Reenita's Wisdom

An extremely rare and unique Queen Victoria 96c. olive-bistre block of four sold for HK$6.4 million at Spink’s two-day auction series of rare stamps, coins, banknotes, bonds and shares which took place at The Landmark Mandarin Oriental Hotel in Hong Kong. This highly sought-after block of four stamps sold to an anonymous buyer and became the most expensive Hong Kong stamp ever sold at auction in Hong Kong.

Read the full story in the Wall Street Journal Asia

Hong Kong women are celebrated for their style, glamour and a certain je ne sais quoi that is commonly perceived to result from the power of their purse. But even though women are freer, more educated, and enjoy more legal protection than they did just 20 years ago, “success” is still a long shot.

Young women fill in application forms at job fair (The Standard)

In 1997, Hong Kong signed the UN Convention for the Elimination of Discrimination Against Women, which calls for 50 percent female representation in leadership positions in governments, political parties, trade unions and other groups. Despite this, startling gender inequalities are woven into Hong Kong’s socio-economic fabric – creating a huge barrier to female success.

Various research points to a clear gender gap vis-a-vis leadership positions, especially political leadership.

“People generally think there is equality,” says former legislator Mandy Tam Heung-man. “But, in fact, the inequality is subtle, because now women have higher educations, and there are more female professionals. Even in the government’s senior posts, there are more women, but if you look closely at the government’s structure, only two to three females are officials.”

In corporate life, with lower salaries and fewer promotion opportunities than men, women do not share an equal voice in decision-making – a huge cause for concern in a society where women comprise 54 percent of university graduates, and 47 percent of the workforce.

Read full story here

At the outset of every new year, one begins to speculate on how the days will unfold and how one’s dreams and desires will play out. In Hong Kong, people look not only at the fact that we are in January of 2010 but also that we are on the eve of a new Chinese Year of the Tiger.

2010 is the Chinese Year of the Tiger (Src: Flick.com/Digitalart)

Associated with passion, power and explosive personality, one can only begin to imagine what the Year of Tiger means for China. [...]

I received an email from a friend in Hong Kong this morning:

Asia is watching in shock and wondering why if the problems are in the US, are the markets here selling off more dramatically.

It is back to fear tactics which immediately offset the fight or flight syndrome. In this case it is definitely all about flight. Asia in particular appears to be more volatile than other markets. It is based on sentiment according to Dan Parr, the Asia-Pacific head for BrandRapport, a consulting firm. Morgan Stanley might have released very positive third quarter earnings but nobody wants to believe that this is any indicator of their health. It is like withdrawing your bet from the fastest runner in the race because everybody else tells you that he’s surviving on steroids. Morgan and Goldman stock has come under such selling assault that their share price has gone down drastically. Investors are instead snapping up three-month Treasury bills with virtually no yield pushing gold to its biggest one-day gain in nearly 10 years. The only truly happy person must be the Indian housewife who has become rich overnight by virtue of her stridhan (gold jewelery inherited by an Indian woman at the time of her wedding).

My friend continues her email:

Also America’s credibility as bastion of free markets has fallen hard.

Indeed the Fed’s bail out of AIG, Fannie and Freddie are perceived by many as a free market detour. A free market economy refers to a system where the buyers and sellers are solely responsible for the choices they make. Free market gives the absolute power to prices to determine the allocation and distribution of goods and services. However, the notion of free market is mainly a theoretical concept as every country, even capitalist ones, places some restrictions on the ownership and exchange of commodities.

Whether the bailouts were a good idea or not remains to be seen. Some remained concerned about the depletion of the Fed’s resources, others remain incensed about the use of tax dollars. However one has to consider the the ripple effects of the failure of a Fannie, Freddie or AIG on the US and then global markets. Shockwaves in Asia are case in point. Personally, I am still annoyed that the Fed would not put up a paltry $4 billion to bail out Lehman Brothers. Had it done so, Morgan Stanley and Goldman Sachs might be having a better day. Not to mention the 15,000 Lehman employees who did not get bought by Barclays.