CHAIRMAN’S STATEMENT
Interim Report 2015/2016
CHAIRMAN’S STATEMENT
3
To Our Shareholders,
“Life belongs to the living, and he who lives must be prepared for changes.”
This is a famous quote by Johann Wolfgang von Goethe, a German literary maestro in the eighteenth century.
Continental Europe underwent the French Revolution in the eighteenth century, which changed the fate of the whole
Europe. In the course of exploring new ways of life and struggling amidst difficulties and obstacles, thinkers and artists
wished to have their try in making some changes to an era of turmoil, by creating works of eternity as their calls for
idealities. The course of history is a cyclical loop. In the present day of the twenty-first century, the world is also facing
challenges posed by economic changes and impacts caused by contradicting forces.
In the latest issue of the
World Economic Outlook
, the International Monetary Fund pointed out that risks were being
tilted towards emerging markets, under the weak rally of the global economic growth and the uneven pace of picking
up in different economies. Developed economies will recover moderately, whilst emerging markets and developing
economies will find themselves in the new reality of slackened growth. According to the latest forecast, the global
economy will grow by 3.4% in 2016 and 3.6% in 2017, a slight dip from the forecast released in October 2015.
As the second largest economy in the world, China still represents an important engine to drive the global economy.
Nevertheless, the transformation of China’s economy from investment and manufacturing to consumption and service
industries has brought forth slowdown in the nation’s economic development. China’s focus will be on how to create
favourable economic conditions, foster reform of industrial structure and maintain moderate economic growth.
According to Xi Jinping, the president of China, year 2016 will be the first year of the nation’s 13th Five-year Plan.
Reforms shall steer towards building a “comprehensively well-off society” and towards establishing new development
mechanisms, grasping key areas, focusing on key issues, clarifying responsibilities and enforcing strictly, to ensure that
the expected results will be delivered in all aspects of the reform. The forces to drive the nation’s economic growth will
come, firstly, from the deeds and determinations for the comprehensive intensification of reforms and establishment
of a new mechanism of an open economy and, secondly, from the internal force to be generated from China’s robust
economic momentum and the strong and effective policy guidance from the government.
Hong Kong is facing multiple challenges, including economic slowdown in Mainland China, rising trend of interest rate in
the United States, as well as deceleration of industrial development internally. Buoyed by the flexible policy management
and advanced regulatory standards, Hong Kong’s capital market, commodities market and labour market are expected to
swiftly adjust themselves. It is generally expected that the territory has sufficient buffer in place to guard itself against
the risks arising from downside pressure.
For more than four decades since its inception, New World Group has worked in tandem with the development of
China as well as Hong Kong. The vision of flexible management, extensive experience and the steadfast belief of our
team have contributed to a solid development foundation of the Group and enabled it to weather the ups and downs
of global economic development. “Be reminded to be vigilant in peace time, get prepared for dangers, and stay free
from calamity with such preparations”, as a Chinese saying goes, shall be the best ways to prepare for any impending
challenges and future economic changes.
