Chinese leader Xi Jinping visits gambling hub Macau as nearby Hong Kong seethes

China's PresidentXiJinping begins a three-day visit to thegamblinghubofMacauon Wednesday to mark the 20th anniversary of its handover to China, with security tight and some media barred entry as protests rocknearbyHongKong.

Xi's visit to the former Portuguese colony, where he is expected to announce a slew of supportive policies, is widely seen as a reward forMacau's stability and loyalty, unlike the former British colony ofHongKong, which has been rocked by anti-government protests for six months.

Xi, due to arrive by plane later in the afternoon, is expected to announce measures forMacauaimed at diversifying its casino-dependent economy into a financial centre, including a new yuan-denominated stock exchange.

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SeveralHongKongjournalists, including a reporter for broadcaster RTHK, were barred entry toMacauthis week due to security concerns, RTHK said on its website.

Many other media people faced lengthy questioning and had their identification cards photographed as they arrived in the city.

Macau's government did not immediately respond to requests for comment.

Xi's visit, his longest official trip toMacau, will include meetings with government officials and business representatives, as well as the swearing-in ofMacau's newly chosen Beijing-backedleader, Ho Iat-seng, on Friday.

Macaureturned toChineserule on December20, 1999 with the same "one country, two systems" formula aimed at preserving autonomy under whichHongKongis governed.

While protesters inHongKong, across the mouth of the Pearl River, are infuriated by what they see as Beijing encroaching on their freedoms,Macauhas seen little dissent.

Protests are very rare in the territory with more than half ofMacau's 620,000 population immigrating from China in recent decades.

Flags and red congratulatory banners fluttered along roads and over buildings around the city in preparation for the anniversary celebrations on Friday.

"Macauis the best, better thanHongKong.HongKonghas been taken over by those rioters and we are all affected," said a 73-year-old woman surnamed Cheung.

Transport Restrictions

Still, authorities appeared to be taking no chances.

AHongKongresident was arrested by mainland police last week while crossing intoMacauon a newly built bridge linking it toHongKongand the mainland city of Zhuhai.

Chineseauthorities said the man was suspected of involvement in a phone-smuggling syndicate.

The heads of the American Chamber of Commerce inHongKonghave also been barred from entering the city in the run-up toXi's visit, the chamber heads reported, adding that authorities did not give a reason.

Macauferry operator Turbo Jet said it was reducing the number of ferry sailings to and fromHongKongby about half due to security checks. Ferries this week are only operating every 30 minutes compared with every 15 minutes normally.

The changes were made because of "instructions byMacauauthorities", the company said on its website.

The city's light rail transit system which opened to the public on December10, will be suspended for three days from Wednesday due to security measures, the operator said.

Beijing has also clamped down on visas since November for mainland residents going toMacauuntil after the December20 anniversary, as part of the security restrictions, according to Vitaly Umansky, an analyst at Sanford C. Bernstein inHongKong.

The restrictions would put additional pressure on slidinggamblingrevenues, he said.

Macauis heavily dependent on thegamblingindustry with its casinos contributing about 80 percent of government income.