29 September 2014, from Occupy Admiralty to Occupy Central

Lunch hour, Harcourt Road 

 Overseen by the People's Liberation Army?

The Golden Age of civil disobedience, near City Hall and the Hong Kong Club Building

28 September 2014, Hong Kong

 Fenwick Pier Street - Police officers stood behind the double yellow line. What exactly were they supposedly defending?   

While the Police was surrounding Tim Mei Avenue and Lung Wui Road, Fenwick Pier Street was surprisingly occupied in the early afternoon. This, as the organisers described, was counter-surrounding. 

Powers of officious bystanders: Harcourt Road in the afternoon 

People donated umbrellas to protesters who were defending pepper spray. 

Queensway in the afternoon

27 September 2014, Lung Wui Road

The line has been drawn. 

Standoff

Can BN(O) vote in the Scotland Referendum?

It is perhaps fair to say that there was no practical benefit to use my BN(O) passport for the trips to Maldives or Singapore, compared with the HKSAR passport held by Mrs. Always Right. Both offer visa-free access and the same conditions of entry. It has been reported that the British embassies and Chinese embassies belong to different leagues but I would not mind these are never put to test. There are visible differences though. The HKSAR passport has a politically correct design: a national emblem of the PRC and the character "hua" on every page. For me this per se makes the renewal of BN(O) a real bargain.

The BN(O) is more than just passport. This, according to section 4B of the British Nationality Act 1981, is a status. Further, under section 37 of the 1981 Act as amended, a British National (Overseas) "shall have the status of a Commonwealth citizen." I had come across stories on the web regarding Commonwealth citizens' right to vote in the UK elections but it was still a pleasant surprise when I discovered that Commonwealth citizens, "who have leave to remain in the UK or do not require such leave", resident in Scotland, can vote in the Scotland referendum. It is not clear to me exactly what "leave to remain" means but there was a Guardian article published in 2010 which suggests that a three-year stay will suffice.

Coincidentally, having lived in Hong Kong for almost 34 years I was recently reminded by the Party that we do not deserve a genuine vote to select the chief of the city. All very well. we can still vote with our feet to travel with our BN(O) passports.

The choice of passport can be a vote of no confidence against Beijing and its puppets in Hong Kong.

British Empire 2: Singapore

On the Singapore Airlines flight from Male to the SIN City. Lion Lager is a product of Ceylon, Tiger Beer of Singapore.

Sri Srinivasa Perumal Temple, a Hindu temple

An umbrella inside the Sri Srinivasa Perumal Temple

Sri Veeramakaliamman Temple, reportedly one of the oldest Hindu temple in Singapore, situated at the heart of Little India.

The back of Sri Veeramakaliamman Temple

Above the Tekka Centre is a "HDB estate".

The back of Sultan Mosque, taken from Arab Street

Haji Lane

A quiet man and a quiet cat in the Haji Lane

Yet another No Signboard Seafood Restaurant at Clarke Quay Central, yet another shopping mall in Singapore. The crabs of No Signboard had brought us to Singapore but it turns out that this city-state has a lot more to offer than just crabs.

There Mrs. Always Right ordered a crab from Ceylon.

Supertrees at the Gardens by the Bay

Inside the Sultan Mosque

Watching time fly at the Long Bar, Raffles Hotel

The hot kitchen of Tian Tian Hainanese Chicken Rice, Maxwell Road Hawker Centre, Chinatown

The escalator of Clarke Quay Central, outside GOD Singapore

British Empire 1: Maldives

Seaplane by Maldivian at Male Airport

 Taking off

Barefoot pilot

A seabird's-eye view of yet another atoll(?) in the southern Maldives

 DHC-6 300 in the sky

 Before Sunrise - Maldives

 Sun rising from the Indian Ocean

3,000 miles away from Hong Kong on an obscure island in Maldives, I was presented with a copy of the hotel newspaper. A blunt reminder that there is no escape.

 Beach, palm trees and two ladies

 

Baby shark near the jetty

OCBC Wing Hang

All's well that ends well. Some months ago rumours had it that the Agricultural Bank of China was bidding for the controlling stake in Wing Hang Bank. OCBC has since emerged as the winner. These days, the state-owned banks in Hong Kong embrace the freedom of assembly by encouraging their staff members to turn up at the "anti-occupy Central march". The last thing this city needs is another big PRC bank.

OCBC Bank has a branch in London at Rex Building in the City which offers mortgage loans for property investments in London. I would love to see more competition with Bank of East Asia, HSBC and Shanghai Commercial Bank, which are apparently the the only lenders which offer UK mortgage loans to their Hong Kong customers.

On 18 August, Wing Hang announced that its name would change to OCBC Wing Hang with effect from 1 October. A happy coincidence.

Diversify by Investing in Hang Seng Index

I have been accumulating iShares MSCI China Index ETF for a year or two. While I have wanted to diversify by investing in shares in British companies, the P/E ratio of the Vanguard Developed Europe Index ETF (20.0x) suggests that I should be patient at this time.

