# Air pollution hitting Hong Kong hard: Merrill Lynch



## builder1010 (Dec 21, 2005)

HONG KONG: Global investment bank Merrill Lynch has warned that worsening pollution in Hong Kong will drive out professionals and undercut its competitive edge, especially against rival Singapore. 

In an unusually blunt statement, the US investment giant warned that air quality in the territory is now regularly so poor that the city's long-term competitiveness is under threat. 

"Skilled professionals are departing Hong Kong because of this. More will follow," it said in a research report released late Tuesday. 

"Singapore stands to be a major beneficiary and the investment response is clear: Buy (shares in) Singapore office landlords, sell Hong Kong office landlords." 

The report predicted that mass immigration will help double Singapore's population in the next decade with a steady flow of financial service professionals expected to come from Hong Kong. 

"Hong Kong's loss is, to a large extent, Singapore's gain," it said. 

The warning came as it downgraded the city's largest landlords, cutting the ratings of Hongkong Land and Great Eagle to "sell" from "neutral", while Hysan Development Company was reduced to "sell" from "buy". 

"The spectre of new office supply combined with stagnating demand spells an ugly couple of years ahead" for the three companies, it said. "And there will likely be fewer people here to witness the decline." 

The report came days after the Council on Sustainable Development issued a report urging the government to reconsider a series of air clean-up measures costing up to 51 billion dollars (6.5 billion US). 

With 70 percent of the pollution coming from manufacturing centres in the Pearl River Delta (PRD) in southern China, Merrill Lynch said aggressive, direct action with Beijing is the only solution. 

"The government in Hong Kong is relatively powerless to address the true cause (the PRD) until Beijing gets tough," it said. "It could be a long and choking wait that many could choose not to endure." 

It also took a swipe at Hong Kong's methodology on calculating the city's pollution index which has been criticised by environmentalists as "outdated". 

While the air was getting poorer, it said, the index does not show pollution was getting worse. "But we know that there are lies, damn lies and statistics," it said. 

International chambers of commerce in Hong Kong have also issued warnings that their member businesses are pulling out of the city or deciding not to locate here because of the health implications for their families and staff. 

Pollution has become a key political issue in Hong Kong as smog levels have risen to often dangerous levels. Poor air quality reduced visibility to less than one kilometre (about half a mile) on more than 50 days last year. 

The local government has launched an "Action Blue Sky" campaign to persuade citizens to cut down on air conditioner use and slash energy consumption, but critics say it is not doing enough and more drastic action was needed. 

Business leaders in Hong Kong have called on the government to act against rising pollution or risk losing the territory's status as a major finance hub. 

- AFP/so


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## Manila-X (Jul 28, 2005)

Well Singapore is much cleaner compared to HK but HK is still gonna be the centre of business in the Asia Pacific region.


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## teh (Jun 5, 2005)

"The report says 70 percent of the pollution to Hong Kong coming from manufacturing centres in the Pearl River Delta (PRD) in southern China"

Actually Singapore has got its heavy industries and manufacturing centres mostly located at the western part and also some smaller manufacturing centres scattered all around the island. 

In addition, the Pasir Gudang industrial estate of Johore Malaysia is also nearby it just across the narrow Johor Straits. Not to mentioned the Singapore-Batam ( Indonesia ) Special Econoimic Zone for mostly manufacturing sector some only 20 kms away across the sea to the South.

Why is it that Singapore doesn't seem to get pollution from manufacturing centres aroud it then ?


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## Manila-X (Jul 28, 2005)

teh said:


> "The report says 70 percent of the pollution to Hong Kong coming from manufacturing centres in the Pearl River Delta (PRD) in southern China"
> 
> Actually Singapore has got its heavy industries and manufacturing centres mostly located at the western part and also some smaller manufacturing centres scattered all around the island.
> 
> ...


