Category: Feature

Investment Tips: Where should investors put their money?

Where should we be putting our money during this period of record highs? Gafencu’s investment advisor Emrys Gould gives his two cents’ worth

Equity markets around the world are at record highs. The Hang Seng index is poised break the 29 000 barrier, and is at its highest in 10 years.  If we look east from Hong Kong, the Nikkei is pushing 21 year highs and the S&P is continuing to flirt with record highs. If we look west, the FTSE in the UK and the Dax in Germany are also at record highs.

What should investors do? At times like this many of us start getting a little edgy, “what goes up must come down” and all of that.

A fall’s going to come, they always do, the only question is when. The indications are it might be soon(ish). Central banks are starting to unwind the quantitative easing which pushed markets to such highs, the Fed is reasonably likely to hike rates again in December, and, linked to all of this the US dollar is set to start rising again. As it does, liquidity would be likely to flow out of emerging markets and back to the US, hurting valuations.

The big question of course, is when is this going to happen. The Fed has been raising rates all year, and we’ve not seen a correction yet.

If you know the answer, then what to do with your money is fairly easy. Hold plenty of cash, and if you really back yourself, then in Hong Kong since March of this year there have been a few reverse ETFs in the marketplace. These offer returns inverse to the performance of the Hang Seng index, so buy them just before the market plunges, and you’re in the money.

However, knowing when a market has reached its peak is notoriously near impossible to predict.  Even if you’re absolutely convinced you’re right, the old saw attributed to John Maynard Keynes comes to mind: “the market can remain irrational for a lot longer than you can remain solvent.”

So what do you do if you’ve just received a lump of cash and want to invest it? There is no point putting it in a bank when interest rates are as they are, and equity markets probably still have a few months more ooomf in them which you wouldn’t want to miss. There are some bond funds out there which should do OK when big investors start getting risk averse, but no one would describe them as exciting. Gold? Well maybe, but it’s not that big a jump from buying a sizeable chunk of gold, to buying tinned food and fortifying a shed in the woods, and we’re not there yet.

The answer is probably to keep buying equities. It’s a cliché, but in the US, if you invested in the S&P 500 at its peak in 2008, and held on to everything you owned, you’d be back in profit by 2013, and well ahead by now. The same isn’t quite as true in Hong Kong, and since we’re not quite at a peak yet, then the thing to do is to keep buying. The question is what.

If you’re Warren Buffet, then keep doing what you’ve been doing: finding companies whose strong fundamentals aren’t reflected in their price, and investing in them for the long term. But for those of us who have had less success at picking individual stocks, it is rather more a case of finding sectors or areas that might outperform the market as it peaks. 

There are a few options. One thing to consider if you think that rising interest rates are going to put an end to a stock market boom are those few sectors that do well in a rising rate environment.

Banks would be one option, as when rates go up, they can get higher returns on any deposits they have sitting around in savings accounts that they haven’t been able to lend out more profitably. This is particularly true for the big Hong Kong banks. HSBC and Bank of China Hong Kong have vast lazy balance sheets, and higher interest rates go straight to their bottom line. The case is different for those mid and small sized mainland banks who have invested more than 100 per cent of their deposits in whatever bit of the Chinese shadow banking system is in fashion at the moment, but a peaking market isn’t the only reason to steer clear of those.

What about the stocks to avoid? Research by China Constriction Bank International Securities found that tech companies in Asia like Japan have fallen by an average of 25 per cent in the six month period either side of a market peak. The big Hong Kong listed tech companies (really we mean Tencent) might be all right with most analysts still saying buy, but the handful of smaller Chinese tech firms that Charles Li and the Hong Kong exchange managed to lure to Hong Kong rather than the Nasdaq are worth steering clear of.

Other poor performers by CCBIS’ analysis were materials and industrials, which also dropped by high single digits. The best performers, along with financials were energy and real estate stocks.

Energy certainly sounds like a reasonable bet at the moment when it comes to companies listed in Hong Kong with the Belt and Road Initiative likely to provide long term support for both new and old mainland energy firms. The Chinese authorities’ hope to be a green energy superpower continues to be a secular boost for newer forms of energy.

CCBIS’ advice seems sensible. Holding financials, energy and real estate as the market peaks looks like a reasonable thing to do.

Text: Emrys Gould

For the full article, please check out Gafencu’s November issue or the Gafencu app. Download the app from the Google Play Store or Apple App Store

The Future is Female: Hong Kong’s Gender Imbalance

Women all over the world love to complain about the dating scene in their city, but if you’ve ever been a single lady in Hong Kong, the struggle is real. This month, our Features Editor Julienne Raboca digs up the cold, hard facts and figures that many have felt but few have quantified.

Last July, the government’s Census and Statistics Department (Censtatd) published the 2017 Edition of their data on Women and Men in Hong Kong. Their findings reveal a skewed gender demographic, with 852 males per 1,000 females in the city. That means there are well over half a million women than men in a populace of 7.34 million.

“In particular, there have been more women than men in the age group 20-39 since 1996 and also in the 40-44 range since 2001,” the report goes.

The gender imbalance arises from three main causes, according to Professor Paul Yip, Chair of Population Health at The University of Hong Kong (HKU). “The first is migration and reunion – male immigrants bringing their spouses from mainland China. The second pertains to life expectancy – women in Hong Kong live longer. Finally you have the influx of domestic helpers, mostly female.”

However, not counting foreign domestic helpers, women still outnumber men by 7.5%. “It reflects a public health issue,” posits Professor John Bacon-Shone, Director of HKU’s Social Sciences Research Centre. “The numbers are partly an indication of males’ worse habits.” He cites the higher occurrence of male smokers as an example.

“Any imbalance disturbs the human ecology,” says Yip. “A city that can provide a healthy environment to set up a family reflects a stable ecosystem. When you look at societies with more households and couples, poverty is lower overall, compared to those with more singles.”

