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Business

Adani abandons $2.5 billion share sale in big blow to Indian tycoon

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NEW DELHI, Feb 1 (Reuters) – Gautam Adani’s flagship firm called off its $2.5 billion share sale in a dramatic reversal on Wednesday as a rout sparked by a U.S. short-seller’s criticisms wiped billions more off the value of the Indian tycoon’s stocks.

The withdrawal of the Adani Enterprises (ADEL.NS) share offering marks a stunning setback for Adani, the school dropout-turned-billionaire whose fortunes rose rapidly in recent years in line with stock values of his businesses.

“Today the market has been unprecedented, and our stock price has fluctuated over the course of the day. Given these extraordinary circumstances, the Company’s board felt that going ahead with the issue will not be morally correct,” Adani said.

“Our balance sheet is very healthy with strong cashflows and secure assets, and we have an impeccable track record of servicing our debt. This decision will not have any impact on our existing operations and future plans,” the billionaire added in a statement to Indian exchanges.

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Adani, whose global business interests span ports, airports, mining, cement and power, is battling to stabilise his companies and defend his reputation.

“Once the market stabilizes, we will review our capital market strategy,” he added.

A report by Hindenburg Research last week alleged improper use by the of offshore tax havens and stock manipulation by the Adani Group. It also raised concerns about high debt and the valuations of seven listed Adani companies.

The Jan. 24 report has since triggered a $86 billion erosion in market capitalisation of seven listed Adani Group companies.

Adani Group has denied the allegations, saying the short-seller’s allegation of stock manipulation has “no basis” and stems from an ignorance of Indian law. The group has always made the necessary regulatory disclosures, it added.

REFUNDS

Adani Group was working with its bankers to refund the proceeds received by in the secondary share sale of Adani Enterprises. Anchor investors who had supported the issue included Maybank Securities and Abu Dhabi Investment Authority.

The company aims to protect the interests of its investing community by returning the proceeds, it said.

Adani Group had on Tuesday mustered enough support from investors for the share sale to proceed, in what some saw as a stamp of investor confidence amid the storm.

But after a brief respite, the selloff in Adani Group stocks and bonds resumed on Wednesday, with shares in Adani Enterprises plunging 28% and Adani Ports and Special Economic Zone (APSE.NS) dropping 19%, the worst day on record for both.

The fundraising was critical for Adani, not just because it would have helped cut his group’s debt, but also because it was being seen by some as a gauge of confidence as he faced the biggest business and reputational challenge of his career.

Wednesday’s stock losses saw Adani slip to 15th on the Forbes rich list with an estimated net worth of $75.1 billion, below rival Mukesh Ambani, the chairman of Reliance Industries (RELI.NS) who ranks ninth with a net worth of $83.7 billion.

The share sale had succeeded on Tuesday even when the Adani Enterprises stock price in Mumbai markets traded below the offer price of the share sale.

“I do not know how the markets will behave in short term. But this is a measure to enhance (Adani’s) reputation since the investors were staring at a 30% loss even before the shares were alloted,” said Rajesh Baheti, chief executive, Crossseas Capital Services, an algo trading firm.

Reporting by Aditya Kalra and Jahnavi Nidumolu in Bengaluru; Editing by Anil D’Silva, Kirsten Donovan and Alexander Smith

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Adani hits back at Hindenburg, says it made all disclosures

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  • Adani issues 413-page rebuttal to Hindenburg report
  • U.S. short-seller’s report sparked falls in Adani shares
  • Adani says complies with laws, necessary disclosures
  • Adani CFO confident $2.5 bln share sale will succeed

NEW DELHI, Jan 30 (Reuters) – India’s Adani Group issued a detailed riposte on Sunday to a Hindenburg Research report that sparked a $48 billion rout in its stocks, saying it complies with all local laws and had made the necessary regulatory disclosures.

The conglomerate led by Asia’s richest man, the Indian billionaire Gautam Adani, said last week’s Hindenburg report was intended to enable the U.S.-based short seller to book gains, without citing evidence.

For 60-year-old Adani, the stock market meltdown has been a dramatic setback for a school-dropout who rose swiftly in recent years to become the world’s third richest man, before slipping last week to rank seventh on the Forbes rich list.

Adani Group’s response comes as its flagship company, Adani Enterprises (ADEL.NS), pushes ahead with a $2.5 billion share sale. This has been overshadowed by Hindenburg’s report, which flagged concerns about debt levels and the use of tax havens.

