哈囉 – here you’ll find posts related to Hong Kong. That includes the territory, the culture, business, creativity and history. I lived and travelled to Hong Kong a number of times, so sometimes the content can be quite random.
In addition, I have long loved Cantonese culture and cuisine, so these might make more appearances on this category. I am saddened by the decline in the film and music production sectors.
I tend to avoid discussing local politics, and the external influence of China’s interference in said politics beyond how it relates to business and consumer behaviour in its broadest context.
Often posts that appear in this category will appear in other categories as well. So if Apple Daily launched a new ad format that I thought was particularly notable that might appear in branding as well as Hong Kong.
If there are subjects that you think would fit with this category of the blog, feel free to let me know by leaving a comment in the ‘Get in touch’ section of this blog here.
Æon Flux’s surprisingly modern take on privacy and surveillance. | Slate – Æon Flux was a name that I hadn’t heard in at least a decade. I remember when it came out as I enjoyed cable TV in our student house. It fitted in with the wider cyber culture. The big beats and brash gravity defying visuals were everywhere from WipeOut to anime. The media was tech artefacts from a future counter-culture.
Macromedia Director and Flash produced animated video hardwired straight into our cortex. It was psychedelia but not as it had been experienced before. Asian animated and real world films weren’t mainstream but serious culture.
Æon Flux & The Matrix
The series came out in the early 1990s as part of a series of experimental animation on MTV called Liquid Television. It came out before The Matrix, yet drew from many similar influences:
Cyberpunk
Biopunk
Anime
Asian ‘gun fu’ action films
European comics in particular the space opera works of Möbius, Mézières & Christin. You can also see the influence that Chung had working with Ralph Bakshi on his fantasy animation
Gnostic beliefs
In another Matrix link; Æon Flux creator Peter Chung (피터 정) went on to create a segment for the Wachowskis’ The Animatrix which told part of the back story of The Matrix quadrology.
Privacy and the surveillance state
Each episode saw a conflict play out between an anarchic city and its authoritarian rival. Flux was an assassin from the anarchic city on undercover missions.
The animated series had been released on VHS, DVD and UMD – the Sony Playstation Portable (PSP) disk media that was the ultimate manifestation of cyberpunk storage. For some reason, it hasn’t been released on Blu-Ray yet.
It was truly transmedia with computer games and graphic novels to complement the animated series. Eventually Hollywood did a live action version that was vaguely related to the original Æon Flux. The original was too difficult and avant garde to be a Hollywood franchise, which is probably why the animated version has slipped back out of view.
Given that Æon Flux was influenced by cyberpunk was inevitably seen as a prescient take on privacy and the surveillance state.
Consumer behaviour
Taking Affection Back | No Mercy / No Malice – some interesting and intractable problems in society revolving around how men are set up for failure. Contrast the diagnosis with this article: The Great Feminization of the American University | City Journal – Female students and administrators often exist in a co-dependent relationship, united by the concepts of victim identity and of trauma. For university females, there is not, apparently, strength in numbers. The more females’ ranks increase, the more we hear about a mass nervous breakdown on campus. Female students disproportionately patronize the burgeoning university wellness centers, massage therapies, relaxation oases, calming corners, and healing circles. Another newly installed female college president, Dartmouth’s Sian Leah Beilock, claims that the two “most pressing challenges of our time” are the “mental crisis among young people” and climate change. College institutions “really have a part to play in how we support students” suffering from that mental health crisis – correlation and causality aren’t the same thing
Why social class is advertising’s biggest diversity blind spot | Advertising | Campaign Asia – Social class might bring up antiquated ideas of British snobbery, but it exists everywhere. In Asia, social class is very pronounced. From obscenely wealthy ‘Crazy Rich Asian’ types, to a much reported on ‘rising middle class’, and a majority who are working class or live in poverty. The pandemic certainly brought class differences in Asia into sharp focus. Yet, despite making up the majority in society, advertising often fails to represent working class people. And when adverts do feature working class people, they usually perpetuate class-based stereotypes. Instead, the advertising industry is obsessed with targeting middle-class 18 to 34-year-olds, resulting in advertisements that seem to overlook the genuine diversity of society and instead mirror adland’s own demographic.