I think the reason for this is because Singapore has alot of greens especially within the urban areas. But also I think HK has several peaks while Singapore does not. HK's surrounding peaks can trap polluted air kinda like in Mexico City. 

Also, HK building density is higher than SG


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## hkskyline (Sep 13, 2002)

The factories in the Pearl River Delta are primarily for manufacturing, and it is the world's biggest factory zone. Singapore suffers from air pollution when Indonesian forest fires flare up, and it got quite bad this year as well. As to whether professionals are relocating to Singapore, I don't think that's very likely given the travel distance to the Chinese market. It makes sense to locate near the biggest prize foreign multinationals seek. In fact, FDI flows into Hong Kong have been very strong over the past few years even with the pollution problem worsening. In fact, China and Hong Kong still top all of Asia.

Hong Kong's geography *does not* trap pollution. The hills are not tall enough to block air flow from the ocean. The street canyons in Mongkok and Causeway Bay do block air flow, hence street-level pollution being trapped is a localized issue.

In fact, Hong Kong is not a land of narrow valleys. There is enough open space to allow air to flow in and out freely, which is why pollution gets blown across the border from China. Mexico City's primary problem is its altitude. Hong Kong does not have that issue.


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## touchring (Mar 25, 2005)

teh said:


> "The report says 70 percent of the pollution to Hong Kong coming from manufacturing centres in the Pearl River Delta (PRD) in southern China"
> 
> Actually Singapore has got its heavy industries and manufacturing centres mostly located at the western part and also some smaller manufacturing centres scattered all around the island.
> 
> ...



Well, the air in the Western part near Jurong island is quite bad during the Indonesian fires. Forest fire fumes plus factory exhaust. But move to the central and East, where expatriates stay, the situation is much better.

I got a sinus problem, whenever i go to china, it start getting black sticky stuff coming out of my nose - this never happen in singapore, forest fire or no forest fire, so visibility itself is not a good measure of pollution.


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## builder1010 (Dec 21, 2005)

hkskyline said:


> Hong Kong's geography *does not* trap pollution. The hills are not tall enough to block air flow from the ocean. The street canyons in Mongkok and Causeway Bay do block air flow, hence street-level pollution being trapped is a localized issue.
> 
> In fact, Hong Kong is not a land of narrow valleys. There is enough open space to allow air to flow in and out freely, which is why pollution gets blown across the border from China. Mexico City's primary problem is its altitude. Hong Kong does not have that issue.


Is there a study of the above? If its not that worst, why is there so much bad publicity about the pollution in Hong Kong? There is no smoke without the fire.


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## WhiteMagick (May 28, 2006)

Is it really that bad in Hong Kong?? Hugely surprising.


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## kelw (Apr 30, 2006)

builder1010 said:


> The report predicted that mass immigration will help double Singapore's population in the next decade with a steady flow of financial service professionals expected to come from Hong Kong.


Wow, is this right? Singapore's population will double in 10 years?


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## builder1010 (Dec 21, 2005)

HK losing expats to S'pore as smog turns many away

25 Nov 2006

Frequent illness, lack of school places also deter execs

By JANE MOIR 
IN HONG KONG 

HONG KONG's worsening air pollution and sparse international school space is prompting more and more executives to relocate to Singapore.

Headhunters and recruitment agencies are finding it increasingly difficult to attract candidates to the smog-heavy city, as concerns over respiratory illnesses and general quality-of-life issues kick in.

The Hong Kong government is being criticised over its record on environmental issues, with green groups and business chambers increasingly claiming that its anti-pollution measures have been ineffective.

Recruiters are finding that candidates are either backtracking on appointments at the last moment in preference for Singapore or are simply relocating their families there as a result of worries about the environment in Hong Kong.

'It's a real problem that's not being addressed by the government,' says Philip Eisenbeiss, a headhunter at Executive Access.

'We're getting a significant number of candidates from overseas - they are getting top offers here, and come over and the spouse kills the deal. The pollution is a huge issue,' he explains.

