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ICTSI’s Colombia port takes in largest capacity vessel

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) said Sociedad Puerto Industrial Aguadulce S.A. (SPIA), its joint venture container terminal project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia, has received the “largest vessel ever to call Colombia” this month.

“Coming from Asia, the large-scale vessel, APL Esplanade, recently arrived at Puerto Aguadulce with a capacity of 13,892 twenty foot equivalent units (TEUs),” ICTSI said in a statement on Monday.

It added that the vessel would continue to other ports in South America.

“The shipping companies continue to build larger and larger capacity vessels. For Puerto Aguadulce, receiving this type of vessel is an honor and a great responsibility. We work continuously under our vision of being a strategic ally of the Colombian economy. At the end of last year, we received what is now, after APL Esplanade, the second largest capacity container vessel that has docked in the country,” Miguel A. Abisambra, Puerto Aguadulce general manager, was quoted as saying.

He said these calls affirm that the terminal, which began operations in November 2016, has “global service standards, technology, infrastructure and security.”

ICTSI had posted a 7% increase in its net income attributable to equity holders in the July-September period last year.

The Razon-led company attributed the profit growth to strong operating income contribution from the terminals in Democratic Republic of Congo, Iraq, Mexico, and Manila and Subic in the Philippines; new contracts with shipping lines and services at Victoria International Container Terminal in Melbourne, Australia; continuing ramp-up at the new terminals in Papua New Guinea; and a decrease in equity in net loss at Sociedad Puerto Industrial Aguadulce.

Revenue from port operations went up by 3% to $355.6 million during the third quarter, and by 10% to $1.1 billion during the January-September period.

The company has said it spent $177.7 million out of the $380-million capital expenditure budget as of end-September. — Arjay L. Balinbin

Korean entertainers coming to PHL in February

KOREAN actor Yeo Jin Goo, DJ HYO, and singer/actor Ong Seong Wu will all be coming to the Philippines in February.

Yeo Jin Goo — fresh from the success of his latest TV series, Hotel del Luna, which is currently airing on Abs-Cbn and is one of the highest rated Korean drama in cable TV history — will be coming to Manila for the first time and will be staging his first fan meeting tour, Memory Line. This will be held on Feb. 1 at the New Frontier Theater in Cubao, Quezon City.

Yeo started as a child actor in 2006 before played the title role in the 2013 movie Hwaji: The Monster Boy and his first leading role in a TV drama on Orange Marmalade in 2015. He went on to star in TV dramas Circle and Reunited Worlds, and the film Warriors of the Dawn before starring in three TV dramas in 2019 — The Crowned Clown, My Absolute Boyfriend, and Hotel del Luna.

Tickets to Yeo Jin Goo’s Memory Line — First Fan Meeting in Manila 2020 are on sale via TicketNet.com.ph, TicketNet outlets or by call 8911-5555 for more information.

DJ HYO IN MANILA
Hyoyeon of the Korean girl group Girls Generation struck out on her own and made a name for herself by becoming a DJ.

Now called DJ HYO, her set includes not only her solo songs but also the hit songs of Girls Generation. She will be presenting her exclusive DJ set at House Manila, Resorts World Manila on Feb. 8 10 p.m.

The P5,000 tickets are available at Ticket2Me.

For more details visit the social media accounts of FanLive, Istudyo ni Pipay, and House Manila.

ONG SEONG WU FAN MEET
After taking home the Best New Actor and Hallyu Star Award at the 12th Korea Drama Awards and the AAA Rookie Actor Award at the Asian Artist Award 2019, and finishing his recent drama At Eighteen, Ong Seong Wu returns to the music scene with his newest single “We Belong.”

Ong Seong Wu will hold his Asia Fanmeeting <“WE BELONG”> in Manila on Feb. 25 at the Araneta Coliseum in Cubao, Quezon City. Tickets are available at all TicketNet outlets and online (https://ticketnet.com.ph/events/detail/Ong-Seong-Wu-Asia-FanMeeting-In-Manila).

Agency banking transactions rose in 2019

THE COUNTRY’S digital agency banking in 2019 took a leap as transactions ballooned by more than fivefold, fueled by withdrawal transactions of conditional cash transfer beneficiaries.

