Tuesday 15th March 2011

Dear Reader,

NEW ARTICLES
Ping An: not the whole picture
We look behind last night's shock placing by Ping An Insurance to tycoon Cheng Yu Tung, and call for a full explanation from the issuer. (15-Mar-2011)

David Webb's 4th submission to LegCo on proposed Special Stamp Duty
(13-Mar-2011)

RECENTLY ON WEBB-SITE
Universal pensions in HK: the case against
In a guest contribution, economist Jim Walker lays out the case against calls for a universal pension in HK, including the lessons from history of the European welfare state. (12-Mar-2011)

The cost of a universal pension
Following Jim Walker's guest article today, we run the numbers to show why a universal pension would put HK on the road to fiscal hell, a high-tax European-style welfare state. The ageing population means a HK$6k per month pension in 2039 would imply at least a 35% tax rate, and probably higher as mobile profits and professionals leave. Even 13 years from now, tax rates would rise to at least 28.5% to balance the budget. (12-Mar-2011)

Party finances in HK
Which is the wealthiest political party in HK? The answer may surprise you. We publish the accounts of the four main parties for their last two financial years, which go some way towards explaining the hand-to-mouth existence of several of the parties, and the lack of any coherent policy platforms in the pro-democracy camp. This is largely a result of the electoral voting system which divides and conquers them, countered by the secretive funding of the biggest-spending party. (7-Mar-2011)

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