Did China profit from corrupt Sri Lanka deals?

Mahinda Rajapaksa, the former president of Sri Lanka, was the driving force behind such a project, a $1.4 billion crown jewel to be built near Colombo by a state-backed Chinese construction firm.

But in the three months since Rajapaksa was unseated in an election stunner, the project has been put on hold, and allegations of possible corruption in the bidding process have tarnished the former president's reputation.

Sri Lanka's new president, Maithripala Sirisena, has directed his administration to investigate all deals signed by the previous government, looking for irregularities in contract negotiations.

Sirisena's government claims that many deals signed during the former president's rule, like the Port City project, did not go through the proper approval process. The number of deals under review is likely in the hundreds, worth billions of dollars.

Chinese companies are at the center of the storm. Rajapaksa had worked to develop close ties with Beijing, often at the expense of relations with New Delhi and the West. During his administration, Chinese firms won lucrative contracts to build roads, bridges and other large projects.

Related: Chinese investors trade way more often than Americans

Sri Lanka's new finance minister, Ravi Karunanayake, didn't pull any punches on the matter, telling CNN that many infrastructure deals involving Chinese firms are suspect.

"The Chinese companies used the opportunity of a corrupt regime to crowd out other companies coming in," he said. "There was no even playing field."

Bridges were built where there were no rivers, he said. Airports were constructed in the middle of nowhere. "That was the type of corruption that was going on," he said.

Asked which deals were tainted by corruption, Karunanayake replied with a question of his own: "Which deals weren't?"

Rajapaksa, the former president, was not able to be reached for comment. But in an interview with the South China Morning Post, he defended his actions and said China was being used as a political scapegoat.

"I wanted development for Sri Lanka and China was the only one which had the resources and the inclination to help me," he said. "They should be thankful to China for the help they extended; instead these people are treating China like a criminal."

China's Ministry of Foreign Affairs did not respond to a request for comment.

Related: The strong dollar is hurting emerging markets

Sri Lanka, traditionally seen as being in India's sphere of influence, is strategically important to both New Delhi and Beijing.

While it has put the Port City project on hold, the new administration is keen to stress that its close ties to China remain intact. Sirisena traveled to China within two months of being sworn in, and Beijing has pledged around $1 billion in new grants.

Karunanayake described the current relationship with Beijing as "very warm."

"It wasn't just Chinese companies," Karunanayake said. "It was basically anybody who achieved their objective, to get money in their pockets."

Still, the new leadership is keen to re-balance Sri Lanka's international partnerships.

"We now have an open invitation to the world. We would like to see anybody good bringing the best of investments to Sri Lanka," the new finance minister said.

"It could be India, China, the U.S., Europe, Myanmar, Maldives," he said. "We want a clean, transparent and accountable approach, which helps people to see 'yes the rule of law works in Sri Lanka.' "

The new government itself has pledged to stamp out corruption at government level within its first 100 days.

"We too have to walk the talk," said Karunanayake.

Related: Score one for China! U.S. loses Asia bank tussle

CNNMoney (Hong Kong) April 2, 2015: 9:38 PM ET

10.20 | 0 komentar | Read More

Fourth season for 'House of Cards,' confirmed

The announcement came on Thursday via the show's official Twitter feed, which posted a "season 4 coming 2016" picture and a message from the show's protagonist, president Frank Underwood: "I will leave a legacy."

Season three premiered on Netflix back in February.

This official order for season four took a long while -- which is what sometimes happens as TV shows mature and become more successful.

Netflix and the show's producer, Media Rights Capital, have both benefited from the show's status as a pop culture phenomenon, so they had to negotiate about how to divvy up the spoils.

There's presumably still more to figure out, since Netflix did not confirm any details on Thursday about which cast members will be returning.

But Variety reported that Kevin Spacey, who plays Underwood, and Robin Wright, who plays his wife, "have signed on for another 13 episodes of the show, according to sources familiar with the production."

