor.

But these methods, by their very nature, have their limits. In contrast, for the fed-up residents of Guangzhou, Cantonese offers an endless linguistic landscape with which to lambast their leaders.

It’s not clear whether these more subversive uses of Cantonese will encourage greater solidarity between its speakers in Southern China – or whether it could encourage the central government to further clamp down on the use of local dialects, Dupré said.

For now though, many Weibo users have embraced the rare opportunity to voice frustration with China’s zero-Covid policy, which has battered the country’s economy, isolated it from the rest of the world, and disrupted people’s daily lives with the constant threat of lockdowns and unemployment.

“I hope everyone can maintain their anger,” wrote one Weibo user, noting how most of the posts relating to the Guangzhou lockdowns were in Cantonese.

“Watching Cantonese people scolding (authorities) on Weibo without getting caught,” another posted, using characters that signify laughter.

“Learn Cantonese well, and go across Weibo without fear.”

Read original article here

Hong Kong jails woman for insulting China’s national anthem during Olympic celebration


Hong Kong
CNN
 — 

A woman who waved a British colonial-era flag to celebrate Hong Kong claiming Olympic gold has become the first person in the city to be jailed on a charge of insulting the Chinese national anthem.

Paula Leung, a 42-year-old online journalist, admitted the charge and was given a three-month jail sentence on Thursday, Hong Kong’s public broadcaster RTHK reported.

Leung, who said in mitigation that she had autism and learning difficulties, had waved the flag in a shopping mall where a big screen was showing the medal ceremony following Edgar Cheung’s victory in the foil at the Tokyo Olympics in July 2021.

Large crowds had gathered to celebrate what was Hong Kong’s second ever Olympic gold medal and its first in fencing, but the scene turned rowdy when the Chinese national anthem was played for the award ceremony and some people began booing.

Hong Kong, a former British colony, continues to represent itself separately to mainland China at the Olympics despite having been handed over to Chinese sovereignty in 1997.

Cheung’s win was seen by many as a breakthrough for Hong Kong’s athletes and a rare moment of unity in a city that has been rocked in recent years by anti-government protests.

But the use of the Chinese national anthem – “March of the Volunteers” – to mark his victory was controversial as it was the first time the anthem had been used at an Olympics medal ceremony for a Hong Kong athlete. When windsurfer Lee Lai-shan took Hong Kong’s only other gold, at the 1996 Atlanta Olympics, “God Save The Queen” was played and the British colonial flag of Hong Kong was raised.

Pro-democracy protesters in the city have occasionally used symbols from the British colonial era to mark defiance against mainland China’s increasingly tight grip on the semi-autonomous city.

Protesters often waved the colonial era flag at the pro-democracy demonstrations that took place across the city in 2019, while some of the thousands of Hong Kongers who lined up outside the British consulate to pay their respects to Britain’s Queen Elizabeth II following her death in September saw their actions as a subtle form of protest.

Public gatherings have been rare since China imposed a national security law in June 2020 to extinguish the increasingly forceful pro-democracy protests.

That same month, Hong Kong’s local authorities brought in legislation that made insulting the Chinese national anthem an offence punishable by up to three years in jail and a maximum fine of $6,400 (HK$50,000).

The legislation requires people to “stand solemnly and deport themselves with dignity” when “March of the Volunteers” is played or sung.

Read original article here