Singapore is an obvious alternative because of its location in the region, international schools and lower rents.

This despite the fact that for a couple of months each year the republic, along with other countries in the region, is subjected to a haze resulting from forest fires in neighbouring Indonesia.

'I'm losing people in my own office - people can't take it any more, their kids are sick all the time,' Mr Eisenbeiss says.

Brenda Wilson, a senior director with Mercer Human Resource Consulting in Hong Kong, agrees, saying: 'Many of them (executives) are selecting Singapore. When they have a choice and after speaking to a variety of people, Singapore is an attractive choice.'

Green groups have also noticed a migration. 'We do hear that (executives moving to Singapore),' says Annelise Connell, vice-chair of the group called Clear the Air. 'We know people who have gone.'

In one of the most damning indictments of Hong Kong's worsening pollution, one of the city's top marathon runners, Mark Williams, uprooted his family in July and moved to New Zealand, saying the move was prompted by concerns about air quality.

The departure of Mr Williams came just months after the annual Standard Chartered marathon turned into a public relations disaster for the government, with two people dying and scores becoming ill after pollution levels hit nearly 150.

Quality of life surveys are also becoming an embarrassment for the government, with the city slipping quite dramatically in rankings such as the ECA International survey this year. The human resources consultancy found that Hong Kong had slumped to 32nd place as the best of 257 locations to live in worldwide in 2006, compared to 20th in 2005.

As Michael Raytek of recruiter Hunt Partners explains, pollution is increasingly becoming part of a family's decision-making process when it comes to job offers.

'These are people who travel to Hong Kong and know about it (the pollution), but haven't lived here,' he stresses. 

He cites a recent case where two job offers fell through because the firm could not entice candidates away from Singapore to Hong Kong.

'We have personally felt the difficulties in terms of moving expatriates out of Singapore into Hong Kong,' he says. 'That is something that's coming up more and more often. The perception of pollution plays a role.'

One of the candidates had two children, and the other had three. School places are tight in Hong Kong for international students, but Mr Raytek says: 'We never even got to that point, though it would have been the next hurdle.'

Much of Hong Kong's pollution comes from the neighbouring province of Guangdong and the industrial hinterland of the Pearl River Delta. However, up to 40 per cent of the city's street level pollution is attributed to vehicle emissions and power companies' environmental shortcomings.


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## teh (Jun 5, 2005)

*Singapore population to double in 10 years ????*

Has the report made a mistake or a typo error somewhere ?

I remember the Singapore government is projecting only a resident population of 5.5 million from the current 4.5 million in 10 to 15 years time. 

Doubling the 4.5 million population in 10 years time is really unimaginable. I really can't understand why such a statement can actually come from a reputable research company like Merill Lynch in its official report. Can anyone explain ? Have we understood the report wrongly ?


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## Magic Night (Mar 22, 2006)

They should tear up kowloon's clutter of low rise buildings and reconstruct it with 60+ story level high rise. 

It's those bunch of low rise buildings that traps automobile emission.


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## _00_deathscar (Mar 16, 2005)

WhiteMagick said:


> Is it really that bad in Hong Kong?? Hugely surprising.


On some days yes it's horrendous.


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## hkskyline (Sep 13, 2002)

builder1010 said:


> Is there a study of the above? If its not that worst, why is there so much bad publicity about the pollution in Hong Kong? There is no smoke without the fire.


There are 2 components : roadside and actual air pollution. The smog that blankets the city is mostly from China. Some estimates put it at 90%. Factory emissions in the Pearl River Delta blow across into Hong Kong. The problem is worse in the winter when the winds blow from the north.

Hence, to solve the pollution problem, there needs to be coordination with China. Just like Singapore and Malaysia have to work with Indonesia when the forest fires rage every year.

