Chinese shipping companies switching to RMB for transactions

SINGAPORE: More Chinese shipping companies are asking for renminbi (RMB) to be used as the settlement currency for shipping freight rates.

The shipping sector is seeing growing usage of the Chinese currency.

To help Chinese shippers manage their exposure, major shipping broker, Freight Investor Services, has even launched a freight derivative in Chinese Yuan last month.

A forward freight agreement (FFA) allows ship owners, charterers and speculators to hedge against the volatility of freight rates.

It gives contract owners the right to buy and sell the price of freight for future dates.

FFAs are built on an index composed of a shipping route for tanker (ship) or a basket of routes for dry bulk, contracts are traded "over the counter" on a principal-to-principal basis and can be cleared through a clearing house.

International settlements in renminbi have been on the rise.

Beijing has been promoting the wider use of its currency globally through bilateral currency swaps and trade settlement deals.

Global transaction services organisation SWIFT noted a 24 per cent surge in yuan settlement in November 2012 as compared to a month before.

Shipowners like First Ship Lease Trust Management said it is a natural development for charter rates to shift from US dollars to renminbi as a significant volume of goods being transported is also priced in Chinese Yuan.

Guy Broadley, director at Freight Investor Services said: "China's involvement in the commodity story over the last 10 years is obviously been very great... last year, China's dry bulk commodity imports were equivalent to about 44 per cent of global seaborne trade. We feel that it is important for Chinese traders to be able to hedge that price risk by having a RMB-denominated contract."

But shipping analysts believe this trend is limited to small and medium-sized Chinese shipping companies, which transact the bulk of their trades domestically.

Jayendu Krishna, senior manager at Drewry said: "China has a lot of restrictions in terms of foreign currencies and because of the restrictions they are not really able to trade in what exists today is the US-denominated transactions. So, with the introduction of this RMB-denominated FFA, probably more Chinese players will be interested because they are able to hedge against the risk of the freight volatility."

Currently, most shipping chartering is settled in US dollars.

Shekaran Krishnan, partner at Ernst & Young said: "It would make a lot of sense for them to have the revenue which is the freight revenue in local RMB because it is a natural arbitrage against the cost they have to pay locally and if they have it in local currency, they can avoid the currency fluctuation that they are exposed to."

Given the limited supply of the Chinese yuan, analysts do not see the renminbi replacing the US dollar anytime soon, as the shipping industry is still very much a US dollar-dominated business.

- CNA/xq

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Cold wave claims 23 more lives in north India

NEW DELHI: At least 23 people lost their lives due to cold wave in Uttar Pradesh and Uttarakhand even as temperature in parts of north India soared, a trend that weatherman said will persist.

People in the national capital today woke up to a pleasant morning as the minimum temperature rose more than a degree from yesterday to settle at 5.8 degrees Celsius.

Delhi has been witnessing cold wave conditions for the past one week with both minimum and maximum remaining five degrees below normal, but there has been a welcome respite since yesterday.

"The temperature will rise in the coming days," the Met said.

However, in the plains of Uttar Pradesh, the biting cold wave conditions snuffed out 16 more lives during the last 24 hours as death toll due to the harsh weather touched 249 this winter.

Five persons died in Gorakhpur district which was the coldest place in the state yesterday, followed by four each in Farrukhabad and Barabanki, two in Sant Kabirnagar and one in Bijnore.

Met office said that Lucknow along with Najibabad in Bijnore were coldest in the state recording 0.5 (-6) degrees Celsius followed by Kheri with 1 deg C, Sultanpur 1.2 (-7) deg C and Gorakhpur 1.8 (-7) deg C.

In Uttarakhand, seven persons died due to cold wave even as temperature soared in most parts of the hill state giving respite to people.

All the casualties were reported from Roorkee and Haridwar districts where icy northwesterly winds continued to blow amid dense fog.