話題のChatGPTをLINEで使える「AIチャットくん」リリースから3日で20万登録突破 | みんなの便利な使用例を紹介 #AIチャットくん｜株式会社piconのプレスリリース – LINE adds ChatGPT gains 200,000 users in 3 days. ChatGPT speaks and understands Japanese, but uptake in Japan has been hampered, apparently, because you need to speak English to sign up. Line is the dominant messaging platform in Japan, and last week they added ChatGPT. You just add “AI Chat-kun” as a friend and start chatting. Up to five messages per day are free, and you can upgrade to unlimited messages for ¥680/month (about $5).
The Daring Ruse That Exposed China’s Campaign to Steal American Secrets – The New York Times – China publicly denies engaging in economic espionage, Chinese officials will indirectly acknowledge behind closed doors that the theft of intellectual property from overseas is state policy. James Lewis, a former diplomat now at the Center for Strategic and International Studies in Washington, recalls participating in a meeting in 2014 or so at which Chinese and American government representatives, including an officer from the People’s Liberation Army, discussed the subject. “An assistant secretary from the U.S. Department of Defense was explaining: Look, spying is OK — we spy, you spy, everybody spies, but it’s for political and military purposes,” Lewis recounted for me. “It’s for national security. What we object to is your economic espionage. And a senior P.L.A. colonel said: Well, wait. We don’t draw the line between national security and economic espionage the way you do. Anything that builds our economy is good for our national security.” The U.S. government’s response increasingly appears to be a mirror image of the Chinese perspective: In the view of U.S. officials, the threat posed to America’s economic interests by Chinese espionage is a threat to American national security.
Dow said it was recycling our shoes. We found them in Indonesia | Reuters – Reuters put trackers in usable secondhand shoes to see where they would end up. The main gist of the story is that Dow recycling effort was a failure, which is also embarrassing for their partner the Singapore government.
The idea was the sneakers would be made into playground surfaces. Reuters seems to have stopped investigating the story of Dow recycling shoes, but I was left with more questions about Dow recycling than answers from the Reuters report:
Were some of the shoes more distressed than others?
Do Reuters know what happens to unwearable sneakers that enter the Dow recycling process?
Is it more ethical to sell on lightly used shoes as affordable footwear to Indonesians or recycle them regardless? Reuters doesn’t have an answer to this issue
UK struggles with transition to manufacturing electric cars | Financial Times – foreign carmakers’ core concern is that Britain’s reputation as a stable and pragmatic place in which to manufacture vehicles has been shattered, initially by the 2016 Brexit vote, and more recently by last year’s political turmoil at Westminster. “They are asking whether the UK is a stable partner,” said one person close to the Japanese companies. – Brixiteer economic expert Patrick Minford openly discussed the demise of the car manufacturing industry
Women and ethnic minorities overrepresented in advertising industry, finds report – Women and ethnic minorities are now overrepresented in the UK advertising industry following a decades-long push to improve diversity, according to a new survey. A 2022 census found that an estimated 55pc of employees in the sector were women, compared to 45pc who were men. That was after the number of women increased from an estimated 11,600 to 14,400, an increase of 24pc, the Institute of Practitioners in Advertising (IPA) said. At the same time, the proportion of non-white employees increased by almost one third to 24pc, compared to 18pc a year earlier. Women made up 51pc of the population in England and Wales in 2021, according to the Office for National Statistics, while non-white ethnic groups comprised about 18pc. In London, where most of the UK’s advertising industry is concentrated, non-white ethnic groups represent roughly 46pc of the population. The IPA said there was more work to do on diversity, as women still only get just over one third of executive jobs in the ad industry, while non-white individuals only occupy 11pc of roles. – Daily Telegraph on how it feels that ‘woke’ addend risks becoming ‘out of touch’ with the British public, but doesn’t manage to make its argument very well.
Walt Disney vs Ron DeSantis: who really won the ‘Don’t Say Gay’ dust-up? | Financial Times – Instead of candidates with backgrounds in economic development or tourism, he packed the board with political allies. Two of them are leading lights in the culture wars that have helped DeSantis build a national profile ahead of a presumed run for the 2024 Republican presidential nomination. Among them is Bridget Ziegler, co-founder of the conservative Moms for Liberty group and a champion of Florida’s Parental Rights in Education law, dubbed “Don’t Say Gay” – Disneyland Florida is pretty screwed
Political theorist and author Francis Fukuyama wrote one of the mis-understood books of the late 20th century. The End of History (And The Last Man) was written in 1989 and the title and Francis Fukuyama have been misquoted endlessly since.