Yip also notes that single people are freer to move and travel, which makes them less dependable compared to family units.

“Men’s working participation rate is always higher,” adds Yip. “So when you have more women, the labour force will be affected, impacting Hong Kong’s economy.”

However, much is set to change in a silver lining that feminists would cheer. “If women remain single, they need to support themselves financially,” says Yip. “The educational attainment level is also improving – women are becoming more independent and employable.”

Let’s hope the recalibration translates into wage equalization as well; currently, men make HK$4,000 more than women per month on average.

Meanwhile, on the marriage front, Yip observes a female emigration. “Some women are leaving Hong Kong to find husbands,” he says. “The few hundreds to few thousands of women are not sitting here waiting to get married.”

“Hong Kong’s dating scene is tough,” says Nancy, who asked Gafencu not to use her real name. “It’s a very transient place, and it’s tough to find someone you have chemistry with but who also wants to settle down.”

Now in her early thirties, Nancy moved five years ago from London to Hong Kong – where her father was born. “The ratio is real,” she says. “My guy friends say it’s easier for them to meet women, but they have a lot of single girl friends who have trouble meeting the right guy.

“Girls do have a harder time because of the imbalance on top of the economic pressure to find someone who is financially stable – it’s a very expensive city. More women are choosing not to settle.”

Nancy, whose background is in law and finance, says she didn’t feel too much pressure in her twenties, but as she approached her thirties, her parents got particularly anxious.

“My mum tried to pressure me into meeting this divorced single man in his mid-40s with a 7-year-old daughter,” she says. “It was pretty humiliating. The man had a questionable career and has lived in a town with less than 1,000 people most of his life. In his defence, he was nice, but we were worlds apart.”

For the past three years, Nancy says she stepped back from dating as she changed track from finance to art. Upon a friend’s encouragement, she recently downloaded the dating app Coffee Meets Bagel.

“The guys have been nice so far,” she relents despite early hesitations due to the stigma and horror stories preceding apps like Tinder.

We ask her if she’s ready to meet “The One”. “I don’t really pressure myself,” she says. “If I meet someone along the way doing what I love and living the life I want to live, then fantastic. If not, it doesn’t matter so much.

“I fear being trapped in a loveless relationship more than being alone,” she continues. “Being in a relationship doesn’t guarantee happiness. It should not be seen as a superior status to ‘being single’.”

Text: Julienne C. Raboca

For the full article, please check out the latest issue of Gafencu’s print magazine or the PDF version on the Gafencu app. Download the app from the Google Play Store or Apple App Store

Remembering Sir David Tang: Entrepreneur, raconteur and all-around Renaissance Man

In 1996, Australian journalist Clive James made the (then relatively laborious) voyage from Hong Kong Island to a quiet seaside villa in Sai Kung. His mission: an audience with Sir David Tang, a prominent Hong Kong businessman and founder of the China Club.

In those days, the 1997 handover loomed large in the minds of the city’s European expatriates, and the event was a focal point in James’ Postcard From Hong Kong documentary. To that end, he sought authoritative commentary on Sino-British relations from the back channel diplomat equally at home in both worlds.

When pressed on the supposedly irreconcilable differences between English-style governance and a resurgent Beijing, Tang simply replied, “Being pro-China doesn’t mean that you’re anti-British, nor if you’re pro-British that you’re anti-Chinese. They are not mutually exclusive.”

That soundbite – so often sidelined in favour of uproarious morsels from his Agony Uncle column in the Financial Times – encapsulated the cultural agility with which this raconteur navigated life, business and politics.

Locally, the Tang lineage is well documented. His grandfather, the legendary Tang Shiu-Kin, founded the Kowloon Motor Bus Company in 1933. Tang later emigrated to Britain in the 1960s and began his formal education at the Perse School, where he demonstrated an affinity for mathematics and languages (French, Latin and Russian).

Beginning in the early ‘80s, Tang embarked on a colourful career. After practicing law in the employ of his grandfather he engaged in international oil exploration under the mentorship of English swashbuckler Algie Cluff.


He later became the exclusive distributor of Habanos S.A. cigars in Hong Kong, all the while founding numerous autobiographical businesses – namely The China Club and Shanghai Tang – that have gone on to achieve institutional status. The latter enterprises, particularly throughout the 1990s, were instrumental in enriching Hong Kong’s cultural capital: birthing a fantastical visual style that evoked various artistic traditions, all of Chinese heritage.

Under the guise of high-concept chic, foreigners were – perhaps for the first time in centuries – reacquainted with the notion of something “made by Chinese”. David Dodwell, executive director at the APEC Trade Policy Group, says this was a purposeful rebuke to the “tawdry mediocrity of ‘Made in China’”. “‘Made by Chinese’ was something to be proud of, and it imbued the inspiration for Shanghai Tang,” Dodwell says.

Tang’s legacy of fearless outspokenness extends beyond the business world. Much fanfare has surrounded his too-numerous-to-name philanthropic endeavours: fundraising for the Hong Kong Cancer Fund; founding the Hong Kong Downs Syndrome Association; and patronage of the Hong Kong Youth Arts Foundation. But it is his contribution to Hong Kong’s socio-political discourse that illustrates a man concerned with more than pecuniary self-interest.

In his article The fine art of cultural know-how, written over a decade ago, Tang predicted the difficulties that today grip development of the West Kowloon Cultural District (WKCD). Tang likened the advisory group initially responsible for consulting on the construction of WKCD museum facilities to “people [who] do not live in the real world… those who believe that by just learning one bar a day on the piano, they can in 17 months play the whole of Rach Three.”

Measuring 40ha in area, the WKCD has held only one notable public exhibition to date while first phase building works suffer continuous delays. It was a criticism levelled in the spirit of genuine concern: evident in his subsequent calls for creative leadership sired within the totemic institutions of the Tate Modern and Guggenheim.

