Tag Archives: Hong Kong

Dramatic stock market rally runs out of steam

A screen displays the Dow Jones Industrial Average after the close of trading on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., December 26, 2018. REUTERS/Jeenah Moon

By Trevor Hunnicutt

(Reuters) – A dramatic global stock rally faded on Thursday after a fall in Chinese industrial profits offered a reminder of the pressures on the world economy.

Still, an index of world stocks stayed off near two-year lows hit earlier this week before Wednesday’s 1,000 point-plus surge on the U.S. Dow Jones index, which was attributed to the strongest holiday sales in years.

“Yesterday was a blowout day for U.S. equity markets which triggered optimism that this could be a key reversal day but the upward momentum has not really followed through,” said Lee Hardman, an analyst at MUFG in London.

“One reason is that maybe the sharp move higher was driven by year-end rebalancing, which exaggerated the scale of the rebound, and now we have reverted to the trend which has been in place most of this month.”

That trend is toward weaker stocks, U.S. dollar and oil prices along with stronger demand for safe-haven government bonds, gold and Japanese yen.

MSCI’s gauge of stocks across the globe shed 0.95 percent and U.S. crude fell 2.01 percent to $45.29 per barrel after each staged big rallies the day prior. [O/R]

Markets in mainland China, as well as Hong Kong, closed weaker after data showed earnings at China’s industrial firms dropped in November for the first time in nearly three years.

A Reuters report added to the gloom around the world’s second-biggest economy, saying the White House was considering barring U.S. firms from buying telecoms equipment from China’s Huawei and ZTE.

That and an ongoing partial U.S. government shutdown overshadowed positive noises from the U.S. government on trade talks with Beijing, its efforts to temper the White House’s recent broadsides against the Federal Reserve and a report showing the number of Americans filing applications for jobless benefits fell marginally last week in a sign of labor market strength.

The Dow Jones Industrial Average fell 394.04 points, or 1.72 percent, to 22,484.41, the S&P 500 lost 42.07 points, or 1.70 percent, to 2,425.63 and the Nasdaq Composite dropped 134.06 points, or 2.05 percent, to 6,420.29. [.N]

“So far, we don’t see a shift in fundamentals. Trade tensions between the U.S. and China remain the biggest unknown factor for 2019,” said Hussein Sayed, a strategist at online brokerage FXTM.

There were also renewed concerns in Italy, where troubled lender Banca Carige was denied a cash call by its largest shareholder, pushing its shares down 12.5 percent.

The concerns over a faltering global economy and signs of an oil glut pressured crude prices a day after their 8 percent rally. U.S. Treasury prices also reversed direction after falling sharply on Wednesday, with the 10-year note last rising 15/32 in price to yield 2.7452 percent. [US/]

Another safe-haven, gold, was up 0.6 percent to $1,274.52 an ounce, remaining just below a six-month peak hit earlier this week. [GOL/]

Investors also bought yen, strengthening that currency 0.56 percent against the greenback at 110.74 per dollar. Against a basket of trading partners’ currencies, the dollar was down 0.35 percent. [FRX/]

“We have started to see the yen regain its place as the safe haven of choice,” MUFG’s Hardman said.

(Additional reporting by Abhinav Ramnarayan and Sujata Rao in London; Editing by Chizu Nomiyama)

U.N. says it has credible reports that China holds million Uighurs in secret camps

FILE PHOTO: The United Nations emblem is seen in the U.N. General Assembly hall during the 72nd United Nations General Assembly at U.N. headquarters in New York, U.S., September 22, 2017. REUTERS/Lucas Jackson/File Photo

GENEVA (Reuters) – A U.N. human rights panel said on Friday that it had received many credible reports that 1 million ethnic Uighurs in China are held in what resembles a “massive internment camp that is shrouded in secrecy”.

Gay McDougall, a member of the U.N. Committee on the Elimination of Racial Discrimination, cited estimates that another 2 million Uighurs and Muslim minorities are forced into so-called “political camps for indoctrination”.

She was addressing the start of a two-day regular examination of the record of China, including Hong Kong and Macao.

A Chinese delegation of some 50 officials made no immediate comment on her remarks at the Geneva session that continues on Monday.

