07/05/2014 Asia Business Report

American company has been warned not to use the UK as a tax haven. Now on

BBC News, all the latest business news live from Singapore.

Could it be the biggest stock market listing in history? Ali Baba six

billions from investors. Could Indonesian coffee become less

available to foreigners? Welcome to Asia Business Report. I'm Rico

Hizon. Starting with China's Alibaba. It has filed for a share

sale in the US, which could make it as much as $15 billion. In initial

stages of the filing, it hasn't specified how much stock will be

sold or at what price. The online shopping giant operates a network of

e`commerce services and brings in more money than us on and eBay

combine. But how well known is Alibaba in the US? `` Amazon and

eBay. To give you an idea of how much interest it is already

building, Yahoo has a 40% stake in Alibaba and investors are buying

shares in Yahoo just to have some of its shares in Alibaba. There is

already quite a bit of interest, despite the fact that it might not

be as well`known and amongst regular kind of investors. The one thing

that might hold investors back in the US is the complex web of

businesses. That might deter some investors. One merely `` $1 billion,

US, is that realistic? It is probably going to be more than that.

The $1 billion is really just a placeholder, a number they have to

put. But most people believe they can raise anywhere from $15 billion

`$20,000,000,000. If they are published that, it would be

Facebook's IPO. They decided to file in the US rather than their home

base. By? The United States allows for more control. `` why? That's

what executives want. Alibaba proposed something different. Their

shareholders, 20 members of the executive team, are able to vote on

the people who are part of the board. That wasn't going to fly with

regulators in Hong Kong. But it's something that was accepted here in

big US, which is why they decided to list in New York. A marketplace

which facilitates consumer to consumer online shopping now.

It is the supreme shopping platform. There is almost nothing you can't

buy on it. People call me Lunar Mum on internet. I sell maternity and

infant products. It was hard at the beginning. Every day I wouldn't

finish before midnight and I had to look after my baby as well. Now I

have eight staff, divided into morning and evening ships. I even

have customer service and a graphic designer. We chat to customers

online before finalising the orders. In the afternoon, we start sorting

the goods according to orders. We pack them into parcels for the

delivery men. When I started, I made 10,000 yuan every month. Now the

income is 40 times that. All young people now shop online. Even older

people are joining the trend. The website has transformed my life. I

believe its influence is only going to increase. The successful use. The

following rate of growth of China's economy is a source of concern for

many in the developing nations of Asia.

But for countries in Africa, China's investment is still

galloping ahead. By 2020, it expects trade with Africa to double to $400

billion and Chinese foreign investment is expected to rise to

100 Indian dollars. In Abuja, Nigeria, the World Economic Forum is

taking place. We report from there. Nigeria is China's third`largest

trading partner. Trade volume has increased as there is hardly any

household in Nigeria without a product made China, especially at ``

electronics. This is coming with huge business delegation. Several

bilateral agreements will be signed. There are huge investment here, with

interest spanning telecom, aviation and banking, as well as a huge

presence in construction. This visit underscores the importance of

Nigeria to China and the rising profile of Chinese business

activities in Africa's largest economy. The World Economic Forum

begins today. There is the risk of it being overshadowed by security

concerns. China has started controlling

imports of baby milk formula to try to rebuild its dairy industry.

Demand for imports soared after a scandal in 2008. But authorities are

trying to help local producers claw back market share from suppliers in

New Zealand, Australia and Europe by stopping imports from producers who

are not registered with them. New Zealand is a major exporter of milk

formula to China. Earlier, I spoke to the head of the trade body in

Auckland and asks how this will impact their industry. Each year it

is about $200 million, New Zealand dollars, of milk formula. This is a

rising market for New Zealand because of our free trade agreement

that we signed back in 2008. It is part of a market that is growing and

part of our market where Ali Young, small, entrepreneurial companies

have taken a good share of the market and that market is now at

risk. `` our young. Suppliers now have to be approved by mainland

authorities. Apparently only 30 suppliers, six other countries, were

approved. How could this impact, in terms of production and revenues,

the New Zealand baby formula market? What we are going to see is the

initial audit covered 13 companies and now we have about eight of those

who have passed the globe mark. What we will see is some pressure put on

the brand holders. For some reason the Chinese are looking at brands

and looking to have Rands reduced, whereas in the New Zealand market I

am saying that what they should be doing is looking at the quality of

products supplied. `` brands. That will give accountability to

consumers in the China market. There is no need to exclude part of our

supply chain. If it is breakfast where you are

watching, you might have had your first couple of coffee or at least

he might be thinking about it. But do you know where it comes from?

Indonesia is the world's fourth largest coffee producer and in the

past is exported almost all of it. Now, Indonesians are demanding

better coffee and that is expected to put a shotgun exports.

Afternoon coffee. It is fast becoming Indonesia's pastime. This

couple opened this shop last year. She admits business is slow but she

is confident that the future is bright. Older generations like my

father or uncle, the way they drink coffee, they just drink the popular

Indonesian instant coffee or they just put water over the ground

coffee and they drink the sediment. Now, the young generation drinks

espresso, Pacino. This is where all of that coffee comes from. ``

cappuccino. These are unprocessed coffee beans. In the past,

Indonesian farmers would pick the beans indiscriminately. It is faster

but the result is a lower quality coffee. Now, it pays to pick only

the best beans. This man has been a coffee farmer for more than 20

years. He first learned about the plant on his grandmother's farm.

But, until recently, nobody taught him how to produce high`quality

coffee. Now he is small `` he is all smiles while picking the best beans.

TRANSLATION: I used to sell one kilogram of regular quality coffee

beans. For the superior quality, people are willing to pay almost

three times the price. The best Indonesian copy used to be mainly

for exports. This Di Resta sells special coffee, the highest in the

trade, locally and overseas. `` this exporter. The majority will be

local. Locals will consume it. Mid to upper class. We do not expect

foreigners, because our biggest market is our growing need

upper`class. `` mid. But the bulk of Indonesian copy still has to go

overseas for some time as it had enough demand in the country. But

farmers are increasingly setting the price for the popular commodity.

Thank you for investing your time with us. The sport is up next.

The top stories this hour. Eight more schoolgirls have been abducted

in Nigeria. The US is sending a team