Data from the Digital Enterprise and Innovation Group of the Rizal Commercial Banking Corp. (RCBC) showed that transaction count surged by 564% year on year to 1.2 million in 2019.

The total amount of money which went through the system skyrocketed by 521% year on year to P3.3 billion in 2019.

“The strategy behind the exponential growth was based on the recalibration of the business model including the data-driven device distribution in areas with propensity for high transaction volume,” RCBC Executive Vice- President and Chief Innovation Officer Angelito “Lito” M. Villanueva said in a text message to BusinessWorld on Monday.

Among transactions, withdrawals saw the largest growth surge of 610%, followed by fund transfers (226%), cash-in (221%), and bills payment (93%).

More than half (51%) of the withdrawal transactions are made by conditional cash transfer (CCT) beneficiaries. With this, a total of 284,000 CCT beneficiaries have accessed digital agency banking.

Data also showed that the areas with the highest transaction volumes are in Bataan, Aklan, Quezon City, Davao City, and Antique.

Land Bank of the Philippines automated teller machine (ATM) cards were the most frequently used for transactions, the data showed. ATM card users from Metropolitan Bank & Trust Co., BDO Unibank, Inc., RCBC, and the Development Bank of the Philippines also rounded up the top five users of digital agency banking.

Despite the 94% successful transaction rate, RCBC noted that 6% of transactions were declined due to insufficient balances.

Mr. Villanueva, who is also the founding chairperson of the Fintech Alliance Philippines, said they are targeting to keep the fivefold growth or over 500% expansion rate of digital agency banking in 2020.

“To further sustain its growth is the onboarding of over 100 rural banks, cooperatives, MFIs (microfinance institutions), pawnshops, and sari-sari stores,” he said.

It was in 2017 when the Bangko Sentral ng Pilipinas rolled out its guidelines for lenders in conducting agency banking, which taps outlets, groups, or individuals with technology to perform basic banking services including account openings, cash deposits, withdrawals, and even bills payment in far-flung areas where bank branches may be a rarity or are absent. — L.W.T. Noble

Davao manufacturer ventures into hotel business

DAVAO CITY — The family behind weighing scale manufacturer First Philippine Scales Inc. (FPSI) has ventured into the hotel business, taking advantage of a 2,000-square meter prime property in Davao City where the new Blue Lotus Hotel now stands.

The lot along Quimpo Boulevard, one of the main roads in the city, was originally planned by the Policarpio family for an FPSI showroom for its Fuji line of weighing scales and other products.

“Nanghihinayang ako rito sa puwesto kung showroom lang (I felt it would be a waste if we just put up a showroom here),” Amparo U. Policarpio, president of Blue Lotus Hotel, said in an interview.

“Maganda naman ang location dito sa Davao at maganda ang surroundings kaya naisipan namin na gumawa ng hotel (The location in Davao is good and the surroundings are nice, that’s why we thought of building a hotel),” she added.

The seven-floor, 133-room hotel is being positioned not just for leisure and business travelers, but as a venue for small and medium-sized meetings, seminars, conferences, and special events with its eight function rooms.

The hotel also have an eco-friendly facilities such as LED lighting, solar power, rainwater harvesting system, and energy-saving air-conditioning system.

The hotel is being positioned and more. It offers eight function rooms that can accommodate up to 400 people theatre-style.

Ms. Policarpio said they do feel a bit nervous going into a new industry, and appreciate customer feedback so that they can keep on improving the service.

“This is our first time to venture into hotel business. There may be something that still needs improvement, we appreciate your feedback. There may be imperfections during your stay here, please accept our apology,” she said.

FPSI started as a trading firm in 1968 for weighing scales from Taiwan, Japan and the US. It started manufacturing its own Fuji brand in 1975 with its first plant in Caloocan. Its first branch in Davao City was opened in 2002. — Maya M. Padillo

Local stocks start year as Asia’s unloved market

WHEN it comes to Philippine stocks, 2020 so far isn’t looking better than 2019.

Barely two weeks into the new year, and the market is the worst performer among major Asian peers, with overseas fund withdrawals reminiscent of January 2008. Back then, fears of a US recession roiled global shares and pummeled Manila into a bear market. Last year, Philippine equities were already among the region’s laggards.

