HKUST Newsletter, Spring 2003

Abstract

[evdate 2003-03-15] 13 HONG KONG UNIVERSITY OF SCIENCE & TECHNOLOGY Spring 2003 HKUST NEWSLETTER Online technologies to create business opportunities Hong Kong's small to medium sized enterprises will benefit from a new HKUST/WebEx IT Institute research project on next-generation online collaboration systems and multimedia technologies. The project is being supported with HK$29 million in combined funding from the Innovation and Technology Fund and WebEx. More on page 4 New HKIEd alliance to train science teachers MBA ranked top in region again National study to monitor coastal pollution

2 Message from President Chu Challenges and Opportunities Prof Paul Ching-Wu Chu

The recently proposed cut to the 2004-05 higher education budget and merger between HKUST and the

Chinese University of Hong Kong (CUHK) have posed immense challenges for the University. Members of

the HKUST community, in particular faculty, staff, students and alumni, have not hesitated to express their

opinions on the two issues. This shows clearly our concern for the University as well as for education in

Hong Kong. Both issues have important implications for the future of HKUST and tertiary education, and

therefore must be dealt with carefully and proactively. I am confident that together we shall meet the

challenges successfully and continue our quest for excellence, for the betterment of HKUST, its stakeholders and the Hong Kong people.

Budget cuts HKUST has a student body of only 7,000 and receives a block grant that ranks only fifth among the eight

publicly funded tertiary institutions, in spite of our outstanding accomplishments over the past 12 years. The Government has suggested that the institutions cut costs by re-engineering programs that have under performed.

However, the quality programs developed by HKUST are all tailored to meet the needs of society. Our

research has excelled and earned international acclaim. Hence, there is little room for the University to cut programs or research projects. Faced with diminishing resources, the University must focus on those

strengths that have a significant impact on Hong Kong and the world. The administration is exploring

various cost-cutting and revenue-enhancing schemes and, with the support of faculty and staff, we

believe we can maximize our resources and maintain our standards. HKUST welcomes the establishment of a HK$1billion matching fund to encourage fundraising efforts

among the eight institutions. It is a measure that will help relieve our financial pressure and I urge

members of the community to lend their strong support to HKUST. However, it is unrealistic to hope

that we can, by soliciting donations, quickly make up for the severe budget cuts and develop a world-class university in Hong Kong, where a fundraising culture has yet to take root. HKUST's young history

also makes it difficult to raise a large amount of money within a short period of time.

Major budget cuts to research and education in fact run counter to Hong Kong's long-term benefit. At

HKUST, we are committed to educating the young and promoting the development of business and

industry crucial to Hong Kong's well being. We are willing to share Hong Kong's financial burden, and

at the same time we will try our best to maintain and further our teaching and research standards.

Proposed merger The Government has indicated that Hong Kong can afford to have at most two research universities, both of which are comprehensive, and suggested a possible merger between HKUST and CUHK - a proposal which will have profound implications for the future funding of HKUST. The issue has triggered heated debate both publicly and within HKUST. The University's Merger Task Force released in December 2002 a report titled "Explorations of the Idea of a Merger between HKUST and CUHK". The report identified four issues that must be clarified by the Government before the University could enter into discussions with other tertiary institution(s) regarding the merger idea. They are: the objectives of the merger, the resource implications arising from the merger, the institutional research standards to be adopted, and the organizational culture of the merged institution.

In a recent informal meeting between the senior management of HKUST and Prof Arthur Li, Secretary for

Education and Manpower, Prof Li explained the Government's position on the four issues: First, the

objective of the merger is to build a world-class comprehensive university; second, sufficient resources will be provided to fulfill such a goal; third, an internationally recognized mechanism will be adopted to

maintain the highest academic standards; and fourth, any model of integration will respect the unique

cultures of the two universities. Following this, faculty representatives at a recent Senate meeting passed a resolution that supports the idea of the President seeking further clarification from and discussion with the Government on the four issues mentioned above. Once I obtain further details I will consult the HKUST community again. The

administration keeps an open mind on the merger proposal, and we welcome diverse opinions that we

hope will guide us in making the right decision. Merger or not, we are determined to protect and further

what HKUST has accomplished in the past 12 years while keeping in mind the best interests of Hong Kong

and the University. 3 Viewpoints Building Public Trust - Corporate Governance Reform in East Asia The recent spate of accounting scandals emanating from large companies such as Enron, Worldcom and Xerox has exposed numerous fundamental corporate governance problems within US corporations. Once touted as the model for how corporations around the world should be run, now many critics question if there are big flaws in the US corporate governance system. The Sarbanes-Oxley Act that passed into law in mid 2002 was the US Congress's quick response aiming to rebuild public trust in the corporate governance system. The Act mainly aims to ensure that investors' interests are protected through better corporate transparency and director independence.