Mercury rose marginally in most places with Dehradun recording a minimum of 3.5 deg C, Pantnagar 0.2 deg C, Mukteshwar 0.2 deg C, Tehri 1.0 Pithoragarh 2.3 and Nainital 4.0 degree C, the MeT office said.

"The rising temperature at most places shows that the downtrend has finally come to an end," a MeT official said adding it was a pointer towards more pleasant days ahead.

Cold wave sweeps Jharkhand

Chilly conditions prevailed in Jharkhand with Kanke on the outskirts of Ranchi recording a minimum of 3.4 degree Celsius and Ranchi's low temperature being 8 degree Celsius today.

"Freezing conditions in North-Western areas of the country and chilly winds have brought down temperatures," an official with Meteorological department said here.

The minimum temperatures recorded in Jamshedpur and Palamau are 5.1 degree and 6.4 degree Celsius respectively, the sources said adding chill also prevailed in other parts of the state.

The minimum temperature in Kanke, which recorded zero degree Celsius yesterday for the second time this winter, improved with the mercury recording 3.4 degree Celsius, A Wadood, a Weather Scientist with Birsa Agriculture University here said.

The maximum temperatures at many places, however, remained about 20 degree Celsius, sources said.

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Retooling Pap test to spot more kinds of cancer

WASHINGTON (AP) — For years, doctors have lamented that there's no Pap test for deadly ovarian cancer. Wednesday, scientists reported encouraging signs that one day, there might be.

Researchers are trying to retool the Pap, a test for cervical cancer that millions of women get, so that it could spot early signs of other gynecologic cancers, too.

How? It turns out that cells can flake off of tumors in the ovaries or the lining of the uterus, and float down to rest in the cervix, where Pap tests are performed. These cells are too rare to recognize under the microscope. But researchers from Johns Hopkins University used some sophisticated DNA testing on the Pap samples to uncover the evidence — gene mutations that show cancer is present.

In a pilot study, they analyzed Pap smears from 46 women who already were diagnosed with either ovarian or endometrial cancer. The new technique found all the endometrial cancers and 41 percent of the ovarian tumors, the team reported Wednesday in the journal Science Translational Medicine.

This is very early-stage research, and women shouldn't expect any change in their routine Paps. It will take years of additional testing to prove if the so-called PapGene technique really could work as a screening tool, used to spot cancer in women who thought they were healthy.

"Now the hard work begins," said Hopkins oncologist Dr. Luis Diaz, whose team is collecting hundreds of additional Pap samples for more study and is exploring ways to enhance the detection of ovarian cancer.

But if it ultimately pans out, "the neat part about this is, the patient won't feel anything different," and the Pap wouldn't be performed differently, Diaz added. The extra work would come in a lab.

The gene-based technique marks a new approach toward cancer screening, and specialists are watching closely.

"This is very encouraging, and it shows great potential," said American Cancer Society genetics expert Michael Melner.

"We are a long way from being able to see any impact on our patients," cautioned Dr. Shannon Westin of the University of Texas MD Anderson Cancer Center. She reviewed the research in an accompanying editorial, and said the ovarian cancer detection would need improvement if the test is to work.

But she noted that ovarian cancer has poor survival rates because it's rarely caught early. "If this screening test could identify ovarian cancer at an early stage, there would be a profound impact on patient outcomes and mortality," Westin said.

More than 22,000 U.S. women are diagnosed with ovarian cancer each year, and more than 15,000 die. Symptoms such as pain and bloating seldom are obvious until the cancer is more advanced, and numerous attempts at screening tests have failed.

Endometrial cancer affects about 47,000 women a year, and kills about 8,000. There is no screening test for it either, but most women are diagnosed early because of postmenopausal bleeding.

The Hopkins research piggybacks on one of the most successful cancer screening tools, the Pap, and a newer technology used along with it. With a standard Pap, a little brush scrapes off cells from the cervix, which are stored in a vial to examine for signs of cervical cancer. Today, many women's Paps undergo an additional DNA-based test to see if they harbor the HPV virus, which can spur cervical cancer.

