Hillary Clinton Comes Begging to Hong Kong

A somewhat fatter then she used to be, Hillary Clinton (non elected) will be visiting Hong Kong around the end of the month. Residents should not really be alarmed at this as it is just for one day and then she`ll be gone.



The United States Secretary of State, Hillary Clinton is on her holiday an East Asian Tour which includes a visit to the Special Administrative Region.
It is thought that she will meet with some members of the Legislative Council(semi elected) and have a little chat about freedoms and democracy. On the other hand she will also meet with your Chief Executive, Donald Tsang (not elected).

To be real, most of her visit around the rim will be to try and install some confidence in the USA. Unless you have been on the same medications as Amy Winehouse then your know the USA is in a bad shape.

The cash flow of Government income is running dry much like the drought sweeping across the country. Asian investors hold a large stash of US Government bonds and with the approaching inability to service debts then there could be an unwillingness to buy more bonds. At worst it could see a massive selling spree of bonds as investors feel the toxicity.

It is not clear if Mrs Clinton stayed for afternoon teatime dim sum but she was soon across the border and in to China,. Mr Tsang danced for joy allegedly.

Hong Kongers Get Rent Free Accommodation

The Hong Kong Government is once again offering sweeteners to the local population. This time residents of Government Accommodation will have two rent free months.



While those in charge of the Special Administrative Region are increasing the Duty on Cigarettes and Tobacco to extortionate levels, the caring side seems to be giving it all back.

Just after the announcement of giving every resident a payment HK$6,000 into their bank accounts those in charge are on a roll with more gifts.

Tenants of The Governments Housing Authority will receive two free months rental in August and September this year.  According to the Government this is to counter effect the effects of inflation which has recently rocked around the world.
Just under 700,000 families will benefit from the rent allowance and will cost nearly HK$2 billion to the Government.

The Current Appointed Administration's term in power will soon be coming to an end next year in 2012. The more cynical group of Hong Kong residents will see these sweeteners to gain favor for the next elected appointed leader of the SAR.

Whatever the reasons behind the apparent generosity, local residents will gain a little to make their life a little bit more happier.

Hong Kong’s Floating Casinos

Hong Kong is a mirror image with is sister SAR, Macau. On the former Portuguese colony casinos have become abundant. Hong Kong on the other hand has shunned this practice on open gambling.

 

While not illegal in the territory, it is strictly controlled for the local population. The main player here is the Hong Kong Jockey Club (HKJC) which offers a little thrill for a win on horse racing and the recently introduced football games.

The HKJC also runs the Mark 6 Lottery which runs every week and can make millionaires out of anybody with a lucky winning ticket. Profits from these ventures are reintroduced into the community in the for of good causes along with the promoting of sporting activities.

Gamblers who want a bigger thrill must look offshore and many venture on the short ferry (or helicopter) trip over to Macau.

However there is one alternative and that is taking a cruise. Gambling ships or Floating Casinos regularly make trips from Hong Kong's Ocean Terminal in Tsim Sha Tsui to often no apparent destination. Cruise Liners depart laden with punters regularly who want to play the high roller while rolling about on the ocean waves. Once in international waters the liners open their tables and business can begin.

At one time the Floating Casinos seemed like they would sail their last trip but now business is booming. So much so that bookings must be made well in advance. The future also looks bright for rolling the dice.

The former Hong Hong airport, Kai Tak, is finally after many years being developed into a cruise liner terminal. Along with the many international voyages arriving and departing there should be a few more that will just take you on a trip to the tables.

Millionaires in Hong Kong On the Up

The Territory has seen large rise in the number of millionaires this year. A recent annual survey Citibank indicated that this year has seen the biggest jump since recording began 8 years ago.



Over half a million people now have liquid assets of over a million dollars. This is out of a population just under seven million.

The massive increase in wealth is put down to the ongoing property market and extortionate rents charged for tenants in both residential and business sectors.
Over the border in China things are looking good for a lucky few. The number there has doubled to 115 people with over a million billion dollars. China is currently sitting second after the USA in the league for billionaires. The continuing growth in China can only see this gap narrowing quickly in the years to come.

HK Government Electricity handout.