The need to diversify remains and on second thought investing in the Hang Seng Index may help a bit. No doubt there is duplication between MSCI China Index and Hang Seng Index (the usual suspects include Tencent, China Mobile, CCB, ICBC and BOC). Yet the following constituents of Hang Seng Index makes it different:-

Finance

HSBC, AIA, HKEX, Hang Seng Bank, Bank of China (Hong Kong) and Bank of East Asia

Utilities

CLP, Hong Kong and China Gas and Power Assets

Properties

Cheung Kong, Sun Hung Kai Properties, Wharf, Hang Lung Properties, Henderson Land, New World Development and Sino Land

Commerce and Industry

Hutchinson, Galaxy Entertainment, Sands China, Swire Pacific, Li & Fung, MTR and Cathay Pacific

Hang Seng Index will bring opportunities to invest in Hong Kong, Macao (through Galaxy and Sands), Asia (AIA) and even the UK (HSBC and Hutchinson). In 2013, 17% of revenue of Hutchinson was generated in the UK (compared with 15% in Hong Kong, 14% in Canada and 12% in China); 23% of EBITDA from the UK, again more than any other countries.

Time to do some math. As at 15 August:-
The price for three board lots (or 600 units) of 2801:HK was $13,200 whereas one board lot (or 500 units) of 2800:HK was $12,875.

Goodman's Fields

Last Thursday I dug out an email from my spam box circulated by a Colliers salesman selling the Royal Arsenal Riverside in Greenwich. Yet another project developed by Berkeley. What really caught my eyes is that Berkeley has its own office in Edinburgh Tower. I thought this is a recent response to the strong demand among Hong Kong and China buyers but, well, it transpired that the office in the Landmark was opened back in 2012. This is quite a helpful reminder that I am never a first-mover when it comes to investments, and chances are that the market has already overheated after it is "discovered" by me.

The spam reminds me of the second property project which we viewed - Meranti House of Goodman's Fields, also developed by Berkeley. In January 2014, I was attracted by the low price advertised on HKEJ - a studio flat near the City for as low as £500,000! The salesman was charmingly pushy. For what it is worth, he gave me a lecture on why the Britons love west-facing properties and the beauty of buying first-hand property in the UK (in gist, flexibility of transfer to a greater fool before completion). When I asked him about potential yield, he suggested me to look at the upside of capital gains. My boss must be quite right when she advised me to approach the developers directly to strike a deal. Why should I pay a great salesman like him or the posh showroom at Mandarin Oriental (particularly when Berkeley has it own office in Hong Kong)?

The salesman did tell me (when asked) part of the Goodman's Fields would be used for student accommodation. Not an awfully attractive idea when the project positioned as an upmarket one - its sales brochure is a coffee table book and it is claimed that the place has been designed as a 21st century version of the towers of San Gimignano!

More on Meranti House from Square Foot:-

Meranti House is part of Berkeley's massive Goodman's Fields development in Aldgate, just north of Tower Bridge that will ultimately include almost 1,000 homes within the project. The 20-storey tower will account for 107 residences, ranging from studio apartments to three-bedroom units and one duplex penthouse. 

Meranti is one of scores of new "neighbourhoods" that are being created in London, be it through regeneration or new builds: Kings Cross, Elephant & Castle and Nine Elms as just a few. With its multiple piazzas and town squares, shops, restaurants, residences and offices, Goodman's Fields is just one more. 

"The ethos behind our developments is about place making, creating distinctive new developments which not only deliver fantastic new residential homes, but also make a difference and benefit to the wider area," explains Berkeley (North East London) Managing Director Piers Clanford. He points out the extras that Goodman's Field will be able to offer, citing a new two-acre park - with commissioned art - in Zone 1 as just one. "Goodman’s Fields is unique because it incorporates a mix of commercial and leisure facilities … for everyone to enjoy, creating an oasis in the heart of the capital." 

As a hub of the finance and, increasingly, tech industries, prime London has been touted as a strong rental market, making yields an attractive part of investing in the city. Targeted at both end-users and investors, Meranti House is ideally positioned within walking distance of 300,000 professionals' offices, and end-users will be attracted to its lifestyle amenities: a private cinema, lounge, pool and spa among others. "At Goodman's Fields purchasers will be buying for both capital gains and yield generation. Due to the development's close proximity to the City and Canary Wharf, the area is a popular destination for rental tenants who want to live close to the office. The arrival of Crossrail in 2018 is also expected to see values rise," states Clanford.

Square Foot says Meranti House's prices begin at £549,500. I have no idea why the properties were more expensive on Square Foot than on HKEJ.

CoStar has a report on the sale of part of the development to Student Castle. City A.M. has one on the neighbourhood.

Before I forget - I have learned a new term from the spam mail - DLR means Docklands Light Railway.

Lord Goldsmith on BN(O) and British Citizenship

These days the long forgotten Sino-British Joint Declaration signed in 1984 has surfaced again. There are calls for the British government to stand up for Hong Kong's high degree of autonomy, which was supposedly agreed between the United Kingdom and the People's Republic and recorded in the Joint Declaration. I for one will not hold my breath for David Cameron's support. Yet the Joint Declaration itself is an interesting document to study. It provide clues to almost all topics I am fascinated about (from Hong Kong land law to BN(O)). BN(O) first.