(Reporting by Stephanie Nebehay, Editing by Tom Miles and Alison Williams)

Xi warns Taiwan will face ‘punishment of history’ for separatism

Chinese President Xi Jinping speaks at the closing session of the National People's Congress (NPC) at the Great Hall of the People in Beijing, China March 20, 2018.

By Philip Wen and Ben Blanchard

BEIJING (Reuters) – Chinese President Xi Jinping told self-ruled Taiwan on Tuesday that it would face the “punishment of history” for any attempt at separatism, offering his strongest warning yet to the island claimed by China as its sacred territory.

In response, the government of Taiwan, one of China’s most sensitive issues and a potentially dangerous military flashpoint, said it hoped China could “break free” of the old clichés of threats and force.

China’s hostility toward Taiwan has risen since the 2016 election of President Tsai Ing-wen, a member of the island’s pro-independence Democratic Progressive Party.

China suspects Tsai wants to push for formal independence, which would cross a red line for Communist Party leaders in Beijing, though Tsai has said she wants to maintain the status quo and is committed to ensuring peace.

China has been infuriated by U.S. President Donald Trump’s signing into law legislation last week that encourages the United States to send senior officials to Taiwan to meet Taiwan counterparts, and vice versa.

The United States does not have formal ties with Taiwan but is required by law to help it with self-defense and is the island’s primary source of weapons.

China will push for the “peaceful reunification of the motherland” and work for more Taiwanese to enjoy the opportunities of its development, Xi told the 3,000-odd delegates to the annual session of parliament.

“It is a shared aspiration of all Chinese people and in their basic interests to safeguard China’s sovereignty and territorial integrity and realize China’s complete reunification,” Xi said in a speech at the end of the session.

“Any actions and tricks to split China are doomed to failure and will meet with the people’s condemnation and the punishment of history,” he added, to loud applause.

China had the will, confidence and ability to defeat any separatist activity, Xi said.

“The Chinese people share a common belief that it is never allowed and it is absolutely impossible to separate any inch of our great country’s territory from China.”

In Taiwan, the China policy-making Mainland Affairs Council said the government was firm in its conviction to protect Taiwan’s “sovereign dignity” and the well-being of its people.

“We also hope that mainland China’s leaders, at this time of entering into a new administration period, can break free of clichéd thinking of strong intimidation,” it added.

In a visit likely to further irritate China, U.S. Deputy Assistant Secretary of State Alex Wong will be in Taiwan this week, the island’s foreign ministry said.

PATRIOTIC SPIRIT

China has also been worried about independence activists in the former British colony of Hong Kong following big street protests there in 2014 calling for universal suffrage.

Xi said China would uphold Hong Kong’s high degree of autonomy, but would also seek to increase “national consciousness and patriotic spirit” in the financial center.

Taiwan has shown no interest in being run by China, and has accused China of not understanding how democracy works, pointing out that Taiwan’s people have the right to decide its future.

The new U.S. law on Taiwan adds to strains between China and the United States over trade, as Trump has enacted tariffs and called for China to reduce its huge trade imbalance with the United States, even while Washington has sought Beijing’s help to resolve tension with North Korea.

Taiwan has thanked the United States for the law and its support, but its foreign ministry said on Monday there were no plans for any senior leaders, such as the president, to visit the United States.

While stepped-up Chinese military exercises around Taiwan over the past year have rattled the island, Xi reiterated China’s assertion that its rise was not a threat to any country, though China considers Taiwan to be merely a Chinese province not a nation.

“Only those who are in the habit of threatening others will see everyone else as a threat,” Xi said.

(Additional reporting by Stella Qiu and Christian Shepherd, and Twinnie Siu and Fabian Hamacher in TAIPEI; Writing by Ben Blanchard; Editing by Robert Birsel and Clarence Fernandez)

Quake-hit Taiwan city winds down rescue efforts, five still missing

A body of a Hong Kong Canadian is carried out from a collapsed building after an earthquake hit Hualien, Taiwan February 9, 2018.

By Fabian Hamacher and Natalie Thomas

HUALIEN, Taiwan (Reuters) – Rescue operations in Taiwan started to wind down on Friday after a devastating 6.4-magnitude earthquake rocked the tourist area of Hualien this week, taking a toll of 12 dead and five missing.