Netflix famously ordered the first two seasons of "House of Cards" as a pair back in 2011. Then the streaming service ordered the third season before the second season even debuted.

That's why there were some raised eyebrows when the company didn't announce a fourth season right around the time of the third's premiere.

The show's creator, Beau Willimon, was mum in February when I asked him about the future of the Machiavellian story, saying he wanted to focus on promoting the third season.

But given the cliffhanger at the end of the episodes -- no spoiler here -- a fourth season always seemed likely in some form.

Rachel Brosnahan, who plays Rachel Posner in the series, was asked on "CBS This Morning" earlier this week about whether there would be more episodes.

"I think there has to be," she said. "Once you get to the end of season three, I think there must be."

CNNMoney (New York) April 2, 2015: 7:23 PM ET

10.20 | 0 komentar | Read More

The world's hottest stock market is in China

The Shenzhen Composite has surged a whopping 45% so far -- easily making it the world's hottest market in 2015. China's benchmark Shanghai Composite has also jumped a staggering 19%.

These giant market leaps are at odds with the broader Chinese economy -- GDP growth is clocking a slower pace and recent economic data points have been disappointing.

But experts say that Chinese investors are betting the central government will be forced to take stimulus action to revive the sluggish economy -- a move that is expected to keep lifting stocks.

"The equity market clearly believes the Chinese government will continue to take policy action to achieve its growth target, and poor growth statistics will lead to greater policy easing," wrote BNP Paribas equity strategist Manishi Raychaudhuri in a research note.

The country's banks have also been told they can keep less cash in reserve, and benchmark interest rates have already been cut twice this year. Both moves have boosted stocks, according to Michael Liang of Foundation Asset Management. Economists predict the central bank will cut interest rates even further.

Shenzhen, in particular, has been helped by its mix of listed companies -- the index is full of young tech, media and telecom firms. In Shanghai, large state-owned firms are the main attraction.

Experts say China's equities boom has also been fueled by renewed interest from retail investors.

Back in 2013, investors fled in droves after a series of fat-finger trading errors damaged confidence and raised questions over poor market regulation.

Related: Chinese investors trade way more often than Americans

Now, many individual investors are taking their money out of alternative investments -- such as the flailing property sector -- and putting it back into stocks.

About 170,000 new stock trading accounts are opened per business day in China, more than 10 times the average for last year, according to BNP.

China's massive stock rise is only lining the pockets of domestic investors -- foreign investment into Chinese stocks is still largely restricted. Trading volume through a program that launched last year allowing foreigners to invest in Shanghai has contributed a negligible fraction of daily turnover, Raychaudhuri said.

But for Chinese investors, "the wall of money seems destined to continue flowing, at least in the near term," said Raychaudhuri.

CNNMoney (Hong Kong) April 2, 2015: 10:39 PM ET

10.20 | 0 komentar | Read More

Josh Gad on Trevor Noah, 'Frozen' and his new show with Billy Crystal

Josh Gad has been a correspondent on "The Daily Show," a snowman in "Frozen," and now stars with Billy Crystal.

Gad sat down with me in New York on Wednesday to talk about his wide-ranging career along with giving his insights about the future of "The Daily Show," and why new "Daily Show" host Trevor Noah shouldn't edit his tweets.

Gad, who is the grandson of Holocaust survivors, said that some of Noah's tweets were "insensitive," but defended Noah's right as a comedian to make the jokes. He also said "The Daily Show" will be fine with Stewart's new successor.

Gad will be joining another veteran comedian Billy Crystal for his new FX show "The Comedians," which debuts on April 9.

Here is the edited version of the conservation.

Josh Gad will join Billy Crystal for "The Comedians" which premieres on April 9.

Let's start with "The Comedians." With such a prolific career, why go back to television?

I had no intention of going back to TV. I've been unlucky in love with television... Comedy on TV is so hard because it's the golden age of drama and genre TV and you have these hooks like "Game of Thrones" and "Mad Men" where an audience week-to-week makes it appointment television, whereas comedy is more fleeting, so I'm like, "eh, I don't know."