Corporate governance problems in East Asia East Asia has had its share of accounting scandals and corporate governance failures. Even before the

outbreak of the US accounting scandals, East Asian countries were embarking on corporate governance

reform in the aftermath of the Asian Financial Crisis. China was not directly hit by the financial crisis, but

Chinese regulators realized that weak corporate governance had plagued the development of their

fledgling stock markets. Although the new US corporate governance regulations serve as a valuable

benchmark for reform in East Asia (including China), the root causes of the problem are different so we

cannot blindly adopt these US rules. Unlike US corporations that are typically owned by diffuse shareholders and investment funds, East Asian

firms are mostly controlled and owned by large families. In China, either a government or a state-owned

enterprise is the majority shareholder of listed firms. Instead of alleviating the conflict of interests between

the management and the outside shareholders, as intended in the Sarbanes-Oxley Act, corporate

governance reform in East Asia should aim at resolving the conflicts between majority shareholders, who

are either families or governments, and the minority shareholders. Prof T J Wong Professor of Accounting Director, Center for Corporate Governance Improving corporate governance in East Asia through research East Asian governments should promulgate new regulations restricting the abuse of minority shareholders by state or family owners. However, with the vested interests of governments and heavy lobbying by influential families, sweeping reform in corporate governance has not been forthcoming in East Asia. Academics in this region can potentially play an important role by engaging in fundamental

research that aims to identify the root causes of the problems and point policy setters in the right direction for reform. Issues to be examined include: ． How do governance practices in East Asia differ from those of the developed economies such as the US and Europe? ． What are the major constraints that restrict the development of good corporate

governance and transparencies in East Asia? ． What are the governance roles of reputation intermediaries such as financial analysts and auditors? ． What is the role of governments in the corporate governance of Chinese listed

state enterprises? ． What are the relations between corporate governance and (1) firm performance,

(2) firm competitiveness, and (3) firm's cost of capital in East Asia? However, the poor research infrastructure and the lack of data in this region have hindered research. Thus, HKUST's Center for Corporate Governance has formed an Asian Corporate Governance Network

with other universities in the region including Hitotsubashi University in Japan, Korea

University and Taiwan University, and has started to build datasets for research. With

further cooperation among academics in Asian countries and the increasing availability of corporate governance data, we can begin to tackle the coporate governance issues in East Asia. Center for Corporate Governance Mission To produce and encourage top-quality academic research and to promote debate in both the academic and business communities on contemporary corporate governance issues in this region. To draw on the strengths of our Accounting, Economics, Finance and Management of Organizations Departments, and tackle corporate governance issues related to these fields. Objectives To promote and engage in research on East Asian corporate governance issues through the founding of the Asian Corporate Governance Network. To start the China initiative that studies contemporary corporate governance issues of the newly listed state-owned enterprises. To organize and participate in workshops and conferences involving regulators and business community. Major Activities Formation of Asian Corporate Governance Network To understand the ownership and control structures, the system of corporate governance in publicly listed firms, disclosure and accounting standards, and the link between corporate governance, economic performance, and corporate and accounting policies by conducting country and cross-country research. To analyze the availability of data required for studying the issues and to compile suitable datasets if necessary. China Corporate Governance Research To promote and engage in corporate governance research of listed state-owned enterprises. To collaborate with top mainland research universities in corporate governance research and further establish HKUST{????} academic leadership in business research in China. For further information, contact Prof T J Wong. Tel: (852)2358-7574 Fax: (852)2358-1693 Email: actjwong@ust.hk

4 Research & Development Joint IT Project to Benefit SMEs The HKUST/WebEx Information Technology Institute recently received a HK$14.59 million grant from the Innovation and Technology Fund (ITF) for its cutting-edge "Next Generation Online Multimedia Collaboration System" project. As the industry partner, WebEx will match the ITF's award, bringing total investment in the two-year project to over HK$29 million. US based WebEx Communications, Incorporated, is the leading global player in the area of interactive communications infrastructures for online meetings. The company signed an agreement with HKUST in October 2002 to jointly establish the new IT Institute. The research project will focus on developing next generation online collaboration systems and state-of-the-art multimedia technologies, particularly applications that will benefit small to medium sized enterprises (SMEs) in Hong Kong. It will mutually leverage on each side's strengths, with HKUST applying its considerable research expertise and resources, and WebEx lending technological support and assistance with commercializing research results. "Through this project, we want to benefit SMEs by allowing them to cost-effectively