“All transactions entered into by us with entities who qualify as ‘related parties’ under Indian laws and accounting standards have been duly disclosed by us,” Adani said in the 413-page response issued late on Sunday.

“This is rife with conflict of interest and intended only to create a false market in securities to enable Hindenburg, an admitted short seller, to book massive financial gain through wrongful means at the cost of countless investors,” it added.

Hindenburg did not immediately respond to a request for comment on the Adani response on Sunday.

Its report had questioned how the Adani Group has used offshore entities in tax havens such as Mauritius and the Caribbean islands, adding that certain offshore funds and shell companies “surreptitiously” own stock in Adani’s listed firms.

The research report, Adani said, made “misleading claims around offshore entities” without any evidence whatsoever.

Adani said on Thursday that it is considering taking action against Hindenburg, which responded on the same day by saying it would welcome such a move.

Hindenburg’s report also said five of seven key listed Adani companies have reported current ratios, a measure of liquid assets minus near-term liabilities, of below 1 which it said suggested “a heightened short-term liquidity risk”.

It said key listed Adani companies had “substantial debt” which has put the entire group on a “precarious financial footing” and that shares in seven Adani listed companies have an 85% downside due to what it called “sky-high valuations”.

Adani’s response stated that over the past decade, its group companies have “consistently de-levered”.

Defending its practice on pledging shares of its promoters – or key shareholders – the Adani Group said that raising financing against shares as collateral was common practice globally and loans are given by large institutions and banks on the back of thorough credit analysis.

The group added there is a robust disclosure system in place in India and its promoter pledge positions across portfolio companies had dropped from more than 50% in March 2020 in some listed stocks, to less than 20% in December 2022.

‘SAIL THROUGH’

The Hindenburg report, and its fallout, is seen as one of the biggest career challenges to face the billionaire, whose business interests range from ports, airports, mining and power to media and cement.

Adani’s response included more than 350 pages of annexes that included snippets from annual reports, public disclosures and earlier court rulings.

Hindenburg, Adani said, had sought answers to 88 questions in its report, but 65 of them were related to matters that have been disclosed by Adani portfolio companies in annual reports.

The rest, Adani said, relate to public shareholders and third parties, and some were “baseless allegations based on imaginary fact patterns”.

Hindenburg, known for having shorted electric truck maker Nikola Corp (NKLA.O) and Twitter, said it holds short positions in Adani companies through U.S.-traded bonds and non-Indian-traded derivative instruments.

Adani also responded to allegations by Hindenburg relating to the company’s auditors, saying “all these auditors who have been engaged by us have been duly certified and qualified by the relevant statutory bodies.”

Its response comes just hours ahead of India market opening, when the $2.5 billion secondary share sale begins its second day of subscription. Friday’s plunge took Adani Enterprises shares below the issue price, raising doubts about its success.

In a separate statement on Sunday, Adani Group’s chief financial officer Jugeshinder Singh said it is focused on the share sale and is confident it will succeed. He also said its anchor investors have shown faith and remain invested.

“We are confident the FPO (follow-on public offering) will also sail through,” he said.

Reporting by Aditya Kalra, Aditi Shah, Jayshree Upadhyay and Anirudh Saligrama in Bengaluru; Editing by Kevin Liffey and Alexander Smith

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Business

India’s Adani begins record share sale as short seller triggers $44 billion rout

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MUMBAI, Jan 27 (Reuters) – Shares of India’s Adani Enterprises (ADEL.NS) sank 15% on Friday as a scathing report by a U.S. short seller triggered a rout in the conglomerate’s listed firms, casting doubts on how investors will respond to the company’s record $2.45 billion secondary sale.

Seven listed companies of the Adani conglomerate – controlled by one of the world’s richest men Gautam Adani – have lost a combined $43.5 billion in market capitalisation since Wednesday, with U.S. bonds of Adani firms also falling after Hindenburg Research flagged concerns in a Jan. 24 report about debt levels and the use of tax havens.

Adani Group has dismissed the report as baseless and said it is considering whether to take legal action against the New York-based firm.

“There were heavy positions in Adani group (shares), the way they have risen in the last couple of years,” said Neeraj Dewan, director at Quantum Securities in New Delhi.

“This is a classic case of panic selling…,” he said, noting the concerns were also spreading to Indian banks with exposure to Adani group’s debt.

The index tracking state-run banks (.NIFTYPSU) was down 4.6%, while the main Nifty Bank index (.NSEBANK) fell 2.7%.

CLSA estimates that Indian banks were exposed to about 40% of the 2 trillion Indian rupees ($24.53 billion) of Adani group debt in the fiscal year to March 2022.