In fact, if Hong Kong's geography traps pollution from China, then the smog shouldn't be able to reach HK in the first place. HK's hills are not tall enough to trap pollution. With a little common sense, it's quite obvious that the pollutants can't travel far if they reside so low in the atmosphere. They'll be effectively blocked out by the mountains that line the border with Shenzhen.


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## hkskyline (Sep 13, 2002)

While there is a lot of *talk* about the worsening pollution problem in Hong Kong, the *fact* is China is the big growth story in Asia these days, and that *economic reality* is unlikely to change. Hong Kong is *best positioned* to take advantage of China's rise, and foreign businesses will still come even amidst rumblings of the air being bad.

In fact, economic growth is accelerating.

*Hong Kong Economy Accelerates in 3Q*
Tuesday November 21, 9:40 am ET

HONG KONG (AP) -- Hong Kong's economy grew 3.5 percent in the third quarter from the second quarter -- its fastest growth in three years -- on a revival in exports, strong local investment and consumer spending, the government said Tuesday.

*The government raised its economic growth forecast for the year to 6.5 percent from nearly 5 percent.*

The new economic data announced Tuesday marked Hong Kong's fastest pace of economic expansion since the third quarter of 2003, when the economy rebounded 6.6 percent from the second quarter, following the outbreak of severe acute respiratory syndrome, or SARS, earlier that year.

*The strong growth was boosted by robust investment spending, which grew 12.7 percent in the third quarter from a year earlier, the highest rate since the fourth quarter of 2000, the government said.*

The growth in China trade, as China took in vast amounts of imports and shipped out goods to the rest of the world for Christmas, helped kick-start Hong Kong's economy, which grew a meager 0.3 percent in the second quarter from the first three months of the year.

"It's a full-fledged upturn, there's continued strength in domestic demand and a renewed pickup in exports," government economist Helen Chan said.

*The government's revision of its GDP forecast brings it closer to private-sector economists, who expect GDP to grow about 6.5 percent for the whole year.*

Chan said despite a slowing U.S. economy in the fourth quarter, the Hong Kong government is cautiously optimistic about the last three months of the year. A weak U.S. dollar should also help Hong Kong exports, she said.

Robust Chinese exports helped Hong Kong's third-quarter exports to rise 6.4 percent to 666 billion Hong Kong dollars ($85.5 billion) from the previous quarter, trade data showed.

Consumer spending was underpinned by a robust job market, bullish stock markets and a mild recovery in property market activity. Unemployment is hovering around five-year lows, while the benchmark Hang Seng Index rose 7.8 percent over the three months ending September.

******************

Meanwhile, more mainland IPOs are debuting in Hong Kong :



Skybean said:


> *Hong Kong turning into an IPO champ*
> By Keith Bradsher The New York Times
> 
> Published: October 19, 2006
> ...


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## hkskyline (Sep 13, 2002)

In fact, Hong Kong was Asia's 2nd biggest recipient of FDI in 2005 with China 1st and Singapore 3rd.

In both inward and outward FDI actual performance, Hong Kong is well ahead of Singapore :
http://www.unctad.org/Templates/WebFlyer.asp?intItemID=2471&lang=1
http://www.unctad.org/Templates/WebFlyer.asp?intItemID=3241&lang=1

_Actual FDI Inflows US$ billions_
China 72.4
Hong Kong 35.9
Singapore 20.1

_Inward FDI Performance Index_
1 Azerbaijan 17.687
2 Brunei Darussalam 13.664
3 Hong Kong, China 9.724
4 Estonia 8.439
5 Singapore 8.294

_Outward FDI Performance Index_
Rank Economy Index value
1 Iceland 14.232
2 Hong Kong, China 9.548
3 Panama 7.905
12 Singapore 3.081


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## F20B (Feb 23, 2006)

lol i can sense that this is turning into a HK VS Singapore thread. Anyhow as quoted by Donald Tsang, the CE of HK, the HK air pollution is on par with that of Tokyo and L.A. It is not so much the level of air pollution that is striking the news but more of the increase. Mr Donald Tsang also said that there are expats leaving Hong Kong, more are actually coming in. U can have a huge FDI without workers can u?