The Hong Kong Government is to credit residents with HK$150 of free electricity each  month. This will benefit 2.5 million homes in the territory.

Each residential home will gain a HK$150 credit on their electricity bills each month for a whole year. This will give a total of HK1800 over the course of the scheme. The benefit to low income families could see them pay no charges at-all.

Around 20% of homes in Hong Kong, on average, use less electricity than the 150 dollar credit. Any excess credit remaining each month can be carried forward and for some this will mean they will have free power from more than a year.


The last time the Government of Hong Kong offered such a scheme was in 2008 and I can tell you it was a nice little extra bonus not that we personally needed it.

A side effect of free electricity is that residents might just use more. That in turn would mean more power generation and more pollution which Hong Kong can do without. This air quality in some parts of the territory is a major cause of concern for health.

Even with the pollution aspect, the subsidy is a welcome bonus to those who need it the most. Others may just see it as a bonus paid to to the power companies.

There are two Hong Kong Power Companies, Hong Kong Electric and China Light and Power which supply the needs of Hong Kong mainly through Coal and Gas power stations.

Cost of Living in Hong Kong

Hong Kong is becoming an expensive place to live. While some can afford a million dollar home or two there are still many people who just manage to scrape a living.

A frequent site on the streets are old ladies gathering scraps of paper or soda cans to sell for a few Hong Kong Dollars. Others sell vegetables by corners of streets. Sell is not the right word here as it is illegal for money to exchange hands
without them being licensed. Shoppers can place a few coins down on a mat pick up the food and catch the eye of the elderly seller, deal done.

Those who are a little bit more well off are having to cope with the increasing cost of living. Having a home on Hong Kong island or Kowloon is just too expensive and have to live further afield in the New Territories or on on of Hong Kong's many islands. Even with Hong Kong being quite small there is still and hour or so commute back and forth to work.

The cost of transport is cheap but steadily rising and for those commuting every day those small rises can add up at the end of a month.


House prices are out of control and very few people can now afford to buy a home of any decent size. This turns most not on the housing ladder in to renters that are constantly on the move. There is a tendency for contracts to be for 1 or 2 years then followed by a sometimes massive rent rise. The unfortunate tenants often pack their bags and downgrade to sometime just bigger then a cupboard.

Not only are homes subject to larger rises in rent but also businesses. One unfortunate health club in "Central" was paying HK$1.8 million a month for rent. They have been notified of a rise to - HK$3 million. Often places you frequent for a drink or mean will just vanish from their location. There is no doubt prices are out of control and eventually something has to break.

Image Via Virtual China

Residents of Hong Kong are up for a Free $6,000

 
Every resident of Hong Kong will soon be able to collect a HK$6,000 payout that was promised during this years budget.
 

Everybody to Grab $6.000

When the payout was first proposed by the Financial Secretary, John Tsang, it was to come about as an injection into everybody's pension fund. The citizens realized they would not get their hands on any money until they retire and made for a few sad faces. A change of heart then came about to allow everybody to feel the cash between their fingers.

With the pension idea out of the window, each resident will now have a payment made to their bank accounts in phases. This is not the first time Hong Kong has operated on a system like this. When the Territory was introducing new electronic Identity cards where residents were processed in batches over some months according to their date of birth.

This time the lucky ones will be the elderly who can start applying in August and shortly after will have the bonus deposited in their bank accounts. Those of us a bit younger will have to wait longer.

Altogether around HK$36 Billion will be paid out to Identity card holders. Those who can decide to wait a bit longer to register which would reduce the workload in processing, can receive and extra HK$200 payment. The initial scheme is due to end in March 2012 which would give plenty of time for those who have somehow not heard of the news.

Hong Kong Government is Loaded

The pockets of the HK Government seem to be quite large. This year there is an estimated HK$ 72 Billion spare cash lying around gathering dust. Whatever will they do with it only time will tell.

There have been calls for returning it back to the people through widening the tax bands although this will just reduce the amount paid next year, not that the tax rates are excessive in Hong Kong Compared to some other countries. This is unlike the other SAR of China, Macau, which recently happily actually gave money back to every citizen.

No doubt there will be some big construction project planned but what could you do with HK$72 Billion spare. Apart from a good holiday and a long party.