The stunning selloff has cast a shadow over Adani Enterprises’ secondary sale which began on Friday. The anchor portion of the sale saw participation from investors including the Abu Dhabi Investment Authority on Wednesday.

The firm has set a floor price of 3,112 rupees ($38.22) a share and a cap of 3,276 rupees. But by midday on Friday, the stock had slumped to 2,875 rupees – well below the lower end of the price offering.

As of 0700 GMT, investors, mostly retail, had bid for around 200,000 shares, compared with the 45.5 million on offer, according to BSE exchange data. Bidding for retail investors will close on Jan. 31.

Shares of other listed Adani firms also plummetted, with Adani Transmission Ltd (ADAI.NS) Adani Total Gas (ADAG.NS), Adani Green Energy (ADNA.NS) and Adani Ports (APSE.NS) sinking 20% each.

In its report, Hindenburg said key listed Adani Group companies had “substantial debt”, putting the conglomerate on a “precarious financial footing”, and that “sky-high valuations” had pushed the share prices of seven listed Adani companies as much as 85% beyond actual value.

Billionaire U.S. investor Bill Ackman said on Thursday that he found the Hindenburg report “highly credible and extremely well researched.”

Hindenburg said it held short positions in Adani through its U.S.-traded bonds and non-Indian-traded derivative instruments, meaning it is betting that their price would fall.

Adani Group has repeatedly faced and dismissed concern about debt levels. It defended itself in a presentation titled “Myths of Short Seller” on Thursday, saying deleveraging by promoters – or key shareholders – was “in a high growth phase”.

Jefferies in a client note said Adani Group had shared details of debt and leverage levels, and that it does not “see material risk arising to the Indian banking sector”.

Adani Group’s consolidated gross debt stood at 1.9 trillion rupees ($23.34 billion), Jefferies said.

Adani has said its debt is at a manageable level and that no investor has raised any concern.

Adani Enterprises’ net profit for the period ended Sept. 30, 2022 doubled to 9 billion Indian rupees ($110.31 million) while its total income nearly tripled to 795 billion Indian rupees, according to its share sale prospectus.

The company’s total liabilities as of September 2022 stood at 869 billion rupees ($10.64 billion), the prospectus showed.

The Adani conglomerate has been diversifying its business interests and last year bought cement firms ACC (ACC.NS) and Ambuja Cements (ABUJ.NS) from Switzerland’s Holcim (HOLN.S) for $10.5 billion. ACC was down 15% on Friday, while Ambuja plunged up to 25%.

Reporting by M. Sriram and Chris Thomas; Editing by Aditya Kalra, Christopher Cushing and Kim Coghill

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Business

Elon Musk’s team seeks new funding for Twitter – investor

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Dec 16 (Reuters) – Elon Musk’s team has reached out to investors to raise new funds for his struggling social media platform Twitter, one of the investors said.

Ross Gerber, president and CEO at Gerber Kawasaki Wealth & Investment Management, told Reuters that he was contacted by a Musk representative about offering more shares at the same price, $54.20, that Musk paid to take the company private in October.

Jared Birchall, the managing director of Elon Musk’s family office reached out to potential investors this week, news platform Semafor reported on Friday, citing two people familiar with the fundraising effort.

Twitter and Musk did not respond to Reuters requests for comments.

Twitter has seen advertisers flee amid worries about Musk’s approach to policing tweets, hitting revenues and its ability to pay interest on the $13 billion debt that Musk took on to buy the social media company.

Musk sold another $3.6 billion worth of shares in Tesla earlier this week, making it nearly $40 billion worth of shares in the electric-vehicle company sold this year.

Tesla shares on Friday posted their worst weekly loss since March 2020, with investors increasingly concerned about Musk being distracted by Twitter and the slowing global economy.

Reporting by Hyunjoo Jin in San Francisco, Priyamvada C in Bengaluru; Editing by Shounak Dasgupta and Michael Perry

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World

Lula narrowly defeats Bolsonaro to win Brazil presidency again

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SAO PAULO, Oct 30 (Reuters) – Luiz Inacio Lula da Silva narrowly defeated President Jair Bolsonaro in a runoff election on Sunday that marked a stunning comeback for the leftist former president and the end of Brazil’s most right-wing government in decades.

Brazil’s Supreme Electoral Court declared Lula the next president, with 50.9% of votes versus 49.1% for Bolsonaro. The 77-year-old Lula’s inauguration is scheduled for Jan. 1.