enhance their ability to collaborate with remote parties across the world, and also to help clients access the greater China market," said Prof Lionel Ni, Head of the Department of Computer Science and Project Coordinator for the IT Institute. The project will seek to accomplish five major tasks: Improvements to mobile device integration will be made to support an increasingly mobile workforce. Current systems will be extended to different mobile computing devices, including personal digital assistants, smart phones and perhaps even mobile phones, providing multiplatform support and interoperability. The project will also address transcoding techniques and bandwidth-aware content delivery to overcome the problem of device limitations in online meetings. Enabling technologies will be developed to facilitate online remote collaboration. These include an enhanced digital web camera mount that will allow remote control of camera angle and zoom, natural language processing technologies for recognition of English, Putonghua and Cantonese commands, and an innovative three dimensional (3D) object representation system. A real-time collaborative product development environment will be created that allows users to develop, view, manipulate, analyze and integrate product designs in a WebEx online meeting environment. With China being a global manufacturing hub, companies from North America, Europe and Hong Kong can enjoy real-time product development across borders and over different technological platforms, thereby enhancing productivity. A real-time auction system will be devised that introduces new value added tools like a 3D product display and unique real-time bidding system. A multimedia digital archiving system will be designed to support the archiving and retrieval of multimedia teleconference sessions. Efficient storage, indexing and retrieval of a huge amount of such recorded files will be made possible. Automatic speech recognition techniques will also be employed to support such retrieval. According to Prof Ni, the project will not only help Hong Kong industry and demonstrate that Hong Kong is a major player in the knowledge-based world, it will also provide around 40 new jobs for local IT engineers, and practical research opportunities for HKUST students. 5

National Project to Predict Future for China's Coastal Waters

HKUST's Center for Coastal and Atmospheric Research (CCAR) is set to provide a clearer future for China's marine environment after receiving a RMB2 million

allocation under the National Hi-Tech Research Development Program (863 Program) for a two-year

study to assist the monitoring and control of pollution in China's coastal waters and major estuaries.

The "Development of Data Integration, Assimilation and Prediction System for Coastal Environment" project will cover all six regions of China's coastline: the Bohai Sea, the Yellow Sea, the East China Sea, the Taiwan Strait, the Pearl River estuary and the Gulf of Tonkin. It will also help in the forecasting of environmental change and natural disasters.

Prof Jay-Chung Chen, Director of CCAR and principal investigator of the national research project, said the HKUST team aims to integrate existing data from the various coastal regions and then develop a numerical model for predicting changes in the marine environment.

The new model will help scientists keep abreast of the dynamics at work in coastal waters, providing an

important theoretical foundation for monitoring and controlling marine pollution, he said.

"China's coastal cities are densely populated," Prof Chen explained. "The development of a marine environment prediction system will assist the government in understanding the nature of changes in pollutants and thus help them create more effective infrastructures and policies to improve the quality of life.

"In addition, in the event of a severe ecological hazard such as an oil tanker in distress, or natural calamities such as typhoons, the prediction system will enable the government to take precautions in major coastal cities and alert vessels at sea."

Several mainland institutions will assist in the study, including the Second Institute of Oceanography at the State Oceanic Administration, the South China Sea Institute of Oceanology under the Chinese Academy of Sciences, and Zhongshan University.

The Chinese Mainland's 863 Program was launched in March 1986 to provide funding for innovative high-tech development.

Communications Convergence Comes Closer Computing, telecommunications and entertainment media are converging faster now than ever before. Prof Xiren Cao, Professor of Electrical and Electronic Engineering, and China Motion Telecom Limited have been working to develop Internet technologies capable of supporting the trend, employing leading-edge Voiceover Internet Protocol (VoIP) technology.

The collaboration occurred under the auspices of the University's ATM/IP Telephony Solution Cooperative Research Center, inaugurated in 1999 with support from the Research Grants Council and China Motion Telecom, to provide research and technological assistance to Hong Kong's telecom and Internet industries.

Prof Cao and his team are now developing a tangible application based on VoIP, known as the "Unified Messaging System" (UMS). The new technology will enable voice, text and video data to be transfer red simultaneously between users over the Internet backbone.

UMS subscribers receive a unique address, or unified messaging identification number (UMID), which replaces existing, separate, telephone, mobile, and email contact details. Users can then send and receive messages in voice, fax, email or video format in real time via any communication tool, including mobile phone, telephone, pager, personal computer or handheld device. For non-real time communication, a caller can leave messages in any format. The recipient subsequently receives a delivery notice and the message is stored in the user's message box until retrieved.

"The technological heart of the UMS is the UM Web Server," explained Prof Cao. "This is designed to translate the different kinds of message sent to the UMID into data. Once the message has crossed the Internet backbone in data format, the reverse conversion is made and the message becomes available to the recipient back in its original format."

Mr Tony Hau, Chairman and CEO of China Motion Telecom, said: "We have collaborated closely with HKUST for four years now, developing new technologies and value-added services. We look forward to creating other state-of-the-art applications for our clients by continuing this outstanding relationship."

6 People Power HKUST Researchers Gain Recognition Prof Ping Cheng of the Department of Mechanical Engineering has been awarded the prestigious AIAA

Thermophysics Award in recognition of his contribution in thermophysics literature relating to aerospace

applications. Officially formed in 1963, the American Institute of Aeronautics and Astronautics (AIAA) is the world's largest professional society devoted to the progress of engineering and science in aviation, space and defense, with more than 31,000 members worldwide.

Prof Jingsong Huang of the Department of Mathematics received the 2002 State Natural Science Award, Second Class, for his research "Harmonic Analysis on Semisimple Lie Groups". Presented by the State Council, the Award is the highest honor in natural sciences in China.