Just a question, Singapore is not really in charge of servicing investments in China right? So if expats moves from HK to Singapore, they will be servicing investments in indonesia, malaysia instead? Does this mean that there is actually skilled workers shortage in Singapore at present? So if later Singapore filled its workers shortage, what next?


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## F20B (Feb 23, 2006)

double posted sorry


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## hkskyline (Sep 13, 2002)

F20B said:


> lol i can sense that this is turning into a HK VS Singapore thread. Anyhow as quoted by Donald Tsang, the CE of HK, the HK air pollution is on par with that of Tokyo and L.A. It is not so much the level of air pollution that is striking the news but more of the increase. Mr Donald Tsang also said that there are expats leaving Hong Kong, more are actually coming in. U can have a huge FDI without workers can u?


FDI is usually accompanied by a management team from the investors who oversee how the funds are put into use. Hence it usually goes to a nearby regional office, which would very likely be Hong Kong, since the number of regional headquarters has risen as well in the past year, and Hong Kong is the preferred entry point into China. Meanwhile, Singapore is the preferred regional office for SE Asia. The North Asia and SE Asia splits are quite common among multinationals these days, with China being in North Asia.


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## teh (Jun 5, 2005)

*So long to HK, go 'long' on S'pore, says Merrill Lynch*

Published December 18, 2006 in The Business Times S'pore

So long to HK, go 'long' on S'pore, says Merrill Lynch
Immmigration from HK to S'pore signals compelling pair trade next year


By MATTHEW PHAN

IMMIGRATION from Hong Kong to Singapore means 'one of the most compelling pair trades for 2007 will be long Singapore office and mass residential plays and short Hong Kong office landlords', says Merrill Lynch.

The Lion City is undergoing a bout of regeneration and re-invention. 

Singapore's population could double before 2020 thanks to immigration partly fuelled by a steady flow of financial services professionals out of Hong Kong, the bank says in a report called 'Phoenicia and Contamination City' - referring to Singapore and its Chinese rival respectively.

'The Lion City is undergoing one of its periodic bouts of regeneration and re-invention - this time focused on the twin developments of leisure services (integrated resorts) and financial services,' the report says. 'Mass immigration is likely to almost double the population over the next decade or so.'

This population growth is likely to force mass housing prices to catch up with the boom seen in the luxury sector, Merrill believes.

Singapore's M3 - a broad definition of the money supply that includes circulating currency and deposits with banks and non-bank financial institutions - grew 14.1 per cent in 2006, comparable to the rates seen in 1994 to 1995, when the property market doubled, it notes.

Accordingly, the luxury end of the market has risen 20-40 per cent over the past 18 months, but the remainder of the housing stock has stayed 'relatively flat year-on-year' and some 30 per cent below the 1996 high.

The report expresses 'conviction on the longer-term outlook' for residential prices, helped by momentum factors such as an expected 5 per cent growth in mortgage loans next year and a higher 2.7 month year-end bonus for civil servants.

City Developments and OCBC Bank are well-positioned to gain from this projected upside, particularly in the mass residential segment, says Merrill, which recently added the former to its Asia-Pacific Focus 1 list of 15 to 40 Asia-Pacific stocks that represent its highest-conviction 'buys'.

In a separate report, Merrill says OCBC has been more focused on Housing and Development Board and mass-market loans than United Overseas Bank and is better leveraged to loans than DBS Group.

Meanwhile, employment trends in the service sector have lifted net absorption of office space to 1.5 million sq ft per annum. Oncoming supply for the next three years is 2.05 million sq ft. 'We are not sure where companies will seat their employees,' says Merrill, which expects office rents to peak in 2009 at $12-$15 per sq ft, compared with the current $8-$10.