After foreign outflows in 2018 and 2019, Philippine stocks remain out of favor.

Expectations of a weaker peso and fears of regulatory risk over a contract dispute between the government and Manila’s water utilities could be holding back investors from scooping up Philippine equities, even amid the prospects of faster economic growth, according to Rachelle Cruz, an analyst at AP Securities, Inc. An added factor is the uncertainty over the passage of measures cutting corporate taxes and incentives, she said.

After clocking a 4.7% gain in 2019 (the regional benchmark surged 16%), the Philippine Stock Exchange Index has retreated 0.5% this year as overseas funds have pulled $44 million, one of the biggest outflow in Asia. Foreign investors dumped almost $100 million over a similar period at the start of 2008, just as the index was about to sink into a bear market.

The Philippine stock exchange suspended trading Monday after the government said there’s an imminent threat of a hazardous eruption of the Taal Volcano, now rumbling and spewing ash and smoke just 65 kilometers south of the capital Manila.

Foreign investors have pulled more than $1.3 billion from Philippine equity funds in the last two years as the nation was hit by rising inflation and slowing economic growth, coupled with sell-offs triggered by a US-China trade war. While the shares have traded at a premium to Asian peers for most of the past decade, the rout shrank valuations to the lowest since 2011 relative to the MSCI Asia Pacific Index, feeding hopes bargain hunters will come in.

“This outflow isn’t a reflection of deteriorating fundamentals, but the tail-end of a portfolio re-balancing,” said Cristina Ulang, an analyst at First Metro Investment Corp. “This could be an inflection point for there are many arguments why foreign investors will come back this year. Economic growth and corporate earnings will be stronger. We are again in the league of Asia’s fastest growing markets.” — Bloomberg

Hollywood made 532 TV shows in 2019, and it’s going to make more in 2020

THE US TV industry released 532 scripted shows last year, an annual increase of 7%, as the competition for viewers intensified with the introduction of new streaming services like Disney+.

John Landgraf, who runs Walt Disney Co.’s FX networks, has tracked production for years and predicts 2020 will see another increase, which he lamented as “just bananas.”

The surge is raising the cost of making TV shows, while the growing volume means many programs don’t get the attention or audience they need to be successful, according to Landgraf, who spoke last Thursday at the Television Critics Association meeting in Pasadena, California.

Landgraf has held senior roles at FX since at least 2004 and has shepherded popular hits such as The Americans and Atlanta. He’s been particularly critical of the funding flowing in from technology companies that don’t need to make money from the shows they back.

“The danger of the internet is that everything becomes junk food,” he said.

Over the past decade, AT&T Inc.’s HBO released 19% of the shows on critics’ top 10 lists, while FX was second with 18% and Netflix Inc. fifth with 10%, Landgraf said.

New streaming services set to launch this year include Peacock from Comcast Corp.’s NBCUniversal and AT&T’s HBO Max. — Bloomberg

Goldman plans to double China headcount to 600

GOLDMAN SACHS Group, Inc. wants to double its headcount in China in five years. — REUTERS

GOLDMAN SACHS Group, Inc. plans to double its headcount in China over the next five years, provided the Communist Party-ruled nation continues down the path of opening up its financial markets.

The ambition to raise staffing to 600 is part of a five-year plan drawn up by executives at the New York-based investment bank, said a person familiar with matter who asked not to be identified discussing confidential plans.

Soon after he was elevated to the top job in 2018, Chief Executive Officer (CEO) David Solomon asked for a detailed strategy for expanding in China over the next half decade. Foreign banks are preparing to push into the world’s second-largest economy, vying to tend its growing wealth and compete for as much as $9 billion in commercial and investment banking profits, Bloomberg Intelligence estimates. China, meanwhile, is looking for fresh investments to cushion its economy and to attract foreign competition to sharpen the domestic financial industry.

President Xi Jinping has set plans to let foreign investment banks take full control of units in the country by the end of this year, part of an opening of its $45- trillion financial market that also includes asset management and insurance. Goldman is in the process of applying to boost its stake in an investment bank joint venture based in mainland China to 51% from 33% and will go for full control if permitted by yearend.