Over 80 alumni came back to the University for the first Alumni Spring Gathering with faculty, administrators and former Students' Union presidents on 22 February. President Chu pledged HK$10,000 on the spot and encouraged alumni to raise funds for their alma mater. Staff and faculty celebrated the Year of the Ram with President Chu at a lunchtime gathering organized by the HKUST Staff Association on 21 February. Winners of the 2003 "Best 10 Lecturers" election received their awards on 13 February. Organized by House II, the annual competition saw 2,600 students give their nominations this year. Prof Ng Ching-Fai, President of the Hong Kong Baptist University, was a guest of honor.

7 Vincent Cheung Chipping a path to success When Postdoctoral Research Associate Dr Vincent Sin-Luen Cheung first arrived at HKUST as an undergraduate, the University was only four years old. Since then the University has gone from strength to strength and, having completed his BS, MPhil and PhD at HKUST, so has Vincent. He has dedicated the last nine years to developing a childhood hobby - taking apart all the toys his parents bought him to discover how they worked - into an expertise that has seen him blossom in the field of integrated circuitry. The interest generated by Vincent's work was demonstrated as recently as February when, for the third time in the last four years, he was called upon to present a paper at the Institute of Electrical and Electronics Engineers' International Solid State Circuits Conference in San Francisco, otherwise known as "The Chip Olympics". "The Chip Olympics is the leading forum on solid-state circuits," Vincent explained, "and no other mainland or local university has ever been asked to attend, so I'm proud to have been invited for a third time." Vincent's three papers focused on the design of low voltage switched op-amp switched capacitor systems, an area in which he already holds a US patent. At this year's conference, he detailed the progress he and his PhD supervisor, Prof Howard Luong, have made in the development of a new integrated circuit (IC). Improving the overall architecture of the IC, reducing the number of active elements to one super-unit, and optimizing the unit's power consumption and energy dissipation make their latest device five to 10 times more efficient than previous models. "So if this IC was used in a heart pacemaker, the patient would need fewer life-threatening operations to install replacements because the lifespan is greatly increased," Vincent explained. Discussing what keeps him at HKUST, Vincent says: "When you're researching, you need to be able to communicate and share ideas, talk when you have difficulties, care about and feel comfortable alongside the people you're working with. So HKUST provides an excellent research environment for me, in which I can develop ideas and compete with the best researchers around the world." This development of ideas he now sees as a long-term endeavour: "I would prefer to remain in academia at HKUST rather than, say, move into business, because a researcher's mission is to look at what will be useful in 10 years or beyond. These are almost virtual or abstract concepts, but in the long run it's very fulfilling to be able to help define the needs of society," he said. Vincent is now also a successful teaching assistant and rather a role model among the students in his department. In 2000, he even won the award

for Best Teaching Assistant Coordinator. "I see teaching as a natural extension of my

progress through the University from undergraduate level," he says, "providing an extra dimension to the satisfaction I get from being part of the university community." Campaign teams gave it their best in student society elections during February and March. A new executive committee was also elected for the HKUST Students' Union.

8 Teaching & Learning New HKUST-HKIEd Programs to Nurture Science Teachers HKUST will offer new teacher training programs in major science subjects through an enhanced partnership with the Hong Kong Institute of Education (HKIEd). A ceremony, at which President Prof Paul Ching-Wu Chu and HKIEd President Prof Paul Morris signed a three-year agreement, was held at the HKIEd campus on 29 January to mark the collaboration. Together, the institutions intend to produce a new generation of high-caliber science teachers for Hong Kong through their four-year full-time Bachelor of Science (BS) programs in Biochemistry, Biology, Chemistry, Physics and Science Education. The courses, which will start in September and include a period of practical teaching experience, will be modeled on the successful Bachelor of Science in Mathematics and Information Technology (BSMIT) program introduced by HKUST and HKIEd in 2001. Both the BSMIT and BS programs have been well received by local business, with the Jebsen Educational Foundation, Hang Seng Bank and the Hong Kong Chiu Chow Chamber of Commerce already pledging $620,000 in student scholarships. Addressing guests at the signing ceremony, Prof Chu noted that the agreement between the two institutions was the first of its kind in Hong Kong: "This agreement signifies the shared commitment of HKIEd and HKUST to science education in Hong Kong. Science education disseminates the knowledge necessary for all scientific pursuits, and therefore its importance cannot be exaggerated at all," he said. Prof Morris concurred, adding: "The students enjoy the best of both worlds. They spend time on both campuses and are taught by staff of both institutions. Taken as a whole, the programs are achieving the goals of preparing future teachers with substantial subject knowledge and expertise in science education." Francis Chi-Fai Kwok, a second-year BSMIT undergraduate, said: "My course has broadened my horizons and I've definitely benefited from the different learning styles of the two institutions." HKUST will confer the final qualification on the BS program graduates, who will also be eligible for Qualified Teacher Status. Hong Kong Business Families Share Experience Hong Kong is recognized throughout the world for the success of its family-run businesses - so how appropriate that HKUST launch the region's first Family Business Program. Faculty from the School of Business and Management developed this innovative course in association with Mr Roy Chen, Executive Director of Sterling Enterprises Limited, and Prof John Ward of the Kellogg School of Management, an international authority on the management of family-run enterprises. The program ran from 10 to 11 December 2002 in the School's state-of-the-art executive education facility. The 36 participants from 19 families included all generations of owners and executives from organizations of various ages, sectors and sizes. Commenting on the value of bringing these entrepreneurs together, Mr Roy Chen said: "Although each family is unique depending on culture, values and history, the issues are the same and there is a lot that we can share and learn from each other." Teaching involved the use of case studies, workshops and discussion to facilitate the exchange of ideas, and a regional perspective was provided with Prof T J Wong's seminar on Corporate Governance in Asia, and Prof Surendra Mansinghka's case study of the Harilela family business, which both stimulated considerable discussion. Statistics show only 10% of family-run businesses survive beyond the third generation. Hence the course also addressed other more general issues, including strategy, continuity planning, succession planning and family business governance. The program was considered a great success and, it is anticipated, will be run again. "I believe that we should all spend time learning how to do our business better and how to make it sustainable through the next generations," concluded Dr Hari Harilela, Chairman of the Harilela Group. 9

