Peg is 'solid anchor' for economy: Tsang

Hong Kong's currency peg to the US dollar is a "solid anchor" for the city's economic stability, Financial Secretary John Tsang said in a speech at a luncheon in Hong Kong Tuesday. The government has "no intention" to change the peg, Tsang said.

Property prices rebound on demand

The recent rebound of home prices in Hong Kong is based on "genuine demand", Financial Secretary John Tsang said at a luncheon in the city Tuesday.

Hong Kong imposed in November additional taxes on home sales to curb speculation in the market.

HKEx to replicate ICE merger model

Hong Kong Exchange and Clearing Ltd would love to replicate IntercontinentalExchange's model of buying up businesses in commodities futures space, its chairman said on Tuesday.

The world's most valuable exchange operator would also look to the Shanghai and Shenzhen stock exchanges for closer cooperation, but current regulations make such an arrangement unfeasible, HKEx Chairman Ronald Arculli said during the Reuters Future of Finance Summit.

Hong Kong Stock Exchange, with its $24 billion market capitalization and $5 billion war chest, has been seen as a possible buyer in any acquisition, although the company has previously said it does not have any targets currently.

Hang Seng to keep margin level

Hang Seng Bank Ltd Chief Executive Officer Margaret Leung said the lender aims to keep its net interest margin at the 2010 level by repricing assets and leveraging its balance sheet.

Leung was talking to reporters in Hong Kong Tuesday. She also said the lender's shift to using prime-linked rates for more mortgages won't reduce its market share.

The bank's mainland unit will focus on managing costs in 2011, Leung told reporters in Hong Kong Tuesday. Hang Seng has no plans to raise funds, she said.

Macao gambling revenue jumps 48%

Casino revenue in Macao jumped 47.7 percent in February to 19.86 billion patacas ($2.5 billion), the Macao government said on Tuesday, driven by a torrent of gamblers from the mainland to the world's largest gaming market.

Analysts remain bullish on the city's outlook, citing the low penetration of the mainland market and the rising affluence of China's burgeoning middle class.

Gary Pinge, regional head of gaming and consumer at Macquarie Securities in Hong Kong, said the figures were a surprise as over the past four years, February has generally been 5-10 percent weaker than in January, because of the timing of the lunar new year holiday.

City may need more property controls

Hong Kong may need to step up efforts to cool its real estate market as an influx of buyers from the mainland pushes prices higher, said Peter Wong, chief executive officer of HSBC Holdings Plc's Asian operations.

Mainland buyers may account for about 25 percent to 30 percent of demand for property in Hong Kong, Wong said, citing estimates from developers and real estate brokers. The purchases aren't restricted to luxury residences, with many buying homes in the New Territories close to the border with the mainland, he said.

S&P revises Shimao outlook to negative

Standard & Poor's Ratings Services said Tuesday that it had revised the rating outlook on mainland-based real estate developer Shimao Property Holdings Ltd to negative from stable.

Bloomberg - Reuters

(HK Edition 03/02/2011 page2)