Then I go to perform at this event with Billy Crystal... and Billy comes up to me afterwards and says to me "I'm developing this show based on this Swedish series. I would love for you to take a look at it." I said I don't know if I'm interested in doing any TV right now, but I'll at least watch this and within five minutes I knew I was hooked.

Do you think that "The Comedians" is a series suited for a multi-platform audience?

I think there's a number of reasons that "The Comedians" seems to potentially work as well as it does.

At its core, it's a show about this generational disconnect that exists between two guys who are pursuing the same end goal of doing comedy... Then on the surface, you've got this sketch comedy show that they're doing which provides ample opportunity to do sketches that can provide for viral videos. I think the hope, at least, is that you have this show within a show that almost acts as like mini-SNL for us.

You had one of your first big breaks on "The Daily Show." What was it like to work with Jon Stewart?

Working with Jon Stewart is a master class in comedy.

There's this ritual, especially when you're doing a field piece on the "Daily Show," where you present your material with your field producer to Jon. You sit in his office, and he's always chewing this big wad of gum, and you watch this professorial type figure dissecting every word. And clearly in his beautiful mind he's putting together this mathematical equation that is somehow, no matter how funny what you presented is, funnier that what you could ever imagine.

That's Jon's gift.

What do you think "The Daily Show" will be without him?

I think the beauty of Trevor Noah is that there is no way, shape, or form confusing him with Jon Stewart, and that is a great thing.

It will survive because Jon Stewart's "Daily Show" will always be Jon Stewart's "Daily Show." "Saturday Night Live" was never supposed to survive past its first five years... It's the structure that keeps us interested.

Getting to know a new performer I think will be a big part of its success.

Speaking of Noah, what did you think of the controversy surrounding him?

I think we need to be very careful with about how politically correct we are getting about comedy. Look, I'm Jewish. I am very sensitive to any sort of comments that come off as insensitive having been the grandson of Holocaust survivors. I'm very wary of anyone crossing a line.

Do I think his comments were particularly hysterical? No. Do I think that they were somewhat insensitive? Yes. Do I think he should edit any of those comments, or we should edit any of those comments? Absolutely not.

Anybody who is a comedian has the right to analyze, has the right to dissect, and has the right to provoke. Otherwise, we wouldn't have greats... That needs to be protected at all costs. We can disagree, but to punish comedians who are making a living out of doing provocative material I don't know if I agree with that.

Even though I don't agree with the content I don't know if I agree with the punishment.

I'd be remiss if I didn't ask about newly announced "Frozen 2." Is there anything you can tell us about it?

Only that there will be a "Frozen 2." You heard it here second! [laughs]

Disney CEO Bob Iger has called "Frozen" one of Disney's top five franchises. Why do you think that the film has become such a brand for Disney (DIS)?

What "Frozen" did so well was it told a simple story through a new prism.

There aren't many movies I can show my kids, and I have two daughters, that are about the strong bond between siblings. That's an aspect of "Frozen" that I think sets it apart. The idea of true love being presented differently than how it has been before is another reason, the songs are so unbelievably catchy... and actually I think what it all boils down to is Olaf. [laughs]

No, I think you have these other great characters who also connect with the boys, so you've pretty much covered every demographic with these themes that are universal whether your 2 or 92.

"Frozen" was the second time you worked with songwriter Robert Lopez. The first was "The Book of Mormon" in 2011. What was it like to be an original member of one of the most successful shows in Broadway history?

My involvement with "Book of Mormon" goes back to 2007 where I got a phone call from Bobby Lopez saying, "I'm working on this new musical with Trey Parker and Matt Stone about Mormons"... and I'm like my god of course I would want to be a part of that.