At the 2020 Munich Security Conference Francis Fukuyama gave a talk about the book and what it actually meant from his perspective.
This one on tribalism on and populism is also very interesting.
Business
Great video on the history of HNA, which went under a mountain of debt and was unwound by the Chinese government.
HNA started off as Hainan Airlines before expanding internationally and across sectors.
Wokeness as mainline orthodoxy – Noahpinion – Musa al-Gharbi has a recent article with quite a bit of data showing that journalistic and academic attention to the topics of diversity, bias, privilege, and so on seems to have peaked, while “cancel culture” incidents have decreased on campuses and in corporations, and political opinions on various social issues have moderated a bit. Anecdotally, corporate interest in DEI seems to be waning as well. Other observers like Tyler Cowen have noticed the trend.
Luxury
Survey Finds Japanese People’s Dream Car Is a Lexus | Nippon.com – bad news for Mercedes & BMW. This isn’t about Japanese nationalism as Mercedes and BMW have enjoyed healthy sales in the country in the past. Much of this is about the massification of these brands and the decline in quality in comparison to the single-mindedness of Lexus engineers.
Marketing
The Drum | How Nestlé Is Using AI To Set Creative Rules For Its 15,000 Marketers – In 2021, Nestlé started to put all its creative through an AI platform that would rank ads based on their suitability to different online platforms and pull out the key elements that are required for maximum ROI. That process created a set of ’rules’ for successful campaigns and early tests generated transformational results, finding that ads that meet the new creative requirements generate a significantly higher return on ad spend. Now, Nestlé’s 15,000 marketers across 2,000 brands in 200 territories have to test the ads in the machine learning platform prior to rolling a campaign out – my biggest concern is that this becomes reductive in terms of creativity and self reinforcing rather than facilitating the picking of true winners. Secondly, I could see it over-indexing on brand activation rather than brand building spend and ultimately destroy value
Hong Kong Stock Market filing – the Company (China Renaissance Holdings – *added this for clarity) has been unable to contact Mr. Bao Fan (“Mr. Bao”), Chairman of the Board, Executive Director, Chief Executive Officer and the controlling shareholder of the Company. The Board is not aware of any information that indicates that Mr. Bao’s unavailability is or might be related to the business and/or operations of the Group which is continuing normally (PDF) – Bao Fan has been incommunicado for a number of days. He is not responding to messages. While its unusual and considered bad practice having the same person as chairman and CEO, in China its more common. So Bao’s dual role at China Renaissance Holdings isn’t unusual. But that is the least of the worries that western investors will have about China Renaissance Holdings at the moment.
Meituan delivery workers waiting for the food to be prepared
Some thoughts:
China Renaissance Holdings has been involved in funding some of China’s biggest technology companies including Didi (think of Lyft or Uber as a western analogue) and Meituan (Deliveroo, Doordash or Just Eat equivalent.
Didi in particular seems to have gained the wraith of the Chinese government. Some of this feels to be down to sexism due to the company having a connected female president Jean Liu. The party leans more toward the Andrew Tait school of feminism
Mr Bao Fan’s disappearance evoked memories of Jianhua Xiao and his company Tomorrow Holdings. Xiao was snatched and smuggled out of his apartment in the Four Seasons in Hong Kong back in 2017. Xiao for a few years all that people knew was that he was wheeled out of the hotel asleep in a wheelchair despite having a security team. He then spent a few years ‘helping‘ authorities unwind his business Tomorrow Holdings. Finally, he got sent to prison for 13 years with charges including embezzlement and fraud. If this happens with China Renaissance Holdings, or any of the prominent companies that it has as clients like Meituan there would be a shockwave, even through the most pro-China of foreign investors like Bridgewater Capital or Goldman Sachs
Bao Fan is one of several executives who were disappeared for a while. The most prominent executive who disappeared from the public eye was Jack Ma. Ma then stepped back from his businesses. If Bao steps back from China Renaissance Holdings, the Chinese tech sector will lose an investment rainmaker. China Renaissance Holdings maybe unwound or its assets handed over to state-owned banking institutions
What happens next will likely impact western sentiment towards Chinese investment in the short to medium turn, but financial institutions are still seduced by the ‘Chinese opportunity’. And the smart money this time might be wrong
Patriotic Alternative wasn’t a name familiar to me when I first heard about them instigating a riot in Liverpool on Saturday night. It doesn’t take that much to create a ruckus in some of the poorer areas of Liverpool.