So the Hopkins team, funded largely by cancer advocacy groups, decided to look for DNA evidence of other gynecologic tumors. It developed a method to rapidly screen the Pap samples for those mutations using standard genetics equipment that Diaz said wouldn't add much to the cost of a Pap-plus-HPV test. He said the technique could detect both early-stage and more advanced tumors. Importantly, tests of Paps from 14 healthy women turned up no false alarms.

The endometrial cancers may have been easier to find because cells from those tumors don't have as far to travel as ovarian cancer cells, Diaz said. Researchers will study whether inserting the Pap brush deeper, testing during different times of the menstrual cycle, or other factors might improve detection of ovarian cancer.

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Oscar Nominations 2013: Full List

"Lincoln" is leading the way to the 2013 Oscars. This morning, the biopic about the 16th president picked up 12 Academy Award nominations, including best director for Steven Spielberg and best actor for Daniel Day-Lewis.

Ang Lee's "Life of Pi" followed close behind with 11 nominations. "Les Miserables" and "Silver Linings Playbook" tied for third place, with eight nominations each.

The Academy also named its eldest and youngest best actress nominees ever. "Beasts of the Southern Wild" star Quvenzhané Wallis, 9, is up for best actress along with "Amour" lead Emmanuelle Riva, 85.

See who made the cut below, and weigh in on who you want to win with Oscar.com's My Picks, an interactive and social Oscar ballot that allows you to pick who you think will win in each category. You can compete with your Facebook friends when the Academy Awards air on Feb. 24.

FULL COVERAGE: The 85th Annual Academy Awards

Best Picture:

"Beasts of the Southern Wild"

"Silver Linings Playbook"

"Zero Dark Thirty"

"Lincoln"

"Les Miserables"

"Life of Pi"

"Amour"

"Django Unchained"

"Argo"

My Picks: Create an Oscar Ballot and Play With Friends

Best Supporting Actor:

Christoph Waltz, "Django Unchained"

Philip Seymour Hoffman, "The Master"

Robert De Niro, "Silver Linings Playbook"

Alan Arkin, "Argo"

Tommy Lee Jones, "Lincoln"

PHOTOS: 2013 Oscar Nominees

Best Supporting Actress:

Sally Field, "Lincoln"

Anne Hathaway, "Les Miserables"

David James/Dreamworks/AP

Seth MacFarlane, Emma Stone Discuss Oscar Nominations Watch Video

Jacki Weaver, "Silver Linings Playbook"

Helen Hunt, "The Sessions"

Amy Adams, "The Master"

RELATED: Oscar's Likely Winners

Best Director:

David O. Russell, "Silver Linings Playbook"

Ang Lee, "Life of Pi"

Steven Spielberg, "Lincoln"

Michael Haneke, "Amour"

Benh Zeitlin, "Beasts of the Southern Wild"

Best Actor:

Daniel Day Lewis, "Lincoln"

Denzel Washington, "Flight"

Hugh Jackman, "Les Miserables"

Bradley Cooper, "Silver Linings Playbook"

Joaquin Phoenix, "The Master"

Best Actress:

Naomi Watts, "The Impossible"

Jessica Chastain, "Zero Dark Thirty"

Jennifer Lawrence, "Silver Linings Playbook"

Emmanuelle Riva, "Amour"

Quvenzhané Wallis, "Beasts of the Southern Wild"

Best Original Screenplay:

"Zero Dark Thirty"

"Django Unchained"

"Moonrise Kingdom"

"Amour"

"Flight"

Best Adapted Screenplay:

"Lincoln"

"Silver Linings Playbook"

"Argo"

"Life of Pi"

"Beasts of the Southern Wild"

Best Animated Feature:

"Frankenweenie"

"The Pirates! Band of Misfits"

"Wreck-It Ralph"

"Paranorman"

"Brave"

Best Foreign Feature:

"Amour"

"A Royal Affair"

"Kon-Tiki"