Then they sent me the demo and I listened to the songs and I hear this song "Hello" which is harmless and brilliant... then I get to this song with a different title at the time, but eventually that would be known as "Hasa Diga Eebowai." I finished it and I call my agent and I said, "boy, I can't be a part of this." And he said why and I said, "because I will walk out of the theater and get shot in the face if I have anything to do with this musical." [laughs]

I sort of took this leap of faith that you often have to when you believe in the content and you believe in the team and I knew in my heart it would be one of the most special things I ever got to work on, and I sort of knew I had to be apart of it.

So finally, both you and Billy Crystal have voiced Disney characters, Olaf the Snowman for you and he's Mike Wazowski from "Monsters Inc." Did you ever rub it in that kids love Olaf more?

The question should really be, does a day go by where I don't rub it in Billy's face? [laughs]

Here's the problem with that equation though. My daughter is much more obsessed with Mike Wazowski than she is with Olaf, so he'll forever hold that on me.

Related: Disney's 'Frozen' sequel is on the way

Related: Trevor Noah to replace Jon Stewart as new host of 'The Daily Show'

CNNMoney (New York) April 1, 2015: 5:56 PM ET

10.20 | 0 komentar | Read More

CBS to turn '60 Minutes' Segment into 'Patriots Day' Movie

The movie, "Patriots' Day," is about Ed Davis, the former Boston police commissioner who helped lead the city's response to the Boston Marathon bombing in 2013. CBS announced the production of "Patriots' Day" on Tuesday.

What the network announced at the same time, more subtly, was "60 Minutes Productions," a unit that strives to strike deals like this one. The unit is led by "60 Minutes" senior producer Michael Radutzky, who will also be a producer of the movie.

"For years, we've been helping others put our stories on the screen. Now we're doing it for ourselves," a "60 Minutes" spokesman said Wednesday.

The arrangement is part of a larger trend in media. Magazine articles and TV news reports have long been mined for raw material by Hollywood screenwriters. More and more, the writers and publishers want to stay involved as stories are fictionalized, so that they might benefit financially down the line.

The movie will be about former Boston police commissioner Ed Davis, who helped lead the city's response to the marathon bombings.

To put it simply, it's a potential new revenue source for news organizations. (CBS declined to comment on the specific financial model for "Patriots' Day.")

"60 Minutes Productions" hasn't been mentioned publicly until this week. But Radutzky, a 20-year veteran of "60 Minutes," has been seeking ways for the newsmagazine to work with CBS Films for some time.

A CBS Films spokesman said "the idea of finding a ['60 Minutes'] segment to adapt as a CBS Films release has been floating around in discussions for years."

"While 'Patriots' Day' is the first project to move forward, we hope that there will be plenty more to come as we continue to work with Radutzky on finding more '60 Minutes' content for the big screen," CBS Films said.

"Patriots' Day" will be based on Davis's account of the marathon bombing and the manhunt that ensued. Davis first shared his account in a "60 Minutes" interview shortly after the bombing.

According to a press release, "CBS Films has secured Ed Davis' life rights as well as all of the information in connection with the '60 Minutes' story he appeared in."

When the interview aired in April 2013, CBS Films executives talked with Radutzky about the possibilities for a project, and Radutzky subsequently met with a variety of Hollywood producers about it, including one who ultimately shepherded the project along, Scott Stuber.

Stuber was working with actor Mark Wahlberg on the upcoming comedy "Ted 2." When Stuber mentioned the "Patriots' Day" idea to Wahlberg, there was immediate interest, and Wahlberg is now attached as a producer. Reports indicate that he may also star in the movie.

Related: Rolling Stone sales double with 'Boston Bomber' issue

Related: Boston bomb victims face lifetime of medical bills

CNNMoney (New York) April 1, 2015: 7:02 PM ET

10.20 | 0 komentar | Read More

Chinese investors trade way more often than Americans

That's when pesky fees and human error tend to drag down performance. Unless you get super lucky, this common mistake can turn into an expensive double-whammy.

Investors in China apparently didn't get this "less is more" memo.