On 19 December 1984, the day on which the Joint Declaration was signed, memoranda were exchanged between the UK and the PRC:-

United Kingdom Memorandum 

In connection with the Joint Declaration of the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the People's Republic of China on the question of Hong Kong to be signed this day, the Government of the United Kingdom declares that, subject to the completion of the necessary amendments to the relevant United Kingdom legislation: 

a) All persons who on 30 June 1997 are, by virtue of a connection with Hong Kong, British Dependent Territories Citizens (BDTCs) under the law in force in the United Kingdom will cease to be BDTCs with effect from 1 July 1997, but will be eligible to retain an appropriate status which, without conferring the right of abode in the United Kingdom, will entitle them to continue to use passports issued by the Government of the United Kingdom. This status will be acquired by such persons only if they hold or are included in such a British passport issued before 1 July 1997, except that eligible persons born on or after 1 January 1997 but before 1 July 1997 may obtain or be included in such a passport up to 31 December 1997. 

b) No person will acquire BDTC status on or after 1 July 1997 by virtue of a connection with Hong Kong. No person born on or before 1 July 1997 will acquire the status referred to as being appropriate in sub-paragraph (a). 

c) United Kingdom consular officials in the Hong Kong Special Administrative Region and elsewhere may renew and replace passports of persons mentioned in sub-paragraph (a) and may also issue them to persons, born before 1 July 1997 of such persons, who had previously been included in the passport of their parent. 

d) Those who have obtained or been included in passports issued by the Government of the United Kingdom under sub-paragraphs (a) and (c) will be entitled to receive, upon request, British consular services and protection when in third countries. 

Beijing, 19 December 1984.

Chinese Memorandum 

The Government of the People's Republic of China has received the memorandum from the Government of the United Kingdom of Great Britain and Northern Ireland dated 19 December 1984. 

Under the Nationality Law of the People's Republic of China, all Hong Kong Chinese compatriots, whether they are holders of the 'British Dependent Territories Citizens' Passport' or not, are Chinese nationals. 

Taking account of the historical background of Hong Kong and its realities, the competent authorities of the Government of the People's Republic of China will, with effect from 1 July 1997, permit Chinese nationals in Hong Kong who were previously called 'British Dependent Territories Citizens' to use travel documents issued by the Government of the United Kingdom for the purpose of travelling to other states and regions. 

The above Chinese nationals will not be entitled to British consular protection in the Hong Kong Special Administrative Region and other parts of the People's Republic of China on account of their holding the above-mentioned British travel documents. 

Beijing, 19 December 1984.

The BN(O) passports derive from this United Kingdom Memorandum. I don't profess to understand a thing about international law but the memorandum (singular) does not seem to be forming part of the treaty. The memoranda are not even described as annexes to the Joint Declaration. (Annex 3 is on Hong Kong land leases and I should write on that someday.)

When you google BN(O) you will probably come across Lord Goldsmith. Commissioned by Gordon Brown, Lord Goldsmith submitted a paper entitled Citizenship: Our Common Bond in March 2008.  There are bits and pieces on BN(O):-

19. The aim behind the 1981 Act was to create a system which was “both satisfactory and lasting” on the basis that over time the only categories which would be left would be British Citizenship and British Dependent Territories citizenship. Three major further developments, however, occurred. 

20. First, the arrangements for the transfer of the sovereignty of Hong Kong in 1997 involved detailed consideration of the citizenship status of the population and particularly the ethnic Chinese population after the handover. These arrangements were complicated and resulted in the creation of several new bases for the voluntary acquisition of British citizenship and the creation of a new and sixth form of British nationality – that of British National (Overseas). BN(O) status carried with it the right, recognized by the mainland China to use BN(O) travel documents. 

21. It was a matter of political controversy at the time that Hong Kong citizens were not simply entitled to take a full British passport. But it was a part of the arrangements with China that the UK should not grant the right to live in the UK to people who were previously British Dependent Territories Citizens by virtue of a connection to Hong Kong. 

22. I have taken the opportunity to hold informal discussions whilst in Hong Kong on the present state of these issues. It is apparent that the fears which lay behind some of the debate on this topic, namely violent repression of the Hong Kong people by the authorities have, fortunately, not materialized even though there remain concerns including about human rights treatment generally in China. It also appears to be the case that many Hong Kong residents are finding it easy to travel on travel documents issued to them by China. Indeed there was a time when such travel documents were more useful in some countries than the BN(O) travel document. I discuss below whether, in the circumstances it would be right to consider changing the BN(O) arrangements ...

[Footnote] 48. For example, the British and Australian governments agreed that the former would provide consular assistance to the nationals of the latter in Iraq. An exception arises in respect of British Nationals (Overseas) of Chinese ethnic origin travelling in China, Hong Kong and the Macao Special Administrative Regions, because China views these nationals as their own. BN(O)s obtain the same protection as other British nationals when travelling elsewhere ... 

11. Finally, there is the question of British Nationals Overseas (BN(O)s) who have that status by virtue of their connection to Hong Kong and are not affected by the 2002 legislative changes. They hold the only extant and significant form of British citizenship which is not full citizenship and does not allow an unqualified right to enter and remain in the UK. 

12. From discussions that I have had in Hong Kong, it is clear to me that the demand for BN(O) status is dropping. Nonetheless to remove this status without putting something significant in its place would be seen as the British reneging on their promise to the people of Hong Kong. The only option which would be characterized as fair would be to offer existing BN(O) holders the right to gain full British citizenship. It is likely that many would not take this up as the prospects economic and fiscal of moving to the UK are not favourable to those well-established in Hong Kong. However, I am advised that this would be a breach of the commitments made between China and the UK in the 1984 Joint Declaration on the future of Hong Kong, an international treaty between the two countries; and that to secure Chinese agreement to vary the terms of that treaty would not be possible. On that basis, I see no alternative but to preserve this one anomalous category of citizenship.

His Lordship's comment that "The only option which would be characterized as fair would be to offer existing BN(O) holders the right to gain full British citizenship" is oft-cited among Hong Kong commentators and may even give a glimpse of hope to many BN(O)s. It must not be forgotten that Lord Goldsmith, formerly the Attorney General of Tony Blair's government, was not a member of the government at the time when he wrote this report. In any event, these discussions hardly attracted any attention in Britain. One wonders if the issue of BN(O) status will resurface when the Communist China becomes even more oppressive.