Service & Outreach MAP Promotes Environmental Awareness in Schools The world's first Mobile Real-time Air Monitoring Platform (MAP) developed by HKUST researchers went into action last year. Funded with a HK$12.3 million grant from the Hong

Kong Jockey Club Charities Trust, the specially fitted vehicle enables researchers to assess air

quality on the move, thereby overcoming mobility and time barriers in the study of pollution.

As part of its mandate to promote environmental awareness, MAP has moved from the

streets to the classroom. "The HKUST MAP School Outreach Program on Air Quality is an

environmental education scheme organized by HKUST in collaboration with the Hong Kong

Jockey Club Charities Trust, the Education and Manpower Bureau, the Science Museum and

secondary schools. It aims to stimulate students' awareness of important environmental

issues," said Dr Pui-Sang Lau, a MAP researcher. From last September to this February, the HKUST MAP team staged demonstrations and co-organized

workshops in 11 Hong Kong schools. "Through the visits students get a real experience of the state-of-the-art MAP, enabling us to promote environmental education

effectively," said Dr Lau. School students hear about environmental issues all the time, but often without the

practicalities being explained to them. "For example, the Air Pollution Index (API) is

mentioned on the news every day, but students might not know its actual function," said Dr

Lau. "The MAP demonstration helps them visualize the relationship between the API and the

various types and quantities of air pollutants." "We learnt a lot about particles and toxic gases during the demonstration. When the

researcher burnt joss sticks, we could clearly see the air composition changing. The level of

some pollutants increased a hundred fold. It was a really good learning experience," said

Chung-Nga Tang, a Form One student at Elegantia College. Dr Lau finds this type of response

a sure sign of the project's worth: "From a practical point of view, although students might

not be able to stop their families from burning joss sticks, this demonstration also teaches

them the importance of keeping rooms well-ventilated," he added. Mr Kwok-Man Chan, a teacher at St. Stephen's College, Stanley, thought that the visit

enabled students not only to gain a clearer grasp of air pollution, but also to look at the

problems associated with pollution from a wider perspective. Students were encouraged to

ask questions, and even probed complex issues like the effect of vibration on the high-precision

equipment within the moving MAP vehicle. Dr Lau attributed the success of the program to the enthusiastic support of teachers: "They encouraged and coached students to

prepare proposals, conduct research and organize the MAP visits. This is truly a collaborative

program," he said. The MAP team is planning to hold a conference for students this May, at which students who

participated in the school program will be invited to share with their peers what they have

learnt. "It will be an academic activity and the students' work will be assessed by their peers

rather than their teachers," said Dr Lau. "We hope the conference will act as an interactive

channel for the schools to undertake environmental education, and also provide an

opportunity to further stimulate the students' research interests."

10 Global Horizons MBA Top in Asia and Australasia, Again The School of Business and Management's MBA program remains the best in Asia and Australasia, according to the Financial Times (FT) annual MBA rankings published on 20 January. This year the School received even more accolades from the FT. It climbed to 6th position in the world when compared to other publicly funded institutions, placing it alongside the likes of UCLA and UC Berkeley. More significantly, HKUST faculty were ranked 20th in the world for their research, up six places, despite the School averaging only half the number of faculty of its US peers. Prof K C Chan, Dean of the School of Business and Management, said how proud he was of the results: "The Financial Times ranking is a tribute to the hard work of our faculty and it showcases the level of excellence that a Hong Kong university, as benchmarked against other major international institutions, may achieve." President Prof Paul Ching-Wu Chu reiterated this sentiment, saying: "Amid the economic challenges facing Hong Kong, we are very pleased to see that the School has held up its position as the top school in Asia and Australasia in the rankings. At HKUST we will continue to strive for excellence in the areas of management education, innovation, technology and research." HKUST's MBA is the only such program in the region to receive a three-year average international ranking, of 48th, from the FT, reflecting the consistent success of both faculty and students. As in previous years, the School also places number one in the world for the international experience that its MBA offers, and number two in the world, after IMD Switzerland, for its inter national faculty. The FT rankings comprise the 100 best MBA schools in the world, and this year only five Asian and Australasian schools made the list.