Eighty-one percent of retail investors in China surveyed by State Street said they trade at least once a month. That's the highest of any country on the planet. Likewise, 73% of investors in Hong Kong said they trade monthly or more often in stocks, bonds, currencies and other securities.

Those are very high figures, especially considering just 53% of Americans and 32% of French investors say they trade monthly or more often.

"In the majority of cases, this does not work out to the benefit of the investors. Frequent trading destroys the value of your portfolio," said Suzanne Duncan, global head of research at State Street's Center for Applied Research.

Related: The two biggest mistakes investors make

She pointed to fees tied to each transaction as well as the tendency for investors to buy high and sell low.

In other words, American investors should not emulate their Chinese peers in this financial strategy. It's telling that only 3% of Chinese investors told State Street they feel prepared to meet their financial goals, compared with 20% of U.S. investors.

Related: China's stock market skyrockets

Investing as a form of gambling: So what's behind the desire to trade frequently in China? Part of it may be a cultural difference.

While most Americans say they invest to meet their retirement goals, many people in China and other Asian countries say they do it because it's enjoyable.

"It's fun. It's what they do as a hobby," said Duncan.

Gambling is officially illegal in China -- with the exception of Macau -- which may encourage some Chinese to get their fix through stock wagers.

There's a saying in China that the domestic equity market is a "better casino than Macau," a Shanghai-based financial professional told CNNMoney.

"It's hard to find people not trading stocks these days, especially in big cities. It's the best pastime for the retired," she said.

Related: Emerging markets are the biggest loser from the strong dollar

Short-term focus: Alvin Cheung, an associate director at Prudential Brokerage in Hong Kong, said some people come into his office every day to trade stocks.

"People are very concerned about the stock market," he said. "The society in Hong Kong encourages people to invest as early as possible."

Part of the short-term focus on stocks may be fueled by painful memories of Mainland Chinese markets, which until recently had struggled mightily despite the country's enormous growth.

"In China you have had a disastrous market for over 20 years. So many people lost so much that they don't have a lot of trust in companies," said Andrew Stotz, a financial analyst who is based in Thailand.

"Hence, they view the market as just a place to gamble and place short-term bets," he said.

Related: China's big chess move against the U.S.

Buying at the top? It's easy to see how the recent gains could encourage Chinese investors to tinker even more with their portfolios. The Shanghai Composite has nearly doubled over the past year alone.

Forty-two percent of Chinese investors told State Street they would be more inclined to invest additional savings if the markets went up significantly, compared with 27% of global investors.

"They have the tendency to buy high and sell low. That's the natural inclination," said Duncan.

-- CNN's Vivian Kam contributed to this report.

Related: Lloyd Blankfein: 'There's no place for pure, unregulated capitalism.'

CNNMoney (New York) April 1, 2015: 9:54 PM ET

10.20 | 0 komentar | Read More

Will Instagram shut down this 17-year-old's app?

Los Angeles high school student Caleb Benn has developed an app called Uploader for Instagram, which is exactly what it sounds like. It allows users to upload photos to Instagram directly from their computer instead of solely from their phone, which has long been a frustration.

It took Benn a weekend to build and it has been on the Apple app store for a couple weeks, where it's growing in popularity. He said it's making him $1,000 a day. (The app costs $4.99.)

Instagram isn't a fan.

An engineer for the company sent Benn an email on Friday, saying the app violated the company's terms of service and he needed to fix the app by Monday to get it in line.

It's Tuesday, and Benn hasn't fixed anything, mostly because "fixing it" would render the app useless. He said he responded to the company but hasn't heard back.

Instagram declined to comment for this article.

Related: Instagram adds app just for collages

"I believe it's entirely legal for my app to perform these actions," Benn said.

Technology attorney Mark Grossman, of law firm Tannenbaum Helpern Syracuse & Hirschtritt, disagrees. (He is not affliated with Benn or Instagram.)

"He's wrong," Grossman said.

Instagram, owned by Facebook (FB, Tech30), has restrictions against using its private API, which Benn's app uses.