More than 270 people were injured when Tuesday’s quake hit the eastern coastal city just before midnight, toppling four buildings, ripping large fissures in roads and unleashing panic among the roughly 100,000 residents.

More than 200 aftershocks followed, hampering a round-the-clock rescue effort in which emergency personnel battled rain and cold to comb rubble in a search for survivors.

Efforts on Friday narrowed to finding five Chinese nationals still missing after rescuers pulled two bodies, identified as Canadian citizens from Hong Kong, out of a 12-storey residential building that had been left tilting at a 45-degree angle.

An excavator demolishes collapsed Marshal hotel after an earthquake hit Hualien, Taiwan February 9, 2018.

An excavator demolishes collapsed Marshal hotel after an earthquake hit Hualien, Taiwan February 9, 2018. REUTERS/Tyrone Siu

Authorities said they would focus their search on the single building where the five missing were believed to be.

“The military will continue to prioritize today rescuing the missing people in the Yun Men Tsui Ti residential building,” it said in a statement.

The building’s extreme displacement made the search tough, the government said in a statement, adding, “The space for our operations is small, so the progress of search and rescue can be slow.”

Power was restored to all affected areas in Hualien, although 8,500 homes are still without water.

The military will work with local government officials to develop a plan to demolish a hotel, a residential building and other dangerous buildings, it said in its statement.

The government vowed to redouble efforts to revise building regulations, aiming to limit damage in any future episodes.

Taiwan revised its building act on Jan. 30 to strengthen investigations of the structures of existing buildings and inspection of completed projects, the interior ministry said on Friday.

The revision, expected to be discussed by a cabinet meeting at the end of February, would also seek third-party views in building assessments, it said.

The government added that it would hasten reconstruction of old buildings to make them earthquake-resistant and work to boost the safety of other structures in affected areas.

“At every stage, the central government will fully assist local governments,” it added.

 

(Additional reporting by Tyrone Siu; Writing by Jess Macy Yu; Editing by Anne Marie Roantree and Clarence Fernandez)

Unholy war of words breaks out over Vatican rapprochement with China

A believer prays during a weekend mass at an underground Catholic church in Tianjin in November 10, 2013.

By Philip Pullella

VATICAN CITY (Reuters) – An unholy war of words has broken out among Vatican and Catholic officials over the Holy See’s rapprochement with Communist China, with cardinals, archbishops and priests caught in an undiplomatic crossfire.

In the past few days, one cardinal has accused another of spouting “nonsense” and a priest accused an archbishop of being so naive about China that he was like Alice in Wonderland.

The exchanges came as the Vatican and China moved closer to an accord on the appointment of bishops in what would be an historic breakthrough and a precursor to a resumption in diplomatic relations after 70 years.

Any deal was bound to be controversial because of concessions the Vatican would have to make to a government that has kept religion under its thumb. But the accusations have become exceptionally shrill as diplomacy has collided with passion.

Father Bernardo Cervellera, head of the AsiaNews agency, which specializes in China, accused Archbishop Marcelo Sanchez Sorondo, the head of the Pontifical Academy of Social Sciences, of being “naive”.

In an interview this week, Sanchez Sorondo praised China, saying that Chinese today were those who are perhaps best implementing Church teachings on social issues, such as concern for the environment and human dignity.

“We can understand that in the heat of desire for relations between China and the Vatican one can be doting and exalt Chinese culture … but adulating China is an ideological affirmation that makes a laughingstock of the Church,” Cervellera wrote in an editorial headlined “Sanchez Sorondo in Wonderland”.

Catholics in China are split between “underground” communities that recognize the pope and a state-controlled group where bishops are appointed by the government in collaboration with local Church communities. Critics have blasted the deal because it would involve accepting the legitimacy of bishops appointed by the government.

The war of words also reached the stratosphere of Church hierarchy, cardinal versus cardinal.

The Vatican rebuked Cardinal Joseph Zen, 86, the outspoken former bishop of Hong Kong, after he accused it of “selling out” China’s underground Catholics to the communists. Zen, known for his feistiness, did not take it lying down.