Drive for Non-local Students to Expand International Outlook HKUST is stepping up its recruitment of non-local undergraduate students in an effort to internationalize the campus.

The HKSAR Government recently raised the number of subsidized non-local undergraduates allowed at tertiary institutions from 2% to 4%. In addition, the University is seeking to diversify its undergraduate body by increasing the number of self-financed non-local students. It aims to bring

the total number of non-local undergraduates up to 10% in the next decade. "As a world-class research university, HKUST must recruit more non-local students to build an international atmosphere on campus," said Prof Yuk-Shee Chan, Vice-President for Academic Affairs.

HKUST currently has about 100 non-local students pursuing first degrees, representing 1.6% of its undergraduate population. They include students recruited through Tsinghua, Peking, Nanjing and Fudan universities under a program jointly run by the SAR's Education and Manpower

Bureau and the Chinese Ministry of Education; self-financed students recruited directly in Shenzhen; and overseas undergraduates.

Prof T C Pong, Associate Vice-President for Academic Affairs, said: "Our recruitment channels are well established in the Chinese Mainland so this will probably remain our major source of non-local undergraduates. The International Students Office is also starting recruitment campaigns in

South East Asia, our main targets being outstanding students in Thailand, Malaysia and India. The University is actively seeking funding for scholarships to attract non-local students."

Meanwhile, students from outside Hong Kong are already making their presence felt through the ever-expanding student exchange program.

The first batch of 106 undergraduates from eight major mainland universities arrived in February to spend a semester at HKUST. More than 60 students exchanged out to the mainland counterparts.

HKUST has set up exchange arrangements with more than 100 renowned institutions around the world. According to Prof Pong, the University now sends about 250 students on overseas exchanges but aims to increase this number to 400 in the future.

11

Resource Development Chemistry Faculty Donate Scholarship In view of government cutbacks due to financial constraints, the HKUST administration has striven to develop resources and cut costs. Members of the University have also pitched in to contribute to university development. A recent example is the undergraduate scholarship set up by faculty members of the Department of Chemistry. Prof Chris C K Chang, Head of the Department, conceived the idea of having faculty members donate one day's salary to set up the scholarship. "My colleagues supported the initiative with zeal. Many actually donated more than one day's salary and we have far exceeded our goal," said Prof Chang. The Department received matching funds from the University to a maximum of HK$50,000, resulting in a total sum exceeding HK$110,000. "Recruiting top students is key to the University's sustainable development. With this scholarship we hope to attract the best performing students to the Department," Prof Chang concluded. Thank You for Your Support HKUST would like to thank the many generous individuals and organizations who have supported the University in various meaningful ways from 2002 to 2003, including through donations for campus projects, research, academic exchange programs, scholarships and bursaries, student activities, conferences, workshops

and equipment as well as in-kind assistance. The University's first ever sponsored walkathon, "JUST Walk", raised over HK$800,000 for construction of a new student hostel, which is also being generously supported by the Hong Kong Jockey Club Charities Trust. In addition, the Jockey Club is collaborating with HKUST's Biotechnology Research Institute to

set up a new biotech company with a HK$175 million grant. Donations from organizations and foundations have helped enliven academic exchange on campus, by supporting events such as the first workshop on "Selective, Patterned and Self-Assembled Growth on Nano-Structures" in Hong Kong. The School of Science's S S Chern Lecture, sponsored by the S S Chern Foundation for Mathematical Research, brings renowned scholars to HKUST to share their insights with faculty and students. The year has seen more new scholarships and bursaries set up to enrich student life: The Self Enhancement Scholarships, provided by Dr Kow Tak Chan, sponsor student participation in a four-week cultural program in Italy. Biotechnology postgraduate students now receive substantial support from the K S Lo Foundation Scholarships. Hang Seng Bank has joined hands with the Jebsen Educational Foundation and the Hong Kong Chiu Chow Chamber of Commerce to support science undergraduates undertaking collaborative programs with the Hong Kong Institute of Education. Mechanical engineering and business students can now benefit from the DaimlerChrysler Scholarships. The Rosita and K K Ho Scholarship Scheme for Outstanding Mainland Students provides full tuition and living expenses for undergraduate studies at HKUST. Other benefactors include the Accenture Foundation, the Hong Kong Webgirls and the CDF Logistics Group. New fundraising emphasis in the year ahead will be placed upon the Enterprise Center, which is expected to serve as a strategic R&D base for local industry and

multinational enterprises. The University is also seeking new scholarship funding

to attract high-caliber international students to study at HKUST. For this particular

initiative, Dr Robin Chan and the Asia Financial Group have pledged HK$1 million

in scholarships for undergraduate students from South East Asia. "Donations make a difference to our students and Hong Kong's future. I am glad that the Government has established a HK$1 billion matching fund, which means that every dollar donated to the University will be matched by the Government. I

