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Chow said he felt especially aggrieved by the sight of Japanese flags. He remarked later that people carrying the Japanese flag clearly lack basic knowledge of the humiliating history of the nation as well as Hong Kong itself, at the hands of the Japanese. "Have they never heard about the nation's humiliation? Do they know Japan once occupied Hong Kong for three years and eight months?"

Citing a CCPIT survey on foreign companies operating in China, Gao noted that foreign firms are still bullish on the prospects of the Chinese market.

Chon Shi-yong. [File photo]

Chinese smartphone makers provide half or more of the world's estimated 1.5 billion annual unit sales. Losing the ability to supply parts to ZTE and Huawei "would mean losing close to a quarter of the smartphone market," said Minatake Kashio, director of Tokyo-based research firm Fomalhaut Techno Solutions.

Citibank's index unit announced two new bond indices on China and the inclusion of Chinese treasuries in its series of government bond indices earlier this year.