Benn admitted he got access to the API by hacking Instagram. "But not to cause damage or anything," he said.

Chris Messina, a Silicon Valley technologist (and, incidentally, the inventor of Twitter's hashtag), posted about Benn's app on Product Hunt, a platform where users review and discuss new technology. Many commenters predicted Benn's app will be shut down.

Messina told CNNMoney the problem is that accessing the API "opens up possibilities for all kinds of abuse, from spambots or people uploading stuff from other channels."

Plus, Messina said, if Instagram wanted users to post from a computer, it would make that possible.

"Instagram, from a product perspective, is intended to be about capturing the moment using your phone's camera," he said. Start enabling computers to upload content, and it could take away the platform's aesthetic and tone.

"That erodes the user experience," he said.

Related: New app offers free trading. Millennials jump in

We downloaded Benn's app at CNNMoney, and while it does work as promised, it's not terribly user friendly. Applying filters is not nearly as easy as using the iPhone app (and the window that pops up is tiny). Benn said he's received similar feedback, and is working to improve it.

If Instagram does want people to stop downloading his app, it could feasibly ask the Apple app store to stop carrying it. But Benn said that won't affect existing users. (Apple did not immediately return request for comment.)

Grossman said he'd counsel Instagram to block Benn and his technology quietly, since it doesn't look great for a big company to chase a 17-year-old with scary legal letters. Best-case scenerio, Grossman said, is that Benn shuts down the app on his own.

"I'm just giving you the grown-up lawyer answer instead of what's cool and what will fly on Twitter," he said.

Benn said he's not ready to take down the app yet. "I'm just going to wait and see," he said.

In the meantime, the money he's making from the app is going to his college fund. He's planning to study computer science.

CNNMoney (New York) March 31, 2015: 6:18 PM ET

10.20 | 0 komentar | Read More

Walmart to Arkansas gov.: Veto religious freedom law

It's similar to the law Indiana adopted last week, which sparked outrage from those who say it opens the door for discrimination against gays and lesbians.

Walmart (WMT) CEO Doug McMillon asked Gov. Asa Hutchinson to veto the bill, which was approved by the Arkansas House on Tuesday.

The company is headquartered in Bentonville, Arkansas.

"Today's passage of HB1228 threatens to undermine the spirit of inclusion present throughout the state of Arkansas and does not reflect the values we proudly uphold," McMillon said in a statement.

Related: Arkansas poised to adopt religious freedom law

It's not the only other state currently considering a religious freedom law. There are 14 other states looking at similar proposals this year, according to the National Conference of State Legislatures.

A number of big companies have spoken out against the Indiana law, including Starbucks (SBUX), Apple (AAPL, Tech30), Angie's List (ANGI), Yelp (YELP), Salesforce (CRM, Tech30), and Eli Lilly (LLY). NASCAR, as well as the NCAA, NBA, WNBA, Indiana Pacers and Indiana Fever have also expressed disappointment. And Connecticut banned all state-funded travel to Indiana over the law.

On Tuesday, Indiana Gov. Mike Pence pledged to "fix" the controversial law to clarify that it does not allow discrimination against gays and lesbians.

Related: NASCAR joins backlash over Indiana religious freedom law

Related: Indy Star to state officials: 'Fix this now'

CNNMoney (New York) March 31, 2015: 7:37 PM ET

10.20 | 0 komentar | Read More

New Cadillac with nifty security feature unveiled

The technology relies on the same cameras used to help with parking the big car. They're also attached to security sensors so if the car is moved or any window glass is broken, which would set off the alarm, a series of photos is taken all around the car. The images are stored within the car and can be accessed later using a memory card.

The CT6 is a full-sized rear-wheel-drive luxury sedan.

In engineering the CT6 General Motors emphasized weight savings. The car is built largely from aluminum but, in all, 11 different metals are used in its construction. That's because, according to GM, various types of steel can save more weight than aluminum in places where strength and stiffness are required.