“We are smart,” Tang wrote, “but no matter how smart we are, we are in nappies in this business, and need to trace through that scimitar curve of learning.”

It seems a disservice to reduce a man such as Sir David Tang, KBE to a pithy anecdote. After all, he carried more legendary party lines in his breast pocket than most comedy writers think up in a lifetime. In addition to his writings, which will preserve his spirit for many years to come, he is survived by his wife and two children.

Text: Randalph Lai

For the full article, please check out the latest issue of Gafencu’s print magazine or the PDF version on the Gafencu app. Download the app from the Google Play Store or Apple App Store

 

 

South Island Renaissance: Wong Chuk Hang, the latest addition to HK’s upcoming cool locales

Now that HK Island’s hidden gem Wong Chuk Hang has been ‘discovered’, could it rival K Town’s hipster cred or Central’s art scene?

From the outside, the Yally Industrial Building in Wong Chuk Hang wouldn’t win any awards for architectural design. Nor is it what you’d call inviting.

The dead rose-coloured paint is peeling, and the “A” is missing from “INDUSTRIAL”, having been uprooted long ago – much like many of the blue-collar shopkeepers formerly housed there. As some of these businesses move further inland in search of cheaper rent, creative industries are moving in, lured by the prospect of landing a large loft at a fraction of the cost they’d pay in Central. Call it gentrification or progress, but there’s no ignoring the winds of change in Wong Chuk Hang.

The austere facade of the Yally Building belies the chic businesses housed within: a hip eatery that serves beef tartare and compressed watermelon salad (3/3rds); a luxury “travel salon” bedecked with African masks and floor-to- ceiling bookshelves (Blueflower); and a renowned art gallery that sells works to leading New York City museums and the Louvre Abu Dhabi (Rossi & Rossi).

In some ways, this building is a microcosm of Wong Chuk Hang, and other warehouses in the district tell a similar story. Gallery owner Dominique Perregaux, who founded the South Island Cultural District (SICD) organisation, says the loading bay entrances, cargo lifts and lack of signage can intimidate newcomers who don’t know where to look. But more often than not, the industrial front is what makes the sophisticated spaces inside such a pleasant surprise.

“There’s a kind of hostility to the neighbourhood… Industrial buildings have rules,” Perregaux says. “Now with [the onset of commercial development] and the contrast between industrial buildings and glass buildings, it starts to give you a post-modern feel which makes it quite interesting.”

Much of the area is still zoned as industrial land, but that is slowly starting to change. A shopping mall and 10 hotels are planned for the area, according to Perregaux, and the opening of the MTR’s South Island Line last December heralded a new era for the district.

Wong Chuk Hang is already home to more than two dozen art galleries, fine dining restaurants, craft beer breweries, an artsy warehouse-turned-hotel (Ovolo Southside), international media (CNN is moving its headquarters there) and the offices of major fashion brands (most notably Lane Crawford).

 

Chef and Blueflower travel agency founder Andrea Oschetti also loves the diversity and dynamism of the district.

“People here dress in the latest fashions not even found in Milan, right next to people with full-body tattoos moving boxes around. It’s just astonishing,” he says. “Nowhere in the world is like this.”

The district’s growth has some wondering whether it will follow the example set by Kennedy Town, which, in terms of its nightlife and dining scene, went from zero to hero in just a few short years. After hours, Wong Chuk Hang can be surprisingly lively if you know where to go. Some of the city’s leading electronic events – organised by WM

Records and Rewind – have been hosted in the cavernous spaces of the district’s industrial warehouses.

Art dealers in the area, however, have a different goal in mind: to put Wong Chuk Hang on the map as the city’s art district. “We really expect an exodus of Central galleries,” Perregaux says. He envisions Wong Chuk Hang becoming something of a 798 (Beijing’s art district) or a Chelsea (in New York) – albeit on a much smaller scale. It hasn’t happened yet, but he’s confident it will… any day now.

“In the next few years, if you don’t want to spend a million per month and you don’t want a shoebox space in Central, then you’ll be here,” he says. “We get a few galleries from overseas visiting the neighbourhood each month and enquiring [about the space]. The fact that we have the contrast now between industrial and glass buildings – the cleanness and sleekness that you have in Central – gives us a strong advantage as well.”

The South Island Cultural District’s collective includes 26 art galleries which are hand-selected for quality control. When Perregaux first opened a branch of his Art Statements gallery in Wong Chuk Hang in 2013, there were only two other galleries in the district. Rossi & Rossi, Blindspot Gallery, Pekin Fine Arts and Spring Workshop (the latter of which is set to close at the end of this year) were among the earliest pioneers of the area’s art scene.

The SICD also hosts an annual South Island Art Day, which has seen a steady increase in interest and attendance. The free event will be held this month (14 October from 12pm to 8pm), and will feature exhibition openings, performances, art talks and guided tours.

In order to create an art district, though, the area must attract other businesses – restaurants, shops and bars – to make it worthwhile for people to spend a Saturday there. That is slowly starting to happen. Several private kitchens helmed by award-winning chefs are now situated in the area, including Pomegranate Kitchen, Dine Art and Oschetti’s Italian restaurant, Cuore.

Oschetti’s other business, Blueflower, hosts monthly members-only “travel salon” parties featuring TED-style talks with seasoned travellers, which unfold over a meal specially prepared by Oschetti himself. The intimate atmosphere allows diners to get to know the archaeologist or mountaineer who happens to be speaking that evening, and the goal of the series is both to inspire and educate.

 

Ovolo Southside’s chic rooftop bar, Above, is another staple of Wong Chuk Hang’s social scene. When the Southside branch opened in 2014, it was the first warehouse in Hong Kong to be repurposed into a hotel. Renovations are now underway in the lobby, and the hotel’s restaurant (formerly Cirqle) will be revamped with a new name, concept and menu.

