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Published on November 5, 2007

The as-yet-unfulfilled promise of the trial programme has sparked a bull run on the Hong Kong market since the end of August on the expectations that billions of dollars could flood into the city.

But Wen said four conditions must be fulfilled before the scheme is approved, signalling a further delay of the plan as the government finalises the rules for it, the South China Morning Post reported.

He said Beijing should pass a law to regulate outward mainland funds to minimise the shock to domestic stock markets and look into how this might negatively impact the Hong Kong bourse.

Work should be done to raise Chinese individual investors' understanding of the risks of investing in Hong Kong stocks, he said, and that Beijing should seek the opinions of financial regulators before the plan is implemented.

"[We] should make scientific judgement and analysis on what impact the massive funds flooding into Hong Kong's financial market would have," Wen said in his first remarks on the issue during a visit to Uzbekistan. - Agence France-Presse

n london

British Airways profit up 50%

British Airways announced at the weekend that first-half profits rocketed by more than 50 per cent, lifted by cost-cutting, but said it faced headwinds from a rising fuel bill and the weak dollar.

Net earnings jumped to £478 million (Bt32 billion) in the six months to September, compared with £315 million in the same period last year, BA said in a results statement.

Pre-tax profit rose 25.9 per cent to £593 million while turnover slipped 0.8 per cent to £4.46 billion.

"These are record results which are driven by all the hard work our people put in last year to tackle the cost base of our business," said BA chief executive Willie Walsh.

He added that BA's fuel bill would pose a "challenge" amid record high oil prices, which increase the cost of kerosene or jet fuel.

"Fuel costs remain a major challenge and our fuel bill for the year is expected to top £2 billion for the first time," Walsh said. - Agence France-Presse

n tokyo

Japan seeks more Asean visitors

Japan plans to open up its regional airports to foreign airlines in an effort to increase the flow of tourists from Asia and enhance local economies, the Transport Ministry said at the weekend.

Japan will ease restrictions over its air routes, allowing foreign carriers to launch services quickly without having to negotiate landing rights, the ministry said in a statement.

The plan comes amid efforts by the 10-member Asean to intensify regional cooperation by liberalising their individual air and maritime transport sectors.

"With the development of the framework of international air routes, we expect greater exchange with Asian countries and promote regional tourism," the statement added.

Japan has set a goal of drawing 10 million foreign visitors by 2010, nearly double the figure in 2003. Last year a record 8.1-million foreigners visited Japan.

A private national tourist organisation said that 4.98 million came for tourism.

Japan hopes to channel tourists from its traditional hubs of Tokyo, Osaka and Nagoya to outlying cities including Sapporo in the north and Fukuoka in the south to improve regional economies. - Agence France-Presse

n bombay

RBI says stability takes priority

The Reserve Bank of India deputy governor, Rakesh Mohan, at the weekend said price stability in the economy continues to be the central bank's primary objective.

"Price stability does continue to remain the primary objective but financial stability, even among pure inflation targets, is getting more and more evident," Mohan.

At its monetary policy review last Tuesday, the RBI left its benchmark short-term rates unchanged but raised the cash reserve ratio of banks 50 basis points to 7.5 per cent, effective November 10. - Dow Jones Newswires

n hamburg

Suzlon executive heads Repower

An executive of Indian engineering group Suzlon at the weekend took the reins at German wind-generator builder Repower to consolidate a ¤430-million (Bt20 billion) takeover.

Per Hornung Pedersen, chief of Danish-based Suzlon Energy steps into the shoes of the chief executive Fritz Vahrenholt, who moves up to the supervisory board.

Pedersen's company is a subsidiary of Suzlon Energy Ltd of Puna and has led the Indian company's worldwide expansion into the US, Australia, Spain, China and

Brazil.

Suzlon beat Areva of France in a takeover battle, securing 86.5 per cent of Repower Systems, which has a full order book from landowners and electricity companies keen to use the wind to make electricity. - Deutsche

Presse-Agentur

Hong kong