He accused the Vatican’s chief diplomat, Secretary of State Cardinal Pietro Parolin, of speaking “nonsense,” after Parolin said in an interview that the aim of dialogue was the greater good and that the Vatican understood the “pain” of Chinese Catholics.

Zen retorted in his blog on Monday: “Oh! This man who lacks faith, how would he understand what is real pain?!”

A Vatican source has said the deal could be signed in the next few months. The clerical gloves are expected to stay off at least until then.

(Additional reporting By Venus Wu in Hong Kong, editing by Larry King)

After Trump criticism, China denies selling oil illicitly to North Korea

: A Chinese flag is seen in front of the Friendship bridge over the Yalu River connecting the North Korean town of Sinuiju and Dandong in China's Liaoning Province on April 1, 2017.

By Philip Wen and David Brunnstrom

BEIJING/WASHINGTON (Reuters) – China on Friday denied reports it has been illicitly selling oil products to North Korea after U.S. President Donald Trump said he was not happy that China had allowed oil to reach the isolated nation.

Trump said on Twitter the previous day that China had been “caught” allowing oil into North Korea and that would prevent “a friendly solution” to the crisis over North Korea’s nuclear and missile programs that it conducts in defiance of heavy U.N. Security Council sanctions.

“I have been soft on China because the only thing more important to me than trade is war,” Trump said in a separate interview with The New York Times.

South Korea’s Chosun Ilbo newspaper this week quoted South Korean government sources as saying that U.S. spy satellites had detected Chinese ships transferring oil to North Korean vessels about 30 times since October.

U.S. officials have not confirmed details of this report.

Chinese Foreign Ministry spokeswoman Hua Chunying told reporters she had noted recent media reports including suggestions a Chinese vessel was suspected of transporting oil to a North Korean vessel on Oct. 19.

“The Chinese side has conducted immediate investigation. In reality, the ship in question has, since August, not docked at a Chinese port and there is no record of it entering or leaving a Chinese port,” Hua said.

She said she was not aware if the vessel had docked at the port in other countries but the relevant media reports “did not accord with facts”.

“China has always implemented U.N. Security Council resolutions pertaining to North Korea in their entirety and fulfils its international obligations. We never allow Chinese companies and citizens to violate the resolutions,” Hua said.

“If, through investigation, it’s confirmed there are violations of the U.N. Security Council resolutions, China will deal with them seriously in accordance with laws and regulations.”

In the New York Times interview, Trump explicitly tied his administration’s trade policy with China, North Korea’s lone major ally, to its perceived cooperation in resolving the North Korea standoff.

“When I campaigned, I was very tough on China in terms of trade. They made — last year, we had a trade deficit with China of $350 billion, minimum. That doesn’t include the theft of intellectual property, O.K., which is another $300 billion,” Trump said, according to a transcript of the interview.

“If they’re helping me with North Korea, I can look at trade a little bit differently, at least for a period of time. And that’s what I’ve been doing. But when oil is going in, I’m not happy about that.”

An official with the U.S. State Department said the U.S. government was aware of vessels engaged in such activity involving refined petroleum and coal.

“We have evidence that some of the vessels engaged in these activities are owned by companies in several countries, including China,” the official said, speaking on condition of anonymity.

The United States says the full cooperation of China, North Korea’s neighbor and main trading partner, is vital to the success of efforts to rein in North Korea, while warning that all options are on the table, including military ones, in dealing with it.

China has repeatedly said it is fully enforcing all resolutions against North Korea, despite suspicion in Washington, Seoul and Tokyo that loopholes still exist.

‘EVADING SANCTIONS’

South Korea said on Friday it had seized a Hong Kong-flagged ship suspected of transferring oil to North Korea.

A senior South Korean foreign ministry official said the ship, the Lighthouse Winmore, was seized when it arrived at a South Korean port in late November.

“It’s unclear how much oil the ship had transferred to North Korea for how long and on how many occasions, but it clearly showed North Korea is engaged in evading the sanctions,” the official told Reuters.

South Korea’s customs service concluded that the Lighthouse Winmore had loaded about 14,000 tons of Japanese refined petroleum products in South Korea on Oct. 11, reportedly bound for Taiwan, the official said.