The vote was a rebuke for the fiery far-right populism of Bolsonaro, who emerged from the back benches of Congress to forge a novel conservative coalition but lost support as Brazil ran up one of the worst death tolls of the coronavirus pandemic.

Bolsonaro remained silent on Sunday night after the results were announced and some of his allies publicly acknowledged his defeat, defying expectations that he might immediately challenge the narrow result after making baseless claims of fraud in previous elections.

Bolsonaro did not make a call to Lula, according to campaign advisers.

Lula said in a speech he would unite a divided country and ensure that Brazilians “put down arms that never should have been taken up,” while inviting international cooperation to preserve the Amazon rainforest and make global trade more fair.

“I will govern for 215 million Brazilians, and not just for those who voted for me,” Lula said at his campaign headquarters. “There are not two Brazils. We are one country, one people, one great nation.”

Lula arrived at a rally in Sao Paulo shortly after 8:00 p.m. (1100 GMT), waving from the sunroof of a car. Ecstatic supporters near Paulista Avenue waited for him, chanting slogans and drinking champagne.

Vice President-elect Geraldo Alckmin and campaign aides jumped up and down chanting, “It’s time Jair, it’s time to leave already,” in a video circulating on social media.

OPPOSITION

Last year, Bolsonaro, 67, openly discussed refusing to accept the results of the vote.

[1/16] Brazil’s former President and presidential candidate Luiz Inacio Lula da Silva speaks at an election night gathering on the day of the Brazilian presidential election run-off, in Sao Paulo, Brazil October 30, 2022. REUTERS/Carla Carniel

A senior Bolsonaro campaign aide, speaking on condition of anonymity, said he would not make a speech on Sunday. The Bolsonaro campaign did not respond to a request for comment.

One close Bolsonaro ally, lawmaker Carla Zambelli, in an apparent nod to Lula’s victory wrote on Twitter, “I PROMISE you, I will be the greatest opposition that Lula has ever imagined.”

Electoral authorities are bracing for him to dispute the outcome, sources told Reuters, and made security preparations in case his supporters stage protests.

U.S. President Joe Biden congratulated Lula for winning “free, fair and credible elections,” joining a chorus of compliments from European and Latin American leaders.

His victory consolidates a new “pink tide” in Latin America, after landmark leftist victories in Colombia and Chile’s elections, echoing a regional political shift two decades ago that introduced Lula to the world stage.

Lula has vowed a return to state-driven economic growth and social policies that helped lift millions out of poverty when he was previously president from 2003 to 2010. He also promises to combat destruction of the Amazon rainforest, now at a 15-year high, and make Brazil a leader in global climate talks.

“These were four years of hatred, of negation of science,” Ana Valeria Doria, 60, a doctor in Rio de Janeiro who celebrated with a drink. “It won’t be easy for Lula to manage the division in this country. But for now it’s pure happiness.”

A former union leader born into poverty, Lula organized strikes against Brazil’s military government in the 1970s. His two-term presidency was marked by a commodity-driven economic boom and he left office with record popularity.

However, his Workers Party was later tarred by a deep recession and a record-breaking corruption scandal that jailed him for 19 months on bribery convictions, which were overturned by the Supreme Court last year.

In his third term, Lula will confront a sluggish economy, tighter budget constraints and a more hostile legislature.

Bolsonaro’s allies form the largest bloc in Congress after this month’s general election and won the races for governor in Brazil’s three most economically powerful states, highlighting the enduring strength of his conservative coalition.

Reporting by Brian Ellsworth and Lisandra Paraguassu in Sao Paulo, Anthony Boadle and Ricardo Brito in Brasilia, Gabriel Stargardter in Rio de Janeiro; Editing by Brad Haynes and Grant McCool

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Bed Bath & Beyond to cut jobs, close stores in bid to reverse losses

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Aug 31 (Reuters) – Bed Bath & Beyond Inc (BBBY.O) on Wednesday said it inked deals for more than $500 million in new financing and that it would close 150 stores, cut jobs and overhaul its merchandising strategy in an attempt to turn around its money-losing business.

Investors, however, remain concerned that the retailer’s plan, announced in a strategic update, will do little to improve Bed Bath & Beyond’s business as shares fell 25%. The retailer also announced a plan to raise money by issuing new shares.

The big-box chain – once considered a so-called “category killer” in home and bath goods – has seen its fortunes falter after an attempt to sell more of its own brand, or private label, goods. The COVID-19 pandemic, supply chain crunch and consumer pullback on shopping due to sky-high inflation also hit the chain’s sales.