"No"

"War Witch"

Best Visual Effects:

"Life of Pi"

"The Hobbit: An Unexpected Journey"

"The Avengers"

"Prometheus"

"Snow White and the Huntsman"

Best Cinematography:

"Skyfall"

"Anna Karenina"

"Django Unchained"

"Life of Pi"

"Lincoln"

Best Costume Design:

"Anna Karenina"

"Les Miserables"

"Lincoln"

"Mirror Mirror"

"Snow White and the Huntsman"

Best Documentary Feature:

"Searching for Sugar Man"

"How to Survive a Plague"

"The Gatekeepers"

"5 Broken Cameras"

"The Invisible War"

Best Documentary Short:

"Open Heart"

"Inocente"

"Redemption"

"Kings Point"

"Mondays at Racine"

"Snow White and the Huntsman"

Best Film Editing:

"Lincoln"

"Silver Linings Playbook"

"Life of Pi"

"Argo"

"Zero Dark Thirty"

Best Makeup and Hairstyling:

"Hitchcock"

"The Hobbit: An Unexpected Journey"

"Les Miserables"

Best Music (Original Score):

"Anna Karenina"

"Argo"

"Life of Pi"

"Lincoln"

"Skyfall"

Best Music (Original Song):

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NATO official says more missiles launched in Syria

BRUSSELS (Reuters) - A short-range ballistic missile was fired inside Syria on Wednesday, following similar launches last week, a NATO official said on Thursday.

The official condemned as "reckless" the missile launches, which U.S. officials called an escalation of the 21-month-old Syrian civil war when their use was first spotted last month.

"The use of such indiscriminate weapons shows utter disregard for the lives of the Syrian people," he said.

The official said NATO had detected the launch of an unguided, short-range ballistic missile inside Syria on Wednesday, following similar launches on January 2 and 3. All the missiles were fired from inside Syria and landed in northern Syria, he said.

The description of the missiles fits the Scuds that are in the Syrian military's armory, but the official said NATO could not confirm the type of missile used.

The NATO official was responding to a report from a Syrian opposition activist living near the Qaldoun army base, 50 km (30 miles) north of Damascus, who said four large rockets, apparently Scuds, were fired from the base overnight.

NATO has agreed to send Patriot anti-missile batteries to protect its member Turkey from possible missile attack from Syria.

(Reporting by Adrian Croft; editing by Rex Merrifield and Sebastian Moffett)

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Football: Adebayor included as Africa Cup squads named

JOHANNESBURG: Emmanuel Adebayor will play at the 2013 Africa Cup of Nations after he was included in Togo's squad as the 16 sides finalised their 23-man squads.

Mahamadou Diarra will meanwhile miss the tournament, and a late-minute change left Brown Ideye thrilled and Nigeria team-mate Raheem Lawal devastated.

It was all part of the drama ahead of the January 19-February 10 tournament that will be played in five South African cities.

Tottenham striker and Togo captain Adebayor said last year he would shun the competition, citing security concerns after being part of the squad attacked in Angola ahead of the 2010 finals.

A player and an official were killed by separatists seeking independence for the oil-rich Cabinda enclave and Adebayor escaped injury by cowering under a bus seat.

As Tottenham, the Togo president and national football officials became involved in the saga, Adebayor refused to reveal his plans, and his inclusion became official only when the 23-man squad was named by coach Didier Six.

Perennial underachievers Togo are in the Rustenburg-based 'group of death' with title favourites Ivory Coast and other former champions Algeria and Tunisia and are given little hope of survival.

Mali, third last year and considered likely quarter-finalists after being drawn with the Democratic Republic of Congo, Ghana and Niger, suffered a late setback when Fulham midfielder Diarra pulled out injured.

A recurring knee injury failed to heal, meaning the veteran will miss a second consecutive Cup of Nations, although the blow was cushioned by the return of another experienced midfielder, Mohamed Lamine Sissoko.