Beyond 84 Charing Cross Road

While Marks & Co. of 84, Charing Cross Road has been replaced by Pizza Hut, the road remains home to many bookshops. When I was in Charing Cross I was so obsessed with searching for Marks & Co. and did not realise what I had missed. If I had read Mimi Mo's article on London's bookshops (HKEJ, 5 July 2014) before my London trip, I would not have missed Foyles, who are 111 years' old, and Charing Cross Library or 查寧閣圖書館, which is said to be the largest Chinese library in Europe.

Retire in London seems even more agreeable. As if these bookshops in Charing Cross Road are not quite enough, there is still Mr. B's Emporium in Bath, which is 90 minutes away from London.

One small step

After we returned from London the first personal finance decision I made was to accumulate the pound sterling whenever opportunities arise. Despite the jet lag I immediately instructed my stockbroker to collect my HSBC dividends in pounds. My shareholding in HSBC is dismally small and it will take many years to save one airline ticket to London with the dividends for two board lots of shares in the bank. But if Her Majesty's subjects in the colony of Hong Kong have ever learnt something from the empire, the virtue of incremental changes should be at the top of the long list.

The second decision I have since made is to sever all relationships with banks owned or controlled by the Chinese Communist Party. True it is that the HSBC and Standard Chartered have made a commercial decision not to allocate a single dollar of their advertising budget to Apple Daily, the most read Chinese newspaper in the city, and in this sense they are as "patriotic" as the Bank of China. But then there is no secret that the Bank of China and other PRC banks have been deploying their staff in Hong Kong for all sorts of political missions given by Beijing. On this score the British, local and other non-PRC bankers are almost like saints.

These are so much and so little that I can do now.

The City of Victoria

When E and I first visited London 12 years ago, each of us bought a copy of the Oxford English Reference Dictionary. Back home when I checked out the entry on Hong Kong which states that the capital of Hong Kong is Victoria, I was so disappointed (I had believed that the Dictionary was the second best to Britannica which we could not afford) and thought necessary to write a letter to the editors to correct their mistake. As a Hongkonger I was not aware that we had a capital at all. If anything, Victoria is the name of our Habour and Park, but not the capital, if there were one.

As it turns out that, I was, as always, quite wrong. Once upon a time Victoria was the de facto capital of Hong Kong. The Apple Daily has a feature on the Boundary Stones of the City of Victoria. Indeed, Schedule 1 to the Interpretation and General Clauses Ordinance, Chapter 1 of the Laws of Hong Kong, defines the boundaries of the City of Victoria:-

On the north-The Harbour; 

On the west-A line running due north and south drawn through the north-west angle of Inland Lot No. 1299 and extending southwards a distance of 850 feet from the aforesaid angle; 

On the south-A line running due east from the southern extremity of the western boundary until it meets a contour in the vicinity of the Hill above Belchers 700 feet above principal datum, that is to say, a level 17.833 feet below the bench-mark known as "Rifleman's Bolt", the highest point of a copper bolt set horizontally in the east wall of the Royal Navy Office and Mess Block Naval Dockyard, and thence following the said contour until it meets the eastern boundary; 

On the east-A line following the west side of the Government Pier, Bay View and thence along the west side of Hing Fat Street, then along the north side of Causeway Road to Moreton Terrace. Thence along the west side of Moreton Terrace to the south-east corner of Inland Lot No. 1580 and produced in a straight line for 80 feet, and thence along the north side of Cotton Path and produced until it meets the west side of Wong Nei Chong Road on the east side of Wong Nei Chong Valley and thence to the south-east angle of Inland Lot No. 1364, produced until it meets the southern boundary.

Roughly, the West End is Sai Ning Street, Kennedy Town and the East End is Hing Fat Street, Causeway Bay.

999-year leases - Hong Kong v. London

U.K. properties advertisements on Hong Kong newspapers always sell the 999-year leases. That sounds almost as good as perpetuity, particularly for we the people of the People's Republic of China. It appears that the usual length of "land use rights" granted in China is 70 years. In Hong Kong, new leases (by new I mean after we waved goodbye to British Hong Kong) shall be granted for a term of 50 years. Conventional wisdom in Hong Kong has it that investments in landed properties are sure-win in the long run. That is necessarily premised on the assumption that leases shall, upon expiry, be extended by the Hong Kong Special Administrative Government. Yet the Government has in fact been declaring, loud and clear, that one can make no such assumption. The policy proclaimed by the Government is that:-

Non-renewable leases (i.e. those fixed term leases containing no right of renewal), may, upon expiry, be extended for a term of 50 years without payment of an additional premium but subject to payment of an annual rent from the date of extension at 3% rateable value as for new leases in (i) above. The extension of such leases is wholly at the discretion of the HKSARG; for instance, if the land is required for a public purpose or is no longer being used for the purpose for which it was originally granted, then the lease is unlikely to be extended. (emphasis added)

These days, one must be very courageous to rely on "the discretion of the HKSARG". The reality is that I may well spend 25 years to repay the mortgage loan to "buy" a property subject to a 50-year lease, only to realise that the "HKSARG" is already on my doorstep. But thanks to the Colonial Government, there are leases for 999 years granted back in the 19th century in the City. David Webb has a copy of the "Report from the Hongkong Land Commission 1886-1887 on the History of the Sale, Tenure, and Occupation of the Crown Lands of the Colony", which summarises the leased lots as at 25 December 1886, including Marine Lots, Inland Lots, Quarry Bay Marine, Aberdeen Marine, Aberdeen Inland, Apleechow Marine, Apleechow Inland, Sowkewan Lots, Kowloon Marine and Kowloon Farm, which were subject to 999-year leases. The total annual rental in Hong Kong was $159,520.66. These are very good leases for the leasees.