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Bed Bath & Beyond forecast a bigger-than-expected 26% slump in same-store sales for the second quarter and said it would retain its buybuy Baby business, which it had put up for sale.

The efforts to sell buybuy Baby had been encouraged by GameStop Corp (GME.N) Chairman Ryan Cohen, the company’s biggest investor until this month when he sold out of his 9.8% stake, sending shares plummeting.

Once known for providing many shoppers with 20%-off coupons, Bed Bath & Beyond revamped its merchandise in recent years to focus on private-label products including its Our Table brand cookware. read more

The chain is now ditching that strategy, nixing three of its private label brands, and reprioritizing national brands with labels including Calphalon, Ugg, Dyson and Cuisinart underpinning that strategy, executives said on a conference call.

Executives said Bed Bath & Beyond is cutting about 20% of its corporate and supply chain workforce, and eliminating its chief operating officer and chief stores officer roles. The company has about 32,000 employees.

Top brass tried to reassure analysts that vendors were still supporting the company, a key indication of its long-term financial prospects. Suppliers will ask for more money up front or stop shipping goods if they believe retailers can no longer pay them.

Signage is seen at a Bed Bath & Beyond store in Manhattan, New York City, U.S., June 29, 2022. REUTERS/Andrew Kelly/File Photo

“As we have managed through our cash burn, we have seen changes in vendors we manage,” said Chief Financial Officer Gustavo Arnal, adding that the company is managing the situation “one by one.”

First-quarter sales plunged 25% and it lost $358 million, leading to the firing of its Chief Executive Officer Mark Tritton in June. The company hired Sue Gove, an independent board director, to replace him on an interim basis.

On Wednesday, Gove said the retailer was “continuing to see significant positive momentum” and intended to build its “deep heritage as a retailer.”

“While there is much work ahead, our road map is clear and we’re confident that the significant changes we’ve announced today will have a positive impact on our performance'” she said on a conference call.

The retailer also said it expanded an existing loan and received a new $375 million “first-in-last-out” loan, and would launch a stock offering of up to 12 million shares.

Arnal said that 50 to 60 stores will be closed in a “first wave” heading into the balance of Bed Bath & Beyond’s fiscal year, which ends in February. The company has about 900 stores.

“They are running out of cash and desperately need to raise cash just to keep the business going,” said Jim Dixon, equity sales trader at Mirabaud.

To improve its finances, the retailer said it would cut back on selling, general and administrative expenses by $250 million this year versus last year and rein in capital spending.

The company also estimates that comparable-store sales will drop 20% this year as it works through its transformation.

“We are broadly satisfied that the measures announced today … will ease the pressure on the company, allowing it to continue trading,” said Neil Saunders, GlobalData’s managing director.

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Reporting by Uday Sampath and Deborah Sophia and Bansari Kamdar in Bengaluru; Additional reporting by Siddharth Cavale, Jessica DiNapoli and Arriana Mclymore in New York;
Editing by Arun Koyyur and Jonathan Oatis

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World

Singapore will decriminalize sex between men, prime minister says

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  • Under existing law men face up to 2 years jail for gay sex
  • Law has not been actively enforced for decades
  • PM Lee says Singapore society is ready for this change
  • Reaffirms support for traditional definition of marriage

SINGAPORE, Aug 21 (Reuters) – Singapore will decriminalise sex between men but has no plans to change the legal definition of marriage as being between a man and a woman, Prime Minister Lee Hsien Loong said on Sunday.

LGBTQ groups welcomed Lee’s decision to repeal Section 377A of the penal code, a colonial-era law that criminalises sex between men, but also expressed concern that ruling out same-sex marriage would help to perpetuate discrimination.

In his annual national day rally speech, Lee said Singaporean society, especially young people in the city-state, were becoming more accepting of gay people.

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“I believe this is the right thing to do, and something that most Singaporeans will now accept,” he said.

It was unclear when exactly Section 377A would be repealed.

Singapore becomes the latest Asian country to move toward ending discrimination against members of the LGBTQ community.

In 2018, India’s highest court scrapped a colonial-era ban on gay sex, while Thailand has recently edged closer to legalising same-sex unions.

Under Singapore’s Section 377A, offenders can be jailed for up to two years under the law, but it is not currently actively enforced. There have been no known convictions for sex between consenting adult males for decades and the law does not include sex between women or other genders.

Lesbian, gay, bisexual, transgender, and queer (LGBTQ) groups have brought multiple legal challenges attempting to strike down the law, but none has succeeded.