With two craft beer businesses within its borders, most notably Young Master Brewery, we could see Wong Chuk Hang becoming something of a boho Soho. Offering brews like the cha chaan teng gose, an adult take on Hong Kong’s salted lime soda, Young Master Brewery has become a favourite in the city.

The HK Walls art initiative has also hipsterised the district’s streets through a series of colourful murals. It’s hard to imagine what Wong Chuk Hang might look like in a few years, but the area is clearly on the up and up. While “WCH” is certainly no match for LKF’s nightlife, one could easily while away an afternoon exploring the hip industrial buildings that lend the district its rugged charm.

Text: Emily Petsko

Flapper Pad: A ‘20s-inspired penthouse for the modern-day Gatsby

For a home that derives its design inspiration from the roaring ’20s and ‘30s, this Shenzhen penthouse looks remarkably modern.

Shanghai-based interior design firm Dariel Studio took vintage French features and turned them on their head to create a home that feels at once funky and classic. Helmed by award-winning, Parisian-born designer Thomas Dariel, the firm has worked with major luxury brands including Hermès, Starwood and Golden Tulip.

Since its founding in 2006, the studio has developed an impressive portfolio of over 60 projects throughout China, with properties in Shanghai, Sheshan, Zhouzhuang and Beijing.

The Shenzhen penthouse, located on the top floor of the Yinhu Lanshan residential compound, is one of Dariel’s more recent projects. The building itself is reminiscent of Chicago-style architecture, while the interior design pays homage to the Art Deco movement of 1920s-era France. Completed last year, the penthouse covers a comfortable 860sq.m of space.

Fan-shaped details, linear patterns and gold accents are the most obvious manifestations of Art Deco design, but these classic references have been updated for the 21st century.

Modern touches are evident in Dariel’s choice of geometric patterns, accent colours and contemporary furniture. Surrealist and avant-garde influences are also added to the mix, courtesy of perspective-shifting artworks by notable names such as Kay Sage, Francis Picabia and Ettore Sottsass.

Minimalist yet stylish lighting fixtures take a variety of forms. Bell-shaped lamps suspended from the ceiling lend a soft hue to the surrounding space, while brighter, globular bulbs illuminate dark corners throughout the penthouse. The dining room features a constellation-like “chandelier” which would not seem out of place in a trendy warehouse-turned-art-gallery.

Staying true to Dariel’s modern Art Deco vision, the dining area’s design does not deviate from the rest of the space. Neutral colours, clean lines and a sense of calmness flow through the open area. Floor-to-ceiling windows offer diners a stellar view, making it the perfect place for a romantic dinner for two or a casual party with close friends.

The entire penthouse is awash in neutral and earthy tones, marking a departure from the flashy styles and vibrant colours that characterise other projects undertaken by Dariel. However, the home’s seamless fusion of disparate design elements is a bold statement in its own right.

The interior is complemented by an equally beautiful exterior, with surroundings so serene that an air of tranquillity instantly envelops the space. Located on the highest floor of a residential tower, the penthouse is far removed from mundane nuisances like noise pollution, which Shenzhen is no stranger to.

Dariel was intent on ensuring that his creative brainchild would reflect peace and quiet. This is expressed through spaces that flow into each other; the repetition and symmetry of graphic lines; and the green and blue shades that match the world beyond the windows, creating a sense of atmospheric calmness.

Serenity isn’t the only element that makes this lustrous place a small paradise to live in. Other special touches – including high-end technology, sophisticated lighting and furniture from leading European designers – make this penthouse a total package and give credence to Dariel’s influence in the interior design world.

For this reason, Dariel Studio has amassed a number of high-end clients including entrepreneurs, luxury brands and international corporations. The studio places an emphasis on original and creative designs – no doubt a challenging feat in an era when legions of interior designers are producing top-notch work. The competition doesn’t faze Dariel, though.

“I think my European background is a good thing, but my experience in China is much more important,” he says. “Honestly, I don’t feel afraid of or mad at my competitors, because they’re kind of an engine for me to push myself to constantly get better and better.”

“The biggest challenge for me and my team is to stay innovative and creative all the time,” he adds.

With this creative energy infusing the Shenzhen penthouse, it’s safe to assume its homeowners are equally inspired.

Text: Sadia Lima
Photos: Derryck Menere

Global Warning: In the wake of Hato and Harvey, weather is a hot-button issue

With the world in turmoil, is the planet telling humanity, ‘Enough is enough’?

For many, the signs are clear. Hurricanes have battered the US as never before, while unprecedented floods have wreaked havoc in India, Bangladesh and Nepal, killing more than 1,000 and leaving millions homeless and hungry.

Meanwhile, wildfires of unprecedented intensity have scorched their way across huge swathes of the US, Canada, Greece, Portugal, Croatia, Greenland, Russia, Algeria and Tunisia. All the while, a dozen European countries baked and burnt as Lucifer, a suitably diabolically-named heatwave, sent temperatures soaring well beyond annual norms.

The weathermageddon was so severe that the massive floods and mudslides that devastated Sierra Leone and Niger went largely unreported, while the earthquakes that shook Japan and Mexico, as well as the severe drought that blighted the Ethiopian harvest, made few headlines beyond the local news.

Asia, too, was far from exempt. Flooding struck the south, and Hato proved to be one of the most destructive typhoons to make landfall on China for a generation or two.

The upshot of all of this? It’s no longer just the cranks and Gaia evangelists who are predicting a planetwide catastrophe. Indeed, an ominous silence emanates from the climate change deniers, with many of them now having firsthand experience of what happens when a global eco-system pushes back.

Speaking in the wake of recent events, Antonio Guterres, the United Nations General Secretary said, “Since 1970, the number of natural disasters has nearly quadrupled. This year, the United States, together with China and India, have experienced more disasters in any one year since 1995. On top of that, in the last year alone, 24.2 million people were displaced by sudden onset disasters – three times as many as by conflict or violence.”