Few participants in Hong Kong properties market care about the land leases (presumably they have trust in the good judgment of the "HKSARG") whereas the big four hongs (Hutchinson, Jardine Matheson, Swire and Wheelock) have been milking these long leases for a century. I would rather bet on the good old long leases, particularly when I do not have to pay much more for such de facto freehold.

The 999-year leaseholds in England look very familiar at first sight. But the big landlords in that country are the freeholders - who quite often are the developers or their associates. The leases granted by such freeholders are very different from those granted by the British Hong Kong Government in the 19th century. Leasees in England contract to pay ground rent and service charges. Mundane stuff eh? The Guardian and The Telegraph explain what these could mean to leaseholders.

By the way, banks and building societies alike in England do not normally grant mortgage loans in respect of properties subject to leases which remaining term is less than 70 years.

Properties in London, Manchester and ... Bradford

While 27 Lovat Lane in the City, the first London development we saw, is just lovely, it is obviously out of our league due to the price tag. If we are to build a buy-to-let portfolio or have to move to the UK in the near future, we should be focusing on affordable properties. Here's a countdown based on the property advertisements as seen on Hong Kong newspapers over the past few weeks, which is wholly unrepresentative:-

1. Greenland Place, London SE8. Developed by Barratt London, marketed by JLL in Hong Kong. Starting from £325,000. According to JLL:-

Greenland Place is a contemporary development located in Surrey Quays. Oslo Tower is the first tower released in this exciting development. Oslo Tower is a 19 storey tower comprising of 66 private one and two bed apartments with terrace or balcony with stunning views across the London skyline. Residents at Greenland Place will benefit from 24 hour concierge, fitness suite, business centre and carpark spaces (available at additional cost). 

Greenland Place is located in Zone 2 in Surrey Quays close to the banks of the River Thames and benefits from being in an established residential area and yet only minutes away from good Underground (Jubilee line), bus, train and road transport connections into the heart of central London. Residents will take approximately 5 minutes walk to Surrey Quays station with excellent connection links to Canary Wharf in 3 minutes and London Bridge in 12 minutes. Close to the development sits a shopping centre, a 24 hour Tesco and in under 10 minutes' walk. as well as a number of restaurants, a cinema, a bowling alley, the picturesque South Dock Marina and the Thames riverboat service for direct quick access into Canary Wharf (in only four minutes) ...

2. Riverdale House, London SE13. Developed by Galliard, marketed by JLL in Hong Kong. Starting from £237,500. According to JLL via SCMP:-

Riverdale House is an unique development comprising of 137 luxurious studio, one and two bedroom apartments located in the heart of Lewisham. Residents at Riverdale House will benefit from daytime concierge and porterage, communal landscaped gardens and secure lower ground parking (available at additional cost) and many apartments benefit from the pleasant views across the Ravensbourne River and parkland. 

Riverdale House is located opposite Lewisham’s Shopping Mall which is home to rich street stores such as Next and Marks & Spencer to name a few. A few minutes walk away from Riverdale in Lewisham High Street offering further shopping and restaurants options. With West End shopping less than 25 minutes from Lewisham, residents at Riverdale House will enjoy excellent accessibility to central London and its endless array of exhilarating experiences, entertainment and culture. Residents will take approximately 5 minutes walk to Lewisham station with excellent connection links to London Bridge in 8 minutes, Bank in 10 minutes and Canary Wharf in 18 minutes. Not only does Lewisham connect direct to London Bridge Quarter, but inter connects to all of the Capital’s principal transport hubs, including Crossrail services from Canary Wharf scheduled for 2018.

3. Hill Quays, Manchester. Developed by Zagora. Marketed by Landscope Christie's in Hong Kong. Starting from £154,146. According to Landscope Christie's:-

Hill Quays is a stylish development in the prestigious Deansgate Locks area of Manchester. It offers 1 - 3 bedroom apartments and penthouse apartments, size from 492 sqft to 1,140 sqft, all of which enjoy the quality interior design. 

Each one has been designed to sharply defined specifications and features layout, appliances and materials that are true modern essentials. 

60% Non-status Loan provided by ZAGORA and guarantee annual rental return for 5 years.

4. Unknown property development project, in Little Germany, Bradford, a city in West Yorkshire. Developer not known. Marketed by Hong Kong Homes Ltd. Starting from £28,000.

First Impression of London - 2002

In the afternoon of Monday, 22 July 2002, we left Paris, took the Eurostar, crossed the English Channel and headed to London Waterloo Station. We had planned to take the sleeper coach to travel to Scotland but was out of luck. While being stuck in London, we did not want to spend our precious pound sterling on a bed when we would in any event move on first thing in the morning for Scotland. We eventually found an easyInternetCafe and paid four pounds for a 24-hour pass. We cannot now recall exactly where we stayed in but the pass marked "Store Code: VIC", which probably denoted Victoria, where the city's largest coach station is situated at. After the longest night (when E kept falling asleep despite the guard's repeated reminders not to), we left King's Cross for Edinburgh, Scotland on Tuesday morning.