On Sunday, several LGBTQ rights groups said in a joint statement they were “relieved” by Lee’s announcement.

A couple attends Pink Dot, an annual event organised in support of the LGBT community at the Speakers’ Corner in Hong Lim Park in Singapore, June 29, 2019. REUTERS/Feline Lim/File Photo

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“For everyone who has experienced the kinds of bullying, rejection and harassment enabled by this law, repeal finally enables us to begin the process of healing. For those that long for a more equal and inclusive Singapore, repeal signifies that change is indeed possible,” they said in the statement.

But the groups also urged the government not to heed calls from religious conservatives to enshrine the definition of marriage in the constitution, saying this would signal that LGBTQ+ citizens were not equal.

RESISTANCE

In February, Singapore’s highest court had ruled that since the law was not being enforced, it did not breach constitutional rights, as the plaintiffs had argued, and it reaffirmed that the law could not be used to prosecute men for having gay sex.

Some religious groups including Muslims, Catholics and some Protestants continued to resist any repeal of the law, Lee said.

An alliance of more than 80 churches expressed strong disappointment on Sunday over the government’s decision.

“The repeal is an extremely regrettable decision which will have a profound impact on the culture that our children and future generations of Singaporeans will live in,” it said.

Singapore is a multi-racial and multi-religious society of 5.5 million, of whom about 16% are Muslim, with bigger Buddhist and Christian communities. It has a predominantly ethnic Chinese population with sizeable Malay and Indian minorities, according to the 2020 census.

Stressing his government’s continued support for the traditional definition of marriage, Lee said: “We believe that marriage should be between a man and a woman, that children should be raised within such families, that the traditional family should form the basic building block of society.”

Singapore will “protect the definition of marriage from being challenged constitutionally in the courts”, he said. “This will help us repeal Section 377A in a controlled and carefully considered way.”

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Reporting by Chen Lin, editing by Kanupriya Kapoor and Gareth Jones

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World

UK judges resign from Hong Kong court over China’s crackdown on dissent

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A general view shows insids the Court of Final Appeal (CFA) at Central, in Hong Kong, China September 18, 2015. REUTERS/Tyrone Siu

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LONDON/HONG KONG, March 30 (Reuters) – Two senior British judges, including the president of the UK Supreme Court, resigned from Hong Kong’s highest court on Wednesday because of a sweeping national security law imposed by China cracking down on dissent in the former British colony.

Robert Reed, who heads Britain’s top judicial body, said that he and colleague Patrick Hodge would relinquish their roles with immediate effect as non-permanent judges on the Hong Kong Court of Final Appeal (CFA).

“I have concluded, in agreement with the government, that the judges of the Supreme Court cannot continue to sit in Hong Kong without appearing to endorse an administration which has departed from values of political freedom, and freedom of expression,” Reed said in a statement.

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Britain, which handed Hong Kong back to China in 1997, has said the security law that punishes offences like subversion with up to life imprisonment has been used to curb dissent and freedoms. London also says the law is a breach of the 1984 Sino-British Joint Declaration that paved the way for the handover.

Many of the city’s democratic campaigners have been arrested, detained or forced into exile, civil society groups shuttered and liberal media outlets forced to close under a security crackdown since the law was enacted in June 2020.

Beijing says the law has brought stability to Hong Kong, rocked by months of sometimes violent anti-government street protests in 2019, and that it includes human rights safeguards.

Hong Kong leader Carrie Lam expressed “regret and disappointment” over the move.

Lam said in a statement that foreign judges had made a valuable contribution to Hong Kong for 25 years but “we must vehemently refute any unfounded allegations that the judges’ resignations have anything to do with…the national security law”.

Hong Kong Chief Justice Andrew Cheung said in a statement that he noted with “regret” the resignations of Reed and Hodge, saying the judiciary was committed to the rule of law.

PRESSURE ON OTHER FOREIGN JUDGES

British Foreign Secretary Liz Truss said Hong Kong had witnessed “a systematic erosion of liberty and democracy”.

“The situation has reached a tipping point where it is no longer tenable for British judges to sit on Hong Kong’s leading court, and (this) would risk legitimising oppression,” she added.

Truss this month criticised Hong Kong authorities for accusing a British-based human rights groups of colluding with foreign forces in a “likely” violation of the security law. read more

In a report on Hong Kong last December, she said that while judicial independence was increasingly finely balanced, she believed British judges could still “play a positive role in supporting this judicial independence”.