But instead, it transferred as much as 600 tons to the North Korea-flagged Sam Jong 2 on Oct. 19 in international waters between China and the Korean peninsula, on the order of its charterer, Billions Bunker Group Corp., based in Taiwan, the ministry official said.

It was not immediately possible to find contact information for the company.

A spokesman for Taiwan’s presidential office, Alex Huang, said the company was not incorporated in Taiwan.

“As a responsible member of international society, Taiwan will continue to fully comply with all U.N. sanctions against North Korea, in order to support peace and stability in the region,” he said in a statement.

The Hong Kong government said it was “liaising with the Korean parties concerned to obtain further information about the incident, and will take appropriate actions as necessary”.

Employees at the office of Lighthouse Ship Management, the ship’s registered manager, in the Chinese port city of Guangzhou, declined to comment and said they had no knowledge of the situation.

China’s foreign ministry spokeswoman said she did not have any information about the matter.

Both ships were among 10 vessels that the United States had proposed that the U.N. Security Council should blacklist for transporting banned items from North Korea, documents seen by Reuters this month showed.

China and Russia subsequently asked for more time to consider the U.S. proposal.

Ship tracking data in Thomson Reuters Eikon shows that the Lighthouse Winmore has mainly been doing supply runs between China and Taiwan since August.

Prior to that, it was active between India and the United Arab Emirates. In October, when it allegedly transferred petroleum products to the North Korean ship, the Lighthouse Winmore had its tracking transponder switched off.

The Trump administration has led a drive to step up global sanctions on North Korea in response to its efforts to develop nuclear-tipped missiles capable of hitting the United States.

The U.N. Security Council last week unanimously imposed new sanctions on North Korea for a recent intercontinental ballistic missile (ICBM) test, seeking to further limit its access to refined petroleum products and crude oil.

The U.S.-drafted U.N. resolution seeks to ban nearly 90 percent of refined petroleum exports to North Korea by capping them at 500,000 barrels a year.

It also caps crude oil supplies to North Korea at 4 million barrels a year and commits the Security Council to further cuts if North Korea conducts another nuclear or intercontinental ballistic missile test.

In September, the Security Council put a cap of 2 million barrels a year on refined petroleum products exports to North Korea.

(Additional reporting by Hyonhee Shin and Josh Smith in Seoul, Venus Wu and Tyrone Siu in Hong Kong and Brenda Goh in Shanghai; Writing by Ben Blanchard; Editing by Robert Birsel and Nick Macfie)

China seeks to silence critics at U.N. forums: rights body report

FILE PHOTO: Pro-democracy demonstrators hold up portraits of Chinese disbarred lawyer Jiang Tianyong, demanding his release, during a demonstration outside the Chinese liaison office in Hong Kong, China December 23, 2016. REUTERS/Tyrone Siu

By Stephanie Nebehay

GENEVA (Reuters) – Beijing is waging a campaign of harassment against Chinese activists who seek to testify at the United Nations about repression, while the world body sometimes turns a blind eye or is even complicit, Human Rights Watch said.

In a report released on Tuesday, the group said China restricts travel of activists, or photographs or films them if they do come to the U.N. in Geneva to cooperate with human rights watchdogs scrutinizing its record.

“What we found is that China is systematically trying to undermine the U.N.’s ability to defend human rights, certainly in China but also globally,” Kenneth Roth, executive director of Human Rights Watch, told Reuters.

“This comes at a point where domestically China’s repression is the worst it has been since the Tiananmen Square democracy movement (in 1989). So there is much to hide and China clearly attaches enormous importance to muting criticism of its increasingly abysmal human rights record.”

Chinese foreign ministry spokesman Geng Shuang dismissed the report’s accusations as “groundless”, saying Beijing was playing an active role in the United Nations’ human rights work.

“We urge the relevant organization to remove their tinted lenses and objectively and justly view China’s human rights development,” he told a regular briefing.

Rolando Gomez, U.N. Human Rights Council spokesman, said the office did its best to protect all participants and had been “extremely vigilant in addressing and investigating all acts and perceived acts of intimidation, threats, and attacks brought to its attention”, regardless of which state committed them.

The U.N. system offers one of the few remaining channels for Chinese activists to express their views, the New York-based rights group said.