Goldman spent last year’s latter half honing its expansion plan, the person said. In behind-the-scenes talks, senior government officials signaled growing urgency to use capital markets, rather than the country’s banking system, to support corporate China as a trade dispute with the US weighed on the economy.

China unveiled its plan for opening up its financial market in late 2017, and last July, it decided to push forward its timetable by a year. Yet after meeting with top bankers in November, Mr. Xi warned that the opening will be on China’s terms, vowing to safeguard the nation’s “financial sovereignty.”

“The leadership in China understands the value of global capital flows,” Todd Leland, co-president of Goldman’s Asia-Pacific operations outside of Japan, said in an interview. The government’s pledges provide a “robust framework” to build a bigger business.

He declined to comment on the bank’s headcount target but acknowledged that hiring will be competitive. “All of us are trying to get to 100%, so the race for talent is going to be significant,” he said. “Whether or not you’re able to compete and compensate people and find the right individuals that are a fit, that’s by far the biggest challenge.”

Goldman’s profits reported from its joint venture are limited. In 2018, it made 69 million yuan ($10 million) from the unit in which it holds a minority stake.

Part of the bank’s expansion in China will be driven by “explosive” growth in asset management, Mr. Leland said. Chinese households are sitting on about 90 trillion yuan ($13 trillion) in investable assets. Clients increasingly want to diversify away from cash and real estate, as China is phasing out guaranteed wealth management products that have dominated its investment scene.

Goldman will also add to its investment banking, markets, private wealth and merchant banking operations on the mainland, betting an acceleration in capital market reforms will drive growth in equity and debt markets as well as mergers and acquisitions.

But its rivals aren’t sitting idle.

New York-based JPMorgan Chase & Co. is planning to expand its office space in China’s tallest skyscraper by a third. UBS Group AG, based in Zurich, has set its sights on doubling investment banking headcount in the next three to four years. Japan’s Nomura Holdings, Inc. is initially building an operation to serve wealthy Chinese clients onshore, but will also expand investment banking as its boosts staff to 500 by 2023. — Bloomberg

DMCI, RLC team up for Las Piñas condo

CONSUNJI-LED DMCI Homes and Gokongwei-led Robinsons Land Corp. are teaming up for a three-building condominium project in Las Piñas City.

In a statement, the real estate arm of listed DMCI Holdings, Inc. announced its joint venture with Robinsons Land to build Sonora Garden Residences, a condominium that promises a resort-living experience within the metro.

The development will stand on a 1.45-hectare land near Alabang-Zapote road, which will have access to the Robinsons Place Las Piñas Mall.

The three buildings comprising the project are the 15-story Stellan, 40-story Cadence and 41-story Liran, which will have one-, two- and three-bedroom units with sizes ranging from 28 square meters (sq.m.) to 83.5 sq.m.

DMCI Homes said 70% of the land area for the project will be dedicated to open spaces and resort-inspired amenities.

“We envisioned Sonora Garden Residences to be a prime living destination for those who are craving for the pleasures of residing in a resort-like atmosphere and at the same time enjoying the convenience of having easy access to everything in southern Metro Manila,” DMCI Homes Assistant Vice-President for Project Development Dennis O. Yap said in the statement.

Aside from mall access, the development is located near the Ninoy Aquino International Airport and several entertainment hubs, schools, government institutions and hospitals.

Within the gates of Sonora Garden Residences, residents can also enjoy indoor amenities such as an entertainment room, Sky Promenade, a game area and a fitness gym. Its outdoor facilities also include a lap pool, a kiddie pool, a leisure pool, a basketball court, a play area for kids, a pool deck, a jogging path and an open lounge.

The property is scheduled for turnover by December 2023. DMCI Homes and Robinsons Land have started pre-selling units at the 40-story Cadence building for P3.99 million and above. — Denise A. Valdez

Sangley Airport expansion to break ground mid-Feb.

CAVITE’S Sangley Airport expansion project is targeted to break ground in the middle of next month after the completion of a technical assessment, the provincial governor said.

In a phone message on Sunday, Cavite Governor Juanito Victor C. Remulla said the local government was looking at Feb. 15 to start the project and that it was scheduled to make an announcement.