The presence of foreign judges in Hong Kong is enshrined in the Basic Law, the mini-constitution that guarantees the global financial hub’s freedoms and extensive autonomy under Chinese rule, including the continuation of Hong Kong’s common law traditions forged during the colonial era.

Reed has previously said he would not serve on the HKCFA in the event the judiciary in the city was undermined.

Local lawyers said the resignations would likely put pressure on the 10 other foreign Court of Final Appeal judges to quit. Six of these are British.

Those judges, also from Canada and Australia, are mostly retired senior jurists in their home countries, unlike Reed and Hodge, who were still serving.

Two other foreign judges, Britain’s Brenda Hale and Australia’s James Spigelman, have also stepped down from the city’s highest court since 2020.

“It is a big blow to the local fraternity and the grand tradition of Hong Kong’s rule of law,” one veteran barrister told Reuters. “For all the pressures ahead, we really needed them and I fear what comes next.”

In a statement on Wednesday, Hong Kong Law Society president Chan Chak Ming urged Reed and Hodge to reconsider their moves, expressing “deep regret” and saying that the decision “disappointingly falls short” of the support among the public and legal community for the continued role of overseas judges.

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Reporting by Michael Holden and William James in London and Greg Torode and James Pomfret in Hong Kong; Editing by Kate Holton, Barbara Lewis, John Stonestreet and Nick Macfie

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World

Hong Kong university dismantles, removes Tiananmen statue

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HONG KONG, Dec 23 (Reuters) – A leading Hong Kong university has dismantled and removed a statue from its campus site that for more than two decades has commemorated pro-democracy protesters killed during China’s Tiananmen Square crackdown in 1989.

The artwork, of anguished human torsos, is one of the few remaining public memorials in the former British colony to remember the bloody crackdown that is a taboo topic in mainland China, where it cannot be publicly commemorated.

Known as the “Pillar of Shame,” the statue was a key symbol of the wide-ranging freedoms promised to Hong Kong at its 1997 return to Chinese rule, which differentiated the global financial hub from the rest of China.

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The city has traditionally held the largest annual vigils in the world to commemorate the Tiananmen Square crackdown.

The Council of the University of Hong Kong (HKU) said in an early Thursday statement it made the decision to remove the statue during a Wednesday meeting, “based on external legal advice and risk assessment for the best interest of the University”.

“The HKU Council has requested that the statue be put in storage, and that the University should continue to seek legal advice on any appropriate follow up action,” it said.

Late on Wednesday night, security guards placed yellow barricades around the eight-metre (26-foot) high, two-tonne copper sculpture.

Two Reuters journalists saw scores of workmen in yellow hard hats enter the statue site, which had been draped on all sides by white plastic sheeting and was being guarded by dozens of security personnel.

Loud noises from power tools and chains emanated from the closed off area for several hours before workmen were seen carrying out the top half of the statue and winching it up on a crane towards a waiting shipping container.

A truck later drove the container away early on Thursday. The site of the statue was covered in white plastic sheets and surrounded by yellow barricades. University staff later placed pots of Poinsettia flowers, a popular Christmas decoration in Hong Kong, around the barricades.

‘MEMORIES WRITTEN WITH BLOOD’

Several months ago, the university had sent a legal letter to the custodians of the statue, a group which organised the annual June 4 vigils and has since disbanded amid a national security investigation, asking for its removal.

A June 4 museum was raided by police during the investigation and shut, and its online version cannot be accessed in Hong Kong. read more

The eight-metre-high “Pillar of Shame” by Danish sculptor Jens Galschiot to pay tribute to the victims of the Tiananmen Square crackdown in Beijing on June 4, 1989 is seen before it is set to be removed at the University of Hong Kong (HKU) in Hong Kong, China October 12, 2021. REUTERS/Tyrone Siu/Files

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Danish sculptor Jens Galschiot, who created the statue, said in a statement he was “totally shocked” and that he would “claim compensation for any damage” to his private property.

Galschiot, who values the statue at around $1.4 million, had offered to take it back to Denmark, but said his presence in Hong Kong was necessary for the complex operation to go well and asked for reassurances he would not be prosecuted. read more

HKU said in its statement that no party had ever obtained approval to display the statue on its campus and that it had the right to take “appropriate actions” any time. It also called the statue “fragile” and said it posed “potential safety issues.”

Tiananmen survivor Wang Dan, who now lives in the United States, condemned the removal in a Facebook post as “an attempt to wipe off history and memories written with blood.”

The campus was quiet early on Thursday, with students on holiday. Some students dropped by the campus overnight after hearing the news.

