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CNA: Foreign Participation in Hong Kong Stock Market Plummets

Primary Taiwanese news agency Central News Agency (CNA) recently reported that, according to a research report by Morgan Stanley, overseas institutions’ participation in Hong Kong stocks has dropped by one third since 2021. Overseas funds are gradually withdrawing from the Hong Kong stock market.

In the years 2016 to 2020, participation of overseas institutions in Hong Kong stocks accounted for 39.5 percent, 37 percent, 36.6 percent, 32.1 percent and 39.5 percent, respectively. In 2021, participation dropped sharply to 26.7 percent, and dropped to 23.1 percent last year and 24.6 percent today. Morgan Stanley’s research showed that overseas institutional funds continue to withdraw and continue to reduce allocations to Mainland China and Hong Kong stocks. Foreign investors are less interested in participating in Mainland Chinese and Hong Kong stock markets due to uncertainty in China-US relations, political instability across the Taiwan Strait, risks in the Mainland’s real estate market, and uncertainty about the pace of China’s economic recovery.

Source: CNA, September 12, 2023
https://www.cna.com.tw/news/acn/202309120033.aspx

China Informally Asks EV Manufacturers to Use Domestic Parts

Taiwanese newspaper United Daily News quoted a report by Japanese outlet Yomiuri Shimbun saying that China has unofficially urged its electric vehicle (EV) manufacturers to utilize domestically-produced electronic components, including semiconductors. The Chinese government has additionally encouraged these EV manufacturers to set up specific targets for the incorporation of domestic parts, with potential penalties for non-compliance.

According to diplomatic sources in China, “The purpose of (Beijing’s) sending instructions verbally through former officials is to leave no evidence of exclusion of foreign investment.” Insiders said that, as Chinese automobile manufacturers swiftly shift from gasoline-powered vehicles to electric ones, they have established their own systems for production of electronic components and they have vertically integrated production of nearly all related technologies except the drivetrain.

Source: United Daily News (Taiwan), September 17, 2023
https://money.udn.com/money/story/5599/7445931

Mongolian Activist Accuses CCP of Cultural Eradication and Genocide

Enghebatu Togochog, the Director of the Southern Mongolia Human Rights Information Center (SMHRIC), has accused China and the Chinese Communist Party (CCP) of cultural eradication and genocide in Inner Mongolia. According to Togochog, the “bilingual education” imposed in the region is effectively monolingual, with instruction predominantly in Mandarin and with only minimal education in the Mongolian language.

The CCP prohibits the use of Mongolian language in schools, leading to what Togochog describes as systematic erasure of Mongolian culture. For example, the Inner Mongolia Autonomous Region Books and Periodicals Distribution Industry Association issued a notice in August instructing its members to cease sales of the Mongolian-language book “General History of the Mongols” and to remove it from shelves. Togochog says that this is just one example of Mongolian literature being banned, with schools, libraries, bookstores, and other outlets prohibited from distributing  Mongolian-language publications, books, journals, etc.

Togochog also accused the CCP of conducting genocide in Inner Mongolia.

Source: Epoch Times, September 19, 2023
https://www.epochtimes.com/gb/23/9/19/n14076767.htm

CCP Begins Brainwashing Hong Kong Students

The Chinese Communist Party (CCP) has a history of effectively indoctrinating people, starting from kindergarten. This practice is now extending to Hong Kong’s students.

In June of this year, all freshman-year students of Hong Kong’s Pui Kiu Middle School wrote a letter to Xi Jinping. In his response, Xi encouraged these students “to gain a deeper understanding of global developments and to explore the history, culture, and realities of our country.” The Hong Kong education sector took this letter as a “sacred message” and reacted by implementing various “learning sessions.”

Reports have emerged suggesting that the Hong Kong government is considering a mandate that would require all Hong Kong primary and secondary school students to visit “holy” sites of the communist revolution in China so as to instill “the communist spirit” in the youth.

Hong Kong’s students were at the forefront of resistance against the CCP during the 2019-2020 anti-extradition protests. The CCP is now actively working to mold Hongkongese youth into conforming supporters of the regime.

Source: Newtalk, September 18, 2023
https://newtalk.tw/news/view/2023-09-18/888818

Xi Jinping Urges Secretaries to Increase Their Political Alignment

High-level CCP official Cai Qi delivered a message from Xi Jinping in a speech to China’s National Conference of Secretaries for Party Committees and Government Offices, urging the secretaries present to increase their political alignment with the CCP’s Central Committee. Cai Qi is a member of the Chinese Communist Party (CCP) Politburo Standing Committee and the Director of the General Office of the CCP Central Committee. The National Conference convened in Beijing on September 13th and 14th.