Turkey-based midfielder Lawal was included in a Nigerian squad leaked to the media a day before the final-squad deadline, only to be replaced by striker Ideye when it was officially announced.

Home-based players have traditionally been ignored by Super Eagles coaches, but Stephen Keshi has chosen six, including goalkeeper Chigozie Agbim and strikers Sunday Mba and Ejike Uzoenyi from Enugu Rangers.

Shock absentees from the 2012 tournament, Nigeria face defending champions Zambia and outsiders Burkina Faso and Ethiopia in Group C and are expected to make the knock-out phase at least.

Debutants Cape Verde made a couple of last-minute changes with injured midfielder Odair Fortes and unavailable striker Ze Luis replaced by Portugal-based pair Platini and Rambe.

Cape Verde face hosts South Africa in the January 19 opening fixture at the 90,000-seat Soccer City stadium in Soweto and also confront former champions Morocco and Angola in the first round.

- AFP/de

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Severed head of Indian soldier yet to be found: Army

RAJOURI/NEW DELHI: The Indian Army on Wednesday said both the soldiers killed during an attack by Pakistani troops across the Line of Control (LoC) in Jammu and Kashmir were decapitated and that one severed head was yet to be recovered.

"The bodies of two soldiers were brutalised — one head was severed and another body was beheaded... It (the head of one of jawan) has not being recovered — probably they have taken it along with them", deputy commander of the 25 Division Brigadier J K Tiwari told reporters in Rajouri.

The Army had not been able to recover the head of Lance Naik Sudhakar Singh, he said. Singh was killed along with Lance Naik Hemraj in Tuesday's unprovoked attack in Medhar area in Poonch sector.

The Army on Tuesday said one of the two bodies was mutilated while other sources said the heads of both the Indian soldiers have been chopped off and that one was taken away by Pakistani intruders.

According to Army sources in Delhi, the Pakistan army regulars who were involved in the attack wore black uniforms and they had slit the throats of both the soldiers in a brutal manner and that the bodies were badly mutilated.

Giving details about the incident, Tiwari said eight soldiers belonging to the 13 Rajputana Rifles were carrying out area domination patrolling (ADP) in two escort parties including 6 jawans on back side and two on the front about 600 metres inside the LoC.

Army officials said the fence on the LoC in that particular area in Krishna Ghati is built 2 Kms inside Indian territory and the Pakistani troops did not have to cross the obstacle to enter Indian territory.

Then men wearing black clothes, suspected to be from the Pakistani special forces, took benefit of the thick fog and dense forests and laid ambush, Tiwari said, adding that they fired on patrol party and fire fight continued for 30 minutes. There were also reports that the Pakistani troops belonged to 29 Baloch regiment.

"After the firing stopped, patrol parties moved ahead and came acoss the two dead jawans in a mutilated condition", he said. The incident took place near the Sona Gali area close to the LoC.

The Mendhar area has been the hub of ceasefire violations and cross-border firings in the last one year with close to 90 such incidents.

The area is known as the Barasingha battalion area and is under the overall command of the 10 brigade of the Indian Army.

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Hospitals Flooded With Flu Patients

U.S. emergency rooms have been overwhelmed with flu patients, turning away some of them and others with non-life-threatening conditions for lack of space.

Forty-one states are battling widespread influenza outbreaks, including Illinois, where six people -- all older than 50 -- have died, according to the state's Department of Public Health.

At least 18 children in the country have died during this flu season, according to the U.S. Centers for Disease Control and Prevention.

The proportion of people seeing their doctor for flu-like symptoms jumped to 5.6 percent from 2.8 percent in the past month, according to the CDC.

Northwestern Memorial Hospital in Chicago reported a 20 percent increase in flu patients every day. Northwestern Memorial was one of eight hospitals on bypass Monday and Tuesday, meaning it asked ambulances to take patients elsewhere if they could do so safely.