It’s hard to dismiss the situation we find ourselves in. It was only on 23 August this year, after all, that Typhoon Hato churned its way through Hong Kong, Macau and Southern China, leaving 16 dead in its wake. When the signal 10 typhoon warning was hoisted – for only the 15th time since 1946 – it heralded not only incoming physical danger, but also a massive financial blow, with the city losing billions of dollars as the day’s trading was cancelled and workers were confined to their homes.

Despite another lesser storm – Pakhar – hitting the region just four days later, businesses and residents may take some comfort knowing that, according to the Hong Kong Observatory at least, the city may face fewer typhoons in the long-term. These adverse weather conditions, however, may strike with more intensity.

Outlining this change, Tong Hang-wai, one of the Observatory’s scientific officers, said, “It is highly likely that the global frequency of tropical cyclones will either decrease or remain essentially unchanged. Given that the overall climate is likely to be hotter, however, the warmer ocean will provide a higher level of moisture and energy, which will, in turn, fuel tropical cyclones. Overall, the mean sea level around Hong Kong will continue to rise, increasing the chance of extreme sea levels and heightening the threat of storm surge.”

While the term “storm surge” may sound innocuous when compared to “typhoon” or “hurricane”, such phenomena can actually do far more damage. Any combination of low atmospheric pressure and high winds can act to elevate the sea level and create monstrous tides, sometimes in excess of 8.5m in height.

This summer, another US weather record was broken, with two category four hurricanes making landfall across the country, the first recorded instance of two such occurrences in the same year. The first to arrive, on 25 August, was Hurricane Harvey, which saw Houston – the fourth most populous US city – flooded out, as a whole year’s worth of rain fell in a matter of days, leaving entire districts swamped and claiming the lives of 70 local residents.

With the post-Harvey disaster recovery process still underway, Hurricane Irma made landfall on 10 September. At one point swelling to the size of France, this second storm broke all records for strength and sustained wind speed, with its fury flattening villages in the Caribbean and leaving much of Florida submerged.

In perhaps the clearest sign yet of the global dysfunction of our weather patterns, while half the world dealt with an unprecedented deluge of rain, the other half baked in a prolonged drought, with water shortages and wildfires threatening crops and livestock. In parts of the US and Canada, a veritable inferno raged over the summer, destroying millions of acres of land and sometimes burning for months at a time.

In Portugal it was a similar story, with more than 60 people dying in the blazes that swept across the country in June. In Chile, meanwhile, its president called for calm as “the greatest forest disaster in our history” seared its way across the country.

While some countries burnt, others shrivelled in the unrelenting, unseasonal heat. In Ethiopia, 2 million animals died in the country’s long drought, while 8 million of its citizens faced an uncertain fate.

For many, it is a mystery just how these conflicting weather patterns can occur simultaneously. Two researchers – Friederike Otto, deputy director of Oxford University’s Environmental Change Institute, and Maarten van Aalst, a director of Columbia University’s Red Cross Red Crescent Climate Centre – believe they may have the answer.

In an article jointly published earlier this year, the two concluded, “The warmer atmosphere can hold more water vapour, leading to extreme rainfall. At the same time, the higher concentration of greenhouse gases in the atmosphere can also affect weather systems, with a lot of low pressure bringing rain. This could mean it does rain more, but in [unexpected] places.”

The science behind earthquakes is equally complex, with some researchers believing them to be triggered by the increased incidence of cyclones and unprecedented levels of rainfall. Regardless of whether it’s an earthquake, a wildfire or a hurricane, though, it’s impossible to prove a direct causal link between any individual natural disaster and man-made climate change. For many, though, the increased prevalence of freak weather and the unleashing of huge natural forces is proof enough.

Text: Emily Petsko
Photos: AFP

Mooncakes: Our top picks this season

As the Mid Autumn festival approaches, it’s easy to understand that revelry is in the air. Lanterns are for sale in every supermarket and mooncakes are lining up the racks of every bakery. Be it a traditional affair in red bean or lotus seed paste or a more modern avatar infused with whisky, mooncakes are literally everywhere. Here are our top picks from the best places in town.

Conrad Hotel

Golden Leaf in the Conrad brings customers five different options this season. The traditional version is perfectly balanced with lotus seed paste and salted egg yolk complementing each other. For the health-conscious ones, there are low-sugar and mixed-nut varieties. The contemporary renditions include green tea mooncakes and egg custard mooncakes which come in smaller sizes.

Conrad’s Cake Shop also has on offer some special hampers containing the mooncakes and supreme X.O. sauce from Golden Leaf, priced between HK$998 and HK$3,188.

Mandarin Oriental

Mandarin Oriental’s Michelin-starred Man Wah restaurant has on offer limited-edition mini mooncake hampers. Limited to only 750 pieces, the boxes include speciality mooncakes, including golden or white lotus with two yolks, mini egg custards, as well as mini assorted mooncakes in a variety of flavours, such as sweet potato, red bean chestnut and white lotus.

Mandarin Oriental also brings the perfect gift sets, including Mandarin Deluxe Mooncake three-tier and one-tier hampers (HK$3,388 and HK$2,988), Mandarin Seasonal Fruit Mooncake Hamper (HK$2,388) and Mandarin Mooncake Gift Box (HK$1,888). 

Dynasty Restaurant, Renaissance Harbour View Hotel

Dynasty offers a fully traditional version of mooncakes with white lotus seed paste and salted egg yolk. For those who like to experiment, there are the mini pandan paste and salted egg yolk mooncakes that are filled with a velvety blend of pandan paste and egg yolks that deliver light and aromatic pandan notes. All mooncakes are priced at HK$278 for a box of six pieces. To spread the joy this festive season, Dynasty Restaurant donates HK$10 to Hong Chi Association for every box of mooncake sold.