“The university is a coward to do this at midnight,” said 19-year-old student surnamed Chan. “I feel very disappointed as it’s a symbol of history.”

Another student surnamed Leung said he was “heart-broken” to see the statue “being cut into pieces”.

TIANANMEN ERASED

The removal of the statue is the latest step targeting people or organisations affiliated with the sensitive June 4, 1989, date and events to mark it.

Authorities have been clamping down in Hong Kong under a China-imposed national security law that human rights activists say is being used to suppress civil society, jail democracy campaigners and curb basic freedoms.

Authorities say the law has restored order and stability after massive street protests in 2019. They insist freedom of speech and other rights remain intact and that prosecutions are not political.

China has never provided a full account of the 1989 Tiananmen Square crackdown. Officials gave a death toll of about 300, but rights groups and witnesses say thousands may have been killed.

“What the Communist Party wants is for all of us to just forget about this (Tiananmen). It’s very unfortunate,” John Burns, a political scientist at the university for over 40 years who had called for the statue to remain, told Reuters.

“They would like it globally to be forgotten.”

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Additional reporting by Sara Cheng, Alun John, Eduardo Baptista and Marius Zaharia; Writing by James Pomfret and Marius Zaharia; Editing by Sonya Hepinstall and Michael Perry

Our Standards: The Thomson Reuters Trust Principles.

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World

S.Korea to grant legal status to animals to tackle abuse, abandonment

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SEOUL, Aug 19 (Reuters) – Jin-hui, a cream-coloured Pomeranian, was buried alive and left for dead in 2018 in the South Korean port city of Busan.

No charges were filed against its owner at the time, but animal abusers and those who abandon pets will soon face harsher punishment as South Korea plans to amend its civil code to grant animals legal status, Choung Jae-min, the justice ministry’s director-general of legal counsel, told Reuters in an interview.

The amendment, which must still be approved by parliament, likely during its next regular session in September, would make South Korea one of a handful of countries to recognise animals as beings, with a right to protection, enhanced welfare and respect for life.

The push for the amendment comes as the number of animal abuse cases increased to 914 in 2019 from 69 in 2010, data published by a lawmaker’s office showed, and the pet-owning population grew to more than 10 million people in the country of 52 million.

South Korea’s animal protection law states that anyone who abuses or is cruel to animals may be sentenced to a maximum of three years in prison or fined 30 million won ($25,494), but the standards to decide penalties have been low as the animals are treated as objects under the current legal system, Choung said.

Once the Civil Act declares animals are no longer simply things, judges and prosecutors will have more options when determining sentences, he said.

The proposal has met with scepticism from the Korea Pet Industry Retail Association, which pointed out there are already laws in place to protect animals.

“The revision will only call for means to regulate the industry by making it difficult to adopt pets, which will impact greatly not only the industry, but the society as a whole,” said the association’s director general, Kim Kyoung-seo.

Kim Gea-yeung, manager of an animal shelter for abandoned dogs and cats, holds Jin-hui, a five-year-old Pomeranian dog, who was rescued from under the ground, in Anseong, South Korea, August 11, 2021. REUTERS/Minwoo Park

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Choung said the amended civil code will also pave the way for follow-up efforts such as life insurance packages for animals and the obligation to rescue and report roadkill.

It is likely the amendment will be passed, said lawmaker Park Hong-keun, who heads the animal welfare parliamentary forum, as there is widespread social consensus that animals should be protected and respected as living beings that coexist in harmony with people.

Animal rights groups welcomed the justice ministry’s plan, while calling for stricter penalties for those who abandon or torture animals, as well as a ban on dog meat.

“Abuse, abandonment, and neglect for pets have not improved in our society,” said Cheon Chin-kyung, head of Korea Animal Rights Advocates.

Despite a slight drop last year, animal abandonment has risen to 130,401 in 2020 from 89,732 cases in 2016, the Animal and Plant Quarantine Agency said. South Korea has an estimated 6 million pet dogs and 2.6 million cats.

Solemn with large, sad eyes, Jin-hui, which means “true light” in Korean, now enjoys spending time with other dogs at an animal shelter south of Seoul.

“Its owner lost his temper and told his kids to bury it alive. We barely managed to save it after a call, but the owner wasn’t punished as the dog was recognised as an object owned by him,” said Kim Gea-yeung, 55, manager of the shelter.

“Animals are certainly not objects.”

($1 = 1,176.76 won)

Reporting by Sangmi Cha, Minwoo Park, Daewoung Kim; Editing by Karishma Singh

Our Standards: The Thomson Reuters Trust Principles.

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