I wasn’t particularly surprised by the burnt out police van; it sounds like a Merseyside Saturday night that went a bit out of control. That’s as Liverpudlian as a fried breakfast served in a ‘bin lid’ – a large white bun or bap large enough to contain bacon, sausage, a fried egg or two and brown sauce.
But there were aspects that did surprise me and all signs point to Patriotic Alternative. It’s a multi-cultural city, everyone has relatives abroad whether its extended Irish family, West Indians or deep connections within the Chinese diaspora. Which is why I was surprised that Patriotic Alternative managed to stir up so much trouble against an asylum hotel in the Knowsley area of Liverpool.
The city does have a certain degree of prejudice; primarily sectarianism. Its one of the few areas in England that has a marching season rather like Northern Ireland with an Orange Order parade held annual in Southport back when I lived up there. But Knowsley was something else. Patriotic Alternative managed to do something that I never thought was possible in cities like Liverpool or Bristol.
So reading about the event and the role of Patriotic Alternative in Dazed was an eye opener. It portrayed a city that I no longer recognised. Patriotic Alternative apparently organised the protest on a Telegram channel. What Dazed claim happened is that mainstream political statements and mainstream media coverage created an environment ripe for trouble makers like Patriotic Alternative.
According to Hope Not Hate, Patriotic Alternative shared members with prescribed far right organisation National Action. For an organisation that has a couple of hundred core members Patriotic Alternative has an outsized footprint. This footprint seems to be driven by the Patriotic Alternative Telegram channel with some 5,000 followers
Consumers in the 1970s on the changing nature of growing old, unfortunately attitudes and biases haven’t improved in the last 50 years.
Economics
US chip packaging firm Amkor closes its Shanghai plant for a week amid global market downturn | South China Morning Post – this is signalling a recession, as was AP shipments to Chinese smartphone brands stay in decline in 1Q23, says DIGITIMES Research – Fourth-quarter 2022 smartphone application processor (AP) shipments to China-based smartphone vendors amounted to 137 million units, plunging 24% from the prior quarter and 20.3% from the prior year, and will continue to experience a double-digit decline in the first quarter of 2023, according to figures from DIGITIMES Research’s latest report covering smartphone AP shipments. Because of shrinking demand and high smartphone inventory at the channel in both China and emerging markets, AP shipments to China-based smartphone vendors had already experienced on-year declines for five consecutive quarters
How China Fell In Love With Cheap Wine | Sixth Tone – reminds me of my time working on the Bordeaux wine marketing board as an account at the agency I worked for in Hong Kong. The work was focused on mainland China and promoted Bordeaux as a lifestyle brand for wine consumption rather than just gift giving
Massachusetts Democratic organ donation proposal sounds like prisoner organ harvesting. | Slate – Democratic state representatives Carlos González and Judith García introduced legislation that would allow incarcerated people to go home early—if they “donated” their organs. Specifically, the bill would “allow eligible incarcerated individuals to gain not less than 60 and not more than 365-day reduction in the length of their committed sentence” if they “donated bone marrow or organ(s).” Gonzalez argued that the bill was a step towards advancing racial equity in health care and making it easier for people of color to obtain transplants.