Dr. Besser's Tips to Protect Yourself From the Flu

Earliest Flu Season in a Decade: 80 Percent of Country Reports Severe Symptoms Watch Video

Flu Season Hits Country Hard, 18 States Reach Epidemic Levels Watch Video

Most of the hospitals have resumed normal operations, but could return to the bypass status if the influx of patients becomes too great.

"Northwestern Memorial Hospital is an extraordinarily busy hospital, and oftentimes during our busier months, in the summer, we will sometimes have to go on bypass," Northwestern Memorial's Dr. David Zich said. "We don't like it, the community doesn't like it, but sometimes it is necessary."

A tent outside Lehigh Valley Hospital in Salisbury Township, Pa., was set up to tend to the overflowing number of flu cases.

A hospital in Ohio is requiring patients with the flu to wear masks to protect those who are not infected.

State health officials in Indiana have reported seven deaths. Five of the deaths occurred in people older than 65 and two younger than 18. The state will release another report later today.

Doctors are especially concerned about the elderly and children, where the flu can be deadly.

"Our office in the last two weeks has exploded with children," Dr. Gayle Smith, a pediatrician in Richmond, Va., said

It is the earliest flu season in a decade and, ABC News Chief Medical Editor Dr. Besser says, it's not too late to protect yourself from the outbreak.

"You have to think about an anti-viral, especially if you're elderly, a young child, a pregnant woman," Besser said.

"They're the people that are going to die from this. Tens of thousands of people die in a bad flu season. We're not taking it serious enough."

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Freed Iranians arrive in Damascus after prisoner swap

DAMASCUS/ISTANBUL (Reuters) - Forty-eight Iranians freed by Syrian rebels in exchange for more than 2,000 civilian prisoners held by the Syrian government arrived in central Damascus on Wednesday, a Reuters witness reported.

The Syrian government has not referred to the prisoner swap and the whereabouts of the civilian prisoners was not immediately known.

Opposition groups accuse it of detaining tens of thousands of political prisoners during his 12 years in office and say those numbers have spiked sharply during the 21-month-old civil war.

The Syrian rebel al-Baraa brigade seized the Iranians in early August and initially threatened to kill them, saying they were members of Iran's elite Islamic Revolutionary Guard Corps sent to fight for President Bashar al-Assad.

The Islamic Republic, one of his staunchest allies, denied this, saying they were Shi'ite Muslim pilgrims visiting shrines, and it asked Turkey and Qatar to use their connections with Syrian insurgents to help secure their release.

The freed Iranians arrived at a Damascus hotel in six small buses, looking tired but in good health, each carrying a white flower, and they were welcomed by Iranian Ambassador Mohammad Reza Sheibani. They did not speak to reporters.

Bulent Yildirim, head of the Turkish humanitarian aid agency IHH which helped broker the deal, told Reuters by telephone from Damascus shortly beforehand that the reciprocal release of 2,130 civilian prisoners - most of them Syrian but also including Turks and other foreign citizens - had begun.

Syrian government forces have struck local deals with rebel groups to trade prisoners but the release announced on Wednesday was the first time non-Syrians were freed in an exchange.

The Damascus government has periodically freed hundreds of prisoners during the conflict but always stressed such detainees "do not have blood on their hands."

Given the number of political prisoners held during the course of Assad's rule, missing persons became a key issue when street protests against him first erupted in March 2011.

Turkey is one of Assad's fiercest critics, a strong backer of his opponents and proponent of international intervention. It has denounced Iran's stance during the Syrian uprising, which has killed around 60,000 people according to a U.N. estimate.

Turkey, Gulf Arab states, the United States and European allies support the mainly Sunni Muslim Syrian rebels, while Shi'ite Iran supports Assad, whose Alawite minority is an offshoot of Shi'ite Islam.

A pro-government newspaper said on December 31 that Syrian forces arrested four Turkish fighter pilots who were trying to sneak into a military airport with an armed group in the northern province of Aleppo.

The Damascus-based al-Watan newspaper said the arrests at the Koers military base, 24 km (15 miles) east of Aleppo city, proved "scandalous Turkish involvement" in Syria's crisis.