We left Orkney Islands, Scotland on 1 August at around 9 a.m., and only arrived in London the following day at around 11 a.m. Having left our backpacks in St. David's Hotel, Norfolk Square, we went to the British Museum. While we had been suffering museum fatigue after spending quite a few weeks in Europe, the visit to the Reading Room was a memorable and humbling experience. The Museum was holding an exhibition on the changing currencies in Western Europe (I almost forgot that Euro coins and notes were in use since 2002). Walking on Oxford Street reminded me of Hong Kong. In fact, many things in London, from her zebra crossings to char siu rice, made us feel like home. We were drowning in the ocean of books in Waterstones Piccadilly, which claimed to be Europe's largest bookshop.

On Saturday, 3 August, we went sightseeing in the City of Westminster, from Buckingham Palace, St. James's Park, Horse Guards Parade, the Westminster Abbey, Downing Street, the Cabinet War Rooms, the Houses of Parliament and the Big Ben.

On Sunday, 4 August, we went south through the Westminister. Across the River Thames, we saw the London Eye, then known as British Airways London Eye. We then went to Oxo Tower Wharf, Tate Modern, Shakespeare's Globe and Millennium Bridge.

It is not entirely clear from my little notebook what we did on 5 and 6 August, except that we visited Waterstones again (we bought quite a few books there) and the Institute of Contemporary Arts. We have kept a ticket which shows that in the evening of 6 August, we went to Her Majesty's Theatre for The Phantom of the Opera - E was impressed whereas I was lost. That day we probably tried to find the Notting Hill but ended up wandering around an unknown neighbourhood.

On Wednesday, 7 August, before we returned to Hong Kong, we decided to spend sometime in the City (none of us had ever imagined that both of us would be working in Hong Kong City firms some years later). At night, we had a good time at Ronnie Scott's Jazz Club with Madeline Bell.

It is now not clear exactly when did we visit the National Gallery and the National Portrait Gallery, to the north of Trafalgar Square.

On Thursday, 8 August, we left London.

12 years thereafter, we returned to London.

First Impression of Scotland - 2002

In the early morning of Tuesday, 23 July 2002, we left King's Cross, London for Edinburgh. We then took a train from Edinburgh to Thurso, the northernmost town on Scottish mainland. We only arrived in Thurso in the late evening and stayed in Sandra's Backpackers, a tiny hostel above a fish and chips shop. Helpfully reminded on the correct ferry schedule, we planned to travel from Thurso to Orkney Islands on the following day.

On Wednesday, 24 July, with the great help of a gentleman of the hostel, we somehow managed to change the ferry tickets and get onto a P&O Scottish Ferry departing from Scrabster Habour. The wind on the ferry was so strong that one had difficulty to stand outside. Having passed Hoy, and just when the ferry was approaching the pier of Stromness, we heard Scottish pipes and drums, and then saw a band and also some Vikings welcoming the visitors. Scottish bagpipe music could be deeply moving. The words I jotted on my little notebook at that time were "eye wet wet". We left our backpacks in the youth hostel and strolled in the narrow lanes of Stromness.

On Thursday, 25 July, we saw even more pipers in the streets of Stromness. It was the Stromness Shopping Week - not an awfully attractive name but we would not forget the day surrounded by men with bagpipes and kilts. We went east for the archaeological sites around Stenness but the cattle farms were also highlight of the trip. The first stop was the Standing Stones of Stenness. When we were walking to the north for the Ring of Brodgar, a bus driver stopped for us and offered us a free ride. Just when we decided to leave the Ring of Brodgar for Stromness, we were caught off guard by heavy rain and got all wet. Neither of us had ever tried hitchhiking but there was no choice. Before long a driver stopped for us and took us back to Stromness. It transpired that the driver was actually not going to Stromness!

On Friday, 26 July, we went north and moved to Hyval Farm Bed & Breakfast. We went to the Point of Howana Geo, also known as the Bay of Skaill, to see birds, sea, the Row Head, the Hole o' Rowe.

On Saturday, 27 July, we wandered around Yesnaby to see rabbits, birds and shore.

On Sunday, 28 July, we stayed in Hyval Farm because of the rain. I read quite a few books on bird watching.

On Monday, 29 July, we continued our walk on the edge of the world, and discovered a puffin!

On Tuesday, 30 July, before we left Hyval Farm, I continued to read books on birds. We gave almost all the cash we had to Mrs. Spence to thank her for the big Scottish breakfast, for saving us in the rain and for her caring.

On Wednesday, 31 July, we stayed in Miller's House,Stromness.

On Thursday, 1 August in the morning we left Stromness for Scrabster. We stayed in Thurso for a while and then headed to Inverness in the afternoon. We had wanted to take a train from Inverness to London. It turned out that we had to change for coach when we were going south due to the flood.  We only arrived London on Friday morning.

12 years thereafter, we returned to Scotland.

UK Index Funds

The first investment I made in my life was Hang Seng Index Fund, when I was 17. I, accompanied by my mum, bought the fund at a small branch of Hang Seng Bank in Luen Wo Market. I still remember the excitement when I witnessed my mum signing the documents, although there was really nothing exciting about index funds, which are by definition average, and therefore dull. It would however appear that dull, for the lack of a better word, is good, according to the little blue book The Elements of Investing, or Warren Buffett's letters to shareholders.