Hong Kong
The Hong Kong government must break its habit of relying on property developers | South China Morning Post – the article itself isn’t that interesting, but the author is. Regina Ip would be what the conservative party in the UK would call a big beast. She is a former minister level politician in the pro-China camp. Add to this the fact that despite mainland Chinese companies now outnumber local and foreign firms in Hong Kong and the economy is in decline. I expect Ip’s op-ed to be the tip of an iceberg of a shift in economic drivers that will occur sometime after John Lee leaves office. The clock is ticking on the big five families to diversify their wealth out of Hong Kong and China, following Jardines example to go into Indonesia might be a prudent start
Hong Kong reopens with post-Covid charm offensive | Financial Times – Johannes Hack, president of Hong Kong’s German Chamber of Commerce, who sits on a new task force to promote the city, said a “long-haul” effort to change business perceptions would have to go beyond plane ticket giveaways. “If you have relocated corporate functions to another place, half a year later you are probably not going to reverse the whole thing,” he said. “People who have moved to Singapore with their teen kids, there is no way they are going to do that again . . . They are not going to come back.” – feeds into the ‘its just another city in China now’ narrative
UK universities starting to lose allure for Chinese | News | The Times – well that’s screwed the Ponzi scheme that universities have engaged in via over-priced student accommodation real estate investments for reasons that aren’t exactly clear given their ownership structure and charters
Japanese fashion magazine Popteen ends physical version, switches to web installments instead – move to online only and moving away from monthly updates. Popteen ended its physical publishing as of February 1, 2023, with the February 2023 edition (released on December 28, 2022) being its last. web-based articles will be released on the first and the 15th of every month, known as “Popteen media”, and full editions of the fashion magazine will be updated a few times annually. The main reason for switching to the web edition was to make the magazine more accessible to middle and high-school students, who may not receive an allowance or be able to work part-time to afford physical copies of Popteen
Great video on microchip counterfeiting and recycling. The Japanese are doing some of the best work authenticating chips. Also if its bad for US defence contractors, just imagine how bad it will be for the sanctioned Russian defence sector.
Seeing for the Sightless – Luo, 26, suffers from congenital cataracts and is pursuing a degree in acupuncture and massage therapy at a college in Beijing. He needs help on the scales as there is no voice assistant function at the training center. On a mobile app called Be My Eyes (BME), he sends out a video call. Pointing his phone camera at the scales, he asks, “Hello, can you read the number for me, please?” A volunteer on the other end tells him, “91 kg.” Luo says thanks and hangs up. Usually, these exchanges only last a few seconds. Being tech savvy, Luo wrote a program back in high school to help the visually impaired memorize English vocabulary, something he himself struggled with. The app would randomly pick a word from a list he composed and he would spell it out after hearing the word. BME, developed by Hans Jørgen Wiberg, a visually impaired man from Denmark, drew Luo’s attention as soon as the Android version was available in China in 2017. Currently, there are 445,000 visually impaired users from all over the world and more than six million volunteers on BME.
Style
Adidas Tumbles as Losses From Its Kanye West Venture Pile Up – The New York Times – interesting how badly Ivy Park is doing and this on their business in China: Adidas in China: a brand seeking its redemption – In the second half of 2022, Adidas CEO Kasper Rorsted estimated losses of revenue of more than 35% in the Chinese market. He declared that such a violent drop was caused by some mistakes. For instance, the struggle of keeping up with the local brands, the failed recovery after the zero-covid policy, and the scandal of Xinjiang cotton.After the winter Olympics, the trend of Guochao, or the “national trend”, started to develop. More young Chinese consumers prefer buying local brands rather than western sportswear brands. In August 2022, the local firm, Anta, overtook Nike and became the biggest sportswear brand in China with a revenue of more than USD3.79 billion. Li-Ning, another Chinese firm, also registered revenue of USD1.76 billion against Adidas’ USD1.72 billion, pushing the German brand out of the podium. The zero-Covid policy has been a big problem for Adidas. In 2022, the company had to deal with closed shops and rising costs. In particular, the general lockdown which paralyzed China for the last few years resulted in the desegregation of the complex system of supply chains built up by the German brand. The disrupted supply chains cost Adidas a loss of USD427 million in the first quarter of 2022.
SMIC expects 10-12% revenue drop in 1Q23 | DigiTimes – China-based pure-play foundry Semiconductor Manufacturing International (SMIC) expects to post a revenue decline of 10-12% sequentially in the first quarter of 2023, with gross margin falling further to 19-21%.
MotherDuck: Big Data is Dead – Jordan Tigani spent ten years working on Google BigQuery, during which time he was surprised to learn that the median data storage size for regular customers was much less than 100GB. In this piece he argues that genuine Big Data solutions are relevant to a tiny fraction of companies, and there’s way more value in solving problems for everyone else. I’ve been talking about Datasette as a tool for solving “small data” problems for a while