TURKEY, QATAR INTERVENE

The al-Baraa brigade, part of the umbrella rebel organization, the Free Syrian Army, said in October it would start killing the Iranians unless Assad freed Syrian opposition detainees and stopped shelling civilian areas.

But Qatar, following a request from Iran, urged the rebels not to carry out the threat.

Insurgents fighting to topple Assad accuse Iran of sending fighters from the Revolutionary Guards to help his forces crush the revolt, a charge the Islamic Republic denies.

The rebels now control wide areas of northern and eastern Syria, most of its border crossings with Turkey and a crescent of suburbs around the capital Damascus.

But Assad's government is still firmly entrenched in the capital and controls most of the densely populated southwest, the Mediterranean coast and the main north-south highway.

The IHH has been involved in previous negotiations in recent months to release prisoners, including two Turkish journalists and Syrian citizens, held in Syria.

The humanitarian group came to prominence in May 2010 when Israeli marines stormed its Mavi Marmara aid ship to enforce a naval blockade of the Palestinian-run Gaza Strip and killed nine Turks in clashes with activists on board.

(Additional reporting by Oliver Holmes in Beirut and Marcus George in Dubai; Writing by Nick Tattersall)

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Hong Kong leader survives impeachment bid

HONG KONG: Hong Kong pro-democracy lawmakers failed in an unprecedented bid on Wednesday to impeach the city's embattled Beijing-backed leader, after they accused him of breaking housing laws and urged him to quit.

The city's first impeachment motion, which accused Leung Chun-ying of lying, dereliction of duty and serious breaches of the law in a row stemming from illegal structures at his luxury home, was denied after eight hours of debate.

The 27 pro-democracy lawmakers who signed the joint motion -- which they said was a symbolic move -- voted in favour, while 37 voted against in the 70-seat legislature which is dominated by pro-Beijing members.

Wednesday's vote followed a protest on New Year's Day in which tens of thousands took to the streets to urge Leung to quit and to press for greater democracy, 15 years after the city returned to Chinese rule.

The former British colony maintains a semi-autonomous status, with its own legal and judicial system, but cannot choose its leader through the popular vote.

Leung took office in July after he was picked by a 1,200-strong election committee dominated by pro-Beijing elites, amid rising anger over what many perceive to be China's meddling in local affairs.

China has said the chief executive could be directly elected in 2017 at the earliest, with the legislature following by 2020.

Unauthorised structures are a politically sensitive issue in the space-starved city of seven million and demonstrators have used the scandal to press for universal suffrage in choosing Hong Kong's leader.

Leung secured the chief executive role after criticising his rival Henry Tang over illegal structures at Tang's home.

But he has since acknowledged and apologised for structures at his own home which were built without planning permission.

Maverick lawmaker "Long Hair" Leung Kwok-hung, wearing a T-shirt reading "We topple a tyrant", accused the new leader of lying about his own structures during campaigning when he presented the impeachment motion earlier on Wednesday.

"He has used dishonest ways to win the election," he said.

Chief Secretary Carrie Lam, second in command in Leung's administration, said the motion was unnecessary and urged lawmakers to work together on policy and livelihood issues.

But Democratic Party chairwoman Emily Lau said the motion was a symbolic gesture to show the deepening public mistrust toward Leung, claiming the leader had "cheated his way to power".

"This is the first time we have a motion in the legislature to impeach a cheating chief executive," she said.

If the motion had been passed, the city's highest court would have had to initiate an investigation. At least two-thirds of the legislature would need to endorse a guilty finding before Leung could be removed from office.

Earlier, rival protesters traded barbs outside the legislature and security personnel had to step in at one point when an angry pro-government supporter charged towards the rival group, TV footage showed.

Leung's popularity ratings have fallen since the controversy, with discontent over issues including sky-high property prices and anti-Beijing sentiment remaining high.

- AFP/xq

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