Despite its size, the CT6 is almost exactly the same weight as the smaller mid-sized Cadillac CTS sedan. Thanks in part to the car's light weight, GM is promising a more dynamic and responsive driving feel than other big luxury sedans.

"It is a bold endeavor with unmatched dynamism that reignites a passion for driving in large luxury vehicles," Johan de Nysschen, president of Cadillac, said in an interview.

It also makes it possible for the car to use smaller, more fuel-efficient engines. When the car first goes on sale, the most powerful available engine will be a 400-horsepower turbocharged V6. It will also be available with a non-turbocharged V6 and a turbocharged 4-cylinder engine, a type of engine not used in other cars this size.

Photos - Cool cars from the Geneva Motor Show

The CT6 will also be available with a host of technology features besides just the security cameras. Drivers can also record front and rear views of the road while driving. A night vision system will help to identify people and large animals while driving in the dark and even brake automatically to avoid them. The inside rear view mirror can also display a view created by cameras outside the car enabling the driver to see the entire area behind the car as if the back of the car were invisible.

It will be available with all-wheel-drive and will also offer all-wheel-steering in which the rear wheels turn slightly to assist in tight maneuvers.

Also at the New York Auto Show, Cadillac's domestic rival, Ford's (F) Lincoln Motor Co., unveiled a new version of the Lincoln Continental, its own full-size flagship car. Although it is still a concept vehicle, Lincoln expects to sell a car very much like it next year. The CT6 will go into production in late 2015.

CNNMoney (New York) March 31, 2015: 8:48 PM ET

10.20 | 0 komentar | Read More

How Hong Kong's subway turns a $2 billion annual profit

The city's subway is the face of the Mass Transit Railway Corporation (MTR) -- a publicly traded company that pulled in $5.2 billion in revenue last year.

With a $2 billion annual profit, the Hong Kong's subway is an anomaly among major rail networks. New York's subway, for example, suffers from chronic funding gaps and will spend nearly $2.5 billion in 2015 to service its debt.

How does Hong Kong's train and bus network manage to clear its mind-boggling margins?

First off, this is one impressive subway system. Even with more than 5 million daily commuters, MTR trains boast a 99.9% on-time arrival rate. Fares are notoriously cheap ($.50 to $3), but cover roughly 175% of the system's operating costs.

But the company's real profits are derived from a lesser-known side of the business: property development. Some 50 major properties across Hong Kong are owned, developed or managed by MTR, including two of the city's tallest skyscrapers.

"Sometimes critics say it's a property development firm doing a side business of rail," said Tim Hau, a professor at University of Hong Kong's School of Economics and Finance.

Here's how it works: MTR enjoys a special relationship with the Hong Kong government, which is also its majority shareholder. The government provides land -- at no cost -- for use by the train operator, and MTR is then allowed to develop the areas above and around its stations.

Related: Taking a ride on the world's most envied metro system

MTR often builds shopping malls right on top of stations -- it owns 13. Last year, rents at the malls went up by an average of 14%. Below ground, each subway stop is jam-packed with retail outlets, which all pay rent to MTR or have a profit-sharing agreement in place.

You can find every kind of retail in the stations -- even Michelin-starred dim sum restaurants.

Wong Sau Lan has been managing one such restaurant, called Tim Ho Wan, for the past two years. She said the restaurant's MTR outlet, located in a subway station that serves the central business district, is twice as popular as its flagship restaurant.

For the 14 hours that Tim Ho Wan is open each day, people will, on average, wait 40 minutes for the MTR dining experience.

MTR is now exporting its model abroad. It's already been commissioned to build and run lines in China, the United Kingdom, Sweden and Australia, and more projects are in the works.

"They'll go wherever there's a profit," said Hau. "There aren't that many viable competitors in the world."

Related: Beijing's Growing Subway

Related: China's incredible high-speed rail system

CNNMoney (Hong Kong) March 30, 2015: 8:50 PM ET

10.20 | 0 komentar | Read More