He said the bid of MacroAsia Corp. and China Communications Construction Corp. (CCCC) to upgrade and expand the Sangley Airport was still undergoing a technical evaluation. The Cavite government will then make an announcement on the results of the assessment on Wednesday, he added.

Mr. Remulla was reported as saying in December last year that the provincial government targets to award the project contract by Jan. 15.

Before it was repurposed for general aviation, Sangley was formally known as Danilo Atienza Air Base. Its location on Sangley Point, a narrow peninsula which served as a naval facility during the Spanish occupation, is surrounded by navigable waters that require extensive reclamation.

Cavite’s government and its joint venture partner plan to build a $10-billion airport out of the existing small airport.

The proposed airport will have four runways — or double the two runways of the Ninoy Aquino International Airport — and a terminal that can handle 100 million passengers annually.

The project has been structured to isolate the costly reclamation portion from the airport-building component, and to ease compliance with procurement rules.

Mr. Remulla had said that the airport would be operational by 2023, and the fourth runway to be opened after six years.

In December last year, the Cavite government announced that MacroAsia-CCCC was the sole bidder for the project.

A month earlier, Mr. Remulla said that apart from MacroAsia and CCCC, the other buyers of bid documents were Metro Pacific Investments Corp.; Prime Asset Ventures, Inc.; Philippine Airport Ground Support Solutions, Inc.; Langham Properties, Inc.; and Mosveldtt Law Offices. — Arjay L. Balinbin

A good shared experience

River City Girls
Sony PlayStation 4

WHEN Nekketsu koha Kunio-kun (roughly translated as “Hot Blood Tough Guy Kunio”) made its way to arcades in 1986, not even its biggest fans thought it would have legs. Even as developer Technos Japan had high hopes for it (going so far as to name its principal protagonist after company president Kunio Taki), it seemed to carry a one-off vibe. After all, it was a side-scrolling beat-em-‘up that, for the first time, employed four-direction movement and required multiple hits to dispatch enemies. It turned out to be a commercial smash, prompting the release of a port to the Nintendo Family Computer the next year and serving as the kickoff point of an immensely popular franchise.

That the Kunio-kun series is still alive and kicking three decades and three years later despite one industry challenge after another speaks volumes of both the loyalty it has engendered and the quality for which it stands. Now owned by Arc System Works, titles in the intellectual property — which has branched out into seemingly disparate genres, including a variety of sports — boast of outstanding technical and artistic polish, uniquely quirky plots and premises, and engrossing gameplay designed to generate high replay value.

River City Girls is no exception. Featuring a lush color palette and rock music consistent with its retro sensibilities, it turns the hero narrative upside down by having familiar high-school characters Misako and Kyoko do the heavy lifting vice usual leads Kunio and Riki. After learning of their boyfriends’ kidnapping, they’re spurred to action — from detention, no less, in an obvious nod to their kickass predilections — out of Nekketsu High School, and deep within River City. The result is a rollicking ride that never feels fabricated or forced. To this end cutscenes and interactions laced with humor propel the narrative and help the presentation forge ahead.

Combat mechanics are excellent, in no small measure complemented by easy-to-master and lag-free controls. Difficulty ramps up over time, but never unfairly, and with an eye towards encouraging gamers to collect experience points and currency (earned from encounters) for use by Misako and Kyoko in raising stats, learning new moves, and purchasing battle-purpose gear and equipment. And while River City Girls has a clear end (Save Kunio and Riki!), it’s far from linear; side-quests abound, and the attainment of their objectives yields accessories that provide percentage boosts to abilities and skills. It even has collectibles by way of Sabu statues and cats; finding all will net more bonuses, not to mention unlock the real final boss fight.

For all the open-world options, River City Girls isn’t overly long. In single-player mode, it should be good for around 10 hours or so. That said, it earns its keep in cooperative mode. As with every other classic beat-em-‘up title, it finds itself reaching new heights when enjoyed by two gamers who band together in beating up all the bad guys on screen. The shared experience can likewise smoothen any rough edges produced by grinding, and by the occasionally uneven pace. In any case, it proves well worth its $20.99 price tag. Highly recommended.