The speech emphasized the need for a “new atmosphere” and working approach within the general offices of Party committees and government bodies. Such committees and bodies are typically run by secretaries supporting top officials. Xi’s message urged these secretaries to “enhance their political alignment, uphold the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, broaden their perspective to encompass the nation’s broader objectives, deepen the development of political institutions, steadfastly uphold the centralized and unified leadership of the Party Central Committee, and consistently align their ideology, politics, and actions with the Party Central Committee.”

{Editor’s Note: There have been rumors that the arrest of Li Yuchao, the former Commander of the Chinese Military’s Rocketry Division, was triggered by a report from his secretary, and that Li Yuchao privately disagreed with Xi Jinping’s plan to take Taiwan by military force. If the rumors are true, the incident with Li Yuchao’s secretary may have motivated Xi’s message to the secretary conference, encouraging secretaries to be loyal to Xi and the CCP’s Central Committee rather than to the officials they serve.}

Source: People’s Daily, September 15, 2023
http://ztjy.people.cn/BIG5/n1/2023/0915/c457340-40078335.html

CCDI Calls for Oversight of Officials Outside of Working Hours

The Central Commission for Discipline Inspection (CCDI) of the Chinese Communist Party (CCP) recently issued a statement that highlights the prevalence of disciplinary violations and illegal activities of officials outside of their regular eight-hour work shifts, calling for an expansion of oversight “beyond the (working) eight hours.” The CCDI also outlined certain measures adopted by some local governments to monitor their officials outside of working hours.

A political commentator has suggested that the CCDI’s approach misidentifies the fundamental issue at play: the problem of corruption among officials is deeply rooted in the CCP’s system which often enables officials to wield power beyond the law, misuse public resources, operate with little transparency, and evade public scrutiny. According to this analysis, this unregulated use of power during official working hours has led to misconducts outside of working hours.

Sources:
1. Sichuan Online, September 18, 2023
https://focus.scol.com.cn/zgsz/202309/58975119.html
2. Epoch Times, September 18, 2023
https://www.epochtimes.com/gb/23/9/18/n14076309.htm

People’s Daily Calls for Officials to Implement Policies Proactively

The People’s Daily, the official newspaper of the Central Committee of the Chinese Communist Party, published a commentary emphasizing that it is imperative for government officials to implement decisions and policies set forth by the Party’s Central Committee. The paper’s call to action comes amidst growing concerns in China regarding an increase in recent times of officials adopting a passive attitude.

The article highlights a statement made by Xi Jinping during his visit to Jiangsu urging officials to “meticulously implement the Central Committee’s decisions without compromise and carry out the implementation with a proactive, resolute, persistent, and problem-solving mindset.” The commentary further points out perceived deficiencies of some officials, describing their actions as “sluggish and procrastinating, selective – focusing only on tasks they agree with while neglecting others, superficial – aimed at appearance rather than substantive results, and evasive in responsibility.”

Source: People’s Daily, September 19, 2023
http://dangjian.people.com.cn/n1/2023/0919/c117092-40080628.html

Oxfam Report Highlights Hong Kong’s 20% Poverty Rate and Widening Wealth Gap

Oxfam is an international confederation of 21 independent affiliates “that fights inequality to end poverty and injustice.” In September, Oxfam Hong Kong released its ‘Hong Kong Poverty Report 2023,’ analyzing government data from 2019-2023. It found that the overall poverty rate in Hong Kong reached 20% in early 2023, affecting over 1.36 million people. Comparing pre- and post-pandemic median monthly incomes, the poorest households now earn 57.7 times less than the richest, up from a ratio of 34.3 in 2019. This shows that, while society is returning to normal in the wake of the COVID-19 pandemic, economic recovery remains polarized between high- and low-income families.

The median monthly income for the poorest 10% of households dropped by over one-third to HK$2,300. In contrast, the richest 10% of households grew by more than 10% to HK$132,600. The median household income for Hong Kong only increased 1.7%.

Nearly 210,000 employed Hongkongers still live in poverty, mostly working in retail and food services. Over 40% of Hong Kong’s unemployed live in poverty. Inactive individuals in poverty exceeded 1.1 million, increasing 10.6% since 2019.

Director Kalina Tsang of Oxfam Hong Kong urged the government to adjust the city’s minimum wage, support grassroots employment, aid subdivided flat households, collaborate with businesses and NGOs on social innovation, and improve childcare. She said that, following the pandemic, wealth inequality has seriously worsened and slow recovery among poor families is alarming. Oxfam believes Hong Kong is facing structural changes that make poverty more complex. It has called on the government to narrow the wealth gap and improve conditions for low-income workers post-pandemic.

Source: Oxfam Hong Kong, September 19, 2023
https://www.oxfam.org.hk/en/news-and-publication/gaping-wealth-gap-leaves-hong-kong-s-poorest-making-57-7-times-less-than-richest-while-struggling-to-recover-post-pandemic