Hong Kong leader says sudden removal of China's top official in the city was normal
HONG KONG: Hong Kong's leader said on Tuesday (June 3) that China's recent removal of its top representative in the city, known for his hardline policies on national security, had been a "normal" personnel change.
In a surprise development, China announced late on Friday that Zheng Yanxiong (pic), the director of China's Liaison Office in Hong Kong - Beijing's main representative office in the city with powerful oversight over local affairs - had been "removed" from his post.
He was replaced by Zhou Ji, a senior official with the Hong Kong and Macau Affairs Office on the State Council.
Zheng, who played a key role in the crackdown on Hong Kong's democratic movement in recent years, was also stripped of his role as China's national security adviser on a committee overseeing national security in Hong Kong.
No explanation by Beijing or Chinese state media was given for the change.
According to a person with knowledge of the matter, Hong Kong-based conglomerate CK Hutchison's proposed sale of its global port network to a consortium initially led by US firm Blackrock had caught senior Chinese leaders "by surprise" as they had not been informed beforehand and Zheng was partly blamed for that.
The person, who has spoken with the liaison office, declined to be identified as the discussions were confidential.
The Liaison Office gave no immediate response to faxed questions from Reuters.
Zheng had served in the post since January 2023 and while the position has no fixed term, his tenure was shorter than predecessors including Luo Huining and Zhang Xiaoming.
"The change of the Liaison office director is I believe, as with all changes of officials, very normal," Lee told reporters during a weekly briefing, without being drawn on reasons for the reshuffle.
"Director Zheng has spent around five years (in Hong Kong). Hong Kong was going through a transition period of chaos to order," Lee said, referring to the months-long pro-democracy protests that erupted across Hong Kong in 2019 while adding that he looked forward to working with Zhou.
CK Hutchison's ports deal has been criticised in Chinese state media as "betraying" China's interests and bowing to US political pressure.
The conglomerate, controlled by tycoon Li Ka-shing, agreed in March to sell the majority of its US$22.8 billion global ports business, including assets along the strategically significant Panama Canal, to the consortium. The consortium is now being led by another member - Terminal Investment Limited, which is majority-owned by Italian billionaire Gianluigi Aponte's family-run MSC Mediterranean Shipping Company.
The deal is still being negotiated.
Asked whether Zheng's removal reflected a pivot by Beijing towards economic development from national security, Lee said Hong Kong still needed to pursue both.
"Hong Kong faces a stage where development and safety must be addressed at the same time because any development must have a safe environment."
China promulgated a powerful national security law in 2020, arresting scores of opposition democrats and activists, shuttering liberal media outlets and civil society groups and punishing free speech with sedition - moves that have drawn international criticism. - Reuters
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
23 minutes ago
- New Straits Times
Fabregas shuts down Inter speculation and vows to continue at Como
MILAN: Cesc Fabregas pledged his immediate managerial future to Como on Wednesday amid increasing speculation that the Spaniard is the main target for Inter Milan to replace the recently departed Simone Inzaghi. Fabregas – former Arsenal, Barcelona and Chelsea midfielder – has attracted the attention of several top clubs after leading promoted Como to a 10th place finish in Serie A last season. Fabregas is also a shareholder in the club where he ended his playing career. "I really believe in Como's long-term project, I arrived here as a player and I'm very, very happy because I can work here the way I want," Fabregas said at the SXSW (South By Southwest) conference in London. Italian media said that Inter want to speak to Fabregas after Inzaghi left by mutual agreement on Tuesday, days after their 5-0 defeat by Paris St Germain in the Champions League final, and with the Club World Cup less than two weeks away. --REUTERS
New Straits Times
37 minutes ago
- New Straits Times
Precious-safe-haven gold rises on weak data, simmering uncertainty
Gold rose one per cent on Wednesday, supported by a softer dollar and weak US data, as investors grappled with mounting economic and political uncertainty. Spot gold climbed 0.8 per cent to US$3,378.22 an ounce by 02:02 pm ET (1802 GMT), after rising as much as 1 per cent earlier. US gold futures settled 0.7 per cent higher at $3,399.20. The US dollar index fell 0.5 per cent, making gold cheaper for buyers holding other currencies, while benchmark US 10-year Treasury yields edged lower. "The US services sector - two-thirds of the economy - contracting for the first time in a year has goosed gold a percent higher after bullion had shrugged off a weak though historically volatile ADP employment report," said Tai Wong, an independent metals trader. "A close back above $3,400 will prime a run for new all-time highs." The Institute for Supply Management said its non-manufacturing purchasing managers index dropped to 49.9 last month, the lowest reading since June 2024, while ADP data showed US private employers added the fewest workers in over two years. "There is considerable geopolitical uncertainty with Russia-Ukraine, Iran, Syria and China driving people to buy gold... and although traders may not expect gold to rise as quickly, there is still plenty of upside," said Daniel Pavilonis, senior market strategist at RJO Futures. US President Donald Trump said his Chinese counterpart Xi Jinping was tough and "extremely hard to make a deal with", just days after accusing Beijing of violating an agreement to roll back tariffs. In addition, Washington doubled tariffs on steel and aluminum imports and urged trading partners to submit their "best offers" to avoid more import levies. All eyes are on Friday's US payrolls report for clues on the Federal Reserve's next move. Gold, a safe-haven asset during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment. Spot silver was down 0.1 per cent at US$34.45, platinum rose 1.5 per cent to US$1,089.99, while palladium lost 1 per cent to US$1,000.55.