therefore hope to see further generous support from various sectors of the community so that this excellent University can continue to nurture the best talent possible in Hong Kong," said President Prof Paul Ching-Wu Chu. In Action Exhibition Campus Visit Ceremony Forum Library Hosts Folk Art Exhibition The HKUST Library is holding an exhibition of fabulous paper-cuts and stencil prints in the Ping Yuan and Kinmay W Tang Gallery. The works on display are the creation of artists Ping Yu and Ping Ren, a husband and wife team from Shandong, China. Veteran paper-cut artists, the couple have experimented with many innovative methods and elevated the art to a new level in terms of shape, design and color. Influenced by folk textile printing, they have now turned wholeheartedly to stencil printing, creating awe-inspiring new images with their unique style. The artists have exhibited all over Greater China and won many prizes. New Student Hostel Topped Out A topping-out ceremony was held for the new student hostel on 29 January. Officiating were Mr Yasuji Kakimoto, General Manager of the Hong Kong branch of Penta-Ocean Construction Co Ltd; Prof Paul Ching-Wu Chu, HKUST President; Prof Yuk-Shee Chan, Vice-President for Academic Affairs; Prof T C Pong and Prof Peter Dobson, Associate Vice- Presidents for Academic Affairs; Prof Tony Eastham, Associate Vice-President for Research and Development; Mr Luke Wong, Director of Student Affairs; and Mr Tony Shun-Bun Chan, HKUST Students' Union President. Upon completion in 2004, the new hostel will provide 527 additional spaces. The University needs to raise around HK$19.5 million for construction, with 75% of the total cost being funded by the Government and half of the remaining 25% by the Hong Kong Jockey Club Charities Trust.

Government Secretary Visits Campus The Secretary for Commerce, Industry and Technology of the Hong Kong SAR, Mr Henry Tang, responded to President Prof Paul Ching- Wu Chu's invitation by paying a visit to HKUST on 27 February. During his visit Mr Tang met a cross section of the University community and was given an extensive briefing by Prof Otto Lin, Vice-President for Research and Development, which highlighted the R&D work of the University. Mr Tang said he was impressed by the success HKUST has achieved, especially through its applied research, and concluded his visit with tours of the University's facilities for start-up companies, microelectronics, nanotechnology and biotechnology. Logistics and Supply Chain Forum The HKUST Logistics and Supply Chain Forum (LSCF) reconvened on 17 and 24 January. 200 guests attended lectures by distinguished speakers Prof Gang Yu of the University of Texas at Austin, who spoke about advanced concepts and practices in logistics management, and Prof Warren B Powell of Princeton University, who reflected on developing computer support for operational problems arising in real time. The LSCF was established in 1997 and brings together academics and representatives from the local logistics and supply chain management sector with a view to enhancing the competitive advantage of Hong Kong's distributive services in southern China. Attendees said that the Forum is a beneficial resource for Hong Kong because the distributive services sector typically accounts for nearly 20% of the territory's gross domestic product. Lecture Nano Science and Technology in Mainland Prof Chunli Bai, Vice-President of the Chinese Academy of Sciences (CAS), delivered the University's 2003 Distinguished Lecture in Science, held at HKUST on 20 February. Prof Bai's lecture was entitled "The Progress of Nanoscience and Nanotechnology in the Chinese Mainland". He outlined the achievements of mainland scientists in the development of nanoscience and nanotechnology since the early days of research in the field. The present status of related research in China, including research into nanomaterials, nanodevices and the characterization of nanostructures, was also reflected upon. Prof Bai now serves as the Chief Scientist for the National Steering Committee for Nanoscience and Related Technology, and Chairman of the Academic Committee of the CAS Research Center for Nanotechnology. Over 200 faculty, staff, students and alumni attended his lecture. Hong Kong University of Science & Technology, Clear Water Bay, Kowloon, Hong Kong. Website: www.ust.hk

Published by the Office of University Development and Public Affairs tel (852) 2358 6317 fax (852) 2358 0537 email editor@ust.hk

Spring 2003 NEWSLETTER SUPPLEMENT Prof Penger TONG 童彭爾 教授 Prof Tong joins HKUST from Okalahoma State University where he had taught and researched since 1990. During his time at Oklahoma, Prof Tong also fulfilled appointments as a Visiting Fellow at the Chinese University of Hong Kong, and Visiting Professor of Applied Physics at Harvard. A graduate of the Northeastern University (China), Prof Tong took his MS and PhD from the University of Pittsburgh before joining the Exxon Research and Engineering Company as a Postdoctoral Research Associate in 1988. His current research interests center on non-equilibrium dynamics and soft condensed matter physics, including experimental studies of turbulent thermal convection, interactions and structure formation in suspensions, polymer solutions and other complex fluids. He has contributed

to over 40 refereed journal articles as well as a wide range of conference proceedings and book chapters. Active in many organizations, Prof Tong has served on the NASA Microgravity Review Panel, as Co-editor on the American Chemical Society Symposium Series, and is a referee and reviewer for a variety of scientific journals and funding agencies, including the US National Science Foundation and the Hong Kong Research Grants Council.