Its report, “The Costs of International Advocacy: China’s Interference in United Nations Human Rights Mechanisms,” is based on 55 interviews.

“NIP-IT-IN-THE-BUD STRATEGY”

“(Chinese President) Xi Jinping seems to have adopted a ‘nip it in the bud’ strategy with respect to activism at home, but increasingly abroad. That’s one of our messages, China’s repression isn’t stopping at its borders these days,” Roth said.

In China, activists have “decreasing space safe” from intimidation, arbitrary detention, and a legal system controlled by the Communist Party, the report said, decrying a crackdown on activists and lawyers since 2015.Some activists who have attended U.N. reviews of China’s record have been punished on their return, it said. Others have their passports confiscated or are arrested before departure.

When Xi addressed the U.N. in Geneva in January, the U.N. barred non-governmental organizations (NGOs) from attending, Human Rights Watch said.

Dolkun Isa, an ethnic Uighur rights activist originally from China, was attending a U.N. event in New York in April when U.N. security guards ejected him without explanation, despite his accreditation, it added.

Jiang Tianyong, a prominent human rights lawyer, disappeared last November, months after meeting in Beijing with U.N. special rapporteur on poverty Philip Alston who has called for his release.

Jiang, after being held incommunicado for six months, was charged with subversion. At his trial last month he confessed, saying that he had been inspired to overthrow China’s political system by workshops he had attended overseas.

“So the signal is clear – don’t you dare present an independent perspective to a U.N. investigator,” Roth said.

(Reporting and writing by Stephanie Nebehay; Additional reporting by Christian Shepherd in Beijing; Editing by John Stonestreet)

China makes disrespect of national anthem a crime

China's President Xi Jinping arrives at a welcoming ceremony for Brazil's President Michel Temer (not pictured) at the Great Hall of the People in Beijing, China September 1, 2017.

By Christian Shepherd and Venus Wu

BEIJING/HONG KONG (Reuters) – Anyone who mocks China’s national anthem faces up to 15 days in police detention after parliament criminalized such acts in a new law on Friday that covers Hong Kong and Macau.

Since taking over as president, Chinese leader Xi Jinping has ushered in new legislation aimed at securing the country from threats both within and outside its borders, besides presiding over a sweeping crackdown on dissent and free speech.

Protecting “the dignity of the national anthem” will help “promote patriotism and nurture socialist core values”, says the new law passed by the National People’s Congress (NPC).

It governs when, where and how the anthem, the “March of the Volunteers”, can be played.

The law bans its use as background music and in advertisements, rules out playing it at funerals and on other “inappropriate occasions” and prescribes administrative detention for any “distorted” or “mocking” renditions.

Those attending public events must stand to attention and sing in a solemn manner when the anthem is played.

The new law brings treatment of the anthem into line with desecration of China’s national flag, or its emblem, which has been a criminal offense punishable by up to 15 days’ detention since the 1990s. Those laws also apply in Hong Kong and Macau.

Wu Zeng, the office head of the NPC’s national laws panel, confirmed that lawmakers had agreed the law should also apply to Hong Kong and Macau by being written into their constitutional provisions, the Basic Laws.

The law has fueled concern in Hong Kong, whose residents have grown nervous over China’s perceived encroachment of the city’s autonomy following such events as the disappearance of booksellers who later emerged in mainland Chinese custody.

Hong Kong lawyer and pro-democracy lawmaker Tanya Chan said she expected “a series of obstacles” when the former British colony, which returned to Chinese rule in 1997, adopts the law.

“The rights and freedoms protected under Hong Kong laws have come under challenge in recent years,” she said. “So it is right for people to be concerned.”

The city’s Justice Secretary, Rimsky Yuen, said he hoped “the intention of the national law would be upheld without affecting Hong Kong people’s basic rights and freedoms”.

In 2015, Hong Kong football fans booed the Chinese anthem during a World Cup qualifier, prompting a fine for the territory’s football association from world body FIFA.

Last month, Shanghai police detained three men for having “hurt patriotic feelings” by dressing up as Japanese soldiers and posing for photographs outside a memorial to China’s war with Japan, state media said.