 

Dalloyau

The renowned Parisian patisserie brings mooncakes with a French flair. Using traditional French baking techniques, sablé pastry shells are filled with one of three fillings: a red bean paste as a tribute to Asian heritage; a 62% chocolate-dice centre with an elegant note of rum; and a delectable rum raisin centre whose rich flavours just explode in the mouth. Dalloyau offers a range of Paris Moon gift boxes, including New Moon (HK$988), Crescent Moon (HK$1388), Moonlight (HK$2,288) and Full Moon (HK$3,888).

InterContinental Grand Stanford

InterContinental Grand Stanford has curated a host of expertly crafted mooncake collections ranging from classic flavours to next-gen chocolate flavours. While there are the usual lotus paste, egg custard, low sugar versions, what really made us sit up and take notice was their whisky and chocolate innovations. Collaborating with Tiffany’s New York Bar and Taiwanese whisky brand, Kavalan, InterContinental brings specially handcrafted Kavalan Whisky Chocolate Mooncakes (HK$468 per box with three pieces) in three single-malt whisky flavours.

Text: Suchetana Mukhopadhyay

 

Scentsible choice: Fragrance aficionados are turning to niche perfumes

 

When French perfume house Editions de Parfums hit the market in 2000, it was a game-changer. Here you had no celebrity endorsements, no marketing gimmicks and no-frills packaging. Presented in a minimalist bottle with a simple black label strapped across the centre, the scent is left to speak for itself.

While Editions is still considered niche, it became so sought after that it eventually caught Estée Lauder’s attention. The beauty powerhouse acquired Editions about two years ago, and other niche labels have been snapped up just as fast by major corporations. Most recently, niche perfumer Maison Francis Kurkdjian was bought by luxury goods conglomerate LVMH. Beyond the mundane business of mergers and acquisitions, one thing is clear: Niche is in, and bigname brands are out.

French perfume expert Axelle Frachon believes this is smart business, but the ample options also make it an exciting time to be in the market for a new fragrance.

 

 

The shift to niche was predicted long ago by Editions de Parfums founder Frédéric Malle, who recognised that perfume makers were tired of churning out commercialised scents that depended on celebrity endorsements to sell. Consumers were bored, too.

“The fragrance industry almost died because of all the celebrity fragrances,” Malle says, explaining that Europeans were so underwhelmed by the available choices that many stopped wearing perfume altogether. What modern, fragrance-savvy men and women really want is quality – and it’s a factor they’re unwilling to compromise on. “Slowly but surely, they are coming back to us because … there are some very good collections,” Malle says.

From the get-go, Malle took a different approach to perfume-making. He eschewed fancy bottles and brand ambassadors, instead opting to celebrate the hitherto unknown perfume makers who bring his ideas to life. Each fragrance bears the name of the individual perfumer who created it.

“They think only of images and not of the perfume,” Malle says of mainstream perfumers. The cheaper the perfume, the fancier the bottle … We have different quality standards. It’s a different level – the ultimate luxury in perfume.”

 

 

Aside from Editions, there’s no shortage of self-proclaimed niche perfumes on the market right now, but beware of brands that use it solely as a buzz word. For those wondering how to separate the professionals from the amateurs, Frachon has a few recommendations. Paul Emilien (UK) and Histoires de Parfums (France) both make high-quality fragrances, Frachon says. If a quintessentially French eau de parfum is what you seek, even more options await. “The perfumes of Nicolaï are elegant, chic and easy to wear,” says Frachon. “I also enjoy the richness of Parfum d’Empire, the beautiful raw quality of Les Indémodables and the humour and edginess of État Libre d’Orange.”

For brands that are more readily accessible in Hong Kong, pop into IFC Mall to sample scents by French label Diptyque or British perfumer Penhaligon’s. Parfumerie Trésor in Sheung Wan (G/F, 18 Upper Station Street) is the best shop in the city for niche fragrances, Frachon says.

Although the perfume industry is closely associated with France, other brands around the world have proven to be formidable competitors. Byredo, founded in Sweden in 2006, has taken the niche market by storm with its seductive scents and innovative application methods.

In addition to a traditional spray bottle, Byredo also makes scents in powder form that can be applied with a brush. The fragrances are certainly unique, too. The Bibliothèque (library) scent, available in perfume and candle form, captures the essence of old books through a blend of peach, plum, peony, violet, leather, patchouli and vanilla.

Gypsy Water, “a glamorisation of the Romany lifestyle”, is a bohemian blend of bergamot, juniper berries, lemon, pepper, pine needle, amber, vanilla and more.

 

 

Another alternative perfumer is Jo Malone, which is particularly popular in Hong Kong. One of the brand’s newest colognes, English Oak, comes in two varieties: redcurrant and hazelnut. Although most of Jo Malone’s colognes tend to be perceived as masculine, they aren’t specifically marketed to men – and indeed, many women enjoy wearing the brand’s floral fragrances.

Unisex scents have been picking up steam in the industry and are now considered “quite trendy”, according to Frachon. “I think this trend is following a social evolution towards more equality. People don’t want to be defined according to their sex anymore,” she says. “Furthermore, fragrant raw materials don’t have sex. It’s our culture that considers woody notes more masculine than floral ones. In the Middle East it’s very common for men to wear rose perfumes, for example.”

Like Editions de Parfums, Jo Malone was acquired by Estée Lauder, which also owns Le Labo. In a similar vein, Byredo and Diptyque are owned by the same investment firm, and L’Artisan Parfumeur and Penhaligon’s are both Puig brands.

Being bought by a larger company allows niche brands to greatly expand their distribution network, all while retaining their own ethos – for now at least. Established perfume houses are capitalising on the niche trend in other ways, too.

“Even the big traditional brands are launching their ‘niche’ style ranges,” Frachon says. “Think about the Hermessences from Hermès, or Les Exclusifs de Chanel, and what about the new fragrances from Louis Vuitton? Are they niche or not?” Frachon leaves it up to consumers to decide, but notes that shoppers “can find a lot of variety on the perfumery market” right now.