New Straits Times
41 minutes ago
- New Straits Times
Wall Street ends narrowly mixed in choppy trade on weak economic data
The services sector contracted in May for the first time in nearly a year, while businesses paid higher input prices, a reminder that the economy was still at risk of slowing growth and rising inflation. Early gains in the S&P 500 evaporated toward the close and trading volume was relatively light. "Tariff impacts are likely elevating prices paid by services sector companies," said Jeffrey Roach, chief economist for LPL Financial. The ADP National Employment Report showed US private employers in May added the fewest number of workers in more than two years. Investors await Friday's nonfarm-payrolls data for more signs on how trade uncertainty is affecting the US labor market. Washington doubled tariffs on imported steel and aluminum to 50 per cent, and Wednesday was also Trump's deadline for trading partners to make their best offers to avoid other punishing import levies from taking effect in early July. Investors focused on tariff negotiations between Washington and trading partners, with Trump and Chinese leader Xi Jinping expected to speak sometime this week as tensions simmer between the world's two biggest economies. "If we can't get to an agreement on China, the tariff battle will be a headline issue for many months to come and will have an impact on both domestic and international economies," said Phil Blancato, CEO of Ladenburg Thalmann Asset Management. May saw the biggest monthly increases for the S&P 500 index and the tech-heavy Nasdaq since November 2023, thanks to a softening of Trump's harsh trade stance and upbeat earnings reports. The S&P 500 remains more than 2 per cent below record highs touched in February. Barclays joined a slew of brokerages in raising its year-end price target for the S&P 500, pointing to easing trade uncertainty and expectations of normalized earnings growth in 2026. The Dow Jones Industrial Average fell 91.90 points, or 0.22 per cent, to 42,427.74, the S&P 500 gained 0.44 points, or 0.01 per cent, to 5,970.81 and the Nasdaq Composite gained 61.53 points, or 0.32 per cent, to 19,460.49. Shares of Hewlett Packard Enterprise rose 0.8 per cent as demand for artificial-intelligence servers and hybrid cloud segment helped second-quarter revenue and profit beat estimates. GlobalFoundries rose 2.3 per cent after the chip manufacturer announced plans to increase investments to $16 billion. Shares of the fourth-largest US bank Wells Fargo ended 0.4 per cent lower, although they briefly hit a three-month high after the Federal Reserve lifted a longstanding $1.95 trillion cap on its assets. Wells Fargo CEO Charlie Scharf told Reuters he expects the bank to grow in all businesses including wealth, commercial and investment banking and credit cards, but not mortgages. Tesla fell 3.5 per cent as the electric-vehicle maker's sales dropped for the fifth straight month in big European markets. Shares of cybersecurity firm CrowdStrike slumped 5.8 per cent after it forecast quarterly revenue below estimates. Dollar Tree dropped 8 per cent as the discount store operator forecast second-quarter adjusted profit could fall as much as 50 per cent from a year ago due to tariff-driven volatility. Volume on US exchanges was relatively light, with 14.5 billion shares traded, compared to an average of 17.8 billion shares over the previous 20 sessions. Advancing issues outnumbered decliners by a 1.3-to-1 ratio on the NYSE. There were 223 new highs and 45 new lows on the NYSE. On the Nasdaq, advancing issues outnumbered decliners by a 1.18-to-1 ratio. The S&P 500 posted 23 new 52-week highs and no new lows while the Nasdaq Composite recorded 84 new highs and 35 new lows.