I have been collecting funds tracking the Hang Seng Index and MSCI China Index through MPF, Tracker Fund (2800:HK) and iShares MSCI China (2801:HK). Even in these "chaotic times" (to borrow the words of Mr. Lawrence Lok SC), I still believe that China businesses are great in the long run. On the other hand, I will have to diversify part of our investments into other regions to mitigate the home bias and there is nothing better than investing in the second home - there will be second home bias but we can deal with that later.

Among the Hong Kong offices of iShares, SPDR and Vanguard, there is only one index fund tracking UK/Europe stock index: Vanguard FTSE Developed Europe Index ETF (3101:HK). Hongkongers are not particularly interested in index funds and there will unlikely be many choices in Hong Kong in the near future. While there are many ETFs listed on the London Stock Exchange tracking FTSE 100 and other stock indices, it may not be worth the hassle due to taxes, unless of course there is no alternative here in Hong Kong.

Vanguard is apparently selling the same fund (tracking the FTSE Developed Europe Index) in the UK, at the total expenses ratio of 0.15% and it may want to explain why the total expenses ratio quoted in Hong Kong is 0.25%. One possible explanation is that 3101:HK is new (inception on 10 June 2014) but I would not be surprised if its TER remains unchanged for some time due to the lack of real competition in Hong Kong. Be that as it may, considering the tax implications and logistics I would not mind paying a premium of 0.1%.

As at May 2014 32.1% of investments were in the UK, followed by France (14.5%), Germany (13.7%) and Switzerland (13.6%). The price/earnings ratio was 20.0x and the equity yield was 3.1%. Not a bargain, but I will keep an eye on this.

Now time for a bit of nostalgia. Hang Seng is still offering index funds to its customers. Indeed it is selling a fund supposedly tracking the FTSE 100 Index (the performance of the fund is telling a somewhat different story). The subscription fee is 3% whereas the annual management fee is 0.9%. What I cannot now remember is that I had such a deep pocket when I was 17.

Nationality, Abode, Citizenship - BN(O)

While we have only become serious about moving to the UK after The Trip (1, 2 and 3), I had the inclination to have a Plan B - B for Britain - a while ago. During the Chinese New Year, I asked my mum to dig out my good old BN(O) passport, which was issued in 1993 and had expired many years ago. I still have vivid memories of queueing outside the Fanling Government Offices for the application. The BN(O) passport had never been used though. I got my first HKSAR passport in 2000 and have since used that for travelling. I can have no complaint about the HKSAR passport in terms of utility but the national emblem of the Communist China on the cover and the design of the visa pages have been increasingly off-putting.

Before I rediscovered my BN(O) passport I did not quite reckon that I am a British National (Overseas). As a BN(O) I have no right of abode, nor am I a British citizen. In short being a BN(O) I have no right to live in the UK indefinitely. Having said that I was happy to pay Her Majesty's Passport Office a small fee to renew my expired BN(O) passport, and will use that for travelling in the future. As part of the Plan B we should have as many links with the UK as possible. If worse comes to the worst the HKSAR passport is no good, a "mere travel document" like the BN(O) passport would be very useful.

Today I have come across BritishHongKong, which claims to be an organisation registered in Scotland fighting for full British citizenship for all British Nationals (Overseas), see also the coverage by the Hong Kong Economic Journal. It is difficult to see why the people and government of the UK would have any incentive to revisit the BN(O) issues. It may be a cause for celebration if the UK government were to give a few more brownie points to the BN(O) holders when they apply for citizenship.

Birth, Marriage and Death

While in Scotland I asked E the likelihood of "getting" a Scottish death certificate. E said "less then 20%" - not a slim chance by any measure in light of the fact that we have been living in Hong Kong for 33 years since we were born. We had thought that it might be a good idea to buy a second home and spend more time in the UK after our retirement. We returned from London to Hong Kong on 11 June and the very first news story which I picked up on the Airport Express was a "blunt reminder" issued by Beijing on the correct understanding of one country two systems. The long and short of this reminder, dubbed a "white paper", is that the Chinese Communist Party is the boss of Hong Kong. Nothing new perhaps. In the following week Apple Daily was hacked and inaccessible for the best part of the day. While moving to another country will be the last resort, it seems to be high time to prepare for this possibility.

12 years on: return to the Great Britain (Part 3 - London)

Saturday, 7 June

Took a coach from Oxford to London. Heavy traffic on M40. Passed Hillingdon, a Zone 6 tube station in the west. Bought oyster card, left our luggage in the Morton Hotel near the Russell Square tube station and went to Piccadilly Circus. Saw the Piccadilly Lights, property of Land Securities. Lost in Waterstones. Discovered the London branch of the Bank of East Asia, right next to the Chinatown, on the Shaftesbury Avenue - is the naming of Shaftesbury PLC, an investment trust focusing on the West End, somehow related? Pilgrim to the entrance of Ronnie Scott's (which was full). Watched a boring England v Honduras game in Soho and tasted the London Pride (which I suspect is anything but).

Sunday, 8 June

Ran to the Old Vic to buy Clarence Darrow tickets but no luck. Guided by an old boy and wandered around the Portobello Road, Notting Hill. Saw the George Orwell blue plate. Had a beer under sun near the orange coffee van. Glimpsed the ads at Marsh & Parsons and had a feel of the property prices in the Royal Borough of Kensington and Chelsea. Discovered the Victoria and Albert Museum, which we had skipped 12 years ago due to museum fatigue. Shops on Sloane Street closed before 6 on Sunday. Just past the Harrods and enjoyed a really good violin/cello performance near the Knightsbridge tube station. Went to the Canary Wharf, a ghost town on a Sunday evening, and the headquarter of HSBC. Had dinner at Burger and Lobster Knightsbridge.