THE GOOD:

• Outstanding audio-visual presentation reminiscent of classic beat-‘em-ups

• Deep and engrossing non-linear gameplay

• Superb cooperative mode

• Solid addition to the Kunio-kun franchise

THE BAD:

• Uneven pace

• Grinding required

• Side-quests can lead to time-consuming backtracking

RATING: 8.5/10

POSTSCRIPT: Tom Clancy’s Ghost Recon: Breakpoint picks up from where Tom Clancy’s Ghost Recon: Wildlands left off. In fact, it’s a lot like its predecessor — a tactical shooter in an open-world setting, but bigger. In its development, Ubisoft Paris clearly set out to make it a superior version. And the hard work shows in its presentation: As gamers explore Auroa, a fictional chain of islands in the Pacific Ocean, they are treated to an extremely vast and varied playing field that further underscores the importance of choice. The effort is especially significant in light of a sustained initiative to beef up the narrative; even side missions, and the conversations therein, serve to enrich the backdrop, thereby adding gravitas to the action.

Tom Clancy’s Ghost Recon: Breakpoint follows the exploits of Lieutenant Colonel Anthony “Nomad” Perryman. This time, he investigates military contractor Skell Technology on behalf of the United States Special Operation Forces. Soon enough, he gets to the bottom of the conflict: Disillusioned by the outcome of a mission in Bolivia, former Ghost operative Cole Walker has turned, and is bent on using cutting-edge drone technology to seek retribution for perceived sins. In his effort to set things right, he gains the assistance of former US Marine Mads Schulz, leader of the Homesteaders (island farmers forced to seek shelter in the Erehwon cave system), tech libertarian Jace Skell, Skell Tech Artificial Intelligence Program head Christina Cromwell, and mathematician Maurice Fox.

En route to meeting the ultimate objective, gamers are treated to edge-of-seat interplay. Tom Clancy’s Ghost Recon: Breakpoint makes sure to stay fair while presenting a bevy of alternatives, whether in solo or multiplayer mode. Player-versus-player scenarios can be a technical challenge for online shooters; in this case, however, Ubisoft manages to rely on knowledge gained from Tom Clancy’s Ghost Recon: Wildlands to make the experience run as smoothly as possible. Three months removed from the day it first reached store shelves, it’s a polished title that rewards patience and investment; to facilitate progress and ensure competitiveness, for instance, it imposes loot-level caps that normalize damage.

All told, Tom Clancy’s Ghost Recon: Breakpoint figures to keep both loyalists and newbies to the series going back for more. Forget about the initial middling reviews and underwhelming sales figures. It runs extremely well on the PlayStation 4 Pro, and continual improvements have made it a release worthy of the Ubisoft name. (8/10)

THE LAST WORD: The Azur Lane: Crosswave microsite at ideafintl.com has been updated to include new character profiles. Initially downloadable as a mobile app in China and Japan, the three-dimensional action shooter proved to be a critical hit. It likewise met with success commercially, reaching five million players after four months in the market. Its PlayStation 4 and personal computer (via Steam) versions, developed using the Unreal engine, will be available next month.

Meanwhile, Disgaea 4 Complete+ has an update that introduces the Ranking Shop. The new patch allows gamers to connect online and complete challenges to earn points for items not available in the base game.

It’s only going to get wilder for Hong Kong dollar traders

THE HONG KONG dollar’s movement is signifying tight liquidity. — REUTERS

ONE ASSESSMENT of the Hong Kong dollar’s dramatic turnaround in recent months is that it’s a sign of things to come.

The moves reveal structural tightness in the city’s liquidity conditions, according to Morgan Stanley. Hong Kong banks have far less idle cash on hand, after the amount of funds on loan soared to the highest since 2002 relative to deposits. Throw in a diminished pool of interbank liquidity and potentially high demand for the currency, and wild moves in local short-term rates are likely to occur more often.

Volatility in the city’s interbank rates has been especially acute since mid December, stoking a nearly 0.8% gain for the Hong Kong dollar in a month — a big move for a pegged currency. While analysts initially blamed the sudden strength on seasonal demand for cash and an unwind of short positions, the Hong Kong dollar has continued to gain in January. It rose to the strongest level since early 2017 last week, only months after flirting with the weak end of its trading band with the greenback.