PROFESSOR OF PHYSICS ACTING DEAN OF ENGINEERING AND PROFESSOR Prof Philip C H CHAN 陳正豪教授 Prof Chan is a founding member of the University. He came from Intel Corporation to assume the post of Reader in Electrical and Electronic Engineering, a position that he fulfilled with distinction until 1996. During that period, Prof Chan also served as Director of the Computer Engineering Program, and Associate Dean of the School of Engineering. He was appointed Acting Head of the Department of Electrical and Electronic Engineering in 1995, and became substantive Head in 1997.

Prof Chan took his BS in Electrical Engineering from the University of California at Davis, and his MS and PhD from the University of Illinois at Urbana-Champaign. His research embraces VLSI devices, circuits and systems, microelectronics, electronic packaging, and integrated sensors. While at Intel, Prof Chan was instrumental in defining a CAD system that led to the development of the company's first functional 486-based multi-chip module. Prof Chan also serves as Director of the University's Microelectronics

Fabrication Facility and the Center for Advanced Electronics System Packaging. ASSOCIATE PROFESSOR OF INDUSTRIAL ENGINEERING AND ENGINEERING MANAGEMENT Andrew LIM 林良材博士 1992 PhD University of Minnesota (Computer Science) 2000-2002 Associate Professor, National University of Singapore Research Interests Combinatorial optimization; decision support in supply chains; artificial intelligence; software architecture; design patterns. VISITING ASSISTANT PROFESSOR OF BIOCHEMISTRY Pauline Po Yee LUI 呂寶儀博士 1998 PhD The Chinese University of Hong Kong (Biochemistry) 2001-2003 Project Manager, CK Life Sciences Int'l., Inc. Research Interests Cell cycle regulation. ASSISTANT PROFESSOR OF BIOCHEMISTRY Robert Zhong QI 齊眾博士 1996 PhD University of Calgary (Biochemistry and Molecular Biology) 1999-2002 Assistant Professor & PI of the Proteomics Group & the Protein Chemistry Facility, Institute of Molecular and Cell Biology, Singapore Research Interests Proteomic technology and applications; use of proteomic and molecular and cell biological tools to study protein interactions in brains and molecular mechanisms underlying neuronal differentiation, migration and degeneration. APPOINTMENTS NEWSLETTER SUPPLEMENT ASSISTANT PROFESSOR OF BIOCHEMISTRY Jun XIA 夏軍博士 2001 PhD The Johns Hopkins University (Neuroscience) Research Interests Molecular mechanism of learning and memory, organization of synapse and regulation of synaptic transmission; molecular and cellular

bases of neurological and psychiatric diseases. VISITING ASSISTANT PROFESSOR OF FINANCE James J D WANG 王景東博士 1995 PhD University of Utah (Finance) 2001-2002 Visiting Assistant Professor of Finance, Thunderbird, The American Graduate School of International Management Research Interests Auction theory; market microstructure; corporate finance. ASSISTANT PROFESSOR OF ACCOUNTING Min WU 吳敏博士 2002 PhD New York University (Accounting) 2000 Instructor, New York University Stern School of Business Research Interests Earnings management; corporate governance; intangibles; valuation. VISITING ASSISTANT PROFESSOR OF FINANCE Alberto MOEL 1993 PhD MIT (Electrical Engineering) 2001- Senior Consultant, Monitor Corporate Finance Research Interests Cross-border stock listings; expectations and stock returns; real options. VISITING ASSISTANT PROFESSOR OF ELECTRICAL AND ELECTRONIC ENGINEERING Shujun CAI 蔡樹軍博士 2002 PhD University of California, Los Angeles (Solid-State Electronics) 1992-1996 Senior Engineer, Lab Director, Hebei Semiconductor Research Institute Research Interests Solid-state electronic technology; microwave power device; novel device design, fabrication and application. ASSISTANT PROFESSOR OF ELECTRICAL AND ELECTRONIC ENGINEERING Dennis Tak Kit TONG 唐德杰博士 1998 PhD University of California, Los Angeles (Electrical Engineering) 2000-2002 Senior Member of Technical Staff, Tellium Inc. Research Interests Optical communication; high-speed optoelectronics; microwave photonics. ASSISTANT PROFESSOR OF BIOLOGY Pingbo HUANG 黃平波博士 1993 PhD University of Cincinnati (Physiology) 1997-2002 Research Associate, CF Center, University of North Carolina at Chapel Hill Research Interests Signal transduction in the regulation of ion channels. ASSISTANT PROFESSOR OF BIOLOGY Peng LI 李蓬博士 1995 PhD University of California, San Diego (Transcriptional Regulation and Development) 1997-2002 Assistant Professor and Principal Investigator, Institute of Molecular and Cell Biology, Singapore Research Interests Molecular and cellular biology; molecular physiology; molecular mechanism of obesity and diabetes; apoptosis and cancer treatment.