Monday, 9 June

Headed to the Bank of East Asia London branch for account opening but to no avail, apparently because of my marriage visa. Looked for 84 Charing Cross Road only to discover that it was occupied by Pizza Hut. Walked along the Floral Street and Covent Garden, the largest landlord of which is the dually-listed Capco. Stopped at the London School of Economics. Heard an appeal to the Master of the Rolls' court at the Royal Courts of Justice. Visited the Twinings Strand Shop & Museum, followed by an old Child & Co branch of RBS in 1 Fleet Street, the origins of British newspapers. Had lunch at The Tipperary, dubbed first Irish pub outside Ireland. Walked to the City of London. Had wanted to hear a criminal trial at the Old Bailey but was told by the officer there that as part of the anti-terrorism measures people carrying mobile phones were not allowed enter the courts. Passed the St Paul's Cathedral. Took the tube from the Bank (named after the Bank of England) to Russell Square. Saw a plaque commemorating the attack on the train from Russell Square to King's Cross St. Pancras on 7 July 2005. Asked the staff at HSBC (right under Morton) whether I could open an account and was told that unless one lived, studied or worked in the UK he could not open an HSBC account, with the possible exception of Premier customers. Read books in Waterstones.

E was shopping in Bicester Village (in translation: outlet) in Oxfordshire.

Watched 1984 at Playhouse Theatre near the Embankment tube station.

Tuesday, 10 June

Went to the shop of Charles Dickens Museum, strolled in Bloomsbury, Camden. Took a picture outside the Senate House of the University of London, for the first time and 8 years after graduation (and it seems that the Senate House inspired George Orwell's creation of the Ministry of Truth!) Headed to the City again for the property at 27 Lovat Lane next to the Monument tube station, the first London property we saw. Centrally located in the middle of "Walkie-Talkie" (again a Land Securities / Canary Wharf development) and The Shard, home to Shangri-La. Crossed the London Bridge, bought lunch at Borough Market and ate lunch outside Southwark Cathedral.

12 years on: return to the Great Britain (Part 2 - England)

Wednesday, 4 June

Left Glasgow for Penrith, the county of Cumbria. Rented a Vauxhall Corsa at Enterprise. Went straight to Keswick, had a beer at Dog & Gun and slept in Stonegarth.

Thursday, 5 June

Went south to explore the Lake District, filled our tank at BP, stopped at Windamere. Wandered at White Moss. Had lunch at Potted Out Cafe in Grasmere.  Unforgettable drive to Buttermere.

Friday, 6 June

Pleasant drive to Ullswater. Saw a BMW with a big poppy. Visited the Lowther Castle. Saw the newspapers at Esso and realised that it's the 70th anniversary of the D-Day. Ate ice cream at Abbott Lodge, Clifton, which claims to be "the last battlefield on English soil 1745".

Went south. Read a review on Kevin Spacey as Clarence Darrow on The Telegraph. Changed at Wolverhampton. Went further south to Oxford. Had dinner at Browns. Stayed in Keble College. Read The Telegraph on Oxford itineraries.

Saturday, 7 June

Visited the Boldelian Library and the Radcliffe Square. Climbed the tower of St. Mary's. Had lunch at Quod. Bought a dozen of The Times at student price. Enjoyed a coffee at The Grand Cafe, allegedly the site of the first coffee house in England.

12 years on: return to the Great Britain (Part 1 - Scotland)

Wednesday, 28 May

Returned to Heathrow after 12 years. Bought a pay-as-you-go card at Vodafone. Took BA to Glasgow. Grabbed the FT and read a story on challenger banks. Headed to Ayr, a coastal town in the south west, to meet the assistant registrar. Got loss and saw the Ayr Sheriff Court. Back to Glasgow and visited MacGregor & MacDuff for trying the kilts. Took a copy of GSPC - Glasgow Solicitors Property Centre, no less. Had a curry dinner at Rawalpindi. Slept at Hotel Indigo Glasgow.

Thursday, 29 May

Took the subway and went to Roots Fruits and Flowers. Went to Maybole and visited the Culzean Castle. Bought stuff at Co-op, whose members apparently may share its profits!

Friday, 30 May

Headed to Edinburgh. Visited the Edinburgh Castle, which one o'clock gun reminded us of the noonday gun in Hong Kong operated by Jardine Matheson (Scots!). Dropped by the shop of Scotch Whisky Experience. Just loved the main branch of the Royal Bank of Scotland. Grabbed a copy of ESPC there. Had a dinner at L'Escargot Bleu. Slept at 20 Albany Street.

Saturday, 31 May

Went to RBS and booked an appointment for opening bank accounts. Climbed (sort of) the Calton Hill, with the Nelson Monument there. Shopped at Primark, a subsidiary of Associated British Foods. Bought OST of Four Weddings and a Funeral, Notting Hill and Love Actually, screenplay by Richard Curtis, at HMV. A nice day at Royal Botanic Garden Edinburgh. Dinner at The Magnum.

Sunday, 1 June

Waited E under the Scott Monument, Princes Street Gardens. Returned to Glasgow. Searched for The Umbrella Shop. Shopped at House of Fraser (founded in Glasgow). Had dinner at Two Fat Ladies.

Monday, 2 June

Commuted to Edinburgh for RBS. Went to the Hillhouse in Troon.

Tuesday, 3 June

The Day, in Culzean Castle.