“The currency will likely fluctuate around 7.8 per greenback and stay mostly on the strong half of the trading range,” said Becky Liu, head of China macro strategy at Standard Chartered Bank (HK) Ltd. “Interest rates will be volatile. Any large demand for cash will result in significant moves in borrowing costs when the pool of liquidity is so small.”

Liquidity in Hong Kong’s financial system was so tight last month that banks had to resort to authorities more often for short-term cash. The Hong Kong Monetary Authority (HKMA) — the city’s de-facto central bank — loaned out the most money in more than a year on Dec. 31 through its discount window. Borrowing costs, known as Hibor, have edged lower since then but remained higher than the interest rates on the US dollar.

Another sign of tighter liquidity is the small aggregate balance — a gauge of interbank cash supply. It’s down 70% over the past two years, near the lowest since the aftermath of the global financial crisis. The HKMA spent most of that money defending the currency peg as the Hong Kong dollar was repeatedly pushed to 7.85 per greenback, the weakest it can technically trade.

Making matters worse is that Hong Kong lenders’ loan-to-deposit ratio soared over recent years to 90% in November, close to the highest since March 2002, according to official data. This came as local currency savings posted the smallest increase in more than a decade in 2019, as prolonged anti-government protests threw the economy into recession.

The HKMA has previously said that financial markets remain stable.

The Hong Kong dollar’s surge since December is what happens when the city’s dwindling pool of cash meets increasing demand for the currency. Mainland investors have to buy the Hong Kong dollar to fund their purchases of the city’s stocks — something they’ve been doing for 41 straight days. And after Alibaba Group Holding Ltd.’s November share sale in the city, which temporarily locked up funds, more Chinese companies considering following suit.

Some Chinese corporates may also now prefer to hold the city’s dollars rather than the greenback for fear that trade tensions could escalate again, Standard Chartered’s Ms. Liu said. Hong Kong is seeing “structural changes” in liquidity, she added.

Tighter liquidity and wilder swings in the front-end borrowing costs will translate to the Hong Kong dollar moving “in a more volatile and less predictable pattern,” said Chun Him Cheung, a strategist at Morgan Stanley.

Demand for the Hong Kong dollar will probably increase ahead of the Lunar New Year holidays later this month, according to Khoon Goh, head of Asia research at Australia & New Zealand Banking Group Ltd. That could briefly push the currency to the strong end of its band, he added — which would be the first time since 2016.

The market is already expecting further strength. On Friday, the Hong Kong dollar’s overnight Hibor surged the most in more than a week, while the one-month tenor climbed for the first time in eight sessions. The currency rose to the strongest level since March 2017, its fifth weekly gain. It weakened 0.01% to 7.7673 per dollar as of 9:35 a.m. Monday.

The volatility in front-end Hibor is “now structurally higher” given the smaller aggregate balance, Morgan Stanley’s Cheung wrote in a note last week. “Until the aggregate balance is replenished, volatility in short-term Hibor would likely increase with each passing quarter.” — Bloomberg

Robinsons Malls to host bonsai shows

ROBINSONS Malls has partnered with Bonsai and Suiseki Alliance of the Philippines (BSAPI) to host bonsai shows throughout the country.

In a statement, Robinsons Malls said it signed a memorandum of agreement (MOA) with the country’s biggest bonsai club and its partners.

“This partnership aims to help promote the awareness campaign for nature conservation and sustainable environmental practices which involves tree planting events in denuded mountains, deputization of forest guardian volunteers, pro-earth livelihood programs (bonsai farming, pot making, woodcrafts, wire arts, etc); fruit seeds collection campaign; and other developmental projects,” the company said.

Robinsons Malls will host a series of bonsai and suiseki (viewing stones) shows nationwide.

BSAPI has 68 affiliated provincial, city and town bonsai clubs and five partner national clubs — Bonsai Institute of the Philippines, Philippine Alliance of Bonsai and Suiseki Clubs, Inc., BonScience (Bonsai Science Research Group), Philippine Alliance of Viewing Stones Collectors, and Pinoy Tropical Bonsai.

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