HK Electric Utilities shaken up

The HK government is having second thoughts about allowing the local utilities to get 9.9% ROA from 2008 to 2018 (previously 13.5%). Faced with the usual outcry when the power companies propose rate rises, they conveniently blame the power companies, however it appears the government will move towards changing the Scheme of Control which explains the current weakness in Power Assets (0006) price.

Eudrey Eu (Legislative Councillor, HK Island geographic constituency) has produced this...

"

Creating a sustainable and open electricity market

Hon Audrey EU to move the following motion:

(Translation)

That, given that the Government's signing of the 10-year Scheme of Control Agreements ('SCAs') with the two power companies in 2008 has extended the monopolization of the electricity market by the two power companies and sowed the seed of misfortune that the two power companies can persistently and significantly increase tariffs to 'maximize profits' regardless of public sentiments, for the well-being of the public, this Council urges the Government to:



(a)	require the two power companies to exhaust all room for tariff reduction, so as to lower the rates of tariff increase this year to the lowest levels;
(b)	immediately activate the mechanism for interim reviews, and make public the relevant information and accounts, so as to facilitate public participation;
(c)	launch a review of the two power companies' development plans in accordance with the provisions of SCAs, increase the transparency of the development plans, and require the two power companies to revise their investment plans, revalue their assets, compress costs and rationalize their accounts;
(d)	expeditiously materialize the interconnection between the networks of the two power companies and segregation of the generation sector from the network sector, and introduce third parties to bid for the supply of electricity grids;
(e)	encourage the development of distributed renewable energy power generation facilities and networks, and provide technical support and concessions for connection to electricity grids; and
(f)	adopt all measures to create a low-carbon electricity market which promotes sustainable development and operates with greater competition, openness and fairness, so as to break new grounds in the electricity market. "

S&P cuts Chaoda to 'CCC', keeps rtg on watch neg

6 months from end of financial year and no annual report yet... setting off a vicious cycle of illiquidity

"-- We believe payment acceleration of Chaoda's convertible bond is imminent, and we have insufficient information on the company's current offshore cash balance and other potential sources of liquidity.

-- We believe the company has limited financial flexibility and limited ability to access capital markets.

-- We are therefore lowering the corporate credit rating on Chaoda to 'CCC' from 'B-'. We are also lowering our Greater China credit scale rating on Chaoda to 'cnCCC' from 'cnB'.

-- The ratings remain on CreditWatch with negative implications."

More French wine consumed than produced in China

Paying up for flavored water.... and never noticed any different. French wine tastes better mixed with Coke anyway?

"A market insider reported that annual sales of Lafite wine in the provinces of Guangdong and Zhejiang is over five times the amount imported, with the great majority being smuggled or counterfeit product. An empty Lafite bottle can be sold for 2,000-3,000 yuan (US$313-$470) on the market to be refilled with a fake substitute"

Buffett toying with idiots

"Warren Buffett is ready to call Republicans’ tax bluff. Last fall, Senator Mitch McConnell said that if Buffett were feeling “guilty” about paying too little in taxes, he should “send in a check.” The jab was in response to Buffett’s August 2011 New York Times op-ed, which made hay of the fact that our tax system is so unbalanced, Buffett (worth about $45 billion) pays a lower tax rate than his secretary. Senator John Thune promptly introduced the “Buffett Rule Act,” an option on tax forms that would allow the rich to donate more in taxes to help pay down the national debt. It was, as Buffett told me for this week’s TIME cover story, “a tax policy only a Republican could come up with.”

Still, he’s willing to take them up on it. “It restores my faith in human nature to think that there are people who have been around Washington all this time and are not yet so cynical as to think that [the deficit] can’t be solved by voluntary contributions,” he says with a chuckle. So Buffett has pledged to match 1 for 1 all such voluntary contributions made by Republican members of Congress. “And I’ll even go 3 for 1 for McConnell,” he says. That could be quite a bill if McConnell takes the challenge; after all, the Senator is worth at least $10 million. As Buffett put it to me, “I’m not worried.”

Wog thinks Poms stink?

Racism is fairly ingrained in the Australian culture, but this is tragic..

Teach migrants to use deodorant - Aussie MP