CityDev, Suntec Reit and CapitaCommercial Trust are the bank's chosen 'buys'. It has 'sell' calls on Hong Kong Land, Hysan and Great Eagle.

Besides the fact that Hong Kong's 'airborne cocktail of pollution' is driving professionals away, high rents are slowing demand, and 'the bulk of expansion from financial service companies, for this cycle at least, has been done', Merrill says.


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## hkskyline (Sep 13, 2002)

*In Asian real-estate market, Hong Kong has edge 
Office market booms as firms seek space near Chinese cities *
By Maura Webber Sadovi 
13 December 2006
The Wall Street Journal Asia

*Hong Kong's commercial real-estate market is booming again. Glittering modern office towers command dramatic Victoria Harbor views and among the world's richest rents. Some developers are expanding the boundaries of the area's traditional office market and adding new icons to the growing skyline. 

Despite increasing competition from Shanghai, many U.S. and multinational companies and financial firms still favor locating their Asian headquarters in Hong Kong, attracted by the cosmopolitan English-speaking region that is home to some seven million people just southeast of mainland China. As investor interest in China has intensified, Hong Kong has drawn many bankers, lawyers, accountants and other businesspeople because of its proximity to China and a hospitable living environment offering amenities such as international schools. *

"Hong Kong is a leaping-off point for China," says Andrew Ness, executive director of research for CB Richard Ellis Group Inc. in Asia. "It's a good place to marshal your forces." 

One large project under way: Hong Kong-based Sun Hung Kai Properties Ltd.'s 118-story tower, to be called the International Commerce Centre, in Kowloon, across the harbor from Hong Kong's core central-business district. The tower will include both office and hotel space. 

For now at least, the strength of Hong Kong's real-estate market appears to put to rest a long-simmering question -- whether Hong Kong will be overshadowed by other cities in Asia. Many analysts say the region's legacy, as a former British colony that became a special administrative region of China in 1997, still gives Hong Kong an edge as a center of commerce. 

The good times come just three years after the region's economy was in the doldrums after being battered by the Asian financial crisis of the late 1990s, the tech bust and the severe acute respiratory syndrome outbreak in 2003, according to Moody's Economy.com. Since 2004, employment levels have been on the rise and insatiable investor interest in Asia has helped the Hong Kong region's economy come roaring back, sending the Hang Seng Index to records in November. 

New office supply is expected to provide some relief to tenants who have seen stiff increases recently in prime rents. After dropping out of the list of the 10 most expensive office-space markets from mid-2002 to mid-2005, as ranked by CB Richard Ellis, Hong Kong was the fifth most-expensive out of 176 markets in major cities world-wide, according to a survey released in November. London's West End and Tokyo's Inner Central area were the first and second priciest, respectively. The estimated cost to occupy prime space in Hong Kong was US$116.25 per square foot annually, a figure that includes rent, local taxes and service charges. 

Still, the region's high prices put off some investors. Hong Kong was ranked 15 out of 19 Asian-Pacific cities in terms of prospects for commercial real-estate development and investment, based on a survey conducted between June and August of 175 real-estate experts including lenders, investors and developers by the Urban Land Institute and accounting firm PricewaterhouseCoopers. While Hong Kong is a favorite target for first-time investors in Asian-Pacific real estate, the ranking could reflect concern that the market is overpriced, says Stephen Blank, a senior resident at the Urban Land Institute. 

Indeed, Hong Kong's share of the growing direct commercial investments flowing into the Asian-Pacific region shrank to 10% in the first half of 2006 from 17% in the year-earlier period, according to a recent study by real-estate services firm Jones Lang LaSalle. 

Still, Guy Hollis, international director in the Asian-Pacific region with Jones Lang LaSalle's International Capital Group, believes Hong Kong will continue to be a go-to city in Asia, just as the U.S. boasts gateway cities such as Chicago and New York. Mr. Hollis says investor demand for property there will remain strong, though Hong Kong's transaction levels are constrained because many of its building owners are long-term holders of property. "If I had a couple buildings to sell in Hong Kong," he says, "I could sell them."