While the major maisons like Chanel and Dior are still king in Hong Kong, more and more people are beginning to appreciate the nuances and complexity of fragrances, contributing to the growing demand for more personalised perfumes. This has fuelled the popularity of brands that offer bespoke perfume-making services which tailor a scent to a customer’s preferences and personality.

Frachon’s French Elixir in Hong Kong works with a few independent perfumers to create customised fragrances. Perfumers get to know clients’ preferences by having them smell raw materials, and they also try to get a feel for the client’s personality and needs. After a perfume is created, clients receive a sample and have the chance to make adjustments as they see fit.

“Perfume is about creating magic – making people dream with just a spray,” Frachon says. “It’s about bringing some luxury into your daily life.”

The perfume industry’s embrace of sugar, spice and everything niche has made shopping for fragrances a more playful experience, with surprises at every turn. Are you a Mister Marvelous (Byredo) or the perfect Portrait of a Lady (Editions de Parfums)? If you’re unsure, let your nose lead the way.

 

Text: Emily Petsko

Curtain Call: Preserving Cantonese opera is an uphill task

 

Hong Kong is fighting an uphill battle to preserve one of its traditional art forms, Cantonese opera.

Shrill music fills the Lyric Theatre in Wan Chai on a Monday night as theatre-goers settle in for an evening of singing, acrobatics and acting. Moments earlier, the small gathering of elderly women and a sprinkling of men had turned the Lyric Theatre’s foyer into a hive of activity. Excited chatter filled the air as groups caught up with old friends, sipped on wine and perused the programme for that evening’s show, Prime Minister of Six States/Excerpts from the Paichangxi Repertoires of Cantonese Opera.

However, by the time the first ear-splitting musical note signalled the start of the opera, the crowd had barely managed to fill half of the 1,181-seat theatre.

In many ways, this scene is representative of the current state of Cantonese opera, a performance art propped up by a passionate but relatively small – and ageing – audience. How much longer, many wonder, can it survive?

On average, at least four Cantonese operas are reportedly staged in Hong Kong every day. UNESCO gave the art form “intangible cultural heritage” status in 2009, indicating that it should be protected and preserved.

In the early days, Cantonese opera was performed in temples or in bamboo sheds used as makeshift theatres. At the start of British rule in Hong Kong, street shows of Cantonese operas were typically held in these bamboo sheds, but the number of Cantonese operas held in the structures had dwindled from 158 in 1970 to 34 by 2010.

To get to the roots of Cantonese opera you need to go back even further to the reign of Emperor Jiajing (1522-1566) of the Ming Dynasty. The art form is a mixture of Yiyang and Kun tunes of the Ming Dynasty; the Xiqin and Han opera of the early Qing Dynasty; regional operas from the provinces of Jiangsu, Henan, Anhui, Hunan, Hebei and Guangxi; and local Guangdong music.

Another recent production, The White Silk Gown (new edition), was held at the new wing of Ko Shan Theatre in Hung Hom, and featured Yu Jiulin as the 20-year-old scholar Xu Jizu. Like many performers, Jiulin discovered Cantonese opera at a young age.

“I was born in Kunshan, where Kunqu originated,” he says, referring to the oldest form of Chinese opera. “Kunqu instructors held an audition at school and they picked me. I was still young at that time – only 16 years old.” His case is atypical. Tales of Chinese legend told through song, dance and elaborate costumes just don’t seem to resonate with audiences under 30 anymore. It’s one of the main reasons why people like Dr Dorothy Ng Fung-ping are pushing to expose Cantonese opera to children in an attempt to spark an interest early on.

In 2007, the University of Hong Kong started a programme to incorporate Cantonese opera into primary and secondary school curriculums. The project was spearheaded by Ng Fung-ping, who at the time was an assistant professor at the Faculty of Education.

Ng Fung-ping and her team trained teachers on how to integrate Cantonese opera into the curriculum, developed teaching materials and introduced students to texts and performances.

To date, more than 50 schools have incorporated the programme. The spread of Cantonese opera to new audiences will soon stretch beyond the classroom with the construction of the West Kowloon Cultural District. Situated on 40 hectares of reclaimed land on the harbour front, the arts hub will feature the Xiqu Centre, one of three major performing arts venues planned for the cultural district.

But even with the construction of world-class venues to host Cantonese operas, if younger generations only watch the performances and don’t actively participate in them, there’s still a real danger that opera could shrink from public view.

“My concern is how Hong Kong educates and develops top-class artists, because the top practitioners of Cantonese opera are getting old and some have passed on,” says Ng Fung-ping. “Even if we have the audience and the venues, if we do not have the right mechanisms to produce top-level performers, then we have a problem.”

Convincing children and young adults to step up and start performing could be tricky, though. Performers undergo specialist training to make sure they can do the unique gestures and singing styles that characterise Cantonese opera.

For many performers, this requires years of study in the mainland and Hong Kong, and some even take a degree course – the first of its kind in the world – at the Hong Kong Academy of Performing Arts. Once performers have completed their training, the hard work is just beginning, as some operas can take years to go from planning phases to the stage.

For instance, it took three years of preparation to put on stage The White Silk Gown. Indeed, the movements of every cast member have to be carefully plotted and perfected, culminating in a performance that has been years in the making. When the opera draws to a close the audience slowly files out and once again the foyer is filled with chatter before people head home to share their experience with family members who might not turn away from the TV to listen.

Text: Andrew Scott

Into the Inca Empire

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Discover Machu Picchu in all its majesty, but don’t miss the other wonders of the Peruvian Andes

Placid lakes, glacial peaks and mountain ranges prelude the landing into the capital of America’s greatest civilisation – the Inca Empire. If you can manage to keep your eyes open, you’ll find yourself soaring above a Peruvian paradise. This view signals an end to the grueling 30-hour journey from Hong Kong to Cusco, but it’s just the start of a tremendous adventure.