 

(Reporting by Christian Shepherd in Beijing and Venus Wu in Hong Kong; Additional reporting by Philip Wen; Editing by Clarence Fernandez)

 

Macau struggles to recover from Typhoon Hato’s destruction

Macau struggles to recover from Typhoon Hato's destruction

By Tyrone Siu and Farah Master

MACAU/HONG KONG (Reuters) – Chaos and confusion gripped Macau on Thursday after one of the strongest typhoons on record hit the territory, killing at least nine people, and leaving more than half the city still without water and power, and casinos relying on back-up generators.

Rescuers on Thursday searched submerged cars for trapped people in the former Portuguese territory, while overwhelmed emergency services scrambled to respond to crisis calls.

A man looks out from inside an apartment where some windows have been broken by typhoon Hato in Macau, China August 24, 2017. REUTERS/Tyrone Siu

A man looks out from inside an apartment where some windows have been broken by typhoon Hato in Macau, China August 24, 2017. REUTERS/Tyrone Siu

Many residents and tourists complained that the government was woefully unprepared for Typhoon Hato and its destructive winds of more than 200 kmh (124 mph).

Macau’s government broadcaster TDM said Typhoon Hato, a maximum signal 10 storm, was the strongest since 1968 to hit the world’s biggest gambling hub and home to around 600,000 people.

“The city looks like it was just in a war,” said one civil servant, who declined to be named as they were not authorized to speak to the media.

Fallen trees and debris are seen on a road following Typhoon Hato in Macau, China, August 24, 2017 in this picture obtained from social media. Karen Yung via REUTERS

Fallen trees and debris are seen on a road following Typhoon Hato in Macau, China, August 24, 2017 in this picture obtained from social media. Karen Yung via REUTERS

Hato on Wednesday hit the nearby financial hub of Hong Kong, uprooting trees, flooding streets, forcing hundreds of airline flights to be canceled and halting financial trading. There were reports of 34 people injured in Hong Kong, which had not been hit by a signal 10 typhoon for five years.

At one stage as Hato intensified, Hong Kong posted a signal 8 storm warning, saying it was likely to go higher, yet Macau’s government rated Hato only a signal 3 typhoon.

“I am shocked with the late notice and lack of preparation that was given for this superstorm. Residents are in peril and unable to assess if help is on the way,” said Ashley Sutherland-Winch, a marketing consultant in Macau.

Exteriors of buildings, including parts of multi-billion dollar casinos, were ripped away by Hato’s powerful winds.

Video footage from Macau residents sent to Reuters showed a man struggling to keep his head above water in an enclosed carpark filled with debris, while another showed a large truck toppling over and pedestrians flung across pavements. Reuters could not independently verify the footage.

While most of Macau’s large casinos, especially those operating on the Las Vegas style Cotai strip, were trying to operate as normal, many were relying on back-up generators.

Casino stocks listed in Hong Kong fell versus a rise in the benchmark Hang Seng Index on Thursday with the full impact on gambling revenues and economic cost still unknown, analysts said.

Nolan Ledarney, director of Crafted 852, a food website in Hong Kong, who was staying inside Galaxy’s casino resort with his wife and three children said guests had been corralled into safe areas.

Supermarket staff sell goods outside a supermarket during power outages after Typhoon Hato hit in Macau, China August 24, 2017. REUTERS/Tyrone Siu

Supermarket staff sell goods outside a supermarket during power outages after Typhoon Hato hit in Macau, China August 24, 2017. REUTERS/Tyrone Siu

Severe flooding overwhelmed Macau, which is in the process of building new infrastructure such as a light rail, to cope with a surge in visitors.

Macau has rapidly transformed from a sleepy fishing village over a decade ago into a major gambling hub, although infrastructure has mostly failed to keep pace with its development.

Transportation remained in chaos with damage to both of Macau’s ferry terminals and roads crammed with traffic. Schools, museums and public venues remained closed on Thursday.

“The government cannot handle the challenge as the people would expect from a self claimed first class city,” said Macau resident and political commentator Larry So.

Hato had been downgraded to a tropical storm on Thursday and was about 680 km (422 miles) west of Hong Kong and expected to weaken further as it moves inland over China.

(Writing by Farah Master; additional reporting by Anne Marie Roantree in Hong Kong and Andrew Galbraith in Shanghai; Editing by Michael Perry)