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## SmellyHongKongAir (Jun 29, 2007)

*WITNESS-Running in Hong Kong's bad air*

HONG KONG (Reuters) - Flanked on one side by a construction project and a container terminal stretching for miles on the other, I soldiered on with thousands of runners in Hong Kong's Standard Chartered Marathon.

Looking up, buildings about two km (1.25 miles) ahead were obscured behind a wall of early morning mist, or was it smog?

This was the fifth consecutive year that I have participated in this event, though this year I was only running the half, and bad air seems to be a fixture.

Last year, a runner collapsed and later died while trying to complete a race held on one of Hong Kong's most polluted days.

"The air feels thick, I'm finding it hard to breathe," one runner said about 4 km into last Sunday's run, when the pollution reading stood between medium and high.

The runners' booklet had an unusual entry this year, advising participants to stay alert for public announcements on the air pollution index. But it still failed to put people off.

A record 43,000 people registered, up from just over 1,000 in 1997. More than 6,200 required medical treatment and 35 had been taken to hospital by the end of Sunday. A 28-year-old man was still in critical condition.

The bulk of the 42-km course is an expressway along the Kwai Chung container terminal, meaning little spectator participation for much of the race.

But organizers have stuck faithfully to the same course for years as it takes in the famous Tsing Ma Bridge and Ting Kau Bridge -- two impressive landmarks, but *only if they can be seen.*


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## hkskyline (Sep 13, 2002)

What date is that article from? If they've paid attention all summer, they should've noticed clear and smog-free skies everyday.


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## EricIsHim (Jun 16, 2003)

SmellyHongKongAir said:


> HONG KONG (Reuters) ...Hong Kong's Standard Chartered Marathon....





hkskyline said:


> What date is that article from? If they've paid attention all summer, they should've noticed clear and smog-free skies everyday.


The Marathon was held on March 4. So the article must been written in the week followed in March. It's has been quite a while back from now now.


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## superchan7 (Jan 21, 2004)

I heard the government took some credit for the splendid summer air, but much more needs to be done in Hong Kong. It's a very wasteful city to begin with and is awfully behind in recycling and other environmentally friendly programs. The campaign against plastic bags is a late but worthwhile start.


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## hkskyline (Sep 13, 2002)

The best way to tackle the smog is to force local investors to put in filters in their mainland factories. But that will take a lot of coordination on both sides of the border to make the plan work.


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## gladisimo (Dec 11, 2006)

Remember that humid air is hard to breath in general as well (depends on how acclimated you are) I find HK's air fine, as I go on a bike ride every year during the summer, and I have no problems breathing.

And I'm no hardcore athlete either.


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## EricIsHim (Jun 16, 2003)

*Investors `not put off' by bad air*

Thursday, September 06, 2007

Foreign investors have not been put off by reports of Hong Kong's declining air quality, an adviser to the Sustainable Development Council said yesterday.

He was responding to a recent environmental report by the American Chamber of Commerce which said overseas professionals were refusing to relocate to Hong Kong because of the poor air quality.

The report also said 57 percent of the chamber's 89 members would probably invest more money elsewhere.

But the council's subcommittee chairman Otto Poon Lok-to said more multinational companies were moving their headquarters to Hong Kong.

According to InvestHK, 1,228 companies set up regional headquarters in Hong Kong last year, a 5 percent increase compared with 2005.

Poon said the Amcham report may be correct with regard to its own members but did not reflect the whole picture of foreign investment.

Despite positive investment trends, Poon agreed the problem of poor air quality was one that had to be tackled. "Whether or not foreign investment is discouraged, we should work harder to improve our air quality," he said.

The council sent out public questionnaires in June on air quality and other matters.

Poon said since then three public forums have been held and 6,300 replies from the public had been received in the consultation which ends in October.

SCARLETT CHIANG


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