Spelled Cuzco in Spanish and Qusqu in Quechuan – the local language – the city sits 3,400m above sea level. While it might seem anticlimactic, the first order of business upon touching down in Cusco is to get plenty of rest. It takes a couple of days to acclimatise to the environment, and altitude sickness often comes with the territory. You won’t mind holing up at the Belmond Hotel Monasterio, a stunning 16th-century structure which once served as a monastery and national monument. For the ultimate in luxury and Peruvian charm, there’s no better choice.

Still, even after resting you may feel a bit ill while walking up and down the streets of Cusco, whose steep steps form a maze leading to the main square of Plaza de Armas. Do as the locals say: drink a lot of water and try to avoid alcohol and meat, especially when preparing for a trek.

Another traditional remedy is mate de coca – a herbal infusion made from raw coca plant leaves, which are native to the region. Commonly used in the Andean highlands, the tea is consumed as a stimulant to improve blood flow and oxygen uptake at high altitudes. While completely organic and used in countries like Argentina, Bolivia, Colombia and Peru, the tea is illegal in the United States because it contains alkaloids used to make cocaine.

A good way to explore the Inca ruins while acclimatising is to go lower into the Sacred Valley. Pisac – a small town 35km from Cusco – is a great option on Sundays when it holds its famous market.

You can shop at the market for local Peruvian fruit and handmade crafts. Many vendors will tell you their ponchos or blankets are made of alpaca wool, but walk around and inspect prices and quality before making a final decision. Don’t miss the chance to try a local snack: the choclo is a large-kernel variety of field corn from the Andes, and you can take it boiled, with cheese or with salt.

Some stalls around the market are fronted with signs advertising shaman-led “San Pedro experiences”. If you’ve heard of ayahuasca – the spiritual medicine and hallucinogenic used in indigenous Amazonian ceremonies – then the Andean counterpart is a cactus called San Pedro (Saint Peter), which can be made into mescaline.

A quick taxi ride will take you to the impressive Inca relics above the town, or you can opt to hike 7km to the architectural park. Make sure to save energy for the labyrinth of relics within, though.

You’ll need a US$40 boleto turístico (ticket) to get in, which covers 10 days and all the major must-sees in and around Cusco. The area is characterised by its soaring agricultural terraces, some of which are still used to this day.

In the main park, a trail near the river is flanked by cliffs and lined with cave-like tombs – the Incas’ vertical cemetery. Turn left where the trail forks by a bridge and go uphill to the majestic Temple of the Sun. The Incas’ most important god was the solar deity Inti, which explains why the Peruvian currency is named sol after the word for sun. From there another trail leads back down to the town centre.

Aside from Pisac, make full use of your boleto turístico and explore ruins like Ollantaytambo (an imposing Inca military post in the Sacred Valley) and the Saqsayhuaman complex in Cusco (including Q’enqo, Puka-Pukara and Tambomachay). Pay a visit to Moray, which is famous for its Salineras de Maras, a picturesque system of salt flats carved out of the mountainside.

And then there’s Machu Picchu. If you want the full experience, start from the Inca Trail. There are several treks and tours available, with most hikes ranging from two to eight days. You’ll need to book this months in advance, especially if you plan to go during the high season.

Several luxury tour operators offer all-inclusive trips to Machu Picchu. They come with porters, pack mules, sunset happy hours, chefs expertly trained in Peruvian cuisine and every other amenity you can possibly think of while journeying through the mountains. Alpaca Expeditions and Enigma Adventure are Gafencu’s top choices for tour operators.

Another route, the Salkantay Trail, is better suited to intermediate hikers who want to take in glacial landscapes at altitudes of up to 5,200m. The Lares Valley Trek is less hardcore, but still challenging. It follows the weavers’ and farmers’ paths through villages and rivers. You’ll see a lot of llamas and alpacas along the way, but take care not to step on the presents they’ve left behind.

The most luxurious – and laidback – way of getting in and out of Machu Picchu, though, is via Perurail’s high-end train service. The Vistadome and Expedition trains are popular for their panoramic views of the breathtaking scenery. Alternatively, the plush Belmond Hiram Bingham often features live bands which play local and international tunes.

Tourists will disembark at Aguas Calientes, the closest town to Machu Picchu. For a spot of rest and pampering, check into the Inkaterra Machu Picchu Pueblo Hotel. Situated in the middle of a natural oasis, the hotel boasts a luxurious spa and 12 acres of land frequented by more than 200 bird species.

After regaining your strength, wake up early to catch the sunrise at Machu Picchu (or come at sunset if you want to avoid the crowds). The queue for the bus tends to snake around the corner even in the 4am darkness. Get your bus tickets ahead of time, or you may never make it up there. And don’t forget your passport – they check.

As soon as you get there, secure a strategic spot for the moment when the sun breaks through the mist. It may be raining, you might not have showered for days and you’re probably sleep deprived, but all that slips away as you stand above the living, breathing rainforest where the Incas built their sublime citadel in the 15th century to get closer to the gods.

Legend has it that when the Spanish arrived, the Incas razed all the roads leading to Machu Picchu so the conquerors wouldn’t find it. It was hidden from the outside world until 1911, when American archaeologist Hiram Bingham stumbled upon the site while searching for the famous “lost” Inca cities.

If you still have energy to climb, you can make for Huayna Picchu, the “young peak” that features in all the famous photos of Machu Picchu. It’s a couple of hours up and down, unless you want to take the longer loop. From the top, you can look down on the divine site as if you were a condor gliding over it.

Where to next? The onward journey can take you to Lima, Peru’s gastronomic paradise, or to the colonial-era capital of Arequipa, flanked by three imposing volcanoes. If you haven’t had enough adventure yet, head to the picture-perfect Rainbow Mountain or Lake Titicaca on the Bolivian border. You might have come thinking you’d tick something off your bucket list – little did you know you’d be adding 10 more by the end of your stay.

Text: Julienne C. Raboca